Rev. Proc. 66-26

Revenue Ruling 63-271, C.B. 1963-2, 597, provides that a bank acting as a collection agent for the collection of interest on evidences of indebtedness must file information returns for payments of interest of $600 or more which it collects and pays over to the actual owner.

Representatives of banking institutions have explained that their banks have encountered problems in perfecting procedures to furnish the required information returns, Forms 1099, U.S. Information Return for Calendar Year, and 1096, U.S. Annual Information Return. As announced in Technical Information Release 804, those problems may, on a case-by-case basis, constitute reasonable cause for failure to file the information returns for 1965 and to furnish identifying numbers on such returns.

Therefore, penalties for failure to file information returns for 1965 or to show payees' identifying numbers thereon will not be applied with respect to banks which submitted statements in writing, on or before March 31, 1966, to the District Director of Internal Revenue showing that their failure to comply was due to procedures or problems which they could not solve.

Similar procedures were established with respect to information returns for 1963 and 1964, as announced in Technical Information Releases 569, 701, and 704.

¹ Based on Technical Information Release 804, dated Mar. 3, 1966.