REQUIREMENTS ARE SET FORTH FOR REPRODUCING FORMS 1096, 1098, 1099, 5498, AND W-2G

Rev. Proc. 86-30

PART A. GENERAL

SECTION 1. PURPOSE

01 The purpose of the revenue procedure is to state the requirements for: (1) reproducing paper substitutes of the forms shown below, covering payments made during the 1986 calendar year (for Forms 5498, contributions made for 1986), that are required to be filed with the Internal Revenue Service (IRS), and (2) for furnishing substitute statements to forms recipients (see Section 4.01 for definition). This revenue procedure contains specifications for the following:

(a) Form 1098, Mortgage Interest Statement.

(b) Form 1099-A, Acquisition or Abandonment of Secured Property.

(c) Form 1099-B, Proceeds from Broker and Barter Exchange Transactions.

(d) Form 1099-DIV, Dividends and Distributions.

(e) Form 1099-G, Certain Government Payments.

(f) Form 1099-INT, Interest Income.

(g) Form 1099-MISC, Miscellaneous Income.

(h) Form 1099-OID, Original Issue Discount.

(i) Form 1099-PATR, Taxable Distributions Received from Cooperatives.

(j) Form 1099-R, Total Distributions from Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, Etc.

(k) Form W-2G, Certain Gambling Winnings.

(l) Form 5498, Individual Retirement Arrangement Information.

(m) Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

02 For the purpose of this revenue procedure, a substitute form is one that is not printed by IRS. In order for a substitute form to be acceptable to the IRS it must conform to the official form and the specifications outlined in this revenue procedure. DO NOT submit any substitutes for APPROVAL. Only those forms that conform to the official form and comply with the specifications set forth herein are acceptable. See Part A, Section 8 for the specifications that apply to form recipient statements (Copy B).

03 This revenue procedure supersedes Revenue Procedures 85-25 and 85-52.

SEC. 2 NATURE OF CHANGES

01 Ink color for Forms 1098, 1099 and 5498 has been changed.

02 Specifications for substitute form recipient copies.

03 Various editorial changes have been made.

04 Form W-3G is now obsolete.

05 Two additional copies for Forms W-2G and 1099-R are included.

06 Substitute forms that do not totally conform to the specifications in this revenue procedure are not acceptable. IRS will no longer review proposed substitutes for acceptability. NO DEVIATIONS will be allowed. However, IRS will continue to clarify and resolve issues involving specifications.

07 Where to file completed paper forms or magnetic media has been clarified.

08 Improperly printed or prepared forms are subject to penalties.

09 Specifications for recipient copies have been clarified.

10 The importance of qualify control for ink density has been stressed for acceptability of forms.

11 New requirements for filing all forms with IRS on magnetic media have been added.

12 Postal indicia "boxes" specification added.

SEC. 3. REQUIREMENTS FOR ACCEPTABLE SUBSTITUTE FORMS 1096, 1098, 1099, 5498 AND W-2G.

01 Paper substitutes for Forms 1098, 1099, 5498, W-2G, (Copy A data) and Forms 1096 that totally conform to the specifications contained in this procedure may be privately printed and filed as returns with the IRS. DO NOT submit any substitutes for general approval (except for Carbonless paper listed in .05 below). Only those forms that conform with the official form and the specifications contained herein are acceptable.

If you are uncertain of any specification set forth herein and want that specification clarified, you may submit a letter citing the specification in question, your interpretation of the specification, and an example of the form with your understanding of the specification to:

     Internal Revenue Service

02 Copy B (Form 1098 For Payer, other Forms 1099 For Recipient, Form 5498 For Participant, Form 1099-A For Borrower) and Copy C (Form W-2G For Winner's Records) must contain the information specified in section 8 in order to rise to the level of a "statement" or "official form" under the applicable provisions of the Internal Revenue Code. The format of this information is at the discretion of the filer with the exception of the composite Form 1099 form recipient statement specified in section 8.04.

