This is a reminder of the e-file monitoring rules in Publication 3112, IRS e-file Application and Participation.
The IRS monitors Providers through review of IRS records and during visits to Providers’ offices and other locations where Providers perform IRS e-file activities. During monitoring visits, the IRS may investigate complaints and ensure compliance with IRS e-file rules.
Failure to comply with these visits may result in in the inactivation of your Electronic Filing Identification Number (EFIN).
Monitoring may include, but is not limited to the following:
- Reviewing the quality of IRS e-file submissions for rejects and other defects
- Checking adherence to signature requirements on returns
- Scrutinizing advertising material
- Examining records
- Observing office procedures
In addition, the IRS may monitor Providers for compliance with the tax return preparer regulations, including provisions of IRC section 6695(g), which relates to the due diligence requirements for certain tax benefits. Specifically, the Earned Income Tax Credit, the American Opportunity Tax Credit, the Child Tax Credit/Additional Child Tax Credit/Credit for Other Dependents and Head of Household filing status claimed on individual returns.