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Rev. Proc. 92-81


Rev. Proc. 92-81; 1992-2 C.B. 472

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Tax forms and instructions.

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 92-81; 1992-2 C.B. 472

Superseded by Rev. Proc. 98-52

Rev. Proc. 92-81

                              CONTENTS

 

 

PART A. GENERAL

 

 

     SECTION 1. PURPOSE

 

     SECTION 2. NATURE OF CHANGES

 

     SECTION 3. WHERE TO FILE AND HOW TO CONTACT THE IRS MARTINSBURG

 

                COMPUTING CENTER

 

     SECTION 4. FILING REQUIREMENTS

 

     SECTION 5. REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON

 

                MAGNETIC MEDIA

 

     SECTION 6. APPLICATION FOR MAGNETIC MEDIA REPORTING

 

     SECTION 7. TEST FILES

 

     SECTION 8. FILING OF FORM 8027 MAGNETICALLY

 

     SECTION 9. FILING DATES

 

     SECTION 10. EXTENSIONS OF TIME TO FILE

 

     SECTION 11. PROCESSING OF MAGNETIC MEDIA RETURNS

 

     SECTION 12. PENALTIES

 

     SECTION 13. CORRECTED RETURNS, SUBSTITUTE FORMS, AND

 

                 COMPUTER-GENERATED FORMS

 

     SECTION 14. EFFECT ON PAPER RETURNS

 

     SECTION 15. DEFINITIONS

 

     SECTION 16. EFFECT ON OTHER DOCUMENTS

 

     SECTION 17. EFFECTIVE DATE

 

 

PART B. MAGNETIC MEDIA SPECIFICATIONS

 

 

     SECTION 1. GENERAL

 

     SECTION 2. TAPE SPECIFICATIONS

 

     SECTION 3. DISKETTE SPECIFICATIONS

 

     SECTION 4. RECORD FORMAT

 

 

PART A. GENERAL

SECTION 1. PURPOSE

.01 The Internal Revenue Service Martinsburg Computing Center (IRS/MCC) has the responsibility of processing Forms 8027 submitted magnetically. The purpose of this revenue procedure is to provide the specifications for filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on magnetic tape and 5 1/4- or 3 1/2-inch magnetic diskettes. This revenue procedure is updated when legislative changes occur or reporting procedures are modified.

.02 This revenue procedure supersedes the following: Rev. Proc. 89-55 published as Publication 1239 (10-89), Requirements and Conditions for Submitting Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on Magnetic Tape.

SEC. 2. NATURE OF CHANGES

.01 Numerous editorial changes have been made to the revenue procedure. Please read the publication carefully and in its entirety before attempting to prepare your magnetic media for submission. The changes are as follows:

(a) The title of Publication 1239 has changed from "Requirements and Conditions for Submitting Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on Magnetic Tape" to "Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on Magnetic Tape and 5 1/4- or 3 1/2-Inch Magnetic Diskettes."

(b) Added Part A, Sec. 4--"Filing Requirements".

(c) The telephone number for the IRS/MCC fax machine is provided in Part A, Sec. 3.03.

(d) IRS/MCC has installed Telecommunication Devices for the Deaf (TDD). The telephone number for TDD is provided in Part A, Sec. 3.04.

(e) The Information Reporting Program Bulletin Board System (IRP-BBS) is available to filers. Part A, Sec. 3.05 contains information on how to contact the IRP-BBS.

(f) Note was added to Part A, Sec. 5.06 regarding waivers. Waiver requests are due 45 days prior to the due date of the return. IRS/MCC no longer accepts waiver requests up to the due date of the return.

(g) Note was added to Part A, Sec. 6.02 regarding application for magnetic media reporting. Form 4419, Application for Filing Information Returns Magnetically/Electronically should be filed with IRS/MCC 30 days prior to the due date of the return.

(h) Added Part A, Sec. 7--"Test Files".

(i) Note was added to Part A, Sec. 7.02 regarding test files. IRS/MCC will accept test files between October 1 and December 15.

(j) Note was added to Part A, Sec. 11.02 regarding replacement data. Files that are returned because of format or coding errors must be returned to IRS/MCC within 45 days.

(k) Added Part A, Sec. 12--"Penalties"

(l) All references to 7-track tapes have been removed. IRS/MCC no longer accepts 7-track tapes.

.02 Starting with tax year 1992 returns, IRS/MCC will accept Forms 8027 on 5 1/4- or 3 1/2-inch magnetic diskette. Part B, Sec. 3 was added to provide the specifications for filing Forms 8027 on magnetic diskette.

SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER

.01 Magnetic media covered under this revenue procedure and all requests for IRS magnetic media related publications, information, undue hardship waivers, extensions of time to file, or forms must be directed to the following addresses:

       If by Postal Service:

 

 

       IRS-Martinsburg Computing Center

 

       P.O. Box 1359

 

       Martinsburg, WV 25401-1359

 

 

       or If by truck or air freight:

 

 

       IRS-Martinsburg Computing Center

 

       Information Reporting Program

 

       Route 9 and Needy Road

 

       Martinsburg, WV 25401

 

 

.02 Hours of operation are 8:30 a.m. until 6:00 p.m. Eastern Time. The telephone number is (304) 263-8700 (not a toll-free number.)

.03 The telephone number for the IRS/MCC fax machine is (304) 264-5196.

.04 IRS/MCC has installed Telecommunications Devices for the Deaf (TDD). The number is (304) 267-3367.

.05 The IRP-BBS allows information return filers to contact IRS/MCC using personal computers and dial-up modems. This electronic bulletin board system is available 24 hours a day, 7 days a week. The number is (304) 263-2749.

.06 IRP-BBS software provides several different functions in a menu driven environment. Publication 1239 and other magnetic media related publications are available through IRP-BBS as "downloadable" files. Filers have access to the latest changes in the Information Reporting Program by contacting the IRP-BBS. Electronic filing of certain information returns is an IRP-BBS function, however, electronic filing of Form 8027 is not available at this time.

