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IRS PUBLISHES ELECTRONIC AND MAGNETIC MEDIA SPECS FOR 1994 RETURNS.

JUL. 5, 1994

Rev. Proc. 94-43; 1994-2 C.B. 571

DATED JUL. 5, 1994
DOCUMENT ATTRIBUTES
Citations: Rev. Proc. 94-43; 1994-2 C.B. 571

Superseded by Rev. Proc. 95-29

Rev. Proc. 94-43

NOTE: Use this revenue procedure to prepare tax year 1994 information returns for submission to Internal Revenue Service (IRS) using any of the following:

     -- Magnetic Tape

 

     -- Tape Cartridge

 

     -- 5 1/4-inch Diskette

 

     -- 3 1/2-inch Diskette

 

     -- 8-inch Diskette

 

     -- Electronic Filing

 

        -- (Bisynchronous)

 

        -- (Asynchronous)

 

 

Please read this publication carefully. Persons or businesses required to file information returns may be subject to penalties for failure to file or failure to 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 1994)

 

     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

 

     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. 5 1/4-INCH AND 3 1/2-INCH DISKETTE SPECIFICATIONS

 

     SECTION 5. PAYER/TRANSMITTER "A" RECORD--GENERAL FIELD

 

                 DESCRIPTIONS

 

     SECTION 6. PAYER/TRANSMITTER "A" RECORD--RECORD LAYOUT

 

     SECTION 7. PAYEE "B" RECORD--GENERAL FIELD DESCRIPTIONS AND

 

                 RECORD LAYOUTS

 

     SECTION 8. END OF PAYER "C" RECORD--RECORD LAYOUT

 

     SECTION 9. STATE TOTALS "K" RECORD--RECORD LAYOUT

 

     SECTION 10. END OF TRANSMISSION "F" RECORD--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. SINGLE DENSITY (8-INCH) DISKETTE SPECIFICATIONS

     SECTION 1. GENERAL

 

     SECTION 2. DISKETTE HEADER LABEL

 

     SECTION 3. PAYER/TRANSMITTER "A" RECORD--GENERAL INFORMATION

 

     SECTION 4. PAYER/TRANSMITTER "A" RECORD--RECORD LAYOUT

 

     SECTION 5. PAYEE "B" RECORD--GENERAL INFORMATION FOR ALL FORMS

 

     SECTION 6. PAYEE "B" RECORD--FIELD DESCRIPTIONS FOR SECTORS 1

 

                 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1

 

                 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID,

 

                 1099-S, AND W-2G

 

     SECTION 7. PAYEE "B" RECORD--RECORD LAYOUTS FOR SECTORS 1

 

                 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1

 

                 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID,

 

                 1099-S, AND W-2G

 

     SECTION 8. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-A

 

     SECTION 9. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-B

 

     SECTION 10. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-C

 

     SECTION 11. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-OID

 

     SECTION 12. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-S

 

     SECTION 13. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM W-2G

 

     SECTION 14. END OF PAYER "C" RECORD--RECORD LAYOUT

 

     SECTION 15. STATE TOTALS "K" RECORD--RECORD LAYOUT

 

     SECTION 16. END OF TRANSMISSION "F" RECORD--RECORD LAYOUT

 

 

PART F. DOUBLE DENSITY (8-INCH) DISKETTE SPECIFICATIONS

     SECTION 1. GENERAL

 

     SECTION 2. DISKETTE HEADER LABEL

 

     SECTION 3. PAYER/TRANSMITTER "A" RECORD--GENERAL INFORMATION

 

     SECTION 4. PAYER/TRANSMITTER "A" RECORD--RECORD LAYOUT

 

     SECTION 5. PAYEE "B" RECORD--GENERAL INFORMATION FOR ALL FORMS

 

     SECTION 6. PAYEE "B" RECORD--FIELD DESCRIPTIONS FOR SECTORS 1

 

                 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF

 

                 FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND

 

                 W-2G

 

     SECTION 7. PAYEE "B" RECORD--RECORD LAYOUTS FOR SECTORS 1 AND 2

 

                 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF

 

                 FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S, AND

 

                 W-2G

 

     SECTION 8. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM 1099-A

 

     SECTION 9. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM 1099-B

 

     SECTION 10. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM 1099-C

 

     SECTION 11. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM 1099-OID

 

     SECTION 12. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM 1099-S

 

     SECTION 13. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM W-2G

 

     SECTION 14. END OF PAYER "C" RECORD--RECORD LAYOUT

 

     SECTION 15. STATE TOTALS "K" RECORD--RECORD LAYOUT

 

     SECTION 16. END OF TRANSMISSION "F" RECORD--RECORD LAYOUT

 

 

PART G. MISCELLANEOUS INFORMATION

     SECTION 1. RECORD FORMAT USED TO REQUEST AN EXTENSION OF TIME,

 

                 MAGNETICALLY OR ELECTRONICALLY

 

 

PART A. GENERAL

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W-2G electronically or on magnetic media which includes 1/2-inch magnetic tape; IBM 3480/3490 AS400, compatible tape cartridges; or 5 1/4-, 3 1/2-, and 8-inch diskettes, with IRS. This revenue procedure must be used for the preparation of Tax Year 1994 information returns and information returns for years prior to 1994 that are required to be filed. This revenue procedure must be used to prepare current and prior information returns filed between January 1, 1995, and December 31, 1995. Specifications for filing the following forms are contained in this revenue procedure.

(a) Form 1098, Mortgage Interest Statement.

(b) Form 1099-A, Acquisition or Abandonment of Secured Property.

(c) Form 1099-B, Proceeds From Broker and Barter Exchange Transactions.

(d) Form 1099-C, Cancellation of Debt.

(e) Form 1099-DIV, Dividends and Distributions.

(f) Form 1099-G, Certain Government Payments.

(g) Form 1099-INT, Interest Income.

(h) Form 1099-MISC, Miscellaneous Income.

(i) Form 1099-OID, Original Issue Discount.

(j) Form 1099-PATR, Taxable Distributions Received From Cooperatives.

(k) Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

(l) Form 1099-S, Proceeds From Real Estate Transactions.

(m) Form 5498, Individual Retirement Arrangement Information.

(n) Form W-2G, Certain Gambling Winnings.

.02 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, P. O. Box 1359, Martinsburg, WV 25401 ATTN: IRB, Information Support Section.

.03 It is unlawful to intentionally transmit a computer virus to the Internal Revenue Service. Violators may be subject to a fine and/or imprisonment.

.04 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.

.05 The Internal Revenue Service, Martinsburg Computing Center (IRS/MCC) has the responsibility for processing Forms 1098, 1099, 5498, and W-2G filed magnetically or electronically. 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) and extension of time requests (Form 8809) for filing Forms W-2.

.06 In most cases, 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.

.07 This revenue procedure also provides the requirements and specifications

for magnetic media or electronic filing under the Combined Federal/State Filing Program.

.08 The following revenue procedures and publications provide more detailed filing procedures for certain other information returns.

(a) 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" provides specific instructions on completing and submitting information returns to IRS. These instructions are included near the end of this publication. They may also be obtained by contacting your local IRS office or by calling 1-800-TAX-FORM (1-800- 829-3676).

(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, Specifications for Paper Document Reporting and Paper Substitutes for Forms 1096, 1098, 1099 Series, 5498, and W-2G (Rev. Proc. 94-35, 1994-19 I.R.B. 12.).

(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 Magnetic Diskettes.

(f) Publication 1245, Specifications for Filing Form W-4, Employee's Withholding Allowance Certificate, on Magnetic Tape, and 5 1/4- or 3 1/2-Inch Magnetic Diskette.

.09 This revenue procedure supersedes Rev. Proc. 93-31 published as Publication 1220, (Rev. 7-93), Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically.

.10 Refer to Part A, Sec. 17, for definitions of terms used in this publication.

SEC. 2. NATURE OF CHANGES--CURRENT YEAR (TAX YEAR 1994)

.01 PROGRAMMING CHANGES

a. Payer/Transmitter "A" Record:

(1) All forms, field positions 2-3 (pos. 3-4 for 8-inch diskette) "Payment Year" must be incremented by one (from 93 to 94) unless reporting prior year data.

(2) Form 1099-C for cancellation of debt, has been added to field position 22 (pos. 23 for 8-inch diskette) Type of Return field. The Type of Return Code will be "5".

(3) Form 1099-C, for Payment Amount Codes, field positions 23-31 (pos. 24-32 for 8-inch diskette) Amount Code 2 has been added for amount of debt canceled, Amount Code 3 has been added for interest included in Amount Code 2 and Amount Code 4 has been added for penalties, fines, or administrative costs included in Amount Code 2.

(4) Form 1099-G, for Payment Amount Codes, field position 23-31 (pos. 24-32 for 8-inch diskette) Amount Code 5, discharge of indebtedness, has been deleted. This information will be reported under the new 1099-C Form.

b. Payee "B" Record changes:

(1) All forms, field positions 2-3 (pos. 3-4 for 8-inch diskette) "Payment Year" must be incremented by one (from 93 to 94) unless reporting prior year data.

(2) Form 1099-C, field position 371-376, "Date Canceled" has been added to be used for the date the debt was canceled. (See Parts E and F for the appropriate diskette field positions.)

(3) Form 1099-C, field position 377 has been added for a "1" (one) indicator to be used for the amount of debt canceled if the debt was discharged in bankruptcy. (See Parts E and F for the appropriate diskette field positions.)

(4) Form 1099-C, positions 378-416, "Debt Description", was added for a description of the origin of the debt. (See Parts E and F for the appropriate diskette field positions.)

c. End of Payer "C" Record--No changes.

d. State Totals "K" Record--No changes.

e. End of Transmission "F" Record--No changes.

f. Record format for extension of time, magnetically or electronically (See Part G, Sec. 1):

(1) The record byte size has been changed from a 226-byte record to a 200-byte record.

(2) The Document Indicator Code has been added to the record format in field position 175 to replace the individual form types that had been in field positions 221 through 225.

(3) The Transmitter Contact, Transmitter Phone Number and Transmitter Extension fields have been deleted from the record format.

(4) The Foreign Entity Indicator has been moved from field position 226 to field position 176,

(5) Field positions 199 and 200 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.

.02 EDITORIAL CHANGES--"GENERAL"

There have been numerous editorial changes. IRS recommends that transmitters read this publication in its entirety to ensure proper reporting.

a. Information was added to Part A, Sec. 8.04, and Part A, Sec. 16.02 to advise payers that a hardcopy file print is not acceptable as a test for approval for the Combined Federal/State Filing Program.

b. Information was added to Part A, Sec. 8.06, Sec. 9.01, Part C, Sec. 5.01 and 5.05, Part D, Sec. 5.01 and Sec. 5.05 to advise filers who transmit data electronically that a signed Form 4804 must be sent the same day as the electronic transmission.

c. Information was added to Part A, Sec. 9.15 to advise financial entities that copies of Form 1099-C, Cancellation of Debt, or the ability to reconstruct the data required on the form, must be retained for at least 4 years from the date of the return.

d. Information was added to Part A, Sec. 11.04 and Part G, Sec. 1.03 to advise filers that, for Tax Year 1995 (returns due to be filed in 1996), transmitters requesting extensions of time to file for more than 50 payers will be required to file the extension request magnetically or electronically.

e. Information was added to advise filers that a request for second extension of time to file will only be approved in cases of extreme hardship or catastrophic event. See Part A, Sec. 11.06.

f. The dollar criteria for the state of New Jersey has been changed from 1000 to 100 for all 1099 forms. See Table 2, Dollar Criteria For State Reporting, Part A, Sec. 16. Please note that filers are advised to contact the appropriate state tax agencies for complete information on state filing requirements.

g. The Penalty Section has been deleted from Part A. This information can be found on pages 2 and 3 of the 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" at the back of this publication.

h. A new tax form, Form 1099-C has been added for Tax Year 1994 for the reporting of Cancellation of Debt.

i. For Form 1099-G, in the Payer/Transmitter "A" Record, Payment Amount Code 5 for discharge of indebtedness has been deleted. The information previously reported in this field will be reported using the new Form 1099-C.

j. In the Payer/Transmitter "A" Record, the Foreign Corporation Indicator Field has been changed to Foreign Entity Indicator Field. The purpose of the field has not been changed.

k. In the Payer/Transmitter "A" Record, Form 1099-MISC, the title of Payment Amount Code 3 has been changed from "Prizes, awards, etc." to "Other Income".

l. Information has been added to the note in the Amount Codes for Form 1099-PATR to advise filers reporting Pass-Through Alternative Minimum Tax Adjustments, to enter the total alternative minimum tax (AMT) patronage dividend adjustment for the patron and/or the total AMT per-unit retain allocation adjustment in the Special Data Entries Field of the Payee "B" Record.

m. In the Payer/Transmitter "A Record", for Form 1099-R, the title of Amount Code 9 has been changed from "State or local income tax withheld" to "State tax withheld". Corresponding Note 5 has been expanded to advise filers that local income tax may be reported in the Special Data Entries Field in the Payee "B Record".

n. Instructions were added to Part C, Section 6.01 to advise payers that records may be blocked up to 4096 bytes with INTER RECORD SEPARATORS.

o. In the Payee "B Record", information was added to the note under Taxpayer Identification Number stating that the letter IRS/MCC has requested the payers send with their media will not prevent backup withholding notices (B Notices) or penalties for missing or incorrect TIN's.

p. A statement was added to Part E, Sec. 1.04 and Part F, Sec. 1.04 advising filers that diskettes will be returned if extraneous data follows the end of file "F" Record.

q. The Federal Dollar Criteria Table has been deleted from Part G. This information can be found on pages 31 and 32 of the 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" at the back of this publication.

r. Instructions were added to Part G, Sec. 1.02 to advise filers submitting an electronic request for an extension of time to file to send a signed Form 8809 the same day as the transmission submission.

s. Filers submitting a magnetically or electronically filed request for an extension of time to file are encouraged to read Part G, Sec. 1 in its entirety for additions or changes in guidelines and format.

t. Instructions were added to Part G, Sec. 1.02 to advise filers requesting an extension of time to file, magnetically or electronically, not to submit a list of payer names and TINs with the Form 8809 accompanying the submission.

u. Instructions were added to Part G. Sec. 1.08 to advise transmitters not to submit tax year 1994 extension of time to file requests magnetically or electronically before January 1, 1995.

v. Instructions were added to Part G, Sec. 1.09 to advise filers to attach an external label to each piece of media submitted. Form 5064 or transmitter generated substitute may be used.

w. Information was added to Part G, Sec. 1.10 to advise filers that if the first request for an extension of time to file was submitted magnetically or electronically and additional time to file is needed, a new file must be submitted to request the additional time.

.03 EDITORIAL CHANGES--MAGNETIC MEDIA SPECIFICATIONS:

a. Filers are advised that tape cartridges created on an IBM AS400 are compatible with IRS/MCC computers. See Part B, Sec. 3.01 and Part G, Sec. 1.13(a).

b. Filers are advised that IRS/MCC can process either 18-track or 36-track parallel tape cartridges. Please indicate on the exterior label on the cartridge whether 18-track or 36-track parallel. See Part B, Sec. 3.01(b)(3) and Part G, Sec. 1.13(b)(3).

c. The wording of the specifications for the use of the Document Specific Codes, positions 4-5 (pos. 5-6 for 8-inch diskettes) of the Payee "B" Record, for the Form 1099-R has been changed for greater clarity. The actual reporting instructions have not changed.

d. A Valid Distribution Codes for Form 1099-R Table has been added to the Payee "B" Record to give filers guidelines for the general acceptable combinations and field positions of alpha/numeric distribution codes.

e. The following specification changes have been made to the record format used to request an extension of time, magnetically or electronically:

(1) Data submitted on tape cartridges, may be compressed using EDRC (Memorex) or IDRC (IBM) compression. See Part G, Sec. 1.13(b)(5).

(2) The fixed block size for tape and tape cartridge has changed from 4250 to 4000 bytes. See Part G, Sec. 1.12(d) and 1.13(c).

(3) Information has been added to advise diskette filers about the use of the filename of IRSEOT. See Part G, Sec. 1.14(e).

(4) Diskette filers are advised that delimiter character commas (,) must not be used. See Part G, Sec. 1.14(f).

(5) Filers are advised that only one TCC may be present in a file. See Part G, Sec. 1.15.

SEC. 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:

 

 

     IRS-Martinsburg Computing Center

 

     P.O. Box 1359

 

     Martinsburg, WV 25401-1359

 

 

                   or

 

 

     If by truck or air freight:

 

     IRS-Martinsburg Computing Center

 

     Information Reporting Program

 

     Route 9 and Needy Road

 

     Martinsburg, WV 25401

 

 

.02 Inquiries may be made between 8:30 a.m. and 4:30 p.m. Eastern time. The telephone number is (304) 263-8700. The telephone number for electronic filing using the Information Reporting Program Bulletin Board System (IRP-BBS) is (304) 263-2749; the telephone number for bisynchronous electronic filing is (304) 267-0807 for 4800 bps, and (304) 267-9572 for 9600 bps. (These are not toll-free telephone numbers.)

.03 The 1994 "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.

.04 The telephone number for the Telecommunication Device for the Deaf (TDD) is (304) 267-3367. (Not a toll-free telephone number.)

.05 The telephone number for the IRS/MCC fax machine is (304) 264-5196. (Not toll-free.)

.06 Requests for paper Forms 1099 and W-2 and publications not related to magnetic media/electronic filing should be requested by calling the "Forms Only Number" listed in your local telephone directory or 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 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. Penalty notices contain 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.

.09 A taxpayer or authorized representative may request a copy of a tax return or a Form W-2 filed with a return by submitting Form 4506, Request for Copy of Tax Form to IRS. This form may be obtained from a local IRS office or 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-2, W-2G, W-3, and Questionable W-4). The IRS/MCC Call Site also handles 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 with any questions on how to report information returns.

The Call Site, which was phased in over a two year period, is now accepting 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 open throughout the year to handle payers', transmitters' and employers' questions. 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.

SEC. 4. FILING REQUIREMENTS

.01 Under section 6011(e)(2)(A) of the Internal Revenue Code, any person, including corporations, partnerships, individuals, estates, and trusts, 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 payers may not be required to file magnetically/electronically, IRS encourages them to do so.

.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), or Employer Identification Number (EIN). 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 instead. Payers who submit their information returns electronically are considered to have satisfied the magnetic media filing requirements.

.04 The following requirements apply separately to both originals and corrections filed magnetically/electronically:

      1098          250 or more of any of these forms require

 

      1099-A        magnetic media or electronic filing with IRS.

 

      1099-B        These are stand alone documents and are not to be

 

      1099-C        aggregated for purposes of determining the 250

 

      1099-DIV      threshold. For example, if you must file 100 Forms

 

      1099-G        1099-B and 300 Forms 1099-INT, Forms 1099-B need

 

      1099-INT      not be filed magnetically or electronically since

 

      1099-MISC     they do not meet the threshold of 250. However,

 

      1099-OID      Forms 1099-INT must be filed magnetically or

 

      1099-PATR     electronically since they meet the threshold of

 

      1099-R        250.

 

      1099-S

 

      5498

 

      W-2G

 

 

.05 The above requirements do not apply if the payer establishes undue hardship (see Part A, Sec. 5).

SEC. 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 may be subject to a failure to file penalty of $50 per return.

.02 If payers are required to file original or corrected returns on magnetic media, but such filing would create an undue 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 If a payer submits an original return on magnetic media, corrections may be submitted on paper if the corrected returns are less than 250. 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. However, new brokers and new barter exchanges may request an undue hardship waiver by the end of the second month following the month in which they became a broker or barter exchange.

.10 File Form 8508 for Forms W-2 with IRS/MCC, not SSA.

.11 Waivers are evaluated on a case-by-case basis and are approved or denied based on regulation criteria set forth 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. A copy of the approved wavier should not be sent 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 Contributions-- If a payer is required to file a Form 5498 magnetically/electronically, the payer may request an automatic waiver from filing Desert Storm Form 5498 magnetically/electronically.

SEC. 6. VENDOR LIST

.01 IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. This list 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 provided as a courtesy and in no way implies IRS/MCC approval or endorsement.

.02 A payer may contact IRS/MCC via telephone or letter (See Part A, Sec. 3) to acquire the vendor list. This information is also available from the Information Reporting Program Bulletin Board System (refer to Part D). Vendor names will not be provided over the telephone.

.03 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 be submitted by August 15 and must include:

(a) Company name

(b) Address (include city, state, and ZIP code)

(c) Telephone number (include area code)

(d) Contact person

(e) Type 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-, 3 1/2-, and/or 8-inch diskettes; electronic filing)

.04 The vendor list is updated annually. Therefore, any changes to information already on the vendor list must also be received by IRS/MCC no later than August 15 to be included on the most current vendor list.

SEC. 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 is to be filed, do not submit a new Form 4419. A separate Form 4419 is required for filing Form 1042-S or Form 8027. If filers wish to report both electronically and magnetically, only one Form 4419 needs to be submitted.

.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. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).

.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 Payer "A" 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.

A magnetic media reporting package containing the current revenue procedure, forms, labels, and instructions will be sent to the attention of the contact person indicated on Form 4419. This package will be sent annually.

If any of the information on the Form 4419 changes, please notify IRS/MCC in writing so that the IRS/MCC database can be updated. The transmitter should include the TCC in all correspondence.

.04 Form 4419 can be submitted at any time during the year; however, it should be submitted to IRS/MCC at least 30 days before the due date of the return(s). 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.

.05 IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all payers. Include a list of all payers and TINs with the Form 4419. Transmitters are encouraged to provide an updated list to IRS/MCC.

.06 If a payer's files are prepared by a service bureau, they 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 "A" Record. Payers should contact their service bureaus for further information.

.07 Once a transmitter is approved to file magnetically or electronically, it is not necessary to reapply each year unless:

(a) Magnetic or electronic filing is discontinued for a year; the payer's TCC may have been reassigned by IRS/MCC.

(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 their own files. The payer must request a TCC by filing Form 4419.

.08 Submit one Form 4419 regardless of how many types of media or methods used to file the return. A payer may have more than one TCC, but must code only one TCC per medium. Notify IRS/MCC of any TCCs that will not be used so these numbers may be reassigned.

.09 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.

.10 Approval to file does not imply endorsement by IRS/MCC of the computer software or of the quality of tax preparation services provided.

SEC. 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 should consist of a sample of each type of record:

(a) Payer "A" record (must not be fictitious data)

(b) Multiple Payee "B" Records (at least 11 "B" Records per each "A" Record)

(c) End of Payer "C" Record

(d) State Totals "K" Record, if participating in the Combined Federal/State Filing Program

(e) End of Transmission "F" Record

It is not necessary to send a voluminous file; filers may choose to submit a single file or multiple files for their test.

.03 Use the Test Indicator in the "A" Record to show that 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 that their software reflects any programming changes.

If unable to submit a magnetic or electronic test file, a hardcopy printout that shows a sample of each record type (A, B, C and F) may be submitted. The hardcopy print test is not acceptable for Combined Federal/State Filing approval.

.05 Tests should be sent to IRS/MCC during these periods:

     Magnetic Media 11/01--12/31

 

     Electronic 11/01--12/31

 

     Hardcopy 11/01--12/31

 

 

The test file must be received at MCC by December 31 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, 5 1/4", 3 1/2" or 8" diskette, the transmitter must include the signed Form 4804 in the same package with the corresponding magnetic media. Mark the "TEST" check box in block 1 on the form. Also, check "TEST" on the external media label, Form 5064.

If submitting a hardcopy 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 acknowledgement 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 31.

.08 Successfully processed media will not be returned to filers.

SEC. 9. FILING OF INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY AND RETENTION REQUIREMENTS

.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, Form 4802 (Continuation) or 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 submission. 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 four types of returns and/or more than four payers. Form 4802 is not a stand-alone form; it can only accompany Form 4804.

.02 IRS/MCC encourages 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.

.03 A transmitter may report for any combination of payers and/or documents in a submission. 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 on one tape or diskette as long as each filing entity or type of return is separated by an "A" Record. Only one "F" record may be used at the end of a transmission. Multiple tapes or diskettes can be sent in one package. Filers should 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 should 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 reported. 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. 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)."

Note: Failure to sign the affidavit on Form 4804 may delay processing or could result in the files being returned unprocessed.

.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 An external label, Form 5064, must be affixed to each tape and diskette. 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 diskette being returned to the filer. For instructions on how to complete Form 5064, refer to Notice 210, Preparation Instructions for Media Label, Form 5064. Notice 210 may be obtained by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).

.11 On the outside of the shipping container, include a Form 4801 or a substitute for the form, which reads "DELIVER UNOPENED TO TAPE LIBRARY--MAGNETIC MEDIA REPORTING--BOX _____ of _____." 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) Form 5064, Media Label affixed to the magnetic media;

(d) and Form 4801, 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 In general, 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 of the return. Whenever backup withholding is imposed, a 4-year retention is required.

SEC. 10. DUE DATES

.01 The 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 Form 5498 which is used to report amounts contributed during, or after (but not later than April 15) of the calendar year.

.02 Information returns filed magnetically/electronically for Forms 1098, 1099, and W-2G must be submitted to IRS/MCC postmarked no later than February 28.

.03 The due date for furnishing statements to recipients is January 31. Form 5498 statements are due to the participants by January 31 for the fair market value of the account and by May 31 for contributions made to IRAs for the prior calendar year.

.04 Form 5498 filed magnetically/electronically must be submitted to IRS/MCC postmarked no later than May 31. Form 5498 is filed for contributions to be applied to 1994 that are made January 1, 1994, through April 17, 1995, and/or to report the fair market value of the IRA/SEP.

.05 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 day that is not a Saturday, Sunday, or legal holiday.

.06 Use this revenue procedure to prepare information returns filed magnetically or electronically beginning January 1, 1995, and received by IRS/MCC no later than December 31, 1995.

SEC. 11. EXTENSIONS OF TIME

.01 A transmitter may request an extension of time to file by submitting Form 8809, Request for Extension of Time To File Information Returns, to IRS/MCC. This form may be used to request an extension of time to file information returns submitted on paper, magnetically or electronically.

.02 A transmitter may request an extension of time to file for multiple payers 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.

.03 Transmitters requesting an extension of time to file for 10 or more payers are encouraged to file the request on tape, tape cartridge, 5 1/4- or 3 1/2-inch diskette, or electronically through IRP-BBS. The record format is in Part G, Sec. 3, of this revenue procedure. Transmitters who submit requests for multiple payers will receive one approval letter with an attached list of payers covered under that approval.

.04 For tax year 1995 (returns due to be filed in 1996), transmitters requesting an extension of time to filed for more than 50 payers will be required to file the extension request magnetically or electronically. (See Part G for the format.)

.05 Filers may request an extension of time to file for 30 days as soon as they are aware that an extension is necessary but no 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.

.06 If an additional extension of time is needed, a letter requesting an additional 30 days along with a copy of the first approval letter received from the IRS may be submitted before the end of the initial extension with a postmark reflecting the date mailed. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event.

.07 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 February 28. Complete more than one Form 8809 to avoid this problem.

.08 Request an extension for only one tax year.

.09 The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other document.

.10 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Please read and follow the instructions on the back of the Form 8809 carefully.

.11 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).

.12 Request an extension of time to furnish the statements to recipients by submitting a letter to IRS/MCC or to the payer's local District Director containing the following information:

(a) Payer Name

(b) TIN

(c) Address

(d) Type of Return

(e) Reason for Delay

(f) Signature of Payer or Person Duly Authorized

Requests for an extension of time to furnish the statements to recipients are not automatically approved; however, if approved, generally an extension will allow a maximum of 15 days to furnish the statements to the recipients. The request must be postmarked by the date on which the statements are due to be furnished to the recipients.

SEC. 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. If media is returned, it is because a replacement is needed. Open all packages immediately.

.03 Files must be corrected and returned to IRS/MCC within 45 days from the date of the letter included with the files to avoid a failure-to-file penalty. When possible, IRS/MCC may only return the portion of the file that needs replacement.

.04 A sample "B" record 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 successfully 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.

.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 tracing 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, please respond promptly. IRS/MCC may have information that the filer needs to correct their file.

.08 IRS/MCC contact 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 (B-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.

SEC. 13. CORRECTED RETURNS

.01 The 250 information returns magnetic media filing requirement applies separately to both original and corrected returns.

Example: If a payer has 100 Forms 1099-A to be corrected, they can be filed on paper since they fall under the 250 threshold. However, if the payer has 300 Forms 1099-B to be corrected, they must be filed magnetically/electronically since they meet the 250 threshold. If for some reason a payer cannot file the 300 corrections on magnetic media, to avoid penalties, a request for a waiver must be submitted before filing on paper. No waiver is required for corrections that fall under the required threshold.

.02 Corrections should be filed as soon as possible, but no later than August 1 of the year the return is due, in order to avoid the maximum $50 penalty. However, if payers discover errors after August 1, they may still be required to file corrections so that 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. If the entire file is in error, contact IRS/MCC immediately. 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.