03 Proposed substitutes for Copy A that do not conform to these specifications are not acceptable.

04 No IRS office is authorized to allow deviations from this revenue procedure.

05 The use of chemical transfer paper on Copy A may be approved after review by IRS. Submit all requests with a minimum sample of 100 blank sheets of 20 lb. paper (17 x 22 -500) to Internal Revenue Service, Attn: D:R:R:IM, 1111 Constitution Avenue, N.W., Washington, DC 20224. The paper will be tested and the results reported to the requester.

06 Forms 1096, 1098, 1099, 5498 and W-2G are subject to annual review and possible change. Filers are cautioned, therefore, against overstocking supplies of privately printed substitutes. The specifications contained in this revenue procedure apply to 1986 forms only.

07 Copies of the official forms for the reporting year may be obtained from most Internal Revenue office. IRS provides only cut sheets (no carbon interleaves) of these forms. If they are not available at your local IRS District Office you may ask them to order copies for you. You should receive your order within 10 days.

08 Only original or ribbon copies that are typed or machine printed with BLACK CARBON BASED INK may be filed with IRS. Carbon copies and photocopies are not acceptable.

SEC. 4. DEFINITIONS

01 The term "taxpayer (form recipient) identification number (TIN)" for an individual means the individual's social security number (SSN). The SSN consists of nine digits separated by hyphens as follows: 000-00-0000. For all other form recipients, the term "taxpayer (form recipient) identification number" means the employer identification number (EIN). The EIN consists of nine digits separated by one hyphen as follows: 00-0000000. A sole proprietor may have both an EIN and a SSN.

02 In the past the terms payee and recipient were usually synonymous. The addition of new forms to the information returns family requires different terminology to identify the recipient of a copy of the form filed with ITS (i.e., 1098 is payer, 1099-A is borrower, 5498 is participant). Therefore, to alleviate any possibility of confusion, the person who is required by law to receive a copy of the official form or information statement will be referred to as the "form recipient". The name of the appropriate form recipient (i.e., person or organization whose TIN has been provided) must be shown as the first entry in the area on the form provided for the form recipient name and address. (See Section 6 for guidelines on listing the form recipient's name and TIN). No descriptive information or other name is to precede the form recipient's name. ONLY one form recipient name should appear on the first line of the form (lined up with the arrow on the left). If more than one form recipient's name must be entered, place the responsible form recipient (person or organization whose TIN is provided) on the first line. Place other form recipient's names on the succeeding name lines (up to 3 name lines are allowable).

03 The term "filer" means the person or organization required by law to file with IRS a form listed in section 1.01 above.

04 A corrected and/or amended return is one that corrects previously reported information. Place an "X" within the box to left of the work "Corrected".

05 The term "substitute form" means a paper substitute of Copy A of an official form listed in section 1.01 above that totally conforms to the provisions of this revenue procedure.

06 The term "form recipient statement" means a paper statement of the information reported on a form listed in section 1.01 above that must be furnished to a person, as so defined (form recipient) under the applicable provisions of the Internal Revenue Code.

07 A composite statement is a substitute form recipient copy of official Forms 1099-DIV, INT, OID and PATR, in the aggregate or in any combination thereof. A filer may use a composite statement when such reporting payments are paid to the same form recipient during the calendar year. If the filer does not use a composite statement for these payments the filer must provide each respective statement to the form recipient as the case may be. A composite statement is one form (although the form itself may comprise more than one page) that contains all the requisite Form 1099 information (for the payments enumerated above). A composite statement may contain any combination of the above Form 1099 information. A composite Form 1099 can not be filed with IRS.

SEC. 5. INSTRUCTIONS FOR PREPARING SUBSTITUTE FORMS THAT WILL BE FILED WITH THE IRS

01 The form recipient's name, street address, city state, and ZIP code information must be TYPED OR MACHINE PRINTED IN BLACK INK on separate lines. The city, state, and ZIP code must be on the same line.

02 The box below the form recipient's name and address may be used for the account designation number. This information is not required; however, special caution must be taken if an account designation number is being printed. This number must be unique and MUST NOT appear anywhere on the form other than in the box specified for this use. If the window envelopes are used this number must not show through the window because the Postal Service may not accept them for metered mail.

