ALTERNATE FORMS RESTRICTIONS RELAXED UNDER NEW REVENUE PROCEDURE.

Rev. Proc. 94-51

SECTION 1. PURPOSE

The purpose of this revenue procedure is to revise Revenue Procedure 94-34, 1994-18 I.R.B. 19, Part A, Section 5 to allow for more flexibility in the approval of substitute individual tax returns in future tax years. This section is amended to read as follows:

SEC. 5. STATEMENT OF INTENTION -- FUTURE FORM 1040 PROCESSING

.01 Background. In order to improve the efficiency and accuracy of processing returns, the Service intends to require that individual tax returns be filed in one of the following formats:

1 Electronically filed returns;

2 Computer-Prepared Form 1040PC Format Returns);

3 IRS-published Forms 1040, 1040A, and 1040EZ and their respective forms and schedules (or machine readable substitutes).

.02 Application for Permission. You must receive the permission of the Service before you can file returns electronically (see Part B, Sec. 21) or distribute software that produces Form 1040PC (see Part B, Sec. 14). Refer to Publication 1345, Handbook for Electronic Filers of Individual Income Tax Returns, for additional information on electronic filing. Refer to Publication 1678, Handbook for 1040PC Format Preparers, and Publication 1630, Project 1040PC, Specification for Software Developers, for additional 1040PC information.

.03 Machine Readable Substitutes. This would include:

1 Exact duplicates of published Forms 1040, 1040A, and 1040EZ and their forms and schedules including paper, typeface, ink type, and color. In the event that dropout ink is used, the Service will notify the forms and software development community of the specifications, and

2 Computer generated and computer printed forms that meet criteria to be published based on (a) the Service's systems requirements and (b) input from tax practitioner groups and the forms and software development community.

.04 Effective Date. The changes in this section will become effective as the Service's new computer systems become operational. However, the electronic filing and Form 1040PC programs are currently operational and we encourage your participation in them.

SECTION 2. EFFECT ON OTHER DOCUMENTS

This revenue procedure amends Revenue Procedure 94-34, 1994-18 I.R.B. 19.