SECTION 4. STANDARDS FOR

GRANTING CERTIFICATION AS A CPEO

.01 Eligibility for certification must be established in the application . A CPEO applicant will be certified as a CPEO only if its application for certification and supporting documentation establish to the satisfaction of the IRS that the CPEO applicant meets the requirements of § 301.7705-2, this revenue procedure, the instructions in the online application, and any applicable subsequent guidance, so as not to present a material risk to the IRS’s collection of federal employment taxes.

.02 Incomplete or inaccurate applica- tion . All applications for certification must be complete and accurate. An application is not complete and accurate if it does not contain all of the items required by § 301.7705-2, this revenue procedure, the instructions in the online application, and any applicable subsequent guidance. If an incomplete application is submitted, the IRS generally will request from the CPEO applicant additional information needed for a completed application. However, the IRS may deny an incomplete application without requesting additional information.

.03 Even if an application is complete, additional information may be required . Even if an application is complete, the

3 In order for the application submitter to discuss a return of a related entity of the CPEO applicant with the IRS, the application submitter must be authorized by section 6103(e)to inspect the return information of the CPEO applicant or have a Form 8821, Tax Information Authorization, for that related entity and that return on file with the IRS.

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IRS may request additional information before approving or denying certification. For instance, if the results of a background check as described in section 3, including the result of a tax compliance check, suggest a potential failure to meet a requirement described in § 301.7705-2, the IRS may request that the CPEO applicant provide an explanation of the results. As another example, the IRS may ask a CPEO applicant to support its representations with respect to its experience by providing a written work history or third-party references.

.04 CPEO applicant must notify IRS of material changes relevant to its applica- tion for certification . Within 30 days of its occurrence, a CPEO applicant must notify the IRS through its IRS Online Registration System account of any change that materially affects the continuing accuracy of any previously made agreement or other information provided to the IRS as a part of its application for certification. Examples of material changes are provided in section 8.06(3) and include, but are not limited to, any change in the tax compliance, criminal background, or professional license or registration status of the CPEO applicant, or any of its precursor entities, related entities, or responsible individuals; any change to the CPEO applicant’s fiscal year; and any change that results in another individual being considered a responsible individual of the CPEO applicant or another entity being considered a precursor entity or a related entity of the CPEO applicant. For purposes of this section 4.04, a material change also includes the discovery of significant errors in or new facts relevant to any agreement or information provided to the IRS as part of the application for certification.