03 Filers must TYPE OR MACHINE PRINT data entries on the forms, use carbon-base BLACK ribbon, insert data in the middle of blocks well separated from other printing and guidelines, and take other measures to guarantee a clear, dark black, sharp image.

04 Machine printed forms should be printed using a 6 lines/inch option. The first name line should be typed to the right of the arrow and the first address line should be printed on the fourth line from the arrow. This can be achieved by using double spacing.

05 Machine printed forms should be printed in 10 pitch (i.e., 10 print characters per inch).

06 On corrected returns, an "X" must be placed within the check box located at the top of the form to the left of the word "CORRECTED". The accompanying Form 1096 for a submission of corrected returns should also contain an "X" within the "CORRECTED" box at the top of the form following its form identifier number. DO NOT type the words CORRECTED RETURN on the Form 1096, 1098, 1099, 5498 or W-2G as required in the past. All required data blocks must be completed on a corrected return since it replaces and supersedes the information return previously filed.

07 For corrected or voided documents, enter an "X" within the appropriate box using only computer print, typewriter or #2 pencil. DO NOT use a ball-point pen or felt tip marker. The machine used to "read" paper forms generally cannot "read" these ink types.

08 Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single sheet before they are filed with IRS. The size specified DOES NOT INCLUDE PINFEED HOLES. MUST NOT be present on forms filed with IRS.

09 Money amounts should be printed without dollar signs ($), ampersands (&), asterisks (*), commas (,) or other special characters. However, use decimal points to indicate dollars and cents.

10 DO NOT FOLD Forms 1096, 1098, 1099, or 5498 mailed to IRS. Mail these forms flat in an appropriately sized envelope or box. Folded documents cannot be readily moved through the scanner transport used in IRS processing.

11 DO NOT STAPLE Forms 1096 to the returns being transmitted. Staple holes in the vicinity of the return code number reduce our ability to machine scan the return code number which is used to identify the type of document being processed.

12 MAIL completed paper forms addressed in this revenue procedure to the IRS service center specified in the Instructions for Forms 1099, 1098, 5498, 1096, and W-2G.

13 Filers who submit privately printed or incorrectly prepared forms and IRS determines they are not acceptable may be subject to penalties under section 6652 of the Internal Revenue code. The penalty is $50 for each for which the IRS cannot accept as a return under the provisions set out in this revenue procedure.

SEC. 6. TAXPAYER IDENTIFICATION NUMBERS

01 Under section 6109 of the Internal Revenue Code, a person with respect to whom a return, statement, or other document is required to be made by another person must furnish his taxpayer identification number (TIN) to such other person. The number must be furnished to the filer whether or not the form recipient is required to file a tax return or is covered by Social Security. Section 6109 also requires filers to request the TIN's and place them on returns required to be filed with IRS.

02 Filers must provide correct TIN's on all forms submitted. It is particularly important that correct social security and employer identification numbers for form recipients be provided on magnetic media or paper forms submitted to IRS.

03 Section 6676 of the Internal Revenue code imposes a $50 penalty on filers for each return filed with an incorrect or missing TIN. For payments of interest and dividends, the penalty is self- assessable on Form 8210, Self-Assessed Penalties Return.

04 The TIN furnished to IRS depends primarily upon the manner in which the account is maintained in the filer's records. The TIN provided must be that of the owner of record. If an account is recorded as a joint account, i.e., more than one person is listed on the account, furnish the TIN and name of the first person listed on the record. For individuals, the TIN is the SSN (those individuals operating a business as a sole proprietorship may have both an EIN and a SSN). A nonresident alien will generally have a TIN that is similar in format to a SSN. For other entities, it usually is an EIN.

05 Sole proprietors who are reporting as filers should show their EIN on the return if required to have an EIN. If not, they should show their SSN. However, if the sole proprietor is a form recipient, then the SSN should be used.

06 The charts below will help you determine the TIN to be furnished to IRS.

            Chart 1. Guidelines for Social Security Numbers

01 IRS encourages all filers or nominees (hereafter collectively referred to as filers) to file information returns on magnetic media instead of paper forms. All forms listed in Sec. 1.01 may be filed on magnetic media.

