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SERVICE DETAILS REQUIREMENTS FOR FILING INFORMATION RETURNS ON A 5-1/4 INCH DISKETTE.

AUG. 25, 1987

Rev. Proc. 87-45; 1987-2 C.B. 591

DATED AUG. 25, 1987
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Index Terms
    information return
  • Jurisdictions
  • Language
    English
  • Tax Analysts Electronic Citation
    87 TNT 169-8
Citations: Rev. Proc. 87-45; 1987-2 C.B. 591

Rev. Proc. 87-45

                              CONTENTS

 

 

PART A. GENERAL

 

 

     SECTION 1. PURPOSE

 

     SECTION 2. NATURE OF CHANGES--CURRENT YEAR (TAX YEAR 1987)

 

     SECTION 3. APPLICATION FOR MAGNETIC MEDIA REPORTING AND REQUESTS

 

                FOR UNDUE HARDSHIP WAIVERS

 

     SECTION 4. FILING OF MAGNETIC MEDIA REPORTS AND RETENTION

 

                REQUIREMENTS

 

     SECTION 5. FILING DATES

 

     SECTION 6. EXTENSIONS OF TIME TO FILE

 

     SECTION 7. PROCESSING OF MAGNETIC MEDIA RETURNS

 

     SECTION 8. HOW TO FILE CORRECTED RETURNS

 

     SECTION 9. TAXPAYER IDENTIFICATION NUMBERS

 

     SECTION 10. EFFECT ON PAPER RETURNS

 

     SECTION 11. HOW TO CONTACT THE IRS NATIONAL COMPUTER CENTER

 

     SECTION 12. COMBINED FEDERAL/STATE FILING

 

     SECTION 13. DEFINITIONS OF TERMS

 

     SECTION 14. STATE AND COUNTRY ABBREVIATIONS

 

 

PART B. DISKETTE SPECIFICATIONS

 

 

     SECTION 1. GENERAL

 

     SECTION 2. PAYER/TRANSMITTER "A" RECORD

 

     SECTION 3. PAYER/TRANSMITTER "A" RECORD--RECORD LAYOUT

 

     SECTION 4. PAYEE "B" RECORD--GENERAL FIELD DESCRIPTIONS AND

 

                RECORD LAYOUTS

 

     SECTION 5. END OF PAYER "C" RECORD

 

     SECTION 6. STATE TOTALS "K" RECORD

 

     SECTION 7. END OF TRANSMISSION "F" RECORD

 

 

NOTE: THIS REVENUE PROCEDURE MAY ONLY BE USED TO PREPARE MAGNETIC DISKETTE SUBMISSIONS FOR TAX YEAR 1987 RETURNS. UPDATED COPIES ARE PUBLISHED EACH YEAR. PLEASE READ THIS PUBLICATION CAREFULLY. PERSONS REQUIRED TO FILE MAY BE SUBJECT TO PENALTIES FOR FAILURE TO FOLLOW THE INSTRUCTIONS IN THIS REVENUE PROCEDURE AND FOR FAILURE TO INCLUDE CORRECT INFORMATION ON A RETURN. A $5 PER DOCUMENT PENALTY MAY BE IMPOSED FOR THE OMISSION OF INFORMATION AS WELL AS FOR THE INCLUSION OF INCORRECT INFORMATION. THE MAXIMUM PENALTY IS $20,000. (THERE IS NO MAXIMUM FOR CERTAIN INTEREST OR DIVIDEND RETURNS OR STATEMENTS.) YOU MAY ALSO BE SUBJECT TO PENALTIES OF $50 PER DOCUMENT FOR EACH DOCUMENT SUBMITTED WITHOUT A TAXPAYER IDENTIFICATION NUMBER (TIN) OR WITH AN INCORRECT TIN. AN ADDITIONAL $50 PENALTY PER DOCUMENT MAY BE IMPOSED FOR EACH DOCUMENT NOT SUBMITTED ON MAGNETIC MEDIA IF YOU ARE REQUIRED TO FILE THIS WAY OR IF YOU FILE LATE. THE MAXIMUM PENALTY IS $100,000 PER CALENDAR YEAR. (THERE IS NO MAXIMUM FOR FORMS 1099-INT, 1099-DIV, 1099-OID, 1099-PATR, 5498 OR IF THE FAILURE TO FILE IS DUE TO INTENTIONAL DISREGARD OF THE FILING AND CORRECT INFORMATION REQUIREMENTS.) IF A $50 PENALTY IS IMPOSED, THE $5 PENALTY WILL NOT BE APPLIED FOR THE SAME RETURN. IRS STRONGLY ENCOURAGES FILERS TO REVIEW THEIR DATA FOR ACCURACY BEFORE SUBMISSION TO PREVENT ERRONEOUS NOTICES BEING MAILED TO PERSONS FOR WHOM REPORTS ARE FILED.

PART A. -- GENERAL

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to provide the requirements and conditions for filing information return Forms 1098, 1099, 5498, and W-2G on 5 1/4 inch magnetic diskette. Other revenue procedures provide instructions for filing on magnetic tape, 8 inch magnetic diskette, and on Burroughs mini-disk. THIS REVENUE PROCEDURE IS TO BE USED FOR THE PREPARATION OF TAX YEAR 1987 INFORMATION RETURNS ONLY. THIS PROCEDURE IS UPDATED YEARLY TO REFLECT NECESSARY CHANGES. PLEASE READ THIS PUBLICATION CAREFULLY. Specifications for filing the following forms are contained in this procedure:

(a) Form 1098, Mortgage Interest Statement.

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

(c) Form 1099-B, Statement for Recipients of Proceeds From Real Estate, Broker, and Barter Exchange Transactions.

(d) Form 1099-DIV, Statement for Recipients of Dividends and Distributions.

(e) Form 1099-G, Statement for Recipients of Certain Government Payments.

(f) Form 1099-INT, Statement for Recipients of Interest Income.

(g) Form 1099-MISC, Statement for Recipients of Miscellaneous Income.

(h) Form 1099-OID, Statement for Recipients of Original Issue Discount.

(i) Form 1099-PATR, Statement for Recipients (Patrons) of Taxable Distributions Received From Cooperatives.

(j) Form 1099-R, Statement for Recipients of Total Distributions From Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, Etc.

(k) Form 5498, Individual Retirement Arrangement Information.

(l) Form W-2G, Statement for Recipients of Certain Gambling Winnings.

Specifications for filing Forms 1042S, 6248, 8027, W-2, and W-2P are contained in separate publications.

.02 All filing requirements that follow apply individually to each reporting entity as defined by its separate TIN (Social Security Number (SSN) or Employer Identification Number EIN)). For example, if you are a corporation with several branches or locations and each uses the same EIN, you must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements for each type of return accordingly.

Section 1.6045-1(1) of the Income Tax Regulations requires brokers and barter exchanges to use magnetic media to report ALL Form 1099-B data with the exception of real estate transactions to IRS. For real estate transactions, magnetic media filing is required if 250 or more Forms 1099-B must be filed. THESE REQUIREMENTS APPLY SEPARATELY TO BOTH ORIGINAL AND CORRECTED RETURNS.

Section 6011(e) of the Internal Revenue Code and the regulations thereunder, require any person, including corporations, partnerships, individuals, estates, and trusts, who must file, or were required to file for the prior year, more than 50 information returns in the aggregate for payments of interest (Forms 1099-INT and 1099-OID), dividends (Form 1099-DIV), or patronage dividends (Form 1099-PATR), for any calendar year, must file such returns on magnetic media. For example, if you must file 30 Forms 1099-DIV and 25 Forms 1099-INT, filing on magnetic media is required. THIS REQUIREMENT APPLIES SEPARATELY TO BOTH ORIGINAL AND CORRECTED RETURNS.

In addition, for returns filed in 1988 (for tax year 1987), magnetic media reporting is required if you file, or were required to file for the prior year, 250 or more of each of the following forms: Forms W-2, W-2P, W-2G, 1098, 1099-A, 1099-G, 1099-MISC, 1099-R, 5498, 1042S, 6248, and 8027. To determine the number of returns you are required to file, or were required to file for the prior year, count each type of form separately. For example, if you must file 450 Forms 1098 and 100 Forms 1099-A, the 450 Forms 1098 must be filed on magnetic media; however, you are not required to file the 100 Forms 1099-A on magnetic media. THIS REQUIREMENT APPLIES SEPARATELY TO BOTH ORIGINAL AND CORRECTED RETURNS. For example, if you file 300 1099-MISC returns and later file 50 corrections for Forms 1099-MISC, only the original 300 returns are required to be filed on magnetic media. The 50 1099-MISC corrections could be filed on paper since there are less than 250 corrections to be filed. All Forms 1099-B are required to be filed on magnetic media with the exception of real estate transactions. For real estate transactions, magnetic media filing is required if 250 or more returns must be filed. Forms W-2 and W-2P are filed with the Social Security Administration (SSA), NOT Internal Revenue Service (IRS). These requirements shall not apply if you establish that it will cause you undue hardship. Refer to Part A, Sec. 3.

.03 This procedure also provides the requirements and specifications for 5 1/4 inch magnetic diskette filing under the Combined Federal/State Filing Program. Refer to Part A, Sec. 12.

.04 The following revenue procedures and publications provide more detailed filing procedures for certain information returns:

(a) 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G," provide further information on filing returns with IRS. These instructions are available at IRS offices and are included in magnetic media reporting packages mailed to filers on this program each year.

(b) 1987 "Instructions for Reporting Real Estate Transactions on Form 1099-B" which is available at IRS offices.

(c) Rev. Proc. 84-24, 1984-1 C.B. 465, or other current revenue procedures, regarding preparation of transmittal documents (Forms 1096 and 4804) for information returns.

(d) Rev. Proc. 84-33, 1984-1 C.B. 502, or other current revenue procedures, regarding the optional method for agents to report and deposit backup withholding.

(e) Publication 1179, Specifications for Paper Document Reporting and Paper Substitutes for Forms 1096, 1098, 1099, 5498, and W-2G.

.05 This procedure supersedes the following revenue procedure: Rev. Proc. 86-32, 1986-2 C.B. 380, also published in Publication 1311 (Rev. 8-86), Requirements and Conditions for Filing Information Returns in the Forms 1098, 1099, 5498, and W-2G Series on 5 1/4 Inch Magnetic Diskette.

.06 Refer to Part A, Sec. 13 for definitions of terms used in this publication.

SEC. 2. NATURE OF CHANGES--CURRENT YEAR (TAX YEAR 1987)

.01 Numerous editorial changes have been made to the publication. The following changes must be incorporated into your programs for tax year 1987.

.02 GENERAL CHANGES ARE AS FOLLOWS:

(a) The note on the cover was revised to indicate changes to the maximum penalty per calendar year and to alert filers that penalties may be assessed for failure to include correct information.

(b) Information returns can no longer be filed on cassette.

(c) If you were required to file on magnetic media for tax year 1986, you are also required to file on magnetic media for tax year 1987.

(d) The title of Form 1099-B has been changed to include real estate transactions. For a real estate transaction closing after 1986, proceeds of certain sales must be reported on Form 1099-B. For more information on this new reporting requirement, refer to the 1987 "Instructions for Reporting Real Estate Transactions on Form 1099-B." All Forms 1099-B are required to be filed on magnetic media with the exception of real estate transactions. For real estate transactions, if 250 or more returns are to filed on Form 1099-B, they must be filed on magnetic media.

(e) A note was added to Part A, Sec. 1.02 concerning the magnetic media filing requirements as they apply to each TIN (SSN or EIN).

(f) References to Forms W-2 and W-2P have been deleted from several sections in the revenue procedure since these forms are filed with SSA.

(g) Additional information concerning the application Form 4419 has been added to Part A, Sec. 3.01.

(h) Filers are no longer required to submit a hardcopy printout or dump of their files except when submitting a "test" file after December 15.

(i) All test files must be submitted between October 1 and December 15. Only a hardcopy printout test will be accepted after December 15 and it must be postmarked by January 15, 1988.

(j) Part A, Sec. 3.05 instructs filers to submit separate application Forms 4419 if they submit two types of magnetic media.

(k) Transmitters may request waivers on behalf of persons required to file on magnetic media if all information requested on Form 8508 is provided for each payer and each type of information return. Refer to Part A, Sec. 3.08.

(l) Filers are instructed in Part A, Sec. 7.01 to open all files returned to them as soon as they are received. In some cases, files are returned due to errors and must be corrected and returned to IRS within 30 days of your receipt.

(m) Part A, Sec. 8 has been revised in its entirety to delete instructions concerning filing corrected returns on paper forms. This information is available in the 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G."

(n) The chart in Part A, Sec. 8.10 has been changed to indicate that two transactions are required to correct a Payee TIN.

(o) Information concerning penalties has been revised in Part A, Sec. 9.

(p) Part A, Sec. 10 has been revised in its entirety to update information concerning machine scannable forms and statements provided to the payee.

(q) To contact the IRS National Computer Center by telephone, calls must be placed between 8:30 A.M. and 6:30 P.M. Eastern Time Zone. Part A, Sec. 11 has been updated to reflect the new hours.

(r) Part A, Sec. 12.02 includes a note to filers requesting approval to participate in the Combined Federal/State Program. When "test" files are submitted for this program, attach a letter to the Form 4804 submitted with the "test" which indicates that you wish to participate.

(s) The dollar criteria in Table 2 of Part A, Sec. 12 has been changed. For the state of New York, Form 1099-PATR must now be reported if the amount is $600.00 or greater. The dollar criteria for Forms 1099-R, 1099-DIV, 1099-INT, and 1099-PATR has been increased for the state of Wisconsin to $600.00. For the state of Minnesota all Forms 5498 must be reported.

(t) A definition has been added to Part A, Sec. 13 for PS58 Costs.

(u) Part A, Sec. 14 has been revised to include new instructions in the usage of foreign country codes.

(v) Part B, Sec. 1.02(c) instructs filers that all records must be a fixed length of 420 positions.

