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IRS Releases Electronic And Magnetic Media Filing Requirements.

MAY 22, 2000

Rev. Proc. 2000-25; 2000-1 C.B. 1033

DATED MAY 22, 2000
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    filing, electronic
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-14440 (76 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 101-7
Citations: Rev. Proc. 2000-25; 2000-1 C.B. 1033

Superseded by Rev. Proc. 2001-32

Rev. Proc. 2000-25

Use this Revenue Procedure to prepare Tax Year 2000 and prior year information returns for submission to Internal Revenue Service (IRS) using any of the following:

     - Magnetic Tape

 

     - Tape Cartridge

 

     - 8mm, 4mm, and Quarter Inch Cartridges (QIC)

 

     - 3-1/2-Inch Diskette

 

     - Electronic Filing

 

 

Caution to filers: Please read this publication carefully. Persons or businesses required to file information returns magnetically or electronically may be subject to penalties for failure to file or include correct information if they do not follow the instructions in this Revenue Procedure.

Beginning in calendar year 2002 for Tax Year 2001, IRS/MCC will no longer return problem media in need of replacement. See Part A, Sec. 2.03 (a) for details.

Table of Contents

Part A. General

 

 

Section 1. Purpose

 

Section 2. Nature of Changes -- Current Year (Tax Year 2000)

 

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 and Statements to Recipients

 

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

 

Section 5. 3 1/2-Inch Diskette Specifications

 

Section 6. Transmitter "T" Record -- General Field Descriptions

 

Section 7. Transmitter "T" Record -- Record Layout

 

Section 8. Payer "A" Record -- General Field Descriptions

 

Section 9. Payer "A" Record -- Record Layout

 

Section 10. Payee "B" Record General Field Descriptions and Record

 

             Layouts

 

        (1) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Forms 1098 and 1098-E

 

        (2) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1098-T

 

        (3) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-A

 

        (4) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-B

 

        (5) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-C

 

        (6) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-DIV

 

        (7) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-G

 

        (8) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-INT

 

        (9) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-LTC

 

        (10) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-MISC

 

        (11) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-MSA

 

        (12) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form OID

 

        (13) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-PATR

 

        (14) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-R

 

        (15) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 1099-S

 

        (16) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 5498

 

        (17) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form 5498-MSA

 

        (18) Payee "B" Record -- Record Layout Positions 544-750 for

 

             Form W-2G

 

Section 11. End of Payer "C" Record -- General Field Descriptions

 

             and Record Layout

 

Section 12. State Totals "K" Record -- General Field Descriptions

 

             and Record Layout

 

Section 13. End of Transmission "F" 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. Test Files

 

Section 6. Electronic Submissions

 

Section 7. Transmittal Requirements

 

Section 8. Electronic Filing Specifications

 

Section 9. Dial-up Network/Browser Specifications (Web Interface)

 

Section 10. Communication Software Specifications (Text Interface)

 

Section 11. Modern Configuration

 

Section 12. Common Problems Associated with Electronic Filing

 

 

Part D. Magnetic/Electronic Specifications for Extensions of Time

 

 

Section 1. General

 

Section 2. Magnetic Tape, Tape Cartridge, 8mm, 4mm, and QIC

 

             (Quarter Inch Cartridge), 3 1/2-inch Diskette, and

 

             Electronic Specifications

 

Section 3. Record Layout

 

 

Part E. Miscellaneous Information

 

 

Section 1. Addresses for Martinsburg Computing Center

 

Section 2. Telephone Numbers for Contacting IRS/MCC

 

 

Part A. General

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

 

     Attn: Information Reporting Program

 

     230 Murall Drive

 

     Kearneysville, WV 25430

 

 

Section 1. Purpose

.01 The purpose of this Revenue Procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W-2G magnetically or electronically, which includes 1/2-inch magnetic tape; IBM 3480, 3490 or AS400 compatible tape cartridges (including 4mm, 8mm & QIC); or 3 1/2-inch diskette with IRS. IRS/MCC has discontinued processing 8-inch, 5 1/4-inch diskette, and the mainframe electronic filing system. The previously used IRP-BBS (Bulletin Board System) has also been replaced. The new electronic filing system is known as FIRE (Filing Information Returns Electronically.) This Revenue Procedure must be used for the preparation of Tax Year 2000 information returns and information returns for tax years prior to 2000 that are required to be filed. This Revenue Procedure must be used to prepare current and prior year information returns filed beginning January 1, 2001, and received by IRS/MCC or postmarked by December 15, 2001. Specifications for filing the following forms are contained in this Revenue Procedure.

     (a) Form 1098, Mortgage Interest Statement

 

     (b) Form 1098-E, Student Loan Interest Statement

 

     (c) Form 1098-T, Tuition Payments Statement

 

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

 

     (e) Form 1099-B, Proceeds From Broker and Barter Exchange

 

         Transactions

 

     (f) Form 1099-C, Cancellation of Debt

 

     (g) Form 1099-DIV, Dividends and Distributions

 

     (h) Form 1099-G, Certain Government and Qualified State Tuition

 

         Program Payments

 

     (i) Form 1099-INT, Interest Income

 

     (j) Form 1099-LTC, Long-Term Care and Accelerated Death

 

         Benefits

 

     (k) Form 1099-MISC, Miscellaneous Income

 

     (l) Form 1099-MSA, Distributions Form an MSA or Medicare+Choice

 

         MSA

 

     (m) Form 1099-OID, Original Issue Discount

 

     (n) Form 1099-PATR, Taxable Distributions Received From

 

         Cooperatives

 

     (o) Form 1099-R, Distributions From Pensions, Annuities,

 

         Retirement or Profit-Sharing Plans, IRAs, Insurance

 

         Contracts, etc.

 

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

 

     (q) Form 5498, IRA Contribution Information

 

     (r) Form 5498-MSA, MSA or Medicare+Choice MSA Information

 

     (s) Form W-2G, Certain Gambling Winnings

 

 

.02 Specifications for filing Forms W-2, Wage and Tax Statements, magnetically/electronically are available from the Social Security Administration (SSA) only. Filers can call 1-800- SSA-6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.

.03 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 to file requests (Form 8809) for Forms W-2 and requests for an extension of time to provide the employee copies of Forms W-2.

.04 Generally, 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.

.05 This Revenue Procedure also provides the requirements and specifications for magnetic media or electronic filing under the Combined Federal/State Filing Program.

.06 The following Revenue Procedures and publications provide more detailed filing procedures for certain information returns:

     (a) 2000 "General Instructions for Forms 1099, 1098, 5498, and

 

         W-2G" and individual Form instructions.

 

 

     (b) Publication 1179, Rules and Specifications for Private

 

         Printing of Substitute Forms 1096, 1098, 1099, 5498, and

 

         W-2G

 

 

     (c) Publication 1239, Specifications for Filing Form 8027,

 

         Employer's Annual Information Return of Tip Income and

 

         Allocated Tips, Magnetically or Electronically

 

 

     (d) Publication 1187, Specifications for Filing Form 1042-S,

 

         Foreign Person's U.S. Source Income Subject to Withholding,

 

         Magnetically or Electronically

 

 

     (e) Publication 1245, Specifications for Filing Form W-4,

 

         Employee's Withholding Allowance Certificate, Magnetically

 

         or Electronically.

 

 

.07 This Revenue Procedure supersedes Rev. Proc. 99-29 published as Publication 1220 (Rev. 8-99), Specifications for Filing Forms 1098, 1099, 5498, and W-2G, Magnetically or Electronically.

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

Section 2. Nature of Changes -- Current Year (Tax Year 2000)

.01 In this publication, all pertinent changes for Tax Year 2000 are emphasized by the use of italics. Portions of text that require special attention have been bolded. Filers are always encouraged to read the publication in its entirety.

.02 Programming Changes

     (a) General

 

 

     1. The state of Oregon has withdrawn from the Combined/Federal

 

         State Filing Program.

 

 

     2. The testing period when using the FIRE system is from

 

         November 1st to February 15th. The testing period using

 

         magnetic media remains November 1st to December 31st --

 

         also see Part A, Sec. 8.

 

 

     (b) Programming Changes -- Transmitter "T" Record

 

 

     1. For all forms, Payment Year, Field Positions 2-5, must be

 

         incremented to reflect the four-digit report year (1999 to

 

         2000), unless reporting prior year data.

 

 

     (c) Programming Changes -- Payer "A" Record

 

 

     1. For all forms, Payment Year, Field Positions 2-5, must be

 

         incremented to reflect the four-digit year (1999 to 2000),

 

         unless reporting prior year data.

 

 

     2. For Form 1098-E, the title of Amount Code 1 was changed to

 

         "Student loan interest received by lender."

 

 

     3. For Amount Codes for Form 1099-R, the title of Amount Code

 

         A was changed to Traditional IRA/SEP/SIMPLE distribution or

 

         Roth conversion. Note 4: Form 1099-R now includes

 

         information about Roth conversion.

 

 

     (d) Programming Changes -- Payee "E" Record

 

 

     1. For all forms, Payment Year, Field Positions 2-5, must be

 

         incremented to reflect the four-digit reporting year (1999

 

         to 2000), unless reporting prior year data.

 

 

     2. The IRA/SEP/SIMPLE indicator, position 548 for Form 1099-R,

 

         of the Payee "B" record, should also be used to indicate a

 

         Roth conversion.

 

 

.03 Editorial Changes

     (a) BEGINNING IN CALENDAR YEAR 2002 FOR TAX YEAR 2001, IRS/MCC

 

         WILL NO LONGER RETURN PROBLEM MEDIA IN NEED OF REPLACEMENT.

 

         Filers will continue to receive a tracking form, listing

 

         and letter detailing the reason(s) their media could not be

 

         processed. Filers will be expected to send in replacement

 

         media within the prescribed time frame. This makes it

 

         imperative that filers maintain backup copies and/or

 

         recreate capabilities for their information return files.

 

 

     (b) Most references to faxing forms were removed from the

 

         publication. While it is acceptable to send us fax copies

 

         of forms, IRS/MCC discourages faxing forms, especially on

 

         or near due dates, due to the high volume of transmissions

 

         during these times. Mailing forms postmarked by the

 

         required date to the appropriate address is sufficient; see

 

         Part E. The exception to this recommendation is Form

 

         8809, Request for Extension of Time to File Information

 

         Returns. If you file your extension request electronically,

 

         you must fax your Form 8809 the same day as the

 

         transmission. See Part D, Sec. 1.04.

 

 

     (c) A file format diagram is located at the end of Part E,

 

         Miscellaneous Information, just before the mail labels.

 

         This visual representation of a file layout may be helpful

 

         in understanding IRS/MCC's definition of a file.

 

 

Section 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 and requests for IRS magnetic media and electronic filing information should be sent to the following address:

     If by Postal Service, truck or air freight:

 

        IRS-Martinsburg Computing Center

 

        Information Reporting Program

 

        230 Murall Drive

 

        Kearneysville, WV 25430

 

 

.02 Send a magnetically filed extension of time request, undue hardship waivers, and requests for extensions of time to file returns or to furnish the statements to recipients to the following address:

     If by Postal Service, truck or air freight:

 

        IRS-Martinsburg Computing Center

 

        Information Reporting Program

 

        Attn: Extension of Time Coordinator

 

        240 Murall Drive

 

        Kearneysville, WV 25430

 

 

.03 The telephone numbers for magnetic media inquiries or electronic submissions are:

            304-263-8700 -- Call Site -- Part A, Sec 3.09

 

                         304-267-3367 -- TDD

 

               (Telecommunication Device for the Deaf)

 

                     304-264-5602 -- Fax Machine

 

                  Electronic Filing -- FIRE system

 

                            304-262-2400

 

           (These are not toll-free telephone numbers.)

 

                          TO OBTAIN FORMS:

 

                   1-800-TAX-FORM (1-800-829-3676)

 

         www.irs.gov -- INTERNET access to forms (See Note.)

 

 

* Note: Because the IRS processes paper forms by machine (optical character recognition equipment), you cannot file the IRS Form 1096 or Copy A of Forms 1098, 1099, or 5498 printed from the IRS's Internet Web Site or the CD-ROM.

.04 The 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G" and the individual Forms instructions have been included in the Publication 1220 for your 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 Form 1096 and submit the paper returns to the appropriate IRS Service Center.

.05 Requests for paper Forms 1096, 1098, 1099, 5498, and W-2G, and publications related to magnetic media/electronic filing should be made by calling the IRS toll-free number 1-800-TAX-FORM (1-800- 829-3676) or by using the IRS's Internet Web Site at www.irs.gov.

.06 Questions pertaining to magnetic media filing of Forms W-2 must be directed to the Social Security Administration (SSA). Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.

.07 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. A penalty notice contains 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. For penalty information, refer to the Penalty section of the 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G."

.08 A taxpayer or authorized representative may request a copy of a tax return, including Form W-2 filed with a return, by submitting Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800-829- 3676). For any questions regarding this form, call 1-800-829-1040.

.09 The Information Reporting Program Call Site answers both magnetic media and tax law questions relating to the filing of information returns (Forms 1042-S, 1096, 1098, 1099, 5498, 8027, W- 2G, and W-4). The Call Site also answers tax law and paper filing related questions about Forms W-2 and W-3, as well as handling inquiries dealing with backup withholding and reasonable cause requirements 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 or other numbers specified in the tax return instructions with any questions on how to report information on their 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.

Section 4. Filing Requirements

.01 The regulations under section 0011(e)(2)(A) of the Internal Revenue Code provide that any person, including a corporation, partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns magnetically/electronically. The 258 /*/ or more requirement applies separately for each type of return and separately to each type of corrected return.

/*/ Even though filers with less than 250 information returns are not required to submit the information returns magnetically or electronically and may submit them on paper, IRS encourages filers to transmit those information returns magnetically or electronically.

.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), employer identification number (EIN), individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN)]. 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. Payers who submit their information returns electronically by April 2, 2001, are considered to have satisfied the magnetic media filing requirements.

.04 IRS/MCC has one method for filing information returns electronically; see Part C.

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

 1098                    250 or more of any of these forms require

 

 1098-E /*/              magnetic media or electronic filing with

 

 1098-T /*/              IRS. These are stand alone documents and are

 

 1099-A                  not to be aggregated for purposes of

 

 1099-B                  determining the 250 threshold. For example,

 

 1099-C                  if you must file 100 Forms 1099-B and 300

 

 1099-DIV                Forms 1099-INT, Forms 1099-B need not be

 

 1099-G                  filed magnetically or electronically since

 

 1099-INT                they do not meet the threshold of 250.

 

 1099-LTC                However, Forms 1099-INT must be filed

 

 1099-MISC               magnetically or electronically since they

 

 1099-MSA                meet the threshold of 250.

 

 1099-OLD

 

 1099-PATR

 

 1099-R

 

 1099-S

 

 5498

 

 5498-MSA

 

 W-2G

 

 

/*/ For Tax Year 2000, Forms 1098-E and 1098-T may be reported on paper regardless of the 250 threshold.

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

Section 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 will be subject to a penalty of $50 per return in excess of 250. (For penalty information, refer to the Penalty section of the 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G.")

.02 If payers are required to file original or corrected returns on magnetic media, but such filing would create a 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 Even though a payer may submit as many as 249 corrections on paper, IRS encourages magnetically or electronically submitted corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more magnetically or electronically. 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.

.10 File Form 8508 for the W-2 series of forms with IRS/MCC, not SSA.

.11 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth in the regulations 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. The transmitter should not send a copy of the approved waiver 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.

Section 6. Vendor List

.01 IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. The Vendor List (Pub. 1582) 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 compiled as a courtesy and in no way implies IRS/MCC approval or endorsement.

.02 If filers meeting the filing requirements engage a service bureau to prepare media on their behalf, the filers should be careful not to report duplicate data, which may cause penalty notices to be generated.

.03 The Vendor List, Publication 1582, may be updated in print every other year. The most recently printed copy will be available by contacting IRS/MCC at (304) 263-8700 or by letter (see Part A, Sec. 3). The Vendor List is also available on the IRS's Internet Web Site www.irs.gov.

.04 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 include:

     (a) Company name

 

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

 

     (c) Telephone number (include area code)

 

     (d) Contact person

 

     (e) Type(s) of service provided (e.g., service bureau and/or

 

         software)

 

     (f) Type(s) of media offered (e.g., magnetic tape, tape

 

         cartridge, 3 1/2-inch diskette, or electronic filing)

 

     (g) Type(s) of return(s)

 

 

Section 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 (Forms 1098, 1099, 5498 and W-2G) is to be filed, the transmitter does not need to submit a new Form 4419.

                              EXCEPTIONS

 

      An additional Form 4419 is required for filing each of the

 

                      following types of returns:

 

                      Forms 1042-S, 8027, and W-4

 

 

 FORM            TITLE                       EXPLANATION

 

 ____________________________________________________________________

 

 1042-S          Foreign Person's U.S.       Payments subject to

 

                 Source Income Subject       withholding under

 

                 to Withholding              Chapter 3 of the Code,

 

                                             including interest,

 

                                             dividends, royalties,

 

                                             pensions and annuities,

 

                                             gambling winnings and

 

                                             compensation for

 

                                             personal services.

 

 

 8027            Employer's Annual           Receipts from operations

 

                 Information Return          where tipping is

 

                 of Tip Income and           customary. Used by the

 

                 Allocated Tips              employers to report

 

                                             employees' tips or

 

                                             allocated tips.

 

 

 W-4             Employee's Withholding      Forms received

 

 (See Note)      Allowance Certificate       during the quarter from

 

                                             employees still employed

 

                                             at the end of the

 

                                             quarter who claim the

 

                                             following:

 

                                             (a) More than 10

 

                                                 withholding

 

                                                 allowances or

 

                                             (b) Exempt status and

 

                                                 wages normally would

 

                                                 be more than $200 a

 

                                                 week.

 

 

* Note: Employers are not required to send other Forms W-4 unless notified to do so by the IRS.

.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. A Form 4419 is included in the Publication 1220 for the filer's use. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800- 829-3676). The form is also available on the IRS's Internet Web Site at www.irs.gov.

.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 Transmitter "T" 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.

.04 Annually, a Publication 1220 containing the current Revenue Procedure, forms, and instructions will be sent to the attention of the contact person indicated on Form 4419.

.05 If any of the information (name, TIN or address) on the Form 4419 changes, please notify IRS/MCC in writing so the IRS/MCC database can be updated. However, a change in the method by which information returns are being submitted is not information which needs to be updated (e.g., tape to disk). The transmitter should include the TCC in all correspondence.

.06 Form 4419 may be submitted anytime during the year; however, it must be submitted to IRS/MCC at least 30 days before the due date of the return(s) for current year processing. 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.

.07 IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all payers.

.08 If a payer's files are prepared by a service bureau, the payer 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 Transmitter "T" Record. Payers should contact their service bureaus for further information.

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

     (a) The payer has discontinued filing magnetically or

 

         electronically for two consecutive years; the payer's TCC

 

         may have been reassigned by IRS/MCC. Payers who are aware

 

         the TCC assigned will no longer be used are requested to

 

         notify IRS/MCC so these numbers may be reassigned; or

 

 

     (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 his or her own files.

 

         The payer must request a TCC by filing Form 4419.

 

 

.10 One Form 4419 may be submitted regardless of how many types of media or methods are used to file the return. Multiple TCCs will only be issued to payers with multiple TINs. Only one TCC will be issued per TIN unless the filer has checked the application for the following forms in addition to the Forms 1098, 1099, 5498 or W-2G: Forms 1042-S, 8027, and/or W-4. A separate TCC will be assigned for each of these forms.

.11 In accordance with Regulations section 1.60417(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.

.12 Approval to file does not imply endorsement by IRS/MCC of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor.

Section 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 must consist of a sample of each type of record:

     (a) Transmitter "T" Record (all fields marked required must

 

         include transmitter information)

 

     (b) Payer "A" Record (must not be fictitious data)

 

     (c) Multiple Payee "B" Records (at least 11 "B" Records per

 

         each "A" Record)

 

     (d) End of Payer "C" Record

 

     (e) State Totals "K" Record, if participating in the Combined

 

         Federal/State Filing Program

 

     (f) End of Transmission "F" Record

 

         (See Part B for record formats.)

 

 

.03 Use the Test Indicator "T" in Field Position 28 of the "T" Record to show 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 their software reflects any programming changes.

.05 Tests should be sent to IRS/MCC between November 1 and December 15. Tests submitted on magnetic media must be received at MCC by December 15 in order to be processed. Magnetic media filers may begin submitting test tapes and diskettes after October 1; however, the data will not be processed until on or after November 1.

Only tests submitted electronically may be submitted and resubmitted through February 15, 2001.

.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. Electronic tests may be submitted November 1, 2000, through February 15, 2001. For tests filed on magnetic tape, tape cartridge, 8mm, 4mm, and quarter inch cartridge, and 3 1/4-inch diskette, the transmitter must include the signed Form 4804 in the same package with the corresponding magnetic media. Mark the "TEST" box in Block 1 on the form. Also, mark "TEST" on the external media label.

.07 IRS/MCC will send a letter of acknowledgment to indicate the test results for magnetic media only. Unacceptable magnetic media files, along with documentation identifying the errors, will be returned. Resubmission of magnetic media test files must be received by IRS/MCC no later than December 15. See Part C, Sec. 5.03 for information on electronic test results.

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

Section 9. Filing of Information Returns Magnetically/Electronically and Retention Requirements

.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), or a computer-generated substitute, must accompany all magnetic media shipments. For electronic transmissions, the Form 4804 and Form 4802, if applicable, must be postmarked by the due date of the return, Form 4802, is a continuation of Form 4804 and should only be used if the filer is reporting more than five types of returns and/or more than five payers. Form 4802 is not a stand-alone form; it can only accompany Form 4804.

.02 IRS/MCC allows for 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. When using computer-generated forms, be sure to mark very clearly which tax year is being reported. This will eliminate a phone communication from IRS/MCC to question the tax year.

.03 A transmitter may report for any combination of payers and/or documents in a submission. Each file must begin with a "T" Record and end with an "F" record for the end of a transmission. 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 within a single file on one tape or diskette as long as each bank or type of return has a separate "A" Record. Multiple tapes or diskettes can be sent in one package. For each separate type of media, the first record on the file must be the Transmitter "T" Record. A Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must be submitted for every Transmitter "T" Record. Filers must 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 must 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 filed. 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. Failure to sign the affidavit on Form 4804 may delay processing or could result in the files being returned unprocessed. 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)."

.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 A self-adhesive external media label, created by the filer, must be affixed to each piece of magnetic media. (IRS no longer provides self-adhesive labels for this purpose.) For instructions on how to prepare an external media label, refer to Notice 210 in the forms section of this publication. 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.

.11 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. (Filers can create a label with this information or cut out one of the labels on the special label page provided in this publication.) 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) External media label (created by filer) affixed to magnetic

 

         media;

 

     (d) IRB Box _____ of _____ outside label.

 

 

* Note: See Part C for Electronic Filing Specifications.

.13 Do not use special shipping containers for mailing media to IRS/MCC. Shipping containers will not be returned.

.14 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.

.15 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.

.16 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 such return is required to be filed. Whenever backup withholding is imposed, a 4-year retention is required.

Section 10. Due Dates

.01 The due dates for filing paper returns with IRS also apply to magnetic media. Filing of information returns is on a calendar- year basis, except for Forms 5498 and 5498-MSA, which are used to report amounts contributed during or after the calendar year (but not later than April 15). The following due dates will apply to Tax Year 2000:

                              Due Dates

 

 

  Electronic Filing (See Note) Magnetic Filing

 

 

  Forms 1098, 1099, and W-2G Forms 1098, 1099, and W-2G

 

 Recipient Copy ----- January 31, Recipient Copy -- January 31,

 

  2001 2001

 

IRS Copy ----- April 2, 2001 /*/ IRS Copy ----- February 28, 2001

 

 

     /*/ Normal due date of March 31, 2001 falls on a Saturday.