02 Any person who is required to file more than 50 Forms 1099-DIV (for dividend reportable under section 6042 of the IRC), 1099-INT (except for interest reportable under section 6049), 1099-OID or 1099- PATR in any combination, for a calendar year MUST file these returns on magnetic media. This requirement applies to any person for any period unless such person establishes that this requirement would result in undue hardship and requests a waiver from the filing requirements. To request a waiver from filing on magnetic media, submit a waiver request 90 days before the due date of the return and send it to the following address: Magnetic Media Reporting, Internal Revenue Service, National Computer Center, P.O. Box 1359, Martinsburg, WV 25401-1359. Effective January 1, 1986, ALL requests for relief should be sent to the National Computer Center address.

03 Regulations section 1.6045-1(1) requires brokers and barter exchanges to use magnetic media in reporting any Form 1099-B data to IRS. Generally, new brokers and new barter exchanges may request an undue hardship exception by filing a waiver request, by the end of the second month following the month in which they become a broker or barter exchange, with the IRS National Computer Center. Effective January 1, 1986, ALL requests for relief should be sent to the National Computer Center address.

04 Regulations section 301.6011-2 requires the use of magnetic media for filing Forms 1098, 1099-A, 1099-G, 1099-MISC, 1099-R, 5498 and W-2G for payments to 500 or more form recipients for any calendar year beginning after December 31, 1985, (250 or more form recipients for any calendar beginning after December 31, 1986). This requirement applies to any person filing after the above stated periods unless such person establishes that this requirement would result in undue hardship. A request for a waiver should be submitted 90 days before the due date of the return and directed to the following address: Magnetic Media Reporting, Internal Revenue Service, National Computer Center, P.O. Box 1359, Martinsburg, WV 25401-1359. Effective January 1, 1986, all requests for relief should be sent to the National Computer Center address.

05 Specifications for filing information returns on tape, 8 inch and 5-1/4 inch diskette, cassette or mini-disk are contained in various revenue procedures relating to Requirements and conditions for Filing Information Returns on Magnetic Media. Copies of these procedures may be obtained from any Internal Revenue District office or by contacting the IRS National Computer Center. Filers or agents who are required to, or want to file information returns on magnetic media, must file Form 4419, Application for Magnetic Media Reporting of Information Returns. Forms 4419, must be filed prior to submitting returns on magnetic media. IRS will provide a written reply to the applicant and further instructions at the time of approval. The application must be filed at the following address: Magnetic Media Reporting, Internal Revenue Service, National Computer Center, P.O. Box 1359, Martinsburg, WV 25401-1359. Effective January 1, 1986, the magnetic media program was centralized at the National Computer Center and all applications and information returns filed on magnetic media should be sent to the National Computer Center address in 1986.

06 Since many states accept information returns filed on magnetic media, savings may be obtained if similar media is used for filing with IRS and state tax agencies. For information regarding state magnetic media filing requirements, filers should contact the respective state tax authority.

SEC. 8 STATEMENT TO FORM RECIPIENTS AND FORM RECIPIENT COPIES

01 For payments of reportable interest and dividends (reportable on Forms 1099-DIV (for dividends reportable under section 6042 of the IRC), 1099-INT (except for interest reportable under section 6041), 1099-OID or 1099-PATR made in 1984 and subsequent years, an official Form 1099 must be furnished to a form recipient either in a separate first-class mailing or in person. These forms may be mailed or provided to the form recipient with other Forms 1098, 1099 or 5498 form recipient statements, or with Form W-9 and Form W-8 solicitations. However, no other information may be mailed with the form recipient statement or provided in person with the form recipient statement without violating the separate mailing requirements.

02 The requirement to furnish form recipients with an official form 1099-DIV, INT, OID and PATR, may be met by furnishing a substitute Form 1099 (form recipient copy) if it contains language substantially similar to that of the official form such as the aggregate amount paid to (or received from) the form recipient, any amount of tax withheld under IRC section 3406, the name, address and TIN of the person making the return and any other information required by the official form. Generally, information not required by the official form should not be included on the form because it may violate the separate mailing requirements. In addition, the form recipient copy of interest, dividends, patronage dividends and original issue discount paid to the form recipient must contain the information listed below.

