IRS RELEASES ELECTRONIC AND MAGNETIC MEDIA FILING REQUIREMENTS.
Rev. Proc. 98-35; 1998-1 C.B. 1061
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Index Termsfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 98-16263 (87 original pages)
- Tax Analysts Electronic Citation98 TNT 101-11
Superseded by Rev. Proc. 99-29
Rev. Proc. 98-35
Use this revenue procedure to prepare Tax year 1998 information returns for submission to Internal Revenue Service (IRS) using any of the following:
-- Magnetic Tape
-- Tape Cartridge
-- 8mm, 4mm, and Quarter Inch Cartridges
-- 5 1/4-inch Diskette
-- 3 1/2-inch Diskette
-- Electronic Filing
-- (Bisynchronous)
-- (Asynchronous)
CAUTION TO FILERS:
Format changes to accommodate Year 2000 are included in this publication for TY 1998, calendar year 1999, as well as a significant change in record size from 420 positions to 750 positions.
To be in compliance with Year 2000 changes, the current bisynchronous electronic filing communications package will be changed next year.
Please read this publication carefully. Persons or businesses required to file information returns magnetically or electronically may be subject to penalties for failure to file or include correct information if they do not follow the instructions in this revenue procedure.
TABLE OF CONTENTS
PART A. GENERAL
Section 1. Purpose
Section 2. Nature of Changes -- Current Year (Tax Year 1998)
Section 3. Where to File and How to Contact the IRS, Martinsburg
Computing Center
Section 4. Filing Requirements
Section 5. Form 8508, Request for Waiver from Filing Information
Returns on Magnetic Media
Section 6. Vendor List
Section 7. Form 4419, Application for Filing Information Returns
Magnetically/Electronically
Section 8. Test Files
Section 9. Filing of Information Returns
Magnetically/Electronically and Retention Requirements
Section 10. Due Dates
Section 11. Extensions of Time
Section 12. Processing of Information Returns
Magnetically/Electronically
Section 13. Corrected Returns
Section 14. Taxpayer Identification Number (TIN)
Section 15. Effect on Paper Returns and Statements to Recipients
Section 16. Combined Federal/State Filing Program
Section 17. Definition of Terms
Section 18. State Abbreviations
Section 19. Major Problems Encountered
PART B. MAGNETIC MEDIA SPECIFICATIONS
Section 1. General
Section 2. Tape Specifications
Section 3. Tape Cartridge Specifications
Section 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications
Section 5. 5 1/4-inch and 3 1/2-inch Diskette Specifications
Section 6. Transmitter "T" Record -- General Field Descriptions
Section 7. Transmitter "T" Record -- Record Layout
Section 8. Payer "A" Record -- General Field Descriptions
Section 9. Payer "A" Record -- Record Layout
Section 10. Payee "B" Record -- General Field Descriptions and
Record Layouts
(1) Payee "B" Record -- Record Layout Positions 544-750 for
Forms 1098, 1098-E, and 5498-MSA
(2) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1098-T
(3) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-A
(4) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-B
(5) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-C
(6) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-DIV
(7) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-G
(8) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-INT
(9) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-LTC
(10) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-MISC
(11) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-MSA
(12) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-OID
(13) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-PATR
(14) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-R
(15) Payee "B" Record -- Record Layout Positions 544-750 for
Form 1099-S
(16) Payee "B" Record -- Record Layout Positions 544-750 for
Form 5498
(17) Payee "B" Record -- Record Layout Positions 544-750 for
Form W-2G
Section 11. End of Payer "C" Record -- General Field Descriptions
and Record Layout
Section 12. State Totals "K" Record -- General Field Descriptions
and Record Layout
Section 13. End of Transmission "F" Record -- General Field
Descriptions and Record Layout
PART C. BISYNCHRONOUS (MAINFRAME) ELECTRONIC FILING SPECIFICATIONS
Section 1. General
Section 2. Electronic Filing Approval Procedure
Section 3. Test Files
Section 4. Electronic Submissions
Section 5. Transmittal Requirements
Section 6. IBM 3780 Bisynchronous Communication Specifications
Section 7. Bisynchronous Electronic Filing Record Specifications
PART D. ASYNCHRONOUS (IRP-BBS) ELECTRONIC FILING SPECIFICATIONS
Section 1. General
Section 2. Electronic Filing Approval Procedure
Section 3. Test Files
Section 4. Electronic Submissions
Section 5. Transmittal Requirements
Section 6. Information Reporting Program-Bulletin Board System
(IRP-BBS) Specifications
Section 7. IRP-BBS First Logon Procedures
PART E. MAGNETIC/ELECTRONIC SPECIFICATION FOR EXTENSIONS OF TIME
Section 1. General
Section 2. Magnetic Tape, IBM 3480/3490, Tape Cartridge, 8mm, 4mm,
and QIC (quarter in cartridge), 5 1/4 -and 3 1/2-inch
Diskette, and Electronic Specifications
Section 3. Record Layout
PART F. MISCELLANEOUS INFORMATION
Section 1. Addresses for Martinsburg Computing Center
Section 2. Telephone Numbers for Contacting IRS/MCC
PART A. GENERAL
Revenue procedures are generally revised annually to reflect legislative and form changes. Comments concerning this revenue procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Martinsburg Computing Center
Attn: IRB, Information Support Section
P. O. Box 1359
Martinsburg, WV 25402
SECTION 1. PURPOSE
.01 The purpose of this revenue procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W-2G magnetically or electronically, which includes 1/2-inch magnetic tape; IBM 3480, 3490 or AS400 compatible tape cartridges (including 8mm) or 5 1/4 and 3 1/2-inch diskettes with IRS. IRS/MCC has discontinued processing 8-inch diskettes. This revenue procedure must be used for the preparation of Tax Year 1998 information returns and information returns for tax years prior to 1998 that are required to be filed. This revenue procedure must be used to prepare current and prior year information returns filed beginning January 1, 1999, and received by IRS/MCC or postmarked by December 15, 1999. Specifications for filing the following forms are contained in this revenue procedure.
(a) Form 1098, Mortgage Interest Statement.
(b) Form 1098-E, Student Loan Interest Statement
(c) Form 1098-T, Tuition Payments Statement
(d) Form 1099-A, Acquisition or Abandonment of Secured
Property
(e) Form 1099-B, Proceeds From Broker and Barter Exchange
Transactions
(f) Form 1099-C, Cancellation of Debt
(g) Form 1099-DIV, Dividends and Distributions
(h) Form 1099-G, Certain Government Payments
(i) Form 1099-INT, Interest Income
(j) Form 1099-LTC, Long-Term Care and Accelerated Death
Benefits
(k) Form 1099-MISC, Miscellaneous Income
(l) Form 1099-MSA, Distributions From Medical Savings Accounts
(m) Form 1099-OID, Original Issue Discount
(n) Form 1099-PATR, Taxable Distributions Received From
Cooperatives
(o) Form 1099-R, Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc.
(p) Form 1099-S, Proceeds From Real Estate Transactions
(q) Form 5498-IRA Contribution Information
(r) Form 5498-MSA, Medical Savings Account Information
(s) Form W-2G, Certain Gambling Winnings
.02 Specifications for filing Forms W-2 on magnetic media are available from the Social Security Administration (SSA) only. Filers can call 1-800-SSA-1213 to obtain the phone number of the SSA Magnetic Media Coordinator for their area.
.03 IRS/MCC does not process Forms W-2. Paper and/or magnetic media for Forms W-2 must be sent to SSA. IRS/MCC does, however, process waiver requests (Form 8508), extension of time to file requests (Form 8809) for Forms W-2 and requests for extension of time to provide the employee copies of Forms W-2.
.04 Generally, the box numbers on the paper forms correspond with the amount codes used to file magnetically/electronically; however, if discrepancies occur, the instructions in this revenue procedure govern.
.05 This revenue procedure also provides the requirements and specifications for magnetic media or electronic filing under the Combined Federal/State Filing Program.
.06 The following revenue procedures and publications provide more detailed filing procedures for certain other information returns.
(a) 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" provides specific instructions on completing and submitting information returns to IRS.
(b) Rev. Proc. 84-33, 1984-1 C.B. 502, regarding the optional method for agents to report and deposit backup withholding.
(c) Publication 1179, Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, and W-2G.
(d) Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on Magnetic Tape and 5 1/4- or 3 1/2-inch Diskettes.
(e) Publication 1187, Specifications for Filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, Electronically or on Magnetic Tape, and 5 1/4- or 3 1/2-inch Diskettes.
(f) Publication 1245, Specifications for Filing Form W-4, Employee's Withholding Allowance Certificate, Magnetically or Electronically.
(g) Rev. Proc. 98-25, specifications set forth for the magnetic or electronic filing of 1999 Form 8851, Summary of Medical Savings Accounts, Magnetically/Electronically.
.07 This revenue procedure supersedes Rev. Proc. 97-34 published as Publication 1220 (Rev. 7-97), Specifications for Filing Forms 1098, 1099, 5498, and W-2G Magnetically or Electronically.
.08 Refer to Part A, Sec. 17, for definitions of terms used in this publication.
SECTION 2. NATURE OF CHANGES--CURRENT YEAR (TAX YEAR 1998)
.01 Legislative changes for Tax Year 1998 necessitated major changes in the record format for information returns filed magnetically/electronically. There are two new forms for Tax Year 1998, the Form 1098-E, Student Loan Interest Statement, and Form 1098-T, Tuition Payments Statement. However, for Tax Year 1998, Form 1098, Form 1098-T is not required to be reported magnetically. Additional fields have been added to some of the existing records. IRS/MCC has redesigned the record layouts and expanded record lengths from 420 positions to 750 positions for the Payer "A" Record, the Payee "B" Record, the End of Payer "C" Record, the State Totals "K" Record, and the End of Transmission "F" Record. In addition, a Transmitter "T" Record has been added as the first record on the file. This record will contain transmitter information from the Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically. The record changes make it imperative for filers to read this publication in its entirely. Failure to comply with the new record formats will result in the media being returned to the filer.
.02 In previous years, new or revised information in the publication has been highlighted by the use of italics. Due to the complete change in record formats, italics will not be used in this publication. Filers are encouraged to read the entire publication.
.03 Within the next few years, IRS/MCC will discontinue processing 5 1/4-inch diskettes as an acceptable form of media. Filers are encouraged to explore optional types of media or methods for submitting information returns to IRS/MCC. The Information Reporting Program-Bulletin Board System (IRP-BBS) is a highly recommended alternative to diskette filing.
SECTION 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, MARTINSBURG COMPUTING CENTER
.01 All information returns filed magnetically or electronically are processed at IRS/MCC. Files containing information returns, requests for IRS magnetic media and electronic filing information, undue hardship waivers, and requests for extensions of time to file returns or to furnish the statements to recipients are to be sent to the following addresses:
If by Postal Service: or If by truck or air freight:
IRS-Martinsburg Computing Center IRS-Martinsburg Computing
Center
Information Reporting Program Information Reporting
Program
P. O. Box 1359 Route 9 and Needy Road
Martinsburg, WV 25402-1359 Martinsburg, WV 25401
.02 Send a magnetically filed extension of time request to one of the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879
Kearneysville, WV 25430
If by truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
.03 Telephone inquiries for the Information Reporting Call Site may be made between 8:30 a.m. and 4:30 p.m. Eastern time, Monday through Friday.
.04 The telephone numbers for magnetic media inquiries or electronic submissions are:
304-263-8700 - Call Site - Part A, Sec 3.10
Asynchronous filing
304-264-7070 - IRP-BBS (Information Reporting Program -
Bulletin Board System) - Part D
Bisynchronous filing
(Mainframe filing)
304-264-7080 - 4.8 Modems - Part C
304-264-7040-9.6 Modems - Part C
304-264-7045 - 14.4 Modems - Part C
304-267-3367 - TDD (Telecommunication Device for the Deal)
304-264-5602 - Fax Machine
(These are not toll-free telephone numbers.)
TO OBTAIN FORMS:
1-800-TAX-FORM (1-800-829-3676)
304-264-7070 - IRP-BBS access to forms
http://www.irs.ustreas.gov - INTERNET access to forms
.05 The 1998 "Instructions for Forms 1099, 1098, 5498, and W- 2G" have been included in the Publication 1220 for transmitter convenience. The Form 1096 is used only to transmit Copy A of paper Forms 1099, 1098, 5498, and W-2G. If filing paper returns, follow the mailing instructions on the Form 1096 and submit the paper returns to the appropriate IRS Service Center.
.06 Requests for paper Forms 1096, 1098, 1099 and W-2G, and publications related to magnetic media/electronic filing should be made by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829- 3676).
.07 Questions pertaining to magnetic media filing of Forms W-2 must be directed to the Social Security Administration (SSA). Filers can call 1-800-SSA-1213 to obtain the phone number of the SSA Magnetic Media Coordinator for their area.
.08 Payers should not contact IRS/MCC if they have received a penalty notice and need additional information, or are requesting an abatement of the penalty. A penalty notice contains an IRS representative's name and/or phone number for contact purposes; or, the payer may be instructed to respond in writing to the address provided. IRS/MCC does not issue penalty notices and does not have the authority to abate penalties. For penalty information, refer to the Penalty section of the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G."
.09 A taxpayer or authorized representative may request a copy of a tax return, including Form W-2 filed with a return, by submitting Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800-829- 3676).
.10 The IRS Centralized Call Site answers both magnetic media and tax law questions relating to the filing of information returns (Forms 1096, 1098, 1099, 5498, 8027, W-2G, 1042-S, and W-4). The IRS/MCC Call Site answers tax law and paper filing related questions about Forms W-2 and W-3, as well as handling inquiries dealing with backup withholding due to missing and incorrect taxpayer identification numbers. The Call Site is located at IRS/MCC and operates in conjunction with the Information Reporting Program. The Call Site provides service to the payer community (financial institutions, employers, and other transmitters of information returns). Recipients of information returns (payees) should continue to contact 1-800-829-1040 or other numbers specified in the tax return instructions with any questions on how to report information on their tax returns.
The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700 or Telecommunications Device for the Deaf (TDD) 304-267-3367. These are toll calls. Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high demand for assistance at the end of January and February, it is advisable to call as soon as possible to avoid these peak filing seasons.
SECTION 4. FILING REQUIREMENTS
.01 The regulations under section 6011(e)(2)(A) of the Internal Revenue Code provide that, any person, including a corporation, partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns magnetically/electronically. The 250 /*/ or more requirement applies separately for each type of return and also to each type of corrected return.
/*/ Even though as many as 249 information returns may be submitted on paper to the Internal Revenue Service. IRS encourages filers to transmit information returns magnetically or electronically.
.02 All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN) [Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number (ATIN)]. For example, if a corporation with several branches or locations uses the same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly.
.03 Payers who are required to submit their information returns on magnetic media may choose to submit their documents by electronic filing. Payers who submit their information returns electronically are considered to have satisfied the magnetic media filing requirements.
.04 IRS/MCC has two methods by which payers may submit their files electronically. Bisynchronous (mainframe) electronic filing, which can be found in Part C of this publication, or Asynchronous (Information Reporting Program-Bulletin Board System), which is in Part D. An overview of some features provided on the IRP-BBS are as follows:
-- Electronic filing of information returns to the IRS using dial-up modems
-- Return notification of the acceptability of the data transmitted within 24 to 48 hours
-- Electronic communication with IRS and SSA bulletin board systems
-- Access to shareware
-- Access to forms and publications relating to the Information Reporting Program
-- News about the latest changes and updates that affect the Information Reporting Program at IRS
-- Answers to messages and questions left on the bulletin board
-- Available for public use and can be reached by dialing 304-264-7070
-- IRP-BBS is accessible 24 hours a day, 7 days a week. Routine maintenance is performed daily, at approximately 7:00 a.m. Eastern Time.
-- Questions, comments, or suggestions can be directed to the Systems Operator (SYSOP) through IRP-BBS.
.05 The following requirements apply separately to both originals and corrections filed magnetically/electronically:
1098 250 or more of any of these forms require magnetic media
1098-E or electronic filing with IRS. These are stand alone
1098-T /*/ alone documents and are not to be aggregated for purposes
1099-A of determining the 250 threshold. For example, if you
1099-B must file 100 Forms 1099-B and 300 Forms 1099-INT, Forms
1099-C 1099-B need not be filed magnetically or electronically
1099-DIV since they do not meet the threshold of 250. However,
1099-G Forms 1099-INT must be filed magnetically or
1099-INT electronically since they meet the threshold of 250.
1099-LTC
1099-MISC
1099-MSA
1099-OID
1099-PATR
1099-R
1099-S
5498
5498-MSA
W-2G
/*/ For Tax Year 1998, Form 1098-T may be reported on paper
regardless of the 250 threshold.
.06 The above requirements do not apply if the payer establishes hardship (see Part A, Sec. 5).
SECTION 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA
.01 If a payer is required to file on magnetic media but fails to do so (or fails to file electronically, in lieu of magnetic media filing) and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For penalty information, refer to the Penalty section of the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G.")
.02 If payers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC.
.03 Even though a payer may submit as many as 249 corrections on paper, IRS encourages magnetically or electronically submitted corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more magnetically or electronically. However, if a waiver for original documents is approved, any corrections for the same type of returns will be covered under this waiver.
.04 Generally, only the payer may sign the Form 8508. A transmitter may sign if given power of attorney; however, a letter signed by the payer stating this fact must be attached to the Form 8508.
.05 A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers.
.06 All information requested on the Form 8508 must be provided to IRS for the request to be processed.
.07 The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Payers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.
.08 Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original form.
.09 Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns.
.10 File Form 8508 for the W-2 series of forms with IRS/MCC, not SSA.
.11 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth in the regulations under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.
.12 If a waiver request is approved, the transmitter should keep the approval letter on file. The transmitter should not send a copy of the approved waiver to the service center where the paper returns are filed.
.13 An approved waiver from filing information returns on magnetic media does not provide exemption from all filing. The payer must timely file information returns on acceptable paper forms with the appropriate service center.
.14 Desert Storm/Operation Joint Guard (OJG) [See Note] (Bosnia Region) Contributions - If a payer is required to file a Form 5498 magnetically/electronically, the payer may request an automatic waiver to file Forms 5498 on paper for participants of Desert Storm or Operation Joint Guard. The payer should clearly mark Desert Storm or Operation Joint Guard on the waiver request form.
Note: Military personnel under Operation Joint Guard (OJG) will be treated the same as military personnel under Operation Joint Endeavor (OJE) for purposes of Pub. L. 104-117 and Notice 96-34, 1996-1 C.B. 379.
SECTION 6. VENDOR LIST
.01 IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. The Vendor List (Pub. 1582) contains the names of service bureaus that will produce files on the prescribed types of magnetic media or via electronic filing. It also contains the names of vendors who provide software packages for payers who wish to produce magnetic media or electronic files on their own computer systems. This list is compiled as a courtesy and in no way implies IRS/MCC approval or endorsement.
.02 If filers meeting the filing requirements engage a service bureau to prepare media on their behalf, the filers should be careful not to report duplicate data, which may cause penalty notices to be generated.
.03 The Vendor List may be updated in print every other year. The most recently printed copy will be available by contacting IRS/MCC at (304) 263-8700 or by way of a letter (see Part A, Sec. 3). The copy of the Vendor List on the Information Reporting Program-Bulletin Board System is updated whenever changes or new information is received (Refer to Part D).
.04 A vendor, who offers a software package, has the ability to produce magnetic media for customers, or has the capability to electronically file information returns, and would like to be included on the list, must submit a written request to IRS/MCC. The request should include:
(a) Company name
(b) Address (include city, state, and ZIP code)
(c) Telephone number (include area code)
(d) Contact person
(e) Type(s) of service provided (e.g., service bureau and/or software)
(f) Type(s) of media offered (e.g., magnetic tape or tape cartridge, 5 1/4- or 3 1/2-inch diskettes, or electronic filing)
(g) Type of return
SECTION 7. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 Transmitters are required to submit Form 4419, Application for Filing Information Returns Magnetically/Electronically, to request authorization to file information returns with IRS/MCC. A single Form 4419 should be filed no matter how many types of returns the transmitter will be submitting magnetically/electronically. For example, if a transmitter plans to file Forms 1099-INT, one Form 4419 should be submitted. If, at a later date, another type of form (Forms 1098, 1099, 5498 and W-2G) is to be filed, the transmitter does not need to submit a new Form 4419.
EXCEPTIONS
An additional Form 4419 is required for filing each of the following types of returns: Forms 1042-S, 8027, and W-4.
FORM TITLE EXPLANATION
____________________________________________________________________
1042-S Foreign Person's U.S. Payments subject to withholding
Source Income Subject under Chapter 3 of the Code,
to Withholding including interest, dividends,
royalties, pensions and annuities,
gambling winnings and compensation
for personal services.
8027 Employer's Annual Receipts from operations where
Information Return tipping is customary. Used by the
of Tip Income and employer to report employee's tips
Allocated Tips or allocated tips.
W-4 Employee's Withholding Forms received during the quarter
(See Allowance Certificate from employees quarter from
Note) employees still employed at the
end of the quarter who claim the
following:
(a) More than 10 withholding
allowances or
(b) Exempt status and wages
normally would be more than
$200 a week.
Note: Employers are not required to send other Forms W-4 unless
notified to do so by the IRS.
.02 Magnetic tape, tape cartridge, diskette, and electronically-filed returns may not be submitted to IRS/MCC until the application has been approved. Please read the instructions on the back of Form 4419 carefully. A Form 4419 is included in the Publication 1220 for the filer's use. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800- 829-3676). The form is also available on IRP-BBS at 304-264-7070 or on Internet at http://www.irs.ustreas.gov.
.03 Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval letter. The TCC must be coded in the Transmitter "T" Record. If a transmitter uses more than one TCC to file, each TCC must be reported on separate media or in separate transmissions if filing electronically.
.04 Annually, a Publication 1220 containing the current revenue procedure, forms, and instructions will be sent to the attention of the contact person indicated on Form 4419.
.05 If any of the information (name, TIN or address) on the Form 4419 changes, please notify IRS/MCC in writing so the IRS/MCC database can be updated. However, a change in the method by which information returns are being submitted is not information which needs to be updated (i.e., tape to disk, disk to BBS). The transmitter should include the TCC in all correspondence.
.06 Form 4419 can be submitted any time during the year; however, it must be submitted to IRS/MCC at least 30 days before the due date of the return(s) for current year processing. For documents to be filed electronically using IBM 3780 bisynchronous protocols, Form 4419 must be submitted at least 45 days prior to the due date of the returns (See Part C, Sec. 2). This will allow IRS/MCC the minimum amount of time necessary to process and respond to applications. In the event that computer equipment or software is not compatible with IRS/MCC, a waiver may be requested to file returns on paper documents.
.07 IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all payers.
.08 If a payer's files are prepared by a service bureau, the payer may not need to submit an application to obtain a TCC. Some service bureaus will produce files, code their own TCC on the media, and send it to IRS/MCC for the payer. Other service bureaus will prepare magnetic media and return the media to the payer for submission to IRS/MCC. These service bureaus may require the payer to obtain a TCC to be coded in the Transmitter "T" Record. Payers should contact their service bureaus for further information.
.09 Once a transmitter is approved to file magnetically or electronically, it is not necessary to reapply each year unless:
(a) The payer has discontinued filing magnetically or electronically for two years; the payer's TCC may have been reassigned by IRS/MCC. Payers, who are aware that the TCC assigned will no longer be used, are requested to notify IRS/MCC so these numbers may be reassigned; or
(b) The payer's magnetic media files were transmitted in the past by a service bureau using the service bureau's TCC, but now the payer has computer equipment compatible with that of IRS/MCC and wishes to prepare his or her own files. The payer must request a TCC by filing Form 4419.
.10 One Form 4419 may be submitted regardless of how many types of media or methods are used to file the return. Multiple TCCs will only be issued to payers with multiple TINs. Only one TCC will be issued per TIN unless the filer has checked the application for the following forms in addition to the Forms 1099; Form 1042-S, Form 8027, and/or Form W-4. A separate TCC will be assigned for each of these forms.
.11 In accordance with Regulations section 1.6041-7(b), payments by separate departments of a health care carrier to providers of medical and health care services may be reported on separate returns on magnetic media. In this case, the headquarters will be considered the transmitter, and the individual departments of the company filing reports will be considered payers. A single Form 4419 covering all departments filing on magnetic media should be submitted. One TCC may be used for all departments.
.12 Approval to file does not imply endorsement by IRS/MCC of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor.
