IRS RELEASES ELECTRONIC AND MAGNETIC MEDIA FILING REQUIREMENTS.
Rev. Proc. 97-34; 1997-2 C.B. 375
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Index Termsfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 97-21736 (72 original pages)
- Tax Analysts Electronic Citation97 TNT 145-30
Superseded by Rev. Proc. 98-35
Rev. Proc. 97-34
Use this revenue procedure to prepare Tax Year 1997 information returns for submission to Internal Revenue Service (IRS) using any of the following:
-- Magnetic Tape
-- Tape Cartridge
-- 8mm, 4mm, and Quarter Inch Cartridges
-- 5 1/4-inch Diskette
-- 3 1/2-inch Diskette
-- Electronic Filing
-- (Bisynchronous)
-- (Asynchronous)
Caution to filers:
Format changes to accommodate Year 2000 will occur for TY98 in calendar year 1999.
Treasury has mandated that all electronic year dates exchanged with non-IRS organizations, both government and private, both input and output, shall adhere to the following:
-- All Gregorian date formats will be in the format 'YYYYMMDD'.
-- All other year date formats (e.g., Julian, Tax Period, Cycle Dates) will expand representations from 2-digit year to 4-digit year: 'YYYY'.
In compliance with Year 2000 changes, the current bisynchronous electronic filing communications package will be changed in the future.
Please read this publication carefully. Persons or businesses required to file information returns may be subject to penalties for failure to file or include correct information if they do not follow the instructions in this revenue procedure.
Table of Contents
Part A. General
Section 1. Purpose
Section 2. Nature of Changes - Current Year (Tax Year 1997)
Section 3. Where to File and How to Contact the IRS,
Martinsburg Computing Center
Section 4. Filing Requirements
Section 5. Form 8508, Request for Waiver from Filing
Information Returns on Magnetic Media
Section 6. Vendor List
Section 7. Form 4419, Application for Filing Information Returns
Magnetically/Electronically
Section 8. Test Files
Section 9. Filing of Information Returns
Magnetically/Electronically and Retention Requirements
Section 10. Due Dates
Section 11. Extensions of Time
Section 12. Processing of Information Returns
Magnetically/Electronically
Section 13. Corrected Returns
Section 14. Taxpayer Identification Number (TIN)
Section 15. Effect on Paper Returns and Statements to Recipients
Section 16. Combined Federal/State Filing Program
Section 17. Definition of Terms
Section 18. State Abbreviations
Section 19. Major Problems Encountered
Part B. Magnetic Media Specifications
Section 1. General
Section 2. Tape Specifications
Section 3. Tape Cartridge Specifications
Section 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications
Section 5. 5 1/4-inch and 3 1/2-inch Diskette Specifications
Section 6. Payer/Transmitter "A" Record -- General Field
Descriptions
Section 7. Payer/Transmitter "A" Record -- Record Layout
Section 8. Payee "B" Record -- General Field Descriptions and
Record Layouts
Section 9. End of Payer "C" Record -- General Field Descriptions
and Record Layout
Section 10. State Totals "K" Record -- General Field Descriptions
and Record Layout
Section 11. End of Transmission "F" Record -- General Field
Descriptions and Record Layout
Part C. Bisynchronous (Mainframe) Electronic Filing Specifications
Section 1. General
Section 2. Electronic Filing Approval Procedure
Section 3. Test Files
Section 4. Electronic Submissions
Section 5. Transmittal Requirements
Section 6. IBM 3780 Bisynchronous Communication Specifications
Section 7. Bisynchronous Electronic Filing Record Specifications
Part D. Asynchronous (IRP-BBS) Electronic Filing Specifications
Section 1. General
Section 2. Electronic Piling Approval Procedure
Section 3. Test Flies
Section 4. Electronic Submissions
Section 5. Transmittal Requirements
Section 6. Information Reporting Program Bulletin Board System
(IRP-BBS) Specifications
Section 7. IRP-BBS First Logon Procedures
Part E. Magnetic/Electronic Specification for Extensions of Time
Section 1. General
Section 2. Magnetic Tape, IBM 3480/3490, AS400 Compatible Tape
Cartridge, AS400 8mm Tape Cartridge, 5 1/4- and
3 1/2 -inch Diskette, and Electronic Specifications
Section 3. Record Layout
Part F. Miscellaneous Information
Section 1. Addresses for Martinsburg Computing Center
Section 2. Telephone Numbers for Contacting IRS/MCC
PART A. GENERAL
Revenue procedures are generally revised annually to reflect legislative and form changes. Comments concerning this revenue procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Martinsburg Computing Center
Attn: IRB, Information Support Section
P.O. Box 1359, MS-360
Martinsburg, WV 25402
SECTION 1. PURPOSE
.01 The purpose of this revenue procedure is to provide the specifications for filing Forms 1098, 1099 series, 5498, 5498-MSA, and W-2G electronically or on magnetic media, which includes 1/2-inch magnetic tape; IBM 3480, 3490 or AS400 compatible tape cartridges (including 8mm); or 5 1/4- and 3 1/2-inch diskettes with IRS. IRS/MCC has discontinued processing 8-inch diskettes. This revenue procedure must be used for the preparation of Tax Year 1997 information returns and information returns for years prior to 1997 that are required to be filed. This revenue procedure must be used to prepare current and prior year information returns filed between January 1, 1998, and December 31, 1998. Specifications for filing the following forms are contained in this revenue procedure.
(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-C, Cancellation of Debt.
(e) Form 1099-DIV, Dividends
and Distributions.
(f) Form 1099-G, Certain Government
Payments.
(g) Form 1099-INT, Interest Income.
(h) Form 1099-LTC, Long-Term
Care and Accelerated Death
Benefits.
(i) Form 1099-MISC, Miscellaneous Income.
(j) Form 1099-MSA, Distributions From
Medical Savings Accounts.
(k) Form 1099-OID, Original Issue Discount.
(l) Form 1099-PATR, Taxable Distributions
Received From Cooperatives.
(m) Form 1099-R, Distributions From
Pensions, Annuities, Retirement or
Profit-Sharing Plans, IRAs, Insurance
Contracts, etc.
(n) Form 1099-S, Proceeds From Real
Estate Transactions.
(o) Form 5498, IRA, SEP, or SIMPLE
Retirement Plan Information.
(p) Form 5498-MSA, Medical Savings
Account Information.
(q) Form W-2G, Certain Gambling Winnings.
.02 Specifications for filing Forms W-2 on magnetic media are available from the Social Security Administration (SSA) only Filers can call 1-800-SSA-1213 to obtain the phone number of the SSA Magnetic Media Coordinator for their area.
.03 The Internal Revenue Service, Martinsburg Computing Center (IRS/MCC) has the responsibility for processing Forms 1098, 1099 series, 5498, 5408-MSA, and W-2G filed magnetically or electronically. IRS/MCC does not process Forms W-2. Paper and/or magnetic media for Forms W-2 must be sent to SSA. IRS/MCC does, however, process waiver requests (Form 8508), extension of time to file requests (Form 8809) for Forms W-2 and requests for extension of time to file the employee copies of W-2G.
.04 Generally, the box numbers on the paper forms correspond with the amount codes used to file magnetically/electronically; however, if discrepancies occur, the instructions in this revenue procedure govern.
.05 This revenue procedure also provides the requirements and specifications for magnetic media or electronic filing under the Combined Federal/State Filing Program.
.06 The following revenue procedures and publications provide more detailed filing procedures for certain other information returns.
(a) 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G" provides specific instructions on completing and submitting information returns to IRS.
(b) Rev. Proc. 84-33, 1984-1 C.B. 502, regarding the optional method for agents to report and deposit backup withholding.
(c) Publication 1179, Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099 Series, 5498, and W-2G.
(d) Publication 1239, 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 Diskettes.
(e) Publication 1187, Specifications for Filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Electronically or on Magnetic Tape, and 5 1/4- or 3 1/2 -inch Diskettes.
(f) Publication 1245, Specifications for Filing Form W-4, Employee's Withholding Allowance Certificate, on Magnetic Tape, and 5 1/4- or 3 1/2-inch Diskette.
(g) Rev. Proc. 97-25, specifications set forth for the magnetic or electronic filing of 1997 Form 8851, Summary of Medical Savings Accounts, Magnetically/Electronically.
.07 This revenue procedure supersedes Rev. Proc. 96-36 published as Publication 1220 (Rev. 7-96), Specifications for Filing Forms 1098, 1099 series, 5498, and W-2G Magnetically or Electronically.
.08 Refer to Part A, Sec. 17, for definitions of terms used in this publication.
SECTION 2. NATURE OF CHANGES -- CURRENT YEAR (TAX YEAR 1997)
.01 In this publication, all pertinent changes for Tax Year 1997 have been emphasized by using italics. This has been done to assist filers in identifying new information. Filers are still advised to read the publication in its entirety.
.02 Programming Changes
a. Payer/Transmitter "A" Record Changes.
(1) For all forms, Payment Year, Field Positions 2-3 must be incremented by one (from 96 to 97) unless reporting prior year data.
(2) In Part B, Sec. 6, the Type of Return Codes, Field Position 22 of the Payer "A" Record, have been expanded to include new forms 1099-LTC, 1099-MSA, and 5498-MSA. The Type of Return Codes are T for Form 1099-LTC, M for 1099-MSA, and K for Form 5498-MSA.
(3) In Part B, Sec. 6, for Form 1099-C, Amount Code 4 (Penalties, fines, or administrative costs included in Amount Code 2) has been deleted from Field Positions 23-31 of the Payer "A" Record.
(4) In Part B, Sec. 6, for the new Form 1099-LTC (Type of Return Code T), Amount Codes 1 (Gross long-term care benefits paid) and 2 (Accelerated death benefits paid) have been added to Field Positions 23-31 of the Payer "A", Record.
(5) In Part B, Sec. 6, for the new Form 1099-MSA (Type of Return Code M), Amount Codes 1 (Gross distribution) and 2 (Earnings on excess contributions) have been added to Field Positions 23-31 of the Payer "A" Record.
(6) In Part B, Sec. 6, for Form 5498, Two Amount Codes have been added, Amount Code 6 (SEP contributions) and Amount Code 7 (SIMPLE contributions) in Field Positions 23-31 of the Payer "A" Record.
(7) In Part B, Sec. 6, for the new Form 5498-MSA (Type of Return Code K), Amount Codes 1 (Employee MSA contributions made in 1997 and 1998 for 1997), 2 (Total MSA contributions made in 1997), and 3 (Total MSA contributions made in 1998 for 1997), 4 (MSA rollover contributions not included in Amount Code 1, 2, or 3) and 5 (Fair market value of account) have been added to Field Positions 23-31 of the Payer "A" Record.
(8) In Part B, Sec. 6, the Payer City, State, and Zip Code field in Positions 171-210 of the Payer "A" Record have been broken down into three separate fields.
(9) In Part B, Sec. 6, for the convenience of the filer, an optional field has been added for the Payer's Phone Number and Extension in Field Positions 371-385 of the Payer "A" Record.
b. Payee "B" Record Changes:
(1) For all forms, Payment Year, Field Positions 2-3 must be incremented by one (from 96 to 97) unless reporting prior year data.
(2) In Part B, Sec. 8, for the Form 1099-MSA. Distribution Codes 1 (Normal distribution), 2 (Excess contributions), 3 (Disability), 4 (Death), and 5 (Prohibited transaction) have been added to Field Positions 4 and 5 of the Payee "B" Record.
(3) In Part B, Sec. 8, for the Form 1099-R, Distribution Codes L (Loans treated as deemed distributions under section 72(p)) and S (Early distribution from a SIMPLE IRA in first 2 years, no known exception) have been added to Field Positions 4 and 5 of the Payee "B" Record.
(4) In Part B, Sec. 8, for the Form 1099-R, the IRA/SEP Indicator in Field Position 44 of the Payee "B" Record has been expanded from IRA/SEP to IRA/SEP/SIMPLE. This field will be used exclusively for the Form 1099-R.
(5) In Part B, Sec. 8, for the Form 5498, IRA, SEP, and SIMPLE Indicators have been added in Field Positions 141-143.
(6) In Part B, Sec. 8(1), Form 1099-MSA and Form 5498-MSA have been added to the standard Record Layout Positions 322-420.
(7) In Part B, Sec. 8(5), the Record Layout Positions 322-420 of the Payee "B" Record are given for Form 1099-LTC to include the following fields:
(a) A Type of Payment indicator has been added to Field Position 322 of the Payee "B" Record with indicators of 1 (Per diem) and 2 (Reimbursed amount).
(b) The Social Security Number of the Insured has been added to Field Positions 323-331 of the Payee "B" Record.
(c) The Name of the Insured has been added to Field Positions 332-371 of the Payee "B" Record.
(d) The Address of the Insured has been added to Field Positions 372-411 of the Payee "B" Record.
(e) A Status of Illness Indicator has been added for Field Position 412 of the Payee "B" Record with indicators of 1 (Chronically ill) and 2 (Terminally ill).
(f) A Date of Doctor's Certification has been added in Field Positions 413-418 of the Payee "B" Record.
.03 Other Programming Changes
(a) In Part E, Sec. 3, in the record layout for the Magnetic/Electronic Specifications for Extensions of Time, the Document Indicators in Field Position 175 have been expanded to include Forms 1099-LTC, 1099-MSA, and 5498-MSA.
.04 Editorial Changes -- General
(a) A note has been added advising filers that date fields will be expanded in Tax Year 1998 in preparation for Year 2000.
(b) The title of the Form 5498 has been changed from individual Retirement Arrangement information to IRA, SEP, or SIMPLE Retirement Plan Information. The new title appears in the list of forms in Part A, Sec. 1.01 and throughout the publication.
(c) Three new forms have been added for TY97 processing: Form 1099-LTC, Long-Term Care and Accelerated Death Benefits, Form 1099-MSA, Distributions From Medical Savings Accounts, and Form 5498-MSA, Medical Savings Account Information. The new forms are included in the list of forms in Part A, Sec. 1.1 and throughout the publication. Filers are advised throughout the publication that the new forms cannot be filed under the Combined Federal/State Filing Program.
(d) A ZIP code change has occurred for the Martinsburg Computing Center. For all Martinsburg Computing Center addresses containing a post office box, the ZIP code has been changed from 25401 to 25402. The changes will appear in Part A, Sec. 3.01, Part C, Sec. 2.02(c) and (e), Part D, Sec, 5.04, and Part F Sec. 1. The ZIP code for the street address (Route 9 and Needy Road) of the Martinsburg Computing Center remains 25401.
(e) In Part A, Sec. 4.01, under Filing Requirements, filers are encouraged to file magnetically/electronically even though the number of returns being filed is less than the filing requirement of 250 or more.
(f) In Part A, Sec. 6.02, filers are advised that the most current version of the Vendor List (Pub. 1582) will not be printed. It will be available for reading or downloading from the Information Reporting Program-Bulletin Board System (IRP-BBS).
(g) In Part A, Sec. 7.10, information has been added to advise filers that multiple Transmitter Control Codes (TCCs) will only be issued to a payer with multiple TINs, one TCC per TIN.
(h) in Part A, Sec. 9.10, filers are advised to create a self-adhesive label with the required information to attach to each tape, cartridge, or diskette.
(i) In Part A, Sec, 9.11, filers are advised to attach a label that states "IRB, Box __ of __" to the outside of the shipping container.
(j) In Part A, Sec, 10, filers are advised that, since the due dates for Tax Year 1997 fall on weekends, information returns, recipient copies, and participant copies will be treated as timely if filed or furnished on the next business day after the particular due date.
(k) In Part A, Sec. 10.04, filers are advised that the timely mailing rule now applies to designated private delivery services.
(l) In Part A, Sec. 16, in Table 2, Dollar Criteria for State Reporting the dollar criteria for the state of Idaho has been corrected.
(m) In part A, Sec. 17, Definition of Terms, ITIN (Individual Taxpayer Identification Number) has been added. ITIN has also been added to Part B, Sec. 6, Type of TIN, Field Position 14 of the payee "B" Record.
(n) In Part B, Sec. 6, for the Form 1099-PATR, the titles Amount Codes 7 and 8 in Field Positions 23-31 of the Payer "A" Record have been changed. The title of Amount Code 7 has been changed from Energy investment credit to Investment credit. The title of Amount Code 8 has been changed from Jobs credit to Work opportunity credit.
(o) In Part B, Sec. 6, for Form 5498, Amount Code 2 has been changed from Rollover IRA contributions to IRA, SEP, or SIMPLE rollover contributions in Field Positions 23-31 of the Payer "A" Record.
(p) In Part B, Sec. 8, for Document Specific/Distribution Codes, Field Positions 4-5 of the Payee "B" Record, information has been added to clarify that this field is only required for 1099-MISC if Crop Insurance Proceeds are being reported.
.05 Editorial Changes -- Magnetic Media Specifications
(a) In Part B, Sec. 4.01(a)(7), filers are advised to place the end of transmission "F" Record at the end of the last cartridge only, for files with multiple cartridges.
(b) In Part B, Sec. 4.02(d), filers are advised that for 8mm tape cartridge, the SAVE OBJECT COMMAND is not acceptable.
(c) In Part B, Sec. 4.07, filers are now advised that 4mm cassettes are an acceptable form of media. Specifications are provided.
(d) In Part B, Sec. 4.08, filers are now advised that Quarter Inch Cartridges (QIC) are an acceptable form of media. Specifications are provided.
(e) In Part B, Sec. 05.01(b), for 5 1/4-inch diskettes created on a System 36 or AS400, specific save commands are provided as well as EBCDIC specifications.
(f) In Part B, Sec. 6, for Form 1099-G, Field Positions 23-31 of the Payer "A" Record, Amount Code 4, for Federal income tax withheld, has been expanded to include requested withholding on unemployment compensation, Commodity Credit Corporation loans, or certain crop disaster payments.
SECTION 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, MARTINSBURG COMPUTING CENTER
.01 All information returns filed magnetically or electronically are processed at IRS/MCC. Files containing information returns, requests for IRS magnetic medis and electronic filing information, undue hardship waivers, and requests for extension of time to file returns or to furnish the statements to recipients are to be sent to the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359
or if by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
Note: The ZIP cede has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses for Martinsburg, WV.
.02 Send a magnetically filed extension of time request to one of the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P.O. Box 879, MS-360
Kearneysville, WV 25430
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.03 Telephone inquiries for the Information Reporting Call Site may be made between 8:30 a.m. and 4:30 p.m. Eastern time. The telephone numbers for magnetic media inquiries or electronic submissions are:
304-263-8700 - Call Site - Part A, Sec. 3.9
304-264-7070 - IRP-BBS (Information Reporting Program Bulletin Board
System) - Part D
304-264-7080 - 4.8 Modems - Part C
304-264-7040 - 9.6 Modems - Part C
304-264-7045 - 14.4 Modems - Part C
304-267-3367 - TDD (Telecommunication Device for the Deaf)
304-264-5602 - Fax Machine
(These are not toll-free telephone numbers.)
TO OBTAIN FORMS, CALL:
1-800-TAX-FORM (1-800-829-3676)
.04 The 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G" have been included in the Publication 1220 for transmitter convenience. The Form 1096 is used only to transmit Copy A of paper Forms 1099, 1098, 5498, and W-2G. If filing paper returns, follow the mailing instructions on the Form 1096 and submit the paper returns to the appropriate IRS Service Center.
.05 Requests for paper Forms 1096, 1098, 1099, and W-2G, and publications related to magnetic media/electronic filing should be requested by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).
.06 Questions pertaining to magnetic media filing of Forms W-2 must he directed to the Social Security Administration (SSA). Filers can call 1-800-SSA-1213 to obtain the phone number of the SSA Magnetic Media Coordinator for their area.
.07 Payers should not contact IRS/MCC if they have received a penalty notice and need additional information, or are requesting an abatement of the penalty. A penalty notice contains an IRS representative's name and/or phone number for contact purposes; or, the payer may be instructed to respond in writing to the address provided. IRS/MCC does not issue penalty notices and does not have the authority to abate penalties. For penalty information, refer to the Penalty Section of the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G."
.08 A taxpayer or authorized representative may request a copy of a tax return, including Form W-2 filed with a return, by submitting Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.09 The IRS Centralized Call Site answers both magnetic media and tax law questions relating to the filing of information returns (Forms 1096, 1098, 1099, 5498, 8027, W-2G, W-3, 1042S, and W-4's). The IRS/MCC Call Site answers tax law and paper filing related questions about W-2s as well as handling inquiries dealing with backup withholding due to missing and incorrect taxpayer identification numbers. The Call Site is located at IRS/MCC and operates in conjunction with the Information Reporting Program. The Call Site provides service to the payer community (financial institutions, employers, and other transmitters of information returns). Recipients of information returns (payees) should continue to contact 1-800-829-1040 or other numbers specified in the tax return instructions with any questions on how to report information on their tax returns.
The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700 or Telecommunications Device for the Deaf (TDD) 304-267-3367. These are toll calls. Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high demand for assistance at the end of January and February, it is advisable to call as soon as possible to avoid these peak filing seasons.
SECTION 4. FILING REQUIREMENTS
.01 Under section 6011(e)(2)(A) of the Internal Revenue Code, any person, including a corporation, partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns magnetically/electronically. The 250* or more requirement applies separately for each type of return and also to each type of corrected return.
* Even though as many as 249 information returns may be submitted on paper to the Internal Revenue Service, IRS encourages filers to transmit information returns magnetically or electronically.
.02 All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN) [Social Security Number (SSN), or Employer Identification Number (EIN)]. For example, if a corporation with several branches or locations uses the same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly.
.03 Payers who are required to submit their information returns on magnetic media may choose to submit their documents by electronic filing. Payers who submit their information returns electronically are considered to have satisfied the magnetic media filing requirements.
.04 IRS/MCC has two methods by which payers may submit their files electronically. Bisynchronous (mainframe) electronic filing, which can be found in Part C of this publication, or Asynchronous (Information Reporting Program-Bulletin Board System), which is in Part D. An overview of some features provided on the IRP-BBS are as follows:
- Electronic filing of information returns to the IRS using dial-up modems
- Return notification of the acceptability of the data transmitted within 24 to 48 hours
- Electronic communication with IRS and SSA bulletin board systems
- Access to information reporting publications
- Access to shareware
- Access to forms relating to the Information Reporting Program
- News about the latest changes and updates that affect the Information Reporting Program at IRS
- Answers to messages and questions left on the bulletin board
- Available for public use and can be reached by dialing 304-264-7070
- IRP-BBS is accessible 24 hours a day, 7 days a week. Routine maintenance is performed daily, at approximately 7:00 a.m. Eastern Time.
- Questions, comments, or suggestions can be directed to the Systems Operator (SYSOP) through IRP-BBS.
.05 The following requirements apply separately to both originals and corrections filed magnetically/electronically:
1098 250 or more of any of these
1099-A forms require magnetic
1099-B media or electronic filing
1099-C with IRS. These are stand
1099-DIV alone documents and are not
1099-G to be aggregated for purposes
1099-INT of determining the 250
1090-LTC threshold. For example, if
1099-MISC you must file 100 Forms
1099-MSA 1099-B and 300 Forms
1099-OID 1099-INT, Forms 1099-B
1099-PATR need not be filed magneti-
1099-R cally or electronically since
1099-S they do not meet the thres-
5498 hold of 250. However,
5498-MSA Forms 1099-INT must be
W-2G filed magnetically or
electronically since they
meet the threshold of 250.
.06 The above requirements do not apply if the payer establishes hardship (see Part A, Sec. 5).
SECTION 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA
.01 If a payer is required to file on magnetic media but fails to do so (or fails to file electronically, in lieu of magnetic media filing) and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For penalty information, refer to the Penalty section of the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G.")
.02 If payers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC.
.03 Even though a payer may submit as many as 249 corrections on paper, IRS encourages magnetically or electronically submitted corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more magnetically or electronically. However, if a waiver for original documents is approved any corrections for the same type of returns will be covered under this waiver.
