Rev. Proc. 67-8

Revenue Ruling 63-271, C.B. 1963-2, 597, holds that a bank acting as agent for the collection of interest on evidences of indebtedness is required to file an information return on Forms 1099, U.S. Information Return for Calendar Year, and 1096, U.S. Annual Information Return, when, in the course of its trade or business, it receives payments of interest of $600 or more and pays them over to the actual owner.

Penalties apply for failure to file information returns required under the circumstances set forth in Revenue Ruling 63-271, and for failure to furnish identifying numbers on such returns, unless it is shown that such failures are due to reasonable cause.

Representatives of banking institutions have requested relief from the requirement of Revenue Ruling 63-271 to file returns and from the application of such penalties because of the many unresolved problems encountered by their banks in perfecting procedures to furnish the required information.

Therefore, relief will be granted for 1966 on a case-by-case basis when reasonable cause for failure to meet the requirements is established by banking institutions which submit statements in writing, on or before February 28, 1967, to the District Director of Internal Revenue showing that their failure to comply was due to problems or procedures which they could not solve.

See Revenue Procedure 66-26, C.B. 1966-1, 654, for similar procedures with respect to information returns for 1965.