SECTION 5. APPLICATION AND

REQUIREMENTS FOR QPCA DETERMINATION

.01 Where to apply for QPCA determi- nation . A person authorized to act on behalf of a payment card organization may submit a written request for a QPCA determination to the following address:

Internal Revenue Service 1601 Market Street 20th Floor ATTN: TIN Matching Coordinator S:C:CP:F&CC:SCDM Philadelphia, PA 19107

.02 Content of QPCA application . A payment card organization requesting a QPCA determination must include the following in its application:

(1) The name, address, and employer identification number of the payment card organization and a description of its business.

(2) The name of the department or office of the payment card organization that will serve as the information contact.

(3) The name of the department or the names and titles of the officers or employees that will be responsible for the performance of the TIN solicitation activities described in section 6.

(4) A list of the systems, business lines, or card product lines or levels that will be covered by the TIN solicitation activities described in section 6 and that will be covered by a QPCA determination.

(5) An explanation of the account opening procedures and documents the payment card organization uses, or requires its members, affiliates, or licensees to use, to establish merchant account relationships related to the payment card organization’s activities as a QPCA.

(6) The approximate number and the type of merchants (individuals, corporations, etc.) enrolled by the payment card organization.

(7) An explanation of the payment card organization’s systems and controls related to the payment card organization’s activities as a QPCA for—

(a) Obtaining merchant/payee data (including merchant/payee data provided by reputable third-party sources);

(b) Validating the accuracy of the merchant/payee data;

(c) Ensuring the accuracy and reliability of the merchant/payee data;

(d) Maintaining the merchant/payee data; and

(e) Supplying the merchant/payee data to the cardholder/payor.

.03 Requirements for QPCA determina- tion . A payment card organization must meet the following requirements to obtain a QPCA determination:

2004–31 I.R.B. 122 August 2, 2004

tion 301.6724–1(e)(1)(i) of the Regulations on Procedure and Administration. Alternatively, a QPCA may obtain merchant/payee TINs from a reputable third-party source.

.02 Notification and disclosure re- quirements . A QPCA must give each merchant/payee for which it acts as agent the written notice described in section 5.03(1)(c) and must give each cardholder/payor for which it acts as agent the written notice described in 5.03(1)(b). In addition, a QPCA must give written notice of its status as a QPCA, and of any change in that status, to any member, affiliate, or licensee that issues payment cards, as well as to the merchant/payees and cardholder/payors for which it acts as agent.

.03 TIN Matching participation . A QPCA must participate in the IRS TIN Matching Program and must match its merchant/payee data relating to reportable payments with IRS within three months after obtaining the merchant/payee’s TIN. A QPCA may seek to cure merchant/payee data that has not previously been validated through the IRS TIN Matching Program. The QPCA must transmit only merchant/payee data that has not previously been validated through IRS TIN Matching.

.04 Providing merchant/payee data to cardholders . The QPCA must provide cardholder/payors with a report containing merchant/payee data within four months of the date on which the QPCA makes the payment. The report may be provided in a quarterly or other regular report of merchant/payee data that includes the merchant/payee’s name, corporate status, TIN, and whether the TIN has been validated through participation in the IRS TIN Matching Program. A QPCA must furnish the report containing merchant/payee data for transactions occurring on or before December 31 of the calendar year no later than January 15 of the following calendar year.