.04 Generally, only the payer may sign the Form 8505. A transmitter may sign if given power of attorney; however, a letter signed by the payer stating this fact must be attached to the Form 8508.
.05 A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers.
.06 All information requested on the Form 8508 must be provided to IRS for the request to be processed.
.07 The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Payers 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.
.08 Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original form.
.09 Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns.
.10 File Form 8508 for Forms W-2 with IRS/MCC, not SSA.
.11 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.
.12 If a waiver request is approved, the transmitter should keep the approval letter on file. The transmitter should not send a copy of the approved waiver to the service center where the paper returns are filed.
.13 An approved waiver from filing information returns on magnetic media does not provide exemption from all filing. The payer must timely file information returns on acceptable paper forms with the appropriate service center.
.14 Desert Storm Operation Joint Guard (OJG) [See Note] (Bosnia Region) Contributions -- If a payer is required to file a Form 5498 magnetically/electronically, the payer may request an automatic waiver to file Forms 5498 on paper for participants of Desert Storm or Operation Joint Guard. The payer should clearly mark Desert Storm or Operation Joint Guard on the waiver request form.
Note: Military personnel under Operation Joint Guard (OJG) will be treated the same as military personnel under Operation Joint Endeavor (OJE) for purposes of P.L. 104-117 and Rev. Proc. 96-34.
SECTION 6. VENDOR LIST
.01 IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. The Vendor List (Pub. 1582) contains the names of service bureaus that will produce files on the prescribed types of magnetic media or via electronic filing. It also contains the names of vendors who provide software packages for payers who wish to produce magnetic media or electronic files on their own computer systems. This list is compiled as a courtesy and in no way implies IRS/MCC approval or endorsement.
Note: If filers meet the filing requirements and engage a service bureau to prepare media on their behalf, the filers should be careful not to report duplicate data, which may cause penalty notices to be generated.
.02 The Vendor List may he updated in print every other year. The most recently printed copy will be available by contacting IRS/MCC at (304) 263-8700 or by way of a letter (see Part A, Sec. 3.) The most current Vendor List is available for downloading from the Information Reporting Program-Bulletin Board System (refer to Part D).
.03 A vendor, who offers a software package, has the ability to produce magnetic media for customers, or has the capability to electronically file information returns, and would like to be included on the list, must submit a written request to IRS/MCC. The request should be submitted by August 15 and must include:
(a) Company name
(b) Address (include city, state, and
ZIP code)
(c) Telephone number (include area
code)
(d) Contact person
(e) Type(s) of service provided (e.g.,
service bureau and/or software)
(f) Type(s) of media offered (e.g.,
magnetic tape or tape cartridge, 5
1/4- or 3 1/2-inch diskettes, or
electronic filing)
(g) Type of return
.04 The vendor list is updated annually. Therefore, any changes to information already on the vendor list must also be received by IRS/MCC no later than August 15 to be included on the most current vendor list.
SECTION 7. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 Transmitters are required to submit Form 4419, Application for Filing Information Returns Magnetically/Electronically, to request authorization to file information returns with IRS/MCC. A single Form 4419 should be filed no matter how many types of returns the transmitter will be submitting magnetically/electronically. For example, if a transmitter plans to file Forms 1099-1NT, one Form 4419 should be submitted. If, at a later date, another type of form (Form 1098, 1099 series, 5498, and W-2G) is to be filed, the transmitter does not need to submit a new Form 4419.
EXCEPTIONS
An additional Form 4419 is required for filing each of the following types of returns: Forms 1042-S, 8027, and W-4.
FORM TITLE EXPLANATION
1042-S Foreign person's U.S. Payments subject to withholding
Source Income Subject under Chapter 3 of the Code,
to Withholding including interest, dividends,
royalties, pensions, and
annuities, gambling winnings and
compensation for personal
services.
8027 Employer's Annual Receipts from food or beverage
Information Return operations, tips reported by
of Tip Income and employees, and allocated tips.
Allocated Tips
W-4 Employee's Withholding Forms received during the quarter
(See Allowance Certificate from employees still employed
Note) at the end of the quarter who
claim the following:
(a) More than 10 withholding
allowances or
(b) Exempt status and wages
normally would be more than
$200 a week.
Note: Employers are not required to send other Forms W-4 unless
notified to do so by the IRS.
.02 Magnetic tape, tape cartridge, diskette, and electronically filed returns may not be submitted to IRS/MCC until the application has been approved. Please read the instructions on the back of Form 4419 carefully. A Form 4419 is included in the Publication 1220 for the filer's use. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.03 Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval letter. The TCC must be coded in the Payer "A" Record. If a transmitter uses more than one TCC to file, each TCC must be reported on separate media or in separate transmissions if filing electronically.
.04 Annually, a magnetic media reporting package containing the current revenue procedure, forms, and instructions will be sent to the attention of the contact person indicated on Form 4419.
.05 If any of the information name, TIN or address) on the Form 4419 changes, please notify IRS/MCC in writing so that the IRS/MCC database can be updated. However, a change in the method by which information returns are being submitted is not information which needs o by updated (i.e., tape to disk, disk to BBS). The transmitter should include the TCC in all correspondence.
.06 Form 4419 can be submitted any time during the year; however, it must be submitted to IRS/MCC at least 30 days before the due date of the return(s) for current year processing. For documents to be filed electronically using IBM 3780 bisynchronous protocols, Form 4419 must be submitted at least 45 days prior to the due date of the returns (See Part C, Sec. 2). This will allow IRS/MCC the minimum amount of time necessary to process and respond to applications. In the event that computer equipment or software is not compatible with IRS/MCC, a waiver may be requested to file returns on paper documents.
.07 IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all payers. Include a list of all payers and TINs with the Form 4419.
.08 If a payer's files are prepared by a service bureau, the payer may not need to submit an application to obtain a TCC. Some service bureaus will produce files, code their own TCC on the media, and send it to IRS/MCC for the payer. Other service bureaus will prepare magnetic media and return the media to the payer for submission to IRS/MCC. These service bureaus may require the payer to obtain a TCC to be coded in the "A" Record. Payers should contact their service bureaus for further information.
.09 Once a transmitter is approved to file magnetically or electronically, it is not necessary to reapply each year unless:
(a) The payer has discontinued filing magnetically or electronically for three years; the payer's TCC may have been reassigned by IRS/MCC. Payers who are aware that the TCC assigned will no longer be used, are requested to notify IRS/MCC so these numbers may be reassigned.
(b) The payer's magnetic media files were transmitted in the past by a service bureau using the service bureau's TCC, but now the payer has computer equipment compatible with that of IRS/MCC and wishes to prepare his or her own fires. The payer must request a TCC by submitting Form 4419.
.10 One Form 4419 may be submitted regardless of how many types of media or methods are used to file the returns. Multiple TCC will only be issued to payers with multiple TINs. Only one TCC will be issued per TIN.
.11 In accordance with Regulations section 1.6041-7(b), payments by separate departments of a health care carrier to providers of medical and health care services may be reported on separate returns on magnetic media. In this case, the headquarters will be considered the transmitter, and the individual departments of the company filing reports will be considered payers. A single Form 4419 covering all departments filing on magnetic media should be submitted. One TCC may be used for all departments.
.12 Approval to file does not imply endorsement by IRS/MCC of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor.
SECTION 8. TEST FILES
.01 IRS/MCC does not require test files, except for filers wishing to participate in the Combined Federal/State Filing Program (see Part A, Sec. 16, for further information concerning the Combined Federal/State Filing Program).
.02 IRS/MCC encourages first-time magnetic media or electronic filers to submit a test. The test file must consist of a sample of each type of record:
(a) Payer "A" Record (must not be fictitious data)
(b) Multiple Payee "B" Records (at least 11 "B" Records per each "A" Record)
(c) End of Payer "C" Record
(d) State Totals "K" Record, if participating in the Combined Federal/State Filing Program
(e) End of Transmission "F" Record
(See Part B for record formats.)
.03 Use the Test Indicator "T" in Field Position 32 of the "A" Record to show that this is a test file.
.04 IRS/MCC will check the file to ensure it meets the specifications of this revenue procedure. For current filers, sending a test file will provide the opportunity to ensure that their software reflects any programming changes.
If unable to submit a magnetic or electronic test file, a hardcopy printout that shows a sample of each record type (A, B, C, and F) may be submitted. The hard copy print test is not acceptable for Combined Federal/State Filing approval.
.05 Tests should be sent to IRS/MCC between November 1 and December 31. The test file must be received at MCC by December 31 in order to be processed. Filers may begin submitting test tapes and diskettes after October 1; however, the data will not be processed until on or after November 1.
.06 For tests filed electronically, the transmitter must send the signed Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, the same day the transmission is made. For tests filed on magnetic tape, tape cartridge, 8mm, 4mm, and quarter inch cartridge, 5 1/4- and 3 1/2-inch diskette, the transmitter must include the signed Form 4804 in the same package with the corresponding magnetic media. Mark the "TEST" box in block 1 on the form. Also, mark "TEST" on the external media label.
If submitting a hard copy printout, mark the printout as "TEST" and include name, telephone number, and address of a person who can be contacted to discuss its acceptability.
.07 IRS/MCC will send a letter of acknowledgment to indicate the test results. Unacceptable magnetic media files, along with documentation identifying the errors, will be returned. Resubmission of test files must be received by IRS/MCC no later than December 21.
.08 Successfully processed media will not be returned to filers.
SECTION 9. FILING OF INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY AND RETENTION REQUIREMENTS
.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), or a computer-generated substitute, must accompany all magnetic media shipments. For electronic transmissions, the Form 4804 and Form 4802, if applicable, must be sent the same day as the electronic transmission. Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), is a continuation of Form 4804 and should only be used if the filer is reporting more than five types of returns and/or more than five payers. Form 4802 is not a stand-alone form; it can only accompany Form 4804.
.02 IRS/MCC allows for the use of computer-generated substitutes for Form 4804/4802 (See Note). The substitutes must contain all information requested on the original forms including the affidavit and signature line. Photocopies are acceptable but an original signature is required.
Note: When using computer-generated forms, be sure to mark very clearly which tax year is being reported. This will eliminate a phone communication from IRS/MCC to question the tax year.
.03 A transmitter may report for any combination of payers and/or documents in a submission. For example, if reporting Forms 1099-INT for Bank A. Forms 1099-DIV for Bank B, and Forms 1098 for Bank C, three separate tapes or diskettes need not be created. All three banks and all types of documents can be coded on one tape or diskette as long as each filing entity or type of return is separated by an "A" Record. Only one "F" record may be used at the end of a transmission. Multiple tapes or diskettes can be sent in one package. Filers must include Form 4804, 4802, or computer-generated substitute with their shipment.
.04 Multiple types of media may be submitted in a shipment. However, submit a separate Form 4804 for each type of media.
.05 Current and prior year data may be submitted in the same shipment; however, each tax year must be on separate media, and a separate Form 4804 must be prepared to clearly indicate each tax year.
.06 Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to IRS/MCC no earlier than January 1 of the year the return is due.
.07 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents must not be filed. This may result in erroneous penalty notices.
.08 Form 4804 may be signed by the payer or the transmitter, service bureau, paying agent, or disbursing agent (all hereafter referred to as agent), on behalf of the payer. An agent may sign the Form 4804 if the agent has the authority to sign the affidavit under an agency agreement (either oral, written, or implied) that is valid under state law and adds the caption "FOR: (name of payer)."
Note: Failure to sign the affidavit on Form 4804 may delay processing or could result in the files being returned unprocessed.
.09 Although an authorized agent may sign the affidavit, the payer is responsible for the accuracy of the Form 4804 and the returns filed. The payer will be liable for penalties for failure to comply with filing requirements.
.10 A self-adhesive external media label, created by the filer, must be affixed to each tape and diskette. (IRS no longer provides self-adhesive labels for this purpose.) For instructions on how to prepare an external media label, refer to Notice 210 in the forms section. If diskettes are used, and the operating system is not MS-DOS compatible, the operating-system and hardware information must be provided. Failure to provide this information may result in the diskettes being returned to the filer.
.11 On the outside of the shipping container, affix or attach a label which reads IRB Box__ of __ reflecting the number of containers in the shipment. (Filers can create a label with this information or cut out one of the labels on the special label page provided in this publication. IRS no longer provides self-adhesive labels for this purpose.) 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).
.12 When submitting files include the following:
(a) A signed Form 4804;
(b) Form 4802, if applicable;
(c) External media label (created by filer) affixed to magnetic media;
(d) IRB __ of __ outside label.
Note: See Parts C and D for Electronic Submission Requirements.
.13 If returns from different locations (using the same name and TIN) are submitted on the same file, IRS encourages the filer to consolidate each type of information return under one "A" Record. For example, all "B" Records for the same type of return should be together under one "A" Record and followed by the End of Payer "C" Record.
.14 IRS/MCC will not pay for or accept "Cash-on-Delivery" or "Charge to IRS" shipments of tax information that an individual or organization is legally required to submit.
.15 Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at least 3 years from the reporting due date, with the exception of Form 1099-C. A financial entity must retain a copy of Form 1099-C, Cancellation of Debt, or have the ability to reconstruct the data required to be included on the return, for at least 4 years from the date such return is required to be filed. Whenever backup withholding is imposed, a 4 year retention is required.
SECTION 10. DUE DATES
As a result of due dates for Tax Year 1997 falling on weekends in 1998, the information returns, the recipient copies, and the participant copies will be treated as timely if filed or furnished on or before the following dates:
Forms 1098, 1099 and W-2G
Recipient Copy - February 2, 1998
IRS Copy - March 2, 1998
Forms 5498 and 5498-MSA
Participant Copy - June 1, 1998
IRS Copy - June 1, 1998
(5498 Only for fair market value - February 2, 1998)
.01 The due dates for filing paper returns with IRS also apply to magnetic media or electronic filing. Filing of information returns is on a calendar year basis, except for Forms 5498 and 5498-MSA, which are used to report amounts contributed during or after the calendar year (but not later than April 15).
.02 If any due date falls on a Saturday, Sunday or legal holiday, the return or statement is considered timely if filed or furnished on the next business day (i.e., the next day that is not a Saturday Sunday, or legal holiday.
.03 Information returns filed magnetically/electronically for Forms 1098, 1099, and W-2G must be submitted to IRS/MCC post-marked on or before March 2, 1998.
.04 Returns postmarked by the United States Postal Service (USPS) on or before March 2, 1998, and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the "timely mailing as timely filing" rule. A similar rule applies to items delivered by private delivery services (PDSs) designated by the IRS. A PDS must be designated by the IRS before it will qualify for the timely mailing rule. Designation is determined with respect to each type of delivery service offered by a PDS (e.g., next day delivery, two day delivery, etc.). Notice 97-26, 1997-17 I.R.B. 6, provides the first list of designated PDSs and the types of delivery services designated. Designation is effective until the IRS issues a revised list of designated PDSs. Notice 97-26 also provides rules for determining the date that is treated as the postmark date. For items delivered by a non-designated PDS, the actual date of receipt by IRS/MCC will be used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in Notice 97-26, the actual date of receipt by IRS/MCC will be used as the filing date. The timely mailing rule also applies to furnishing statements to recipients and participants and filing Forms 5498 and 5498-MSA.
.05 Statements to recipients must be furnished on or before February 2, 1998 for TY97. Form 5498 statements to the participants must be furnished on or before February 2, 1998 for TY97 for the fair market value of the account and by June 1, 1998 for TY97 for contributions made to IRAs for the prior calendar year.
.06 Form 5498 and 5498-MSA filed magnetically or electronically must be filed with IRS/MCC on or before June 1, 1998 for TY97. Form 5498 and 5498-MSA are filed for contributions to be applied to 1997 that are made January 1, 1997, through April 15, 1998, and/or to report the fair market value of the IRA, SEP, or SIMPLE or the medical savings account.
.07 Use this revenue procedure to prepare information returns filed magnetically or electronically beginning January 1, 1998, and received by IRS/MCC no later than December 31, 1998.
SECTION 11. EXTENSIONS OF TIME
.01 An extension of time to file may be requested for Forms 1099, 1098, 5498, 5498-MSA, W-2G, W-2, and 1042-S.
.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC. This form may be used to request an extension of time to file information returns submitted on paper, magnetically or electronically.
.03 Requesting an extension of time for multiple payers (50 or less) may be done by submitting Form 8809 and attaching a list of the payer names end their TINs (EIN or SSN). The listing must be attached to ensure that the extension is recorded for all payers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included.
.04 Requests for an extension of time to file for more than 50 payers are required to be submitted magnetically or electronically (See Note). Requests for an extension of time for 10 to 50 payers are encouraged to be filed magnetically or electronically. (See Part E, Sec. 3, for the record format.) The request may be filed on tape, tape cartridge, 5 1/4- or 3 1/2-inch diskette, or electronically through the IRP-BBS or mainframe.
Note: If a filer does not have an IRS/MCC assigned Transmitter Control Code (TCC), a Form 4419, Application for Filing Information Returns Magnetically/Electronically, must be submitted to obtain a TCC. This number must be used to submit an extension request magnetically/electronically.
.05 A magnetically filed request for an extension of time should be sent using the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879, MS-360
Kearneysville, WV 25430
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.06 Requests for extensions of time for multiple payers will be responded to with one approval letter, accompanied by a list of payers covered under that approval.
.07 As soon as it is apparent that a 30-day extension of time to file is needed, Form 8809 may be submitted. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of time could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days.
.08 If an additional extension of time is needed, a second Form 8809 must be submitted before the end of the initial extension. Line 7 on the form should be checked to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event. When requesting a second 30-day extension of time, do not hold your files waiting for a response.
.09 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest due date. For example, if requesting an extension of time to file both Forms 1099-INT and 5498, submit Form 8809 postmarked on or before February 28. Complete more than one Form 8809 to avoid this problem.
.10 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper returns are filed.
.11 Request an extension for only one tax year.
.12 The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other document for the payer.
.13 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.
.14 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.15 Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W-2G, W-2, and 1042-S by submitting a letter to IRS/MCC containing the following information:
(a) Payer name
(b) TIN
(c) Address
(d) Type of return
(e) Specify that the extension request is to provide statements to recipients.
(f) Reason for delay
(g) Signature of payer or person duly authorized
Requests for an extension of time to furnish the statements for Forms 1098, 1099, 5498, W-2G, W-2, and 1042-S to recipients are not automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days from the due date to furnish the statements to the recipients. The request must be postmarked by the date on which the statements are due to the recipients.
SECTION 12. PROCESSING OF INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 All data received at IRS/MCC for processing will be given the same protection as individual income tax returns (Form 1040). IRS/MCC will process the data and determine if the records are formatted and coded according to this revenue procedure.
.02 If the data is formatted incorrectly, the file will be returned for replacement accompanied with a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the media, therefore, requiring a replacement. Open all packages immediately.
.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of the letter IRS/MCC included with the returned files. A penalty for failure to file correct information returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if the interact files are returned by IRS/MCC for replacement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received. (For penalty information, refer to the Penalty section of the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G.")
.04 Sample records identifying errors encountered will be provided with the returned media. It is the responsibility of the transmitter to check the entire file for similar errors.
.05 The following definitions have been provided to help distinguish between a correction and a replacement:
- A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by IRS/MCC, but contained erroneous information.
- A replacement is an information return file that IRS/MCC has returned to the transmitter due to errors encountered during processing. After necessary changes have been made, the file must be returned for processing along with the Media Tracking Slip (Form 9267) which was included in the shipment from IRS/MCC.
- Filers should never send anything to IRS/MCC marked "Replacement" unless IRS/MCC returned media to them.
.06 IRS/MCC will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/MCC received a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery.
.07 IRS/MCC will work with filers as much as possible to assist with processing problems.
Note: If the filer is contacted by IRS/MCC, a prompt response is important. IRS/MCC may have information that the filer needs to correct his or her file.
.08 IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers who submit data with missing TINs and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A Notices) or penalties for missing or incorrect TINs.
.09 Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.
SECTION 13. CORRECTED RETURNS
.01 The magnetic media filing requirements of 250 information returns applies separately to both original and corrected returns.
EXAMPLE
If a payer hits 100 Forms 1099-A to be corrected, they can be filed on paper since they fall under the 250 threshold. However, if the payer has 300 Forms 1099-B to be corrected, they must be filed magnetically or electronically since they meet the 250 threshold. If for some reason a payer cannot file the 300 corrections on magnetic media, to avoid penalties, a request for a waiver must be submitted before filing on paper. If a waiver is approved for original documents, any corrections for the same type of return will be covered under this waiver.
.02 Corrections should be filed as soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of $50 per return. Corrections filed prior to August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalty Section of the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G.") However, if payers discover errors after August 1, they may still be required to file corrections so that they will not be subject to a penalty for intentional disregard of the filing requirements. Failure to correct information returns may result in penalties for failure to provide correct information. All fields must be completed with the correct information, not just the data fields needing correction. Submit corrections only for the returns filed in error, not the entire file. Furnish corrected statements to recipients as soon as possible.
.03 There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error. If the original return was filed as an aggregate, the filers must consider this in filing corrected returns.
.04 Corrected returns may be included on the same medium as original returns; however, separate "A" Records are required. Corrected returns must be identified on the Form 4804 and the external media label by indicating "Correction."
Note: If filers discover that certain information returns were omitted on their original file, they must not code these documents as corrections. The file must be coded and submitted as originals.
.05 If a payer discovers errors for prior years that affect a large number of payees, in addition to sending IRS the corrected returns and notifying the payees, a letter containing the following information should be sent to IRS/MCC:
(a) Name and address of payer
(b) Type of error (please explain clearly)
(c) Tax year
(d) Payer TIN
(e) TCC
(f) Type of Return
(g) Number of Payees
This information will be forwarded to the appropriate office in an attempt to prevent erroneous notices from being sent to the payees. The correction must be submitted on an actual information return document or filed magnetically/electronically. Provide the correct tax year in Box 2 of the Form 4804 and on the external media label.
.06 Prior year data, original and corrected, must be filed according to the requirements of this revenue procedure. If submitting prior year corrections, use the record format for the current year and submit on separate media. However, use the actual year designation of the correction in Field Positions 2-3. If filing electronically, a separate transmission must be made for each tax year.
.07 In general, filers should submit corrections for returns to be filed within the last three calendar years (four years if the payment is a reportable payment subject to backup withholding under section 3406 of the Code).
.08 All paper returns, whether original or corrected, must be filed with the appropriate service center.
.09 Form 4804 and Form 4802 (if applicable), must he submitted with corrected files submitted magnetically or electronically.
.10 The "B" Record provides a 20-position field for the Payer's Account Number for the Payee. This number will help identify the appropriate incorrect return if more than one return is filed for a particular payee. Do not enter a TIN in this field. A payer's account number for the payee may be a checking account number, savings account number, serial number, or any other number assigned to the payee by the payer that will distinguish the specific account. This number should appear on the initial return and on the corrected return in order to identify and process the correction properly.
.11 The record sequence for filing corrections is the same as for original returns.
.12 Review the chart that follows. Errors normally fall under one of the two categories listed, Next to each type of error made is a list of instructions on how to file the corrected return.
Guidelines for Filing Corrected
Returns Magnetically/Electronically
_____________________________________________________________________
Error Made on the Original Return How To File the Corrected Return
_____________________________________________________________________
Two (2) separate transactions are required to make the following
corrections properly. Follow the directions for both Transactions 1
and 2. (See Note 1)
1. Original return was filed with Transaction 1: Identify
one or more of the following incorrect returns
errors: A. Prepare a new Form 4804/4802
(a) No payee TIN (SSN or EIN) that includes information
(b) Incorrect payee TIN related to this file.