 

 

* Note: Electronically filed Forms 1099, 1098, or W-2G are due to the IRS by April 2, 2001. The due date for magnetically filed Forms 1099, 1098, and W-2G remains unchanged (February 28, 2001).

Legislation amended Internal Revenue Code section 6071(b), which eliminates the necessity for electronic filers of Forms 1099, 1098, and W-2G to request an extension of the filing date from February 28 to March 31, effective for returns required to be filed after December 31, 1999.

                     Electronic/Magnetic Filing

 

                       Forms 5498 and 5498-MSA

 

                 Participant Copy -- May 31, 2001 /*/

 

                     IRS Copy ----- May 31, 2001

 

 

     /*/ Participants' copy of Form 5498 for education IRA and all

 

other Forms 5498 to furnish fair market value information -- January

 

31, 2001

 

 

.02 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.

.03 Information returns filed magnetically for Forms 1098, 1099, and W-2G must be submitted to IRS/MCC postmarked on or before February 28, 2001.

.04 Electronically filed information returns for Forms 1098, 1099 and W-2G must be submitted to IRS/MCC no later than April 2, 2001, and will be considered timely filed if submitted by that date. Electronically filed information returns submitted after April 2, 2000, will be considered late unless an extension has been applied for and approved.

.05 Magnetic media returns postmarked by the United States Postal Service (USPS) on or before February 28, 2001, and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the "timely mailing as timely filing" rule. A similar rule applies to items delivered by private delivery services (PDSs) designated by the IRS. A PDS must be designated by the IRS before it will qualify for the timely mailing rule. (See Note.) Notice 99-41, 1999-35 I.R.B. 1999 325, provides the list of designated PDSs. Designation is effective until the IRS issues a revised list. Notice 97-26 1997-1 C.B. 413, provides rules for determining the date that is treated as the postmark date. For items delivered by a non-designated PDS, the actual date of receipt by IRS/MCC will be used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in Notice 99-41, the actual date of receipt by IRS/MCC will be used as the filing date. The timely mailing rule also applies to furnishing statements to recipients and participants.

* Note: Due to security regulations at MCC, the Internal Revenue police officers will not accept media from PDSs or couriers from 3:00 p.m. to 11:00 p.m., seven days a week, and 11:00 p.m. to 7:00 a.m., Saturday and Sunday.

.06 Statements to recipients must be furnished on or before January 31, 2001, for TY 2000. Form 5498 statements to the participants must be furnished on or before January 31, 2001, for TY 2000 for the fair market value of the account and for contributions to an education IRA and by May 31, 2001 for TY 2000 for contributions made to all other types of IRAs for the prior calendar year.

.07 Forms 5498 and 5498-MSA filed magnetically or electronically must be filed with IRS/MCC on or before May 31, 2001, for TY 2000.

.08 Use this Revenue Procedure to prepare information returns filed magnetically or electronically beginning January 1, 2001, and received by IRS/MCC no later than December 15, 2001.

Section 11. Extensions of Time

.01 An extension of time to file may be requested for Forms 1099, 1098, 5498, 5498-MSA, W-2G, W-2 series 8027 and 1042-S.

.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC at the address listed in .06 of this section. This form may be used to request an extension of time to file information returns submitted on paper, magnetically or electronically.

.03 Requesting an extension of time for multiple payers (50 or less) may be done by submitting Form 8809 and attaching a list of the payer names and associated TINs (EIN or SSN). The listing must be attached to ensure an extension is recorded for all payers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included. For Forms 1098, 1099 and W-2G that will be filed electronically, Form 8809 must be submitted on or before April 2, 2001.

.04 Requests for an extension of time to file for more than 50 payers are required to be submitted magnetically or electronically. Requests for an extension of time for 10 to 50 payers are encouraged to be filed magnetically or electronically. (See Part D, Sec. 3, for the record format.) The request may be filed on tape, tape cartridge, 3 1/2-inch diskette, or electronically.

.05 If a filer does not have an IRS/MCC assigned Transmitter Control Code (TCC), a Form 4419, Application for Filing Information Returns Magnetically/Electronically, must be submitted to obtain a TCC. This number must be used to submit an extension request magnetically/electronically.

.06 All requests for an extension of time filed on Form 8809 or filed magnetically on tape, tape cartridge, or 3 1/2 inch diskette should be sent using the following address:

     If by Postal Service, truck or air freight:

 

        IRS-Martinsburg Computing Center

 

        Information Reporting Program

 

        Attn: Extension of Time Coordinator

 

        240 Murall Drive

 

        Kearneysville, WV 25430

 

 

.07 Requests for extensions of time for multiple payers will be responded to with one approval letter, accompanied by a list of payers covered under that approval.

.08 As soon as it is apparent that a 30-day extension of time to file is needed, Form 8809 may be submitted. 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. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days.

.09 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; however, 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, 2001. (See Note.) Complete more than one Form 8809 to avoid this problem.

* Note: For Tax Year 2000, if you will be filing Forms 1098, 1099, or W-2G electronically, the Form 8809 is not required unless an extension is needed beyond April 2, 2001.

.10 If an additional extension of time is needed, a second Form 8809 must be filed by the initial extended due date. Check line 7 on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event. If requesting a second 30-day extension of time, submit the information return files as soon as prepared. Do not wait for MCC's response to your second extension request.

.11 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for an extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper returns are filed.

.12 Request an extension for only one tax year.

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

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

.15 Form 8809 may be obtained by calling 1-800-TAX-FORM (1- 800-829-3676). The form is also available on the IRS's Internet Web Site at www.irs.gov. A copy of the Form 8809 is also provided in the back of Publication 1220.

.16 Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W-2G, W-2 series, and 1042-S by submitting a letter to IRS/MCC at the address listed in .06 of this section. The letter should contain the following information:

     (a) Payer name

 

     (b) TIN

 

     (c) Address

 

     (d) Type of return

 

     (e) Specify that the extension request is to provide statements

 

         to recipients

 

     (f) Reason for delay

 

     (g) Signature of payer or person duly authorized.

 

 

Requests for an extension of time to furnish the statements to recipients for Forms 1098, 1099, 5498, W-2G, W-2 series, and 1042-S are not automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days from the due date to furnish the statements to the recipients. The request must be postmarked by the date on which the statements are due to the recipients.

Section 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 magnetic media will be returned for replacement accompanied by a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the media, therefore, requiring a replacement. Open all packages immediately, Beginning in calendar year 2002 for Tax Year 2001, IRS/MCC will no longer return problem media in need of replacement. See Part A, Sec. 2.03(a) for details.

.03 Magnetic media 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 IRS/MCC included with the returned files. Refer to Part C, Sec. 6, for procedures for correcting files submitted electronically. A penalty for failure to file correct information returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if the incorrect files are returned by IRS/MCC for replacement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received. (For penalty information, refer to the Penalty section of the 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G.")

.04 Sample records 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

 

        previously submitted to and processed by IRS/MCC, but

 

        contained erroneous information.

 

 

* Note: Corrections should only be made to records that have been submitted incorrectly, not the entire file.

     - 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 along with the Media Tracking

 

       Slip (Form 9267) which was included in the shipment from

 

       IRS/MCC. (See Note 1).

 

 

* Note 1: Filers should never send anything to IRS/MCC marked "Replacement" unless IRS/MCC returned media to them.

* Note 2: Beginning in calendar year 2002 for Tax Year 2001, IRS/MCC will no longer return problem media in need of replacement. Filers will continue to receive a tracking slip, listing and letter detailing the reason(s) their media could not be processed. Filers will be expected to send in replacement media within the prescribed time frame. This makes is imperative that filers maintain backup copies and/or recreate capabilities for their information return files.

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

.07 IRS/MCC will work with filers as much as possible to assist with processing problems. If the filer is contacted by IRS/MCC, a prompt response is important. IRS/MCC may have information that the filer needs to correct his or her file.

.08 IRS/MCC contacts 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 (CP2100 or CP2100A Notices) or penalties for missing or incorrect TINs.

Section 13. Corrected Returns

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

                If a payer has 100 Forms 1099-A to be corrected,

 

E they can be filed on paper because they fall under

 

X the 250 threshold. However, if the payer has 300

 

A Forms 1099-B to be corrected, they must be filed

 

M magnetically or electronically because they meet

 

P the 250 threshold. If for some reason a payer cannot

 

L file the 300 corrections on magnetic media, to avoid

 

E penalties, a request for a waiver must be submitted

 

                before filing on paper. If a waiver is approved for

 

                original documents, any corrections for the same

 

                type of return will be covered under this waiver.

 

 

.02 Corrections should be filed as soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of $50 per return. Corrections filed by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalty section of the 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G.") However, if payers discover errors after August 1, they are still required to file corrections so 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. 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.

.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 external media label by indicating "Correction." If filers discover that certain information returns were omitted on their original file, they must not code these documents as corrections. The file must be coded and submitted 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 Block 2 of the Form 4804 and on the external media label.

.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 2-5 of the "T", "A", and "B" Records. If filing electronically, a separate transmission must be made for each tax year.

.07 In general, filers should submit corrections for returns filed within the last 3 calendar years [4 years if the payment is a reportable payment subject to backup withholding under section 3406 of the Code and also for Form 1099-C, Cancellation of Debt].

.08 All paper returns, whether original or corrected, must be filed with the appropriate service center.

.09 Form 4804 and Form 4802 (if applicable), 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 Original Return   How To File the Corrected Return

 

 ____________________________________________________________________

 

 Two (2) separate transactions are required to make the following

 

 corrections properly. Follow the directions for both Transactions 1

 

 and 2. (See Note 1.)

 

 

 1. Original return was filed        Transaction 1: Identify

 

    with one or more of the          incorrect returns

 

    following errors:

 

                                     A. Prepare a new Form 4804/4802

 

                                        that includes information

 

                                        related to this new file.

 

 

    (a) No payee TIN (SSN, ITIN,     B. Mark "Correction" in

 

        ATIN or EIN)                    Block 1 of Form 4804.

 

    (b) Incorrect payee TIN          C. Prepare a new file. The first

 

    (c) Incorrect payee name            record on the file will be

 

    (d) Wrong type of return            the Transmitter "T" Record.

 

        indicator                    D. Make a separate "A" Record

 

                                        for each type of return and

 

                                        each payer being reported.

 

                                        The information in the "A"

 

                                        Record will be exactly the

 

                                        same as it was in the

 

                                        original submission with one

 

                                        exception; the Correction

 

                                        File Indicator (Field

 

                                        Position 50) will be set to

 

                                        "1".

 

                                     E. The Payee "B" Records must

 

                                        contain exactly the same

 

                                        information as submitted

 

                                        previously, except, insert a

 

                                        Corrected Return Indicator

 

                                        Code of "G" in Field Position

 

                                        6 of the "B" Records, and for

 

                                        all payment amounts, enter

 

                                        "0" (zeros).

 

                                     F. Corrected returns submitted

 

                                        to IRS/MCC using "G" coded

 

                                        "B" Records may be on the

 

                                        same file as those returns

 

                                        submitted with a "C" code;

 

                                        however, separate "A" Records

 

                                        are required.

 

                                     G. Prepare a separate "C" Record

 

                                        for each type of return and

 

                                        each payer being reported.

 

                                     H. Continue with Transaction 2

 

                                        to complete the correction.

 

 

                                     Transaction 2: Report the

 

                                     correct information

 

 

                 Guidelines for Filing Corrected Returns

 

                     Magnetically/Electronically

 

 

 Error Made on the Original Return   How To File the Corrected Return

 

 ____________________________________________________________________

 

                                     A. Make a separate "A" Record

 

                                        for each type of return and

 

                                        each payer being reported.

 

                                        The Correction File Indicator

 

                                        (Field Position 50), must be

 

                                        set to "1" (one).

 

                                     B. The Payee "B" Records must

 

                                        show the correct information

 

                                        as well as a Corrected Return

 

                                        Indicator Code of "C" in

 

                                        Field Position 6.

 

                                     C. Corrected returns submitted

 

                                        to IRS/MCC using "C" coded

 

                                        "B" Records may be on the

 

                                        same file as those returns

 

                                        submitted with "G" codes;

 

                                        however, separate "A" Records

 

                                        are required.

 

                                     D. Prepare a separate "C" Record

 

                                        for each type of return and

 

                                        each payer being reported.

 

                                     E. The last record on the file

 

                                        will be the End of

 

                                        Transmission "F" Record.

 

                                     F. Indicate "Correction" on the

 

                                        external media label.

 

 

* Note 1: Payers who can show they have reasonable cause (defined in the regulations under section 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 $30. The penalty is further reduced to $15 per return if the corrections are filed within 30 days of the due date. (For penalty information, refer to the Penalty section of the 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G.") Corrections filed after August 1 will not reduce the penalty but will allow IRS to update the payee's records. The regulations for section 6724 are available in Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs. The publication may be obtained by calling 1-800-TAX-FORM (1-800- 829-3676) or from IRS's Internet Web Site at www.irs.gov.

One transaction is required to make the following corrections properly (See Note 2).

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

 

    one or more of the                  that includes with

 

    following errors:                   information relating to this

 

                                        new file.

 

      (a) Incorrect payment amount   B. Mark "Correction" in Block 1

 

          codes in the Payer "A"        of Form 4804.

 

          Record                     C. Prepare a new file. The first

 

      (b) Incorrect payment amount      record on the file will be

 

          in the Payee "B" Record       the Transmitter "T" Record.

 

      (c) Incorrect code in the         Make a separate "A" Record

 

          distribution code field    D. for each type of return and

 

          in the Payee "B" Record       each payer being reported.

 

      (d) Incorrect payee address       Information in the "A"

 

      (e) Incorrect Direct Sales        Record may be the same as it

 

          Indicator                     was in the original

 

                                        submission. However, the

 

                                        Correction File Indicator

 

                                        (Field Position 50) must be

 

                                        set to "1" (one).

 

                                     E. The Payee "B" Records must

 

                                        show the correct record

 

                                        information as well as a

 

                                        Corrected Return Indicator

 

                                        Code of "G" in Field Position

 

                                        6.

 

                                     F. Corrected returns submitted

 

                                        to IRS/MCC using "G" coded

 

                                        "B" Records may be on the

 

                                        same file as those returns

 

                                        submitted without the "G"

 

                                        coded "B" Records; however,

 

                                        separate "A" Records are

 

                                        required.

 

                                     G. Prepare a separate "C" Record

 

                                        for each type of return and

 

                                        each payer being reported.

 

                                     H. The last record on the file

 

                                        will be the End of

 

                                        Transmission "F" Record.

 

                                     L. Indicate "Correction" on the

 

                                        external media label.

 

 

* Note 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, two transactions will be required. If a filer is reporting "G" coded, "C" coded, and/or "Non-coded" (original) returns on the same media, each category must be reported under separate "A" Records.

Section 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 payees' TIN and name combination are used to associate information returns reported to IRS/MCC with corresponding information on payees' tax returns. It is imperative that correct Taxpayer Identification Numbers (TINs) 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 (SSN). For other entities, the payee TIN is the payee's Employer Identification Number (EIN). The payee TIN may also refer to an Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN). 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 on the first name line and the SSN is preferred.

.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

 

 

                        In the Taxpayer

 

                        Identification

 

                        Number Field of            In the First Payee

 

                        the Payee "B"              Name Line of the

 

 For this type of       Record, enter the          Payee "B" Record,

 

 account--              SSN of--                   enter the name of-

 

 ____________________________________________________________________

 

 1. Individual          The individual             The individual

 

 

 2. Joint account (Two  The actual owner of the    The individual

 

 or more individuals,   account or, if combined    whose SSN is

 

 including husband and  funds, wife) the first     entered

 

                        individual on the

 

                        account

 

 

 3. Custodian account   The minor                  The minor

 

 of a minor (Uniform

 

 Gift, or Transfers,

 

 to Minors Act)

 

 4. The usual           The grantor-trustee        The grantor-

 

 revocable savings                                 trustee

 

 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. Sole                The owner                  The owner, not the

 

 proprietorship         (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

 

 

                        In the Taxpayer

 

                        Identification

 

                        Number Field of            In the First Payee

 

                        the Payee "B"              Name Line of the

 

 For this type          Record, enter the          Payee "B" Record,

 

 of account-            EIN of-                    enter the name of-

 

 ____________________________________________________________________

 

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

 

 estate, or pension                                estate, or pension

 

 trust                                             trust

 

 

 2. Corporate           The corporation            The corporation

 

 

 3. Association, club,  The organization           The organization

 

 religious,

 

 charitable,

 

 educational, 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 public entity          The public entity

 

 Department of

 

 Agriculture in the

 

 name of a public

 

 entity (such as a

 

 state or local

 

 government, school

 

 district, or

 

 prison) that

 

 receives

 

 agricultural

 

 program payments

 

 

 7. Sole proprietor-    The business               The owner, not the

 

 ship                   (An 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.

 

 

Section 15. Effect on Paper Returns and Statements to Recipients

.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 for any forms filed on magnetic media or electronically. 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 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G." Refer to those 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, "Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, and W-2G."

Section 16. Combined Federal/State Filing Program

.01 The Combined Federal/State Filing (CF/SF) 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. The following information returns may be filed under the Combined Federal/State Filing Program:

     Form 1099-DIV Dividends and Distributions

 

     Form 1099-G Certain Government and Qualified State

 

                               Tuition Program Payments

 

     Form 1099-INT Interest Income

 

     Form 1099-MISC Miscellaneous Income

 

     Form 1099-OID Original Issue Discount

 

     Form 1099-PATR Taxable Distributions Received From

 

                               Cooperatives

 

     Form 1099-R Distributions From Pensions, Annuities,

 

                               Retirement or Profit-Sharing Plans,

 

                               IRAs, Insurance Contracts, etc.

 

     Form 5498 IRA Contribution Information

 

 

The following information returns may not be filed under this program:

     Form 1098 Mortgage Interest Statement

 

     Form 1098-E Student Loan Interest Statement

 

     Form 1098-T Tuition Payments Statement

 

     Form 1099-A Acquisition or Abandonment of Secured

 

                               Property

 

     Form 1099-B Proceeds From Broker and Barter

 

                             Exchange Transactions

 

     Form 1099-C Cancellation of Debt

 

     Form 1099-LTC Long-Term Care and Accelerated Death

 

                               Benefits

 

     Form 1099-MSA Distributions From an MSA or

 

                               Medicare+Choice MSA

 

     Form 1099-S Proceeds From Real Estate Transactions

 

     Form 5498-MSA MSA or Medicare+Choice MSA Information

 

     Form W-2G Certain Gambling Winnings

 

 

.02 To request approval to participate, a magnetic media test file coded for this program must be submitted to IRS/MCC between November 1, 2000, and December 15, 2000. Electronic test files coded for this program must be submitted between November 1, 2000, and February 15, 2001.

.03 Attach a letter to the Form 4804 submitted with the test file to indicate a desire to participate in the Combined Federal/State Filing 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.

.06 If the test file is not acceptable, IRS/MCC will return the media with a letter indicating the problems. The new test file must be returned to IRS/MCC no later than December 15 or February 15 for electronically filed test.

.07 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.

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

.09 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.

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

.11 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.

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

.13 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 Totals "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 must be 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 Dakota                38

 

 South Carolina              45

 

 Tennessee                   47

 

 Wisconsin                   55

 

 

             Table 2. Dollar Criteria for State Reporting

 

 

                     1099-             1099-                    1099-

 

 STATE                DIV                G                      INT

 

 ____________________________________________________________________

 

 Alabama            $1500              $ NR                     $1500

 

 Arkansas             100              2500                       100

 

 District of

 

 Columbia /b/         600               600                       600

 

 Hawaii                10               /a/                        10

 

 Idaho                 NR                NR                        NR

 

 Iowa                  10                10                        10

 

 Minnesota             10                10                        10

 

 Mississippi          600               600                       600

 

 Missouri              NR                NR                        NR

 

 Montana               10                10                        10

 

 New Jersey          1000              1000                      1000

 

 Tennessee            100                NR                       100

 

 Wisconsin             NR                NR                        NR

 

 

                     1099-             1099-                    1099-

 

 STATE               MISC               OID                      PATR

 

 ____________________________________________________________________

 

 Alabama            $1500             $1500                     $1500

 

 Arkansas            2500              2500                      2500

 

 District of

 

 Columbia /b/         600               600                       600

 

 Hawaii               600                10                        10

 

 Idaho                600                NR                        NR

 

 Iowa                 600                10                        10

 

 Minnesota            600                10                        10

 

 Mississippi          600               600                       600

 

 Missouri            1200 /c/            NR                        NR

 

 Montana              600                10                        10

 

 New Jersey          1000              1000                      1000

 

 Tennessee             NR                NR                        NR

 

 Wisconsin            600                NR                        NR

 

 

                     1099-

 

 STATE                 R               5498

 

 __________________________________________

 

 Alabama            $1500                NR

 

 Arkansas            2500               /a/

 

 District of

 

 Columbia /b/         600                NR

 

 Hawaii               600               /a/

 

 Idaho                /a/               /a/

 

 Iowa                  10               /a/

 

 Minnesota            600               /a/

 

 Mississippi          600                NR

 

 Missouri              NR                NR

 

 Montana              600               /a/

 

 New Jersey          1000                NR

 

 Tennessee             NR                NR

 

 Wisconsin            600                NR

 

 

The preceding list is for information purposes only. The state filing requirements are subject to change by the states. For complete information on state filing requirements, contact the appropriate state tax agencies.

Filing requirements for states in TABLE 1 not shown in TABLE 2 are the same as the federal requirement. NR = No filing requirement.

Footnotes: /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 its state agency.

Section 17. Definition of Terms

 Element                             Description

 

 ____________________________________________________________________

 

 Asynchronous Protocols              This type of data transmission

 

                                     is most often used 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.

 

 

 ATIN                                A temporary taxpayer

 

                                     identification number assigned

 

                                     to a child who has been placed

 

                                     by an authorized placement

 

                                     agency in the household of a

 

                                     prospective adoptive parent

 

                                     prior to adoption. When the

 

                                     adoption becomes final, the

 

                                     adoptive parent must apply for a

 

                                     social security number for the

 

                                     child.

 

 

 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.

 

 

 Correction                          A correction is an information

 

                                     return submitted by the

 

                                     transmitter to correct an

 

                                     information return that was

 

                                     previously submitted to and

 

                                     processed by IRS/MCC, but

 

                                     contained erroneous information.

 

 

 * Note: A correction should not be confused with a replacement.

 

 Only media returned to the filer by IRS/MCC due to processing

 

 problems should be marked replacement.

 

 

 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 Identification             A nine-digit number assigned by

 

 Number (EIN)                        IRS for Federal tax reporting

 

                                     purposes.

 

 

 Electronic Filing                   Submission of information

 

                                     returns using switched

 

                                     telecommunications network

 

                                     circuits. These transmissions

 

                                     use modems, dial-up phone lines,

 

                                     and asynchronous protocols. See

 

                                     Parts A and C of this

 

                                     publication for specific

 

                                     information on electronic

 

                                     filing.

 

 

 File                                For purposes of this Revenue

 

                                     Procedure, a file consists of

 

                                     one Transmitter "T" Record at

 

                                     the beginning of the file,

 

                                     followed by a Payer "A" Record,

 

                                     Payee "B" Records, and an End of

 

                                     Payer "C" Record after each set

 

                                     of "B" Records. The last record

 

                                     on the file will be the End of

 

                                     Transmission "F" Record. Nothing

 

                                     should be reported after the End

 

                                     of Transmission "F" Record. A

 

                                     file format diagram is located

 

                                     at the end of Part E,

 

                                     Miscellaneous Information just

 

                                     before the mail labels.

 

 

 Filer                               Person (may be payer and/or

 

                                     transmitter) submitting

 

                                     information returns to IRS.

 

 

 Filing Year                         The actual year in which the

 

                                     information returns are being

 

                                     submitted to IRS.