SECTION 8. TEST FILES
.01 IRS/MCC does not require test files, except for filers wishing to participate in the Combined Federal/State Filing Program (See Part A, Sec. 16, for further information concerning the Combined Federal/State Filing Program).
.02 IRS/MCC encourages first-time magnetic media or electronic filers to submit a test. The test file must consist of a sample of each type of record:
(a) Transmitter "T" Record (all fields marked required must include transmitter information)
(b) Payer "A" Record (must not be fictitious data)
(c) Multiple Payee "B" Records (at least 11 "B" Records per each "A" Record)
(d) End of Payer "C" Record
(e) State Totals "K" Record, if participating in the Combined Federal/State Filing Program
(f) End of Transmission "F" Record (See Part B for record formats.)
.03 Use the Test Indicator "T" in Field Position 28 of the "T" Record to show this is a test file.
.04 IRS/MCC will check the file to ensure it meets the specifications of this revenue procedure. For current filers, sending a test file will provide the opportunity to ensure their software reflects any programming changes. If unable to submit a magnetic or electronic test file, a hard copy printout that shows a sample of each record type (T, A, B, C, and F) may be submitted. The hard copy print test is not acceptable for Combined Federal/State Filing approval.
.05 Tests should be sent to IRS/MCC between November 1 and December 15. The test file must be received at MCC by December 15 in order to be processed. Filers may begin submitting test tapes and diskettes after October 1; however, the data will not be processed until on or after November 1.
.06 For tests filed electronically, the transmitter must send the signed Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, the same day the transmission is made. For tests filed on magnetic tape, tape cartridge, 8mm, 4mm, and quarter inch cartridge, 5 1/4- and 3 1/2-inch diskette, the transmitter must include the signed Form 4804 in the same package with the corresponding magnetic media. Mark the "TEST" box in Block 1 on the form. Also, mark "TEST" on the external media label.
If submitting a hard copy printout, mark the printout as "TEST" and include name, telephone number, and address of a person who can be contacted to discuss its acceptability.
.07 IRS/MCC will send a letter of acknowledgment to indicate the test results. Unacceptable magnetic media files, along with documentation identifying the errors, will be returned. Resubmission of test files must be received by IRS/MCC no later than December 15.
.08 Successfully processed media will not be returned to filers.
SECTION 9. FILING OF INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY AND RETENTION REQUIREMENTS
.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), or a computer-generated substitute, must accompany all magnetic media shipments. For electronic transmissions, the Form 4804 and Form 4802, if applicable, must be sent the same day as the electronic transmission. Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), is a continuation of Form 4804 and should only be used if the filer is reporting more than five types of returns and/or more than five payers. Form 4802 is not a stand-alone form; it can only accompany Form 4804.
.02 IRS/MCC allows for the use of computer-generated substitutes for Form 4804/4802. The substitutes must contain all information requested on the original forms including the affidavit and signature line. Photocopies are acceptable but an original signature is required. When using computer-generated forms, be sure to mark very clearly which tax year is being reported. This will eliminate a phone communication from IRS/MCC to question the tax year.
.03 A transmitter may report for any combination of payers and/or documents in a submission. Each file must begin with a "T" Record and end with an "F" record for the end of a transmission. For example, if reporting Forms 1099-INT for Bank A, Forms 1099-DIV for Bank B, and Forms 1098 for Bank C, three separate tapes or diskettes need not be created. All three banks and all types of documents can be coded within a file on one tape or diskette as long as each bank or type of return has a separate "A" Record. Multiple tapes or diskettes can be sent in one package. For each separate type of media, the first record on the file must be the Transmitter "T" Record. A Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must be submitted for every Transmitter "T" Record. Filers must include Form 4804, 4802, or computer- generated substitute with their shipment.
.04 Multiple types of media may be submitted in a shipment. However, submit a separate Form 4804 for each type of media.
.05 Current and prior year data may be submitted in the same shipment; however, each tax year must be on separate media, and a separate Form 4804 must be prepared to clearly indicate each tax year.
.06 Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to IRS/MCC no earlier than January 1 of the year the return is due.
.07 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents must not be filed. This may result in erroneous penalty notices.
.08 Form 4804 may be signed by the payer or the transmitter, service bureau, paying agent, or disbursing agent (all hereafter referred to as agent), on behalf of the payer. Failure to sign the affidavit on Form 4804 may delay processing or could result in the files being returned unprocessed. An agent may sign the Form 4804 if the agent has the authority to sign the affidavit under an agency agreement (either oral, written, or implied) that is valid under state law and adds the caption "FOR: (name of payer)."
.09 Although an authorized agent may sign the affidavit, the payer is responsible for the accuracy of the Form 4804 and the returns filed. The payer will be liable for penalties for failure to comply with filing requirements.
.10 A self-adhesive external media label, created by the filer, must be affixed to each tape and diskette. (IRS no longer provides self-adhesive labels for this purpose.) For instructions on how to prepare an external media label, refer to Notice 210 in the forms section. If diskettes are used, and the operating system is not MS- DOS compatible, the operating system and hardware information must be provided. Failure to provide this information may result in the diskettes being returned to the filer.
.11 On the outside of the shipping container, affix or attach a label which reads IRB Box __of__ reflecting the number of containers in the shipment. (Filers can create a label with this information or cut out one of the labels on the special label page provided in this publication.) If there is only one container, mark the outside as Box 1 of 1. For multiple containers, include the sequence for example. Box 1 of 3, 2 of 3, 3 of 3).
.12 When submitting files include the following:
(a) A signed Form 4804;
(b) Form 4802, if applicable;
(c) External media label (created by filer) affixed to magnetic media;
(d) IRB Box __of__ outside label.
Note: See Parts C and D for Electronic Submission Requirements.
.13 If returns from different locations (using the same name and TIN) are submitted on the same file, IRS encourages the filer to consolidate each type of information return under one "A" Record. For example, all "B" Records for the same type of return should be together under one "A" Record and followed by the End of Payer "C" Record.
.14 IRS/MCC will not pay for or accept "Cash-on-Delivery" or "Charge to IRS" shipments of tax information that an individual or organization is legally required to submit.
.15 Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at least 3 years from the reporting due date, with the exception of Form 1099--C. A financial entity must retain a copy of Form 1099-C, Cancellation of Debt, or have the ability to reconstruct the data required to be included on the return, for at least 4 years from the date such return is required to be filed. Whenever backup withholding is imposed, a 4 year retention is required.
SECTION 10. DUE DATES
As a result of due dates for Tax Year 1998 falling on weekends in 1999, the information returns, the recipient copies, and the participant copies will be treated as timely if filed or furnished on or before the following dates:
Forms 1098, 1099 and W-2G
Recipient Copy - February 1, 1999
IRS Copy - March 1, 1999
Forms 5498 and 5498-MSA
Participant Copy - June 1, 1999
IRS Copy - June 1, 1999
(Participants Copy Form 5498-for fair market value of account and for Education IRA Contributions-February 1, 1999)
.01 The due dates for filing paper returns with IRS also apply to magnetic media or electronic filing. Filing of information returns is on a calendar year basis, except for Forms 5498 and 5498- MSA, which are used to report amounts contributed during or after the calendar year (but not later than April 15).
.02 If any due date falls on a Saturday, Sunday or legal holiday, the return or statement is considered timely if filed or furnished on the next business day (i.e., the next day that is not a Saturday, Sunday, or legal holiday).
.03 Information returns filed magnetically/electronically for Forms 1098, 1099, and W-2G must be submitted to IRS/MCC postmarked on or before March 1, 1999.
.04 Returns postmarked by the United States Postal Service (USPS) on or before March 1, 1999, and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the "timely mailing as timely filing" rule. A similar rule applies to items delivered by private delivery services (PDSs) designated by the IRS. A PDS must be designated by the IRS before it will qualify for the timely mailing rule. Designation is determined with respect to each type of delivery service offered by a PDS (e.g., next day delivery, two day delivery, etc.). Notices 97-26, 1997-1 C.B. 413 and 97-50, 1997-37 I.R.B. 21 provide the list of designated PDSs and the types of delivery services designated. Designation is effective until the IRS issues a revised list of designated PDSs. Notice 97-26 also provides rules for determining the date that is treated as the postmark date. For items delivered by a nondesignated PDS, the actual date of receipt by IRS/MCC will be used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in Notice 97-26 and Notice 97-50, the actual date of receipt by IRS/MCC will be used as the filing date. The timely mailing rule also applies to furnishing statements to recipients and participants and filing Forms 5498 and 5498-MSA.
.05 Statements to recipients must be furnished on or before February 1, 1999 for TY98. Form 5498 statements to the participants must be furnished on or before February 1, 1999 for TY98 for the fair market value of the account and for contributions to an education IRA and by June 1, 1999 for TY98 for contributions made to all other types of IRAs for the prior calendar year.
.06 Forms 5498 and 5498--MSA filed magnetically or electronically must be filed with IRS/MCC on or before June 1, 1999 for TY98. Forms 5498 and 5498--MSA are filed for contributions to be applied to 1998 that are made January 1, 1998 through April 15, 1999 and/or to report the fair market value of any IRA/SEP/SIMPLE or medical savings account.
.07 Use this revenue procedure to prepare information returns filed magnetically or electronically beginning January 1, 1999 and received by IRS/MCC no later than December 15, 1999.
SECTION 11. EXTENSIONS OF TIME
.01 An extension of time to file may be requested for Forms 1099, 1098, 5498, 5498--MSA, W-2G, W-2 series of forms, and 1042-S.
.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC at the addresses listed later in this section. This form may be used to request an extension of time to file information returns submitted on paper, magnetically or electronically.
.03 Requesting an extension of time for multiple payers (50 or less) may be done by submitting Form 8809 and attaching a list of the payer names and their TINs (EIN or SSN). The listing must be attached to ensure that the extension is recorded for all payers. Form 8809 may be computer- generated or photocopied. Be sure that all the pertinent information is included.
.04 Requests for an extension of time to file for more than 50 payers are required to be submitted magnetically or electronically. Requests for an extension of time for 10 to 50 payers are encouraged to be filed magnetically or electronically. (See Part E, Sec. 3, for the record format.) The request may be filed on tape, tape cartridge, 5 1/4- or 3 1/2-inch diskette, or electronically through the IRP-BBS or mainframe.
.05 If a filer does not have an IRS/MCC assigned Transmitter Control Code (TCC), a Form 4419, Application for Filing Information Returns Magnetically/Electronically, must be submitted to obtain a TCC. This number must be used to submit an extension request magnetically/electronically.
.06 All magnetically filed requests for an extension of time should be sent using the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879
Kearneysville, WV 25430
If by truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
.07 Requests for extensions of time for multiple payers will be responded to with one approval letter, accompanied by a list of payers covered under that approval.
.08 As soon as it is apparent that a 30-day extension of time to file is needed, Form 8809 may be submitted. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of time could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days.
.09 If an additional extension of time is needed, a second Form 8809 must be filed by the initial extended due date. Check line 7 on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event. If requesting a second 30-day extension of time, submit the information return files as soon as prepared. Do not wait for MCC's response to your second extension request.
.10 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest due date. For example, if requesting an extension of time to file both Forms 1099-INT and 5498, submit Form 8809 postmarked on or before March 1, 1999. Complete more than one Form 8809 to avoid this problem.
.11 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for an extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper returns are filed.
.12 Request an extension for only one tax year.
.13 The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other document for the payer.
.14 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.
.15 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676). The form is also available on IRP-BBS at 304-264-7070 or on Internet at http://www.irs.ustreas.gov. A copy of the Form 8809 is also provided in the back of the Publication 1220.
.16 Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W-2G, W-2 series of forms, and 1042-S by submitting a letter to IRS/MCC containing the following information:
(a) Payer name
(b) TIN
(c) Address
(d) Type of return
(e) Specify that the extension request is to provide statements to recipients.
(f) Reason for delay
(g) Signature of payer or person duly authorized
Requests for an extension of time to furnish the statements for Forms 1098, 1099, 5498, W-2G, W-2 series of forms, and 1042-S to recipients are not automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days from the due date to furnish the statements to the recipients. The request must be postmarked by the date on which the statements are due to the recipients.
SECTION 12. PROCESSING OF INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
.01 All data received at IRS/MCC for processing will be given the same protection as individual income tax returns (Form 1040). IRS/MCC will process the data and determine if the records are formatted and coded according to this revenue procedure.
.02 If the data is formatted incorrectly, the file will be returned for replacement accompanied with a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the media, therefore, requiring a replacement. Open all packages immediately.
.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of the letter IRS/MCC included with the returned files. A penalty for failure to file correct information returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if the incorrect files are returned by IRS/MCC for replacement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received. (For penalty information, refer to the Penalty section of the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G.")
.04 Sample records identifying errors encountered will be provided with the returned media. It is the responsibility of the transmitter to check the entire file for similar errors.
.05 The following definitions have been provided to help distinguish between a correction and a replacement:
- A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by IRS/MCC, but contained erroneous information.
- A replacement is an information return file that IRS/MCC has returned to the transmitter due to errors encountered during processing. After necessary changes have been made, the file must be returned for processing along with the Media Tracking Slip (Form 9267) which was included in the shipment from IRS/MCC.
- Filers should never send anything to IRS/MCC marked "Replacement" unless IRS/MCC returned media to them.
.06 IRS/MCC will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/MCC received a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery.
.07 IRS/MCC will work with filers as much as possible to assist with processing problems. If the filer is contacted by IRS/MCC, a prompt response is important. IRS/MCC may have information that the filer needs to correct his or her file.
.08 IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers who submit data with missing TINs and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A Notices) or penalties for missing or incorrect TINs.
.09 Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.
SECTION 13. CORRECTED RETURNS
.01 The magnetic media filing requirement of information returns of 250 or more applies separately to both original and corrected returns.
If a payer has 100 Forms 1099-A to be corrected, they
can be filed on paper since they fall under
E the 250 threshold. However, if the payer has 300
X Forms 1099-B to be corrected, they must be
A filed magnetically or electronically since they meet
M the 250 threshold. If for some reason a payer cannot
P file the 300 corrections on magnetic media, to avoid
L penalties, a request for a waiver must be submitted
E before filing on paper. If a waiver is approved for
original documents, any corrections for the same type
of return will be covered under this waiver.
.02 Corrections should be filed as soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of $50 per return. Corrections filed by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalty section of the 1988 "Instructions for Forms 1099, 1098, 5498, and W-2G.") However, if payers discover errors after August 1, they may still be required to file corrections so they will not be subject to a penalty for intentional disregard of the filing requirements. Failure to correct information returns may result in penalties for failure to provide correct information. All fields must be completed with the correct information, not just the data fields needing correction. Submit corrections only for the returns filed in error, not the entire file. Furnish corrected statements to recipients as soon as possible.
.03 There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error. If the original return was filed as an aggregate, the filers must consider this in filing corrected returns.
.04 Corrected returns may be included on the same medium as original returns; however, separate "A" Records are required. Corrected returns must be identified on the Form 4804 and the external media label by indicating "Correction." If filers discover that certain information returns were omitted on their original file, they must not code these documents as corrections. The file must be coded and submitted as originals.
.05 If a payer discovers errors for prior years that affect a large number of payees, in addition to sending IRS the corrected returns and notifying the payees, a letter containing the following information should be sent to IRS/MCC:
(a) Name and address of payer
(b) Type of error (please explain clearly)
(c) Tax year
(d) Payer TIN
(e) TCC
(f) Type of Return
(g) Number of Payees
This information will be forwarded to the appropriate office in an attempt to prevent erroneous notices from being sent to the payees. The correction must be submitted on an actual information return document or filed magnetically/electronically. Provide the correct tax year in Block 2 of the Form 4804 and on the external media label.
.06 Prior year data, original and corrected, must be filed according to the requirements of this revenue procedure. If submitting prior year corrections, use the record format for the current year and submit on separate media. However, use the actual year designation of the correction in Field Positions 2-5. If filing electronically, a separate transmission must be made for each tax year.
.07 In general, filers should submit corrections for returns filed within the last 3 calendar years (4 years if the payment is a reportable payment subject to backup withholding under section 3406 of the Code).
.08 All paper returns, whether original or corrected, must be filed with the appropriate service center.
.09 Form 4804 and Form 4802 (if applicable), must be submitted with corrected files submitted magnetically or electronically.
.10 The "B" Record provides a 20-position field for the Payer's Account Number for the Payee. This number will help identify the appropriate incorrect return if more than one return is filed for a particular payee. Do not enter a TIN in this field. A payer's account number for the payee may be a checking account number, savings account number, serial number, or any other number assigned to the payee by the payer that will distinguish the specific account. This number should appear on the initial return and on the corrected return in order to identify and process the correction properly.
.11 The record sequence for filing corrections is the same as for original returns.
.12 Review the chart that follows. Errors normally fall under one of the two categories listed. Next to each type of error made is a list of instructions on how to file the corrected return.
GUIDELINES FOR FILING CORRECTED RETURNS MAGNETICALLY/ELECTRONICALLY
Error Made on the Original How To File the Corrected Return
Return
Two (2) separate transactions are required to make the following
corrections properly. Follow the directions for both Transactions 1
and 2. (See Note 1)
1. Original return was
filed Transaction 1: Identify incorrect
returns
with one or more of the
following errors: A. Prepare a new Form 4804/4802 that
includes information related
(a) No payee TIN (SSN, to this new file.
ITIN, ATIN, or EIN)
(b) Incorrect payee TIN B. Mark "Correction" in Block 1 of Form
4804.
(c) Incorrect payee name C. Prepare a new file. The first record
on the file will be the Transmitter
(d) Wrong type of return "T" Record.
indicator
D. Make a separate "A" Record for each
type of return and each payer being
reported. The information in the "A"
record will be exactly the same as
it was in the original submission
with one exception, the Correction
File Indicator must be set to "1"
(one) in Field Position 50.
E. The Payee "B" Records must contain
exactly the same information as
submitted previously, except, insert
a Corrected Return Indicator Code of
"G" in Field Position 6 of the "B"
Records, and for all payment
amounts, enter "0" (zero).
F. Corrected returns submitted to
IRS/MCC using "G" coded "B" Records
may be on the same file as those
returns submitted with a "C" code;
however, separate "A" Records are
required.
G. Prepare a separate "C" Record for
each type of return and each payer
being reported.
H. Continue with Transaction 2 to
complete the correction.
Transaction 2: Report the correct
information
A. Make a separate "A" Record for each
type of return and each payer being
reported. The Correction File
Indicator must be set to "1" (one)
in Field Position 50.
B. The Payee "B" Records must show the
correct information as well as a
Corrected Return Indicator Code of
"C" in Field Position 6.
C. Corrected returns submitted to
IRS/MCC using "C" coded "B"
Records may be on the same file as
those returns submitted with a
"G" Codes; however, separate "A"
Records are required.
D. Prepare a separate "C" Record for
each type of return and each payer
being reported.
E. The last record on the file will be
the End of Transmission "F" Record.
F. Indicate "Correction" on the
external media label.
Note 1: Payers who can show they have reasonable cause (defined in the regulations under section 6724 of the Internal Revenue Code) are not required to make corrections for returns filed with a missing or incorrect name and/or TIN. These payers should change their records in order to submit correct information in the future. Payers who cannot show reasonable cause are encouraged to make corrections for the current processing year by August 1 to reduce applicable penalties. Corrections filed by August 1 will reduce the $50 per return penalty for filing returns with missing or incorrect information to $30. The penalty is further reduced to $15 per return if the corrections are filed within 30 days of the due date. (For penalty information, refer to the Penalty section of the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G.") Corrections filed after August 1 will not reduce the penalty but will allow IRS to update the payee's records. The regulations for IRC section 6724 are available in Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs. The publication may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
One transaction is required to make the following corrections properly (See Note 2).
2. Original return was A. Prepare a new Form 4804/4802 that
filed with one or includes information relating
more of the following to this new file.
B. Mark "Correction" in Block 1 of Form
4804.
(a) Incorrect payment C. Prepare a new file. The first record
amount codes in on the file will be the Transmitter
the Payer "A" Record "T" Record.
(b) Incorrect payment D. Make a separate "A" Record for each
amounts in the type of return and each payer being
Payee "B" Record reported. Information in the "A"
(c) Incorrect code on the Record may be the same as it was
document in the original submission.
specific/distribution The Correction File Indicator must
code field in the Payee be set to "1" (one) in Field
"B" Record Position 50.
(d) Incorrect payee address E. The Payee "B" Records must show the
(e) Direct sales indicator correct information as well as a
Corrected Return Indicator Code of
"G" in Field Position 6.
F. Corrected returns submitted to
IRS/MCC using file as those returns
submitted without the "G" code;
however, separate "A" Records are
required.
G. Prepare a separate "C" Record for
each type of return and each payer
being reported.
H. The last record on the file will be
the End of Transmission "F" Record.
I. Indicate "Correction" on the
external media label.
Note 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, two transactions will be required. If a filer is reporting "G" coded, "C" coded, and/or "Non-coded" (original) returns on the same media, each category must be reported under separate "A" records.
SECTION 14. TAXPAYER IDENTIFICATION NUMBER (TIN)
.01 Section 6109 of the Internal Revenue Code requires a person to furnish his/her TIN to the person obligated to file the information return.
.02 The payee's TIN and name combination is used to associate information returns reported to IRS/MCC with corresponding information on tax returns. It is imperative that correct Taxpayer Identification Numbers (TINs) for payees be provided to IRS/MCC. Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.
.03 The payer and payee names with associated TINs should be consistent with the names and TINs used on other tax returns. Also, the name and TIN provided must belong to the owner of the account. If the account is recorded in more than one name, furnish the name and TIN of one of the owners of the account. The TIN provided must be associated with the name of the payee provided in the first name line of the "B" Record. For individuals, the payee TIN is generally the payee's Social Security Number (SSN). For other entities, the payee TIN is the payee's Employer Identification Number (EIN). The payee TIN may also refer to an Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN). For sole proprietors, the payee TIN may be either an SSN or EIN but the sole proprietor's name (not the business name) must be used on the first name line.
.04 Failure to provide the correct name and corresponding TIN could result in a penalty and/or backup withholding notice (sometimes referred to as a "B" notice). (For penalty information, refer to the Penalty section of the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G." For "B" Notice information, refer to the Backup Withholding section of the same publication.)
.05 The following charts will help payers determine the TIN to be furnished to IRS/MCC for those persons for whom they are reporting information (payees).
Chart 1. Guidelines for Social Security Numbers
In the Taxpayer
Identification
Number Field of In the First Payee
the Payee "B" Name Line of the
For this type of Record, enter the Payee "B" Record,
account- SSN of- enter the name of-
1. Individual The individual The individual
2. Joint account (Two The actual owner of The individual whose SSN
or more individuals, the account or, if is entered
including husband and combined funds, the
wife) first indivdual on
the account
3. Custodian account The minor The minor
of a minor (Uniform
Gift, or Transfers,
to Minors Act)
4. The usual revocable The grantor-trustee The grantor-trustee
savings trust account
(grantor is also
trustee)
5. A so-called trust The actual owner The actual owner
account that is not a
legal or valid trust
under state law
6. Sole proprietorship The owner (An SSN The owner, not the
or EIN) business name (The filer
may enter the business
name on the second name
line.)
Chart 2. Guidelines for Employer Identification Numbers
In the Taxpayer
Identification
Number Field of In the First Payee
the Payee "B" Name Line of the
For this type Record, enter the Payee "B" Record,
of account- EIN of- enter the name of-
1. A valid trust, The legal The legal trust, estate,
estate, or pension entity 1 or pension trust
trust
2. Corporate The corporation The corporation
3. Association, club, The organization The organization
religious, charitable,
educational, or other
tax-exempt organization
4. Partnership account The partnership The partnership
held in the name of the
business
5. A broker or registed The broker or The broker
nominee/middleman nominee/middleman or nominee/middleman
6. Account with The public entity The public entity
Department of
Agriculture in the name
of a public entity
(such as a state or
local government,
school district, or
prison), that receives
agriculture program
payments
7. Sole proprietorship The business (An EIN The owner, not
or SSN) the business name (The
filer may enter the
business name on the
second name line.)
1 Do not furnish the identification number of the personal
representative or trustee unless the name of the representative or
trustee is used in the account title.
SECTION 15. EFFECT ON PAPER RETURNS AND STATEMENTS TO RECIPIENTS
.01 Magnetic/electronic reporting of information returns eliminates the need to submit paper documents to the IRS. CAUTION! Do not send Copy A of the paper forms to IRS/MCC in addition to magnetic media and electronic filing. This will result in duplicate filing; therefore, erroneous notices could be generated.
