Rev. Proc. 75-15

Section 1. Purpose

The purpose of this Revenue Procedure is to state the requirements of the Internal Revenue Service relating to substitutes for Form W-2, Wage and Tax Statement and Form W-2P, Statement for Recipients of Annuities, Pensions, or Retired Pay (hereinafter referred to as Forms W-2 and W-2P). The Service provides two Form W-2 formats, a six part and a four part, see Exhibit B.

Sec. 2. General Rules For Filing With The Service.

.01 Employers and payers (hereafter and where applicable collectively referred to as payers) with computer capability are encouraged to use magnetic tape for filing Forms W-2 (Copy A) and W-2P (Copy A) with the Internal Revenue Service. Since many states and localities accept Forms W-2 and W-2P on magnetic tape, savings may be obtained if similar tapes are used for filing with both the Service and state or local tax agencies. If magnetic tape is used, payers can design their own statements to be furnished to employees, pensioners, annuitants, recipients of retired pay, and recipients of disability income who are under retirement age (hereafter and where applicable collectively referred to as payees) (See Section 4). If, however, payers file information on magnetic tape only with the Service, such flexibility on forms design may not apply to the paper copy the payer submits to the states or local tax agencies. In this case, the same specifications apply to the paper form submitted to the states as those prescribed in Section 5 (unless deviations are permitted by the states).

.02 The Revenue Procedure on magnetic reporting, entitled "Magnetic Tape Reporting of Wage and Information Documents," single copies of which are available at Internal Revenue Service Centers and District Offices, contains the specifications and procedures for filing Forms W-2 (Copy A) and W-2P (Copy A) data on magnetic tape. This Revenue Procedure may be used to file Forms W-2 and W-2P data on tape directly with the Internal Revenue Service. Employers may also opt to satisfy both the Social Security Administration and the Internal Revenue Service's filing requirements by following the Unified Reporting Plan contained in the U.S. Department of Health, Education, and Welfare, Social Security Administration Publication TIB-3 (June, 1974), entitled "Magnetic Tape Reporting." Copies of this publication are available at any Internal Revenue Service Center and at the Social Security Administration, Bureau of Data Processing, Baltimore, Maryland 21235.

.03 Payers not utilizing magnetic tape must file Copy A of Form W-2 or Form W-2P with the Service on either an official form or a privately printed substitute paper form.

Sec. 3. Paper Substitutes For Forms W-2 And W-2P.

.01 Paper substitutes which conform to the specifications contained in this procedure may be privately printed without the prior approval of the Internal Revenue Service. Proposed substitutes not conforming totally to these specifications must be submitted by letter to the Commissioner of Internal Revenue, Attention: ACTS:T:C, 1111 Constitution Avenue, N.W., Washington, D.C. 20224, for consideration. These requests should contain an explanation of the specific need for the deviations and the number of Forms W-2 and/or W-2P affected. State tax agencies prefer that Forms W-2 and W-2P received from payers follow the same format as those copies payers furnish the Service; therefore, the state tax agency also should be contacted to see if format changes are permissible. For example, a number of state tax agencies prefer that the payment boxes NOT be blotted out on any of the copies contained in the Form W-2 and Form W-2P assemblies.

.02 Forms W-2 and W-2P are subject to annual review and possible changes, thus taxpayers are cautioned against overstocking supplies of privately printed substitutes.

.03 Copies of the official form for the reporting year may be obtained from any Internal Revenue Office. The Internal Revenue Service provides only cut sheet sets with no carbon interleaves.

.04 Substitute Forms W-2 and W-2P transmitted to the Internal Revenue Service should contain only data provided to payees. The forms submitted to the Service should not contain summary data or other non-payee information.

Sec. 4. Requirements For Substitute Forms Furnished To Payers--Copies B, C and 2.

