In general, you can deduct only 50% of your business-related meal and entertainment ex-penses.  (If you are subject to the Department of Transportation's "hours of service" limits, you can deduct a higher percentage. See In-dividuals subject to "hours of service" limits, later.) The 50% limit applies to employees or their employers, and to self-employed per-sons (including independent contractors) or their clients, depending on whether the ex-penses are reimbursed. Figure A summarizes the general rules explained in this section. 

Generally, business-related meal and enter-tainment expenses are subject to the 50% limit. Figure A can help you determine if the 50% limit applies to you.  Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions.

1 – Employee's reimbursed expenses.

If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an account-able plan. Accountable plans are discussed in chapter 6.

2 – Self-employed. If you are self-employed, your deductible meal and enter-tainment expenses are not subject to the 50% limit if all three of the following requirements are met.

1) You have these expenses as an inde-pendent contractor.

2) Your customer or client reimburses you or gives you an allowance for these ex-penses in connection with services you perform.

3) You provide adequate records of these expenses to your customer or client. (See chapter 5.) In this case, your client or customer is subject to the 50% limit on the expenses.

Example. You are a self-employed attor-ney who adequately accounts for meal and ntertainment expenses to a client who reim-burses you for these expenses. You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. If the client can deduct the expenses, the client is subject to the 50% limit.   If you (the contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the   client for those expenses, you are subject to  the directly-related or associated test and to  the 50% limit.

3 – Advertising expenses. You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. For ex-ample, the expense of sponsoring a television or radio show is deductible, as is the expense of distributing free food and beverages to the general public.

4 – Sale of meals or entertainment. You are not subject to the 50% limit if you actually sell meals, entertainment, goods and ser-vices, or use of facilities to the public. For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is a busi-ness expense.

5 – Charitable sports event. You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qual-ified charitable sports event. For the condi-tions the sports event must meet, see Ex-ception for events that benefit charitable organizations under Entertainment tickets, earlier.

Florida's intangible personal property tax is an annual tax based on the current market value, as of January 1, of intangible personal property owned, managed, or controlled by Florida residents or persons doing business in Florida.

What is Taxable?

The tax applies to intangible assets such as:

• stocks
• mutual funds
• bonds
• loans
• money market funds
• notes
• accounts receivable
• interest in limited partnerships registered with the Securities and Exchange Commission.

Who Files and How?

Every Florida resident who (on January 1) owns, manages, or controls intangible personal property must file an Intangible Tax Return for Individual and Joint Filers  (Form DR-601I).   Florida residents whose intangible assets are held by security dealers and/or stock brokers are also required to file. You are considered a Florida resident when your true, fixed or permanent home and/or principal establishment is in Florida.  You can establish Florida residency by filing a declaration of domicile, qualifying for homestead exemption, or registering to vote.  Other actions, such as obtaining a Florida driver's license, can indicate an intent to establish residency. Although everyone owning intangible personal property is subject to the tax, only those persons whose tax obligation is $60 or more must file a return and pay the tax.

What is Exempt?

• Money (including cash-on-hand and in checking or savings accounts), certificates of deposit (CDs), annuities, and cash values of insurance policies;
• All intangible property held in an individual retirement account (IRA) qualified under section 408, U.S.I.R.C., as amended;
• All intangible property held in an employee retirement plan qualified under section 401, of the U.S. Internal Revenue Code, (I.R.C.) as amended;
• Deferred compensation plans offered to government employees when qualified under section 457 of the Internal Revenue Code;
• Bonds, notes, and other obligations issued by Florida or its municipalities, counties, and other taxing districts, or the U. S. government and its agencies, territories, and possessions (if these investments are held in a fund they may be taxable);
• Interest in a limited partnership not registered with the Securities and Exchange Commission;
• Interest in a general partnership;
• Franchises;
• Notes and other obligations for payment, except bonds, to the extent secured by liens on real property;  and
• One-third of accounts receivable arising out of trade or business.

How Tax is Calculated

Individual Filers

The first $20,000 of taxable assets are exempt.  Taxable assets valued between $20,000 and $100,000 are taxed at $1 per thousand dollars of value. Taxable assets valued at more than $100,000 are taxed at $1.50 per thousand dollars of value.

Joint Filers

The first $40,000 of taxable assets are exempt. Taxable assets valued between $40,000 and $200,000 are taxed at $1 per thousand dollars of value. Taxable assets valued at more than $200,000 are taxed at $1.50 per thousand dollars of value.

