The taxpayer’s signature on Form W-7 authorizes the IRS to disclose to the AA only information necessary to resolve matters about assignment of an ITIN, including any previously assigned taxpayer identifying numbers.

The Jurat, penalty of perjury statement, found in the Sign Here area of the Form W-7 serves as the authorization to release the information. Do not release other information that is not necessary for the assignment of the ITIN but found on the accompanying tax return or on IDRS.

Refer to IRM 3.21.264.3.3, Disclosure Guidelines for Acceptance Agents, above for more information on disclosure.

Acceptance Agent and Certifying Acceptance Agent (AA/CAA) must initially follow routine procedures (including Form W-7, Application for IRS Individual Taxpayer Identification Number, and related publications) for questions about the status of an ITIN. If they need more guidance, they must call the applicable number provided in the AA/CAA agreement.

Acceptance Agents must use the most current revision of Form W-7, Application for IRS Individual Taxpayer Identification Number, which is available on www.IRS.gov. The AA/CAAs must follow established procedures for completing Form W-7, and attach the required valid U.S. tax return or evidence that they meet one of five exceptions.

If they wish to use a substitute form other than the original Form W-7, they must first obtain approval from the IRS. Refer them to Pub 1167, General Rules and Specifications for Substitute Form and Schedules, which guides them through preparing an acceptable privately designed and printed or computer-prepared and computer-generated substitute application.

All Form W-7, Application for IRS Individual Taxpayer Identification Number, is submitted by an AA or CAA must meet supporting identification documentation requirements by proving identity and foreign status.

AAs and CAAs must also attach valid exception documentation to prove the applicant has met an exception to the filing of a valid U.S. tax return.

Form W-7, submitted by a CAA must have a Form W-7 (COA), Certificate of Accuracy, attached with copies of the original or certified copies for the primary, secondary and dependent. The W-7 COA stipulates that to the best of the CAA’s knowledge, the applicants supporting identification documentation is authentic and accurate.

Any eligible individual or entity can apply to become an Acceptance Agent. Persons eligible to be an Acceptance Agent include:

Everyone listed as an authorized party on the application must be at least 18 years of age when application is submitted.

An Employer Identification Number (EIN) is required.

A Preparer Tax Identification (PTIN) is required. See www.irs.gov/ptin.

Except for applications from VITA/TCE partners, all existing CAAs must provide an original certificate of completion from the vendor for the forensic document training course.

Suitability is the process used by the IRS to determine if the firms and individuals listed on applications are appropriate to participate in the IRS Acceptance Agent program.

The IRS sets suitability standards to screen and monitor applicants to ensure that they maintain a high degree of integrity and adhere to the highest professional and ethical standards.

Suitability checks may include standard background check (Accurint check), credit history check, and IRS tax compliance check.

The suitability statuses are Expelled, Failed, In Process, Incomplete, None, None Required, Passed, Re-check, Re-run and Revoked.

Applicants must submit to suitability checks before being authorized to act as an Acceptance Agent (AA).

Suitability checks are not conducted on the following:

Suitability checks for new applications are normally completed within 45 calendar days of submission if all necessary documentation was provided and processed.

For initial suitability, applicants that require a suitability check are added to the daily ASAP extract for processing. The program updates the ASAP results with a "Hit" or "No Hit" and provides comments in the file when there are hits. Kansas City Submission Processing Center (KCSPC) Leads will review a case for the hits and assign them to a tax examiner for research and follow up.

There are several business rules related to initial suitability:

The Eligibility BRs are run first followed by Suitability checks.

If the Legal Entity selected is Not-for-profit, only the Business Rules will be run against the firm and users on the AA Location Application on Application Submission / Resubmission except:

ESAM will run applicable eligibility/suitability checks against the firm and users on AA Location Applications upon application submission or resubmission. On submission of an AA Location Application, applicant(s) that are listed as a Responsible Official / Principal on an E-FILE Application whose suitability is set to Passed will only require:

ASAP Suitability Checks cannot be run against Responsible User Portal (RUP) users with an ITIN so the following Business Rules (BRs) would not be run against them.

The ASAP program uses predetermined criteria from Master File (MF) to identify acceptance agent’s potential eligibility and IMF/BMF compliance issues.

