Instructions for Form 8973
Department of the Treasury
Internal Revenue Service
(May 2017)
Certified Professional Employer Organization/Customer Reporting Agreement
Section references are to the Internal Revenue Code unless
own Form 8973 to notify the IRS that its service contract with
otherwise noted.
the CPEO has ended.
When To File
Future Developments
Generally, a CPEO must file Form 8973 within 30 days of
For the latest information about developments related to
starting or ending a service contract with a customer.
Form 8973 and its instructions, such as legislation enacted
However, a newly certified CPEO has 6 months from the date
after they were published, go to IRS.gov/Form8973.
of its notice of certification to submit Forms 8973 with respect
General Instructions
to the commencement of any service contracts with existing
customers (see section 2.06(1) of Rev. Proc. 2017-14,
2017-3 I.R.B. 426, available at
IRS.gov/irb/2017-03_IRB/
Purpose of Form 8973
ar14.html).
Certified Professional Employer Organizations (CPEOs) use
In addition, before the end of the last year or period listed
Form 8973 to notify the IRS that a service contract between a
on the most recent prior CPEO Consent to Disclosure of Tax
CPEO and a customer has started or ended. If Form 8973 is
Information, the CPEO must renew the consent if it is still
being used to notify the IRS that a service contract has
under a service contract with the customer named on the
started, CPEOs also use Form 8973 to identify the forms that
consent. For more information on renewing the consent, see
the CPEO will file reporting wages or compensation paid to
Renewing the CPEO Consent to Disclosure of Tax
employees performing services for the customer and to allow
Information, later.
the CPEO to consent to the disclosure of tax information to
Where To File
the customer.
Mail to the following address:
For purposes of this form, a service contract is either a
CPEO contract described under section 7705(e)(2) or a
Department of the Treasury
service agreement described under Regulations section
Internal Revenue Service
31.3504-2(b)(2) and a customer is any person who has
Ogden, UT 84201-0089
entered into such a service contract with the CPEO. For more
information on CPEO contracts and service agreements, see
the line 10 instructions.
Specific Instructions
For more information about the CPEO program, including
Part 1: Why Are You Filing This Form?
frequently asked questions, visit the IRS website at
IRS.gov/
CPEO.
Check a box to tell the IRS if you’re filing Form 8973 because
a service contract started between the customer reported in
If the customer filed Form 2678, Employer/Payer
Part 2 and the CPEO reported in Part 3, a service contract
Appointment of Agent, appointing the CPEO as an
TIP
ended between the customer reported in Part 2 and the
authorized agent of the customer under Regulations
CPEO reported in Part 3, or you're correcting a previously
section 31.3504-1, then the relationship between the CPEO
filed Form 8973. You must enter the date (formatted as
and the customer isn’t subject to a CPEO contract or a
MM/DD/YYYY) that the service contract started or ended.
service agreement under Regulations section 31.3504-2(b)
(2). In this case, the CPEO shouldn’t file Form 8973 for the
Service contract started. Either the customer or the CPEO
customer.
can complete Parts 1 and 2. The CPEO must complete Parts
3 and 4 and provide the customer a copy of these
Substitute Forms
instructions before the customer signs Part 5. The CPEO
must also complete Part 6 and the CPEO Consent to
The IRS accepts quality substitute tax forms that are
Disclosure of Tax information before sending Form 8973 to
consistent with the official forms and have no adverse impact
the IRS. The CPEO must provide the customer with a copy of
on our processing. The official Form 8973 is the standard for
the fully completed and signed Form 8973.
substitute forms. Because a substitute form is a variation
from the official form, you should know the requirements of
Service contract ended. The CPEO is required to file Form
the official form for the year of use before you create a
8973 to notify the IRS that a service contract has ended. Only
substitute version. For details on the requirements for
the CPEO’s signature is required to notify the IRS that a
substitute forms, see Pub. 1167.
service contract has ended. In addition, though not required,
the customer may also separately file its own Form 8973 to
Who Must File
notify the IRS that its service contract with the CPEO has
The CPEO must file Form 8973 to notify the IRS that a
ended. If a customer separately files its own Form 8973 to
service contract started between a customer reported in Part
notify the IRS that its service contract with the CPEO has
2 and a CPEO reported in Part 3 or to correct a previously
ended, only the customer’s signature is required on that
filed Form 8973. The CPEO is required to file Form 8973 to
Form 8973. In both cases, Parts 1, 2, and 3 must be
notify the IRS that a service contract has ended. In addition,
completed (although Part 2, line 5, should be blank). It isn’t
though not required, the customer may also separately file its
May 16, 2017
Cat. No. 68908X