Discounts

If you file between January and the end of May, you qualify for a discount.  The earlier you file, the greater the discount.

When Tax is Due

Intangible tax returns may be filed as early as January 1 and are late if postmarked after June 30.  If June 30 falls on a Saturday, Sunday, or legal state or federal holiday, the return must be postmarked (or delivered to the Department) on the next working day to be considered timely.  Late returns are subject to penalties and interest. You cannot file your return prior to January 1, because intangible personal property is taxed at its just valuation as of January 1.

Penalty and Interest

Returns or payments postmarked after June 30 are subject to the following penalties:

A qualifying child must meet three tests — relationship, residency and age. The specific details of these three tests can be found in Publication 596 and in the Schedule EIC instructions.

• Modified Adjusted Gross Income must be less than $30,580 with two or more qualifying children or $26,928 with one qualifying child.

• Child must live with you in the United States for more than half the year (a whole year for an eligible foster child).

• Taxpayer must submit proof of earned income. Earned income and adjusted gross income must not exceed certain limits.

• Return must cover 12 months.

• Filing status cannot be married filing separately.

• A qualifying child cannot be the qualifying child of another taxpayer.

• Qualifying child cannot be the qualifying child of another taxpayer whose adjusted gross income is more than yours.

• If you claim a child who is married as a qualifying child on your return, you usually must also claim that child as a dependent.

• Must provide valid and correct SSN for qualifying child or children.

• Must have earned income that is $10,200 or less.

• Earned income and adjusted gross income must not exceed certain limits.

• Return must cover 12 months.

• Filing status cannot be married filing separately.

• Cannot be the qualifying child of another taxpayer.

• The taxpayer (or spouse, if filing jointly) must be at least 25 but under 65 years old before the close of the tax year.

• Cannot be eligible to be claimed as a dependent on anyone else’s return.

• Main home must be in the United States for more than half the year.

SECTION 5. RESPONSIBILITIES OF AN AUTHORIZED IRS e-file PROVIDER

.01 To ensure that complete returns are accurately and efficiently filed, an Authorized IRS e-file Provider must comply with all publications and notices of the Service relating to the Form 1040 IRS e-file Program.

The Service will from time to time update such publications and notices to reflect changes to the program. It is the responsibility of the Authorized IRS e-file Provider to ensure that it complies with the latest version of all publications and notices. The publications and notices governing the

Form 1040 IRS e-file Program include:

.02 An Authorized IRS e-file Provider must maintain a high degree of integrity, compliance, and accuracy.

.03 An Authorized IRS e-file Provider may accept returns for the Form 1040 IRS e-file Program only from the taxpayer filing the return, Drop-Off Collection Points as listed on the ERO's Form 8633 (see section 4.18 of this revenue procedure), or from another Authorized IRS e-file Provider.

.04 If the taxpayer's address on a Form W-2, Wage and Tax Statement, Form W-2G, Statement for Recipients of Certain Gambling Winnings, Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., Form 1040, Schedule

C, Profit or Loss From Business (Sole Proprietorship), or Form 1040, Schedule C-EZ, Profit or Loss From Business -- Short Version, or any other tax form is different than the taxpayer's address in the entity section of the electronic portion of the taxpayer's Form 1040, the ERO or the Service Bureau must input for transmission to the Service those addresses that differ from the taxpayer's address on the electronic portion of the taxpayer's Form 1040.

.05 If an Authorized IRS e-file Provider charges a fee for the transmission of the electronic portion of a tax return, the fee may not be based on a percentage of the refund amount or any other amount from the tax return. An Authorized IRS e-file Provider may not charge a separate fee for Direct Deposit. See section 9 of this revenue procedure.

.06 An Authorized IRS e-file Provider must submit a revised Form 8633 (or a letter as provided in section 4.04 of this revenue procedure) to the Application Processing Center within 30 days of when any of the conditions or changes described in section 4.03 or 4.04 of this revenue procedure occur. See section 4.06 of this revenue procedure.

.07 An Authorized IRS e-file Provider must notify the Application Processing Center (at the address listed in the instructions for Form 8633) within 30 days of discontinuing its participation in the Form 1040 IRS e-file Program. This does not preclude reapplication in the future.