(w) Positions 419 and 420 of each record have been reserved for carriage return/line feed characters for the 5 1/4 inch diskette.

(x) The filename of IRSTAX must be used (See Part B, Sec. 1.02.)

(y) A 5 1/4 inch diskette file may consist of multiple diskettes.

.03 THE FOLLOWING CHANGES HAVE BEEN MADE TO THE PAYER/TRANSMITTER "A" RECORD:

(a) Part B, Sec. 2.02 informs filers that all records must be a fixed length of 420 positions.

(b) Diskette positions 2 and 3 of the "A" Record now represent the payment year.

(c) Diskette positions 4 through 6 now represent the Diskette Sequence Number. You may enter the diskette sequence incremented by 1 for each diskette in the file or you may enter blanks or zeros. IRS bypasses this sequence check. You must indicate the proper sequence on the external label.

(d) A Payer Name Control has been added to the "A" Record.

(e) The Amount Indicators now appear in positions 23-31. Wherever possible, these codes have been changed to agree with the box numbers on paper forms.

(f) Form 1099-B now includes real estate transactions. Amount Code "1" has been added for reporting gross proceeds from real estate. Refer to the 1987 "Instructions for Reporting Real Estate Transactions on Form 1099-B" for information on this new reporting requirement.

(g) Form 1099-DIV has been revised considerably for tax year 1987. Dividends qualifying and dividends not qualifying for exclusion have been eliminated. Amount Code "2" now represents "Investment expenses included in Amount Code 1." Amount Code "3" is now "Capital gain distributions." Amount Code "5" is "Nontaxable distributions (if determinable)" and Amount Code "6" is "Foreign tax paid."

(h) The Amount Codes for Form 1099-INT have also changed for tax year 1987. Amount Code "2" represents "Early withdrawal penalty." "U.S. Savings Bonds" are now Amount Code "3." Amount Code "4" is "Federal income tax withheld," and Amount Code "5" is "Foreign tax paid (if eligible for foreign tax credit)."

(i) Two changes have been made to the Amount Codes for Form 1099-MISC. Amount Code "8" is now "Substitute payments in lieu of dividends or interest," and Amount Code "9" is the "Direct sales indicator." Royalty payments must now be reported in Amount Code "2" if they total $10 or more. The old reporting requirement for royalties was $600 or more.

(j) The title of Amount Code "3" for Form 1099-OID is now "Early withdrawal penalty."

(k) Two changes have been made to the Amount Codes for Form 1099-R. Amount Code "6" is now "Net unrealized appreciation in employer's securities" and Amount Code "8" is "IRA or SEP distributions." For distributions of qualified deductible voluntary employee contributions (DECs) made in 1987 and later years, do not report the distributions in Amount Code "8" as you have in the past. Rather, report these in Amount Codes "1" and "3." Only IRAs and SEPs are to be reported in Amount Code "8."

(l) The Amount Codes for Form 5498 have also changed considerably. Amount Code "1" is "Regular IRA contributions made in 1987 and 1988 for 1987," Amount Code "2" is "Rollover IRA contributions," Amount Code "3" is "Life insurance cost included in code 1," Amount Code "4" is "Fair market value of account." The Amount Code for reporting contributions to an SEP has been eliminated. Only the value of the account is to be reported in Amount Code "4" for SEPs. Do not report employer contributions to an SEP on Form 5498. Also, DECs can no longer be made; therefore, they have been eliminated from the Amount Codes. A new Amount Code for the value of the account has been added. Trustees and issuers of IRAs and SEPs should use this Amount Code "4" to report the value of the accounts in existence during the year, even if no contributions were made during the year.

(m) A Foreign Corporation Indicator has been added to the "A" Record for payers who are foreign corporations.

(n) It is no longer necessary to indicate the "A" and "B" Record lengths in the "A" Record since all records are a fixed length of 420 positions.

(o) The Second Payer Name Line is now 40 positions in length.

(p) If the Payer and Transmitter are the same, positions 211 through 420 of the "A" Record will be blank.

(q) A record layout has been included in Part B, Sec. 3 to assist you in developing the "A" Record.

(r) Positions 419 and 420 have been reserved for carriage return/line feed characters.

.04 THE FOLLOWING CHANGES HAVE BEEN MADE TO THE PAYEE "B" RECORD:

(a) Part B, Sec. 4.01 informs filers that all "B" Records must be a fixed length of 420 positions.

(b) Information has been added to the Document Specific Code, Description and Remarks section for DEC distributions reported on Form 1099-R.

(c) The Direct Sales Indicator in the Document Specific Code of the Payee "B" Record for Form 1099-MISC has been eliminated.

(d) For tax year 1987, a new indicator has been added to the Document Specific Code for Form 1099-MISC to report crop insurance proceeds. Diskette position 4 of the "B" Record will be used to indicate that the amount being reported for Amount Code "7," "Nonemployee compensation," represents crop insurance proceeds.

(e) The Payer's Account Number for Payee field length has been increased from 10 to 20 positions.

(f) Due to the fixed record length of 420 positions, the payment amount fields are no longer variable. All payment amounts are indicated as being used. For payment amounts where no amount is to be reported, you will enter zeros. For example, if you are indicating Amount Codes 2, 4, and 7 as being used in the "A" Record, positions 23 through 31 of the "A" Record will be "247bbbbbb". The "B" Record will have zeros in Payment Amounts 1, 3, 5, 6, 8, and 9. Payment Amounts 2, 4, and 7 will reflect the dollar amount to be reported. All money amounts must be reported in U.S. dollars.

(g) If you are reporting for a payee in a foreign country, enter a "1" in the Foreign Country Indicator field. This field appears in position 161 of the "B" Record. This will allow any format for the Payee Address, City, State and ZIP Code. For foreign addresses, you are not required to use the foreign country codes provided in the revenue procedure. You may spell out or abbreviate the foreign country. This free format is only allowable for foreign addresses. U.S. addresses must utilize the 2 position state codes provided in Part A, Sec. 14.

(h) Due to the fixed record lengths, the Special Data Entries field is now a fixed length and will only vary depending on the type of return being reported. IRS does not utilize the information in this field. It may be used for state reporting requirements or for the filer's own purposes.

(i) Negative amounts must not be reported for Bartering transactions on Form 1099-B. Plus or minus signs can be used in the left most position of each of the nine money amount fields to indicate whether a number is positive or negative.

(j) A Principal Residence Indicator has been added to Form 1099-B for real estate transactions; however, this indicator is not required to be used for tax year 1987.

(k) The Date of Sale field, Form 1099-B, may also represent a Closing Date for real estate transactions.

(l) The Cusip Number field for Form 1099-B has been increased from 8 to 15 positions.

(m) Record layouts have been included in the revenue procedure to assist you in developing the "B" record.

(n) Positions 419 and 420 have been reserved for carriage return/line feed characters.

.05 THE FOLLOWING CHANGES HAVE BEEN MADE TO THE "C," "K," AND "F" RECORDS:

(a) All records must be a fixed length of 420 positions.

(b) Plus or minus signs can be used in the left most position of the nine money amount fields to indicate positive or negative numbers. If a sign is not used, the number will be assumed to be positive.

(c) Record layouts have been included in the revenue procedure to assist you in developing these records.

(d) Positions 419 and 420 have been reserved for carriage return/line feed characters.

SEC. 3. APPLICATION FOR MAGNETIC MEDIA REPORTING AND REQUESTS FOR UNDUE HARDSHIP WAIVERS

.01 For purposes of this revenue procedure, the PAYER includes the person making payments, a recipient of mortgage interest payments, a broker, a barter exchange, a real estate broker, a trustee or issuer of an IRA or SEP, or a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned. The TRANSMITTER is the organization preparing the magnetic diskette file. The payer and transmitter may be the same organization. Payers or their transmitters are required to complete Form 4419, Application for Magnetic Media Reporting of Information Returns. A single Form 4419 should be filed no matter how many types of returns the payer or transmitter will be submitting. For example, if you plan to file Forms 1099-INT and Forms 1099-DIV on magnetic media, submit one Form 4419. If you later wish to file another type of return on magnetic media in the Form 1099, 1098, 5498, or W-2G series, it is not necessary to submit a new Form 4419.

If you plan to file for multiple payers, IRS encourages filers to submit one application and to use one Transmitter Control Code for all payers. Include a list of all payers and their TINs with the Form 4419. If you file for additional payers in later years, you may simply notify IRS in writing providing the additional names and TINs. Do not submit a new application for these additional payers.

Copies of Form 4419, for your use, are included in this publication. Requests for additional information or forms related to magnetic media processing should be addressed to the IRS National Computer Center. The address is listed in Part A, Sec. 11.

.02 Application Form 4419 should be filed with the IRS National Computer Center before "test" files are submitted. ("Test" files must be submitted between October 1 and December 15 each year.) IRS will act on an application and notify the applicant, in writing, of authorization to file. A five character alpha/numeric Transmitter Control Code will be assigned and included in an acknowledgement letter. Magnetic diskette returns may not be filed with IRS until the application has been approved and a Transmitter Control Code assigned. Do not enter blanks in the "A" Record Transmitter Control Code field; enter the five character alpha/numeric Transmitter Control Code that is assigned to you by IRS after you have filed an application and it has been approved.

.03 After you have received approval to file on magnetic media, you do not need to reapply each year; however, notify IRS in writing if:

(a) there are hardware or software changes that would affect the characteristics of the magnetic media submission (e.g., changing from diskette to tape filing or vice versa, or reporting using more than one type of magnetic media), a new Transmitter Control Code may be necessary or,

(b) you discontinue filing on magnetic media for a year (your five character alpha/numeric Transmitter Control Code may be reassigned).

If either of these conditions apply to you, you should contact IRS for clarification. In ALL correspondence, refer to your current five character alpha/numeric Transmitter Control Code to assist IRS in locating your files.

.04 IRS will assist new filers with their initial magnetic diskette submission by reviewing "test" files submitted in advance of the filing season. The "test" data should be actual data for the "A" Records, not fictitious information. Approved payers or transmitters should submit "test" files to the IRS National Computer Center. You MUST submit a "test" file in order to participate in the Combined Federal/State Program; however, you are encouraged to submit "test" files if you are a new filer on magnetic media. All "test" files must be submitted between October 1 and December 15 each year. Refer to Part A, Sec. 11 for the address. Do not submit "test" files after December 15. If you are unable to submit your "test" file by this date, you may only send a sample hardcopy printout or diskette dump that shows a sample of each type of record (A, B, C, K, and F) used to the IRS National Computer Center. This sample hardcopy printout must be postmarked by January 15, 1988. Clearly mark the hardcopy printout or diskette dump at "TEST DATA," and include identifying information such as name, address, and telephone number of someone familiar with the "test" print or diskette dump who may be contacted to discuss its acceptability. With all "test" data, include a transmittal Form 4804, 4802 or computer generated substitute marked as "TEST DATA" that identifies your five character alpha/numeric Transmitter Control Code and total record and money amounts. The transmittal Form 4804 and 4802 were updated in tax year 1986. Agencies who produce a computer generated substitute must include the additional information required on these forms. The Form 4804 includes a checkbox 1 to indicate the type of file (e.g., original, correction, replacement, test). The "test" data must be coded according to the current revenue procedure.

.05 If your magnetic media files have been prepared for you in the past by a service agency, and you now have computer equipment compatible with that of IRS and wish to prepare your own files, you must request your own five character alpha/numeric Transmitter Control Code by filing an application, Form 4419, as described above. If you should happen to file on two types of magnetic media (e.g., tape and 5 1/4-inch diskette), you must submit two applications. IRS assigns different Transmitter Control Codes to each type of magnetic media. This ensures that IRS will provide the proper revenue procedure to filers each year.

.06 If you as an individual or organization are an approved filer on magnetic media and you change the name of your organization, please notify the IRS National Computer Center, in writing, so that your file may be updated to reflect the proper name. Refer to Part A, Sec. 11 for the address.

.07 In accordance with section 1.6041-7(b) of the Income Tax Regulations, payments to providers of medical and health care services from separate departments of a health care carrier may be reported as separate returns on magnetic media. In this case, the headquarters office will be considered to be the transmitter, and the individual departments of the company filing reports will be considered to be payers. A single application form covering all the departments that will be filing on magnetic diskette should be submitted. One five character alpha/numeric Transmitter Control Code may be used for all departments.

.08 Any person required to file original or corrected returns on magnetic media may request a waiver from the filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, with the IRS National Computer Center if filing on magnetic media would create an undue hardship. A SEPARATE FORM 8508 MUST BE SUBMITTED FOR EACH PAYER AND FOR EACH TYPE OF RETURN. It is not acceptable to submit a list of payers. You must submit a separate Form 8508 for each payer and each type of return. You must specify the specific type of return, e.g., 1099-DIV. If you only indicate that the waiver request is for 1099, the waiver will be denied. Transmitters may file Form 8508 for persons required to file on magnetic media if all information requested on Form 8508 is provided for each payer and each type of information return and if the payer or transmitter signs the request attesting that all information is true, correct, and complete. Requests for waivers for Forms W-2 and W-2P are due by June 30 for the tax year requested. For all other returns required to be filed on magnetic media, waiver requests must be filed at least 90 days before the returns are due. This waiver, if approved, will only provide exemption from magnetic media filing for one tax year. Filers may not apply for a waiver for more than one tax year at a time. You must reapply each year that a waiver is necessary. Copies of Form 8508 are included in this publication and may be obtained from the IRS National Computer Center and other IRS offices. See Part A, Sec. 11 for the address of the IRS National Computer Center.

.09 Section 1.6045-1(1) of the Income Tax Regulations requires brokers and barter exchanges to use magnetic media in reporting to IRS ALL Form 1099-B data with the exception of real estate transactions. THIS REQUIREMENT APPLIES SEPARATELY TO BOTH ORIGINAL AND CORRECTED RETURNS. Generally NEW brokers and NEW barter exchanges may request an undue hardship exemption by filing a request for waiver with the IRS National Computer Center by the end of the second month following the month in which they became a broker or barter exchange.

