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Rev. Proc. 69-16


Rev. Proc. 69-16; 1969-2 C.B. 288

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Forms and instructions.

    (Also Part I, Sections 6011, 6041, 6042, 6051; 31.6011(a)-7,

    1.6041-1, 1.6041-5, 1.6042-2, 31.6051-1.)
  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 69-16; 1969-2 C.B. 288

Superseded by Rev. Proc. 71-20 Modified by Rev. Proc. 71-18 Modified by Rev. Proc. 70-7

Rev. Proc. 69-16

Section 1. Purpose

.01 The purpose of this Revenue Procedure is to state requirements and conditions under which information reportable on the following returns:

(a) Form 1099, U.S. Information Return;

(b) Form 1087, Nominee's Information Return;

(c) Form W-2, Wage and Tax Statement;

(hereafter referred to collectively as information returns), may be submitted to the Service by payers, employers, or nominees (hereafter referred to collectively as payers), in the form of magnetic tape in lieu of original copies of paper documents.

.02 This procedure replaces Revenue Procedure 67-31 dated July 24, 1967. The changes embodied herein are intended to clarify and simplify the requirements for magnetic tape reporting and to improve Service processing. The principal change is to eliminate the requirement for payers filing magnetic tape reports to submit renewal applications annually (see Section 2.06). The tape specifications contained herein are unchanged from those in Revenue Procedure 67-31 except that even parity is the desired compatible tape characteristic. Odd parity is acceptable as a convertible characteristic, i.e. IRS will have odd parity tapes translated for them. However, if the Payer/Transmitter can provide either even or odd parity tapes, the Service prefers that even parity tapes be submitted. Otherwise, any magnetic tapes which fully met the requirements of Revenue Procedure 67-31 will be accepted in calendar year 1970. (See Attachment 1, sec. 1.03.)

Sec. 2. Application for Tape Reporting.

.01 Information returns may be filed in the form of magnetic tape in lieu of paper documents. Such returns may be filed by payers, or by agents acting for a single payer or a group of payers. Tape reporting is not restricted to payers with the ability to submit all of their information on magnetic tape. A combination of tape records and paper documents are acceptable as long as there is no duplication or omission of documents.

.02 Payers or agents who desire to file information returns in the form of magnetic tape must first file a letter of application. This letter should be addressed to the Director of Internal Revenue Service Center in the region in which the payer or agent normally files returns, marked "Attention, Chief of Program Analysis Staff." Addresses of the Internal Revenue Service Centers are shown in section 8 of this Procedure.

The letter of request must contain the following:

(a) Name, address, and EI number of person, organization, or firm making the request.

(b) Name, title, and telephone number of person to contact regarding the request.

(c) An estimate, by type of form, of the number of returns to be reported in tape format, and the number, by type of form, to be reported on paper forms.

(d) Type and nature of equipment to be used to prepare tape files, i.e., manufacturer and model of main frame and tape drives, tape width (1/2", 3/4", etc.), density (characters per inch), and recording code (BCD, Excess 3, Octal, etc.).

(e) Internal Revenue office where paper forms were filed last year.

(f) List of payers to be included in the file if the requester is an agent.

(g) Signature of official responsible for the preparation of tax reports or his authorized agent.

.03 The Service will act on applications and notify applicants of authorization or disapproval within 30 days of receipt of applications.

.04 Generally, payers using equipment compatible with the Service's can presume that tape reporting will be approved. Compatible tape characteristics are shown in attachment 1, section 1.01. If payers or agents have the capability to prepare several types of tapes, the Service prefers that compatible tapes be prepared.

.05 If payers or agents propose to submit convertible tapes, the Service will attempt to find conversion facilities. Generally, magnetic tape reporting will be disapproved only when the Service is unable to obtain facilities to convert a payer's file to a compatible form.

.06 In general, once authorization to file magnetic tape has been granted to a payer, such approval will continue in effect in succeeding years, provideing that the requirements of this Revenue Procedure are met, and there are no equipment changes by the payer. However, new applications are required if users change from compatible tapes to equipment producing convertible tapes, or tapes not listed as either compatible or convertible, or if they discontinue tape reporting for one or more years, then decide to resume this method of reporting.

Sec. 3. Filing of Tape Returns

.01 Packaging, shipping, and mailing instructions will be provided in the authorizing letter issued by the Service in response to an application for tape reporting.

.02 Payers submitting a portion of their information returns on magnetic tape and the remainder on paper forms, should file magnetic tape records and paper documents at the same location, but in separate shipments.

.03 A single Form 1096 or W-3 will be required from each payer to cover the entire shipment of returns, including those on paper and magnetic tape. For agents filing returns for several payers, the appropriate transmittal documents, Forms 1096 or W-3, must be filed for each payer whose payments are included in the transmittal. The required Forms 1096 or W-3 should be filed separately from the shipment of magnetic tape. If only a portion of the information returns (W-2, 1087, or 1099) are submitted on magnetic tape, the paper documents should be submitted with the Form 1096 or W-3, along with a statement that remaining returns are to be submitted in the form of magnetic tape. Note on the address of the magnetic tape shipments, "DELIVER UNOPENED TO THE TAPE LIBRARY".

