Rev. Proc. 79-17

PART A

Section 1. Purpose

.01 The purpose of this Revenue Procedure is to state the requirements for reproducing paper substitutes of the following forms:

(a) Form 1099R, Statement for Recipients of Total Distributions from Profit-Sharing, Retirement Plans, and Individual Retirement Arrangements.

(b) Form 1099-DIV, Statement for Recipients of Dividends and Distributions.

(c) Form 1099-INT, Statement for Recipients of Interest Income.

(d) Form 1099-MISC, Statement for Recipients of Miscellaneous Income.

(e) Form 1099-MED, Statement for Recipients of Medical and Health Care Payments.

(f) Form 1099-OID, Statement for Recipients of Original Issue Discount.

(g) Form 1099-PATR, Statement for Recipients (Patrons) of Taxable Distributions Received from Cooperatives.

(h) Form 1099L, U.S. Information Return for Distribution in Liquidation During Calendar Year.

(i) Form 1099F, Statement for Certain Fishing Boat Crew Members.

(j) Form 1099-BCD, Statement for Recipients of Interest on Bearer Certificates of Deposit.

(k) Form 1087-DIV, Statement for Recipients of Dividends and Distributions.

(l) Form 1087-INT, Statement for Recipients of Interest Income.

(m) Form 1087-MISC, Statement for Recipients of Miscellaneous Income.

(n) Form 1087-MED, Statement for Recipients of Medical and Health Care Payments.

(o) Form 1087-OID, Statement for Recipients of Original Issue Discount.

(p) Form W-2G, Statement for Certain Gambling Winnings.

.02 For the purpose of this Revenue Procedure, a substitute form is one which does not totally conform to the specifications set forth. Payee copies are not to be considered substitute forms.

.03 This Procedure supersedes Rev. Proc. 75-14, 1975-1 C.B. 662.

Sec. 2. Paper Substitutes for Forms 1099, 1087, and W-2G--Copy A

.01 Paper substitutes for Forms 1099, 1087 and W-2G which totally conform to the specifications contained in this procedure may be privately printed without prior approval from the Internal Revenue Service. Proposed substitutes, not conforming to these specifications, must be submitted by payers for consideration to:

     Commissioner of Internal Revenue Service

.02 Forms 1099, 1087, and W-2G are subject to annual review and possible change. Payers are cautioned, therefore, against overstocking supplies of the privately printed substitutes.

.03 Copies of the official forms for the reporting year may be obtained from most Internal Revenue offices. The Service provides only cut sheets (no carbon interleaves) of these forms.

Sec. 3. Filing on Magnetic Media

.01 The Service encourages payers or nominees (hereafter collectively referred to as payers) with computer capability to file information returns on magnetic media instead of paper forms. All forms listed in Section 1 (.01), except Forms 1099-BCD, 1099F, and W-2G, may be filed on magnetic media. Specifications for filing information returns on tape, disk, or diskette are contained in Revenue Procedures, relating to Magnetic Tape Reporting for Information Returns, Disk Pack Reporting for Information Returns, and Diskette Reporting for Information Returns. Copies of these procedures may be obtained from any Internal Revenue district office or service center. Payers or agents who want to file information returns on magnetic media must file an application, Form 4419, with the service center which normally receives the paper forms.

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

Sec. 4. Instructions for Payers

.01 Only original or ribbon copies may be filed with the Internal Revenue Service. Carbon copies and reproduced copies are not acceptable.

.02 The term "taxpayer (recipient) identifying number" for an individual means the social security number (SSN). The SSN consists of nine digits separated by hyphens as follows: 000-00-0000. For all other payees, the term "taxpayer (recipient) identifying number" means employer identification number (EIN). The EIN consists of nine digits separated by one hyphen as follows: 00-0000000.

.03 The name of the appropriate payee (i.e. person or organization whose tax identifying number has been provided) must be shown as the first entry in the area on the form provided for the payee's name and address. No descriptive information or other individual's name are to precede the payee's name.

.04 Payee name, street address, and city, state, and ZIP code information must be on separate lines. It is preferred that the city, state, and ZIP code be on the same line.

.05 The clear area to the right of the payee's name and address is available for the account designation number. This information is not required, however, special caution must be taken if an account designation number is being printed. This number must not appear in the "Recipients Identifying Number" box, the payment amount boxes, or in the box provided for the payee's name and address.

.06 The Service requests that payers type or machine print whenever possible, provide quality data entries on the forms (i.e. use black ribbon, insert data in the middle of blocks well separated from other printing and guidelines), and take other measures to guarantee a clear sharp image. Payers are not required, however, to acquire special equipment solely for the purpose of preparing these forms.

