Providers in IRS e-file are referred to as Authorized IRS e-file Providers. They offer clients a special service which produces higher quality returns. Benefits include an IRS acknowledgement of receipt of the electronic return. This acknowledgement does not occur with paper returns. Since electronic returns go through validation and are rejected for certain conditions, the accuracy rate of e-file returns is greater than that of paper returns.

Applicants select the Provider options that apply to the service or role they will perform. They may select one option or a combination of the following Provider Options:

The categories used to describe Providers are not mutually exclusive. For example, an ERO can simultaneously be a Transmitter, a Software Developer, or an Intermediate Service Provider depending on the function being performed.

IRS e-file publications and updates are available on the IRS web site. Certain publications may be mailed to Providers based upon information provided on the application. IRS e-file publications are:

Publication 3112, IRS e-file Application and Participation, contains information and rules for applying and participating in IRS e-file.

Updates to IRS e-file are posted to the IRS web site at http://www.irs.gov.

The Service will monitor and either warn or sanction Providers in accordance with Rev Proc 2007-40 and Publication 3112, IRS e-file Application and Participation.

Monitoring may include reviewing IRS e-file submissions, investigating complaints, scrutinizing advertising material, checking adherence to electronic filing signature requirements, examining files, observing office procedures, and conducting suitability checks.

Sanctioning may be a written reprimand, suspension or expulsion from IRS e-file depending on the seriousness of the infraction. The seriousness of the infraction is in the opinion of the IRS and categorized by Levels of Infraction.

The IRS categorizes infractions as Level One, Level Two, and Level Three. See IRM 3.42.10.19.10 for further details.

Sanctions may be appealed through the administrative review process. This process includes an initial review by the office proposing the sanction, and a subsequent review by the Office of Appeals for suspensions and expulsions. (For further information, see Publication 3112).

Small Business/Self Employed (SB/SE) Examination completes field monitoring to determine compliance of Providers. See IRM 4.21.1, Monitoring the IRS E-file Program for SB/SE e-file Monitoring Coordinator (EMC) procedures.

SB/SE EMCs fax sanctioning sheets, with a copy of the signed sanctioning letter, to the Andover e-help Desk for input of data to the Third Party Data Store (TPDS).

EMCs may contact a designated point of contact (POC) in e-help Desk when additional assistance is needed. An example may be sanctioning sheet data that was not input correctly.

EMCs may refer firms and individuals, currently participating in IRS e-file, to the e-help Desk when information is available indicating that the firm or individual is non-compliant with tax filing and paying regulations.

To refer a non-compliant firm or individual, the EMC must fax or e-mail the following to the e-help Desk POC: the Provider name, Electronic Fling Identification number (EFIN), employer identification number or social security number of delinquent taxpayer, the applicable tax periods, and an explanation/evidence to support the suitability issue to e-Helpmail@irs.gov. For example, the EMC may identify a missing return that is not in the Taxpayer Delinquency Investigation (TDI) status, but has evidence that the ERO is liable to file the return.

When a Federal court enjoins a Provider, a Principal, or Responsible Official from filing returns, the IRS must revoke the individuals or firms from participation in IRS e-file.

The SB/SE Examination Lead Development Center (LDC) will complete and provide an e-file Revocation Request via fax to Andover e-help Desk to identify the individuals and/or firms to be revoked from participation in IRS e-file if the enjoined individuals or firms are on an e-file application. The LDC will also provide a copy of the Federal court order.

The Andover e-help Desk Assistor will take the following actions to revoke the Authorized IRS e-file Provider’s participation in IRS e-file and to ensure individuals and firms do not participate in IRS e-file in the future.

The revocation of participation in IRS e-file is not subject to the Administrative Review Process as the revocation is based on Federal court order and can not be appealed.

A firm or individual revoked from participation in IRS e-file may want to reapply to participate in IRS e-file. They will not be able to do so because their eligibility date will be set as 12/31/2099. The Assistor should request that they provide to the Andover e-help Desk a copy of a court order that indicates they are no longer enjoined from filing returns.