.04 The dates prescribed for filing paper documents with the Service will also apply to magnetic tape filing. Requests for extensions of time for filing and related matters, should be made to the Service Center which has issued the authorizing letter, marked "ATTENTION: CHIEF, PROGRAM ANALYSIS STAFF". If an extension is granted by the Service, a copy of the letter granting the extension should be attached to the Form 1096 or W-3.

.05 The magnetic tape specifications contained in attachment 1 to this Revenue Procedure, must be adhered to unless deviations have been specifically granted by the Service.

.06 Service programs are flexible and may therefore be able to accommodate some minor deviations. Hence, payers who can substantially conform to these specifications but require such minor deviations are encouraged to contact the Chief of the Program Analysis Staff at one of the Internal Revenue Service Centers (see sec. 8 below for addresses). However, under no circumstances may tapes deviating from the specifications in attachment 1 be submitted without prior approval of the Service. Sec. 4. Processing of Tape Returns

.01 The Service will copy the information from the tapes. Normally, the original tapes received by the Service will be returned to the payers or agents by August 31 of the year in which submitted.

.02 However, if the tapes submitted to the Service are unprocessable, and must be returned for correction prior to processing they will be returned within 6 months of receipt of acceptable tapes.

Sec. 5. Corrected Returns

.01 The appropriate paper form will normally be used if it is necessary to correct payee records in the magnetic tape files. Each Form W-2, 1099, or 1087 correcting a tape record must be annotated in the manner specified for corrected returns in Circular E, Revenue Procedure 68-39, or 68-42 as appropriate. Corrected documents should contain all relevant information so that they completely supersede the returns recorded on tape.

.02 Returns correcting paper documents should be bundled separately from other paper documents. When correcting documents are shipped separately, corrected Forms 1096 or W-3 must also be filed.

.03 If a large volume of corrected returns are necessary and the payer or agent possesses the capability to provide such corrections on tape, he should contact the Chief of the Program Analysis Staff at the Internal Revenue Service Center to which the tape returns were or are to be submitted.

Sec. 6. Effect on Paper Documents

.01 Reports on magnetic tape can be substituted for only the original copy (copy A) of Forms W-2, 1099, and 1087. When magnetic tape returns are filed in lieu of Forms 1099 or 1087, payers will not be required to furnish payees or other persons with copies which conform to the format and paper specifications of Revenue Procedures 68-39 or 68-42 as appropriate. However, payers must supply their payees with the information required to be shown on the paper forms, in a manner conducive to proper reporting on their tax returns. In addition, payers filing magnetic tape returns in lieu of Form W-2, must continue to furnish their payees with the prescribed forms or with paper substitutes which meet the requirements and specifications in Revenue Procedure 68-38.

.02 If only a portion of the information returns is reported on magnetic tape and the remainder is reported on paper forms, those returns not submitted on magnetic tape must be filed on the appropriate prescribed forms, or on paper substitutes meeting the format requirements and paper specifications in Revenue Procedures 68-38, 68-39, or 68-42.

Sec. 7. Data Entries

.01 The Service expects that payers will make every effort to keep to a minimum information returns submitted without taxpayer identifying numbers, through continued compliance with the requirements set forth in section 1.6109 of the Income Tax Regulations, and section 31.6109 of the Employment Tax Regulations. However, when a taxpayer identification number of a payee has not been furnished to the payer, the specifications in attachment 1 permit its omission.

.02 The Service must be able to identify the surname associated with the taxpayer identifying number furnished on an information return. When returns are received in the form of paper documents this is accomplished through a manual editing process. However, manual editing is precluded when returns are received on magnetic tape. Hence, the attached specifications include a data field in the payee records called "Name Control", in which the first four alphabetic characters of the payee surname are to be entered by payers.

.03 If payers are unable to provide the first four characters of the payee surname, the specifications permit the submission of information returns on magnetic tape with the Name Control field left blank. However, compliance with the following will facilitate the Service computer programs required to generate the Name Control.

(a) Record the surname on the first name line.

(b) A blank space should precede the surname unless the surname begins in the first position of the field.

(c) In cases of multiple payees, provide the required linkage by recording an asterisk immediately preceding the surname of the person whose identifying number has been provided, or place the surname of the linked payee before all other names.

.04 Sometimes the payee identification recorded on the payer's records is lengthy, and exceeds the 80 characters allotted on the magnetic tape records. This is most common in the case of trusts or other types of fiduciary accounts; the first 80 characters of the payee identification normally provide sufficient descriptive data for Service purposes. Although it is preferred that payers would truncate or abbreviate lengthy payee descriptions, provision is made in the specifications for additional payee descriptions.

.05 Provision is also made in these specifications for data entries not required for Federal tax purposes but which may be required by State or Local governments, in order to minimize the programming burden should payers desire to report on tape to State or Local as well as to the Federal government.