.08 An Authorized IRS e-file Provider must ensure that it promptly processes returns submitted to it for electronic filing. See sections

5.14, 5.15, 5.16, and 7.01 of this revenue procedure. However, an Authorized IRS e-file Provider that receives a return for electronic filing on or before the due date of the return must ensure that the electronic portion of the return is transmitted on or before that due date (including extensions). An electronically filed return is not considered filed until the electronic portion of the tax return has been acknowledged by the Service as accepted for processing and a completed and signed Form 8453 has been received by the Service. However, if the electronic portion of a return is successfully transmitted on or shortly before the due date and the Authorized IRS e-file Provider complies with section 7.01 of this revenue procedure, the return will be deemed timely filed. If the electronic portion of a return is transmitted on or shortly before the due date and is ultimately rejected, but the Authorized IRS e-file Provider and the taxpayer comply with section 5.13 of this revenue procedure, the return will be deemed timely filed. For a balance due return, see section

11 of this revenue procedure for instructions on how to make a timely payment of tax.

.09 An Authorized IRS e-file Provider that functions as an ERO must:

(1) comply with the procedures for completing and securing Forms 8453 described in section 7 of this revenue procedure;

(2) comply with the procedures described in section 11 of this revenue procedure for handling a balance due return;

(3) while returns are being filed by the ERO, retain and make available to the Service upon request the following material at the business address from which a return was accepted for electronic filing:

.11 An ERO must identify the paid preparer (if any) in the appropriate field of the electronic portion of the return and ensure that the paid preparer signed Form 8453. If Form 8453 is not signed by the paid preparer, the ERO must attach to Form 8453 a copy of pages 1 and 2 of the Form 1040EZ, Form 1040A, or Form 1040 signed by the paid preparer. These copies must be marked "COPY-DO NOT PROCESS" to prevent duplicate filings.

.12 An ERO must ensure against the unauthorized use of its EFIN and, if applicable, the CPIN(s) issued to its Drop-Off Collection Point(s). An ERO must not transfer its EFIN or the CPIN(s) of its Drop-Off Collection Point(s) by sale, merger, loan, gift, or otherwise to another entity.

.13 If the Service rejects the electronic portion of a taxpayer's return (the Service states that it rejects the electronic portion of a taxpayer's return for processing in the acknowledgment file), and the reason for the rejection cannot be rectified by the actions described in section 6.02(3) of this revenue procedure, the ERO, within 24 hours of receiving the rejection, must take reasonable steps to inform the taxpayer that the taxpayer's return has not been filed. When the ERO advises the taxpayer that the taxpayer's return has not been filed, the ERO must provide the taxpayer with the reject code(s), an explanation of the reject code(s), and the sequence number of each reject code(s) (see Publication 1345A). If the taxpayer chooses not to have the electronic portion of the return corrected and transmitted to the Service, or if the electronic portion of the return cannot be accepted for processing by the Service, the taxpayer must file a paper return by the later of:

(1) the due date of the return; or

(2) ten calendar days after the date the Service gives notification that the electronic portion of the return is rejected or that the electronic portion of the return cannot be accepted for processing.  The paper return should include an explanation of why the return is being filed after the due date.

.14 An ERO is responsible for ensuring that stockpiling does not occur at its office(s) or Drop-Off Collection Point(s). Stockpiling means collecting returns from taxpayers or from another Authorized IRS e-file Provider prior to official acceptance into the Form 1040 IRS e-file Program, or, after official acceptance into the Form 1040 IRS e-file Program, waiting more than three calendar days to send a return to the Service after receiving the information necessary for transmission of the electronic portion of a tax return.

.15 An Authorized IRS e-file Provider that participates as a Service Bureau must:

.18 An Authorized IRS e-file Provider that participates as a Software Developer must:

(1) promptly correct any software error which causes the electronic portion of a return to be rejected;

(2) promptly distribute any software correction;

(3) ensure that any software package that will be used to transmit electronic portions of returns from multiple Authorized IRS e-file roviders has the capability of combining returns from these Authorized IRS e-file Providers into one Service transmission file taking into account the sorting requirements of the Declaration Control Number (DCN);

(4) ensure that no other entity uses the Software Developer's EFIN or ETIN. A Software Developer must not transfer by sale, merger, loan, gift, or otherwise its EFIN or ETIN to another entity; and

(5) not incorporate into its software a Service assigned production password.

