Rev. Proc. 73-12

Section 1. Purpose.

The purpose of this Revenue Procedure is to state the requirements of the Internal Revenue Service relating to substitutes for Form W-2, Wage and Tax Statement and Form W-2P, Statement for Recipients of Annuities, Pensions, or Retired Pay.

Sec. 2. General Rules for Filing With the Service.

.01 Employers and payers (hereafter and where applicable collectively referred to as payers) with computer capability are encouraged to use magnetic tape for filing information returns with the Internal Revenue Service. Since, many States and localities now accept information returns on magnetic tape, savings may be obtained if similar tapes are used for filing with the Service and State or local tax agencies. If magnetic tape is used, payers can design their own statements to be furnished to employees, pensioners, annuitants, recipients of retired pay, and recipients of disability income who are under normal retirement age (hereafter and where applicable collectively referred to as payees) (see Sec. 3). If, however, payers file information on magnetic tape only with the Service, such flexibility on forms design may not apply to the paper copy the payer submits to the States. In this case, the same specifications apply to the paper form submitted to the States as those prescribed in Sections 4 and 5 (unless deviations are permitted by the States).

.02 Rev. Proc. 73-13, page 776, this Bulletin, "Magnetic Tape Reporting of Information Documents," copies of which are available at Internal Revenue Service Centers and District offices, contains the specifications and procedures for filing Forms W-2 and W-2P data on magnetic tape. Rev. Proc. 71-18, 1971-1 C.B. 684, "Unified Magnetic Tape Reporting," copies of which are available from Internal Revenue Service Centers and from the Social Security Administration, Bureau of Data Processing, Baltimore, Maryland 21235, provides a single magnetic tape format covering quarterly earnings reports (Form 941, Schedule A), Forms W-2 quarterly reports to State employment security agencies, and annual reports to State income tax agencies.

.03 Payers not utilizing magnetic tape must file Copy A of Form W-2 or Form W-2P with the Service on either an official form or privately-printed substitute paper form.

1 The Service prints and makes available to payers: (1) two types of Form W-2, a six-part set and a four-part set and (2) a Form W-2P, six-part set. The Form W-2, six-part set is to be used when information is to be filed with State or local tax agencies. The Form W-2, four-part set can be used when there is no requirement to file with a State or local tax agency. These official forms are designed for the convenience of payers whereby a single format can be used to comply with the requirements for (1) filing with the Service (Copy A of Form W-2 or Form W-2P), (2) filing with State or local tax agencies (Copy 1 of Form W-2 or Form W-2P), (3) furnishing statements to employees (Copies B, C and Copy 2 of each form) and (4) copy for employer's records (Copy D).

.04 In lieu of using the official paper forms supplied by the Service, payers may use substitute forms. In general, the remaining parts of this Revenue Procedure deal with the type of privately-printed substitute paper form an employer (1) provides to payees (see Sections 3 and 6) and (2) files with the Service and State or local tax agencies (see Sections 4, 5, and 6). .05 Paper substitutes which conform to the specifications contained in this procedure may be privately printed without the prior approval of the Internal Revenue Service. Proposed substitutes not conforming to these specifications should be submitted by letter to the Commissioner of Internal Revenue, Attention: ACTS:T:P, 1111 Constitution Avenue, N.W., Washington, D.C. 20224, for consideration. These requests should contain an explanation of the need for the specific deviations. State tax agencies prefer that Forms W-2 and W-2P received from payers follow the same format as those copies payers furnish the Service; therefore, the State tax agency should be contacted to see if format changes are permissible.

Sec. 3. Substitute Forms Payers Furnish Payees.

.01 Payers may furnish substitute forms to payees. These include copies of Form W-2 or Form W-2P payees attach to their tax return(s) and retain as part of their tax records. The new rules in this section for printing such forms, are less rigid than those rules prescribed in prior years.

.02 The dimensions of substitute forms for payees may be expanded from the dimensions of the official form to allow space for conveying additional information such as withholding from pay for health insurance, union dues, excludable sick pay, etc. This may permit the payer to eliminate other statements or notices which would normally be furnished to payees. The maximum width and length dimensions are (1) the depth of the form should be no more than five inches and (2) the width no more than eight inches (16 inches if a detachable stub is provided and payees are instructed to detach the added portion). Also, the area within 3/8 inch of the right edge of the form must be free of all printing. Such margin is exclusive of snap stub or marginal holes. This approach should be particularly beneficial to payers filing returns on magnetic tape.