.07 On corrected returns, an "X" must be placed in the check box in the left 1/2-inch margin following the "format identifier number" (e.g., Form 1099-DIV, 91 ???). The words CORRECTED RETURN must be typed in all caps in the top 1/4 inch, right-of-center, margin. All required data blocks must be completed on a corrected return since it replaces and supersedes the information return previously filed.

.08 Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single form before they are filed with the Service.

PART B -- Substitute Forms Format Requirements

Sec. 1. General

.01 The following specifications prescribe the format requirements of Forms 1099, 1087, and W-2G--Copy A ONLY.

.02 A payer may file a substitute Form 1099, 1087, or W-2G with the Service (hereafter referred to as a substitute Copy A). Substitute forms, except Forms 1099-DIV, 1099-INT, 1087-DIV, and 1087-INT, must be exact replicas of the official forms with respect to layout and contents. Only the dimensions of the substitute form may differ and the printing of the Government Printing Office symbol must be deleted.

.03 Form 1099-DIV, 1099-INT, 1087-DIV, and 1087-INT must meet all the requirements in Sections 1.04-1.11 below except unneeded payment amount boxes may be omitted when the substitute Copy A is privately printed. If a payment box is omitted or eliminated, all remaining payment boxes must be left-justified and immediately follow the box for the "Recipient's identifying number". There must be no blank areas or nonpayment data between the "Recipient's identifying number" and the payment boxes retained. The box for each payment amount retained must contain the appropriate caption and payment identifying number shown on the official form. The payment identifying number and the payment boxes must be enclosed by 3-point rules as shown on the official forms.

.04 Color and Quality of Paper

1 Paper for Copy A must be white chemical wood bond, or equivalent, 40 pound (basis 17 X 22-1000), plus or minus 5 percent. No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached chemical woodpulp and be free from unbleached or ground woodpulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

2 Copies B (For Recipient) and C (For Payer) are provided in the official assembly solely for the convenience of the payer. Payers may choose the format, design, color and quality of the paper used for these copies.

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

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

.07 Dimensions--The official form is 8 inches wide X 32/3 inches deep, exclusive of a 1/2 inch snap stub on the left side of the form. The snap feature is not required on substitutes. If the substitute forms are in continuous or strip form, they must be burst and stripped to conform to the size specified for a single form before they are filed with the Service.

1 The width of a substitute Copy A must be a minimum of 7 inches and a maximum of 8 inches, although adherence to the size of the official form is preferred. If the width of the substitute Copy A is reduced from that of the official form, the width of each field, except the left margin and the "For Official Use Only" area, on the substitute form must be reduced proportionately. The left margin must be 1/2 inch and free of all printing other than that shown on the official form. The area marked "For Official Use Only" must be 3 inches.

2 The depth of a substitute Copy A must be a minimum of 31/3 inches and a maximum of 32/3 inches. If the depth is reduced from that of the official form, the margin area at the top of the form marked "Official Use Only" must be 1/2 inch in depth by three inches in width.

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

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

.10 Printer's Symbol--The Government Printing Office symbol must not be printed on substitute Forms 1099, 1087, or W-2G. In place thereof, the printer's Employer Identification Number should appear in the same place on such substitute forms.

.11 Other Copies--Copies B and C are included in the official assembly for the convenience of the payer. Although there is no requirement that privately printed substitute forms include these copies, Copy B will satisfy the requirements of law and regulations concerning the statement of information which is required to be furnished the payee. Copy C may be desired as a payer record/copy.

Sec. 2. Additional Instructions

.01 Arrangement of Assembly--Except as provided in paragraph .02 below, the parts of the assembly shall be arranged, from top to bottom, as follows: Copy A (Original), "For Internal Revenue Service Center", Copy B, "For Payee" (Form 1099-OID for Record Owner), Copy C, "For Payer's Record" (1087-OID for Record Owner).

.02 Additional Copies--Additional copies may be prepared by payers for states REQUIRING THE REPORT. When this is done, one such copy may be inserted between Copies A and B. Forms for delivery to state or local taxing authorities should be clearly labeled to indicate the purpose for which they are intended and should not bear the Internal Revenue Service form number of the designation, "Department of the Treasury, Internal Revenue Service".

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

     Internal Revenue Service

Sec. 3. Effects on Other Documents

This Rev. Proc. supersedes Rev. Proc. 75-14, 1975-1 C.B. 662.

[Editor's note: Exhibits A and B illustrate physical specifications of the forms discussed. These illustrations are not suitable for electronic reproduction.]