Rev. Proc. 68-15

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

Penalties are provided by sections 6652(b) and 6676(a) of the Internal Revenue Code of 1954 for failure to file information returns required under the circumstances set forth in Revenue Ruling 63-271, and for failure to furnish identifying numbers on such returns, unless it is shown that such failures are due to reasonable cause.

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

Therefore, relief will be granted for 1967 on a case-by-case basis when reasonable cause for failure to meet the requirements is established by banking institutions which submit statements in writing, on or before February 28, 1968, citing this Revenue Procedure, to the District Director of Internal Revenue or the Director of the Service Center showing that their failure to comply was due to problems or procedures which they could not solve.

See Revenue Procedure 67-8, C.B. 1967-1, 582, for similar procedures with respect to information returns for 1966.

¹ Also released as Technical Information Release 971, dated February 26, 1968.