SECTION 4. DEFINITIONS

.01 Reporting Agent . A Reporting Agent is an accounting service, franchiser, bank, service bureau, or other entity authorized to perform on behalf of a taxpayer one or more of the acts described in this revenue procedure.

.02 Authorization . An Authorization allows a taxpayer to designate a Reporting Agent to:

(1) Sign and file electronically Form 940, Form 941, Form 944; and those forms set forth on Form 8655, and amended and any successor forms.

(2) Sign and file on paper Form 944, Forma 940–PR, Planilla Para La Declaración ANUAL Del Patrono—La Contribución Federal Para El Desempleo (FUTA) ; Forma 941–PR, Planilla Para La Declaración Federal Trimestral Del Patrono—La Contribución Federal Al Se- guro Social Y Al Seguro Medicare ; Form 941–SS, Employer’s QUARTERLY Fed- eral Tax Return ; Form 943, Employer’s Annual Federal Tax Return for Agricul- tural Employees ; Forma 943–PR, Planilla Para La Declaración Anual De La Con- tribución Federal Del Patrono De Emplea- dos Agrícolas ; Forma 944–PR, Planilla Para La Declaración ANUAL Del Pa- trono ; Forma 944(SP), Declaración Fed-

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(1) The Service must accept the Authorization and Agent’s List before the Reporting Agent may file a return on behalf of a taxpayer.

(2) The Reporting Agent must comply with the requirements of Rev. Proc. 98–32, 1998–1 C.B. 935, before the Reporting Agent may make electronic FTDs or FTPs on behalf of a taxpayer or submit FTD information or FTP information electronically.

(3) See section 13 of this revenue procedure for a list of other applicable guidance.

.04 A new Authorization must be submitted to the Service for any increase or decrease in the scope of the authority of a Reporting Agent to act on behalf of the taxpayer, or if the taxpayer appoints a new Reporting Agent. Receipt by the Service of an Authorization designating a new Reporting Agent terminates the authority of the prior Reporting Agent for all purposes for tax periods beginning on or after the effective date of the new Authorization. An Authorization designating a new Reporting Agent also terminates the authority of the prior Reporting Agent to receive duplicate copies of notices. For the tax periods beginning before the effective date of the new Authorization, the prior Reporting Agent retains the authority specified in the prior Authorization unless the taxpayer explicitly revokes the prior Authorization.

.05 An Authorization does not relieve the taxpayer of the responsibility (or from liability for failing) to ensure that all tax returns are filed timely and that all FTDs and FTPs are made timely.

.06 A Reporting Agent may use an Authorization to file paper returns listed on Form 8655 on behalf of a taxpayer only if:

(1) The late receipt of payroll information from a taxpayer has jeopardized the timely electronic filing of the taxpayer’s return;

(2) The paper return amends Form 940 filed under the magnetic tape or electronic filing programs referenced in section 13 of this revenue procedure;

(3) The Service’s rejection of an electronic filing has jeopardized the timely filing of the taxpayer’s return;

(4) The returns are listed in section 4.02(2) of this revenue procedure; or (5) The electronic filing coordinator for a Reporting Agent participating in an electronic filing program referenced in section

with respect to the returns filed by the Reporting Agent.

(3) A taxpayer may authorize a Reporting Agent to receive confidential taxpayer information from the Service to assist in responding to notices relating to the Form W–2 or Form 1099 series of information returns.

(4) An Authorization that permits a Reporting Agent to make returns also permits a Reporting Agent to request information from the Service or submit information to the Service about the returns filed by the Reporting Agent. This authority extends to any information concerning penalties that may arise from the returns, including information that may assist the Service in determining whether it would be appropriate to grant relief from any penalties arising from the returns. This authority continues regardless of a change in filing requirements. For instance, if a Reporting Agent, pursuant to an Authorization, made and filed a Form 941 on behalf of a taxpayer prior to the Service notifying the taxpayer that the taxpayer’s filing requirements was changed from Form 941 to Form 944, the Reporting Agent has authority to continue to request information from the Service or submit information to the Service about the previously-filed Form 941, assuming the Reporting Agent’s authorization remains in effect.

(5) An Authorization, however, does not permit the Reporting Agent to request the abatement of any penalties that may arise from the returns filed by the Reporting Agent or to perform in any other way any acts that constitute representation of the taxpayer within the meaning of § 601.501(b)(13) of the Statement of Procedural Rules.

.02 The scope of an Authorization for making FTDs and FTPs and submitting FTD information and FTP information electronically is as follows:

(1) A taxpayer may authorize a Reporting Agent to make FTDs and FTPs for any taxes reported on any of the returns listed on Form 8655 and to submit FTD information and FTP information electronically on the taxpayer’s behalf. A Form 8655 that authorizes a Reporting Agent to prepare and make FTDs and FTPs on Form 990–C, Farmers’ Cooperative Association Income Tax Return, also authorizes a Reporting Agent to prepare and make FTDs

and FTPs on Form 1120–C, U.S. Income Tax Return for Cooperative Association s.

(2) A taxpayer may authorize a Reporting Agent to receive duplicate copies of notices and correspondence for FTDs and FTPs made by the Reporting Agent for the taxpayer.

(3) Regardless of the method designated by the taxpayer, a Reporting Agent must make FTDs and submit FTD information through the EFTPS for a taxpayer that is required to make FTDs and submit FTD information through the EFTPS pursuant to section 6302(h).

(4) An Authorization that permits a Reporting Agent to make FTDs and FTPs also permits the Reporting Agent to request information from the Service or submit information to the Service on the FTDs and FTPs submitted by the Reporting Agent. It further permits the Reporting Agent to submit any information concerning penalties that may arise from the returns, including information that may assist the Service in determining whether it would be appropriate to grant relief from penalties. This authority continues regardless of a change in forms. For instance, if a Reporting Agent had authority to make FTDs and FTPs in connection with Form 990–C and did so, and the Service later replaces Form 990–C with Form 1120–C, absent a change to the Authorization, the Reporting Agent has authority to make FTDs and FTPs on behalf of the taxpayer in connection with Form 1120–C. The Reporting Agent also retains authority to request information from the Service or submit information to the Service about the FTDs and FTPs relating to Form 990–C.

(5) An Authorization does not permit the Reporting Agent to request the abatement of any penalties that may arise from the FTDs or FTPs made by the Reporting Agent or to perform in any other way any acts that constitute representation of the taxpayer within the meaning of § 601.501(b)(13) of the Statement of Procedural Rules.

.03 An Authorization becomes effective for the tax period(s) designated by the Reporting Agent and taxpayer and remains in effect for subsequent periods until revoked by the taxpayer or terminated by the Reporting Agent or the Service, subject to the following:

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cally, as appropriate, but if the number of taxpayers/clients exceeds 100, the Agent’s List must be filed electronically. For specific information concerning the requirements for filing and updating Agent’s Lists, see Publication 1474 and the documents listed in section 13 of this revenue procedure. The Service contacts listed in section 13 of this revenue procedure may also be contacted for this information.