 

 

 Golden Parachute Payment            A payment made by a corporation

 

                                     to a certain 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.

 

 

 Incorrect Taxpayer                  A TIN may be incorrect for

 

 Identification Number               several reasons:

 

 (Incorrect TIN)                     (a) The payee provided a wrong

 

                                     number or name (e.g., the payee

 

                                     is listed as the only owner of

 

                                     an account but provided someone

 

                                     else's TIN).

 

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

 

                                     the number or name was typed

 

                                     incorrectly).

 

                                     (c) The payee's status changed

 

                                     (e.g., a payee name change was

 

                                     not reported to the IRS or SSA).

 

 

 Individual Taxpayer                 A nine-digit number issued by

 

 Identification Number (ITIN)        IRS to individuals who are

 

                                     required to have a U.S. taxpayer

 

                                     identification number but are

 

                                     not eligible to obtain a social

 

                                     security number (SSN).

 

 

 Information Return                  The vehicle for submitting

 

                                     required information 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 a Form

 

                                     1098, 1098-E, 1098-T, 1099-A,

 

                                     1099-B, 1099-C, 1099-DIV, 1099-

 

                                     G, 1099-INT, 1099-LTC, 1099-

 

                                     MISC, 1099-MSA, 1099-OID, 1099-

 

                                     PATR, 1099-R, 1099-S, 5498,

 

                                     5498-MSA or W-2G.

 

 

 ISDN -- Integrated Services         ISDN's basic service is Basic

 

 Digital Network                     Rate Interface (BRI) which is

 

                                     made up of two 64Kbps B channels

 

                                     and one 16Kbps D Channel. If

 

                                     both channels are combined into

 

                                     one, called bonding, the total

 

                                     data rate becomes 128KPBS and is

 

                                     4 1/2 times the bandwidth of a

 

                                     28.8 modem.

 

 

 Magnetic Media                      For this Revenue Procedure, the

 

                                     term "magnetic media" refers to

 

                                     1/2-inch magnetic tape; IBM

 

                                     3480/3490/3490E or AS400

 

                                     compatible tape cartridge; 8mm,

 

                                     4mm, and QIC (Quarter Inch

 

                                     Cartridge) cartridge or 31/2-

 

                                     inch diskette.

 

 

 Media Tracking Slip                 Form 9267 accompanies media that

 

 (Form 9267)                         IRS/MCC has returned to the

 

                                     filer for replacement due to

 

                                     incorrect format or errors

 

                                     encountered when trying to

 

                                     process the media. This must be

 

                                     returned with the replacement

 

                                     file.

 

 

 Missing Taxpayer                    The payee TIN on an information

 

 Identification Number               return is missing if:

 

                                     (a) there is no entry in the TIN

 

                                     field, (Missing TIN)

 

                                     (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. 10(14) Payee

 

                                     "B" Record, 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 also

 

                                     includes a student (Form 1098-

 

                                     T), borrower (Forms 1098, 1098-

 

                                     E, and 1099-A), a debtor (Form

 

                                     1099-C), a policy-holder or

 

                                     insured (Form 1099-LTC), any IRA

 

                                     plan participant (Form 5498) or

 

                                     MSA or Medicare+Choice MSA

 

                                     participant (Form 5498-MSA), and

 

                                     a gambling winner (Form W-2G).

 

                                     For Form 1099-S, the payee is

 

                                     the seller or other transferor.

 

 

 Payer                               Includes the person making

 

                                     payments, a recipient of

 

                                     mortgage or student loan

 

                                     interest payments, an

 

                                     educational institution, a

 

                                     broker, a person reporting a

 

                                     real estate transaction, a

 

                                     barter exchange, a creditor, a

 

                                     trustee or issuer of any IRA or

 

                                     MSA plan, and 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/electronic files.

 

 

 * Note: For Form 1098-T, the eligible educational institution that

 

 received qualified tuition and related expenses is considered the

 

 payer.

 

 

 Replacement                         A replacement is an information

 

                                     return file that IRS/MCC has

 

                                     returned to the transmitter due

 

                                     to errors encountered during

 

                                     processing.

 

 

 * Note 1: Filers should never submit media to IRS/MCC marked

 

 "Replacement" unless IRS/MCC returned media to the filers. When

 

 sending "Replacement" media, be sure to include the Media Tracking

 

 Slip (Form 9267) which will accompany media returned by IRS/MCC.

 

 Media that has been incorrectly marked as Replacement may result in

 

 duplicate filing.

 

 

 * Note 2: Beginning in calendar year 2002 for Tax Year 2001, IRS/MCC

 

 will no longer return problem media in need of replacement.

 

 

 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 Number              A nine-digit number assigned by

 

 (SSN)                               SSA to an individual for wage

 

                                     and tax reporting purposes.

 

 

 Special Character                   Any character that is not a

 

                                     numeric, an alpha, or a blank.

 

 

 SSA                                 Social Security Administration.

 

 

 Taxpayer Identification             Refers to either an Employer

 

 Number (TIN)                        Identification Number (EIN)

 

                                     Social Security Number (SSN),

 

                                     Individual Taxpayer

 

                                     Identification Number (ITIN), or

 

                                     Adoption Taxpayer Identification

 

                                     Number (ATIN).

 

 

 Tax Year                            Generally, the year in which

 

                                     payments were made by a payer to

 

                                     a payee.

 

 

 Transfer Agent                      The transfer agent, or paying

 

                                     agent, is the entity who has

 

                                     been contracted or authorized by

 

                                     the payer to perform the

 

                                     services of paying and reporting

 

                                     backup withholding (Form 945).

 

 

 Transmitter                         Refers to the person or

 

                                     organization submitting file(s)

 

                                     magnetically/electronically. The

 

                                     transmitter may be the payer or

 

                                     agent of the payer.

 

 

 Transmitter Control Code            A five character alpha/numeric

 

 (TCC)                               number assigned by IRS/MCC to

 

                                     the transmitter prior to actual

 

                                     filing magnetically or

 

                                     electronically. This number is

 

                                     inserted in the Transmitter "T"

 

                                     Record of the file and must be

 

                                     present before the file can be

 

                                     processed. An application Form

 

                                     4419 must be filed with IRS/MCC

 

                                     to receive this number.

 

 

 Vendor                              Vendors include service bureaus

 

                                     that produce information return

 

                                     files on the prescribed types of

 

                                     magnetic media or via electronic

 

                                     filing for payers. Vendors also

 

                                     include companies who provide

 

                                     software for payers who wish to

 

                                     produce their own media or

 

                                     electronic files.

 

 

Section 18. State Abbreviations

.01 The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. This table provides state and territory 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

 

 Pennsylvania                PA

 

 Puerto Rico                 PR

 

 Rhode Island                RI

 

 South Carolina              SC

 

 South Dakota                SD

 

 Tennessee                   TN

 

 Texas                       TX

 

 Utah                        UT

 

 Vermont                     VT

 

 Virginia                    VA

 

 (U.S.) Virgin Islands       VI

 

 Washington                  WA

 

 West Virginia               WV

 

 Wisconsin                   WI

 

 Wyorning                    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, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U. S. Virgin Islands.

.03 For foreign country addresses, filers may use a 51 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 Position 247 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.

 

 

Section 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 preprogrammed software packages.

Filers who engage a service bureau to prepare media on their behalf should be careful not to report duplicate data which may generate penalty notices.

The Major Problems Encountered lists some of the most frequently encountered problems with magnetic/electronic files submitted to IRS/MCC. These problems may result in media being returned for replacement. Some of the problems resulted from not referring to this publication for instructions.

1. Incorrect Format

READ the Publication 1220 carefully.

     - No Transmitter "T" Record -- These files began with a Payer

 

       "A" Record. All files must begin with a Transmitter "T"

 

       Record.

 

 

     - Incorrect year format -- Data fields having the

 

       year/month/day are 8 characters (YYYYMMDD). Also, if the

 

       month and/or day is one position, i.e., January through

 

       September or 1 through 9 for the day of the month, precede

 

       the month and/or day with a zero. All date fields are

 

       numeric, therefore, blanks, alphas, or special characters are

 

       not acceptable.

 

 

          EXAMPLE: January 2, 2000 (20000102)

 

 

     - Invalid record length -- Records not 750 Positions in length.

 

 

     - Multiple Files on diskettes -- Filers sending multiple files

 

       on diskettes. Please refer to Part B, Section 5. A file

 

       consists of one Transmitter "T" Record followed by a Payer

 

       "A" Record, Payee "B" Records, End of Payer "C" Record, State

 

       Totals "K" Record (if applicable for CF/SF Program), and the

 

       End of Transmission "F" Record. A file can contain multiple

 

       Payer "A" Records, but, only one Transmitter "T" Record. A

 

       file format diagram is located at the end of Part E,

 

       Miscellaneous Information just before the mail labels.

 

 

IRS/MCC continues to receive prior year data in prior year format instead of current year format. Never send prior year data in prior year format. Be sure to use the current Revenue Procedure (Publication 1220) for formatting data for prior years.

2. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically

Each shipment of media sent to IRS/MCC must include a Form 4804. More than one type of media may be sent in the same shipment, (i.e., a tape, a diskette, or a tape cartridge) but must have a separate Form 4804 to accompany each type of media. In the following example, three separate Forms 4804 would be required in the total shipment. However, multiples of one type of media (i.e., 6 diskettes) may be covered by one Form 4804. For electronically transmitted information returns, the Form 4804 must be post-marked by the due date of the return. Often, electronic files are transmitted and no Form 4804 is sent to MCC.

EXAMPLE:

A & B Company sends in one shipment of the following magnetic media:

 

     1 Magnetic Tape = 1 Form 4804

 

     2 Diskettes = 1 Form 4804 covers both diskettes

 

     3 Tape Cartridges = 1 Form 4804 covers all three

 

                                 cartridges

 

 

Total Number of Forms 4804 for the above shipment = 3 Forms 4804

 

 

3. 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.

4. 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 Codes Field of the "A" Record, then the "B" Record must show payment amounts in only Payment Amount Fields 2, 4, and 7, right justified and unused positions must be zero (0) filled.

     EXAMPLE: "A" RECORD 247 bbbbbbbbb ("b" denotes a bank)

 

                            (Pos. 28-39)

 

               "B" RECORD 000000867599---(Payment Amount 2)

 

                            (Pos. 67-78)

 

                            000000709097---(Payment Amount 4)

 

                            (Pos. 91-102)

 

                            000000044985---(Payment Amount 7)

 

                            (Pos. 127-138)

 

 

5. 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.

6. Incorrect TIN in Payer "A" Record

The Payer's TIN reported in positions 12-20 of the "A" Record must be nine numeric characters (no alphas or special characters) in order for IRS/MCC to process the media. The TIN provided in the "A" Record must correspond with the name provided in the first payer name line.

7. Incorrect Tax Year in the Transmitter "T" Record, Payer "A" Record and the Payee "B" Record

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

8. Incorrect Reporting of Form W-2 Information to IRS

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 forwarded to SSA. The filer will be notified of this action by letter. To inquire about filing Form W-2 information magnetically, call 1-800-SSA-6270.

9. Excessive Withholding Credits

Generally, for most information returns, other than Forms 1099-MISC, 1099-R, and W-2G, Federal withholding amounts should not exceed 31 percent (backup withholding rate) of the income reported. Validate the total reported in the withholding field against the total income reported.

10. 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 errors that could result in penalties. 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 (CP2100 and CP2100A Notices) or penalties for missing or incorrect TINs. For penalty information, refer to the Penalty section of the 2000 "General Instructions for Forms 1099, 1098, 5498, and W-2G."

11. 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 Form 1099-R in the Payee "B" Record Layout, Field Positions 545-546.

12. Incorrect Record Totals Listed on Form 4804

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

13. Invalid Use of IRA/SEP/SIMPLE Indicator (Form 1099-R)

The IRA/SEP/SIMPLE indicator for Form 1099-R should be used for the reporting of a distribution from a traditional IRA/SEP/SIMPLE or a Roth conversion. It may be used at your option for a distribution from a Roth or Education IRA or for an IRA recharacterization. The total amount distributed from a traditional IRA/SEP/SIMPLE distribution or Roth conversion should be reported in Payment Amount Field A as well as Payment Amount Field 1.

14. Failure To Identify the Rollover Contributions and/or Fair Market Value of the Account for Form 5498.

Rollover contributions (Amount Code 2 of the "A" Record) and/or fair market value of the account (Amount Code 4 of the "A" Record) for Form 5498 must be identified as an IRA (position 547 of the "B" Record), SEP (position 548 of the "B" Record), SIMPLE (position 549 of the "B" Record), Roth IRA (position 550 of the "B" Record), Recharacterization (position 551 of the "B" Record), or Education IRA (position 552 of the "B" Record).

15. Media Received Without Data

Transmitters/filers should verify the presence of Form 1099 information returns on the media before sending the shipment to IRS/MCC.

Part B. Magnetic Media Specifications

Section 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/electronic file.

.02 A provision is made in the "B" Records for entries which are optional. If the field is not utilized, enter blanks to maintain a fixed record length of 750 positions. Each field description explains the intended use of specific field positions.

.03 Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifications, it will be returned to the transmitter for replacement. Filers are encouraged to submit a test prior to submitting the actual file. Contact IRS/MCC for further information at 304-263-8700.

Section 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 BPI.

 

          (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 BPI.

 

 

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 32,250 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 9s; however, the last block of the file may be filled

 

         with 9s 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 750.

 

 

     (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) Signifies 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.

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, 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 32,250 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 9s; however, the last block of the file may be filled

 

         with 9s 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 750.

 

 

     (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) Signifies 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 external media label and transmittal Form 4804 whether the cartridge is 18-track or 36-track.

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)

 

         standards, and have the following characteristics:

 

 

          (1) Created from an AS400 operating system only.

 

 

          (2) 8mm (.315-inch) tape cartridges will be 2 1/2-inch by

 

              3 3/4-inch.

 

 

          (3) The 8mm tape cartridges must meet the following

 

              specifications:

 

 

                 Tracks Density Capacity

 

 

                   1 20 (43245 BPI) 2.3 Gb

 

                   1 21 (45434 BPI) 5 Gb

 

 

          (4) Mode will be full function.

 

 

          (5) Compressed data is not acceptable.

 

 

          (6) Either EBCDIC (Extended Binary Coded Decimal

 

              Interchange Code) or ASCII (American Standard Coded

 

              Information Interchange) may be used. However, IRS/MCC

 

              encourages the use of EBCDIC. This information must

 

              appear on the external media label affixed to the

 

              cartridge.

 

 

          (7) A file may consist of more than one cartridge;

 

              however, no more than 250,000 documents may be

 

              transmitted per file or per cartridge. The filename,

 

              for example, IRSTAX, will contain a three digit

 

              extension. The extension will indicate the sequence of

 

              the cartridge within the file (e.g., 1 of 3, 2 of 3,

 

              and 3 of 3 will appear in the header label as

 

              IRSTAX.001, IRSTAX.002, and IRSTAX.003 on each

 

              cartridge of the file). The Transmitter "T" Record

 

              must only appear on the first cartridge. The End of

 

              Transmission "F" Record should be placed only on the

 

              last cartridge for files containing multiple

 

              cartridges.

 

 

.02 The 8mm (.315-inch) tape cartridge records defined in this Revenue Procedure may be blocked subject to the following:

     (a) A block must not exceed 32,250 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 9s; however, the last block of the file may be filled

 

         with 9s 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 750.

 

 

     (d) Various COPY commands have been successful; however, the

 

         SAVE OBJECT COMMAND is not acceptable.

 

 

     (e) Extraneous data following the "F" Record will result in

 

         media being returned for replacement.

 

 

     (f) Records may not span blocks.

 

 

     (g) No more than 250,000 documents per cartridge and per file.

 

 

.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.

 

 

     (b) For even parity, use BCD configuration 001111 (8421).

 

 

     (c) May follow the header label and precede and/or follow the

 

         trailer label.

 

 

.05 If extraneous data follows the End of Transmission "F" Record, the file will be returned for replacement. Therefore, IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data when submitting information returns.

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

 

 

     (b) The tracks are 1 (one).

 

 

     (c) The density is 19 (61000 BPI).

 

 

     (d) The typical capacity is DDS (DAT data storage) at 1.3 Gb

 

         (60 meter) or 2 Gb (90 meter), or DDS-2 at 4Gb (120 meter).

 

 

     (e) The general specifications for 8mm cartridges also apply to

 

         the 4 mm cassettes.

 

 

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

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

 

 

      (b) QIC cartridges must meet the following specifications:

 

 

            Size       Tracks       Density           Capacity

 

 

            QIC-24     8/9          5 (8000 BPI)      45Mb or 60Mb

 

            QIC-120    15           15 (10000 BPI)    120Mb or 200Mb

 

            QIC-150    18           16 (10000 BPI)    150Mb or 250 Mb

 

            QIC-525    26           17 (16000 BPI)    525Mb

 

            QIC-1000   30           21 (36000 BPI)    1Gb

 

            QIC-2Gb    42           34 (40640 BPI)    2Gb

 

 

      (c) The general specifications that apply to 8mm cartridges

 

          also apply to QIC cartridges.

 

 

* Note: Advanced Metal Evaporated (AME) cartridges are not acceptable.

Section 5. 3 1/2-Inch Diskette Specifications

IRS/MCC has discontinued processing 5 1/4-inch diskettes. Filers must use other methods by which to submit information returns magnetically/electronically.

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

     (a) 3 1/2-inches in diameter.

 

 

     (b) Data must be recorded in standard ASCII code.

 

 

     (c) Records must be a fixed length of 750 bytes per record.

 

 

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

 

 

     (e) Positions 749 and 750 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, if the file

 

         consists of three diskettes, the first diskette will be

 

         named IRSTAX.001, the second will be IRSTAX.002, and the

 

         third will be IRSTAX.003. The first diskette, IRSTAX.001

 

         will begin with a "T" Record and the third diskette,

 

         IRSTAX.003 will have an "F" Record at the end of the file.

 

 

     (g) A diskette will not contain multiple files as defined in

 

         Part A, Section 17. A file may have only ONE Transmitter

 

         "T" Record.

 

 

     (h) Failure to comply with instructions will result in media

 

         being returned for replacement.

 

 

     (i) Diskettes must meet one of the following specifications:

 

 

           Capacity Tracks Sides/Density Sector Size

 

 

           1.44mb 96tpi hd 512

 

           1.44 mb 135tpi hd 512

 

           1.2 mb 96tpi hd 512

 

 

.02 IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data follows the End of Transmission "F" Record, the file will be returned for replacement.

.03 IRS/MCC will only accept 31/2-inch diskettes created using MS-DOS.

* Notes: IRS/MCC has discontinued processing 51/4-inch diskettes.

IRS no longer has the capability to process non-MS-DOS compatible diskettes.

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

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

Section 6. Transmitter "T" Record -- General Field Descriptions

.01 The Transmitter "T" Record identifies the entity transmitting the magnetic media/electronic file and contains information which is supplied on the Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically. The "T" Record has been created to facilitate current magnetic/electronic processing of information returns at IRS/MCC.

.02 The Transmitter "T" Record is the first record on each file and is followed by a Payer "A" Record. See Part A, Sec. 17, Definition of Terms, for the definition of file. A file format diagram is located at the end of Part E, Miscellaneous Information, just before the mail labels. A file will be returned to the transmitter for replacement if the "T" Record is not present. For transmitters with multiple diskettes, refer to Sec. 5, 3 1/2-Inch Diskette Specifications.

.03 No money or payment amounts are reported in the Transmitter "T" Record.

.04 For all fields marked "Required", the transmitter must provide the information described under Description and Remarks. For those fields not marked "Required", a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field positions and for the indicated length.

.05 All records must be a fixed length of 750 positions.

.06 The Transmitter "T" Record must be followed by the Payer "A" Record, which must be followed with Payee "B" Records; however, the initial record on each file must be a Transmitter "T" Record.

.07 All alpha characters entered in the "T" Record must be upper-case.

.08 When transmitting information on magnetic media or electronically, the Transmitter "T" Record must precede the first Payer "A" Record and reflect the person actually transmitting the information to IRS/MCC.

                  Record Name: Transmitter "T" Record

 

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 1             Record Type     1         Required. Enter "T."

 

 

 2-5           Payment Year    4         Required. Enter "2000"

 

                                         (unless reporting prior year

 

                                         data; report the year which

 

                                         applies [1997, 1998, etc.]

 

                                         and set the Prior Year Data

 

                                         Indicator in field position

 

                                         6).

 

 

 6             Prior Year      1         Required. Enter "P" only if

 

               Data                      reporting prior year data;

 

               Indicator                 otherwise, enter blank. Do

 

                                         not enter a "P" if tax year

 

                                         is 2000.

 

 

 7-15          Transmitter's   9         Required. Enter the

 

               TIN                       transmitter's nine digit

 

                                         Tax Identification Number.

 

                                         May be an EIN, SSN or ITIN.

 

 

 16-20         Transmitter     5         Required. Enter the five

 

               Control Code              character alpha/numeric

 

                                         Transmitter Control Code

 

                                         (TCC) assigned by IRS/MCC. A

 

                                         TCC must be obtained to file

 

                                         data within this program.

 

 

 21-22         Replacement     2         Required for replacement

 

               Alpha                     files only. Enter the alpha/

 

               Character                 numeric character which

 

                                         appears immediately

 

                                         following the TCC number on

 

                                         the Media Tracking Slip

 

                                         (Form 9267). The Form 9267

 

                                         accompanies media that has

 

                                         been returned by IRS/MCC due

 

                                         to processing problems. This

 

                                         field must be blank unless

 

                                         media has been returned. If

 

                                         the file is being replaced

 

                                         magnetically, information is

 

                                         required in this field. If

 

                                         the file was originally sent

 

                                         magnetically, but the

 

                                         replacement is being sent

 

                                         electronically, the

 

                                         information is required in

 

                                         this field. Otherwise, leave

 

                                         blank for electronic files.

 

                                         Left justify information and

 

                                         fill unused positions with

 

                                         blanks. If this is not a

 

                                         replacement file, enter

 

                                         blanks.

 

 

 23-27         Blank           5         Enter blanks.

 

 

 28            Test File       1         Required for test files

 

               Indicator                 only. Enter a "T" if this is

 

                                         a test file; otherwise,

 

                                         enter a blank.

 

 

 29            Foreign         1         Enter a "1" (one) if the

 

               Enity                     transmitter is a foreign

 

               Indicator                 entity. If the transmitter

 

                                         is not a foreign entity,

 

                                         enter a blank.

 

 

 30-69         Transmitter     40        Required. Enter the name of

 

               Name                      the transmitter in the

 

                                         manner in which it is used

 

                                         in normal business. Left

 

                                         justify and fill unused

 

                                         positions with blanks.

 

 

 70-109        Transmitter     40        Enter any additional

 

               Name                      information that may be part

 

               (Continuation)            of the name. Left justify

 

                                         information and fill unused

 

                                         positions with blanks.

 

 

* Note: Any correspondence relating to problem media or electronic files will be sent to this address.

 110-149       Company         40        Required. Enter the name of

 

               Name                      the company to be associated

 

                                         with the address where

 

                                         correspondence should be

 

                                         sent or media should be

 

                                         returned due to processing

 

                                         problems.

 

 

 150-189       Company         40        Enter any additional

 

               Name                      information that may be part

 

               (Continuation)            of the name of the company

 

                                         where correspondence should

 

                                         be sent or media should be

 

                                         returned due to processing

 

                                         problems.

 

 

 190-229       Company         40        Required. Enter the mailing

 

               Mailing                   address where correspondence

 

               Address                   should be sent or media

 

                                         should be returned in the

 

                                         event IRS/MCC is unable to

 

                                         process.

 

 

 230-269       Company         40        Required. Enter the city,

 

               City                      town, or post office where

 

                                         correspondence should be

 

                                         sent or media should be

 

                                         returned in the event

 

                                         IRS/MCC is unable to

 

                                         process.