.07 CENTRALIZED INFORMATION REPORTING CALL SITE

In 1991, IRS instituted a centralized call site to answer tax law questions related to information returns (Forms 1096, 1098, 1099, 1042S, 5498, 8027, W-2, W-2G, W-3, and W-4). The call site is located at IRS/MCC and operates in conjunction with the information reporting program.

The site provides service to financial institutions, employers, and other payers who file information returns. It is being phased in over a two-year period. The site is currently operating as a pilot accepting inquiries from payers/employers calling from Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, and New York. Beginning in October 1992, the site will accept inquiries from payers/employers in those states as well as the following: Ohio, Indiana, Michigan, West Virginia, and Kentucky. The numbers to call are (304) 263-8700 or TDD (304) 267-3367. This is a toll call.

Payers/employers in other areas of the country should continue to call 1-800-829-1040. If the pilot operation is successful, the remaining states will be phased in October 1, 1993, when the call site will be available nationwide. Hours of operation for the call site during the pilot are 8:30 a.m. to 6:00 p.m. Eastern Time.

.08 Requests for paper returns, publications, or forms not related to magnetic media processing should be requested by calling the IRS toll-free number 1-800-829-3676.

SEC. 4. FILING REQUIREMENTS

.01 Section 6011(e)(2)(A) of the Internal Revenue Code requires that any person, including corporations, partnerships, individuals, estates, and trusts, required to file 250 or more information returns must file such returns on magnetic media.

.02 The filing requirements apply separately to both original and corrected returns.

.03 The above requirements do not apply if you establish undue hardship (see Part A, Sec. 5).

SEC. 5. REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA

.01 Any person required to file original or corrected returns on magnetic media may request a waiver from these filing requirements if such filing would create an undue hardship by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC.

.02 The employer may sign the Form 8508. The transmitter may sign only if the transmitter has a Power-of-Attorney and a letter is attached to the Form 8508 stating this fact.

.03 A separate Form 8508 must be submitted for each employer. Do not submit a list of employers. Specify the type of returns for which a waiver is being requested on the Form 8508.

.04 The waiver, if approved, will provide exemption from magnetic media filing for one tax year only. Filers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.

.05 A copy of the Form 8508 may be obtained from IRS/MCC (see Part A, Sec. 3.01 for the address) or from other IRS offices.

.06 Form 8505 must be submitted to IRS/MCC at least 45 days before the due date of the return. IF A REQUEST IS NOT POSTMARKED AT LEAST 45 DAYS BEFORE THE DUE DATE OF THE RETURN, IT WILL BE DENIED.

.07 Waivers are evaluated on a case-by-case basis and are approved or denied based on regulation criteria set forth under section 6724 of the Internal Revenue Code. You must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.

.08 If you are required to file on magnetic media but fail to do so, and you do not have an approved waive-ron record, you may be subject to a failure-to-file penalty.

.09 If your waiver request is approved, keep it for your records. DO NOT send a copy of the approved waiver to Andover Service Center with your paper returns.

.10 An approved waiver from filing information returns on magnetic media does not provide exemption from all filing; you must still file your information returns on acceptable paper forms.

SEC. 6. APPLICATION FOR MAGNETIC MEDIA REPORTING

.01 For the purposes of this revenue procedure, the EMPLOYER is the organization supplying the information and the TRANSMITTER is the organization preparing the magnetic media file. The employer and the transmitter may be the same organization. Employers or their transmitters are required to complete Form 4419, Application for Filing Information Returns Magnetically/Electronically. Requests for forms or additional information on magnetic media reporting should be sent to IRS/MCC. (See Part A, Sec. 3.01 for the address.)

.02 Form 4419 can be submitted at any time during the year; however, it should be submitted to IRS/MCC at least 30 days before the due date of the return(s). IRS will act on an application and notify the applicant, in writing, of authorization to file. A five-character Transmitter Control Code (TCC) will be assigned and included in an acknowledgment letter within 15 to 45 days of receipt of the application. Magnetic media returns may not be filed with IRS until the application has been approved. Include your TCC in any correspondence with IRS/MCC.

.03 If you file information returns other than Form 8027 on magnetic media, you must obtain a separate TCC for those types of returns. The TCC assigned for Forms 8027 is to be used for the processing of those forms only.

.04 Upon approval, a magnetic media reporting package, containing the current revenue procedure and necessary transmittals, labels and shipping instructions, will be sent to the attention of the contact person indicated on Form 4419. Thereafter, IRS/MCC will send the transmitter a package containing the current revenue procedure and forms each year. This package will continue to be sent to the contact person indicated on the Form 4419 unless IRS/MCC has been notified of any changes or updates.

.05 When completing Form 4419, follow the instructions on the back of the form carefully.

.06 If you plan to file for multiple employers, IRS encourages transmitters to submit one application and to use one TCC for all employers. Include a list of all employers and their Employer Identification Numbers (EIN) with the Form 4419. If you file for additional employers in later years, you may notify IRS/MCC in writing of the additional names and EINs. Do not submit a new application for these additional employers.

.07 Only employers or transmitters using equipment compatible with IRS equipment will have their application approved.

.08 If your magnetic media files have been prepared for you in the past by a transmitter, and you now have computer equipment compatible with that of IRS and wish to prepare your own files, you must request your own five-character TCC by filing an application, Form 4419, as described in Sec. 6.02.

.09 After you have received approval to file on magnetic media, you do not need to reapply each year; however, notify IRS in writing if:

(a) You change your name or the name of your organization, so that your files may be updated to reflect the proper name;

(b) There are hardware or software changes that would affect the characteristics of the magnetic media submission;

(c) You discontinue filing on magnetic media for a year (your TCC may have been reassigned).