(c) Incorrect payee name B. Mark "Correction" in Block 1
(d) Wrong type of return of Form 4804.
indicator C. Prepare a new file. Make a
separate "A" Record for each
type of return being
reported. The information in
the "A" Record will be
exactly the same as it was in
the original submission.
D. The Payee "B" Record must
contain exactly the same
information as submitted
previously, except, insert a
"G" in Field Position 7 of
the "B" Record, and for all
payment amounts, enter "0"
(zero).
E. Corrected returns submitted
to IRS/MCC using a "G" coded
"B" Record may be on the same
tape or diskette as those
returns submitted without the
"G" code; however, separate
"A" Records are required.
Transaction 2: Report the
correct information
A. Prepare a new file with the
correct information in all
records.
B. Make a separate "A" Record
for each type of return and
each payer being reported.
C. The "B" Record must show the
correct information as well
as a "C" in Field Position 7.
D. Corrected returns submitted
to IRS/MCC using a "C" coded
"B" Record may be on the same
tape or diskette as those
returns submitted without the
"C" code; however, separate
"A" Records are required.
E. Prepare a "C" Record.
F. Indicate "Correction" on the
external media label.
Note 1: Payers who can show that they have reasonable cause (defined in the regulations under sections 6721-6724 of the Internal Revenue Code) are not required to make corrections for returns filed with a missing or incorrect name and/or TIN. These payers should change their records in order to submit correct information in the future. Payers who cannot show reasonable cause are encouraged to make corrections for the current processing year by August 1 to reduce applicable penalties. Corrections tiled by August 1 will reduce the $50 per return penalty for filing returns with missing or incorrect information to $30 or $15 if filed within 30 days. (For penalty information, refer to the Penalty section of the 1997 "instructions for Forms 1099, 1098, 5498. and W-2G.") Corrections filed after August 1 will not reduce the penalty but will allow IRS to update the payee's records. The regulations for IRC sections 6721-6724 are available in Publication 1586, Reasonable Cause Regulations and Requirements as They Apply to Missing and Incorrect TINs. The pubLication may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
One transaction is required to make the following corrections properly (See Note 2).
2. Original return was filed with A. Prepare a new Form 4804/4802
one or more of the following that includes information
errors: relating to this new file.
(a) Incorrect payment amount B. Mark "Correction" in Block 1
codes in the "A" Record of Form 4804.
(b) Incorrect payment amounts C. Prepare a new file. Make
in the "B" Record for each separate "A" Records
(c) Incorrect code in the for each type of return being
document specific/ reported, Information in the
distribution code field "A" Record may be the same as
in the "B" Record it was in the original
(d) Incorrect payee address submission.
(e) Direct sales indicator D. The "B" Record must show the
correct information as well
as a "G" in Field Position 7.
E. Corrected returns submitted
to IRS/MCC using a "G" coded
"B" Record may be on the same
tape or diskette as those
returns submitted without the
"G" code; however, separate
"A" Records are required.
F. Prepare a "C" Record.
G. Mark "Correction" on the
external media label.
Note 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, then two transactions will be required. If a filer is reporting "G" coded, "C" coded, and/or "Non-coded" (original) returns on the same media, they must be reported under separate "A" Records.
SECTION 14. TAXPAYER IDENTIFICATION NUMBER (TIN)
.01 Section 6109 of the Internal Revenue Code requires a person to furnish his/her TIN to the person obligated to file the information return.
.02 The payee's TIN and name combination is used to associate information returns reported to IRS/MCC with corresponding information on tax returns. It is imperative that correct Social Security Number (SSN), Individual Tax Identification Number (ITIN), and Employee Identification Number (EIN), for payees be provided to IRS/MCC. Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.
.03 The payer and payee names with associated TiNs should be consistent with the names and TINs used on other tax returns.
Also, the name and TIN provided must belong to the owner of the account. If the account is recorded in more than one name, furnish the name and TIN of one of the owners of the account. The TIN provided must be associated with the name of the payee provided in the first name line of the "B" Record. For individuals, the payee TIN is generally the payee's Social Security Number. For other entities, the payee TIN is the payee's Employer identification Number. For sole proprietors, the payee TIN may be either an SSN or EIN but the sole proprietor's name (not the business name) meat be used on the first name line.
.04 Failure to provided the correct name and corresponding TIN could result in a penalty and/or backup withholding notice (sometimes referred to as a "B" notice). (For penalty information, refer to the Penalty section of the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G." For "B" Notice information, refer to the Backup Withholding section of the same publication.)
.05 The following charts will help payers determine the TIN to be furnished to IRS/MCC for those persons for whom they are reporting information (payees).
Chart 1. Guidelines for Social Security Numbers
In the Taxpayer Identification In the First Payee
Name Line of the
Number Field of the Payee "B" Payee "B" Record,
Record enter the SSN of- enter the name
For this type of-
of account
1. Individual The individual The individual
2. Joint account (Two The actual owner of the The individual
or more individuals, account or, if combined whose SSN is
including husband funds, the first individual entered
and wife on the account
3. Custodian account The minor The minor
of a minor (Uniform
Gifts, or Transfers,
to Minors Act)
4. The usual revocable The grantor-trustee The grantor-
savings trust account trustee
(grantor is also trustee)
5. A so-called trust The actual owner The actual owner
account that is not
a legal or valid trust
under stated law
6. Sole proprietorship The owner (An SSN or EIN The owner, not the
business name
(the filer may
enter the
business name on
the second name
line.
Chart 2. Guidelines for Employer Identification Numbers
In the Taxpayer Identification
Field of the Payee "B" Record In the First
For this type of enter the EIN of- Payee "B" Record,
account enter the name
of-
1. A valid trust, The legal entity The legal trust,
estate, or pension estate, or
trust pension trust
2. Corporate The corporation The corporation
3. Association, club, The organization The organization
religious, charitable,
educational, or other
tax-exempt organization
4. Partnership account The partnership The partnership
held in the name of
the business
5. A broker or The broker or nominee/ The broker or
registered nominee/ middle man nominee/middleman
middleman
6. Account with The public entity The public entity
Department of
Agriculture in the
name of a public entity
(such as a state or local
government, school
district, or prison),
that receives agriculture
program payments
7. Sole proprietorship The business (An EIN The owner, not the
or SSN business name (the
filer may enter
the business name
on the second name
line).
Do not furnish the identification number of the personal representative or trustee unless the name of the representative or trustee is used in the account title.
SECTION 15. EFFECT ON PAPER RETURNS AND STATEMENTS TO RECIPIENTS
.01 Magnetic/electronic reporting of information returns eliminates the need to submit paper documents to the IRS. CAUTION! Do not send Copy A of the paper forms to IRS/MCC in addition to magnetic media and electronic filing. This will result in duplicate filing; therefore, erroneous notices could he generated.
.02 Payers are responsible for providing statements to the recipients as outlined in the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G." Refer to these instructions for filing information returns on paper with the IRS and furnishing statements to recipients.
.03 Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifications and guidelines in Publication 1179. "Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099 series, 5498, and W-2G."
SECTION 16. COMBINED FEDERAL/STATE FILING PROGRAM
.01 The Combined Federal/State Filing Program was established to simplify information returns filing for the taxpayer. IRS/MCC will forward this information to participating states free of charge for approved filers. Separate reporting to those states is not necessary. The following information returns may not be filed under this program:
Form 1098 - Mortgage Interest Statement
Form 1099-A-Acquisition or Abandonment of Secured Property
Form 1099-B - Proceeds From Broker and Barter Exchange Transactions
Form 1099-C - Cancellation of Debt
Form 1099-LTC - Long-Term Care and Accelerated Death Benefits
Form 1099-MSA - Distributions From Medical Savings Accounts
Form 1099-S - Proceeds From Real Estate Transactions
Form 5498-MSA - Medical Savings Account Information
Form W-2G - Certain Gambling Winnings
.02 To request approval to participate, a magnetic media or electronic test file coded for this program must be submitted to IRS/MCC between November 1 and December 31. Hard copy print tests are not acceptable for Combined Federal/State Filing approval.
.03 Attach a letter to the Form 4804 submitted with the test file to indicate a desire to participate in this program.
.04 A test file is only required for the first year. Each record, both in the test and the actual data file, must conform to this revenue procedure.
.05 If the test file is acceptable, IRS/MCC will send the filer an approval letter, and a Form 6847, Consent for Internal Revenue Service to Release Tax Information, which the payer must complete, sign, and return to IRS/MCC before any tax information can be released to the state, Filers must write their TCC on Form 6847.
.06 If the test file is not acceptable, IRS/MCC will return the media with a letter indicating the problems. The replacement test rite must be returned to IRS/MCC on or before December 31.
.07 A separate Form 6847 is required for each payer. A transmitter may not combine payers on one Form 6847 even if acting as Attorney-in-Fact for several payers. Form 6847 may be computer-generated as long as it includes all information that is on the original form or it may be photocopied. If the Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must clearly indicate that the Attorney-in-Fact is empowered to authorize release of the information.
.08 Only code the records for participating states and for those payers who have submitted Form 6847.
.09 Some participating states require separate notification that the payer is filing in this manner. Since IRS/MCC acts as a forwarding agent only, it is the payer's responsibility to contact the appropriate states for further information.
.10 All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states.
.11 Participating states and corresponding valid state codes are listed in Table 1 of this section. The appropriate state code must be entered for those documents that meet the state filing requirements; do not use state abbreviations.
.12 To simplify filing, some of the participating states have provided their information return reporting requirements (see Table 2). State filing regulations are subject to change by the state. It is the payer's responsibility to contact the participating states to verify the criteria provided in this table.
.13 Upon submission of the actual files, the transmitter must be sure of the following:
(a) All records should be coded exactly as required by this revenue procedure.
(b) The "C" Record must be followed by a State Totals "K" Record for each state being reported.
(c) Payment amount totals and the valid participating state code must be included in the State Totals "K" Record.
(d) The last "K" Record must be followed by an "A" Record or an End of Transmission "P" Record (if this is the last record of the entire file).
Table 1. Participating States And Their Codes
_____________________________________________________________________
State Code State Code State Code
_____________________________________________________________________
Alabama 01 Iowa 19 North Carolina 37
Arizona 04 Kansas 20 North Dakota 38
Arkansas 05 Maine 23 Oregon 41
California 06 Massachusetts 25 South Carolina 45
Delaware 10 Minnesota 27 Tennessee 47
District of 11 Mississippi 28 Wisconsin 55
Columbia
Georgia 13 Missouri 29
Hawaii 15 Montana 30
Idaho 16 New Jersey 34
Indiana 18 New Mexico 35
_____________________________________________________________________
Table 2. Dollar Criteria For State Reporting
_____________________________________________________________________
1099- 1099- 1099- 1099- 1099-
STATE DIV 1099-G INT MISC OID PATR 1099-R 5498
_____________________________________________________________________
Alabama $1500 $ NR $1500 $1500 $1500 $1500 $1500 NR
Arkansas 100 2500 100 2500 2500 2500 2500
District of
Columbia 600 600 600 600 600 600 600 NR
Hawaii 10 a 10 600 10 10 600 a
Idaho NR NR NR 600 NR NR a a
Iowa 100 1000 1000 1000 1000 1000 1000 NR
Minnesota 10 10 10 600 10 10 600 NR
Mississippi 600 600 600 600 600 600 600 NR
Missouri NR NR NR 1200 NR NR NR NR
Montana 10 10 10 600 10 10 600 a
New Jersey 1000 1000 1000 1000 1000 1000 1000 NR
North 100 100 100 600 100 100 100 a
Carolina
Tennessee 25 NR 25 NR NR NR NR NR
Wisconsin NR NR NR 600 NR NR 600 NR
_____________________________________________________________________
The preceding list is for information purposes only. The state filing requirements are subject to change by the states. For complete information on state filing requirements, contact the appropriate state tax agencies.
Filing requirements for states in TABLE 1 not shown in TABLE 2 are the same its the federal requirement,
NR = No filing requirement.
NOTES
a. All amounts are to be reported.
b. Amounts are for aggregates of several types of income from the same payer.
c. Missouri would prefer those returns filed with respect to non-Missouri residents to be sent directly to their state agency.
SECTION 17. DEFINITION OF TERMS
Element Description
Asynchronous Protocols This type of data transmission is
most often used by micro
-computers, PCs and some
minicomputers. Asynchronous
transmissions transfer data at
arbitrary time intervals using
the start-stop method. Each
character transmitted has its own
start bit and stop bit.
Denotes a blank position. Enter
blank(s) when this symbol is
used (do not enter the letter
"b"). This appears in numerous
areas throughout the record
descriptions.
Bisynchronous Protocols For purposes of this publication,
these are electronic
transmissions made using IBM 3780
protocols. These transmissions
must be in EBCDIC character code
and use the Bell 208B (4800bps),
AT&T 2296A (9600bps) or Hayes
OPTIMA 288 V. FC Smartmodem
(14400bps) modems. Standard IBM
3780 space compression is
acceptable.
Correction A correction is an information
return submitted by the
transmitter to correct an
information return that was
previously submitted to and
processed by IRS/MCC, but
contained erroneous information.
Note: A correction should not be confused with a replacement. Only media returned to the filer by IRS/MCC due to processing problems should be marked replacement.
CUSIP Number A number developed by the
Committee on Uniform Security
Identification Procedures to
serve as a common denominator
in communications among users for
security transactions and
security information.
Employer Identification Number A nine-digit number assigned by
(EIN) IRS for federal tax reporting
purposes.
Electronic Filing Submission of information returns
using switched telecommunications
network circuits. These
transmissions use modems, dial
-up phone lines, and asynchronous
or bisynchronous protocols. See
Parts A, C, and D of this
publication for specific
information on electronic filing.
File For purposes of this revenue
procedure, a file consists of all
records submitted by a payer or
transmitter, either magnetically
or electronically.
Filer Person (may be payer and/or
transmitter) submitting
information returns to IRS.
Filing Year The actual year in which the
information returns are being
submitted to IRS.
Golden Parachute Payment A payment made by a corporation
to a certain officer,
shareholder, or highly
compensated individual when a
change in the ownership or
control of the corporation occurs
or when a change in the ownership
of a substantial part of the
corporate assets occurs.
Incorrect Taxpayer Identification A TIN may be incorrect for
Number (Incorrect TIN) several reasons:
(a) The payee provided a wrong
number or name (e.g., the
payee is listed as the only owner
of an account but provided
someone else's TIN).
(b) A processing error (e.g., the
number or name was typed
incorrectly).
(c) The payee's status changed
(e.g., a payee name change
was not conveyed to the IRS or
SSA so that they could enter the
change in their records).
Individual Taxpayer Identification A nine digit number issued by IRS
Number (ITIN) to individuals who are required
to have a U.S. taxpayer
identification number but are
not eligible to obtain a Social
Security Number (SSN).
Information Return The vehicle for submitting
required information about
another person to IRS.
Information returns are filed by
financial institutions and by
others who make certain types of
payments as part of their trade
or business. The information
required to be reported on an
information return includes
interest, dividends, pensions,
nonemployee compensation for
personal services, stock
transactions, sales of real
estate, mortgage interest, and
other types of information. For
this revenue procedure, an
information return is a Form
1098, 1099-A, 1099-B, 1099-C,
1099-DIV, 1099-G, 1099-INT,
1099-LTC, 1099-MISC, 1009-MSA,
1099-OLD, 1099-PATR, 1099-R,
1099-S, 5498, 5498-MSA or W-2G,
Magnetic Media For this revenue procedure, the
term "magnetic media" refers
to 1/2-inch magnetic tape; IBM
3480/3490/3490E or AS400
compatible tape cartridge; 8mm,
4mm, and QIC (Quarter Inch
Cartridges) cartridges or 5 1/4
- and 3 1/2-inch diskette.
Media Tracking Slip Form 9267 accompanies media that
IRS/MCC has returned to the filer
for replacement due to incorrect
format or errors encountered when
trying to process the media. This
must be returned with the
replacement file
Missing Taxpayer Identification The payee TIN on an information
Number (Missing TIN) return is "missing" if:
(a) there is no entry in the TIN
field,
(b) includes one or more alpha
characters (a character or
symbol other than an Arabic
number) as one of the nine
digits, OR
(c) payee TIN has less than nine
digits
PS 58 Costs The current cost of life
insurance under a qualified plan
taxable under section 72(m) and
section 1.72-16(b) of the Income
Tax Regulations. (See Part B,
Sec. 7, Payee "B" Record,
Document Specific/Distribution
Code, Category of Distribution,
Code 9.)
Payee Person or organization receiving
payments from the payer, or for
whom an information return must
be filed. The payee includes a
borrower (Form 1099-A), a debtor
(1099-C), a policyholder or
insured (Form 1099-LTC), an IRA,
SEP, or SIM-PLE plan participant
(Form $498), and a gambling
winner (Form W-2G). For Form
1098, the payee is the individual
paying the interest. For Form
1099-S, the payee is the seller
or other transferor.
Payer Includes the person making
payments, a recipient of mortgage
interest payments, a broker, a
person reporting a real estate
transaction, a barter exchange, a
creditor, a trustee, or issuer of
an IRA, SEP, or SlMPLE, or a
lender who acquires an interest
in secured property or who has
reason to know that the property
has been abandoned. The payer
will be held responsible for the
completeness, accuracy, and
timely submission of magnetic
media files.
Replacement A replacement is an information
return file that IRS/MCC has
returned to the transmitter due
to errors encountered during
processing.
Note: Filers should never submit media to IRS/MCC marked "Replacement" unless IRS/MCC returned media to the filers. When sending "Replacement" media, be sure to include the Media Tracking Slip (Form 9267) which will accompany media returned by IRS/MCC. Media that has been incorrectly marked as Replacement may result in duplicate filing.
Service Bureau Person or organization with whom
the payer has a contract to
prepare and/or submit information
return files to IRS/MCC. A parent
company submitting data for a
subsidiary is not considered a
service bureau.
Social Security Number A nine-digit number assigned by
SSA to (SSN) an individual for
wage and tax reporting purposes.
Special Character Any character that is not a
numeral, an alpha, or a blank.
SSA Social Security Administration.
Taxpayer Identification Refers to either an Employer
Number (TIN) Identification Number (EIN),
Social Security Number (SSN) or
Individual Taxpayer
Identification Number (ITIN).
Tax year Generally, the year in which
payments were made by a payer to
a payee.
Transfer Agent The transfer agent, or paying
agent, is the entity who has been
contracted or authorized by the
payer to perform the services of
paying and reporting backup
withholding (Form 945).
Transmitter Refers to the person or
organization submitting file(s)
magnetically/electronically. The
transmitter may be the payer or
agent of the payer.
Transmitter Control A five, character alpha/numeric
Code (TCC) number assigned by IRS/MCC to the
transmitter prior to actual
filling magnetically or
electronically. This number is
inserted in the "A" Record of the
files and must be present before
the file can be processed. An
application Form 4419 must be
filed with IRS/MCC to receive
this number.
Vendor Vendors include service bureaus
that produce information return
files on the prescribed types of
magnetic media or via electronic
filing for payers. Vendors also
include companies who provide
software for payers who wish to
produce their own media or
electronic files.
SECTION 18. STATE ABBREVIATIONS
.01 The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. This table provides state and territory abbreviations only, and does not represent those sates participating in the Combined Federal/State Filing Program.
_____________________________________________________________________
State Code State Code State Code
_____________________________________________________________________
Alabama AL Kentucky KY Ohio OH
Alaska AK Louisiana LA Oklahoma OK
American Samoa AS Maine ME Oregon OR
Arizona AZ Marshall Islands MH Pennsylvania PA
Arkansas AR Maryland MD Puerto Rico PR
California CA Massachusetts MA Rhode Island RI
Colorado CO Michigan MI South Carolina SC
Connecticut CT Minnesota MN South Dakota SD
Delaware DE Mississippi MS Tennessee TN
District of DC Missouri MO Texas TX
Columbia
Federated States Montana MT Utah UT
of Micronesia FM Nebraska NE Vermont VT
Florida FL Nevada NV Virginia VA
Georgia GA New Hampshire NH Virgin Islands * VI
Guam GU New Jersey NJ Washington WA
Hawaii HI New Mexico NM West Virginia WV
Idaho ID New York NY Wisconsin WI
Illinois IL North Carolina NC Wyoming WY
Indiana IN North Dakota ND
Iowa IA Northern MP
Mariana Islands
Kansas KS
_____________________________________________________________________
* This abbreviation applies to the United States Virgin Islands
.02 Filers must adhere to the city, state, and ZIP code format for U.S. addresses in the "B" Record. This also includes American Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
.03 For foreign country addresses, filers may use a 40 position free format which should include city, province or state, postal code, and name of country in this order. This is allowable only if a "1" (one) appears in the Foreign Country Indicator, Field Position 161 of the "B" Record,
.04 When reporting APO/FPO addresses use the following format:
EXAMPLE:
Payee Name PVT Willard J. Doe
Mailing Address Company F, PSC Box 100
167 Infantry REGT
Payee City APO (or FPO)
Payee State AE, AA, or AP *
Payee ZIP Code 098010100
* AE is the designation for ZIPs beginning with 090-098, AA
for ZIP 340, and AP for ZIPs 962-966.
SECTION 19. MAJOR PROBLEMS ENCOUNTERED
IRS/MCC encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This may eliminate the need for IRS/MCC to return files for replacement. This may be important for those payers who have either had their files prepared by a service bureau or who have purchased preprogrammed software packages (see Note). If filer purchased a software package for a previous tax year, it may no longer be valid for reporting current tax year information returns.
Note: If filers meet the filing requirements and engage a service bureau to prepare media on their behalf, the filers should be careful not to report duplicate data which may generate penalty notices.
The Major Problems Encountered lists some of the most frequently encountered problems with magnetic/electronic files submitted to IRS/MCC. These problems may result in media being returned for replacement.
1. Discrepancy between IRS/MCC totals and totals in Payer "C" Records
The "C" Record is a summary record for a type of return for a given payer as reported in the "B" Records. IRS balances the total number of payees and payment amounts and compares them with totals in the "C" Records. Filers should verify the accuracy of the records because imbalances may necessitate return of files for replacement.
2. The Payment Amount Fields in the "B" Record do not correspond to the Amount Codes in the "A" Record
If codes 2, 4, and 7 appear in the Amount Codes Field of the "A" Record, then the "B" Record must show payment amounts in only Fields 2, 4, and 7, right-justified and unused positions must be zero (0) filled.
EXAMPLE: "A" RECORD 247bbbbbb - ('b' denotes a blank)
(Pos. 23-31)
"B" RECORD (0000867599 - (Payment Amount 2)
(Pos. 61-70)
0000709097 - (Payment Amount 4)
(Pos. 81-90)
0000044985 - (Payment Amount 7)
(Pos. 111-120)
3. Blanks or invalid characters appear in Payment Amount Fields in the "B" Record
Money amounts must be right-justified and zero (0) filled. Do not use blanks.
4. Incorrect TIN in Payer "A" Record
The Payer's TIN reported in positions 7-15 of the "A" Record must be nine numeric characters (no alphas or special characters) in order for IRS/MCC to process the media. The TIN provided in the "A" Record must correspond with the name provided in the first payer name line.
5. Bad Format
IRS/MCC receives data in prior year format. Be sure to use the current revenue procedure (Publication 1220) for formatting data.
6. Incorrect tax year in the Payer "A" Record and the Payee "B" Record
The tax year in both the payer and payee records should reflect the year of the information that is being reported. Filers need to check their files to ensure that this information is correct.
7. Incorrect reporting of Form W-2 information to IRS
Form W-2 information is submitted to SSA, and not to IRS/MCC. SSA has its own magnetic media reporting program and specifications for wage information, and the media containing Forms W-2 is submitted to SSA. Any media received at IRS/MCC that contains Form W-2 information will be returned to the filer. The local SSA office should be contacted for information concerning filing Forms W-2 on magnetic media.
8. Excessive withholding credits
Generally, for most information returns, other than Forms 1099-G, 1099-MISC, 1099-R, and W-2G, Federal withholding amounts should not exceed 31 percent of the income reported. Validate the total reported in the withholding field against the total income reported.
9. Incorrect format for TINs in the Payee "B" Record
A check of "B" Records should be made to ensure the Taxpayer identification Numbers (TINs) are formatted correctly. There should be nine numerics, no alphas, hyphens, commas, or blanks. Incorrect formatting of TINs may result in a penalty.
IRS/MCC contacts filers who have submitted payee data with missing TINs in an attempt to prevent erroneous notices. Payers/transmitters who submit data with missing TINs, and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 and CP2100A Notices) or penalties for missing or incorrect TINs. For penalty information, refer to the Penalty section of the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G."
10. Distribution Codes for Form 1099-R reported incorrectly
Distribution codes for Form 1099-R are being reported incorrectly or not being reported. See valid distribution codes for Form 1099-R in the Payee "B" Record layout.
11. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on the Form 4804 (Box 9) are used in the verification process of information returns. The figure in this box should be the total number of Payee "B" Records contained on the media submitted with the Form 4804. The figures on the Form 4804 are compared against the total number of Payee "B" Records processed on the media. Imbalances may necessitate the return of the files for replacement.
12. Invalid Use of IRA/SEP/SIMPLE Indicator
The IRA, SEP, or SIMPLE Indicator for Form 1099-R should be used only for the reporting of a distribution from an IRA, SEP or SIMPLE. The total amount distributed from an IRA, SEP or SIMPLE should be reported in Payment Amount Field 2 (IRA/SEP/SIMPLE Distribution).
PART B. MAGNETIC MEDIA SPECIFICATIONS
SECTION 1. GENERAL
.01 The specifications contained in this part of the revenue procedure define the required format and contents of the records to be included in the magnetic media file.
.02 A provision is made in the "B" Records for Special Data Entries. These entries are optional. If the field is not utilized, enter blanks to maintain a fixed record length of 420 positions. The field is intended to serve one or both of these purposes:
(a) Contain information required by state or local governments. Filers who wish to use this option for satisfying state or local reporting requirements should contact the state or local department of revenue for filing instructions. (Also refer to Part A, Sec. 16.)
(b) Contain information for the filer's own personal use and used at the discretion of the filer to include information related to each individual return. IRS/MCC will not use the information supplied in this field. The length of this field will vary depending on the type of return.
.03 Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifications, it could be returned to the transmitter for replacement. Filers are encouraged to submit a test prior to submitting the actual file. Contact IRS/MCC for further information at 304-263-8700.
SECTION 2. TAPE SPECIFICATIONS
.01 IRS/MCC can process most magnetic tape files if the following specifications are followed:
(a) 9 track EBCDIC (Extended Binary Coded Decimal Interchange Code) with:
(1) Odd parity.
(2) A density of 1600 or 6250 CPI.
(3) If transmitters use UNISYS Series 1100, they must submit an interchange tape.
(b) 9 track ASCII (American Standard Coded Information Interchange) with:
(1) Odd parity.
(2) A density of 1600 or 6250 CPI.
Transmitters should be consistent in the use of recording codes and density on files.
.02 All compatible tape files must have the following characteristics: Type of tape - 1/2-inch (12.7 mm) wide, computer-grade magnetic tape on reels of up to 2,400 feet (731.52 m) within the following specifications:
(a) Tape thickness: 1.0 or 1.5 mils and
(b) Reel diameter: 10 1/2-inch (26.67 cm), 8 1/2-inch (21.59 cm), 7-inch (17.78 cm), or 6-inch.
.03 The tape records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,760 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter (see item b above). The block length must be evenly divisible by 420.
(d) Records may not span blocks.
.04 Labeled or unlabeled tapes may be submitted.
.05 For the purposes of this revenue procedure the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421),
(c) May follow the header label and precede and/or follow the trailer label.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
SECTION 3. TAPE CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a) Must be IBM 3480, 3490, 3490E, or AS400 compatible.
(b) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by 1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3) Cartridges must be 18-track or 36-track parallel (See Note).
(4) Cartridges will contain 37,871 CPI or 75,742 CPI (characters per inch).
(5) Mode will be full function.
(6) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,760 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must he filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter (see item b above). The block length must be evenly divisible by 420.
(d) Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 36-track or 18-track.
SECTION 4. 8MM, 4MM, AND QUARTER INCH CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a) Must meet American National Standard Institute (ANSI) standards and have the following characteristics:
(1) Created from an AS400 operating systems only.
(2) 8mm (.315-inch) tape cartridges will be 2 1/2-inch by 3 3/4-inch.
(3) The 8mm tape cartridges must meet the following specifications:
Tracks Density Capacity
1 20 (43245 BPI) 2.3 Gb
1 21 (45434 BPI) 5 Gb
(4) Mode will be full function.
(5) Compressed data is not acceptable.
(6) Either EBCDIC (Extended Binary Coded Decimal interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge.
(7) A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per file or per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will indicate the sequence of the cartridge within the file e.g. 1 of 3, 2 of 3, and 3 of 3 and would appear in the header label IRSTAX.001, IRSTAX.002, and IRSTAX.003 on each cartridge of the file e.g. The end of transmission "F" Record should be placed on the last cartridge only for files containing multiple cartridges.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,760 tape positions.
(b) If the use of blocked records would result in short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the except on of the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 420.
(d) Various COPY commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e) Extraneous data following the "F" record will result in media being returned for replacement.
(f) Records may not span blocks.
(g) No more than 250,000 documents per cartridge and per file.
.03 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a suggested filename.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
.05 If extraneous data follows the End of Transmission "F" Record, the file must be returned for replacement. Therefore, IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data when submitting information returns.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4mm cassettes will be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT Data Storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4Gb.
(e) The general specifications for 8mm cartridges will also apply to the 4mm cartridges
.08 Various Quarter Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(a) QIC cartridges will be 4 by 6.
(b) QIC cartridges must meet the following specifications:
Size Tracks Density Capacity
QIC-11 4/5 4 (8000 BPI) 22Mb or 30Mb
QIC-24 8/9 5 (8000 BPI) 45Mb or 60Mb
QIC-120 15 15 (10000 BPI) 120Mb or 200Mb
QIC-150 18 16 (10000 BPI) 150Mb or 250Mb
QIC-320 26 17 (16000 BPI) 320Mb
QIC-525 26 17 (16000 BPI) 525Mb
QIC-1000 30 21 (36000 BPI) 1Gb
QIC-1350 30 13 (51667 BPI) 1.3Gb
QIC-2Gb 42 34 (40640 BPI) 2Gb
(c) The general specifications that apply to gram cartridges will also apply to QIC cartridges.
SECTION 5. 5 1/4-INCH AND 3 1/2-INCH 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) IRS recommends data be recorded in standard ASCII code. However, if data is recorded using EBCDIC, a 5 1/4-inch diskettes must be used and a 1024 byte sector would be valid for System 36 or AS400. The following command to format the diskette into a 1024 byte sector is: INIT IRSTAX,,FORMAT2
The save commands are as follows:
(1) The save command for System 36 is SAVE.
(2) The save command for AS400 is SAF36F.
(c) Records must be a fixed length of 420 bytes per record.
(d) Delimiter character commas (,) must not be used.
(e) Positions 419 and 420 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
(f) Filename of IRSTAX must be used Do not enter any other data in this field. If a file will consist of more than one diskette, the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the diskettes within the file. For example, the first diskette will be named IRSTAX.001, the second diskette will be IRSTAX.002, etc.
(g) A diskette file may consist of multiple diskettes as long as the file naming conventions are followed.
(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/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files (See Note). If extraneous data follows the End of Transmission "F" Record, the flit must be returned for replacement.
.03 IRS/MCC prefers that 5 1/4- and 3 1/2-inch diskettes be created using MS-DOS; however, diskettes created using other operating systems may be acceptable. IRS/MCC has equipment that can convert diskettes created under most operating systems to the appropriate MS-DOS format. IRS/MCC strongly recommends that transmitters submit a test file for 5 1/4- and 3 1/2-inch diskettes, especially if their data was not created using MS-DOS.
Note: 3 1/2-inch diskettes created on a System 36 or AS400 are not acceptable.
.04 Transmitters are encouraged to use high density diskettes. Low density diskettes are acceptable but must be formatted in low density.
.05 Transmitters should check media for viruses before submitting media to IRS/MCC.
SECTION 6. PAYER/TRANSMITTER "A" RECORD -- GENERAL FIELD DESCRIPTIONS
.01 The Payer/Transmitter "A" Record identifies the payer and transmitter of the magnetic media file and provides parameters for the succeeding Payee "B" Records. IRS computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the "B" Records to which they apply.
.02 The number of "A" Records depends on the number of payers and the different types of returns being reported. The payment amounts for one payer and for one type of return should be consolidated under one "A" Record if submitted on the same file.
.03 Do not submit separate "A" Records for each payment amount being reported. For example, if a payer is filing Form 1099-DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one "A" Record, not three separate "A" Records. For "B" Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no payment to be reported.
.04 The first record on the file must be an "A" Record. A transmitter may include "B" Records for more than one payer on a tape or diskette. However, each group of "B" Records must be preceded by an "A" Record and followed by an End of Payer "C" Record. A single tape or diskette may contain different types of returns out the types of returns must not be intermingled. A separate "A" Record is required for each payer and each type of return being reported.
.05 All records must be a fixed length of 420 positions.
.06 An "A" Record may be blocked with "B" Records, however, the initial record on a file must be an "A" Record. IRS/MCC will accept an "A" Record after a "C" Record.
.07 Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.
.08 All alpha characters entered in the "A" Record must be upper-case.
.09 When filing Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name of the recipient of the interest referred to as the payer in these instructions. The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid.
Note: For all fields marked Required, the transmitter must provide the information described under Description and Remarks. For those fields not marked Required, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated media position(s) and for the indicated length. All records are now a fixed length of 420 positions.
Record Name: Payer/Transmitter "A" Record
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1 Record 1 Required. Enter "A."
Type
2-3 Payment 2 Required. Enter "97" (unless
Year reporting prior year
data).
_____________________________________________________________________
4-6 Reel 3 The reel sequence number is
Sequence incremented by 1 for each
Number tape or diskette on the file
starting with 001. The
transmitter may enter blanks
or zeros in this field.
IRS/MCC bypasses this
information. Indicate the
proper sequence on the
external media label.
_____________________________________________________________________
7-15 Payer's 9 Required. Must be the valid nine
TIN -digit Taxpayer Identification
Number assigned to the payer. Do
not enter blanks, hyphens, or
alpha characters. Art zeros,
ones, twos, etc., will have the
effect of an incorrect TIN.
Note: For foreign entities that are not required to have a TIN,
this field must be blank. However, the Foreign Entity Indicator,
position 49 of the "A" Record, must be set to "1" (one).
_____________________________________________________________________
16-19 Payer 4 The Payer Name Control can be
Name obtained only from the mail label
Control on the Package 1099 that is
mailed to most payers each
December. To distinguish between
Package 1099 and the Magnetic
Media Reporting (MMR) Package,
the Package 1099 contains
instructions for paper filing
only, and the mail label on the
package contains a four (4)
character name control. The MMR
Package contains instructions for
filing magnetically or
electronically, The mail label
does out contain a name control.
Names of less than four (4)
characters should be left-
justified, filling the unused
positions with blanks. If a
Package 1099 has not been
received or the Paver Name
Control is unknown, this field
must be blank filled.
_____________________________________________________________________
20 Last 1 Enter a "1" (one) if this is the
Filing last year the payer will file;
Indicator otherwise, enter blank. Use this
indicator if the payer will not
be filing information returns
under this payer name and TIN in
the future either magnetically,
electronically, or on paper.
_____________________________________________________________________
21 Combined 1 Required for the Combined
Federal/ Federal/State Filing Program.
State Filer Enter "1" (one) if participating
in the Combined Federal/State
Filing Program; otherwise, enter
blank. Refer to Part A, Sec. 16,
for further information. Forms
1098, 1099-A, 1099-B, 1099-C,
1099-LTC, 1099-MSA, 1099-S, 5498
-MSA and W-2G cannot he filed
under this program.
_____________________________________________________________________
22 Type of 1 Required. Enter the appropriate
Return code from the table below:
Type or Return Code
1098 3
1099-A 4
1099-B B
1099-C 5
1099-DIV 1
1099-G F
1099-INT 6
1099-LTC T
1099-MISC A
1099-MSA M
1099-OID D
1099-PATR 7
1099-R 9
1099-S S
5498 L
5498-MSA K
W-2G W
_____________________________________________________________________
23-31 Amount 9 Required. Enter the appropriate
Codes amount codes for the type of
(See Note) return being reported. Generally,
for each amount code entered in
this field, a corresponding
payment amount must appear in the
Payee "B" Record. In most cases,
the box numbers on paper
information returns correspond
with the amount codes used to
file magnetically/electronically.
However, if discrepancies occur,
this revenue procedure governs.
Example of Amount Codes:
If position 22 of the Payer/Transmitter "A" Record is
"A" (for 1099-MISC) and positions 23-31 are "1247bbbbb",
this indicates the payer is reporting any or all four
payment amounts (1247) in all of the following "B"
Records. (In this example,"b" denotes blanks in the
designated positions. Do not enter the letter "b".)
The first payment amount field will represent rents:
the second will represent royalties;
the third will be all "0" (zeros);
the fourth will represent Federal income tax withheld:
the fifth and sixth will be all "0" (zeros);
the seventh will represent nonemployee compensation;
and
the eighth and ninth will be all "0" (zeros).
Enter the amount codes in ascending sequence (i.e.,
1247bbbbb, left justify information, and fill unused
positions with blanks. For further clarification of the
amount codes, contact IRS/MCC. (In this example, "b"
denotes blanks in the designated positions. Do not enter
the letter "b.")
Note: A type of return and an amount code must be present in
every Payer "A" Record even if no money amounts are being reported.
For a detailed explanation of the information to be reported in each
amount code, refer to the 1997 "Instructions for Forms 1099, 1098,
5498, and W-2G."
Amount Codes Form 1098 - For Reporting Mortgage Interest
Mortgage Interest Statement Received From Payers/Borrowers
(Payer of Record) on Form 1098:
Amount Code Amount Type
1 Mortgage interest
received from
payer(s)/
borrower(s)
2 Points paid on
purchase of
principal
residence
3 Refund (or credit)
of overpaid
interest
Amount Codes Form 1099-A -- For Reporting the Acquisition of
of Secured Property (See Acquisition or Abandonment
Note) Abandonment of Secured property
on Form 1099-A:
Amount Code Amount Type
2 Balance of
principal
outstanding
4 Fair market value
of property
Note: If, in the same calendar year, a debt is canceled in
connection with the acquisition or abandonment of secured property
for one debtor and the filer would be required to file both Forms
1099-A and 1099-C, the filer is required to file Form 1099-C only.
See the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G" for
further information on coordination with Form 1099-C.
Amount Codes Form 1099-B For Reporting Payments on Form
Proceeds From Broker and 1099-B:
Barter Exchange Transactions
Amount Code Amount Type
2 Stocks, bonds,
etc. (For forward
contracts, See
Note 1)
3 Bartering (Do not
report negative
amounts.)
4 Federal income tax
withheld (backup
withholding) (Do
not report
negative amounts.)
6 Profit (or loss)
realized on closed
regulated futures
or foreign cur-
rency contracts in
1997 (See Note 2).
7 Unrealized profit
(or loss) on open
contracts
-12/31/96
(See Note 2).
8 Unrealized profit
for loss) on open
contracts
-12/31/97
(See Note 2).
9 Aggregate profit
(or loss) (See
Note 2).
Note 1: The payment amount field associated with Amount Code 2
may be used to represent a loss from a closing transaction on a
forward contract. Refer to the "B" Record -- General Field
Descriptions, Payment Amount Fields, for instructions on reporting
negative amounts.
Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used for
the reporting of regulated futures or foreign currency contracts.
Amount Codes Form 1099-C -- For Reporting Cancellation of
Cancellation of Debt Debt on Form 1099-C:
(See Note 1) Amount Code Amount Type
2 Amount of debt
canceled
3 Interest if
included in Amount
Code 2
7 Fair market value
of property (See
Note 2)
Note 1: If, in the same calendar year, a debt is canceled in
connection with the acquisition or abandonment of secured property
for one debtor and the filer would be required to file both Forms
1099-C and 1099-A (Acquisition or Abandonment of Secured Property),
the filer is required to file Form 1099-C only. Set the 1997
"Instructions for Forms 1099, 1098, 5498, and W-2G" for further
information on coordination with Form 1099-A.
Note 2: Amount Code 7 will be used only if a combined Form
1099-A and 1099-C is being filed.
Amount Codes Form 1099-DIV -- For Reporting Payments on Form
Dividends and Distribution 1099-DIV:
Amount Code Amount Type
1 Gross dividends
and other
distrib-
utions on stock
(See Note)
2 Ordinary dividends
(See Note)
3 Capital gain
distributions (See
Note)
4 Nontaxable
distributions (if
determinable) (See
Note)
5 Investment
expenses (See
Note)
6 Federal income tax
withheld (backup
withholding)
7 Foreign tax paid
8 Cash liquidation
distributions
9 Noncash
liquidation
distributions
(show fair market
value)
Note: Amount Code 1 must be present (unless the payer is using
Amount Codes 8 or 9 only) and must equal the sum of amounts reported
for Amount Codes 2, 2, 4, and 5. If an amount is present for Amount
Code 1, there must be an amount present for Amount Codes 2-5, as
applicable.
Amount Codes Form 1099-G -- For Reporting Payments on Form
Certain Government Payments 1099-G:
Amount Code Amount Type
1 Unemployment
compensation
2 State or local
income tax
refunds, credits,
or offsets
4 Federal income tax
withheld (backup
withholding) or
voluntary
withholding on
unemployment
compensation or
Commodity Credit
Corporation Loans,
or certain crop
disaster payment
6 Taxable grants
7 Agriculture
payments
Amount Codes Form 1099-INT -- For Reporting Payments on Form
Interest income 1099-INT:
Amount Code Amount Type
1 Interest income
not included in
Amount Code 3
2 Early withdrawal
penalty
3 Interest on U.S.
Savings Bonds
and Treasury
obligations
4 Federal income tax
withheld (backup
withholding)
5 Foreign tax paid
Amount Codes Form 1099-LTC -- For Reporting Payments on Form
Long-Term Care and 1099-LTC:
Accelerated Death Benefits
Amount Code Amount Type
1 Gross long-term
care benefits laid
2 Accelerated death
benefits paid
Amount Codes Form 1099-MISC -- For Reporting Payments on Form
Miscellaneous Income 1099-MISC:
Amount Code Amount Type
1 Rents (See Note 1)
2 Royalties (See
Note 2)
3 Other income
4 Federal income tax
withheld (backup
withholding or
withholding on
payments of Indian
gaming profits)
5 Fishing boat
proceeds
6 Medical and health
care payments
7 Nonemployee
compensation or
crop insurance
proceeds (See Note
3)
8 Substitute
payments in lieu
of dividends or
interest
9 Excess golden
parachute payments
Note 1: If reporting the Direct Sales Indicator only, use Type of
Return Code A for 1099-MISC in position 22, and Amount Code 1 in
position 23 of the Payer "A" record. All payment amount fields in the
Payee "B" record will contain zeros.
Note 2: Do not report timber royalties under a "pay-as-cut"
contract; these must be reported on Form 1099-S.
Note 3: Amount Code 7 is normally used to report nonemployee
compensation. However, Amount Code 7 may also be used to report crop
insurance proceeds. See positions 4-5 of the "B" Record for
instructions. If nonemployee compensation and crop insurance proceeds
are being paid to the same payee, a separate "B" Record for each
transaction is required.
Amount Codes Form 1099-MSA For Reporting Distributions from
Distributions From Medical Medical Savings Accounts on Form
Savings Accounts 1099-MSA
Amount Code Amount Type
1 Gross distribution
2 Earnings on excess
contributions
Amount Codes Form 1099-OID -- For Reporting Payments on Form
Original issue Discount 1099-OID:
Amount Code Amount Type
1 Original issue
discount for 1997
2 Other periodic
interest
3 Early withdrawal
penalty
4 Federal income tax
withheld (backup
withholding)
Amount Codes Form 1099-PATR -- For Reporting Payments on Form
Taxable Distributions Received 1099-PATR:
From Cooperatives
Amount Code Amount Type
1 Patronage
dividends
2 Nonpatronage
distributions
3 Per-unit retain
allocations
4 Federal income tax
withheld (backup
withholding)
5 Redemption of
nonqualified
notices and retain
allocations
Pass-Through Credits
(See Note)
6 For filers' use
7 Investment
credit /*/
8 Work opportunity
credit /**/
9 Patron's
Alternative
Minimum Tax
(AMT) adjustment
* The title of Amount Code 7 has been changed from Energy
investment credit to Investment credit.
** The title of Amount Code 8 has been changed from Jobs credit
to Work opportunity credit.
Note: Amount Codes 6, 7, 8, and 9 are reserved for the patron's
share of unused credits that the cooperative is passing through to
the patron. Other credits, such as the Indian employment credit may
be reported in Amount Code 6. The title of the credit reported in
Amount Code 6 should be reported in the Special Data Entries Field in
the Payee "B" Record. The amounts shown for Amount Codes 6, 7, 8, and
9 must be reported to the payee. These Amount Codes and the Special
Data Entries Field are for the convenience of the filer. This
information is not needed by IRS/MCC.
Amount Codes Form 1099-R -- For Reporting Payments on Form
Distributions From Pensions, 1099-R:
Annuities, Retirement or
Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
Amount Code Amount Type
1 Gross distribution
(See Note 1)
2 Taxable amount
(See Note 2)
3 Capital gain
(included in
Amount Code 2)
4 Federal income tax
withheld (See
Note 3)
5 Employee
contributions or
insurance premiums
6 Net unrealized
appreciation in
employer's
securities
8 Other
9 Total employee
contributions
Note 1: If the payment shown for Amount Code 1 is a total distribution, enter a "1" (one) in position 47 of the "B" Record. An amount must be shown in Amount Field 1 unless reporting an amount ONLY for Amount Code 8.
Note 2: If a distribution is a loss, do not enter a negative amount. For example, if stock is distributed but the value is less than the employee's after-tax contributions, enter the value of the stock in Amount Code 1, enter "0" (zero) in Amount Code 2, and enter the employee's contributions in Amount Code 5. If the taxable amount cannot be determined, enter a "1" (one) in position 48 of the "B" Record. If reporting an IRA, SEP, or SIMPLE distribution, generally include the amount of the distribution in the Taxable Amount (Payment Amount Field 2, positions 61-70) and enter a "1" (one) in the IRA/SEP/SIMPLE Indicator Field (position 44). A "1" (one) may be entered in the Taxable Amount Not Determined Indicator Field (position 48) of the Payee "B" Record, but the amount of the distribution must be reported in Payment Amount Fields 1 and 2. See the explanation for Box 2a of Form 1099-R in the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G" for more information on reporting the taxable amount.
Note 3: See the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G" for information concerning Federal income tax withheld for Form 1099-R.
Note: For payers who wish to report state or local income tax, see Part B, Section 8 (7) Payee "B" Record -- Record Layout Positions 322-420 Form 1099-R.
Amount Codes Form 1099-S -- For Reporting Payments on Form
Proceeds From Real Estate 1099-S:
Transactions
Amount Code Amount Type
2 Gross proceeds
(See Note)
5 Buyer's part of
real estate tax
Note: Include payments of timber royalties made under a "pay-as
-cut" contract, reportable under section 6050N. If timber royalties
are being reported, enter "TIMBER" in the description field of the
"B" Record. For more information, see Announcement 90-129, 1990-48
I.R.B. 10.
