IRS PROVIDES SPECIFICATIONS FOR REPRODUCING PAPER SUBSTITUTES FOR INFORMATION REPORTING FORMS.

Rev. Proc. 91-36

PART A. GENERAL

SECTION 1. PURPOSE

01 The purpose of this revenue procedure is to state the requirements for: (1) reproducing paper substitutes of the forms shown below, covering payments made during the 1991 calendar year (for Forms 5498, contributions made for 1991), that are required to be filed with the Internal Revenue Service (IRS), and (2) furnishing substitute statements to form recipients (see Section 4.01 for definition) and paper document reporting. 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, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. See Section 2.03.

(k) Form 1099-S, Proceeds From Real Estate Transactions.

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

(m) Form 5498, Individual Retirement Arrangement Information.

(n) 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. For a substitute form to be acceptable to the IRS, it must conform to the official form or the specifications outlined in this revenue procedure. DO NOT SUBMIT ANY SUBSTITUTES TO IRS FOR APPROVAL. Only those forms that conform to the official form or comply with the specifications set forth herein are acceptable. See Part A, Section 8, for the specifications that apply to form recipient statements (generally Copy B).

SEC. 2. NATURE OF CHANGES

01 Numerous editorial changes have been made to the publication.

02 For loans closed after 1990, you are required to report points paid directly by the borrower on a principal residence on Form 1098, Mortgage Interest Statement. New Box 2 was added for this purpose. See the 1991 Instructions for Forms 1099, 1098, 5498, and W- 2G for more information.

03 Beginning with tax year 1991, Form W-2P, Statement for Recipients of Annuities, Pensions, Retired Pay, or IRA Payments, and Form 1099-R, Statement for Recipients of Total Distributions From Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, etc., have been combined into one Form 1099-R to be filed with IRS. Form W-2P has been eliminated. Form 1099-R will be used to report any distributions from pensions, annuities, IRAs, etc., that were previously reported on either Form W-2P or Form 1099- R. As a result of this change, there are only two 1099-R documents per page and other boxes on the form have been added or repositioned on the form. See the 1991 Instructions for Forms 1099, 1098, 5498, and W-2G for more information.

04 Most real estate sales closed after 1990 are now reportable on Form 1099-S, Proceeds From Real Estate Transactions. See the 1991 Instructions for Forms 1099, 1098, 5498, and W-2G for more information.

05 The titles of Forms 1099 and W-2G have been changed. "Statement for Recipients of" has been eliminated from the title of Form W-2G and from each Form 1099 on which it appeared. "Information Return for" was eliminated from the Form 1099-A.

06 If the IRS has notified you twice within 3 calendar years that the payee shown on a Form 1099 provided an incorrect taxpayer identification number (TIN), you may complete a new checkbox on Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, 1099-OID, and 1099-PATR. If you mark this box, IRS will not send you any further notices about this account. See the 1991 Instructions for Forms 1099, 1098, 5498, and W-2G for more information.

SEC. 3. REQUIREMENTS FOR ACCEPTABLE SUBSTITUTE FORMS 1096, 1098, 1099, 5498, AND W-2G TO BE FILED WITH IRS (COPY A)

01 Paper substitutes for Form 1096 and Copy A of Forms 1098, 1099, 5498, and W-2G, that totally conform to the specifications contained in this procedure may be privately printed and filed as returns with the IRS.

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, giving your understanding and interpretation of the specification, and enclosing an example of the form with your understanding of the specification to:

     Internal Revenue Service

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

04 You may use chemical transfer paper on Copy A without IRS approval.

05 Copy B (Form 1098 For Payer, Form 1099-A For Borrower, Form 1099-S For Transferor, other Forms 1099 For Recipient, Form 5498 For Participant, and Forms W-2G and 1099-R To Be Filed With The Federal Tax Return), and Copy C (Form 1099-R for Recipient's Records and Form W-2G For Winner's Records), must contain the information specified in section 8 in order to constitute 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 statement specified in section 8.04.

06 Forms 1096, 1098, 1099, 5498, and W-2G are subject to annual review and change. Filers are cautioned, therefore, against overstocking supplies of privately printed substitutes. THE SPECIFICATIONS CONTAINED IN THIS REVENUE PROCEDURE APPLY TO 1991 FORMS ONLY.

