Providers are prohibited from e-filing before receipt of all Forms W-2, W-2G and 1099-R.
Authorized IRS e-file Providers are prohibited from
submitting electronic returns to the IRS prior to the receipt of all
Forms W-2, W-2G, and 1099-R from the taxpayer.
If the taxpayer
is unable to secure and provide a correct Form W-2, W-2G, or 1099-R, the
return may be electronically filed after Form 4852, Substitute for
Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc. is completed in accordance with the use of that
form. This is the only time information from Pay stubs or Leave and
Earning Statements (LES) is allowed.
The IRS monitors Authorized IRS e-file Providers for compliance with the Revenue Procedure 2007-40 and IRS e-file rules and requirements. Monitoring visits will be conducted to investigate complaints and to ensure compliance.
Violations of IRS e-file requirements may result in warning or sanctioning an Authorized IRS e-file Provider. Sanctioning may be a written reprimand, suspension or expulsion from participation from IRS e-file,
or other sanctions, depending on the seriousness of the infraction. The
IRS categorizes the seriousness of infractions as Level One, Level Two,
and Level Three. Providers may appeal sanctions through the
Administrative Review Process. Un-reversed suspensions make Authorized
IRS e-file Providers ineligible to participate in IRS e-file for a period of either one or two years from the effective date of the sanction.