.19 An ERO with a Drop-Off Collection Point must clearly display its name at each Drop-Off Collection Point. The Service will hold the ERO responsible for any violation of the advertising standards  described in section 12 or any other violation of this revenue procedure that occurs at a Drop-Off Collection Point listed on the ERO's Form 8633. The ERO must also serve as the contact point between the Service and the Drop-Off Collection Point for all correspondence including problem resolution and report evaluation.

.20 In addition to the specific responsibilities described in this section, an Authorized IRS e-file Provider must meet all the requirements in this revenue procedure to retain the privilege of participating in the Form 1040 IRS e-file Program.

SECTION 6. PENALTIES

.01 Penalties for Disclosure or Use of Information.

(1) An Authorized IRS e-file Provider, except a Software Developer, is a tax return preparer (Preparer) under the definition of section 301.7216-1(b) of the Regulations on Procedure and Administration. A Preparer is subject to a criminal penalty for unauthorized disclosure or use of tax return information. See section 7216 of the Internal Revenue Code and section 301.7216-1(a). In addition, section 6713 establishes civil penalties for unauthorized disclosure or use of tax return information.

(2) Under section 301.7216-2(h), disclosure of tax return information among Authorized IRS e-file Providers for the purpose of preparing a return is permissible. For example, an ERO may pass on tax return information to a Service Bureau and/or a Transmitter for the purpose of having an electronic return formatted and transmitted to the Service. However, if the tax return information is disclosed or used in any other way, a Service Bureau and/or a Transmitter may be subject to the penalties described in section 6.01(1) of this revenue procedure.

.02 Other Preparer Penalties.

(1) Preparer penalties may be asserted against an individual or firm meeting the definition of an income tax return preparer under section 7701(a)(36) and section 301.7701-15. Preparer penalties that may be asserted under appropriate circumstances include, but are not limited to, those set forth in sections 6694, 6695, and 6713.

(2) Under section 301.7701-15(d), Electronic Return Collectors, Service Bureaus, Transmitters, and Software Developers are not income tax return preparers for the purpose of assessing most preparer penalties as long as their services are limited to "typing, reproduction, or other mechanical assistance in the preparation of a return or claim for refund."

(3) If an Electronic Return Collector, Service Bureau, Transmitter, or the product of a Software Developer alters the return information in a nonsubstantive way, this alteration will be considered to come under the "mechanical assistance" exception described in section 301.7701-15(d)(1).  A nonsubstantive change is a correction or change limited to a transposition error, misplaced entry, spelling error, or arithmetic correction that falls within the following tolerances:

(a) the amount of "Total tax", "Federal income tax withheld", "Refund", or "Amount you owe" on Form 8453 differs from the corresponding amount on the electronic portion of the tax return by no more than $7;

(b) the amount of "Total income" on Form 8453 differs from the corresponding amount on the electronic portion of the tax return by no more than $25; or

(c) dropping cents and rounding to whole dollars.

(4) If an Electronic Return Collector, Service Bureau, or Transmitter alters the return information in a substantive way, rather than having the taxpayer alter the return, the Electronic Return Collector, Service Bureau, or Transmitter will be considered to be an income tax return preparer for purposes of section 7701(a)(36).

(5) If an Electronic Return Collector, Service Bureau, or Transmitter, or the product of a Software Developer, goes beyond mechanical assistance, any of these parties may be held liable for income tax return preparer penalties. See Rev. Rul. 85-189, 1985-2 C.B. 341 (which describes a situation where a Software Developer was determined to be an income tax return preparer and subject to certain preparer penalties).

.01 Procedures for Completing Form 8453.

(1) Form 8453 must be completed in accordance with the instructions for that form.

(2) The taxpayer(s)'s name, address, social security number(s), and tax return information in the electronic transmission must be identical to the information on the Form 8453 that the taxpayer(s) signed and provided for submission to the Service.

(3) An Authorized IRS e-file Provider, a financial institution, or any other entity associated with the electronic filing of a taxpayer's return must not put its address in the section reserved for the taxpayer's address on Form 8453 or anywhere in the electronic portion of a return.

(4) Before the electronic portion of the return is transmitted, the taxpayer must verify the information on the electronic portion of the return and on Form 8453, and must sign Form 8453. Both spouses' signatures are required on the Form 8453 prior to the electronic transmission of a joint tax return. The taxpayer may verify the information on the electronic portion of the return by viewing this information on a computer display terminal. A taxpayer need not verify the electronic portion of the return prior to its transmission if the taxpayer provided a completed paper return for filing and the information on the electronic portion is identical to the information provided by the taxpayer.