07 Copies of the official forms for the reporting year may be obtained from most Internal Revenue offices. The IRS provides only cut sheets (no carbon interleaves) of these forms. If they are not available at your local IRS district office, ask that office to order copies for you. You should receive your order within 14 days. If you prefer, you may order them by calling our toll-free telephone number 1-800-829-3676 (TAX-FORM).

08 If you submit forms to IRS that do not meet the specifications in this revenue procedure, you may be subject to a penalty under section 6721 of the Internal Revenue Code. The maximum penalty is $50 for each form (up to $250,000) that the IRS cannot accept as a return because it does not meet the provisions set out in this revenue procedure.

SEC. 4. DEFINITIONS

01 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 IRS: i.e., for Form 1098 the recipient is the "payer/borrower"; Form 1099-A, the "borrower"; Form 1099-S, "the transferor"; Form 5498, the "participant" and Form W-2G, the "winner". Therefore, to prevent any confusion, the person to whom you are required by law to furnish a copy of the official form or information statement will be referred to as the "form recipient".

02 For individual form recipients, the term "taxpayer identification number" (TIN) 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 identification number" means the employer identification number (EIN). The EIN consists of nine digits separated by one hyphen as follows: 00-0000000. For a sole proprietor, use the sole proprietor's SSN and name (not the Business name).

03 The term "filer" means the person or organization required by law to file a form listed in section 1.01 with IRS. Thus, a filer may be a payer, a recipient of mortgage interest payments, a broker, a barter exchange, a person reporting real estate transactions, a trustee or issuer of an individual retirement arrangement (including an IRA or SEP), or a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned.

04 A corrected and/or amended return is one that corrects information previously reported to the IRS. (A voided return will not correct previously reported information.)

05 The term "substitute form" means a paper substitute of Copy A of an official form listed in section 1.01 that totally conforms to the provisions in 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 that must be furnished to a person (form recipient), as so defined under the applicable provisions of the Internal Revenue Code and the applicable regulations.

07 A composite statement is one form (although the form itself may comprise more than one page) that contains all the requisite Form 1099 information. A composite Form 1099 CANNOT be filed with IRS. If the filer does not use a composite statement, the filer must provide the necessary information to the form recipient separately on each respective form or substitute statement as the case may be. See sections 8.03 and 8.05 for more information on composite statements.

SEC. 5. INSTRUCTIONS FOR PREPARING PAPER 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. Dot Matrix Print must be letter quality 7 X 9 per character minimum. Carbon copies and photocopies are not acceptable. The city, state, and ZIP code must be on the same line.

02 The name of the appropriate form recipient must be shown on the first or second name line in the area on the form provided for the form recipient's name and address. (See section 6, Taxpayer Identification Number, for guidelines on the preferred methods for the form recipient's name and TIN). No descriptive information or other name should precede the form recipient's name. Only one form recipient's name should appear on the first line of the form. 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 the other form recipient's name on the succeeding name line (up to 2 name lines are allowable or 3 name lines for 1099-R). We recognize that certain states require that the entities on trust accounts be provided in a different format. Filers should provide information returns reflecting payments to trust accounts with (1) the trust's TIN in the recipient's TIN area, (2) the trust's name as the recipient's first name line and (3) the trustee as the recipient's second name line.

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

04 Filers should TYPE OR MACHINE PRINT data entries on the forms, 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.

05 Machine printed forms should be printed using a 6 lines/inch option.

06 Machine printed forms should be printed in 10 pitch pica (i.e., 10 print positions per inch) or 12 pitch elite (i.e., 12 print positions per inch).

07 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. DO NOT type the words CORRECTED RETURN on the Form 1096, 1098, 1099, 5498 or W-2G. All required data blocks must be completed on a corrected return because it replaces and supersedes the information return previously filed. DO NOT intermix corrected and original returns in one submission. Corrected returns should be filed separately. If you make an error while typing or printing a Form 1098, 1099 or 5498, enter an "X" in the "VOID" box at the top of the form. An entry in the "VOID" box will not correct previously filed information returns.