.02 Payers are responsible for providing statements to the payees as outlined in the 1998 "Instructions for Forms 1099, 1098, 5498. and W-2G." Refer to these instructions for filing information returns on paper with the IRS and furnishing statements to recipients.
.03 Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifications and guidelines in Publication 1179, "Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, and W-2G."
SECTION 16. COMBINED FEDERAL/STATE FILING PROGRAM
.01 The Combined Federal/State Filing Program was established to simplify information returns filing for the taxpayer. IRS/MCC will forward this information to participating states free of charge for approved filers. Separate reporting to those states is not necessary. The following information returns may be filed under the Combined Federal/State Filing Program:
Form 1099-DIV Dividends and Distributions
Form 1099-G Certain Government Payments
Form 1099-INT Interest Income
Form 1099-MISC Miscellaneous Income
Form 1099-OID Original Issue Discount
Form 1099-PATR Taxable Distributions Received
from Cooperatives
Form 1099-R Distributions from Pensions,
Annuities, Retirement or
Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
Form 5498 IRA
The following information returns may not be filed under this program:
Form 1098 Mortgage Interest Statement
Form 1098-E Student Loan Interest Statement
Form 1098-T Tuition Payments Statement
Form 1099-A Acquisition or Abandonment of
Secured Property
Form 1099-B Proceeds From Broker and Barter
Exchange Transactions
Form 1099-C Cancellation of Debt
Form 1099-LTC Long-Term Care and Accelerated
Death Benefits
Form 1099-MSA Distributions From Medical Savings
Accounts Form 1099-S Proceeds From
Real Estate Transactions
Form 5498-MSA Medical Savings Account
Information
Form W-2G Certain Gambling Winnings
.02 To request approval to participate, a magnetic media or electronic test file coded for this program must be submitted to IRS/MCC between November 1 and December 15. Hard copy print tests are not acceptable for Combined Federal/State Filing approval.
.03 Attach a letter to the Form 4804 submitted with the test file to indicate a desire to participate in this program.
.04 A test file is only required for the first year. Each record, both in the test and the actual data file, must conform to this revenue procedure.
.05 If the test file is acceptable, IRS/MCC will send the filer an approval letter, and a Form 6847, Consent for Internal Revenue Service to Release Tax Information, which the payer must complete, sign, and return to IRS/MCC before any tax information can be released to the state. Filers must write their TCC on Form 6847.
.06 If the test file is not acceptable, IRS/MCC will return the media with a letter indicating the problems. The replacement test file must be returned to IRS/MCC postmarked on or before December 15.
.07 A separate Form 6847 is required for each payer. A transmitter may not combine payers on one Form 6847 even if acting as Attorney-in-Fact for several payers. Form 6847 may be computer- generated as long as it includes all information that is on the original form or it may be photocopied. If the Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must clearly indicate that the Attorney-in-Fact is empowered to authorize release of the information.
.08 Only code the records for participating states and for those payers who have submitted Form 6847.
.09 Some participating states require separate notification that the payer is filing in this manner. Since IRS/MCC acts as a forwarding agent only, it is the payer's responsibility to contact the appropriate states for further information.
.10 All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states.
.11 Participating states and corresponding valid state codes are listed in Table 1 of this section. The appropriate state code must be entered for those documents that meet the state filing requirements; do not use state abbreviations.
.12 To simplify filing, some of the participating states have provided their information return reporting requirements (see Table 2). Each state's filing requirements are subject to change by the state. It is the payer's responsibility to contact the participating states to verify the criteria provided in this table.
.13 Upon submission of the actual files, the transmitter must be sure of the following:
(a) All records should be coded exactly as required by this revenue procedure.
(b) The "C" Record must be followed by a State Totals "K" Record for each state being reported.
(c) Payment amount totals and the valid participating state code must be included in the State Totals "K" Record.
(d) The last "K" Record must be followed by an "A" Record or an End of Transmission "F" Record (if this is the last record of the entire file).
Table 1. Participating States And Their Codes
State Code State Code State Code
Alabama 01 Idaho 16 Montana 30
Arizona 04 Indiana 18 New Jersey 34
Arkansas 05 Iowa 19 New Mexico 35
California 06 Kansas 20 North Dakota 38
Delaware 10 Maine 23 Oregon 41
District of Columbia 11 Massachusetts 25 South Carolina 45
Georgia 13 Mississippi 28 Tennessee 47
Hawaii 15 Missouri 29 Wisconsin 55
Table 2. Dollar Criteria For State Reporting
STATE 1099- 1099- 1099- 099 1099- 1099- 1099- 5498
DIV G INT MISC OID PATR R
Alabama $1500 $ NR $1500 $1500 $1500 $1500 $1500 NR
Arkansas 100 2500 100 2500 2500 2500 2500 /a/
District
of
Columbia /b/ 600 600 600 600 600 600 600 NR
Hawaii 10 /a/ 10 600 10 10 600 /a/
Idaho NR NR NR 600 NR NR /a/ /a/
Iowa 10 10 10 600 10 10 10 /a/
Mississippi 600 600 600 600 600 600 600 NR
Missouri NR NR NR 1200 /c/ NR NR NR NR
Montana 10 10 10 600 10 10 600 /a/
New Jersey 1000 1000 1000 1000 1000 1000 1000 NR
Tennessee 100 NR 100 NR NR NR NR NR
Wisconsin NR NR NR 600 NR NR 600 NR
The preceding list is for information purposes only. The state filing requirements are subject to change by the states. For complete information on state filing requirements, contact the appropriate state tax agencies.
Filing requirements for states in TABLE 1 not shown in TABLE 2 are the same as the federal requirement.
NR = No filing requirement.
Footnotes:
/a./ All amounts are to be reported.
/b./ Amounts are for aggregates of several types of income from the same payer.
/c./ Missouri would prefer those returns filed with respect to non-Missouri residents to be sent directly to its state agency.
SECTION 17. DEFINITION OF TERMS
Element Description
Asynchronous Protocols This type of data transmission is most often
used by microcomputers, PCs and some
minicomputers. Asynchronous transmissions
transfer data at arbitrary time intervals
using the start-stop method. Each character
transmitted has its own start bit and stop
bit.
ATIN A temporary taxpayer identification number
assigned to a child who has been placed by
an authorized placement agency in the
household of a prospective adoptive parent
prior to adoption. When the adoption becomes
final, the adoptive parent must apply for a
social security number for the child.
b Denotes a blank position. Enter blank(s)
when this symbol is used (do not enter the
letter "b"). This appears in numerous areas
throughout the record descriptions.
Bisynchronous Protocols For purposes of this publication, these are
electronic transmissions made using IBM 3780
protocols. These transmissions must be in
EBCDIC character code and use the Bell 208B
(4800bps), AT&T 2296A (9600bps) or Hayes
OPTIMA 288 V.FC Smartmodem (14400bps)
modems. Standard IBM 3780 space compression
is acceptable.
Correction A correction is an information return
submitted by the transmitter to correct an
information return that was previously
submitted to and processed by IRS/MCC, but
contained erroneous information.
Note: A correction should not be confused with a replacement. Only media returned to the filer by IRS/MCC due to processing problems should be marked replacement.
CUSIP Number A number developed by the Committee on
Uniform Security Identification Procedures
to serve as a common denominator in
communications among users for security
transactions and security information.
Employer Identification A nine-digit number assigned by IRS for
Number (EIN). federal tax reporting purposes
Electronic Filing Submission of information returns using
switched telecommunications network
circuits. These transmissions use modems,
dial-up phone lines, and asynchronous or
bisynchronous protocols. See Parts A, C, and
D of this publication for specific
information on electronic filing.
File For purposes of this revenue procedure, a
file consists of one Transmitter "T" Record
at the beginning of the file, followed by a
Payer "A" Record,-Payee "B" Records, and an
End of Payer "C" Record after each set of
"B" Records. The last record on the file
will be the End of Transmission "F" Record.
Nothing should be reported after the End of
Transmission "F" Record.
Filer Person (may be payer and/or transmitter)
submitting information returns to IRS.
Filing Year The actual year in which the information
returns are being-submitted to IRS.
Golden Parachute A payment made by a corporation to a
Payment certain officer, shareholder, or highly
compensated individual when a change in the
ownership or control of the corporation
occurs or when a change in the ownership of
a substantial part of the corporate assets
occurs.
Incorrect Taxpayer A TIN may be incorrect for several reasons:
Identification Number (a) The payee provided a wrong number or
(Incorrect TIN) name (e.g., the payee is listed as the
only owner of an account but provided
someone else's TIN).
(b) A processing error (e.g., the number or
name was typed incorrectly).
(c) The payee's status changed (e.g., a
payee name change was not conveyed to
the IRS or SSA so they could enter the
change in their records).
Individual Taxpayer A nine digit number issued by IRS to
individuals who are required to have a U.S.
Taxpayer Identification Number (ITIN)
Identification Number but are not eligible
to obtain a Social Security Number (SSN).
Information Return The vehicle for submitting required
information about another person to IRS.
Information returns are filed by financial
institutions and by others who make certain
types of payments as part of their trade or
business. The information required to be
reported on an information return includes
interest, dividends, pensions, nonemployee
compensation for personal services, stock
transactions, sales of real estate, mortgage
interest, and other types of information.
For this revenue procedure, an information
return is a Form 1098, 1098-E, 1098-T,
1099-A, 1099-B, 1099-C, 1099-DIV, 1099-G,
1099-INT, 1099-LTC, 1099-MISC, 1099-MSA,
1099-OID, 1099-PATR, 1099-R, 1099-S, 5498,
5498-MSA or W-2G.
Magnetic For this revenue procedure, the term
Media "magnetic media" refers to 1/2-inch
magnetic tape; IBM 3480/3490/3490E or
AS400 compatible tape cartridge; 8mm,
4mm, and QIC (Quarter Inch Cartridges)
cartridge or 5 1/4- and 3 1/2- inch
diskette.
Media Tracking Slip Form 9267 accompanies media that
(Form 9267) IRS/MCC has returned to the filer for
replacement due to incorrect format or
errors encountered when trying to
process the media. This must be
returned with the replacement file.
Missing Taxpayer The payee TIN on an information return
Identification Number is "missing" if:
(Missing TIN) (a) there is no entry in the TIN field.
(b) includes one or more alpha
characters (a character or symbol
other than an Arabic number) as
one of the nine digits, OR
(c) payee TIN has less than nine
digits.
PS 58 Costs The current cost of life insurance
under a qualified plan taxable under
section 72(m) and section 1.72-16(b) of
the Income Tax Regulations. (See Part
B, Sec. 10, Payee "B" Record, Document
Specific/Distribution Code, Category of
Distribution, Code 9.)
Payee Person or organization receiving
payments from the payer, or for whom an
information return must be filed. The
payee includes a student (Form 1098-T),
borrower (Forms 1098, 1098-E, and
1099-A), a debtor (Form 1099-C), a
policyholder or insured (Form
1099-LTC), any IRA/SEP/SIMPLE plan
participant (Form 5498), and a gambling
winner (Form W-2G). For Form 1099-S,
the payee is the seller or other
transferor.
Payer Includes the person making payments, a
recipient of mortgage interest
payments, a recipient of student loan
interest payments, a broker, a person
reporting a real estate transaction, a
barter exchange, a creditor, a trustee
or issuer of any IRA/SEP/SIMPLE, or a
lender who acquires an interest in
secured property or who has reason to
know that the property has been
abandoned. The payer will be held
responsible for the completeness,
accuracy, and timely submission of
magnetic media files.
Replacement A replacement is an information return
file that IRS/MCC has returned to the
transmitter due to errors encountered
during processing.
Note: Filers should never submit media to IRS/MCC marked "Replacement" unless IRS/MCC returned media to the filers. When sending "Replacement" media, be sure to include the Media Tracking Slip (Form 9267) which will accompany media returned by IRS/MCC. Media that has been incorrectly marked as Replacement may result in duplicate filing.
Service Bureau Person or organization with whom the
payer has a contract to prepare and/or
submit information return files to
IRS/MCC. A parent company submitting
data for a subsidiary is not considered
a service bureau.
Social Security A nine-digit number assigned by SSA to
Number (SSN) an individual for wage and tax
reporting purposes.
Special Character Any character that is not a numeric, an
alpha, or a blank.
SSA Social Security Administration.
Taxpayer Identification Refers to either an Employer
Number (TIN) Identification Number (EIN), Social
Security Number (SSN), Individual
Taxpayer Identification Number (ITIN),
or Adoption Taxpayer Identification
Number (ATIN).
Tax Year Generally, the year in which payments
were made by a payer to a payee.
Transfer Agent The transfer agent, or paying agent, is
the entity who has been contracted or
authorized by the payer to perform the
services of paying and reporting backup
withholding (Form 945).
Transmitter Refers to the person or organization
submitting file(s)
magnetically/electronically. The
transmitter may be the payer or agent
of the payer.
Transmitter Control Code A five character alpha/numeric number
(TCC) assigned by IRS/MCC to the transmitter
prior to actual filing magnetically or
electronically. This number is inserted
in the "T" Record of the files and must
be present before the file can be
processed. An application Form 4419
must be filed with IRS/MCC to receive
this number.
Vendor Vendors include service bureaus that
produce information return files on the
prescribed types of magnetic media or
via electronic filing for payers.
Vendors also include companies who
provide software for payers who wish to
produce their own media or electronic
files.
SECTION 18. STATE ABBREVIATIONS
01. The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. This table provides state and territory abbreviations only, and does not represent those states participating in the Combined Federal/State Filing Program.
State Code State Code State Code
____________________________________________________________________
Alabama AL Kentucky KY Ohio OH
Alaska AK Louisiana LA Oklahoma OK
American Samoa AS Maine ME Oregon OR
Arizona AZ Marshall Islands MH Pennsylvania PA
Arkansas AR Maryland MD Puerto Rico PR
California CA Massachusetts MA Rhode Island RI
Colorado CO Michigan MI South Carolina SC
Connecticut CT Minnesota MN South Dakota SD
Delaware DE Mississippi MS Tennessee TN
District of
Columbia DC Missouri MO Texas TX
Federated States Montana MT Utah UT
of Micronesia FM Nebraska NE Vermont VT
Florida FL Nevada NV Virginia VA
Georgia GA New Hampshire NH Virgin Islands /*/ VI
Guam GU New Jersey NJ Washington WA
Hawaii HI New Mexico NM West Virginia WV
Idaho ID New York NY Wisconsin WI
Illinois IL North Carolina NC Wyoming WY
Indiana IN North Dakota ND
Iowa IA Northern
Kansas KS Mariana Islands MP
/*/ This abbreviation applies to the United States Virgin
Islands.
.02 Filers must adhere to the city, state, and ZIP Code format for U. S. addresses in the "B" Record. This also includes American Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U. S. Virgin Islands.
.03 For foreign country addresses, filers may use a 51 position free format which should include city, province or state, postal code, and name of country in this order. This is allowable only if a "1" (one) appears in the Foreign Country Indicator, Field Position 247 of the "B" Record.
.04 When reporting APO/FPO addresses use the following format:
EXAMPLE:
Payee Name PVT Willard J. Doe
Mailing Address Company F, PSC Box 100
167 Infantry REGT
Payee City APO (or FPO)
Payee State AE, AA, or AP /*/
Payee ZIP Code 098010100
/*/ AE is the designation for ZIPs beginning with 090-098, AA
for ZIP 340, and AP for ZIPs 962-966.
SECTION 19. MAJOR PROBLEMS ENCOUNTERED
IRS/MCC encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This may eliminate the need for IRS/MCC to return files for replacement. This may be important for those payers who have either had their files prepared by a service bureau or who have purchased preprogrammed software packages. If a filer purchased a software package for a previous tax year, it will not be valid for reporting current tax year information returns due to the new record format.
Filers who engage a service bureau to prepare media on their behalf should be careful not to report duplicate data which may generate penalty notices.
The Major Problems Encountered lists some of the most frequently encountered problems with magnetic/electronic files submitted to IRS/MCC. These problems may result in media being returned for replacement.
1. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically
Each shipment of media sent to IRS/MCC must include a Form 4804. More than one type of media may be sent in the same shipment, (i.e., a tape, a diskette, or a tape cartridge) but must have a separate Form 4804 to accompany each type of media. In this example three separate Forms 4804 would be required in the total shipment. However, multiples of one type of media (6 diskettes)may be covered by one Form 4804. For electronically transmitted information returns, the Form 4804 must be mailed to IRS/MCC the same day as the transmission.
2. Discrepancy between IRS/MCC totals and totals in Payer "C" Records
The "C" Record is a summary record for a type of return for a given payer as reported in the "B" Records. IRS balances the total number of payees and payment amounts and compares them with totals in the "C" Records. Filers should verify the accuracy of the records because imbalances may necessitate return of files for replacement.
3. The payment Amount Fields in the "B" Record do not correspond to the Amount Codes in the "A" Record
If codes 2, 4, and 7 appear in the Amount Codes Field of the "A" Record, then the "B" Record must show payment amounts in only Fields 2, 4, and 7, right-justified and unused positions must be zero (0) filled.
EXAMPLE: "A" RECORD 247 bbbbbbbbb -- (`b' denotes a blank)
(Pos. 28-39)
"B" RECORD 000000867599 -- (Payment Amount 2)
(Pos. 67-78)
000000709097 -- (Payment Amount 4)
(Pos. 91-102)
000000044985 -- (Payment Amount 7)
(Pos. 127-138)
4. Blanks or invalid characters appear in Payment Amount Fields in the "B" Record
Money amounts must be right-justified and zero (0) filled. Do not use blanks.
5. Incorrect TIN in Payer "A" Record
The Payer's TIN reported in positions 12-20 of the "A" Record must be nine numeric characters (no alphas or special characters) in order for IRS/MCC to process the media. The TIN provided in the "A" Record must correspond with the name provided in the first payer name line.
6. Bad Format
NOTE: Due to major format changes in the record expansion and layout, IRS/MCC strongly encourages transmitters, vendors, and filers to read the Revenue Procedure in its entirety.
IRS/MCC receives data in prior year format. Be sure to use the current revenue procedure (Publication 1220) for formatting data.
7. Incorrect tax year in the Transmitter "T" Record, Payer "A" Record and the Payee "B" Record
The tax year in the transmitter,payer and payee records should reflect the year of the information being reported. Filers need to check their files to ensure this information is correct.
Due to Year 2000 compliance changes, the year format has expanded to four (4) positions.
8. Incorrect reporting of Form W-2 information to IRS
Form W-2 information is submitted to SSA, and not to IRS/MCC. SSA has its own magnetic media reporting program and specifications for wage information, and the media containing Forms W-2 is submitted to SSA. Any media received at IRS/MCC that contains Form W-2 information will be returned to the filer. To inquire about filing Form W-2 information magnetically, call 1-800-SSA-1213.
9. Excessive withholding credits
Generally, for most information returns, other than Forms 1099-G, 1099-MISC, 1099-R, and W-2G, Federal withholding amounts should not exceed 31 percent of the income reported. Validate the total reported in the withholding field against the total income reported.
10. Incorrect format for TINs in the Payee "B" Record
A check of "B" records should be made to ensure the Taxpayer Identification Numbers (TINs) are formatted correctly. There should be nine numerics, no alphas, hyphens, commas, or blanks. Incorrect formatting of TINs may result in a penalty.
IRS/MCC contacts filers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers/transmitters who submit data with missing TINs, and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 and CP2100A Notices) or penalties for missing or incorrect TINs. For penalty information, refer to the Penalty section of the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G."
11. Distribution Codes for Form 1099-R reported incorrectly
Distribution codes for Form 1099-R are being reported incorrectly or not being reported. See valid distribution codes for Form 1099-R in the Payee "B" Record layout.
12. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on the Form 4804 (Block 9) are used in the verification process of information returns. The figure in this block should be the total number of Payee "B" Records contained on the media submitted with the Form 4804. The figures on the Form 4804 are compared against the total number of Payee "B" Records processed on the media. Imbalances may necessitate the return of the files for replacement.
13. Invalid Use of IRA/SEP/SIMPLE Indicator (Form 1099-R)
The IRA/SEP/SIMPLE Indicator for Form 1099-R should be used only for the reporting of a distribution from a traditional IRA/SEP/SIMPLE. The total amount distributed from a traditional IRA/SEP/SIMPLE should be reported in Payment Amount Field A (IRA/SEP/SIMPLE Distribution).
14. Distribution Codes used incorrectly in conjunction with the IRA/SEP/SIMPLE Indicator. (Form 1099-R)
When reporting Form 1099-R information, Distribution Codes G and H MAY NOT be used in positions 545-546 of the "B" Record if the IRA/SEP/SIMPLE Indicator (1) is present in position 548 of the "B" Record. This will cause media to be returned.
15. Failure to identify the rollover contributions and/or fair market value of the account for Form 5498
Rollover contributions (Amount Code 2 of the "A" Record) and/or fair market value of the account (Amount Code 4 of the "A" Record) for Form 5498 must be identified as an IRA (position 547 of the "B" Record), SEP (position 548 of the "B" Record), SIMPLE (position 549 of the "B" Record), Roth IRA (position 550 of the "B" Record), Roth Conversion (position 551 of the "B" Record), or Education IRA (position 552 of the "B" Record).
16. Media received without data.
Before media is shipped, transmitters/filers should verify the presence of Form 1099 information returns on the media before sending the shipment to IRS/MCC.
PART B MAGNETIC MEDIA SPECIFICATIONS
SECTION 1. GENERAL
.01 The specifications contained in this part of the revenue procedure define the required format and contents of the records to be included in the magnetic media/electronic file.
.02 A provision is made in the "B" Records for entries which are optional. If the field is not utilized, enter blanks to maintain a fixed record length of 750 positions. Each field description explains the intended use of specific field positions.
.03 Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifications, it will be returned to the transmitter for replacement. Filers are encouraged to submit a test prior to submitting the actual file. Contact IRS/MCC for further information at 304-263-8700.
SECTION 2. TAPE SPECIFICATIONS
.01 IRS/MCC can process most magnetic tape files if the following specifications are followed:
(a) 9 track EBCDIC (Extended Binary Coded Decimal Interchange Code) with:
(1) Odd parity.
(2) A density of 1600 or 6250 CPI.
(3) If transmitters use UNISYS Series 1100, they must submit an interchange tape.
(b) 9 track ASCII (American Standard Coded Information Interchange) with:
(1) Odd parity.
(2) A density of 1600 or 6250 CPI.
Transmitters should be consistent in the use of recording codes and density on files.
.02 All compatible tape files must have the following characteristics: Type of tape - 1/2-inch (12.7 mm) wide, computer- grade magnetic tape on reels of up to 2,400 feet (731.52 m) within the following specifications:
(a) Tape thickness: 1.0 or 1.5 mils and
(b) Reel diameter: 10 1/2-inch (26.67 cm), 8 1/2-inch (21.59 cm), 7-inch (17.78 cm), or 6-inch.
.03 The tape records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,250 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 750.
(d) Records may not span blocks.
.04 Labeled or unlabeled tapes may be submitted.
.05 For the purposes of this revenue procedure the following must be used:
Tape Mark:
(a) Signifies the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
SECTION 3. TAPE CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a) Must be IBM 3480, 3490, 3490E, or AS400 compatible.
(b) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by 1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3) Cartridges must be 18-track or 36-track parallel (See Note).
(4) Cartridges will contain 37,871 CPI or 75,742 CPI (characters per inch).
(5) Mode will be full function.
(6) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,250 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 750.
(d) Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Signifies the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 36-track or 18-track.
SECTION 4. 8MM, 4MM, AND QUARTER INCH CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Created from an AS400 operating system only.
(2) 8mm (.315-inch) tape cartridges will be 2 1/2- inch by 3 3/4-inch.
(3) The 8mm tape cartridges must meet the following specifications:
TRACKS DENSITY CAPACITY
1 20 (43245 BPI) 2.5 Gb (10Gb)
1 21 (45434 BPI) 5 Gb (20 Gb)
(4) Mode will be full function.
(5) Compressed data is not acceptable.
(6) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge.
(7) A file may consist of more than one cartridge; however, no more than 250,000 documents may be transmitted per file or per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will indicate the sequence of the cartridge within the file (e.g., 1 of 3, 2 of 3, and 3 of 3) and would appear in the header label IRSTAX.001, IRSTAX.002, and IRSTAX.003 on each cartridge of the file. The end of transmission "F" Record should be placed only on the last cartridge for files containing multiple cartridges.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,250 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9's; however, the last block of the file may be filled with 9's or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 750.