Sec. 8. Additional Information Requests for additional copies of this Revenue Procedure and the attached specifications, or requests for additional information on tape reporting should be addressed to the Chief, Program Analysis Staff, Internal Revenue Service Center, at one of the following addresses:

     (a) Southeast Region

 

         P.O. Box 47-421, Doraville,

 

         Ga. 30340

 

 

     (b) Midwest Region

 

         P.O. Box 5321, Kansas City,

 

         Mo. 64131

 

 

     (c) Central Region

 

         P.O. Box 267, Covington, Ky.

 

         41012

 

 

     (d) Southwest Region

 

         P.O. Box 934, Austin, Tex.

 

         78767

 

 

     (e) North Atlantic Region

 

         P.O. Box 311, Andover, Mass.

 

         01810

 

 

     (f) Mid-Atlantic Region

 

         11601 Roosevelt Boulevard,

 

         Philadelphia, Pa. 19155

 

 

     (g) Western Region

 

         P.O. Box 388, Ogden, Utah

 

         84401

 

 

Sec. 9. Effect on Other Documents

This Revenue Procedure supplements Revenue Procedures 68-38, C.B. 1968-2, 927; 68-39, C.B. 1968-2, 932; and 68-42, C.B. 1968-2, 944; and supersedes Revenue Procedure 67-31, C.B. 1967-2, 644.

Attachment 1--Magnetic Tape Specifications

SECTION 1. GENERAL

.01 These specifications prescribe the required format and content of the records to be included in the file, but not the methods or equipment to be used in their preparation. Usually the Service will be able to process, without translation, any compatible tape file. To be compatible, a tape file must meet all of the following:

 Type of tape                       1/2 inch Mylar base, oxide coated.

 

 Recording density                  556 or 800 CPI.

 

 Parity                             Even.

 

 Interrecord gap                    3/4 inch.

 

 Recording code                     7 channel binary coded decimal

 

                                      (BCD).

 

 

.02 Convertible tapes for which conversion facilities are currently available are:

9 channel (EBCDIC).

9 channel (ASCII) see Bureau of Standards FIPS Publication 3--Federal Information Processing Standards Publication.

Odd parity.

200, 1600 densities.

The Service will attempt to find conversion facilities for any other characteristics listed on the Magnetic Tape Application form that differ from the above specifications.

.03 Any magnetic tapes which fully meet the requirements of Revenue Procedure 67-31 will also meet the requirements specified herein with the exception of odd parity. Only even parity is compatible, although odd parity is listed as a convertible tape characteristic. An acceptable tape file will contain, for each payer, the following:

(1) A Payer/Transmitter Record ("A" Record);

(2) A series of Payee Records ("B" Records); and

(3) An End of Payer Records ("C" Record).

In addition, multiple reel files will have the following:

(4) End of Reel Records ("D" Record).

All files will contain the following:

(5) An End of Transmission Record ("F" Record).

All records including headers and trailers if used, must be written at the same density.

SEC. 2. CONVENTIONS AND DEFINITIONS

.01 Certain conventions may be required by the programming system or equipment used by the payer, with respect to header and trailer labels, record marks, and tape marks. Their use is optional, but if present they must adhere to the following:

 Header Label            1. Can only be the first record on a reel.

 

                         2. Must consist of a maximum of 80

 

                            characters.

 

                         3. First 4 characters must be 1 HDR.

 

 

 Trailer Label           1. Can only be the last record of a reel.

 

                         2. Must consist of a maximum of 80

 

                            characters.

 

 

 Record Mark             1. Can only be at the end of a block or the

 

                            end of a record.

 

 

 Tape Mark               1. If trailer labels are not used they can

 

                            only follow a D record, (end of reel) or

 

                            an F record (end of transmission).

 

                         2. If header and trailer labels are used, it

 

                            cannot follow a header label but must

 

                            precede and follow a trailer label.

 

 

.02 DEFINITIONS

     Element                            Description

 

 b                       Denotes a blank position.

 

 Special character       Any character that is not a numeral, a

 

                          letter, or a blank.

 

 Payer                   Person or organization, including paying

 

                          agent, making payments. The Payer will be

 

                          held responsible for the completeness,

 

                          accuracy, and timely submission of magnetic

 

                          files.

 

 Transmitter             Person or organization preparing tape files.

 

                          May be Payer or agent of Payer.

 

 Payee                   Person(s) or organization(s) receiving

 

                          payments from Payer.

 

 Coding Range            Shows the lowest and highest codes

 

                          acceptable. For example: Coding Range 0-4

 

                          indicates that codes 0, 1, 2, 3, or 4 are

 

                          acceptable in the tape position.

 

 Record                  A group of related fields of information,

 

                          treated as a unit.

 

 Blocked records         2 or more records grouped together between

 

                          interrecord gaps.

 

 Unblocked records       A single record which is written between

 

                          interrecord gaps.

 

 Blocking Factor         Number of records grouped together to form a

 

                          block. Should be "1" if records are not

 

                          blocked (unblocked).

 

 File                    For the purposes of this procedure, a file

 

                          consists of all tape records submitted by a

 

                          Payer or transmitter for a specific type of

 

                          information document.