Amount Codes Form 5498 -- For Reporting Payments on Form
IRA, SEP, or SIMPLE 5498:
Retirement Plan Information
(See Note)
Amount Code Amount Type
1 Regular IRA
contributions made
in 1997 and 1998
for 1997.
2 IRA, SEP, or
SIMPLE rollover
contributions
3 Life insurance
cost included in
Amount Code 1
4 Fair market value
of account
6 SEP contributions
7 SIMPLE
contributions
Note: For information regarding Inherited IRAs, refer to the 1997
"Instructions for Forms 1099, 1098, 5498, and W-2G" and Rev. Proc.
89-52, 1989-2 C.B. 632. Beneficiary information must be given in the
Payee Name Line Field of the "B" Record.
If reporting IRA contributions for a Desert Storm/Shield
participant for other than 1997 or an Operations Joint Guard (OJG)
(Bosnia Region) participant, enter "DS" for Desert Storm or "JG" for
Joint Guard, the year for which the contribution was made, and the
amount of the contribution in the Special Data Entries Field of the
"B" Record. Do not enter the contributions in Amount Code 1.
For information concerning Desert Storm/Shield participant
reporting, refer to the 1994 "Instructions for Forms 1099, 1098,
5498, and W-2G," or Notice 91-17, 1991-1 C.B. 319. The instructions
for filing Form 5498 for Desert Storm/Shield participants will also
apply to participants of Operations Joint Guard (OJG) of the Bosnia
Region.
Amount Codes Form 5498-MSA For Reporting Contributions to
Medical Savings Account Medical Savings Accounts
Information
Amount Code Amount Type
1 Employee MSA
contributions made
in 1997 and 1998
for 1997
2 Total MSA
contributions made
in 1997
3 Total MSA
contributions made
in 1998 for 1997
4 MSA rollover
contributions (not
included in Amount
Code 1, 2, or 3)
(See Note 1)
5 Fair market value
of account (See
Note 2)
Note 1: This is the amount of any rollover made to this MSA in
1997 after a distribution from another MSA. For detailed information
on reporting, see 1997 "Instructions for Filing Form 1099, 1098, 5498
and W-2G."
Note 2: This is the fair market value (FMV) of the account at the
end of 1997.
Amount Codes Form W-2G -- For Reporting Payments on Form
Certain Gambling Winnings W-2G:
Amount Code Amount Type
1 Gross winnings
2 Federal income tax
withheld
3 State income tax
withheld (See
Note)
7 Winnings from
identical wagers
Note: State income tax withheld is added for the convenience of
the payer but need not be reported to IRS/MCC.
_____________________________________________________________________
32 Test 1 Required. Enter "T" if this is a
Indicator test file, otherwise, enter a
blank.
_____________________________________________________________________
33 Service 1 Enter "1" (one) if a service
Bureau bureau was used to develop and/or
Indicator transmit files, otherwise, enter
blank. See Part A, Sec. 17 for
the definition of service bureau.
_____________________________________________________________________
34-41 Blank 8 Enter blanks.
_____________________________________________________________________
42-43 Magnetic 2 Required for magnetic tape/tape
Tape Filer cartridge filers only. Enter the
Indicator letters "LS" (in uppercase only).
Use of this field by filers using
other types of media will be
acceptable but is not required.
_____________________________________________________________________
44-48 Transmitter 5 Required. Enter the five
Control character alpha/numeric
Code (TCC) Transmitter Control Code assigned
by IRS/MCC. A TCC must be
obtained to file data on this
program. Do not enter more than
one TCC per file.
_____________________________________________________________________
49 Foreign 1 Enter a "1" (one) if the payer is
Entity a foreign entity and income is
Indicator paid by the corporation to a U.S.
resident. If the payer is not a
foreign entity, enter a blank
(See Note).
Note: If payers erroneously report entities as foreign, they may
be subject to a penalty for providing incorrect information to IRS.
Therefore, payers must be sure to code only those records as foreign
entities that should be coded.
_____________________________________________________________________
50-89 First 40 Required. Enter the name of the
Payer payer whose TIN appears in
Name Line positions 7-15 of the "A" Record.
Any extraneous information must
be deleted. Left justify
information, and fill unused
positions with blanks. (Filers
should not enter a transfer
agent's name in this field. Any
transfer agent's name should
appear in the Second Payer Name
Line Field.)
Note: When reporting Form 1098, Mortgage Interest Statement, the
"A" Record will reflect the name and TIN of the recipient of the
interest/the filer of Form 1098 (the payer). The "B" Record will
reflect the individual paying the interest (the payer of record) and
the amount paid. For Form 1099-S, the "A" Record will reflect the
person responsible for reporting the transaction (the filer of Form
1099-S) and the "B" Record will reflect the seller/transferor.
_____________________________________________________________________
90-129 Second 40 If the Transfer (or Paying) Agent
Payer Indicator (position 130) contains
Name Line a "1" (one), this field must
contain the name of the transfer
(or paying) agent. If the
indicator contains a "0" (zero),
this field may contain either a
continuation of the First Payer
Name Line or blanks. Left justify
information and fill unused
positions with blanks.
_____________________________________________________________________
130 Transfer 1 Required. Identifies the entity
Agent in the Second Payer Name Line
Indicator Field. (See Part A, Sac. 17 for a
definition of transfer agent.)
Code Meaning
1 The entity in the
Second Payer Name
Line Field is the
transfer (or
paying) agent.
0 (zero) The entity shown
is not the
transfer (or
paying) agent
(i.e.,the Second
Payer Name Line
Field contains
either a
continuation of
the First Payer
Name Line Field or
blanks).
_____________________________________________________________________
131-170 Payer 40 Required. If the Transfer Agent
Shipping Indicator in position 130 is a
Address "1" (one), enter the shipping
address of the transfer (or
paying) agent. Otherwise, enter
the actual shipping address of
the payer. The street address
should include number, street,
apartment or suite number (or P.
O. Box if mail is not delivered
to street address). Left justify
information, and fill unused
positions with blanks.
For U.S. addresses, the payer city, state, and ZIP code must be
reported as a 29, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payer city, state, and ZIP code.
For foreign addresses, filers may use the payer city, state, and ZIP
code as a continuous 40 position field. Enter information in the
following order: city, province or state, postal code, and the name
of the country. When reporting a foreign address, the Foreign Entity
indicator in position 49 must contain a "1" (one).
_____________________________________________________________________
171-199 Payer 29 Required. If the Transfer Agent
City Indicator in position 130 is a
"1" (one), enter the city, town,
or post office of the transfer
agent. Otherwise, enter the city,
town, or post office of the
payer. Left justify information,
and fill unused positions with
blanks. Do not enter state and
ZIP code information in this
field.
_____________________________________________________________________
200-201 Payer 2 Required. Enter the valid U.S.
State Postal Service state
abbreviations for states.
_____________________________________________________________________
202-210 Payer 9 Required. Enter the valid nine
ZIP digit ZIP code assigned by the
Code U.S. Postal Service. If only the
first five digits are known, left
justify information and fill the
unused positions with blanks. For
foreign countries, alpha
characters are acceptable as long
as the filer has entered a "1"
(one) in the Foreign Entity
Indicator, located in Field
Position 49 of the "A" Record.
_____________________________________________________________________
211-290 Transmitter 80 Required if the payer and the
Name transmitter are not the same.
Enter the name of the transmitter
in the manner in which it is used
in normal business. The name of
transmitter must be reported in
the same manner throughout the
entire file. Left justify
information, and fill unused
positions with blanks. If the
payer and transmitter are the
same, this field may be blank.
_____________________________________________________________________
291-330 Transmitter 40 Required if the payer and
Mailing transmitter are not the same.
Address Enter the mailing address of the
transmitter. Street address
should include number, street,
apartment or suite number (or
P.O. Box if mail is not delivered
to street address). Left justify
information, and fill unused
positions with blanks. If the
payer and transmitter are the
same, this field may be blank.
_____________________________________________________________________
331-359 Transmitter 29 Required if the payer and
City transmitter are not the same.
Enter the city, town, or post
office of the transmitter.
Left justify information and fill
unused positions with blanks. If
the payer and transmitter are the
same, this field may be blank.
_____________________________________________________________________
360-361 Transmitter 2 Required if the payer and
State transmitter are not the same.
Enter the valid U.S. Postal
Service state abbreviation for
states.
_____________________________________________________________________
362-370 Transmitter 9 Required if the payer and
ZIP transmitter are not the same.
Code Enter the valid nine digit ZIP
Code assigned by the U.S. Postal
Service. If only the first five
digits are known, left justify
information and fill the unused
positions with blanks.
_____________________________________________________________________
371-385 Payer's 15 Enter the payer's phone number
Phone and extension.
Number
and
Extension
_____________________________________________________________________
386-418 Blank 33 Enter blanks.
_____________________________________________________________________
419-420 Blank 2 Enter blanks or carriage
return/line feed (cr/lf).
_____________________________________________________________________
SECTION 7. PAYER/TRANSMITTER "A" RECORD - RECORD LAYOUT
_____________________________________________________________________
Record Payment Reel Sequence Payer's Payer Name Last Filing
Type Year Number TIN Control Indicator
_____________________________________________________________________
1 2-3 4-6 7-15 16-19 20
_____________________________________________________________________
Combined Federal/State Type Amount Test Service Bureau
Filer of Return Codes Indicator Indicator
_____________________________________________________________________
21 22 23-31 32 33
_____________________________________________________________________
Blank Magnetic Transmitter Foreign First Payer Second Payer
Tape Filer Control Code Entity Name Line Name Line
Indicator
_____________________________________________________________________
34-41 42-43 44-48 49 50-89 90-129
_____________________________________________________________________
Transfer Agent Payer Shipping Payer Payer Payer Transmitter
Indicator Address City State ZIP Code Name
_____________________________________________________________________
130 131-170 171-199 200-201 202-210 211-290
_____________________________________________________________________
Transmitter Transmitter Transmitter Payer Phone Blank or
City State ZIP Code Number & Blank CR/LF
Extension
_____________________________________________________________________
331-359 360-361 362-370 371-385 386-418 419-420
SECTION 8. PAYEE "B" RECORD -- GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUTS
.01 The "B" Record contains the payment information from the information returns. When filing information returns, the format for the "B" Records will remain constant and is a fixed length of 420 positions. The record layout for positions 1 through 321 is the same for all "B" Records. Positions 322 through 420 vary for Forms 1099-A, 1099-B, 1099-C, 1099-LTC, 1099-OID, 1099-S, and W-2G to accommodate variations within these forms. In the "A" Record, the amount codes that appear in positions 23 through 31 will be left-justified and filled with blanks. In the "B" Record, the filer must allow for all nine Payment Amount Fields. For those fields not used, enter "0s" (zeros). For example, a payer reporting on Form 1099-MISC, should enter "A" in field position 22 of the "A" Record. Type of Return. If reporting payments for Amount Codes 1, 2, 4, and 7, the payer would report field positions 23 through 31 of the "A" Record as "1247bbbbb." (In this example, "b" denotes blanks. Do not enter the letter " ". In the "B" Record:
Positions 51 through 60 for Payment Amount 1 will represent rents.
Positions 61-70 for Payment Amount 2 will represent royalties.
Positions 71-80 for Payment Amount 3 will be "0s" (zeros).
Positions 81-90 for Payment Amount 4 will represent Federal income
tax withheld.
Positions 91-110 for Payment Amounts 5 and 6 will be "0s" (zeros).
Positions 111-120 for Payment Amount 7 will represent nonemployee
compensation.
Positions 121-140 for Payment Amounts 8 and 9 will be "0s" (zeros).
.02 The following specifications include a field in the payee records called "Name Control" in which the first four characters of the payee's surname are to be entered by the filer.
.03 If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Compliance with the following will facilitate IRS computer programs in generating the name control:
(a) The surname of the payee whose TIN is shown in the "B" Record should always appear first. If, however, the records have been developed using the first name first, the filer must leave a blank space between the first and last names.
(b) In the case of multiple payees, only the surname of the payee whose TIN (SSN, EIN of ITIN) is shown in the "B" Record must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second Payee Name Line.
.04 See Part A, Sec. 14 for further information concerning Taxpayer identification Numbers (TINs).
.05 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required by state or local governments, or for the personal use of the filer. IRS does not use the data provided in the Special Data Entries Field; therefore, the IRS program does not check the content or format of the data entered in this field. It is the filer's option to use the Special Data Entry Field. If this field is coded, it will not affect the processing of the "B" Records.
.06 Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A, Sec. 16, to participate in this program. Filers may not file Forms 1098, 1099-A, 1099-B, 1099-C, 1099-LTC, 1099-MSA, 1099-S, 5498-MSA, and W-2G under the Combined Federal/State Filing Program.
.07 All alpha characters in the "B" Record must be uppercase.
.08 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 0000001000 in the payment amount field.
.09 IRS strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous notices. Transmitters should be especially careful that the names. TINs, account numbers, types of income, and income amounts are correct.
.10 When reporting Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest, the filer of the Form 1098 (the payer). The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Form 1099-S, the "A" Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the "B" Record will reflect the seller/transferor.
Note: For all fields marked Required, the transmitter must provide the information described under Description and Remarks. For those fields not marked Required, the transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated position(s) and for the indicated length. All records are now a fixed length of 420 positions.
Record Name: Payee "B" Record
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1 Record 1 Required. Enter "B."
Type
_____________________________________________________________________
2-3 Payment 2 Required. Enter "97" (unless
Year reporting prior year data).
_____________________________________________________________________
4-5 Document 2 Required for Forms 1099-G,
Specific/ 1099-MISC (for Crop Insurance
Distribution Proceeds only), 1099-MSA,
Code 1099-R and W-2G. For all other
forms, or if not used, enter
blanks.
_____________________________________________________________________
Tax Year For Form 1099-G, use only for
of Refund reporting the tax year which the
for (Form refund*, credit, or offset
1099-G only) (Amount Code 2) was issued. Enter
in position 4; position 5 must be
blank. If the refund, credit, or
offset is not attributable to
income from a trade or business,
enter the numeric year from the
table below for which the refund,
credit, or offset was issued
(e.g., for 1996, enter 6). If the
refund, credit or offset is
exclusively attributable to
income from a trade or business
and is not of general
application, enter the alpha
equivalent of the year from the
table below (e.g., for 1996,
enter F).
_____________________________________________________________________
Code For Tax Year Which Refund Was Issued
_____________________________________________________________________
Tax Year Code Code For
For Which For Trade/Business
Refund Was General Refund (Alpha
Issued Refund * Equivalent) *
_____________________________________________________________________
1987 7 G
1988 8 H
1989 9 I
1990 0 J
1991 1 A
1992 2 B
1993 3 C
1994 4 D
1995 5 E
1996 6 F
* Be sure the distribution code reflects the tax year for which
the REFUND was made, not the tax year of the Form 1099-G.
Crop Insurance Proceeds For Form 1099-MISC, enter "1"
(Form 1099-MISC only) (one) in position 4 if the
payments reported for Amount
Code 7 are crop insurance
proceeds. Position 5 will be
blank. Crop insurance proceeds
are the only type of payment
for Form 1099-MISC requiring a
Document Specific/Distribution
Code.
4-5 Distribution Code contd. 2 For Form 1099-MSA, enter the
(Form 1099-MSA only) applicable code in position 4.
(For a detailed explana- Position 5 will be blank.
tion of the distribution
codes, see the 1997 Category Code
"Instructions for Forms Normal distribution 1
1099, 1098, 5498, and Excess contributions 2
W-2G.) Disability 3
Death 4
Prohibited transaction 5
(Form 1099-R only) For Form 1099-R, enter the
appropriate distribution
code(s). More than one code
may apply for Form 1099-R.
(For a detailed explana- If only one code is required,
tion of the distribution it must be entered in position
codes, and see the 1997 4 and position 5 must be
"Instructions for Forms blank. Enter at least one (1)
1099, 1098, 5498 and distribution code. A blank in
W-2G.") position 4 is not acceptable.
Enter the applicable code from
the table that follows,
Position 4 must contain a
numeric code in all cases
except when using P, D, E, F,
G, H, L, or S. (L and S have
been added for TY97.) Distri-
bution Code A, B, or C, when
applicable, must be entered in
position 5 with the applicable
numeric code in position 4.
When using Code P for an IRA
distribution under section
408(d)(4) of the Internal
Revenue Code, the filer may
also enter Code 1 if appli-
cable. Only three numeric
combinations are acceptable,
codes 8 and 1, codes 8 and 2
and codes 8 and 4, on one re-
turn. These three combinations
can be used only if both codes
apply to the distribution
being reported. If more than
one numeric code is applicable
to different parts of a
distribution, report two
separate "B" Records. Distri-
bution Codes E, F, and H can-
not be used in conjunction
with other codes. Distribution
Code G may be used in con-
junction with Distribution
Code 4 only, if applicable.
Category Code
Early distribution,
no known exception 1 /*/
Early distribution, 2 /*/
exception applies
(as defined in sec-
tion 72(q), (t), or
(v) of the Internal
Revenue Code (other
than disability or
death)
Disability 3 /*/
Death (includes pay- 4 /*/
ments to an estate
or other beneficiary)
Prohibited transaction 5 /*/
Section 1035 exchange 6
Normal distribution 7 /*/
Excess contributions 8 /*/
plus earnings/excess
deferrals (and/or earn-
ings) taxable in 1997
PS 58 costs 9
Excess contributions P /*/
plus earnings/excess
deferrals taxable in
1996
May be eligible for 5- A
or 10-year tax option
May be eligible for B
death benefit exclu-
sion (See Note 1)
May be eligible for C
both A and B (See
Note 1 )
Excess contributions D /*/
plus earnings/excess
deferrals taxable in
1995
Excess annual additions E
under section 415
Charitable gift annuity F
Direct rollover to IRA G
Direct rollover to qua- H
lified plan or tax-
sheltered annuity
Loans treated as deemed L
distributions under
section 72(p)
Early distribution from S *
a SIMPLE (IRA in first
2 years, no known ex-
ception)
* If reporting an IRA, SEP, or SIMPLE distribution, code a "1"
(one) in position 44 of the "B" Record.
Note 1: Do not use code B or C for payments with respect to
employees who died after August 20, 1996.
Type of Wager (Form W-2G For Form W-2G, enter the
Only) applicable code in position 4.
Position 5 will be blank.
Category Code
Horse race track (or 1
off-rack betting of
a horse track nature)
Dog race track (or off- 2
track betting of a dog
track nature)
Jai-alai 3
State-conducted lottery 4
Keno 5
Bingo 6
Slot machines 7
Any other type of 8
gambling winnings
6 2nd TIN Notice 1 For Forms 1099-B, 1099-DIV,
1099-INT, 1099-MISC, 1099-
OID, and 1099-PATR only.
Enter "2" to indicate noti-
fication by IRS/MCC twice
within three calendar years
that the payee provided an
incorrect name and/or TIN
combination; otherwise, enter
a blank.
7 Corrected Return 1 Indicate a corrected return.
Indicator
Code Definition
G If this is a one-
transaction cor-
rection or the first
of a two-transaction
correction
C If this is the second
transaction of a two
transaction correc-
tion
Blank If this is not a
return being sub-
mitted to correct
information already
processed by IRS.
Note: C, G, and non-coded records must be reported using separate Payer "A" Records. Refer to Part A, Sec. 13, for specific instructions on how to file corrected returns.
8-11 Name Control 4 If determinable, enter the
first four (4) characters of
the surname of the person
whose TIN is being reported
in positions 15-23 of the "B"
Record; otherwise, enter
blanks. This usually is the
payee. If the name that
corresponds to the TIN is not
included in the first or
second payee name line and
the correct name control is
not provided, a backup
withholding notice may be
generated for the record.
Surnames of less than four
(4) characters should be
left-justified, filling the
unused positions with blanks.
Special characters and
imbedded blanks should be
removed. In the case of a
business, other than a sole
proprietorship, use the first
four significant characters
of the business name.
Disregard the word "the" when
it is the first word of the
name, unless there are only
two words in the name. A dash
(-) and an ampersand (&) are
the only acceptable special
characters. Surname prefixes
are considered part of the
surname, e.g., for Van Elm,
the name control would be
VANE.
Note: Although extraneous words, titles, and special characters
are allowed (i.e., Mr., Mrs., Dr., apostrophe ['], or dash [-]), this
information may be dropped during subsequent IRS/MCC processing.
The following examples may be helpful to filers in developing the Name Control:
Name Name Control
Individuals:
Jane Brown BROW
John A. Lee LEE *
James P. En, Sr. EN *
John O'Neill ONEI
Mary Van Buren VANB
Juan De Jesus DEJE
Gloria A. El-Roy EL-R
Mr. John Smith SMIT
Joe McCarthy MCCA
Pedro Torres-Lopes TORR
Maria Lopez Moreno ** LOPE
Binh To La LA *
Nhat Thi Pharm PHAM
Mark D'Allesandro DALL
Corporations:
The First National Bank FIRS
Tire Hideaway THEH
A & B Cafe A&BC
11TH Street Inc. 11TH
Sole Proprietor:
Mark Hemlock DBA
The Sunshine Club HEML
Partnership:
Roben Aspen and Bess Willow ASPE
Harold Fir, Bruce Elm, and
Joyce Spruce et al Ptr FIR *
Estate:
Frank White Estate WHIT
Sheila Blue Estate BLUE
Trusts and Fiduciaries:
Daisy Corporation Employee
Benefit Trust DAIS
Trust FBO The Cherryblossom
Society CHER
Exempt Organization:
Laborer's Union, AFL-CIO LABO
St. Bernard's Methodist
Church Bldg. Fund STBE
* Name Controls of less than four (4) significant characters
must be left-justified and blank-filled.
** For Hispanic names, when two last names are shown for an
individual, derive the name control from the first last name.
12 Direct Sales 1 1099 MISC only. Enter a "1"
Indicator (one) to indicate sales of
$5,000 or more of consumer
products to a person on a
buy/sell, deposit/commission,
or any other commission basis
for resale anywhere other
than in a permanent retail
establishment. Otherwise,
enter a blank.
Note: If reporting direct sales only, use Type of Return "A" in Field Position 22, and Amount Code 1 in Field Position 23 of the Payer "A" Record. All payment amount fields in the Payee "B" Record will contain zeros.
13 Blank 1 Enter blank.
14 Type of TIN 1 This field is used to
identify the Taxpayer
Identification Number (TIN)
in positions 15-23 as either
an Employer Identification
Number (EIN), or a Social
Security Number (SSN) or an
Individual Taxpayer Identi-
fication Number (ITIN). Enter
the appropriate code from the
following table:
Type of TIN Type of Account
1 EIN A business, orga-
nization, sole
proprietor, or
other entity
2 SSN An individual,
including a sole
proprietor or
2 ITIN An individual
required to have
a taxpayer iden-
tification number,
but who is not
eligible to obtain
an SSN
Blank N/A If the type of TIN
is not determin-
able, enter a
blank.
15-23 Taxpayer Identification 9 Required. Enter the nine digit
Number Taxpayer Identification Number
of the payee (SSN, ITIN, or
EIN). If an identification
number has been applied for but
not received, enter blanks. Do
not enter hyphens or alpha
characters. All zeros, ones,
twos, etc. will have the effect
of an incorrect TIN. If the TIN
is not available, enter blanks
(See Note).
Note: IRS/MCC contacts payers who have submitted payee data with
missing TINs in an attempt to prevent erroneous notices. Payers who
submit data with missing TINs, and have taken the required steps to
obtain this information are encouraged to attach a letter of
explanation to the required Form 4804. This will prevent unnecessary
contact from IRS/MCC. This letter, however, will not prevent backup
withholding notices (CP2100 or CP2100A Notices) or penalties for
filing incorrect information returns.