SEC. 7. TEST FILES

.01 IRS/MCC encourages new filers to submit test files for review in advance of the filing season. Employers or transmitters must be approved to file magnetically before a test file is submitted (See Part A, Sec. 6 for application procedures.)

.02 All test files must be submitted between October 1 and December 15 of the year before the returns are due. If you are unable to submit your test files by December 15, you may send a sample hard copy printout to IRS/MCC between December 16 and January 15. Clearly mark the hardcopy printout as "TEST DATA" and include the name, address, and telephone number of someone familiar with the test printout who may be contacted to discuss its acceptability.

SEC. 8. FILING OF FORM 8027 MAGNETICALLY

.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must accompany magnetic media submissions. If you file for multiple employers and have the authority to sign the affidavit on Form 4804, you should also submit Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation). Copies of Form 4804 and 4802 are included in the back of this publication.

.02 The employer MUST sign Form 4804, however, an agent (transmitter, service bureau, paying agent, or disbursing agent) may sign Form 4804 for the employer. To do this, the agent must have the authority to sign for the employer under an agency agreement (either oral, written, or implied) that is valid under the state law and must add to his or her signature the caption "For: (name of employer)".

NOTE: Failure to sign the Form 4804 may delay processing or will result in your file being returned to you unprocessed.

.03 Although a duly authorized agent may sign the Form 4804, the employer is responsible for the accuracy of the Form 4804 and the return filed. The employer will be liable for penalties for failure to comply with filing requirements.

.04 Be sure to include Form 4804, 4802 or computer-generated substitutes with your magnetic media shipment. DO NOT MAIL YOUR MAGNETIC MEDIA AND THE TRANSMITTAL DOCUMENTS SEPARATELY. IRS/MCC encourages the use of a computer-generated Form 4804/4802 that includes all necessary information requested on the current form.

.05 Indicate on Form 4804, in the block captioned "Combined Total Payee Records," the total number of establishments being reported in this shipment. This figure should match the total number of records in your magnetic media file.

.06 DO NOT SUBMIT THE SAME INFORMATION ON PAPER FORMS THAT YOU SUBMIT ON MAGNETIC MEDIA. This does not mean that corrected documents are not to be filed. If a return has been prepared and submitted improperly, you must file a corrected return as soon as possible. Refer to Part A, Sec. 12 for requirements and instructions for filing corrected returns.

.07 If an allocation of tips is based on a good faith agreement, a copy of this agreement must accompany the submission.

.08 If, under Rev. Proc. 86-21, 1986-1 C.B. 560, the District Director granted the establishment an interest rate of less than 8%, a copy of the determination letter must be sent with the submission. Employers with more than one establishment can receive approval from one district in each Internal Revenue Service region where the establishments are located (see sec. 31.6053-3(h)(4) of the Employment Tax Regulations).

.09 When submitting magnetic media files include the following:

(a) A signed Form 4804 or computer-generated substitute.

(b) A Form 4802 if you transmit for multiple employers and have the authority to sign the Form 4804.

(c) The magnetic media with media label Form 5064 affixed to the media.

(d) On the outside of the shipping container, include a Form 4801 or a substitute for the form which reads "DELIVER UNOPENED TO TAPE LIBRARY-MAGNETIC MEDIA REPORTING--BOX ____ of ____." If there is only one container, mark the outside as Box 1 of 1. For multiple containers, include the sequence (for example, Box 1 of 3, 2 of 3, 3 of 3).

(e) If you were granted an extension, include a copy of the approval letter with the magnetic media shipment. See Part A, Sec. 10 for information on how to apply for an extension of time to file.

.10 IRS/MCC will not pay or accept "Collect on Delivery" or "Charged to IRS" shipments of reportable tax information that an individual or organization is legally required to submit.

SEC. 9. FILING DATES

.01 Magnetic media reporting to IRS for Form 8027 must be on a calendar year basis. The due date of either paper or magnetically reported Forms 8027 is the last day of February.

.02 If the due date falls on a Saturday, Sunday, or legal holiday, filing Form 8027 on the next day that is not a Saturday, Sunday, or legal holiday will be considered timely. Therefore, tax year 92 Forms 8027 will be timely if filed on or before March 1, 1993.

SEC. 10. EXTENSIONS OF TIME TO FILE

.01 If you are unable to submit your files by the prescribed date, submit a letter requesting an extension of time to file. To be considered, your request must be postmarked by the due date of the return. You may be subject to a late filing penalty if your files are received after the due date of return and no extension has been granted.

.02 Request an extension of time for 30 days AS SOON AS YOU ARE AWARE an extension is necessary but no later than the due date of the return. An additional extension may be granted under extreme circumstances. The request must be sent to IRS/MCC. (See Part A, Sec. 3.01 for the address.) Allow a minimum of 30 days for IRS/MCC to respond to an extension request. EXTENSION REQUESTS WILL NO LONGER BE GRANTED AUTOMATICALLY. APPROVAL OR DENIAL IS BASED ON ADMINISTRATIVE GUIDELINES.

.03 A letter requesting an extension should contain the following information:

(a) The employer's (or transmitter's, if filing for multiple employers) name and address.

(b) The employer's EIN.

(c) The tax year for which an extension of time is requested (e.g., tax year 1992).

(d) The name and telephone number of a person to contact who is familiar with the request.

(e) The type of return.

(f) The five-character alpha/numeric Transmitter Control Code assigned to the organization or individual requesting the extension (if a number has been assigned).

(g) The reason for the delay and date that you will be able to file.

(h) If you file for multiple employers, the request must include a list of all employers and their EINs.

.04 If the extension request is granted, a copy of the approval letter must be included with the Form 4804 or computer-generated substitute when the files are submitted. Also, if you originally requested a 30-day extension and then find you need an additional 30 days, a copy of the first approval must accompany your second request.

CAUTION: AN EXTENSION OF TIME TO FILE IS NOT AN EXTENSION TO ISSUE THE FORM W-2 COPY TO THE EMPLOYEE. SEE PUBLICATION 1220 FOR INFORMATION ON EXTENSIONS OF TIME TO FURNISH FORMS W-2.