(d) Various COPY commands have been successful; however, the SAVE OBJECT COMMAND is not acceptable.
(e) Extraneous data following the "F" record will result in media being returned for replacement.
(f) Records may not span blocks.
(g) No more than 250,000 documents per cartridge and per file.
.03 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a suggested filename.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Signifies the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
.05 If extraneous data follows the End of Transmission "F" Record, the file will be returned for replacement. Therefore, IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data when submitting information returns.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4 mm cassettes will be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4Gb.
(e) The general specifications for 8mm cartridges will also apply to the 4 mm cassettes.
.08 Various Quarter Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(a) QIC cartridges will be 4" by 6".
(b) QIC cartridges must meet the following specifications:
Size Tracks Density Capacity
____________________________________________________________________
QIC-11 4/5 4 (8000 BPI) 22Mb or 30Mb
QIC-24 8/9 5 (8000 BPI) 45Mb or 60Mb
QIC-120 15 15 (10000 BPI) 120Mb or 200Mb
QIC-150 18 16 (10000 BPI) 150Mb or 250Mb
QIC-320 26 17 (16000 BPI) 320Mb
QIC-525 26 17 (16000 BPI) 525Mb
QIC-1000 30 21 (36000 BPI) 1Gb
QIC-1350 30 18 (51667 BPI) 1.3Gb
QIC-2Gb 42 34 (40640 BPI) 2Gb
(c) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
SECTION 5. 5 1/4-INCH AND 3 1/2-INCH DISKETTE SPECIFICATIONS
IRS/MCC will discontinue processing 5 1/4 inch diskettes in the future. Filers who use 5 1/4 inch diskettes are encouraged to explore other methods by which to submit information returns magnetically/electronically.
.01 To be compatible, a diskette file must meet the following specifications:
(a) 5 1/4- or 3 1/2-inches in diameter.
(b) IRS recommends data be recorded in standard ASCII code. However, if data is recorded using EBCDIC, a 5 1/4-inch diskette must be used and a 1024 byte sector would be valid for System 36 or AS400.
The following command should be used to format the diskette into a 1024 byte sector:
INIT IRSTAX,, FORMAT2
The save commands are as follows:
(1) The save command for System 36 is SAVE.
(2) The save command for AS400 is SAF36F.
(c) Records must be a fixed length of 750 bytes per record.
(d) Delimiter character commas (,) must not be used.
(e) Positions 749 and 750 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
(f) Filename of IRSTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette, the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the-diskettes within the file. For example, if the file consists of three diskettes, the first diskette will be named IRSTAX.001, the second will be IRSTAX.002, and the third will be IRSTAX.003. The first diskette, IRSTAX.001 will begin with a "T" Record and the third diskette, IRSTAX.003 will have an "F" Record at the end of the file.
(g) A diskette will not contain multiple files. (See Part A, Section 17 for definition of a file.)
(h) Failure to comply with instructions will result in media being returned for replacement.
(i) Diskettes must meet one of the following specifications:
Capacity Tracks Sides/Density Sector Size
1.44 mb 96tpi hd 512
1.44 mb 135tpi hd 512
1.2 mb 96tpi hd 512
.02 IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data follows the End of Transmission "F" Record, the file will be returned for replacement.
.03 IRS/MCC prefers that 5 1/4- and 3 1/2-inch diskettes be created using MS-DOS; however, diskettes created using other operating systems may be acceptable (See Notes). IRS/MCC has equipment that can convert diskettes created under most operating systems to the appropriate MS-DOS format. IRS/MCC strongly recommends that transmitters submit a test file for 5 1/4- and 3 1/2-inch diskettes, especially if their data was not created using MS-DOS.
Notes: IRS/MCC will discontinue processing 5 1/4-inch diskettes in the future.
IRS will discontinue processing non-MS-DOS compatible diskettes in the future.
3 1/2-inch diskettes created on a System 36 or AS400 are not acceptable.
.04 Transmitters should check media for viruses before submitting it to IRS/MCC.
SECTION 6. TRANSMITTER "T" RECORD - GENERAL FIELD DESCRIPTIONS
.01 The Transmitter "T" Record identifies the entity transmitting the magnetic media/electronic file and contains information which is supplied on the Form 4804, Transmittal of Information Returns Magnetically/Electronically. The "T" Record has been created to facilitate current magnetic electronic processing of information returns at IRS/MCC with an eventual goal of paperless filing.
.02 The Transmitter "T" Record is the first record on each file and is followed by a Payer "A" Record. See Part A, Sec. 17, Definition of Terms for the definition of file. A file will be returned to the transmitter for replacement if the "T" Record is not present. For transmitters with multiple diskettes, refer to Sec. 5.5 1/4-inch and 3 1/2-inch Diskette Specifications.
.03 The Transmitter "T" Record requires the total number of Payees ("B" Records) being reported. No money or payment amounts are reported in the Transmitter "T" Record.
.04 For all fields marked "Required", the transmitter must provide the information described under Description and Remarks. For those fields not marked "Required", a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field positions and for the indicated length.
.05 All records must be a fixed length of 750 positions.
.06 The Transmitter "T" Record must be followed by the Payer "A" Record, which must be followed with Payee "B" Records; however, the initial record on each file must be a Transmitter "T" Record.
.07 All alpha characters entered in the "T" Record must be upper-case.
.08 When transmitting information on magnetic media or electronically, the Transmitter "T" Record must precede the first Payer "A" Record and reflect the person actually transmitting the information to IRS/MCC.
Record Name: Transmitter "T" Record
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
1 Record Type 1 Required. Enter "T".
2-5 Payment Year 4 Required. Enter "1998"
(unless reporting prior
year data; see field
position 6).
6 Prior Year 1 Required. Enter "P"
Data only if reporting prior
Indicator year data; otherwise,
enter blank.
7-15 Transmitter's 9 Required. Enter the
TIN transmitter's nine
digit Tax
Identification Number.
May be an EIN or SSN.
16-20 Transmitter 5 Required. Enter the
Control Code five character
alpha/numeric
Transmitter Control
Code (TCC) assigned by
IRS/MCC. A TCC must be
obtained to file data
within this program.
21-22 Replacement 2 Required for
Alpha Character replacement files only.
Enter the alpha/numeric
character which appears
immediately following
the TCC number on the
Media Tracking Slip
(Form 9267). The Form
9267 accompanies media
that has been returned
by IRS/MCC due to
processing problems.
This field must be
blank unless media has
been returned. If the
file is being replaced
magnetically,
information is required
in this field. If the
file was originally
sent magnetically, but
the replacement is
being sent
electronically, the
information is required
in this field
Otherwise, leave blank
for electronic files.
Left justify
information and fill
unused positions with
blanks. If this is not
a replacement file,
enter blanks.
23-27 Blank 5 Enter blanks.
28 Test File Indicator 1 Required for test files
only. Enter "T" if this
is a test file,
otherwise enter a
blank.
29 Foreign Entity 1 Enter a "1" (one) if
the transmitter is a
foreign entity.
Indicator Stay in enter
a blank.
30-69 Transmitter Name 40 Required. Enter the
name of the transmitter
in the manner in which
it is used in normal
business. Left justify
and fill unused
positions with blanks.
70-109 Transmitter Name 40 Enter any additional
(Continuation) information that may
be part of the name.
Left justify
information and fill
unused positions with
blanks.
NOTE: All the information "Required" in Field Positions 110 thru 280 MUST contain the address information where media, which IRS/MCC was unable to process is to be returned. Any correspondence relating to problem media or electronic files will also be sent to this address.
110-149 Company 40 Required. Enter the
name of the company to
be associated with the
Name address where
correspondence should
be sent or media should
be returned due to
processing problems.
150-189 Company 40 Enter any additional
Name information that may be
(Continuation) part of of the name of
the company where
correspondence should
be sent or media should
be returned due to
processing problems.
190-229 Company 40 Required. Enter the
Mailing mailing address where
Adress correspondence should
be sent or media should
be returned in the
event IRS/MCC is unable
to process.
230-269 Company City 40 Required. Enter the
city, town, or post
office where
correspondence should
be sent or media should
be returned in the
event IRS/MCC is unable
to process.
270-271 Company State 2 Required. Enter the
valid U. S. Postal
Service state
abbreviation for
states. Refer to the
chart of valid state
codes in Part A, Sec.
18.
272-280 Company 9 Required. Enter the
ZIP Code valid nine digit ZIP
Code assigned by the U.
S. Postal Service. If
only the first five
digits are known, left
justify information and
fill unused positions
with blanks.
281-295 Blank 15 Enter blanks.
296-303 Total Number 8 Required. Enter the
of Payees total number of Payee
"B" Records reported in
the file. Right justify
information and fill
unused positions with
zeros.
304-343 Contact Name 40 Required. Enter the
name of the person to
be contacted if IRS/MCC
encounters problems
with the file or
transmission.
344-358 Contact's Phone 15 Required. Enter the
Number & telephone number of
Extension the person to contact
regarding
magnetic/electronic
files. Omit hyphens. If
no extension is
available, left justify
information and fill
unused positions with
blanks. For example,
the IRS/MCC Call Site
phone number of 304-
263-8700 with an
extension of 52345
would be
304263870052345.
359-360 Magnetic 2 Required for magnetic
Tape File tape/tape cartridge
Indicator filer only. Enter the
letters "LS" (in
uppercase only). Use of
this field by filers
using other types of
media will be
acceptable but is not
required.
361-375 Electronic 15 Required for an
File Name original or correction
electronic file which
was incorrect and a
replacement is being
sent, enter the
ORIGINAL/or CORRECTION
filename that was
assigned by the IRP-BBS
(Example-12345p01.DAT).
Left justify
information and fill
unused positions with
blanks. Do not enter
the replacement
filename. Otherwise,
enter blanks.
376-748 Blank 373 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
SECTION 7 TRANSMITTER "T" RECORD - RECORD LAYOUT
Prior Year Transmitter Replac-
Record Payment Data Trans- Control ment Blank
Type Year Indicator mitter's Code Alpha
TIN Character
1 2-5 6 7-15 16-20 21-22 23-27
Foreign Transmitter Company
Test Entity Transmitter Name Company Name
Indicator Indicator Name (Continuation) Name (Continua-
topm)
28 29 30-69 70-109 110-149 180-189
Company Company Total
Mailing Company Company ZIP Blank Number Con-
Address City State Code of Payees tact
Name
190-229 230-269 270-271 272-280 281-295 296-303 304-343
Cotact's Phone Magnetic
Number & Tape File Electronic File Blank Blank of
Extension Indicator Name CR/LF
344-358 359-360 361-375 376-748 749-750
SECTION 8. PAYER "A" RECORD - GENERAL FIELD DESCRIPTIONS
.01 The Payer "A" Record identifies the institution or person making payments, a recipient of mortgage interest payments, a broker, a person reporting a real estate transaction a barter exchange, a creditor, a trustee, or issuer of an IRA, SEP, or SIMPLE, or a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned. The payer will be held responsible for the completeness, accuracy, and timely submission of magnetic media files. The Payer "A" Record also provides parameters for the succeeding Payee "B" Records. IRS computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the "B" Records to which they apply.
.02 The number of "A" Records depends on the number of payers and the different types of returns being reported. The payment amounts for one payer and for one type of return should be consolidated under one "A" Record if submitted on the same file:
.03 Do not submit separate "A" Records for each payment amount being reported. For example, if a payer is filing Form 1099-DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one "A" Record, not three separate "A" Records. For "B" Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no payment to be reported.
.04 The second record on the file must be an "A" Record. A transmitter may include "B" Records for more than one payer on a tape or diskette. However, each group of "B" Records must be preceded by an "A" Record and followed by an End of Payer "C" Record. A single tape or diskette may contain different types of returns but the types of returns must not be intermingled. A separate "A" Record is required for each payer and each type of return being reported.
.05 All records must be fixed length of 750 positions.
.06 An "A" Record may be blocked with "B" Records; however, the initial record on a file must be a "T" Record followed by an "A" Record. IRS/MCC will accept an "A" Record after a "C" Record.
.07 Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.
.08 All alpha characters entered in the "A" Record must be upper-case.
.09 When filing Form 1098, Mortgage Interest Statement, and Form 1098-E, Student Loan Interest Statement, the "A" Record will reflect the name of the recipient of the interest referred to as the payer in these instructions. The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid.
.10 For all fields marked "Required", the transmitter must provide the information described under Description and Remarks. For those fields not marked "Required", a transmitter must allow for the field; but may be instructed to enter blanks or zeros in the indicated media position(s) and for the indicated length.
RECORD NAME: PAYER "A" RECORD
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
1 Record Type 1 Required. Enter "A."
2-5 Payment Year 4 Required. Enter "1998"
(unless reporting prior
year data).
6-11 Blank 6 Enter blanks.
12-20 Payer's 9 Required. Must be the
Taxpayer valid nine-digit
Identification Taxpayer Identification
Number (TIN) Number assigned to the
payer. Do not enter
blanks, hyphens, or
alpha characters. All
zeros, ones, twos,
etc., will have the
effect of an incorrect
TIN.
Note: For foreign entitles that are not required to have a TIN, this field must be blank. However, the Foreign Entity Indicator, position 52 of the "A" Record, must be set to "1" (one).
21-24 Payer Name 4 The Payer Name Control
Control can be obtained only
from the mail label
on the Package 1099
that is mailed to most
payers each December.
To distinguish between
Package 1099 and the
Magnetic Media
Reporting (MMR)
Package, the Package
1099 contains
instructions for
paper filing only, and
the mail label on the
package contains a four
(4) character name
control. The MMR
Package contains
instructions for filing
magnetically or
electronically. The
mail label does not
contain a name control.
Names of less than four
(4) characters should
be left-justified,
filling the unused
positions with blanks.
If a Package 1099 has
not been received or
the Payer Name Control
is unknown, this field
must be blank filled.
25 Last Filing 1 Enter a "1" (one) if
Indicator this is the last year
the payer will file;
otherwise, enter blank.
Use this indicator if
the payer will not be
filing information
returns under this
payer name and TIN in
the future either
magnetically,
electronically, or on
paper.
26 Combined 1 Required for the
Federal/State Combined Federal/State
Filer Filing Program. Enter
"1" (one) if
participating in the
Combined Federal/State
Filing Program;
otherwise, enter blank.
Refer to Part A, Sec.
16, for further
information. The only
forms that may be filed
under the Combined
Federal/State Filing
Program are: Forms
1099-DIV, 1099-G,
1099-INT, 1099-MISC,
1099-OID, 1099-PATR,
1099-R, and 5498.
27 Type of Return 1 Required. Enter the
appropriate code from
the table below:
Type of Return Code
1098 3
1098-E 2
1098-T 8
1099-A 4
1099-B B
1099-C 5
1099-DIV 1
1099-G F
1099-INT 6
1099-LTC T
1099-MISC A
1099-MSA M
1099-OID D
1099-PATR 7
1099-R 9
1099-S S
5498 L
5498-MSA K
W-2G W
28-39 Amount Code 12 Required. Enter the
(See Note) appropriate amount
codes for the type of
return being reported.
Generally, for each
amount code entered in
this field, a
corresponding payment
amount must appear in
the Payee "B" Record.
In most cases, the box
numbers on paper
information returns
correspond with the
amount codes used to
file magnetically/el-
ectronically. However,
if discrepancies occur,
this revenue procedure
governs.
The Amount Codes have
been expanded from nine
to twelve codes to
accommodate three
additional payment
fields in the Payee "B"
Record. Amount Codes 1
through 9 will remain
numeric. Amount Codes
10, 11, and 12 will be
A, B, and C,
respectively.
Example of Amount Codes:
If position 27 of the Payer "A" Record is "A" (for 1099-MISC) and positions 28-39 are "1247ACbbbbbb", this indicates the payer is reporting any or all six payment amounts (1247AC) in all of the following "B" Records. (In this example, "b" denotes blanks in the designated positions. Do not enter the letter "b".)
The first payment amount field (1) will represent rents;
the second payment amount field (2) will represent royalties;
the third payment amount field (3) will be all "0" (zeros);
the fourth payment amount field (4) will represent Federal
income tax withheld;
the fifth and sixth payment amount fields (5 and 6) will be all
"0" (zeros);
the seventh payment amount field (7) will represent nonemployee
compensation;
the eighth and ninth payment amount fields (8 and 9) will be
all "0" (zeros);
the tenth payment amount field (A) will represent crop
insurance proceeds;
the eleventh payment amount field (B) will be all "0" (zeros);
and
the twelfth payment amount field (C) will represent gross
proceeds paid to an attorney in connection with legal services.
Enter the amount codes in ascending sequence (i.e., 1247ACbbbbbb), left justify information, and fill unused positions with blanks. For further clarification of the amount codes, contact IRS/MCC. (In this example, "b" denotes blanks in the designated positions. Do not enter the letter "b.")
Note: A type of return and an amount code must be present in every Payer "A" Record even if no money amounts are being reported. For a detailed explanation of the information to be reported in each amount code, refer to the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G."
Amount Codes Form 1098. For Reporting Mortgage
Mortgage Interest Interest Received
Statement From Payers/Borrowers
(Payer of Record) on
Form 1098:
Amount
Code Amount Type
1 Mortgage
interest
received
from
payer(s)/b-
orrower(s)
2 Points paid
on purchase
of principal
residence
3 Refund (or
credit) of
overpaid
interest
Amount Codes Form 1098-E. For Reporting Interest
Student Loan Interest on Student Loans on
Statement Form 1098-E
Amount
Code Amount Type
1 Student loan
interest
received
Amount Codes Form 1098-T. For Reporting Tuition
Tuition Payments Payments on Form
Statement 1098-T
Amount
Code Amount Type
1 For filer's
use (See Note)
2 For filer's
use (See Note)
Note: When reporting Form 1098-T magnetically/electronically, the filer must use Type of Return Code 8 in position 27, and Amount Codes 1 and 2 in positions 28 and 29 of the Payer "A" Record. However, if no money is being reported, the payment amount fields will contain zeros. There is no requirement for filers to report money amounts on Form 1098-T for Tax Year 1998.
Amount Codes Form 1099-A. For Reporting the
Acquisition or Abandonment Acquisition or
of Secured Property Abandonment of Secured
(See Note) Property on Form
1099-A:
Amount
Code Amount Type
2 Balance of
principal
outstanding
4 Fair market
value of
property
Note: If, the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured property for one debtor and the filer would be required to file both Forms 1099-A and 1099-C (Cancellation of Debt), the filer is required to file Form 1099-C only. See the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" for further information on coordination with Form 1099-C.
Amount Codes Form 1099-B- For Reporting Payments
Proceeds From on Form 1099-B:
Broker and
Barter Exchange Amount
Transactions Code Amount Type
2 Stocks, bonds,
etc. (For
forward
contracts, see
Note 1)
3 Bartering (Do
not report
negative
amounts.)
4 Federal income
tax withheld
(backup
withholding)
(Do not report
negative
amounts.)
6 Profit (or
loss) realized
on closed
regulated
futures or
foreign
currency
contracts in
1998 (See Note
2)
7 Unrealized
profit (or
loss) on open
contracts-
12/31/97 (See
Note 2)
8 Unrealized
profit (or
loss) on open
contracts-
12/31/98
(See Note 2)
9 Aggregate
profit (or
loss) (See Note
2)
Note 1: The payment amount field associated with Amount Code 2 may be used to report a loss from a closing transaction on a forward contract. Refer to the "B" Record - General Field Descriptions, Payment Amount Fields, for instructions on reporting negative amounts.
Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used for the reporting of regulated futures or foreign currency contracts.
Amount Codes Form 1099-C. For Reporting
Cancellation of Debt Cancellation of Debt
(See Note 1) on Form 1099-C:
Amount
Code Amount Type
2 Amount of
debt canceled
3 Interest,
if included,
in Amount
Code 2
7 Fair market
value of
property
(See Note 2)
Note 1: If, in the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured property for one debtor and the filer would be required to file both Forms 1099-C and 1099-A (Acquisition or Abandonment of Secured Property), the filer is required to file Form 1099-C only. See the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" for further information on coordination with Form 1099-A.
Note 2: Amount Code 7 will be used only if a combined Form 1099-A and 1099-C is being filed.
Amount Codes Form 1099-DIV. For Reporting Payments
Dividends and Distributions on Form 1099-DIV:
Amount
See the 1998 "Instructions for Code Amount Type
Forms 1099, 1098, 5498 and
W-2G" for further information 1 Ordinary
on Form 1099-DIV. dividends
2 Total
capital
gains
distributions
3 28% rate gain
4 Unrecaptured
section 1250
gain
5 Section 1202
gain
6 Nontaxable
distributions
7 Federal income
tax withheld
(backup
withholding)
8 Investment
expenses
9 Foreign tax
paid
A Cash
liquidation
distribution
B Noncash
liquidation
distribution
Amount Codes Form 1099-G. For Reporting Payments
Certain Government Payments on Form 1099-G:
Amount
Code Amount Type
1 Unemployment
compensation
2 State or local
income tax
refunds,
credits, or
offsets
4 Federal income
tax withheld
(backup
withholding) or
voluntary
withholding on
unemployment
compensation or
Commodity
Credit
Corporation
Loans, or
certain crop
disaster
payments
6 Taxable grants
7 Agriculture
payments
Amount Codes Form 1099-INT. For Reporting Payments
Interest Income on Form 1099-INT:
Amount
Code Amount Type
1 Interest income
not included in
Amount Code 3
2 Early
withdrawal
penalty
3 Interest on
U.S. Savings
Bonds and
Treasury
obligations
4 Federal income
tax withheld
(backup
withholding)
5 Foreign tax
paid
Amount Codes Form 1099-LTC. For Reporting
Long-Term Care and Payments on Form
Accelerated Death Benefits 1099-LTC:
Amount
Code Amount Type
1 Gross long-term
care benefits
paid
2 Accelerated
death benefits
paid
Amount Codes Form 1099-MISC. For Reporting Payments
Miscellaneous Income on Form 1099-MISC:
Amount
Code Amount Type
1 Rents (See Note
1)
2 Royalties (See
Note 2)
3 Other income
4 Federal income
tax withheld
(backup
withholding or
withholding on
payments of
Indian gaming
profits)
5 Fishing boat
proceeds
6 Medical and
health care
payments
7 Nonemployee
compensation
8 Substitute
payments in
lieu of or
interest
A Crop insurance
proceeds
B Excess golden
parachute
payments
C Gross proceeds
paid to an
attorney in
connection with
legal services
Note 1: If reporting the Direct Sales Indicator only in position 547 of the Payee "B" Record, use Type of Return Code A for 1099-MISC in position 27, and Amount Code 1 in position 28 of the Payer "A" record. All payment amount fields in the Payee "B" record will contain zeros.
Note 2: Do not report timber royalties under a "pay-as-cut" contract; these must be reported on Form 1099-S.
Amount Codes Form 1099-MSA- For Reporting
Distributions From Distributions from
Medical Savings Accounts Medical Savings
Accounts on Form
1099-MSA:
Amount
Code Amount Type
1 Gross
distribution
2 Earnings on
excess
contributions
Amount Codes Form 1099-OID- For Reporting Payments
Original Issue Discount on Form 1099-OID:
Amount
Code Amount Type
1 Original issue
discount for
1998
2 Other periodic
interest
3 Early
withdrawal
penalty
4 Federal income
tax withheld
(backup
withholding)
Amount Codes Form 1099-PATR For Reporting Payments
Taxable Distributions Received on Form 1099-PATR:
From Cooperatives
Amount
Code Amount Type
1 Patronage
dividends
2 Nonpatronage
distributions
3 Per-unit retain
allocations
4 Federal income
tax withheld
(backup
withholding)
5 Redemption of
nonqualified
notices and
retain
allocations
Pass-Through
Credits (See
Note)
6 For filers' use
for pass
through credits
7 Investment
credit
8 Work
opportunity
credit
9 Patron's
alternative
minimum tax
(AMT)
adjustment
Note: Amount Codes 6, 7, 8, and 9 are reserved for the patron's share of unused credits that the cooperative is passing through to the patron. Other credits, such as the Indian employment credit may be reported in Amount Code 6. The title of the credit reported in Amount Code 6 may be reported in the Special Data Entries Field in the Payee "B" Record. The amounts shown for Amount Codes 6, 7, 8, and 9 must be reported to the payee. These Amount Codes and the Special Data Entries Field are for the convenience of the filer. This information is not needed by IRS/MCC.
Amount Codes Form 1099-R- For Reporting Payments
Distributions From on Form 1099-R:
Pensions, Annuities.
