SECTION 4. ACCEPTANCE IN THE

ELECTRONIC FILING PROGRAM

.01 For applicants described in section 4.03 of this revenue procedure, the application period begins on August 1, 1995, and ends on December 1, 1995. Revised applications described in section 4.04 of this revenue procedure must be submitted within 14 days of the change(s) reflected on the revised Form 8633, Application to Participate in the Electronic Filing Program.

.02 If an Electronic Filer has a foreign location, that location must list an APO or FPO address on Form 8633, line 1r.

.03 Applicants must file a new Form 8633 with fingerprint cards for the appropriate individuals if:

(1) the applicant has never actively participated in the electronic filing program;

(2) the applicant has previously been denied participation in the Electronic Filing Program; or

(3) the applicant has been suspended from the Electronic Filing Program.

.04 Participants in the 1995 Electronic Filing Program must submit a revised Form 8633 to participate in the 1996 Electronic Filing Program if:

(1) the participant functioned solely as a Software Developer during the 1995 Electronic Filing Program and intends to function as an ERO, Service Bureau, or Transmitter during the 1996 Electronic Filing Program;

(2) there is an additional principal, such as a partner or a corporate officer, that must be listed on Form 8633, line 1k(1), ‘‘Principals of Your Firm or Organization’’;

(3) there is a ‘‘Principal’’ listed on Form 8633, line 1k(1), that should be deleted;

(4) the ‘‘Responsible Official’’ on Form 8633, line 1k(2), changes; or

(5) there is any change to: (a) the Firm name or Doing Business As (DBA) name;

(b) the business or mailing address; (c) the contact representative or the alternate contact representative’s name or telephone number;

(d) the Electronic Filer’s form of organization, as described on Form 8633, line 1k; (e) the electronic functions performed by an Electronic Filer, other than an Electronic Filer who functions solely as a Software Developer; or

(f) the number or location(s) of drop-off collection points.

.05 A Form 8633 submitted pursuant to section 4.04 (l) through (4) of this revenue procedure must have completed fingerprint cards attached for the appropriate individual(s). All ‘‘Principals’’ and the ‘‘Responsible Official’’ must sign the Form 8633.

.06 A Form 8633 submitted pursuant to section 4.04(5) of this revenue procedure needs to include only entries on lines 1a through 1i and the information being revised. A ‘‘Principal’’ or ‘‘Responsible Official’’ must sign the Form 8633.

.07 To be accepted into the 1996 Electronic Filing Program, an applicant or a 1995 Electronic Filing Program participant who is described in section 4.04(1) through (4) of this revenue procedure must:

(1) file a properly completed Form 8633 with the service center that accepts electronically filed returns from the applicant’s state; and

(2) successfully complete the necessary testing at the appropriate service center(s) if the applicant intends to function as a Transmitter or Software Developer.

1995–2 C.B. 421

.08 Each individual listed as a principal or a responsible official must:

(1) be a United States citizen or an alien admitted for lawful permanent residence as described in 8 U.S.C. § 1101(a)(20) (1988);

(2) have attained the age of 21 as of the date of application;

(3) submit with Form 8633 one standard fingerprint card with a full set of fingerprints taken by a law enforcement agency, except as provided in section 4.10 of this revenue procedure;

(4) pass a suitability check that includes a credit check and a fingerprint check; and

(5) if applying to be an ERO, meet state and local licensing and/or bonding requirements in connection with the preparation of tax returns and the collection of prepared returns that taxpayers intend to have electronically filed. However, if the state and local licensing and/or bonding requirements apply to a business entity, the individual(s) must demonstrate that the business entity meets the requirements.

.09 The same ‘‘responsible official’’ may be listed on a maximum of ten applications. The ‘‘responsible official’’ is the person who oversees the daily operations of the office. The ‘‘responsible official’’ must be able to physically visit on a daily basis each office for which he or she is listed as the ‘‘responsible official.’’

.10 An individual may choose to submit evidence of the individual’s professional status in lieu of one standard fingerprint card if the individual is:

(1) an attorney in good standing of the bar of the highest court of any State, possession, territory, Commonwealth, or the District of Columbia, and is not currently under suspension or disbarment from practice before the Service;

(2) a certified public accountant who is duly qualified to practice as a certified public accountant in any State, possession, territory, Commonwealth, or the District of Columbia and is not currently under suspension or disbarment from practice before the Service;

(3) an enrolled agent pursuant to part 10 of 31 CFR Subtitle A;

(4) an officer of a publicly held corporation; or

(5) a banking official who is bonded and has been fingerprinted within the last two years.

422 1995–2 C.B.

.11 The Service will issue to eligible applicants for the 1996 Electronic Filing Program, as well as participants in the 1995 Electronic Filing Program who do not have to reapply pursuant to section 4.04 of this revenue procedure:

(1) a letter of acceptance into the Electronic Filing Program for the 1996 filing season;

(2) an Electronic Filing Identification Number (EFIN); (3) if appropriate, an Electronic Transmitter Identification Number (ETIN);

(4) if appropriate, a Service Bureau Identification Number (SBIN); and

(5) if appropriate, a Collection Point Identification Number (CPIN). No one without these credentials may participate in the Electronic Filing Program for the 1996 filing season.

.12 If an Electronic Filer is a Software Developer who performs no other function in the Electronic Filing Program but software development, no principal or responsible official needs to pass a suitability check.

.13 If an Electronic Filer will have a drop-off collection point(s), as defined in section 3.05, for the 1996 filing season, an Electronic Filer must submit a Form 8633 that lists each drop-off collection point. By listing a drop-off collection site on Form 8633, an Electronic Filer becomes a ‘‘parent’’ in relation to a listed drop-off collection point.

.14 The following reasons may result in the rejection of an application to participate in the 1996 Electronic Filing Program (this list is not all-inclusive):

(1) conviction of any criminal offense under the revenue laws of the United States, or of any offense involving dishonesty or breach of trust;

(2) failure to file timely and accurate business or personal tax returns;

(3) failure to timely pay personal or business tax liabilities;

(4) assessment of penalties; (5) suspension/disbarment from practice before the Service;

(6) other facts or conduct of a disreputable nature that would reflect adversely on the Electronic Filing Program;

(7) misrepresentation on an application;

(8) suspension or rejection from the program in a prior year;

(9) unethical practices in return preparation;

(10) stockpiling returns prior to official acceptance into the Electronic Filing Program (see section 5.15);

(11) knowingly and directly or indirectly employing or accepting assistance from any person who has been denied acceptance into the Electronic Filing Program or is suspended from the Electronic Filing Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Electronic Filing Program; or

(12) knowingly and directly or indirectly accepting employment as an associate, correspondent, or as a subagent from, or sharing fees with, any person who has been denied acceptance into the Electronic Filing Program or is suspended from the Electronic Filing Program. This includes any individual whose actions resulted in the rejection or suspension of a corporation or a partnership from the Electronic Filing Program.