 

 

 270-271       Company         2         Required. Enter the valid U.

 

               state                     S. Postal Service State

 

                                         abbreviation. Refer to the

 

                                         chart of valid state codes

 

                                         in Part A, Sec. 18.

 

 

 272-280       Company         9         Required. Enter the valid

 

               ZIP Code                  nine digit ZIP Code assigned

 

                                         by the U.S. Postal Service.

 

                                         If only the first five

 

                                         digits are known, left

 

                                         justify information and fill

 

                                         unused positions with

 

                                         blanks.

 

 

 281-295       Blank           15        Enter blanks.

 

 

 296-303       Total Number    8         Enter the total number of

 

               of Payees                 Payee "B" Records reported

 

                                         in the file. Right justify

 

                                         information and fill unused

 

                                         positions with zeros.

 

 

 304-343       Contact Name    40        Required. Enter the name of

 

                                         the person to be contacted

 

                                         if IRS/MCC encounters

 

                                         problems with the the file

 

                                         or transmission.

 

 

 344-358       Contact's Phone 15        Required. Enter the

 

               Number &                  telephonenumber of

 

               Extension                 the person to contact

 

                                         regarding magnetic/

 

                                         electronic files. Omit

 

                                         hyphens. If no extension is

 

                                         available, left justify

 

                                         information and fill unused

 

                                         positions with blanks. For

 

                                         example, the IRS/MCC Call

 

                                         Site phone number of

 

                                         304-263-8700 with an

 

                                         extension of 52345 would

 

                                         be 304263870052345.

 

 

 359-360       Magnetic        2         Required for magnetic

 

               Tape File                 tape/tape cartridge filers

 

               Indicator                 only. Enter the letters "LS"

 

                                         (in uppercase only). Use of

 

                                         this field by filers using

 

                                         other types of media will be

 

                                         acceptable but is not

 

                                         required.

 

 

 361-375       Electronic      15        Required for a rejected

 

               File Name                 original or electronic

 

               For a                     file for which a replacement

 

               Replacement               is being sent. Enter the

 

               File                      ORIGINAL or CORRECTION

 

                                         electronic file name

 

                                         assigned by the IRS

 

                                         electronic FIRE system.

 

 

EXAMPLE: If you have sent an original file, the TCC is 44444 and it is your first original file, then the filename would be ORIG.44444.0001.

                                         If you are sending an

 

                                         original, correction or test

 

                                         file, then enter blanks.

 

 

 376-748       Blank           373       Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

Section 7. Transmitter "T" Record -- Record Layout

 Record Type                          1

 

 Payment Year                         2-5

 

 Prior Year Data Indicator            6

 

 Transmitter's TIN                    7-15

 

 Transmitter Control Code             16-20

 

 Replacement Alpha Character          21-22

 

 Blank                                23-27

 

 Test File Indicator                  28

 

 Foreign Entity Indicator             29

 

 Transmitter Name                     30-69

 

 Transmitter Name (Continuation)      70-109

 

 Company Name                         110-149

 

 Company Name (Continuation)          150-189

 

 Company Mailing Address              190-229

 

 Company City                         230-269

 

 Company State                        270-271

 

 Company ZIP Code                     272-280

 

 Blank                                281-295

 

 Total Number of Payees               296-303

 

 Contact Name                         304-343

 

 Contact's Phone Number & Extension   344-358

 

 Magnetic Tape File Indicator         359-360

 

 Electronic File Name For a

 

  Replacement File                    361-375

 

 Blank                                376-748

 

 Blank or CR/LF                       749-750

 

 

Section 8. Payer "A" Record -- General Field Descriptions

.01 The Payer "A" Record identifies the person making payments, a recipient of mortgage or student loan interest payments, an educational institution, a broker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee or issuer of any IRA or MSA plan, and 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/electronic files. The Payer "A" Record also 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 When reporting Form 1098, Mortgage Interest Statement, and Form 1098-E. Student Loan Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest payment, the filer of Forms 1098 and 1098-E (the payer). The "B" Record will reflect the individual paying the interest (the borrower/payer of record) and the amount paid. For Form 1099-S, Proceeds Form Real Estate Transactions, 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. When reporting Form 1098-T, Tuition Payments statement, the "A" Record will reflect the name and TIN of the educational institution receiving tuition payments. The "B" Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.

.05 The second 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.

.06 All records must be a fixed length of 750 positions.

.07 The initial record on a file must be a "T" Record followed by an "A" Record. IRS/MCC will accept an "A" Record after a "C" Record to report an additional payer or a different type of return. An "A" Record may be blocked with "B" Records. A file format diagram is located at the end of Part E, Miscellaneous Information just before the mail labels.

.08 Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.

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

.10 For all fields marked "Required", the transmitter must provide the information described under Description and Remarks. For those 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.

                     Record Name: Payer "A" Record

 

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 1             Record Type     1         Required. Enter "A."

 

 

 2-5           Payment Year    4         Required, Enter "2000"

 

                                         (unless reporting prior

 

                                         year data; report the year

 

                                         which applies [1998, 1999,

 

                                         etc.]).

 

 

 6-11          Blank           6         Enter blanks.

 

 

 12-20         Payer's         9         Required. Must be the valid

 

               Taxpayer                  nine-digit Taxpayer

 

               Identification            Identification Number

 

               Number                    assigned to the payer. Do

 

               (TIN)                     not enter blanks, hyphens,

 

                                         or alpha characters. All

 

                                         zeros, ones, twos, etc.,

 

                                         will have the effect of an

 

                                         incorrect TIN.

 

 

 * Note: For foreign entities that are not required to have a TIN,

 

 this field must be blank. However, the Foreign Entity Indicator,

 

 position 52 of the "A" Record, must be set to "1" (one).

 

 

 21-24         Payer Name      4         The Payer Name Control can

 

               Control                   be obtained only from 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 Form

 

                                         7018-C, Order Blank for

 

                                         Forms, and the mail label on

 

                                         the package contains a four

 

                                         (4) character name control.

 

                                         The MMR Package contains

 

                                         instructions for filing

 

                                         magnetically or

 

                                         electronically.

 

                                         For a business, 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. Names of less

 

                                         than four (4) characters

 

                                         should be left justified,

 

                                         filling the unused positions

 

                                         with blanks.

 

                                         The mail label on the MMR

 

                                         Package does not contain a

 

                                         name control. If a Package

 

                                         1099 has not been received

 

                                         or the Payer Name Control is

 

                                         unknown, this field must be

 

                                         blank filled.

 

 

 25            Last Filing     1         Enter a "I" (one) if this is

 

               Indicator                 the last 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.

 

 

 26            Combined        1         Required for the Combined

 

               Federal/State             Federal/State Filing

 

               Filer                     Program. Enter "1" (one) if

 

                                         participating in the

 

                                         Combined Federal/State

 

                                         Filing Program; otherwise,

 

                                         enter blank. Refer to Part

 

                                         A, Sec. 16, for further

 

                                         information. The only forms

 

                                         that may be filed under the

 

                                         Combined Federal/State

 

                                         Filing Program are: Forms

 

                                         1099-DIV, 1099-G, 1099-INT,

 

                                         1099-MISC, 1099-OID, 1099-

 

                                         PATR, 1099-R, and 5498.

 

 

 27            Type of         1         Required. Enter the

 

               Return                    appropriate code from the

 

                                         table below:

 

 

                                         Type of Return     Code

 

                                         ______________     ____

 

                                         1098               3

 

                                         1098-E             2

 

                                         1098-T             8

 

                                         1099-A             4

 

                                         1099-B             B

 

                                         1099-C             5

 

                                         1099-DIV           1

 

                                         1099-G             F

 

                                         1099-INT           6

 

                                         1099-LTC           T

 

                                         1099-MISC          A

 

                                         1099-MSA           M

 

                                         1099-OID           D

 

                                         1099-PATR          7

 

                                         1099-R             9

 

                                         1099-S             S

 

                                         5498               L

 

                                         5498-MSA           K

 

                                         W-2G               W

 

 

 28-39         Amount Codes    12        Required. Enter the

 

               (See Note)                appropriate amount codes for

 

                                         the type of return being

 

                                         reported. Generally, for

 

                                         each amount code entered in

 

                                         this field, a corresponding

 

                                         payment amount must 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 of Amount Codes:

 

 

      If position 27 of the Payer "A" Record is "A" (for 1099-MISC)

 

 and positions 28-39 are "1247AC bbbbb", this indicates the payer is

 

 reporting any or all six payment amounts (1247AC) in all of the

 

 following "B" Records. (In this example, "b" denotes blanks in the

 

 designated positions. Do not enter the letter "b".)

 

 

      The first payment amount field (1) will represent rents;

 

      the second payment amount field (2) will represent royalties;

 

      the third payment amount field (3) will be all "0" (zeros);

 

      the fourth payment amount field (4) will represent Federal

 

 income tax withheld;

 

      the fifth and sixth payment amount fields (5 and 6) will be all

 

 "0" (zeros);

 

      the seventh payment amount field (7) will represent nonemployee

 

 compensation;

 

      the eighth and ninth payment amount fields (8 and 9) will be

 

 all "0" (zeros);

 

 

      the tenth payment amount field (A) will represent crop

 

 insurance proceeds;

 

      the eleventh payment amount field (B) will be all "0" (zeros);

 

 and the twelfth payment amount field (C) will represent gross

 

 proceeds paid to an attorney in connection with legal services.

 

 

      Enter the amount codes in ascending sequence (i.e., 1247AC

 

 bbbbb), left justify information, and fill 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 appropriate paper instructions for each

 

 form.

 

 

 Amount Codes Form 1098 --               For Reporting Mortgage

 

 Mortgage Interest                       Interest Received From

 

 Statement                               Payers/Borrowers (Payer of

 

                                         Record) on Form 1098:

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  _________________

 

                                          1      Mortgage interest

 

                                                 received from

 

                                                 payer(s)/

 

                                                 borrower(s)

 

                                          2      Points paid on

 

                                                 purchase of

 

                                                 principal residence

 

                                          3      Refund (or credit)

 

                                                 of overpaid interest

 

                                          4      Blank (Filer's use)

 

                                                 See Note.

 

 

 * Note: The interest recipient may use this field to furnish other

 

 information, such as real estate taxes or insurance paid from

 

 escrow.

 

 

 Amount Codes Form 1098-E-               For Reporting Interest on

 

 Student Loan Interest                   Student Loans on Form 1098-E

 

 Statement

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  __________________

 

                                          1      Student loan

 

                                                 interest

 

                                                 received by lender

 

 

 * Note: Until regulations are adopted, no penalties will be imposed

 

 under IRC sections 6721 or 6722 for failure to file or furnish

 

 correct Forms 1098-E if you made a good faith effort to file and

 

 furnish them.

 

 

 Amount Codes Form 1098-T-               For Reporting Tuition

 

 Tuition Payments                        Payments on Form 1098-T (See

 

 Statement                               Note.)

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  __________________

 

                                          1      For filer's use (See

 

                                                 Notes.)

 

                                          2      For filer's use (See

 

                                                 Notes.)

 

 

* Note: When reporting Form 1098-T, the filer must use Type of Return Code 8 in position 27, and Amount Codes 1 and 2 in positions 28 and 29 of the Payer "A" Record. However, if no money is being reported, the payment amount fields will contain zeros. There is no requirement for filers to report money amounts on Form 1098-T for Tax Year 2000.

* Note: Until regulations are adopted, no penalties will be imposed under IRC sections 6721 or 6722 for failure to file or furnish correct Forms 1098-T if you made a good faith effort to file and furnish them.

 Amount Codes Form 1099-A-               For Reporting the

 

 Acquisition or Abandonment              Acquisition or Abandonment

 

 of Secured Property                     of Secured Property on Form

 

 (See Note.)                             1099A:

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  __________________

 

                                          2      Balance of principal

 

                                                 outstanding

 

                                          4      Fair market value of

 

                                                 property

 

 

 * Note: If, in the same calendar year, a debt is canceled in

 

 connection with a foreclosure or abandonment of secured property for

 

 one debtor and the filer would be required to file both Forms 1099-A

 

 and 1099-C, Cancellation of Debt, the filer is required to file Form

 

 1099-C only. See the 2000 "Instructions for Forms 1099-A and 1099-C"

 

 for further information on co-ordination with Form 1099-C.

 

 

 Amount Codes Form 1099-B-               For Reporting on Form

 

 Proceeds From                           1099-B:

 

 Broker and Barter

 

 Exchange Transactions                   Amount

 

                                         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  2000

 

                                                 (See Note 2.)

 

                                          7      Unrealized profit

 

                                                 (or loss) on open

 

                                                 contracts-

 

                                                 12/31/1999 (See Note

 

                                                 2.)

 

                                          8      Unrealized profit

 

                                                 (or loss) on open

 

                                                 contracts-

 

                                                 12/31/2000 (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 report a loss from a closing transaction on a forward

 

 contract. Refer to the "B" Record -- General Field Descriptions and

 

 Record Layouts, 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 or foreign currency contracts.

 

 

 Amount Codes Form 1099-C-               For Reporting Cancellation

 

 Cancellation of Debt                    of Debt on Form 1099-C:

 

 (See Note 1.)

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          2      Amount of debt

 

                                                 canceled

 

                                          3      Interest, if

 

                                                 included in Amount

 

                                                 Code 2

 

                                          7      Fair market value of

 

                                                 property (See Note

 

                                                 2.)

 

 

* Note 1: If, in the same calendar year, a debt is canceled in connection with a foreclosure or abandonment of secured property for one debtor and the filer would be required to file both Forms 1099-C and 1099-A, Acquisition or Abandonment of Secured Property, the filer is required to file Form 1099-C only. See the 2000 "Instructions for Forms 1099-A and 1099-C" for further information on coordination with Form 1099-A.

* Note 2: Use Amount Code 7 only if a combined Form 1099-A and 1099-C is being filed.

 Amount Codes Form 1099-DIV-             For Reporting Payments on

 

 Dividends and Distributions             Form 1099-DIV:

 

 

                                         Amount

 

                                         Code     Amount Type

 

                                         _______  ___________

 

 See the 2000 "Instructions               1       Ordinary dividends

 

 for Form 1099-DIV" for                   2       Total capital gains

 

 further information.                             distributions

 

                                          3       28% rate gain

 

                                          4       Unrecaptured

 

                                                  section 1250 gain

 

                                          5       Section 1202 gain

 

                                          6       Nontaxable

 

                                                  distributions

 

                                          7       Federal income tax

 

                                                  withheld (backup

 

                                                  withholding)

 

                                          8       Investment expenses

 

                                          9       Foreign tax paid

 

                                          A       Cash liquidation

 

                                                  distribution

 

                                          B       Noncash liquidation

 

                                                  distribution

 

 

 Amount Codes Form 1099-G-               For Reporting Payments on

 

 Certain Government and                  Form 1099-G:

 

 Qualified State Tuition

 

 Program Payments

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      Unemployment

 

                                                 compensation

 

                                          2      State or local

 

                                                 income tax refunds,

 

                                                 credits, or offsets

 

                                          4      Federal income tax

 

                                                 withheld

 

                                                 (backupwithholding

 

                                                 or voluntary

 

                                                 withholding on

 

                                                 unemployment

 

                                                 compensation

 

                                                 or Commodity Credit

 

                                                 Corporation Loans,

 

                                                 or certain crop

 

                                                 disaster payments)

 

                                          5      Qualified state

 

                                                 tuition program

 

                                                 earnings

 

                                          6      Taxable grants

 

                                          7      Agriculture payments

 

 

 Amount Codes Form 1099-INT-             For Reporting Payments on

 

 Interest Income                         Form 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

 

                                                 (backupwithholding)

 

                                          5      Investment expenses

 

                                          6      Foreign tax paid

 

 

 Amount Codes Form 1099-LTC-             For Reporting Payments on

 

 Long-Term Care and                      Form 1099-LTC:

 

 Accelerated Death Benefits

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      Gross long-term care

 

                                                 benefits paid

 

                                          2      Accelerated death

 

                                                 benefits paid

 

 

 Amount Codes Form 1099-MISC-           For Reporting Payments on

 

 Miscellaneous Income                   Form 1099-MISC:

 

 (See Note 1.)

 

                                        Amount

 

                                        Code     Amount Type

 

                                        _______  ___________

 

                                          1      Rents

 

                                          2      Royalties (See Note

 

                                                 2.)

 

                                          3      Other income

 

                                          4      Federal income tax

 

                                                 withheld (backup

 

                                                 withholding or

 

                                                 withholding on

 

                                                 Indian gaming

 

                                                 profits)

 

                                          5      Fishing boat

 

                                                 proceeds

 

                                          6      Medical and health

 

                                                 care payments

 

                                          7      Nonemployee

 

                                                 compensation

 

                                          8      Substitute payments

 

                                                 in lieu of dividends

 

                                                 or interest

 

                                          A      Crop insurance

 

                                                 proceeds

 

                                          B      Excess golden

 

                                                 parachute payments

 

                                          C      Gross proceeds paid

 

                                                 to an attorney in

 

                                                 connection with

 

                                                 legal services

 

 

 * Note 1: If reporting the Direct Sales Indicator only in position

 

 547 of the Payee "B" Record, use Type of Return Code A for 1099-MISC

 

 in position 27, and Amount Code 1 in position 28 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 must be reported on Form 1099-S.

 

 

 Amount Codes Form 1099-MSA-             For Reporting Distributions

 

 Distributions From an MSA or            from a Medical Savings

 

 Medicare+Choice MSA                     Account or Medicare+Choice

 

                                         MSA on Form 1099-MSA:

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      Gross distribution

 

                                          2      Earnings on excess

 

                                                 contributions

 

                                          4      Fair market value of

 

                                                 the account on date

 

                                                 of death

 

 

 Amount Codes Form 1099-OID-             For Reporting Payments on

 

 Original Issue Discount                 Form 1099OID;

 

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      Original issue

 

                                                 discount for 2000

 

                                          2      Other periodic

 

                                                 interest

 

                                          3      Early withdrawal

 

                                                 penalty

 

                                          4      Federal income tax

 

                                                 withheld (backup

 

                                                 withholding)

 

                                          6      Original issue

 

                                                 discount on U.S.

 

                                                 Treasury obligations

 

                                                 (See Note.)

 

                                          7      Investment expenses

 

                                                 (See Note.)

 

 

* Note: See the 2000 "Instructions for Forms 1099-INT and 1099-OID" for further reporting information.

 Amount Codes Form 1099-PATR-            For Reporting Payments on

 

 Taxable Distributions Received          Form 1099-PATR:

 

 From Cooperatives                       Amount

 

                                         Code    Amount Type

 

                                         _______ ___________

 

                                          1      Patronage dividends

 

                                          2      Nonpatronage

 

                                                 distributions

 

                                          3      Perunit retain

 

                                                 allocations

 

                                          4      Federal income tax

 

                                                 withheld (backup

 

                                                 withholding)

 

                                          5      Redemption of

 

                                                 nonqualified

 

                                                 notices and retain

 

                                                 allocations

 

                                         Pass-Through Credits (See

 

                                         Note.)

 

                                          6      For filer's use for

 

                                                 pass-through credits

 

                                          7      Investment credit

 

                                          8      Work opportunity

 

                                                 credit

 

                                          9      Patron's alternative

 

                                                 minimum tax (AMT)

 

                                                 adjustment

 

 

 * Note: Amount Codes 6, 7, 8, and 9 are reserved for the patron's

 

 share of unused credits that the cooperative is passing through to

 

 the patron. Other credits may be reported in Amount Code 6. The

 

 title of the credit reported in Amount Code 6 may be reported in the

 

 Special Data Entries Field in the Payee "B" Record. The amounts

 

 shown for Amount Codes 6, 7, 8, and 9 must be reported to the payee.

 

 These Amount Codes and the Special Data Entries Field are for the

 

 convenience of the filer. This information is not needed by IRS/MCC.

 

 

 Amount Codes Form 1099-R-               For Reporting Payments on

 

 Distributions From                      Form 1099-R:

 

 Pensions, Annuities,

 

 Retirement or Profit-                   Amount

 

 Sharing Plans, IRAs,                    Code    Amount Type

 

 Insurance Contracts, etc.               ______  ___________

 

                                          1      Gross distribution

 

                                                 (See Note 1.)

 

                                          2      Taxable amount (See

 

                                                 Note 2.)

 

                                          3      Capital gain

 

                                                 (included in Amount

 

                                                 Code 2)

 

                                          4      Federal income tax

 

                                                 withheld (See Note

 

                                                 3.)

 

                                          5      Employee

 

                                                 contributions or

 

                                                 insurance premiums

 

                                          6      Net unrealized

 

                                                 appreciation in

 

                                                 employer's

 

                                                 securities

 

                                          8      Other

 

                                          9      Total employee

 

                                                 contributions

 

                                          A      Traditional

 

                                                 IRA/SEP/SIMPLE

 

                                                 distribution or Roth

 

                                                 conversion (See

 

                                                 Note 4.)

 

 

* Note 1: If the payment shown for Amount Code 1 is a total distribution, enter a "1" (one) in position 549 of the "B" Record. An amount must be shown in Payment Amount Field 1 unless reporting an amount ONLY in Payment Amount Field 8. 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 Payment Amount Field 1, enter "0" (zero) in Payment Amount Field 2, and enter the employee's contributions in Payment Amount Field 5.

* Note 2: If the taxable amount cannot be determined, enter a "1" (one) in position 547 of the "B" Record. For a traditional IRA, SEP, or SIMPLE distribution, generally enter in Payment Amount Field A the same amount entered in Payment Amount Field 1.

* Note 3: See the 2000 "Instructions for Forms 1099-R and 5498" for information concerning Federal income tax withheld for Form 1099-R.

* Note 4: For Form 1099-R, report the Roth conversion or total amount distributed from an IRA, SEP, or SIMPLE in Payment Amount Field A (IRA/SEP/SIMPLE distribution or Roth conversion), Field Positions 163-174 of the Payee "B" Record, and generally, the same amount in Payment Amount Field 1 (Gross Distribution), Field Positions 55-66 of the Payee "B" Record. Amount Code A was created to identify the distribution as an IRA/SEP/SIMPLE or Roth conversion. The IRA/SEP/SIMPLE indicator should be set in Field Position 548 of the Payee "B" Record and the money should be reported in Payment Field A as well as Payment Field 1 of the Payee "B" Record; but, not in Payment Amount Field 2.

 Amount Codes Form 1099-S-               For Reporting Payments on

 

 Proceeds From                           Form 1099-S:

 

 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 IRC section 6050N. If timber

 

 royalties are being reported, enter "TIMBER" in the description

 

 field of the "B" record.

 

 

 Amount Codes Form 5498-                 For Reporting Information on

 

 IRA Contribution Information            Form 5498:

 

 (See Note 1.)

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      IRA contributions

 

                                                 (other than amounts

 

                                                 in Amount Codes 2,

 

                                                 3, 7, 8, 9, and A)

 

                                                 (See Note 3.)

 

                                          2      Rollover

 

                                                 contributions

 

                                          3      Roth conversion

 

                                                 amount

 

                                          4      Fair market value of

 

                                                 account

 

                                          5      Life insurance cost

 

                                                 included in Amount

 

                                                 Code 1

 

                                          7      SEP contributions

 

                                          8      SIMPLE contributions

 

                                          9      Roth IRA

 

                                                 contributions

 

                                          A      Education IRA

 

                                                 contributions

 

 

* Note 1: For information regarding Inherited IRAs, refer to the 2000 "Instructions for Forms 1099-R and 5498" and Rev. Proc. 89-52, 1989-2 C.B. 632. Beneficiary information must be given in the Payee Name Line Field of the "B" Record.

* Note 2: If reporting IRA contributions for a participant in a military operation see 2000 "Instructions for Forms 1099-R and 5498".

* Note 3: Also include employee contributions to an IRA under a SEP plan but not salary reduction contributions. DO NOT include EMPLOYER contributions; these are included in Amount Code 7.

