Any return preparer who anticipates preparing and filing 11 or more returns during a calendar year must use IRS e-file. Applicants must meet eligibility criteria and pass a suitability check before an Electronic Filing Identification Number (EFIN) is issued. If the suitability check fails, the IRS will notify the applicant of the denial to participate in IRS e-file. In most circumstances, denied and sanctioned providers are entitled to an administrative review by the IRS. If the reviewing office affirms the sanction, providers may request an appeal with the IRS Independent Office of Appeals unless the sanction is a written reprimand.

As stated in IRC 7803(e)(3), Purposes and Duties of Office, the Appeals mission is to resolve Federal tax controversies without litigation on a basis which is fair and impartial to both the government and the taxpayer, promotes a consistent application and interpretation of, and voluntary compliance with, the federal tax laws, and enhances public confidence in the integrity and efficiency of the IRS.

Appeals accomplishes this mission by considering protested and Tax Court cases and negotiating settlements in a manner which ensures Appeals employees act in accord with the Taxpayer Bill of Rights (TBOR) in every interaction with taxpayers.

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights. For additional information about TBOR, see https://www/irs.gov/taxpayer-bill-of-rights.

IRC 6011(e)(1) gives specific authority for the Service and the Treasury Department to “prescribe regulations providing standards for determining which returns must be filed on magnetic media or in other machine-readable form.” Revenue Procedure 2007-40 informs Authorized IRS e-file Providers of their obligations to the Internal Revenue Service, taxpayers, and other participants in the IRS e-file Program, and combines the rules for governing IRS e-file.

The Policy analyst shown on the Product Catalog page as the originator is the assigned author of this IRM.

Policy, Planning, Quality, and Analysis (PPQ&A) provides trend and data analyses and detailed summary reports for Appeals.

See IRM 8.1.1-1, Common Terms Used in Appeals, for common terms and definitions used in IRM Part 8. Terms listed in this exhibit are not included in this section.

The table lists commonly used acronyms and their definitions:

This IRM is the primary source of guidance on this program. The following provide additional sources of guidance.

All Authorized IRS e-file Providers, except those that function solely as Software Developers, IRS sponsored Not for Profit organizations, and Large Taxpayers, pass a suitability check on the firm as well as on all Principals and Responsible Officials of the firm prior to acceptance in IRS e-file. The IRS reviews each firm or organization, Principal, and Responsible Official listed on the IRS e-file Application. An applicant, Principal, or Responsible Official may be denied participating in IRS e-file for a variety of reasons that include, but are not limited to:

IRM 3.42.10.14.6.1, Reasonable Cause for Suitability Literals, addresses reasonable cause.

An applicant, Principal, or Responsible Official who is denied participation in IRS e-file has the right to an administrative review. Within 30 calendar days of the date of the denial letter from the Director, Electronic Products & Services Support, they may upload/fax/mail a written response to the site/fax number/address shown on the denial letter. Upon receipt of the written response, the IRS will reconsider the denial of participation in IRS e-file. That denial may either be

An applicant, Principal, or Responsible Official who receives a second denial letter from the Director, Electronic Products & Services Support, is entitled to an appeal. The appeal must be uploaded/faxed/mailed to the site/fax number/address shown in the second denial letter within 30 calendar days of the date of the second denial letter. The written appeal must contain detailed reasons, with supporting documentation, showing why the recommended sanctioning should not be imposed. Failure to respond within 30 calendar days beginning with the date of the proposed sanctioning letter described above, terminates the right to an administrative review or an appeal.

Cases originating from EPSS in Andover and SBSE Field will use the paperless process.

ATEs may receive the following types of e-file cases:

The ATE should issue the e-file initial contact Letter 4301 from APGolf. The purpose of the e-file initial contact letter is to provide a contact person’s name and phone number, schedule a conference, and inform the Provider what can be expected from Appeals in the resolution of the case.

The ATE assigned to work the case will review the case file prior to issuing the initial contact Letter 4301, Acknowledgement Letter-ERO Initial Contact. The initial contact letter will:

At the conclusion of the conference, the ATE will prepare an Appeals Case Memorandum (ACM) in each case. The Decision may be:

Each ACM should contain:

An e-file case may be received in Appeals with a CI indicator present. These modules will have a freeze code on the Integrated Data Retrieval System (IDRS).

Any cases with a CI indicator will not be worked in Appeals as Appeals does not have jurisdiction over the case. The case will be returned to Andover e-Help as a Premature Referral. ATE will:

Occasionally Appeals receives cases where the appeal was untimely. If the ATE determines the appeal is untimely, the ATE will:

When an appellant withdraws the request for an appeal, the appellant's appeal is now moot. If an appellant withdraws the request for an appeal, the ATE will:

Occasionally Appeals receives cases that are premature for consideration, such as incomplete compliance actions, pending claims for abatement/refund or an incomplete case file. If the ATE determines the case is not ready for Appeals consideration, the ATE will:

In each case, the ATE will document the case activity record on the outcome of the conference and prepare:

Enter the appropriate closing code for the e-file case on the customized Form 5402: