IRS Provides Specifications For Filing Form 8851.

Rev. Proc. 2001-31

NOTE: This revenue procedure may be used to prepare Form 8851, Summary of Archer MSAs, for submission to Internal Revenue Service (IRS) using any of the following:

     Magnetic Tape

PART A. GENERAL

Section 1. Purpose

Section 2. Where to File and How to Contact the IRS Martinsburg Computing Center

Section 3. Filing Requirements

Section 4. Filing of Form(s) 8851 Magnetically/Electronically

Section 5. Preparation Instructions for Media Label

Section 6. Due Dates

Section 7. Processing of Information Returns Magnetically/Electronically

Section 8. Effect on Paper Documents

Section 9. Definition of Terms

PART B. MAGNETIC MEDIA SPECIFICATIONS

Section 1. General

Section 2. Tape Specifications

Section 3. Tape Cartridge Specifications

Section 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications

Section 5. 3 1/2 -Inch Diskette Specifications

Section 6. Data Sequence Specifications

Section 7. The Trustee 'A' Record -- General Field Descriptions and Record Layout

Section 8. The Account Holder 'B' Record -- General Field Descriptions and Record Layout

Section 9. The Control Total 'C' Record -- General Field Descriptions and Record Layout

PART C. ELECTRONIC FILING SPECIFICATIONS

Section 1. Background

Section 2. Advantages of Filing Electronically

Section 3. General

Section 4. Electronic Filing Approval Procedure

Section 5. Electronic Submissions

Section 6. Electronic Filing Specifications

Section 7. Dial-up Network/Browser Specifications (Web Interface)

Section 8. Communications Software Specifications (Text Interface)

Section 9. Modem Configuration

PART A. GENERAL

.01 Numerous editorial changes were made to this revenue procedure. Major changes are emphasized by the use of italics. Filers are urged to read the revenue procedure in its entirety.

.02 Part C, Electronic Filing Specifications, is completely revised. Because of the extensive revision italics have not been extensively used.

.03 Part B, Sec. 01, Trustee 'A' Record, has the only programming change. This change affects the report period.

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to provide the specifications under which trustees may file Form 8851, Summary of Archer MSAs, magnetically or electronically.

.02 Comments concerning this revenue procedure, or suggestions for making it more helpful and user friendly, can be addressed to:

     IRS-Martinsburg Computing Center

SECTION 2. WHERE TO FILE AND HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER

.01 All Forms 8851 filed magnetically or electronically are processed at IRS/MCC. Send magnetic media files and any correspondence to MCC at the following address:

     IRS-Martinsburg Computing Center

.03 The Information Reporting Program (IRP) Call Site, located at the Martinsburg Computing Center, provides service to the payer/employer community (financial institutions, employers, and other transmitters of information returns). The IRP Call Site answers questions concerning tax law and magnetic/electronic filing of Forms 8851 and other information returns (Forms 1096, 1098, 1099, 5498, W- 2G, 1042-S, 8027 and Questionable Forms W-4), inquiries dealing. with backup withholding due to missing and incorrect taxpayer identification numbers and questions concerning paper filing of Forms W-2 and W-3. The Call Site can also be reached via their e-mail address mccirp@irs.gov. Recipients of information returns (payees) should continue to contact 1-800-829-1040 or other numbers specified in the tax return instructions with any questions on how to report tax returns.

The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700 or Telecommunications Device for the Deaf (TDD) 304-267-3367. These are toll calls. Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern Time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high demand for assistance at the end of January and February, it is advisable to call as soon as possible to avoid these peak filing seasons.

.04 The telephone numbers for inquiries or electronic submissions are:

     304-263-8700 - Call Site or email

TO OBTAIN FORMS & PUBLICATIONS, CALL: 1-800-TAX-FORM (1-800-829- 3676)

TO OBTAIN FORMS & PUBLICATIONS VIA THE INTERNET:

www.irs.gov

SECTION 3. FILING REQUIREMENTS

.01 If you are required to report 250 or more Archer MSAs, you must file magnetically or electronically. Even though a trustee may not meet the required filing threshold of 250 documents, IRS encourages the filing of the Form 8851 magnetically/electronically.

.02 Filers who are required to submit their Forms 8851 on magnetic media may choose to submit their documents electronically instead. Filers who transmit their information electronically are considered to have satisfied the magnetic media filing requirements.

.03 The filing requirement applies 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 filing for a corporation with several branches or locations and each uses the same name and EIN, the filer must aggregate the total volume to be filed for that EIN and apply the filing requirement accordingly.