 Amount Codes Form 5498-MSA-             For Reporting Information on

 

 MSA or Medicare+Choice MSA              5498-MSA:

 

 Information

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      Employee or

 

                                                 self-employed

 

                                                 person's MSA

 

                                                 contributions made

 

                                                 in 2000 and 2001 for

 

                                                 2000

 

                                          2      Total contributions

 

                                                 made in 2000

 

                                          3      Total MSA

 

                                                 contributions

 

                                                 made in 2001 for

 

                                                 2000

 

                                          4      Rollover

 

                                                 contributions

 

                                                 (See Note 1.)

 

                                          5      Fair market value of

 

                                                 MSA or M+C MSA (See

 

                                                 Note 2.)

 

 

 * Note 1: This is the amount of any rollover made to this MSA in

 

 2000 after a distribution from another MSA. For detailed information

 

 on reporting, see the 2000 "Instructions for Forms 1099-R 5498 and

 

 5498-MSA."

 

 

 * Note 2: This is the fair market value (FMV) of the account on

 

 December 31, 2000.

 

 

 Amount Code Form W-2G-                  For Reporting Payments on

 

 Certain Gambling                        Form W-2G:

 

 Winnings

 

                                         Amount

 

                                         Code    Amount Type

 

                                         ______  ___________

 

                                          1      Gross winnings

 

                                          2      Federal income tax

 

                                                 withheld

 

                                          7      Winnings from

 

                                                 identical wagers

 

 

 40-47         Blank           8         Enter blanks.

 

 

 48            Original File   1         Required for original files

 

               Indicator                 only. Enter "1" (one) if the

 

                                         information is original

 

                                         data. Otherwise, enter a

 

                                         blank.

 

 

 49            Replacement     1         Required for replacement

 

               File Indicator            files only. Enter "1" (one)

 

                                         if the purpose of this file

 

                                         is to replace a file that

 

                                         IRS/MCC returned to the

 

                                         transmitter due to errors

 

                                         encountered in processing.

 

                                         This is a file that has not

 

                                         been successfully processed

 

                                         by IRS. Otherwise, enter a

 

                                         blank.

 

 

 If selecting the Replacement File Indicator in Position 49,

 

 Field Positions 48 and 50 must be blank. Only one indicator may be

 

 selected for each Payer "A" Record.

 

 

 50            Correction      1         Required for correction

 

               File Indicator            files only. Enter "1" (one)

 

                                         if the purpose of this file

 

                                         is to correct information

 

                                         which was previously

 

                                         submitted to IRS/MCC, was

 

                                         processed, but contained

 

                                         erroneous information. Do

 

                                         not submit original

 

                                         information as corrections.

 

                                         Any information return which

 

                                         was inadvertently omitted

 

                                         from a file must be

 

                                         submitted as original.

 

                                         Otherwise, enter a blank.

 

 

 51            Blank           1         Enter a blank.

 

 

 52            Foreign         1         Enter a "1" (one) if the

 

               Entity                    payer is a foreign entity

 

               Indicator                 and income is paid by the

 

                                         foreign entity to a U. S.

 

                                         resident. If the payer is

 

                                         not a foreign entity, enter

 

                                         a blank.

 

 

 53-92         First           40        Required. Enter the name of

 

               Payer Name                the payer whose TIN appears

 

               Line                      in positions 12-20 of the

 

                                         "A" Record. Any extraneous

 

                                         information must be deleted.

 

                                         Left justify information,

 

                                         and fill unused positions

 

                                         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.)

 

 

 93-132        Second          40        If the Transfer (or Paying)

 

               Payer Name                Agent Indicator (position

 

               Line                      133) contains a "1" (one),

 

                                         this field must contain the

 

                                         name of the transfer (or

 

                                         paying) 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 information and

 

                                         fill unused positions with

 

                                         blanks.

 

 

 133           Transfer        1         Required. Identifies the

 

               Agent                     entity in the Second

 

               Indicator                 Payer Name Line Field.

 

                                         (See Part A, Sec. 17, for a

 

                                         definition of transfer

 

                                         agent.)

 

 

                                         Code     Meaning

 

                                         ____     _______

 

                                          1       The entity in the

 

                                                  Second Payer Name

 

                                                  Line Field is the

 

                                                  transfer (or

 

                                                  paying) agent.

 

                                          0 (zero) The entity shown

 

                                                  is not the transfer

 

                                                  (or paying) agent

 

                                                  (i.e., the Second

 

                                                  Payer Name Line

 

                                                  Field contains

 

                                                  either a

 

                                                  continuation of the

 

                                                  First Payer Name

 

                                                  Line Field or

 

                                                  blanks).

 

 

 134-173       Payer           40        Required. If the Transfer

 

               Shipping                  Agent Indicator in position

 

               Address                   133 is a "1" (one), enter

 

                                         the shipping address of the

 

                                         transfer (or paying) 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

 

                                         information, and fill

 

                                         unused positions with

 

                                         blanks.

 

 

      For U.S. addresses, the payer city, state, and ZIP Code must be

 

 reported as a 40, 2, and 9 position field, respectively. Filers must

 

 adhere to the correct format for the payer city, state, and ZIP

 

 Code.

 

 

      For foreign addresses, filers may use the payer city, state,

 

 and ZIP Code as a continuous 51 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

 

 Entity Indicator in position 52 must contain a "1" (one).

 

 

 174-213       Payer City      40        Required. If the Transfer

 

                                         Agent Indicator in position

 

                                         133 is a "1" (one), enter

 

                                         the city, town, or post

 

                                         office of the transfer

 

                                         agent. Otherwise, enter the

 

                                         city, town, or post office

 

                                         of the payer. Left justify

 

                                         information, and fill unused

 

                                         positions with blanks. Do

 

                                         not enter state and ZIP Code

 

                                         information in this field.

 

 

 214-215       Payer State     2         Required. Enter the valid

 

                                         U.S. Postal Service state

 

                                         abbreviations. Refer to the

 

                                         chart of valid state

 

                                         abbreviations in Part A,

 

                                         Sec. 18.

 

 

 216-224       Payer ZIP       9         Required. Enter the valid

 

               Code                      nine digit ZIP Code assigned

 

                                         by the U.S. Postal Service.

 

                                         If only the first five

 

                                         digits are known, left

 

                                         justify information 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 Entity

 

                                         Indicator, located in Field

 

                                         Position 52 of the "A"

 

                                         Record.

 

 

 225-239       Payer's Phone   15        Enter the payer's phone

 

               Number &                  number and extension.

 

               Extension

 

 

 240-748       Blank           509       Enter blanks.

 

 

 749-750       Blank           2         Enter blanks or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

Sec. 9. Payer "A" Record -- Record Layout

Record Type 1

 

Payment Year 2-5

 

Blank 6-11

 

Payer's TIN 12-20

 

Payer Name Control 21-24

 

Last Filing Indicator 25

 

Combined Federal/State Filer 26

 

Type of Return 27

 

Amount Codes 28-39

 

Blank 40-47

 

Original File Indicator 48

 

Replacement File Indicator 49

 

Correction File Indicator 50

 

Blank 51

 

Foreign Entity Indicator 52

 

First Payer Name Line 53-92

 

Second Payer Name Line 93-132

 

Transfer Agent Indicator 133

 

Payer Shipping Address 134-173

 

Payer City 174-213

 

Payer State 214-215

 

Payer ZIP Code 216-224

 

Payer's Phone Number and 225-239

 

Blank Extension 240-748

 

Blank or CR/LF 749-750

 

 

Section 10. Payee "B" Record -- General Field Descriptions and Record Layouts

.01 The "B" Record contains the payments information from the information returns. When filing information returns, the format for the "B" Records will remain constant and is a fixed length of 750 positions. The record layout for field positions 1 through 543 is the same for all types of returns. Field positions 544 through 750 vary for each type of return to accommodate special fields for individual forms. In the "A" Record, the amount codes that appear in field positions 28 through 39 will be left-justified and filled with blanks. In the "B" Record, the filer must allow for all twelve Payment Amount Fields. For those fields not used, enter "0s" (zeros). For example, a payer reporting on Form 1099-MISC should enter "A" in field position 27 of the "A" Record, Type of Return. If reporting payments for Amount Codes 1, 2, 4, 7, A and C, the payer would report field positions 28 through 39 of the "A" Record as "1247AC bbbbb." (In this example, "b" denotes blanks. Do not enter the letter "b".) In the "B" Record:

Positions 55 through 66 for Payment Amount 1 will represent rents.

Positions 67-78 for Payment Amount 2 will represent royalties.

Positions 79-90 for Payment Amount 3 will be "0's" (zeros).

Positions 91-102 for Payment Amount 4 will represent Federal income tax withheld.

Positions 103-126 for Payment Amounts 5 and 6 will be "0's" (zeros).

Positions 127-138 for Payment Amount 7 will represent nonemployee compensation.

Positions 139-162 for Payment Amounts 8 and 9 will be "0's" (zeros).

Positions 163-174 for Payment Amount A will represent crop insurance proceeds.

Positions 175-186 for Payment Amount B will be "0's" (zeros).

Positions 187-198 for Payment Amount C will represent gross proceeds paid to an attorney in connection with legal services.

.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;

     (a) 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 identifying the correct name control:

 

 

         (1) 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.

 

 

         (2) In the case of multiple payees, only the surname of the

 

             payee whose TIN (SSN, EIN, ITIN, or ATIN) 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.

 

 

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

.04 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 field position(s) and for the indicated length.

.05 All records must be a fixed length of 750 positions.

.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 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. This field will not affect the processing of the "B" Records.

.07 Following the Special Data Entries Field in the "B" Record, payment fields have been allocated for State Income Tax Withheld and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by IRS/MCC.

.08 Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A, Sec. 16, to participate in this program. Filers may not file Forms 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-LTC, 1099-MSA, 1099-S, 5498-MSA, and W-2G under the Combined Federal/State Filing Program.

.09 All alpha characters in the "B" Record must be uppercase.

.10 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 000000001000 in the payment amount field.

.11 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.

.12 When reporting Form 1098, Mortgage Interest Statement and Form 1098-E, Student Loan Interest Statement, the "A" Record will reflect the name and TIN of the recipient of the interest or payment, the filer of the Forms 1098 and 1098-E (the payer). The "B" Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Form 1099-S, Proceeds From Real Estate Transactions, 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. When reporting Form 1098-T, Tuition Payments Statement, the "A" Record will reflect the name and TIN of the educational institution receiving tuition payments. The "B" Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.

                     Record Name: Payee "B" Record

 

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 1             Record Type     1         Required. Enter "B."

 

 

 2-5           Payment Year    4         Required. Enter "2000"

 

                                         (unless reporting prior

 

                                         year data; report the year

 

                                         which applies [1998, 1999,

 

                                         etc.]).

 

 

 6             Corrected       1         Required for corrections

 

               Return                    only. Indicates a corrected

 

               Indicator                 return.

 

 

               (See Note.)               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.

 

 

 7-10          Name Control    4         If determinable, enter the

 

                                         first four characters of the

 

                                         surname of the person whose

 

                                         TIN is being reported in

 

                                         positions 12-20 of the "B"

 

                                         Record; otherwise, enter

 

                                         blanks. This usually is 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

 

                                         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. For a sole

 

                                         proprietorship use the name

 

                                         of the owner to create the

 

                                         name control and report the

 

                                         owner's name in positions

 

                                         248-287, First Payer Name

 

                                         Line.

 

 

* Note: Imbedded blanks, extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period [.], apostrophe[']) should be removed from the Payee Name Lines. This information may be dropped during subsequent processing at IRS/MCC. A dash (-) and an ampersand (&) are the only acceptable special characters.

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 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

 

               Estate of Sheila Blue         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 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.

 

 

 11            Type of TIN     1         This field is used to

 

                                         identify the Taxpayer

 

                                         Identification Number (TIN)

 

                                         in positions 12-20 as either

 

                                         an Employer Identification

 

                                         Number (EIN), a Social

 

                                         Security Number (SSN), an

 

                                         Individual Taxpayer

 

                                         Identification Number (ITIN)

 

                                         or an Adoption Taxpayer

 

                                         Identification Number

 

                                         (ATIN). Enter the

 

                                         appropriate code from the

 

                                         following table:

 

 

                                 Code   Type of TIN   Type of Account

 

                                 ____   ____ __ ___   _______________

 

                                 1      EIN           A business,

 

                                                      organization,

 

                                                      sole

 

                                                      proprietor, or

 

                                                      other entity

 

                                 2      SSN           An individual,

 

                                                      including a

 

                                                      sole proprietor

 

                                                 or

 

                                 2      ITIN          An individual

 

                                                      required to

 

                                                      have a taxpayer

 

                                                      identification

 

                                                      number, but who

 

                                                      is not eligible

 

                                                      to obtain an

 

                                                      SSN

 

                                                 or

 

                                 2      ATIN          An adopted

 

                                                      individual

 

                                                      prior to the

 

                                                      assignment of a

 

                                                      social security

 

                                                      number

 

                                 Blank  N/A           If the type of

 

                                                      TIN is not

 

                                                      determinable,

 

                                                      enter a blank.

 

 

 12-20         Payee's         9         Required. Enter the nine

 

               Taxpayer                  digit Taxpayer

 

               Identification            Identification Number of the

 

               Number (TIN)              payee (SSN, ITIN, ATIN, or

 

                                         EIN). If an 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.

 

                                         (See Note.)

 

 

 * Note: IRS/MCC contacts 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 (CP2100 or CP2100A

 

 Notices) or penalties for missing or incorrect TINs.

 

 

 21-40         Payer's         20        Enter any number assigned by

 

               Account Number            the payer to the payee

 

               For Payee                 (e.g., checking or savings

 

                                         account number). Filers are

 

                                         encouraged 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.

 

 

 41-44         Payer's Office  4         Enter office code of payer;

 

               Code                      otherwise, enter blanks.

 

                                         For payers with multiple

 

                                         locations, this field may be

 

                                         used to identify the

 

                                         location of the office

 

                                         submitting the information

 

                                         return. This code will also

 

                                         appear on back-up

 

                                         withholding notices.

 

 

 45-54         Blank           10        Enter blanks.

 

 

               Payment                   Required. Filers should

 

               Amount Fields             allow for all payment

 

               (Must be                  amounts. For those not used,

 

               numeric)                  enter zeros. For example: If

 

               (See Note.)               position 27, Type of Return,

 

                                         of the "A" Record, is "A"

 

                                         (for 1099-MISC) and

 

                                         positions 28-39, Amount

 

                                         Codes, are "1247AC bbbbb",

 

                                         this indicates the payer is

 

                                         reporting any or all six

 

                                         payment amounts in all of

 

                                         the following "B" Records.

 

                                         (In this example, "b"

 

                                         denotes blanks in the

 

                                         designated positions. Do not

 

                                         enter the letter "b")

 

                                         Payment Amount 1 will

 

                                         represent rents; Payment

 

                                         Amount 2 will represent

 

                                         royalties; Payment Amount 3

 

                                         will be all "0's" (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 nonemployee

 

                                         compensation; Payment

 

                                         Amounts 8 and 9 will be all

 

                                         "0's" (zeros); Payment

 

                                         Amount A will represent crop

 

                                         insurance proceeds; Payment

 

                                         Amount B will be all "0's"

 

                                         (zeros); and Payment Amount

 

                                         C will represent gross

 

                                         proceeds paid to an attorney

 

                                         in connection with legal

 

                                         services. Each payment field

 

                                         must contain 12 numeric

 

                                         characters. Each payment

 

                                         amount must contain 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 1099B. 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 over punch 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 over punch is

 

                                         not used, the number is

 

                                         assumed to be positive.

 

                                         Negative over punch 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: Filers must enter numeric information in all payment

 

 fields when filing magnetically or electronically. However, when

 

 reporting information on the statement to the recipient, the payer

 

 may be instructed to leave a box blank. Follow the guidelines

 

 provided in the paper instructions for the statement to the

 

 recipient.

 

 

 55-66         Payment         12        The amount reported in this

 

               Amount 1 /*/              field represents payments

 

                                         for Amount Code 1 in the "A"

 

                                         Record.

 

 

 67-78         Payment         12        The amount reported in this

 

               Amount 2 /*/              field represents payments

 

                                         for Amount Code 2 in the "A"

 

                                         Record.

 

 

 79-90         Payment         12        The amount reported in this

 

               Amount 3 /*/              field represents payments

 

                                         for Amount Code 3 in the "A"

 

                                         Record.

 

 

 91-102        Payment         12        The amount reported in this

 

               Amount 4 /*/              field represents payments

 

                                         for Amount Code 4 in the "A"

 

                                         Record.

 

 

 103-114       Payment         12        The amount reported in this

 

               Amount 5 /*/              field represents payments

 

                                         for Amount Code 5 in the "A"

 

                                         Record.

 

 

 115-126       Payment         12        The amount reported in this

 

               Amount 6 /*/              field represents payments

 

                                         for Amount Code 6 in the "A"

 

                                         Record.

 

 

 127-138       Payment         12        The amount reported in this

 

               Amount 7 /*/              field represents payments

 

                                         for Amount Code 7 in the "A"

 

                                         Record.

 

 

 139-150       Payment         12        The amount reported in this

 

               Amount 8 /*/              field represents payments

 

                                         for Amount Code 8 in the "A"

 

                                         Record.

 

 

 151-162       Payment         12        The amount reported in this

 

               Amount 9 /*/              field represents payments

 

                                         for Amount Code 9 in the "A"

 

                                         Record.

 

 

 163-174       Payment         12        The amount reported in this

 

               Amount A /*/              field represents payments

 

                                         for Amount Code A in the "A"

 

                                         Record.

 

 

 175-186       Payment         12        The amount reported in this

 

               Amount B /*/              field represents payments

 

                                         for Amount Code B in the "A"

 

                                         Record.

 

 

 187-198       Payment         12        The amount reported in this

 

               Amount C /*/              field represents payments

 

                                         for Amount Code C 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.

 

 

 199-246       Reserved        48        Enter blanks.

 

 

 247           Foreign         1         If the address of the payee

 

               Country                   is in a foreign country,

 

               Indicator                 enter a "1" (one) in 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.

 

 

 248-287       First Payee     40        Required. Enter the name of

 

               Name Line                 the payee (preferably

 

               (See Notes.)              surname first) whose

 

                                         Taxpayer Identification

 

                                         Number (TIN) was provided in

 

                                         positions 12-20 of the "B"

 

                                         Record. Left justify and

 

                                         fill unused positions with

 

                                         blanks. If more space is

 

                                         required for the name, use

 

                                         the Second Payee Name Line

 

                                         Field. The names of any

 

                                         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 Field. End the

 

                                         First Payee Name Line with a

 

                                         full word. Do not split

 

                                         words.

 

 

* Note 1: Extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period, apostrophe) should be removed from the Payee Name Lines. This information may be dropped during subsequent processing at IRS/MCC. A dash and an ampersand are the only acceptable special characters.

* Note 2: On Form 5498, for 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 2000 "Instructions for Forms 1099-R and 5498." The beneficiary's TIN must be reported in positions 12-20 of the "B" Record.

* Note 3: When reporting Form 1099-LTC, Long-Term Care and Accelerated Death Benefits, the Payee Name Line of the "B" Record will reflect the policyholder. The name of the insured will be reported in Field Positions 557-596 of the Payee "B" Record.

 288-327       Second Payee    40        If there are multiple payees

 

               Name Line                 (e.g., partners, joint

 

                                         owners, or spouses), use

 

                                         this field for those names

 

                                         not associated with the TIN

 

                                         provided in positions 12-20

 

                                         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 associated with the

 

                                         TIN. Left justify and fill

 

                                         unused positions with

 

                                         blanks. Fill with blanks if

 

                                         no entries are present for

 

                                         this field.

 

 

 328-367       Blank           40        Enter blanks.

 

 

 368-407       Payee Mailing   40        Required. Enter mailing

 

               Address                   address of payee. Street

 

                                         address should include

 

                                         number, street, apartment or

 

                                         suite number (or P.O. Box if

 

                                         mail is not delivered to

 

                                         street address). Left

 

                                         justify information 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 40, 2, and 9 position field, respectively. Filers must

 

 adhere to the correct format for the payee city, state, and ZIP

 

 code.

 

 

      For foreign addresses, filers may use the payee city, state,

 

 and ZIP Code as a continuous 51 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 247 must contain a "1" (one).

 

 

 408-447       Blank           40        Enter blanks.

 

 

 448-487       Payee City      40        Required. Enter the city,

 

                                         town or post office. Left

 

                                         justify information and fill

 

                                         the unused positions with

 

                                         blanks. Enter APO or FPO if

 

                                         applicable. Do not enter

 

                                         state and ZIP Code

 

                                         information in this field.

 

 

 488-489       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.

 

 

 490-498       Payee ZIP       9         Required. Enter the valid

 

               Code                      ZIP Code (nine or five

 

                                         digit) assigned by the U.S.

 

                                         Postal Service. If only the

 

                                         first five digits are known,

 

                                         left justify information 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, located in

 

                                         position 247 of the "B"

 

                                         Record.

 

 

 499-543       Blank           45        Enter blanks.

 

 

                  Standard Payee "B" Record Format For All

 

                    Types of Returns, Positions 1-543

 

 

 Record Type                          1

 

 

 Payment Year                         2-5

 

 

 Corrected Return Indicator           6

 

 

 Name Control                         7-10

 

 

 Type of TIN                          11

 

 

 Payee's TIN                          12-20

 

 

 Payer's Account Number               21-10

 

 

 Payer's Office Code                  41-44

 

 

 Blank                                45-54

 

 

 Payment Amount 1                     55-66

 

 

 Payment Amount 2                     67-78

 

 

 Payment Amount 3                     79-90

 

 

 Payment Amount 4                     91-102

 

 

 Payment Amount 5                     103-114

 

 

 Payment Amount 6                     115-126

 

 

 Payment Amount 7                     127-138

 

 

 Payment Amount 8                     139-150

 

 

 Payment Amount 9                     151-162

 

 

 Payment Amount A                     163-174

 

 

 Payment Amount B                     175-186

 

 

 Payment Amount C                     187-198

 

 

 Reserved                             199-246

 

 

 Foreign Country Indicator            247

 

 

 First Payee Name Line                248-287

 

 

 Second Payee Name Line               288-327

 

 

 Blank                                328-367

 

 

 Payee Mailing Address                368-407

 

 

 Blank                                408-447

 

 

 Payee City                           448-487

 

 

 Payee State                          488-489

 

 

 Payee ZIP Code                       490-498

 

 

 Blank                                499-543

 

 

The following sections define the field positions for the different types of returns in the Payee "B" Record (positions 544-750):

     (1) Forms 1098, 1098-E

 

     (2) Form 1098-T

 

     (3) Form 1099-A

 

     (4) Form 1099-B

 

     (5) Form 1099-C

 

     (6) Form 1099-DIV /*/

 

     (7) Form 1099-G /*/

 

     (8) Form 1099-INT /*/

 

     (9) Form 1099-LTC

 

     (10) Form 1099-MISC /*/

 

     (11) Form 1099-MSA

 

     (12) Form 1099-OID /*/

 

     (13) Form 1099-PATR /*/

 

     (14) Form 1099-R /*/

 

     (15) Form 1099-S

 

     (16) Form 5498 /*/

 

     (17) Form 5498-MSA

 

     (18) Form W-2G

 

 

/*/ These forms may be filed through the Combined Federal/State Filing Program. IRS/MCC will forward these records to participating states for filers who have been approved for the program. See Part A, Sec. 16, for information about the program, including specific codes for the record layouts.