08 For corrected or voided documents, enter an "X" within the appropriate box using only computer print or typewriter. DO NOT use a felt tip marker. The machine used to "read" paper forms generally cannot "read" this ink type.

09 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. Pinfeed holes MUST NOT be present on forms filed with IRS.

10 Use decimal points to indicate dollars and cents. DO NOT use dollar signs ($), ampersands (&), asterisks (*), commas (,), or other special characters. Example: 200.00-Acceptable/200-Not Acceptable.

11 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.

12 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 type of document being processed.

13 MAIL completed paper forms to the IRS service center specified on the back of Form 1096 and in the 1991 Instructions for Forms 1099, 1098, 5498 and W-2G.

SEC. 6. TAXPAYER IDENTIFICATION NUMBER

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 TINs and place them on returns required to be filed with IRS.

02 Filers must provide correct TINs 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 6721 of the Internal Revenue Code imposes a penalty on filers for each return filed with an incorrect or a missing TIN for Forms 1099 (except Form 1099-R), 1098 and W-2G.

04 The TIN required to be furnished to the IRS depends primarily on the manner in which the account is maintained in the filer's records. Usually, the TIN provided must be that of the owner of the account. 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 social security number. For other entities, furnish an employer identification number (EIN).

05 Sole proprietors filing information returns should show their EIN as the filer's TIN on the return if required to have an EIN. If not, they should show their SSN.

06 If the IRS has notified you twice within 3 calendar years that the payee shown on a 1099 provided an incorrect taxpayer identification number (TIN), you should complete a new checkbox on Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, 1099-OID, and 1099-PATR. If you mark this box, IRS will not send you any further notices about this account.

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

            CHART 1. GUIDELINES FOR SOCIAL SECURITY NUMBERS

01 The IRS encourages all filers including nominees (hereafter collectively referred to as filers) to file information returns on magnetic media instead of paper forms. All forms listed in section 1.01 (except Form 1096) may be filed on magnetic media.

02 Any person who is required to file 250 or more information returns for one calendar year must file on magnetic media. The 250- or-more requirement applies separately to each type of form. The requirement applies to any person for any period. However, if such person establishes that this requirement would result in undue hardship, the person may receive a waiver from the filing requirements. To request a waiver from filing on magnetic media, submit Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, 45 days before the due date of the return. Generally, new brokers and new barter exchanges reporting Form 1099-B data to the IRS may request an undue hardship exception by filing a waiver request by the end of the second month following the month in which they became a broker or barter exchange.

03 Specifications for filing information returns on magnetic tape, 8 inch, 5-1/4 inch, and 3-1/2 inch diskette, and electronic submissions are contained in Publication 1220 relating to requirements and conditions for filing information returns on magnetic media. Copies of these procedures may be obtained from most Internal Revenue district offices or by calling 1-800-829-3676 (TAX- FORM). Filers or agents who are required to, or want to, file information returns on magnetic media must file Form 4419, Application for Filing Information Returns Magnetically/Electronically. Forms 4419 must be filed prior to submitting returns magnetically or electronically. IRS will provide a written reply to the applicant and further instructions at the time of approval.