1. All money amounts required to be reported to the form recipient must be titled and numbered on the form recipient copy of substantially the same manner as those of the official form. For instance, dividend income must be labeled as "qualifying" or "not qualifying for exclusion".

2. The form recipient copy must contain all applicable form recipient instructions provided on the official form.

3. Form recipient copies covering reportable interest, dividends, patronage dividends and original issue discount must contain the following statement, in bold and conspicuous type, "This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction will be imposed on you if this income is taxable and IRS determines that it has not been reported."

4. The form recipient copy must contain the Office of Management and Budget (OMB) number prescribed on the official form.

5. The form recipient copy must show the title of the official Form 1099 for which it substitutes.

03 If the form recipient copy contains all the information listed above, layout and format of the form is at the discretion of the filer.

04 A composite form recipient copy is permitted for reportable payments of interest, dividends, patronage dividends, and/or original issue discount (Forms 1099-DIV, INT, OID or PATR) when one filer is reporting any or all of these payments during a calendar year to the same form recipient. Although the composite form recipient copy may be on one form, the format of the composite form recipient copy must satisfy the following requirements in addition to the requirements listed in .02 above.

1. All information pertaining to a particular type of payment must be located and blocked together on the form and must be separate from any information covering other types of payments included on the form.

2. The title of the official form or forms for which this form recipient copy substitutes must be shown at the beginning of each appropriate block of information.

3. Any information required by the official form that would otherwise be repeated in each information block is only required to be listed once in the first information block of the composite form. For example, there is not requirement to report the name of the filer in each information block.

05 Statements to form recipients of other reportable payments on Forms 1098, 1099-A, 1099-B, 1099-G, 1099-MISC (except payments reportable under section 6045), 1099-R, 5498, 1099-DIV (except for payments reportable under section 6047), 1099-INT (for payments reportable under section 6041) and W-2G as cited in Part A, Section 1 should meet the following requirements:

1. The filer and form recipient information required on the statement must be included.

2. All money amounts and information required to be reported to the form refcipient must be titled on the form recipient statement in substantially the same manner as those on the official form.

3. Form recipient statements must contain the following statement, "This information is being furnished to the Internal Revenue Service."

4. Appropriate instructions to the form recipient, similar to those on the official form, must be provided to aid in the proper reporting of the items on the form recipient's income tax returns. For payments reported on Form 1099-B. the requirement to include on the statement furnished to form recipients instructions that are substantially similar to those on the official form, may be satisfied by providing form recipients with a single set of instructions with respect to all statements required to be furnished in a calendar year.

06 Statements specified in .05 above, may contain information other than required by the official form. However, if other information is included, such statements cannot be mailed with Forms 1099-DIV. INT. OID or PATR or their substitutes without violating the separate mailing requirements.

07 A composite form recipient statement specified in .05 above is permitted when one filer is reporting any or all of these payments during a calendar year to the same form recipient. A composite statement is not allowable for a combination of forms listed in 05 above and forms listed in 04 above. For example, a composite statement of Form 1098 and 1099-INT (for interest reportable under section 6049) is not allowable. Although the composite form recipient copy may be on one form the format of the composite form recipient copy must satisfy the following requirements listed in 05 above.

1. All information pertaining to a particular type payment must be located and blocked together on the form and must be separate from any information covering other types of payments included on the form.

2. The title of the official form or forms for which the form recipient statement substitutes must be shown at the beginning of the appropriate block of information.

3. Any information required by the official form that would otherwise be repeated in each information block is only required to be listed once in the first information block on the composite form. For example, there is not requirement to report the name of the filer in each information block.

PART B--SUBSTITUTE FORM FORMAT REQUIREMENTS (EXCLUDING FORM W-2G)

SEC. 1. GENERAL

01 The following specifications prescribe the format requirements of Forms 1098 (Copy A), 1099 (Copy A), 5498 (Copy A), and 1096.