24-23 Payer's Account 20 Enter any number assigned by
Number of Payee the payer to the payee (e.g.,
checking or savings account
number). Filers are encouraged
to use this field. This number
helps to distinguish individual
payee records and should he
unique for each document. Do
not use the payee's TIN since
this will not make each record
unique. This information is
particularly useful when
corrections are filed. This
number will be provided with
the backup withholding notifi-
cation and may be helpful in
identifying the branch or
subsidiary reporting the
transaction. Do not define data
in this field in packed decimal
format. If fewer than twenty
characters are used, filers may
either left or right justify,
filling the remaining positions
with blanks.
44 Form 1099-R 1 Form 1099-R only. Enter "1"
IRA/SEP/SIMPLE (one) if reporting a distri-
Indicator bution from an IRA, SEP, or
SIMPLE; otherwise, enter a
blank (See Note).
Note: For Form 1099-R, generally, report the total amount distributed from an IRA, SEP, or SIMPLE in Payment Amount Field 2 (Taxable Amount), as well as Payment Amount Field 1 (Gross Distribution) of the "B" Record. Filers may indicate the taxable amount was not determined by using the Taxable Amount Not Determined Indicator (position 48) of the "B" Record. However, still report the amount distributed in Payment Amount Fields 1 and 2. Refer to the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G" for exceptions.
45-46 Percentage of 2 Form 1099-R only. Use this
Total Distribution field when reporting a total
distribution to more than one
person, such as when a parti-
cipant is deceased and a payer
distributes to two or more
beneficiaries. Therefore, if
the percentage is 100, leave
this field blank. If the
percentage is a fraction,
round off to the nearest whole
number (e.g., 10.4 percent will
be 10 percent; 10.5 percent
will be 11 percent). Enter the
percentage received by the
person whose TIN is included in
positions 15-23 of the "B"
Record. This field must be
right-justified, and unused
positions must be zero-filled.
If not applicable, enter
blanks. Filers need not enter
this information for IRA, SEP,
or SIMPLE distributions or for
direct rollovers.
47 Total Distribution 1 Form 1099-R only. Enter a "1"
Indicator (See Note) (one) only if the payment shown
for Amount Code 1 is a total
distribution that closed out
the account; otherwise, enter a
blank.
Note: A total distribution is one or more distributions within
one tax year in which the entire balance of the account is
distributed. Any distribution that does not meet this definition is
not a total distribution.
48 Taxable Amount 1 Form 1099-R only. Enter a "1"
Not Determined (one) only if the taxable
Indicator amount of the payment entered
for Payment Amount Field 1
(Gross Distribution) of the "B"
Record cannot be computed;
otherwise, enter blank. If
Taxable Amount Not Determined
Indicator is used, enter "0's"
(zeros) in Payment Amount Field
2 of the Payee "B" Record
unless the IRA/SEP/SIMPLE
Indicator is present (See
Note). Please make every effort
to compute the taxable amount.
Note: If reporting an IRA, SEP, or SIMPLE distribution for Form
1099-R, the Taxable Amount Not Determined Indicator may be used; but,
it is not required. If the IRA/SEP/SIMPLE Indicator is present,
generally, the amount of the distribution must be reported in both
Payment Amount Fields 1 and 2. Refer to the 1997 "Instructions for
Forms 1099, 1098, 5498, and W-2G" for more information.
49-50 Blank 2 Enter blanks.
Payment Amount Fields Required. Filers should allow
(Must be numeric) for all payment amounts. For
(See Note 1) those not used, enter zeros.
For example: If position 22,
Type of Return, of the "A"
Record is "A" (for 1099-MISC)
and positions 23-31, Amount
Codes, are "1247bbbbb". This
indicates the payer is report-
ing any or all four payment
amounts (1247) in all of the
following "B" Records. (In this
example, "b" denotes blanks in
the designated positions. Do
not enter the letter 'b.')
Payment Amount 1 will represent
rents; Payment Amount 2 will
represent royalties; Payment
Amount 3 will be all "0's"
(zeros); Payment Amount 4 will
represent Federal income tax
withheld; Payment Amounts 5 and
6 will be all "0's" (zeros);
Payment amount 7 will represent
nonemployee compensation, and
Payment Amounts 8 and 9 will be
all "0's" (zeros). Each payment
field must contain 10 numeric
characters (See Note 2). Each
payment amount must contain
U.S. dollars and cents. The
right-most two positions
represent cents in the payment
amount fields. Do not enter
dollar signs, commas, decimal
points, or negative payments,
except those items that reflect
a loss on Form 1099-B. Positive
and negative amounts are indi-
cated by placing a "+" (plus)
or "-" (minus sign) in the
left-most position of the
payment amount field. A nega-
tive over punch in the units
position may be used, instead
of a minus sign, to indicate a
negative amount. If a plus
sign, minus sign, or negative
over punch is not used, the
number is assumed to be
positive. Negative over punch
cannot be used in PC created
files Payment amounts must be
right-justified and unused
positions must be zero-filled.
Federal income tax withheld
cannot be reported as a
negative amount on any form.
Note 1: Filers must enter numeric information in all payment fields when filing magnetically or electronically. However, when reporting information on the statement to recipient, the payer may be instructed to leave a box blank. Follow the guidelines provided in the paper instructions for the statement to recipient.
Note 2: If a payer is reporting a money amount in excess of 9999999999* (dollars and cents), it must be reported as follows:
(1) The first Payee "B" Record must contain 9999999999*.
(2) The second Payee "B" Record will contain the remaining money amount.
_____________________________________________________________________
51-60 Payment 10 The amount reported in this
Amount 1* field represents payments
for Amount Code 1 in the "A"
Record.
_____________________________________________________________________
61-70 Payment 10 The amount reported in this
Amount 2* field represents payments
for Amount Code 2 in the "A"
Record.
_____________________________________________________________________
71-80 Payment 10 The amount reported in this
Amount 3* field represents payments
for Amount Code 3 in the "A"
Record.
_____________________________________________________________________
81-90 Payment 10 The amount reported in this
Amount 4* field represents payments
for Amount Code 4 in the "A"
Record.
_____________________________________________________________________
91-100 Payment 10 The amount reported in this
Amount 5* field represents payments
for Amount Code 5 in the "A"
Record.
_____________________________________________________________________
101-110 Payment 10 The amount reported in this
Amount 6* field represents payments
for Amount Code 6 in the "A"
Record.
_____________________________________________________________________
111-120 Payment 10 The amount reported in this
Amount 7* field represents payments
for Amount Code 7 in the "A"
Record.
_____________________________________________________________________
121-130 Payment 10 The amount reported in this
Amount 8* field represents payments
for Amount Code 8 in the "A"
Record.
_____________________________________________________________________
131-140 Payment 10 The amount reported in this
Amount 9* field represents payments
for Amount Code 9 in the "A"
Record.
*If there are discrepancies between the payment amount fields
and the boxes on the paper forms, the instructions in this revenue
procedure govern.
_____________________________________________________________________
141 Form 5498 1 Required. Form 5498 only. Enter
IRA Indicator '1' if reporting a rollover
(Individual (Amount Code 2) or Fair Market
Retirement Value (Amount Code 4) for an IRA
Arrangement and not reporting a contribution
in Amount Code 1. Otherwise,
enter a blank.
_____________________________________________________________________
142 Form 5498 SEP 1 Required. Form 5498 only. Enter
Indicator '1' if reporting a rollover
(Simplified (Amount Code 2) or Fair Market
Employee Value (Amount Code 4) for a SEP
Pension) and not reporting a contribution
in Amount Code 1. Otherwise,
enter a blank.
_____________________________________________________________________
143 Form 5498 1 Required. Form 5498 only. Enter
SIMPLE '1' if reporting a rollover
Indicator (Amount Code 2) or Fair Market
(Savings Value (Amount Code 4) for a
Incentive SIMPLE and not reporting a
Match Plan contribution in Amount Code 1.
for Employees Otherwise, enter a blank.
of Small
Employers)
_____________________________________________________________________
144-160 Blank 17 Enter blanks.
_____________________________________________________________________
161 Foreign 1 If the address of the payee
Country is in a foreign country, enter a
Indicator "1" (one) in this field;
otherwise, enter blanks. When
filers use this indicator, they
may use a free format for the
payee city, state, and ZIP Code.
Address information must not
appear in the First or Second
Payee Name Line.
_____________________________________________________________________
162-201 First Payee 40 Required. Enter the name of the
Name Line payee (preferably surname first)
whose Taxpayer Identification
Number (TIN) was provided in
positions 15-23 of the "B"
Record. Left justify and fill
unused positions with blanks. If
more space is required for the
name, utilize the Second Payee
Name Line Field. If there are
multiple payees, only the name
of the payee whose TIN has been
provided should be entered in
this field. The names of the
other payees may be entered in
the Second Payee Name Line Field.
If reporting information for a
sole proprietor, the individual's
name must always be present on
the First Payee Name Line. The
use of the business name is
optional in the Second Payee Name
Line Field.
Note 1: When reporting Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name of the recipient of the interest (the payer). The "B" Record will reflect the individual paying the interest (the borrower/payer of record) and the amount paid. For Form 1099-S, the "B" Record will reflect the seller/transferor information.
Note 2: For Form 5498 Inherited IRAs, enter the beneficiary's name followed by the word "beneficiary." For example, "Brian Young as beneficiary of Joan Smith" or something similar that signifies that the IRA was once owned by Joan Smith. Filers may abbreviate the word "beneficiary" as, for example, "benef." Refer to the 1997 "Instructions for Forms 1099, 1098, 5498, and W-2G." The beneficiary's TIN must be reported in positions 15-23 of the "B" Record.
Note 3: End First Payee Name Line with a full word. DO NOT SPLIT WORDS.
Note 4: When reporting Form 1099 LTC, Long-Term Care and Accelerated Death Benefits, the "B" record will reflect the individual receiving the payment (the policyholder) and the amount paid. The "B" record will also reflect the individual on account of whose Illness the payment was made (the insured).
_____________________________________________________________________
202-241 Second Payee 40 If there are multiple payees,
Name Line (e.g., partners, joint owners, or
spouses), use this field for
those names not associated with
the TIN provided in position 15
-23 of the "B" Record or if not
enough space was provided in the
First Payee Name Line, continue
the name in this field (See
Note). Do not enter address
information. It is important that
filers provide as much payee
information to IRS/MCC as
possible to identify the payee
assigned the TIN. Left justify
and fill unused positions with
blanks. Fill with blanks if no
entries are present for this
field.
_____________________________________________________________________
Note: End First Payee Name Line with a full word. DO NOT SPLIT
WORDS. Begin Second Payee Name Line with the next sequential word.
_____________________________________________________________________
242-281 Payee 40 Required. Enter mailing address
Mailing of payee. Street address should
Address include number, street, apartment
or suite number (or P.O. Box if
mail is not delivered to street
address). Left justify
information and fill unused
positions with blanks. This field
must not contain any data other
than the payee's mailing address.
For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 29, 2, and 9 position field, respectively. Filers must adhere to the correct format for the payee city, state, and ZIP code.
For foreign addresses, filers may use the payee city, state, and ZIP code as a continuous 40 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Country Indicator in position 161 must contain a "1" (one).
_____________________________________________________________________
282-310 Payee City 29 Required. Enter the city, town or
post office. Left justify
information and fill the unused
positions with blanks. Enter APO
or FPO if applicable. Do not
enter state and ZIP code
information in this field.
_____________________________________________________________________
311-312 Payee State 2 Required. Enter the valid U.S.
Postal Service state
abbreviations for states or the
appropriate postal identifier
(AA, AE, or AP) described in Part
A, Sec. 18.
313-321 Payee ZIP 9 Required. Enter the valid nine
Code digit ZIP Code assigned by the
U.S. Postal Service. If only the
first five digits are known, left
justify information and fill the
unused positions with blanks. For
foreign countries, alpha
characters are acceptable as long
as the filer has entered a "1"
(one) in the Foreign Country
Indicator Field, located in
position 161 of the "B" Record.
_____________________________________________________________________
Standard Payee "B" Record Format For All Types
of Returns up to Position 321
_____________________________________________________________________
Record Payment Document Specific/ 2nd TIN Corrected Return
Type Year Distribution Code Notice Indicator
(Optional)
_____________________________________________________________________
1 2-3 4-5 6 7
_____________________________________________________________________
Name Direct Sales Blank Type of Taxpayer Payer's Account
Control Indicator TIN Identification Number For
Number Payee
_____________________________________________________________________
8-11 12 13 14 13-23 24-43
_____________________________________________________________________
Form
099-R Percentage Total Distribution Taxable Amt Not Blank
IRA/SEP of Total Indicator Determined
/SIMPLE Distribution Indicator
Indicator
_____________________________________________________________________
44 45-46 47 48 49-50
_____________________________________________________________________
Payment Payment Payment Payment Payment
Amount 1 Amount 2 Amount 3 Amount 4 Amount 5
_____________________________________________________________________
51-60 61-70 71-80 81-90 91-100
_____________________________________________________________________
Payment Payment Payment Payment Form 5498
Amount 6 Amount 7 Amount 8 Amount 9 IRA Indicator
_____________________________________________________________________
101-110 111-120 121-130 131-140 141
_____________________________________________________________________
Form 5498 Form 5498 Blank Foreign First Payee
SEP SIMPLE Indicator Country Indicator Name Line
Indicator
_____________________________________________________________________
142 143 144-160 161 162-201
_____________________________________________________________________
Second Payee Payee Mailing Payee Payee Payee
Name Line Address City State ZIP Code
_____________________________________________________________________
202-241 242-281 282-210 311-312 313-321
The following sections define the field positions for the different types of returns in the Payee "B" Record (positions 322-420):
(1) Forms 1098, 1099-DIV, 1099-G, 1009-INT, 1009-MISC, 1099-MSA, 1099-PATR, 5498, and 5498-MSA
2) Form 1009-A
(3) Form 1009-B
(4) Form 1099-LTC
(5) Form 1099-LTC
(6) Form 1099-OID
(7) Form 1099-R
(8) Form 1099-S
(9) Form W-2G
(1) Payee "B" Record -- Record Layout Positions 322-420 Forms 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-MSA, 1099-PATR, 5498, and 5498-MSA
_____________________________________________________________________
322-349 Blank 28 Enter blanks.
_____________________________________________________________________
350-416 Special Data 67 This portion of the "B" Record
Entries may be used to record information
for state or local government
reporting or for the filer's own
purposes. Payers should contact
the state or local revenue
departments for filing
requirements. If this field is
not utilized, enter blanks.
_____________________________________________________________________
417-418 Combined 2 If this payee record is to be
Federal/ forwarded to a state agency as
State part of the Combined
Federal/State Filing Program,
enter the valid state code from
Part A, Sec. 16, Table 1. For
those payers or states not
participating in this program or
for forms not valid for state
reporting, enter blanks.
_____________________________________________________________________
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf)
characters.
Payee "B" Record -- Record Layout Positions 322-420
Forms 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-MSA, 1099-PATR, 5498, and 5498-MSA
____________________________________________________________________
Blank Special Data Combined Federal/State Blank or
Entries Code CR/LF
____________________________________________________________________
322-349 350-416 417-418 419-420
(2) Payee "B" Record -- Record Layout Positions 322-420 Form 1099-A
322-349 Blank 28 Enter blanks.
_____________________________________________________________________
350-370 Special 21 This portion of the "B" Record
Data Entries may be used to record information
for state or local government
reporting or for the filer's own
purposes. Payers should contact
the state or local revenue
departments for the filing
requirements.If this field is not
utilized, enter blanks.
_____________________________________________________________________
371-376 Date of 6 Form 1099-A only. Enter the
Lender's acquisition date of the secured
Acquisition property or the date the lender
or Knowledge first knew or had of Abandonment
of Abandonment reason to know the property was
abandoned, in the format MMDDYY
(i.e., 052297), Do not enter
hyphens or slashes.
_____________________________________________________________________
377 Personal 1 Form 1099-A only. Enter the
Liability appropriate indicator from
Indicator the table below:
Indicator Usage
1 Borrower was
personally liable
for repayment of
the debt.
Blank Borrower was not
personally liable
for repayment of
the debt.
_____________________________________________________________________
378-416 Description 39 Form 1099-A only. Enter a brief
of Property description of the property. For
real property, enter the address,
or, if the address does not
sufficiently identify the
property, enter the section, lot
and block. For personal property,
enter the type, make and model
(e.g., Cat-1996 Buick Regal or
office equipment). Enter "CCC"
for crops forfeited on Commodity
Credit Corporation loans. If
fewer than 39 positions are
required, left justify
information and fill unused
positions with blanks.
_____________________________________________________________________
417-418 Blank 2 Enter blanks.
_____________________________________________________________________
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf)
characters.
_____________________________________________________________________
Payee "B" Record -- Record Layout Positions 322-420 Form 1099-A
_____________________________________________________________________
Date of
Lender's Personal
Special Acquisition Liability Description Blank
Blank Data or of Blank or
Entries Abandonment Indicator Property CR/LF
_____________________________________________________________________
322-349 350-370 371-376 377 378-416 417- 419-
418 420
(3) Payee "B" Record -- Record Layout Positions 322-420 Form 1099-B
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322-349 Blank 28 Enter blanks.
_____________________________________________________________________
350-359 Special 10 This portion of the "B" Record
Data may be used to record in-
Entries formation for state or local
government reporting or for
the filer's own purposes. Payers
should contact the state or local
revenue departments for filing
requirements. If this field is
not utilized, enter blanks.
_____________________________________________________________________
360 Gross Proceeds 1 Form 1099-B only. Enter the
Indicator appropriate indicator from
the following table, otherwise,
enter blanks.
Indicator Usage
1 Gross proceeds
2 Gross proceeds less
commissions and
option premiums
_____________________________________________________________________
361-366 Date of Sale 6 Form 1099-B only. For broker
transactions, enter the trade
date of the transaction. For
barter exchanges, enter the date
when cash, property, a credit, or
scrip is actually or
constructively received. Enter
the date in the format MMDDYY
(e.g., 052197). Enter blanks if
this is an aggregate transaction.
Do not enter hyphens or slashes.
_____________________________________________________________________
367-379 CUSIP Number 13 Form 1099-B only. For broker
transactions only, enter the
CUSIP (Committee on Uniform
Security Identification
procedures) number of the item
reported for Amount Code 2
(stocks, bonds, etc.). Enter
blanks if this is an aggregate
transaction. Enter "0" (zeros) if
the number is not available.
Right justify information and
fill unused positions with
blanks.
_____________________________________________________________________
380-418 Description 39 Form 1099-B only. If fewer than
39 characters are required, left
justify information and fill
unused positions with blanks. For
broker transactions, enter a
brief description of the
disposition item (e.g., 100
shares of XYZ Corp.). For
regulated futures and forward
contracts, enter "RFC" or other
appropriate description and any
amount subject to backup
withholding (see Note). For
bartering transactions show the
services or property provided.
Note: The amount withheld in these situations is to be included
in Amount Code 4.
_____________________________________________________________________
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf)
characters.
_____________________________________________________________________
Payee "B" Record -- Record Layout Positions 312-420 Form 1099-B
_____________________________________________________________________
Special Gross Proceeds Date of CUSIP
Blank Data Indicator Sale Number Description
Entries
_____________________________________________________________________
322 350-359 360 361-366 367-379 380-418
-349
__________
Blank
or CR/LF
__________
419-420
(4) Payee "B" Record -- Record Layout Positions 322-420 Form 1099-C
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322-349 Blank 28 Enter blanks.
_____________________________________________________________________
350-370 Special Data 21 This portion of the "B" Record
Entries may be used to record in-
formation or state or local
government reporting or for the
filer's own purposes. Payers
should contract the state or
local revenue departments for
filing requirements. If this
field is not utilized, enter
blanks.
_____________________________________________________________________
371-376 Date Canceled 6 Form 1099-C only. Enter the date
the debt was canceled in the
format of MMDDYY (i.e,, 052297).
Do not enter hyphens or slashes.
_____________________________________________________________________
377 Bankruptcy 1 Form 1099-C only. Enter "1" (one)
Indicator to indicate the debt was
discharged in bankruptcy, if
known.
_____________________________________________________________________
Indicator Usage
1 Debt was discharged
in bankruptcy.
Blank Debt was not
discharged in
bankruptcy.
_____________________________________________________________________
378-416 Debt 39 Form 1099-C only. Enter a
Description description of the origin of the
debt, such as student loan,
mortgage, or credit card
expenditure. If a combined Form
1099-C and 1099-A is being filed,
also enter a description of the
property.
_____________________________________________________________________
417-418 Blank 2 Enter blanks.
_____________________________________________________________________
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf).
_____________________________________________________________________
Payee "B" Record -- Record Layout Positions 322-420 Form 1099-C
_____________________________________________________________________
Special Date Bankruptcy Debt Description
Blank Data Canceled Indicator
_____________________________________________________________________
322-349 350-370 371-376 377 378-416
________________________
Blank
Blank or CR/LF
________________________
417-418 419-420
(5) Payee "B" Record -- Record Layout Positions 322-420 Form 1099-LTC
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322 Type of 1 Form 1099-LTC only. Enter the
Payment appropriate indicator from
Indicator the following table, otherwise,
enter blanks:
_____________________________________________________________________
Indicator Usage
1 Per diem
2 Reimbursed amount
_____________________________________________________________________
323-331 Social 9 Required for Form 1099-LTC only.
Security Enter the Social Security Number
Number of of the individual for whom the
the Insured benefits are being paid.
_____________________________________________________________________
332-371 Name of the 40 Required/or Form 1099-LTC only.
Insured Enter the name of the individual.
_____________________________________________________________________
372-411 Address of 40 Form 1099-LTC, Enter the address
the Insured of the insured. Abbreviate or
truncate the in formation if
necessary.
_____________________________________________________________________
412 Status of 1 Form 1099-LTC only. Enter the
Illness appropriate code from the table
Indicator below to indicate the status of
(Optional) the illness of the insured,
otherwise, enter blank:
Indicator Usage
1 Chronically ill
2 Terminally ill
413-418 Date Certi- 6 Form 1009-LTC only. Enter
fied (Optional) the date of a doctor's certi-
fication of the status of the
insured's illness. The format
of the date is MMDDYY (e.g.,
022097).
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf)
characters.
Payee "B" Record -- Record Layout Positions 322-420 Form 1099-LTC
_____________________________________________________________________
Type of SSN of Name Address Status of Date
Payment Insured of of Illness Certified
Indicator Insured Insured Indicator
_____________________________________________________________________
322 323-331 332-371 372 412 413-418
___________
Blank
or CR/LF
___________
419-420
(6) Payee "B" Record -- Record Layout Positions 322-420 Form 1099-OID
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322-349 Blank 28 Enter blanks.
350-377 Special Data 28 This portion of the "B" Record
Entries may be used to record information
for state or local government
reporting or for the filer's own
purposes. Payers should contact
the state or local revenue
departments for filing require-
ments. If this field is not
utilized, enter blanks.
378-416 Description 39 Required Form 1099-OID only.
Enter the CUSIP number, if any.
If there is no CUSIP number,
enter the abbreviation for the
stock exchange and issuer, the
coupon rate, and year of maturity
(e.g., NYSE XYZ 12 1/2 98). Show
the name of the issuer if other
than the payer. If fewer than 39
characters are required, left
justify information and fill
unused positions with blanks.
417-418 Combined 2 If this payee record is to be
Federal/State forwarded to a state agency
Code as part of the Combined
Federal/State Filing Program,
enter the valid state code from
Part A, Sec. 16, Table 1. For
those payers or states not
participating in this program,
enter blanks.
419-420 Blank 2 Enter blanks or carriage return/
line feed (cr/lf) characters.
Payee "B" Record -- Record Layout Positions 322-420
Form 1099-OID
_____________________________________________________________________
Blank Special Combined Federal/ Blank or
Data Entries Description State Code CR/LF
_____________________________________________________________________
322-349 350-377 378-416 417-418 419-420
(7) Payee "B" Record - Record Layout Positions 322-420 Form 1099-R
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322-349 Blank 28 Enter blanks.