.10 All requests for magnetic media related undue hardship exemptions must be submitted to the IRS National Computer Center at least 90 days before the due date of the return except as stated in Part A Sec. 3.09. All magnetic media related undue hardship requests for Forms W-2 and W-2P are to be filed with the IRS National Computer Center, not SSA, and must be filed by June 30 for the tax year requested. Refer to Part A, Sec. 11 for the address.

.11 If you request a waiver from filing on magnetic media and it is approved, do not send a copy of the approved waiver to the service center where you file your paper returns. Keep the waiver for your records. Do not staple, paperclip or use rubberbands on any scannable forms. Paper information returns are read by an optical scanner (OCR) at the service centers.

.12 Waivers are granted on a case-by-case basis and may be approved at the discretion of the IRS National Computer Center.

.13 If you are required to file on magnetic media but fail to do so, and you do not have an approved waiver on record, you may be subject to a failure to file penalty. Refer to Part A, Sec. 4.01.

.14 An approved waiver from filing information returns on magnetic media does not provide exemption from filing; you MUST still file your information returns on acceptable paper forms.

.15 A magnetic media reporting package, which includes all the necessary transmittals, labels, and instructions, will be mailed to the last known address of all approved filers each year.

SEC. 4. FILING OF MAGNETIC MEDIA REPORTS AND RETENTION REQUIREMENTS

.01 If you do not file your returns on time, you may be subject to a $50 per document failure to file penalty. If you file without following the instructions in this revenue procedure, you may also be subject to a $50 per document failure to file penalty. The maximum penalty is $100,000 per calendar year. However, there is no maximum penalty for returns of 1099-INT, 1099-OID, 1099-DIV, 1099-PATR, 5498 or if the failure to file is due to intentional disregard of the filing requirements.

.02 Generally, you are now subject to a $50 penalty for each failure to include the payee's correct TIN on an interest or dividend (1099-DIV, 1099-INT, 1099-OID, 1099-PATR) information return unless the payer can demonstrate that the payer met the due diligence requirements. Refer to Part A, Sec. 9. For the definition of Payer and Payee see Part A, Sec. 13.

.03 Rev. Proc. 84-24, 1984-1 C.B. 465, or other current revenue procedures gives detailed information on preparing transmittal documents (Forms 1096 and 4804) for information returns and is available at IRS offices. Specific guidelines are given on how to report the payer's name, address, and TIN on transmittal documents and information returns. Instructions for multiple transmittals and the submission of transmittals by service bureaus or agents are also covered.

.04 Form 4804, Transmittal of Information Returns Reported on Magnetic Media, must accompany magnetic diskette submissions. If you file for multiple payers and have the authority to sign the affidavit on Form 4804, you should also submit Form 4802, Transmittal for Multiple Magnetic Media Reporting. Be sure to include Form 4804, 4802 or computer generated substitute with your diskette shipment. DO NOT MAIL THE DISKETTES AND THE TRANSMITTAL DOCUMENTS SEPARATELY. IRS encourages the use of a computer generated Form 4804 which includes all necessary information requested on the current form.

Paper information returns must be transmitted to the appropriate service center using Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Do not send information returns filed on paper forms to the IRS National Computer Center.

.05 The affidavit for Form 4804 should be signed by the payer; however, the transmitter, service bureau, paying agent, or disbursing agent (all hereafter referred to as agent), may sign the affidavit on behalf of the payer if the conditions in (a), (b)(i) or (b)(ii), and (c) are met:

(a) The agent has the authority to sign the affidavit under an agency agreement (either oral, written, or implied) that is valid under the state law.

(b)(i) The agent has the responsibility (either oral, written or implied) conferred on it by the payer to request the TINs of payees (or others for whom information is being reported), OR

(ii) If the return of more than one payer is included in a single magnetic media submission, covered by a single Form 4804, each payer has attested by affidavit to the agent that the payer has complied with the law in attempting to secure correct TINs.

(c) The agent signs the affidavit and adds the caption "For: (name of payer)."

.06 Although a duly authorized agent signs the affidavit, the payer is held responsible for the accuracy of the Form 4804, and the payer will be liable for penalties for failure to comply with filing requirements.

.07 DO NOT REPORT THE SAME INFORMATION ON PAPER FORMS THAT YOU REPORT ON MAGNETIC MEDIA. IF YOU REPORT PART OF YOUR RETURNS ON PAPER AND PART ON MAGNETIC MEDIA, BE SURE THAT DUPLICATE RETURNS, WITH THE SAME INFORMATION, ARE NOT INCLUDED ON BOTH. This does not mean that corrected documents are not to be filed. If a return has been prepared and submitted improperly, you must file a corrected return as soon as possible. Refer to Part A, Sec. 8 for requirements and instructions on filing corrected returns.

.08 Reports from different branches or locations for one payer, if submitted on the same file, MUST be consolidated under one Payer/Transmitter "A" Record for each type of information return. For example, all Forms 1099-INT for the same payer on a single file must be sorted together under one Payer/Transmitter "A" Record followed by the appropriate "B" Records and one "C" Record.

.09 Before submitting magnetic media files, include the following:

(a) A signed Form 4804 or computer generated substitute.

(b) A Form 4802 if you transmit for multiple payers and have the authority to sign the affidavit on Form 4804.

(c) The magnetic media with an external identifying label as described in Part B, Sec. 1. Be sure to include the proper sequence on this label.

(d) On the outside of the shipping container, include a Form 4801 or a substitute for the form which reads "DELIVER UNOPENED TO TAPE LIBRARY--MAGNETIC MEDIA REPORTING -- BOX _____ of _____." If there is only one container, mark the outside as Box 1 of 1. For multiple containers, include the sequence (e.g., Box 1 of 33, 2 of 33, etc.).

(e) If you were granted an extension, include a copy of the approval letter with the magnetic media shipment.

.10 IRS will not pay or accept "Collect on Delivery" or "Charged to IRS" shipments of reportable tax information that an individual or organization is legally required to submit.

.11 Files may be returned to you due to coding or format errors. These are to be corrected and returned to IRS within 30 days of your receipt or the payer may be subject to a failure to file penalty. If you are unable to return the file within 30 days, request an extension of time.

.12 Payers are required to retain a copy of the information returns filed with IRS or to have the ability to reconstruct the data for at least three years.

SEC. 5. FILING DATES

.01 The dates prescribed for filing paper returns with IRS also apply to magnetic media filing. Magnetic media reporting to IRS for Forms 1098, 1099, and W-2G must be on a calendar year basis. Form 5498 is used to report amounts contributed during or after the calendar year but not later than April 15.

.02 Information returns filed on magnetic media for Forms 1098, all types of Forms 1099, and W-2G must be submitted to IRS and postmarked by February 28 but not before January 1. The due date for furnishing the required copy or statement to the payee is January 31.

.03 Information returns filed on magnetic media for Form 5498 must be submitted to IRS and postmarked by May 31. Trustees or issuers of IRAs or SEPs must provide participants with a statement of the value of the participant's account by January 31, in any written format. Statements are due to the participants by May 31 for contributions made to IRAs for the prior calendar year. Form 5498 is filed for contributions to be applied to 1987 that are made between January 1, 1987, and April 15, 1988.

SEC. 6. EXTENSIONS OF TIME TO FILE

.01. If a payer or transmitter of returns on magnetic media or paper forms filed with IRS, or on magnetic media filed with SSA, is unable to submit their magnetic media file by the dates prescribed in Sec. 5.02 and 5.03 above, submit a letter requesting an extension of time for a maximum of 60 days as soon as you are aware that an extension will be necessary. In order to be considered, the request MUST be filed before the due date of the return; otherwise, you will be subject to the late filing penalty of $50 per document. The letter should be sent to the attention of the Magnetic Media Reporting Program at the IRS National Computer Center. See Part A, Sec. 11 for the address. The request should include:

(a) The filer's (or transmitter's, if filing for multiple payers) name and address.

(b) The filer's Taxpayer Identification Number (SSN or EIN).

(c) The tax year for which the extension of time is requested: tax year 1987.

(d) The name and telephone number of a person to contact who is familiar with the request.

(e) The specific type of returns and expected volume (e.g., 5000 Forms 1099-INT).

(f) The five character alpha/numeric Transmitter Control Code assigned to the organization or individual requesting the extension (if a number has been assigned).

(g) The reason for the delay and date that you will be able to file.

(h) If you file for multiple payers, the request must include a list of all payers and their TINs (SSN or EIN).

An approved extension for magnetic media filing does not provide additional time for supplying a copy to the payee. If additional time is needed in providing a copy to the payee, contact the District Director of the IRS district in which you reside or in which your business is located.

.02 If an extension of time to file on magnetic media is granted by the IRS National Computer Center, a copy of the letter granting the extension MUST be included with the transmittal Form 4804 or computer generated substitute when the file is submitted.

SEC. 7. PROCESSING OF MAGNETIC MEDIA RETURNS

.01 All data received at the IRS National Computer Center for processing will be given the same protection as individual returns (1040), and will be returned to the originator after processing. Please open all returned files as soon as you receive them. In some cases, files are returned due to errors and they must be corrected and returned to IRS within 30 days of your receipt or you may be subject to a failure to file penalty.

.02 Due to the volume of input received and the cost to return special containers, special shipping containers should not be used for transmitting data to the IRS National Computer Center since IRS cannot guarantee return of such containers.

.03 Files will be returned to you for correction if they are unprocessable due to format or coding errors, or by the request of the filer. Unprocessable files must be corrected and returned to the IRS National Computer Center within 30 days of your receipt or the payer may be subject to a failure to file penalty. The corrected files will be returned to the filer by the IRS National Computer Center after processing. PLEASE BE SURE THAT YOUR FORMAT AND CODING COMPLY WITH THIS REVENUE PROCEDURE. THIS REVENUE PROCEDURE IS TO BE USED FOR THE PREPARATION OF TAX YEAR 1987 INFORMATION RETURNS ONLY. LEGISLATIVE AND FORMS CHANGES AFFECTING INFORMATION RETURNS MAY OCCUR EACH YEAR. THESE PROCEDURES ARE UPDATED TO REFLECT NECESSARY CHANGES. PLEASE READ THIS PUBLICATION CAREFULLY.

SEC. 8. HOW TO FILE CORRECTED RETURNS

.01 The filing requirement thresholds listed in Part A, Sec. 1 apply separately to both original and corrected returns. A hardship waiver is required for corrected returns if the total number of corrections for a particular tax year exceeds the magnetic media threshold. For example, if 100 corrections for Form 1099-A are filed, they may be submitted on paper forms and no waiver is required; however, if 300 corrected Forms 1099-A are to be filed on paper, a waiver is required. Corrections should be aggregated and filed as soon as possible but not later than October 1 of each year. ALL FIELDS MUST BE COMPLETED WITH THE CORRECT INFORMATION, NOT JUST THE DATA FIELDS NEEDING CORRECTION. Submit corrections only for the returns filed in error, not the entire file. If your complete file is in error, contact the IRS National Computer Center immediately. If you file corrected returns on paper forms, submit Copy A to the appropriate service center. There are numerous types of errors. It may require more than one transaction to properly correct the initial error. In prior years, placing a "G" in diskette position 6 of the "B" Record was used as the corrected return indicator. This has been changed to position 7. You must adjust your programs. You are strongly encouraged to read this ENTIRE section before attempting to make ANY correction. If the initial return was filed as an aggregate, you must consider this in filing the corrected return.

.02 Corrected returns submitted to IRS on magnetic media, using a "G" coded Payee "B" Record, may be submitted on the same diskette as those corrections submitted without the "G" code; however, they must be submitted using a separate "A" Record. Corrected returns are to be identified as corrections on the transmittal document, by marking the appropriate checkbox, and on the EXTERNAL affixed label of the file.

.03 The instructions that follow will provide information on how to file corrected returns on magnetic media. The 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G," provide more specific instructions for filing corrections on paper forms and are included in your magnetic media reporting packages each year. The 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G" specify that one transaction is necessary to correct a payee TIN; however, for magnetic media filing, this will require two transactions. See Part A, Sec. 8.10 for instructions on how to correct the payee TIN on magnetic media.

.04 If you are not required to file your corrections on magnetic media and you file them on paper forms, do not submit the paper returns to the IRS National Computer Center. All paper returns, whether original or corrected, must be filed with the appropriate service center. Corrected returns filed on magnetic media must be filed with the IRS National Computer Center. Refer to Part A, Sec. 11 for the address.

.05 Statements to payees should be identified as "CORRECTED" and should be provided to them as soon as possible.

.06 Use the same name and TIN (SSN or EIN) for the filer on the Form 4804 transmittal form and all related "A" Records that follow.

.07 A transmittal Form 4804 or computer generated substitute is used to transmit magnetic media. A Form 4802 is a continuation form for a Form 4804. Please utilize a Form 4802 if you file on magnetic media for multiple payers and are an authorized agent for the payers.

.08 Use the correct tax year's revenue procedures to file information returns with IRS (i.e., do not submit tax year 1987 returns using the 1986 format). You must submit your returns filed on magnetic media using the revenue procedure for the tax year of the returns. Forms and revenue procedures are normally updated each year to include necessary legislative and forms changes.

.09 On magnetic media files, the Payee "B" Record provides space to enter a Payer's Account Number for the Payee. This same account number may be provided on paper forms. In order to properly file corrected returns, this number will help identify the appropriate incorrect return if more than one return was filed for a particular payee. DO NOT ENTER A TIN (SSN OR EIN). 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 MUST APPEAR ON THE INITIAL RETURN AND ON THE CORRECTED RETURN IN ORDER TO IDENTIFY AND PROCESS THE CORRECTION PROPERLY.

