What This Letter Means
Letter 5899C, Prisoner Denial - Sanction and Specially Designated Nationals Revocation, goes to tax professionals and firms in the IRS e-file program. It says a principal or responsible official on an e-file application has been denied, suspended, or revoked from participating in IRS e-file. The firm can get a version too, and its EFIN can be made inactive.
The IRS sends it for three main reasons:
- Incarceration. People in prison can't participate in IRS e-file while incarcerated. The IRS matches applications against prisoner lists.
- Sanctions list match. A person or firm matched the Treasury Office of Foreign Assets Control Specially Designated Nationals list.
- Court injunction. A federal court barred the person or firm from preparing or filing returns.
What to Do
If you're not the person on the list, or you've been released, appeal in writing and include documents that prove it. The IRS reviews the appeal and can restore participation.
If the firm wants to keep its e-file status, it can ask to remove the affected person from the application.
If you're expelled because of incarceration, you can't simply reapply. You must request reconsideration after release.
If the revocation is based on a federal court order, it can't be appealed. You'd need to provide a court order showing you're no longer enjoined before the IRS considers letting you reapply.
Timing and Representation
Send any appeal promptly and sign it. Appeals received after 30 days are considered late unless you show reasonable cause. If a representative handles the appeal, the Form 2848 must state that it covers e-file purposes. Keep copies and use certified mail.
If you received Letter 5899C and need help with an e-file sanction, call us at (813) 229-7100.