SEC. 11. PROCESSING OF MAGNETIC MEDIA RETURNS

.01 All data received at the IRS/MCC for processing will be given the same protection as individual returns (Form 1040). IRS/MCC will process your magnetic media files and check that the records were formatted and coded according to this revenue procedure.

.02 Files may be returned to you because of coding or format errors. These are to be corrected and returned to IRS/MCC within 45 days of the date of notice or the employer may be subject to a failure to file penalty. Please open all returned files as soon as you receive them.

.03 Files will not be returned to you after successful processing. Therefore, if you want proof that IRS/MCC received your shipment, you may use a carrier that provides proof of delivery.

.04 To distinguish between a correction and a replacement the following definitions have been provided:

(a) A correction is a record submitted by the employer/transmitter to correct a record that was successfully processed by IRS, but contained erroneous information.

(b) A replacement is media that IRS has returned because of format errors or data discrepancies encountered during processing. After necessary changes have been made, the media must be returned to IRS/MCC for processing.

SEC. 12. PENALTIES

.01 The Revenue Reconciliation Act of 1989 changed the penalty provisions for any documents including corrections, which are filed after the original filing date for the return. The penalty for failure to file correct information returns is "time sensitive," in that prompt correction of failures to file, or prompt correction of errors on returns that were filed, can lead to reduced penalties.

--The penalty generally is $50 for each information return that is not filed, or is not filed correctly, by the prescribed filing date, with a maximum penalty of $250,000 per year ($100,000 for certain small businesses with average annual gross receipts, over the most recent 3-year period, not in excess of $5,000,000). The penalty generally is reduced to:

--$30 for each failure to comply if the failure is corrected more that 30 days after the return was due, but on or before August 1 of the calendar year in which the return was due, with a maximum penalty of $150,000 per year ($50,000 for certain small businesses with average annual gross receipts, over the most recent 3-year period, not in excess of $5,000,000).

--$15 for each failure to comply if the failure is corrected within 30 days after the date the return was due, with a maximum penalty of $75,000 per year ($25,000 for certain small businesses with average annual gross receipts, over the most recent 3-year period, not in excess of $5,000,000).

.02 Penalties can be waived if failures were due to reasonable cause and not to willful neglect. In addition, section 6721(c) of the Code provides a de minimis rule that if:

(a) information returns have been filed but were filed with incomplete or incorrect information, and

(b) the failures are corrected on or before August 1 of the calendar year in which the returns were due, then the penalty for filing incorrect returns (but not the penalty for filing late) will not apply to the greater of 10 returns or one-half of 1 percent of the total number of information returns you are required to file for the calendar year.

.03 Intentional Disregard of Filing Requirements--If any failure to file a correct information return is due to intentional disregard of the filing and correct information requirements, the penalty is at least $100 per information return with no maximum penalty.

SEC. 13. CORRECTED RETURNS, SUBSTITUTE FORMS AND COMPUTER-GENERATED FORMS

.01 If returns must be corrected or amended, approved magnetic media filers must provide such corrections on magnetic media if you have 250 or more. If your information is filed on magnetic media, corrected or amended returns are identified by using the "Amended 8027 Indicator" in field position 370 of the employer record. Form 4804 must accompany the shipment and the box for correction should be marked in Block 1 of the form. (See Part A, Sec. 11.04 for the definition of corrections.)

.02 If corrections are not submitted on magnetic media, employers must submit them on official Forms 8027. Substitute forms that have been previously approved by IRS, or computer-generated forms that are exact facsimiles of the official form (except for minor page size or print style deviations), may be submitted without obtaining IRS approval before using the form.

.03 Employers/establishments may send amended or corrected paper Forms 8027 to IRS at the address shown in Part A, Sec. 14.01. Corrected paper returns are identified by marking the "AMENDED" checkbox on Form 8027.

SEC. 14. EFFECT ON PAPER RETURNS

.01 If you are filing more than one paper Form 8027, you must attach a completed Form 8027-T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to the Forms 8027 and send to:

Internal Revenue Service Center

 

Andover, MA 05501

 

 

IRS/MCC processes Form 8027 submitted on magnetic media only. Do not send paper Forms 8027 to IRS/MCC.

.02 If part of a submission is filed on magnetic media and the rest of the submission is filed on paper Forms 8027, send the paper forms to the Andover Service Center. For example, you filed your Forms 8027 on magnetic media with IRS/MCC, and later you found that some of the forms you filed need correcting. Because of the low volume of corrections, you submit the corrections on paper Forms 8027. You must send these amended Forms 8027 along with Form 8027-T to the Andover Service Center.

SEC. 15. DEFINITIONS

 ELEMENT        DESCRIPTION

 

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

 

 EIN            A nine-digit Employer Identification Number which has

 

                been assigned by IRS to the reporting entity.

 

 

 Employer       The organization supplying the information.

 

 

 Establishment  A large food or beverage establishment that provides

 

                food or beverage for consumption on the premises;

 

                where tipping is a customary practice; and where there

 

                are normally more than 10 employees on a typical

 

                business day during the preceding calendar year.

 

 

 File           For the purpose of this procedure, a file consists of

 

                all magnetic media records submitted by an Employer or

 

                Transmitter.

 

 

 Transmitter    Person or organization preparing magnetic media

 

                file(s). May be Employer or agent of Employer.

 

 

 Transmitter    A five-character alpha/numeric code assigned by IRS to

 

 Control        the transmitter prior to actual filing on magnetic

 

 Code           media. This number is inserted in the record and must

 

 (TCC)          be present. An application (Form 4419) must be filed

 

                with IRS to receive this number.

 

 

SEC. 16. EFFECT ON OTHER DOCUMENTS

.01 Rev. Proc. 89-55, 1989-2 C.B. 634, is superseded.