02 The form identifying number (e.g., 9191 for Forms 1099-DIV) must be printed in non-reflective black carbon-based ink in print positions 25 through 29 using an OCR A font. The ballot boxes located to the right of the form identifying number must be 10-point boxes.

NOTE: If the ballot box is checked indicating a corrected return or a "void" return, more than 50% of the box must be covered by an "X". DO NOT TYPE "CORRECTED RETURN" on the top of the form. All required data must be completed on the corrected form since it replaces and supersedes the information return previously filed.

SEC. 2. SPECIFICATIONS FOR FORMS 1069, AND COPY A OF FORMS 1098, 1099 AND 5498

01 The substitute form must be an exact replica of the official reproduction proof with respect to layout and contents. "Spot Carbons" are NOT PERMITTED for Copy A. The printing of the Government Printing Office (GPO) symbol must be deleted. Specifications for Copy A are provided in Exhibits A thru O.

02 Color and quality of paper. Paper for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP 0-25, dated November 29, 1978, must be: White 100% bleached chemical wood, optical character recognition (OCR) bond produced in accordance with the following specifications:

NOTE: Reclaimed fiber in any percentage is permitted, provided the requirements of this standard are met.

 1. Acidity: pH value, average, not less than           -4.5

OCR Specifications

Contractor must have or initiate a quality control program to assure OCR ink density. In addition he must have at or adjacent to his production area either a MacBeth PCM tester or a Kidder 082A tester in order that testing may be accomplished at regular intervals throughout a shift.

Paper and Ink

Readings will be made when printed on approved 20 1b. White OCR bond with a reflectance of not less than 85%. Black ink used must not have a reflectance greater than 15%. These readings are based on requirements of the "REI Input 80 Model C1 or D" Optical Scanner using Sinclair and Valentine J-31859 Maroon ink or equal.

MacBeth PCM II Tester

The tested Print Contrast Signal (PCS) values when using the McBeth PCM-II tester on the "C" scale must range from .13 minimum to .19 maximum.

Kidder 082A Tester

The tested Print Contrast Signal (PCS) values when using the Kidder 082A tester on the Infra Red (IR) scale must range from .32 minimum to .38 maximum. White calibration disc must be 100%, sensitivity must be set at one (1).

Alternative Tester

If an alternative tester is used it must be approved by Government so that tested (PCS) values can be established with this equipment. Approval may be obtained by writing to the following address:

     Commissioner of Internal Revenue

04 For Forms 1096, all printing will be in red OCR dropout ink, as specified, except for the 4-digit form identifying number appearing in the upper middle margin on the official IRS form, which will be printed in nonreflective black carbon-based ink. All other printing will be in red OCR dropout ink with or comparable to the specifications below. The screened area of any substitute form should generally correspond to that present on the official form. Separation between fields must be 0.1 inch including screen. Horizontal screening should follow the standard format and allow for typewriter spacing.

OCR Specifications

Contractor must have or initiate a quality control program to assure OCR ink density. In addition he must have at or adjacent to his production area either a MacBeth PCM tester or a Kidder 082A tester in order that testing may be accomplished at regular intervals throughout a shift.

Paper and Ink

Readings will be made when printed on approved 20 lb. White OCR bond with a reflectance of not less than 85%. Black ink used must not have a reflectance greater than 15%. These readings are based on requirements of the "REI Input 80 Model C1 & D" Optical Scanner using Sinclair and Valentine J-6983 Red ink or equal.

MacBeth PCM II Tester

The tested Print Contrast Signal (PCS) values when using the MacBeth PCM-II tester on the "C" scale must range from .01 minimum to .06 maximum.

Kidder 082A Tester

The tested Print Contrast Signal (PCS) values when using the Kidder 082A tester on the Infra Red (IR) scale must range from .12 minimum to .21 maximum. White calibration disc must be 100%, sensitivity must be set at one (1).

Alternative Tester

If an alternative tester is used it must be approved by Government so that tested (PCS) values can be established with this equipment. Approval may be obtained by writing to the following address:

     Commissioner of Internal Revenue

05 Typography--Type must be substantially identical in size and shape with corresponding type on the official form. All rules are either 1-point or 3/4-point. Rules must be identical to that on the official IRS form. NOTE: The form identifying number must be nonreflective carbon-based black ink in OCR A font.