.10 REVIEW THE CHART THAT FOLLOWS. The types of errors made will normally fall under one of the three categories listed. Next to each type of error made, you will find a list of instructions to tell you how to properly file the corrected return for that type of error. READ ALL OF THE INSTRUCTIONS LISTED AND FOLLOW THEM FOR THE TYPE OF ERROR MADE ON THE INITIAL RETURN. IN SOME CASES TWO TRANSACTIONS ARE REQUIRED TO PROPERLY FILE CORRECTIONS. IF THE ORIGINAL RETURN WAS FILED AS AN AGGREGATE, YOU MUST CONSIDER THIS IN FILING CORRECTED RETURNS.

       Guidelines for Filing Corrected Returns On Magnetic Media

 

 

        (PLEASE READ SEC. 8.01 THROUGH 8.10 OF THIS PUBLICATION

 

                    BEFORE MAKING ANY CORRECTIONS)

 

 

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

 

 Filed on Magnetic Media            on Magnetic Media

 

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

 

 1. Original return was filed with  TRANSACTION 1: Identifying return

 

    NO Payee TIN (SSN or EIN), OR   submitted with NO TIN or an

 

    the return was filed with an    INCORRECT TIN

 

    INCORRECT Payee TIN. THIS       A. Form 4804 and/or 4802 (or

 

    WILL REQUIRE TWO SEPARATE          computer generated substitute)

 

    TRANSACTIONS TO MAKE THE           1. Prepare a new transmittal

 

    CORRECTION PROPERLY. READ             Form 4804 (and 4802 if you

 

    AND FOLLOW ALL INSTRUCTIONS           file for multiple payers),

 

    FOR BOTH TRANSACTIONS 1 AND 2.        or a computer generated

 

                                          substitute, that includes

 

                                          information related to this

 

                                          new file.

 

                                       2. Mark the Correction box in

 

                                          Block 1 of the current copy

 

                                          of Form 4804. If you submit

 

                                          a computer generated

 

                                          substitute for Form 4804,

 

                                          indicate "MAGNETIC MEDIA

 

                                          CORRECTION" at the top of

 

                                          the listing.

 

                                       3. Provide ALL requested

 

                                          information correctly.

 

                                       4. If you are a Combined

 

                                          Federal/State filer, IRS

 

                                          will not transmit corrected

 

                                          returns to the state. This

 

                                          will be the responsibility

 

                                          of the filer. Do not include

 

                                          "K" Records in your

 

                                          corrected returns.

 

                                    B. 1098, 1099 Series, 5498 and W-

 

                                       2G Returns

 

                                       1. Prepare a new file.

 

                                       2. Use a separate

 

                                          Payer/Transmitter "A" Record

 

                                          for each type of return

 

                                          being reported. The

 

                                          information in the "A"

 

                                          Record will be the same as

 

                                          it was in the original

 

                                          submission.

 

                                       3. The Payee "B" Record must

 

                                          contain exactly the same

 

                                          information as submitted

 

                                          previously, EXCEPT insert a

 

                                          "G" in diskette position 7

 

                                          of the "B" Record AND for

 

                                          ALL payment amounts used,

 

                                          enter "0" (zero).

 

                                       4. Corrected returns submitted

 

                                          to IRS using a "G" coded "B"

 

                                          Record may be submitted on

 

                                          the same diskette as those

 

                                          returns submitted without

 

                                          the "G" code; however,

 

                                          separate "A" Records are

 

                                          required.

 

                                       5. Mark the EXTERNAL label of

 

                                          the diskette "MAGNETIC MEDIA

 

                                          CORRECTION."

 

                                       6. Submit the diskette(s) and

 

                                          the transmittal document(s)

 

                                          to the IRS National Computer

 

                                          Center. (Refer to Part A,

 

                                          Sec. 11 for the address.)

 

                                    TRANSACTION 2: Reporting the

 

                                    correct information.

 

                                    A. Form 4804 and/or 4802 (or

 

                                       computer generated substitute).

 

                                       1. If you submitted records

 

                                          with the corrected

 

                                          information on a separate

 

                                          diskette from those that are

 

                                          "G" coded, prepare a new

 

                                          Transmittal Form 4804 (and

 

                                          4802 if you file for

 

                                          multiple payers), or a

 

                                          computer generated

 

                                          substitute, that includes

 

                                          information related to this

 

                                          new file.

 

                                       2. Mark the Correction box in

 

                                          Block 1 of the current copy

 

                                          of Form 4804. If you submit

 

                                          a computer generated

 

                                          substitute for Form 4804,

 

                                          indicate "MAGNETIC MEDIA

 

                                          CORRECTION" at the top of

 

                                          the listing.

 

                                       3. Provide ALL requested

 

                                          information correctly.

 

 

                                       4. If you are a Combined

 

                                          Federal/State filer, IRS

 

                                          will not transmit corrected

 

                                          returns to the state. This

 

                                          will be the responsibility

 

                                          of the filer. Do not include

 

                                          "K" Records in your

 

                                          corrected returns.

 

                                    B. 1098, 1099 Series, 5498 and W-

 

                                       2G Returns

 

                                       1. Prepare a new file with the

 

                                          correct information in ALL

 

                                          records.

 

                                       2. Use a separate

 

                                          Payer/Transmitter "A" Record

 

                                          for each type of return

 

                                          being reported.

 

                                       3. Do not code the Payee "B"

 

                                          Record as a corrected return

 

                                          for this type of correction.

 

                                       4. Submit the new returns as

 

                                          though they were originals.

 

                                          Provide all of the correct

 

                                          information including the

 

                                          TIN (SSN or EIN).

 

                                       5. Mark the EXTERNAL label of

 

                                          the diskette "MAGNETIC MEDIA

 

                                          CORRECTION."

 

                                       6. Submit the diskette(s) and

 

                                          the transmittal document(s)

 

                                          to the IRS National Computer

 

                                          Center. (Refer to Part A,

 

                                          Sec. 11 for the address.)

 

 

 2. Original return was filed with  A. Form 4804 and 4802 (or computer

 

    an incorrect money amount(s) in    generated substitute)

 

    the Payee "B" Record, OR a         1. Prepare a new transmittal

 

    money amount was reported using       Form 4804 (and 4802 if you

 

    an incorrect Payment Amount           file for multiple payers),

 

    Indicator in the original             or a computer generated

 

    Payer/Transmitter "A" Record.         substitute, that includes

 

    Correct Type of Return indicator      information related to this

 

    was used in the "A" Record.           new file.

 

    (NOTE: If the wrong Type Of        2. Mark the Correction box in

 

    Return indicator was used, see        Block 1 of the current copy

 

    Number 3 of this chart.)              of Form 4804. If you submit

 

                                          a computer generated

 

                                          substitute for Form 4804,

 

                                          indicate "MAGNETIC MEDIA

 

                                          CORRECTION" at the top of

 

                                          the listing.

 

                                       3. Provide ALL requested

 

                                          information correctly.

 

                                       4. If you are a Combined

 

                                          Federal/State filer, IRS

 

                                          will not transmit corrected

 

                                          returns to the state. This

 

                                          will be the responsibility

 

                                          of the filer. Do not include

 

                                          "K" Records in your

 

                                          corrected returns.

 

                                    B. 1098, 1099 Series, 5498 and W-

 

                                       2G Returns

 

                                       1. Prepare a new file.

 

                                       2. Use a separate

 

                                          Payer/Transmitter "A" Record

 

                                          for each type of return

 

                                          being reported. The

 

                                          information in the "A"

 

                                          Record will be the same as

 

                                          it was in the original

 

                                          submission, EXCEPT, the

 

                                          correct Amount Indicators

 

                                          will be used.

 

                                       3. The Payee "B" Record must

 

                                          contain exactly the same

 

                                          information as submitted

 

                                          previously, EXCEPT, insert a

 

                                          "G" code in diskette

 

                                          position 7 of the "B" Record

 

                                          AND report the correct

 

                                          payment amounts as they

 

                                          should have been reported on

 

                                          the initial return.

 

                                       4. Corrected returns submitted

 

                                          to IRS using a "G" coded "B"

 

                                          Record may be submitted on

 

                                          the same diskette as those

 

                                          returns submitted without

 

                                          the "G" code; however,

 

                                          separate "A" Records are

 

                                          required.

 

                                       5. Mark the EXTERNAL label of

 

                                          the diskette "MAGNETIC MEDIA

 

                                          CORRECTION."

 

                                       6. Submit the diskette(s) and

 

                                          the transmittal document(s)

 

                                          to the IRS National Computer

 

                                          Center. (Refer to Part A,

 

                                          Sec. 11 for the address.)

 

 

 3. Original return was filed       TRANSACTION 1: Identify return

 

    using the WRONG Type of Return  submitted with an incorrect Type

 

    indicator in the Payer/         Of Return indicator

 

    Transmitter "A" Record. For     A. Form 4804 and 4802 (or computer

 

    example, a return was coded        generated substitute)

 

    using the Type of Return           1. Prepare a new transmittal

 

    indicator for 1099-DIV and it         Form 4804 (and 4802 if you

 

    should have been coded for            file for multiple payers),

 

    1099-INT. THIS WILL REQUIRE           or a computer generated

 

    TWO SEPARATE TRANSACTIONS TO          substitute, that includes

 

    MAKE THE CORRECTION PROPERLY.         information related to this

 

    READ AND FOLLOW ALL INSTRUCTIONS      new file.

 

    FOR BOTH TRANSACTIONS 1 AND 2.     2. Mark the Correction box in

 

                                          Block 1 of the current copy

 

                                          of Form 4804. If you submit

 

                                          a computer generated

 

                                          substitute for Form 4804,

 

                                          indicate "MAGNETIC MEDIA

 

                                          CORRECTION" at the top of

 

                                          the listing.

 

                                       3. Provide ALL requested

 

                                          information correctly.

 

                                       4. If you are a Combined

 

                                          Federal/State filer, IRS

 

                                          will not transmit corrected

 

                                          returns to the state. This

 

                                          will be the responsibility

 

                                          of the filer. Do not include

 

                                          "K" Records in your

 

                                          corrected returns.

 

                                    B. 1098, 1099 Series, 5498 and W-

 

                                       2G Returns

 

                                       1. Use a separate

 

                                          Payer/Transmitter "A" Record

 

                                          for each type of return

 

                                          being reported. The

 

                                          information in the "A"

 

                                          Record will be exactly the

 

                                          same as it was in the

 

                                          original submission using

 

                                          the same incorrect type of

 

                                          return indicator.

 

                                       2. The corrected Payee "B"

 

                                          Record must contain the same

 

                                          information as submitted

 

                                          previously, EXCEPT insert a

 

                                          "G" in diskette position 7

 

                                          of the "B" Record and for

 

                                          ALL payment amounts used,

 

                                          enter "0" (zero).

 

                                       3. Corrected returns submitted

 

                                          to IRS using a "G" coded "B"

 

                                          Record may be submitted on

 

                                          the same diskette as those

 

                                          returns submitted without

 

                                          the "G" code; however,

 

                                          separate "A" Records are

 

                                          required.

 

                                       4. Mark the EXTERNAL label of

 

                                          the diskette "MAGNETIC MEDIA

 

                                          CORRECTION."

 

                                       5. Submit the diskette(s) and

 

 

                                          the transmittal document(s)

 

                                          to the IRS National Computer

 

                                          Center. (Refer to Part A,

 

                                          Sec. 11 for the address.)

 

                                    TRANSACTION 2: Report correct

 

                                    information

 

                                    A. Form 4804 and 4802 (or computer

 

                                       generated substitute)

 

                                       1. If you submit records with

 

                                          the corrected information on

 

                                          a separate diskette from

 

                                          those that are "G" coded,

 

                                          prepare a new Transmittal

 

                                          Form 4804 (and 4802 if you

 

                                          file for multiple payers),

 

                                          or a computer generated

 

                                          substitute, that includes

 

                                          information related to this

 

                                          new file.

 

                                       2. Mark the Correction box in

 

                                          Block 1 of the current copy

 

                                          of Form 4804. If you submit

 

                                          a computer generated

 

                                          substitute for Form 4804,

 

                                          indicate "MAGNETIC MEDIA

 

                                          CORRECTION" at the top of

 

                                          the listing.

 

                                       3. Provide ALL requested

 

                                          information correctly.

 

                                       4. If you are a Combined

 

                                          Federal/State filer, IRS

 

                                          will not transmit corrected

 

                                          returns to the state. This

 

                                          will be the responsibility

 

                                          of the filer. Do not include

 

                                          "K" Records in your

 

                                          corrected returns.

 

                                    B. 1098, 1099 Series, 5498 and W-

 

                                       2G Returns

 

                                       1. Prepare a new file with the

 

                                          correct information in ALL

 

                                          records.

 

                                       2. Use a separate

 

                                          Payer/Transmitter "A" Record

 

                                          for each type of return

 

                                          being reported and use the

 

                                          correct Type Of Return

 

                                          indicator.

 

                                       3. Do not code the Payee "B"

 

                                          Record as a corrected return

 

                                          for this type of correction.

 

                                       4. Provide all of the correct

 

                                          information.

 

                                       5. Mark the EXTERNAL label of

 

                                          the diskette "MAGNETIC MEDIA

 

                                          CORRECTION."

 

                                       6. Submit the diskette(s) and

 

                                          the transmittal document(s)

 

                                          to the IRS National Computer

 

                                          Center. (Refer to Part A,

 

                                          Sec. 11 for the address.)

 

 

SEC. 9. TAXPAYER IDENTIFICATION NUMBERS

.01 Under section 6109 of the Internal Revenue Code, recipients of all reportable payments on information returns are required to furnish taxpayer identification numbers (TINs) to the payer. The number must be furnished to the payer whether or not the payee is required to file a tax return or is covered by social security. Refer to Part A, Sec. 13 for a definition of taxpayer identification number (TIN).

.02 The recipient's TIN is used to associate and verify amounts reported to IRS with corresponding amounts on tax returns. Therefore, it is particularly important that correct social security and employer identification numbers for payees be provided on magnetic media or paper forms submitted to IRS. DO NOT ENTER HYPHENS, ALPHA CHARACTERS, ALL 9s OR ALL ZEROS.