.01 All payers, including those filing Copy A on magnetic tape, must furnish employees with two statements (plus a third statement if State income tax is withheld) containing the information furnished to the Internal Revenue Service. The dimensions of these copies may be expanded from the dimensions of the official form to allow space for conveying additional information such as withholding from pay for health insurance, union dues, excludable sick pay, etc. This may permit the payer to eliminate other statements or notices which would normally be furnished to payees. The maximum allowable dimensions are: (1) depth should be no more than five inches, and (2) width no more than eight inches (16 inches if a detachable stub is provided and payees are instructed to detach the added portion on Copy B).

.02 The paper for all copies should be white. The substitute Copy B (or its equal), the payee is instructed to attach to his Federal income tax return must be at least 24-pound paper (basis 17 x 22-1000), while the other copies furnished the payee should be at least 18-pound paper (basis 17 x 22-1000).

.03 Substitute forms for payees need contain only the payment boxes and captions that are applicable (in any desired sequence). Other boxes contained on the official form may be omitted, except that in all cases the employee name, address and social security number must be present. Payment boxes and captions that are applicable should be clearly identified, using where possible the same wording as on the official form. If the form contains additional data (e.g., savings bonds withholding, retirement withholding, payroll savings, etc.), there should be a special highlighting of the area pertaining to Federal and State income tax withheld and total wages, tips and other compensation.

.04 Substitute forms for payees should contain the applicable description (1) the form title "Wage and Tax Statement," "Copy B, to be filed with employee's Federal tax return," "Copy C, for employee's records" and the designation "Form W-2-Department of the Treasury--Internal Revenue Service," or (2) the form title "Statement for Recipients of Annuities, Pensions or Retired Pay," "Copy B, File with recipient's Federal tax return if tax was withheld," "Copy C, For Recipient's Records," and the designation "Form W-2P-Department of the Treasury--Internal Revenue Service." The form number and reference to Department of the Treasury--Internal Revenue Service should be omitted from Copy 2 and other copies for state or local use. Such substitutes are acceptable to the Service and the States when attached to the payee's income tax return; however, payees must be so advised.

Sec. 5. Requirements For Substitute Forms Payers Submit To The Service And To State Or Local Tax Agencies--Copies A And 1, Respectively.

.01 A payer may file a substitute Form W-2 and Form W-2P with the Service or with state or local tax agencies (hereafter referred to as a substitute Copy A or Copy 1). Specifications for Copy A or Copy 1 are identical except where indicated. The substitute forms must be an exact replicas of the official government forms with respect to layout and contents. Only the dimensions of a substitute form may differ (see Section 5.05 below) and the printing of the Government Printing Office symbol must be deleted (see Section 5.08 below). The specifications and allowable tolerances for the Copy A of substitute Forms W-2 and W-2P are provided in Exhibits A and B, respectively.

.02 Color and quality of paper.

1. Paper for substitute, Copy A to be filed with the Internal Revenue Service, must be white chemical wood writing, 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. Minimal (2%) trace amounts will be acceptable. 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. The use of coated or super-calendered papers or other papers with a glossy appearance should be avoided since these forms will be used in an OCR application.

2 Paper for the substitute form (Copy 1) filed with the state or local agency must be white and at least 18-pound (basis 17 x 22-1000) plus or minus 5 percent.

.03 Color and quality of ink--All printing must be in a high quality non-gloss black ink.

.04 Typography--Type must be substantially identical in size and shape with corresponding type on the official form.

1 On Copy A, all rules must be 1-point (0.015 inch) or 3-point (0.045 inch) as illustrated in Exhibits A and B. Vertical rules must be parallel to the left edge of the document; horizontal rules parallel to the top edge.

2 On Copy 1, filed with the state or local agency, the horizontal and vertical rules need be only 1-point (0.015 inch).

.05 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.

1 The width of substitute forms must be a minimum of 7 inches and a maximum of 8 inches, exclusive of any left or right snap-stub, although adherence to the size of the official form is preferred. If the width of the substitute form 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 must be free of all printing other than that shown on the official form and the width of the "For Official Use Only" area must be 3 inches.