06 Dimension--Three official Forms 1098, 1099 or 5498 (Copy A) are contained on a single page which is 8 inches wide (exclusive of any snapstubs and/or pinfeed holes) by 11 inches deep. The top margins must be 2/6 inch, and the right margin must be 1/4 inch plus or minus 0313 inch. If the right and top margins are properly aligned the left margin for all forms will be correct. All margins must be free of all printing.

07 The depth of the individual trim size of each form on a page must be the same (3-2/3 inches) as that of the official reproduction proof.

08 Perforations are required between forms on all copies (except Copy A) to enable the separation of individual forms.

09 The words "For Paperwork Reduction Act Notice and instructions for completing this form, see Instructions for forms 1099, 1098, 5498, 1096 and W-2G" must be printed on Copy A and Copy C.

10 The OMB Number MUST be printed on EACH ply in the same location as on the official form.

11 PRIVATELY PRINTED CONTINUOUS SUBSTITUTE FORMS (COPY A) MUST BE PERFORATED AT EACH 11" (3-ON) PAGE DEPTH. NO PERFORATIONS ARE ALLOWED BETWEEN THE 3-2/3" FORMS ON A SINGLE COPY PAGE OF COPY A.

12 THE WORDS "Do NOT cut or Separate forms on This Page" must be printed in maroon dropout ink (as required by form specifications) between the three forms. NOTE: Perforations are required between all of the other individual copies (Copies B and C) included in the set.

13 The back of a substitute Copy A must be free of all printing.

14 Carbonized. "SPOT CARBONS" and NOT PERMITTED for Copy A. Interleaved carbon must be of good quality to assure legibility of information on all parts to preclude smudging and should be black. "Chemical transfer paper" is now permitted (see Section 3.05 of Part A above).

15 Printer's symbol--The GPO symbol must not be placed on substitute Copy A. IN PLACE OF THE GPO SYMBOL, the employer identification number (EIN) of the forms printer must be printed in the bottom margin on the face of each individual form of Copy A.

16 In the past, substitute Forms 1098, 1099 and 5498 were approved allowing a BLACK POSTAL INDICIA box in the nonscanned upper right hand corner of the form. Because of the difficulty IRS has experienced in processing these forms this deviation is NO LONGER ACCEPTABLE. However, you may use a postal indicia if it meets the following criteria: a) it is printed in the OCR ink color prescribed for the form; b) no part of the indicia is within 1 print position as the scannable area; c) there is a 2/6 inch head margin; and d) there is a 1/4 inch right margin.

PART C. SUBSTITUTE FORM FORMAT REQUIREMENTS FOR FORM W-2G ONLY

SEC. 1. GENERAL

01 The following specifications prescribe the format requirements of Form W-2G--COPY A ONLY.

02 A filer may file a substitute Form W-2G with IRS (hereinafter referred to as substitute Copy A). Substitute forms submitted to IRS must be exact replicas of the official forms with respect to layout and contents. The Government Printing Office symbol must be deleted.

SEC. 2 SPECIFICATIONS FOR COPY A FOR FORMS W-2G

01 Color and Quality of Paper.

1 Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22 - 500), plus or minus 5 percent. The paper must consist of principally bleached chemical woodpulp and be free from unbleached or group woodpulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

2 Copies B and C (to be filed with tax return and for Winner's records) and D (For Payer) are provided in the official assembly solely for the convenience of the filer. Filers may choose the format, design, color and quantity of the paper used for these copies.

3 Copies 1 and 2 are provided to file with the state. Some states have requested the addition of these two plys and they have been included solely for the convenience of the filer.

02 Color and Quality of Ink--All printing must be in a high quality nongloss black ink. Bar codes should be free from picks and voids.

03 Typography--Type must be substantially identical in size and shape with corresponding type on the official form. All rules on the document are either 1-point (0.015 inch) or 3 point (0.045). Vertical rules must be parallel to the left edge of the document; horizontal rules, parallel to the top edge.