SEC. 17. EFFECTIVE DATE

.01 This revenue procedure is effective for Forms 8027 due the last day of February 1993 and any returns filed thereafter.

PART B. MAGNETIC MEDIA SPECIFICATIONS

SECTION 1. GENERAL

.01 The magnetic media specifications contained in this part of the revenue procedure define the required format and contents of the records to be included in the file.

.02 A media label, Form 5064, must be affixed to each piece of media submitted for processing. Notice 210 provides instructions on how to complete Form 5064.

.03 The record format in Part B, Sec. 4 applies to magnetic tape and diskette records.

SEC. 2. TAPE SPECIFICATIONS

.01 In most instances, IRS/MCC can process any compatible tape files. Compatible tape files must meet any one set of the following:

(a) 9-track EBCDIC (Extended Binary Coded Decimal Interchange Code) with

(1) Odd Parity and

(2) A density of 1600 or 6250 BPI

(3) If you use Unisys Series 1100, you must submit an interchange tape.

(b) 9-track ASCII (American Standard Coded Information Interchange) with

(1) Odd Parity and

(2) A density of 1600 or 6250 BPI

Please be consistent in the use of recording codes and density on your files. If files are generated in more than one recording code and/or density, multiple shipments would be appreciated.

.02 All compatible tape files must have the following characteristics:

(a) Type of Tape--1/2 inch mylar base, oxide coated; computer grade magnetic tape on reels up to 2400 feet (731.52 m) within the following specifications:

(1) Tape thickness: 1.0 or 1.5 mils

(2) Reel diameter: 10.5 inch (26.67 cm), 8.5 inch (21.59 cm), or 7 inch (17.78 cm).

.03 All records have a fixed record length of 372 positions.

.04 The tape record defined in this revenue procedure may be blocked or unblocked, subject to the following:

(a) All records except the header and trailer labels may be blocked.

(b) If records are blocked, the block MUST be 10,044 tape positions.

(c) If the use of blocked records would result in a short block, all remaining positions of the block MUST be filled with 9's. DO NOT PAD A BLOCK WITH BLANKS. Padding a block with blanks will result in a short record, which will cause math computation errors. Your tape will then be returned for correction.

.05 For the purposes of this revenue procedure the following conventions must be used:

Header label:

(a) Transmitters may use standard headers provided they begin with 1HDR, HDR1, VOL1, or VOL2.

(b) Consists of a maximum of 80 positions.

(c) Header and trailer labels are optional unless more than one reel is being submitted. If more than one reel is being submitted, header and trailer labels are required. IRS/MCC PREFERS STANDARD OR ANSI LABELED TAPES. IF YOU SUBMIT AN UNLABELED TAPE, THIS MUST BE INDICATED ON THE EXTERNAL LABEL AND ON THE FORM 4804 OR COMPUTER-GENERATED SUBSTITUTE.

Trailer label:

(a) Standard trailer labels may be used provided that they begin with 1EOR, 1EOF, EOV1, or EOV2.

(b) Consists of a maximum of 80 positions.

(c) Header and trailer labels are optional unless more than one reel is being submitted. If more than one reel is being submitted, header and trailer labels are required.

Tape Mark:

(a) Used to signify the physical end of the recording on tape.

(b) May follow the header label and precede and/or follow the trailer label.

SEC. 3. DISKETTE SPECIFICATIONS

.01 To be compatible, a diskette file must meet the following specifications:

(a) 5 1/4 or 3 1/2 inches in diameter.

(b) Data must be recorded in standard ASCII code.

(c) Records must be fixed length of 372 bytes per record.

(d) Delimiter character commas (,) must not be used.

(e) Positions 371 and 372 of each record have been reserved for carriage return/line feed (cr/lf) characters.

(f) Filename of ATMTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette, the filename will contain a 3-digit extension. This extension will indicate the sequence of the diskette within the file. For example, the first diskette will be named ATMTAX.001, the second diskette will be ATMTAX.002, etc.

(g) A file may contain more than one diskette as long as the filename conventions are adhered to.

(h) Diskettes must meet one of the following specifications:

 Capacity            Tracks               Sides/Density   Sector Size

 

 1.44 mb              96tpi               hd                  512

 

 1.44 mb             135tpi               hd                  512

 

 1.2  mb              96tpi               hd                  512

 

 720  kb              48tpi               ds/dd               512

 

 360  kb              48tpi               ds/dd               512

 

 320  kb              48tpi               ds/dd               512

 

 180  kb              48tpi               ss/dd               512

 

 160  kb              48tpi               ss/dd               512

 

 

.02 IRS requires that 5 1/4- and 3 1/2-inch diskettes be created using MS/DOS. Diskettes created using other operating systems are not acceptable. We strongly recommend that you submit a test file if this will be your first time filing on diskette.

.03 Deviations from the prescribed format will not be acceptable.

SEC. 4. RECORD FORMAT

                RECORD NAME: 8027 MAGNETIC MEDIA RECORD

 

 

 Field

 

 Position   Field Title        Length   Description and Remarks

 

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

 

 1          Establishment      1        REQUIRED. This digit

 

            Type                        identifies the kind of

 

                                        establishment. Enter the

 

                                        number which describes the

 

                                        type of establishment, as

 

                                        shown below:

 

                                        1 for an establishment that

 

                                        serves evening meals only

 

                                        (with or without alcoholic

 

                                        beverages).

 

                                        2 for an establishment that

 

                                        serves evening meals and other

 

                                        meals (with or without

 

                                        alcoholic beverages).

 

                                        3 for an establishment that

 

                                        serves only meals other than

 

                                        evening meals (with or without

 

                                        alcoholic beverages).

 

                                        4 for an establishment that

 

                                        serves food, if at all, only

 

                                        as an incident part of the

 

                                        business of serving alcoholic

 

                                        beverages.