NOTE: IRS/MCC strongly encourages filers to read this entire section before attempting to make any corrections.

.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 Form 5064 by marking the correction box provided.

Note: If filers discover that certain information returns were omitted on their original file, they should not submit these documents as corrections. They should submit them 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 Box 2 of the Form 4804 and on Form 5064.

.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 2-3 or positions 3-4 for 8-inch diskette filing. If filing electronically, a separate transmission must be made for each tax year.

.07 In general, filers should submit corrections for returns to be filed within the last three calendar years (four 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, 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                   How To File the Corrected

 

 Original Return                     Return

 

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

 

 TWO SEPARATE TRANSACTIONS ARE       TRANSACTION 1: Identify incorrect

 

 REQUIRED TO MAKE THE                returns

 

 FOLLOWING CORRECTIONS PROPERLY.

 

 FOLLOW DIRECTIONS FOR BOTH

 

 TRANSACTIONS 1 AND 2.

 

 (See Note 1)

 

 

 1. Original return was filed with   A. Prepare a new Form 4804/4802

 

    one or more of the following        that includes information

 

    errors:                             related to this file.

 

    (a) No Payee TIN (SSN or EIN)    B. Mark "Correction" in Block 1

 

    (b) Incorrect Payee TIN             of Form 4804.

 

    (c) Incorrect Payee Name         C. Prepare a new file. Make a

 

    (d) Wrong type of return            separate "A" Record for each

 

        indicator                       type of return being

 

                                        reported. The information in

 

                                        the "A" Record will be

 

                                        exactly the same as it

 

                                        was in the original

 

                                        submission.

 

                                     D. The Payee "B" Record must

 

                                        contain exactly the same

 

                                        information as submitted

 

                                        previously exceptinsert

 

                                        a "G" in field position 7

 

                                        (position 8 for 8-inch

 

                                        diskettes) of the "B" Record,

 

                                        and for all

 

                                        payment amounts, enter "0"

 

                                        (zero).

 

                                     E. Corrected returns submitted to

 

                                        IRS/MCC using a "G" coded "B"

 

                                        Record may be on the same tape

 

                                        or diskette as those returns

 

                                        submitted without the "G"

 

                                        code; however, separate "A"

 

                                        Records are required.

 

                                     F. Prepare a "C" Record.

 

 

                                     TRANSACTION 2: Report the

 

                                     correct information

 

 

                                     A. Prepare a new file with the

 

                                        correct information in

 

                                        all records.

 

                                     B. Make a separate "A" Record for

 

                                        each type of return and each

 

                                        payer being reported.

 

                                     C. The "B" record must show the

 

                                        correct information as well as

 

                                        a "C" in field position 7

 

                                        (position 8 for 8-inch

 

                                        diskettes).

 

                                     D. Corrected returns submitted to

 

                                        IRS/MCC using a "C" coded "B"

 

                                        Record may be on the same tape

 

                                        or diskette as those returns

 

                                        submitted without the "C"

 

                                        code; however, separate "A"

 

                                        Records are required.

 

                                     E. Prepare a "C" Record.

 

                                     F. Check the "Correction Box" on

 

                                        the Form 5064.

 

 

NOTE 1: Payers who can show that they have reasonable cause (defined in the regulations under sections 6721-6724 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 $15 or $30 (See 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" for information on the tiered penalty). Corrections filed after August 1 will not reduce the penalty but will allow IRS to update the payee's records. The regulations for IRC sections 6721-6724 are available in Publication 1586, Reasonable Cause Regulations and Requirements as They Apply to Missing and Incorrect TINs. The publication may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).

 Error Made on the                   How To File the Corrected

 

 Original Return                     Return

 

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

 

 ONE TRANSACTION IS REQUIRED TO

 

 MAKE THE FOLLOWING CORRECTIONS

 

 PROPERLY. (See Note 2)

 

 

 2. Original return was filed with   A. Prepare a new Form 4804/4802

 

    one or more of the following        that includes information

 

    errors:                             relating to this new file.

 

    (a) Incorrect Payment Amount     B. Mark "Correction" in Block 1

 

        Codes in the "A" Record.        of Form 4804.

 

    (b) Incorrect Payment amounts    C. Prepare a new file. Make

 

        in the "B" Record.              separate "A" Records for

 

    (c) Incorrect Code in the           each type of return

 

        Document Specific/              being reported. Information in

 

        Distribution Code Field in      the "A" Record may be the same

 

        the "B" Record.                 as it was in the original

 

    (d) Incorrect Payee                 submission.

 

        Address                      D. The "B" Record must show the

 

    (e) Direct Sales Indicator          correct information as well as

 

                                        a "G" in field position 7

 

                                        (position 8 for 8-inch

 

                                        diskettes).

 

                                     E. Corrected returns submitted to

 

                                        IRS/MCC using a "G" coded "B"

 

                                        Record may be on the same tape

 

                                        or diskette as those returns

 

                                        submitted without the "G"

 

                                        code; however, separate "A"

 

                                        Records are required.

 

                                     F. Prepare a "C" Record.

 

                                     G. Check the "Correction Box" on

 

                                        the Form 5064.

 

 

NOTE 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, then two transactions will be required.

If a filer is reporting "G" coded, "C" coded, and/or "Non-coded" (original) returns on the same media, they must be reported under separate "A" records.

SEC. 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 social security and employer identification numbers 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. For other entities, the payee TIN is the payee's Employer Identification Number. 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.

.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).

.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

 For this type of      In the Taxpayer          In the First Payee

 

 account--             Identification Number    Name Line of the Payee

 

                       field of the Payee       "B" Record, enter the

 

                       "B" Record, enter the    name of--

 

                       SSN of--

 

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

 

 1. Individual         The individual           The individual

 

 

 2. Joint account      The actual owner of the  The individual whose

 

 (Two or more indivi-  account or, if combined  SSN is entered

 

 duals, including      funds the first indivi-

 

 husband and wife)     dual on the account.

 

 

 3. Custodian account  The minor                The minor

 

 of a minor (Uniform

 

 Gift, or Transfers,

 

 to Minors Act)

 

 

 4. The usual revoca-  The grantor-trustee      The grantor-trustee

 

 ble 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. A sole proprie-    The owner                The owner, not the

 

 torship               (An SSN or EIN)          business name (the

 

                                                filer may enter the

 

                                                business name on the

 

                                                second name line).

 

 

CHART 2. Guidelines for Employer Identification Numbers

 For this type of      In the Taxpayer          In the First Payee

 

 account--             Identification Number    Name Line of the Payee

 

                       field of the Payee       "B" Record, enter the

 

                       "B" Record, enter the    name of--

 

                       EIN of--

 

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

 

 1. A valid trust,     Legal entity 1         The legal trust,

 

 estate, or pension                             estate, or pension

 

 trust                                          trust

 

 

 For this type of      In the Taxpayer          In the First Payee

 

 account--             Identification Number    Name Line of the Payee

 

                       field of the Payee       "B" Record, enter the

 

                       "B" Record, enter the    name of--

 

                       EIN of--

 

 

 2. Corporate          The corporation          The corporation

 

 

 3. Association,       The organization         The organization

 

 club, religious,

 

 charitable, educa-

 

 tional or other tax-

 

 exempt organization

 

 

 4. Partnership        The partnership          The partnership

 

 account held in the

 

 name of the business

 

 

 5. A broker or        The broker or            The broker or

 

 registered nominee/   nominee/middleman        nominee/middleman

 

 middleman

 

 

 6. Account with the   The public entity        The public entity

 

 Department of Agri-

 

 culture 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               The business             The owner, not the

 

 Proprietorship        (EIN or SSN)             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.

SEC. 15. EFFECT ON PAPER RETURNS

.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 1994 "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, "Specifications for Paper Document Reporting and Paper Substitutes for Forms 1096, 1098, 1099 Series, 5498, and W-2G."

SEC. 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. Forms 1098, 1099-A, 1099-B, 1099-C, 1099-S, and W-2G cannot be filed under this program.

.02 To request approval to participate, a magnetic media or electronic test file coded for this program must be submitted to IRS/MCC November 1 through December 31. Hardcopy 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. 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 post-marked on or before December 31.

.06 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.

.07 Only code the records for participating states and for those payers who have submitted Form 6847.

.08 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.

.09 All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states.

.10 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.

.11 To simplify filing, some of the participating states have provided their information return reporting requirements (see Table 2). It is the payer's responsibility to contact the participating states to verify the criteria provided in this table.

.12 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 total "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 is 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

 

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

 

 Alabama                             01

 

 Arizona                             04

 

 Arkansas                            05

 

 California                          06

 

 Delaware                            10

 

 District of Columbia                11

 

 Georgia                             13

 

 Hawaii                              15

 

 Idaho                               16

 

 Indiana                             18

 

 Iowa                                19

 

 Kansas                              20

 

 Maine                               23

 

 Massachusetts                       25

 

 Minnesota                           27

 

 Mississippi                         28

 

 Missouri                            29

 

 Montana                             30

 

 New Jersey                          34

 

 New Mexico                          35

 

 North Carolina                      37

 

 North Dakota                        38

 

 Oregon                              41

 

 South Carolina                      45

 

 Tennessee                           47

 

 Wisconsin                           55

 

 

TABLE 2. DOLLAR CRITERIA FOR STATE REPORTING

               1099-  1099-  1099-  1099-    1099-  1099-  1099-

 

 State          DIV     G    INT    MISC      OID    PATR    R    5498

 

 

 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            10     10     10    600       10     10    600   /a/

 

 Iowa            100   1000   1000   1000     1000   1000   1000    NR

 

 Minnesota        10     10     10    600       10     10    600   /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      100    100    100    100      100    100    100    NR

 

 North

 

  Carolina       100    100    100    600      100    100    100   /a/

 

 Tennessee        25     NR     25     NR       NR     NR     NR    NR

 

 Wisconsin        NR     NR     NR    600       NR     NR    600    NR

 

 _____________________________________________________________________

 

 

Note: This list is for information purposes only. For complete information on state filing requirements, contact the appropriate state tax agencies. Filing requirements for any state in TABLE 1 not shown in TABLE 2 are the same as the federal requirement.

NR -- No filing requirement.

/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 their state agency.

SEC. 17. DEFINITION OF TERMS

Element Description

 Asynchronous       This type of data transmission is most often used

 

 Protocols          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.

 

 

 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      For purposes of this publication, these are

 

 Protocols          electronic transmissions made using IBM 3780

 

                    protocols. These transmissions must be in EBCDIC

 

                    character code and use the Bell 208B (4800bps) or

 

                    AT&T 2296A (9600bps) modems. Standard IBM 3780

 

                    space compression is acceptable.

 

 

 Correction         A correction is an information return submitted by

 

                    the payer to correct an information return that

 

                    was successfully processed by IRS/MCC, but

 

                    contained erroneous information.

 

 

 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           A nine-digit number assigned by IRS for federal

 

 Identification     tax reporting purposes.

 

 Number (EIN)

 

 

 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 Part

 

                    C and D of this publication for specific

 

                    information on electronic filing.

 

 

 File               For purposes of this revenue procedure, a file

 

                    consists of all records submitted by a payer or

 

                    transmitter, either magnetically or

 

                    electronically.

 

 

 Filer              May be payer and/or transmitter.

 

 

 Golden Parachute   A payment made by a corporation to a certain

 

 Payment            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.

 

 

 Inconsequential    An error or omission of data that does not prevent

 

 Error              or hinder the IRS/MCC from processing the return,

 

                    from correlating the information required to be

 

                    shown on the information return with information

 

                    shown on the payee's tax return, or from otherwise

 

                    putting the return to its intended use. For

 

                    example, if the payee address is 4821 Grant

 

                    Boulevard and the word "boulevard" is misspelled,

 

                    a correction does not have to be made.

 

 

 Incorrect          A TIN may be incorrect for several Number reasons:

 

 Taxpayer

 

 Identification     (a) The payee gave a wrong number

 

 Number                 (e.g., the payee is listed as the

 

 (Incorrect TIN)        only owner of an account but provided someone

 

                        else's TIN).

 

                    (b) A processing error (e.g., the

 

                        number was typed incorrectly).

 

                    (c) The payee's status changed (e.g.,

 

                        the payee name change was not conveyed to the

 

                        IRS or SSA so that they could enter the change

 

                        in their records).

 

 

 Information        The vehicle for submitting required information

 

 Return             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 Form 1098, 1099-A, 1099-B, 1099-C, 1099-DIV,

 

                    1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR,

 

                    1099-R, 1099-S, 5498 or W-2G.

 

 Element            Description

 

 

 Magnetic Media     For this revenue procedure, the term "magnetic

 

                    media" refers to 1/2-inch magnetic tape; IBM

 

                    3480/3490 or AS400 compatible tape cartridge; or 5

 

                    1/4-, 3 1/2- or 8-inch diskette.

 

 

 Missing Taxpayer   The payee TIN on an information return is

 

 Identification     "missing" if:

 

 Number

 

 (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

 

                    Regulations section 1.72-16(b). (See Part B, Sec.

 

                    7 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 borrower (Form

 

                    1099-A), a debtor (Form 1099-C), participant (Form

 

                    5498) and a gambling winner (Form W-2G). For Form

 

                    1098, the payee is the individual paying the

 

                    interest. 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 broker, a person

 

                    reporting a real estate transaction, a barter

 

                    exchange, a creditor, a trustee or issuer of an

 

                    IRA or SEP, 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.

 

 

 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 an

 

 Number (SSN)       individual for wage and tax reporting purposes.

 

 

 Special Character  Any character that is not a numeral, an alpha, or

 

                    a blank.

 

 

 SSA                Social Security Administration.

 

 

 Statement to       For purposes of this revenue procedure, the copy

 

 Recipient          of Form 1099, 1098, 5498, or W-2G that is required

 

                    to be sent by the payer to the recipient to

 

                    provide information to be reported on the

 

                    recipient's tax return. When reporting Form 1098,

 

                    the payer is the receiver of the mortgage interest

 

                    and the recipient is the person making the

 

                    interest payment. When reporting Form 1099-S, the

 

                    payer is the entity reporting the transaction and

 

                    the recipient is the seller or other transferor.

 

 

 Taxpayer           May be either an Employer Identification Number

 

 Identification     (EIN) or Social Security Number (SSN).

 

 Number (TIN)

 

 

 Transfer Agent     The transfer agent, or paying agent, is the entity

 

 (Paying Agent)     who has been contracted or authorized by the payer

 

                    to perform the services of paying and reporting

 

                    backup withholding (Form 945). The payer may be

 

                    required to submit to IRS/MCC a Form 2678,

 

                    Employer Appointment of Agent Under section 3504

 

                    of the Internal Revenue Code, which notifies

 

                    IRS/MCC of the transfer agent relationship.

 

 

 Transmitter        Person or organization submitting file(s)

 

                    magnetically/electronically. May be payer or agent

 

                    of payer.

 

 

 Transmitter        A five character alpha/numeric number assigned by

 

 Control Code       IRS/MCC to the transmitter prior to actual filing

 

 (TCC)              magnetically or electronically. This number is

 

                    inserted in the "A" 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.

 

 

SEC. 18. STATE ABBREVIATIONS

.01 The following state abbreviations are to be used when developing the state code portion of address fields. This table provides state abbreviations only, and does not represent those states participating in the Combined Federal/State Filing Program.

 State                                   Code

 

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

 

 Alabama                                   AL

 

 Alaska                                    AK

 

 American Samoa                            AS

 

 Arizona                                   AZ

 

 Arkansas                                  AR

 

 California                                CA

 

 Colorado                                  CO

 

 Connecticut                               CT

 

 Delaware                                  DE

 

 District of Columbia                      DC

 

 Federated States of Micronesia            FM

 

 Florida                                   FL

 

 Georgia                                   GA

 

 Guam                                      GU

 

 Hawaii                                    HI

 

 Idaho                                     ID

 

 Illinois                                  IL

 

 Indiana                                   IN

 

 Iowa                                      IA

 

 Kansas                                    KS

 

 Kentucky                                  KY

 

 Louisiana                                 LA

 

 Maine                                     ME

 

 Marshall Islands                          MH

 

 Maryland                                  MD

 

 Massachusetts                             MA

 

 Michigan                                  MI

 

 Minnesota                                 MN

 

 Mississippi                               MS

 

 Missouri                                  MO

 

 Montana                                   MT

 

 Nebraska                                  NE

 

 Nevada                                    NV

 

 New Hampshire                             NH

 

 New Jersey                                NJ

 

 New Mexico                                NM

 

 New York                                  NY

 

 North Carolina                            NC

 

 North Dakota                              ND

 

 Northern Mariana Islands                  MP

 

 Ohio                                      OH

 

 Oklahoma                                  OK

 

 Oregon                                    OR

 

 Palau                                     PW

 

 Pennsylvania                              PA

 

 Puerto Rico                               PR

 

 Rhode Island                              RI

 

 South Carolina                            SC

 

 South Dakota                              SD

 

 Tennessee                                 TN

 

 Texas                                     TX

 

 Utah                                      UT

 

 Vermont                                   VT

 

 Virginia                                  VA

 

 Virgin Islands                            VI

 

 Washington                                WA

 

 West Virginia                             WV

 

 Wisconsin                                 WI

 

 Wyoming                                   WY

 

 

.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, Guam, Northern Mariana Islands, Puerto Rico, the Virgin Islands and others.

.03 For foreign country addresses, filers may use a 40 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 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.

SEC. 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 pre-programmed software packages. If a filer purchased a software package for a previous tax year, it may no longer be valid for reporting current tax year information returns. Following are some of the most frequently encountered problems with magnetic/electronic files submitted to IRS/MCC.

1. 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.

2. 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 Code Fields 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   247bbbbbb--(b = blank)

 

                            (Pos. 23-31)

 

                            (Pos. 24-32 for 8-inch diskettes)

 

 

               "B" RECORD   0000867599--(Payment Amount 2)

 

                            (Pos. 61-70)

 

                            (Pos. 62-71 for 8-inch diskettes)

 

 

                            0000709097--(Payment Amount 4)

 

                            (Pos. 81-90)

 

                            (Pos. 82-91 for 8-inch diskettes)

 

 

                            0000044985--(Payment Amount 7)

 

                            (Pos. 111-120)

 

                            (Pos. 112-121 for 8-inch diskettes)

 

 

3. 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.

4. Incorrect TIN in Payer "A" Record.

The Payer's TIN reported in positions 7-15 (positions 8-16 for 8-inch diskettes) of the "A" Record must be correct in order for IRS/MCC to process the media. The TIN provided in the "A" Record should correspond with the name provided in the first payer name line.

5. Bad Format.

IRS/MCC receives data in prior year format as well as 5 1/4- and 3 1/2-inch diskettes formatted using 8-inch diskette specifications and vice versa. Be sure to use the proper section of the current revenue procedure for formatting data.

6. Incorrect tax year in the Payer "A" and Payee "B" records.

The tax year in both the payee and payer record should reflect the year of the information that is being reported. Filers need to check their files to ensure that this information is correct.

7. Form W-2 information submitted on same media as Form 1099 information.

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. The local SSA office should be contacted for information concerning filing Forms W-2 on magnetic media.

8. Excessive withholding credits.

Generally, for most information returns, other than Forms 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.

9. 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 erroneous notices. 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 (B Notices) or penalties for missing or incorrect TINs.

10. 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 1099-R in the Payee B Record layout.

11. Incorrect Record Totals Listed on Form 4804

The Combined Total Payee Records listed on the Form 4804 (Box 9) are used in the verification process of information returns. The figure in this box 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.

12. Invalid Use of IRA/SEP Indicator

The IRA/SEP Indicator for Forms 1099-R should be used only for the reporting of a distribution from an IRA/SEP. The total amount distributed from an IRA or SEP should be reported in Payment Amount Field 2 (IRA/SEP Distribution).

PART B. MAGNETIC MEDIA SPECIFICATIONS

SEC. 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 file.

.02 A provision is made in the "B" Records for Special Data Entries. These entries are optional. If the field is not utilized, enter blanks to maintain a fixed record length of 420 positions. The field is intended to serve one or both of these purposes:

(a) Contain information required by state or local governments. Filers who wish to use this option for satisfying state or local reporting requirements should contact the state or local department of revenue for filing instructions. (Also refer to Part A, Sec. 16.)

(b) Contain information for the filer's own personal use and used at the discretion of the filer to include information related to each individual return. IRS/MCC will not use the information supplied in this field. The length of this field will vary depending on the type of return.

.03 Transmitters should be consistent in the use of recording codes and density on files. If a filer's media does not meet these specifications, they are encouraged to submit a test prior to submitting the actual file. Contact IRS/MCC for further information.

.04 Use "K" Records only if the payer is an approved Combined Federal/State filer.

SEC. 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 25,200 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 420.

(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) Used to signify 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.

SEC. 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 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 25,200 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 420.

(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) Used to signify 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 Form 5064 Label whether the cartridge is 36 track or 18 track.

SEC. 4. 5 1/4-INCH AND 3 1/2-INCH DISKETTE SPECIFICATIONS

.01 To be compatible, a diskette file must meet the following specifications:

(a) 5 1/4- or 3 1/2-inches in diameter.

(b) Data must be recorded in standard ASCII code. For 5 1/4-inch diskettes, data may be recorded using EBCDIC if the diskette is created on an IBM System 36.

(c) Records must be a fixed length of 420 bytes per record.

(d) Delimiter character commas (,) must not be used.

(e) Positions 419 and 420 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, the first diskette will be named IRSTAX.001, the second diskette will be IRSTAX.002, etc.

(g) A diskette file may consist of multiple diskettes as long as the file naming conventions are followed.

(h) 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

 

           720 kb      48tpi        ds/dd          512

 

           360 kb      48tpi        ds/dd          512

 

           320 kb      48tpi        ds/dd          512

 

           180 kb      48tpi        ss/dd          512

 

           160 kb      48tpi        ss/dd          512

 

 

.02 IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data follows the end of file "F" record, the file must 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. IRS/MCC has equipment that can convert diskettes created under virtually any operating system 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.

.04 Transmitters are encouraged to use high density diskettes. Low density diskettes are acceptable but must be formatted in low density.

SEC. 5. PAYER/TRANSMITTER "A" RECORD--GENERAL FIELD DESCRIPTIONS

.01 The Payer/Transmitter "A" Record identifies the payer and transmitter of the magnetic media file and 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 first 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 a fixed length of 420 positions.

.06 An "A" Record may be blocked with "B" Records, however, the initial record on a file must be 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.

.08 All alpha characters entered in the "A" Record must be upper-case.

.09 When filing Form 1098, Mortgage 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.

RECORD NAME: PAYER/TRANSMITTER "A" RECORD

Note: For all fields marked Required, a transmitter must provide the information described under Description and Remarks. For 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. All records are now a fixed length of 420 positions.

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record Type    1    Required. Enter "A"

 

 

 2-3      Payment Year   2    Required. Enter "94" (unless

 

                              reporting prior year data).

 

 

 4-6      Reel Sequence  3    The reel sequence number is incremented

 

          Number              by 1 for each tape or diskette on the

 

                              file starting with 001. The transmitter

 

                              may enter blanks or zeros in this field.

 

                              IRS/MCC bypasses this information.

 

                              Indicate the proper sequence on the

 

                              external label Form 5064.

 

 

 7-15     Payer's TIN    9    Required. Must be the valid nine-

 

                              digit Taxpayer Identification 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. For

 

                              foreign entities that are not required

 

                              to have a TIN, this field may be blank.

 

                              However, the Foreign Entity Indicator,

 

                              position 49 of the "A" Record, should be

 

                              set to "1" (one).

 

 

 16-19    Payer Name     4    Not a required field. The Payer

 

          Control             Name can be obtained only from Control

 

                              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.

 

 

 20       Last Filing    1    Enter a "1" (one) if this is the last

 

          Indicator           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.

 

 

 21       Combined       1    Required for the Combined

 

          Federal/State       Federal/State Filing Program. Enter "1"

 

          Filer               (one) if participating in the Combined

 

                              Federal/State Filing Program, otherwise,

 

                              enter blank. Refer to Part A, Sec. 16,

 

                              for further information. Forms 1098,

 

                              1099-A, 1099-B, 1099-C, 1099-S, and

 

                              W-2G cannot be filed under this program.

 

 

 22       Type of         1   Required. Enter the appropriate

 

          Return              code from the table below:

 

 

                              Type of Return

 

 Code

 

 

                              1098                                 3

 

                              1099-A                               4

 

                              1099-B                               B

 

                              1099-C                               5

 

                              1099-DIV                             1

 

                              1099-G                               F

 

                              1099-INT                             6

 

                              1099-MISC                            A

 

                              1099-OID                             D

 

                              1099-PATR                            7

 

                              1099-R                               9

 

                              1099-S                               S

 

                              5498                                 L

 

                              W-2G                                 W

 

 

 23-31    Amount Codes    9   Required. Enter the appropriate

 

          (See Note)          amount code for the type of return being

 

                              reported. Generally, for each amount

 

                              code entered in this field, a

 

                              corresponding payment amount should

 

                              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/electronically. However, if

 

                              discrepancies occur, this revenue

 

                              procedure governs.

 

 

          Example: If position 22 of the Payer/Transmitter "A"

 

          Record is "7" (for 1099-PATR) and positions 23-31 are

 

          "247bbbbbb" (b = blanks), this indicates the payer is

 

          reporting three payment amounts in all of the following

 

          "B" Records.

 

 

          The first payment amount field in the "B" Record will

 

          be all "0" (zeros);

 

          the second will represent nonpatronage distributions;

 

          the third will be all "0" (zeros);

 

          the fourth will represent federal income tax withheld;

 

          the fifth and sixth will be all "0" (zeros);

 

          the seventh will represent energy investment credit;

 

          and

 

          the eighth and ninth will be all "0" (zeros).

 

 

          Enter the amount codes in ascending sequence

 

          (i.e., 247bbbbbb, b = blanks), left justify, filling

 

          unused positions with blanks. For further clarification of

 

          the amount codes, contact IRS/MCC.

 

 

 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 1994 "Instructions for Forms 1099, 1098,

 

 5498, and W-2G".

 

 

 Amount Codes Form            For Reporting Mortgage Interest Received

 

 1098--Mortgage Interest      from Payers/Borrowers (Payer of Record)

 

 Statement                    on Form 1098:

 

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Mortgage interest received from

 

                                       payers/borrowers

 

                              2        Points paid directly by

 

                                       payers/borrowers on purchase of

 

                                       principal residence

 

                              3        Refund of overpaid interest

 

 

 Amount Codes Form            For Reporting the Acquisition or

 

 1099-A--Acquisition          Abandonment of Secured Property on

 

 or Abandonment of            Form 1099-A:

 

 Secured Property

 

                              Amount

 

                              Code      Amount Type

 

 

                              2        Balance of principal

 

                                       outstanding

 

                              3        Gross foreclosure proceeds

 

                              4        Appraisal value

 

 

 Amount Codes Form 1099-B--   For Reporting Payments on Form 1099-B:

 

 Proceeds From Broker and

 

 Barter Exchange             Amount

 

 Transactions                Code      Amount Type

 

 

                              2        Stocks, bonds, etc.

 

                                       Transactions (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

 

                                       Regulated Futures Contracts in

 

                                       1994. (See Note 2)

 

                              7        Unrealized profit or loss on

 

                                       open contracts--12/31/93. (See

 

                                       Note 2)

 

                              8        Unrealized profit or loss on

 

                                       open contracts--12/31/94. (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 represent a loss when the reporting is for Forward

 

 Contracts. 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 Contracts.

 

 

 Amount Codes Form            For Reporting Cancellation of Debt

 

 1099-C--Cancellation of      on Form 1099-C:

 

 Debt                         Form 1099-C:

 

 

                              Amount

 

                              Code      Amount Type

 

 

                              2        Amount of debt canceled (see

 

                                       Note)

 

                              3        Interest included in Amount

 

                                       Code 2

 

                              4        Penalties, fines, or

 

                                       administrative costs included

 

                                       in Amount Code 2

 

 

 Note: A debt is any amount owed to the debtor including

 

 principal, interest, penalties, administrative costs, and fines, to

 

 the extent they are indebtedness under section 61(a)(12). The amount

 

 of debt discharged or canceled may be all or only part of the total

 

 amount owed. See the 1994 "Instructions for Forms 1099, 1098, 5498,

 

 and W-2G" for further information.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-DIV--Dividends and      1099-DIV:

 

 Distributions

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Gross dividends and other

 

                                       distributions on stock (see

 

                                       Note)

 

                              2        Ordinary dividends (see Note)

 

                              3        Capital gain distributions (see

 

                                       Note)

 

                              4        Nontaxable distributions (if

 

                                       determinable) (see Note)

 

                              5        Investment expenses (see Note)

 

                              6        Federal income tax withheld

 

                                       (backup withholding)

 

                              7        Foreign tax paid

 

                              8        Cash liquidation distributions

 

                              9        Noncash liquidation

 

                                       distributions (show fair market

 

                                       value)

 

 

 Note: Amount Code 1 must be present (unless the payer is

 

 using Amount Codes 8 or 9 only) and must equal the sum of amounts

 

 reported for Amount Codes 2, 3, 4 and 5. If an amount is present for

 

 Amount Code 1, there must be an amount present for Amount Codes 2-5

 

 as applicable.