Retirement or Profit-Sharing Amount
Plans, IRAs. Code Amount Type
Insurance Contracts,
etc. 1 Gross
distribution
(See Note 1)
2 Taxable amount
(See Note 2)
3 Capital gain
(included in
Amount Code 2)
4 Federal income
tax withheld
(See Note 3)
5 Employee
contributions
or insurance
premiums
6 Net unrealized
appreciation in
employer's
securities
8 Other
9 Total employee
contributions
A Traditional
IRA/SEP/SIMPLE
distribution
(See Note 4)
Note 1: If the payment shown for Amount Code 1 is a total distribution, enter a "1" (one) in position 549 of the "B" Record. An amount must be shown in Payment Amount Field 1 unless reporting an amount ONLY in Payment Amount Field 8. If a distribution is a loss, do not enter a negative amount. For example, if stock is distributed but the value is less than the employee's after-tax contributions, enter the value of the stock in Payment Amount Field 1, enter "0" (zero) in Payment Amount Field 2, and enter the employee's contributions in Payment Amount Field 5.
Note 2: If the taxable amount cannot be determined, enter a "1" (one) in position 547 of the "B" Record. For a traditional IRA, SEP, or SIMPLE distribution, generally enter in Payment Amount Field A the same amount entered in Payment Amount Field 1.
Note 3: See the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" for information concerning Federal income tax withheld for Form 1099-R.
Note 4: For Form 1099-R, generally, report the total amount distributed from an IRA, SEP, or SIMPLE in Payment Amount Field A (IRA/SEP/SIMPLE Distribution), as well as Payment Amount Field 1 (Gross Distribution) of the "B" Record. Refer to the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" for exceptions.
Amount Codes Form 1099-S. For Reporting Payments
Proceeds From on Form 1099-S:
Real Estate
Transactions Amount
Code Amount Type
2 Gross proceeds
(See Note)
5 Buyer's part of
real estate tax
Note: Include payments of timber royalties made under a "pay-as- cut" contract, reportable under section 6050N. If timber royalties are being reported, enter "TIMBER" in the description field of the "B" record.
Amounts Codes Form 5498 - For Reporting Payments
IRA Contribution Information on Form 5498:
(See Note)
Amount
Code Amount Type
1 IRA
contributions
(other than
amounts in
Amount Codes 2,
3, 7, 9 and A)
2 Rollover
contributions
3 Roth conversion
amount
4 Fair market
value of
account
5 Life insurance
cost included
in Amount Code
1
7 Employer SEP
contributions
8 SIMPLE
contributions
9 Roth IRA
contributions
A Education IRA
contributions
Note: For information regarding Inherited IRAs, refer to the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" and Rev. Proc. 89-52, 1989-2 C.B. 632. Beneficiary information must be given in the Payee Name Line Field of the "B" Record.
If reporting IRA contributions for a Desert Storm/Shield participant for other than 1998 or an Operation Joint Guard (OJG) (Bosnia Region) participant, enter "DS" for Desert Storm or Joint Endeavor or "JG" for Joint Guard, the year for which the contribution was made, and the amount of the contribution in the Special Data Entries Field of the "B" Record. Do not enter the contributions in Amount Code 1. For information concerning Desert Storm/Shield participant reporting, refer to the 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G," or Notice 91-17, 1991-1 C.B. 319. The instructions for filing Form 5498 for Desert Storm/Shield participants will also apply to participants of Joint Endeavor or Operations Joint Guard (OJG) of the Bosnia Region.
Amount Codes Form 5498-MSA - For Reporting
Medical Saving Account Contributions to
Information Medical Savings
Accounts :
Amount
Code Amount Type
1 Employee or
self-employed
person's MSA
contributions
made in 1998
and 1999 for
1998
2 Total MSA
contributions
made in 1998
3 Total MSA
contributions
made in 1999
for 1998
4 MSA rollover
contributions
(not included
in Amount Code
1, 2, or 3)
(See Note 1)
5 Fair market
value of
account (See
Note 2)
Note 1: This is the amount of any rollover made to this MSA in 1998 after a distribution from another MSA. For detailed information on reporting, see 1998 "Instructions for Forms 1099, 1098, 5498 and W-2G."
Note 2: This is the fair market value (FMV) of the account at the end of 1998.
Amount Codes Form W-2G - For Reporting Payments
Certain Gambling on Form W-2G:
Winnings
Amount
Code Amount Type
1 Gross winnings
2 Federal income
tax withheld
7 Winnings from
identical
wagers
40-47 Blank 8 Enter blanks.
48 Original File 1 Required for original
Indicator files only. Enter "1"
(one) if the
information
is original data.
Otherwise, enter a
blank.
49 Replacement 1 Required for
File Indicator replacement files only.
Enter "1" (one) if the
purpose of this file is
to replace a file that
IRS/MCC returned to the
transmitter due to
errors encountered in
processing. This is a
file that has not been
successfully processed
by IRS. Otherwise,
enter a blank.
50 Correction 1 Required for correction
File Indicator files only. Enter "1"
(one) if the purpose
of this file is to
correct information
which was previously
submitted to IRS/MCC,
was processed, but
contained erroneous
information. Do not
submit original
information as
corrections. Any
information return
which was inadvertently
omitted from a file
must be submitted
as original. Otherwise,
enter a blank.
51 Blank 1 Enter a blank.
52 Foreign 1 Enter a "1" (one) if
Entity the payer is a foreign
Indicator entity and income is
paid by the foreign
entity to a U. S.
resident. If the payer
is not a foreign
entity, enter a blank
(See Note).
Note: If payers report the Foreign Entity Indicator erroneously,
they may be subject to a penalty for providing incorrect information
to IRS.
53-92 First 40 Required. Enter the
Payer Name name of the payer whose
Line TIN appears in
positions 12-20 of the
"A" Record. Any
extraneous information
must be deleted. Left
justify information,
and fill unused
positions with blanks.
(Filers should not
enter a transfer
agent's name in this
field. Any transfer
agent's name should
appear in the Second
Payer Name Line Field.)
Note: When reporting Form 1098, Mortgage Interest Statement, and Form 1098-E, Student Loan Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest or payment, the filer of Forms 1098 and 1098-E (the payer). The "B" Record will reflect the individual paying the interest (the borrower/payer of record) and the amount paid. For Form 1099-S, the "A" Record-will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the "B" Record will reflect the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the "A" Record will reflect the name and TIN of the educational institution receiving tuition payments. The "B" Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.
93-132 Second 40 If the Transfer (or
Payer Name Paying) Agent Indicator
Line (position 133) contains
a "1" (one), this field
must contain the name
of the transfer (or
paying) agent. If the
indicator contains a
"0" (zero), this field
may contain either a
continuation of the
First Payer Name Line
or blanks. Left justify
information and fill
unused position with
blanks.
133 Transfer Agent 1 Required. Identifies
Indicator the entity in the
Second Payer Name Line
Field (See Part A, Sec.
17 for a definition of
transfer agent.)
Code Meaning
1 The entity in
the Second
Payer Name Line
Field is the
transfer (or
paying) agent.
0(zero) The entity
shown is not
the transfer
(or paying)
agent (i.e.,
the Second
Payer Name Line
Field contains
either a
continuation of
the First Payer
Name Line Field
or blanks).
134-173 Payer Shipping 40 Required. If the
Address Transfer Agent
Indicator in position
133 is a "1" (one),
enter the shipping
address of the transfer
(or paying) agent.
Otherwise, enter the
actual shipping address
of the payer. The
street address should
include number, street,
apartment or suite
number (or P. O. Box if
mail is not delivered
to street address).
Left justify
information, and fill
unused positions with
blanks.
For U.S. addresses, the payer city, state, and ZIP code must be reported as a 40, 2, and 9 position field, respectively. Filers must adhere to the correct format for the payer city, state, and ZIP code. For foreign addresses, filers may use the payer city, state, and ZIP code as a continuous 51 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Entity Indicator in position 52 must contain a "1" (one).
174-213 Payer City 40 Required. If the
Transfer Agent
Indicator in position
133 is a "1" (one),
enter the city, town,
or post office of the
transfer agent.
Otherwise, enter the
city, town, or post
office of the payer.
Left justify
information, and fill
unused positions
with blanks. Do not
enter state and ZIP
code information in
this field.
214-215 Payer State 2 Required. Enter the
valid U. S. Postal
Service
state-abbreviations
for states. Refer to
the chart of valid
state abbreviations
in-Part A, Sec. 18.
216-224 Payer ZIP 9 Required. Enter the
valid nine digit ZIP
code assigned by the
U.S. Code Postal
Service. If only the
first five digits are
known, left justify
information and fill
the unused positions
with blanks. For
foreign countries,
alpha characters are
acceptable as long as
the filer has entered a
"1" (one) in the
Foreign Entity
Indicator, located in
Field Position 52 of
the "A" Record.
225-239 Payer's Phone 15 Enter the payer's phone
Number & number and extension.
Extension
240-748 Blank 509 Enter blanks.
749-750 Blank 2 Enter blanks or
carriage return/line
feed (CR/LF)
characters.
SECTION 9. PAYER "A" RECORD - RECORD LAYOUT
Record Payment Blank Payer's Paye Name Last Filing
Type Year TIN Control Indicator
1 2-5 6-11 12-20 21-24 25
Combined Type Original Replacement Correction
Federal/- of Amount Blank File File File
State Filer Return Codes Indicator Indicator Indicator
26 27 28-39 40-47 48 49 50
Foreign First Second Transfer Payer
Blank Entity Payer Name Payer Name Agent Shipping
Indicator Line Line Indicator Address
51 52 53-92 93-132 133 134-173
Payer Payer's Phone
Payer Payer ZIP Number and Blank Blank or
City State Code Extension CR/LF
174-213 214-215 216-224 225-239 240-748 749-750
SECTION 10. PAYEE "B" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUTS
.01 The "B" Record contains the payment information from the information returns. When filing information returns, the format for the "B" Records will remain constant and is a fixed length of 750 positions. The record layout for field positions 1 through 543 is the same for all types of returns. Field positions 544 through 750 vary for each type of return to accommodate special fields for individual forms. In the "A" Record, the amount codes that appear in field positions 28 through 39 will be left-justified and filled with blanks. In the "B" Record, the filer must allow for all twelve Payment Amount Fields. For those fields not used, enter "0s" (zeros). For example, a payer reporting on Form 1099-MISC should enter "A" in field position 27 of the "A" Record, Type of Return. If reporting payments for Amount Codes 1, 2, 4, 7, A and C, the payer would report field positions 28 through 39 of the "A" Record as "1247ACbbbbbb." (In this example, "b" denotes blanks. Do not enter the letter "b".) In the "B" Record:
Positions 55 through 66 for Payment Amount 1 will represent
rents.
Positions 67-78 for Payment Amount 2 will represent royalties.
Positions 79-90 for Payment Amount 3 will be "0's" (zeros).
Positions 91-102 for Payment Amount 4 will represent Federal
income tax withheld.
Positions 103-126 for Payment Amounts 5 and 6 will be "0's"
(zeros).
Positions 127-138 for Payment Amount 7 will represent
nonemployee compensation.
Positions 139-162 for Payment Amounts 8 and 9 will be "0's"
(zeros).
Positions 163-174 for Payment Amount A will represent crop
insurance proceeds.
Positions 175-186 for Payment Amount B will be "0's" (zeros).
Positions 187-198 for Payment Amount C will represent gross
proceeds paid to an attorney in connection with legal
services.
.02 The following specifications include a field in the payee records called "Name Control" in which the first four characters of the payee's surname are to be entered by the filer.
(a) If filers are unable to determine the first four characters of the surname, the name Control Field may be left blank. Compliance with the following will facilitate IRS computer programs in identifying the correct name control:
(1) The surname of the payee whose TIN is shown in the "B" Record should always appear first. If, however, the records have been developed using the first name first, the filer must leave a blank space between the first and last names.
(2) In the case of multiple payees, only the surname of the payee whose TIN (SSN, EIN, ITIN, or ATIN) is shown in the "B" Record must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second Payee Name Line.
.03 See Part A. Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).
.04 For all fields marked "Required", the transmitter must provide the information described under Description and Remarks. For those fields not marked "Required," the transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and for the indicated length.
.05 All records must be a fixed length of 750 positions.
.06 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required by state or local governments, or for the personal use of the filer. IRS does not use the data provided in the Special Data Entries Field; therefore, the IRS program does not check the content or format of the data entered in this field. It is the filer's option to use the Special Data Entry Field. This field will not affect the processing of the "B" Records.
.07 Following the Special Data Entries Field in the "B" Record, payment fields have been allocated for State Income Tax Withheld and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by IRS/MCC.
.08 Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A, Sec. 16, to participate in this program. Filers may not file Forms 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-LTC, 1099-MSA, 1099-S, 5498-MSA, and W-2G under the Combined Federal/State Filing Program.
.09 All alpha characters in the "B" Record must be uppercase.
.10 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 000000001000 in the payment amount field.
.11 IRS strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous notices. Transmitters should be especially careful that the names, TINs, account numbers, types of income, and income amounts are correct.
.12 When reporting Form 1098, Mortgage Interest Statement and Form 1098-E, Student Loan Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest or payment, the filer of the Forms 1098 and 1098-E (the payer). The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Form 1099-S, the "A" Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the "B" record will reflect the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the "A" Record will reflect the name and TIN of the educational institution receiving tuition payments. The "B" Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.
RECORD NAME: PAYEE "B" RECORD
Field
Position Field Title Length Description and Remarks
Field
1 Record Type 1 Required, Enter "B."
2-5 Payment Year 4 Required. Enter "1998"
(unless reporting prior
year data).
6 Corrected 1 Required for
Return. corrections only.
Indicator Indicate a corrected
return
(See Note) Code Definition
G If this is a
one-transaction
correction or
the first of a
two-transaction
correction
C If this is the
second
transaction of
a two
transaction
correction
Blank If this is not
a return being
submitted to
correct
information
already
processed by
IRS.
Note: C, G, and non-coded records must be reported using separate
Payer "A" Records. Refer to Part A, Sec. 13, for specific
instructions on how to file corrected returns.
7-10 Name Control 4 If determinable, enter
the first four
characters of the
surname of the person
whose TIN is being
reported in positions
12-20 of the "B"
Record; otherwise,
enter blanks. This
usually is the payee.
If the name that
corresponds to the TIN
is not included in the
first or second payee
name line and the
correct name control is
not provided, a backup
withholding notice may
be generated for the
record. Surnames of
less than four
characters should be
left-justified, filling
the unused positions
with blanks. Special
characters and imbedded
other than a sole
proprietorship, use the
first four significant
characters of the
business name.
Disregard the word
"the" when it is the
first word of the name,
unless there are only
two words in the name.
A dash (-) and an
ampersand (&) are the
only acceptable special
characters. Surname
prefixes are considered
part of the surname.
e.g., for Van Elm, the
name control would be
VANE.
Note: Although extraneous words, titles, and special characters are allowed (i.e., Mr., Mrs., Dr., apostrophe ['], or dash [-1), this information may be dropped during subsequent IRS/MCC processing.
The following examples may be helpful to filers in developing the Name Control:
Name Name Control
Individuals:
Jane Brown BROW
John A. Lee LEE /*/
James P. En, Sr. EN /*/
John O'Neill ONEI
Mary Van Buren VANB
Juan De Jesus DEJE
Gloria A. El-Roy EL-R
Mr. John Smith SMIT
Joe McCarthy MCCA
Pedro Torres-Lopes TORR
Maria Lopez Moreno /**/ LOPE
Binh To La LA /*/
Nhat Thi Pham PHAM
Mark D'Allesandro DALL
Corporations:
The First National Bank FIRS
The Hideaway THEH
A & B Cafe A&BC
11TH Street Inc. 11TH
Sole
Proprietor:
Mark Hemlock DBA
The Sunshine Club HEML
Partnership:
Robert Aspen and
Bess Willow ASPE
Harold Fir, Bruce Elm,
and Joyce Spruce et al Ptr FIR /*/
Estate:
Frank White Estate WHIT
Estate of Sheila Blue BLUE
Trusts and
Fiduciaries:
Daisy Corporation Employee
Benefit Trust DAIS
Trust FBO The
Cherryblossom Society CHER
Exempt
Organization:
Laborer's Union, AFL-CIO LABO
St. Bernard's Methodist
Church Bldg. Fund STBE
/*/ Name Controls of less than four significant characters must be left-justified and blank-filled.
/**/ For Hispanic names, when two last names are shown for an individual, derive the name control from the first last name.
11 Type of TIN 1 This field is used to
identify the Taxpayer
Identification Number
(TIN) in positions
12-20 as either an
Employer Identification
Number (EIN), a Social
Security Number (SSN),
an Individual Taxpayer
Identification Number
(ITIN) or an Adoption
Taxpayer Identification
Number (ATIN). Enter
the appropriate code
from the following
table:
Code Type Type
of of
TIN Account
1 EIN A
business,
organization
sole
proprietor,
or other
entity
2 SSN An
individual,
including a
sole
proprietor
or
2 ITIN An
individual
required to
have a
taxpayer
identifica-
tion number,
but who is
not eligible
to obtain an
SSN
or
2 ATIN An adopted
individual
prior to the
assignment
of a social
security
number
Bl- N/A If the type
of TIN is not
determinable,
enter a
blanks
12-20 Payee's 9 Required. Enter the
Taxpayer nine digit Taxpayer
Identification Identification Number
Number (TIN) of the payee (SSN,
ITIN, ATIN, or EIN). If
an identification
number has been applied
for but not received,
enter blanks. Do not
enter hyphens or alpha
characters. All zeros,
ones, twos, etc., will
have the effect of an
incorrect TIN. If the
TIN is not available,
enter blanks (See
Note).
Note: IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers who submit data with missing TINs, and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A Notices) or penalties for missing or incorrect TINs.
21-40 Payer's 20 Enter any number
Account Number assigned by the payer
For Payee to the payee (e.g.,
checking or savings
account number). Filers
are encouraged to use
this field. This number
helps to distinguish
individual payee
records and should be
unique for each
document. Do not use
the payee's TIN since
this will not make each
record unique. This
information is
particularly useful
when corrections are
filed. This number will
be provided with the
backup withholding
notification and may be
helpful in identifying
the branch or
subsidiary reporting
the transaction. Do not
define data in this
field in packed decimal
format. If fewer than
twenty characters are
used, filers may either
left or right justify,
filling the remaining
positions with blanks.
41-44 Payer's Office 4 Enter office code of
Code payer; otherwise, enter
blanks. For payers with
multiple locations,
this field may be used
to identify the
location of the office
submitting the
information return.
45-54 Blank 10 Enter blanks.
Payment Required. Filers should
Amount Fields allow for all payment
(Must be numeric) amounts. For those not
(See Note) used, enter zeros. For
example: If position
27, Type of Return, of
the "A" Record, is "A"
(for 1099-MISC) and
positions 28-39,
Amount Codes, are
"1247ACbbbbbb". This
indicates the payer is
reporting any or all
six payment amounts in
all of the following.
"B" Records. (In this
example, "b" denotes
blanks in the
designated positions.
Do not enter the letter
"b.") Payment Amount 1
will represent rents;
Payment Amount 2 will
represent royalties;
Payment Amount 3 will
be all "0's" (zeros);
Payment Amount 4 will
represent Federal
income tax withheld;
Payment Amounts 5 and 6
will be all "0's"
(zeros); Payment amount
7 will represent
nonemployee
compensation; Payment
Amounts 8 and 9 will be
all "0's" (zeros);
Payment Amount A will
represent crop
insurance proceeds;
Payment Amount B will
be all "0's (zeros);
and Payment Amount C
will represent gross
proceeds paid to an
attorney in connection
with legal services.
Each payment field must
contain 12 numeric
characters. Each
payment amount must
contain U.S. dollars
and cents. The
right-most two
positions represent
cents in the payment
amount fields. Do not
enter dollar signs,
commas, decimal points,
or negative payments,
except those items that
reflect a loss on Form
1099-B. Positive and
negative amounts are
indicated by placing a
"+ " (plus) or "-"
(minus) sign in the
left-most position of
the payment amount
field. A negative over
punch in the units
position may be used,
instead of a minus
sign, to indicate a
negative amount. If a
plus sign, minus sign,
or negative over punch
is not used, the number
is assumed to be
positive. A negative
over punch cannot be
used in PC created
files. Payment amounts
must be right-justified
and unused positions
must be zero-filled.
Federal income tax
withheld cannot be
reported as a negative
amount on any form.
Note: Filers must enter numeric information in all payment fields when filing magnetically or electronically. However, when reporting information on the statement to recipient, the payer may be instructed to leave a box blank. Follow the guidelines provided in the paper instructions for the statement to recipient.
55-66 Payment 12 The amount reported in
Amount 1 /*/ this field represents
payments for Amount
Code 1 in the "A"
Record.
67-78 Payment 12 The amount reported in
Amount 2 /*/ this field represents
payments for Amount
Code 2 in the "A"
Record.
79-90 Payment 12 The amount reported in
Amount 3 /*/ this field represents
payments for Amount
Code 3 in the "A"
Record.
91-102 Payment 12 The amount reported in
Amount 4 /*/ his field represents
payments for Amount
Code 4 in the "A"
Record.
103-114 Payment 12 The amount reported in
Amount 5 /*/ this field represents
payments for Amount
Code 5 in the "A"
Record.
115-126 Payment 12 The amount reported in
Amount 6 /*/ this field represents
payments for Amount
Code 6 in the "A"
Record.
127-138 Payment 12 The amount reported in
Amount 7 /*/ this field represents
payments for Amount
Code 7 in the "A"
Record.
139-150 Payment 12 The amount reported in
Amount 8 /*/ this field represents
payments for Amount
Code 8 in the "A"
Record.
151-162 Payment 12 The amount reported in
Amount 9 /*/ this field represents
payments for Amount
Code 9 in the "A"
Record.
163-174 Payment 12 The amount reported in
Amount A /*/ this field represents
payments for Amount
Code A in the "A"
Record.
175-186 Payment 12 The amount reported in
Amount B /*/ this field represents
payments for Amount
Code B in the "A"
Record.
187-198 Payment 12 The amount reported in
Amount C /*/ this field represents
payments for Amount
Code C in the "A"
Record.
/*/ If there are discrepancies between the payment amount fields
and the boxes on the paper forms, the instructions in this revenue
procedure govern.
199-246 Reserved 48 Enter blanks.
247 Foreign 1 If the address of the
Country payee is in a foreign
Indicator country, enter a "1"
(one) in this field;
otherwise, enter blank.
When filer use this
indicator, they may use
a free format for the
payee city, state, and
ZIP Code. Address
information must not
appear in the First or
Second Payee Name Line.
248-287 First Payee 40 Required. Enter the
Name Line name of the payee
(See Notes) (preferably surname
first) whose Taxpayer
Identification Number
(TIN) was provided in
positions 12-20 of the
"B" Record. Left
justify and fill unused
positions with blanks.
If more space is
required for the name,
utilize the Second
Payee Name Line Field.
If there are multiple
payees, only the name
of the payee whose TIN
has been provided
should be entered in
this field. The names
of the other payees may
be entered in the
Second Payee Name Line
Field. If reporting
information for a sole
proprietor, the
individual's name must
always be present,
preferably on the First
Payee Name Line. The
use of the business
name is optional in the
Second Payee Name Line
Field.
Note 1: When reporting Form 1098, Mortgage Interest Statement, and Form 1098-E, Student Loan Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest or payment, the filer of Forms 1098 and 1098-E (the payer). The "B" Record will reflect the individual paying the interest (the borrower/payer of record) and the amount paid. For Form 1099-S, the "A" Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the "B" Record will reflect the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the "A" Record will reflect the name and TIN of the educational institution receiving tuition payments. The "B" Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.
Note 2: For Form 5498 Inherited IRAs, enter the beneficiary's name followed by the word "beneficiary." For example, "Brian Young as beneficiary of Joan Smith" or something similar that signifies that the IRA was once owned by Joan Smith. Filers may abbreviate the word "beneficiary" as, for example, "benef." Refer to the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G." The beneficiary's TIN must be reported in positions 12-20 of the "B" Record.
Note 3: When reporting Form 1099-LTC, Long-Term Care and Accelerated Death Benefits, the Payee Name Line of the "B" Record will reflect the policyholder. The name of the insured will be reported in Field Positions 557-596 of the Payee "B" Record.
Note 4: End First Payee Name Line with a full word. Do not split words.
288-327 Second Payee 40 If there are multiple
Name Line payees, (e.g.,
partners, joint owners,
or spouses), use this
field for those names
not associated with the
TIN provided in
positions 12-20 of the
"B" Record or if not
enough space was
provided in the First
Payee Name Line,
continue the name in
this field (See Note).