 

                         For example: Payers reporting data for both

 

                          Form W-2 and Form 1099 would submit two

 

                          files. One file would contain W-2 data, the

 

                          other 1099 data. Another example: A Payer

 

                          transmits data for Form W-2 from several

 

                          locations (payroll office, data center,

 

                          regional office, etc.), with data from each

 

                          on separate reels. The submission from each

 

                          location would be a file.

 

 Reel                    A spool of magnetic tape.

 

 Record mark             Special character used either to limit the

 

                          number of characters in a data transfer, or

 

                          to separate blocked records on tape. For

 

                          compatibility with the Service's equipment,

 

                          use BCD bit configuration A82.

 

 Tape mark               Special character that is written on tape to

 

                          signify the physical end of the recording on

 

                          tape. For compatibility with the Service's

 

                          equipment, use BCD bit configuration 8421.

 

 EIN                     Employer Identification Number.

 

 SSN                     Social Security Number.

 

 

.03 Since the Service is not restricting magnetic tape reporting to payers or transmitters with specific types of equipment, or prescribing the methods used to prepare the tapes files, the Payer/Transmitter ("A" Record), End of Payer ("C" Record), End of Reel ("D" Record), and End of Transmission ("F" Record), perform the functions normally assigned to header and trailer labels, and related conventions. The Payer/Transmitter Record serves the purpose of a header label, the End of Payer Record indicates that all Payee Records for a Payer have been written, the End of Reel Record signals that no more Payee Records are written on the reel, and the End of Transmission Record indicates that the end of the file has been reached. In addition to the functions stated above, the End of Reel and End of Payer Records are used to balance each reel or each payer's records on a reel.

SEC. 3. RECORD LENGTH

.01 The tape records prescribed in the specifications may be blocked or unblocked, subject to the following:

1. A block may not exceed 4,000 tape positions.

2. If the use of blocked records would result in a short block at the end of the file representing all payments made by the payer, all remaining positions of the block must be filled with 9's. However, filling with 9's is allowable only in the last block of returns for a payer.

3. Two forms of blocking are acceptable:

(a) Only payee records are blocked; all other records are unblocked.

(b) All records, except header and trailer labels, if used, are blocked. If so, and if payments from more than one payer are reported on the same tape, a Payer/Transmitter Record cannot be in the middle of a block, but must be the first record in a block.

.02 Provision is made for special data entries in the payee record ("B" Record). These entries are optional; a payer or agent may choose not to utilize this field. If the field is utilized it must be present on all payee records of a payer. The field is intended to serve one or both of these purposes:

1. Carry information required by state or local governments in connection with income reporting on magnetic tape to those jurisdictions when authorized.

2. Carry additional payee description if the eighty characters provided in the payee record ("B" Record) are insufficient. However, it would be preferable to the Service if such lengthy payer records were truncated or otherwise shortened. (Contact the Service Center for detailed instructions if additional payee description will be required.)

SEC. 4. PAYER/TRANSMITTER ("A" RECORD)

Identifies the payer and transmitter of the tape files and provides parameters for the succeeding Payee records. The Service relies in its computer programs on the absolute relationship between the parameters in the Payer/Transmitter Record and the data fields to which they apply. The number of Payer/Transmitter Records appearing on one tape reel will depend on the number of payers being reported. A transmitter may include Payee Records ("B" Records) for more than one payer on a tape reel; however, each separate Payer's Payee Records must be preceded by a Payer/Transmitter Record ("A" Record). Separate tape files on separate reels must be submitted if payer is reporting payment data for more than one type of information return. When multiple reels are required for a single file, the correct Payer/Transmitter Record ("A" Record) must be repeated as the first record (second record if header labels are used) on every succeeding reel in the file to which it applies, and the reel number must be incremented by 1 on each tape after the first one.

 Tape Position   Element Name                   Entry

 

 --------------------------------------------------------------------

 

 1             Record Type         Enter "A". Must be first character

 

                                    of each Payer/Transmitter Record.

 

 2             Payment Year        The last digit of the year for

 

                                    which payments are being reported.

 

 3-5           Reel Number         Serial Number assigned by the

 

                                    transmitter to each reel, starting

 

                                    with 001. If header labels are

 

                                    used, this should be the same as

 

                                    Reel Sequence Number.

 

 6-14          EIN-Payer           Enter the 9 numeric characters of

 

                                    the Employer Identification

 

                                    Number. Do NOT include the hyphen.

 

 15-16         Blocking Factor     Enter the number of records in a

 

                                    block. A block must not exceed

 

                                    4,000 positions.

 

 17            Type of Information Enter "1" for 1099. Enter "2" for

 

                                    1087.

 

                Document Reported  Enter "3" for W-2. Enter "4" for

 

                 in the Payee       Agriculture Subsidy.

 

                 Records

 

                 Following.

 

 18-24         Amount Indicator    Amount Codes will be entered in

 

                                    Amount Indicator to show the type

 

                                    of payments appearing in the

 

                                    Payment Amount fields and the

 

                                    position of such payments. The

 

                                    Amount Indicator Codes will apply

 

                                    to all succeeding Payee Records in

 

                                    a file. Definition of each type of

 

                                    payment listed below is the same

 

                                    for magnetic tape as for

 

                                    equivalent paper documents.