(5) An Authorized IRS e-file Provider must submit the taxpayer's Form 8453 to the service center that acknowledged acceptance of the electronic portion of the return within one work day after the Authorized IRS e-file Provider receives the acknowledgment file.

(6) An Authorized IRS e-file Provider functioning as an ERO must sign the "Declaration of ERO" on Form 8453.

(7) If the ERO is also the paid preparer, the ERO must check the "Paid Preparer" box and sign the "Declaration of ERO" on Form 8453.

(1) A new Form 8453 is not required for a nonsubstantive change. A nonsubstantive change is limited to a correction that does not exceed the tolerances described in section 7.02(2) of this revenue procedure for arithmetic errors, a transposition error, a misplaced entry, or a spelling error. The incorrect nonsubstantive information must be neatly lined through on the Form 8453 and the correct data entered next to the lined-through entry. Also, the individual making the correction must initial the correction.

(2) The tolerances for section 7.02(1) of this revenue procedure are:

(4) Dropping cents or rounding to whole dollars does not constitute a substantive change or alteration to the return unless the amount differs by more than the above tolerances. All rounding should be accomplished in accordance with the instructions in the Form 1040 tax package.

.04 Substitute Form 8453. If a substitute Form 8453 is used, it must be approved by the Service prior to use.

.01 The ERO must furnish the taxpayer with a complete paper copy of the taxpayer's return. However, the copy need not contain the social security umber of the paid preparer. See Rev. Rul. 78-317, 1978-2 C.B. 335. A complete copy of a taxpayer's return includes:

.02 The ERO must advise the taxpayer to retain a complete copy of the return and any supporting material.

.03 The ERO must advise the tax payer that an amended return, if needed, must be filed as a paper return and mailed to the service center that would handle the taxpayer's paper return.

.04 The ERO must, upon request, provide the taxpayer with the DCN and the date the Service acknowledged that the electronic portion of the taxpayer's return was accepted for processing.

.05 The ERO must advise taxpayers of the appropriate IRS TeleTax number to inquire about the status of their tax refund. The ERO should also advise taxpayers to wait at least three weeks from the date the Service acknowledged that the electronic portion of the taxpayer's return was accepted for processing before calling the TeleTax number.

.06 If a taxpayer chooses to use an address other than his or her home address on the return, the ERO must inform the taxpayer that the address on the electronic portion of the return, once processed by the Service, will be used to update the taxpayer's address of record. The Service uses the taxpayer's address of record for various notices that are required to be sent to a taxpayer's "last known address" under the Internal Revenue Code, and for refunds of overpayments of tax (unless otherwise specifically directed by the taxpayer, such as by Direct Deposit).

SECTION 9. DIRECT DEPOSIT OF REFUNDS

.01 The Service will ordinarily process a request for Direct Deposit but reserves the right to issue a paper refund check.

.02 The Service does not guarantee a specific date by which a refund will be directly deposited into the taxpayer's financial institution account.

.03 Neither the Service nor Financial Management Service (FMS) is responsible for the misapplication of a Direct Deposit that is caused by error, negligence, or malfeasance on the part of the taxpayer, Authorized IRS e-file Provider, financial institution, or any of their agents.

.04 An ERO must:

(1) advise taxpayers of the option to receive their refund by paper check or direct deposit;

(2) not charge a separate fee for a Direct Deposit;

(3) accept any Direct Deposit election to any eligible financial institution designated by the taxpayer;

(4) ensure that the taxpayer is eligible to choose Direct Deposit;

(5) caution the taxpayer that once the electronic portion of the return has been accepted for processing by the Service:

(a) the Direct Deposit election cannot be rescinded;

(b) the routing number of the financial institution cannot be changed; and

(c) the taxpayer's account number cannot be changed; and

(6) advise the taxpayer that refund information is available by calling the appropriate IRS TeleTax number. See section 8.05 of this revenue procedure.

.01 A Refund Anticipation Loan (RAL) is money borrowed by a taxpayer that is based on a taxpayer's anticipated income tax refund. The Service has no involvement in RALs. A RAL is a contract between the taxpayer and the lender.

