SECTION 2. BACKGROUND AND

CHANGES

.01 Section 1.6012–5 of the Income Tax Regulations provides that the Commissioner may authorize the use, at the option of a person required to make a return, of a composite return in lieu of any form specified in 26 CFR Part 1 (Income Tax), subject to the conditions, limitations, and special rules governing

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the preparation, execution, filing, and correction thereof as the Commissioner may deem appropriate.

.02 For purposes of this revenue procedure, an electronically filed Form 1040, Form 1040A, or Form 1040EZ is a composite return consisting of electronically transmitted data and certain paper documents. The nonelectronic portion of the return consists of Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing, and other paper documents that cannot be electronically transmitted. Form 8453 must be received by the Service before any electronically filed return is complete. An electronically filed return must contain the same information that a return filed completely on paper contains. See section 7 for procedures for completing Form 8453.

.03 The Service will periodically issue a publication that lists the forms and schedules associated with a Form 1040 that can be electronically transmitted.

.04 A Form 1040, a Form 1040A, or a Form 1040EZ cannot be electronically filed after October 15, 1996, notwithstanding the fact that the taxpayer has been granted an extension to file a return beyond that date.

.05 An amended tax return cannot be electronically filed. A taxpayer must file an amended tax return on paper in accordance with the instructions for Form 1040X, Amended U.S. Individual Income Tax Return.

.06 A tax return that has a foreign address for the taxpayer cannot be electronically filed. Army/Air Force (APO) and Fleet (FPO) post offices are not considered foreign addresses.

.07 A tax return for a decedent cannot be electronically filed. The decedent’s spouse or personal representative must file a paper tax return for the decedent.

.08 This revenue procedure updates Rev. Proc. 94–63, which applied to the Electronic Filing Program for the 1995 filing season. The updates include changes in the Electronic Filing Program for the 1996 filing season, clarifications of prior Electronic Filing Program statements, and additional guidance derived from other Service documents that relate to the Electronic Filing Program. Some of the updates are:

(1) an ERO must not have a foreign address (section 4.02);

(2) additions to the reasons to submit a revised Form 8633 (section 4.04);

(3) certain officers of publicly held corporations and bank officials may not need to submit fingerprints with their applications (section 4.10);

(4) an ERO or a Service Bureau must input each taxpayer address that appears on wage and tax documentation if the address differs from the taxpayer’s address on Form 1040 (section 5.04); (5) an Electronic Filer must tell the Service when it stops electronic filing (section 5.07);

(6) modifications to the procedures for completing Form 8453 when a paid preparer prepared the return (section 5.11); (7) an ERO must ensure against the unauthorized use of its CPIN(s) (section 5.12);

(8) additions to the list of wage and tax documentation that are required before February 15, 1996 (section 5.13); (9) within 24 hours of receiving an acknowledgement that a return has been rejected, an ERO must notify the taxpayer that the Service has rejected the return (section 5.14);

(10) a Service Bureau must ensure against the unauthorized use of its SBIN(s) (section 5.16(10));

(11) additional restrictions on addresses that may be used on Form 8453 and in the electronic portion of the return (section 7.01(3));

(12) an ERO’s obligation to provide a taxpayer with a copy of the taxpayer’s return is clarified (section 8.01); (13) taxpayer inquiries regarding the status of returns should be referred to the local district office Tele-Tax number (section 8.05);

(14) Electronic Filers must adhere to all relevant federal, state, and local consumer protection laws that relate to advertising and soliciting (section 12.02);

(15) the effect of suspending a ‘‘Principal’’ or ‘‘Responsible Official’’ on entities that listed the ‘‘Principal’’ or ‘‘Responsible Official’’ on their Forms 8633 (section 13.02);

(16) clarification of the two-year period for denial or suspension (section 13.10); (17) modifications to the administrative review processes for denials and suspensions (sections 14 and 15); and

(18) modifications to the VITA and TCE programs (section 16).