.03 The color of the paper and its quality for substitute forms furnished payees should be as follows: the paper must be white and the substitute form the payee attaches to his Federal income tax return must be at least 24-pound (basis 17 x 22-1000) while the other copies furnished the payee should be at least 18-pound (basis 17 x 22-1000).

.04 Substitute forms for payees need contain only the payment boxes and captions that are applicable (in any desired sequence) and may omit other boxes contained on the official form. Payment boxes and captions that are applicable, should be clearly identified, using where possible the same wording as on the official form. If you use your own format, and the form contains additional data (e.g., savings bonds withholding, retirement withholding, payroll savings, etc.), there should be a special highlighting of the area pertaining to Federal and State income tax withheld and total wages, tips and other compensation. The payee copy must contain employee name, address and social security number.

.05 Substitute forms for payees should contain the applicable description (1) the form title "Wage and Tax Statement" and the designation "Form W-2--Department of the Treasury--Internal Revenue Service," or (2) the form title "Statement for Recipients of Annuities, Pensions or Retired Pay," and the designation "Form W-2P--Department of the Treasury--Internal Revenue Service." The form number and reference to Department of the Treasury--Internal Revenue Service should be omitted from the copies for State or local use, even if they contain the additional information described above. Such substitutes are acceptable to the Service when attached to the payee's income tax return, Form 1040 or Form 1040A if instructions call for attachment of Forms W-2 or Forms W-2P, and recipients must be so advised.

Sec. 4. Format Requirements for Substitute Forms Payers Submit to the Service and State or Local Tax Agencies.

.01 A payer may furnish a substitute Form W-2 or Form W-2P to the Service (hereafter referred to as a substitute Copy A) and State or local agencies. A substitute form the payer submits to the State or local tax agency should conform to the specifications of this section and Sec. 5 unless deviations are permitted by such tax authority. This section discusses the format of a substitute Copy A. Section 5 discusses related printing specifications.

.02 Copy A of the official Form W-2 and Form W-2P for the reporting year should be used as the basis for developing a substitute Copy A. Since Form W-2 and Form W-2P are subject to annual review and possible change, payers are cautioned against overstocking supplies of privately-printed substitutes. Copies of the official form for the reporting year may be obtained from any Internal Revenue Office.

.03 A substitute Copy A must contain two sections: a specified format section and a variable format section.

1 The Form W-2 specified format section consists of the area encompassed by the following data fields: employee's name and address, employee's social security number, Federal income tax withheld, total wages, tips and other compensation, FICA tax withheld, total FICA wages, uncollected employee FICA tax on tips, and State or local tax information (two data fields each for tax withheld, wages paid and name). The data fields in the specified format section must reflect the applicable boxes (amount fields) in the same order and sequence and with the same data field box identifying number and title shown on the official Form W-2. Two payment lines must be provided if there are reporting requirements to more than one State or local tax agency. However, if some of the data amount boxes are not needed by a payer, such boxes may be omitted from the specified format section. Employers, for example, who make payments that are not subject to FICA tax may omit boxes 3, 4, and 5 on substitute paper Forms W-2. However, State or local tax information, if needed, should immediately follow box 2 and be numbered 6, 7, and 8 with the appropriate captions. If information is needed for only one State or locality, boxes 9 through 11 may be omitted.

2 The Form W-2P specified format section consists of the area encompassed by the following data fields: recipient's name and address, recipient's identifying number, Federal income tax withheld, gross amount and taxable amount of an annuity, pension, or retired pay, and the gross amount reported as wages or salary and the amount excludable as sick pay received by a disability retiree under normal retirement age. The data fields in the specified format section must reflect the applicable boxes (amount fields) in the same order and sequence and with the same data field box identifying numbers and titles shown on the official Form W-2P. However, if some of the particular data amount boxes are not needed by a payer, such boxes may be omitted from the specified format section. Payers, for example, who make only payments for pension, annuity, or retired pay may omit boxes 4 and 5 on substitute paper forms. When State information is entered, boxes 6, 7 and 8, numbered and with the appropriate captions and data entries, should immediately follow box 3.

3 The Form W-2 or Form W-2P variable format section consists of the remainder of the document not affected by the specified format area, and includes the area consisting of the following data blocks: the reporting year, payer's name, address, and identification number.

4 There must never be any nonpayment data between any payment box and the left margin of the document except for the social security number (tax identifying number if Form W-2P is printed). This could only occur if a payment box on the first payment line is omitted. In this case, the payment identifier 0 (Zero) must be shown in the box in which the tax identifying number is to be entered. A 3-point (0.045 inch) vertical rule must be shown after the 0 and preceding title of the box. When present, the social security number (tax identifying number if Form W-2P is printed) must be the first box on the first payment line.