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

SEC. 8. STATEMENTS TO FORM RECIPIENTS AND FORM RECIPIENT COPIES

01 FURNISHING STATEMENTS TO RECIPIENTS -- Forms 1099-INT, DIV, OID, and PATR ONLY. -- For payments of interest and dividends reportable on Forms 1099-DIV (for dividends reportable under section 6042 of the IRC), 1099-INT (for interest reportable only under section 6049 of the IRC), 1099-OID (for original discount reportable under section 6049 of the IRC), or 1099-PATR (for patronage dividend reportable under section 6044 of the IRC), an official Form 1099 must be furnished to a form recipient either in a statement mailing by first-class mail or in person. For payments of royalties reportable on Form 1099-MISC, you are also required to furnish the statement in person or in a statement mailing by first-class mail, but the statement need not be the official form. (The statement mailing requirements do not apply to the forms listed in 8.04.) These forms may be mailed or provided to the recipient in one of two ways, in a statement mailing or in a separate mailing. With respect to a statement mailing the form may be mailed or provided in person with other Forms 1098, 1099, W-2, or 5498 form recipient statements, a check, a letter explaining why no check is enclosed, a statement of the person's account, Forms W-8 and W-9, solicitations or a letter limited to an explanation of the tax consequences of the enclosed form recipient statements. The statement "Important Tax Return Document Enclosed" must appear on the outside of the envelope and on each check, letter, or account statement in a bold and conspicuous manner. A form recipient statement may be perforated to a check with respect to the account reported on the payee statement or to a statement of the payee's specific account if payments on such account are reflected on the form recipient statement. The enclosure to which the form recipient statement is perforated must contain, in a bold and conspicuous type, the legend "Important Tax Return Document Attached." With respect to a separate mailing the form may be mailed or provided in person with other Forms 1098, 1099, or 5498 form recipient statements, Forms W-8 and W-9, Forms W-2 and a letter limited to an explanation of the tax consequences of the enclosed form recipient statements. If you make a separate mailing you are not required to include the legend "Important Tax Return Document Enclosed" on the envelope. NOTE: Whether you use either method, no other information, such as advertising, promotional material, or a quarterly or annual report, may be mailed with the form recipient statement or provided in person with the form recipient statement without violating these requirements. See Notice 87-17, 1987-1 C.B. 454, and Notice 87-70, 1987-2 C.B. 380, for more information.

02 SUBSTITUTE STATEMENTS TO RECIPIENTS -- 1099-INT, DIV, OID, and PATR only. -- The requirement to furnish form recipients with an official Form 1099-INT, DIV, OID, and PATR, may be met by furnishing Copy B of the official form or by furnishing a substitute Form 1099 (form recipient statement) if it contains the same language as that of the official IRS form, such as the aggregate amount paid to the form recipient, any Federal income tax withheld under IRC section 3406 of the Code, 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 mailing requirements (see .01 above). Specifically, the form recipient statement for interest, dividends, patronage dividends, and original issue discount must contain the information listed below.

(1) Payment boxes, captions and numbers that are applicable must be clearly identified, using the same wording and numbering as on the official form, with the exception of 1099-INT. On the 1099-INT, if box 3 will have no entry then you may drop "not included in box 3" from the box 1 caption.

(2) The form recipient statement must contain all applicable form recipient instructions provided on the front and back of the official IRS form.

(3) The form recipient statement 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 may be imposed on you if this income is taxable and the IRS determines that it has not been reported."

(4) The caption "Federal income tax withheld" should be in bold face type on the form recipient statement.

(5) The form recipient statement must contain the Office of Management and Budget (OMB) number as shown on the official IRS form. See Part D, Section 3.

(6) The form recipient statement must show the title and number of the official IRS Form 1099 for which it substitutes. IRS would prefer the words "Substitute for" or "IN lieu of" not appear on the form recipient statement.

(7) If the form recipient statement contains all the information listed in 1 through 6 above, layout and format of the form is at the discretion of the filer. However, IRS encourages the use of statements with boxes so that the statement has the appearance of a form.

03 COMPOSITE SUBSTITUTE STATEMENTS -- FORMS 1099-INT, DIV, OID, AND PATR ONLY. -- A composite form recipient statement is permitted for reportable payments of interest, dividends, original issue discount, and/or patronage dividends (Forms 1099-INT, DIV, OID or PATR) when one payer is reporting more than one of these payments during a calendar year to the same form recipient. DO NOT include any other Forms 1099 (i.e., 1098, 1099-A, 1099-B) on a composite statement with the forms listed above. This will violate the official form requirements. Although the composite form recipient statement may be on one form, the format of the composite form recipient statement 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 IRS form or forms for which this form recipient statement substitutes must be shown at the beginning of each appropriate block of information.

(3) Any information required by the official IRS 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 no requirement to report the name of the filer in each information block.