.02 Any entity that is involved in the Form 1040 IRS e-file Program, including a financial institution that accepts direct deposits of income tax refunds, has an obligation to every taxpayer who applies for a RAL to clearly explain to the taxpayer that a RAL is in fact a loan, and not a substitute for, or a quicker way of, receiving an income tax refund. An Authorized IRS e-file Provider must advise the taxpayer that if a Direct Deposit is not timely, the taxpayer may be liable to the lender for additional interest on the RAL.

.03 An Authorized IRS e-file Provider may assist a taxpayer in applying for a RAL.

.04 An Authorized IRS e-file Provider may charge a flat fee to assist a taxpayer in applying for a RAL. The fee must be identical for all of the Authorized IRS e-file Provider's customers and must not be related to the amount of the refund or a RAL. The Authorized IRS e-file Provider must not accept a fee from a financial institution for any service connected with a RAL that is contingent upon the amount of the refund or a RAL.

.05 The Service has no responsibility for the payment of any fees associated with the preparation of a return, the transmission of the electronic portion of a return, or a RAL.

.06 An Authorized IRS e-file Provider may disclose tax information to the lending financial institution in connection with an application for a RAL only with the taxpayer's written consent as specified in section 301.7216-3(b).

.07 An Authorized IRS e-file Provider that is also the return preparer, and the financial institution or other lender that makes an RAL, may not be related taxpayers within the meaning of section 267 or section 707.

.08 Section 6695(f) imposes a $500 penalty on a return preparer who endorses or negotiates a refund check issued to any taxpayer other than the return preparer. However, a bank, as defined in section 581, may accept the full amount of a refund check as a deposit in the taxpayer's account for the benefit of the taxpayer. Section 1.6695-1(f) clarifies section 6695(f) by explaining that the prohibition on a return preparer negotiating a refund check is limited to a refund check for a return that the return preparer prepared. A preparer that is also a financial institution, but has not made a loan to the taxpayer on the basis of the taxpayer's anticipated refund, may (1) cash a refund check and remit all of the cash to the taxpayer or accept a refund check for deposit in full to a taxpayer's account, provided the bank does not initially endorse or negotiate the check; or (2) endorse a refund check for deposit in full to a taxpayer's account pursuant to a written authorization of the taxpayer.

A preparer bank may also subsequently endorse or negotiate a refund check as part of the check-clearing process through the financial system after initial endorsement. Any income tax return preparer that violates this provision may be suspended from the Form 1040 IRS e-file Program.

.01 All service centers that accept electronically filed returns will accept electronically filed balance due returns.

.02 Taxpayers who file balance due returns under the Form 1040 IRS e-file Program for any taxable year are responsible for making full and timely payment of any tax that is due. Failure to make full payment on or before the due date of the return (determined without regard to extensions) will result in the imposition of interest and may result in the imposition of penalties.

.03 Taxpayers have several options for paying balances due, including the following:

(1) DIRECT DEBIT. Taxpayers may authorize the Service to debit their checking or savings account for the amount of the balance due;

(2) PAY BY CHECK. Taxpayers may pay any balance due by sending a check, along with Form 1040-V, payment Voucher, to the Service. The Authorized IRS e-file Provider must furnish Form 1040-V to any taxpayer paying a balance due by check; and

(3) INSTALLMENT AGREEMENT. Taxpayers who cannot pay the balance due with the return may request an installment payment arrangement by filing Form 9465, Installment Agreement Request, with their return.

.01 An Authorized IRS e-file Provider must comply with the advertising and solicitation provisions of 31 C.F.R. Part 10 (Treasury Department Circular No. 230). This circular prohibits the use or participation in the use of any Form of public communication containing a false, fraudulent, misleading, deceptive, unduly influencing, coercive, or unfair statement or claim. Any claims concerning faster refunds by virtue of electronic filing must be consistent with the language in official Service publications.

.02 An Authorized IRS e-file Provider must adhere to all relevant federal, state, and local consumer protection laws that relate to advertising and soliciting.

.03 An Authorized IRS e-file Provider must not use the Service's name, "Internal Revenue Service" or "IRS", within a firm's name. However, once accepted into the Form 1040 IRS e-file Program, a participant may represent itself as an "Authorized IRS e-file Provider."

.04 An Authorized IRS e-file Provider must not use improper or misleading advertising in relation to the Form 1040 IRS e-file Program (including the time frames for refunds and RALs).

