SECTION 14. EFFECT OF

SUSPENSION

.01 An Electronic Filer’s suspension will continue for the length of time specified in the suspension letter, or until the conditions for terminating the suspension have been met, whichever is later.

.02 In the case of an Electronic Filer that is an Agent, the following additional rules apply:

(1) if a Form 940 is due (without regard to extensions) within 60 days from the date on the suspension letter, the Agent may file the Form 940 under the Form 940 e-file Program;

(2) if a Form 940 is due (without regard to extensions) more than 60 days from the date on the suspension letter, the Agent may not file the Form 940 under the Form 940 e-file Program;

(3) if a suspended Agent has a power of attorney from a taxpayer that authorizes the Agent to sign and file Form 940, the suspended Agent will be able to sign and file a paper Form 940 for the taxpayer. See section 9.03 of this revenue procedure. Form 8655 does not authorize the filing of paper Forms 940 outside of the Form 940 e-file Program; and

(4) an Agent must provide written notification of a suspension to a taxpayer at least 45 days before the due date of the taxpayer’s first return affected by the suspension. This notification must be provided even though the Agent may believe that the Agent will be able to meet the conditions for terminating the suspension before the due date.

.03 A Transmitter that receives a suspension letter described in section 13.04 from the Service may not accept any further LOAs from prospective On-Line Filers that want to participate in the Form 940 e-file Program and must immediately inform current On-Line Filers of its inability to transmit Forms 940 during its suspension

.04 An Electronic Filer will be able to participate in the Form 940 e-file Program

from which the Electronic Filer was suspended, without reapplying to the Form 940 e-file Program, after: (1) the stated suspension period expires; and

(2) the reason(s) for suspension is corrected.