.03 Under section 6676 of the Internal Revenue Code, a $50 penalty applies for each failure to furnish a TIN to another person who is required to file an information return, and for each failure to include a TIN on an information return. The penalty applies unless the failure to comply is due to reasonable cause and not willful neglect.

.04 With respect to all payers of interest, dividends, and royalty payments, section 6676 of the Internal Revenue Code provides that the payer must self-assess a $50 penalty for each failure to include a payee's TIN or each inclusion of an incorrect TIN on an information return, unless the payer can demonstrate that the payer met the due diligence requirements in attempting to acquire correct TINs for payees. Use Form 8210, Self-Assessed Penalties Return. For mortgages in existence before 1985, you will not be subject to the penalty for failure to provide the TIN of the payer of record on Form 1098 if you followed the rules for requesting TINs contained in Temporary Regulations section 1.6050H-1T, and you properly and promptly processed the responses.

A penalty of $5 per failure applies to each failure by a payer to include his or her own TIN in any return, statement, or document and for each failure to include correct information on a return or statement.

.05 For certain reportable payments, if the payee fails to provide a TIN to the payer in the manner required, then backup withholding must be instituted for that payee. If the payee has applied for a TIN, the payee may certify to this on Form W-9 by noting "Applied For" in the TIN block and by signing the form. This form then becomes an "awaiting-TIN certificate." If the TIN is not received and certified, if required, within 60 days, begin withholding and continue until you receive a TIN in the manner required. If IRS notifies the payer that the payee's TIN is incorrect, the payee has 30 days to provide a TIN to the payer in the manner required or backup withholding must be instituted.

.06 The TIN to be furnished to IRS depends primarily upon the manner in which the account is maintained or set up on the payer's record. The payer and payee names and taxpayer identification numbers should be consistent with the names and numbers used on other tax returns. The TIN must be that of the owner of the account. If the account is recorded in more than one name, furnish the TIN and name 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 Payee "B" Record. For individuals, including sole proprietors, the payee TIN is the payee's social security number. For other entities, the payee TIN is the payee's employer identification number.

.07 Sole proprietors who are payers should show their employer identification number in the Payer/Transmitter "A" Record. However, sole proprietors who are not otherwise required to have an employer identification number should use their social security number.

.08 Sole proprietors' social security numbers must be used in the Payee "B" Record.

.09 The charts below will help you determine the number to be furnished to IRS for recipients of reportable payments (payees).

            CHART 1. Guidelines for Social Security Numbers

 

 

                         In the Taxpayer

 

                         Identification Number    In the First Payee

 

                         field of 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. An individual's      The individual.          The individual.

 

    account.

 

 2. A joint account      The actual owner of the  The individual whose

 

    (Two or more         account. (If more than   SSN is entered.

 

    individuals, husband one owner, the first

 

    and wife).           individual on the

 

                         account.)

 

 3. Account in the name  The ward, minor, or      The individual whose

 

    of a guardian or     incompetent person.      SSN is entered.

 

    committee for a

 

    designated ward,

 

    minor, or

 

    incompetent person.

 

 4. Custodian account of The minor.               The minor.

 

    a minor (Uniform

 

    Gift to Minors Act).

 

 5. The usual revocable  The grantor-trustee.     The grantor-trustee.

 

    savings trust

 

    account (grantor is

 

    also trustee).

 

 6. A so-called trust    The actual owner.        The actual owner.

 

    account that is not

 

    a legal or valid

 

    trust under state

 

    law.

 

 7. A sole               The owner.               The owner.

 

    proprietorship.

 

 

        CHART 2. Guidelines for Employer Identification Numbers

 

 

                         In the Taxpayer

 

                         Identification Number    In the First Payee

 

                         field of the Payee "B"   Name Line of the

 

                         Record, enter the        Payee "B" Record,

 

 For this account type-- EIN of--                 enter the name of--

 

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

 

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

 

    estate, or pension                            estate, or pension

 

    trust.                                        trust.

 

 2. A corporate account. The corporation.         The corporation.

 

 3. An association,      The organization.        The organization.

 

    club, religious,

 

    charitable,

 

    educational or other

 

    tax-exempt

 

    organization.

 

 4. A 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/middleman.       nominee/middleman.

 

    nominee/middleman.

 

 6. Account with the     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

 

    agriculture program

 

    payments.

 

 

      1 Do not furnish the identification number of the personal

 

 representative or trustee unless the name of the representative or

 

 trustee is used in the account title.

 

 

SEC. 10. EFFECT ON PAPER RETURNS

.01 Magnetic diskette reporting of the information returns listed in Part A, Sec. 1 applies only to the original (Copy A).

.02 For payments of dividends or interest (reported on Forms 1099-DIV, 1099-PATR, 1099-INT or 1099-OID) the payer is required to furnish an official Form 1099 to a payee in person or in a "statement mailing" by first-class mail. For payment of royalties, a "statement mailing" is also required. These forms may not be combined or mailed with other information furnished to the recipient except Forms W-2, W-2P, W-8, W-9, other Forms 1098, 1099, 5498, a check, a letter explaining why no check is enclosed, a letter limited to an explanation of the tax consequences of the information shown on the payee statement, and a statement of the person's account. The outside of the envelope and each check, letter, or account statement must contain the legend, "Important Tax Return Document Enclosed." No additional enclosures, such as advertising, promotional material, or a quarterly or annual report are permitted; however, if you follow the more stringent "separate mailing" requirements of prior law, the legend need not appear on the envelope. The payer may use substitute Forms 1099 if they utilize the proper language, are substantially similar to the official forms and if the payer complies with all revenue procedures relating to substitute Forms 1099 in effect at the time (see Publication 1179). The substitute payee statement must contain instructions substantially similar to those on the back of Copy B of the official form. The following messages must appear on the payee's statements:

(a) Forms 5498 and 1099-R--"This information is being furnished to the Internal Revenue Service."

(b) Forms 1099-G and W-2G--"This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and IRS determines that it has not been reported."

(c) Forms 1099-B and 1099-MISC--Same as item (b) above, except change "may" to "will" in the second sentence.

(d) Form 1099-A--"This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction will be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported."

(e) Form 1098--"The amount in Box 1 is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction will be imposed on you if IRS determines that an underpayment of tax results because you failed to properly show this amount on your return. The amount shown may not be fully deductible by you on your Federal income tax return. Limitations based on the cost and value of the secured property may apply. In addition, you may only deduct an amount of mortgage interest to the extent it was actually paid by you and not reimbursed by another person, and to the extent the interest is attributable to a loan for which you are liable for repayment."

.03 Statements to recipients for Forms 1098, 1099-A, 1099-B, 1099-G, 1099-MISC (except for substitute payments in lieu of dividends and tax-exempt interest), 1099-R, 5498, or W-2G need not be a copy of the paper form filed with IRS. It is important that income items be properly classified for Federal tax purposes on the statement the payer gives to recipients. The space provisions on official paper forms do not agree with those used in magnetic media. The amount of space on paper forms is less than that allowed on magnetic media. Filers may wish to seek a substitute form for statements to payees that accommodates the space provisions used in magnetic media. Payers are permitted considerable flexibility in designing statements to payees. The payer may combine the information return data with other reports or statements as long as all required information is present and worded properly and the payee's copy is conducive to proper reporting of income on tax returns. (This does not apply to Forms 1099-INT, 1099-OID, 1099-DIV and 1099-PATR. See .02 above for the requirements for these four forms.)

SEC. 11. HOW TO CONTACT THE IRS NATIONAL COMPUTER CENTER

.01 Magnetic media processing for all service centers is centralized at the IRS National Computer Center. Please direct all requests for IRS magnetic media related publications, information, undue hardship waivers, extensions of time or forms to the following addresses (if Postal Service or land carrier):

         Magnetic Media Reporting

 

         Internal Revenue Service

 

         Post Office Box 1359

 

         Martinsburg, WV 25401-1359

 

         or

 

         Magnetic Media Reporting

 

         Internal Revenue Service

 

         Route 9 & Needy Road

 

         Martinsburg, WV 25401

 

 

Hours of operation at this address will be 8:30 A.M. until 6:30 P.M. Eastern Time Zone. The telephone number is (304) 263-8700.

Requests for paper returns, publications or forms not related to magnetic media processing should be requested by calling the toll-free number in your area.

.02 The National Computer Center will process returns filed on magnetic media only. All information returns, including corrections, that are filed on paper forms should be submitted to the appropriate service center, not the IRS National Computer Center. Organizations who file their information returns on magnetic media but who submit their corrected returns on paper forms refer to the 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G" for the service center addresses.

SEC. 12. COMBINED FEDERAL/STATE FILING

.01 The Combined Federal/State Program was established to simplify information returns filing for the taxpayer. IRS will accept, upon prior approval, magnetic diskette files containing state reporting information only for those states listed in Table 1 in this section. FORMS 1098, 1099-A, 1099-B, and W-2G CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

.02 To request approval to participate in the Combined Federal/State Program, a "test" file, coded for this program, must be submitted by the transmitter to the IRS National Computer Center (refer to Part A, Sec. 11 for the address) between October 1 and December 15 using the revenue procedure that will be used for the actual data files. Blanket approval will not be given to software packages. ATTACH A LETTER TO THE FORM 4804 SUBMITTED WITH THE "TEST" FILE WHICH INDICATES THAT YOU WISH TO PARTICIPATE IN THIS PROGRAM. The "test" file is only required for the first year. Once you are approved, you do not need to resubmit "tests" each year, except when notified by IRS. See Part A, Sec. 3.04 for general guidelines on submission of "test" files. Each record, both in the "test" file and actual data file, must conform exactly to the revenue procedure for the tax year of the actual data. Combined Federal/State records must be coded using each state's dollar criteria from Table 2 of this section for each type of return.

If the "test" file is determined to be acceptable, IRS will return it to the filer with Form 6847, Consent For Internal Revenue Service to Release Tax Information. The payer must complete Form 6847. The five character alpha/numeric Transmitter Control Code must be included on the form. The form should then be returned to IRS before IRS will release tax information to any of the participating states.

Form 6847 must be signed by one of the individuals listed at the bottom of the form and returned to the address listed in Part A, Sec. 11. If the form is signed by an attorney-in-fact, the written consent from the taxpayer to the attorney-in-fact must be included with the Form 6847. This consent by language and/or scope must clearly indicate that the attorney-in-fact is empowered to authorize release of the information document returns to the state(s). A separate Form 6847 is required for each payer. A transmitter may not combine payers on one Form 6847 even though acting as attorney-in-fact for several payers. Form 6847 may be photocopied if you receive an insufficient number of the form. If you have filed on this program in the past and have not met these requirements, you must resubmit the Form 6847 with the proper signatures as specified. If you file for multiple payers, code the records to go to the state(s) only for those payers that participate and have properly submitted Form 6847. Do not submit actual data records coded for the Combined Federal/State Program without prior approval from IRS.

.03 States that participate in this program and the valid state code assigned to each are listed in Table 1 of this section. If the state that you wish information released to does not participate in the program, do not code your records for that state. If the state participates, if you have received prior approval, and if all other conditions are met, IRS will forward the tax information to the participating state at no charge to the filer. You do not need to reapply for this program each year.

.04 IF CORRECTIONS MUST BE MADE, IRS WILL NOT TRANSMIT CORRECTED RETURNS TO THE STATES; THIS WILL BE THE RESPONSIBILITY OF THE FILER.

.05 IRS will make no attempt to process files with any deviations. Approval to participate in the Combined Federal/State Program will be revoked if any files are submitted that do not totally conform.

.06 IRS is acting as a forwarding agent ONLY. Some participating states require separate notification that you are filing in this manner. It is your responsibility to contact the appropriate states for further information.

.07 The appropriate state code should be entered for those documents which meet that state's filing requirements. It is the filer's responsibility to determine the state code to be used and to obtain the filing requirements from the appropriate state(s).

.08 If you meet all of the requirements for this program, you must provide the state totals from the "K" Record on a separate Form 4804, Transmittal of Information Returns on Magnetic Media (or Form 4802, Transmittal For Multiple Magnetic Media Reporting) or computer generated substitute for each state, or you must include a listing which identifies each state and the "K" Record totals for each.

.09 If you have met ALL of the above conditions:

(a) You must submit all records which indicate the appropriate coding related to this program.

(b) The "C" Record must be followed by a "K" Record for each state. The "K" Record indicates the number of payees being reported to each particular state.

(c) Payment amount totals and the valid participating state code must be included in the state totals "K" Record. Refer to Part B, Sec. 6 or for a description of the "K" Record.

(d) The "K" Record is followed by an end of transmission "F" Record (if this is the last record of the entire file).

.10 Only those states listed in Table 1 will receive information from IRS. It is the filer's responsibility to file information returns with states that do not participate in this program.

             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

 

 New York                                                         36

 

 North Carolina                                                   37

 

 North Dakota                                                     38

 

 Oregon                                                           41

 

 South Carolina                                                   45

 

 Tennessee                                                        47

 

 Wisconsin                                                        55

 

 

.11 To simplify filing, several of the participating states have provided lists of their information return reporting requirements (see Table 2). This cumulative list is for information purposes only and represents dollar criteria. For complete information on state filing requirements, contact the appropriate state tax agencies.