 

 

 Amount Codes Form 1099-G--   For Reporting Payments on Form

 

 Certain Government           1099-G:

 

 Payments

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Unemployment compensation

 

                              2        State or local income tax

 

                                       refunds, credits, or offsets

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

                              6        Taxable grants

 

                              7        Agriculture payments

 

 

 Note: Payments previously reported under Amount Code 5 for

 

 discharge of indebtedness are now reportable on Form 1099-C.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-INT--Interest Income    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            For Reporting Payments on Form

 

 1099-MISC--Miscellaneous     1099-MISC:

 

 Income

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Rents (see Note 1)

 

                              2        Royalties (see Note 2)

 

                              3        Other income (see Note 3)

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

                              5        Fishing boat proceeds

 

                              6        Medical and health care

 

                                       payments

 

                              7        Nonemployee compensation or

 

                                       crop insurance proceeds (see

 

                                       Note 4)

 

                              8        Substitute payments in lieu of

 

                                       dividends or interest

 

                              9        Excess golden parachute

 

                                       payments

 

 

 Note 1: If reporting the Direct Sales Indicator only, use

 

 Type of Return Code A for 1099-MISC in position 22, and Amount Code 1

 

 in position 23 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 should be reported on Form 1099-S.

 

 

 Note 3: Amount Code 3 previously was for "Prizes, awards,

 

 etc.". The title was changed to read "Other income".

 

 

 Note 4: Amount Code 7 is normally used to report nonemployee

 

 compensation. However, Amount code 7 may also be used to report crop

 

 insurance proceeds. See positions 4-5 of the "B" Record for

 

 instructions. If nonemployee compensation and crop insurance proceeds

 

 are being paid to the same payee, a separate "B" Record for each

 

 transaction is required.

 

 

 Amount Codes For Form        Reporting Payments on Form

 

 1099-OID--Original Issue     1099-OID:

 

 Discount

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Original issue discount for

 

                                       1994

 

                              2        Other periodic interest

 

                              3        Early withdrawal penalty

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-PATR--Taxable           1099-PATR:

 

 Distributions Received

 

 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

 

                              6        Investment credit (see Note)

 

                              7        Energy investment credit (see

 

                                       Note)

 

                              8        Jobs credit (see Note)

 

 

 Note: The amounts shown for Amount Codes 6, 7, and 8 must be

 

 reported to the payee; they need not be reported to IRS/MCC.

 

 

      If reporting Pass-Through Alternative Minimum Tax

 

 Adjustments, the total alternative minimum tax (AMT) patronage

 

 dividend adjustment for the patron and/or the total AMT per-unit

 

 retain allocation adjustment should be entered in the Special Data

 

 Entries Field of the Payee "B" Record.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-R:

 

 1099-R--Distributions

 

 From Pensions, Annuities,

 

 Retirement or Profit-

 

 Sharing Plans, IRAs,

 

 Insurance Contracts, etc.

 

 (See Note 1)

 

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Gross distribution (see Note 2)

 

                              2        Taxable amount (see Note 3) or

 

                                       IRA/SEP Distribution

 

                              3        Capital gain (included in

 

                                       Amount Code 2)

 

                              4        Federal income tax withheld

 

                                       (see Note 4)

 

                              5        Employee contributions or

 

                                       insurance premiums

 

                              6        Net unrealized appreciation in

 

                                       employer's securities

 

                              8        Other

 

                              9        State income tax withheld (see

 

                                       Note 5)

 

 

 Note 1: Additional information may be required in the "B"

 

 Record. Refer to positions 44 thru 48 of the "B" Record.

 

 

 Note 2: If the payment shown for Amount Code 1 is a total

 

 distribution, enter a "1" (one) in position 47 of the "B" Record. An

 

 amount must be shown in Amount Field 1.

 

 

 Note 3: 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 aftertax contributions, enter the value of the

 

 stock in Amount Code 1, enter "0" (zero) in Amount Code 2, and enter

 

 the employee's contributions in Amount Code 5.

 

 

      If the taxable amount cannot be determined, enter a "1" (one) in

 

 position 48 of the "B" Record. If reporting an IRA/SEP distribution,

 

 generally include the amount of the distribution in the Taxable

 

 Amount (Payment Amount Field 2, positions 61-70) and enter a "1"

 

 (one) in the IRA/SEP Indicator Field (position 44). A "1" (one) may

 

 be entered in the Taxable Amount Not Determined Indicator Field

 

 (position 48) of the Payee "B" Record, but the amount of the

 

 distribution must still be reported in Payment Amount Field 2. See

 

 the explanation for Box 2a of Form 1099-R in the 1994 "Instructions

 

 for Forms 1099, 1098, 5498, and W-2G" for more information on

 

 reporting the taxable amount.

 

 

 Note 4: See the 1994 "Instructions for Forms 1099, 1098, 5498,

 

 

 and W-2G" for further information concerning the federal income tax

 

 withheld for Form 1099-R.

 

 

 Note 5: State income tax withheld was added for the convenience

 

 of the payer but need not be reported to IRS. Local income tax may be

 

 reported in the Special Data Entries Field in the Payee "B" Record.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-S:

 

 1099-S--Proceeds From

 

 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. For more information, see Announcement 90-129,

 

 1990-48 I.R.B. 10.

 

 

 Amount Codes Form            For Reporting Payments on Form 5498:

 

 5498--Individual

 

 Retirement Arrangement

 

 Information (See Note)

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Regular IRA contributions made

 

                                       in 1994 and 1995 for 1994

 

                              2        Rollover IRA contributions

 

                              3        Life insurance cost included in

 

                                       Amount Code 1

 

                              4        Fair market value of the

 

                                       account

 

 

 Note: For information regarding Inherited IRAs, refer to

 

 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 Shield/Storm

 

 participant for other than 1994, enter "DS", 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 further information concerning Inherited IRAs or Desert

 

 Shield/Storm participant reporting, refer to the 1994 "Instructions

 

 for Forms 1099, 1098, 5498, and W-2G", and Notice 91-17, 1991-1 C.B.

 

 319.

 

 

 Amount Codes Form            For Reporting Payments on Form W-2G:

 

 W-2G--Certain Gambling

 

 Winnings                     Amount

 

                              Code      Amount Type

 

 

                              1        Gross winnings

 

                              2        Federal income tax withheld

 

                              3        State income tax withheld (see

 

                                       Note)

 

                              7        Winnings from identical wagers

 

 

 Note: State income tax withheld was added for the convenience

 

 of the payer but need not be reported to IRS/MCC.

 

 

 32       Test            1   Required. Enter "T" if this is a test

 

          Indicator           file, otherwise enter a blank.

 

 

 33       Service         1   Enter "1" (one) if a service bureau was

 

          Bureau              used to develop and/or transmit files,

 

          Indicator           otherwise, enter blank. See Part A, Sec.

 

                              17 for the definition of service bureau.

 

 

 34-41    Blank           8   Enter blanks

 

 

 42-43    Magnetic        2   Required for magnetic tape/tape

 

          Tape Filer          cartridge filers only. Enter the

 

          Indicator           letters "LS" (in uppercase only). Use of

 

                              this field by filers using other types

 

                              of media will be acceptable but is not

 

                              required.

 

 

 44-48    Transmitter     5   Required. Enter the five character

 

          Control Code        alpha/numeric Transmitter Control Code

 

          (TCC)               assigned by IRS/MCC. A TCC must be

 

                              obtained to file data on this program.

 

                              Do not enter more than one TCC per file.

 

 

 49       Foreign         1   Enter a "1" (one) if the payer is a

 

          Entity              foreign entity and income is paid by the

 

          Indicator           corporation to a U.S. resident. If the

 

                              payer is not a foreign entity, enter a

 

                              blank. (See Note)

 

 

 Note: If payers erroneously report entities as foreign, they

 

 may be subject to a penalty for providing incorrect information to

 

 IRS. Therefore, payers must be sure to code only those records as

 

 foreign entities that should be coded.

 

 

 50-89    First Payer    40   Required. Enter the name of the payer

 

          Name Line           whose TIN appears in positions 7-15 of

 

                              the "A" Record. Any extraneous

 

                              information must be deleted. Left

 

                              justify and fill 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,

 

 the "A" Record will reflect the name and TIN of the recipient of the

 

 interest/the filer of Form 1098 (the payer). The "B" Record will

 

 reflect the individual paying the interest (the 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 Form

 

 1099-S) and the "B" Record will reflect the seller/transferor.

 

 

 90-129   Second Payer   40   If the Transfer Agent Indicator

 

          Name Line           (position 130) contains a "1" (one),

 

                              this field must contain the name of the

 

                              transfer 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 and fill unused positions with

 

                              blanks.

 

 

 130      Transfer        1   Required. Identifies the entity in the

 

          Agent               Second Payer Name Line Field (See Part

 

          Indicator           A, Sec. 17 for a definition of transfer

 

                              agent.)

 

 

                              Code          Meaning

 

 

                              1        The entity in the Second Payer

 

                                       Name Line Field is the transfer

 

                                       agent.

 

                              0 (zero) The entity shown is not the

 

                                       transfer agent (i.e., the

 

                                       Second Payer Name Line Field

 

                                       contains either a continuation

 

                                       of the First Payer Name Line

 

                                       Field or blanks).

 

 

 131-170  Payer          40   Required. If the Transfer Agent

 

          Shipping            Indicator in position 130 is a "1"

 

          Address             (one), enter the shipping address of the

 

                              transfer 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 and fill with blanks.

 

 

 171-210  Payer City,    40   Required. If the Transfer Agent

 

          State, and          Indicator in position 130 is a "1"

 

          ZIP Code            (one), enter the city, town, or post

 

                              office, state abbreviation and ZIP Code

 

                              of the transfer agent. Otherwise, enter

 

                              the city, town, or post office, state

 

                              and ZIP Code of the payer. Left justify

 

                              and fill with blanks.

 

 

 211-290  Transmitter    80   Required if the payer and transmitter

 

          Name                are not the same. Enter the name of the

 

                              transmitter in the manner in which it is

 

                              used in normal business. The name of the

 

                              transmitter must be reported in the same

 

                              manner throughout the entire file. Left

 

                              justify and fill with blanks. If the

 

                              payer and transmitter are the same, this

 

                              field may be blank.

 

 

 291-330  Transmitter    40   Required if the payer and transmitter

 

          Mailing             are not the same. Enter the mailing

 

          Address             address of the transmitter. Street

 

                              address should include number, street,

 

                              apartment or suite number (or P. O. Box

 

                              if mail is not delivered to street

 

                              address). Left justify and fill with

 

                              blanks. If the payer and transmitter are

 

                              the same, this field may be blank.

 

 

 331-370  Transmitter    40   Required if the payer and transmitter

 

          City, State         are not the same. Enter the city, town,

 

          and ZIP Code        or post office, state and ZIP Code of

 

                              the transmitter. Left justify and fill

 

                              with blanks. If the payer and

 

                              transmitter are the same, this field may

 

                              be blank.

 

 

 371-418  Blank          48   Enter blanks.

 

 

 419-420  Blank           2   Enter blanks or carriage return/line

 

                              feed (cr/lf).

 

 

SEC. 6. PAYER/TRANSMITTER "A" RECORD -- RECORD LAYOUT [omitted]

/*/ When reporting Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest (the payer). For Form 1099-S, the "A" Record will reflect the person responsible for reporting the transaction.

SEC. 7. 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 420 positions. The record layout for positions 1 through 321 is the same for all "B" Records. Positions 322 through 420 vary for Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S and W-2G to accommodate variations within these forms.

In the "A" Record, the amount codes that appear in tape or diskette positions 23 through 31 will be left-justified and filled with blanks. In the "B" Record, the filer will allow for all nine Payment Amount Fields. For those fields not used, enter "0's" (zeros). For example, if a payer is reporting on Form 1099-PATR, they will enter a "7" in tape position 22 of the "A" Record, Type of Return. If they are reporting payments for Amount Codes 2, 4, and 7, then media positions 23 through 31 of the "A" Record will be "247bbbbbb" (b = blanks). In the "B" Record:

Positions 51 through 60 for Payment Amount 1 will be zeros.

Positions 61-70 will reflect the actual payment amount to be reported for "nonpatronage distributions".

Positions 71-80 for Payment Amount 3 will be zeros.

Positions 81-90 will reflect the actual payment amount to be reported for "federal income tax withheld".

Positions 91-110 for Payment Amounts 5 and 6 will be zeros.

Positions 111-120 will reflect the actual payment amount to be reported for "energy investment credit".

Positions 121-140 for Payment Amounts 8 and 9 will be zeros.

.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.

.03 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 generating the name control:

(a) 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.

(b) In the case of multiple payees, only the surname of the payee whose TIN (SSN or EIN) 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.

.04 See Part A, Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).

.05 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. If this field is coded, it will not affect the processing of the "B" Records.

.06 Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A, Sec. 16 in order to participate in this program. Forms 1098, 1099-A, 1099-B, 1099-C, 1099-S, and W-2G cannot be filed under the Combined Federal/State Filing Program.

.07 All alpha characters entered in the "B" Record should be uppercase.

.08 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 0000001000 in the payment amount field.

.09 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.

.10 When reporting Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest, the filer of the Form 1098 (the payer). The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Forms 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.

RECORD NAME: PAYEE "B" RECORD

Note: 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 position(s) and for the indicated length. All records are a fixed length of 420 positions.

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record Type     1   Required. Enter "B".

 

 

 2-3      Payment Year    2   Required. Enter "94" (unless reporting

 

                              prior year data).

 

 

 4-5      Document        2   Required for Forms 1099-G, 1099-MISC,

 

          Specific/           1099-R and W-2G. For all other forms,

 

          Distribution        or if not used, enter blanks.

 

          Code

 

 

          Tax Year of         For Form 1099-G, use only for reporting

 

          Refund (Form        the tax year for which the refund,

 

          1099-G only)        credit or offset (Amount Code 2) was

 

                              issued. Enter in position 4; position 5

 

                              must be blank. If the refund, credit, or

 

                              offset is not attributable to income tax

 

                              from a trade or business, enter the

 

                              numeric year from the table below for

 

                              which the refund, credit or offset was

 

                              issued (e.g., for 1993, enter 3).

 

                              If the refund, credit or offset is

 

                              exclusively attributable to income from

 

                              a trade or business, and is not of

 

                              general application, enter the alpha

 

                              equivalent of the year from the table

 

                              below (e.g., for 1993,

 

                              enter C).

 

 

                                                   Year for which

 

                               Year for Which      Trade/Business

 

                                  General        Refund Was Issued

 

                              Refund was Issued   (Alpha Equivalent)

 

                                      1                    A

 

                                      2                    B

 

                                      3                    C

 

                                      4                    D

 

                                      5                    E

 

                                      6                    F

 

                                      7                    G

 

                                      8                    H

 

                                      9                    I

 

                                      0                    J

 

 

          Crop Insurance      For Form 1099-MISC, Enter "1" (one) in

 

          Proceeds (Form      position 4 if the payments reported

 

          1099-MISC only)     for Amount Code 7 are crop insurance

 

                              proceeds. Position 5 will be blank.

 

 

          Distribution        For Form 1099-R, enter the appropriate

 

          Code (Form          distribution code(s). More than one

 

          1099-R only)        code may apply for Form 1099-R. If

 

          (For a detailed     only one code explanation is required,

 

          explanation of      it must be entered in position 4 and

 

          the distribution    position 5 must be blank. Enter at.

 

          codes, see the      least one (1) distribution code. A blank

 

          1994 "Instruc-      code in position 4 is not acceptable.

 

          tions for Forms

 

          1099, 1098,

 

          5498, and W-2G".)

 

                              Enter the applicable code from the table

 

                              that follows. Position 4 must contain a

 

                              numeric code in all cases except when

 

                              using P, D, E, F, G, or H. Distribution

 

                              Code A, B, or C, when applicable, must

 

                              be entered in position 5 with the

 

                              applicable numeric code in position 4.

 

 

                              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 if applicable.

 

 

                              Only two numeric combinations are

 

                              acceptable, codes 8 and 1, and codes 8

 

                              and 2, on one return. These two

 

                              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, 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, if

 

                              applicable. Refer to Announcement

 

                              93-20, 1993-6 I.R.B. 65

 

 

                              Category                         Code

 

 

                              Early (premature) distribution,    1 /*/

 

                               no known exception

 

                              Early (premature) distribution,    2 /*/

 

                               exception applies (as defined in

 

                               section 72(q), (t), or (v) of

 

                               the Internal Revenue Code) other

 

                               than disability or death

 

                              Disability                         3 /*/

 

                              Death (includes payments to a      4 /*/

 

                               beneficiary)

 

                              Prohibited transaction             5 /*/

 

                              Section 1035 exchange              6

 

                              Normal distribution                7 /*/

 

                              Excess contributions plus          8 /*/

 

                               earnings/excess deferrals

 

                               (and/or earnings) taxable in

 

                               1994

 

                              PS 58 costs                        9

 

                              Excess contributions plus          P /*/

 

                               earnings/excess deferrals

 

                               taxable in 1993

 

                              Eligible for 5 or 10 year          A

 

                               averaging

 

                              Eligible for death benefit         B

 

                               exclusion

 

                              Eligible for both A and B    C

 

                              Excess contributions plus          D /*/

 

                               earnings/excess deferrals

 

                               taxable in 1992

 

                              Excess annual additions under      E

 

                               section 415

 

                              Charitable gift annuity            F

 

                              Direct rollover to IRA             G

 

                              Direct rollover to qualified       H

 

                               plan or tax-sheltered annuity

 

 

      /*/ If reporting an IRA or SEP distribution, code a "1" (one) in

 

 position 44 of the "B" Record.

 

 

          Type of Wager       For Form W-2G, enter the applicable code

 

          (Form W-2G          in position 4. Position 5 will be blank.

 

          only)

 

 

                              Category                         Code

 

 

                              Horse race track (or off-track     1

 

                               betting of a horse track

 

                               nature)

 

                              Dog race track (or off-track       2

 

                               betting of a dog track nature)

 

                              Jai-alai                           3

 

                              State conducted lottery            4

 

                              Keno                               5

 

                              Casino-Type Bingo. Do not use6

 

                               this code for any other type of

 

                               bingo winnings (e.g., church or

 

                               fire dept.)

 

                              Slot machines                      7

 

                              Any other type of gambling         8

 

                               winnings. (This includes church

 

                               bingo, fire dept. bingo, or

 

                               unlabeled winnings.)

 

 

 6        2nd TIN         1   For Forms 1099-B, 1099-DIV, 1099-INT,

 

          Notice              1099-MISC, 1099-OID, and 1099-PATR only.

 

 

                              Enter "2" to indicate notification by

 

                              IRS/MCC twice within three calendar

 

                              years that the payee provided an

 

                              incorrect name and/or TIN combination,

 

                              otherwise, enter a blank.

 

 

 7        Corrected       1   Indicate a corrected return.

 

          Return

 

          Indicator           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.

 

 

 8-11     Name Control    4   If determinable, enter the first four

 

                              (4) characters of the surname of the

 

                              person whose TIN is being reported in

 

                              positions 15-23 of the "B" Record,

 

                              otherwise, enter blanks. This is usually

 

                              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 (4) characters should be

 

                              left-justified, filling the unused

 

                              positions with blanks. Special

 

                              characters and imbedded blanks should be

 

                              removed. In the case of a business,

 

                              other than 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),

 

 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 Browg              BROWN

 

                            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        ASPE

 

                            Bess Willow

 

                            Harold Fir,

 

                            Bruce Elm, and

 

                            Joyce Spruce et al Ptr  FIR /*/

 

 

 Estate:                    Frank White Estate      WHIT

 

                            Sheila Blue Estate      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 (4) 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.

 

 

 12       Direct Sales    1   Form 1099 MISC only. Enter a "1" (one)

 

          Indicator           to indicate sales of $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 direct sales only, use Type of Return

 

 A in position 22, and Amount Code 1 in position 23 of the Payer "A"

 

 record. All payment amount fields in the Payee "B" record will

 

 contain zeros.

 

 

 13       Blank           1   Enter blank

 

 

 14       Type of TIN     1   This field is used to identify the

 

                              Taxpayer Identification Number (TIN) in

 

                              positions 15-23 as either an Employer

 

                              Identification Number (EIN), or a Social

 

                              Security Number (SSN). /*/ Enter the

 

                              appropriate code from the following

 

                              table:

 

 

      /*/ While not a "Required" field, this information is important

 

 for the correct processing of the payee's TIN.

 

 

                              Type of TIN  TIN  Type of Account

 

                                   1       EIN  A business,

 

                                                organization, sole

 

                                                proprietor or other

 

                                                entity

 

                                   2       SSN  An individual

 

                                 Blank     N/A  If the type of TIN is

 

                                           not determinable, enter a

 

                                           blank.

 

 

 15-23    Taxpayer        9   Required. Enter the nine digit Taxpayer

 

          Identifi-           Identification Number of the payee (SSN

 

          cation              or EIN). If an identification number has

 

          Number              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 erroneous notices. 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 (B Notices) or penalties for missing or

 

 incorrect TINs.

 

 

 24-43    Payer's        20   Enter any number assigned by the payer

 

          Account             to the payee (e.g., checking or

 

          Number For          savings account number). Filers are

 

          Payee               encourage 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.

 

 

 44       IRA/SEP         1   Form 1099-R only. Enter "1" (one) if

 

          Indicator           reporting a distribution from an IRA or

 

          (See Note)          SEP; otherwise, enter a blank.

 

 

 Note: Report the total amount distributed from an IRA or SEP in

 

 Payment Amount Field 2 (Taxable Amount), as well as Payment Amount

 

 Field 1 (Gross Distribution) of the "B" Record. Filers may indicate

 

 the taxable amount was not determined by using the Taxable Amount Not

 

 Determined Indicator (position 48) of the "B" Record. However, still

 

 report the amount distributed in Payment Amount Field 2. Refer to the

 

 1994 "Instructions for Forms 1099, 1098, 5498 and W-2G" for

 

 exceptions.

 

 

 45-46    Percentage of   2   Form 1099-R only. Use this field when

 

          Total               reporting a total distribution to more

 

          Distribution        than one person, such as when a

 

                              participant dies 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 or more will

 

                              be 11 percent). Enter the percentage

 

                              received by the person whose TIN is

 

                              included in positions 15-23 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 IRA or SEP distributions

 

                              or for direct rollovers.

 

 

 47       Total           1   Form 1099-R only. Enter a "1" (one) only

 

          Distribution        if the payment shown for Amount Code 1

 

          Indicator           is 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.

 

 

 48       Taxable         1   Form 1099-R only. Enter a "1" (one) only

 

          Amount Not          if the taxable amount of the payment

 

          Determined          entered for Payment Amount Field 1

 

          Indicator           (Gross Distribution) of the "B" Record

 

                              cannot be computed, otherwise, enter

 

                              blank. If Taxable Amount Not Determined

 

                              Indicator is used, enter "0's" (zeros)

 

                              in Payment Amount Field 2 of the Payee

 

                              "B" Record unless the IRA/SEP Indicator

 

                              is present. (See Note) Please make every

 

                              effort to compute the taxable amount.

 

 

 Note: If reporting an IRA/SEP Distribution for Form 1099-R, the

 

 Taxable Amount Not Determined Indicator may be used; but, it is not

 

 required. If the IRA/SEP Indicator is present, the amount of the

 

 distribution should be reported in Payment Amount Field 2. Refer to

 

 the 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" for more

 

 information.

 

 

      Filers are instructed to 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.

 

 

 49-50    Blank           2   Enter blanks

 

 

          Payment             Required. Filers should allow for all

 

          Amount              payment amounts. For those not used,

 

          Fields              enter zeros. For example: If position

 

          (Must be            22, Type of Return, of the "A" Record is

 

          numeric)            "7" (for 1099-PATR) and positions

 

                              23-31, Amount Codes, are "247bbbbbb" (b

 

                              = blank), this indicates that three

 

                              actual payment amounts are being

 

                              reported in the following "B" Records.

 

                              Payment Amount 1 will be all 0's

 

                              (zeros), Payment Amount 2 will represent

 

                              nonpatronage distributions, Payment

 

                              Amount 3 will be all "0" (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 energy

 

                              investment credit, and Payment Amounts 8

 

                              and 9 will be all 0's (zeros). Each

 

                              payment field must contain 10 numeric

 

                              characters (see Note). Each payment

 

                              amount must be entered in 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 overpunch 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 overpunch is not used, the

 

                              number is assumed to be positive.

 

                              Negative overpunch 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: If a payer is reporting a money amount in excess of

 

 9999999999 (dollars and cents), it must be reported as follows:

 

 (1) The first Payee "B" Record MUST contain 9999999999. (2) The

 

 second Payee "B" Record will contain the remaining money amount.

 

 

 DO NOT SPLIT THIS FIGURE IN HALF.

 

 

 51-60    Payment        10   The amount reported in this field

 

          Amount 1 /*/        represents payments for Amount Code 1 in

 

                              the "A" Record.

 

 

 61-70    Payment        10   The amount reported in this field

 

          Amount 2 /*/        represents payments for Amount Code 2 in

 

                              the "A" Record.

 

 

 71-80    Payment        10   The amount reported in this field

 

          Amount 3 /*/        represents payments for Amount Code 3 in

 

                              the "A" Record.

 

 

 81-90    Payment        10   The amount reported in this field

 

          Amount 4 /*/        represents payments for Amount Code 4 in

 

                              the "A" Record.

 

 

 91-100   Payment        10   The amount reported in this field

 

          Amount 5/*/         represents payments for Amount Code 5 in

 

                              the "A" Record.

 

 

 101-110  Payment        10   The amount reported in this field

 

          Amount 6/*/         represents payments for Amount Code 6 in

 

                              the "A" Record.

 

 

 111-120  Payment        10   The amount reported in this field

 

          Amount 7/*/         represents payments for Amount Code 7 in

 

                              the "A" Record.

 

 

 121-130  Payment        10   The amount reported in this field

 

          Amount 8/*/         represents payments for Amount Code 8 in

 

                              the "A" Record.

 

 

 131-140  Payment        10   The amount reported in this field

 

          Amount 9/*/         represents payments for Amount Code 9 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.

 

 

 141-160  Blank          20   Enter blanks

 

 

 161      Foreign         1   If the address of the payee is in a

 

          Country             foreign country, enter a "1" (one) in

 

          Indicator           this field, otherwise, enter blank. When

 

                              filers 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.

 

 

 162-201  First Payee    40   Required. Enter the name of the payee

 

          Name Line           (preferably surname first) whose

 

                              Taxpayer Identification Number (TIN) was

 

                              provided in positions 15-23 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.

 

 

 Note: When reporting Form 1098, Mortgage Interest Statement,

 

 the "A" Record will reflect the name of the recipient of the interest

 

 (the payer). The "B" Record will reflect the individual paying the

 

 interest (the borrower/payer of record) and the amount paid.

 

 

      For Forms 1099-S, the "B" Record will reflect the

 

 seller/transferor information. 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 1994 "Instructions for Forms 1099, 1098, 5498,

 

 and W-2G". The beneficiary's TIN should be reported in

 

 positions 15-23 of the "B" Record.

 

 

 202-241  Second Payee   40   If there are multiple payees (e.g.,

 

          Name Line           partners, joint owners, or spouses), use

 

                              this field for those names not

 

                              associated with the TIN provided in

 

                              position 15-23 of the "B" Record or if

 

                              not enough space was provided in the

 

                              First Payee Name Line continue the name

 

                              in this field. Do not enter address

 

                              information. It is important that filers

 

                              provide as much payee information to

 

                              IRS/MCC as possible to identify the

 

                              payee assigned the TIN. Left justify and

 

                              fill unused positions with blanks. Fill

 

                              with blanks if no entries are present

 

                              for this field.

 

 

 242-281  Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P.O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state, and ZIP

 

 Code as a continuous 40 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 161 must contain a "1" (one).

 

 

 282-310  Payee City     29   Required. Enter the city, town or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 311-312  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.

 

 

 313-321  Payee ZIP       9   Required. Enter the valid nine digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field, located in

 

                              position 161 of the "B" Record.

 

 

STANDARD PAYEE "B" RECORD FORMAT FOR ALL TYPES OF RETURNS UP TO POSITION 321 [omitted]

The following sections define the field positions for the different types of returns in the Payee "B" Record (positions 322-420):

(1) Forms 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, and 5498

(2) Form 1099-A

(3) Form 1099-B

(4) Form 1099-C

(5) Form 1099-OID

(6) Form 1099-S

(7) Form W-2G

(1) FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R and 5498

 322-349  Blank          28   Enter blanks

 

 

 350-416  Special Data   67   This portion of the "B" Record may be

 

          Entries             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.