Do not enter address
information. It is
important that filers
provide as much payee
information to IRS/MCC
as possible to identify
the payee associated
with the TIN. Left
justify and fill unused
positions with blanks.
Fill with blanks if no
entries are present for
this field.
Note: End First Payee Name Line with a full word. Do not split
words. Begin Second Payee Name Line with the next sequential word.
328-367 Blank 40 Enter blanks.
368-407 Payee Mailing 40 Required. Enter mailing
Address address of payee.
Street address should
include number, street,
apartment or suite
number (or P.O. Box if
mail is not delivered
to street address).
Left justify
information and fill
unused-positions with
blanks. This field must
not contain any data
other than the payee's
mailing address.
For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must adhere to the correct format for the payee city, state, and ZIP code.
For foreign address, filers may use the payee city, state, and ZIP code as a continuous 51 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Country Indicator in position 247 must contain a "1" (one).
408-447 Blank 40 Enter blanks.
448-487 Payee City 40 Required. Enter the
city, town or post
office. Left justify
information and fill
the unused positions
with blanks. Enter APO
or FPO if applicable.
Do not enter state and
ZIP code information in
this field.
488-489 Payee State 2 Required. Enter the
valid U.S. Postal
Service state
abbreviations for
states or the
appropriate postal
identifier (AA, AE, or
AP) described in Part
A, Sec. 18.
490-498 Payee ZIP Code 9 Required. Enter the
valid nine digit ZIP
Code assigned by the
U.S. Postal Service. If
only the first five
digits are known, left
justify information and
fill the unused
positions with blanks.
For foreign countries,
alpha characters are
acceptable as long as
the filer has entered a
"1" (one) in the
Foreign Country
Indicator, located in
position 247 of the "B"
Record.
499-543 Blank 45 Enter blanks.
STANDARD PAYEE "B" RECORD FORMAT FOR ALL TYPES OF RETURNS, POSITIONS 1-543
Record Payment Corrected Name Type of Payee's Payer's
Type Year Return Control TIN TIN Account
Indicator Number
1 2-5 6 7-10 11 12-20 21-40
Payer's Blank Payment Payment Paymert Payment Payment
Office Amount 1 Amount 2 Amount 3 Amount 4 Amount 5
Code
41-44 45-54 55-66 67-78 79-90 91-10 103-114
Payment Payment Payment Payment Payment Payment
Amount 6 Amount 7 Amount 8 Amount 9 Amount A Amount B
115-126 127-138 139-150 151-162 163-174 175-186
Payment Reserved Foreign First Payee Second Payee Blank
Amount C Country Name Line Name Line
Indicator
187-198 199-246 247 248-287 288-327 328-367
Payee Blank Payee Payee Payee Blank
Mailing City State ZIP Code
Address
368-407 408-447 448-487 488-489 490-498 499-543
The following sections define the field positions for the different types of returns in the Payee "B" Record (positions 544-750):
(1) Forms 1098, 1098-E, and 5498-MSA
(2) Form 1098-T
(3) Form 1099-A
(4) Form 1099-B
(5) Form 1099-C
(6) Form 1099-DIV /*/
(7) Form 1099-G /*/
(8) Form 1099-INT /*/
(9) Form 1099-LTC
(10) Form 1099-MISC /*/
(11) Form 1099-MSA
(12) Form 1099-OID /*/
(13) Form 1099-PATR /*/
(14) Form 1099-R /*/
(15) Form 1099-S
(16) Form 5498 /*/
(17) Form W-2G
/*/ These forms may be filed through the Combined Federal/State Filing Program. IRS/MCC will forward these records to participating states for filers who have been approved for the program. See Part A, Sec. 16 for information about the program, including specific codes for the record layouts.
(1) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORMS 1098, 1098-E, AND 5498-MSA
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544-662 Blank 119 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-748 Blank 26 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORMS 1098, 1098-E, IN 5498-MSA
Blank Special Blank Blank
Data or CR/LF
Entries
544-662 663-722 723-748 749-750
(2) Payee "B" Record - Record Layout Positions 544-750 for Form 1098-T
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Status of 1 Enter the appropriate
Student indicator from the
Indicator table below:
Indicator Usage
1 Student is
carrying at
least
one-half
the-normal
full-time
work load
for course
of study.
Blank Student is
carrying
less than
one-half
the-normal
full-time
work load
for course
of study.
548 Graduate 1 Enter the appropriate
Student indicator from the
Indicator table below:
Indicator Usage
1 Student is
enrolled
exclusively
in a
graduate
level
program.
Blank Student is
enrolled in
an
under-
graduate
level
program.
549-662 Blank 114 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for the
filing requirements. If
this field is not
utilized, enter blanks.
723-748 Blank 26 Enter blanks.
749-750 Blank 2 Enter blanks or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FORM 1098-T
Blank Status of Graduate Blank Special Blank Blank or
Student Student Data CR/LF
Indicator Indicator Entries
544-546 547 548 549-662 663-722 723-748 749-750
(3) Payee "B" Record - Record Layout Positions 544-750 for Form 1099-A
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Personal 1 Enter the appropriate
Liability indicator from the
Indicator table below:
Indicator Usage
1 Borrower was
personally
liable for
repayment of
the debt.
Blank Borrower was
not
personally
liable for
repayment of
the debt.
548-555 Date of 8 Enter the acquisition
Lender's date of the secured
Acquisition or property or the data
Knowledge of the lender first knew
Abandonment or had reason to know
the property was
abandoned, in the
format YYYYMMDD (i.e.,
19981022). Do not enter
hyphens or slashes.
556-594 Description 39 Enter a brief
of Property description of the
property. For real
property, enter the
address, or, if the
address does not
sufficiently identify
the property, enter the
section, lot and block.
For personal property,
enter the type, make
and model (e.g.,
Car-1997 Buick Regal or
office equipment).
Enter "CCC" for crops
forfeited on Commodity
Credit Corporation
loans. If fewer than 39
positions are required,
left justify
information and fill
unused positions with
blanks.
595-662 Blank 68 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for the
filing requirements. If
this field is not
utilized, enter blanks.
723-748 Blank 26 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FORM 1099-A
Blank Personal Date of Lender's Description Blank
Liability Acquisition or of
Indicator Knowledge of Property
Abandonment
544-546 547 548-555 556-594 595-662
Special Blank Blank or
Data CR/LF
Entries
663-722 723-748 749-750
(4) Payee "B" Record - Record Layout Positions 544-750 for Form 1099-B
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544 Second TIN 1 Enter "2" to indicate
Notice notification by IRS
(Optional) twice within three
calender years that the
payee provided an
incorrect name and/or
TIN combination;
otherwise, enter a
blank.
545-546 Blank 2 Enter blanks.
547 Gross 1 Enter the appropriate
Proceeds indicator from the
Indicator following table, to
identify amount
reported in Amount Code
2: otherwise enter
blanks.
Indicator Usage
1 Gross
proceeds
2 Gross
proceeds less
commissions
and option
premiums
548-555 Date of Sale 8 For broker
transactions, enter the
trade date of the
transaction. For barter
exchanges, enter the
date when cash,
property, a credit, or
scrip is actually or
constructively received
in the formal YYYYMMDD
(e.g., 19981022). Enter
blanks if this is an
aggregate transaction.
Do not enter hyphens or
slashes.
556-568 CUSIP Number 13 For broker transactions
only, enter the CUSIP
(Committee on Uniform
Security Identification
Procedures) number of
the item reported for
Amount Code 2 (stocks,
bonds, etc.). Enter
blanks if this is an
aggregate transaction.
Enter "0s" (zeros) if
the number is not
available. Right
justify information and
fill unused positions
with blanks.
569-607 Description 39 If fewer than 39
characters are
required, left justify
information and fill
unused positions with
blanks. For broker
transactions, enter a
brief description of
the disposition item
(e.g., 100 shares of
XYZ Corp.). For
regulated futures and
forward contracts,
enter "RFC" or other
appropriate description
and any amount subject
to backup withholding
(see Note). For
bartering transactions,
show the services or
property provided.
Note: The amount withheld in these situations is to be included in Amount Code 4.
608-662 Blank 55 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
735-746 Local Income 12 Local income tax
withheld is for the
convenience of the
filers. Tax Withheld
This information does
not need to be reported
to IRS. The payment
amount must be right
justified and unused
positions must be
zero-filled. If not
reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
747-748 Blank 2 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FORM 1099-B
Second
TIN Gross Date of CUSIP
Notice Blank Proceeds Sale Number Description
(Optional) Indicator
544 545-546 547 548-555 556-568 569-607
State Local Blank
Special Income Income Blank or
Blank Data Tax Tax CR/LF
Entries Withheld Withheld
608-662 663-722 723-734 735-746 747-748 749-750
(5) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-C
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Bankruptcy 1 Enter "1" (one) to
Indicator indicate the debt was
discharged in
bankruptcy, it known.
Indicator Usage
1 Debt was
discharged in
bankruptcy.
Blank Debt was not
discharged in
bankruptcy.
548-555 Date Canceled 8 Enter the date the debt
was canceled in the
format of YYYYMMDD
(i.e., 19981022). Do
not enter hyphens or
slashes.
556-594 Debt Description 39 Enter a description of
the origin of the debt,
such as student loan,
mortgage, or credit
card expenditure. If a
combined Form 1099-C
and 1099-A is being
filed, also enter a
description of the
property.
595-662 Blank 68 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-748 Blank 26 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FORM 1099-C
Special
Blank Bankruptcy Date Debt Blank Data
Indicator Canceled Description Entries
544-546 547 548-555 556-594 595-662 663-722
Blank
Blank or CR/LF
723-748 749-750
(6) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-DIV
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544 Second TIN 1 Enter "2" to indicate
Notice notification by IRS
twice within 3 calendar
years that the payee
provided an incorrect
name and/or TIN
(Optional) combination;
otherwise, enter a
blank.
545-546 Blank 2 Enter blanks.
547-586 Foreign Country 40 Enter the name of the
U.S. foreign country or
Possession. possession to which the
or U.S. withheld
foreign tax applies.
If in the United
States, enter blanks.
587-662 Blank 76 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
747-748 Combined 2 If this payee record is
Federal/ to be forwarded to a
State Code state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code from
Part A, Sec. 16, Table
1. For those payers or
states not
participating in this
program, enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FORM 1099-DIV
Second Foreign
TIN Blank Country Blank Special
Notice or U.S. Data
(Optional) Possess- Entries
ion
544 545-546 547-586 587-662 663-722
Local
State Income Combined
Income Tax Tax Federal/ Blank
Withheld Withheld State or CR/LF
Code
723-734 735-746 747-748 749-750
(7) PAYEE "B" RECORD -- RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-G
Field
Position Field Title Length Description and Remarks
Field
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Trade or 1 Enter "1" (one) to
Business indicate the state or
Indicator local income tax -
refund, credit, or
offset (Amount Code 2)
applies to income from
a trade or business.
Indicator Usage
1 Income tax
refund is
income from a
trade or
business.
Blank Income tax
refund is a
general tax
refund.
548-551 Tax year 4 Enter the tax year for
of Refund which the refund,
credit, or offset
(Amount Code 2) was
issued. The tax year
must reflect the year
for which the payment
was made, not the tax
year of the Form
1099-G. The tax year
must be in the four
position format of YYYY
(i.e. 1998). The valid
range of years for the
refund is 1988 through
1997.
552-662 Blank 111 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data
Entriesfield.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
747-748 Combined 2 If this payee record is
Federal/State Code to be forwarded to a
state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code from
Part A, Sec. 16, Table
1. For those payers or
states not
participating in
this program, enter
blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FORM 1099-G
State
Trade or Tax Year Special Income
Blank Business of Blank Data Tax
Indicator Refund Entries Withheld
544-546 547 548-551 552-662 663-722 723-734
Local Combined
Income Federal/ Blank
Tax State or CR/LF
Withheld Code
735-746 747-748 749-750
(8) PAYEE "B" RECORD -- RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-INT
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544 Second TIN 1 Enter "2" to indicate
Notice notification by IRS
(Optional) twice within three
calendar years that the
payee provided an
incorrect name and/or
TIN combination;
otherwise, enter a
blank.
545-546 Blank 2 Enter blanks.
547-586 Foreign Country 40 Enter the name of the
or U.S. foreign country or U.S.
Possession possession to which the
withheld foreign tax
applies. If in the
United States, enter
blanks.
587-662 Blank 76 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. You may
enter your routing and
transit number (RTN)
here. If this field is
not utilized, enter
blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
747-748 Combined 2 If this payee record is
Federal/State Code to be forwarded to a
state agency as part of
the Combined
Federal/State Filing
Program, enter the valid
state code from Part A,
Sec. 16, Table 1. For
those payers or states
not participating in
this program, enter
blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-INT
Second Foreign State
TIN Country Special Income
Notice Blank or U.S. Blank Data Tax
(Optional) Possession Entries Withheld
544 545-546 547-586 587-662 663-722 723-734
Local Combined
Income Federal/ Blank
Tax State or CR/LF
Withheld Code
735-746 747-748 749-750
(9) PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099- LTC
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Type of 1 Required. Enter the
Payment appropriate indicator
Indicator from the following
table, otherwise, enter
blanks.
Indicator Usage
1 Per diem
2 Reimbursed
amount
548-556 Taxpayer 9 Required. Enter the
Identification Taxpayer Identification
Number of Number of the isured.
Insured
557-596 Name of 40 Required. Enter the
Insured name of the insured.
597-636 Mailing 40 Required. Enter the
Address mailing address of the
of Insured insured. Street address
should include number,
street, apartment or
suite number (or P.O.
Box if not delivered to
street address). Left
justify information and
fill unused positions
with blanks. This field
must not contain any
other data other than
payee's mailing
address.
For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must adhere to the correct format for the payee city, state, and ZIP Code.
For foreign addresses, filers may use the insured's city, state, and ZIP Code as a continuous 51 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Country Indicator in position 247 must contain a "1" (one).
637-676 City of 40 Required. Enter the
Insured city, town, or post
office. Left justify
information and fill
the unused positions
with blanks. Enter APO
or FPO if applicable,
do not enter state and
Zip Code information in
this field.
677-678 State of 2 Required. Enter the
Insured valid U.S. Postal
Service state
abbreviations for
states or the
appropriate postal
identifier (AA, AE, or
AP) described in Part
A, Sec. 18.
679-687 ZIP Code 9 Required. Enter the
of Insured valid nine digit ZIP
Code assigned by the
U.S. Postal Service. If
only the first five
digits are known, left
justify information and
fill the unused
positions with blanks.
For foreign countries,
alpha characters are
acceptable as long as
the filer has entered a
"1" (one) in the
Foreign Country
Indicator, located in
position 247 of the "B"
Record.
688 Status of 1 Enter the appropriate
Illness code from the table
Indicator below to indicate the
(Optional) status of the illness
of the insured;
otherwise, enter blank:
Indicator Usage
1 Chronically
ill
2 Terminally
ill
689-696 Date 8 Enter the latest date
Certified of a doctor's
(Optional) certification of the
status of the insured's
illness. The
format of the date is
YYYYMMDD (e.g.
19981022).
697-722 Blank 26 Enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be justified and
unused positions must
be zero-filled.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information
does not need to be
reported to IRS. The
payment amount must be
right justified and
unused positions must
be zero-filled.
747-748 Blank 2 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-LTC
Type of Mailing
Blank Payment TIN Name Address City State ZIP
Indicator Insured of of of of of
Insured Insured Insured Insured Insured
544- 547 548-596 557-596 597-636 637-676 677-678 679-687
546
Status State Local
Illness Date Income Income Blank
Indicator Certified Blank Tax Tax Blank or CR/LF
(Optional) (Optional) Withheld Withheld
688 689-696 697-722 723-734 735-746 747-748 749-750
(10) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-MISC
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544 Second TIN 1 Enter "2" to indicate
Notice notification by IRS
(Optional) twice within three
calender years that
the payee provided an
incorrect name and/or
TIN combination;
otherwise, enter a
blank.
545-546 Blank 2 Enter blanks.
547 Direct Sales 1 Enter a "1" (one) to
Indicator indicate sales of
(See Note) $5,000 or more of
consumer products to a
person on a buy/sell,
deposit/commission, or
any other commission
basis for resale
anywhere other than in
a permanent retail
establishment.
Otherwise, enter a
blank.
Note: If reporting a direct sales indicator only, use Type of Return "A" in Field Position 27, and Amount Code 1 in Field Position 28 of the Payer "A" Record. All payment amount fields in the Payee "B" Record will contain zeros.
548-662 Blank 115 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or
local government
reporting or for the
filer's own purposes.
Payers should contact
the state or local
revenue departments for
filing requirements. If
this field is not
utilized, enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right
justified and unused
positions must be
zerofilled. If not
reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zerofilled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747- 748 Combined 2 If this payee record is
Federal/State Code to be forwarded to a
state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code
from Part A, Sec. 16,
Table 1. For those
payers or states not
participating in this
program, enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-MISC
Second State Local
TIN Direct Special Income Income
Notice Blank Sales Blank Data Tax Tax
(Optional) Indicator Entires Withheld Withheld
544 545-546 547 548-662 663-722 723-734 735-746
Combined
Federal/ Blank
State or CR/LF
Code
47-748 749-750
(11) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-MSA
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544 Blank 1 Enter blank.
545 Document 1 Required. Enter the
Specific/ applicable code to
Distribution indicate the type of
Code payment.
Code Category
1 Normal
distribution
2 Excess
contributions
3 Disability
4 Death
5 Prohibited
transaction
546-662 Blank 117 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or
local government
reporting or for the
filer's own purposes.
Payers should contact
the state or local
revenue departments for
filing requirements. If
this field is not
utilized, enter blanks.
723-734 State Income 12 State income tax
withheld is for the
convenience of the
filers. This Tax
Withheld information
does not need to be
reported to IRS. The
payment amount must be
right justified and
unused positions must
be zero-filled. If not
reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747-748 Blank 2 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-MSA
State Local
Special Income Income
Blank Document Blank Data Tax Tax
Specific/ Entries Withheld Withheld
Distribution
Code
544 545 546-662 663-722 723-734 735-746
Blank Blank
or CR/LF
747-748 749-750
(12) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-OID
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544 Second TIN 1 Enter "2" to indicate
Notice notification by IRS
(Optional) twice within
calendar years that the
payee provided an
incorrect name and or
TIN combination;
otherwise, enter a
blank.
545-546 Blank 2 Enter blanks.
547-585 Description 39 Required. Enter the
CUSIP number, if any.
If there is no CUSIP
number, enter the
abbreviation for the
stock exchange and
issuer, the coupon
rate, and year (must be
4 digit year) of
maturity (e.g., NYSE
XYZ 12 1/2 1999). Show
the name of the
issuer if other than
the payer. If fewer
than 39 characters are
required, left justify
information and fill
unused positions with
blanks.
586-662 Blank 77 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or
local government
reporting or for the
filer's own purposes.
Payers should contact
the state or local
revenue departments for
filing requirements. If
this field is not
utilized, enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information
does not need to be
reported to IRS. The
payment amount must be
right justified and
unused positions must
be zero-filled. If not
reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information
does not need to be
reported to IRS. The
payment amount must be
right justified and
unused positions must
be zero-filled. If not
reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747-748 Combined 2 If this payee record is
Federal/ to be forwarded to a
State Code state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code
from Part A,
Sec. 16, Table 1. For
those payers or states
not participating in
this program, enter
blanks.
749-750 Blank 2 Enter blanks or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-OID
Second State
TIN Special Income
Notice Blank Description Blank Data Tax
(Optional) Entries Withheld
544 545-546 547-585 586-662 663-722 723-734
Local Combined
Income Federal/ Blank
Tax State or CR/LF
Withheld Code
735-746 747-748 749-750
(13) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-PATR
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544 Second TIN 1 Enter "2" to indicate
Notice notification by IRS
(Optional) twice within three
calendar years that the
payee provided an
incorrect name and/or
TIN combination;
otherwise, enter a
blank.
545-662 Blank 118 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information
does not need to be
reported to IRS. The
payment amount must be
right justified and
unused positions must
be zero-filled. If not
reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747-748 Combined 2 If this payee record is
Federal/ to be forwarded to a
State Code state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code
from Part A. Sec. 16,
Table 1. For those
payers or states not
participating in this
program, enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR 1099-PATR
Second State Local Combined
TIN Blank Special Income Income Federal/ Blank
Notice Data Tax Tax State or CR/LF
(Optional) Entries Withheld Withheld Code
544 545-662 663-722 723-734 735-746 747-748 749-750
(14) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-R
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544 Blank 1 Enter blank.
545-546 Document 2 Required. Enter the
Specific/ appropriate
Distribution Code distribution code(s).
(For a detailed More than one code may
explanation of the apply for Form 1099-R.
distribution codes If only one code is
see the 1998 required, it must be
"Instructions for entered in position
Forms 1099, 1098 545. Position 546 must
5498, and W-2G.) be blank. (For a
detailed Enter at least
one distribution code.
A blank in position 545
is not explanation of
the acceptable. Enter
the applicable code
from the table that
follows. distribution
codes Position 545 must
contain a numeric code
in all cases except
when see the 1998 using
D, E, F, G, H, J, K, L,
M, P or S. Distribution
Code A, B,
or "Instructions for C,
when applicable, must
be entered in position
546 with the applicable
code in position 545.
When using Code P for
an IRA distribution
under section 408(d)(4)
of the Internal Revenue
Code, the filer may
also enter Code 1 or 2
if applicable. Only
three numeric
combinations are
acceptable, codes 8 and
1, codes 8 and 2 and
codes 8 and 4, on one
return. These three
combinations can be
used only if both codes
apply to the
distribution being
reported. If more than
one numeric code is
applicable to different
parts of a
distribution, except
the three combinations
mentioned above, report
two separate "B"
Records. Distribution
Codes E, F, and H
cannot be used in
conjunction with other
codes. Distribution
Code G may be used in
conjunction with
Distribution Code 4
only, if applicable.
Code Category
1 /*/ Early
distribution,
no known
exception
2 /*/ Early
distribution,
exception
applies (as
defined in
section
72(q),(t), or
(v) (other than
disability or
death)
3 /*/ Disability
4 /*/ Death (includes
payments to an
estate or other
beneficiary)
5 /*/ Prohibited
transaction
6 /*/ Section 1035
exchange
7 /*/ Normal
distribution
8 /*/ Excess
contributions
plus
earnings/
excess
deferrals
(and/or
earnings)
taxable in 1998
9 PS 58 costs
A May be eligible
for 5- or
10-year tax
option
B May be eligible
for death
benefit
exclusion (See
Note)
C May be eligible
for both A and
B (See Note)
D /*/ Excess
contributions
plus
earnings/excess
deferrals
taxable in 1996
E Excess annual
additions under
section 415
F Charitable gift
annuity
G /**/ Direct rollover
to IRA
H /**/ Direct rollover
to qualified
plan or is
transferred to
tax-sheltered
annuity, or
distribution
from a conduit
IRA that is
payable to the
trustee of an
employer plan
J Distribution
from a Roth IRA
in the first 5
years
K Distribution
from a 1998
Roth conversion
IRA in first 5
years
L Loans treated
as deemed
distributions
under section
72(p)
M Distribution
from an
education IRA
P /*/ Excess
contributions
plus
earnings/
excess
deferrals
taxable in
1997
S /*/ Early
distribution
from a SIMPLE
IRA in first 2
years, no
known exception
/*/ If reporting an IRA, SEP, or SIMPLE distribution, use the IRA/SEP/SIMPLE Indicator of "1" (one) in position 548 of the Payee "B" Record.
/**/ Distribution Codes G and H cannot be used in combination with the IRA/SEP/SIMPLE Indicator in Field Position 548.
Note: Do not use code B or C for payments with respect to employees who died after August 20, 1996.
547 Taxable Amount 1 Enter "1" (one) only if
Not Determined the taxable amount of
Indicator the payment entered
for Payment Amount
Field 1 (Gross
distribution) of the
"B" Record cannot be
computed; otherwise,
enter blank. [If
Taxable Amount Not
Determined Indicator is
used, enter "O's"
(zeros) in Payment
Amount Field 2 of the
Payee "B" Record.]
Please make every
effort to compute the
taxable amount.
