Rev. Proc. 64-3

SEC. 1. PURPOSE.

The purpose of this Revenue Procedure is to state the requirements of the Internal Revenue Service relating to the preparation of acceptable substitutes for Form W-2, Withholding Tax Statement-1964, for filing purposes in lieu of the official form.

SEC. 2. SPECIFICATIONS.

.01 Substitutes .-Substitutes for Form W-2 may be privately printed. The substitute forms should follow the format of the official form except in those circumstances where the employer's data processing system will not accommodate this type of form. In these cases they may be printed with slight variations in format and used without requesting approval of the Internal Revenue Service if the conditions enumerated in section 3 are met. For proposed substitutes which do not meet such conditions, specific approval must be requested as provided by section 5, below. In any rearrangement of the information, care should be taken to prevent disclosure of wage and tax information if a window envelope is used for mailing.

.02 Design for mailing .-The official form is designed for mailing in a standard window envelope. This feature will be found desirable in most of the privately printed substitutes.

.03 Copy D .-Copy D is included in the official assembly for the convenience of the employer. Although there is no requirement that privately printed substitute forms include Copy D, employers may find it desirable to make and retain such copy.

SEC. 3. CONDITIONS.

.01 Color and quality of ink and paper .-The substitute forms, except for authorized punch card substitutes, must be printed in brown ink on white paper, both of quality as good as that used by the Government. The paper must be of substantially the same weight and texture as that used in the official form which is printed on substance 32-pound chemical wood bond or its equivalent-basis 17 x 22-1000.

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

.03 Format .-The substitute forms must provide the same spaces as the official form for showing tax withheld and wages paid. In any rearrangement of such spaces, the block headed `INCOME TAX INFORMATION' is to be placed in a prominent position on the form, preferably in the right-center position, the spaces for showing social security information to be either to the left or above such block.

.04 Dimensions .-The official form is eight inches wide by three and one-half inches deep, exclusive of a half inch snap-stub on the left side of the form. The substitute forms may vary in width from seven inches to eight inches and in depth from three and one-sixth inches to three and two-thirds inches. The snap feature is not required on substitutes.

.05 Carbonized forms 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.

.06 Special identification .-Copy B must show the full-face dots, arranged vertically on the upper right side.

.07 The Government Printing Office symbols .-The Government Printing Office symbols must be omitted.

SEC. 4. ADDITIONAL INSTRUCTIONS.

.01 Arrangement of assembly .-Except as provided in paragraph .02 below, the parts of the assembly shall be arranged, from top to bottom, as follows: Copy A, `For District Director'; Copy B, `To be filed with employee's tax return'; Copy C, `For employee's records'; Copy D, `For employer.' All references to the various parts shall be to `Copy A,' `Copy B,' `Copy C,' or `Copy D.'

.02 Additional copies .-Additional copies may be prepared for the use of employers in connection with taxes or deductions other than Federal income tax and Federal Insurance Contributions Act taxes. Such additional copies may not be placed ahead of Copy C in the assembly except that if a copy or copies for a state or local taxing authority are prepared only one such copy may be placed ahead of Copy C in the assembly, for better legibility. Forms for delivery to state or local taxing authorities should be clearly labeled to indicate the purpose for which they are intended and should not bear any part of the designation, `Form W-2-U.S. Treasury Department, Internal Revenue Service.'

.03 Excludable sick pay .-If desired, a block may be shown on Form W-2 for excludable sick pay. However, if such a block is provided and no amount is entered, the word `None' or `0' should be shown.

.04 Statement to support excludable sick pay .-A statement from the employer to support sick pay excludable from gross income may be made a part of the assembly, provided it is not placed ahead of Copies A and B in the assembly and is printed on paper of distinctive color. Such statement should substantially conform with the statement set forth in Revenue Procedure 57-1, C.B. 1957-1, 721. It should be clearly indicated on such statement that it is to be attached to page 2 of the taxpayer's Federal income tax return, Form 1040.

.05 Instructions .-No deviation from the instructions on either the front or back of Copies A, B, or C will be permitted.

.06 State or local taxing authorities .-Additional wage or tax information for state or local taxing authorities may be shown on Copy C, but not on Copies A and B.

.07 Other information .-Payroll deductions other than those required to be reported on Form W-2 may not be shown on Copies A and B, except as provided in paragraph .08 below.

.08 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 Contributions 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 employee block in addition to the employer identification number assigned by the Internal Revenue Service for income tax withholding purposes.

SEC. 5. SUBSTITUTES NOT MEETING ABOVE CONDITIONS.

Proposed substitute forms which do not meet the conditions stated above and requests for submission of punched card Forms W-2 should be forwarded by letter to the Commissioner of Internal Revenue, Attention: D:S:Pl, Washington, D.C., 20226, for consideration.

SEC. 6. REPRODUCTION PROOFS.

Reproduction proofs of the official Form W-2 are available upon the request of any employer who desires to use reproductions of such form. Requests for reproduction proofs should be addressed to the Commissioner of Internal Revenue, Attention: A:FM:P, Washington, D.C., 20224.