SECTION 6. ACCEPTANCE IN THE

FORM 940 e-file PROGRAM

.01 A prospective Electronic Filer or On-Line Filer will receive an acceptance or rejection regarding its LOA for the Form 940 e-file Program within 45 days of the Service’s receipt of their completed LOA.

.02 An Electronic Filer that is accepted in the Form 940 e-file Program will be required to submit a successful test transmission before being granted approval to file tax returns. Details regarding test requirements may be found in Publication 3715. .03 After evaluating the test file, the Service will notify an Electronic Filer in writing of approval or denial of electronic filing privileges. An approval remains in effect unless the Electronic Filer:

(1) that is an Agent fails to comply with the Authorization requirements of sections 5.03 and 5.04 of this revenue procedure;

(2) that is a Software Developer fails to comply with the requirements of section 8.04 of this revenue procedure;

(3) that is a Transmitter fails to comply with the requirements of section 8.03 of this revenue procedure; or

(4) is suspended from the Form 940 e-file Program. See section 14 of this rev

January 16, 2001 330 2001–3 I.R.B.

enue procedure for the effect of a suspension.

.04 The acceptance by the Service of a Software Developer as an Electronic Filer:

(1) establishes only that the test electronic transmission(s) are formatted properly and may be processed by the Service;

(2) is not an endorsement by the Service of the software or the quality of services provided by the Software Developer; and

(3) does not entitle the Software Developer to electronically file Forms 940 unless the Software Developer is also accepted in the Form 940 e-file Program as an Agent or Transmitter.

.05 If an LOA is approved, the Service will send the following:

(1) for an Electronic Filer, a notification of approval that will contain the userid/password, and information and procedures regarding signing onto the system for electronically filing Forms 940; and (2) for an Authorized Signatory, a PIN that may be used only by the Authorized Signatory named in the LOA.

.06 Upon receipt of the document(s) referenced in section 6.05 of this revenue procedure, the Electronic Filer must return the following documents to the Service:

(1) an acknowledgment signed by each employee recipient of the userid/password indicating possession of, and responsibility for, the userid/password; and

(2) where applicable, an acknowledgment signed by the Authorized Signatory indicating possession of, and responsibility for, the proper use of the PIN for signing tax returns (pursuant to § 301.6061–1) filed in the Form 940 e-file Program. See Publication 3715 for a sample userid/password and PIN receipt.

.07 Upon receipt of the PIN referenced in section 6.05(2) of this revenue procedure, the On-Line Filer must return an acknowledgment signed by the Authorized Signatory indicating possession of, and responsibility for, the proper use of the PIN for signing tax returns (pursuant to § 301.6061–1) filed in the Form 940 e-file Program.

.08 The Service will activate the userid/password and the PIN upon receiv

ing the Electronic Filer’s or On-Line Filer’s acknowledgments referenced in sections 6.06 and 6.07 of this revenue procedure.

.09 If a prospective Electronic Filer that is an Agent is denied, or does not receive, approval to participate in the Form 940 e-file Program before the end of the year for which the Forms 940 will be filed, the Agent may file the Forms 940 on magnetic tape (if the Agent meets the requirements of Rev. Proc. 96–18) or prepare paper Forms 940. See section 9.02 of this revenue procedure for the circumstances that must exist for an Electronic Filer who is an Agent to use a Form 8655 as authority to sign and file a paper Form 940.

.10 After a Reporting Agent is notified that the application for electronically filing Forms 940 has been approved, the Agent may need to add and delete taxpayers’ names from the Agent’s List.

(1) To add taxpayers, the Agent must submit an Add Llist with names to be added, their respective employer identification numbers, and Authorization for each taxpayer added to the Agent’s List. The Service will validate and mail the validated Add List to the Agent within 10 business days of receiving the Add List.

(2) To delete taxpayers, the Agent must submit a Delete List with the names to be deleted, and if known, a short statement indicating which taxpayers will not remain in business.