548 IRA/SEP/ 1 Enter "1" (one) if
SIMPLE reporting a
Indicator distribution from a
traditional IRA,
SEP, or SIMPLE;
otherwise, enter a
blank (See Note). If
the IRA/. SEP/SIMPLE
Indicator is used,
enter the amount of the
distribution in payment
Amount Field A of the
Payee "B" Record. Do
not use the indicator
for Roth IRA or
Education IRA.
Note: For Form 1099-R, generally, report the total amount distributed from a traditional IRA, SEP, or SIMPLE in Payment Amount Field A (IRA/SEP/SIMPLE Distribution), as well as Payment Amount Field 1 (Gross Distribution) of the "B" Record. Record. Refer to the 1998 "Instructions for Forms 1099, 1098, 5498, and W-2G" for exceptions.
549 Total 1 Enter a "1" (one) only
Distribution if the payment shown
Indicator for Amount Code 1 is
(See Note) a total distribution
that closed out the
account; otherwise,
enter a blank.
Note: A total distribution is one or more distributions within one tax year in which the entire balance of the account is distributed. Any distribution that does not meet this definition is not a total distribution.
550-551 Percentage 2 Use this field when
of Total reporting a total
Distribution distribution to more
than one person, such
as when a participant
is deceased and a payer
distributes to two or
more beneficiaries.
Therefore, if the
percentage is 100,
leave this field blank.
If the percentage is
a fraction, round off
to the nearest whole
number (for example,
10.4 percent will be 10
percent; 10.5 percent
will be 11 percent).
Enter the percentage
received by the person
whose TIN is included
in positions 12-20 of
the "B" Record. This
field must be right-
justified, and unused
positions must be
zero-filled. If not
applicable, enter
blanks. Filers need not
enter this information
for any IRA
distribution or for
direct rollovers.
552-662 Blank 111 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or local
government reporting or
for the filer's own
purposes. The
state/payer's state
number, state
distribution, name of
locality, and/or local
distribution can be
entered in this field.
Payers should contact
the state or local
revenue departments
for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747-748 Combined 2 If this payee record is
Federal/State to be forwarded to a
Code state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code from
Part A, Sec. 16, Table
1. For those payers or
states not
participating in this
program, enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-R
Taxable
Document Amount IRA/SEP/SIMPLE Total
Specific/ Not Indicator Distribution
Blank Distribution Determined Indicator
Code Indicator
544 545-546 547 548 549
State Local Combined
Percentage Special Income Income Federal/ Blank
of Total Blank Data Tax Tax State or CR/LF
Distribution Entries Withheld Withheld Code
550-551 552-662 663-722 723-734 735-746 747-748 749-750
(15) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-S
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Property or 1 Required. Enter "1"
Services (one) if the transferor
Indicator received or will
receive property (other
than cash and
consideration treated
as cash in computing
gross proceeds) or
services as part of the
consideration for the
property transferred.
Otherwise, enter a
blank.
548-555 Date of 8 Required. Enter the
Closing closing date in the
format YYYYMMDD (e.g.,
19981022). Do not enter
hyphens or slashes.
556-594 Address or 39 Required. Enter the
Legal address of the property
Description transferred (including
city, state, and ZIP
Code). If the address
does not sufficiently
identity
the property, also
enter a legal
description, such as
section, lot, and
block. For timber
royalties, enter
"TIMBER." If fewer than
39 positions are
required, left justify
information and fill
unused positions with
blanks.
595-662 Blank 68 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747-748 Blank 2 Enter blanks.
749-750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 1099-S
Property Address Special
Blank or Services Date of or Legal Blank Data
Indicator Closing Description Entries
544-546 547 548-555 556-594 595-662 663-722
State Local
Income Income Blank Blank
Tax Tax or CL/RF
Withheld Withheld
723-734 735-746 747-748 749-750
Note: When reporting Form 1099-S, the "B" Record will reflect
the seller/transferor information.
(16) PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 5498
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
544-546 Blank 3 Enter blank.
547 IRA 1 Required, if
Indicator applicable. Enter "1"
(Individual (one) if reporting a
Retirement rollover
Account) (Amount Code 2) or Fair
Market Value (Amount
Code 4) for an IRA.
Otherwise, enter a
blank.
548 SEP 1 Required, if
Indicator applicable. Enter "1"
(Simplified (one) if reporting a
Employee Pension rollover (Amount Code
2) or Fair Market Value
(Amount Code 4) for a
SEP. Otherwise, enter a
blank.
549 SIMPLE 1 Required, if
Indicator applicable. Enter "1"
(Savings Incentive (one) if-reporting a
Match Plan for rollover (Amount Code
Employees 2) or Fair Market Value
of Small employers) (Amount Code 4) for a
SIMPLE. Otherwise,
enter a blank.
550 Roth 1 Required, if
IRA applicable. Enter "1"
Indicator (one) if reporting a
rollover (Amount Code
2) or Fair Market Value
(Amount Code 4) for a
Roth IRA. Otherwise,
enter a blank.
551 Roth 1 Required, if
Conversion applicable. Enter "1"
Indicator (one) if reporting a
rollover (Amount Code
2) or Fair Market Value
(Amount Code 4) for a
Roth Conversion.
Otherwise, enter a
blank.
552 Education 1 Required, if
IRA applicable. Enter "1"
Indicator (one) if reporting a
rollover (Amount Code
2) or Fair Market Value
(Amount Code 4) for an
Education IRA.
Otherwise, enter a
blank.
553-662 Blank 110 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used to
record information for
state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-746 Blank 24 Enter blanks.
747-748 Combined 2 If this payee record is
Federal/State to be forwarded to a
Code state agency as part of
the Combined
Federal/State Filing
Program, enter the
valid state code from
Part A, Sec. 16, Table
1. For those payers or
states not
participating in this
program, enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM 5498
Blank IRA SEP SIMPLE Roth Roth Education
Indicator Indicator Indicator IRA Conversion IRA
Indicator Indicator Indicator
544-546 547 548 549 550 551 552
Blank Special Blank Combined Blank
Data Federal/ or CR/LF
Entries State
Code
553-662 663-722 723-746 747-748 749-750
(17) Payee "B" Record - Record Layout Positions 544-750 for Form W- 2G
Field
Positon Field Title Length Description and Remarks
____________________________________________________________________
544-546 Blank 3 Enter blanks.
547 Type of 1 Required. Enter the
Wager applicable type of
Code wager code from the
table below:
Code Category
1 Horse race track
(or off-track
betting of a
horse track
nature)
2 Dog race track
(or off-track
betting of a dog
track nature)
3 Jai-alai
4 State-conducted
lottery
5 Keno
6 Bingo
7 Slot machines
8 Any other type of
gambling winnings
548-555 Date Won 8 Required. Enter the
date of the winning
transaction in the
format YYYYMMDD (e.g.,
19981022). Do not enter
hyphens or slashes.
This is not the date of
the money was paid, if
paid after the date of
the race (or game).
556-570 Transaction 15 Required. For
state-conducted
lotteries, enter the
ticket or other
identifying number. For
keno, bingo, and slot
machines, enter the
ticket or card number
(and color, if
applicable), machine
serial number, or any
other information that
will help identify the
winning transaction.
For all others, enter
blanks.
571-575 Race 5 If applicable, enter
the race (or game)
relating to the winning
ticket; otherwise,
enter blanks.
576-580 Cashier 5 If applicable, enter
the initials of the
cashier making the
winning payment;
otherwise, enter
blanks.
581-585 Window 5 If applicable, enter
the window number or
location of the person
paying the winning
payment; otherwise,
enter blanks.
586-600 First ID 15 For other than state
lotteries, enter the
first identification
number of the person
receiving the winning
payment; otherwise,
enter blanks.
601-615 Second ID 15 For other than state
lotteries, enter the
second identification
number of the person
receiving the winnings;
otherwise, enter
blanks.
616-662 Blank 47 Enter blanks.
663-722 Special Data 60 This portion of the "B"
Entries Record may be used
to record information
for state or local
government reporting or
for the filer's own
purposes. Payers should
contact the state or
local revenue
departments for filing
requirements. If this
field is not utilized,
enter blanks.
723-734 State Income 12 State income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting state tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
field.
735-746 Local Income 12 Local income tax
Tax Withheld withheld is for the
convenience of the
filers. This
information does not
need to be reported to
IRS. The payment amount
must be right justified
and unused positions
must be zero-filled. If
not reporting local tax
withheld, this field
may be used as a
continuation of the
Special Data Entries
Field.
747-748 Blank 2 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
PAYEE "B" RECORD - RECORD LAYOUT POSITIONS 544-750 FOR FORM W-2G
Blank Type of Date Transaction Race Cashier Window First ID
Wager Won
544-546 547 548-555 556-570 571-575 576-580 581-585 586-600
Second ID Blank Special State Local Blank Blank
Data Income Income or CR/LF
Entries Tax Tax
Withheld Withheld
601-615 616-662 663-722 723-734 735-746 747-748 749-750
SECTION 11. END OF PAYER "C" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT
.01 The End of Payer "C" Record is a fixed record length of 750 positions. The control total fields are each 18 positions in length.
.02 The "C" Record consists of the total number of payees and the totals of the payment amount fields filed by a given payer and/or a particular type of return. The "C" Record must be written after the last "B" Record for each type of return for a given payer. For each "A" Record and group of "B" Records on the file, there must be a corresponding "C" Record.
.03 In developing the "C" Record, for example, if a payer used Amount Codes 1, 3, and 6 in the "A" Record, the totals from the "B" Records would appear in Control Totals 1 (positions 16-33), 3 (positions 52-69), and 6 (positions 106-123) of the "C" Record. In this example, positions 34-51, 70-105, and 124-231 would be zero filled. Positions 232-748 would be blank filled.
.04 Payers/Transmitters should verify the accuracy of the totals since data with missing or incorrect "C" Records will be returned for replacement.
Record Name: End of Payer "C" Record
Field
Positon Field Title Length Description and Remarks
____________________________________________________________________
1 Record Type 1 Required. Enter "C."
2-9 Number of 8 Required. Enter the
Payees total number of "B"
Records covered by the
preceding "A" Record.
Right justify
information and fill
unused positions with
zeros.
10-15 Blank 6 Enter blanks.
16-33 Control 18 Required. Accumulate
Total 1 totals of any payment
amount fields in the
"B" Record into the
appropriate control
total fields of the "C"
34-51 Control 18 Record. Control totals
Total 2 must be right justified
and unused control
total fields
zero-filled. All
control total fields
are 18 positions
52-69 Control 18 in length.
Total 3
70-87 Control 18
Total 4
88-105 Control 18
Total 5
106-123 Control 18
Total 6
124-141 Control 18
Total 7
142-159 Control 18
Total 8
160-177 Control 18
Total 9
178-195 Control 18
Total A
196-213 Control 18
Total B
214-231 Control 18
Total C
232-748 Blank 517 Enter blanks.
749-750 Blank 2 Enter blanks, or
carriage return/line
feed (CR/LF)
characters.
END OF PAYER "C" RECORD - RECORD LAYOUT
Record Number Blank Control Control Control Control Control Control
Type of Total Total Total Total Total Total
Payees 1 2 3 4 5 6
1 2-9 10-15 16-33 34-51 52-69 70-87 88-105 106-123
Control Control Control Control Control Control Blank Blank
Total Total Total Total Total Total or CR/LF
7 8 9 A B C
124-141 142-159 160-177 178-195 196-213 214-231 232-748 749-750
SECTION 12. STATE TOTALS "K" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT
.01 The State Totals "K" Record is a fixed record length of 750 positions. The control total fields are each 18 positions in length.
.02 The "K" Record is a summary for a given payer and a given state in the Combined Federal/State Filing Program, used only when state reporting approval has been granted.
.03 The "K" Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer for a given state. The "K" Record(s) must be written after the "C" Record for the related "A" Record.
.04 In developing the "K" Record, for example, if a payer used Amount Codes 1, 3, and 6 in the "A" Record, the totals from the "B" Records coded for this state would appear in Control Totals 1, 3, and 6 of the "K" Record.
.05 There must be a separate "K" Record for each state being reported.
.06 Refer to Part A, Sec. 16 for the requirements and conditions that must be met to file via this program.
(1) State Torals "K" Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, and 5498
Field
Positon Field Title Length Description and Remarks
____________________________________________________________________
1 Record Type 1 Required. Enter "K."
2-9 Number of 8 Required. Enter the
Payees total number of "B"
Records being coded for
this state. Right
justify information and
fill unused positions
with zeros.
10-15 Blank 6 Enter blanks.
16-33 Control 18 Required. Accumulate
Total 1 totals of any payment
34-51 Control 18 amount fields in the
Total 2 "B" Records for each
52-69 Control 18 state being reported
Total 3 into the appropriate
70-87 Control 18 control total fields of
Total 4 the appropriate "K"
88-105 Control 18 Record. Control totals
Total 5 must be right justified
106-123 Control 18 and unused control
Total 6 total fields
124-141 Control 18 zero-filled. All
Total 7 control total fields
142-159 Control 18 are 18 positions in
Total 8 length.
160-177 Control 18
Total 9
178-195 Control 18
Total A
196-213 Control 18
Total B
214-231 Control 18
Total C
232-706 Blank 475 Enter blanks.
707-724 State Income 18 State income tax
Tax Withheld withheld totals is for
Total the convenience of the
filers. Aggregate
totals of the state
income tax withheld
field in the Payee "B"
Record; otherwise,
enter blanks.
725-742 Local Income 18 Local income tax
Tax Withheld withheld totals is for
Total the convenience of the
filers. Aggregate
totals of the local
income tax withheld
field in the Payee "B"
Record; otherwise,
enter blanks.
743-746 Blank 4 Enter blanks.
747-748 Combined 2 Required. Enter the the
Federal/ code assigned to the
State Code state which is to
receive the
information. (Refer to
Part A, Sec. 16, Table
1.)
749-750 Blank 2 Enter blanks or
carriage return/line
feed (CR/LF)
characters.
STATE TOTALS "K" RECORD - RECORD LAYOUT FORMS 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, AND 5498
Record Number Blank Control Control Control Control Control Control
Type of Total Total Total Total Total Total
Payees 1 2 3 4 5 6
1 2-9 10-15 16-33 34-51 52-69 70-87 88-105 106-123
Control Control Control Control Control Control Blank State Local
Total Total Total Total Total Total Income Income
7 8 9 A B C Tax Tax
With- With-
held held
Total Total
124-14 142-159 160-177 178-195 196-213 214-231 232- 707-724 725-742
706
Blank Combined Blank or
Federal/State CR/LF
Code
743-746 747-748 749-750
SECTION 13. END OF TRANSMISSION "F" RECORD - GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT
.01 The End of Transmission "F" Record is a fixed record length of 750 positions. The "F" Record is a summary of the number of payers in the entire file.
.02 This record should be written after the last "C" Record (or last "K" Record, when applicable) of the entire file.
RECORD NAME: END OF TRANSMISSION "F" RECORD
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
1 Record Type 1 Required. Enter "F."
2-9 Number of 8 Enter the total number
of Payer "A" Records in
the entire file (right
"A" Records justify and
zero fill) or enter all
zeros.
10-30 Zero 21 Enter zeros.
31-748 Blank 718 Enter blanks.
749-750 Blank 2 Enter blanks or
carriage return/line
feed (CR/LF)
characters.
END OF TRANSMISSION "F" RECORD - RECORD LAYOUT
Record Number of Blank
Type "A" Records Zero Blank or CR/LF
1 2-9 10-30 31-748 749-750
PART C. BISYNCHRONOUS (MAINFRAME) ELECTRONIC FILING SPECIFICATIONS
SECTION 1. GENERAL
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will not be offered next year.
.01 Bisynchronous electronic filing of Forms 1098, 1099, 5498, and W-2G, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge, 8mm, 4mm, 1/4 inch QIC tape cartridge or diskette) or paper filing, but is not a requirement. This method uses IBM 3780 communications protocols and is used primarily by mainframe filers. Electronic filing will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Customer Service toll-free number (1-800-829-1040) for assistance.
.03 Filers participating in the electronic filing program for information returns will submit their returns to IRS/MCC electronically, and not through magnetic media or paper filing.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of 30 days to file. Part A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The formats of the "T", "A", "B", "C", "K", and "F" Records are the same for electronically filed records as they are for 5 1/4-and 3 1/2-inch diskettes, tapes, and tape cartridges. For electronically filed documents, each transmission is considered a separate file; therefore each transmission must begin with a Transmitter "T" Record and end with an End of Transmission (EOT) "F" Record.
SECTION 2. ELECTRONIC FILING APPROVAL PROCEDURE
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically. (Filers who currently have a TCC for magnetic filing do not have to request a second TCC for electronic filing.) Refer to Part A, Sec. 7, for information on how to obtain a TCC.
.02 Filers using bisynchronous protocols must obtain an IRS/MCC-assigned password prior to submitting test or actual data files. To obtain a password, the following steps must be taken:
(a) Bisynchronous filers who already have a TCC must submit either Form 4419 or a letter to indicate that they wish to file information returns electronically. Another TCC will not be assigned. If a letter is submitted, it must contain the following:
1) Name and address of transmitter.
2) Transmitter Control Code.
3) Name and phone number of a contact person-within the filer's organization to whom a password will be assigned.
(b) Within 30 days of receiving the application or letter, IRS/MCC will send Form 6086, Time Sharing Operation (TSO) Password Assignment, to the filer which will contain the password to be used for electronic submissions.
(c) Upon receipt of Form 6086, the user (person who will actually transmit the data) will separate the acknowledgment from the password. Both the user and the user's manager must sign the acknowledgment and mail to:
Chief, Security and Disclosure Branch
IRS, Martinsburg Computing Center
P.O. Box 1208, MS-370
Martinsburg, WV 25402
(d) The users or filers should retain a copy of the signed acknowledgment for their records. It is the filer's responsibility to ensure that the password is not compromised. Access to IRS/MCC computers will not be allowed without a valid password. After a password is received and the acknowledgment returned, the filer may submit a data file.
(e) If filers have any questions relating to the security procedures, and/or they need to report their password has been compromised, they must contact IRS/MCC as soon as possible at:
IRS/MCC
Information Returns Branch
P.O. Box 1359
Martinsburg, WV 25402-1359
or by calling: 304-263-8700.
.03 It is the user's responsibility to remember the password and not allow the password to be compromised.
SECTION 3. TEST FILES
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for first time electronic filers in order to resolve any data or communication problems prior to the filing season. If filers wish to submit an electronic test file for Tax Year 1998 (returns to be filed in 1999), it must be submitted to IRS/MCC no earlier than November 1, 1998, and no later than December 15, 1998.
.02 If a filer encounters problems while transmitting electronic test files, contact IRS/MCC for assistance.
.03 A password must be obtained before submitting an electronic test file.
.04 Bisynchronous electronic test files will be processed and filers will be notified as to the acceptability of their data within 5 workdays of the date the data and transmittal Form 4804 are received by IRS/MCC.
.05 A test file is required from filers who want approval for the Combined Federal/State Filling Program. See Part A, Sec. 16, for further details.
SECTION 4. ELECTRONIC SUBMISSIONS
.01 Electronically filed information may be submitted to IRS/MCC 7 days a week, 24 hours a day, except for routine maintenance/backup which is performed at 4:00 a.m. Eastern Time. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.02 Lengthy transmissions (100,000 or more records) are not encouraged since the transmission may be interrupted by line noise problems. It is advisable to break lengthy files into multiple transmissions.
.03 The time required to transmit information returns electronically will vary depending on the modern speed, if IBM 3780 data compression is used, and if the records are blocked.
SECTION 5. TRANSMITTAL REQUIREMENTS
.01 All data submitted electronically is verified by transmittal Form 4804. The transmitter must mail the signed Form 4804 the same day the transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804 can be ordered by calling the IRS toll free forms and publications order number 1-800-TAX-FORM (1-800-829-3676) or it may be computer-generated. A copy of the form is also available in the back of this publication. The Form 4804 can be downloaded from IRP-BBS at 304-264-7070 or from the Internet at http://www.irs.ustreas.gov. If a filer chooses to computer-generate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the computer- generated form.
.03 The TCC in the "T" Record must be the TCC used to transmit the file and should appear on the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION - NO MAGNETIC MEDIA
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P.O. 1359
Martinsburg, WV 25402-1359
Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS-MCC P.O. Box addresses for Martinsburg, WV.
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION - NO MAGNETIC MEDIA
If by truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
SECTION 6. IBM 3780 BISYNCHRONOUS COMMUNICATION SPECIFICATIONS
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will not be offered next year.
.01 Transmissions using IBM 3780 bisynchronous protocols must be in EBCDIC character code. Modems must be compatible with either Bell 208B for 4800 bps transmissions, AT&T 2296A for 9600 bps transmissions, or Hayes OPTIMA 288 V.FC Smartmodem for 14400 bps transmissions. These modems are dial-up type modems using the Public Switched Telephone Network. IBM 3780 data compression is acceptable for any bisynchronous transmission. Records may be blocked up to 4096 bytes with INTER RECORD SEPARATORS.
.02 IRS/MCC will accept information returns filed electronically over switched telecommunications network circuits. For 4800 bps, the circuit will be 304-264-7080. For 9600 bps, the circuit will be 304-264-7040. For 14400 bps, the circuit will be 304-264-7045. These circuits are equipped for bisynchronous transmission using the IBM 3780 protocol.
.03 The 4800 bps line terminates at a Bell 208B modem. The Bell 208B modern uses phase-shift keying and eight-phase modulation to transmit binary serial data signals over the telephone line in half- duplex mode. The following options have been selected:
- Transmit Level set to -4 dBm
- Compromise Equalizer in (4-Db Slope)
- DSR off in Analog Loop Mode
- Automatic Answer
- Transmitter Internally Timed
- RS-CS Interval of 50 ms
.04 The 9600 bps line terminates at an AT&T Dataphone II 2296A modem. The AT&T 2296A modem is a full-duplex, CCITT V.32 compatible unit which operates at 9600 bps or 4800 bps (fallback). The following options have been selected:
- Receiver Responds to Remote Loopback
- Loss-of-Carrier Disconnect
- Received-Space Disconnect
- Send-Space Disconnect
- Automatic Answer
- Answer on Ring 1
- DTR Interlock
- Retrain Enable
- Internal Timing
- CTS Controlled by RTS
- 0 - 1 ms RTS to CTS Delay
- CTS Dependent on Carrier
- RR Indicates Carrier
- 9600 Trellis Coding
- 4800 bps Fallback
- 4 dB Compromise Equalization
.05 The 14400 bps line terminates at a Hayes OPTIMA 288 V.FC Smartmodem. The Hayes OPTIMA Smartmodem is a half-duplex, ITU-T (formerly CCITT) V.32 and V.32 bis compatible unit which operates at 14400 bps, 9600 bps, or 4800 bps (fallback). The following options have been selected:
- Monitor DTR signal
- Assert DSR signal after handshake negotiation, but
before connect result code
- Ring control S=1
SECTION 7. BISYNCHRONOUS ELECTRONIC FILING RECORD SPECIFICATIONS
.01 For bisynchronous filing there are two additional identifier records which must be used to transmit data. These records are 750 positions in length and are the first ($$REQUEST) and second ($$ADD) records sent in an electronic transmission. The purpose of these records is to provide the password and identity of the transmitter. These records may be shorter as long as inter record separators are used. The $$REQUEST, $$ADD, and the data file should be transmitted as one file. In some cases, filers have attempted to send the $$REQUEST and $$ADD as separate files. Doing this will result in a failed transmission.
.02 With the exception of these additional records, the file format for electronic filing is the same as for magnetic media filing. The format of each of these records is as follows:
RECORD NAME: $$REQUEST
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
1-20 $$REQUEST 20 Enter the following
Identifier characters:
Record $$REQUEST ID=MSGFILE
21-750 Blank 730 Enter blanks.
ELECTRONIC FILING IDENTIFIER $$REQUEST RECORD - RECORD LAYOUT
$$Request
Identifier Blank
Record
1-20 21-750
.03 Upon making contact with IRS/MCC and furnishing a valid password in the $$ADD identifier record, a data transmission session will commence. The transmission will continue until an End of Transmission (EOT) "F" Record is received. At the end of each transmission, the following message should be received electronically by the filer: "DATA RECEIVED AT MCC" and the line will be disconnected. If this message is not received, there was a problem with the submission, and the filer should contact IRS/MCC immediately.
.04 Upon receiving a data file and transmittal Form 4804, IRS/MCC will release the data for further processing. If the data cannot be processed, the filer will be notified by either letter or telephone that the data must be retransmitted. This file name, if necessary, will be provided by IRS/MCC and is to be placed in positions 45-51 of the $$ADD record when the file is retransmitted.