.04 For additional information on filing requirements, please refer to the instructions on Form 8851.

SECTION 4. FILING OF FORM 8851 MAGNETICALLY/ELECTRONICALLY

.01 Form 8851, Summary of Archer MSAs, MUST accompany ALL magnetic media shipments. If you wish to file electronically, complete Form 8851 above line 'a' (trustee's information only) and send it to:

     IRS-Martinsburg Computing Center

.02 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents must not be filed.

.03 A self-adhesive external media label, created by the filer, must be affixed to each piece of magnetic media (See Sec. 5). If diskettes are used, be certain that only MS-DOS compatible operating systems were used to prepare the diskettes. Non-MS-DOS diskettes are no longer acceptable at IRS/MCC.

.04 On the outside of the shipping container, affix or attach a label which reads "IRB Box ___of ___" reflecting the number of containers in the shipment. 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).

.05 When submitting files include the following:

(a) Form 8851;

(b) External media label affixed to the magnetic media;

(c) IRB Box __ of __ outside label.

.06 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.

SECTION 5. PREPARATION INSTRUCTIONS FOR MEDIA LABEL

Please create your own pressure sensitive label containing the following information:

 Type of filing: Indicate whether data is Original or Replacement.

For tape cartridge, indicate operating system, either EBCDIC or ASCII, and either 18, 36, 128 or 256 track.

Number of account holders: Indicate the total number of Account Holder "B" Records reported on the media.

Trustee number for media: If available, provide the in-house number assigned by your organization to the tapes, tape cartridges, or diskettes.

Media sequence: Indicate sequence number of media and total number of media in file (for example: Media sequence 1 of 3, 2 of 3, 3 of 3).

Please affix external label to appropriate area on magnetic media, so it will not hinder the ability to process media.

SECTION 6. DUE DATES

.01 The due dates for filing paper returns with IRS also apply to magnetic media or electronic filing. File Form 8851, postmarked no later than August 1, 2001, to report the number of Archer MSAs you established from January 1 through June 30, 2001.

.02 When using a delivery service other than the U.S. Postal Service, if no date of shipment appears on the package or container, the date of receipt will be the date received at IRS/MCC.

SECTION 7. 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 you are filing information for more than one trustee, each trustee must be reported on separate media and/or transmitted separately, if filing electronically.

.03 If the data is formatted incorrectly, IRS/MCC will request a replacement file in writing. When IRS/MCC requests a replacement file, it is because we encountered errors (not limited to format) and were unable to process the media. Filers will receive a Media Tracking Slip (Form 9267), listing and letter detailing the reason(s) their media could not be processed. It is imperative that filers maintain backup copies and/or recreate capabilities for their information return files. Open all IRS/MCC correspondence immediately. Refer to Part C, Section 5, for procedures for replacing files submitted electronically.

.04 The following definition has been provided to help identify a replacement:

A Replacement is an information return file sent by the filer at the request of IRS/MCC because of errors encountered while processing the filers original submission. (See Note 1).

NOTE 1: Filers should never send anything to IRS/MCC marked "Replacement" unless IRS/MCC has requested a replacement file in writing or via the FIRE System.

NOTE 2: IRS/MCC no longer returns problem media in need of replacement.

Filers will receive a tracking slip, listing and letter detailing the reason(s) their media could not be processed. Filers will be expected to send a replacement file within the prescribed time frame. This makes it imperative that filers maintain backup copies and/or recreate capabilities for their information return files.

.05 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of the letter. Refer to Part C, Section 5, for procedures for replacing files submitted electronically.

.06 IRS/MCC will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/MCC received a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery.

.07 IRS/MCC will work with the filers to identify and resolve processing problems. If contacted by IRS/MCC, please respond promptly. IRS/MCC may have information the filers need to correct their files.

.08 Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.

SECTION 8. EFFECT ON PAPER DOCUMENTS

.01 Magnetic or electronic reporting eliminates the need to submit paper Forms 8851 to IRS.

.02 Even though the threshold for filing magnetically or electronically is 250 or more MSAs, IRS encourages transmitters to submit all returns magnetically or electronically.

.03 The address for filing paper Forms 8851 is:

     IRS -- Martinsburg Computing Center

SECTION 9. DEFINITION OF TERMS

 Element             Description

SECTION 1. GENERAL

.01 These specifications prescribe the required format and content of the Trustee 'A,' Account Holder 'B,' and Control Total 'C' records to be included in the magnetic media file. Usually, IRS/MCC will be able to process any compatible file. Deviations cannot and will not be permitted in any of the data fields.