If the firm or individual provides a court order that indicates the firm or the individual may no longer be enjoined from filing returns, Andover e-help Desk will use the e-file Revocation Request to request a recommendation from the LDC, prior to changing the eligibility date, to allow the individual and/or firm to reapply. LDC staff will advise Andover e-help Desk, within 14 days, if it should allow the firm or individual to reapply to participate in IRS e-file.

If the LDC advises that the firm or individual may reapply to participate in IRS e-file, the assistor will update the eligibility date to the current date and advise the firm or individual of the action.

If the LDC advises the firm or individual may not reapply to participate in IRS e-file, the LDC will provide an explanation to be given to the firm or individual. The assistor will enter the explanation in the e-file application comments on the TPDS and advise the firm or individual.

Federal courts may enjoin individuals and sometimes firms from preparing returns and other activities. If the court enjoins a Provider, a Principal or a Responsible Official from preparing returns or other activity, but does not enjoin the Provider, Principal or Responsible Official from filing returns, the IRS may sanction the Provider but may not revoke the Provider's participation in IRS e-file.

The Andover Scheme Development Center (ASDC) will complete and provide an e-file Sanction Request with a copy of the court order via fax to Andover e-help Desk to identify the individuals and/or Provider to be sanctioned. The ASDC will identify the e-file infraction and recommend the Level of Infraction, the appropriate sanction, and the explanation to be included in the letter.

The Andover e-help Desk Assistor will take appropriate actions in TPDS to sanction the Providers as requested in the e-file Sanction Request from the ASDC. This includes issuance of appropriate suitability sanctioning letters.

All requests for administrative review, including request for review by the Office of Appeals, must be sent to the ASDC for its recommendation prior to a decision or forwarding to Appeals. Andover e-help Desk will use the e-file Sanction Request to request a recommendation from the ASDC regarding the administrative review and appeal. ASDC staff will advise Electronic Products and Services Support (EPSS) e-help Desk Operation within 14 days if the sanction should be upheld or reversed.

If the LDC recommends continuing with suspension or expulsion and review by the Office of Appeals is requested, the ASDC must provide documentary evidence to Andover e-help Desk for forwarding to the Office of Appeals.

The Andover e-help Desk will take the appropriate actions to sanction Providers for other suitability issues, these issues include, entering an appropriate eligibility date. Firms and Individuals who are suspended from participation in IRS e-file may not reapply prior to the eligibility date.

Two major menu areas are displayed after login;

The link for the IRS e-file Application is located under the "Application" section and is listed as "esrv-appl-efile" :

When the "process" link is accessed, the following items will display:

Under the "reports" link, the following items will display:

The following information is requested:

The following information is requested

Physical address* (enter country*, city*, state* and Postal* (ZIP code if within US)).

Business phone* and fax numbers. The country code will be automatically populated with "001" *, for the United States. This will have to be manually adjusted for other countries.

Mailing address (input if mailing address is different from the physical address). Selecting "yes" on the check box opens additional fields for mailing address information.

Select the check box if the business is open for 12 months of the year. If user selects "no" for this check box, a box will appear for an optional alternate year round address and phone number.

Input the first name, last name*, middle initial, name suffix, title, social security number*, date of birth* and e-mail address for the Principal.

Select whether the Principal is a U.S. citizen, not a U.S. citizen, or a legally resident alien.

If the Principal is also the Responsible Official, they can indicate this by answering yes to the question directly below the e-mail address.

Select the check box to indicate if the Principal being input is also the Primary Contact. If the "yes" check box is selected, the field will expand to require a Primary Contact Telephone Number.

Click the "Add" button.

The information will display in a table on the page.

Any information for the Principals may be changed by using the "edit" button.

Enter the personal information of the Principal. Select the personal information link to the right of the Principals name.