 

                                   Up to 7 payment amounts may be

 

                                    included in a payee record. Enter

 

                                    Codes for the amount fields which

 

                                    will be present, beginning in tape

 

                                    position 18, in ascending sequence

 

                                    and leaving no blank spaces

 

                                    between indicators. Then fill

 

                                    remainder of the field with

 

                                    blanks: If a particular Amount

 

                                    Type will not be used, do not

 

                                    enter Amount Code in Amount

 

                                    Indicator. If an Amount Type will

 

                                    be used for some but not all

 

                                    records, enter the Amount Code in

 

                                    the Amount Indicator. Position 18

 

                                    must always have a code other than

 

                                    blank. If position 17 of a

 

                                    Payer/Transmitter Record is 1 (for

 

                                    1099's), coding range is 1-7, or

 

                                    b. If position 17 is 2 (for

 

                                    1087's), coding range is 1-3 or b.

 

                                    If position 17 is 3 (for W-2's)

 

                                    coding range is 1-7 or b. Note:

 

                                    "b" (a blank) is the only code

 

                                    that may appear in 2 or more

 

                                    positions of the Amount Indicator,

 

                                    after the 1st position and it

 

                                    cannot be followed by an Amount

 

                                    Code.

 

 

                                   The payment codes are as follows:

 

 

                                     PAYMENTS NORMALLY REPORTED ON

 

                                     FORM 1099

 

                                   Amount

 

                                    Code          Amount Type

 

                                         1  Dividends and other

 

                                             distributions.

 

                                         2  Earnings from savings and

 

                                             loan associations, mutual

 

                                             savings banks, credit

 

                                             unions, etc.

 

                                         3  Interest. Do not include

 

                                             items reportable under

 

                                             Code 2.

 

                                         4  Patronage dividends and

 

                                             certain other

 

                                             distributions by

 

                                             cooperatives.

 

                                         5  Rents and royalties.

 

                                         6  Annuities, pensions, and

 

                                             other fixed or

 

                                             determinable income.

 

                                         7  Foreign items, prizes,

 

 

                                             awards, etc. Do not

 

                                             include items reportable

 

                                             on Form W-2.

 

                                              Example: If position 17

 

                                             of the payer/Transmitter

 

                                             Record is "1" (for

 

                                             1099's) and positions 18-

 

                                             24 are "13bbbbb", this

 

                                             indicates only 2 amount

 

                                             fields are used. In this

 

                                             case, dividends and

 

                                             interest.

 

                                     PAYMENTS NORMALLY REPORTED ON

 

                                      FORM 1087

 

                                         1  Dividends and other

 

                                             distributions.

 

                                         2  Earnings from savings and

 

                                             loan associations, mutual

 

                                             savings banks, credit

 

                                             unions, etc.

 

                                         3  Interest. Do not include

 

                                             items reportable on Form

 

                                             1099 under Code 4.

 

                                             Example: If position 17

 

                                            of the Payer/Transmitter

 

                                            Record is "2" (for 1087's)

 

                                            and positions 18-24 are

 

                                            "1bbbbbb", this indicates

 

                                            only 1 amount field is

 

                                            used. It represents

 

                                            dividends and other

 

                                            distributions.

 

                                     PAYMENTS NORMALLY REPORTED ON

 

                                      FORM W-2

 

                                   Amount

 

                                    Code          Amount Type

 

                                         1  Federal income tax

 

                                             withheld (must be

 

                                             present).

 

                                         2  Wages paid subject to

 

                                             withholding (must be

 

                                             present).

 

                                         3  Salary or other

 

                                             compensation which was

 

                                             not subject to

 

                                             withholding.

 

                                         4  FICA employee tax (must be

 

                                             present).

 

                                         5  Total FICA wages paid.

 

                                         6  Excludable Sick Pay.

 

                                         7  Uncollected employee tax

 

                                             tips.

 

                                             Example: If position 17

 

                                            of Payer/Transmitter

 

                                            Record is 3, codes

 

                                            "124bbbb", in positions

 

                                            18-24 (for W-2's) indicate

 

                                            that there are only 3

 

                                            amount fields in all the

 

                                            payee records. The 1st

 

                                            field represents Federal

 

                                            income tax withheld; the

 

                                            2nd, wages paid subject to

 

                                            withholding; and 3rd, FICA

 

                                            employee tax.

 

 25-27         "b" (Blank)         Not used by the Service.

 

 28-30         Record Length       Enter number of positions allowed

 

                Payer/Transmitter   for Payer/Transmitter Record. If

 

                Record.             record mark or equivalent is used,

 

                                    include in count.

 

 31-33         Record Length       Enter number of positions allowed

 

                Payee Record.       for a Payee Record. If Special

 

                                    Data field is present in payee

 

                                    record and/or if record marks are

 

                                    used, they must be included in the

 

                                    count.

 

 34-40         Blank               Not used by the Service.

 

 41-80         1st Name Line       Enter first name line of payer.

 

                Payer.              Left justify and fill with blanks.