Record Name: $$ADD
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
1-9 $$ADD 9 Enter the following
Identifier characters:
Record $$ADD ID=
10-17 Password 8 Enter the password
assigned by IRS/MCC.
For information
concerning the
password, see Part C,
Sec. 2.
18 Blank 1 Enter a blank.
19-26 BATCHID 8 Enter the following
characters:
BATCHID=
27 Quote 1 Enter a single quote
(`).
28-43 Transmitter 16 Enter the transmitter's
Name name. This name should
remain consistent in
all transmissions. If
the transmitter's name
exceeds 16 positions,
truncate the name.
44 Type of File 1 Enter the Type of File
Indicator Indicator from the list
below:
O = Original filing
T = Test File
C = Correction file
R = Replacement file
E = Extension File
45-51 Replacement 7 Use this field only if
File Name this is a replacement
file.
Enter the replacement
file name which IRS/MCC
has assigned to this
file. This file name
will be provided to the
filer in the letter
notifying them that
a-replacement file is
necessary. If contact
is made by telephone,
the replacement file
name will be given to
the filer by IRS/MCC at
that time. For other
than replacement files,
this field will contain
blanks.
52 Quote 1 Enter a single quote
(').
53-750 Blank 698 Enter blanks.
ELECTRONIC FILING IDENTIFIER $$ADD RECORD - RECORD LAYOUT
$$ADD
Identifier Password Blank BATCHID Quote Transmitter
Record Name
1-9 10-17 18 19-26 27 28-43
Type of Replacement Quote Blank
File Indicator File Name
44 45-51 52 53-750
PART D. ASYNCHRONOUS (IRP-BBS) ELECTRONIC FILING SPECIFICATIONS
SECTION 1. GENERAL
.01 Asynchronous electronic filing of Forms 1098, 1099, 5498, and W-2G, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement. Electronic filing using the Information Reporting Program-Bulletin Board System (IRP-BBS) will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way. If the original file was sent magnetically, but was returned for replacement, the replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any corrections may be transmitted electronically.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Customer Service toll-free number (1-800-829-1040) for assistance.
.03 Filers participating in the electronic filing program for information returns, will submit their returns to IRS/MCC electronically and not through magnetic media or paper filing. Files submitted in this manner must be in standard ASCII code.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of time to file. Part A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The formats of the "T", "A", "B", "C", "K", and "F" Records are the same for electronically filed records as they are for 5 1/4- and 3 1/2-inch diskettes, tapes, and tape cartridges and must be in standard ASCII code. For electronically filed documents, each transmission is considered a separate file; therefore, each transmission must begin with a Transmitter "T" Record and end with an End of Transmission (EOT) "F" Record.
SECTION 2. ELECTRONIC FILING APPROVAL PROCEDURE
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically. (Filers who currently have a TCC for magnetic filing do not have to request a second TCC for electronic filing.) Refer to Part A, Sec. 7, for information on how to obtain a TCC.
.02 Once a TCC is obtained, filers using IRP-BBS assign their own passwords and do not need special approval.
.03 With all passwords, it is the user's responsibility to remember the password and not allow the password to be compromised. However, if filers do forget their password, call 304-263-8700 for assistance.
Note: Passwords on the IRP-BBS are case sensitive.
SECTION 3. TEST FILES
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for first time electronic filers in order to resolve any data or communication problems prior to the filing season. If filers wish to submit an electronic test file for Tax Year 1998 (returns to be filed in 1999), it must be submitted to IRS/MCC no earlier than November 1, 1998, and no later than December 15, 1998.
.02 If a filer encounters problems while transmitting the electronic test files, contact IRS/MCC for assistance.
.03 Filers can verify the status of their transmitted test data by dialing the IRP-BBS. This information will be available within two workdays after their transmission is received by IRS/MCC.
.04 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec. 16 for further details.
SECTION 4. ELECTRONIC SUBMISSIONS
.01 Electronically filed information may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.02 Filers may submit as many documents as they choose electronically. Filers are allowed 240 minutes a day; however, more time may be requested if needed. It may be advantageous to break down large files (files in excess of two hours of transmission time) into several smaller files. For example, if large files contain several types of returns or payers, transmit each type of return or payer as a separate file. As a result, if only one of the files is incorrect, a replacement would be needed for only the incorrect file.
.03 Do not transmit data using IRP-BBS January 1 through January 7. This will allow time for the IRP-BBS to be updated to reflect current year changes.
.04 Data compression is encouraged when submitting information returns by way of the IRP-BBS. MCC has the ability to decompress files created using several popular software compression programs such as ARC, LHARC, and PKZIP. Software data compression can be done alone or in conjunction with V.42bis hardware compression.
The time required to transmit information returns electronically will vary depending on the modern speed and the type of data compression used, if any. However, transmissions to IRP-BBS will be significantly faster than electronic filing to the mainframe. The time required to transmit a file can be reduced by as much as 85 percent by using software compression and hardware compression.
The following are actual transmission rates achieved in test uploads at MCC using compressed files (PKZIP) and the XMODEM1K protocol. The actual transmission rates will vary depending on the protocol that is used. (ZMODEM is normally the fastest protocol and XMODEM and KERMIT are the slower protocols.)
Transmission Speed
in bps 500 Records 2500 Records 10000 Records
9600 1 min 4 min 16 min
19200 45 sec 2 min 9 min
38400 30 sec 1 min 4 min
.05 Files submitted to IRP-BBS must have a unique filename; therefore, the IRP-BBS will build the filename that must be used. The name will consist of the filer's TCC, submission type (T = Test, P = Production, C = Correction, and R = Replacement) and a sequence number. Filers may call the file anything they choose on their end. The sequence number will be incremented every time the filers send, or attempt to send, a file. Record the upload date, time, and filename. This information will be needed by MCC in order to identify the file if assistance is required and to complete Form 4804.
.06 Electronic filers must transmit their files by the due date of the return. If a file is bad, the filer will have 45 days to transmit the first replacement file and 30 days thereafter if additional replacements are necessary.
.07 Filers are advised not to resubmit an entire file if records were omitted from the original transmission. This will result in duplicate filing. A new file should be sent consisting of the records that had not previously been submitted.
.08 The TCC in the Transmitter "T" Record must be the TCC used to transmit the file.
SECTION 5. TRANSMITTAL REQUIREMENTS
.01 The results of the electronic transmission will be posted to the (F)ile Status area of the IRP-BBS; however, no further processing will occur until the signed Form 4804 is received. The transmitter must send the signed Form 4804 the same day the electronic transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804 can be ordered by calling the IRS toll-free forms and publication order number 1 - 800 - TAX - FORM, (1 - 800 - 829 - 3676), downloaded from the IRP-BBS at 304 - 264 - 7070, or it may be computer-generated. It may also be obtained from the Internet at http://www.irs.ustreas.gov. A copy of the form is also available in the back of this publication. If a filer chooses to computer- generate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the computer-generated form.
.03 The TCC used in the Transmitter "T" Record is the TCC which must appear on the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P.O. Box 1359
Martinsburg, WV 25402-1359
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION-NO MAGNETIC MEDIA
Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses for Martinsburg, WV.
If by air or truck freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
SECTION 6. INFORMATION REPORTING PROGRAM-BULLETIN BOARD SYSTEM (IRP- BBS) SPECIFICATIONS
.01 The IRP-BBS is an electronic bulletin board system available to filers of information returns. In addition to filing information returns electronically, the IRP-BBS provides other capabilities. Some of the advantages of IRP-BBS are as follows:
(1) Notification within two workdays as to the acceptability of the data transmitted.
(2) Immediate access to the latest changes and updates that affect the Information Reporting Program at IRS/MCC (program, legislative, etc.).
(3) Access to publications such as the Publication 1220 as soon as they are available.
(4) Capability to communicate with IRS/MCC personnel.
(5) Ability to retrieve information and files applicable to the IRP-BBS.
.02 The IRP-BBS is available for public use and accessible using various personal computer communications equipment; however, electronic submission of information returns is limited to holders of valid TCCs. A TCC is not needed to access those portions of the IRP-BBS that contain forms and publications or to leave questions or messages for IRS/MCC personnel.
.03 Filers using IRP-BBS can determine the acceptability of files submitted by checking the file status area of the bulletin board. These reports are not immediately available but will be available two workdays after the transmission is received by IRS/MCC.
.04 Contact the IRP-BBS by dialing 304-264-7070. The communication software settings for IRP-BBS are:
- No parity
- Eight data bits
- One stop bit
- Full duplex
The communication software should be set up to use the fastest speed allowed by the filer's modern.
.05 Due to the large number of communication products available, it is impossible to provide specific information on a particular software package or hardware configuration. Filers should contact their software or hardware supplier for assistance.
.06 IRP-BBS software provides a menu-driven environment allowing access to different parts of IRP-BBS. Whenever possible, IRS/MCC personnel will provide assistance in resolving any communication problems with IRP-BBS.
.07 IRP-BBS can be accessed at speeds from 1200 to 28,800 bps. The speed is automatically negotiated for connection at the speed of the calling modern. The communication standards supported include Industry Standard 212A, V.22bis, V.32, V.32bis, V.34, and V.FC. Point-to-point error control is supported using the V.42 ITU-T standard or MNP 2-4. Data compression is supported using V.42bis ITU-T standard or MNP5.
SECTION 7. IRP-BBS FIRST LOGON PROCEDURES
.01 The following information will be requested to set up the filer's user profile when logging onto the IRP-BBS for the first time.
(a) Enter the letter, that corresponds to the filer's terminal, from the following:
< A > IBM PC < B > IBM w/ANSI < C > Atari
< D > ADM-3 < E > H19/Z19/H89 < F > Televid 925
< G > TRS-80 < H > Vidtex < I > VT-52
< J > VT-100 < CR > if none of the above
Most PCs, clones, etc., will select the IBM PC emulation. Machines with color, CGA, EGA, or VGA should select IBM w/ANSI.
(b) Upper/lower case, line feed needed, 0 (zero) nulls after each < CR >, do you wish to modify this? (Most users answer no.)
COMMON USER PROBLEMS
Problem Probable Cause Solution
____________________________________________________________________
File does not Not starting Start upload/download
upload/download communication when on filers end
prompted by
`Awaiting Start
Signal'
All files not processed Compressing several Compress only
files into one one file for every
fileman filename
Replacement needed Original data does Replacement must be
not meet processing submitted within 45
and/or format days of original
requirements transmission
Cannot determine file Not dialing back to Within 24 to 48 hours
status IRP-BBS to check after sending a file,
the status of the check under (F)ile
file Status for
notification of of
acceptability
Transfer aborts Transfer protocol Ensure protocols
before it starts mismatch match on both the
sending and
receiving ends
Loss of carrier Incorrect modem Reference your
during session settings on user's modem manual about
end increasing the value
of the S10 register
Unreadable screens ANSI.SYS driver not Select non ANSI under
after selecting loaded in the user's (Y)our settings
"IBW w/ANSI" PC
IRS cannot complete Users did not mail Mail completed Form
final processing of the Form 4804 4804 the same day as
data electronic
transmission
IRS cannot determine User did not Must enter the
which file is being indicate which file the original filename
replaced is being replaced that is being replaced
under the replacement
option
IRS cannot determine User incorrectly When prompted, enter
the type of file indicated the correct type of
of file being sent T,P,C, or R for file for the data
the the type of being sent
file
Replacement file not User did dial back Within two workdays
returned within 45 days to IRP-BBS to check under (F)ile)
check status of Status for
file notification of
acceptability
Duplicate data Transmitter sends Only submit
corrections for corrections for
entire file incorrect records
PART E. MAGNETIC/ELECTRONIC SPECIFICATIONS FOR EXTENSIONS OF TIME
SECTION 1. GENERAL
.01 The specifications in Part E include the required 200-byte record format for extensions of time to file requests submitted magnetically or electronically. Also included are the instructions for the information that is to be entered in the record. Filers are advised to read this section in its entirety to ensure proper filing.
.02 Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electronically. If you meet the threshold of more than 50 payers when requesting an extension but are below the 250 documents threshold, you must still submit a Form 4419, Application for Filing Information Returns Magnetically/Electronically. Requests for extensions of time may be made for Forms 1098, 1099, 5498, W-2G, W- 2, and 1042-S.
.03 For Tax Year 1998 (returns due to be filed in 1999), transmitters requesting an extension of time to file for more than 50 payers (not payees) are required to file the extension request magnetically or electronically. Transmitters requesting an extension of time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed on tape, tape cartridge, 5 1/4-and 3 1/2-inch diskette, or electronically.
.04 For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809, Request for Extension of Time To File Information Returns, in the same package as the corresponding media. For extension requests filed electronically, the transmitter must FAX the Form 8809 the same day the transmission is made.
.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names and TINs with the Form 8809 since this information is included on the magnetic or electronic file. However, Line 6 of the Form 8809 must be completed with the total number of records included on the magnetic media or electronic file.
.06 To be considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the request will be denied.
.07 The extension record format is also on the IRP-BBS and can be downloaded. See Part D for more information on how to contact the IRP-BBS.
.08 A magnetically-filed request for an extension of time should be sent using the following addresses:
If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P.O. Box 879
Kearneysville, WV 25430
If by truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
Note: Due to the large volume of mail received by IRS/MCC and the time factor involved in processing the Form 8809, it is imperative that the attention line be present on all envelopes or packages containing Extension of Time (EOT) requests.
.09 Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns, and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the "timely mailing as timely filing" rule. A similar rule applies to designated private delivery services (PDSs). See Part A, Sec. 10. for more information on PDSs. For requests delivered by a designated PDS, but through a non-designated service, the actual date of receipt by IRS/MCC will be used as the filing date.
.10 Transmitters who submit their extensions of time requests magnetically or electronically will receive a letter from IRS/MCC with an attached list of the payers, based on information contained in the file, specifying approval and/or denial.
.11 Do not submit tax year 1998 extensions of time to file requests on magnetic media or electronically before January 1, 1999.
.12 Filers may request an extension of time as soon as they are aware that an extension is necessary but not later than the due date of the return. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances a request for an extension of time could be denied. In such cases, the transmitter receives a denial letter. When this denial letter is received, the transmitter has 20 days to provide the additional or necessary information and resubmit the extension request to IRS/MCC.
.13 Each piece of magnetic media must have an external media label containing the following information:
(a) Transmitter name
(b) Transmitter Control Code (TCC)
(c) Tax year
(d) The words "Extension of Time"
(e) Record count
.14 A request for an extension of time to file is not automatically granted. Approval or denial is dependent on information provided on the Form 8809.
.15 If the first request for an extension of time to file was submitted magnetically or electronically, additional extension requests should be submitted in the same manner.
.16 If an additional extension of time is needed, a second Form 8809 and file may be submitted before the end of the initial extension period with a postmark reflecting the date mailed. Line 7 on the form should be checked to indicate that the original extension has been received and the additional extension is being requested.
.17 See Part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are additional questions or concerns, contact IRS/MCC.
SECTION 2. MAGNETIC TAPE, TAPE CARTRIDGE, 8MM, 4MM AND QIC (QUARTER INCH CARTRIDGE), 5 1/4- AND 3 1/2- INCH DISKETTE AND ELECTRONIC SPECIFICATIONS
.01 Tape specifications are as follows:
(a) 9 track.
(b) EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) recording mode.
(c) 1600 or 6250 BPI.
(d) A block must not exceed 32,600 tape positions and must be a multiple of 200.
(e) Record length of 200 bytes.
(f) Labeled or unlabeled tapes may be submitted.
.02 Tape cartridge specifications are as follows:
(a) Must be IBM 3480, 3490, or AS400 compatible.
(b) Must meet American National Standard Institute (ANSI) standards and have the following characteristics:
(1) Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by 1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3) Cartridges will be 18-track or 36-track parallel. Indicate on the external media label if the tape cartridge is 18- or 36- track.
(4) Mode will be full function.
(5) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(6) Either EBCDIC or ASCII.
(c) A block must not exceed 32,600 tape positions and must be a multiple of 200.
(d) Record length of 200 bytes.
(e) Labeled or unlabeled tape cartridges may be submitted.
.03 8mm. 4mm. and Quarter Inch Cartridge Specifications
(a) In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(1) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(a) Created from an AS400 operating system only.
(b) 8mm (.315-inch) tape cartridges will be 2 1/2 - inch by 3 1/4-inch.
(c) The 8mm tape cartridges must meet the following specifications:
Tracks Density Capacity
1 20 (43245 BPI) 2.5 Gb (10Gb)
1 21 (45434 BPI) 5 Gb (20 Gb)
(d) Mode will be full function.
(e) Compressed data is not acceptable.
(f) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge.
(g) A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per file or per cartridge. The filename, for example; IRSEOT, will contain a three digit extension. The extension will indicate the sequence of the cartridge, within the file 1 of 3, 2 of 3, or 3 of 3 and would appear in the header label IRESOT.001, IRSEOT.002, and IRSEOT.003 on each cartridge of the file.
(2) The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,600 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9's; however, the last block of the file may be filled with 9's or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within a block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 200.
(d) Various SAVE commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e) Records may not span blocks.
(3) For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSEOT may be used as a suggested filename.
(4) For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Signifies the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
(5) IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
(b) 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(1) 4mm cassettes will be 2 1/4-inch by 3-inch.
(2) The tracks are 1 (one).
(3) The density is 19 (61000 BPI).
(4) The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at-4 Gb.
(5) The general specifications for 8mm cartridges will also apply to the 4mm cassettes.
(c) Various Quarter Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(1) QIC cartridges will be 4" by 6".
(2) QIC cartridges must meet the following specification:
Size Tracks Density Capacity
QIC-11 4/5 4(8000 BPI) 22Mb or 30Mb
QIC-24 8/9 5(8000 BPI) 45Mb or 60Mb)
QIC-120 15 15(10000 BPI) 120Mb or 200Mb
QIC-150 18 16(10000 BPI) 150Mb or 250Mb
QIC-320 26 17(16000 BPI) 320Mb
QIC-525 26 17(16000 BPI) 525Mb
QIC-1000 30 21(36000 BPI) IGb
QIC-1350 30 18(51667 BPI) 1.3Gb
QIC-2Gb 42 34(40640 BPI) 2Gb
(3) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
.04 Diskette specifications are as follows:
(a) 5 1/4- or 3 1/2-inches in diameter.
(b) ASCII recording mode only. Additional specifications may be found in Part B, Sec. 5, of this revenue procedure.
(c) Record length of 200 bytes.
(d) Diskettes must be created using the MS-DOS operating system.
(e) Filename of IRSEOT must be used. No other filenames are acceptable. If a file will consist of more than one diskette, the filename IRSEOT will contain a three-digit extension. This extension will indicate the sequence of the diskettes within the file. For example, the first diskette will be named IRSEOT.001, the second diskette will be name IRSEOT.002, etc.
(f) Delimiter character commas (,) or quotes (" ") must not be used.
(g) Positions 199 and 200 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
.05 Bisynchronous electronic specifications include:
(a) Transmitter must have a Transmitter Control Code (TCC) and a valid IRS/MCC-assigned password prior to submitting data files.
(b) Access phone numbers:
4800 bps 304-264-7080
9600 bps 304-264-7040
14400 bps 304-264-7045
Note: See Part C, Bisynchronous (Mainframe) Electronic Filing Specifications, for detailed information on filing with IRS/MCC via bisynchronous protocols.
.06 IRP-BBS specifications include:
(a) Transmitter must have Transmitter Control Code (TCC).
(b) IRP-BBS access phone number is 304-264-7070.
(c) Communications software settings are:
- No parity
- Eight data bits
- One stop bit
- Full duplex
(d) Access speeds from 1200 to 28,800 bps.
Note: See Part D, IRP-BBS Electronic Filing Specifications, for detailed information on filing with IRS/MCC via IRP-BBS.
SECTION 3. RECORD LAYOUT
.01 Positions 6 through 185 of the following record should contain information about the payer for whom the extension of time to file is being requested. Do not enter transmitter information in these fields. Only one TCC may be present in a file.
RECORD LAYOUT FOR EXTENSION OF TIME
Field
Position Field Title Length Description and Remarks
____________________________________________________________________
1-5 Transmitter 5 Required. Enter the
Control Code five digit Transmitter
Control Code (TCC)
issued by IRS. Only one
TCC per file is
acceptable.
6-14 Payer TIN 9 Required. Must be the
valid nine-digit
EIN/SSN assigned to the
payer. Do not enter
blanks, hyphens or
alpha characters. All
zeros, ones, twos, etc.
will have the effect of
an incorrect TIN. For
foreign entities that
are not required to
have a TIN, this field
may be blank; however,
the Foreign Entity
Indicator, position
187, must be set to
"X."
15-54 Payer Name 40 Required. Enter the
name of the payer whose
TIN appears in
positions 6-14. Left
justify information and
fill unused positions
with blanks.
55-94 Second Payer 40 If additional space is
Name needed this field may
be used to continue
name line information
(e.g., c/o First
National Bank);
otherwise, enter
blanks.
95-134 Payer Address 40 Required. Enter the
payer's address. Street
address should include
number, street,
apartment or suite
number (or P.O. Box if
mail is not delivered
to a street address).
135-174 Payer City 40 Required, Enter payer
city, town, or post
office.
175-176 Payer State 2 Required. Enter payer
valid U.S. Postal
Service state
abbreviation Refer to
Part A, Sec. 18).
177-185 Payer ZIP Code 9 Required. Enter payer
ZIP code. If using a
five-digit ZIP code,
left justify
information and fill
unused positions with
blanks.
186 Document 1 Required. Enter the
Indicator document for which you
(See Note) are requesting an
extension of time using
the following code:
Code Document
1 W-2
2 1098, 1098-E,
1098-T, 1099-A,
1099-B, 1099-C,
1099-DIV,
1099-G,
1099-INT,
1099-LTC,
1099-MISC,
1099-MSA,
1099-OID,
1099-PATR,
1099-R, 1099-S,
or W-2G
3 5498, 5498-MSA
4 1042-S
5 REMIC Documents
(1099-INT or
1099-OID)
Note: Do not enter any other values in this field. Submit a
separate record for each document. For example, if you are
requesting an extension for Form 1099-INT and Form 5498 for the same
payer, submit one record with "2" coded in this field and another
record with "3" coded in this field. If you are requesting an
extension for Form 1099-DIV and Form 1099-MISC for the same payer,
submit one record with "2" coded in this field.
187 Foreign 1 Enter character "X" if
Entity Indicator the payer is a foreign
entity.
188-198 Blank 11 Enter blanks.
199-200 Blank 2 Enter blanks. Diskette
filers may code the
ASCII carriage
return/line feed
(CR/LF) characters.
EXTENSION OF TIME RECORD LAYOUT
Transmitter Second
Control Payer Payer Payer Payer Payer Payer
Code TIN Name Name Address City State
1-5 6-14 15-54 55-94 95-134 135-174 175-176
Payer Foreign
ZIP Document Entity Blank Blank
Code Indicator Indicator or CR/LF
177-185 186 187 188-198 199-200)
PART F. MISCELLANEOUS INFORMATION
SECTION 1. ADDRESSES FOR MARTINSBURG COMPUTING CENTER
To submit an application to file, waiver request (forms), correspondence, and magnetic media files, use the following:
Mailing by U.S. Postal Service:
IRS--Martinsburg Computing Center
Information Reporting Program
P. O. Box 1359
Martinsburg, WV 25402-1359
Shipping by truck or air freight:
IRS--Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road
Martinsburg, WV 25401
To submit magnetically filed extension of time requests, use the following:
Mailing by U.S. Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P.O. Box 879
Kearneysville, WV 25430
Shipping by truck or air freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
SECTION 2. TELEPHONE NUMBERS FOR CONTACTING IRS/MCC
Information Reporting Program Call Site:
?
304-263-8700
Between 8:30 a.m. and 4:30 p.m. Eastern Time
Monday through Friday
Telecommunication Device for the Deaf (TDD):
304-267-3367
Information Returns FAX Machine:
304-264-5602
Electronic Filing:
(IRP-BBS)
(Asynchronous)
304-264-7070
Mainframe Filing
(Bisynchronous Filing)
4.8 Modems 304-264-7080
9.6 Modems 304-264-7040
14.4 Modems 304-264-7045
HOURS OF OPERATION--
24 HOURS A DAY
7 DAYS A WEEK
This is the end of Publication 1220
for Tax Year 1998.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Areas/Tax Topics
- Index Termsfiling, electronic
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 98-16263 (87 original pages)
- Tax Analysts Electronic Citation98 TNT 101-11