SECTION 4. VOLUNTARY

TERMINATION

.01 Notice of voluntary termination . A CPEO may voluntarily terminate its certification at any time other than while its certification is suspended. To voluntarily terminate its certification, the CPEO must submit to the IRS, via the CPEO’s online account or such other method as the IRS shall prescribe in further guidance, a written notice of voluntary termination at least 30 days prior to the date on which the CPEO intends for the termination to take effect. The effective date chosen by the CPEO must coincide with the first day of a calendar quarter. Prior to sending the IRS the notice of voluntary termination, the CPEO must notify each of its customers in writing of the CPEO’s intention to terminate its certification and of the proposed effective date of termination, and provide an explanation of the employment tax consequences of termination, including a statement that the customer may also be liable (as of the effective date of termination) for federal employment taxes imposed on remuneration remitted by the CPEO to all employees covered by the customer’s contract with the CPEO. A sample of the notification to customers referred to in the preceding sentence must be attached to the notice of voluntary termination submitted by the CPEO to the IRS.

.02 Notice of termination sent to cus- tomers by IRS . Upon receipt of a CPEO’s notice of voluntary termination, the IRS may also send notification of the CPEO’s intent to terminate certification to the CPEO’s customers.

.03 Effect of voluntary termination . A CPEO that voluntarily terminates its certification is, as of the effective date stated in the notice of voluntary termination, no longer a CPEO and the provisions of section 3511 of the Code will no longer apply

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to the organization. The CPEO will also be removed from the list of CPEOs that the IRS publishes on www.irs.gov, which is updated by the 15th day of the first month of every calendar quarter.