04 SUBSTITUTE STATEMENTS TO RECIPIENTS. -- FORMS 1098, 1099-A, 1099-B, 1099-G, 1099-MISC, 1099-R, 1099-S, 5498, W-2G, AND CERTAIN FORMS 1099-INT AND 1099-DIV. Statements to form recipients of payments reportable on Forms 1098, 1099-A, 1099-B, 1099-G, 1099-MISC, 1099-R, 1099-S, 5498, 1099-DIV only for section 404(k) dividends reportable under section 6047, and 1099-INT only for payments reportable under section 6041 can be, but is not required to be, a copy of the official form. If you do not use the official form as the form recipient statement, the substitute form recipient statement should meet the following requirements:

(1) The filer and form recipient identifying information required on the official IRS form must be included.

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

(3) Form recipient statements must contain the following:

(a) Forms 5498 and Form 1099-R -- "This information is being furnished to the Internal Revenue Service."

(b) Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC and W-2G -- "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 may be imposed on you if this income is taxable and the IRS determines that it has not been reported."

(c) Form 1099-A -- "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 may be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported."

(d) Form 1098 -- (i) "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 may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest on your return." (ii) "The amount shown may not be fully deductible by you on your Federal income tax return." Limitations based on the cost and value of the secured property may apply. In addition, you may only deduct an amount of mortgage interest to the extent it was incurred by you, actually paid by you, and not reimbursed by another person."

(e) Form 1099-S -- "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 may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported." NOTE: You may use a Uniform Settlement Statement (under RESPA) as the written statement if it is conformed by including on the statement the legend described above and by designating which information is being reported to IRS on Form 1099-S.

(4) Appropriate instructions to the form recipient, similar to those on the official IRS form, must be provided to aid in the proper reporting of the items on the form recipient's income tax return. 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 IRS 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.

(5) Form recipient statements specified in 04 above may contain information other than that required by the official IRS form. However, if other information is included, such statements cannot be mailed with Forms 1099-DIV, INT, OID, PATR, MISC (for royalty payments) or their substitutes without violating the statement mailing requirements.

05 COMPOSITE SUBSTITUTE STATEMENT -- FORMS SPECIFIED IN 8.04 ONLY. -- A composite form recipient statement for forms specified in 04 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 8.01 above and forms listed in 8.04 except that a broker may combine gross proceeds with items reported on the forms used in 8.01 above. For example, a composite statement of Forms 1098 and 1099-INT (for interest reportable under section 6049) is not allowable. Although the composite form recipient statement may be on one form, the format of the composite form recipient statement must satisfy the requirements listed in items (1), (2), and (3) of 03 above in addition to the requirements specified in 04.

PART B -- SPECIFICATIONS FOR SUBSTITUTE FORMS TO BE FILED WITH IRS (EXCEPT 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 check boxes located to the right of the form identifying number must be 10-point boxes.

SEC. 2. SPECIFICATIONS FOR FORMS 1096 AND COPY A OF FORMS 1098, 1099 AND 5498

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

02 Color and quality of paper for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 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

The contractor must have or initiate a quality control program to assure OCR ink density. In addition he or she must have at, or adjacent to the production area either a MacBeth PCM-II tester or a Kidder 082A tester for testing to 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 80%. 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 -- 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 the 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 Typography -- Type must be substantially identical in size and shape with corresponding type on the official form. All rules are either 1/2-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.

05 Dimension -- Three official Forms 1098, 1099 or 5498 (Copy A) are contained on a single page, except Form 1099-R which contains two documents per page, which is 8 inches wide (exclusive of any snap stubs and/or pinfeed holes) by 11 inches deep. See Exhibits A thru N in this publication for the correct form measurements. 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.

06 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 form.

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

08 The words "For Paperwork Reduction Act Notice and instructions for completing this form, see Instructions for Forms 1099, 1098, 5498, and W-2G" MUST be printed on Copy A (and Copy C).

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

10 PRIVATELY PRINTED CONTINUOUS SUBSTITUTE FORMS (COPY A) MUST BE PERFORATED AT EACH 11" (3 PER PAGE, OR 2 PER PAGE FOR 1099-R) PAGE DEPTH. NO PERFORATIONS ARE ALLOWED BETWEEN THE 3-2/3" FORMS ON A SINGLE COPY PAGE OF COPY A.