.02 If you are filing for more than one trustee, each trustee must be reported on a separate tape, tape cartridge, 8mm, 4mm, and QIC (Quarter Inch Cartridge) cartridge, diskette, or in a separate electronic transmission. A separate Form 8851 is required for each.

.03 An external label must appear on each tape, diskette, or cartridge submitted. The following information is needed on the label:

     (a) Type of filing (i.e., Original).

.04 Regardless of the type of media used or if returns are filed electronically, the record length must be 150 positions.

SECTION 2. TAPE SPECIFICATIONS

NOTE: Beginning in calendar year 2003 for Tax Year 2002, 9 track magnetic tape will no longer be an acceptable method for submitting Information Returns to IRS/MCC.

.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.

     (1) Odd parity.

     (a) Tape thickness: 1.0 or 1.5 mils and

     (a) A block must not exceed 30,000 tape positions.

.05 For the purposes of this Revenue Procedure the following must be used: Tape Mark:

     (a) Signifies the physical end of the recording on tape.

SECTION 3. TAPE CARTRIDGE SPECIFICATIONS

.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:

     (a) Must be IBM 3480, 3490, 3490E, 3590, 3590E or AS400

     (a) A block must not exceed 30,000 tape positions.

.04 For the purposes of this Revenue Procedure, the following must be used:

Tape Mark:

     (a) Signifies the physical end of the recording on tape.

SECTION 4. 8mm, 4mm, AND QUARTER-INCH CARTRIDGE SPECIFICATIONS

.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:

     (a) Must meet American National Standard Institute (ANSI)

     (a) A block must not exceed 30,000 tape positions.

.03 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a suggested filename.

.04 For the purposes of this Revenue Procedure, the following must be used: Tape Mark:

     (a) Signifies the physical end of the recording on tape.

.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.

.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:

     (a) 4mm cassettes will be 2 1/4-inch by 3-inch.

.08 Various Quarter-Inch Cartridges (QIC) (1/4-inch) are also acceptable.

     (a) QIC cartridges will be 4 inch by 6 inch.

IRS/MCC has discontinued processing 5 1/4-inch diskettes.

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

     (a) 3 1/2-inches in diameter.

.03 IRS/MCC will only accept 3 1/2-inch diskettes created using MS-DOS.

.04 3 1/2-inch diskettes created on a System 36 or AS400 are not acceptable.

.05 Transmitters should check media for viruses before submitting it to IRS/MCC.

SECTION 6. DATA SEQUENCE SPECIFICATIONS

.01 In order to be acceptable, records within the file must be in the following sequence:

     (a) A Trustee "A" Record

SECTION 7. THE TRUSTEE "A" RECORD -- GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT

.01 This record identifies the entity preparing and transmitting the file. The first record of a file MUST be a Trustee "A" Record, (preceded only by header labels, if any), and must appear on each tape and cartridge. Otherwise, the file will be returned for replacement. The "A" Record is a fixed length of 150 positions.

 _____________________________________________________________________

.01 The "B" record contains the account holder information. The format of the "B" record will remain constant and is a fixed length of 150 positions.

 _____________________________________________________________________

.01 Enter a "C" Record after the last "B" Record submitted for a particular Trustee "A" Record. The "C" Record serves as a summary of the preceding "B" Records' data, and enables IRS to cross check the correctness of information received.

.02 A "C" Record may only be followed by "B" Records reported for a trustee, or by a tape mark and/or trailer label when more reels follow this reel. The "C" Record can be the last record on the file.

.03 Each "C" Record has a fixed length of 150 positions.

.04 If the field is not applicable, allow for the field by entering blanks or zeros as instructed.

 _____________________________________________________________________

SECTION 1. BACKGROUND

.01 All electronic filing of information returns are received at IRS/MCC via the FIRE (Filing Information Returns Electronically) System. The FIRE System can be accessed via analog and ISDN BRI connections. The system is designed to support the electronic filing of information returns only. The telephone number for electronic filing is (304-262-2400).

SECTION 2. ADVANTAGES OF FILING ELECTRONICALLY

Some of the advantages of filing electronically are as follows:

     (1) Results available within 10 workdays regarding the

.01 Electronic filing of Forms 1098, 1099, 5498, 8851, 1042-S, 8027, Questionable W-4s (QWF) and W-2G, originals, 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. Transmitters filing electronically will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns electronically. If the original file was sent magnetically, but IRS/MCC has requested a replacement file, the replacement 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 and will direct taxpayers, to the Customer Service toll-free number (1-800-829-1040).