 

 81-120        2nd Name Line       Enter second name line of payer.

 

                Payer.              Left justify and fill with blanks.

 

                                    Leave blank if not used.

 

 121-160       Street Address      Enter street address of payer. Left

 

                Payer.              justify and fill with blanks.

 

 161-200       City, State, ZIP    Enter City, State, and ZIP Code of

 

                 Code.              payer. Left justify and fill with

 

                Payer.              blanks.

 

 

The following items are required if the Payer and Transmitter are not the same, or the transmitter includes files for more than one payer:

 Tape Position   Element Name                   Entry

 

 --------------------------------------------------------------------

 

 201-240       1st Name Line       Enter 1st name line of Transmitter.

 

                Transmitter.        Left justify and fill with blanks.

 

 241-280       2nd Name Line       Enter 2nd name line of Transmitter.

 

                Transmitter.        Left justify and fill with blanks.

 

                                    Leave blank if not required.

 

 281-320       Street Address      Enter street address of

 

                Transmitter.        Transmitter. Left justify and fill

 

                                    with blanks.

 

 321-360       City, State, ZIP    Enter City, State, and ZIP Code of

 

                  Code--            Transmitter. Left justify and fill

 

                Transmitter.        with blanks.

 

 

SEC. 5. PAYEE RECORD ("B" RECORD)

Contains payment record from individual information returns. Records may be blocked or unblocked. A block may not exceed 4,000 tape positions. All records must be fixed length.

 Tape Position   Element Name                   Entry

 

 --------------------------------------------------------------------

 

 1             Record Type         Enter "B". Must be 1st character of

 

                                    each Payee Record.

 

 2-3           Payment Year        Last 2 digits of the year for which

 

                                    payments are being reported.

 

 4-6           Blank               Not used by the Service.

 

 7-10          Name Control        If the Type of Account in position

 

                                    11 is a "1," enter "1111."

 

                                    Otherwise, enter the first 4

 

                                    letters of the surname of the

 

                                    payee. A hyphen should be treated

 

                                    as a character but a blank between

 

                                    characters should be disregarded.

 

                                    In last names of less than 4

 

                                    letters or hyphens, the remaining

 

                                    positions must be blank. If Name

 

                                    Control is not determinable by the

 

                                    payer, leave this field blank.

 

 11            Type of Account     Enter a "1" if the payee is a

 

                                    business or organization entity,

 

                                    if the entry in positions 12-20 is

 

                                    an Employer Identification Number.

 

                                   Enter a "2" if the entry in

 

                                    positions 12-20 is a Social

 

                                    Security Number.

 

                                   Enter a "9" if the payee is a

 

                                    nonresident alien or a foreign

 

                                    corporation doing business solely

 

                                    outside the United States and is,

 

                                    therefore, not required to have an

 

                                    identification number.

 

                                   Enter a "b" if a Social Security

 

                                    Number is required but is not

 

                                    available.

 

 12-20         SSN or EIN of       Enter Social Security Number or

 

                Payee.              Employer Identification Number of

 

                                    payee, as appropriate. Enter

 

                                    blanks (do not fill with zeros) if

 

                                    number is not available. This

 

                                    field must be blank if position 11

 

                                    is a "9" or "b".

 

 21-30         Payer's Account     Enter Account Identification Number

 

                                    assigned to Payee by Payer. This

 

                                    item is optional, but its presence

 

                                    may facilitate subsequent

 

                                    reference to payer's files if

 

                                    questions arise regarding specific

 

                                    records in the file. Enter blanks

 

                                    if there is no Payer Account

 

                                    Identification Number.

 

               Payment Amounts.    Record each payment amount in

 

                                    dollars and cents, omitting dollar

 

                                    sign, commas, and periods. Right

 

                                    justify and fill unused positions

 

                                    with zeros.

 

                                   Payment amount fields identified by

 

                                    a code other than blank in the

 

                                    Amount Indicator (Positions 18-24

 

                                    of the Payer/Transmitter Record),

 

                                    should be zero filled when amounts

 

                                    are not applicable to a particular

 

                                    record. Do not provide a payment

 

                                    amount field when the Amount

 

                                    Indicator is blank.

 

                                     For example: The Amount Indicator

 

                                    contains 123bbbb. Payee Records in

 

                                    this file should have only 3

 

                                    payment amount fields. If Amount

 

                                    Indicator contains 12367bb, Payee

 

                                    Records should have 5 payment

 

                                    amount fields.

 

 31-40         Payment Amount 1.   This amount is identified by the

 

                                    amount code in position 18 of the

 

                                    Payer/Transmitter Record. This

 

                                    entry must always be present.

 

 41-50         Payment Amount 2.   This amount is identified by the

 

                                    amount code in position 19 of the

 

                                    Payer/Transmitter Record. If

 

                                    position 19 of the

 

                                    Payer/Transmitter Record is blank,

 

 

                                    do not provide for this payment

 

                                    field.

 

 51-60         Payment Amount 3.   This amount is identified by the

 

                                    amount code in position 20 of the

 

                                    Payer/Transmitter Record. If

 

                                    position 20 of the

 

                                    Payer/Transmitter Record is blank,

 

                                    do not provide for this payment

 

                                    field.