                       TABLE 2. DOLLAR CRITERIA

 

 

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

 

 STATE       1099-R     DIV    INT    MISC    PATR      G    OID 5498

 

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

 

 Alabama       1500    1500   1500    1500    1500     NR   1500   NR

 

 Arizona /a/    300     300    300     300     300    300    300   NR

 

 Arkansas      2500     100    100    2500    2500   2500   2500  /g/

 

 District of

 

  Columbia /b/  600     600    600     600     600    600    600   NR

 

 Hawaii         600      10     10 /c/ 600      10    /h/     10  /g/

 

 Idaho          600      10     10     600      10     10     10  /g/

 

 Iowa          1000     100   1000    1000    1000   1000   1000   NR

 

 Minnesota      600      10     10     600      10     10     10  /h/

 

 Missouri        NR      NR     NR    1200 /d/  NR     NR     NR   NR

 

 Montana        600      10     10     600      10     10     10  /g/

 

 New Jersey    1000    1000   1000    1000    1000   1000   1000   NR

 

 New York       600      NR    600     600 /c/ 600    600     NR   NR

 

 North

 

  Carolina      100     100    100     600     100    100    100  /g/

 

 Oregon         600 /f/  10     10     600      10     10     10   NR

 

 Tennessee       NR      25     25      NR      NR     NR     NR   NR

 

 Wisconsin      600     600    600     100     600     NR     NR   NR

 

 

 NR-No filing requirement.

 

 

 Footnotes:

 

 

 /a/ These requirements apply to individuals and business entities.

 

 

 /b/ Amounts are for aggregates of several types of income from the

 

 same payroll.

 

 

 /c/ State regulation changing filing requirement from $600 to $10 is

 

 pending.

 

 

 /d/ The state would prefer those returns filed with respect to

 

 non-Missouri residents to be sent directly to the state agency.

 

 

 /e/ Aggregate of several types of income.

 

 

 /f/ Return required for state of Oregon residents only.

 

 

 /g/ Same as Federal requirement for this type of return.

 

 

 /h/ All forms are to be reported.

 

 

 /*/ NOTE: Filing requirements for any state in Table 1 not shown on

 

 the above chart are the same as the Federal requirement.

 

 

SEC. 13. DEFINITIONS OF TERMS

 Element                 Description

 

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

 

 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.

 

 Coding Range            Indicates the allowable codes for a

 

                         particular type of statement.

 

 EIN                     Employer Identification Number that has been

 

                         assigned by IRS to the reporting entity.

 

 Excess Golden           Parachute payments (also called "golden

 

 Parachute Payment       parachutes") are certain payments in the

 

                         nature of compensation that corporations make

 

                         to key individuals, often in excess of their

 

                         usual compensation, in the event that

 

                         ownership or control of the corporation

 

                         changes.

 

 File                    For purposes of this procedure, a file

 

                         consists of all magnetic diskette records

 

                         submitted by a Payer or Transmitter.

 

 PS58 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. 4 Payee "B" Record, Category of Total

 

                         Distribution, Code 9.

 

 Payee                   Person(s) or organization(s) receiving

 

                         payments from the Payer, or from whom an

 

                         information return must be filed. The payee

 

                         includes a borrower (Form 1099-A),

 

                         participant (Form 5498) and a winner Form (W-

 

                         2G). For Form 1098, the payee is the

 

                         individual paying the interest.

 

 Payer                   Includes the person making payments, a

 

                         recipient of mortgage interest payments, a

 

                         broker, including a real estate broker, a

 

                         barter exchange, a trustee or issuer of an

 

                         IRA or SEP, or a lender who acquires an

 

                         interest in secured property or who has

 

                         reason to know that the property has been

 

                         abandoned. The Payer will be held responsible

 

                         for the completeness, accuracy and timely

 

                         submission of magnetic diskette files.

 

 Special Character       Any character that is not a numeral, a letter

 

                         or a blank.

 

 SSA                     Social Security Administration.

 

 SSN                     Social Security Number.

 

 Taxpayer                May be either an EIN or SSN.

 

 Identification

 

 Number (TIN)

 

 Transfer Agent          The transfer agent or paying agent is the

 

 (Paying Agent)          entity who has been contracted or authorized

 

                         by the payer to perform the services of

 

                         paying and reporting backup withholding (Form

 

                         941). The payer must submit to IRS a Form

 

                         2678, Employer Appointment of Agent under

 

                         Section 3504, which notifies IRS of the

 

                         transfer agent relationship.

 

 Transmitter             Person or organization preparing magnetic

 

                         diskette file(s). May be Payer or agent of

 

                         Payer.

 

 Transmitter Control     A five character alpha/numeric number

 

 Code (TCC)              assigned by IRS to the transmitter prior to

 

                         actual filing on magnetic media. This number

 

                         is inserted in the "A" Record of your files

 

                         and must be present before the file can be

 

                         processed. An application Form 4419 must be

 

                         filed with IRS to receive this number. See

 

                         Part A, Sec. 3. (Abbreviation for this term

 

                         is TCC.)

 

 

SEC. 14. STATE AND COUNTRY ABBREVIATIONS

.01 You MUST use the following state abbreviations when developing the state code portion of address fields. (This table provides state abbreviations only and does not represent those states participating in the Combined Federal/State Program. For a list of states that participate in the Combined Federal/State Program, refer to Part A, Sec. 12.10.)

 State                                                           Code

 

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

 

 Alabama                                                           AL

 

 Alaska                                                            AK

 

 Arizona                                                           AZ

 

 Arkansas                                                          AR

 

 California                                                        CA

 

 Colorado                                                          CO

 

 Connecticut                                                       CT

 

 Delaware                                                          DE

 

 District of Columbia                                              DC

 

 Florida                                                           FL

 

 Georgia                                                           GA

 

 Hawaii                                                            HI

 

 Idaho                                                             ID

 

 Illinois                                                          IL

 

 Indiana                                                           IN

 

 Iowa                                                              IA

 

 Kansas                                                            KS

 

 Kentucky                                                          KY

 

 Louisiana                                                         LA

 

 Maine                                                             ME

 

 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

 

 Ohio                                                              OH

 

 Oklahoma                                                          OK

 

 Oregon                                                            OR

 

 Pennsylvania                                                      PA

 

 Rhode Island                                                      RI

 

 South Carolina                                                    SC

 

 South Dakota                                                      SD

 

 Tennessee                                                         TN

 

 Texas                                                             TX

 

 Utah                                                              UT

 

 Vermont                                                           VT

 

 Virginia                                                          VA

 

 Washington                                                        WA

 

 West Virginia                                                     WV

 

 Wisconsin                                                         WI

 

 Wyoming                                                           WY

 

 

NOTE: A "1" in the Foreign Country Indicator field of the Payee "B" Record will identify the state code that follows as a foreign country code rather than a state code. For foreign addresses, you are not required to use the foreign country codes or Canadian Province codes provided. You may enter foreign addresses using a 40 position free format rather than the 29-2-9 format for the Payee City, Payee State and Payee ZIP Code; however, this is only allowable if a "1" appears in the Foreign Country Indicator Field. This 40 position free format may only be used for foreign addresses. Addresses in the United States must use the state codes provided and must be in the 29-2-9 format.

.02 The following list represents Canadian Provinces and the corresponding code to be associated with each. If you know the Province Code, please use it rather than the code for Canada. The Province Code will be entered in the State Code portion of the Payee "B" Record.

 Province                                                        Code

 

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

 

 Alberta                                                           AB

 

 Manitoba                                                          MB

 

 Newfoundland                                                      NF

 

 Ontario                                                           ON

 

 Quebec                                                            PQ

 

 Yukon Territories                                                 YK

 

 British Columbia                                                  BC

 

 Nova Scotia                                                       NS

 

 Prince Edward Island                                              PE

 

 Labrador                                                          LB

 

 New Brunswick                                                     NB

 

 Northwest Territories                                             NT

 

 Saskatchewan                                                      SK

 

 

.03 The following list represents foreign countries and the corresponding code to be associated with each. This code will be entered in the State Code portion of the Payee "B" Record. If a country code is not listed in the following table, enter "OC". (This code may only be used if the country code is not listed.) You may notice that some country and state codes are the same. A "1" in the Foreign Country Indicator field will identify the state code that follows as a foreign address rather than an address in the United States. You are not required to use these codes. You may choose to spell out the name of the foreign country or use abbreviations other than those listed. This is only allowable if you enter a "1" in the Foreign Country Indicator field. The Foreign Country Codes are intended for IRS information only and are not acceptable by the U.S. Postal Service as a mailing address. For foreign mailing address information refer to the U.S. Postal Service International Mail Manual Sec. 122.1.

 Foreign

 

 Country                                                         Code

 

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

 

 Afghanistan                                                       AF

 

 Albania                                                           AL

 

 Cameroon                                                          CM

 

 Canada                                                            CA

 

 Falkland Islands (Also called Islas Malvinas)                     FA

 

 Algeria                                                           AG

 

 American Samoa                                                    AQ

 

 Andorra                                                           AN

 

 Angola                                                            AO

 

 Antarctica                                                        AY

 

 Antigua & Barbuda                                                 AC

 

 Argentina                                                         AR

 

 Australia                                                         AS

 

 Austria                                                           AU

 

 Azores                                                            PO

 

 Bahamas, The                                                      BF

 

 Bahrain                                                           BA

 

 Bangladesh                                                        BG

 

 Barbados                                                          BB

 

 Belgium                                                           BE

 

 Belize (Formerly British Honduras)                                BH

 

 Benin (Formerly Dahomey)                                          DM

 

 Bermuda                                                           BD

 

 Bhutan                                                            BT

 

 Bolivia                                                           BL

 

 Botswana                                                          BC

 

 Brazil                                                            BR

 

 British Indian Ocean Territory                                    IO

 

 British Virgin Islands                                            VI

 

 Brunei                                                            BX

 

 Bulgaria                                                          BU

 

 Burma                                                             BM

 

 Burundi                                                           BY

 

 Cambodia                                                          CB

 

 Hungary                                                           HU

 

 Iceland                                                           IC

 

 India                                                             IN

 

 Indonesia                                                         ID

 

 Iran (Also called Persia)                                         IR

 

 Iraq                                                              IZ

 

 Ireland                                                           EI

 

 Isle of Man                                                       OC

 

 Israel                                                            IS

 

 Italy                                                             IT

 

 Ivory Coast                                                       IV

 

 Jamaica                                                           JM

 

 Japan                                                             JA

 

 Johnston Atoll                                                    JQ

 

 Jordan                                                            JO

 

 Kenya                                                             KE

 

 Korea, Democratic Peoples Republic of (North Korea)               KN

 

 Korea, Republic of (South Korea)                                  KS

 

 Kuwait                                                            KU

 

 Laos                                                              LA

 

 Lebanon                                                           LE

 

 Lesotho                                                           LT

 

 Liberia                                                           LI

 

 Canton & Enderbury Islands E                                      EQ

 

 Canary Islands                                                    SP

 

 Cape Verde, Republic of                                           CV

 

 Cayman Islands                                                    CJ

 

 Central Africa Republic                                           CT

 

 Chad                                                              CD

 

 Channel Islands                                                   OC

 

 Chile                                                             CI

 

 China (Peking)                                                    CH

 

 China (Taiwan)                                                    TW

 

 Christmas Island                                                  KT

 

 Cocos (Keeling) Islands                                           CK

 

 Colombia                                                          CO

 

 Comoros                                                           CN

 

 Congo                                                             CF

 

 Cook Islands                                                      CW

 

 Costa Rica                                                        CS

 

 Cuba                                                              CU

 

 Cyprus                                                            CY

 

 Czechoslovakia                                                    CZ

 

 Denmark                                                           DA

 

 Djibouti (Formerly Afars & Issas)                                 DJ

 

 Dominica                                                          DO

 

 Dominican Republic                                                DR

 

 Ecuador                                                           EC

 

 Egypt                                                             EG

 

 El Salvador                                                       ES

 

 England                                                           UK

 

 Equatorial Guinea                                                 EK

 

 Ethiopia                                                          ET

 

 Netherlands (Also called Holland)                                 NL

 

 Netherlands Antilles                                              NA

 

 New Caledonia                                                     NC

 

 New Hebrides (Also called Vanuatu)                                NH

 

 New Zealand                                                       NZ

 

 Nicaragua                                                         NU

 

 Niger                                                             NG

 

 Nigeria                                                           NI

 

 Niue                                                              NE

 

 

 Norfolk Island                                                    NF

 

 Northern Ireland                                                  UK

 

 Norway                                                            NO

 

 Oman                                                              MU

 

 Pakistan                                                          PK

 

 Panama                                                            PM

 

 Papua-New Guinea                                                  PP

 

 Paracel Islands                                                   PF

 

 Paraguay                                                          PA

 

 Peru                                                              PE

 

 Philippines                                                       RP

 

 Pitcairn                                                          PC

 

 Poland                                                            PL

 

 Portugal                                                          PO

 

 Faroe Islands                                                     FO

 

 Fiji                                                              FJ

 

 Finland                                                           FI

 

 France                                                            FR

 

 French Guiana                                                     FG

 

 French Polynesia                                                  FP

 

 French Southern & Antarctic Lands                                 FS

 

 Gabon                                                             GB

 

 Gambia, The                                                       GA

 

 German Democratic Republic (East Germany)                         GC

 

 Germany, Federal Republic of (West Germany)                       GE

 

 Ghana                                                             GH

 

 Gibraltar                                                         GI

 

 Gilbert Islands                                                   GS

 

 Greece                                                            GR

 

 Greenland                                                         GL

 

 Grenada                                                           GJ

 

 Guadeloupe                                                        GP

 

 Guam                                                              GQ

 

 Guatemala                                                         GT

 

 Guinea                                                            GV

 

 Guinea-Bissau                                                     PU

 

 Guyana                                                            GY

 

 Haiti                                                             HA

 

 Heard Island & McDonald Island                                    HM

 

 Honduras                                                          HO

 

 Hong Kong                                                         HK

 

 Southern Rhodesia                                                 RH

 

 South-West Africa (Also called Namibia)                           WA

 

 Spain                                                             SP

 

 Spratly Islands                                                   PG

 

 Sri Lanka (Also called Ceylon)                                    CE

 

 Sudan                                                             SU

 

 Suriname                                                          NS

 

 Svalbard & Jan Mayen                                              JS

 

 Swaziland                                                         WZ

 

 Sweden                                                            SW

 

 Switzerland                                                       SZ

 

 Syria                                                             SY

 

 Tanzania                                                          TZ

 