 

 

 417-418  Combined        2   If this payee record is to be forwarded

 

          Federal/State       to a state agency as part of the

 

          Code                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

 

                              or for forms not valid for state

 

                              reporting, enter blanks.

 

 

 419-420  Blank           2   Enter blanks, or carriage return/line

 

                              feed (cr/lf) characters.

 

 

PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, and 5498 [omitted]

(2) PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-A

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 322-349  Blank          28   Enter blanks

 

 

 350-370  Special Data   21   This portion of the "B" Record may be

 

          Entries             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.

 

 

 371-376  Date of         6   Form 1099-A only. Payers should enter

 

          Lender's            the acquisition date of the secured

 

          Acquisition or      property or the date they first had

 

          Knowledge of        reason to know the property was

 

          Abandonment         abandoned, in the format MMDDYY(i.e.,

 

                              102294). Do not enter hyphens or

 

                              slashes.

 

 

 377      Liability       1   Form 1099-A only. Enter the appropriate

 

          Indicator           indicator from the table below:

 

 

                              Indicator   Usage

 

 

                              1          Borrower is personally liable

 

                                         for repayment of the debt.

 

                              Blank      Borrower is not liable for

 

                                         repayment of the debt.

 

 

 378-416  Description    39   Form 1099-A only. 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-1992

 

                              Buick Regal or office equipment). Enter

 

                              "CCC" for crops forfeited on Commodity

 

                              Credit Corporation loans. If fewer than

 

                              39 positions are required, left justify

 

                              and fill unused positions with blanks.

 

 

 417-418  Blank           2   Enter blanks

 

 

 419-420  Blank           2   Enter blanks, or carriage return/line

 

                              feed (cr/lf) characters.

 

 

PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-A [omitted]

(3) PAYEE "B" RECORD--RECORD LAYOUT POSITION 322-420 FORM 1099-B

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 322-349  Blank          28   Enter blanks

 

 

 350-359  Special Data   10   This portion of the "B" Record may be

 

          Entries             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.

 

 

 360      Gross           1   Form 1099-B only. Enter the appropriate

 

          Proceeds            indicator from the following table,

 

          Indicator           otherwise, enter blanks.

 

 

                              Indicator   Usage

 

 

                              1          Gross proceeds

 

                              2          Gross proceeds less

 

                                         commissions and option

 

                                         premiums

 

 

 361-366  Date of Sale    6   Form 1099-B only. 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 format

 

                              MMDDYY (e.g., 102194). Enter blanks if

 

                              this is an aggregate transaction. Do not

 

                              enter hyphens or slashes.

 

 

 367-379  CUSIP Number   13   Form 1099-B only. 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 "0" (zeros)

 

                              if the number is not available. Right

 

                              justify and fill unused positions with

 

                              blanks.

 

 

 380-418  Description    39   Form 1099-B only. Enter a brief

 

                              description of the item or services for

 

                              which the proceeds or bartering is being

 

                              reported. If fewer than 39 characters

 

                              are required, left justify 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 descriptions

 

                              and any amount subject to backup

 

                              withholding. For bartering transactions,

 

                              show the services or property provided.

 

 

 Note: The amount withheld in these situations is to be included

 

 in Amount Code 4.

 

 

 419-420  Blank           2   Enter blanks, or carriage return/line

 

                              feed (cr/lf) characters.

 

 

PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-B [omitted]

(4) PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-C

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 322-349  Blank          28   Enter blanks

 

 

 350-370  Special Data   21   This portion of the "B" Record may be

 

          Entries             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.

 

 

 371-376  Date Canceled   6   Form 1099-C only. Payers should enter

 

                              the date when the debt was canceled in

 

                              the format of MMDDYY (i.e., 102294).

 

                              Do not enter hyphens or slashes.

 

 

 377      Bankruptcy      1   Form 1099-C only. Enter "1" (one) to

 

          Indicator           indicate the debt was discharged in

 

                              bankruptcy.

 

 

                              Indicator   Usage

 

 

                              1          Debt was discharged in

 

                                         bankruptcy.

 

                              Blank      Debt was not discharged in

 

                                         bankruptcy.

 

 

 378-416  Debt           39   Form 1099-C only. Enter a description of

 

          Description         the origin of debt, such as student

 

                              loan, mortgage, or credit card

 

                              expenditure.

 

 

 417-418  Blank           2   Enter blanks

 

 

 419-420                  2   Enter blanks, or carriage return/line

 

                              feed (cr/lf).

 

 

PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-C [omitted]

(5) PAYEE "B" RECORD--RECORD LAYOUT POSITION 322-420 FORM 1099-OID

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 322-349  Blank          28   Enter blanks

 

 

 350-377  Special Data   28   This portion of the "B" Record may be

 

          Entries             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 used, enter blanks.

 

 

 378-416  Description    39   Required 1099-OID only. 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 of maturity (e.g.,NYSE XYZ

 

                              12 1/2 95). Show the name of the issuer

 

                              if other than the payer. If fewer than 39

 

                              characters are required, left justify and

 

                              fill unused positions with blanks.

 

 

 417-418  Combined        2   If a payee record is to be forwarded to

 

          Federal/            a state agency as part of the Combined

 

          State               Federal/State Filing Program, enter the

 

          Code                valid state code from Part A, Sec. 16,

 

                              Table 1. For those payers or states not

 

                              participating in this program and for

 

                              forms not valid for state reporting,

 

                              enter blanks.

 

 

 419-420  Blank           2   Enter blanks or carriage return/line feed

 

                              (cr/lf) characters.

 

 

PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-OID [omitted]

(6) PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-S

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 322-349  Blank          28   Enter blanks

 

 

 350-372  Special        23   This portion of the "B" Record may be

 

          Data                used to record information for state

 

          Entries             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.

 

 

 373-378  Date of         6   Required Form 1099-S only. Enter the

 

          Closing             closing date in the format MMDDYY(e.g.,

 

                              102294). Do not enter hyphens or

 

                              slashes.

 

 

 379-417  Address or     39   Required Form 1099-S only. Enter the

 

          Legal               address of the property transferred

 

          Description         (including city, state, and ZIP Code).

 

                              If the address does not sufficiently

 

                              identify 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 and fill unused

 

                              positions with blanks.

 

 

 418      Property or     1   Required Form 1099-S only. Enter "1"

 

          Services To         (one) if the transferor received or will

 

          Be Received         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. Also enter a "1"

 

                              (one) if the transferor receives

 

                              property (other than cash) or services

 

                              to satisfy a debt having a stated

 

                              principal amount, otherwise, enter

 

                              a blank.

 

 

 419-420  Blank           2   Enter blanks or carriage return/line feed

 

                              (cr/lf) characters.

 

 

PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM 1099-S [omitted]

When reporting Form 1099-S, the "B" Record will reflect the seller/transferor information.

(7) PAYEE "B" RECORD--RECORD LAYOUT POSITIONS 322-420 FORM W-2G

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 322-352  Blank          31   Enter blanks

 

 

 353-358  Date Won        6   Required Form W-2G only. Enter the date

 

                              of the winning event in the format MMDDYY

 

                              (e.g., 102294). Do not enter

 

                              hyphens or slashes. This is not the date

 

                              the money was paid, if paid after the

 

                              date of the race (or game).

 

 

 359-373  Transaction    15   Required Form W-2G only. 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. All

 

                              others, enter blanks.

 

 

 374-378  Race            5   Form W-2G only. If applicable, enter the

 

                              the race (or game) relating to the

 

                              winning ticket. Otherwise, enter blanks.

 

 

 379-383  Cashier         5   Form W-2G only. If applicable, enter the

 

                              the initials of the cashier making the

 

                              winning payment; otherwise, enter blanks.

 

 

 384-388  Window          5   Form W-2G only. If applicable, enter the

 

                              window number or location of the person

 

                              paying the winnings; otherwise, enter

 

                              blanks.

 

 

 389-403  First ID       15   Form W-2G only. If applicable, enter the

 

                              first identification number of the person

 

                              receiving the winnings; otherwise, enter

 

                              blanks.

 

 

 404-418  Second ID      15   Form W-2G only. If applicable, enter the

 

                              second identification number of the

 

                              person receiving the winnings; otherwise,

 

                              enter blanks.

 

 

 419-420  Blank           2   Enter blanks, or carriage return/line

 

                              feed (cr/lf) characters.

 

 

PAYEE "B" RECORD-RECORD LAYOUT POSITIONS 322-420 FORM W-2G [omitted]

SEC. 8. END OF PAYER "C" RECORD--RECORD LAYOUT

.01 The End of Payer "C" Record is a fixed record length of 420 positions. The control total fields are each 15 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 will appear in Control Totals 1, 3 and 6 of the "C" Record. In this example, positions 26-40, 56-85, and 101-145 would be zero filled. Positions 146-420 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

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter "C"

 

          Type

 

 

 2-7      Number of       6   Required. Enter the total number of "B"

 

          Payees              Records covered by the preceding "A"

 

                              Record. Right justify and zero fill.

 

 

 8-10     Blank           3   Enter blanks

 

 

      Required. Accumulate totals of any payment amount fields

 

 in the "B" Record into the appropriate control total fields of the

 

 "C" Record. Control totals must be right-justified and unused

 

 control total fields zero-filled. All control total fields are 15

 

 positions in length.

 

 

 11-25    Control    15

 

          Total 1

 

 26-40    Control    15

 

          Total 2

 

 41-55    Control    15

 

          Total 3

 

 56-70    Control    15

 

          Total 4

 

 71-85    Control    15

 

          Total 5

 

 86-100   Control    15

 

          Total 6

 

 101-115  Control    15

 

          Total 7

 

 116-130  Control    15

 

          Total 8

 

 131-145  Control    15

 

          Total 9

 

 

 146-420  Blank         275   Enter blanks. Filers may enter carriage

 

                              return/line feed (cr/lf) characters in

 

                              positions 419-420.

 

 

END OF PAYER "C" RECORD--RECORD LAYOUT [omitted]

SEC. 9. STATE TOTALS "K" RECORD--RECORD LAYOUT

.01 The state totals "K" record is a fixed record length of 420 positions. The control total fields are each 15 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 will 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.

                 RECORD NAME: STATE TOTALS "K" RECORD

 

 

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record Type     1   Required. Enter "K"

 

 

 2-7      Number of       6   Required. Enter the total number of "B"

 

                              Records being coded for this state. Right

 

                              Payees justify and zero fill.

 

 

 8-10     Blank           3   Enter blanks

 

 

      Required. Accumulate totals of any payment amount fields

 

 in the "B" Records for each state being reported, into the

 

 appropriate control total fields of the appropriate "K" Record.

 

 Control totals must be right-justified, and unused control total

 

 fields zero-filled. All control total fields are 15 positions in

 

 length.

 

 

 11-25    Control    15

 

          Total 1

 

 26-40    Control    15

 

          Total 2

 

 41-55    Control    15

 

          Total 3

 

 56-70    Control    15

 

          Total 4

 

 71-85    Control    15

 

          Total 5

 

 86-100   Control    15

 

          Total 6

 

 101-115  Control    15

 

          Total 7

 

 116-130  Control    15

 

          Total 8

 

 131-145  Control    15

 

          Total 9

 

 

 146-416  Blank         271   Reserved for IRS use. Enter blanks.

 

 

 417-418  Combined        2   Required. Enter the code assigned to the

 

          Federal/            state which is to receive the

 

          State               information. (Refer to Part A, Sec. 16

 

          Code                Table 1.)

 

 

 419-420  Blank           2   Enter blanks or carriage return/line feed

 

                              (cr/lf) characters.

 

 

STATE TOTALS "K" RECORD--RECORD LAYOUT [omitted]

SEC. 10. END OF TRANSMISSION "F" RECORD--RECORD LAYOUT

.01 The end of transmission "F" record is a fixed record length of 420 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"

 

 

 2-5      Number of       4   Enter the total number of Payer "A"

 

          "A" Records         Records in the entire file (right

 

                              justify and zero fill) or enter all

 

                              zeros.

 

 

 6-30     Zero           25   Enter zeros

 

 

 31-420   Blank         390   Enter blanks. Filers may enter carriage

 

                              return/line feed (cr/lf) characters in

 

                              positions 419-420.

 

 

END OF TRANSMISSION "F" RECORD--RECORD LAYOUT [omitted]

PART C. BISYNCHRONOUS (MAINFRAME) ELECTRONIC FILING SPECIFICATIONS

SEC. 1. GENERAL

.01 Bisynchronous electronic filing of Forms 1098, 1099, 5498, and W-2G information returns is offered as an alternative to magnetic media (tape, 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.

.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and separate approval to participate in each of them must be obtained. 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 Taxpayer 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 by way of modems, 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 "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 have an End of Transmission (EOT) "F" Record.

SEC. 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. 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 acknowledgement from the password. Both the user and the user's manager must sign the acknowledgement and mail to:

     Chief, Security and Disclosure Branch

 

     IRS, Martinsburg Computing Center

 

     P.O. Box 1208

 

     Martinsburg, WV 25401

 

 

(d) The users or filers should retain a copy of the signed acknowledgement 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 acknowledgement returned, the filer may submit a data file.

(e) For security reasons, all bisynchronous passwords will expire periodically, and a new password will automatically be assigned. 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 25401

 

     or by calling 1-(304)-263-8700.

 

 

.03 It is the user's responsibility to remember the password and not allow the password to be compromised.

SEC. 3. TEST FILES

.01 Filers are not required to submit a test file. The purpose of test files is to resolve any data or communication problems prior to the filing season. If a filer wishes to submit an electronic test file for Tax Year 1994, it must be submitted to IRS/MCC November 1, 1994, through December 31, 1994.

.02 If a filer encounters problems while transmitting electronic test files, IRS/MCC should be contacted 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 10 workdays of the date the data is received by IRS/MCC.

SEC. 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 Lengthy transmissions are not encouraged since the transmission may be interrupted by line noise problems.

SEC. 5. TRANSMITTAL REQUIREMENTS

.01 All data submitted electronically is verified by transmittal Form 4804. The transmitter must send 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. If a filer chooses to computer-generated 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 filer whose TCC is used in the "A" Record is responsible for submitting the transmittal Form 4804.

.04 Forms 4804 may be mailed to the following addresses:

If by Postal Service:

 

    IRS-Martinsburg Computing Center

 

    ATTN: Electronic Filing Coordinator

 

    P.O. Box 1359

 

    Martinsburg, WV 25401-1359

 

 

If by truck or air freight:

 

    IRS-Martinsburg Computing Center

 

    ATTN: Electronic Filing Coordinator

 

    Route 9 and Needy Road

 

    Martinsburg, WV 25401

 

 

.05 Form 4804 submitted for electronically filed information returns may be faxed to IRS/MCC at the following number: (304) 264-5196. Faxed transmittals will allow IRS/MCC to begin processing the file immediately; however, a filer must still send the actual signed Form 4804 the same day as the electronic transmission.

SEC. 6. IBM 3780 BISYNCHRONOUS COMMUNICATION SPECIFICATIONS

.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, or AT&T 2296A for 9600 bps transmissions. Both 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) 267-0807. For 9600 bps, the circuit will be (304) 267-9572. Both 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 modem 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

SEC. 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 420 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. 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 characters:

 

          Identifier          $$REQUEST ID=MSGFILE

 

          Record

 

 

 21-420   Blank         400   Blank

 

 

ELECTRONIC FILING IDENTIFIER $$REQUEST RECORD--RECORD LAYOUT [ommitted]

.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 media 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      $$ADD           9   Enter the following characters: $$ADD

 

          Identifier          ID=

 

          Record

 

 

 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. This name

 

          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 from

 

          Indicator           the list below:

 

                              O = Original filing

 

                              T = Test File

 

                              C = Correction file

 

                              R = Replacement file

 

 

 45-51    Replacement     7   Use this field only if this is a

 

          File Name           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 (').

 

 

 53-420   Blanks        368   Enter blanks.

 

 

ELECTRONIC FILING IDENTIFIER $$ADD RECORD--RECORD LAYOUT [omitted]

PART D. ASYNCHRONOUS (IRP-BBS) ELECTRONIC FILING SPECIFICATIONS

SEC. 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 filers who are required to file magnetically. It may also be used by those 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 Taxpayer 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 by way of modems 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 "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. Do not use the 8-inch diskette format for electronic filing.

SEC. 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.

SEC. 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 1994, it must be submitted to IRS/MCC November 1, 1994, through December 31, 1994.

.02 If problems are encountered while transmitting the electronic test file, 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.

SEC. 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 several hours of transmission time) into several smaller files. For example, if large files contain several types of returns or payers, transmit each 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 8. 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, COMPRESS, LHARC, and PKZIP. Software data compression can be done alone or in conjunction with V.42bis hardware compression. Transmission time can be reduced by as much as 80 percent when data compression is used; therefore, it is highly recommended.

The time required to transmit information returns electronically will vary depending on the modem 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 more than 80% 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 xmodem protocol:

      Transmission

 

      Speed in bps      500 Records     2500 Records    10000 Records

 

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

 

          2400          2 min 55 sec    10 min 25 sec   55 min 10 sec

 

 

          9600          1 min 05 sec     4 min 35 sec   21 min 20 sec

 

 

         19200                41 sec     2 min 51 sec   13 min 23 sec

 

 

The actual transmission rates will vary depending on the protocol that is used (normally XMODEM-1K and ZMODEM are faster).

.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 they 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.

SEC. 5. TRANSMITTAL REQUIREMENTS

.01 All data submitted electronically is verified against information provided on the Form 4804. 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, or it may be computer generated. 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 filer whose TCC is used in the "A" Record is responsible for submitting the transmittal Form 4804.

.04 Forms 4804 may be mailed to the following addresses:

If by Postal Service:

 

     IRS-Martinsburg Computing Center

 

     ATTN: Electronic Filing Coordinator

 

     P.O. Box 1359

 

     Martinsburg, WV 25401-1359

 

 

If by truck or air freight:

 

     IRS-Martinsburg Computing Center

 

     ATTN: Electronic Filing Coordinator

 

     Route 9 and Needy Road

 

     Martinsburg, WV 25401

 

 

.05 Form 4804 submitted for electronically-filed information returns may be faxed to IRS/MCC at the following number: (304) 264-5196. Faxed transmittals will allow IRS/MCC to begin processing the file immediately; however, filers must still send the actual signed Form 4804 the same day as the electronic transmission.

Note: If a filer is required to submit a large volume of Forms 4804/4802, please mail in lieu of faxing.

SEC. 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 within two workdays of successful processing of the file.

.04 Contact the IRP-BBS by dialing (304) 263-2749. 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 modem.

.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 300 to 14,400 bps. The speed is automatically negotiated for connection at the speed of the calling modem. The communication standards supported include Bell 212A, V.22bis, V.32, and V.32bis. Point-to-point error control is supported using the V.42 CCITT standard or MNP 2-4. Data compression is supported using V.42bis CCITT standard or MNP5.

SEC. 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) # Chars per line on screen (10-132)? (Most computers have 80 character screen display)

(B) Enter the letter, that corresponds to the filer's terminal, from the following:

    IBM PC     IBM w/ANSI                Atari

 

    ADM-3      H19/Z19/H89               Televid 925

 

    TRS-80     Vidtex                    VT-52

 

    VT-100     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.

(C) Upper/lower case, line feed needed, 0 (zero) nulls after each, do you wish to modify this? (Most users answer no)

(D) Do you wish to have a pause after each display page (Y/N)? (Most users answer yes)

(E) How many lines per display page (10-80)? (Most computers have a 24 line screen display)

COMMON USER PROBLEMS

 PROBLEM            PROBABLE CAUSE              SOLUTION

 

 

 File does not      Not starting communication  Start upload/download

 

 upload/download    when prompted by 'Awaiting  on filers end

 

                    Start Signal'

 

 

 All files not      Compressing several files   Compress only one file

 

 processed          into one filename           for every filename

 

 

 Replacement        Original data incorrect     Replacement must be

 

 needed                                         submitted within 45

 

                                                days of original

 

                                                transmission

 

 

 Cannot determine   Not dialing back thru       Within 24 to 48 hours

 

 file status        IRP-BBS to check status     after sending a file,

 

                    of the file                 check under (f)ile

 

                                                status for

 

                                                notification of

 

                                                acceptability

 

 

 Transfer aborts    Transfer protocol           Ensure protocols match

 

 before it starts   mismatched                  on both the sending

 

                                                and receiving ends

 

 

 Loss of carrier    Incorrect modem settings    Reference your modem

 

 during session     on user's end               manual about

 

                                                increasing the value

 

                                                of the S10 register

 

 

 Unreadable         ANSI.SYS driver not         Consult your DOS

 

 screens after      loaded in the user's PC     manual about

 

 selecting "IBM                                 installing ANSI.SYS

 

 w/ANSI"

 

 

IRS ENCOUNTERED PROBLEMS

 PROBLEM            PROBABLE CAUSE              SOLUTION

 

 

 IRS cannot         User did not mail the Form  Mail completed Form

 

 complete final     4804                        4804 the same day

 

 processing of                                  as the electronic

 

 data                                           transmission

 

 

 IRS cannot         User did not indicate       Must enter the

 

 determine which    which file is being         filename that is

 

 file is being      replaced                    being replaced under

 

 replaced                                       the replacement option

 

 

 IRS cannot         User incorrectly indicated  When prompted, enter

 

 determine the      T, P, C, or R for the type  the correct type of

 

 type of file       of file                     file for data being

 

 being sent                                     sent

 

 

 Incorrect file     User did not dial back      Within two workdays

 

 not replaced       thru IRP-BBS to check the   check under (f)ile

 

 within 45 days     status of file              status for

 

                                                notification of

 

                                                acceptability

 

 

 Duplicate data     Transmitter sends           Only submit

 

                    corrections for entire      corrections for

 

                    file                        incorrect records

 

 

PART E. SINGLE DENSITY DISKETTE SPECIFICATIONS

SEC. 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 a single density diskette file and must be strictly adhered to unless deviations have been specifically granted by IRS.

.02 IRS is considering eliminating 8-inch diskettes as an acceptable type of media in the future.

.03 To be compatible, a single density diskette file must meet the following specifications in total:

(a) 8-inches in diameter.

(b) Recorded in EBCDIC.

(c) Contain 77 tracks of which:

(1) Track 0 is the index track (the operating system reserves track 0 for the directory information and writes the file name and location in the directory; data cannot be written in track 0).

(2) Tracks 1 through 73 are data tracks.

(3) Track 74 is unused.

(4) Tracks 75 and 76 are alternate data tracks.

(d) Each Track must contain 26 sectors.

(e) Each Sector must contain 128 bytes.

(f) Data must be recorded on only one side of the diskette.

(g) IRS can process single sided, single density, soft sectored diskettes as well as double sided, double density, soft sectored diskettes. Part E provides specifications for double density diskettes which have sectors of 256 bytes.

(h) An IBM 5360 compatible diskette would meet the above specifications.

(i) Hard sectored diskettes are not compatible.

(j) A diskette should be clearly marked as to type of data (single sided/single density), and the entire file should consist of all single sided/single density diskettes.

.04 Exchange files are created through the Transfer command and Copyfile files are created through the Copy command. In order to do this, initialize the diskettes using the FORMAT parameter in the INIT procedure. IRS/MCC encourages filers to use blank or currently formatted diskettes when preparing files. If extraneous data follows the end of file "F" Record, the file must be returned for replacement.

.05 Form 5064, Media Label, must be affixed to each diskette submitted for processing.

SEC. 2. DISKETTE HEADER LABEL

The following header label format applies to both single and double density diskettes.

The header label on the diskette must be located in track 0, sector 8 and must be formatted as shown in the following layout. IRS/MCC does not require this information. If the file will consist of multiple diskettes, the Multi-Volume indicator (pos. 45) in the diskette header label must contain a "C."

Record Layout [omitted]

(a) Header 1--Positions 1 through 4; enter HDR1.

(b) Unused--Any field marked blank is unused and should contain only blanks.

(c) Data Set (File) Name--Positions 6 through 13; use this field to identify the data set. The Data Set Name must begin with an alphabetic character. This name should be the same for every diskette in a file.

(d) Sector Length--Positions 23 through 27; enter the sector length 128 in positions 25-27 and fill positions 23 and 24 with zeros.

(e) Beginning of Data--Positions 29 through 33; enter the five-digit address designated for the first record of this data set, xx0yy (xx = track number, yy = sector number). For example, if the first record is in track 01, sector 02, enter 01002.

(f) End of Data--Positions 35 through 39; enter the five-digit address of the last position of the diskette reserved for this data set. For example, to reserve the entire diskette for a data set, enter 73026.

(g) Bypass Data Set--Position 41; this field not accessed by IRS; any character is acceptable.

(h) Data Set Accessibility--Position 42; this field not accessed by IRS; any character is acceptable.

(i) Write Protect--Position 43; this field defines the protected status of the associated data set. P = read only; blank = read/write. With P in this position, a filer can only select the Update (U) mode.

(j) Position 44 is blank for Single Sided/Single Density diskettes.

(k) Multi-Volume--Position 45; this field indicates whether a complete data set is on a diskette. Blank = data set complete; C = data set continued on another diskette; L = last diskette of a multi-diskette data set.

(l) Sequence Number--For Copyfile files only. Sequentially ascending numbers must be entered in every diskette header label.

(m) Expiration Date--Positions 67 through 72; may be used to contain the date that the data set expires, YYM-MDD (YY = year, MM = month, DD = day). This field is not accessed by IRS; any characters are acceptable.

(n) Verify Mark--Position 73; this field is used to indicate the data set was verified. If verified enter V, if not enter a blank.

(o) Next Available Data Position--Positions 75-79. Enter the address of the next available position after End of Data (f). In positions 75 and 76 enter the track number, in position 77 enter a "0" (zero), and in positions 77-78 enter the sector number.

SEC. 3. PAYER/TRANSMITTER "A" RECORD--GENERAL INFORMATION

.01 The Payer/Transmitter "A" Record identifies the payer and transmitter of the diskette and 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 After the header label on the diskette, the first record in the file must be an "A" Record. When a single density diskette is used, each "A" Record will consist of at least 2 sectors of 128 positions each. If a payer is transmitting for someone other than themselves, 4 sectors are required in order to identify both the payer and transmitter.

.05 A transmitter may include "B" Records for more than one payer on a diskette. However, each group of "B" Records must be preceded by an "A" Record and followed by an End of Payer "C" Record. A diskette may contain different types of returns, but the returns must not be intermingled. A separate "A" Record is required for each payer and each type of return being reported.

.06 An "A" Record may be blocked with "B" Records; however, the initial record on a file must be an "A" Record. IRS will accept an "A" Record after a "C" Record.

.07 All alpha characters entered in the "A" Record must be uppercase.

.08 When filing Form 1098, Mortgage 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.

RECORD NAME: PAYER/TRANSMITTER "A" RECORD

Note: For all fields marked Required, a transmitter must provide the information described under Description and Remarks. For fields not marked Required, a transmitter must allow for the field but may be instructed to enter blanks or zeros in the indicated diskette position(s) and for the indicated length.

SECTOR 1

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter "1" (one) to sequence

 

          Sequence            the sectors making up an "A" Record.

 

 

 2        Record Type     1   Required. Enter "A"

 

 

 3-4      Payment Year    2   Required. Enter "94" (unless

 

                              reporting prior-year data).

 

 

 5-7      Diskette        3   The diskette sequence number is

 

          Sequence            incremented by 1 for each diskette on

 

          Number              the file starting with 001. The

 

                              transmitter may enter blanks or zeros in

 

                              this field. IRS/MCC bypasses this

 

                              information. Indicate the proper

 

                              sequence on the external label Form

 

                              5064.

 

 

 8-16     Payer's TIN     9   Required. Must be the valid

 

                              nine-digit Taxpayer Identification

 

                              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. For foreign entities not

 

                              required to have a TIN, this field may

 

                              be blank; however, the Foreign Entity

 

                              Indicator, position 50, Sector 1, of the

 

                              "A" Record should be set to "1" (one).

 

 

 17-20    Payer Name      4   The Payer Name Control can be obtained

 

          Control             only from the mail label on the Package

 

                              1099 that is mailed to most payers each

 

                              December. To distinguish between the

 

                              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.

 

 

 21       Last Filing     1   Enter a "1" (one) if this is the last

 

          Indicator           year the payer will file, otherwise,

 

                              enter blank. Use this indicator if, due

 

                              to a merger, bankruptcy, etc., the payer

 

                              will not be filing information returns

 

                              under this payer name and TIN in the

 

                              future either magnetically,

 

                              electronically or on paper.

 

 

 22       Combined       1    Required for the Combined Federal/State

 

          Federal/State       filing program. Enter "1" (one) if

 

          Payer               participating in the Combined

 

                              Federal/State Filing Program; otherwise,

 

                              enter blank. Refer to Part A, Sec. 16,

 

                              for further information. Forms 1098,

 

                              1099-A, 1099-B, 1099-C, 1099-S, and

 

                              W-2G cannot be filed under this program.