 

 61-70         Payment Amount 4.   This amount is identified by the

 

                                    amount code in position 21 of the

 

                                    Payer/Transmitter Record. If

 

                                    position 21 of the

 

                                    Payer/Transmitter Record is blank,

 

                                    do not provide for this payment

 

                                    field.

 

 71-80         Payment Amount 5.   This amount is identified by the

 

                                    amount code in position 22 of the

 

                                    Payer/Transmitter Record. If

 

                                    position 22 of the

 

                                    Payer/Transmitter Record is blank,

 

                                    do not provide for this payment

 

                                    field.

 

 81-90         Payment Amount 6.   This amount is identified by the

 

                                    amount code in position 23 of the

 

                                    Payer/Transmitter Record. If

 

                                    position 23 of the

 

                                    Payer/Transmitter Record is blank,

 

                                    do not provide for this payment

 

                                    field.

 

 91-100        Payment Amount 7.   This amount is identified by the

 

                                    amount code in position 24 of the

 

                                    Payer/Transmitter Record. If

 

                                    position 24 of the

 

                                    Payer/Transmitter Record is blank,

 

                                    do not provide for this payment

 

                                    field.

 

 Next 40       1st Name Line       Enter the name of the payee. If

 

  positions     Payee.              fewer than 40 characters

 

  after Last                        are required, left justify and

 

  Payment                           fill unused positions with blanks.

 

  Amount field,                     If more space is required, utilize

 

  see                               the 2nd Name Line field. However,

 

  footnote. 1                     in such cases, the surname of the

 

                                    individual whose Social Security

 

                                    Number has been provided in

 

                                    positions 12-20 MUST appear in the

 

                                    first name line.

 

 Next 40       2nd Name Line       If the payee name requires more

 

  positions     Payee.              space than is available in the 1st

 

  after the                         Name Line, enter the remaining

 

  1st Name                          portion of the name in this field.

 

  Line.                             Left justify and fill unused

 

                                    positions with blanks. Fill with

 

                                    blanks if this field is not

 

                                    required.

 

                                      If more than 80 positions is

 

                                    required for payee name, contact

 

                                    the Service Center for

 

                                    instructions.

 

 Next 40       Street Address      Enter street address of payee. Left

 

  positions     Payee.              justify and fill with blanks.

 

  after 2nd                         Enter blanks if not available.

 

  Name Line.

 

 Next 40       City, State, ZIP    Enter the City, State, and ZIP

 

  positions     Code.               Code of the payee, in that

 

  after Street                      sequence.

 

  Address.

 

 Next field    Special Data        The last portion of each Payee

 

  after City,  Entries--Entries     Record may be used to record

 

  State, and   Optional.            information required for State or

 

  ZIP Code                          Local Government or for other

 

  (maximum at                       purposes. Special Data Entries

 

  100                               will begin in position 201, 211,

 

  positions).                       221, 231, 241, 251, or 261,

 

                                    depending on the number of payment

 

                                    amount fields included in the

 

                                    record.

 

 

      1 If only 1 amount field, 1st Name Line would start in

 

 position 41; if 3 amount fields it would start in position 61, etc.

 

 

SEC. 6. END OF PAYER RECORD ("C" RECORD)

Write this record after the last Payee Record ("B" Record) for a Payer has been written. A tape reel may contain more than one End of Payer Record if the last Payee Record for more than one Payer is written on the reel. Each End of Payer Record must contain a count of payees and totals of each payment amount reported for all Payee Records written on the same reel, which have not been summarized in preceding End of Payer Records on the reel. The End of Payer Record must be followed by a new "A" Payer/Transmitter Record, a "D" End of Reel Record, or "F" End of Transmission Record. The new Payer/Transmitter Record, however, cannot be written in the same block as the End of Payer Record. A new block, with the new Payer/Transmitter Record as the first record, must be started. The End of Payer Record cannot be followed by a Tape Mark.

 Tape Position   Element Name                   Entry

 

 --------------------------------------------------------------------

 

 1             Record Type         Enter "C". Must be 1st character of

 

                                    each End of Payer Record.

 

 2-7           Number of Payees.   Enter the total number of payees

 

                                    covered by the payer on this tape

 

                                    reel. Zero fill if less than 6

 

                                    positions are required.

 

 8-19          Control Total 1     Enter grand total of each payment

 

 20-31         Control Total 2      amount covered by the payer on

 

 32-43         Control Total 3      this tape reel. Right justify and

 

 44-55         Control Total 4      zero fill. If less than 7 amounts

 

 56-67         Control Total 5      are being reported in the Payee

 

 68-79         Control Total 6      Records, zero fill remaining

 

 80-91         Control Total 7      Control Total positions.

 

                                     For example: If only 1 payment

 

                                    amount is being reported, zero

 

                                    fill tape positions for Control

 

                                    Totals 2, 3, 4, 5, 6, and 7.