350-396 Special 47 This portion of the "B" Record
Data may be used to record information
Entries for state or local government
reporting or for the filer's own
purposes. Payers should contact
the state or local revenue
departments for filing require-
ments. If this field is not
utilized, enter blanks.
397-406 State Income 10 Form 1099-R only. State income
Tax Withheld tax withheld is for the conve-
nience of the filers. This
information does not need to be
reported to IRS. The payment
amount must be right justified
and unused positions must be
zero-filled. If not reporting
state tax withheld, this field
may be used as a continuation of
the Special Data Entries field.
407-416 Local Income 10 Form 1099-R only. Local income
Tax Withheld tax withheld is for the conve-
nience of the filers. This
information does not need to be
reported to IRS. The payment
amount must be right justified
and unused positions must be
zero-filled. If not reporting
local tax withheld, this field
may be used as a continuation of
the Special Data Entries field.
417-418 Combined 2 If this payee record is to be
Federal/ forwarded to a state agency
State Code as part of the Combined
Federal/State Filing Program,
enter the valid state code from
Part A. Sec. 16, Table 1. For
those payers or states not
participating in this program,
enter blanks.
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf) cha-
racters.
Payee "B" Record - Record Layout Positions 322-420
Form 1099-R
_____________________________________________________________________
Blank Special State Income Local Income Combined Federal/
Data Entries Tax Withheld Tax Withheld State Code
_____________________________________________________________________
322-349 350-396 397-406 407-416 417-418
_____________
Blank
or CR/LF
_____________
419-420
(8) Payee "B" Record - Record Layout Positions 322-420 Form 1099-S
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322-349 Blank 28 Enter blanks.
350-372 Special Data 23 This portion of the "B" Record
Entries may be used to record information
for state or local government
reporting or for the filer's own
purposes. Payers should contact
the state or local revenue
departments for filing require-
ments. If this field is not
utilized, enter blanks.
373-378 Date of 6 Required. Form 1099-S only. Enter
Closing the closing date in the format
MMDDYY (e.g., 052297). Do not
enter hyphens or slashes.
379-417 Address 39 Required. Form 1099-S only. Enter
or Legal the address of the property
Description transferred (including city,
state, and ZIP code). If the
address does not sufficiently
identify the property, also enter
a legal description, such as
section, lot, and block. For
timber royalties, enter "TIMBER."
If fewer than 39 positions are
required, left justify informa-
tion and fill unused positions
with blanks.
418 Property or 1 Required. Form 1099-S only. Enter
Services "1" (one) if the Indicator
Indicator transferor received or will re-
ceive property (other than cash
and consideration treated as cash
in computing gross proceeds) or
services as part of the consi-
deration for the property
transferred. Otherwise, enter a
blank.
419-420 Blank 2 Enter blanks or carriage re-
turn/line feed (cr/lf characters.
Payee "B" Record - Record Layout Positions 312-420
Form 1099-S
_____________________________________________________________________
Blank Special Date of Address or Property or Blank or
Data Closing Legal Services CR/LF
Entries Description Indicator
_____________________________________________________________________
322-349 350-372 373-378 379-417 418 419-420
Note: When reporting Form 1099-S, the "B" Record will reflect
the seller/transferor information.
(9) Payee "B" Record - Record Layout Positions 322-420 Form W-2G
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
322-352 Blank 31 Enter blanks.
353-358 Date Won 6 Required. Form W-2G only. Enter
the date of the winning event in
the format MMDDYY (e.g., 052297).
Do not enter hyphens or slashes.
This is not the date the money
was paid, if paid after the date
of the race (or game).
359-373 Transaction 15 Required. Form W-2G only. For
state-conducted lotteries, enter
the ticket or other identifying
number. For keno, bingo, and slot
machines, enter the ticket or
card number (and color, if
applicable), machine serial
number, or any other information
that will help identify the
winning transaction. All others,
enter blanks.
374-378 Race 5 Form W-2G only. If applicable,
enter the race (or game) relating
to the winning ticket. Otherwise,
enter blanks.
379-383 Cashier 5 Form W-2G only. If applicable,
enter the initials of the cashier
making the winning payment;
otherwise, enter blanks.
384-388 Window 5 Form W-2G only. If applicable,
enter the window number or
location of the person paying the
winnings; otherwise, enter
blanks.
389-403 First ID 15 Form W-2G only. For other than
state lotteries, enter the first
identification number of the
person receiving the winnings;
otherwise, enter blanks.
404-418 Second ID 15 Form W-2G only. For other than
state lotteries, enter the second
identification number of the
person receiving the winnings;
otherwise, enter blanks.
419-420 Blank 2 Enter blanks, or carriage
return/line feed (cr/lf)
characters.
Payee "B" Record - Record Layout Positions 322-420
Form W-2G
_____________________________________________________________________
Blank Date Won Transaction Race Cashier Window First Id
_____________________________________________________________________
322-352 353-358 359-373 374-378 379-383 384-388 389-403
___________________________
Second ID Blank or
CR/LF
___________________________
404-418 419-420
SECTION 9. END OF PAYER "C" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT
.01 The End of Payer "C" Record is a fixed record length of 420 positions. The control total fields are each 15 positions in length.
.02 The "C" Record consists of the total number of payees and the totals of the payment amount fields filed by a given payer and/or a particular type of return. The "C" Record must he written after the last "B" Record for each type of return for a given payer. For each "A" Record and group of "B" Records on the file, there must be a corresponding "C" Record.
.03 In developing the "C" Record, for example, if a payer used Amount Codes 1.3, and 6 in the "A" Record, the totals from the "B" Records will appear in Control Totals 1, 3, and 6 of the "C" Record. In this example, positions 26-40, 56-85, and 101-145 would be zero filled. Positions 146-420 would be blank filled.
.04 Payers/Transmitters should verify the accuracy of the totals since data with missing or incorrect "C" Records may be returned for replacement
Record Name: End of Payer "C" Record
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1 Record 1 Required. Enter "C."
Type
2-7 Number of 6 Required. Enter the total number
Payees of "B" Records covered by the
preceding "A" Record. Right
justify information and fill
unused positions with zeros
8-10 Blank 3 Enter blanks.
Required. Accumulate totals of
any payment amount fields in the
"B" Record into the appropriate
control total fields of the "C"
Record. Control totals must be
right-justified and unused
control total fields zero-filled.
All control total fields are 15
positions in length.
11-25 Control
Total 1 15
26-40 Control
Total 2 15
41-55 Control
Total 3 15
56-70 Control
Total 4 15
71-85 Control
Total 5 15
86-100 Control
Total 6 15
101-115 Control
Total 7 15
116-130 Control
Total 8 15
131-145 Control
Total 9 15
146-420 Blank 275 Enter blanks. Filers may enter
carriage return/line feed (cr/lf)
characters in positions 419-420.
End of Payer "C" Record - Record Layout
_____________________________________________________________________
Record Number of Blank Control Control Control
Type Payees Total 1 Total 2 Total 3
_____________________________________________________________________
1 2-7 8-10 11-25 26-40 41-55
_____________________________________________________________________
Control Control Control Control Control Control Blank or
Total 4 Total 5 Total 6 Total 7 Total 8 Total 9 CR/LF
_____________________________________________________________________
56-70 71-85 86-100 101-115 116-130 131-145 146-420
_____________________________________________________________________
SECTION 10. STATE TOTALS "K" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT
.01 The State Totals "K" Record is a fixed record length of 420 positions. The control total fields are each 15 positions in length.
.02 The "K" Record is a summary for a given payer and a given state in the Combined Federal/State Filing Program, used only when state reporting approval has been granted.
.03 The "K" Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer for a given state. The "K" Record(s) must be written after the "C" Record for the related "A" Record.
.04 In developing the "K" Record, for example, if a payer used Amount Codes 1, 3, and 6 in the "A" Record, the totals from the "B" Records coded for this state will appear in Control Totals 1, 3, and 6 of the "K" Record.
.05 There must be a separate "K" Record for each state being reported.
.06 Refer to Part A. Sec. 16 for the requirements and conditions that must be met to file via this program.
.07 Control total fields have been added for the accumulated totals of state and local withholding fields from the "B" Records for Form 1099-R only for each slate being reported.
(1) State Totals "K" Record -- Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, and 5498
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1 Record 1 Required. Enter "K."
Type
2-7 Number of 6 Required. Enter the total number
Payees of "B" Records being coded for
this state. Right justify
information end fill unused
positions with zeros.
8-10 Blank 3 Enter blanks.
Required. Accumulate totals of
any payment amount fields in
the "B" Records for each
state being reported into the
appropriate control total fields
of the appropriate "K" Record.
Control totals must be
right-justified, and unused
control total fields zero-filled.
All control total fields are 15
positions in length.
11-25 Control
Total 1 15
26-40 Control
Total 2 15
41-55 Control
Total 3 15
56-70 Control
Total 4 15
71-85 Control
Total 5 15
86-100 Control
Total 6 15
101-115 Control
Total 7 15
116-130 Control
Total 8 15
131-145 Control
Total 9 15
146-416 Blank 271 Reserved for IRS use. Enter
blanks.
417-418 Combined 2 Required. Enter the code assigned
Federal/ to the state which is to receive
State Code the information. (Refer to Part
A, Sec. 16, Table 1.)
419-420 Blank 2 Enter blanks or carriage
return/line feed (cr/lf)
characters.
State Totals "K" Record -- Record Layout Forms
1099-DIV, 1099-G, 1099-INT, 1099-MISC,
1099-OID, 1099-PATR, and 5498
_____________________________________________________________________
Record Number of Blank Control Control Control
Type Payees Total 1 Total 2 Total 3
_____________________________________________________________________
1 2-7 8-10 11-25 26-40 41-55
_____________________________________________________________________
Control Control Control Control Control Control
Total 4 Total 5 Total 6 Total 7 Total 8 Total 9
_____________________________________________________________________
56-70 71-85 86-100 101-115 116-130 131-145
_____________________________________________
Combined Federal/ Blank or
Blank State Code CR/LF
_____________________________________________
146-416 417-418 419-420
(2) State Totals "K" Record -- Record Layout Form 1099-R
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1 Record 1 Required. Enter "K."
Type
2-7 Number of 6 Required. Enter the total number
Payees of "B" Records being coded for
this state. Right justify
information and fill unused
positions with zeros.
8-10 Blank 3 Enter blanks.
Required. Accumulate totals of
any payment amount fields in the
"B" Records for each state being
reported into the appropriate
control total fields of the
appropriate "K" Record. Control
totals must be right-justified,
and unused control total fields
zero-filled. All control total
fields are 15 positions in
length.
11-25 Control
Total 1 15
26-40 Control
Total 2 15
41-55 Control
Total 3 15
56-70 Control
Total 4 15
71-85 Control
Total 5 15
86-100 Control
Total 6 15
101-115 Control
Total 7 15
116-130 Control
Total 8 15
131-145 Control
Total 9 15
146-386 Blank 241 Reserved for IRS use. Enter
blanks.
387-401 Control 15 Form 1099-R only. Aggregate
Total State totals of the state income tax
Income Tax withheld field in the Payee
Withheld "B" Record; otherwise, enter
blanks.
402-416 Control 15 Form 1099-R only. Aggregate
Total Local totals of the local income
Income Tax tax withheld field in the
Withheld Payee "B" Record; otherwise,
enter blanks.
417-418 Combined 2 Required. Enter the code
Federal/State assigned to the state
Code which is to receive the
information. (Refer to
Part A, Sec. 16, Table 1.)
419-420 Blank 2 Enter blanks or carriage
return/line feed (cr/lf)
characters.
_____________________________________________________________________
State Totals "K" Record - Record Layout - Form 1099-R
Record Number of Blank Control Control Control
Type Payees Total 1 Total 2 Total 3
_____________________________________________________________________
Control Control Control Control Control Control
Total 4 Total 5 Total 6 Total 7 Total 8 Total 9
56-70 71-85 86-100 101-115 116-130 131-145
Blank Control Total Control Total Combined Federal/ Blank or
State Income Local Income State Code CR/LF
Tax Withheld Tax Withheld
146-386 387-401 402-416 417-418 419-420
_____________________________________________________________________
SECTION 11. END OF TRANSMISSION "F" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT
.01 The end of transmission "F" record is a fixed record length of 420 positions. The "F" Record is a summary of the number of payers in the entire file.
.02 This record should be written after the last "C" Record (or last "K" Record, when applicable) of the entire file.
Record Name: End of Transmission "F" Record
Field Field
Position Title Length Description and Remarks
_____________________________________________________________________
1 Record Type 1 Required. Enter "F."
2-5 Number of 4 Enter the total number of Payer
"A" Records "A" Records in the entire file
(right justify and zero fill) or
enter all zeros.
6-30 Zero 25 Enter zeros.
31-420 Blank 390 Enter blanks or carriage
return/line feed (cr/lf)
characters in positions 419-420.
_____________________________________________________________________
End of Transmission "F" Record - Record Layout
Record Number of Zeros Blank or
Type "A" Records CR/LF
_____________________________________________________________________
1 2-5 6-30 31-420
PART C. BISYNCHRONOUS (MAINFRAME) ELECTRONIC FILING SPECIFICATIONS
SECTION 1. GENERAL
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will change in the future.
.01 Bisynchronous electronic filing of Forms 1098, 1099, 5498, and W-2G, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge 8mm, 4mm, 1/4 inch QIC tape cartridge or diskette) or paper filing, but is not a requirement. This method uses IBM 3780 communications protocols and is used primarily by mainframe filers. Electronic filing will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Taxpayer Service toll free number (1-800-829-1040) for assistance.
.03 Filers participating in the electronic filing program for information returns will submit their returns to IRS/MCC electronically; and not through magnetic media or paper filing.
.04 If request for extension is approved, transmitters who file electronically will be granted an extension of 30 days to file. Part A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The formats of the "A", "B", "C", "K", and "F" Records are the same for electronically filed records as they are for 5 1/4- and 3 l/2-inch diskettes, tapes, and tape cartridges. For electronically filed documents, each transmission is considered a separate file
SECTION 2. ELECTRONIC FILING APPROVAL PROCEDURE
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically, (Filers who currently have a TCC for magnetic filing do not have to request a second TCC for electronic filing.) Refer to part A, See. 7, for information on how to obtain a TCC.
.02 Filers using bisynchronous protocols must obtain an IRS/MCC-assigned password prior to submitting test or actual data files. To obtain a password, the following steps must be taken:
(a) Bisynchronous filers who already have a TCC must submit either Form 4419 or a letter to indicate that they wish to file information returns electronically. Another TCC will not be assigned. if a letter is submitted, it must contain the following:
1) Name and address of transmitter.
2) Transmitter Control Code.
3) Name and phone number of a contact person within the filer's organization to whom a password will be assigned.
(b) Within 30 days of receiving the application or letter, IRS/MCC will send Form 6086, Time Sharing Operation (TSO) Password Assignment, to the filer which will contain the password to be used for electronic submissions.
(c) Upon receipt of Form 6086. the user (person who will actually transmit the data) will separate the acknowledgment from the password. Both the user and the user's manager must sign the acknowledgment and mail to:
Chief, Security and Disclosure Branch
IRS, Martinsburg Computing Center
P. O. Box 1208, MS-370
Martinsburg, WV 25402
(d) The users or filers should retain a copy of the signed acknowledgment for their records. it is the filer's responsibility to ensure that the password is not compromised. Access to IRS/MCC computers will not be allowed without a valid password. After a password is received and the acknowledgment returned, the filer may submit a data file.
(e) For security reasons, all bisynchronous passwords will expire periodically, and a new password will automatically be assigned. If filers have any questions relating to the security procedures, and/or they need to report their password has been compromised, they must contact IRS/MCC as soon as possible at:
IRS/MCC
Information Returns Branch
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359
or by calling 304-263-8700.
.03 It is the user's responsibility to remember the password and not allow the password to be compromised.
SECTION 3. TEST FILES
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for first time electronic filers in order to resolve any data or communication problems prior to the filing season. If filers wish to submit an electronic test file for Tax Year 1997 (returns to be filed in 1998), it must be submitted to IRS/MCC no earlier than November 1, 1997, and no later than December 31, 1997.
.02 If a filer encounters problems while transmitting electronic test files, contact IRS/MCC for assistance.
.03 A password must be obtained before submitting an electronic test file.
.04 Bisynchronous electronic test files will be processed and filers will be notified as to the acceptability of their data within 5 workdays of the date the data and transmittal Form 4804 are received by IRS/MCC.
.05 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec. 16, for further details.
SECTION 4. ELECTRONIC SUBMISSIONS
.01 Electronically filed information may be submitted to IRS/MCC 7 days a week, 24 hours a day, except for routine maintenance/backup which is performed at 4:00 a.m. Eastern Time. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.02 Lengthy transmissions (100,000 or more records) are not encouraged since the transmission may be interrupted by line noise problems. It is advisable to break lengthy files into multiple transmissions.
.03 The time required to transmit information returns electronically will vary depending on the modem speed, if IBM 3780 data compression is used, and if the records are blocked. The following transmission rates were based on actual test files received at MCC:
4,500 records 50 minutes (4800 bps, no compres-
sion, one record per
block)
54,000 records 4 hours (9600 bps, compression,
two records per block)
SECTION 5. TRANSMITTAL REQUIREMENTS
.01 All data submitted electronically is verified by transmittal Form 4804. The transmitter must send the signed Form 4804 the same day the transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804 can be ordered by calling the IRS toll free forms and publications order number 1-800-TAX-FORM (1-800-829-3676) or it may be computer-generated. A copy of the form is also available in the back of this publication. If a filer chooses to computer-generate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the computer-generated form.
.03 The filer whose TCC is used in the "A" Record is responsible for submitting the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359
Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses for Martinsburg, WV.
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.05 A signed Form 4804 submitted for electronically filed information returns may be sent to IRS/MCC at the following number 304-264-5602. Faxed transmittals will allow IRS/MCC to begin processing the file immediately; however, a filet must still send the actual signed Form 4804 the same day as the electronic submission.
SECTION 6. IBM 3780 BISYNCHRONOUS COMMUNICATION SPECIFICATIONS
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will change in the future.
.01 Transmissions using IBM 3780 bisynchronous protocols must be in EBCDIC character code. Modems must be compatible with either Bell 208B for 4800 bps transmissions, AT&T 2296A for 9600 bps transmissions, or Hayes OPTIMA 288 V.FC Smartmodem for 14400 bps transmissions. These modems are dial-up type modems using the Public Switched Telephone Network. IBM 3780 data compression is acceptable for any bisynchronous transmission. Records may be blocked up to 4096 bytes with INTER RECORD SEPARATORS.
.02 IRS/MCC will accept information returns filed electronically over switched telecommunications network circuits. For 4800 bps, the circuit will be 304-264-7080. For 9600 bps, the circuit will be 304-264-7040. For 14400 bps, the circuit will be 304-264-7045. These circuits are equipped for bisynchronous transmission using the IBM 3780 protocol.
.03 The 4800 bps line terminates at a Bell 208B modem. The Bell 208B modem uses phase-shift keying and eight-phase modulation to transmit binary serial data signals over the telephone line in half-duplex mode. The following options have been selected:
-- Transmit Level set to -4 dBm
-- Compromise Equalizer in (4-Db Slope)
-- DSR off in Analog Loop Mode
-- Automatic Answer
-- Transmitter Internally Timed
-- RS-CS Interval of 50 ms
.04 The 9600 bps line terminates at an AT&T Dataphone II 2296A modem. The AT&T 2296A modem is a full-duplex, CCITT V.32 compatible unit which operates at 9600 bps or 4800 bps (fallback). The following options have been selected:
-- Receiver Responds to Remote Loopback
-- Loss-of-Carrier Disconnect
-- Received-Space Disconnect
-- Send-Space Disconnect
-- Automatic Answer
-- Answer on Ring 1
-- DTR Interlock
-- Retrain Enable
-- Internal Timing
-- CTS Controlled by RTS
-- 0 - 1 ms RTS to CTS Delay
-- CTS Dependent on Carrier
-- RR Indicates Carrier
-- 9600 Trellis Coding
-- 4800 bps Fallback
-- 4 dB Compromise Equalization
.05 The 14400 bps line terminates at a Hayes OPTIMA 288 V.FC Smartmodem. The Hayes OPTIMA Smartmodem is a half-duplex. ITU-T (formerly CCITT) V.32 and V.32 bis compatible unit which operates at 14400 bps, 9600 bps, or 4800 bps (fallback). The following options have been selected:
-- Monitor DTR signal
-- Assert DSR signal after handshake negotiation,
but before connect result code
-- Ring control S=1
SECTION 7. BISYNCHRONOUS ELECTRONIC FILING RECORD SPECIFICATIONS
.01 For bisynchronous filing there are two additional identifier records which must he used to transmit data. These records are 420 positions in length and are the first ($$REQUEST) and second ($$ADD) records sent in an electronic transmission. The purpose of these records is to provide the password and identity of the transmitter. The $$REQUEST, $$ADD, and the data file should be transmitted as one file. In some cases, filers have attempted to send the $$REQUEST and $$ADD as separate files. Doing this will result in a failed transmission.
.02 With the exception of these additional records, the file format for electronic filing is the same as for magnetic media filing. The format of each of these records is as follows:
Record Name: $$REQUEST
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1-20 $$REQUEST 20 Enter the following characters:
Identifier $$REQUEST ID=MSG-FILE
Record
21-420 Blank 400 Enter blanks.
Electronic Filing Identifier $$REQUEST RECORD
-- Record Layout
_________________________
$$REQUEST
Identifier Blank
Record
_________________________
1-20 21-420
.03 Upon making contact with IRS/MCC and furnishing a valid password in the $$ADD identifier record, a data transmission session will commence. The transmission will continue until an End of Transmission (EOT) "F" Record is received. At the end of each transmission, the following message should be received electronically by the filer: "DATA RECEIVED AT MCC" and the line will be disconnected. If this message is not received, there was a problem with the submission, and the filer should contact IRS/MCC immediately.
.04 Upon receiving a data file and transmittal Form 4804, IRS/MCC will release the data for further processing. If the media cannot be processed, the filer will be notified by either letter or telephone that the data must be retransmitted. This file name, if necessary, will be provided by IRS/MCC and is to be placed in positions 45-51 of the $$ADD record when the file is retransmitted.
Record Name: $$ADD
Field Field
Position Title Length Description and Remarks
________ _____ ______ _______________________
1-9 $$ADD 9 Enter the following characters:
Identifier $$ADD ID=
Record
10-17 Password 8 Enter the password assigned by
IRS/MCC. For information
concerning the password, see Part
C, Sec. 2.
18 Blank 1 Enter a blank.
19-26 BATCHID 8 Enter the following characters:
BATCHID=
27 Quote 1 Enter a single quote (').
28-43 Transmitter 16 Enter the transmitter's name.
Name This name should remain
consistent in all transmissions.
If the transmitter's name exceeds
16 positions, truncate the name.
44 Type of File 1 Enter the Type of File Indicator
Indicator from the list below:
O = Original filing
T = Test file
C = Correction file
R = Replacement file
E = Extension file
45-51 Replacement 7 Use this field only if this is a
File Name replacement file. Enter the
replacement file name which
IRS/MCC has assigned to this
file. This file name will be
provided to the filer in the
letter notifying them that a
replacement file is necessary.
If contact is made by telephone,
the replacement file name will be
given to the filer by IRS/MCC at
that time. For other than
replacement files, this field
will contain blanks.
52 Quote 1 Enter a single quote (').
53-420 Blanks 368 Enter blanks.