 

 

 23       Type of         1   Required. Enter appropriate code

 

          Return              from the table below:

 

 

                              Type of Return                    Code

 

                              1098                                3

 

                              1099-A                              4

 

                              1099-B                              B

 

                              1099-C                              5

 

                              1099-DIV                            1

 

                              1099-G                              F

 

                              1099-INT                            6

 

                              1099-MISC                           A

 

                              1099-OID                            D

 

                              1099-PATR                           7

 

                              1099-R                              9

 

                              1099-S                              S

 

                              5498                                L

 

                              W-2G                                W

 

 

 24-32    Amount Codes    9   Required. Enter the appropriate

 

          (See Note)          amount code for the type of return being

 

                              reported. Generally, for each amount

 

                              code entered in this field, a

 

                              corresponding payment amount should

 

                              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/electronically. However, if

 

                              discrepancies occur, this revenue

 

                              procedure governs.

 

 

      Example: If Sector 1, position 23 of the "A" Record is "7"

 

 (for 1099-PATR) and positions 24-32 are "247bbbbbb" (b = blanks),

 

 this indicates the payer is reporting three payment amounts in all of

 

 the following "B" Records.

 

 

      The first payment amount field in the "B" Record will be

 

 all  "0" (zeros);

 

 

      the second will represent nonpatronage distributions;

 

 

      the third will be all "0" (zeros);

 

 

      the fourth will represent federal income tax withheld;

 

 

      the fifth and sixth will be all "0" (zeros);

 

 

      the seventh will represent energy investment credit; and,

 

 

      the eight and ninth will be all "0" (zeros).

 

 

 Enter the Amount Codes in ascending sequence (i.e., 247bbbbbb,

 

 b = blanks) left justify, filing unused positions with blanks. For

 

 further clarification of the Amount Codes, contact IRS/MCC.

 

 

 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 1994 "Instructions for Forms 1099, 1098,

 

 5498, and W-2G".

 

 

 Amount Codes Form 1098       For Reporting Mortgage Interest Received

 

 --Mortgage Interest          from Payers/Borrowers (Payer of Record)

 

 Statement                    on Form 1098:

 

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Mortgage interest received from

 

 

                                       payers/borrowers

 

                              2        Points paid directly by

 

                                       payers/borrowers on purchase of

 

                                       principal residences

 

                              3        Refund of overpaid interest

 

 

 Amount Codes Form            For Reporting the Acquisition or

 

 1099-A--Acquisition or       Abandonment of Secured Properly on Form

 

 Abandonment of Secured       1099-A:

 

 Property

 

                              Amount

 

                              Code      Amount Type

 

 

                              2        Balance of principal

 

                                       outstanding

 

                              3        Gross foreclosure proceeds

 

                              4        Appraisal value

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-B:

 

 1099-B--Proceeds from

 

 Broker and Barter            Amount

 

 Exchange 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 in 1994

 

                                       on Regulated Futures Contract.

 

                                       (See Note 2.)

 

                              7        Unrealized profit or loss on

 

                                       open contracts--12/31/93. (See

 

                                       Note 2.)

 

                              8        Unrealized profit or loss on

 

                                       open contracts--12/31/94. (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 represent a loss when the reporting is for forward

 

 contracts. 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 for the

 

 reporting of Regulated Futures Contracts.

 

 

 Amount Codes Form            For Reporting Cancellation of Debt

 

 1099-C--Cancellation of      on Form 1099-C:

 

 Debt

 

                              Amount

 

                              Code      Amount Type

 

 

                              2        Amount of debt canceled (see

 

                                       Note)

 

                              3        Interest included in Amount

 

                                       Code 2

 

                              4        Penalties, fines or

 

                                       administrative costs included

 

                                       in Amount Code 2

 

 

 Note: A debt is any amount owed to the debtor including

 

 principal, interest, penalties, administrative costs, and fines, to

 

 the extent they are indebtedness under section 61(a)(12). The amount

 

 of debt discharged or canceled may be all or only part of the total

 

 amount owed. See the 1994 "Instructions for Forms 1099, 1098, 5498,

 

 and W-2G" for further information.

 

 

 Amount Codes Form 1099-DIV   For Reporting Payments on Form

 

 --Dividends and              1099-DIV:

 

 Distributions

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Gross dividends and other

 

                                       distributions on stock (see

 

                                       Note)

 

                              2        Ordinary dividends (see Note)

 

                              3        Capital gain distributions (see

 

                                       Note)

 

                              4        Nontaxable distributions (if

 

                                       determinable) (see Note)

 

                              5        Investment expenses (see Note)

 

                              6        Federal income tax withheld

 

                                       (backup withholding)

 

                              7        Foreign tax paid

 

                              8        Cash liquidation distributions

 

                              9        Noncash liquidation

 

                                       distributions (show fair market

 

                                       value)

 

 

 Note: Amount Code 1 must be present (unless the payer is

 

 using Amount Codes 8 or 9 only) and must equal the sum of amounts

 

 reported for Amount Codes 2, 3, 4 and 5. If an amount is present for

 

 Amount Code 1, there must be an amount present for Amount Codes 2-5

 

 as applicable.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-G--Certain              1099-G:

 

 Government Payments

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Unemployment compensation

 

                              2        State or local income tax

 

                                       refunds, credits or offsets

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

                              6        Taxable grants

 

                              7        Agriculture payments

 

 

 NOTE: Payments previously reported under Amount Code 5 for

 

 discharge of indebtedness are now reportable on Form 1099-C.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-INT--Interest Income    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            For Reporting Payments on Form

 

 1099-MISC--Miscellaneous     1099-MISC:

 

 Income

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Rents (see Note 1)

 

                              2        Royalties (see Note 2)

 

                              3        Other income (see Note 3)

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

                              5        Fishing boat proceeds

 

                              6        Medical and health care

 

                                       payments

 

                              7        Nonemployed compensation or

 

                                       crop insurance proceeds (see

 

                                       Note 4)

 

                              8        Substitute payments in lieu of

 

                                       dividends or interest

 

                              9        Excess golden parachute

 

                                       payments

 

 

 Note 1: If reporting the Direct Sales Indicator only, use

 

 Type of Return Code A for 1099-MISC in position 23 and Amount Code 1

 

 in position 24 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 should be reported on Form 1099-S.

 

 

 Note 3: Amount Code 3 previously was entitled "Prizes, awards,

 

 etc.". The title was changed to read "Other income".

 

 

 Note 4: Amount Code 7 is normally used to report nonemployed

 

 compensation. However, Amount Code 7 may also be used to report crop

 

 insurance proceeds. See positions 5-6, Sector 1, of the "B" Record

 

 for instructions. If nonemployed compensation and crop insurance

 

 proceeds are being paid to the same payee, a separate "B" Record for

 

 each transaction is required.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-OID--Original Issue     1099-OID:

 

 Discount

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Original issue discount for

 

                                       1994

 

                              2        Other periodic interest

 

                              3        Early withdrawal penalty

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-PATR--Taxable           1099-PATR:

 

 Distributions Received

 

 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

 

                              6        Investment credit (see Note)

 

                              7        Energy investment credit (see

 

                                       Note)

 

                              8        Jobs credit (see Note)

 

 

 Note: The amounts shown for Amount Codes 6, 7, and 8 must be

 

 reported to the payee; they need not be reported to IRS.

 

 

      If reporting Pass-Through Alternative Minimum Tax

 

 Adjustments, the total alternative minimum tax (AMT) patronage

 

 dividend adjustment for the patron and/or the total AMT per-unit

 

 retain allocation adjustment should be entered in the Special Data

 

 Entries Field of the Payee "B" Record.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-R:

 

 1099-R--Distributions

 

 From Pensions, Annuities,

 

 Retirement or

 

 Profit-Sharing Plans, IRAs,

 

 Insurance Contracts, etc.

 

 (See Note 1)                 Amount

 

                              Code      Amount Type

 

 

                              1        Gross distribution (see Note 2)

 

                              2        Taxable amount (see Note 3) or

 

                                       IRA/SEP distributions

 

                              3        Capital gain (included in

 

                                       Amount Code 2).

 

                              4        Federal income tax withheld

 

                                       (see Note 4)

 

                              5        Employee contributions or

 

                                       insurance premiums

 

                              6        Net unrealized appreciation in

 

                                       employer's securities

 

                              8        Other

 

                              9        State income tax withheld (see

 

                                       Note 5)

 

 

 Note 1: Additional information may be required in the "B"

 

 Record. Refer to positions 45 through 49, Sector 1, of the "B"

 

 Record.

 

 

 Note 2: If the payment shown for Amount Code 1 is a total

 

 distribution, enter a "1" (one) in position 48, Sector 1, of the "B"

 

 Record. An amount must be shown in Amount Field 1.

 

 

 Note 3: 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 aftertax contributions, enter the value of the

 

 stock in Amount Code 1, enter "0" (zero) in Amount Code 2, and enter

 

 the employee's contributions in Amount Code 5.

 

 

      If the taxable amount cannot be determined, enter a "1" (one) in

 

 position 49 of the "B" Record. If reporting an IRA/SEP distribution,

 

 generally include the amount of the distribution in the Taxable

 

 Amount (Payment Amount Field 2, position 62-71) and enter a "1" (one)

 

 in the IRA/SEP Indicator Field, (position 45). A "1" (one) may be

 

 entered in the Taxable Amount Not Determined Indicator Field

 

 (position 49) Sector 1 of the "B" Record, but the amount of the

 

 distribution must still be reported in Payment Amount Field 2. See

 

 the explanation for Box 2a of Form 1099-R in the 1994 "Instructions

 

 for Forms 1099, 1098, 5498, and W-2G" for more information on

 

 reporting the taxable amount.

 

 

 Note 4: See the 1994 "Instructions for Forms 1099, 1098, 5498,

 

 and W-2G" for further information concerning federal income tax

 

 

 withheld for Form 1099-R.

 

 

 Note 5: State income tax withheld has been added for the

 

 convenience of the payer but need not be reported to IRS. Local

 

 income tax may be reported in the Special Data Entries Field in the

 

 Payee "B" Record.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-S:

 

 1099-S--Proceeds from

 

 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. For more information, see Ann. 90-129, 1990-48

 

 I.R.B. 10.

 

 

 Amount Codes Form            For Reporting Payments on Form 5498:

 

 5498--Individual

 

 Retirement Arrangement

 

 Information (See Note)       Amount

 

                              Code      Amount Type

 

 

                              1        Regular IRA contributions (See

 

                                       Note) made in 1994 and 1995 for

 

                                       1994

 

                              2        Rollover IRA contributions

 

                              3        Life insurance cost included in

 

                                       Amount Code 1

 

                              4        Fair market value of the

 

                                       account

 

 

 Note: For information regarding Inherited IRAs, refer to

 

 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 Shield/Storm

 

 participant for other than 1994, enter "DS", 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 further information concerning Inherited IRAs or Desert

 

 Shield/Storm participant reporting, refer to the 1994 "Instructions

 

 for Forms 1099, 1098, 5498, and W-2G", and Notice 91-17, 1991-1 C.B.

 

 319.

 

 

 Amount Codes Form            For Reporting Payments on Form W-2G:

 

 W-2G--Certain Gambling

 

 Winnings

 

                              Amount

 

                              Code      Amount Type

 

 

                              1        Gross winnings

 

                              2        Federal income tax withheld

 

                              3        State income tax withheld (see

 

                                       Note)

 

                              7        Winnings from identical wagers

 

 

 Note: State income tax withheld was added for the convenience

 

 of the payer but need not be reported to IRS/MCC.

 

 

 33       Test           1    Required. Enter "T" if this is a test

 

          Indicator           file, otherwise, enter a blank.

 

 

 34       Service        1    Enter "1" (one) if the payer used a

 

          Bureau              service bureau to develop and/or

 

          Indicator           transmit files, otherwise, enter blank.

 

                              See Part A, Sec. 17 for the definition

 

                              of a service bureau.

 

 

 35-44    Blank         10    Enter blanks

 

 

 45-49    Transmitter    5    Required. Enter the five character

 

          Control Code        alpha/numeric Transmitter Control Code

 

          (TCC)               assigned by IRS/MCC. A TCC must be

 

                              obtained to file data on this program.

 

                              Do not enter more than one TCC per file.

 

 

 50       Foreign        1    Enter a "1" (one) if the payer is a

 

          Entity              foreign entity and income is paid by the

 

          Indicator           entity to a U.S. resident. If the payer

 

                              is not a foreign entity, enter a blank.

 

                              (See Note)

 

 

 Note: If a payer erroneously reports entities as foreign, they

 

 may be subject to a penalty for providing incorrect information to

 

 IRS. Therefore, payers must be sure to code only those records as

 

 foreign corporations that should be coded.

 

 

 51-90    First Payer   40    Required. Enter the name of the payer

 

          Name Line           whose TIN appears in Sector 1, position

 

                              8-16 of the "A" Record. Any extraneous

 

                              information must be deleted. Left

 

                              justify and fill 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,

 

 the "A" Record will reflect the name and TIN of the recipient of the

 

 interest/the filer of Form 1098 (the payer). The "B" Record will

 

 reflect the individual paying the interest (the 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 Form

 

 1099-S) and the "B" Record will reflect the seller/transferor.

 

 

 91-128   Blank         38    Enter blanks

 

 

 SECTOR 2

 

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "A"

 

 

 3-42     Second Payer   40   If the Transfer Agent Indicator (Sector

 

          Name Line           2, position 43) contains a number "1"

 

                              (one), this field must contain the name

 

                              of the transfer 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 and fill unused positions with

 

                              blanks.

 

 

 43       Transfer        1   Required. Identifies the entity in the

 

          Agent               Second Payer Name Line Field. (See Part

 

          Indicator           A, Sec. 17 for a definition of transfer

 

                              agent.)

 

 

                              Code         Meaning

 

 

                              1         The entity in the Second Payer

 

                                        Name Line Field is the

 

                                        transfer agent.

 

                              0 (zero)  The entity shown is not

 

                                        the transfer agent (i.e., the

 

                                        Second Payer Name Line Field

 

                                        contains either a continuation

 

                                        of the First Payer Name Line

 

                                        Field or blanks).

 

 

 44-83    Payer          40   Required. If the Transfer Agent

 

          Shipping            Indicator in Sector 2, position 43 is a

 

          Address             "1" (one), enter the shipping address of

 

                              the transfer agent. Otherwise, enter the

 

                              actual shipping address of the payer.

 

                              Street address should include number,

 

                              street, apartment or suite number (or P.

 

                              O. Box if mail is not delivered to

 

                              street address). Left justify and fill

 

                              with blanks.

 

 

 84-123   Payer City,    40   Required. If the Transfer Agent

 

          State, and          Indicator in Sector 2, position 43 is a

 

          ZIP Code            "1" (one), enter the city, town, or post

 

                              office, state abbreviation and ZIP Code

 

                              of the transfer agent, otherwise, enter

 

                              the actual city, town, or post office,

 

                              state abbreviation and ZIP Code of the

 

                              payer. Left justify and fill with

 

                              blanks.

 

 

 124-128  Blank           5   Enter blanks

 

 

 SECTOR 3  Sectors 3 and 4 are only required if the payer and

 

           transmitter are not the same.

 

 

 1        Record          1   Required. Enter a "3" to sequence the

 

          Sequence            sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "A"

 

 

 3-82     Transmitter    80   Required if the payer and transmitter

 

          Name                are not the same. Enter the name of the

 

                              transmitter in the manner in which it is

 

                              used in normal business. The name of the

 

                              transmitter must be reported in the same

 

                              manner throughout the entire file. Left

 

                              justify and fill with blanks. If the

 

                              payer and transmitter are the same, this

 

                              field may be blank.

 

 

 83-122   Transmitter    40   Required if payer and transmitter are

 

          Mailing             not the same. Enter the mailing address

 

          Address             of transmitter. Street address should

 

                              include number, street, apartment or

 

                              suite number (or P.O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify and fill with blanks. If the

 

                              payer and transmitter are the same, this

 

                              field may be blank.

 

 

 123-128  Blank           6   Enter blanks

 

 

 SECTOR 4  Sectors 3 and 4 are only required if the payer and

 

           transmitter are not the same.

 

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "A"

 

 

 3-42     Transmitter    40   Required if the payer and transmitter

 

          City, State         are not the same. Enter the city, town,

 

          and ZIP Code        or post office, state abbreviation and

 

                              Zip Code of the transmitter. Left

 

                              justify and fill with blanks. If the

 

                              payer and transmitter are the same, this

 

                              field may be blank.

 

 

 43-128   Blank          86   Enter blanks

 

 

SEC. 4. PAYER/TRANSMITTER "A" RECORD LAYOUT [omitted]

SEC. 5. PAYEE "B" RECORD--GENERAL INFORMATION FOR ALL FORMS

.01 The "B" Record contains the payment information from individual returns. This section contains the general information concerning the Payee "B" Record for all information returns filed on single sided/single density soft-sectored diskettes. For a detailed description of the record refer to the following:

(a) Sec. 6, PAYEE "B" RECORD--FIELD DESCRIPTIONS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G.

(b) Sec. 7, PAYEE "B" RECORD LAYOUTS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G.

(c) Sec. 8, PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-A.

(d) Sec. 9, PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-B.

(e) Sec. 10, PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-C.

(f) Sec. 11, PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-OID.

(g) Sec. 12, PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-S.

(h) Sec. 13, PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM W-2G.

All "B" Records must consist of at least 3 sectors of 128 positions each. If a payer is not a Combined Federal/State payer or utilizing the Special Data Entries Field, Sector 4 can be eliminated for Forms 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, and 5498.

The "B" Record will always consist of 4 Sectors for Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S, and W-2G.

In the "A" Record, the Amount Codes that appear in diskette positions 24 through 32 of Sector 1 will be left-justified and blank filled. In the "B" Record, allow for all nine Payment Amount Fields. For those fields not used, enter zeros. For example, if a payer is reporting on Form 1099-PATR, enter a "7" in diskette position 23 of Sector 1 of the "A" Record, Type of Return Field. If a payer is reporting payments for Amount Codes 2, 4, and 7, then diskette positions 24 through 32 of Sector 1 of the "A" Record will be "247bbbbbb" (b = blanks). In the "B" Record:

Positions 52 through 61 of Sector 1 for Payment Amount 1 will be zeros.

Positions 62-71 of Sector 1 will reflect the actual payment amount to be reported for "nonpatronage distributions".

Positions 72-81 of Sector 1 for Payment Amount 3 will be zeros.

Positions 82-91 of Sector 1 will reflect the actual payment amount to be reported for "federal income tax withheld".

Positions 92-111 of Sector 1 for Payment Amounts 5 and 6 will be zeros.

Positions 112-121 of Sector 1 will reflect the actual payment amount to be reported for "energy investment credit".

Positions 3-22 of Sector 2 for Payment Amounts 8 and 9 will be zeros.

.02 The record layout for Sectors 1, 2 and 3 is the same for all "B" Records. Sector 4, however, will be different for Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S and W-2G. Refer to Part E, Sec. 8, 9, 10, 11 or 12, respectively for the layout of Sector 4 of these records.

.03 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 filers.

.04 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 generating the Name Control:

(a) The surname of the payee whose SSN 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.

(b) In the case of multiple payees, only the surname of the payee whose TIN (SSN or EIN) 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.

.05 See Part A, Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).

.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 payer. 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 Entries Field. If this field is coded, it will not affect the processing of the "B" Records.

.07 Those payers participating in the Combined Federal/State Filing Program must adhere to all specifications in Part A, Sec. 16, in order to participate in this program. Forms 1098, 1099-A, 1099-B, 1099-C, 1099-S and W-2G cannot be filed under the Combined Federal/State Filing Program.

.08 All alpha characters entered in the "B" Record should be uppercase.

.09 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 0000001000 in the payment amount field.

.10 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.

.11 When reporting Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest/the filer of the Form 1098 (the payer). The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Forms 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.

SEC. 6. PAYEE "B" RECORD--FIELD DESCRIPTIONS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G

For Forms 1099-A, 1099-B, 1099-C, 1099-DIV 1099-S, and W-2G, see Part D, Sec. 8, 9, 10, 11 and 12, respectively for the field descriptions and record layouts for Sector 4 of these records.

Note: 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 position(s) and for the indicated length.

RECORD NAME: PAYEE "B" RECORD

SECTOR 1

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "1" (one) to sequence

 

          Sequence            the sectors making up a payee Record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-4      Payment Year    2   Required. Enter "94" (unless reporting

 

                              for a prior year)

 

 

 5-6      Document        2   Required for Forms 1099-G, 1099-MISC,

 

          Specific/           1099-R and W-2G. For all other forms or

 

          Distribution        if not used, enter blanks.

 

          Code

 

 

          Tax Year of         For Form 1099-G, use only for reporting

 

          Refund (Form        the tax year for which the refund, credit

 

          1099-G only)        or offset (Amount Code 2) was issued.

 

                              Enter in position 5; position 6 must be

 

                              blank.

 

 

                              If the refund, credit or offset is not

 

                              attributable to income tax from a trade

 

                              or business, enter the numeric year from

 

                              the table below for which the refund,

 

                              credit or offset was issued (e.g., for

 

                              1993, enter 3).

 

 

                              If the refund, credit, or offset is not

 

                              attributable to income from a trade or

 

                              business, and is not of general

 

                              application, enter the alpha equivalent

 

                              of the year from the table below (e.g.,

 

                              for 1993, enter C).

 

 

                                                     Year for Which

 

                                Year for Which       Trade/Business

 

                                    General        Refund Was issued

 

                               Refund was Issued     (Alpha Equivalent)

 

 

                                       1                    A

 

                                       2                    B

 

                                       3                    C

 

                                       4                    D

 

                                       5                    E

 

                                       6                    F

 

                                       7                    G

 

                                       8                    H

 

                                       9                    I

 

                                       0                    J

 

 

          Crop                For Form 1099-MISC, enter a "1" (one) in

 

          Insurance           position  5 if the payment reported for

 

          Proceeds            Amount Code only  7 is crop insurance

 

          (Form 1099-MISC     proceeds. Position 6 will be blank.

 

          only)

 

 

          Distribution        For Form 1099-R, enter the appropriate

 

          Code (Form          distribution code(s). More than one code

 

          1099-R only)        may apply for Form 1099-R. If only one

 

          (For a detailed     code is required, it must be entered in

 

          explanation         position 5 and position 6 must be blank

 

          of the              Enter at least one (1) distribution code.

 

          distribution        A blank in position 5 is not

 

          codes, see the      acceptable.

 

          1994

 

          "Instructions

 

          for Forms 1099

 

          1098, 5498

 

          and W-2G.")

 

 

                              Enter the applicable code from the table

 

                              that follows. Position 5 must contain a

 

                              numeric code in all cases except when

 

                              using P, D, E, F, G, or H. Distribution

 

                              Code A, B, or C, when applicable, must

 

                              be entered in position 6 with the

 

                              applicable numeric code in position 5.

 

                              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 if applicable.

 

 

                              Only two numeric combinations are

 

                              acceptable, codes 8 and 1, and codes 8

 

                              and 2, on one return. These two

 

                              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, 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, if

 

                              applicable. Refer to Announcement 93-20,

 

                              1993-6 I.R.B. 65.

 

 

                              Category                          Code

 

 

                              Early (premature) distribution,

 

                              no known exception                 1 /*/

 

                              Early (premature) distribution,

 

                              exception applies (as defined in

 

                              section 72(q), (t), or (v) of the

 

                              Internal Revenue Code) other than

 

                              disability or death                2 /*/

 

                              Disability                         3 /*/

 

                              Death (includes payments to a

 

                              beneficiary)                       4 /*/

 

                              Prohibited transaction             5 /*/

 

                              Section 1035 exchange              6

 

                              Normal distribution                7 /*/

 

                              Excess contributions plus

 

                              earnings/excess deferrals (and/or

 

                              earnings) taxable in 1994          8 /*/

 

                              PS 58 costs                        9

 

                              Excess contributions plus

 

                              earnings/excess deferrals taxable

 

                              in 1993                            P /*/

 

                              Eligible for 5 or 10 year

 

                              averaging                          A

 

                              Eligible for death benefit

 

                              exclusion                          B

 

 

                              Category                     Code

 

 

                              Eligible for both A and B       C

 

                              Excess contributions plus

 

                              earnings/excess deferrals

 

                              taxable in 1992                 D /*/

 

                              Excess annual additions under

 

                              section 415                     E

 

                              Charitable gift annuity         F

 

                              Direct rollover to IRA          G

 

                              Direct rollover to qualified

 

                              plan or tax-sheltered annuity   H

 

 

      /*/ If reporting an IRA or SEP distribution, code a "1" (one) in

 

 position 44 of the "B" Record.

 

 

          Type of             For Form W-2G, enter the applicable

 

          Wager               code in position 5. Position 6 will be

 

          (Form W-2G          blank.

 

          only)               Category                     Code

 

                              Horse race track (or off-track

 

                              betting of a horse track nature)     1

 

                              Dog race track (or off-track

 

                              betting of a dog track nature)       2

 

                              Jai-alai                             3

 

                              State-conducted lottery              4

 

                              Keno                                 5

 

                              Casino-type bingo. Do not use this

 

                              code for any other type of bingo

 

                              winnings (e.g., church or fire

 

                              dept.).                                6

 

                              Slot machines                          7

 

                              Any other type of gambling

 

                              winnings. (This includes church

 

                              bingo, fire dept. bingo, or

 

                              unlabeled winnings.)                   8

 

 

 7        2nd TIN         1   For Forms 1099-B, 1099-DIV, 1099-INT,

 

          Notice              1099-MISC, 1099-OID, and 1099-PATR

 

                              only.

 

 

                              Enter "2" to indicate notification by

 

                              IRS twice within 3 calendar years that

 

                              the payee provided an incorrect name

 

                              and/or TIN combination, otherwise, enter

 

                              a blank.

 

 

 8        Corrected       1   Indicate a corrected return.

 

          Return

 

          Indicator           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.

 

 

 9-12     Name Control    4   If determinable, enter the first four

 

                              (4) characters of the surname of the

 

                              person whose TIN is being reported in

 

                              positions 16-24 of the "B" Record,

 

                              otherwise, enter blanks. This is usually

 

                              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 (4) characters should be

 

                              left-justified, filling the unused

 

                              positions with blanks. Special

 

                              characters and imbedded blanks should be

 

                              removed. In the case of a business,

 

                              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 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 (e.g., Mr., Mrs., Dr., apostrophe, or dash),

 

 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     HEML

 

                           c/o 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

 

                          Sheila Blue Estate              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 (4) 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.

 

 

 13       Direct Sales    1   Form 1099-MISC only. Enter a "1" (one)

 

          Indicator           to indicate sales of $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 Direct Sales only, use Type of Return

 

 A in position 23 and, Amount Code 1 in position 24 of the Payer "A"

 

 Record. All payment amount fields in the Payee "B" Record will

 

 contain zeros.

 

 

 14       Blank           1   Enter blank

 

 

 15       Type of TIN     1   This field is used to identify the

 

                              Taxpayer Identification Number (TIN) in

 

                              positions 16-24 as either an Employer

 

                              Identification Number (EIN) or a Social

 

                              Security Number (SSN). /*/ Enter the

 

                              appropriate code from the following

 

                              table:

 

 

                              Type of

 

                                TIN       TIN    Type of Account

 

 

                                 1        EIN    A business,

 

                                                 organization, or

 

                                                 other entity

 

                                 2        SSN    An individual

 

                               blank      N/A    If the type of TIN

 

                                                 is not determinable,

 

                                                 enter a blank.

 

 

      /*/ While this is not a "Required" field, this information is

 

 important for the correct processing of the payee's TIN.

 

 

 16-24    Taxpayer        9   Required. Enter the nine-digit Taxpayer

 

          Identifi-           Identification Number of the payee (SSN

 

          cation              or EIN). If an identification number has

 

          Number              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 erroneous notices. 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 (B Notices) or penalties for missing or

 

 incorrect TIN.

 

 

 25-44    Payer's        20   Enter any number assigned by the payer

 

          Account             to the payee (e.g., checking or savings

 

          Number for          account number). Filers are encouraged

 

          Payee               to use this field. This number helps to

 

                              distinguish individual payee records and

 

                              should be unique for each account. 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 from the IRS 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.

 

 

 45       IRA/SEP         1   Form 1099-R only. Enter "1" (one) if

 

          Indicator           reporting a distribution from an IRA or

 

          (See Note)          SEP; otherwise, enter a blank.

 

 

 Note: Generally, report the total amount distributed from an

 

 IRA or SEP in Payment Amount Field 2 (Taxable Amount), as well as

 

 Payment Amount Field 1 (Gross Distribution) of the "B" Record. A

 

 payer may indicate the taxable amount was not determined by using the

 

 Taxable Amount Not Determined Indicator (position 49) of the "B"

 

 Record. However, still report the amount distributed in Payment

 

 Amount Field 2.

