Rev. Proc. 76-39

Section 1. Purpose.

The purpose of this Revenue Procedure is to modify section 3.03 of Rev. Proc. 75-20, 1975-1 C.B. 688, and section 3.03 of Rev. Proc. 75-27, 1975-1 C.B. 725, by setting forth conditions under which a transmitter, service bureau, paying agent, or disbursing agent may sign the affidavit provided on Form 4804, Annual Summary and Transmittal of Income Tax and Information Statements Reported on Magnetic Tape or Disk Pack, on behalf of payers, and the affidavits provided on Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and Form W-3, Transmittal of Income and Tax Statements, on behalf of filers of paper documents.

Sec. 2. Background and Revised Procedures for Filing Tape Reports and Disk Reports.

Section 3.03 of Rev. Proc. 75-20 and section 3.03 of Rev. Proc. 75-27 provides that only the payer can sign the affidavit provided on Form 4804, Form 1096, and Form W-3. It has been brought to the attention of the Internal Revenue Service that the requirement of obtaining each payer's signature on the affidavit is administratively burdensome to a transmitter, service bureau, paying agent, or disbursing agent who files Forms 4804 on behalf of a group of payers reporting on magnetic tape or disk pack. This same administrative burden is also present with respect to the signing of the affidavit provided on Form 1096 and Form W-3 by the payers reporting on paper documents.

In order to relieve this administrative burden, sections 3.03 of Rev. Proc. 75-20 and of Rev. Proc. 75-27 are modified to read as follows:

.03 Form 4804, Annual Summary and Transmittal of Income, Tax, and Information Statements Reported on Magnetic Tape or Disk Pack, will be required from each payer to cover each payer's portion of the tape or disk file. The required Form 4804 must be filed with the shipment of magnetic tape or disk. If only a portion of the returns are submitted on magnetic tape or disk, include a statement that the remaining returns are being submitted in the form of paper documents. Note on the address side of the magnetic tape or disk shipments, "DELIVER UNOPENED TO THE TAPE LIBRARY."

Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or Form W-3, Transmittal of Income and Tax Statements, as appropriate, must be included in the shipment of paper documents. If only a portion of the returns are submitted on paper documents, include a statement with the Form 1096 or W-3 that the remaining returns are being filed in the form of magnetic tape or disk. Please note that Form 1096 or W-3 instructions normally apply to the filing of information returns on paper; however, filers of magnetic tape and disk must review the Form 1096 instructions and file Schedule A (Form 1096), if appropriate.

The affidavit provided on Form 4804, Form 1096, or Form W-3 must be signed by or in the name of the payer. However, the transmitter, service bureau, paying agent, or disbursing agent may sign on behalf of the payer only if all of the following conditions are met:

(a) the transmitter, service bureau, paying agent, or disbursing agent possesses the authority to sign the affidavit under an agency agreement (either oral, written, or implied) that is valid under state law; and

(b) the transmitter, service bureau, paying agent, or disbursing agent has the responsibility (either oral, written, or implied) conferred upon it by the payer to request the taxpayer identifying numbers of payees who are reported on the tape or disk pack documents or the paper documents; and

(c) the authorized transmitter, service bureau, paying agent, or disbursing agent signs the affidavit and appends the caption:

"For: [name of payer]."

The signing of the affidavit by an authorized transmitter, service bureau, paying agent, or disbursing agent on behalf of the payer will not relieve the payer of the requirements of filing a correct, complete, and timely Form 4804 and attachments, and will not relieve the payer of any penalties arising from the failure to comply with those requirements.

Sec. 3. Effect on Other Documents

This Revenue Procedure modifies Rev. Proc. 75-20 and Rev. Proc. 75-27.