The table below illustrates the criteria used in the Automated Suitability Analysis Program (ASAP):

ASAP is used for new, reapply and revised applications.

New issues that did not appear through Business Rule results may be identified through research by the Tax Examiner.

) Review the comments to see if prior Business Rule issues were identified.

Check for pending or posted OIC, (TC 480). Programs will check for TC 480 (offer pending), TC 481 (offer rejected) and TC 482 (offer withdrawn). The tax examiner will check CC TXMOD, IMFOL and BMFOL for these transaction codes.

Programs will check the cumulative balances greater than or equal to ≡ ≡ ≡ ≡ within the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡. The tax examiner will also check for and include ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

Check CC IMFOL, CC BMFOL, CC TXMOD, CC ENMOD and CC INTST for pending or posted transactions which would resolve the literal/hit or issue.

The tax examiner will check for any uncollectable account. If TC 530 (Currently Not Collectible Account) is present on all balance due accounts, pass, unless any of the TC 530 closing codes listed in the following chart are present.

If TC 530 is NOT present on all accounts and cumulative balance of the accounts on which TC 530 is not present is ≡ ≡ ≡ ≡ or greater, send letter to resolve those accounts. If the balance is less than ≡ ≡ ≡ ≡, then pass.

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

If the research shows no returns posted for the ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ and MF status is 02, 03 or expired 04, the tax examiner must request the return(s) if extension due date has expired.

The tax examiner must check CC IMFOL, BMFOL, TXMOD and TRDBV for an extension, posted or pending returns. The tax examiner must allow an additional 45 days from the due date or extension to allow for the processing of the tax return.

Check CC INOLE for a spousal cross-reference SSN. If a cross- reference SSN is found, check CC IMFOL under the cross-reference SSN for a joint return. See Document 6209 for Transaction Code (TC), Status Code (SC), and IDRS Information:

Research all EINs on IDRS using CC BMFOL.

For BMF accounts, check CC INOLE for Filing Requirement Code 11 (seasonal filer) for Form 941, Employer’s Quarterly Federal Tax Return.

Check for TC 610 showing a payment received with a return, but the return has not yet posted. If TC 610 is present, pass; if TC 610 is over one year old, send the appropriate letter.

Use the following table to determine the status of a tax module and whether it passes or fails:

Research IDRS (CC SUMRY) or SC-STS (Service Center Status) on (CC TXMODA) to determine the most status of a module.

Programs will check for any fraud penalties (TC 320) assessed ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

For specific “Pass” or “Fail” instructions, see, Suitability Procedures after Research.

Initial ASAP will check for any cross-referenced SSNs that may be related to the individual(s) SSN listed on any application. This literal is suppressed for continuous suitability review.

If the above literal appears with literal “No Suitability Checks Met Against MF” and SSN, the assistor will verify that the SSN has filed jointly with the individuals listed on the application.

Each individual who is a Principal or Responsible Party must be a United States citizen or a resident alien lawfully admitted for permanent residence as described in 8 U.S.C. § 1101(a)(20)(1994). The term alien means any person not a citizen or national of the United States. The term "lawfully admitted for permanent residence" means the status of having been lawfully given the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws, such status not having changed. A resident alien lawfully admitted for permanent residence (Lawful permanent resident or LPR) often are described as Permanent Resident Alien, A Resident Alien Permit Holder, or a Green Card Holder.

Applicants that are required to be fingerprinted will have an Accurint background investigation done instead and are not considered for acceptance into Acceptance Agent program until any applicable results are received and analyzed.

Employees must request access through Business Entitlement Access Request System (BEARS). Once you have access and a password, take the following steps to determine if there is any criminal activity:

If convictions or indictments are found, adjudication may recommend that the applicant be denied participation.

Adjudication will evaluate other items on the criminal record to determine if the nature of the items will adversely impact IRS Acceptance Agent program.

The following do not have to submit to Accurint check:

User authorities for the Authorized User Page includes:

To input the personal credentials of the Principal or Responsible Party, click on the Application Summary and then select the personal credentials link.