 

 

 46-47    Percentage      2   Form 1099-R only. Use this field when

 

          of Total            reporting a total distribution to more

 

          Distribution        than one person, such as when a

 

                              participant dies 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 or more will

 

                              be 11 percent). Enter the percentage

 

                              received by the person whose TIN is

 

                              included in positions 16-24 of the "B"

 

                              Record. This field must be right-

 

                              justified, and unused positions

 

                              must be zero filled. If not applicable,

 

                              enter blanks. A payer need not enter

 

                              this information for IRA or SEP

 

                              distributions or for direct rollovers.

 

 

 48       Total           1   Form 1099-R only. Enter a "1" (one) only

 

          Distribution        if the payment shown for Amount Code 1

 

          Indicator           is 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.

 

 

 49       Taxable         1   Form 1099-R only. Enter a "1" (one) only

 

          Amount Not          if the taxable amount of the payment

 

          Determined          entered for Payment Amount Field (Gross

 

          Indicator           Distribution) of the "B" Record, cannot

 

                              be computed, otherwise, enter blank. If

 

                              the Taxable Amount Not Determined

 

                              Indicator is used, enter "0" (zeros) in

 

                              Payment Amount Field 2 of the Payee "B"

 

                              Record unless the IRA/SEP Indicator is

 

                              present. (See Note) Please make every

 

                              effort to compute the taxable amount.

 

 

 Note: If reporting an IRA/SEP Distribution for Form 1099-R, the

 

 Taxable Amount Not Determined Indicator may be used; but, it is not

 

 required. If the IRA/SEP Indicator is present, the amount of the

 

 distribution should be reported in Payment Amount Field 2. Refer to

 

 the 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" for more

 

 information.

 

 

      Filers are instructed to 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.

 

 

 50-51    Blank           2   Enter blanks

 

 

          Payment             Required. Filers must allow for all

 

          Amount              payment amounts. For those not used,

 

          Fields              filers must enter zeros. For example: If

 

          (Must be            position 23, Type of Return, of the "A"

 

          numeric)            Record is "7" (for 1099-PATR) and

 

                              positions 24-32, Amount Codes, are

 

                              "247bbbbbb", (b = blank), this indicates

 

                              three actual payment amounts are being

 

                              reported in the following "B" Records.

 

                              Payment Amount 1 will be all "0"

 

                              (zeros), Payment Amount 2 will represent

 

                              Nonpatronage Distributions, Payment

 

                              Amount 3 will be all "0" (zeros),

 

                              Payment Amount 4 will represent federal

 

                              income tax withheld, Payment Amounts 5

 

                              and 6 will be all "0" (zeros), Payment

 

                              Amount 7 will represent energy

 

                              investment credit, and Payment Amounts 8

 

                              and 9 will be all "0" (zeros). Each

 

                              payment field must contain 10 numeric

 

                              characters (see Note). Each payment

 

                              amount must be entered in 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 sign) or "-" (minus

 

                              sign) in the left-most position of the

 

                              payment amount field. A negative

 

                              overpunch 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 overpunch

 

                              is not used, the number is assumed to be

 

                              positive. Negative overpunch 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: If a payer is reporting a money amount in excess of 9999999999 (dollars and cents), it must be reported as follows:

(1) The first "B" Record MUST contain 9999999999.

(2) The second "B" Record will contain the remaining money amount.

Do not split this figure in half.

 52-61    Payment        10   The amount reported in this field

 

          Amount 1 /*/        represents payments for Amount Code 1 in

 

                              the "A" Record.

 

 

 62-71    Payment        10   The amount reported in this field

 

          Amount 2 /*/        represents payments for Amount Code 2 in

 

                              the "A" Record.

 

 

 72-81    Payment        10   The amount reported in this field

 

          Amount 3 /*/        represents payments for Amount Code 3 in

 

                              the "A" Record.

 

 

 82-91    Payment        10   The amount reported in this field

 

          Amount 4 /*/        represents payments for Amount Code 4 in

 

                              the "A" Record.

 

 

 92-101   Payment        10   The amount reported in this field

 

          Amount 5 /*/        represents payments for Amount Code 5 in

 

                              the "A" Record.

 

 

 102-111  Payment        10   The amount reported in this field

 

          Amount 6 /*/        represents payments for Amount Code 6 in

 

                              the "A" Record.

 

 

 12-121   Payment        10   The amount reported in this field

 

          Amount 7 /*/        represents payments for Amount Code 7

 

                              in the "A" Record.

 

 

 122-128  Blank           7   Enter blanks

 

 

 SECTOR 2

 

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-12     Payment        10   The amount reported in this field

 

          Amount 8 /*/        represents payments for Amount Code 8

 

                              in the" A" Record.

 

 

 13-22    Payment        10   The amount reported in this field

 

          Amount 9 /*/        represents payments for Amount Code 9

 

                              in the "A" Record.

 

 

      /*/ If there are discrepancies between these payment amount

 

 fields and the boxes on the paper forms, the instructions in this

 

 revenue procedure govern.

 

 

 23-42    Blank          20   Enter blanks

 

 

 43       Foreign         1   If the address of the payee is in a

 

          Country             foreign country, enter a "1" (one) in

 

          Indicator           this field, otherwise, enter blank. When

 

                              using this indicator, payers 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.

 

 

 44-83    First Payee    40   Required. Enter the name of the payee

 

          Name Line           (preferably surname first) whose

 

                              Taxpayer Identification Number (TIN) was

 

                              provided in Sector 1, positions 16-24 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 in the

 

                              First Payee Name Line. The use of the

 

                              business name is optional in the Second

 

                              Payee Name Line.

 

 

 Note: When reporting Form 1098, Mortgage Interest Statement,

 

 the "A" Record will reflect the name of the recipient of the interest

 

 (the payer). The "B" Record will reflect the individual paying the

 

 interest (the borrower/payer of record) and the amount paid. For

 

 Forms 1099-S, the "B" Record will reflect the seller/transferor

 

 information.

 

 

      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 1994

 

 "Instructions for Forms 1099, 1098, 5498, and W-2G". The

 

 beneficiary's TIN should be reported in Sector 1, position

 

 16-24 of the "B" Record.

 

 

 84-123   Second Payee   40   If there are multiple payees, (e.g.,

 

          Name Line           partners, joint owners, or spouses) use

 

                              this field for those names not

 

                              associated with the TIN provided in

 

                              Sector 1, positions 16-24 of the "B"

 

                              Record or if not enough space was

 

                              provided in the First Payee Name Line,

 

                              continue the name in this field. Do not

 

                              enter address information. It is

 

                              important that payers provide as much

 

                              payee information to IRS/MCC as possible

 

                              to identify the payee assigned the TIN.

 

                              Left justify and fill unused positions

 

                              with blanks. Fill with blanks if no

 

                              entries are present for this field.

 

 

 124-128  Blank           5   Enter blanks

 

 

 SECTOR 3

 

 

 1        Record          1   Required. Enter a "3" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state, and ZIP

 

 Code as a continuous 40 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 Field in Sector 2, position 43 must contain a "1" (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service abbreviations for states or

 

                              possessions with the appropriate postal

 

                              identifier (AA, AE, or AP) described in

 

 

                              Part A, Sec. 18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field located in

 

                              position 43 of Sector 2 of the "B"

 

                              Record.

 

 

 83-128   Blank          46   Enter blanks

 

 

 SECTOR 4

 

 

 The following field descriptions describe the record positions for

 

 Sector 4 of the "B" Record for Forms 1098, 1099-DIV, 1099-G,

 

 1099-INT, 1099-MISC, 1099-PATR, 1099-R, and 5498. If a payer is not a

 

 Combined Federal/State Payer, or if they are not utilizing the

 

 Special Data Entries Field, Sector 4 can be eliminated for all "B"

 

 Records except Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S, and

 

 W-2G. See Part E, Secs. 8, 9, 10, 11, 12 and 13 for the field

 

 descriptions for Section 4 of Forms 1099-A, 1099-B, 1099-C, 1099-OID,

 

 1099-S and W-2G.

 

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-69     Special Data   67   This portion of the "B" Record may be

 

          Entries             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.

 

 

 70-71    Combined        2   If this payee record is to be forwarded

 

          Federal/            to a state agency as part of the

 

          State Code          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

 

                              or for forms not valid for state

 

                              reporting, enter blanks.

 

 

 72-128   Blank          57   Enter blanks

 

 

SEC. 7. PAYEE "B" RECORD--RECORD LAYOUTS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S, AND W-2G. [omitted]

SEC. 8. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-A

.01 This section contains information pertaining to Sector 4 of Form 1099-A.

.02 See Part E, Sec. 6 for field descriptions of Sectors 1, 2 and 3 of the "B" Record for Form 1099-A.

.03 Form 1099-A cannot be filed under the Combined Federal/State Filing Program.

               RECORD NAME: PAYEE "B" RECORD--Continued

 

                      FORM 1099-A--SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-23     Special Data   21   This portion of the "B" Record may be

 

          Entries             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.

 

 

 24-29    Date of         6   Forms 1099-A only. Payers should enter

 

          Lender's            the acquisition date of the secured

 

          Acquisition         property or the date they first had

 

          or Knowledge        reason to know the property was

 

          of                  abandoned in the format MMDDYY (e.g.,

 

          Abandonment         102294). Do not enter hyphens or

 

                              slashes.

 

 

 30       Liability       1   1099-A only. Enter the appropriate

 

          Indicator           indicator from the table below:

 

 

                              Indicator   Usage

 

                                1         Borrower is personally

 

                                          liable for repayment of the

 

                                          debt.

 

                              Blank       Borrower is not liable for

 

                                          repayment of the debt.

 

 

 31-69    Description    39   Form 1099-A only. Enter a brief

 

          of Property         desription 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-1994

 

                              Buick Regal or office equipment). Enter

 

                              "CCC" for crops forfeited on Commodity

 

                              Credit Corporation loans. If fewer than

 

                              39 positions are required, left justify

 

                              and fill unused positions with blanks.

 

 

 70-128   Blank          59   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-A [omitted]

SEC. 9. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-B

.01 This section contains the general payment information for Sector 4 of Form 1099-B.

.02 See Part E, Sec. 6 for field descriptions for Sectors 1, 2, and 3 of the "B" Record for Form 1099-B.

.03 Form 1099-B cannot be filed under the Combined Federal/State Filing Program.

               RECORD NAME: PAYEE "B" RECORD--Continued

 

                      FORM 1099-B--SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B".

 

 

 3-12     Special Data   10   This portion of the "B" Record may be

 

          Entries             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 used, enter blanks.

 

 

 13       Gross           1   Form 1099-B only. Enter the appropriate

 

          Proceeds            indicator from the following table,

 

          Indicator           otherwise, enter blanks.

 

 

                              Indicator   Usage

 

                              1           Gross proceeds

 

                              2           Gross proceeds less

 

                                          commission and option

 

                                          premiums.

 

 

 14-19    Date of Sale    6   Form 1099-B only. For broker

 

                              transactions, enter the trade date of

 

                              the transaction. For barter exchanges,

 

                              enter the date, when cash, property, a

 

                              credit, or script is actually or

 

                              constructively received in the format

 

                              MMDDYY (e.g., 102294). Enter blanks if

 

                              this is an aggregate transaction. Do not

 

                              enter hyphens or slashes.

 

 

 20-32    CUSIP Number   13   Form 1099-B only. 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 "0" (zeros)

 

                              if the number is not available. Left

 

                              justify and blank fill unused positions.

 

 

 33-71    Description    39   Form 1099-B only. Enter a brief

 

                              description of the item or services for

 

                              which the proceeds or bartering is being

 

                              reported. If fewer than 39 characters

 

                              are required, left justify 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. For bartering transactions

 

                              show the services or property provided.

 

 

 Note: The amount withheld in these situations is to be included

 

 in Amount Code 4.

 

 

 72-128   Blank          57   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-B [omitted]

SEC. 10. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-C

.01 This section contains information pertaining to Sector 4 of Form 1099-C.

.02 See Part E, Sec. 6 for field descriptions of Sectors 1, 2 and 3 of the "B" Record for Form 1099-C.

.03 Form 1099-C cannot be filed under the Combined Federal/State Filing Program.

               RECORD NAME: PAYEE "B" RECORD--Continued

 

                      FORM 1099-C--SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-23     Special Data   21   This portion of the "B" Record may be

 

          Entries             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.

 

 

 24-29    Date            6   Forms 1099-C only. Payers should enter

 

          Canceled            the date when the debt was canceled in

 

                              the format of MMDDYY (i.e., 102294).

 

                              Do not enter hyphens or slashes.

 

 

 30       Bankruptcy      1   1099-C only. Enter "1" (one) to indicate

 

          Indicator           the debt was discharged in bankruptcy.

 

 

                              Indicator   Usage

 

                              1           Debt was discharged in

 

                                          bankruptcy.

 

                              Blank       Debt was not discharged in

 

                                          bankruptcy.

 

 

 31-69    Debt           39   Form 1099-C only. Enter a description

 

          Description         of the origin of debt, such as student

 

                              loan, mortgage, or credit card

 

                              expenditure.

 

 

 70-128   Blank          59   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-C [omitted]

SEC. 11. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-OID

.01 This section contains information pertaining to Sector 4 of Form 1099-OID.

.02 See Part E, Sec. 6 for field descriptions of Sectors 1, 2 and 3 of the Payee "B" Record for Form 1099-OID.

                     RECORD NAME: PAYEE "B" RECORD

 

                     FORM 1099-OID--SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-30     Special Data   28   This portion of the "B" Record may be

 

          Entries             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.

 

 

 31-69    Description    39   Required. Form 1099-OID only. 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 of maturity (e.g.,

 

                              NYSE XYZ 12 1/2 95). Show the name of

 

                              the issuer if other than the payer. If

 

                              fewer than 39 characters are required,

 

                              left justify and fill unused positions

 

                              with blanks.

 

 

 70-71    Combined        2   If a payee record is to be forwarded to

 

          Federal/State       a state agency as part of the Combined

 

          Code                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, or

 

                              for forms not valid for state reporting,

 

                              enter blanks.

 

 

 72-128   Blank          57   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-OID [omitted]

SEC. 12. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-S

.01 This section contains the general payment information for Sector 4 of Form 1099-S.

.02 See Part E, Sec. 6 for field descriptions for Sectors 1, 2 and 3 of the "B" Record for Form 1099-S.

.03 Form 1099-S cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-S--SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-25     Special Data   23   This portion of the "B" Record may be

 

          Entries             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.

 

 

 26-31    Date of         6   Required. Form 1099-S only. Enter the

 

          Closing             closing date in the format MMDDYY(e.g.,

 

                              102294). Do not enter hyphens or

 

                              slashes.

 

 

 32-70    Address or     39   Required. Form 1099-S only. Enter the

 

          Legal               address of the property transferred

 

          Description         (including city, state, and ZIP Code).

 

                              If the address does not sufficiently

 

                              identify 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 and fill unused

 

                              positions with blanks.

 

 

 71       Property or     1   Required. Form 1099-S only. Enter "1"

 

          Services            (one) if the transferor received or will

 

          Received or         receive property (other than cash and

 

          To Be               consideration treated as cash in

 

          Received            computing gross proceeds) or services as

 

                              part of the consideration for the

 

                              property transferred. Also enter "1"

 

                              (one), if the transferor may receive

 

                              property (other than cash) or services

 

                              to satisfy a debt having a stated

 

                              principal amount, otherwise enter a

 

                              blank.

 

 

 72-128   Blank          57   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-S [omitted]

When reporting Form 1099-S, the "B" Record will reflect the seller/transferor information.

SEC. 13. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM W-2G.

.01 This section contains the general payment information for Sector 4 of Form W-2G.

.02 See Part E, Sec. 6 for field descriptions for Sectors 1, 2 and 3 of the "B" Record for Form W-2G.

.03 Form W-2G cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                       FORM W-2G--SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "4" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-8      Date Won        6   Form W-2G only. Enter the date of the

 

                              winning event in the format MMDDYY

 

                              (e.g., 102294). This is not the date the

 

                              money was paid, if paid after the date

 

                              of the race (or game). Do not enter

 

                              hyphens or slashes.

 

 

 9-23     Transaction    15   Required. Form W-2G only. 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. All

 

                              others, enter blanks.

 

 

 24-28    Race            5   Form W-2G only. If applicable, enter the

 

                              race (or game) relating to the winning

 

                              ticket. Otherwise, enter blanks.

 

 

 29-33    Cashier         5   Form W-2G only. If applicable, enter the

 

                              initials of the cashier making the

 

                              winning payment; otherwise, enter

 

                              blanks.

 

 

 34-38    Window          5   Form W-2G only. If applicable, the

 

                              window number or location of the person

 

                              paying the winnings; otherwise, enter

 

                              blanks.

 

 

 39-53    First ID       15   Form W-2G only. If applicable, the first

 

                              identification number of the person

 

                              receiving the winnings; otherwise, enter

 

                              blanks.

 

 

 54-68    Second ID      15   Form W-2G only. If applicable, enter the

 

                              second identification number of the

 

                              person receiving the winnings;

 

                              otherwise, enter blanks.

 

 

 69-128   Blank          60   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 4 OF FORM W-2G [omitted]

SEC. 14. END OF PAYER "C" RECORD--RECORD LAYOUT

.01 The End of Payer "C" Record consists of 2 Sectors of 128 positions each. The Control Total Fields are each 15 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 will appear in Control Totals 1, 3 and 6 of the "C" Record. In this example, positions 27-41, 57-86, and 102-116 of Sector 1 and positions 3-32 of Sector 2 would be zero 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

SECTOR 1

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "1" (one) to sequence

 

          Sequence            the sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "C"

 

 

 3-8      Number of       6   Required. Enter the total number of "B"

 

          Payees              Records covered by the preceding "A"

 

                              Record. Right justify and zero fill.

 

 

 9-11     Blank           3   Enter blanks

 

 

      Required. Accumulate totals of any payment amount fields

 

 in the "B" Records into the appropriate control total fields of the

 

 "C" Record. Control totals must be right-justified and unused

 

 control total fields zero filled. All control total fields are 15

 

 positions in length.

 

 

 12-26       Control     15

 

             Total 1

 

 27-41       Control     15

 

             Total 2

 

 42-56       Control     15

 

             Total 3

 

 57-71       Control     15

 

             Total 4

 

 72-86       Control     15

 

             Total 5

 

 87-101      Control     15

 

             Total 6

 

 102-116     Control     15

 

             Total 7

 

 

 117-128  Blank          12   Enter blanks

 

 

 SECTOR 2

 

 

 1        Record          1   Required. Enter a "2" (two) to sequence

 

          Sequence            the sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "C"

 

 

 3-17        Control     15

 

             Total 8

 

 18-32       Control     15

 

             Total 9

 

 

 33-128   Blank          96   Enter blanks

 

 

END OF PAYER "C" RECORD--RECORD LAYOUT [omitted]

SEC. 15. STATE TOTALS "K" RECORD--RECORD LAYOUT

.01 The State Totals "K" Record consists of 2 sectors of 128 positions each. The Control Total Fields are each 15 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. Use 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 for 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 will 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.

RECORD NAME: STATE TOTALS "K" RECORD

SECTOR 1

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "1" (one) to sequence

 

          Sequence            the sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "K"

 

 

 3-8      Number of       6   Required. Enter the total number of "B"

 

          Payees              Records being coded for this state.

 

                              Right justify and zero fill.

 

 

 9-11     Blank           3   Enter blanks

 

 

      Required. Accumulate totals of any payment amount fields

 

 in the "B" Records for each state being reported, into the

 

 appropriate control total fields of the appropriate "K" Record.

 

 Control totals must be right-justified and unused control total

 

 fields zero filled. All control total fields are 15 positions in

 

 length.

 

 

 12-26       Control     15

 

             Total 1

 

 27-41       Control     15

 

             Total 2

 

 42-56       Control     15

 

             Total 3

 

 57-71       Control     15

 

             Total 4

 

 72-86       Control     15

 

             Total 5

 

 87-101      Control     15

 

             Total 6

 

 102-116     Control     15

 

             Total 7

 

 

 117-128  Blank          12   Enter blanks

 

 

 SECTOR 2

 

 

 1        Record          1   Required. Enter a "2." to sequence the

 

          Sequence            sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "K"

 

 

 3-17        Control     15

 

             Total 8

 

 18-32       Control     15

 

             Total 9

 

 

 33-126   Blank          94   Enter blanks

 

 

 127-128  Combined        2   Required. Enter the code assigned to the

 

          Federal/            state which is to receive the

 

          State Code          information. (Refer to Part A, Sec. 16,

 

                              Table 1.)

 

 

END OF PAYER "K" RECORD--RECORD LAYOUT [omitted]

SEC. 16. END OF TRANSMISSION "F" RECORD--RECORD LAYOUT

.01 The End of Transmission "F" Record consists of one 128-position sector. 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

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record Type     1   Required. Enter "F"

 

 

 2-5      Number of       4   Enter the total number of Payer "A"

 

          "A" Records         Records in the entire file (right

 

                              justify and zero fill) or enter all

 

                              zeros.

 

 

 6-30     Zero           25   Enter zeros

 

 

 31-128   Blank          98   Enter blanks

 

 

END OF TRANSMISSION "F" RECORD--RECORD LAYOUT [omitted]

PART F. DOUBLE DENSITY DISKETTE SPECIFICATIONS

SEC. 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 a double density diskette file and must be strictly adhered to unless deviations have been specifically granted by IRS.

.02 IRS is considering eliminating 8-inch diskettes as an acceptable type of media in the future.

.03 To be compatible, a double density diskette file must meet the following specifications in total:

(a) 8-inch in diameter.

(b) Recorded in EBCDIC.

(c) Contains 77 cylinders (A cylinder refers to both of the tracks available to the read/write heads at any of the 77 locations on the double sided, double density diskette).

(1) Cylinder 00 is the index cylinder. The operating system reserves cylinder 00 for the directory information and writes the file name and location in the directory; data cannot be written in cylinder 00.

(2) Cylinders 1-74 are the primary data cylinders.

(3) Cylinders 75 and 76 are reserved for alternate cylinder assignment.

(d) Each track contains 26 sectors; therefore, each cylinder contains 52 sectors.

(e) Each sector must contain 256 bytes.

(f) Data must be recorded on both sides of the diskette.

(g) IRS can process single sided, single density, soft sectored diskettes as well as double sided, double density, soft sectored diskettes. Part E provides specifications for single density diskettes which have sectors of 128 bytes.

(h) An IBM 5360 compatible diskette would meet the above specifications. If using other processors, data should be recorded in the Basic Data Exchange (EBCDIC) format.

(i) Hard sectored diskettes are not compatible.

(j) A diskette should be clearly marked as to which type of data (double sided/double density) is on each diskette, and the entire file should consist of all double sided/double density diskettes.

.04 Exchange files are created through the Transfer command and Copyfile files are created through the Copy command. In order to do this, initialize the diskettes using the FORMAT parameter in the INIT procedure. IRS/MCC encourages filers to use blank or currently formatted diskettes when preparing files. If extraneous data follows the end of the "F" Record, the file must be returned for replacement.

.05 Form 5064, Media Label, must be affixed to each diskette submitted for processing.

SEC. 2. DISKETTE HEADER LABEL

The following header label format applies to both single and double density diskettes.

The header label on the diskette must be located in Track 0, Sector 8 and must be formatted as shown in the following layout. If a filer's system automatically creates a header label, this is not necessary. If the file will consist of multiple diskettes, the Multi-Volume Indicator (position 45) in the diskette header label must contain a "C".

Record Layout [omitted]

(a) Header 1--Positions 1 through 4; enter HDR1.

(b) Unused--Any field marked blank is unused and should contain only blanks.

(c) Data Set (File) Name--Positions 6 through 13; use this field to identify a filer's data set. The Data Set Name must begin with an alphabetic character. This name should be the same for every diskette in a file.

(d) Sector Length--Positions 23 through 27; enter the sector length 256 in positions 25-27 and fill positions 23 and 24 with zeros.

(e) Beginning of Data--Positions 29 through 33; enter the five-digit address designated for the first record of this data set, xx0yy (xx = track number, yy = sector number). For example, if the first record is in track 01, sector 02, enter 01002.

(f) End of Data--Positions 35 through 39; enter the five-digit address of the last position of the diskette reserved for this data set. For example, to reserve the entire diskette for a data set, enter 73026. (g) Bypass Data Set--Position 41; this field is not accessed by IRS; any character is acceptable.

(h) Data Set Accessibility--Position 42; this field is not accessed by IRS; any character is acceptable.

(i) Write Protect--Position 43; this field defines the protected status of the associated data set. P = read only; blank = read/write. With P in this position, a filer can only select the Update (U) mode.

(j) Position 44, File Type, enter an "e" if to indicate an exchange file; otherwise, enter blank.

(k) Multi-Volume--Position 45; this field indicates that a complete data set is on a diskette. Blank = data set complete; C = data set continued on another diskette; L = last diskette of a multi-diskette data set.

(l) Sequence Number--Position 46 and 47--For Copyfile files only. Sequentially ascending numbers must be entered in every diskette header label.

(m) Expiration Date--Positions 67 through 72; may be used to contain the date that the data set expires, YYMMDD (YY = year, MM = month, DD = day). This field is not accessed by IRS; any characters are acceptable.

(n) Verify Mark--Position 73; this field is used to indicate the data set was verified. If verified enter V, if not enter a blank.

(o) Next Available Data Position--Positions 75-79. Enter the address of the next available position after End of Data (f). In positions 75 and 76 enter the track number, in position 77 enter a "0" (zero), and in positions 78-79 enter the sector number.

SEC. 3. PAYER/TRANSMITTER "A" RECORD--GENERAL INFORMATION

.01 The Payer "A" Record identifies the payer and transmitter of the diskette and 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 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 After the header label on the diskette, the first record appearing must be an "A" Record. Each "A" Record will consist of at least one 256 position sector; however, if a filer is transmitting for someone other than themselves, 2 sectors are required.

.05 A transmitter may include "B" Records for more than one payer on a 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 diskette may contain different types of returns, but the returns must not be intermingled. A separate "A" Record is required for each payer and each type of return being reported.

.06 An "A" Record may be blocked with "B" Records, however, the initial record on a file must be an "A" Record. IRS/MCC will accept an "A" Record after a "C" Record.

.07 All alpha characters entered in the "A" Record should be uppercase.

.08 When filing Form 1098, Mortgage 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.

RECORD NAME: PAYER/TRANSMITTER "A" RECORD

Note: For all fields marked Required, a transmitter must provide the information described under Description and Remarks. For fields not marked Required, a transmitter must allow for the field but may be instructed to enter blanks or zeros in the indicated diskette position(s) and for the indicated length.

SECTOR 1

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter "1" (one) to sequence

 

          Sequence            the sectors making up an "A" Record.

 

 

 2        Record Type     1   Required. Enter "A"

 

 

 3-4      Payment Year    2   Required. Enter "94" (unless reporting

 

                              prior year data).

 

 

 5-7      Diskette        3   The diskette sequence number is

 

          Sequence            incremented by 1 for each diskette on

 

          Number              the file starting with 001. The

 

                              transmitter may enter blanks or zeros in

 

                              this field. IRS bypasses this

 

                              information. Indicate the proper

 

                              sequence on the external label Form

 

                              5064.

 

 

 8-16     Payer's TIN     9   Required. Must be the valid nine-digit

 

                              Taxpayer Identification 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. For foreign entities

 

                              not required to have a TIN, this field

 

                              may be blank. However, the Foreign

 

                              Entity Indicator, position 50, Sector 1,

 

                              of the "A" Record should be set to "1"

 

                              (one).

 

 

 17-20    Payer Name      4   The Payer Name Control can be obtained

 

          Control             only from the mail label on the Package

 

                              1099 that is mailed to most payers on

 

                              record each December. To distinguish

 

                              between the 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. This

 

                              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.

 

 

 21       Last Filing     1   Enter a "1" (one) if this is the last

 

          Indicator           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.

 

 

 22       Combined        1   Required for the Combined Federal/State

 

          Federal/            Filing Program. Enter "1" (one) if

 

          State Filer         participating in the Combined

 

                              Federal/State Filing Program, otherwise,

 

                              enter blank. Refer to Part A, Sec. 16

 

                              for further information. Forms 1098,

 

                              1099-A, 1099-B, 1099-C, 1099-S, and

 

                              W-2G cannot be filed under this program.

 

 

 23       Type of         1   Required. Enter appropriate code from

 

          Return              table below:

 

 

                              Type of Return                   Code

 

                              1098                               3

 

                              1099-A                             4

 

                              1099-B                             B

 

                              1099-C                             5

 

                              1099-DIV                           1

 

                              1099-G                             F

 

                              1099-INT                           6

 

                              1099-MISC                          A

 

                              1099-OID                           D

 

                              1099-PATR                          7

 

                              1099-R                             9

 

                              1099-S                             S

 

                              5498                               L

 

                              W-2G                               W

 

 

 24-32    Amount Codes    9   Required. Enter the appropriate amount

 

          (See Note)          code for the type of return being

 

                              reported. Generally, for each amount

 

                              code entered in this field, a

 

                              corresponding payment amount should

 

                              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/electronically. However, if

 

                              discrepancies occur, this revenue

 

                              procedure governs.

