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IRS RELEASES ELECTRONIC AND MAGNETIC MEDIA FILING REQUIREMENTS.

MAY 26, 1998

Rev. Proc. 98-35; 1998-1 C.B. 1061

DATED MAY 26, 1998
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    filing, electronic
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 98-16263 (87 original pages)
  • Tax Analysts Electronic Citation
    98 TNT 101-11
Citations: Rev. Proc. 98-35; 1998-1 C.B. 1061

Superseded by Rev.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.
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    filing, electronic
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 98-16263 (87 original pages)
  • Tax Analysts Electronic Citation
    98 TNT 101-11
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