If proof of professional status is provided, select the applicable check box:

Respond to the four suitability questions for each Principal:

Enter comments for any "Yes" response to the suitability questions above.

Respond to the question, "Have you previously participated in IRS e-file?"

The last question on this page asks if the terms of agreement is signed. Select response from the drop down menu.

Input the above information for each Principal.

If proof of professional status is provided, select the Suitability Information tab at the top of the Principals table.

Select the Suitability link for an individual Principal. The Personal Suitability Information page will display.

Select the Professional Credentials tab at the top of the page.

Select professional type from the drop down menu.

Select the appropriate response from the drop down menu as to whether supporting documentation was received. If supporting documentation was not received, contact the applicant by telephone and request the documentation. If unable to contact the applicant by telephone, issue Letter 3643 (Exhibit 3.42.10-54), requesting the documentation.

Select the state that the applicant is licensed or Bonded.

Select a professional validation status from the drop down menu.

Select the current date as the professional validation status date.

Select a status, as of the effective date, from the drop down menu.

Enter comments in the comments text box, such as license number and expiration date.

Make the same entries above for each Principal on the e-file application, if applicable.

Enter the same type of information as entered for Suitability information for Principals. See IRM 3.42.10.7.4.

Enter the information for each Responsible Official.

Select the "Add" button for each Responsible Official.

Indicate whether Responsible Official is also the Primary Contact.

The information will display in a table in the middle of the page.

Enter the personal information for the Responsible Official.

Select the personal information link to the right of the Responsible Official on the Responsible Official page.

Enter the same type of personal information as was entered for the Principal. See IRM 3.42.10.7.5.

Enter the information for each Responsible Official.

Enter the same type of suitability information for the Responsible Official as entered for the Principal. See IRM 3.42.10.7.6.

Input the suitability information for each Responsible Official.

Primary contact (enter first name , middle initial, last name ,name suffix, salutation, title, country code, phone number, fax number, fax country code and e-mail address).

Alternate Contacts can be added by clicking on the triangle to the left of the field title Alternate Contacts . This allows for the contact information fields to display the same as they appear for the Primary Contact. Enter the required information and click on the Add button. The fields will blank out allowing for more contacts to be entered.

If Once the contact information has been added it can be either edited or deleted as necessary. When the edit link is selected, the corresponding contact’s information will appear in the fields above. After making the necessary changes, click on the update button and the changes will appear. Select the Save button to save all changes Remember to Save the changes. To remove an Alternate Contact, select the Delete button that corresponds with the individual being removed. If it is necessary to remove an Alternate Contact, select the delete link that corresponds with the individual being removed.

When the edit link is selected, the corresponding contact’s information will appear in the fields above. After making the necessary changes, remember to click on the update button.

Provider Option (must be selected from the drop down menu). There is a link to the right of the drop down menu to view definitions of all Provider Options. Selections are: Electronic Return Originator, Financial Agent, IRS Agent, Intermediate Service Provider, Large Taxpayer, Online Provider, Reporting Agent, Software Developer, and Transmitter. Submit application after adding provider option.

For Profit or Not for Profit business activity (select from the drop down menu).

After entering the information in Provider option and the For Profit/Not for Profit Business Activity fields, the user must select the Add button to add the information to the application. For every additional Provider option chosen, the business activity field will be auto-populated with the originally selected "For Profit" or "Not for Profit " , unless it is not allowable. The information added will be displayed in a table in the middle of the page.

When selecting Financial Agent, IRS Agent, or Large Taxpayer, the system will generate another field for Type of Business Activity. The drop down menu will feature Employee Benefit Program, Large Taxpayer, Military Base, State Government Agency, Tax Assistance Centers, Tax Counseling for the Elderly, and Volunteer Income Tax Assistance.

When selecting “Not for Profit”, the Type of Business Activity drop down menu will appear with organizations that qualify for Not For Profit status (e.g.,, Volunteer Income Tax Assistance (VITA) sites, Tax Counseling for the Elderly (TCE) sites, IRS Taxpayer Assistance Center (TAC) offices, etc.).

