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Rev. Proc. 81-56

Rev. Proc. 81-56; 1981-2 C.B. 673

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Forms and instructions.

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    English
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Citations: Rev. Proc. 81-56; 1981-2 C.B. 673
Rev. Proc. 81-56

PART A.-GENERAL

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to supplement existing requirements and conditions under which payers and transmitters can file information returns on magnetic tape or disk pack instead of paper returns.

.02 The following forms can be filed on magnetic tape or disk pack:

a) Form 1099--Statement for Interest on All-Savers Certificates

b) Form 1087--Statement for Interest on All-Savers Certificates

.03 This procedure supplements Rev. Proc. 81-34, page 565, this Bulletin, and Rev. Proc. 81-55, page 649, this Bulletin. The revenue procedure for diskette reporting of information returns will include these forms.

SEC. 2. APPLICATION FOR MAGNETIC MEDIA REPORTING

.01 Payers or transmitters who have already been granted authorization to file on magnetic tape or disk pack do not have to reapply to file these Forms.

.02 New filers must complete Form 4419, Application for Magnetic Media Reporting of Information Returns. Instructions for completing the application appear on the reverse side of the Form. Write "1099-ASC" or "1087-ASC" in one of the Form boxes not used in the Application.

.03 The Service will act on a new filer's application and notify the new filer of the authorization to file within 30 days of receipt of the application. No magnetic tape or disk pack returns may be filed with the Service until the authorization has been granted. The authorization will remain in effect in succeeding years provided all Revenue Procedure requirements are met and there are no equipment changes by the filer.

.04 The Service will assist filers by encouraging the submission of test tapes for review in advance of the filing season. Approved filers who wish to submit a test tape or disk pack should contact the magnetic media coordinator at the service center where the application was filed.

.05 All other instructions in the Revenue Procedure 81-34 and Revenue Procedure 81-55 are applicable to Forms 1099-ASC and 1087-ASC.

Part B. -- SPECIFICATIONS

SECTION 1. GENERAL

The following changes are required to Forms 1099-ASC and 1087-ASC on magnetic tape or disk pack.

SEC. 2. PAYER/TRANSMITTER "A" RECORD

 ______________________________________________________________________

 

 Tape/Disc

 

 Position        Field Title     Length     Description and Remarks

 

 ----------------------------------------------------------------------

 

    17           Type of            1       Required.  Enter the

 

                 Return                     appropriate code from

 

                                            below:

 

 

                                            Type of Return    Code

 

                                            ---------------------------

 

                                               1099-ASC        S

 

                                               1087-ASC        T

 

 

 18 - 24         Amount          Variable   Required.  The amount code

 

                 Indicator                  entered for a given return

 

                                            indicates type(s) of pay-

 

                                            ment(s) which were made.

 

 

                 Amount                     For Reporting Payments

 

                 Indicator                  on Form 1099-ASC

 

                 Form

 

                 1099-ASC                   Amount   Amount

 

                                             Code     Type

 

                                            ---------------------------

 

                                               2     Interest on

 

                                                      All-Savers

 

                                                      Certificates

 

                                               3     Interest not

 

                                                      qualifying for

 

                                                      exclusion

 

                                               4     Amount of

 

                                                      forfeiture

 

                                               5     Blank in Tax

 

                                                      Year 1981

 

                                                      (In Tax Year 1982

 

                                                      this Amount Code

 

                                                      will be "1981

 

                                                      Qualifying

 

                                                      Interest

 

                                                      Disqualified

 

                                                      in 1982)

 

 

                                 (Example:  If position 17 of the

 

                                 Payer/Transmitter "A" Record is S

 

                                 (for 1099-ASC) and positions 18-24

 

                                 are "23bbbbb", this indicates that

 

                                 two amount fields are present in all

 

                                 the following Payee "B" Records.  The

 

                                 first field represents Interest on

 

                                 All-Savers Certificates, the second

 

                                 field represents Interest not qualify-

 

                                 ing for exclusion, and the third field

 

                                 represents Amount of forfeiture.  Do

 

                                 not subtract the amount Code 4 from

 

                                 any other amount if this amount is

 

                                 present.  Also Code 5 will not be used

 

                                 for Tax Year 1981 returns.

 

 

                 Amount                     For Reporting Payments

 

                 Indicator                  on Form 1087-ASC

 

                 Form

 

                 1087-ASC                   Amount   Amount

 

                                             Code     Type

 

                                            ---------------------------

 

                                               1     Interest on

 

                                                      All-Savers

 

                                                      Certificates

 

                                               2     Interest not

 

                                                      qualifying for

 

                                                      exclusion

 

                                               4     Amount of

 

                                                      forfeiture

 

                                               5     Blank in Tax

 

                                                      Year 1981

 

                                                      (In Tax Year 1982

 

                                                      this Amount Code

 

                                                      will be "1981

 

                                                      Qualifying

 

                                                      Interest

 

                                                      Disqualified

 

                                                      in 1982)

 

 

                                 (Example:  If position 17 of the

 

                                 Payer/Transmitter "A" Record is T

 

                                 (for 1087-ASC) and positions 18-24

 

                                 are "124bbbb", this indicates that

 

                                 two amount fields are present in all

 

                                 the following Payee "B" Records.  The

 

                                 first field represents Interest on

 

                                 All-Savers Certificates, the second

 

                                 field represents Interest not qualify-

 

                                 ing for exclusion, and the third field

 

                                 represents Amount of forfeiture.  Do

 

                                 not subtract the amount Code 4 from

 

                                 any other amount if this amount is

 

                                 present.  Also Code 5 will not be used

 

                                 for Tax Year 1981 returns.

 

 

SEC. 3. ALL OTHER RECORDS

Format for the "B", "C", "D", "K", and "F" records will not be affected by these changes.

SEC. 4. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 81-34 and 81-35 supplemented.

DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Forms and instructions.

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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