.05 An Authorized IRS e-file Provider using promotional materials or logos provided by the Service must comply with all Service instructions pertaining to the promotional materials or logos.

.06 An Authorized IRS e-file Provider using the Direct Deposit name and logo must comply with the following:

.08 Advertising for a cooperative electronic return filing project (public/private sector) must clearly state the names of all cooperating parties.

.09 In advertising the availability of a RAL, an Authorized IRS e-file Provider and a financial institution must clearly (and, if applicable, in easily readable print) refer to or describe the funds being advanced as a loan, not a refund; that is, it must be made clear in the advertising that the taxpayer is borrowing against the anticipated refund and not obtaining the refund itself from the financial institution. 

.10 If an Authorized IRS e-file Provider uses radio or television broadcasting to advertise, the broadcast must be pre-recorded. The Authorized IRS e-file Provider must keep a copy of the pre-recorded advertisement for a period of at least 36 months from the date of the last transmission or use.

.11 If an Authorized IRS e-file Provider uses direct mail or fax communications to advertise, the Authorized IRS e-file Provider must retain a copy of the actual mailing or fax, along with a list or other description of the firms, organizations, or individuals to whom the communication was mailed, faxed, or otherwise distributed for a period of at least 36 months from the date of the last mailing, fax, or distribution.

.12 Acceptance to participate in the Form 1040 IRS e-file Program does not imply endorsement by the Service, FMS, or the Treasury Department of the software or quality of services provided.

.01 The Service will monitor an Authorized IRS e-file Provider for conformity with this revenue procedure. Before suspending an Authorized IRS e-file Provider, the Service may issue a warning letter that describes specific corrective action for deviations from this revenue procedure.  However, the Service can immediately suspend, without notice, an Authorized IRS e-file Provider from the Form 1040 IRS e-file Program. In most circumstances, a suspension from participation in the Form 1040 IRS e-file Program is effective as of the date of the letter informing the Authorized IRS e-file Provider of the suspension.

.02 If a Principal or Responsible Official is suspended from the Form 1040 IRS e-file Program, every entity that listed the suspended Principal or Responsible Official on its Form 8633 may also be suspended.

.03 The Service will monitor the Authorized e-file Provider's compliance with the provisions of section 6695(g) (relating to the due diligence requirements for returns claiming the earned income credit).

.04 The Service will monitor the timely receipt of Forms 8453, as well as their overall legibility.

.05 The Service will monitor the quality of an Authorized IRS e-file Provider's transmissions throughout the filing season. The Service will also monitor the electronic portion of returns and tabulate rejections, errors, and other defects. If quality deteriorates, the Authorized IRS e-file Provider will receive a warning from the Service.

.06 The Service will monitor Drop-Off Collection Points and advise a parent of any Form 1040 IRS e-file Program violations the Service has encountered with a parent's Drop-Off Collection Point. If a parent fails to correct a Drop-Off Collection Point problem, the parent will be required to eliminate that Drop-Off Collection Point. Failure to take corrective action or eliminate a Drop-Off Collection Point may cause the Service to suspend the parent from participating in the Form 1040 IRS e-file Program.

.07 The Service will monitor complaints about an Authorized IRS e-file Provider and issue a warning or suspension letter as appropriate.

.08 The Service reserves the right to suspend an Authorized IRS e-file

Provider from participation in the Form 1040 IRS e-file Program for violating any provision of this revenue procedure. Generally, the Service will advise a suspended Authorized IRS e-file Provider concerning the requirements for reacceptance into the Form 1040 IRS e-file Program. The following reasons may lead to a warning letter and/or suspension of an Authorized IRS e-file Provider from the Form 1040 IRS e-file Program (this list is not all-inclusive):

.10 A district director may warn Authorized IRS e-file Providers that are using the services of a rejected or a suspended Authorized IRS e-file Provider that sections 4.19(12) and (13) of this revenue procedure prohibit a business relationship with a rejected or a suspended Authorized IRS e-file Provider. However, in appropriate circumstances, the Service may immediately suspend the Authorized IRS e-file Provider without such warning.

.11 If an Authorized IRS e-file Provider is suspended from participating in the Form 1040 IRS e-file Program, the period of suspension includes the remainder of the calendar year in which the suspension occurs plus the next two calendar years. A suspended participant may submit a new application for the application period immediately preceding the end of the suspension.