 

 

 2-6        Establishment      5        REQUIRED. These five digits

 

            Serial Number               are for identifying individual

 

                                        establishments of an employer

 

                                        reporting under the same EIN.

 

                                        The employer shall assign each

 

                                        establishment a unique number.

 

                                        NUMERICS ONLY.

 

 

 7-46       Establishment      40       REQUIRED. Enter the name of

 

            Name                        the establishment. Left

 

                                        justify and fill unused

 

                                        positions with blanks.

 

                                        ALLOWABLE CHARACTERS ARE

 

                                        ALPHAS, NUMERICS, BLANKS,

 

                                        HYPHENS, AMPERSANDS, AND

 

                                        SLASHES.

 

 

 47-86      Establishment      40       REQUIRED. Enter the mailing

 

            Street Address              address of the establishment.

 

                                        Street address should include

 

                                        number, street, apartment or

 

                                        suite number (or P.O. Box if

 

                                        mail is not delivered to

 

                                        street address). Left justify

 

                                        and blank fill. ALLOWABLE

 

                                        CHARACTERS ARE ALPHAS,

 

                                        NUMERICS, BLANKS, HYPHENS,

 

                                        AMPERSANDS, AND SLASHES.

 

 

 87-111     Establishment      25       REQUIRED. Enter the city,

 

            City                        town, or post office. Left

 

                                        justify and blank fill.

 

                                        ALLOWABLE CHARACTERS ARE

 

                                        ALPHAS, NUMERICS, BLANKS,

 

                                        HYPHENS, AMPERSANDS, AND

 

                                        SLASHES.

 

 

 112-113    Establishment      2        REQUIRED. Enter state code of

 

            State                       the establishment; must be one

 

                                        of the following:

 

 

                 STATE                                           CODE

 

                 Alabama                                         AL

 

                 Alaska                                          AK

 

                 Arizona                                         AZ

 

                 Arkansas                                        AR

 

                 California                                      CA

 

                 Colorado                                        CO

 

                 Connecticut                                     CT

 

                 Delaware                                        DE

 

                 District of Columbia                            DC

 

                 Florida                                         FL

 

                 Georgia                                         GA

 

                 Hawaii                                          HI

 

                 Idaho                                           ID

 

                 Illinois                                        IL

 

                 Indiana                                         IN

 

                 Iowa                                            IA

 

                 Kansas                                          KS

 

                 Kentucky                                        KY

 

                 Louisiana                                       LA

 

                 Maine                                           ME

 

                 Maryland                                        MD

 

                 Massachusetts                                   MA

 

                 Michigan                                        MI

 

                 Minnesota                                       MN

 

                 Mississippi                                     MS

 

                 Missouri                                        MO

 

                 Montana                                         MT

 

                 Nebraska                                        NE

 

 

                 Nevada                                          NV

 

                 New Hampshire                                   NH

 

                 New Jersey                                      NJ

 

                 New Mexico                                      NM

 

                 New York                                        NY

 

                 North Carolina                                  NC

 

                 North Dakota                                    ND

 

                 Ohio                                            OH

 

                 Oklahoma                                        OK

 

                 Oregon                                          OR

 

                 Pennsylvania                                    PA

 

                 Rhode Island                                    RI

 

                 South Carolina                                  SC

 

                 South Dakota                                    SD

 

                 Tennessee                                       TN

 

                 Texas                                           TX

 

                 Utah                                            UT

 

                 Vermont                                         VT

 

                 Virginia                                        VA

 

                 Washington                                      WA

 

                 West Virginia                                   WV

 

                 Wisconsin                                       WI

 

                 Wyoming                                         WY

 

 

 114-122    Establishment      9        REQUIRED. Enter the ZIP Code

 

            ZIP Code                    of the establishment. If using

 

                                        a five-digit ZIP Code, left

 

                                        justify the five-digit ZIP

 

                                        Code and fill the remaining

 

                                        four positions with blanks. If

 

                                        using a nine-digit ZIP Code,

 

                                        enter the number. ALLOWABLE

 

                                        CHARACTERS ARE NINE NUMERICS

 

                                        OR FIVE NUMERICS AND FOUR

 

                                        BLANKS.

 

 

 123-131    Employer           9        REQUIRED. Enter the nine

 

            Identification              -digit number assigned to the

 

            Number                      employer by IRS. DO NOT ENTER

 

                                        HYPHENS, ALPHAS, ALL 9's, OR

 

                                        ALL ZEROS.

 

 

 132-171    Employer           40       REQUIRED. Enter the name of

 

            Name                        the employer as it appears on

 

                                        your tax forms (e.g., Form

 

                                        941). Any extraneous

 

                                        information must be deleted.

 

                                        Left justify and blank fill.

 

                                        ALLOWABLE CHARACTERS ARE

 

                                        ALPHAS, BLANKS, NUMERICS,

 

                                        AMPERSANDS, HYPHENS, AND

 

                                        SLASHES.

 

 

 172-211    Employer           40       REQUIRED. Enter mailing

 

            Street Address              address of employer. Street

 

                                        address should include number,

 

                                        street, apartment or suite

 

                                        number (or P.O. Box if mail is

 

                                        not delivered to street

 

                                        address). Left justify and

 

                                        blank fill. ALLOWABLE

 

                                        CHARACTERS ARE ALPHAS, BLANKS,

 

                                        NUMERICS, AMPERSANDS, HYPHENS,

 

                                        AND SLASHES.

 

 

 212-236    Employer City      25       REQUIRED. Enter the city,

 

                                        town, or post office. Left

 

                                        justify and blank fill.

 

                                        ALLOWABLE CHARACTERS ARE

 

                                        ALPHAS, BLANKS, NUMERICS,

 

                                        AMPERSANDS, HYPHENS, AND

 

                                        SLASHES.

 

 

 237-238    Employer State     2        REQUIRED. Enter state code of

 

                                        employer. Must be one of the

 

                                        abbreviations shown in the

 

                                        state abbreviation table for

 

                                        Establishment State (field

 

                                        positions 112-113).