2 The depth of substitute forms 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.

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

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

.08 Printer's symbol--The Government Printing Office symbol must not be placed on substitute copies of Forms W-2 and Forms W-2P. In place of the Government Printing Office symbol, the forms printer should print his Employer Identification Number on the face of Copy A. Sec. 6. Additional Instructions.

.01 Arrangement of assembly--Except as provided below, if magnetic tape is not filed with the Service, the substitute copies of the Form W-2 or Form W-2P assembly shall be arranged in the same order as the official Form W-2 or Form W-2P--Copy A first, followed sequentially by Copies 1, B, C, 2, and D. The substitute form to be filed with the Service and the substitute form to be filed by the payer with the state or local tax agency should carry the designation Copy A and Copy 1, respectively.

1 Copies 1 and 2 related to state and local taxes may be omitted from the assembly if not needed.

2 Copy D for Employer or Payer. It is not required that privately printed substitute forms contain a copy to be retained by payers although payers must be prepared to verify or replicate this information if it is requested by the Service.

3 Additional Copies--Except as provided in the arrangement of the official assemblies, additional copies which may be prepared by payers shall not be placed ahead of the copy "For employee's record," Copy C (Form W-2) or "For Recipient's record," Copy C (Form W-2P). All copies of the form must be clearly labeled to indicate the purpose for which intended.

.02 Instructions on Form W-2--Instructions similar to those contained on the face of Copies A and B and both the face and back of Copy C of the official form must appear on the corresponding copies of substitute Forms W-2.

.03 State agencies--The amounts of wages paid and employee contributions withheld under a State-Federal Agreement, entered into pursuant to Section 218 of the Social Security Act, may be shown in the spaces on Form W-2 for Federal Insurance Contribution Act Wages and Employee Tax, provided appropriate distinguishing captions are used to identify such amounts. In such cases, the identification number assigned by the Social Security Administration to the state (prefix 69) should be shown in the employer block in addition to the employer identification number assigned by the Internal Revenue Service for income tax withholding purposes.

.04 All substitute Forms W-2 and W-2P must have the tax year printed in the upper right corner inclusive of the one-fourth inch top margin.

Sec. 7. Instructions For Payers.

.01 Only originals or ribbon copies may be filed with the Service. Carbon copies and photocopies are not acceptable.

.02 The Service requests the cooperation of payers in typing or machine printing whenever possible and in providing good quality data entries on the forms; i.e., using black ribbon, inserting data in the middle of blocks, well separated from other printing and guidelines, and taking any other measures that will guarantee a clear, sharp image. However, payers are not required to acquire special equipment solely for the purpose of preparing these forms.

.03 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 W-2, 21 ???), and the words CORRECTED RETURN must be typed in all caps above the title "Wage and Tax Statements" followed by the date the correction was made. All required data blocks must be completed on a corrected return since it replaces and supersedes the return previously filed.

.04 Substitute Forms W-2 and W-2P transmitted to the Internal Revenue Service should contain only payee data and not summary data similar to that which is required on Form W-3, "Transmittal of Income and Tax Statements."

.05 Copies A (or Copies 1) of substitute Forms W-2 and W-2P prepared in continuous form must be burst and stripped to conform to the size specified for a single form before they are filed with the Service.

Sec. 8. Reproduction Proofs.

Order blanks for reproduction proofs are mailed annually to requestors of record, and on request, to other users. Printers and others wishing to obtain reproduction proofs may send their requests to the Commissioner of Internal Revenue, Attention: A:FM:P, 1111 Constitution Avenue, N.W., Washington, D.C. 20224. A charge of $0.75 per page will be made for each reproduction proof regardless of page size. Invoices will be mailed after orders have been filled.

Sec. 9. Effect On Other Documents.

This Revenue Procedure supersedes Rev. Proc. 74-20, 1974-2 C.B. 466.

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