If the individual is a professional, select one or more of the professional statuses from the "Add Credentials" drop-down and provide the applicable information. The "Add Professional Status" drop-down menu contains the following list.

An Attorney or CPA enters the state license/credential number and indicates if the license/credential has an expiration date or not. If it has a date, enter it.

An Enrolled agent cannot enter the enrolled agent number. The application will automatically populate this number when the enrolled agent check box is selected on this screen and the system validates it against the Enrolled Practitioner System (EPS).

An officer of a publicly owned corporation needs to submit proof on corporate letterhead which carries their name as an officer, the stock symbol, the exchange where listed and the name under which the stock is traded for the individuals listed as Principal and/or Responsible Party.

If a Responsible Party (RP) changes, the AA application will not be processed if you have not selected a professional status, entered required information and each RP has signed the jurat under penalty of perjury. The IRS will verify professional status and may request additional information and/or document as evidence.

Each Principal and Responsible Party must answer the personal suitability questions and accept the terms of agreement by selecting the Personal Suitability Answers and TOA Signature link on the Application Summary screen.

Each new Principal and Responsible Party must respond to the three suitability questions:

The system requires comments for "Yes" or "No" responses to the suitability questions as described above.

Each new Principal and Responsible Party must sign using their Personal Identification Number (PIN), acknowledging they have read:

A Preparer Tax Identification Number (PTIN) must be obtained by all enrolled agents, as well as all tax return preparers who are compensated for preparing, or assisting in the preparation of all, or substantially all, of any U.S. federal tax return. The principal, partner or owner listed on the acceptance agent application must also include their PTIN, if issued.

Except as showed below, all responsible parties listed on the application must include their PTIN.

To research a PTIN use IDRS (CC RPVUE) with the current processing year as showed below:

Use the following table to determine what action to take when a PTIN is researched:

Tax Examiners are to add comments in ESAM.

All Responsible Parties listed on a CAA application must complete a forensic document training course by an accredited vendor. The training is at the CAAs own expense and must provide the skills to effectively recognize fraudulent documents, particularly passports, driver’s licenses, birth certificates, visas, national identification cards, military and US state ID cards. To identify a provider, Tax Examiners must direct applicants to the internet for a vendor. The IRS does not endorse any specific individual or firm.

For an amended CAA application adding a new Responsible Party and all new or renewal CAA applications, the original FDTC certificate must be provided with the application.

The following certificates are not acceptable:

Questionable certificates are referred to the IPS for a determination/decision on their validity on whether they meet the requirements for fraudulent document identification.

Tax Examiners are to add comments in ESAM stating the receipt of original FDTC including the date taken.

The CAA DUT is the platform that is used by employees and AA applicants. AA applicants submit their credentials, forensic document training certificate, green card, etc., through the CAA DUT. Employees with check the CAA DUT often for receipt of files.

Foreign nationals without an SSN must submit their entire AA package through the CAA DUT. Leads retrieve the package and enter the information into ESAM.

IRS employees use the CAA DUT to issue letters to AA applicant.

Applications that are missing documents, incomplete, or rejected for a tax compliance failure is returned to the applicant.

Indicated in the table below is a list of letters used to communicate with a representative about their application.

Once an application has been submitted, the system reviews it daily for pending documentation for up to 45 days.

If documentation is received and additional suitability research is required, a case is generated for review.

If the application is new and has been pending documents for 45 days, the application status will move to "Deleted" on the following day.

When assigned any case with the business rule of "Continuous Suitability" , "Prisoner/Convict" , "Date of Death Exists for RO/Contact" , or "Resubmission Required" , the case will remain on the assistors "My Cases" until completion.

These types of cases either move suitability to "Recheck" systematically or the assistor moves them to "Recheck" .

When working these types of cases and the suitability is addressed as normal:

ESAM will run applicable eligibility/suitability checks against the firm and users on AA Location Applications upon application submission or resubmission.

Business Rule (BR) "Hit" opens Application Case.

Business rules are as follows and are shown in a predetermined prioritized order as follows:

An EUP role will be associated with workgroups in ESAM. When cases are generated, they will be assigned to specific workgroups initially.

ESAM automatically assigns the case to the designated AA workgroup associated with the Primary Issue per the ESAM Case Priority table . See IRM 3.21.264.7.4.