 

 

SEC. 7. END OF REEL RECORD ("D" RECORD)

Write this record when the end of the normal writing area of each reel has been reached, but all records in the file have not been written. This record indicates that there are additional reels in the file. Each End of Reel Record must contain a count of payees and totals of each payment amount reported for all Payee Records not summarized in End of Payer Records which may precede it on the reel. The counts and totals in the End of Reel Record should summarize only the Payee Records which precede it on the reel. This record cannot be followed by an "A" Payer/Transmitter, "C" End of Payer, or "F" End of Transmission Record. A Tape Mark or Tape Mark and Trailer Label (see Attachment 1, sec. 2.01) may follow.

 Tape Position   Element Name                   Entry

 

 --------------------------------------------------------------------

 

 1             Record Type         Enter "D". Must be 1st character of

 

                                    each End of Reel Record.

 

 2-7           Number of Payees.   Enter the total number of payees

 

                                    not summarized in the End of Payer

 

                                    Records on this tape reel. Zero

 

                                    fill if less than 6 positions are

 

                                    required.

 

 8-19          Control Total 1     Enter grand total of each payment

 

 20-31         Control Total 2      amount not summarized in End of

 

 32-43         Control Total 3      Payer Records on this tape reel.

 

 44-55         Control Total 4      Right justify and zero fill.

 

 56-67         Control Total 5        If less than 7 amounts are being

 

 68-79         Control Total 6      reported on the Payee Records,

 

 80-91         Control Total 7      zero fill remaining Control Total

 

                                    positions. For example: If only 1

 

                                    payment amount is being reported,

 

                                    zero fill tape positions for

 

                                    Control Totals 2, 3, 4, 5, 6, and

 

                                    7.

 

 

SEC. 8. END OF TRANSMISSION ("F" RECORD)

Write this record after the last End of Payer Record in the file. This record can be followed only by a Tape Mark or Tape Mark and Trailer Label (see ATTACHMENT 1, sec. 2.01)

 Tape Position   Element Name                   Entry

 

 --------------------------------------------------------------------

 

 1             Record Type         Enter "F". Must be 1st character of

 

                                    the End of Transmission Record.

 

 2-4           Number of Payers    Enter total number of payers on

 

                                    this file. Zero fill. Right

 

                                    justify.

 

 5-7           Number of Reels     Enter total number of reels in this

 

                                    file. Zero fill. Right justify.

 

 8-30          Zeros               Zero fill.

 

 

SEC. 9. TAPE LAYOUTS

The following charts shows, by type of file, the record types to be used in the first two and the last three records written on a tape reel.

                                                 2nd    Next

 

                                  1st    2nd    from   to last  Last

 

       Type of File              record record  last   record  record

 

                                  type   type  record   type    type

 

                                                type

 

 --------------------------------------------------------------------

 

 Single payer, single reel       A      B      B       C 1   F

 

 Single payer, multiple reels:

 

     Reel 1                      A      B      B       B       D 2

 

     Last reel                   A      B      B       C 1   F

 

 Multiple payers, single reel:

 

     Payer 1                     A      B      B       B       C

 

     Payer 2                     A      B      B       B       C

 

     Last payer                  A      B      B       C 1   F

 

 Multiple payers, multiple

 

  reels; first payer's records

 

  split between reel 1 and

 

  reel 2; second payer's

 

  records split between reel 2

 

  and reel 3:

 

     Reel 1: Payer 1             A      B      B       B       D 2

 

     Reel 2:

 

       Payer 1                   A      B      B       B       C

 

       Payer 2                   A      B      B       B       D 1

 

     Reel 3:

 

       Payer 2                   A      B      B       B       C

 

       Payer 3                   A             B       C 1   D 3

 

     Reel 4: Last payer                 B      B       C 1   F

 

 Multiple payers, single

 

  transmitter, separate files

 

  for each payer:

 

     File 1: Payer 1: Last reel  A      B      B       C 1   F

 

     File 2: Payer 2:

 

       Reel 1                    A      B      B       B       D 2

 

       Last reel                 A      B      B       C 1   F

 

     File 3: Payer 3: Last reel  A      B      B       C 1   F

 

 Single payer, multiple

 

  transmitter (payer submits

 

  files from various locations):

 

     Payer 1:

 

       Location 1: Last reel     A      B      B       C 1   F

 

       Location 2: Last reel     A      B      B       C 1   F

 

 Single payer, multiple

 

  transmitter, etc.:

 

     Location 3:

 

       Reel 1                    A      B      B       B       D 2

 

       Reel 2                    A      B      B       B       D 2

 

       Last reel                 A      B      B       C 1   F

 

 

      1 Must contain "Number of Payees" and "Control Totals"

 

 summarizing all Payee Records written for this Payer on this reel.

 

 

      2 Must contain "Number of Payees" and "Control Totals"

 

 summarizing all Payee Records written on this reel.

 

 

      3 "Number of Payees" and all "Control Totals" fields must be

 

 zero filled.
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Forms and instructions.

    (Also Part I, Sections 6011, 6041, 6042, 6051; 31.6011(a)-7,

    1.6041-1, 1.6041-5, 1.6042-2, 31.6051-1.)
  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
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