11 The words "DO NOT CUT OR SEPARATE FORMS ON THIS PAGE" must be printed in red dropout ink (as required by form specifications) between the three, or two for 1099-R, forms. NOTE: Perforations are required between all the other individual copies (Copies B and C, and Copies 1 and 2 for Form 1099-R and Form 1099-MISC, and Copy D for Form 1099-R) included in the set.

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

13 Carbonized. "SPOT CARBONS" are 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 permitted without IRS approval.

14 Printer's symbol -- The GPO symbol must not be placed on substitute Copy A. The form must not say IRS approved.

15 A postal indicia may be used 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 of the scannable area; c) there is a .33 inch head margin from the corrected box; and d) there is a 1/4 inch right margin.

PART C. SPECIFICATION FOR SUBSTITUTE FORMS W-2G TO BE FILED WITH IRS

SEC. 1. GENERAL

01 The following specifications prescribe the format requirements for 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 -- 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 ground woodpulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

02 Color and Quality of Ink -- All printing must be in a high quality non-gloss 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 1/2 point (.007 inch), 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, should be black and good quality to preclude smudging.

07 Printer's Symbol -- The Government Printing Office symbol must not be printed on substitute Forms W-2G.

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

SEC. 1. OTHER COPIES

01 Copies B and C and in some cases, D, and 1 and 2, 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, Copies B, in some cases, and C will satisfy the requirement of law and regulations concerning the statement of information that is required to be furnished to the form recipient. Copies C and D (Forms 1099-R and W-2G) may be desired as a filer record copy. Only Copy A should be filed with the IRS.

02 Arrangement of Assembly -- The parts of the assembly must be arranged, from top to bottom, as follows: (a) Form 1098 Copy A, "For Internal Revenue Service Center"; Copy B "For Payer"; Copy C "For Recipient." (b) Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-OID, and 1099-PATR, Copy A, "For Internal Revenue Service Center"; Copy B "For Recipient"; Copy C "For Payer." (c) Form 1099-A, Copy A, "For Internal Revenue Service Center"; Copy B "For Borrower"; Copy C "For Lender." (d) Form 1099-MISC, Copy A, "For Internal Revenue Service Center"; Copy 1, "For State Tax Department"; Copy B, "For Recipient"; Copy 2, "To be filed with recipient's state income tax return, when required."; Copy C, "For Payer." (e) Form 1099-R Copy A, "For Internal Revenue Service Center"; Copy 1, "For State, City, or Local Tax Department". Copy B, "Report this income on you Federal tax return. If this form shows Federal income tax withheld in Box 4, attach this copy to your return"; Copy C. "For Recipient's Records"; Copy 2, "File this copy with your state, city, or local income tax return, when required"; Copy D, "For Payer." (f) Form 1099-S, Copy A, "For Internal Revenue Service Center"; Copy B, "For Transferor"; Copy C, "For Filer." (g) Form 5498, Copy A, "For Internal Revenue Service Center"; Copy B, "For Participant"; Copy C, "For Trustee or Issuer." (h) Form W-2G, Copy A, "For Internal Revenue Service Center"; Copy 1, "For State Tax Department"; Copy B, Report this income on your Federal tax return. If this form shows tax was withheld attach this copy to your return. Copy C "For Winner's Records"; Copy 2 "To be filed with winner's state income tax return, if required."; Copy D "For Payer."

SEC. 2. REPRODUCTION PROOFS

01 Reproduction Proofs -- IRS Publication 1192 containing order blanks and a list of items available for reproduction proofs are mailed annually to requesters 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 -- Public Law 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 (3) the form (or its instructions) state why IRS is collecting the information, how it will be used and whether it must be given to IRS. The official IRS forms or instructions will contain this information.

02 As it applies to substitute IRS forms this means:

(1) All substitute forms must show the OMB number 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 (preferred) or;

(b) OMB # XXXX-XXXX

(4) You must inform the users of your substitute forms of the reasons for IRS collection, use, and requirements, as stated in the Instructions for Forms 1099, 1098, 5498, and W-2G.

(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 Procedure 90-44 is superseded.

[Editor's note: Exhibits A through N depict physical specifications for the forms discussed above. These items are not suitable for electronic reproduction.]