(1) Payee "B" Record -- Record Layout Positions 544-750 for Forms 1098 and 1098-E

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-662       Blank           119       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-748       Blank           26        Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

           Payee "B" Record Record Layout Positions 544-750

 

                      Forms 1098 and 1098-E

 

 

 Blank                                544-662

 

 Special Data Entries                 663-722

 

 Blank                                723-748

 

 Blank or CR/LF                       749-750

 

 

 * Note: Until regulations are adopted, no penalties will be

 

 imposed under IRC sections 6721 or 6722 for failure to file or

 

 furnish correct Forms 1098-E or 1098-T if you made a good faith

 

 effort to file and furnish them.

 

 

(2) Payee "B" Record -- Record Layout Positions 544-750 for Form 1098-T

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Half-time       1         Enter "1" (one) if the

 

               Student                   student was at least a half-

 

               Indicator                 time student during any

 

                                         academic period that began

 

                                         in 2000. Otherwise, enter a

 

                                         blank.

 

 

 548           Graduate        1         Enter "1" (one) if the

 

               Student                   student is enrolled

 

               Indicator                 exclusively in a graduate

 

                                         level program. Otherwise,

 

                                         enter a blank.

 

 

 549-662       Blank           114       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-748       Blank           26        Enter blanks

 

 

 749-750       Blank           2         Enter blanks or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

             Payee "B" Record Record Layout Positions 544-750

 

                            Form 1098-T

 

 

 Blank                                544-546

 

 

 Half-time Student Indicator          547

 

 

 Graduate Student Indicator           548

 

 

 Blank                                549-662

 

 

 Special Data Entries                 663-722

 

 

 Blank                                723-748

 

 

 Blank or CR/LF                       749-750

 

 

(3) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099A

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Personal        1         Enter the appropriate

 

               Liability                 indicator from the table

 

               Indicator                 below:

 

                                         Indicator    Usage

 

                                         _________    _____

 

                                         1            Borrower was

 

                                                      personally

 

                                                      liable for

 

                                                      repayment of

 

                                                      the debt.

 

 

                                         Blank        Borrower was

 

                                                      not personally

 

                                                      liable for

 

                                                      repayment of

 

                                                      the debt.

 

 

 548-555       Date of         8         Enter the acquisition date

 

               Lender's                  of the secured property

 

               Acquisition of            or the date the lender first

 

               Knowledge of              knew or had reason to know

 

               Abandonment               the property was abandoned,

 

                                         in the format YYYYMMDD

 

                                         (e.g., 20001022). Do not

 

                                         enter hyphens or slashes.

 

 

 * For dates with one-digit months (i.e., January-September) or

 

 days (i.e., 1-9), enter a zero before the month or day. January 1,

 

 2000, would be 20000101. Do not enter blanks, alphas or special

 

 characters.

 

 

 556-594       Description     39        Enter a brief description of

 

               of Property               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-1999 Buick Regal or

 

                                         Office Equipment). Enter

 

                                         "CCC" for crops forfeited on

 

                                         Commodity Credit Corporation

 

                                         loans. If fewer than 39

 

                                         positions are required, left

 

                                         justify information and fill

 

                                         unused positions with

 

                                         blanks.

 

 

 595-662       Blank           68        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-748       Blank           26        Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

             Payee "B" Record Record Layout Positions 544-750

 

                             Form 1099-A

 

 

 Blank                                544-546

 

 

 Personal Liability Indicator         547

 

 Abandonment

 

 

 Date of Lender's Acquisition or      548-555

 

 Knowledge of

 

 

 Description of Property              556-594

 

 

 Blank                                595-662

 

 

 Special Data Entries                 663-722

 

 

 Blank                                723-748

 

 

 Blank or CR/LF                       749-750

 

 

(4) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-B

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544           Second TIN      1         Enter "2" to indicate

 

               Notice                    notification by IRS twice

 

               (Optional)                within three calendar years

 

                                         that the payee provided an

 

                                         incorrect name and/or TIN

 

                                         combination; otherwise,

 

                                         enter a blank.

 

 

 545-546       Blank           2         Enter blanks.

 

 

 547           Gross           1         Enter the appropriate

 

               Proceeds                  indicator from the following

 

               Indicator                 table, to identify the

 

                                         amount reported in Amount

 

                                         Code 2; otherwise, enter

 

                                         blanks.

 

 

                                         Indicator   Usage

 

                                         _________   _____

 

                                         1           Gross proceeds

 

                                         3           Gross proceeds

 

                                                     less commissions

 

                                                     and options

 

                                                     premiums

 

 

 548-555       Date of         8         For broker transactions,

 

               Sale                      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 YYYYMMDD

 

                                         (e.g., 20001022). Enter

 

                                         blanks if this is an

 

                                         aggregate transaction. Do

 

                                         not enter hyphens or

 

                                         slashes.

 

 

 * For dates with one-digit months (i.e., January-September) or

 

 days (i.e., 1-9), enter a zero before the month or day. January 2,

 

 2000 would be 20000102. Do not enter blanks, alphas or special

 

 characters.

 

 

 556-568       CUSIP Number    13        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 "0s" (zeros) if the

 

                                         number is not available.

 

                                         Right justify information

 

                                         and fill unused positions

 

                                         with blanks.

 

 

 569-607       Description     39        If fewer than 39 characters

 

                                         are required, left justify

 

                                         information 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. For bartering

 

                                         transactions, show the

 

                                         services or property

 

                                         provided.

 

 

 608-662       Blank           55        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         field.

 

 

 747-748       Blank           2         Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

Payee "B" Record Record Layout Positions 544-750 for Form 1099-B

 Second TIN Notice (Optional)         544

 

 

 Blank Proceeds Indicator             545-546

 

 

 Gross Sale                           547

 

 

 Date of Number                       548-555

 

 

 CUSIP                                556-568

 

 

 Description                          569-607

 

 

 Blank                                608-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Blank                                747-748

 

 

 Blank of CR/LF                       749-750

 

 

(5) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-C

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Bankruptcy      1         Enter "1" (one) to indicate

 

               Indicator                 the debt was discharged in

 

                                         bankruptcy, if known.

 

                                         Otherwise, enter a blank.

 

 

 548-555       Date            8         Enter the date the debt was

 

               Canceled                  canceled in the format of

 

                                         YYYYMMDD (e.g., 20001022).

 

                                         Do not enter hyphens or

 

                                         slashes.

 

 

      For dates with one-digit months (i.e., January-September) or

 

 days (i.e., 1-9), enter a zero before the month or day. January 2,

 

 2000 would be 20000102. Do not enter blanks, alphas or special

 

 characters.

 

 

 556-594       Debt            39        Enter a description of the

 

               Description               origin of the debt, such as

 

                                         student loan, mortgage, or

 

                                         credit card expenditure. If

 

                                         a combined Form 1099-C and

 

                                         1099-A is being filed, also

 

                                         enter a description of the

 

                                         property.

 

 

 595-662       Blank           68        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-748       Blank           26        Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

Payee "B" Record -- Record Layout Positions 544-750 for Form 1099C

 Blank                                544-546

 

 

 Bankruptcy Indicator                 547

 

 

 Date Canceled                        548-555

 

 

 Debt Description                     556-594

 

 

 Blank                                595-662

 

 

 Special Data Entries                 663-722

 

 

 Blank                                723-748

 

 

 Blank or CR/LF                       749-750

 

 

(6) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-DIV

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544           Second TIN      1         Enter "2" to indicate

 

               Notice                    notification by IRS twice

 

               (Optional)                within three calendar years

 

                                         that the payee provided an

 

                                         incorrect name and/or TIN

 

                                         combination: otherwise,

 

                                         enter a blank.

 

 

 545-546       Blank           2         Enter blanks.

 

 

 547-586       Foreign Country 40        Enter the name of the

 

               or U.S.                   foreign country or U.S.

 

               Possession                possession to which the

 

                                         withheld foreign tax (Amount

 

                                         Code 9) applies. Otherwise,

 

                                         enter blanks.

 

 

 587-662       Blank           76        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/State             be forwarded to a state

 

               Code                      agency as part of the

 

                                         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, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-DIV

 Second TIN Notice (Optional)         544

 

 

 Blank                                545-546

 

 

 Foreign Country or U.S. Possession   547-586

 

 

 Blank                                587-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Combined Federal/ State Code         747-748

 

 

 Blank or CR/LF                       749-750

 

 

(7) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-G

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Trade or        1         Enter "1" (one) to indicate

 

               Business                  the state or local income

 

               Indicator                 tax refund, credit, or

 

                                         offset (Amount Code 2) is

 

                                         attributable to income tax

 

                                         that applies exclusively to

 

                                         income from a a trade or

 

                                         business.

 

 

                                         Indicator    Usage

 

                                         _________    _____

 

                                         1            Income tax

 

                                                      refund applies

 

                                                      exclusively to

 

                                                      a trade or

 

                                                      business.

 

 

                                         Blank        Income tax

 

                                                      refund is a

 

                                                      general tax

 

                                                      refund.

 

 

 548-551       Tax Year        4         Enter the tax year for which

 

               of Refund                 the refund, credit, or

 

                                         offset (Amount Code 2) was

 

                                         issued. The tax year must

 

                                         reflect the year for which

 

                                         the payment was made, not

 

                                         the tax year of the Form

 

                                         1099-G. The tax year must be

 

                                         in the four position format

 

                                         of YYYY (e.g., 1998). The

 

                                         valid range of years for the

 

                                         refund is 1990 through 1999.

 

 

 552-662       Blank           111       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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. You may

 

                                         enter your routing and

 

                                         transit number (RTN) here.

 

                                         If this field is not

 

                                         utilized, enter blanks.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/State             be forwarded to a state

 

               Code                      agency as part of the

 

                                         Combined Federal/State

 

                                         Filing Program enter the

 

                                         valid state code from Part

 

                                         A, Sec. 16, Table I. For

 

                                         those payers or states not

 

                                         participating in this

 

                                         program, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-G

 Blank                                544-546

 

 

 Trade or Business Indicator          547

 

 

 Tax Year of Refund                   548-551

 

 

 Blank                                552-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Combined Federal/ State Code         747-748

 

 

 Blank or CR/LF                       749-750

 

 

(8) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-INT

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 1             Record Type     1         Required. Enter "T."

 

 

 544           Second TIN      1         Enter "2" to indicate

 

               Notice                    notification by IRS twice

 

               (Optional)                within three calendar years

 

                                         that the payee provided an

 

                                         incorrect name and/or TIN

 

                                         combination; otherwise,

 

                                         enter a blank.

 

 

 545-546       Blank           2         Enter blanks.

 

 

 547-586       Foreign Country 40        Enter the name of the

 

               or U.S.                   foreign country or U.S.

 

               Possession                possession to which the

 

                                         withheld foreign tax (Amount

 

                                         Code 9) applies. Otherwise,

 

                                         enter blanks.

 

 

 587-662       Blank           76        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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. You may

 

                                         enter your routing and

 

                                         transit number (RTN) here.

 

                                         If this field is not

 

                                         utilized, enter blanks.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/State             be forwarded to a state

 

               Code                      agency as part of the

 

                                         Combined Federal/State

 

                                         Filing Program, enter the

 

                                         valid state code from Part

 

                                         A, Sec. 16, Table I. For

 

                                         those payers or states not

 

                                         participating in this

 

                                         program, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

     Payee "B" Record -- Record Layout Positions 544-750 for Form

 

                               1099-INT

 

 

 Second TIN Notice (Optional)         544

 

 

 Blank                                545-546

 

 

 Foreign Country or U.S. Possession   547-586

 

 

 Blank                                587-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Combined Federal/State Code          747-748

 

 

 Blank or CR/LF                       749-750

 

 

(9) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-LTC

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Type of Payment 1         Enter the appropriate

 

               Indicator                 indicator from the

 

                                         following table: otherwise,

 

                                         enter blanks.

 

 

                                         Indicator    Usage

 

 

                                         1            Per diem

 

                                         2            Reimbursed

 

                                                      amount

 

 

 548-556       Social          9         Required. Enter the Social

 

               Security                  Security Number of the

 

               Number of                 insured.

 

               Insured

 

 

 557-596       Name of         40        Required. Enter the name of

 

               Insured                   the insured.

 

 

 597-636       Address         40        Required. Enter the address

 

               Insured                   of the insured. Street

 

                                         address should include

 

                                         number, street, apartment or

 

                                         suite number (or P.O. Box if

 

                                         not delivered to street

 

                                         address). Left justify

 

                                         information and fill unused

 

                                         positions with blanks. This

 

                                         field must not contain any

 

                                         data other than payee's

 

                                         address.

 

 

      For U.S. addresses, the payee city, state, and ZIP Code must be

 

 reported as a 40, 2, and 9 position field, respectively. Filers must

 

 adhere to the correct format for the insured's city, state, and ZIP

 

 Code.

 

 

      For foreign addresses, filers may use the insured's city,

 

 state, and ZIP Code as a continuous 51 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 247 must contain a "1"

 

 (one).

 

 

 637-676       City of         40        Required. Enter the city,

 

               Insured                   town, or post office. Left

 

                                         justify information and fill

 

                                         the unused positions with

 

                                         blanks. Enter APO or FPO, if

 

                                         applicable. Do not enter

 

                                         state and Zip Code

 

                                         information in this field.

 

 

 677-678       State of        2         Required. Enter the valid

 

               Insured                   U.S. Postal Service state

 

                                         abbreviations for states or

 

                                         the appropriate postal

 

                                         identifier (AA, AE, or AP)

 

                                         described in Part A, Sec.

 

                                         18.

 

 

 679-687       ZIP Code        9         Required. Enter the valid

 

               of Insured                nine digit ZIP Code assigned

 

                                         by the U.S. Postal Service.

 

                                         If only the first five

 

                                         digits are known, left

 

                                         justify information 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, located in

 

                                         position 247 of the "B"

 

                                         Record.

 

 

 688           Status of       1         Enter the appropriate code

 

               Illness                   from the table below to

 

               Indicator                 indicate the status of the

 

               (Optional)                illness of the insured;

 

                                         otherwise, enter blank:

 

 

                                         Indicator    Usage

 

                                         _________    _____

 

                                         1            Chronically ill

 

                                         2            Terminally ill

 

 

 689-696       Date            8         Enter the latest date of a

 

               Certified                 doctor's certification of

 

               (Optional)                the status of the insured's

 

                                         illness. The format of the

 

                                         date is YYYYMMDD (e.g.,

 

                                         20001022).

 

 

      For dates with one-digit months (i.e., January-September) or

 

 days  (i.e., 1-9), enter a zero before the month or day. January 2,

 

 2000 would be 20000102. Do not enter blanks, alphas or special

 

 characters

 

 

 697-722       Blank           26        Enter blanks.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled.

 

 

 747-748       Blank           2         Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                           for Form 1099-LTC

 

 

 Blank                                544-546

 

 

 Type of Payment Indicator            547

 

 

 SSN of Insured                       548-556

 

 

 Name of Insured                      557-596

 

 

 Address of Insured                   597-636

 

 

 City of Insured                      637-676

 

 

 State of Insured                     677-678

 

 

 ZIP Code of Insured                  679-687

 

 

 Status of Illness Indicator

 

 (Optional)                           688

 

 

 Date Certified (Optional)            689-696

 

 

 Blank                                697-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Blank                                747-748

 

 

 Blank or CR/LF                       749-750

 

 

(10) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099MISC

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544           Second TIN      1         Enter "2" to indicate

 

               Notice                    notification by IRS twice

 

               (Optional)                within three calendar years

 

                                         that the payee provided an

 

                                         incorrect name and/or TIN

 

                                         combination; otherwise,

 

                                         enter a blank.

 

 

 545-546       Blank           2         Enter blanks.

 

 

 547           Direct Sales    1         Enter a "1" (one) to

 

               Indicator                 indicate sales of $5,000 or

 

               (See Note.)               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 a direct sales indicator only, use Type of

 

 Return "A" in Field Position 27, and Amount Code 1 in Field Position

 

 28 of the Payer "A" Record. All payment amount fields in the Payee

 

 "B" Record will contain zeros.

 

 

 548-662       Blank           115       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/                  be forwarded to a state

 

               State Code                agency as part of the

 

                                         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, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                          for Form 1099-MISC

 

 

 Second TIN Notice (Optional)         544

 

 

 Blank                                545-546

 

 

 Direct Sales Indicator               547

 

 

 Blank                                548-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Combined Federal/ State Code         747-748

 

 

 Blank or CR/LF                       749-750

 

 

(11) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-MSA

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544           Blank           1         Enter blank.

 

 

 545           Distribution    1         Required. Enter the

 

               Code                      applicable code to indicate

 

                                         the type of payment:

 

                                         Code   Category

 

                                         ____   ________

 

                                         1      Normal distribution

 

                                         2      Excess contributions

 

                                         3      Disability

 

                                         4      Death distribution

 

                                                other than code 6

 

                                                (This includes

 

                                                distributions to a

 

                                                spouse, nonspouse, or

 

                                                estate beneficiary in

 

                                                the year of death and

 

                                                to an estate after

 

                                                the year of death.)

 

                                         5      Prohibited

 

                                                transaction

 

                                         6      Death distribution

 

                                                after year of death

 

                                                to a nonspouse

 

                                                beneficiary (Do not

 

                                                use for distribution

 

                                                to an estate.)

 

 

 546           Blank           1         Enter a blank

 

 

 547           Medicare+       1         Enter "1" (one) if

 

               Choice MSA                distributions are from a

 

               Indicator                 Medicare+Choice MSA.

 

                                         Otherwise, enter a blank.

 

 

 548-662       Blank           115       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Blank           2         Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                           for Form 1099-MSA

 

 

 Blank                                544

 

 

 Distribution Code                    545

 

 

 Blank                                546

 

 

 Medicare+ Choice MSA Indicator       547

 

 

 Blank                                548-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Blank                                747-748

 

 

 Blank or CR/LF                       749-750

 

 

(12) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-OID

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 

 544           Second TIN      1         Enter "2" to indicate

 

               Notice                    notification by IRS twice

 

               (Optional)                within three calendar years

 

                                         that the payee provided an

 

                                         incorrect name and/or TIN

 

                                         combination; otherwise,

 

                                         enter a blank.

 

 

 545-546       Blank           2         Enter blanks.

 

 

 547-585       Description     39        Required, 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 (must

 

                                         be 4 digit year) of maturity

 

                                         (e.g., NYSE XYZ 12 1/2000).

 

                                         Show the name of the issuer

 

                                         if other than the payer. If

 

                                         fewer than 39 characters are

 

                                         required, left justify

 

                                         information and fill unused

 

                                         positions with blanks.

 

 

 586-662       Blank           77        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/                  be forwarded to a state

 

               State Code                agency as part of the

 

                                         Combined Federal/State

 

                                         Filing Program, enter the

 

                                         valid state code from Part

 

                                         A, Sec. 16. Table I. For

 

                                         those payers or states not

 

                                         participating in this

 

                                         program, enter blanks.

 

 

 749-750       Blank           2         Enter blanks or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                           for Form 1099-OID

 

 

 Second TIN Notice (Optional)         544

 

 

 Blank                                545-546

 

 

 Description                          547-585

 

 

 Blank                                586-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Combined Federal/ State Code         747-748

 

 

 Blank or CR/LF                       749-750

 

 

(13) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-PATR

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 

 544           Second TIN      1         Enter "2" to indicate

 

               Notice                    notification by IRS twice

 

               (Optional)                within three calendar years

 

                                         that the payee provided an

 

                                         incorrect name and/or TIN

 

                                         combination; otherwise,

 

                                         enter a blank.

 

 

 545-662       Blank           118       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled.  If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/                  be forwarded to a state

 

               State Code                agency as part of the

 

                                         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, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                             for 1099-PATR

 

 

 Second TIN Notice (Optional)         544

 

 

 Blank                                545-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-746

 

 

 Local Income Tax Withheld            723-746

 

 

 Combined Federal/ State Code         747-748

 

 

 Blank or CR/LF                       749-750

 

 

(14) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-R

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544           Blank           1         Enter blank.

 

 

 545-546       Distribution    2         Required. Enter at least one

 

               Code                      distribution code from the

 

                                         table below. More than one

 

                                         code may apply. If only one

 

                                         code is required, it must be

 

                                         entered in position 545 and

 

               (For a detailed           position 546 must be blank.

 

               explanation of            A blank in position 545 is

 

               distribution              not acceptable. Position 545

 

               codes, see the            must contain a numeric code

 

               2000                      except when using Code D, E,

 

               "Instructions             F, G, H, J, L, M, P, R or S.

 

               for Forms 1099-R          Distribution Code A, when

 

               and 5498.")               applicable, must be entered

 

                                         in position 546 with the

 

                                         applicable numeric code in

 

                                         position 545. 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, 2, or 4

 

                                         if applicable. Only three

 

                                         numeric combinations are

 

                                         acceptable, Codes 8 and 1, 8

 

                                         and 2, and 8 and 4, on one

 

                                         return. These three

 

                                         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 with any

 

                                         other codes. Distribution

 

                                         Code G may be used with

 

                                         Distribution Code 4 only, if

 

                                         applicable.

 

 

                                         Code   Category

 

                                         ____   ________

 

                                         1      /*/ Early

 

                                                distribution, no

 

                                                known exception (in

 

                                                most cases, under age

 

                                                59 1/2)

 

 

                                         2      /*/ Early

 

                                                distribution,

 

                                                exception applies

 

                                                (Under age 59 1/2)

 

 

                                         3      /*/ Disability

 

 

                                         4      /*/ Death

 

 

                                         5      /*/ Prohibited

 

                                                transaction

 

 

                                         6      Section 1035 exchange

 

                                                (a tax-free exchange

 

                                                of life insurance,

 

                                                annuity, or endowment

 

                                                contracts)

 

 

                                         7      /*/ Normal

 

                                                distribution

 

 

                                         8      /*/ Excess

 

                                                contributions plus

 

                                                earnings/excess

 

                                                deferrals (and/or

 

                                                earnings) taxable in

 

                                                2000

 

 

                                         9      PS 58 costs (premiums

 

                                                paid by a trustee or

 

                                                custodian for current

 

                                                insurance protection)

 

 

                                         A      May be eligible for

 

                                                10-year tax option

 

 

                                         D      /*/ Excess

 

                                                contributions plus

 

                                                earnings/excess

 

                                                deferrals taxable in

 

                                                1998

 

 

                                         E      Excess annual

 

                                                additions under

 

                                                section 415

 

 

                                         F      Charitable gift

 

                                                annuity

 

 

                                         G      Direct rollover to

 

                                                IRA

 

 

                                         H      /*/ Direct rollover

 

                                                to qualified plan or

 

                                                tax-sheltered annuity

 

                                                or a transfer from a

 

                                                conduit IRA to a

 

                                                qualified plan

 

 

                                         J      Distribution from a

 

                                                Roth IRA (This code

 

                                                may be used with Code

 

                                                1, 2, 3, 4, 5, 8, or

 

                                                P.)

 

 

                                         L      Loans treated as

 

                                                deemed distributions

 

                                                under section 72(p)

 

 

                                         M      Distribution from an

 

                                                education IRA (Ed

 

                                                IRA)

 

 

                                         P      /*/ Excess

 

                                                contributions plus

 

                                                earnings/excess

 

                                                deferrals taxable in

 

                                                1999

 

 

                                         R      Recharacterized IRA

 

                                                contribution (See

 

                                                Note.)

 

 

                                         S      /*/ Early

 

                                                distribution from a

 

                                                SIMPLE IRA in first 2

 

                                                years, no known

 

                                                exception

 

 

/*/ If reporting a traditional IRA, SEP, or SIMPLE distribution or a Roth conversion, use the IRA/SEP/SIMPLE Indicator of "1" (one) in position 548 of the Payee "B" Record.

* Note: The trustee of the first IRA must report the recharacterization as a distribution on Form 1099-R (and the original contribution and its character on Form 5498).

 547           Taxable Amount            Enter "1" (one) only if the

 

               Not Determined            taxable amount of the

 

               Indicator                 payment entered for Payment

 

                                         Amount Field 1 (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.]

 

                                         Please make every effort to

 

                                         compute the taxable amount.