.04 Data fields, in addition to those contained on the official form, may be added to substitute forms, at the option of the payer or in accordance with State or local requirements. Such additional entries must be contained in the variable format section. For example, this space may be used for health insurance, union dues, payroll savings, etc. The arrangement of data in the variable format section is optional except that the payment year must always be in the upper right corner of the form.

.05 The layout of a privately-printed Form W-2 must conform to one of the six layouts illustrated in Exhibit C. These are numbered from 2-7, since Format 1 is reserved for the official forms. The Form W-2 format differences apply to the relative positions for the Federal income tax information fields, the employee name and address field, and the employee social security number field. The Service does not provide format layouts for Form W-2P as it does for Form W-2. If a payer wants to use a format layout that varies from the official Form W-2P, a request for such change should be made by letter to the Commissioner of Internal Revenue, Attention: ACTS:T:P, 1111 Constitution Avenue, N.W., Washington, D.C. 20224 (see Section 2.05).

.06 Formats 2, 3, 4, and 5 for Form W-2 (see Exhibit C) are preferred; however, Formats 6 and 7 are acceptable. If 6 or 7 is used and the location of the social security number will be consistent for all returns prepared by the payer, a 3-point vertical rule should be preprinted immediately to the left of this area. The length of the rule and the wording and placement of the block should conform to the dimensions and location on the official form.

.07 If Format 6 or 7 is used and the location of the social security number is not consistent for all returns, due to the nature of the mechanical equipment used by the payer, the social security number need not be contained in a special box or identified. Preferably it should be printed one or two lines above or below the name. There must be no other data between, or on the same line as, the social security number and the name. Also special precautions must be taken with respect to the printing of an employee number or badge number. The printing of such badge numbers in the specified format section should be avoided. However, if the printing of an employee or badge number in the specified format section is unavoidable, this number must not be on the same line as, or on any line above, the social security number or on the same line as wages.

.08 The area within 3/8 inch of the left edge of the form must be free all printing, except as specified herein.

1 For Form W-2:

(a) The appropriate format identifier (2, 3, 4, 5, 6, or 7) must be printed 1/4 inch from the top and left edges and there must be 1/8 inch clear space to the right of such number (see Exhibit C).

(b) In Formats 2, 4, and 6, the 3/8 inch margin must contain a 3-point horizontal rule from the left edge of the document at the bottom of the Federal income tax field and another 3-point horizontal rule at the bottom of the employee name and address field (see Exhibit C).

(c) In addition to those specified for Formats 2, 4, and 6, Formats 3, 5, and 7 must contain an additional 3-point horizontal rule at the top of the social security number field for Format 3 or at the top of the employee name and address field for Formats 5 and 7 (see Exhibit C).

2 For Form W-2P; The 3/8 inch margin must contain 2 horizontal rules (3-point) from the left edge of the document to the specified format area, located in the same manner as on the government printed Form W-2P.

.09 There must be a margin of at least 1/4 inch between the top edge of the document and any other printing. Variable format section data may be placed between the top of the form (subject to the 1/4 inch margin) or bottom edge of the document and the specified format section.

.10 In the specified format section there must be a three-point vertical rule at the beginning and end of each of the monetary fields, and at the beginning and end of the social security number (tax identifying number if Form W-2P is printed) and address fields.

.11 In the specified format section the box for each money field must contain a three-point rule between the payment identifier number and the title of the box. There should be 1/8 inch clear space to the left and right of the payment identifier number.

.12 Employee's name (Form W-2), or recipient's name (Form W-2P), street address, and city and State (including ZIP Code) must be on separate lines. City, State and ZIP Code may be on the same line or on separate lines.

.13 The overall dimensions of the specified format section and the dimensions of the individual data fields contained therein may be varied from the dimensions shown on Exhibit A (Form W-2) or Exhibit B (Form W-2P). However, the typography may not be altered.

Sec. 5. Specifications for Printing Substitute Forms Payers Submit to the Service and State or Local Tax Agencies.

.01 Printing specifications are the same for a substitute Copy A and the substitute information form the payer files with the State or local tax agency, except where indicated.

.02 Color and quality of paper.

1 Paper must be white chemical wood bond, or equivalent, 32- to 40-pound (basis 17 x 22-1000), plus or minus 5% (weight must be inclusive of any coatings or chemical treatments). The above paper must consist of principally bleached chemical woodpulp and be free from unbleached or ground woodpulp. It also must be suitably sized to accept ink without feathering.