A description of workgroups are as follows:

EUP Assistor users granted all standard authorities regarding AA Location Applications (Application related Authorities):

IPS will determine the method to select CAAs for compliance reviews by SB/SE Examination. Once the number of CAA reviews have been approved, a spreadsheet with the pertinent information is securely e-mailed to the designated Point of Contact (POC) in EPD and Examination Policy.

EPD will establish each case file on the designated site and ensure the following is included:

The area PSP TMs will provide the list of CAAs for their areas to their PSP CAA/ITIN coordinator. The area PSP CAA/ITIN coordinator will evaluate the geographic locations of the staffing personnel in the area to determine the number of participants to monitor CAAs. They will then distribute the list to the group managers for assignment to trained monitors. The group managers will relay the assignment information back to the area who will relay it to EPD.

The area PSP CAA/ITIN coordinator will coordinate with the field to ensure all participating monitors attend the CAA compliance review training.

The area CAA/ITIN coordinator monitor the cases and track the progress of the assigned visits. They also address any inquiries from the monitors during the process.

Visits must be made by appointment. Upon receipt of the CAA case file, the monitor must send Letter 6286, Appointment Notice, to schedule an initial appointment. The letter will inform the CAA of the purpose of the visit and the approximate time needed to perform the compliance review. If the CAA does not respond to the letter within 10 calendar days, the monitor must try to reach them by telephone using the contact information in the case file. If the monitor reaches the CAA, they can negotiate a date for the visit.

If the monitor is not able to contact the CAA via telephone or letter, the monitor will contact the area PSP CAA/ITIN coordinator who will notify the IPS via e-mail.

It is recommended to conduct the interview prior to reviewing the CAA’s records. Interviews must only be conducted with the responsible party as listed on the application information sheet or person designated by the responsible party to act in their absence or contact or alternate contact as showed on the application information sheet.

All visits must be conducted in a professional and courteous manner. Visits are conducted at the physical business location of the CAA.

Monitors must use the CAA Compliance Review DCI to capture the results of the compliance review visit. The DCI for a specific CAA will already be in the case file for the assigned monitor.

The CAA review includes, but is not limited to the following:

Reasonable cause is considered by the ITIN Policy Section when addressing the CAA’s explanations for the non-compliance. The monitor must therefore include in the file any explanation or information the CAA provides. For example, the destruction of records due to a casualty qualifies as reasonable cause. The casualty must be substantiated by fire department or police records. The CAA must provide documentation that the circumstance was beyond their control and reasonable actions were taken to resolve the noncompliance as quickly as possible for reasonable cause to be present.

The following techniques may be used to identify potential violations within the AA Program. The list is not all inclusive, and the monitors may develop their own techniques to identify violations.

During the CAA visit, the monitor may recognize compliance issues. Remember that the purpose of the visit is strictly to focus on the CAA’s adherence to the guidelines in Rev. Proc. 2006-10, 2006-1 C.B.293, the CAA Agreement, and Publication 4520. If a compliance issue arises outside the parameters of the visit, a "Referral" must be made to the IPS for further action.

If the CAA has knowledge of other CAAs incorrectly completing the Form W-7, claiming dependents that may not be allowable to claim the Child Tax Credit (CTC) or Additional Child Tax Credit (ACTC), you can accept the information or tell the CAA to e-mail the ITIN Policy Section (IPS) at ITINProgramOffice@irs.gov. Ask them to include all information they have including copies of violations if possible.

It is very important that the monitor document their observations. The monitor will need to provide all pertinent information in the Comments section of the DCI or in a separate document. The IPS will use the monitor’s data to evaluate the CAA’s compliance to program guidelines and send the CAA a letter.

The IPS will decide the seriousness of the reported violations and issue the correct sanctioning letter.

The IPS will issue an acceptance, warning, probation or termination letter to the CAA depending on the severity of the violation.

At the conclusion of the compliance review visit, the monitor must complete all related compliance review documents and upload them in the assigned case folder for that CAA on the designated SB/SE site. Generally, the file must be closed within five workdays of the visit from the group. Monitors must explain any delays in closure exceeding this time frame on Form 9984, Examining Officer’s Activity Record.

