REQUIREMENTS FOR REPRODUCING PAPER SUBSTITUTES FOR FORM 1098 ARE PROVIDED

Rev. Proc. 85-52

PART A. GENERAL

SECTION 1. PURPOSE

01 The purpose of this revenue procedure is to supplement existing requirements for reproducing paper substitutes of Forms 1099 by adding Form 1098, Mortgage Interest Statement.

02 This revenue procedure supplements Rev. Proc. 85-25, 1985-19 I.R.B. 10.

SECTION 2. APPLICATION FOR APPROVAL OF SUBSTITUTE FORMS 1098 COPY A

01 Paper substitutes for Forms 1098 that totally conform to the specifications contained in this procedure may be privately printed without prior approval from the Service.

02 Proposed substitutes not conforming to these specifications must be submitted for consideration by the Service according to instructions in Rev. Proc. 85-25.

SECTION 3. INSTRUCTIONS

01 All definitions and instructions in Part A of Rev. Proc. 85-25 that apply to Forms 1099 (other than Forms 1099-DIV, OID, and PATR) also apply to Forms 1098.

02 Due to the nature of Form 1098 all references in Part A of Rev. Proc. 85-25 to "recipient" or "payee/recipient" should be substituted with "payer" and references to "payer" should be substituted with "recipient".

03 Statements to "payers" must follow the specifications in Section 8.05 of Revenue Procedure 85-25 for copies to recipients. They may not be combined with Forms 1099-DIV, INT, OID, and PATR.

04 Rev. Proc. 85-25 instructions for magnetic media filing of Forms 1099 also apply to Forms 1098.

PART B. SUBSTITUTE FORM FORMAT REQUIREMENTS FOR FORMS 1098

SECTION 1. GENERAL

01 All Forms 1099 format requirements in Parts B and, D of Rev. Proc. 85-25 also apply to Forms 1098. In addition, ink colors must be OCR drop out brown, Sinclair-Valentine, J-22053 (or exact match) or OCR drop out maroon, Sinclair-Valentine, J-31859 (or exact match) for tax year 1985 Forms 1098 only.

02 The form identifying number for Forms 1098 is "8181".

03 The specification for Copy A of Forms 1098 is provided on Exhibit A.

04 The "Instruction for Interest Recipients" as it appears on the back of copies C of the official form need not be reproduced on each copy. If one copy is provided to the recipient with each order of forms, the requirement to provide the instructions will have been met.

SECTION 2. EFFECT ON OTHER REVENUE PROCEDURES

Rev. Proc. 85-25 supplemented.

NOTES:

1. Vertical and horizontal measurements must be the same as the official 8" width form.

2. The form identification number must consist of "8181" in OCR A font and placed in the same position as on the official form.

3. The printer's EIN must be printed in the bottom margin of the face of each individual form of Copy A.

4. The titles for all numbered boxes for federally-required entries must correspond to the official form.

EXHIBIT A

Mortgage Interest Statement

[Editor's note: Exhibit A (Mortgage Interest Statement) is not suitable for electronic presentation.]