_____________________________________________________________________
Electronic Filing Identifier $$ADD Record
- Record Layout
$$ADD
Identifier Transmitter
Record Password Blank BATCHID Quote Name
_____________________________________________________________________
1-9 10-17 18 19-26 27 28-43
_____________________________________________________________________
Type of
File Replacement
Indicator File Name Quote Blanks
_____________________________________________________________________
44 45-51 52 53-420
_____________________________________________________________________
PART D. ASYNCHRONOUS (IRP-BBS)
ELECTRONIC FILING SPECIFICATIONS
SECTION 1. GENERAL
.01 Asynchronous electronic filing of Forms 1098, 1099, 5498, and W-2G, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement. Electronic filing using the Information Reporting Program Bulletin Board System (IRP-BBS) will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way. If the original tile was sent magnetically, but was returned for replacement, the replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any corrections may be transmitted electronically.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Taxpayer Service toll-free number (1-800-829-1040) for assistance.
.03 Filers participating in the electronic filing program, for information returns will submit their returns to IRS/MCC via electronically and not through magnetic media or paper filing. Files submitted in this manner must be in standard ASCII code.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of 30 days to file. Part A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The formats of the "A", "B", "C", "K", and "F" Records are the same for electronically filed records as they are for 5 1/4- and 3 1/2-inch diskettes, tapes, and tape cartridges and must be in standard ASCII code. For electronically filed documents, each transmission is considered a separate file; therefore, each transmission must have an End of Transmission (EOT) "F" Record.
SECTION 2. ELECTRONIC FILING APPROVAL PROCEDURE
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically. (Filers who currently have a TCC for magnetic filing do not have to request a second TCC for electronic filing.) Refer to Part A, Sec. 7, for information on how to obtain a TCC.
.02 Once a TCC is obtained, filers using IRP-BBS assign their own passwords and do not need special approval.
.03 With all passwords, it is the user's responsibility to remember the password and not allow the password to be compromised. However, if filers do forget their password, call 304-263-8700 for assistance.
Note: Passwords on the IRP-BBS are case sensitive.
SECTION 3. TEST FILES
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for first time electronic filers in order to resolve any data or communication problems prior to the filing season. If filers wish to submit an electronic test file for Tax Year 1997 (returns to be filed in 1998), it must be submitted to IRS/MCC no earlier thais November 1, 1997, and no later than December 31, 1997.
.02 If a filer encounters problems while transmitting the electronic test files, contact IRS/MCC for assistance.
.03 Filers can verify the status of their transmitted test data by dialing the IRP-BBS. This information will be available within two workdays after their transmission is received by IRS/MCC.
.04 A test file is required from filers who want approval the Combined Federal/State Filing Program. See Pan A, Sec. 16 for further details.
SECTION 4. ELECTRONIC SUBMISSIONS
.01 Electronically filed information may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.02 Filers may submit as many documents as they choose electronically. Filers are allowed 240 minutes a day; however, more time may be requested if needed. It may be advantageous to break down large files (files in excess of two hours of transmission time) into several smaller files. For example, if large files contain several types of returns or payers, transmit each type of return or payer as a separate file. As a result, if only one of the files is incorrect, a replacement would be needed for only the incorrect file.
.03 Do not transmit data using IRP-BBS January 1 through January 7. This will allow time for the IRP-BBS to be updated to reflect current year changes.
.04 Data compression is encouraged when submitting information returns by way of the IRP-BBS. MCC has the ability to decompress files created using several popular software compression programs such as ARC, LHARC, and PKZIP. Software data compression can be done alone or in conjunction with V.42bis hardware compression.
The time required to transmit information returns electronically will vary depending on the modem speed and the type of data compression used, if any. However, transmissions to IRP-BBS will be significantly faster than electronic filing to the mainframe. The time required to transmit a file can be reduced by as much as 85 percent by using software compression and hardware compression.
The following are actual transmission rates achieved in test uploads at MCC using compressed files (PKZIP) and the XMODEM-1K protocol. The actual transmission rates will vary depending on the protocol that is used. (ZMODEM is normally the fastest protocol and XMODEM and KERMIT are the slower protocols.)
Transmission
Speed in bps 500 Records 2500 Records 10000 Records
________________________________________________________________
9600 40 sec 2 min 50 sec 12 min 21 sec
19200 31 sec 1 min 34 sec 7 min 1 sec
38400 17 sec 36 sec 4 min 7 sec
_____________________________________________________________________
.05 Files submitted to IRP-BBS must have a unique filename; therefore, the IRP-BBS will build the filename that must be used. The name will consist of the filer's TCC, submission type (T = Test, P = Production, C = Correction, and R = Replacement) and a sequence number. Filers may call the file anything they choose on their end. The sequence number will be incremented every time the filers send, or attempt to send, a file. Record the upload date, time, and filename. This information will be needed by MCC in order to identify the file if assistance is required and to complete Form 4804.
SECTION 5. TRANSMITTAL REQUIREMENTS
.01 The results of the electronic transmission will be posted to the (F)ile Status area of the IRP-BBS; however, no further processing will occur until the signed Form 4804 is received. The transmitter must send the signed Form 4804 the same day the electronic transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804 can be ordered by calling the IRS toll-free forms and publication order number 1-800-TAX-FORM, (1-800-829-3676), downloaded from the IRP-BBS, or it may be computer generated. A copy of the form is also available in the back of this publication. If a filer chooses to computer-generate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the computer-generate form.
.03 The filer whose TCC is used in the "A" Record is responsible for submitting the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P.O. Box 1359, MS-360
Martinsburg, WV 25402-1359
Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses for Martinsburg,
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.05 A signed Form 4804 submitted for electronically filed information returns may be sent to IRS/MCC at the following number: 304-264-5602. Faxed transmittals will allow IRS/MCC to begin processing the file immediately; however, a filer must still send the actual signed Form 4804 the same day as the electronic submission.
SECTION 6. INFORMATION REPORTING PROGRAM BULLETIN BOARD SYSTEM (IRP- BBS) SPECIFICATIONS
.01 The IRP-BBS is an electronic bulletin board system available to filers of information returns. In addition to filing information returns electronically, the IRP-BBS provides other capabilities. Some of the advantages of IRP-BBS are as follows:
(1) Notification within two workdays as to the acceptability of the data transmitted.
(2) Immediate access to the latest changes and updates that affect the Information Reporting Program at IRS/MCC (program, legislative, etc.).
(3) Access to publications such as the Publication 1220 as soon as they are available.
(4) Capability to communicate with IRS/MCC personnel.
(5) Ability to retrieve information and files applicable to the IRP-BBS.
.02 The IRP-BBS is available for public use and accessible using various personal computer communications equipment; however, electronic submission of information returns is limited to holders of valid TCCs. ATCC is not needed to access those portions of the IRP-BBS that contain forms and publications or to leave questions or messages for IRS/MCC personnel.
.03 Filers using IRP-BBS can determine the acceptability of files submitted by checking the file status area of the bulletin board. reports are not immediately available but will be available two workdays after the transmission is received, by IRS/MCC.
.04 Contract the IRP-BBS by dialing 304-264-7070. The communication software settings for IRP-BBS are:
-- No parity
-- Eight data bits
-- One stop bit
-- Full duplex
The communication software should be set up to use the fastest speed allowed by the filer's modem.
.05 Due to the large number of communication products available, it is impossible to provide specific information on a particular software package or hardware configuration. Filers should contact their software or hardware supplier for assistance.
.06 IRP-BBS software provides a menu-driven environment allowing access to different parts of IRP-BBS. Whenever possible, IRS/MCC personnel will provide assistance in resolving any communication problems with IRP-BBS.
.07 IRP-BBS can be accessed at speeds from 1200 to 28,800 bps. The speed is automatically negotiated for connection at the speed of the calling modem. The communication standards supported include industry Standard 212A. V.22bis, V32, V.32bis, V.34, and V.FC. Point-to-point error control is supported using the V.42 ITU-T standard or MNP 2-4. Data compression is supported using V.42bis ITU-T standard or MNP5.
SECTION 7. IRP-BBS FIRST LOGON PROCEDURES
.01 The following information will be requested to set up the filer's user profile when logging onto the IRP-BBS for the first time.
(A) Enter the letter, that corresponds to the filer's terminal from the following:
< A > IBM PC < B > IBM w/ANSI < C > Atari
< D > ADM-3 < E > H19/Z19/H89 < F > Televid 925
< G > TRS-80 < H > Vidtex < I > VT-52
< J > VT-100 < CR >if none of the above
Most PCs, clones, etc., will select the IBM PC emulation. Machines with color, CGA, EGA, or VGA should select IBM w/ANSI,
(B) Upper/lower case, line feed needed, 0 (zero) nulls after each < CR >, do you wish to modify this? (Most users answer no.)
Common User Problems
Problem Probable Cause Solution
File does not upload/ Not starting communication Start upload/
download when prompted by download on
'Awaiting Start Signal' filers end
All files not Compressing several files Compress only
processed into one filename one file for
every filename
Replacement needed Original data does not Replacement
meet processing and/or must be sub
format requirements mitted within
45 days of
original
transmission
Cannot determine Not dialing back thru Within 24 to
file status IRP-BBS to check the 48 hours after
status of the file sending a file,
check under
(F)ile Status
for notifi-
cation of
acceptability
Transfer aborts Transfer protocol Ensure proto-
before it starts mismatch cols match on
both the
sending and
receiving ends
IRS Encountered Problems
Problem Probable Cause Solution
Loss of carrier Incorrect modem settings Reference your
during session on users end modem manual
about increa-
sing the value
of the value of
the s10
register
Unreadable screens ANALYSIS driver not Select non ANSI
after selecting loaded in the users under (Y) our
"IBM w/ANSI" PC settings
IRS cannot complete User did not mail the Mail completed
final processing Form 4804 Form 4804 the
of data same day as the
electronic trans
-mission
IRS cannot determine User did not indicate Must enter the
which file is being which file is being file name re-
replaced replaced placed under the
replacement
option
IRS cannot determine User incorrectly When prompted,
the type of file indicated T, P, C, enter the cor-
being sent or R for the type of file rect type of
file for data
being sent
Replacement file not User did not dial back Within two work
returned within thru IRP-BBS to check days check under
45 days the status of file (F)ile Status
for notification
of acceptability
Duplicate data Transmitter sends Only submit cor
corrections for entire rections for
file incorrect
records
_____________________________________________________________________
PART E. MAGNETIC/ELECTRONIC SPECIFICATIONS FOR EXTENSIONS OF TIME
SECTION 1. GENERAL
.01 The specifications in Part E include the required 200 byte record format for extensions of time to file requests submitted on magnetically or electronically. Also included are the instructions for the information that is to be entered in the record. Filers are advised to read this section in its entirety to ensure proper filing.
.02 Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electronically. If you meet the threshold of more than 50 payers when requesting an extension but are below the 250 documents threshold, you must still submit a Form 4419, Application for Filing Information Returns Magnetically/Electronically. Requests for extensions of time may be made for Forms 1098, 1099, 5498, W-2G, W-2, and 1042-S.
.03 For Tax Year/997 (returns due to be filed in 1998), transmitters requesting an extension of time to file for more than 50 payers (not payees) are required to file the extension request magnetically or electronically, Transmitters requesting an extension of time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed on tape, tape cartridge, 5 1/4- and 3 1/2-inch diskette, or electronically,
.04 For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809. Request for Extension of Time To File Information Returns, in the same package as the corresponding media. For extension requests filed electronically, the transmitter must FAX the Form 8809 the same day the transmission is made.
.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names and TINS with the Farm 8809. However, Box 6 of the Form 8809 must be completed with the total number of records included on the magnetic media or electronic file.
.06 To be considered, an extension request must be submitted or transmitted on or before the due date of the returns: otherwise, the request will be denied.
.07 The extension record format is also on the IRP-BBS and can be downloaded. See Part D for more information on how to contact the IRP-BBS.
.08 A magnetically-filed request for an extension of time should be sent using the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879, MS-360
Kearneysville, WV 25430
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
Note: Due to the large volume of mail received by IRS/MCC and the time factor involved in processing the Form 8809, it is imperative that the attention line be present on all envelopes or packages containing Extension of Time (EOT) requests.
.09 Requests for extension of time to file postmarked by the United States Postal Service on or before the due date of the returns, and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the "timely mailing as timely filing" rule. A similar rule applies to designated private delivery services (PDSs). See section 10 of Part A for more information on PDSs. For requests delivered by a designated PD8, but through a non-designated service, the actual date of receipt by IRS/MCC will be used as the filing date.
.10 Transmitters who submit their extensions of time requests magnetically or electronically will receive a letter from IRS/MCC with an attached list of the payers specifying approval and/or denial.
.11 Do not submit tax year 1997 extensions of time to file requests on magnetic media or electronically before January 1, 1998.
.12 Filers may request an extension of time as soon as they are aware that an extension is necessary but not later than the due date of the return. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances a request for an extension of time could be denied. In such cases, the transmitter receives a denial letter. When this denial letter is received, the transmitter has 20 days to provide the additional or necessary information and resubmit the extension request to IRS/MCC.
.13 Each piece of magnetic media must have an external media label containing the following information:
(a) Transmitter name
(b) Transmitter Control Code (TCC)
(c) Tax year
(d) The words "Extension of Time"
(e) Record count
.14 A request for an extension of time to file is not automatically granted. Approval or denial is dependent on information provided on the Form 8809,
.15 If the first request for an extension of time to file was submitted magnetically or electronically, additional extension requests should be submitted in the same manner.
.16 If an additional extension of time is needed, a second Form 8809 and file may be submitted before the end of the initial extension period. Line 7 on the form should be checked to indicate that the original extension has been received and the additional extension is being requested.
.17 See Part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are additional questions or concerns, contact IRS/MCC.
SECTION 2. MAGNETIC TAPE, TAPE CARTRIDGE, 8MM, 4MM AND QIC (QUARTER INCH CARTRIDGE), 5 1/4- AND 3 1/2-INCH DISKETTE AND ELECTRONIC SPECIFICATIONS
.01 Tape specifications are as follows:
(a) 9 track.
(b) EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) recording mode.
(c) 1600 or 6250 BPI.
(d) A block must not exceed 32,600 tape positions and must be a multiple of 200.
(e) Record length of 200 bytes.
(f) Labeled or unlabeled tapes may be submitted.
.02 Tape cartridge specifications are as follows:
(a) Must be IBM 3480, 3490, or AS400 compatible.
(b) Must meet American National Standard Institute have the following characteristics:
(1) Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by 1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3) Cartridges will he 18-track or 36-track parallel. Indicate on the external media label if the tape cartridge is 18- or 36-track.
(4) Mode will be full function.
(5) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(6) Either EBCDIC or ASCII.
(c) A block must not exceed 32,600 tape positions and must be a multiple of 200,
(d) Record length of 200 bytes,
(e) Labeled or unlabeled tape cartridges may be submitted.
.03 8mm, 4mm, and Quarter Inch Cartridge Specifications
(a) In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(1) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(a) Created from an AS400 operating system only.
(b) 8mm (.315-inch) tape cartridges will be 2 1/2 -inch by 3 3/4, inch,
(c) The 8mm tape cartridges must meet the following specifications:
Tracks Density Capacity
1 20 (43245 BPI) 2.3 Gb (10Gb)
1 21 (45434 BPI) 5 Gb (20 Gb)
(d) Mode will be full function,
(e) Compressed data is not acceptable.
(f) Either EBCDIC (Extended Binary, Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge,
(g) A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per file or per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will indicate the sequence of the cartridge within the file 1 of 3, 2 of 3, or 3 of 3 and would appear in the header label IRSTAX.001, IRSTAX.002, and IRSTAX.003. on each cartridge of the file. The end of transmission "F" Record should be placed on the last cartridge only for files containing multiple cartridges.
(2) The gram (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following: (a) A block must not exceed 32,600 tape positions.
(b) If the use of blocked records would result in a short block all remaining positions of the block must be filled with however, the last block of the file may be filled with or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within a block (the blocking factor) must be constant in every block with the exception the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 200.
(d) Various SAVE commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e) Extraneous data following the "F" Record will result in media being returned for replacement.
(f) Records may not span blocks.
(g) No more than 250,000 documents per cartridge and per file.
(3) For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges, IRSTAX may be used as a suggested filename.
(4) For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) or even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
(5) If extraneous data follows the End of Transmission "F" Record, the file must be returned for replacement. Therefore, IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data when submitting information returns,
(6) IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
(7) 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4mm cassettes will be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4 Gb.
(e) The general specifications for 8mm cartridges will also apply to the 4mm cassettes.
(8) Various Quarter inch Cartridges (QIC) (1/4-inch) are also acceptable.
(a) QIC cartridges will be 4" by 6".
(b) QIC cartridges must meet the following specification:
Size Tracks Density Capacity
Q1C-11 4/5 4 (8000 BPI) 22Mb or 30Mb
Q1C-24 8/9 5 (8000 BPI) 45Mb or 60Mb
Q1C-120 15 15 (10000 BPI) 120Mb or 200Mb
Q1C-150 18 16 (10000 BPI) 150Mb or 250Mb
Q1C-320 26 17 (16000 BPI) 320Mb
Q1C-525 26 17 (16000 BPI) 525Mb
Q1C-1000 30 21 (36000 BPI) 1Gb
Q1C-1350 30 18 (51667 BPI) 1.3Gb
Q1C-2Gb 42 34 (40640 BPI) 2Gb
(c) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges,
.04 Diskette specifications are as follows:
(a) 5 1/4- or 3 1/2-inches in diameter.
(b) ASCII recording mode only. Additional specifications may be found in Part B, Sec. 3, of this revenue procedure.
(c) Record length of 200 bytes.
(d) Diskettes must be created using the MS-DOS operating system.
(e) Filename of IRSEOT must be used. No other filenames are acceptable. If a file will consist of more than one diskette, the filename IRSEOT will contain a three-digit extension. This extension will indicate the sequence of the diskettes within the file. For example, the first diskette will be named IRSEOY.001, the second diskette will be name IRSEOT.002, etc.
(f) Delimiter character commas (,) must not be used,
(g) Positions 199 and 200 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
.05 Bisynchronous electronic specifications include:
(a) Transmitter must have Transmitter Control Code (TCC) and a valid IRS/MCC-assigned password prior to submitting data files
(b) Access phone numbers:
4800 bps 304-264-7080
9600 bps 304-264-7040
4400 bps 304-265-7045
Note: See Part C, Bisynchronous (Mainframe) Electronic Filing Specifications, for detailed information on filing with IRS/MCC via bisynchronous protocols.
.06 IRP-BBS specifications include:
(a) Transmitter must have Transmitter Control Code (TCC).
(b) IRP-BBS access phone number is 304-264-7070.
(c) Communications software settings are:
-- No parity
-- Eight data bits
-- One stop bit
-- Full duplex
(d) Access speeds from 1200 to 28,800 bps.
Note: See Part D, IRP-BBS Electronic Filing Specifications, for detailed information on filing with IRS/MCC via IRP-BBE.
SECTION 3. RECORD LAYOUT
.01 Positions 6 through 174 of the following record should contain information about the payer for whom the extension of time to file is being requested. Do not enter transmitter information in these fields. Only one TCC may be present in a file.
Record Layout for Extension of Time
Field Position Field Title Length Description and Remarks
_____________________________________________________________________
1-5 Transmitter Control 5 Required Enter the five
digit Transmitter
Control Code Code (TCC)
issued by IRS. Only one
TCC per file is
acceptable.
6-14 Payer 9 Required Must be the
TIN valid nine-digit EIN/SSN
assigned to the payer,
Do not enter blanks,
hyphens or alpha
characters. All zeros,
ones, twos, etc. will
have the effect of an
incorrect TIN. For
foreign entities that
are not required to have
a TIN, this field may be
blank; however, the
Foreign Entity
Indicator, position 176,
must be set to "X."
15-54 Payer 40 Required. Enter the name
Name of the payer whose TIN
appears in positions 6
-14. Left justify
information,
55-94 Second Payer 40 If additional space is
Name needed, this field may
be used to continue name
line information (e.g.,
c/o First National
Bank); otherwise, enter
blanks.
95-134 Payer 40 Required. Enter the
Address payer's address. Street
address should include
number, street,
apartment or suite
number (or P.O. Box if
mail is not delivered to
a street address).
135-163 Payer City 29 Required. Enter payer
city, town, or post
office.
164-165 Payer State 2 Required. Enter payer
valid U.S. Postal
Service state
abbreviation (refer to
Part A, Sec, 18).
166-174 Payer ZIP 9 Required. Enter payer
Code ZIP code. If using five
-digit ZIP code,
left justify information
and fill unused
positions with blanks.
175 Document Indicator 1 Required. Enter the
(See Note) document you are
requesting an ex tension
of time for using the
following code;
Code Document
1 W-2
2 1098, 1099-A,
1099-B, 1099-C,
1099-DIV, 1099-G,
1099-INT, 1099
-LTC. 1099-MISC,
1099-MSA, 1099
-OID, 1099-PATR,
1099-R, 1099-S, or
W-2G
3 5498, 5498-MSA
4 1042-4
5 REMIC Documents
(1099-1NT or 1099
-OID)
Note: Do not enter any other values in this field. Submit a separate record for each document. For example, if you are requesting an extension for 1099-INT and 5498 for the same payer, submit one record with "2" coded in this field and another record with "3" coded In this field. If you are requesting an extension for 1099-DIV and 1099-MISC for the same payer, submit one record with "2" coded in this field.
176 Foreign Entity 1 Enter character "X" if the
payer is a foreign entity,
Indicator
177-198 Blank 22 Enter blanks.
199-200 Blank 22 Enter blanks. Diskette
filers may code the ASCII
carriage return/line feed
(cr/lf) characters,
_____________________________________________________________________
Extension of Time Record Layout
Transmitter Control Payer Payer Second Payer Payer Payer
Code TIN Name Name Address City
1-5 6-14 15-54 55-94 95-134 135-163
Payer Payer Document Foreign Entity Blank
State Zip Code Indicator Indicator
164-165 166-174 175 176 177-198
Blank or
CR/LF
199-200
_____________________________________________________________________
PART F. MISCELLANEOUS INFORMATION
SECTION 1. ADDRESSES FOR MARTINSBURG COMPUTING CENTER
To submit an application to file, waiver request (forms), correspondence, and magnetic files, use the following:
Mailing by U.S. Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
P.O. Box 1359, MS-360
Martinsburg, WV 25402-1359
Shipping private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program Route 9 and
Needy Road, MS-360 Martinsburg, WV 25401
To submit a magnetically filed extension of time request use the following:
Mailing by U.S. Postal Service:
IRS-Martinsburg Computing Center Information
Reporting program Attn: Extension of Time
Coordinator
P.O. Box 879, MS-360
Kearneysville, WV 25430
Shipping by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
SEC 2. TELEPHONE NUMBERS FOR CONTACTING IRS/MCC
Information Reporting program Call Site:
304-263-8700
Between 8:30 a.m. and 4:30 p.m. Eastern Time Monday through
Friday
Telecommunication Device for the Deaf (TDD):
304-267-3367
304-264-5602
Electronic Filing:
(IRP-BBS)
(Asynchronous)
304-264-7070
Mainframe Filing (Bisynchronous Filing)
4.8 Modems 304-264-7080
9.6 Modems 304-264-7040
14.4 Modems 304-264-7045
HOURS OF OPERATION-
24 HOURS A DAY
7 DAYS A WEEK
This is the end of Publication 1220 for Tax Year 1997.
IRB IRB
Box__ of__ Box__ of__
IRB IRB
Box__ of__ Box__ of__
IRB IRB
Box__ of__ Box__ of__
Internal Revenue Service Internal Revenue Service
Martinsburg Computing Center Martinsburg Computing Center
Information Reporting Program Information Reporting Program
P O Box 1359 Route 9 and Needy Road
Martinsburg WV 25402 Martinsburg WV 25401
(use this label for (use this label for truck or air U S
Postal deliveries) freight deliveries)
(Reproduce as needed)
To expedite handling, please affix this label, or a
substitute label, to your OUTSIDE shipping
container.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Index Termsfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 97-21736 (72 original pages)
- Tax Analysts Electronic Citation97 TNT 145-30