 Thailand                                                          TH

 

 Togo                                                              TO

 

 Tokelau Islands                                                   TL

 

 Tonga                                                             TN

 

 Trinidad & Tobago                                                 TD

 

 Trust Territory of the Pacific Islands                            TQ

 

 Tunisia                                                           TS

 

 Turkey                                                            TU

 

 Turks & Caicos Islands                                            TK

 

 Libya                                                             LY

 

 Liechtenstein                                                     LS

 

 Luxembourg                                                        LU

 

 

 Macao                                                             MC

 

 Madagascar                                                        MA

 

 Malawi                                                            MI

 

 Malaysia                                                          MY

 

 Maldives                                                          MV

 

 Mali                                                              ML

 

 Malta                                                             MT

 

 Martinique                                                        MB

 

 Mauritania                                                        MR

 

 Mauritius                                                         MP

 

 Mexico                                                            MX

 

 Midway Islands                                                    MQ

 

 Monaco                                                            MN

 

 Mongolia                                                          MG

 

 Montserrat                                                        MH

 

 Morocco                                                           MO

 

 Mozambique                                                        MZ

 

 Nauru                                                             NR

 

 Navassa Island                                                    BQ

 

 Nepal                                                             NP

 

 Portuguese Timor                                                  PT

 

 Puerto Rico                                                       RQ

 

 Qatar                                                             QA

 

 Reunion                                                           RE

 

 Romania                                                           RO

 

 Rwanda                                                            RW

 

 St. Christopher-Nevis-Anguilla (Also called St. Kitts)            SC

 

 St. Helena                                                        SH

 

 St. Lucia                                                         ST

 

 St. Pierre & Miquelon                                             SB

 

 St. Vincent                                                       VC

 

 San Marino                                                        SM

 

 Sao Tome and Principe                                             TP

 

 Saudi Arabia                                                      SA

 

 Scotland                                                          UK

 

 Senegal                                                           SG

 

 Seychelles                                                        SE

 

 Sierra Leone                                                      SL

 

 Singapore                                                         SN

 

 Solomon Islands                                                   BP

 

 Somalia                                                           SO

 

 South Africa                                                      SF

 

 Tuvalu (Also called Ellice Islands)                               TV

 

 Uganda                                                            UG

 

 Union of Soviet Socialist Republics                               UR

 

 United Arab Emirates                                              TC

 

 United Kingdom                                                    UK

 

 United States                                                     US

 

 Upper Volta                                                       UV

 

 Uruguay                                                           UY

 

 Vatican City                                                      VT

 

 Venezuela                                                         VE

 

 Vietnam                                                           VM

 

 Virgin Islands of the U.S.                                        VQ

 

 Wake Island                                                       WQ

 

 Wales                                                             UK

 

 Wallis & Futuna                                                   WF

 

 Western Sahara                                                    WI

 

 Western Samoa                                                     WS

 

 Yemen (South)                                                     YS

 

 Yemen (North)                                                     YE

 

 Yugoslavia                                                        YO

 

 Zaire                                                             CG

 

 Zambia                                                            ZA

 

 Zimbabwe                                                          RH

 

 

PART B. 5 1/4 INCH DISKETTE 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 diskette file. These specifications must be adhered to unless deviations have been specifically granted by IRS.

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

(a) 5 1/4 inches in diameter.

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

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

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

(e) Position 419 and 420 of each record has been reserved for carriage return/line feed (cr/lf) characters.

(f) There may not be more than one file on a diskette.

(g) Filename of IRSTAX must be used. If a file will consist of more than one diskette, the filename IRSTAX will contain a 3 digit numeric extension. This extension will indicate the sequence of the diskettes within the file. For example, the first diskette will be named IRSTAX.001, the second diskette will be IRSTAX.002 etc.

(h) A diskette file may consist of multiple diskettes as long as the filename conventions are adhered to.

(i) IRS will accept soft sectored diskettes only.

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

 Capacity   Tracks      Sides/Density   Sector Size  Operating System

 

  1.2 mb     96tpi          ds/dd           512        MS/PC-DOS 3.X

 

  360 kb     48tpi          ds/dd           512        MS/PC-DOS 2.X

 

  320 kb     48tpi          ds/dd           512        MS/PC-DOS 1.X

 

  180 kb     48tpi          ss/dd           512        MS/PC-DOS 2.X

 

  160 kb     48tpi          ss/dd           512        MS/PC-DOS 1.X

 

 

NOTE: If you use a 5 1/4 inch diskette format not listed above but feel it may be compatible, see Part A, Sec. 3.04 for instructions on sending a "test" diskette to IRS. No effort will be made to convert and process non-compatible diskettes. An IBM PC/XT, PC/AT, 3270 PC or compatible PC equipment should produce an acceptable diskette.

.03 Deviations from the prescribed formats will not be acceptable. Under no circumstances may diskettes deviating from the specifications in this revenue procedure be submitted without prior approval from IRS. If you file under the Combined Federal/State Program, your files must conform totally to this revenue procedure.

.04 An external affixed label must appear on each diskette (not on the diskette jacket) submitted for processing. The following information is needed on the label:

(a) The transmitter's name.

(b) The five character alpha/numeric Transmitter Control Code.

(c) State of sender (e.g., NY).

(d) The tax year of the data (e.g., 1987).

(e) Document types (e.g., 1099-INT).

(f) The total number of "B" Records after each "A" Record (this figure is taken from the "C" Records).

(g) A number assigned by the transmitter to the diskette.

(h) The sequence of each diskette (e.g., 001 of 008).

.05 This information will assist IRS in processing the file or in locating a file should the transmitter request that it be returned due to errors. IRS advises that special shipping containers not be used for transmitting data since it cannot be guaranteed that they will be returned.

SEC. 2. PAYER/TRANSMITTER "A" RECORD

.01 Identifies the payer and transmitter of the diskette file and provides parameters for the succeeding Payee "B" Records. IRS computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the "B" Records to which they apply.

.02 The number of "A" Records appearing on a diskette will depend on the number of payers and the different types of returns being reported. The payment amounts for one payer for the one type of return must be consolidated under one "A" Record if submitted on the same file. Do not submit separate "A" Records for each payment amount being reported. For example, if you are filing Form 1099-DIV to report Amount Codes 1, 2, and 3, all three amount codes must be reported under one "A" Record, not three separate "A" Records. For Payee "B" Records which do not contain payment amounts for all three amount codes, enter zeros for those which have no payment to be reported. After the header label on the diskette, the first record appearing in the file must be an "A" Record. All records must be a fixed length of 420 positions. A transmitter may include Payee "B" Records for more than one payer on a diskette; however, each GROUP of Payee "B" Records must be preceded by an "A" Record. A single diskette may also 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. An "A" Record may be blocked with "B" Records; however, the initial record on a file must be an "A" Record. IRS will accept an "A" Record after a "C" Record, but RECORDS MAY NOT SPAN DISKETTES. Do not begin any record at the end of a diskette and continue the same record into the next diskette.

.03 All alpha characters entered in the "A" Record should be uppercase.

.04 WHEN REPORTING FORM 1098, "MORTGAGE INTEREST STATEMENT," THE "A" RECORD WILL REFLECT THE NAME OF THE RECIPIENT OF THE INTEREST. THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST AND THE AMOUNT PAID.

.05 Carriage return/line feed characters (cr/lf) may be placed in positions 419 and 420 of the "A" Record.

               RECORD NAME: PAYER/TRANSMITTER "A" RECORD

 

 

 NOTE: For all fields marked REQUIRED, you must provide the

 

 information described under Description and Remarks. For fields not

 

 marked REQUIRED, you must allow for the field but may be instructed

 

 to enter blanks or zeroes in the indicated diskette position(s) and

 

 for the indicated length. All records are now a fixed length of 420

 

 positions.

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

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

 

 1          Record Type        1        REQUIRED. Enter "A".

 

 

 2-3        Payment Year       2        REQUIRED. Must be the last two

 

                                        digits of the year for which

 

                                        information is being reported

 

                                        (e.g., if payments were made

 

                                        in 1987, enter "87"). Must be

 

                                        incremented each year.

 

 

 4-6        Diskette           3        The diskette sequence number

 

            Sequence                    incremented by 1, for each

 

            Number                      diskette on the file starting

 

                                        with 001. You may choose to

 

                                        enter blanks or zeros. IRS

 

                                        bypasses this information. You

 

                                        must indicate the proper

 

                                        sequence on the external label

 

                                        of the diskette.

 

 

 7-15       Payer's Federal    9        REQUIRED: Must be the valid 9-

 

            EIN                         digit number assigned to the

 

                                        payer by IRS. DO NOT ENTER

 

                                        BLANKS, HYPHENS, ALPHA

 

                                        CHARACTERS, ALL 9s OR ALL

 

                                        ZEROS. (Also see Part A, Sec.

 

                                        9.07.)

 

 

 16-19      Payer Name         4        The Payer Name Control can be

 

            Control                     obtained from the mail label

 

                                        on the Package 1099 which is

 

                                        mailed to most payers on

 

                                        record each December. Names of

 

                                        less than four (4) letters

 

                                        should be left-justified,

 

                                        filling the unused positions

 

                                        with blanks. If you have not

 

                                        received a Package 1099 or

 

                                        you do not know your Payer

 

                                        Name Control, this field

 

                                        should be blank filled.

 

 

 20         Blank              1        Enter blank.

 

 

 21         Combined           1        Enter the appropriate code

 

            Federal/State               from the table below. Prior

 

            Filer                       approval is required. A

 

                                        Consent Form 6847 must be

 

                                        submitted to IRS before tax

 

                                        information will be released

 

                                        to the States. Refer to Part

 

                                        A, Sec. 12.11 for money

 

                                        criteria. Not all states

 

                                        participate in this program.

 

                                        If the Payer/Transmitter is

 

                                        not participating in the

 

                                        Combined Federal/State Filing

 

                                        Program, enter blanks. (Refer

 

                                        to Part A, Sec. 12 for the

 

                                        requirements that must be met

 

                                        prior to actual participation

 

                                        in this program.) Forms 1098,

 

                                        1099-A, 1099-B, and W-2G

 

                                        cannot be filed on this

 

                                        program. Filers who

 

                                        participate in this program

 

                                        must incorporate state totals

 

                                        into corresponding "K" Records

 

                                        as described in Part B, Sec.

 

                                        6.

 

 

                                        Code   Meaning

 

                                        1      Participating in the

 

                                               Combined Federal/State

 

                                               Filing Program

 

                                        blank  Not participating

 

 

 22         Type of Return     1        REQUIRED. Enter appropriate

 

                                        code from table below:

 

 

                                        Type of Return            Code

 

                                        1098                      3

 

                                        1099-A                    4

 

                                        1099-B                    B

 

                                        1099-DIV                  1

 

                                        1099-G                    F

 

                                        1099-INT                  6

 

                                        1099-MISC                 A

 

                                        1099-OID                  D

 

                                        1099-PATR                 7

 

                                        1099-R                    9

 

                                        5498                      L

 

                                        W-2G                      W

 

 

 23-31      Amount Indicators  9        REQUIRED. In most cases, the

 

                                        box numbers on paper

 

                                        information returns correspond

 

                                        with the Amount Codes used to

 

                                        file on magnetic media;

 

                                        however, should you notice

 

                                        discrepancies between this

 

                                        revenue procedure and paper

 

                                        forms, please disregard them

 

                                        and program according to this

 

                                        revenue procedure for your

 

                                        returns filed on magnetic

 

                                        media. For specific

 

                                        instructions on information to

 

                                        be reported in each Amount

 

                                        Code, refer to the 1987

 

                                        "Instructions for Forms 1099,

 

                                        1098, 5498, 1096, and W-2G",

 

                                        included in your reporting

 

                                        package. The amount indicators

 

                                        entered for a given type of

 

                                        return indicate type(s) of

 

                                        payment(s) which were made.

 

                                        For each Amount Code entered

 

                                        in this field, a corresponding

 

                                        payment amount will appear in

 

                                        the Payee "B" Record. Example:

 

                                        If position 22 of the

 

                                        Payer/Transmitter "A" Record

 

                                        is "7" (for 1099-PATR) and

 

                                        positions 23-31 are

 

                                        "247bbbbbb", this indicates

 

                                        that you will be reporting 3

 

                                        actual payment amounts in all

 

                                        of the following Payee "B"

 

                                        Records. The first payment

 

                                        amount field in the Payee "B"

 

                                        Record will be all "0"

 

                                        (zeros), the second will

 

                                        represent Nonpatronage

 

                                        distributions, the third will

 

                                        be all "0" (zeros), the fourth

 

                                        will represent Federal income

 

                                        tax withheld, the fifth and

 

                                        sixth will be all "0" (zeros),

 

                                        the seventh will represent

 

                                        Energy investment credit, and

 

                                        the eighth and ninth will be

 

                                        all "0" (zeros). Enter the

 

                                        Amount Indicators in ASCENDING

 

                                        SEQUENCE (i.e., 1247bbbbb),

 

                                        left-justify, filling unused

 

                                        positions with blanks. For any

 

                                        further clarification of the

 

                                        Amount Indicator codes,

 

                                        contact the IRS National

 

                                        Computer Center.

 

 

            Amount                      For Reporting Interest

 

            Indicators                  Received from Payer(s) on Form

 

            Form 1098-                  1098:

 

            Mortgage

 

            Interest                    Amount

 

            Statement                   Code   Amount Type

 

 

                                        1      Mortgage interest

 

                                               received from payer(s)/

 

                                               borrower(s)

 

                                        2      Optional field for

 

                                               items such as real

 

                                               estate taxes or

 

                                               insurance paid from

 

                                               escrow

 

 

            Amount                      For Reporting the Acquisition

 

            Indicators                  or Abandonment of Secured

 

            Form 1099-A--               Property on Form 1099-A:

 

            Acquisition or

 

            Abandonment of              Amount

 

            Secured Property            Code   Amount Type

 

 

                                        2      Amount of debt

 

                                               outstanding

 

                                        3      Amount of debt

 

                                               satisfied

 

                                        4      Fair market value of

 

                                               property at acquisition

 

                                               or abandonment

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-B:

 

            Form 1099-B--

 

            Proceeds from               Amount

 

            Real Estate,                Code   Amount Type

 

            Broker, and Barter          1      Real Estate (See Note

 

            Exchange                           1)

 

            Transactions                2      Stocks, bonds, etc.