04 Dimensions--The official form is 8 inches wide x 3 2/3 inches deep, exclusive of a 2/3 inch snap stub on the left side of the form. The snap feature is not required on substitutes. The top and right margins must be 1/4 inch plus or minus .0313. If the top and right margins are properly aligned the left margin for all forms will be correct. All margins must be free of all printing. If the substitute forms are in continuous or strip form, they must be burst and stripped to conform to the size specified for a single form before they are filed with IRS.

1 The width of a substitute Copy A must be 8 inches. The left margin must be free of all printing other than that shown on the official form.

2 The depth of a substitute Copy A must be 3-2/3 inches.

05 Clear Area--The back of Copy A must be free of all printing.

06 Carbonized forms or "spot carbons"--Carbonized forms and "spot carbons" are not permitted. Interleaved carbons, if used, must be of good quality to preclude smudging and should be black.

07 Printer's Symbol--The Government Printing Office symbol must not be printed on substitute Forms W-2G. In place thereof, the printer's employer identification number should appear in the same place on such substitute forms.

PART D. ADDITIONAL INSTRUCTIONS FOR FORMS 1098, 1099, 5498 AND W-2G

SEC. 1. OTHER COPIES

01 Copies 1 and 2, B, C and D for Forms W-2G are included in the official assembly for the convenience of the filer. Although there is no requirement that privately printed substitute forms include these copies, Copy B (and C for Form W-2G) will satisfy the requirement of law and regulations concerning the statement of information that is required to be furnished to the form recipient. Copy C (D for Forms W- 2G) may be desired as a filer record copy.

02 Arrangement of Assembly--Except as provided in paragraph 03 below, the parts of the assembly shall be arranged, from top to bottom, as follows: Forms 1099 (except 1098, 1099-A, 1099-R, 5498, and W-2G) Copy A (Original), "For Internal Revenue Service Center"; Copy B "For Recipient"; Copy C "For Payer". Form 1098 Copy A (original), "For Internal Revenue Service Center"; Copy B "For Payer"; Copy C "For Recipient". Form 1099-A Copy A (Original), "For Internal Revenue Service Center"; Copy B "For Borrower"; Copy C "For Lender", Form 1099-R Copy A (Original), "For Internal Revenue Service", Copy 1, "For State Tax Department", Copy B, "For Recipient", Copy 2, "To be filed with recipient's state income tax return", Copy C, "For Payer", Form W-2G Copy A (Original), "For Internal Revenue Service Center"; Copy 1, "For state tax department", Copy B and C "For Winner's Records"; Copy 2 "To be filed with winners state income tax returns"; copy D "For Payer"; Form 5498 Copy A (Original), "For Internal Revenue Service Center"; copy B "For Participant"; Copy C "For Trustee or Issuer".

SEC. 2. REPRODUCTION PROOFS

01 Reproduction Proofs--Order blanks for reproduction proofs are mailed annually to requestors of record, and to other users upon request. Printers and others wishing to obtain reproduction proofs may send their requests to:

     Internal Revenue Service

SEC. 3. OMB REQUIREMENTS

01 Office of Management and Budget (OMB) Requirements for Substitute Forms--Pub. L. 96-511 requires: (1) OMB approval of Internal Revenue Service Tax forms, (2) that each form show (in the upper right corner) the OMB approval number and any expiration date (on continuous use forms only), and (3) the form (or its instructions) state why IRS is collecting the information, how we will use it and whether it must be given to us. The official IRS forms will contain this information.

02 As it applies to substitute Service forms this means:

1 All substitute forms must show the OMB number and any expiration date as it appears on the official IRS form.

2 For Copy a, the OMB number must appear exactly as shown on the official IRS form.

3 For any copy other than Copy A, the OMB number must use one of the following formats:

          a OMB No. XXXX-XXXX

5 The official OMB approval numbers may be obtained from reproduction proofs, or official IRS printed forms.

SEC. 4. EFFECT ON OTHER REVENUE PROCEDURES

Revenue Procedures 85-25 and 85-52 are superseded.