 

 

 239-247    Employer ZIP       9        REQUIRED. Enter ZIP Code of

 

            Code                        employer. If using a five

 

                                        -digit ZIP Code, left justify

 

                                        the five-digit ZIP Code and

 

                                        fill the remaining four

 

                                        positions with blanks. If

 

                                        using a nine-digit ZIP Code,

 

                                        enter the number. ALLOWABLE

 

                                        CHARACTERS ARE NINE NUMERICS

 

                                        OR FIVE NUMERICS AND FOUR

 

                                        BLANKS.

 

 

 248-259    Charged Tips       12       REQUIRED. Enter the total

 

                                        amount of tips that are shown

 

                                        on charge receipts for the

 

                                        calendar year. Field is in

 

                                        dollars and cents. Right

 

                                        justify and zero fill.

 

                                        NUMERICS ONLY. DO NOT ENTER

 

                                        DECIMAL POINTS, DOLLAR SIGNS,

 

 

                                        OR COMMAS.

 

 

 260-271    Charged Receipts   12       REQUIRED. Enter the total

 

                                        sales for the calendar year

 

                                        other than carryout sales or

 

                                        sales with an added service

 

                                        charge of 10 percent or more,

 

                                        that are on charge receipts

 

                                        with a charged tip shown. This

 

                                        includes credit card charges,

 

                                        other credit arrangements, and

 

                                        charges to a hotel room unless

 

                                        the employer's normal

 

                                        accounting practice

 

                                        consistently excludes charges

 

                                        to a hotel room. Do not

 

                                        include any state or local

 

                                        taxes in the amount reported.

 

                                        Right justify and zero fill.

 

                                        Field is in dollars and cents.

 

                                        If no entry, zero fill.

 

                                        NUMERICS ONLY. DO NOT INCLUDE

 

                                        DOLLAR SIGNS, DECIMAL POINTS,

 

                                        OR COMMAS.

 

 

 272-283    Service Charge     12       REQUIRED. Enter the total

 

            Less Than 10                amount of service charges less

 

            Percent                     than 10 percent that have been

 

                                        added to customer's bills and

 

                                        have been distributed to your

 

                                        employees for the calendar

 

                                        year. In general, service

 

                                        charges added to the bill are

 

                                        not tips since the customer

 

                                        does not have a choice. These

 

                                        service charges are treated as

 

                                        wages and are included on Form

 

                                        W-2. For a more detailed

 

                                        explanation, see Rev. Rul. 69

 

                                        -28, 1969-1 C.B. 270. Right

 

                                        justify and zero fill. Field

 

                                        is in dollars and cents. If no

 

                                        entry, zero fill. NUMERICS

 

                                        ONLY. DO NOT ENTER DOLLAR

 

                                        SIGNS, DECIMAL POINTS, OR

 

                                        COMMAS.

 

 

 284-295    Indirect Tips      12       REQUIRED. Enter the total

 

            Reported                    amount of tips reported by

 

                                        indirectly tipped employees

 

                                        (e.g., busboys, service

 

                                        bartenders, cooks) for the

 

                                        calendar year. Do not include

 

                                        tips received by employees in

 

                                        December of the prior tax year

 

                                        but not reported until

 

                                        January. Include tips received

 

                                        by employees in December of

 

                                        the tax year being reported,

 

                                        but not reported until January

 

                                        of the subsequent year. Right

 

                                        justify and zero fill. Field

 

                                        is in dollars and cents. If no

 

                                        entry, zero fill. NUMERICS

 

                                        ONLY. DO NOT ENTER DOLLAR

 

                                        SIGNS, DECIMAL POINTS, OR

 

                                        COMMAS.

 

 

 296-307    Direct Tips        12       REQUIRED. Enter the total

 

            Reported                    amount of tips reported by

 

                                        directly tipped employees

 

                                        (e.g., waiters, waitresses,

 

                                        bartenders) for the calendar

 

                                        year. Do not include tips

 

                                        received by employees in

 

                                        December of the prior tax year

 

                                        but not reported until

 

                                        January. Include tips received

 

                                        by employees in December of

 

                                        the tax year being reported,

 

                                        but not reported until January

 

                                        of the subsequent year. Right

 

                                        justify and zero fill. Field

 

                                        is in dollars and cents. If no

 

                                        entry, zero fill. NUMERICS

 

                                        ONLY. DO NOT ENTER DOLLAR

 

                                        SIGNS, DECIMAL POINTS, OR

 

                                        COMMAS.

 

 

 308-319    Total Tips         12       REQUIRED. Enter the total

 

            Reported                    amount of tips reported by all

 

                                        employees (both indirectly

 

                                        tipped and directly tipped)

 

                                        for the calendar year. Do not

 

                                        include tips received in

 

                                        December of the prior tax year

 

                                        but not reported until

 

                                        January. Include tips received

 

                                        in December of the tax year

 

                                        being reported, but not

 

 

                                        reported until January of the

 

                                        subsequent year. Right justify

 

                                        and zero fill. Field is in

 

                                        dollars and cents. If no

 

                                        entry, zero fill. NUMERICS

 

                                        ONLY. DO NOT ENTER DOLLAR

 

                                        SIGNS, DECIMAL POINTS, OR

 

                                        COMMAS.

 

 

 320-331    Gross Receipts     12       REQUIRED. Enter the total

 

                                        gross receipts from the

 

                                        provision of food and/or

 

                                        beverages for this

 

                                        establishment for the calendar

 

                                        year. Do not include receipts

 

                                        for carryout sales or sales

 

                                        with an added service charge

 

                                        of 10 percent or more. Do not

 

                                        include in gross receipts

 

                                        charged tips (field positions

 

                                        248-259) shown on charge

 

                                        receipts unless you have

 

                                        reduced the cash sales amount

 

                                        because you have paid cash to

 

                                        tipped employees for tips they

 

                                        earned that were charged. Do

 

                                        not include state or local

 

                                        taxes in gross receipts. If

 

                                        you do not charge separately

 

                                        for food or beverages along

 

                                        with other services (such as a

 

                                        package deal for food and

 

                                        lodging), make a good faith

 

                                        estimate of the gross receipts

 

                                        attributable to the food or

 

                                        beverages. This estimate must

 

                                        reflect the cost of providing

 

                                        the food or beverages plus a

 

                                        reasonable profit factor.