2 Paper for the substitute form filed with the State or local agency must be white and at least 18-pound (basis 17 x 22-1000).

.03 Color and quality of ink--All printing must be in a high quality black ink.

.04 Typography--Type must be substantially identical in size and shape with corresponding type on the official form.

1 On Copy A, Form W-2, all horizontal rules on the document and all vertical rules outside the specified format section except format identifier lines must be one-point (0.015 inch). All vertical rules within the specified format section, format and payment identifiers must be three-point (0.045 inch). If Form W-2 is being printed, the format identifier must be printed in any normally used 10-point Roman font. Vertical rules must be parallel to the left edge of the document; horizontal rules parallel to the top edge.

2 On substitute forms filed with the State or local agency, the horizontal and vertical rules need be only one-point (0.015 inch).

.05 Dimensions--The width of a Copy A must be a minimum of 7 inches and a maximum of 8 inches, exclusive of snap stubs or marginal holes. The depth of a Copy A must be a minimum of 3 inches and a maximum of 4 inches. The preferable dimensions are 8 inches in width and 32/3 inches in depth. If a Copy A (or a substitute form filed by a paper with the State or local tax agency) is in continuous or strip form, it must be burst and stripped to conform to the size specified before it is filed.

.06 Clear area--The back of a substitute Copy A must be free of all printing.

.07 Carbonized form or "spot carbons"--Carbonized forms and "spot carbons" are not permissible. Interleaved carbon, if used, must be of good quality to preclude smudging and, preferably black.

.08 Printer's symbol--The Government Printing Office symbol must not be placed on substitute copies of Forms W-2 or Forms W-2P. In place thereof, the forms printer should print his Employer Identification Number in the same place on such substitute forms.

Sec. 6. Additional Instructions.

.01 Arrangement of assembly--Except as provided below, if magnetic tape is not filed with the Service, the substitute copies of the Form W-2 or Form W-2P assembly shall be arranged in the same order as the official Form W-2 or Form W-2P. The substitute Copy A and the substitute form to be filed by the payer with the State or local tax agency should carry the designation Copy A and Copy 1, respectively. Copies for State and local tax agencies may be omitted from the assembly if not needed.

.02 Copy for Employer or Payer--The employer's or payer's copy is included in the official assembly for their convenience. Although there is no requirement that privately-printed substitute forms contain this copy, employers or payers not using magnetic tape may find it desirable to make and retain such copy.

.03 Additional copies--Except as provided in the arrangement of the official assemblies, additional copies which may be prepared by payers shall not be placed ahead of the copy "For employee's record" (Form W-2) or "For recipient's record" (Form W-2P). All copies of the form must be clearly labeled to indicate the purpose for which intended.

.04 Instructions on Form W-2--Instructions similar to those contained on the face of Copies A and B and both the face and back of Copy C of the official form must appear on the corresponding copies of substitute Forms W-2.

.05 State agencies--The amounts of wages paid and employee contributions withheld under a State-Federal Agreement, entered into pursuant to Section 218 of the Social Security Act, may be shown in the spaces on Form W-2 for Federal Insurance Contribution Act Wages and Employee Tax, provided appropriate distinguishing captions are used to identify such amounts. In such cases, the identification number assigned by the Social Security Administration to the State (prefix 69) should be shown in the employer block in addition to the employer identification number assigned by the Internal Revenue Service for income tax withholding purposes.

.06 Instructions for Payers

1 Only originals or ribbon copies may be filed with the Service. Carbon copies are not acceptable.

2 The Service requests the cooperation of payers in typing or machine printing whenever possible and in providing good quality data entries on the forms; i.e., using black ribbon, inserting data in the middle of blocks, well separated from other printing and guidelines, and taking any other measures that will guarantee a clear, sharp image. However, payers are not required to acquire special equipment solely for the purpose of preparing these forms.

Sec. 7. Reproduction Proofs.

Order blanks for reproduction proofs are mailed annually to requesters of record, and on request, to other users. Printers and others wishing to obtain reproduction proofs may send their requests to the Commissioner of Internal Revenue, Attention: A:FM:P, 1111 Constitution Avenue, N.W., Washington, D.C. 20224. A charge of $0.75 per page will be made for each reproduction proof regardless of page size. Invoices will be mailed after orders have been filled.

Sec. 8. Effect on Other Documents

This Rev. Proc. supersedes Rev. Proc. 72-34, 1972-1 C.B. 766.

[Editor's note: Exhibits A through C illustrate physical specifications of the forms discussed. These illustrations are not suitable for electronic reproduction.]