The case file must include but is not limited to the following:

The area PSP CAA/ITIN coordinator is a direct link between the monitor and the headquarter analyst. The area PSP CAA/ITIN coordinator has several responsibilities before the case can be closed to ITIN Policy Section (IPS).The area PSP CAA/ITIN coordinator responsibilities include but are not limited to the following:

The Area PSP CAA/ITIN coordinator will review the cases, retain a copy of Form 9984, Examining Officer’s Activity Record (electronic or paper) for their records. The coordinator must ensure the case file, including the completed DCI and related documents, are uploaded on the designated site.

The designated IPS analyst will review the closed case files on the site to ensure they are complete.

SB/SE keep a CAA Monitoring Document to keep track of the progress of the on-site compliance reviews.

Area PSP CAA/ITIN Coordinators must monitor this document and update to annotate follow-up actions, completion dates and closures. This document must be available to headquarter analysts for interim status reports. All applicable fields in the CAA Monitoring Document must be completed.

The CAA Monitoring Document may contain a selection of items listed below:

The IPS Analyst contacts the CAA to request information to conduct the correspondence review using the Initial Correspondence Compliance Letter.

The correspondence review letters request copies of the following:

The CAA is allowed 30 days to respond with requested information.

The IPS Analyst reviews the information returned by the CAA to ensure that all information requested is received and takes the following initial actions:

Refer to the table below for other appropriate Analyst responses to the CAA:

Once the response is received the IPS Compliance Analyst must follow instructions below:

The IPS will monitor a CAA for conformity with all rules and guidelines governing the IRS ITIN AA Program.

The IPS will monitor the CAA’s compliance in the following areas:

Use reasonable cause criteria when addressing the above,

In all cases, the IPS will review all the factors relevant to the violation. When the violation is minor, a written reprimand (warning) is issued. See Letter 6284, Warning Notice

Level one (minor infractions) characteristics include:

Level one infraction examples include:

Apply reasonable cause criteria when addressing the above examples. If the violation is due to lack of proper internal controls or office policy, consider a level two infraction.

In most situations, the CAA can correct or take corrective action to resolve the minor violation immediately.

When the violation is major, a written reprimand (probation) is issued. See Letter 6281, Probation Notice. Level two (serious infractions) include:

Level two infraction examples include:

Level two infractions generally result in:

CAA may submit a written request for reconsideration within 45 days of the date of the letter. A second compliance review must be conducted after a year to ensure corrective measures have been taken. If the results are favorable, they may request reinstatement as a CAA in writing. If the results are not favorable, they will remain an AA for the duration of their agreement.

When the violation is major and egregious, notification of termination from the AA Program is issued. See Letter 6280, Termination Notice. Level three (major infractions) characteristics include:

Level three infractions are violations of rules governing IRS AA Program, that, in the opinion of the Service, have a significant adverse impact on the quality of submitted Form W-7 applications. Level three infractions include continued level two infractions after the Service brought the level two infraction to the attention of the CAA. Some level three infractions may result in termination from the IRS AA Program and referral to Compliance for a preparer project.

The following reasons (not all inclusive) may lead to termination of a CAA from the AA Program:

Egregious infractions such as tax fraud and unethical practices in Form W-7 preparation may result in termination from the AA Program. Examples include:

Certifying Acceptance Agents may submit a written request within 45 days of the date of the Compliance Review letter to the ITIN Policy Section (IPS) for reconsideration of a Compliance Review determination for their organization. The request must be mailed to the IRS, ITIN Policy Section, Mail Stop 97-WI, 401 West Peachtree Street, NW, Atlanta, GA 30308. In order for a Compliance Review determination to be changed the CAA must be able to provide documentation related to the stated infractions that was available at the time the initial W-7 application was prepared or Compliance Review visit occurred.

IPS will review the case and reconsideration letter request and determine if a change in the initial determination is warranted. If the CAA provides the necessary documentation, an adjustment is made which could result in removal of the initial infraction(s) cited and a change in the initial Compliance Review determination. IPS will notify the CAA of the result of their reconsideration request by mail within 30 days of receipt of the request.