 

                                        Include the retail value of

 

                                        complimentary food or

 

                                        beverages served to customers

 

                                        if tipping for them is

 

                                        customary and they are

 

                                        provided in connection with an

 

                                        activity engaged in for profit

 

                                        whose receipts would not be

 

                                        included as gross receipts

 

                                        from the provision of food or

 

                                        beverages (e.g., complimentary

 

                                        drinks served to customers at

 

                                        a gambling casino). Right

 

                                        justify and zero fill. Field

 

                                        is in dollars and cents. If no

 

                                        entry, zero fill. NUMERICS

 

                                        ONLY. DO NOT ENTER DOLLAR

 

                                        SIGNS, DECIMAL POINTS, OR

 

                                        COMMAS.

 

 

 332-343    Tip Percentage     12       REQUIRED. Enter the amount

 

            Rate Times                  determined by multiplying

 

            Gross Receipts              Gross Receipts for the year

 

                                        (field positions 320-331) by

 

                                        the Tip Percentage Rate (field

 

                                        positions 344-347). Right

 

                                        justify and zero fill. For

 

                                        example, if the value of Gross

 

                                        Receipts is "000045678900" and

 

                                        Tip Percentage Rate is "0800",

 

                                        multiply $456,789.00 by .0800

 

                                        to get $36,543.12 and enter

 

                                        "000003654312". If tips are

 

                                        allocated using other than the

 

                                        calendar year, enter zeros;

 

                                        this may occur if you

 

                                        allocated tips based on the

 

                                        time period for which wages

 

                                        were paid or allocated on a

 

                                        quarterly basis. Field is in

 

                                        dollars and cents. NUMERICS

 

                                        ONLY. DO NOT ENTER DOLLAR

 

                                        SIGNS, DECIMAL POINTS, OR

 

                                        COMMAS.

 

 

 344-347    Tip Percentage     4        REQUIRED. Enter 8 percent

 

            Rate                        (0800) unless a lower rate has

 

 

                                        been granted by the District

 

                                        Director. The determination

 

                                        letter must accompany the

 

                                        magnetic media submission.

 

                                        NUMERICS ONLY. DO NOT ENTER

 

                                        DECIMAL POINT.

 

 

 348-359    Allocated Tips     12       REQUIRED. If Tip Percentage

 

                                        Rate Times Gross Receipts

 

                                        (field positions 332-343) is

 

                                        greater than Total Tips

 

                                        Reported (field positions 308

 

                                        -319), then the difference

 

                                        becomes  Allocated Tips.

 

                                        Otherwise, enter all zeros.

 

                                        Right justify and zero fill.

 

                                        If tips are allocated using

 

                                        other than the calendar year,

 

                                        enter the amount of allocated

 

                                        tips from your records. Field

 

                                        is in dollars and cents.

 

                                        NUMERICS ONLY. DO NOT ENTER

 

                                        DOLLAR SIGNS, DECIMAL POINTS,

 

                                        OR COMMAS.

 

 

 360        Allocation         1        REQUIRED. Enter the allocation

 

            Method                      method used if Allocated Tips

 

                                        (field positions 348-359) are

 

                                        greater than zero as follows:

 

                                        1 for allocation based on

 

                                        hours worked; 2 for allocation

 

                                        based on gross receipts; 3 for

 

                                        allocation based on a good

 

                                        faith agreement. The good

 

                                        faith agreement must accompany

 

                                        the magnetic media submission.

 

                                        If Allocated Tips are equal to

 

                                        zero, enter 0 (zero). NOTE:

 

                                        Under Section 1571 of the Tax

 

                                        Reform Act of 1986, the method

 

                                        of allocation of tips based on

 

                                        the number of hours worked as

 

                                        described in Section 31.6053

 

                                        -3(f)(1)(iv) may be utilized

 

                                        only by an employer that

 

                                        employs less than the

 

                                        equivalent of 25 full-time

 

                                        employees at the establishment

 

                                        during the payroll period.

 

                                        Section 31.6053-3(j)(19)

 

                                        provides that an employer is

 

                                        considered to employ less than

 

                                        the equivalent of 25 full

 

                                        -time employees at an

 

                                        establishment during a payroll

 

                                        period if the average number

 

                                        of employee hours worked per

 

                                        business day during the

 

                                        payroll period is less than

 

                                        200 hours.

 

 

 361-364    Number of          4        REQUIRED. Enter the total

 

            Directly Tipped             number of directly tipped

 

            Employees                   employees employed by the

 

                                        establishment for the calendar

 

                                        year. Right justify and zero

 

                                        fill. NUMERICS ONLY.

 

 

 365-369    Transmitter        5        REQUIRED. Enter the 5-digit

 

            Control Code                Transmitter Control Code

 

            (TCC)                       assigned by the IRS.

 

 

 370        Amended 8027       1        REQUIRED. Enter blank for

 

            Indicator                   original return. Enter "G" for

 

                                        amended return. An amended

 

                                        return must be a complete new

 

                                        return replacing the original

 

                                        return.

 

 

 371-372    IRS USE            2        Magnetic tape filers are

 

                                        required to enter blanks.

 

                                        Diskette filers may enter

 

                                        blanks or the carriage

 

                                        return/line feed characters

 

                                        (cr/lf).
DOCUMENT ATTRIBUTES
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    26 CFR 601.602: Tax forms and instructions.

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