Forms for each Provider option should be selected from the List of Forms. After selecting all forms for a Provider and/or transmission method, select the "Add" button, provide this information for each Provider option.

The selected forms with the applicable Provider option will be displayed in a table in the middle of the page.

The system will instruct the user by way of a pop-up message that there is unsaved data if they go beyond the Forms Page without saving.

Provider Statuses are: "Applied" , "Accepted" , "Dropped" , "Non Compliant " , "Non-Compliant (8453 only)" , "Non-Compliant (Field Mntrng)" , "Rejected" (Ann/Daily Suit only), "Revoked" or "Testing" .

The three EFIN Statuses are "Dropped" , "Inactive" or "Valid/Active" .

There are four questions concerning the firm's suitability that need to be answered with a Yes or No.

Comments should be entered for any question for which a "Yes" response is selected.

Delegated Users shall only be added through the RUP.

Enter the first name, middle initial, last name, name suffix, title, SSN, and e-mail address for each Delegated User.

Is this person also a principal consent? By selecting this check box the Delegated User is given authorities equal to that of a Principal/Owner of the firm.

After entering the information, select the "Add" button.

The Delegated User information will display in a table on the page.

Select the "Delegate" Authorities link to add permissions for the Delegated User from the listing.

Input information for each Delegated User.

The "edit" button can be used to change any information for each Delegated User.

Application Statuses are "Saved" , "Deleted" , "Submitted Pending Documents" , "Submitted Reapply" , "Submitted Revised" , "Completed" , and "Submitted in Review" .

Authorized services include Transcript Delivery System (TDS), Electronic Account Resolution (EAR), and Disclosure Authorization (DA) only.

The "Application Summary" is a one page overview of the e-file application as input.

The "Application Comments" page shows remarks made by either RUP or EUP users.

After all information from Form 8633 is entered on an e-file Application, it can be submitted by selecting the "Submit" button (EUP users).

RUP users must input their 5-digit e-services PIN and select the "Submit" button.

The application is acknowledged upon submission and a transaction ID is assigned. If required fields are missing or incomplete, an error message identifying the missing information will be displayed.

A Provider that changed its organizational structure, requiring the use of a new or different Taxpayer Identification Number (TIN), must submit a new Application. A Provider that wants to open an additional e-file location from which the electronic submission of taxpayer information will occur (suitability may be required); if the entity information remains the same, both RUP and EUP users would open an existing EFIN application and select "Add New Location" from the Application Main Menu. Otherwise, RUP users select "Application, e-file Application, Create New Application" , and EUP users select "e-file, Application, Create New Application" .

An application that previously been denied participation in IRS e-file or was previously suspended and has met their eligibility date, may reapply to the program through an existing "Application" in TPDS providing the business entity has not changed. They will access the application on file and make any necessary updates (i.e. address, phone/fax, contacts) then select the Programs Applying For Link from the application menu page. Next, They will click on the Reapply link to the right of the Provider Option and the Provider Option status will move to "Applied" . They need to save their changes and Submit the application for suitability review.

For a Provider with a dropped EFIN due to inactivity, RUP and EUP users would work within an existing application and update any applicable information. All New Providers Must submit New fingerprint cards or proof of professional status. The provider status area is treated as "reapply" , however, a new EFIN will be assigned.

A Provider wants an EFIN for use by a firm in "its business-related group" as the firm can not obtain an EFIN because its Principals and/or Responsible Officials are not U. S. citizens or aliens lawfully admitted for permanent residence as described in 8 U.S.C. §1101(a)(20). The term "business-related group" applies to brother-sister firms, subsidiaries, franchises, affiliates, etc. The Provider must obtain an EFIN for each firm location as described in (4) above.

