REQUIREMENTS AND GUIDELINES FOR ANNUAL INFORMATION RETURNS

Rev. Proc. 84-24

SECTION 1. PURPOSE

The purpose of this revenue procedure is to provide requirements for the preparation of transmittal documents for annual information returns (Forms 1099, Statement for Recipients series; W-2G, Statement for Certain Gambling Winnings; and 5498, Individual Retirement Arrangement Information) and to establish guidelines for the proper use of names and taxpayer identification numbers of such transmittals.

SECTION 2. BACKGROUND

01 Information returns, whether filed on paper documents or on magnetic media, must be accompanied by transmittal documents. For magnetic media submissions, the transmittal document is Form 4804, Transmittal of Information Returns Reported by Magnetic Media. For transmittal of Forms 1099-R or W-2G on paper documents, the required transmittal document is Form W-3G, Transmittal of Certain Information Returns. For all other 1099 series returns and Forms 5498 filed on paper documents, the required transmittal is Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

02 For purposes of this revenue procedure, a transmittal document and its related information returns is a transmittal. One or more transmittals filed together is a shipment.

03 Additional procedures concerning the preparation of magnetic media returns, transmittal documents, transmittals and shipments are contained in the revenue procedures for magnetic media reporting of information returns.

04 Additional instructions concerning the preparation of paper document returns are contained in the instructions on Forms 1096 and W-3G.

SECTION 3. GENERAL GUIDELINES FOR PREPARATION AND USE OF TRANSMITTAL DOCUMENTS

01 Separate transmittals are required when a payer is filing more than one type of information return on paper documents.

02 One transmittal is required for all information returns included on magnetic media. If a transmitter is submitting information returns for more than one payer, the transmittal will be continued by attaching Forms 4802, Multiple Payer Transmittal for Magnetic Media Reporting.

03 Correction documents are not permitted on the same transmittal as original documents.

04 Separate transmittals are required if a payer files some information returns on magnetic media and other information returns on paper documents.

05 Separate transmittals are required if a payer files some information returns directly and files other returns through a service bureau or agent or files returns through several service bureaus or agents.

06 Payers, service bureaus, or agents filing information returns on paper documents may include several transmittals in a single shipment. In the case of service bureaus or agents, the shipment may come from several payers as long as each payer is clearly identified.

SECTION 4. PROVISIONS FOR MULTIPLE TRANSMITTALS

01 Multiple transmittals may be filed at the option of the payer when magnetic media information returns are prepared at multiple business locations or by different segments of the payer's organization and cannot be conveniently consolidated into a single transmittal.

02 Multiple transmittals may be filed at the option of the payer when the same type of information return is prepared on paper documents at multiple locations or by different segments of the payer's organization and cannot be conveniently consolidated into a single transmittal.

SECTION 5. PAYER'S TAXPAYER IDENTIFICATION NUMBER (TIN)

01 The same payer TIN must be used on all transmittals; i.e., the same TIN must appear on all transmittal documents and information returns filed by a paper, regardless of whether such transmittals are filed from more than one location or segment of the payer's organization.

02 The following must be used on transmittal documents and information returns:

(a) For taxable trade or business payers, the TIN used on the payer's tax returns (Exception: Sole proprietors must use their Employer Identification Number (EIN) unless they are not required to have an EIN and then they must use their Social Security Number (SSN)),

(b) For non-profit organizations, the TIN used on the payer's Form 990 return,

(c) For governmental bodies the TIN issued to the headquarters organization having financial reporting responsi bilities, and

(d) For individuals not engaged in a trade or business, their SSN.

03 The payer must use the same TIN on transmittal documents and information returns each year returns are filed.

04 A parent corporation and its subsidiary corporations are separate payer entities and must submit appropriate transmittals for each corporation under its own name and TIN. See Revenue Ruling 65-303, 1965-2 C.B. 434.

05 Payer TINs on the information returns filed with the Internal Revenue Service must be identical to those on the statements issued by the payers to recipients of such payments.

SECTION 6. PAYER'S NAME AND ADDRESS

01 The payer must use the same name each year on transmittal documents and information returns. The name must be consistent with the name contained on the income tax return, exempt organization return, or other return filed under the payer's TIN (see Section 5 above).

02 When multiple transmittals are filed because information returns are prepared at different business locations or by different segments of the payer's organization, the payer must provide two name lines on the transmittal document.

(a) The first name line of the payer contains the primary name of the payer entity (see Section 6.01 above). For governmental bodies, the primary name is that of the federal, state, or local agency.

(b) The second name line must identify the specific business locations or segment of the organization preparing the transmittal document and information return and must be consistent each year. (The second name line will be helpful to payees in identifying the source of payment and will be helpful to payers in resolving questions on transmittals referred to them by the Service).

03 The following examples illustrate the name, address, and TIN to be used on multiple transmittal documents and information returns by payers.

     (a) Able Industries

05 The following examples illustrate the name, address, and TIN to be used by sole proprietors.

     (a) Person with a dba name, who has an EIN:

SECTION 7. TRANSMITTAL BY SERVICE BUREAUS AND AGENTS

01 A service bureau or agent must prepare transmittals using the same procedures as payers.

02 A service bureau or agent preparing information returns for more than one payer or magnetic media must prepare a Form 4804 and attach a separate Form 4802 continuation sheet for each payer. The revenue procedures on magnetic media submissions contain further instructions for filing these transmittal documents and related information returns.

03 When service bureaus or agents file paper document transmittal Forms 1096 or W-3G on behalf of payers, the following requirements apply:

(a) The payer's TIN, name, and address appearing on transmittal documents and information returns must be that of the payer and not that of the service bureau.

(b) The service bureau or agent's name and address may be included on paper transmittal documents and information returns if: (1) its name and address are clearly identified, (2) it has the authority to sign and signs the transmittal document, and (3) the payer wants the Service to contact the agent on questions concerning the transmittal. To do this the service bureau or agent will substitute its name and address for the payer's name and address beginning with the second name line. In this case, the second name line should begin with the abbreviation "c/o". For example, the XYZ Bank prepares Form 1099-DIV returns for M Corporation. The name, address and TIN on Form 1096 should be:

     M Corporation

SECTION 8. SERVICE CONTRACTS WITH PAYERS

01 The Service will direct inquiries related to transmittal documents and information returns to the payer whose name and TIN are on the documents. When multiple transmittals are filed (see Section 5.02), inquiries must include the second name line and address to enable the payer to identify the location or segment of the organization in order to resolve the inquiry.

02 When appropriate, the Service will direct inquires to the service bureau or agent that prepared and transmitted the return (see Section 7.03). If the inquiry is not resolved, it will then be referred by the Service to the payer as provided in Section 8.01.

03 The preparation and filing of multiple transmittal documents with information returns by different locations and segments of the payer's organization does not relieve the payer of the liability for any penalties for not filing a correct, complete, and timely return on the appropriate transmittal documents, Forms 1096, 4804, and/or W-3G. The sum of all transmittals by the components of the organization are the responsibility of the trade or business as one entity.

SECTION 9. EFFECTIVE DATE

This revenue procedure is effective beginning with shipments and transmittals due after December 31, 1983, for payments during 1983.

SECTION 10. EFFECT ON OTHER DOCUMENTS

Rev. Procs. 63-29, 1963-2 C.B. 768, and 66-48, 1966-2 C.B. 1256, are superseded.