 

 

 Example: If Sector 1, position 23 of the "A" Record is "7" (for

 

 1099-PATR) and positions 24-32 are "247bbbbbb" (b = blanks), this

 

 indicates the payer is reporting three payment amounts in all of the

 

 following Payee "B" Records.

 

 

    The first payment amount field in the "B" Record will be all

 

 "0" (zeros);

 

    the second will represent "nonpatronage distributions";

 

    the third will be all "0" (zeros);

 

    the fourth will represent "federal income tax withheld";

 

    the fifth and sixth will be all "0" (zeros);

 

    the seventh will represent "energy investment credit"; and

 

    the eight and ninth will be all "0" (zeros).

 

 

      Enter the amount codes in ascending sequence (i.e.,

 

 247bbbbbb; b = blanks), left justify, filling unused positions with

 

 blanks. For further clarification of the Amount Codes, contact

 

 IRS/MCC.

 

 

 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 1994 "Instructions for Forms 1099, 1098,

 

 5498, and W-2G".

 

 

 Amount Codes Form            For Reporting Mortgage Interest Received

 

 1098--Mortgage Interest      from Payers/Borrowers (Payer of Record)

 

 Statement                    on Form 1098:

 

                              Amount

 

                              Code       Amount Type

 

                              1        Mortgage interest received from

 

                                       payers/borrowers

 

                              2        Points paid directly by

 

                                       payers/borrowers on purchase of

 

                                       principal residence

 

                              3        Refund of overpaid interest

 

 

 Amount Codes Form            For Reporting the Acquisition or

 

 1099-A--Acquisition or       Abandonment of Secured Property on Form

 

 Abandonement of Secured      1099-A:

 

 Property                     Amount

 

                              Code       Amount Type

 

                              2        Balance of principal

 

                                       outstanding

 

                              3        Gross foreclosure proceeds

 

                              4        Appraisal value

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-B:

 

 1099-B--Proceeds from        Amount

 

 Broker and Barter            Code       Amount Type

 

 Exchange Transactions        2        Stocks, bonds, etc. (For

 

                                       forward contracts, see Note)

 

                              3        Bartering (Do not report

 

                                       negative amounts.)

 

                              4        Federal income tax withheld

 

                                       (backup withholding). (Do not

 

                                       report negative amounts.)

 

                              6        Profit or loss realized in 1994

 

                                       on Regulated Futures Contracts.

 

                                       (See Note 2)

 

                              7        Unrealized profit or loss on

 

                                       open contracts 12/31/93. (See

 

                                       Note 2)

 

                              8        Unrealized profit or loss on

 

                                       open contracts 12/31/94. (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 represent a loss when the reporting is for forward

 

 contracts. 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 for the

 

 reporting of Regulated Futures Contracts.

 

 

 Amount Codes Form            For Reporting Cancellation of Debt on

 

 1099-C--Cancellation of      Form 1099-C:

 

 Debt                         Amount

 

                              Code       Amount Type

 

                              2        Amount of debt canceled (see

 

                                       Note)

 

                              3        Interest included in Amount

 

                                       Code 2

 

                              4        Penalties, fines or

 

                                       administrative costs included

 

                                       in Amount Code 2

 

 

 Note: A debt is any amount owed to the debtor including

 

 principal, interest, penalties, administrative costs, and fines, to

 

 the extent they are indebtedness under section 61(a)(12). The amount

 

 of debt discharged or canceled may be all or only part of the total

 

 amount owed. See the 1994 "Instructions for Forms 1099, 1098, 5498,

 

 and W-2G" for further information.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-DIV--Dividends and      1099-DIV:

 

 Distributions                Amount

 

                              Code       Amount Type

 

                              1        Gross dividends and other

 

                                       distributions on stock (see

 

                                       Note)

 

                              2        Ordinary dividends (see Note)

 

                              3        Capital gain distributions (see

 

                                       Note)

 

                              4        Nontaxable distributions (if

 

                                       determinable) (see Note)

 

                              5        Investment expenses (see Note)

 

                              6        Federal income tax withheld

 

                                       (backup withholding)

 

                              7        Foreign tax paid

 

                              8        Cash liquidation distributions

 

                              9        Noncash liquidation

 

                                       distributions (show fair market

 

                                       value)

 

 

 Note: Amount Code 1 must be present (unless the payer is

 

 using Amount Codes 8 or 9 only) and must equal the sum of amounts

 

 reported in Amount Codes 2, 3, 4 and 5. If an amount is present for

 

 Amount Code 1, there must be an amount present for Amount Codes 2-5

 

 as applicable.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-G:

 

 1099-G--Certain              Amount

 

 Government Payments          Code       Amount Type

 

                              1        Unemployment compensation

 

                              2        State or local income tax

 

                                       refunds, credits or offsets

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

                              6        Taxable grants

 

                              7        Agriculture payments

 

 

 NOTE: Payments previously reported under Amount Code 5 for

 

 discharge of indebtedness are now reportable on Form 1099-C.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-INT--Interest Income    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            For Reporting Payments on Form

 

 1099-MISC--Miscellaneous     1099-MISC:

 

 Income                       Amount

 

                              Code       Amount Type

 

                              1        Rents (see Note 1)

 

                              2        Royalties (see Note 2)

 

                              3        Other income (see Note 3)

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

                              5        Fishing boat proceeds

 

                              6        Medical and health care

 

                                       payments

 

                              7        Nonemployed compensation or

 

                                       crop insurance proceeds (see

 

                                       Note 4)

 

                              8        Substitute payments in lieu of

 

                                       dividends or interest

 

                              9        Excess golden parachute

 

                                       payments

 

 

 Note 1: If reporting the Direct Sales Indicator only, use

 

 Type of Return Code A for 1099-MISC in position 23, and Amount Code 1

 

 in position 24 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 should be reported on Form 1099-S.

 

 

 Note 3: Amount Code 3 previously was entitled "Prizes, awards,

 

 etc.". The title was changed to read "Other Income".

 

 

 Note 4: Amount Code 7 is normally used to report nonemployed

 

 compensation. However, Amount Code 7 may also be used to report crop

 

 insurance proceeds. See positions 5-6, Sector 1, of the "B" Record

 

 for instructions. If nonemployed compensation and crop insurance

 

 proceeds are being paid to the same payee, a separate "B" Record for

 

 each transaction is required.

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-OID--Original Issue     1099-OID:

 

 Discount                     Amount

 

                              Code       Amount Type

 

                              1        Original issue discount for

 

                                       1994

 

                              2        Other periodic interest

 

                              3        Early withdrawal penalty

 

                              4        Federal income tax withheld

 

                                       (backup withholding)

 

 

 Amount Codes Form            For Reporting Payments on Form

 

 1099-PATR--Taxable           1099-PATR:

 

 Distributions Received       Amount

 

 from Cooperatives            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

 

                              6        Investment credit (see Note)

 

                              7        Energy investment credit (see

 

                                       Note)

 

                              8        Jobs credit (see Note)

 

 

 Note: The amounts shown for Amount Codes 6, 7, and 8 must be

 

 reported to the payee; they need not be reported to IRS.

 

 

      If reporting Pass-Through Alternative Minimum Tax

 

 Adjustments, the total alternative minimum tax (AMT) patronage

 

 dividend adjustment for the patron and/or the total AMT per-unit

 

 retain allocation adjustment should be entered in the Special Data

 

 Entries Field of the Payee "B" Record.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-R:

 

 1099-R--Distributions        Amount

 

 From Pensions, Annuities,    Code       Amount Type

 

 Retirement or Profit-        1        Gross distribution (See Note 2)

 

 Sharing Plans, IRAs,         2        Taxable amount (see Note 3) or

 

 Insurance Contracts, etc.             IRA/SEP distribution

 

 (See Note 1)                 3        Capital gain (included in

 

                                       Amount Code 2).

 

                              4        Federal income tax withheld

 

                                       (see Note 4)

 

                              5        Employee contributions or

 

                                       insurance premiums

 

                              6        Net unrealized appreciation in

 

                                       employer's securities

 

                              8        Other

 

                              9        State income tax withheld (see

 

                                       Note 5)

 

 

 Note 1: Additional information may be required in the "B"

 

 Record. Refer to positions 45 through 49, Sector 1, of the "B"

 

 Record.

 

 

 Note 2: If the payment shown for Amount Code 1 is a total

 

 distribution, enter a "1" (one) in position 48, Sector 1, of the "B"

 

 Record. An amount must be shown in Amount Field 1.

 

 

 Note 3: 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 Amount Code 1, enter "0" (zero) in Amount Code 2, and enter

 

 the employee's contributions in Amount Code 5.

 

 

      If the taxable amount cannot be determined enter a "1" (one) in

 

 position 49, Sector 1 of the "B" Record. If a filer is reporting an

 

 IRA/SEP distribution, generally include the amount of the

 

 distribution in the Taxable Amount (Payment Amount 2, position 62-71)

 

 and enter a "1" (one) in the IRA/SEP Indicator Field (position 45). A

 

 "1" (one) may be entered in the Taxable Amount Not Determined

 

 Indicator Field (position 49), Sector 1 of the "B" Record, but the

 

 amount of the distribution must still be reported in Payment Amount

 

 Field 2. See the explanation for Box 2a of Form 1099-R in the 1994

 

 "Instructions for Forms 1099, 1098, 5498, and W-2G" for more

 

 information on reporting the taxable amount.

 

 

 Note 4: See the 1994 "Instructions for Forms 1099, 1098, 5498,

 

 and W-2G" for further information concerning federal income tax

 

 withheld for Form 1099-R.

 

 

 Note 5: State income tax withheld has been added for the

 

 convenience of the payer but need not be reported to IRS. Local

 

 income tax may be reported in the Special Data Entries Field in the

 

 Payee "B" Record.

 

 

 Amount Codes Form            For Reporting Payments on Form 1099-S:

 

 1099-S--Proceeds From        Amount

 

 Real Estate Transactions     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 here under section 6050N. If timber royalties

 

 are being reported, enter "TIMBER" in the Description Field of the

 

 "B" Record. For more information, see Announcement 90-129, 1990-48

 

 I.R.B. 10.

 

 

 Amount Codes Form            For Reporting Payments on Form 5498:

 

 5498--Individual             Amount

 

 Retirement Arrangement       Code       Amount Type

 

 Information (See Note)       1        Regular IRA contributions made

 

                                       in 1994 and 1995 for 1994

 

                              2        Rollover IRA contributions

 

                              3        Life insurance cost included in

 

                                       Amount Code 1

 

                              4        Fair market value of the

 

                                       account

 

 

 Note: For information regarding Inherited IRAs, refer to

 

 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 Shield/Storm

 

 participant for other than 1994, enter "DS", 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 further information concerning Inherited IRAs or Desert

 

 Shield/Storm participant reporting, refer to 1994 "Instructions for

 

 Forms 1099, 1098, 5498, and W-2G", and Notice 91-17, 1991-1 C.B. 319.

 

 

 Amount Codes Form            Reporting Payments on Form W-2G:

 

 W-2G--For Certain Gambling   Amount

 

 Winnings                     Code       Amount Type

 

                              1          Gross winnings

 

                              2          Federal income tax withheld

 

                              3          State income tax withheld

 

                                         (see Note)

 

                              7          Winnings from identical

 

                                         wagers

 

 

 Note: State income tax withheld was added for the convenience

 

 of the payer but need not be reported to IRS/MCC.

 

 

 33       Test Indicator  1   Required. Enter "T" if this is a test

 

                              file, otherwise, enter a blank.

 

 

 34       Service Bureau  1   Enter "1" (one) if a service bureau was

 

          Indicator           used to develop and/or transmit files,

 

                              otherwise, enter blank. See Part A, Sec.

 

                              17 for the definition of a service

 

                              bureau.

 

 

 35-44    Blank          10   Enter blanks

 

 

 45-49    Transmitter     5   Required. Enter the five character

 

          Control Code        alpha/numeric (TCC) Transmitter Control

 

          (TCC)               Control Code assigned by IRS/MCC. A TCC

 

                              must be obtained to file data on this

 

                              program. Do not enter more than one TCC

 

                              per file.

 

 

 50       Foreign         1   Enter a "1" (one) if the payer is a

 

          Entity              foreign entity and income is paid by the

 

          Indicator           entity to a U.S. resident. If the payer

 

                              is not a foreign entity, enter a blank.

 

                              (See Note)

 

 

 Note: If payers erroneously report entities as foreign, they

 

 may be subject to a penalty for providing incorrect information to

 

 IRS. Therefore, payers must be sure to code only those records as

 

 foreign corporations that should be coded.

 

 

 51-90    First Payer    40   Required. Enter the name of the payer

 

          Name Line           whose TIN appears in Sector 1, positions

 

                              8-16 of the "A" Record. Any extraneous

 

                              information must be deleted. Left

 

                              justify and fill 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,

 

 the "A" Record will reflect the name and TIN of the recipient of the

 

 interest/the filer of Form 1098 (the payer). The "B" Record will

 

 reflect the individual paying the interest (the 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 form

 

 1099-S and the "B" Record will reflect the seller/transferor.

 

 

 91-130   Second Payer   40   If the Transfer Agent Indicator (Sector

 

          Name Line           1, position 131) contains a "1" (one),

 

                              this field must contain the name of the

 

                              transfer 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 and fill unused positions with

 

                              blanks.

 

 

 131      Transfer        1   Required. Identifies the entity in the

 

          Agent               Second Payer Name Line Field. (See Part

 

          Indicator           A, Sec. 17 for a definition of transfer

 

                              agent.)

 

 

                              Code       Meaning

 

                              1        The entity in the Second Payer

 

                                       Name Line Field is the transfer

 

                                       agent.

 

                              0 (zero) The entity shown is not the

 

                                       transfer agent (i.e., the

 

                                       Second Payer Name Line Field

 

                                       contains either a continuation

 

                                       of the First Payer Name Line

 

                                       Field or blanks).

 

 

 132-171  Payer          40   Required. If the Transfer Agent

 

          Shipping            Indicator in Sector 1, position 131 is a

 

          Address             "1" (one), enter the shipping address of

 

                              the transfer agent. Otherwise, enter the

 

                              actual shipping address of the payer.

 

                              Street address should include number,

 

                              street, apartment or suite number (or

 

                              P.O. Box if mail is not delivered to

 

                              street address). Left justify and fill

 

                              with blanks.

 

 

 172-211  Payer City,    40   Required. If the Transfer Agent

 

          State, and          Indicator in Sector 1, position 131 is a

 

          ZIP Code            "1," enter the city, town, or post

 

                              office, state abbreviation and ZIP Code

 

                              of the transfer agent. Otherwise, enter

 

                              the city, town, or post office, state

 

                              abbreviation and ZIP Code of the payer.

 

                              Left justify and fill with blanks.

 

 

 212-256  Blank          45   Enter blanks

 

 

 SECTOR 2--Need only be used if the payer and transmitter are not the

 

 same.

 

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "A"

 

 

 3-82     Transmitter    80   Required if payer and transmitter are

 

          Name                not the same. Enter the name of the

 

                              transmitter in the manner in which it is

 

                              used in normal business. The name of the

 

                              transmitter must be reported in the same

 

                              manner throughout the entire file. Left

 

                              justify and fill with blanks. If the

 

                              payer and transmitter are the same, this

 

                              field may be blank.

 

 

 83-122   Transmitter    40   Required if payer and transmitter are

 

          Mailing             not the same. Enter the mailing address

 

          Address             of the transmitter. Street address

 

                              should include number, street, apartment

 

                              or suite number (or P. O. Box if mail is

 

                              not delivered to street address). Left

 

                              justify and fill with blanks. If the

 

                              payer and transmitter are the same, this

 

                              field may be blank.

 

 

 123-162  Transmitter    40   Required if the payer and transmitter

 

          City, State         are not the same. Enter the city, town,

 

          and ZIP Code        or post office, state and ZIP Code of

 

                              the transmitter. Left justify and fill

 

                              with blanks. If the payer and

 

                              transmitter are the same, this

 

                              field may be blank.

 

 

 163-256  Blank          94   Enter blanks

 

 

SEC. 4. PAYER/TRANSMITTER "A" RECORD - RECORD LAYOUT [Omitted]

SEC. 5. PAYEE "B" RECORD--GENERAL INFORMATION FOR ALL FORMS

.01 The Payee "B" Record contains the payment information from individual returns. This section contains the general information concerning the Payee "B" Record for all information returns filed on double sided/double density soft-sectored diskettes. For a detailed description of the record refer to the following:

(a) Sec. 6. PAYEE "B" RECORD--FIELD DESCRIPTIONS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G. (See Part E, Sec. 8, 9, 10, 11, 12 and 13 for field descriptions for Sector 2 of Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S and W-2G.)

(b) Sec. 7. PAYEE "B" RECORD LAYOUTS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G.

(c) Sec. 8. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-A.

(d) Sec. 9. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-B.

(e) Sec. 10. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-C.

(f) Sec. 11. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-OID.

(g) Sec. 12. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-S.

(h) Sec. 13. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM W-2G.

All "B" Records will consist of two sectors of 256 positions each.

In the "A" Record, the amount codes that appear in diskette positions 24 through 32 of Sector 1 will be left-justified and blank filled. In the "B" Record, allow for all nine payment amount fields and for those not used, enter zeros. For example, if a filer is reporting on Form 1099-PATR, you will enter a "7" in diskette position 23 of Sector 1 of the "A" Record, Type of Return Field. If a filer is reporting payments for Amount Codes 2, 4 and 7, then diskette positions 24 through 32 of Sector 1 of the "A" Record will be "247bbbbbb" (b = blanks). In the "B" Record:

Positions 52 through 61 of Sector 1 for Payment Amount 1 will be zeros.

Positions 62-71 of Sector 1 will reflect the actual payment amount to be reported for "nonpatronage distributions".

Positions 72-81 of Sector 1 for Payment Amount 3 will be zeros.

Positions 82-91 of Sector 1 will reflect the actual payment amount to be reported for "federal income tax withheld".

Positions 92-111 of Sector 1 for Payment Amounts 5 and 6 will be zeros.

Positions 112-121 of Sector 1 will reflect the actual payment amount to be reported for "energy investment credit".

Positions 122-141 of Sector 1 for Payment Amounts 8 and 9 will be zeros.

.02 The record layout for Sector 1 will be the same for all "B" Records. Sector 2, however, will be different for Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S and W-2G. Refer to Part F, Sec. 8, 9, 10, 11, 12 and 13 respectively for the record layouts for Sector 2 of these records.

.03 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 filers.

.04 If filers are unable to provide 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 generating the Name Control:

(a) The surname of the payee whose SSN 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.

(b) In the case of multiple payees, only the surname of the payee whose TIN (SSN or EIN) 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 Field.

.05 See Part A, Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).

.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 filer's personal use.

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 Entries Field. If this field is coded, it will not affect the processing of the "B" Record.

.07 Those payers participating in the Combined Federal/State Filing Program must adhere to specifications in Part A, Sec. 16, in order to participate in this program. Forms 1098, 1099-A, 1099-B, 1099-C, 1099-S and W-2G cannot be filed under the Combined Federal/State Filing Program.

.08 All alpha characters entered in the "B" Record should be uppercase.

.09 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 0000001000.

.10 IRS strongly encourages filers to review the data for accuracy before submission to prevent issuance of erroneous notices. Transmitters should be especially careful that names, TINs, account numbers, types of income and income amounts are correct.

.11 When reporting Form 1098, Mortgage Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest (the payer). The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Forms 1099-S, the "A" Record will reflect the person responsible for reporting the transaction and the "B" Record will reflect the seller/transferor.

SEC. 6. PAYEE "B" RECORD-FIELD DESCRIPTIONS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G.

For Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S and W-2G, see Part F, Sec. 8, 9, 10, 11, 12 and 13 respectively for the field descriptions and record layouts for Sector 2 of these records.

Note: 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 diskette position(s) and for the indicated length.

RECORD NAME: PAYEE "B" RECORD

SECTOR 1

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "1" (one) to sequence

 

          Sequence            the sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-4      Payment Year    2   Required. Enter "94" (unless reporting

 

                              prior-year data).

 

 

 5-6      Document        2   Required for Forms 1099-G, 1099-MISC,

 

          Specific/           1099-R and W-2G. For all other forms

 

          Distribution        or if not used, enter blanks.

 

          Code

 

 

          Tax Year of Refund  For Form 1099-G, use only for reporting

 

          (Form 1099-G only)  the tax year for which the refund,

 

                              credit or offset (Amount Code 2) was

 

                              issued. Enter in position 5; position 6

 

                              will be blank.

 

 

                              If the refund, credit or offset is not

 

                              attributable to income tax from a trade

 

                              or business, enter the numeric year from

 

                              the table below for which the refund,

 

                              credit or offset was issued (e.g., for

 

                              1993, enter 3). If the refund, credit or

 

                              offset is exclusively attributable to

 

                              income from a trade or business, and is

 

                              not of general application, enter the

 

                              alpha equivalent of the year from the

 

                              table below (e.g., for 1993, enter C).

 

 

                                                      Year for Which

 

                               Year for Which         TRADE/BUSINESS

 

                                   GENERAL           Refund was Issued

 

                              Refund was Issued     (Alpha Equivalent)

 

 

                                      1                      A

 

                                      2                      B

 

                                      3                      C

 

                                      4                      D

 

                                      5                      E

 

                                      6                      F

 

                                      7                      G

 

                                      8                      H

 

                                      9                      I

 

                                      0                      J

 

 

          Crop Insurance      For Form 1099-MISC, enter a "1" (one) in

 

          Proceeds (Form      position 5 if the payment for Amount

 

          1099-MISC only)     Code 7 is crop insurance proceeds.

 

                              Position 6 will be blank.

 

 

          Distribution Code   For Form 1099-R, enter the appropriate

 

          (Form 1099-R only)  distribution code(s). More than one code

 

          (For a detailed     may apply for Form 1099-R. If only one

 

          explanation of      code is required, it must be entered in

 

          the distribution    position 5 and position 6 must be blank.

 

          codes, see the      Enter at least one (1) distribution

 

          1994                code. A blank in position 5 is not

 

          "Instructions       acceptable.

 

          for Forms 1099,     Enter the applicable code from the table

 

          1098, 5498, and     that follows. Position 5 must contain

 

          W-2G".)             a numeric code in all cases except when

 

                              using P, D, E, F, G, or H. Distribution

 

                              Code A, B, or C, when applicable, must

 

                              be entered in position 6 with the

 

                              applicable numeric code in position 5.

 

 

                              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 if applicable.

 

                              Only two numeric combinations are

 

                              acceptable, codes 8 and 1, and codes 8

 

                              and 2, on one return. These two

 

                              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, 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, if

 

                              applicable. Refer to Announcement 93-20,

 

                              1993-6 I.R.B. 65.

 

 

                              Category                         Code

 

 

                              Early (premature) distribution,

 

                              no known exception                 1 /*/

 

                              Early (premature) distribution,

 

                                exception applies (as defined

 

                                in section 72(q), (t), or (v)

 

                                of the Internal Revenue Code)

 

                                other than disability or death   2 /*/

 

                              Disability                         3 /*/

 

                              Death (includes payments to a

 

                                beneficiary)                     4 /*/

 

                              Prohibited transaction             5 /*/

 

                              Section 1035 exchange              6

 

                              Normal distribution                7 /*/

 

                              Excess contributions plus

 

                                earnings/excess deferrals

 

                                (and/or earnings) taxable

 

                                in 1994                          8 /*/

 

                              PS 58 costs                        9

 

                              Excess contributions plus

 

                                earnings/excess deferrals

 

                                taxable in 1993                  P /*/

 

                              Eligible for 5 or 10 year

 

                                averaging                        A

 

                              Eligible for death benefit

 

                                exclusion                        B

 

                              Eligible for both A and B          C

 

                              Excess contributions plus

 

                                earnings/excess deferrals

 

                                taxable in 1992                  D /*/

 

                              Excess annual additions under

 

                                section 415                      E

 

                              Charitable gift annuity            F

 

                              Direct rollover to IRA             G

 

                              Direct rollover to qualified

 

                                plan or tax-sheltered annuity    H

 

 

      /*/ If reporting an IRA or SEP distribution, code a "1" (one) in

 

 position 44 of the "B" Record.

 

 

          Type of Wager       For Form W-2G, enter the applicable code

 

          (Form W-2G only)    in position 5. Position 6 will be blank.

 

 

                              Category                         Code

 

 

                              Horse race track (or off-track

 

                                betting of a horse track nature) 1

 

                              Dog race track (or off-track

 

                                betting of a dog track nature)   2

 

                              Jai-alai                           3

 

                              State conducted lottery            4

 

                              Keno                               5

 

                              Casino type bingo. Do Not use

 

                                this code for any other type of

 

                                bingo winnings (e.g., church or

 

                                fire dept.).                     6

 

                              Slot machines                      7

 

                              Any other type of gambling

 

                                winnings (This includes church

 

                                bingo, fire dept. bingo, or

 

                                unlabeled winnings)              8

 

 

 7        2nd TIN         1   For Forms 1099-B, 1099-DIV, 1099-INT,

 

          Notice              1099-MISC, 1099-OID, and 1099-PATR only.

 

 

                              Enter "2" to indicate notification by

 

                              IRS/MCC twice within three calendar

 

                              years that the payee provided an

 

                              incorrect name and/or TIN; otherwise,

 

                              enter a blank.

 

 

 8        Corrected       1   Indicate a corrected return.

 

          Return

 

          Indicator

 

 

                              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.

 

 

 9-12     Name Control    4   If determinable, enter the first four

 

                              (4) characters of the surname of the

 

                              person whose TIN is being reported in

 

                              positions 16-24 of the "B" Record,

 

                              otherwise, enter blanks. This is usually

 

                              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 (4) characters should be

 

                              left-justified, filling the unused

 

                              positions with blanks. Special

 

                              characters and imbedded blanks should be

 

                              removed. In the case of a business,

 

                              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 (e.g., Mr., Mrs., Dr., apostrophe, or dash),

 

 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     HEML

 

                           c/o 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

 

                          Sheila Blue Estate              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 (4) 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.

 13       Direct Sales    1   1099-MISC only. Enter a "1" (one) to

 

          Indicator           indicate a sale of $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 direct sales only, use Type of Return

 

 A in position 23 and Amount Code 1 in position 24, of the Payer "A"

 

 Record. All payment amount fields in the Payee "B" Records will

 

 contain zeros.

 

 

 14       Blank           1   Enter blank

 

 

 15       Type of TIN     1   This field is used to identify the

 

                              Taxpayer Identification Number (TIN) in

 

                              positions 16-24 as either an Employer

 

                              Identification Number (EIN) or a Social

 

                              Security Number (SSN). /*/ Enter the

 

                              appropriate code from the following

 

                              table:

 

 

                              Type of TIN   TIN   Type of Account

 

 

                                   1        EIN   A business,

 

                                                  organization, or

 

                                                  other entity

 

                                   2        SSN   An individual

 

                                 blank      N/A   If the type of TIN

 

                                                  is not determinable,

 

                                                  enter a blank.

 

 

      /*/ While this is not a "Required" field, this information is

 

 important for the correct processing of the payee's TIN.

 

 

 16-24    Taxpayer        9   Required. Enter the nine-digit Taxpayer

 

          Identifi-           Identification Number of the payee (SSN

 

          cation              or EIN, as appropriate). If an

 

          Number              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.

 

 

 Note: IRS/MCC contacts payers who have submitted payee data

 

 with missing TINS in an attempt to prevent erroneous notices. 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. The letter, however, will not prevent backup

 

 withholding notices (B Notices) or penalties for missing or incorrect

 

 TINS.

 

 

 25-44    Payer's        20   Enter any number assigned by the payer

 

          Account             to the payee (e.g., checking or savings

 

          Number for          account number). Filers are encouraged

 

          Payee               to use this field. This number will help

 

                              to distinguish the individual payee

 

                              records and should be unique for each

 

                              document. Do not use the payee 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 from the IRS

 

                              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.

 

 

 45       IRA/SEP         1   Form 1099-R only. Enter "1" (one) if

 

          Indicator           reporting a distribution from an IRA or

 

          (See Note)          SEP; otherwise, enter a blank.

 

 

 Note: Report the total amount distributed from an IRA or SEP in

 

 Payment Amount Field 2 (taxable amount), as well as Payment Amount

 

 Field 1 (gross distribution) of the "B" Record. Filers may indicate

 

 the taxable amount was not determined by using the Taxable Amount Not

 

 Determined Indicator (position 49) of the "B" Record. However, still

 

 report the amount distributed in Payment Amount Field 2. Refer to the

 

 1994 "Instructions for Forms 1099, 1098, 5498 and W-2G" for the

 

 exceptions.

 

 

 46-47    Percentage      2   Form 1099-R only. Use this field only

 

          of Total            when reporting a total distribution to

 

          Distribution        more than one person, such as when a

 

                              participant dies and filers distribute

 

                              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

 

                              or more will be 11 percent). Enter the

 

                              percentage received by the person whose

 

                              TIN is included in positions 16-24 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 IRA or SEP distributions

 

                              or for direct rollovers.