 

 

 548           IRA/SEP/        1         Enter "1" (one) for a

 

               SIMPLE                    traditional IRA, SEP, or

 

               Indicator                 SIMPLE distribution or Roth

 

                                         conversion; otherwise, enter

 

                                         a blank, (See Note.) If the

 

                                         IRA/SEP/SIMPLE Indicator is

 

                                         used, enter the amount of

 

                                         the Roth conversion or

 

                                         distribution in Payment

 

                                         Amount Field A of the Payee

 

                                         "B" Record. Do not use the

 

                                         indicator for a distribution

 

                                         from a Roth or education IRA

 

                                         or for an IRA

 

                                         recharacterization.

 

 

 * Note: For Form 1099-R, generally, report the Roth conversion or

 

 total amount distributed from a traditional IRA, SEP, or SIMPLE in

 

 Payment Amount Field A (traditional IRA/SEP/SIMPLE distribution or

 

 Roth conversion), as well as Payment Amount Field 1 (Gross

 

 Distribution) of the "B" Record. Refer to the 2000 "Instructions for

 

 Forms 1099-R and 5498" for exceptions (Box 2a instructions).

 

 

 549           Total           1         Enter a "1" (one) only if

 

               Distribution              the payment shown for Amount

 

               Indicator (See            Code 1 is a total

 

               Note.)                    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.

 

 

 550-551       Percentage      2         Use this field when

 

               of Total                  reporting a total

 

               Distribution              distribution to more than

 

                                         one person, such as when a

 

                                         participant is deceased 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

 

                                         will be 11 percent). Enter

 

                                         the percentage received by

 

                                         the person whose TIN is

 

                                         included in positions 12-20

 

                                         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 any IRA

 

                                         distribution or for direct

 

                                         rollovers.

 

 

 552-662       Blank           111       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be used to record

 

                                         information for state or

 

                                         local government reporting

 

                                         or for the filer's own

 

                                         purposes. The state/payer's

 

                                         state number, state

 

                                         distribution, name of

 

                                         locality, and/or local

 

                                         distribution can be entered

 

                                         in this field. Payers should

 

                                         contact the state or local

 

                                         revenue departments for

 

                                         filing requirements. If this

 

                                         field is not utilized, enter

 

                                         blanks.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         field.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/State             be forwarded to a state

 

               Code                      agency as part of the

 

                                         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, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                            for Form 1099-R

 

 

 Blank                                544

 

 

 Distribution Code                    545-662

 

 

 Taxable Amount Not Determined

 

 Indicator                            547

 

 

 IRA/SEP/SIMPLE Indicator             548

 

 

 Total Distribution Indicator         549

 

 

 Percentage of Total Distribution     550-551

 

 

 Blank                                552-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Combined Federal/State Code          747-748

 

 

 Blank or CR/LF                       749-750

 

 

(15) Payee "B" Record -- Record Layout Positions 544-750 for Form 1099-S

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Property or     1         Required. Enter "1" (one) if

 

               Services                  the transferor received or

 

               Indicator                 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. Otherwise,

 

                                         enter a blank.

 

 

 548-555       Date of         8         Required. Enter the closing

 

               Closing                   date in the format YYYYMMDD

 

                                         (e.g., 20001022). Do not

 

                                         enter hyphens or  slashes.

 

 

      For dates with one-digit months (i.e., January-September) or

 

 days (i.e., 1-9), enter a zero before the month or day. January 2,

 

 2000 would be 20000102. Do not enter blanks, alphas or special

 

 characters.

 

 

 556-594       Address or      39        Required. Enter the address

 

               Legal                     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

 

                                         information and fill unused

 

                                         positions with blanks.

 

 

 595-662       Blank           68        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Blank           2         Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                            for Form 1099-S

 

 

 Blank                                544-546

 

 

 Property or Services Indicator       547

 

 

 Date of Closing                      548-555

 

 

 Address or Legal Description         556-594

 

 

 Blank                                592-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Blank                                747-748

 

 

 Blank or CR/LF                       749-750

 

 

 * Note: When reporting Form 1099-S, the "B" Record will reflect the

 

 seller/transferor information.

 

 

(16) Payee "B" Record -- Record Layout Positions 544-750 for Form 5498

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           IRA Indicator   1         Required, if applicable.

 

               (Individual               Enter "1" (one) if reporting

 

               Retirement                a rollover (Amount Code 2)

 

               Account)                  or Fair Market Value (Amount

 

                                         Code 4) for an IRA.

 

                                         Otherwise, enter a blank.

 

 

 548           SEP Indicator   1         Required, if applicable.

 

               (Simplified               Enter "1" (one) if reporting

 

               Employee                  rollover (Amount Code 2) or

 

               Pension)                  Fair Market Value (Amount

 

                                         Code 4) for a SEP.

 

                                         Otherwise, enter a blank.

 

 

 549           SIMPLE          1         Required, if applicable.

 

               Indicator                 Enter "1" (one) if reporting

 

               (Savings                  a rollover (Amount Code 2)

 

               Incentive                 or Fair Market Value (Amount

 

               Match Plan for            Code 4) for a SIMPLE.

 

               Employees)                Otherwise, enter a blank.

 

 

 550           Roth IRA        1         Required, if applicable.

 

               Indicator                 Enter "1" (one) if

 

                                         reporting a rollover (Amount

 

                                         Code 2) or Fair Market

 

                                         Value (Amount Code 4) for a

 

                                         Roth IRA. Otherwise, enter a

 

                                         blank.

 

 

 551           Recharacter-    1         Required, if applicable.

 

               ization                   Enter "1" (one) if

 

               Indicator                 reporting any

 

                                         recharacterization.

 

                                         Otherwise, enter a blank.

 

 

 552           Education       1         Required, if applicable.

 

               IRA Indicator             Enter "1" (one) if reporting

 

                                         a rollover (Amount Code 2)

 

                                         or Fair Market Value (Amount

 

                                         Code 4) for an Education

 

                                         IRA. Otherwise, enter a

 

                                         blank.

 

 

 553-662       Blank           110       Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-746       Blank           24        Enter blanks.

 

 

 747-748       Combined        2         If this payee record is to

 

               Federal/State             be forwarded to a state

 

               Code                      agency as part of the

 

                                         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, enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                             for Form 5498

 

 

 Blank                                544-546

 

 

 IRA Indicator                        547

 

 

 SEP  Indicator                       548

 

 

 SIMPLE Indicator                     549

 

 

 Roth IRA Indicator                   550

 

 

 Recharacterization Indicator         551

 

 

 Education IRA Indicator              552

 

 

 Blank                                553-662

 

 

 Special Data Entries                 663-722

 

 

 Blank                                723-746

 

 

 Combined Federal/State Code          747-748

 

 

 Blank or CR/LF                       749-750

 

 

(17) Payee "B" Record -- Record Layout Positions 544-750 for Form 5498-MSA

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Medicare+       1         Enter "1" for

 

               Choice MSA                Medicare+Choice MSA.

 

               Indicator

 

 

 548-662       Blank           115       Enter blanks.

 

 

 663-722       Special         60        This portion of the "B"

 

               Data Entries              Record may be 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.

 

 

 723-748       Blank           26        Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                           for Form 5498-MSA

 

 

 Blank                                544-546

 

 

 Medicare + Choice MSA Indicator      547

 

 

 Blank                                548-662

 

 

 Special Data Entries                 663-722

 

 

 Blank                                723-748

 

 

 Blank or CR/LF                       749-750

 

 

(18) Payee "B" Record -- Record Layout Positions 544-750 for Form W-2G

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 544-546       Blank           3         Enter blanks.

 

 

 547           Type of         1         Required. Enter the

 

               Wager Code                applicable type of wager

 

                                         code from the table below:

 

 

                                         Code   Category

 

                                         ____   ________

 

                                         1      Horse race track (or

 

                                                off-track betting of

 

                                                a horse track nature)

 

                                         2      Dog race track (or

 

                                                off-track betting of

 

                                                a dog track nature)

 

                                         3      Jai-alai

 

                                         4      State-conducted

 

                                                lottery

 

                                         5      Keno

 

                                         6      Bingo

 

                                         7      Slot machines

 

                                         8      Any other type of

 

                                                gambling winnings

 

 

 548-555       Date Won        8         Required. Enter the date of

 

                                         the winning transaction in

 

                                         the format YYYYMMDD (e.g.,

 

                                         20001022). 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).

 

 

      For dates with one-digit months (i.e., January-September) or

 

 days (i.e., 1-9), enter a zero before the month or day. January 2,

 

 2000 would be 20000102. Do not enter blanks, alphas or special

 

 characters.

 

 

 556-570       Transaction     15        Required. 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. For all others,

 

                                         enter blanks.

 

 

 571-575       Race            5         If applicable, enter the

 

                                         race (or game) relating to

 

                                         the winning ticket;

 

                                         otherwise, enter blanks.

 

 

 576-580       Cashier         5         If applicable, enter the

 

                                         initials or number of the

 

                                         cashier making the winning

 

                                         payment; otherwise, enter

 

                                         blanks.

 

 

 581-585       Window          5         If applicable, enter the

 

                                         window number or location

 

                                         of the person paying the

 

                                         winning payment; otherwise,

 

                                         enter blanks.

 

 

 586-600       First ID        15        For other than state

 

                                         lotteries, enter the first

 

                                         identification number of the

 

                                         person receiving the winning

 

                                         payment; otherwise, enter

 

                                         blanks.

 

 

 601-615       Second ID       15        For other than state

 

                                         lotteries, enter the second

 

                                         identification number of the

 

                                         person receiving the

 

                                         winnings; otherwise, enter

 

                                         blanks.

 

 

 616-662       Blank           47        Enter blanks.

 

 

 663-722       Special Data    60        This portion of the "B"

 

               Entries                   Record may be 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.

 

 

 723-734       State Income    12        State income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting state tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 735-746       Local Income    12        Local income tax withheld is

 

               Tax Withheld              for the convenience of the

 

                                         filers. This information

 

                                         does not need to be reported

 

                                         to IRS. The payment amount

 

                                         must be right justified and

 

                                         unused positions must be

 

                                         zero-filled. If not

 

                                         reporting local tax

 

                                         withheld, this field may be

 

                                         used as a continuation of

 

                                         the Special Data Entries

 

                                         Field.

 

 

 747-748       Blank           2         Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

          Payee "B" Record -- Record Layout Positions 544-750

 

                             for Form W-2G

 

 

 Blank                                544-546

 

 

 Type of Wager Code                   547

 

 

 Date Won                             548-555

 

 

 Transaction                          556-570

 

 

 Race                                 571-575

 

 

 Cashier                              576-580

 

 

 Window                               581-585

 

 

 First ID                             586-600

 

 

 Second ID                            601-615

 

 

 Blank                                616-662

 

 

 Special Data Entries                 663-722

 

 

 State Income Tax Withheld            723-734

 

 

 Local Income Tax Withheld            735-746

 

 

 Blank                                747-748

 

 

 Blank or CR/LF                       749-750

 

 

Section 11. End of Payer "C" Record -- General Field Descriptions and Record Layout

.01 The End of Payer "C" Record is a fixed record length of 750 positions. The control total fields are each 18 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. A file format diagram is located at the end of Part E, Miscellaneous Information, just before the mail labels.

.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 would appear in Control Totals 1 (positions 16-33), 3 (positions 52-69), and 6 (positions 106-123) of the "C" Record. In this example, positions 34-51, 70-105, and 124-231 would be zero filled. Positions 232-748 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 Type     1         Required. Enter "C."

 

 

 2-9           Number of       8         Required. Enter the total

 

               Payees                    number of "B" Records

 

                                         covered by the preceding "A"

 

                                         Record. Right justify

 

                                         information and fill unused

 

                                         positions with zeros.

 

 

 10-15         Blank           6         Enter blanks.

 

 

 16-33         Control         18        Required, Accumulate totals

 

               Total 1                   of any payment amount

 

                                         fields in the "B" Records

 

                                         into the appropriate control

 

 34-51         Control         18        total fields of the "C"

 

               Total 2                   Record. Control totals must

 

                                         be right justified and

 

                                         unused control total fields

 

 52-69         Control         18        zero-filled. All control

 

               Total 3                   total fields are 18

 

                                         positions in length.

 

 70-87         Control         18

 

               Total 4

 

 88-105        Control         18

 

               Total 5

 

 106-123       Control         18

 

               Total 6

 

 124-141       Control         18

 

               Total 7

 

 142-159       Control         18

 

               Total 8

 

 160-177       Control         18

 

               Total 9

 

 178-195       Control         18

 

               Total A

 

 196-213       Control         18

 

               Total B

 

 214-231       Control         18

 

               Total C

 

 

 232-748       Blank           517       Enter blanks.

 

 

 749-750       Blank           2         Enter blanks, or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

                 End of Payer "C" Record Record Layout

 

 

 Record Type                          1

 

 

 Number of Payees                     2-9

 

 

 Blank                                10-15

 

 

 Control Total 1                      16-33

 

 

 Control  Total 2                     34-51

 

 

 Control  Total 3                     52-69

 

 

 Control  Total 4                     70-87

 

 

 Control  Total 5                     88-105

 

 

 Control  Total 6                     106-123

 

 

 Control Total 7                      124-141

 

 

 Control Total 8                      142-159

 

 

 Control Total 9                      160-177

 

 

 Control Total A                      178-195

 

 

 Control Total B                      196-213

 

 

 Control Total C                      214-231

 

 

 Blank                                232-748

 

 

 Blank or CR/LF                       749-750

 

 

Section 12. State Totals "K" Record -- General Field Descriptions and Record Layout

.01 The State Totals "K" Record is a fixed record length of 750 positions. The control total fields are each 18 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. A file format diagram is located at the end of Part E, Miscellaneous Information, just before the mail labels.

.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 would 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.

(1) State Totals "K" Record -- Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, and 5498

 Field

 

 Position      Field Title     Length    Description and Remarks

 

 ____________________________________________________________________

 

 1             Record Type     1         Required. Enter "K."

 

 

 2-9           Number of       8         Required. Enter the total

 

               Payees                    number of "B" Records being

 

                                         coded for this state. Right

 

                                         justify information and fill

 

                                         unused positions with zeros.

 

 

 10-15         Blank           6         Enter blanks.

 

 

 16-33         Control         18        Required. Accumulate totals

 

               Total 1                   of any payment amount fields

 

                                         in the "B" Records for each

 

                                         state being reported into

 

 34-51         Control         18        the appropriate control

 

               Total 2                   total fields of the

 

                                         appropriate "K" Record.

 

                                         Control totals must be right

 

 52-69         Control         18        justified and unused control

 

               Total 3                   total fields zero-filled.

 

                                         All control total fields are

 

                                         18 positions in length

 

 70-87         Control         18

 

               Total 4

 

 88-105        Control         18

 

               Total 5

 

 106-123       Control         18

 

               Total 6

 

 124-141       Control         18

 

               Total 7

 

 142-159       Control         18

 

               Total 8

 

 160-177       Control         18

 

               Total 9

 

 178-195       Control         18

 

               Total A

 

 196-213       Control         18

 

               Total B

 

 214-231       Control         18

 

               Total C

 

 

 232-706       Blank           475       Enter blanks.

 

 

 707-724       State Income    18        State income tax withheld

 

               Tax Withheld              total is for the convenience

 

               Total                     of the filers. Aggregate

 

                                         totals of the state income

 

                                         tax withheld field in the

 

                                         Payee "B" Records;

 

                                         otherwise, enter blanks.

 

 

 725-742       Local Income    18        Local income tax withheld

 

               Tax Withheld              total is for the convenience

 

               Total                     of the filers. Aggregate

 

                                         totals of the local income

 

                                         tax withheld field in

 

                                         the Payee "B" Records;

 

                                         otherwise, enter blanks.

 

 

 743-746       Blank           4         Enter blanks.

 

 

 747-748       Combined        2         Required. Enter the code

 

               Federal/                  assigned to the state which

 

               State Code                is to receive the

 

                                         information. (Refer to Part

 

                                         A. Sec. 16,  Table 1.)

 

 

 749-750       Blank           2         Enter blanks or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

       State Totals "K" Record -- Record Layout Forms 1099-DIV,

 

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

 

                               and 5498

 

 

 Record Type                          1

 

 

 Number of Payees                     2-9

 

 

 Blank                                10-15

 

 

 Control Total 1                      16-33

 

 

 Control Total 2                      34-51

 

 

 Control Total 3                      52-69

 

 

 Control Total 4                      70-87

 

 

 Control Total 5                      88-105

 

 

 Control Total 6                      106-123

 

 

 Control Total 7                      124-141

 

 

 Control Total 8                      142-159

 

 

 Control Total 9                      160-177

 

 

 Control Total A                      178-195

 

 

 Control Total B                      196-213

 

 

 Control Total C                      214-231

 

 

 Blank                                232-706

 

 

 State Income Tax Withheld Total      707-724

 

 

 Local Income Tax Withheld Total      725-742

 

 

 Blank                                743-746

 

 

 Combined Federal/State Code          747-748

 

 

 Blank or CR/LF                       749-750

 

 

Section 13. End of Transmission "F" Record -- General Field Descriptions and Record Layout

.01 The End of Transmission "F" Record is a fixed record length of 750 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."

 

 

 2-9           Number of       8         Enter the total number of

 

               "A" Records               Payer in the "A" Records

 

                                         entire file (right justify

 

                                         and zero fill) or enter all

 

                                         zeros.

 

 

 10-30         Zero            21        Enter zeros.

 

 

 31-748        Blank           718       Enter blanks.

 

 

 749-750       Blank           2         Enter blanks or carriage

 

                                         return/line feed (CR/LF)

 

                                         characters.

 

 

            End of Transmission "F" Record -- Record Layout

 

 

 Record Type                          1

 

 

 Number of "A" Records                2-9

 

 

 Zero                                 10-30

 

 

 Blank                                31-748

 

 

 Blank or CR/LF                       749-750

 

 

Part C. Electronic Filing Specifications

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 (1-304-262-2400). Publications and forms are no longer available electronically from MCC. Users needing publications and forms will need to download them from the IRS's Internet Web Site at www.irs.gov or order them by calling 1-800-TAX-FORM (1-800-829-3676).

Section 2. Advantages of Filing Electronically

Some of the advantages of filing electronically are as follows:

     (1) Results available within 1-2 workdays as to the

 

         acceptability of the data transmitted. It is the filer's

 

         responsibility to dial back in and check results.

 

 

     (2) Later due date than magnetic media or paper for

 

         electronically filed Forms 1099, 1098, and W-2G (refer to

 

         Part A, Section 10.01).

 

 

     (3) Allows more attempts than magnetic media filing to correct

 

         bad files before imposing penalties (refer to Part C,

 

         Section 6.05).

 

 

     (4) Better customer service due to on-line availability of

 

         transmitter's files for research purposes.

 

 

     (5) Additional 60 days for testing -- November 1, 2000, to

 

         February 15, 2001, instead of November 1, 2000, through

 

         December 15, 2000.

 

 

Section 3. General

.01 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. 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 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 Customer Service toll-free number (1-800-829-1040) for assistance.

.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 If a request for extension is approved, transmitters who file electronically will be granted an extension of time 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 "T", "A", "B", "C", "K", and "F" Records are the same for electronically filed records as they are for 3 1/2- inch diskettes, tapes, and tape cartridges, 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 Transmitter "T" Record and end with an End of Transmission (EOT) "F" Record.

Section 4. Electronic Filing Approval Procedure

.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned prior to submitting their files electronically. (Filers who currently have a TCC for magnetic media 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, electronic filers assign their own passwords 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 do forget their password, call 304-263-8700 for assistance.

* Note: Passwords are case sensitive.

Section 5. Test Files

.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to test hardware and software connectivity. If filers wish to submit an electronic test file for Tax Year 2000 (returns to be filed in 2001), it must be submitted to IRS/MCC no earlier than November 1, 2000, and no later than February 15, 2001.

.02 If a filer encounters problems 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 electronic filing system phone number (1-304-262- 2400). This information will be available within 1-2 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.

Section 6. 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 The FIRE System will be down from December 29, 2000, through January 7, 2001. This will allow time for IRS/MCC to update its system to reflect current year changes.

.03 Data compression is encouraged when submitting information returns electronically. WinZip and PKZip are acceptable compression packages. UNIX COMPRESS may be acceptable; however, a test file is recommended to verify compatibility. IRS/MCC cannot accept self- extracting zip files or compressed files containing multiple files.

The time required to transmit information returns electronically will vary depending on the modem speed and the type of data compression used, if any. The time required to transmit a file can be reduced by as much as 95 percent by using software compression and hardware compression.

The following are actual transmission rates achieved in test uploads at MCC using compressed files. The actual transmission rates will vary depending on the modem speeds.

      Transmission

 

      Speed in bps   1000 Records   10,000 Records   100,000 Records

 

 ____________________________________________________________________

 

           19.2K        34 Sec.          6 Min.          60 Min.

 

 

            56K         20 Sec.        3 1/2 Min.        33 Min.

 

 

        128K (ISDN)      8 Sec.           1 Min.         10 Min.

 

 

.04 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 [TEST, ORIG (original), CORR (correction), 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 in order to identify the file, if assistance is required, and to complete Form 4804.

.05 If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was transmitted or 4 replacement attempts within that 60 day period whichever comes first, to transmit an acceptable file. If an acceptable file is not received within 60 days or within 4 replacement attempts, then the payer could be subject to late filing penalties. This only applies to files originally sent electronically.

.06 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.

.07 The TCC in the Transmitter "T" Record must be the TCC used to transmit the file; otherwise, the file will be considered an error.

Section 7. Transmittal Requirements

.01 The results of the electronic transmission will be available in the File Status area of the electronic system within 1- 2 workdays; however, no further processing will occur until the signed Form 4804 is received. The Form 4804 must be postmarked by the due date of the return. No return is considered filed until a Form 4804 is received by IRS/MCC.

.02 Form 4804, which is located in the back of this publication, 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. It may also be obtained from the IRS's Internet Web Site at www.irs.gov. 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 TCC used in the Transmitter "T" Record is the TCC which must appear on the transmittal Form 4804.

.04 Forms 4804 should be mailed to the following address:

     If by Postal Service, air or truck freight:

 

        IRS-Martinsburg Computing Center

 

        Information Reporting Program

 

        Attn: Electronic Filing Coordinator

 

        230 Murall Drive

 

        Kearneysville, WV 25430

 

 

Please indicate on the envelope the following message:

CONTAINS FORM 4804 INFORMATION -- NO MAGNETIC MEDIA

Section 8. Electronic Filing Specifications

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

.02 A transmitter must have a TCC before a file can be transmitted. If you have a TCC for magnetic media filing, that TCC can also be used for electronic filing.

.03 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 1-2 workdays after the transmission is received by IRS/MCC.

.04 Contact the FIRE System by dialing 304-262-2400. This number supports analog connections from 1200bps to 56Kbps or ISDN BRI 128Kbps connections. 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 will provide an Internet-like look without going through the Internet (point-to- point). 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 9. 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

 

     (b) Set network protocol to TCP/IP

 

 

     Browser settings:

 

     (a) Set to receive 'cookies'

 

     (b) Enable JavaScript or Jscript

 

     (c) Browser must be capable of file uploads (i.e., Internet

 

         Explorer 4.0, Netscape 2.0 or higher)

 

     (d) Enter the URL address of http://10.225.224.2 (Remember,

 

         this is a point-to-point connection, not the Internet.)

 

 

.02 Due to the large number of communication products available, it is impossible to provide specific information on all software/hardware configurations. However, since most of our filers use Windows 95, 98 or NT software, the following instructions are geared toward those products:

UNLOADING FILES WITH DIAL-UP NETWORKING/WEB BROWSER IN WINDOWS 95/98

Tips

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

(2) Your browser must be capable of file uploads, i.e., Internet Explorer 4.0 or Netscape Navigator 2.0 or higher.