An applicant acquiring an existing IRS e-file business with current credentials by purchase, transfer, or gift, must submit a new e-file application and receive a new EFIN, ETIN, Login Identification and password. Applicants may not use the identification numbers or passwords of the previous Provider. Providers should contact the IRS, prior to the acquisition, for assistance in making a smooth transition when it will occur during a filing season. The old e-file application, associated with the business, should be put in "dropped" status. The following requirements must be met by the new applicant:

Any updates to the e-file application information should be made using the electronic e-file application. Providers may submit the above changes on Form 8633, however, Providers should be encouraged to make electronic updates whenever possible. Updates must be made within 30 days after any change. Providers must submit a revised e-file application, electronically signed by a Principal, Responsible Official or a Delegated User who has been given the authorities to make changes to an application if:

Providers must also submit a revised e-file application if there is any change to the following information:

An IRS e-file Application can also be changed through written correspondence. The correspondence should include the firm's Employer Identification Number (EIN) or Social Security Number (SSN), the firm's legal name as shown on the firm's tax returns, along with the information that they are adding or changing. A Principal or Responsible Official must sign the letter.

Any applicant that is interested in participating in Online Filing must select Online Provider from the Provider Options drop-down menu on the "Programs Applying For" page of the application or select the "Yes" check box located on line 2d of Form 8633.

If the applicant has not participated in the 1040 OLF Program previously, the Form 8633 should be marked as a new e-file application. If the applicant has previously participated in the OLF Program and made changes since its last e-file application, the form will be marked as a revised e-file application.

Applicants should submit the electronic application or complete and mail the Form 8633 to the Andover Campus. Required supporting documentation should be included with each application.

When an online Provider subsequently requests a regular EFIN using Form 8633, special procedures are required to generate a regular and online EFIN within the same application.

When an e-file application is received via the Registered User Portal (RUP) and both the ERO and online Provider options were selected, the application will be moved through the auto-pass process and will generate an online EFIN and ETIN after the Provider status is moved to "accepted" status.

States participating in IRS e-file are required to file an e-file application for state acknowledgement (State Ack). Participating Federal /States can send their state acknowledgements to Electronic Management System (EMS) so that trading partners can receive them when receiving their federal acknowledgements.

The system will automatically assign an EFIN for the e-file application, but sometimes it is necessary to manually assign it. To do this:

The Third Party Data Store (TPDS) will receive updated ZIP code/Universal Location Code (ULC) tables twice a year using the authoritative source table available on the IRS mainframe.

TPDS associates a ULC to each applicant record based on the ZIP/postal code of the physical address on the e-file application.

Upon submission of an e-file application, the system will attempt to assign an EFIN. If TPDS is unable to match the ZIP code of the physical address with the ZIP code/ULC table, it will create a work list item to the Andover e-help Desk Leads Group work list with the APP_PHY_ZIP_NVLD_IRS business activity name.

If an EUP user attempts to manually assign an EFIN when the ZIP code of the physical address is not found in the ZIP code/ULC table, TPDS will produce the following error message: An EFIN cannot be assigned. The ZIP code entered for the physical address on this application was not found on our valid ZIP code table. Confirm the validity of this ZIP code at ZIP Code Lookup and correct it if necessary. Notify a system administrator if you find that the ZIP code entered on the physical address is valid.

If an e-file application is submitted through the Registered User Portal (RUP) or Employee User Portal (EUP), and the system attempts to assign an EFIN but cannot due to the ZIP Codes, TPDS will assign a work list item to the ANSC Leads Group with the APP_ULC_UNAVAIL_IRS business activity name. The assistor will take the following steps:

The user enters the requested information for the e-file application.

The e-file application status defaults to "Saved" in the system.

When the e-file application is submitted, the system always initially displays the Status" Submitted Pending Documents" .

If no documents are needed, the following day the system changes the application status to "Submitted New" and generates an EFIN.

If suitability is required, the system processes the application as Auto ASAP with Hits or Auto ASAP with No Hits.

If no suitability is required (for example, not-for-profit organizations) or if the suitability has been manually passed by an assistor, the system changes the application status to "completed."