.03 Files submitted to IRS/MCC electronically must be in standard ASCII code. No magnetic media or paper forms are to be submitted with the same information as the electronically submitted file.

.04 The formats of the "A", "B", and "C" records are the same for electronically filed records as they are for magnetic media, and must be in standard ASCII code. For electronically filed documents, each transmission is considered a separate file; therefore, each transmission must begin with a Trustee "A" Record and end with a Control Total "C" Record.

SECTION 4. ELECTRONIC FILING APPROVAL PROCEDURE

.01 Filers must send a Form 8851 to IRS/MCC prior to filing the Form(s) 8851 electronically. Only trustee information should be provided on the Form 8851 when filing electronically. Please annotate the Form 8851 with "Electronic Filing" to indicate the method of filing. The Form 8851 may also be faxed to IRS/MCC in order to expedite electronic processing. The fax number is (304) 264-5602.

.02 Electronic filers assign their own logon name and password and do not need prior or special approval.

.03 For all passwords, it is the user's responsibility to remember the password and not allow the password to be compromised. Passwords are user assigned at first logon and are up to 8 alpha/numerics, which are case sensitive. However, if filers forget their password, call 304-263-8700 for assistance. The FIRE System will require users to change their passwords on a yearly basis.

SECTION 5. 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 Files submitted electronically will be assigned a unique filename by the FIRE System (the users may name files anything they choose from their end). The filename assigned by the FIRE System will consist of submission type [ORIG (original), and REPL (replacement)], the filer's TCC and a four digit number sequence. The sequence number will be incremented for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename would be ORIG.44444.0001. Record the filename. This information will be needed by MCC to identify the file, if assistance is required.

.03 Filers are advised not to resubmit an entire file if records were omitted from the original transmission. This will result in duplicate filing. A new file should be sent consisting of the records that had not previously been submitted.

.04 The TCC in the Trustee "A" Record must be the TCC used to transmit the file; otherwise, the file will be considered an error.

SECTION 6. ELECTRONIC FILING SPECIFICATIONS

.01 The FIRE System is designed exclusively for the filing of Forms 1042-S, 1098, 1099, 5498, 8027, 8851, W-2G and Questionable W- 4s.

.02 A transmitter must call IRS/MCC regarding the TCC and EIN to be used on the FIRE System for Form 8851.

.03 The results of the electronic transmission of Form 8851 will be available in the File Status area of the FIRE System within 10 business days. It is the filer's responsibility to dial back to verify the acceptability of files submitted by checking the file status area of the system. These reports will be available on the electronic system in 10 workdays after the transmission is received by IRS/MCC.

.04 Connect to the FIRE System by dialing 304-262-2400. This number supports analog connections from 1200bps to 56Kbps or ISDN BRI 128Kbps. The system can be accessed via Dial-up network/web browser (see Section 9) or communications software (see Section 10). The Dial-up network/web browser (point-to-point) will provide an Internet-like look, however, it is not the Internet. If you do not have this capability, a text interface is provided that can be accessed via communication software such as Hyperterminal, Procomm, PCAnywhere, etc.

SECTION 7. DIAL-UP NETWORK/BROWSER SPECIFICATIONS (WEB INTERFACE)

.01 The following are some general instructions (many of these settings may already be set by default in your software):

Dial-up network settings:

     (a) Set dial-up server type to PPP

UPLOADING FILES WITH DIAL-UP NETWORKING/WEB BROWSER IN WINDOWS 95/98/2000/ME

Tips

(1) This is a point-to-point connection -- not the Internet.

_____________________________________________________________________

     Click 'Log On'.

     To check the acceptability of a previously submitted file:

Go back into your Dial-Up Network and click 'hang-up'; otherwise, you may stay connected and incur unnecessary phone charges.

SECTION 8. COMMUNICATION SOFTWARE SPECIFICATIONS (TEXT INTERFACE)

.01 Communications software settings must be:

     - No parity

.03 Due to the large number of communication products available, it is impossible to provide specific information on all software/hardware configurations. However, since filers use Windows 95, 98, NT, 2000, or ME software, the following instructions are most compatible with those products (Procomm, PCAnywhere and many other communications packages are also acceptable and the product does not necessarily need to be Windows based.)

Uploading Files Using Hyperterminal in Windows 95, 98, NT, 2000, or ME

     Select Programs

     'A' Replacement Files For This System

.01 Hardware features

     (a) Enable hardware flow control