(3) If you currently access the Internet via a LAN or a PROXY server, you will need to disable those options in your browser and enable 'Connect to the Internet using a modem'.

     Select Programs

 

             Accessories

 

             Communications (Windows 98)

 

             Dial-Up Networking

 

 

First time connecting with Dial-Up Network (If you have logged on previously, skip to Subsequent Dial-up Network Connections.)

The first time you dial-in, you will need to configure your Dial-Up Networking.

     Select 'Make new connection'.

 

     Type a descriptive name for the system your are calling.

 

     Select your modem.

 

     Click 'Next'.

 

     Enter area code 304 and telephone number 262-2400.

 

     Click 'Next'.

 

     When you receive a message that you have successfully created a

 

new Dial-Up

 

     Networking connection, click 'Finish'.

 

     Click 'Connect' to dial. If you are prompted for a user name

 

and password, complete according to local procedures; otherwise,

 

click 'OK'.

 

 

     When you receive the message that you have connected to our

 

system, click on your Web Browser (remember, you are not connecting

 

via the Internet -- this is a point-to-point connection).

 

     In the URL Address enter http://10.225.224.2 and press ENTER.

 

 

Subsequent Dial-Up Network connections

 

 

     Click 'Connect'.

 

     If prompted for user name and password, complete according to

 

local procedures; otherwise, click 'OK'.

 

     When you receive 'Connection Complete', click 'OK'.

 

     Click on your Web Browser (remember, you are not connecting via

 

the Internet).

 

     In the URL Address enter http://10.225.224.2 and press ENTER.

 

 

First time connection to The FIRE System (If you have logged on

 

previously, skip to Subsequent Connections to the FIRE System.)

 

 

     Click 'Create New Account'.

 

     Fill out the registration form and click 'Create'.

 

     Enter your logon name (most users logon with their first and

 

last name).

 

     Enter your password (the password is user assigned and is case

 

sensitive).

 

     Click 'Create'.

 

     If you receive the message 'account created', click 'OK'.

 

     Click 'Start the Fire Application'

 

 

Subsequent connections to The FIRE System

 

 

     Click 'Log On'.

 

     Enter your logon name (most users logon with their first and

 

last name).

 

     Enter your password (the password is user assigned and is case

 

sensitive).

 

 

At Menu Options:

 

 

     Click 'Information Returns'

 

     Enter your TCC:

 

     Enter your EIN:

 

     Click 'Submit'.

 

     The system will then display the company name, address, city,

 

state, ZIP code and phone number. This information will be used to

 

contact or send any correspondence regarding this transmission.

 

Update as appropriate and/or click 'Accept'.

 

 

Click one of the following:

 

 

     Original File

 

     Correction File

 

     Test File

 

     Replacement File (if you select this option, select one of the

 

following):

 

 

     FIRE Replacement (file was originally transmitted on this

 

     system) Click file to be replaced

 

          Magnetic Media Replacement File

 

          Enter the alpha character from Form 9267, Media Tracking

 

          Slip, that was returned with your magnetic media shipment.

 

          Click 'Submit'.

 

 

Enter the drive/path/filename of the file you want to upload or click 'Browse' to locate the file.

Click 'Upload'.

When the upload is complete, the screen will display the total bytesreceived and the file name to be recorded on your Form 4804, Box 7b.

If you have more files to upload for that TCC:

          Click 'File Another'; otherwise,

 

          Click 'Back to Main Menu'.

 

 

It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 1-2 business days.

At the Main Menu:

     Enter 'B' for file status.

 

     Press the Tab key to advance to TCC box; otherwise, enter 'E'

 

to exit.

 

     Enter your TCC:

 

     Enter your EIN:

 

     Choose the appropriate option.

 

     Tab to the file you want to look at and press ENTER.

 

 

If 'Results' indicate:

 

 

     'File Good' and you agree with the 'Count of Payees' and have

 

mailed your Form 4804,you are finished with this file. (Form 4804 is

 

not needed on a replacement file unless the number of payees has

 

changed from the original/correction file.)

 

 

     'File Bad' -- Correct the errors and resubmit the file as a

 

'replacement'.

 

 

     'Not Yet Processed' -- File has been received, but we do not

 

have results available yet. Please check back in a few days.

 

 

     Click on the desired file for a detailed report of your

 

transmission.

 

 

     When finished viewing your files, click on 'Main Menu'.

 

     Click 'Log Off'.

 

     Close your Web Browser.

 

 

IMPORTANT

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

Section 10. Communication Software Specifications (Text Interface)

.01 Communications software settings must be:

     -- No parity

 

     -- Eight data bits

 

     -- One stop bit

 

 

.02 Terminal Emulation must be VT100.

.03 Due to the large number of communication products available, it is impossible to provide specific information on all software/hardware configurations. However, since most of our filers use Windows 95, 98 or NT software, the following instructions are geared toward 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 or NT

     Select Programs

 

               Accessories

 

               Communications (Windows 98)

 

               Hyperterminal

 

               The first time you log on, select Hyperterminal,

 

          Hyperterm or Hyperterm.exe, whichever is available on your

 

          system. Thereafter, you can just select the icon that you

 

          have saved.

 

 

A box will appear titled 'Connection Description'.

Enter a name and choose an icon for the connection:

          Country Code: United States of America

 

          Area Code: 304

 

          Phone Number: 262-2400

 

 

     Connect Using: (default)

 

          (If you need to modify the phone number, select File, then

 

     Properties to enter defaults for the area code, phone numbers

 

     and/or special access codes.) Click on Dial.

 

 

A 'Connect' box will appear to show the status.

 

          Once you have connected to The FIRE System, if you do not

 

     get a menu within a few seconds, press the ENTER key one time.

 

 

First Time Logon

 

 

          When you have connected to the system, enter 'new' to

 

     create your logon name and password. Complete the registration

 

     information and enter 'y' to create account.

 

 

Logon Name and Password

 

 

          Logon Name: Enter a logon name. Most users enter their

 

     first and last name as the logon name.

 

 

          Password: Enter a password of your choosing (1-8

 

     alpha/numerics -- case sensitive).

 

 

          After entering the password, you will go to the Main Menu.

 

 

Transferring Your Electronic File

 

 

          Enter 'A' for Electronic Filing.

 

          After reading Information Notice, press ENTER.

 

          Enter 'A' for Forms 1098, 1099, 5498, W-2G, 1042-S, 8027

 

     and Questionable Forms W-4.

 

          Press the Tab key to advance to TCC box; otherwise, enter

 

     'E' to exit.

 

          Enter your TCC:

 

          Enter your EIN:

 

 

          The system will then display the company name, address,

 

     city, state, ZIP code, and phone number. This information will

 

     be used to contact or send correspondence (if necessary)

 

     regarding this transmission. If you need to update, enter 'n'

 

     to change information; otherwise, enter 'y' to accept.

 

 

Select one of the following:

                    'A' for an Original file

 

                    'B' for a Replacement file

 

                    'C' for a Correction file

 

                    'D' for a Test file

 

 

If you selected 'B' for a replacement file, select one of the following:

                    'A' Replacement Files For This System

 

                    This option is to replace an original/correction

 

                    file that was submitted electronically on this

 

                    system but was bad and needs to be replaced.

 

                    Select the file needing replaced.

 

 

                    'B' Magnetic media replacement files

 

                    Enter the alpha character from Form 9267, Media

 

                    Tracking Slip, that was returned with your

 

                    magnetic media shipment.

 

 

Choose one of the following protocols (Hyperterminal is normally set to Zmodem by default):

                    X -- Xmodem

 

                    Y -- Ymodem

 

                    Z -- Zmodem (Zmodem will normally give you the

 

                    fastest transfer rate.)

 

 

At this point, you must start the upload from your PC.

 

     To send a file:

 

 

                    Go to the hyperterminal menu bar,

 

                    Click on Transfer,

 

                    Click on Send file.

 

 

A box will appear titled 'Send File'.

Enter the drive/path/filename or click on Browse to locate your file.

Click on Send.

When the upload is complete, the screen will display the total bytes received and the file name to be recorded on your Form 4804, Box 7b.

Press ENTER to continue.

If you have more files to send for the same TCC/EIN, enter 'y'; otherwise, enter 'n'.

It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 1-2 business days.

At the Main Menu:

     Enter 'B' for file status.

 

     Press the Tab key to advance to TCC box; otherwise, enter 'E'

 

to exit.

 

     Enter your TCC:

 

     Enter your EIN:

 

     Choose the appropriate option.

 

     Tab to the file you want to look at and press ENTER.

 

 

If 'Results' indicate:

     'File Good' and you agree with the 'Count of Payees' and have

 

mailed your Form 4804, you are finished with this file, (Form 4804

 

is not needed on a replacement file unless the number of payees

 

changes from the original/correction file.)

 

 

     'File Bad' -- Correct the errors and resubmit the file as a

 

replacement.

 

 

     'Not Yet Processed' -- File has been received, but we do not

 

have results available yet. Please check back in a few days.

 

 

When you are finished, enter 'E' from the Main Menu to logoff.

Enter '2' to hang-up.

Section 11. Modem Configuration

.01 Hardware features

     (a) Enable hardware flow control

 

     (b) Enable modem error control

 

     (c) Enable modem compression

 

 

Section 12. Common Problems Associated with Electronic Filing

.01 Refer to Part A, Section 19, for common format errors associated with magnetic/electronic files.

.02 The following are the major non-format errors associated with electronic filing:

1. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically.

Even though you have sent your information returns electronically, you still need to mail a signed Form 4804 by the due date of the return. See Part C, Section 7.04, for the mailing address.

2. Transmitter does not dial back to the electronic system to determine file acceptability.

The results of your file transfer are posted to the FIRE System within two business days. It is your responsibility to verify file acceptability and, if the file contains errors, you can get an online listing of the errors. Data received and number of payee records are also displayed.

3. Incorrect file is not replaced timely.

If your file is bad, correct the file and timely resubmit as a replacement.

4. Transmitter compresses several files into one.

Only compress one file at a time. For example, if you have 10 uncompressed files to send, compress each file separately and send 10 separate compressed files.

5. Transmitter sends a file and File Status indicates that the file is good, but the transmitter wants to send a replacement or correction file to replace the original/correction/replacement file.

Once a file has been transmitted, you cannot send a replacement file unless File Status indicates the file is bad (1-2 business days after file was transmitted). If you do not want us to process the file, you must first contact us at 304-263-8700 to see if this is a possibility. However, this will count as a replacement. (See Part A, Sec. 17, for the definition of replacement.)

6. Transmitter sends an original file that is good, then sends a correction file for the entire file even though there are only a few changes.

The correction file, containing the proper coding, should only contain the records needing correction, not the entire file.

7. File is formatted as EBCDIC.

All files submitted electronically must be in standard ASCII code.

Part D. Magnetic/Electronic Specifications For Extensions of Time

Section 1. General

.01 The specifications in Part D include the required 200-byte record format for extensions of time to file requests submitted magnetically or electronically. Also included are the instructions for the information that is to be entered in the record. Filers are advised to read this section in its entirety to ensure proper filing.

.02 Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electronically. If you meet the threshold of more than 50 payers when requesting an extension but are below the 250 documents threshold, you must still submit a Form 4419, Application for Filing Information Returns Magnetically/Electronically. Requests for extensions of time may be made for Forms 1098, 1099, 5498, W-2G, W- 2, 1042-S and 8027.

.03 For Tax Year 2000 (returns due to be filed in 2001), transmitters requesting an extension of time to file for more than 50 payers (not payees) are required to file the extension request magnetically or electronically. Transmitters requesting an extension of time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed on tape, tape cartridge, 3 1/2-inch diskette, or electronically.

.04 For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809, Request for Extension of Time To File Information Returns, in the same package as the corresponding media or fax it to 304-264-5602. For extension requests filed electronically, the transmitter must fax the Form 8809 the same day the transmission is made.

.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names and TINs with the Form 8809 since this information is included on the magnetic or electronic file. However, Line 6 of the Form 8809 must be completed with the total number of records included on the magnetic media or electronic file.

.06 To be considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the request will be denied.

.07 A magnetically-filed request for an extension of time should be sent using the following address:

If by Postal Service, truck or air freight:

          IRS-Martinsburg Computing Center

 

          Information Reporting Program

 

          Attn: Extension of Time Coordinator

 

          240 Murall Drive

 

          Kearneysville, WV 25430

 

 

* 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.

.08 Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns, and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the "timely mailing as timely filing" rule. A similar rule applies to designated private delivery services (PDSs). See Part A, Sec. 10, for more information on PDSs. For requests delivered by a designated PDS, but through a non-designated service, the actual date of receipt by IRS/MCC will be used as the filing date.

.09 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, based on information contained in the file, specifying approval and/or denial.

.10 Do not submit tax year 2000 extensions of time to file requests on magnetic media before January 1, 2001 or electronically before january 8, 2001.

.11 Filers may request an extension of time as soon as they are aware that an extension is necessary but not 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.

.12 Each piece of magnetic media must have an external media label containing the following information:

     (a) Transmitter name

 

     (b) Transmitter Control Code (TCC)

 

     (c) Tax year

 

     (d) The words "Extension of Time"

 

     (e) Record count

 

 

.13 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. If the Form 8809 is not completed properly, processing may be delayed or the request may be denied.

.14 If the first request for an extension of time to file was submitted magnetically or electronically, additional extension requests should be submitted in the same manner.

.15 If an additional extension of time is needed, a second Form 8809 and file may be submitted before the end of the initial extension period with a postmark reflecting the date mailed. Line 7 on the form should be checked to indicate that the original extension has been received and the additional extension is being requested.

.16 See Part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are additional questions or concerns, contact IRS/MCC.

Section 2. Magnetic Tape, Tape Cartridge, 8mm, 4mm and QIC (Quarter- Inch Cartridge), 3 1/2-inch Diskette and Electronic Specifications

.01 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) A block must not exceed 32,600 tape positions and must be a

 

         multiple of 200.

 

     (e) Record length of 200 bytes.

 

     (f) Labeled or unlabeled tapes may be submitted.

 

 

.02 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.

 

              Indicate on the external media label 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) A block must not exceed 32,600 tape positions and must be a

 

         multiple of 200.

 

     (d) Record length of 200 bytes.

 

     (e) Labeled or unlabeled tape cartridges may be submitted.

 

 

.03 8mm, 4mm, and Quarter Inch Cartridge Specifications

     (a) In most instances, IRS/MCC can process 8mm tape cartridges

 

         that meet the following specifications:

 

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

 

              standards, and have the following characteristics:

 

               (a) Created from an AS400 operating system only.

 

               (b) 8mm (.315-inch) tape cartridges will be 2

 

                   1/2-inch by 3 3/4-inch.

 

               (c) The 8mm tape cartridges must meet the following

 

                   specifications:

 

 

     Tracks Density Capacity

 

 

     1 20 (43245 BPI) 2.3 Gb

 

     1 21 (45434 BPI) 5 Gb

 

 

               (d) Mode will be full function.

 

               (e) Compressed data is not acceptable.

 

               (f) Either EBCDIC (Extended Binary Coded Decimal

 

                   Interchange Code) or ASCII (American Standard

 

                   Coded Information Interchange) may be used.

 

                   However, IRS/MCC encourages the use of EBCDIC.

 

                   This information must appear on the external

 

                   media label affixed to the cartridge.

 

               (g) A file may consist of more than one cartridge;

 

                   however, no more than 250,000 documents may be

 

                   transmitted per file or per cartridge. The

 

                   filename, for example; IRSEOT, will contain a

 

                   three digit extension. The extension will

 

                   indicate the sequence of the cartridge within the

 

                   file, 1 of 3, 2 of 3, or 3 of 3, and will appear

 

                   in the header label IRSEOT.001, IRSEOT.002, and

 

                   IRSEOT.003 on each cartridge of the file.

 

          (2) The 8mm (.315-inch) tape cartridge records defined in

 

              this Revenue Procedure may be blocked subject to the

 

              following:

 

               (a) A block must not exceed 32,600 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 ???uncsted.

 

                   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 a 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 200.

 

               (d) Various SAVE commands have been successful,

 

                   however, the SAVE OBJECT COMMAND is not

 

                   acceptable.

 

               (e) Records may not span blocks.

 

          (3) For faster processing, IRS/MCC encourages transmitters

 

              to use header labeled cartridges. IRSEOT may be used

 

              as a suggested filename.

 

          (4) For the purposes of this Revenue Procedure, the

 

              following must be used:

 

               Tape Mark:

 

              (a) Signifies 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.

 

          (5) 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.

 

     (b) 4mm (157-inch) cassettes are now acceptable with the

 

         following specifications:

 

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

 

          (2) The tracks are 1 (one).

 

          (3) The density is 19 (61000 BPI).

 

          (4) The typical capacity is DDS (DAT data storage) at 1.3

 

              Gb or 2 Gb, or DDS-2 at 4 Gb.

 

          (5) The general specifications for 8mm cartridges will

 

              also apply to the 4mm cassettes.

 

     (c) Various Quarter-Inch Cartridges (QIC) (1/4-inch) are also

 

         acceptable.

 

          (1) QIC cartridges will be 4" by 6".

 

          (2) QIC cartridges must meet the following specification:

 

 

 Size            Tracks       Density                  Capacity

 

 QIC-24          8/9          5 (8000 BPI)             45Mb or 60Mb

 

 QIC-120         15           15 (10000 BPI)           120Mb or 200Mb

 

 

 QIC-150         18           16 (10000 BPI)           150Mb or 250Mb

 

 QIC-525         26           17 (16000 BPI)           525Mb

 

 QIC-1000        30           21 (36000 BPI)           1Gb

 

 QIC-2Gb         42           34 (40640 BPI)           2Gb

 

 

           (3) The general specifications that apply to 8mm cartridges

 

               will also apply to QIC cartridges.

 

 

* Note: Advanced Metal Evaporated (AME) cartridges are not acceptable.

.04 Diskette specifications are as follows:

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

 

          (b) ASCII recording mode only. Additional specifications

 

              may be found in Part B, Sec. 5, 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 (,) or quotes (") must not

 

              be used.

 

 

          (g) Positions 199 and 200 of each record have been reserved

 

              for use as carriage return/line feed (cf/lf)

 

              characters, if applicable.

 

 

     .05 Electronic Filing spcifications (See Note.)

 

 

          (a) A transmitter must have a Transmitter Control Code

 

              (TCC).

 

 

          (b) Filers can determine the acceptability of files

 

              submitted by checking the file status area of the

 

              system. These reports will be available on the

 

              electronic system within 5 business days if the Form

 

              8809 is received timely by IRS/MCC.

 

 

Note: See Part C, Electronic Filing Specifications, for detailed information on filing with IRS/MCC electronically.

Section 3. RECORD LAYOUT

.01 Positions 6 through 185 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. Only one TCC may be present in a file.

 ____________________________________________________________________

 

 

                  Record Layout for Extension of Time

 

 ____________________________________________________________________

 

 

 Field

 

 Position    Field Title     Length   Description and Remarks

 

 ____________________________________________________________________

 

 

 1-5         Transmitter        5     Required. Enter the five digit

 

             Control Code             Transmitter Control Code (TCC)

 

                                      issued by IRS. Only one TCC per

 

                                      file is acceptable.

 

 ____________________________________________________________________

 

 6-14        Payer              9     Required. Must be the valid

 

             TIN                      nine-digit EIN/SSN 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 187, must

 

                                      be set to "X."

 

 ____________________________________________________________________

 

 15-54       Payer             40     Required. Enter the name of the

 

             Name                     payer whose TIN appears in

 

                                      positions 6-14. Left justify

 

                                      information and fill unused

 

                                      positions with blanks.

 

 ____________________________________________________________________

 

 55-94       Second            40     If additional space is needed

 

             Payer                    this field may be used to

 

             Name                     continue name line information

 

                                      (e.g., c/o First National Bank):

 

                                      otherwise, enter blanks.

 

 ____________________________________________________________________

 

 95-134      Payer             40     Required. Enter the payer's

 

             Address                  address. Street address should

 

                                      include number, street,

 

                                      apartment or suite number (or

 

                                      P.O. Box if mail is not

 

                                      delivered to a street address).

 

 ____________________________________________________________________

 

 135-174     Payer City        40     Required. Enter payer city,

 

                                      town, or post office.

 

 ____________________________________________________________________

 

 175-176     Payer State        2     Required. Enter the payer valid

 

                                      U.S. Postal Service state

 

                                      abbreviation. (Refer to Part A,

 

                                      Sec. 18.)

 

 ____________________________________________________________________

 

 177-185     Payer ZIP          9     Required. Enter payer ZIP Code.

 

             Code                     If using a five-digit ZIP Code,

 

                                      left justify information and

 

                                      fill unused positions with

 

                                      blanks.

 

 ____________________________________________________________________

 

 186         Document           1     Required. Enter the document for

 

             Indicator                which you are requesting an

 

             (See Note.)              extension of time using the

 

                                      following codes:

 

 

                                      Code    Document

 

 

                                      1       W-2

 

                                      2       1098, 1098-B, 1098-T,

 

                                              1098-A, 1099-B, 1099-C,

 

                                              1099-DIV, 1099-G,

 

                                              1099-INT, 1099-LTC,

 

                                              1099-MISC, 1099-MSA,

 

                                              1099-OID, 1099-PATR,

 

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

 

                                      3       5498

 

                                      4       1042-S

 

                                      5       REMIC Documents

 

                                              (1099-INT or 1099-OID)

 

                                      6       5498-MSA

 

 

 Note: 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 Form 1099-INT and Form 5498 for the same payer, submit

 

 one record with "2" coded in this field and another record with "3"

 

 coded in this field. If you are requesting an extension for Form

 

 1099-DIV and Form 1099-MISC for the same payer, submit one record

 

 with "2" coded in this field.

 

 ____________________________________________________________________

 

 187         Foreign            1     Enter character "X" if the

 

             Entity Indicator         payer is a foreign entity.

 

 ____________________________________________________________________

 

 188-198     Blank             11     Enter blanks.

 

 ____________________________________________________________________

 

 199-200     Blank              2     Enter blanks. Diskette filers

 

                                      may code the ASCII carriage

 

                                      return/line feed (CR/LF)

 

                                      characters.

 

 

 ____________________________________________________________________

 

 

                    Extension of Time Record Layout

 

 ____________________________________________________________________

 

 Transmitter                   Second

 

   Control    Payer   Payer    Payer    Payer     Payer    Payer

 

    Code       TIN    Name     Name    Address    City     State

 

 ____________________________________________________________________

 

    1-5       6-14    15-54    55-94    95-134    135-174  175-176

 

 ____________________________________________________________________

 

 

 _____________________________________________________

 

 Payer                  Foreign

 

  ZIP       Document     Entity                 Blank

 

 Code       Indicator   Indicator   Blank      or CR/LF

 

 _____________________________________________________

 

 177-185       186        187       188-198    199-200

 

 _____________________________________________________

 

 

Part E. Miscellaneous Information

Section 1. Addresses for Martinsburg Computing Center

To submit an application to file, correspondence, and magnetic media files, use the following:

Mailing by U.S. Postal Service, truck or air freight:

     IRS -- Martinsburg Computing Center

 

     Information Reporting Program

 

     230 Murall Drive

 

     Kearneysville, WV 25430

 

 

To submit magnetically filed and paper extension and waiver requests, use the following address:

Mailing by U.S. Postal Service, truck or air freight:

     IRS -- Martinsburg Computing Center

 

     Information Reporting Program

 

     Attn: Extension of Time Coordinator

 

     240 Murall Drive

 

     Kearneysville, WV 25430

 

 

Section 2. Telephone Numbers for Contacting IRS/MCC

 

 

     Information Reporting Program Call Site: 304-263-8700

 

 

     Telecommunication Device for the Deaf (TDD): 304-267-3367

 

 

            Between 8:30 a.m. and 4:30 p.m. Eastern Time

 

                        Monday through Friday
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    filing, electronic
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-14440 (76 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 101-7
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