 

 

 48       Total           1   Form 1099-R only. Enter a "1" (one) only

 

          Distribution        if the payment shown for Amount Code 1

 

          Indicator           is a total distribution, otherwise,

 

                              enter 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.

 

 

 49       Taxable         1   Form 1099-R only. Enter a "1" (one) only

 

          Amount Not          if the taxable amount entered in

 

          Determined          Payment Amount Field 1 (Gross

 

          Indicator           Distribution) of the "B" Record cannot

 

                              be computed, otherwise, enter a blank.

 

                              If the indicator is used, enter "0"

 

                              (zero) in Payment Amount Field 2 of the

 

                              Payee "B" Record. (See Note) Please make

 

                              every effort to compute the taxable

 

                              amount.

 

 

 Note: If reporting an IRA/SEP Distribution for Form 1099-R, the

 

 Taxable Amount Not Determined Indicator may be used; but, it is not

 

 required. If the IRA/SEP Indicator is present, the amount of the

 

 distribution should be reported in Payment Amount Field 2. Refer to

 

 the 1994 "Instructions for Forms 1099, 1098, 5498, and W-2G" for more

 

 information.

 

 

      Filers are instructed to 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.

 

 

 50-51    Blank           2   Enter blanks

 

 

          Payment             Required. Filers must allow for all

 

          Amount              payment amounts. For those not used,

 

          Fields (Must        must enter zeros. For example: If

 

          be numeric)         position 23, Type of Return, of the "A"

 

                              Record is "7" (for 1099-PATR) and

 

                              positions 24-32, Amount Codes, are

 

                              "247bbbbbb" (b = blank), this indicates

 

                              three actual payment amounts are being

 

                              reported in the following "B" Records.

 

                              Payment Amount 1 will be all "0"

 

                              (zeros), Payment Amount 2 will represent

 

                              nonpatronage distributions, Payment

 

                              Amount 3 will be all "0" (zeros),

 

                              Payment Amount 4 will represent federal

 

                              income tax withheld, Payment Amounts 5

 

                              and 6 will be all "0" (zeros), Payment

 

                              Amount 7 will represent energy

 

                              investment credit, and Payment Amounts 8

 

                              and 9 will be all "0" (zeros). Each

 

                              payment field must contain 10 numeric

 

                              characters (see Note). Each payment

 

                              amount must be entered in U.S. dollars

 

                              and cents. The rightmost 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 sign) or "-" (minus

 

                              sign) in the left-most position of the

 

                              payment amount field. A negative

 

                              overpunch 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 overpunch

 

                              is not used, the number is assumed to be

 

                              positive.

 

                              Negative overpunch 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: If filers are reporting a money amount in excess of 9999999999 (dollars and cents), it must be reported as follows:

(1) The first "B" Record must contain 9999999999.

(2) The second "B" Record will contain the remaining money amounts.

DO NOT SPLIT THIS FIGURE IN HALF.

 52-61    Payment        10   The amount reported in this field

 

          Amount 1 /*/        represents payments for Amount Code 1 in

 

                              the "A" Record.

 

 

 62-71    Payment        10   The amount reported in this field

 

          Amount 2 /*/        represents payments for Amount Code 2 in

 

                              the "A" Record.

 

 

 72-81    Payment        10   The amount reported in this field

 

          Amount 3 /*/        represents payments for Amount Code 3 in

 

                              the "A" Record.

 

 

 82-91    Payment        10   The amount reported in this field

 

          Amount 4 /*/        represents payments for Amount Code 4 in

 

                              the "A" Record.

 

 

 92-101   Payment        10   The amount reported in this field

 

          Amount 5 /*/        represents payments for Amount Code 5 in

 

                              the "A" Record.

 

 

 102-111  Payment        10   The amount reported in this field

 

          Amount 6 /*/        represents payments for Amount Code 6 in

 

                              the "A" Record.

 

 

 112-121  Payment        10   The amount reported in this field

 

          Amount 7 /*/        represents payments for Amount Code 7 in

 

                              the "A" Record.

 

 

 122-131  Payment        10   The amount reported in this field

 

          Amount 8 /*/        represents payments for Amount Code 8 in

 

                              the "A" Record.

 

 

 132-141  Payment        10   The amount reported in this field

 

          Amount 9 /*/        represents payments for Amount Code 9 in

 

                              the "A" Record.

 

 

      /*/ If there are discrepancies between these payment amount

 

 codes and the boxes on the paper forms, the instructions in this

 

 revenue procedure govern.

 

 

 142-161  Blank          20   Enter blanks

 

 

 162      Foreign         1   If the address of the payee is in a

 

          Country             foreign country, enter a "1" (one) in

 

          Indicator           this field, otherwise, enter blank. When

 

                              using this indicator, filers 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 Fields.

 

 

 163-202  First Payee    40   Required. Enter the name of the payee

 

 

          Name Line           (preferably surname first) whose

 

                              Taxpayer Identification Number (TIN)

 

                              appears in Sector 1, positions 16-24 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 for a sole proprietor, enter

 

                              the individual's name in the First Payee

 

                              Name Line Field. The business name is

 

                              optional in the Second Payee Name Line

 

                              Field.

 

 

 Note: When reporting Form 1098, Mortgage Interest Statement, the

 

 "A" Record will reflect the name of the recipient of the interest

 

 (the payer). The "B" Record will reflect the individual paying the

 

 interest (the borrower/payer of record) and the amount paid. For

 

 Forms 1099-S, the "B" Record will reflect the seller/transferor

 

 information.

 

 

 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 1994

 

 "Instructions for Forms 1099, 1098, 5498, and W-2G". The

 

 beneficiary's TIN should be reported in position 16-24 of the

 

 "B" Record.

 

 

 203-242  Second Payee   40   If there are multiple payees (e.g.,

 

          Name Line           partners, joint owners, or spouses) use

 

                              this field for those names not

 

                              associated with the TIN in positions 16-

 

                              24 of the "B" Record or if not enough

 

                              space was provided in the First Payee

 

                              Name Line, continue the name in this

 

                              field. Do not enter address information

 

                              in this field. It is important that

 

                              filers provide as much payee information

 

                              to IRS/MCC as possible to identify the

 

                              owner of the TIN. Left justify and fill

 

                              unused positions with blanks. Fill with

 

                              blanks if no entries are present for

 

                              this field.

 

 

 243-256  Blank          14   Enter blanks

 

 

SECTOR 2--FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R AND 5498.

See Part F, Secs. 8, 9, 10, 11, 12 and 13 for field descriptions for Sector 2 of Forms 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S and W-2G.

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P.O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position fields, respectively. For

 

 foreign addresses, filers may use the payee city, state and ZIP

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1" (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for the state

 

                              or the appropriate postal identifier

 

                              (AA, AE, or AP) described in Part A,

 

                              Sec. 18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field located in

 

                              position 162 of Sector 1 of the "B"

 

                              Record.

 

 

 83-112   Blank          30   Enter blanks.

 

 

 113-179  Special Data   67   This portion of the "B" Record may be

 

          Entries             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.

 

 

 180-181  Combined        2   If this payee record is to be forwarded

 

          Federal/            to a state agency as part of the

 

          State Code          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, or for forms not valid for

 

                              state reporting, enter blanks.

 

 

 182-256  Blank          75   Enter blanks.

 

 

SEC. 7. PAYEE "B" RECORD--RECORD LAYOUTS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-C, 1099-OID, 1099-S AND W-2G. [omitted]

SEC. 8. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-A

.01 This section contains information pertaining to Sector 2 of Form 1099-A.

.02 See Part F, Sec. 6 for field descriptions for Sector 1 of the "B" Record for Form 1099-A.

.03 Form 1099-A cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-A--SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B".

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2 and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state, and ZIP

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1" (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for the state

 

                              or the appropriate postal identifier

 

                              (AA, AE, or AP) described in Part A,

 

                              Sec. 18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 field, which is

 

                              located in position 162 of Sector 1 of

 

                              the "B" Record.

 

 

 83-112   Blank          30   Enter blanks

 

 

 113-133  Special Data   21   This portion of the "B" Record may be

 

          Entries             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.

 

 

 134-139  Date of         6   Required for Forms 1099-A only. Enter

 

          Lender's            the date of the acquisition of the

 

          Acquisition         secured property or the date filers

 

          or Knowledge        first knew or had reason to know that

 

          of Abandon-         the property was abandoned in the

 

          ment                format MMDDYY (e.g.,102294). Do not

 

                              enter hyphens or slashes.

 

 

 140      Liability       1   Form 1099-A only. Enter the appropriate

 

          Indicator           indicator from the table below:

 

 

                              Indicator   Usage

 

 

                                  1       Borrower is personally

 

                                          liable for repayment of

 

                                          the debt.

 

                                Blank     Borrower is not liable for

 

                                          repayment of the debt.

 

 

 141-179  Description    39   Required for Form 1099-A only. Enter a

 

          of Property         brief 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-1994 Buick Regal or

 

                              office equipment). Enter "CCC" for crops

 

                              forfeited on Commodity Credit

 

                              Corporation loans. If fewer than 39

 

                              positions are required, left justify and

 

                              fill unused positions with blanks.

 

 

 180-256  Blank          77   Enter blanks.

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-A [omitted]

SEC. 9. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-B

.01 This section contains the general payment information for Sector 2 of Form 1099-B.

.02 See Part F, Sec. 6 for field descriptions for Sector 1 of the Payee "B" Record for Form 1099-B.

.03 Form 1099-B cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-B--SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B".

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state and ZIP

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1"

 

 (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for the state

 

                              or the appropriate postal identifier

 

                              (AA, AE, or AP) described in Part A,

 

                              Sec. 18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field, located in

 

                              position 162 of Sector 1 of the "B"

 

                              Record.

 

 

 83-112   Blank          30   Enter blanks

 

 

 113-122  Special        10   This position of the "B" Record may be

 

 

          Data Entries        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.

 

 

 123      Gross           1   Form 1099-B only. Enter the appropriate

 

          Proceeds            indicator from the following table;

 

          Reported to         otherwise, enter blanks.

 

          IRS

 

          Indicator

 

                            Indicator     Usage

 

                              1          Gross Proceeds

 

                              2          Gross Proceeds less

 

                                         commission and option

 

                                         premiums

 

 

 124-129  Date of Sale    6   Form 1099-B only. 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 format

 

                              MMDDYY (e.g., 102294). Enter blanks if

 

                              this is an aggregate transaction. Do not

 

                              enter hyphens or slashes.

 

 

 130-142  CUSIP Number   13   Form 1099-B only. 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

 

                              "0" (zeros) if the number is not

 

                              available. Right justify and fill the

 

                              remaining positions with blanks.

 

 

 143-181  Description    39   Form 1099-B only. Enter a brief

 

                              description of the item or services for

 

                              which the proceeds or bartering is being

 

                              reported. If fewer than 39 characters

 

                              are required, left justify 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. For bartering transactions,

 

                              show the services or property provided.

 

 

 Note: The amount withheld in these situations is to be included

 

 in Amount Code 4.

 

 

 182-256  Blank          75   Enter blanks

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 2 OF FORM 099-B [omitted]

SEC. 10. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-C

.01 This section contains information pertaining to Sector 2 of Form 1099-C.

.02 See Part F, Sec. 6 for field descriptions for Sector 1 of the "B" Record for Form 1099-C.

.03 Form 1099-C cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-C--SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B".

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2 and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state, and ZIP

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1" (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for the state

 

                              or the appropriate postal identifier

 

                              (AA, AE, or AP) described in Part A,

 

                              Sec. 18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field, which is

 

                              located in position 162 of Sector 1 of

 

                              the "B" Record.

 

 

 83-112   Blank          30   Enter blanks

 

 

 113-133  Special Data   21   This portion of the "B" Record may be

 

          Entries             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.

 

 

 134-139  Date            6   Required for Forms 1099-C only. Payer

 

          Canceled            should enter the date when the debt was

 

                              canceled in the format of MMDDYY (e.g.,

 

                              102294). Do not enter hyphens or

 

                              slashes.

 

 

 140      Bankruptcy      1   Form 1099-C only. Enter "1" (one) to

 

          Indicator           indicate the debt was in bankruptcy.

 

          discharged

 

 

                              Indicator     Usage

 

                                1          Debt was discharged in

 

                              Blank        bankruptcy.

 

                                           Debt was not discharged in

 

                                           bankruptcy.

 

 

 141-179  Debt           39   Form 1099-C only. Enter a description of

 

          Description         the origin of debt, such as student

 

                              loan, mortgage, or credit card

 

                              expenditure.

 

 

 180-256  Blank          77   Enter blanks.

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-C [omitted]

SEC. 11. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-OID

.01 This section contains the general payment information for Sector 2 of Form 1099-OID.

.02 See Part F, Sec. 6 for field descriptions for Sector 1 of the "B" Record for Form 1099-OID.

                     RECORD NAME: PAYEE "B" RECORD

 

                     FORM 1099-OID--SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state, and ZIP

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1" (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2  Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for states or

 

                              the appropriate postal identifier (AA,

 

                              AE, or AP) as described in Part A, Sec.

 

                              18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify and fill the

 

                              unused positions with blanks. For

 

                              foreign countries, alpha characters are

 

                              acceptable as long as filers have

 

                              entered a "1" (one) in the Foreign

 

                              Country Indicator Field, which is

 

                              located in position 162 of Sector 1 of

 

                              the "B" Record.

 

 

 83-112   Blank          30   Enter blanks.

 

 

 113-140  Special        28   This position of the "B" Record may be

 

          Data                used to record information for state

 

          Entries             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.

 

 

 141-179  Description    39   Required for Form 1099-OID only. 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 of maturity (e.g.,

 

                              NYSE XYZ 12 1/2 96). Show the name of

 

                              the issuer if other than the payer. If

 

                              fewer than 39 characters are required,

 

                              left-justify and fill unused positions

 

                              with blanks.

 

 

 180-181  Combined        2   If a payee record is to be forwarded to

 

          Federal/            a state agency as part of the Combined

 

          State Code          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, or for

 

                              forms not valid for state reporting,

 

                              enter blanks.

 

 

 182-256  Blank          75   Enter blanks.

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-OID [Omitted]

SEC. 12. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-S

.01 This section contains the general payment information for Sector 2 of Form 1099-S.

.02 See Part F, Sec. 6 for field descriptions for Sector 1 of the Payee "B" Record for Forms 1099-S.

.03 Form 1099-S cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-S--SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state, and ZIP

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1" (one).

 

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for states or

 

                              the appropriate postal identifier (AA,

 

                              AE, or AP) described in Part A, Sec. 18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field, which is

 

                              located in position 162 of Sector 1 of

 

                              the "B" Record.

 

 

 83-110   Blank          28   Enter blanks.

 

 

 111-133  Special Data   23   This position of the "B" Record may be

 

          Entries             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.

 

 

 134-139  Date of         6   Required for Form 1099-S only. Enter the

 

          Closing             closing date in the format MMDDYY (e.g.,

 

                              102394). Do not enter hyphens or

 

                              slashes.

 

 

 140-178  Address or     39   Required for Form 1099-S only. Enter the

 

          Legal               address of the property transferred

 

          Description         (including city, state, and ZIP Code).

 

                              If the address does not sufficiently

 

                              identify 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 and fill unused

 

                              positions with blanks.

 

 

 179      Property or     1   Required for Form 1099-S only. Enter "1"

 

          Services            (one) if the transferor received or will

 

          Received or         receive property (other than cash

 

          To Be               and consideration treated as cash in

 

          Received            computing gross proceeds) or services as

 

                              part of the consideration for the

 

                              property transferred. Also, enter a "1"

 

                              (one), if the transferor may receive

 

                              property (other than cash) or services

 

                              to satisfy a debt having a stated

 

                              principal amount, otherwise, enter a

 

                              blank.

 

 

 180-256  Blank          77   Enter blanks.

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-S [omitted]

When reporting Form 1099-S, the "B" Record will reflect the seller/transferor information.

SEC. 13. PAYEE "B" RECORD--FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM W-2G

.01 This section contains the general payment information for Sector 2 of Form W-2G.

.02 See Part F, Sec. 6 for field descriptions for Sector 1 of the Payee "B" Record for Form W-2G.

.03 Form W-2G cannot be filed under the Combined Federal/State Filing Program.

                     RECORD NAME: PAYEE "B" RECORD

 

                       FORM W-2G--SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "2" to sequence the

 

          Sequence            sectors making up a payee record.

 

 

 2        Record Type     1   Required. Enter "B"

 

 

 3-42     Payee          40   Required. Enter mailing address of

 

          Mailing             payee. Street address should include

 

          Address             number, street, apartment or suite

 

                              number (or P. O. Box if mail is not

 

                              delivered to street address). Left

 

                              justify 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 29, 2, and 9 position field, respectively. For

 

 foreign addresses, filers may use the payee city, state and Zip

 

 Code as a continuous 40 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 Field, Sector 1, position 162, must contain a "1" (one).

 

 

               RECORD NAME: PAYEE "B" RECORD--Continued

 

                       FORM W-2G--SECTOR 2 ONLY

 

 

 SECTOR 2 (Continued)

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 43-71    Payee City     29   Required. Enter the city, town, or post

 

                              office. Left justify and fill the unused

 

                              positions with blanks. Enter APO or FPO

 

                              if applicable. Do not enter state and

 

                              ZIP Code information in this field.

 

 

 72-73    Payee State     2   Required. Enter the valid U.S. Postal

 

                              Service state abbreviation for states or

 

                              the appropriate postal identifier (AA,

 

                              AE, or AP) as described in Part A, Sec.

 

                              18.

 

 

 74-82    Payee ZIP       9   Required. Enter the valid nine-digit ZIP

 

          Code                Code assigned by the U.S. Postal

 

                              Service. If only the first five digits

 

                              are known, left justify 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 Field, located in

 

                              position 162 of Sector 1 of the "B"

 

                              Record.

 

 

 83-112   Blank          30   Enter blanks

 

 

 113-118  Date Won        6   Required for Form W-2G only. Enter the

 

                              date of the winning event in the format

 

                              MMDDYY (e.g., 102294). This is not the

 

                              date the money was paid, if paid after

 

                              the date of the race (or game). Do not

 

                              enter hyphens or slashes.

 

 

 119-133  Transaction    15   Required for Form W-2G only. 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. All

 

                              others, enter blanks.

 

 

 134-138  Race            5   Form W-2G only. If applicable, enter the

 

                              race (or game) relating to the winning

 

                              ticket; otherwise, enter blanks.

 

 

 139-143  Cashier         5   Form W-2G only. If applicable, enter

 

                              initials of the cashier making the

 

                              winning payment; otherwise, enter

 

                              blanks.

 

 

 144-148  Window          5   Form W-2G only. If applicable, enter the

 

                              window number or location of the person

 

                              paying the winnings; otherwise, enter

 

                              blanks.

 

 

 149-163  First ID       15   Form W-2G only. If applicable, enter the

 

                              first identification number of the

 

                              person receiving the winnings;

 

                              otherwise, enter blanks.

 

 

 164-178  Second ID       15  Form W-2G only. If applicable, enter the

 

                              second identification number of the

 

                              person receiving the winnings;

 

                              otherwise, enter blanks.

 

 

 179-256  Blank           78  Enter blanks.

 

 

PAYEE "B" RECORD--RECORD LAYOUT FOR SECTOR 2 OF FORM W-2G [omitted]

SEC. 14. END OF PAYER "C" RECORD--RECORD LAYOUT

.01 The End of Payer "C" Record consists of one 256-position sector. The control total fields are each 15 positions in length.

.02 The "C" Record consist 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 filers used Amount Codes 1, 3, and 6 in the "A" Record, the totals from the "B" Records will appear in Control Totals 1, 3, and 6 of the "C" Record. In this example, positions 27-41, 57-86, and 102-146 would be zero 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

 

 

 SECTOR 1

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "1" (one) to sequence

 

          Sequence            the sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "C".

 

 

 3-8      Number of       6   Required. Enter the total number Payees

 

          Payees              of "B" Records covered by the preceding

 

                              "A" Record. Right justify and zero fill.

 

 

 9-11     Blank           3   Enter blanks.

 

 

 Required. Accumulate totals of any payment amount fields in the

 

 "B" Records into the appropriate control total field of the "C"

 

 Record. Control totals must be right-justified, and unused control

 

 total fields must be zero filled. All control total fields are 15

 

 positions in length.

 

 

 12-26       Control     15

 

             Total 1

 

 27-41       Control     15

 

             Total 2

 

 42-56       Control     15

 

             Total 3

 

 57-71       Control     15

 

             Total 4

 

 72-86       Control     15

 

             Total 5

 

 87-101      Control     15

 

             Total 6

 

 102-116     Control     15

 

             Total 7

 

 117-131     Control     15

 

             Total 8

 

 132-146     Control     15

 

             Total 9

 

 

 147-256  Blank         110   Enter blanks.

 

 

END OF PAYER "C" RECORD--RECORD LAYOUT [omitted]

SEC. 15. STATE TOTALS "K" RECORD--RECORD LAYOUT

.01 The State Totals "K" Record consists of one 256-position sector. The control total fields are each 15 positions in length.

.02 The "K" Record is a summary for a given payer and type of return to 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 filers used Amount Codes 1, 3 and 6 in the "A" Record, the totals from the "B" Records coded for this state will 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 on this program.

                 RECORD NAME: END OF PAYER "K" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record          1   Required. Enter a "1" (one) to sequence

 

          Sequence            the sectors making up a payer record.

 

 

 2        Record Type     1   Required. Enter "K".

 

 

 3-8      Number of       6   Required. Enter the total number of "B"

 

          Payees              Records being coded for this state.

 

                              Right justify and zero fill.

 

 

 9-11     Blank           3   Enter blanks.

 

 

 Required. Accumulate totals of any payment amount fields in the

 

 Payee "B" Records (for each state being reported) into the

 

 appropriate control total fields in the "K" Record. Control totals

 

 must be right-justified, and unused control total fields must be zero

 

 filled. All Control Total Fields are 15 positions in length.

 

 

 12-26       Control     15

 

             Total 1

 

 27-41       Control     15

 

             Total 2

 

 42-56       Control     15

 

             Total 3

 

 57-71       Control     15

 

             Total 4

 

 72-86       Control     15

 

             Total 5

 

 87-101      Control     15

 

             Total 6

 

 102-116     Control     15

 

             Total 7

 

 117-131     Control     15

 

             Total 8

 

 132-146     Control     15

 

             Total 9

 

 

 147-254  Blank         108   Enter blanks.

 

 

 255-256  Combined        2   Required. Enter the code assigned to the

 

          Federal/            state which is to receive the

 

          State Code          information. (Refer to Part A, Sec. 16,

 

                              Table 1.)

 

 

END OF PAYER "K" RECORD--RECORD LAYOUT [omitted]

SEC. 16. END OF TRANSMISSION "F" RECORD--RECORD LAYOUT

.01 The End of Transmission "F" Record consists of one 256-position sector. 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

 

 

 SECTOR 1

 

 

 Diskette

 

 Position Field Title  Length Description and Remarks

 

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

 

 1        Record Type     1   Required. Enter "F".

 

 

 2-5      Number of       4   Enter the total number of "A" Records in

 

          "A" Records         the entire file. Right justify and zero

 

                              fill or enter all zeros.

 

 

 6-30     Zero           25   Enter zeros.

 

 

 31-256   Blank         226   Enter blanks.

 

 

END OF TRANSMISSION "F" RECORD--RECORD LAYOUT [omitted]

PART G. MISCELLANEOUS INFORMATION

SEC. 1. RECORD FORMAT USED TO REQUEST AN EXTENSION OF TIME, MAGNETICALLY OR ELECTRONICALLY

.01 The following specifications contain the required 200-byte record format for extension of time to file requests submitted on magnetic media or via IRP-BBS. Also included are the instructions for the information that is to be entered in the record. There have been numerous changes in the extension request record format and guidelines. Filers are advised to read this section in its entirety to ensure proper filing.

.02 If requesting an extension of time to file for ten or more payers, IRS encourages transmitters to submit the request on magnetic media or via IRP-BBS. Acceptable types of magnetic media are tape, tape cartridge, 5 1/4- and 3 1/2-inch diskette. For extension requests filed on magnetic media, the transmitter must send the completed, signed Form 8809, Request for Extension of Time to File Information Returns, in the same package with the corresponding media. For extension requests filed electronically, the transmitter must send the Form 8809 the same day the transmission is made. Do not submit a list of payer names and TINs.

.03 For tax year 1995, transmitters requesting an extension of time to file for more than 50 payers will be required to file the extension request magnetically or electronically.

.04 See Part A, Sec. 11, for complete information on requesting an extension of time to file information returns. In order to be considered, the request must be postmarked or transmitted by the due date of the returns, otherwise, the request will be denied.

.05 The record format is also on IRP-BBS and can be downloaded. See Part D for more information on how to contact the IRP-BBS.

.06 A magnetically-filed request for an extension of time should be sent using the following addresses:

     If by Postal Service:

 

     IRS-Martinsburg Computing Center

 

     Attn: Extension of Time Coordinator

 

     P.O. Box 879

 

     Kearneysville, WV 25430

 

 

                or

 

 

     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.

.07 Transmitters who submit their extension of time requests magnetically or electronically will receive a letter from IRS/MCC with an attached list of the payers specifying approval and/or denial.

.08 Do not submit tax year 1994 extension of time to file requests on magnetic media or electronically before January 1, 1995.

.09 Each piece of magnetic media must have an external label. The TCC, tax year, the words "Extension of Time", and record count must be provided on the external label. Form 5064 or transmitter generated substitute may be used.

.10 If the first request for an extension of time to file was submitted magnetically or electronically and additional time to file is needed, submit a new file to request the additional extension. 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. A second 30 day extension will be approved only in cases of extreme hardship or catastrophic event.

.11 If additional information is needed on the record format, contact IRS/MCC.

.12 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) Fixed block size of 4000 bytes.

(e) Record length of 200 bytes.

(f) Labeled or unlabeled tapes may be submitted.

.13 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. In Box 7 of Form 8809, indicate 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) Fixed block size of 4000 bytes.

(d) Record length of 200 bytes.

(e) Labeled or unlabeled tape cartridges may be submitted.

.14 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. 3, 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 (,) 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.

.15 Positions 6 through 174 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, other than the Transmitter Control Code (TCC). Only one TCC may be present in a file.

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 1-5      Transmitter     5   Required. Enter the five-digit

 

          Control Code        Transmitter Control Code issued by IRS.

 

          (TCC)               Only one TCC per file is acceptable.

 

 

 6-14     Payer TIN       9   Required. Must be the valid nine-digit

 

                              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. For foreign entities that are not

 

                              required to have a TIN, this field may

 

                              be blank; however, the Foreign Entity

 

                              Indicator, position 175, should 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.

 

 

 55-94    Second Payer   40   If additional space is needed, this

 

          Name                field may be used to continue name line

 

                              information (e.g., % First National

 

                              Bank), otherwise, enter blanks.

 

 

 95-134   Payer          40   Required. Enter payer address. Street

 

          Address             address should include number, street,

 

                              apartment or suite number (or P.O. Box

 

                              if mail is not delivered to a street

 

                              address).

 

 

 135-163  Payer City     29   Required. Enter payer city, town, or

 

                              post office.

 

 

 164-165  Payer State     2   Required. Enter payer valid U.S. Postal

 

                              Service state abbreviation (refer to

 

                              Part A, Sec. 18).

 

 

 166-174  Payer ZIP       9   Required. Enter payer ZIP code if using

 

          Code                a five-digit ZIP code, left justify and

 

                              blank fill.

 

 

 Field

 

 Position Field Title  Length Description and Remarks

 

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

 

 175      Document        1   Required. Enter the document you are

 

          Indicator           requesting an extension of time for

 

                              using the following code:

 

 

                              Code     Document

 

 

                               1       W-2

 

                               2       1098, 1099-A, 1099-B, 1099-C,

 

                                       1099-DIV, 1099-G, 1099-INT,

 

                                       1099-MISC, 1099-OID, 1099

 

                                       -PATR, 1099-R, 1099-S, or W-2G

 

                               3       5498

 

                               4       1042-S

 

                               5       1042

 

 

                              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 1099-INT and

 

                              5498 for the same payer, submit one

 

                              record with a "2" coded in this field

 

                              and another record with a "3" coded in

 

                              this field. If you are requesting an

 

                              extension for 1099-DIV and 1099-MISC for

 

                              the same payer, submit one record with

 

                              "2" coded in this field.

 

 

 176      Foreign         1   Enter character "X" if the payer is a

 

          Entity              foreign entity.

 

          Indicator

 

 

 177-198  Blank          22   Enter blanks.

 

 

 199-200  Blank           2   Enter blanks. Diskette filers may code

 

                              the ASCII carriage return/line feed

 

                              (cr/lf) characters.

 

 

RECORD LAYOUT [omitted]
DOCUMENT ATTRIBUTES
Copy RID