 

                                               (For Forward Contracts

 

                                               see NOTE 2.)

 

                                        3      Bartering (Do not

 

                                               report negative

 

                                               amounts)

 

                                        4      Federal income tax

 

                                               withheld

 

                                        6      Profit (or loss)

 

                                               realized in 1987

 

                                        7      Unrealized profit (or

 

                                               loss) on open

 

                                               contracts--12/31/86

 

                                        8      Unrealized profit (or

 

                                               loss) on open

 

                                               contracts--12/31/87

 

                                        9      Aggregate profit (or

 

                                               loss)

 

 

            NOTE 1: Refer to the 1987 "Instructions for Reporting Real

 

            Estate Transactions on Form 1099-B" for detailed

 

            information.

 

            NOTE 2: The Payment Amount field associated with Amount

 

            Code 2 may be used to represent a loss when the reporting

 

            is for Forward Contracts. Refer to Payee "B" Record--

 

            General Field Descriptions, Payment Amount Fields, for

 

            instructions on reporting negative amounts. Do not report

 

            negative amounts for Amount Code 3 and 4.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-DIV:

 

            Form 1099-DIV--

 

            Dividends and               Amount

 

            Distributions               Code   Amount Type

 

 

                                        1      Gross dividends and

 

                                               other distributions on

 

                                               stock

 

                                        2      Investment expenses

 

                                               included in Amount Code

 

                                               1

 

                                        3      Capital gain

 

                                               distributions

 

                                        4      Federal income tax

 

                                               withheld

 

                                        5      Nontaxable

 

                                               distributions (if

 

                                               determinable)

 

                                        6      Foreign tax paid

 

                                        8      Cash liquidation

 

                                               distributions

 

                                        9      Noncash liquidation

 

                                               distributions (Show

 

                                               fair market value)

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-G:

 

            Form 1099-G--

 

            Certain Government          Amount

 

            Payments                    Code   Amount Type

 

 

                                        1      Unemployment

 

                                               compensation

 

                                        2      State or local income

 

                                               tax refunds

 

                                        4      Federal income tax

 

                                               withheld

 

                                        5      Discharge of

 

                                               indebtedness

 

                                        6      Taxable grants

 

                                        7      Agriculture payments

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-INT:

 

            Form 1099-INT--

 

            Interest Income             Amount

 

                                        Code   Amount Type

 

 

                                        1      Earnings from savings

 

                                               and loan associations,

 

                                               credit unions, bank

 

                                               deposits, bearer

 

                                               certificates of

 

                                               deposit, etc.

 

                                        2      Early withdrawal

 

                                               penalty

 

                                        3      U.S. Savings Bonds,

 

                                               etc.

 

                                        4      Federal Income Tax

 

                                               withheld

 

                                        5      Foreign tax paid (if

 

                                               eligible for foreign

 

                                               tax credit)

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-MISC:

 

            Form 1099-MISC--

 

            Miscellaneous               Amount

 

            Income (See Notes           Code   Amount Type

 

            1, 2, 3 and 4)

 

                                        1      Rents

 

                                        2      Royalties (See NOTE 1)

 

                                        3      Prizes and awards

 

                                        4      Federal income tax

 

                                               withheld

 

                                        5      Fishing boat proceeds

 

                                        6      Medical and health care

 

                                               payments

 

                                        7      Nonemployee

 

                                               compensation

 

                                        8      Substitute payments in

 

                                               lieu of dividends or

 

                                               interest (see NOTE 2)

 

                                        9      Direct sales

 

                                               "indicator" (see NOTE

 

                                               3)

 

 

            NOTE 1: Beginning in tax year 1987, royalties of $10 or

 

            more must now be reported.

 

            NOTE 2: Brokers are subject to a reporting requirement for

 

            payments received after 1984. Brokers who transfer

 

            securities of a customer for use in a short sale must use

 

            Amount Code 8 to report the aggregate payments received in

 

            lieu of dividends or tax-exempt interest on behalf of a

 

            customer while the short sale was open. Generally, for

 

            substitute payments in lieu of dividends, a broker is

 

            required to file a Form 1099-MISC for each affected

 

            customer who is not an individual. Refer to the 1987

 

            "Instructions for Form 1099, 1098, 5498, 1096, and W-2G,"

 

            for detailed information. The instructions are included in

 

            your magnetic media reporting packages.

 

            NOTE 3: Use Amount Code "9" to report sales by you of

 

            $5,000 or more of consumer products to a person on a buy-

 

            sell, deposit-commission, or any other commission basis

 

            for resale. Refer to the 1987 "Instructions for Forms

 

            1099, 1098, 5498, 1096, and W-2G," for specific

 

            instructions. Do not use this indicator for sales of less

 

            than $5,000. The use of Amount Code "9" actually reflects

 

            an indicator of direct sales over $5,000 and is not an

 

            actual payment amount or amount code. The corresponding

 

            payment amount field in the payee "B" Record MUST be

 

            reflected as 0000000100 if you are reporting a direct sale

 

            of greater than $5000. This does not mean that a payment

 

            of $1.00 was made or is being reported.

 

            NOTE 4: If you are reporting Excess Golden Parachute

 

            Payments, use paper Forms 1099-MISC. Do not report these

 

            payments on magnetic media. See Part A, Sec. 13 for a

 

            definition of an Excess Golden Parachute Payment.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-OID:

 

            Form 1099-OID--

 

            Original Issue              Amount

 

            Discount                    Code   Amount Type

 

 

                                        1      Total original issue

 

                                               discount for 1987

 

                                        2      Other periodic interest

 

                                               (the regular interest

 

                                               paid on this obligation

 

                                               without regard to any

 

                                               original issue

 

                                               discount)

 

                                        3      Early withdrawal

 

                                               penalty

 

                                        4      Federal income tax

 

                                               withheld

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-PATR:

 

            Form 1099-PATR--

 

            Taxable                     Amount

 

            Distributions               Code   Amount Type

 

            Received From

 

            Cooperatives                1      Patronage dividends

 

                                        2      Nonpatronage

 

                                               distributions

 

                                        3      Per-unit retain

 

                                               allocations

 

                                        4      Federal income tax

 

                                               withheld

 

                                        5      Redemption of

 

                                               nonqualified notices

 

                                               and retain allocations

 

                                        6      Investment credit (See

 

                                               NOTE)

 

                                        7      Energy investment

 

                                               credit (See NOTE)

 

                                        8      Jobs credit (See NOTE)

 

 

            NOTE: The amounts shown for Amount Indicators "6," "7" and

 

            "8" must be reported to the payee; however, they need not

 

            be reported to IRS.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-R:

 

            Form 1099-R--

 

            Total                       Amount

 

            Distributions               Code   Amount Type

 

            From Profit-

 

            Sharing,                    1      Amount includable as

 

            Retirement Plans,                  income (add amounts in

 

            Individual                         codes 2 and 3)

 

            Retirement                  2      Capital gain (for lump-

 

            Arrangements,                      sum distributions only)

 

            Insurance                   3      Ordinary income

 

            Contracts, Etc.             4      Federal income tax

 

            (See NOTES 1, 2                    withheld

 

            and 3)                      5      Employee contributions

 

                                               (profit-sharing or

 

                                               retirement plans) or

 

                                               insurance premiums

 

                                        6      Net unrealized

 

                                               appreciation in

 

                                               employer's securities

 

                                        7      State income tax

 

                                               withheld (See NOTE 2)

 

                                        8      IRA or SEP

 

                                               distributions (See NOTE

 

                                               3)

 

                                        9      Other

 

 

            NOTE 1: A distribution from a KEOGH plan should be

 

            reported in Amount Codes 1, 2 and 3 as appropriate.

 

            NOTE 2: State income tax withheld has been added for the

 

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

 

            NOTE 3: Do not report DEC distributions in Amount Code 8.

 

            These are reported in Amount Codes 1 and 3.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  5498:

 

            Form 5498--

 

            Individual                  Amount

 

            Retirement                  Code   Amount Type

 

            Arrangement

 

            Information                 1      Regular IRA

 

            (See NOTE)                         contributions made in

 

                                               1987 and 1988 for 1987

 

                                        2      Rollover IRA

 

                                               contributions

 

                                        3      Life insurance costs

 

                                               included in code 1 for

 

                                               endowment contracts

 

                                               only

 

                                        4      Fair market value (of

 

                                               the IRA or SEP account

 

                                               on December 31, 1987)

 

 

            NOTE: Form 5498 is filed for each person for whom you

 

            maintained an individual retirement arrangement (IRA) or

 

            simplified employee pension (SEP) during 1987. Amount Code

 

            4 represents the value of the account. Trustees and

 

            issuers of IRAs and SEPs must report the value of accounts

 

            in existence during the year, even if no contributions

 

            were made during the year. Do not report employer SEP

 

            contributions on Form 5498; however, you must report the

 

            value of an SEP account. For an IRA, use all applicable

 

            Amount Codes. If no IRA contributions were made for 1987,

 

            you will only use Amount Code 4. Only IRA contributions to

 

            be applied to 1987 that are made between January 1, 1987

 

            and April 15, 1988 are to be reported in Amount Code 1.

 

            Deductible voluntary employee contributions (DECs) can no

 

            longer be made; therefore, they have been eliminated from

 

            the form.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  W-2G:

 

            Form W-2G--

 

            Certain Gambling            Amount

 

            Winnings                    Code   Amount Type

 

 

                                        1      Gross winnings

 

                                        2      Federal income tax

 

                                               withheld

 

                                        3      State income tax

 

                                               withheld (See NOTE)

 

                                        7      Winnings from identical

 

                                               wagers

 

 

            NOTE: State income tax withheld has been added for the

 

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

 

 

 32-43      Blank              12       Enter blanks.

 

 

 44-48      Transmitter        5        REQUIRED. Enter the five

 

            Control Code                character alpha/numeric

 

            (TCC)                       Transmitter Control Code

 

                                        assigned by IRS. See Part A,

 

                                        Sec. 13 for a definition of

 

                                        Transmitter Control Code

 

                                        (TCC). You must have a TCC to

 

                                        file actual data on this

 

                                        program.

 

 

 49         Foreign            1        Enter a "1" if the payer is a

 

            Corporation                 foreign corporation and income

 

            Indicator                   is paid by the corporation to

 

                                        a U.S. resident from sources

 

                                        outside of the United States.

 

                                        A foreign corporation is any

 

                                        corporation organized or

 

                                        created other than in or under

 

                                        the laws of the United States

 

                                        or any state or territory.

 

                                        Otherwise, enter a blank in

 

                                        this field.

 

 

 50-89      First Payer Name   40       REQUIRED. Must be present or

 

            Line                        files will be returned for

 

                                        correction. Enter the name of

 

                                        the payer whose Federal EIN

 

                                        appears in position 7-15

 

                                        above, in the manner in which

 

                                        it is used in normal business.

 

                                        Any extraneous information

 

                                        must be deleted from the name

 

                                        line. Left-justify and fill

 

                                        with blanks. (Do not enter the

 

                                        Transfer Agent's name in this

 

                                        field. The Transfer Agent's

 

                                        name should appear in the

 

                                        Second Payer Name Line.) NOTE:

 

                                        WHEN REPORTING FORM 1098,

 

                                        "MORTGAGE INTEREST STATEMENT,"

 

                                        THE "A" RECORD WILL REFLECT

 

                                        THE NAME OF THE RECIPIENT OF

 

                                        THE INTEREST. THE "B" RECORD

 

                                        WILL REFLECT THE INDIVIDUAL

 

                                        PAYING THE INTEREST (THE PAYER

 

                                        OF RECORD) AND THE AMOUNT

 

                                        PAID.

 

 

 90-129     Second             40       The contents of this field are

 

            Payer Name                  dependent upon the TRANSFER

 

            Line                        AGENT INDICATOR in position

 

                                        130 of this record. If the

 

                                        Transfer Agent Indicator

 

                                        contains a "1", this field

 

                                        must contain the name of the

 

                                        Transfer Agent. If the

 

                                        Transfer Agent Indicator

 

                                        contains a "0" (zero), this

 

                                        field must contain either a

 

                                        continuation of the First

 

                                        Payer Name field or blanks.

 

                                        Left-justify and fill unused

 

                                        positions with blanks. IF NO

 

                                        ENTRIES ARE PRESENT FOR THIS

 

                                        FIELD, FILL WITH BLANKS. (See

 

                                        Part A, Sec. 13 for a

 

                                        definition of Transfer Agent.)

 

 

 130        Transfer           1        REQUIRED. Identifies the

 

            Agent Indicator             entity in the Second Payer

 

                                        Name Line. (See Part A, Sec.

 

                                        13 for a definition of

 

                                        Transfer Agent.)

 

 

                                        Code     Meaning

 

                                        1        The entity in the

 

                                                 Second Payer Name

 

                                                 field is the Transfer

 

                                                 Agent.

 

                                        0 (zero) The entity shown is

 

                                                 not the Transfer

 

                                                 Agent (i.e., the

 

                                                 Second Payer Name

 

                                                 Line contains either

 

                                                 a continuation of the

 

                                                 First Payer Name

 

                                                 field or blanks).

 

 

 131-170     Payer Shipping    40       REQUIRED. If the TRANSFER

 

             Address                    AGENT INDICATOR in position

 

                                        130 is a "1", enter the

 

                                        shipping address of the

 

                                        Transfer Agent. Otherwise,

 

                                        enter the shipping address of

 

                                        the payer. Left-justify and

 

                                        fill with blanks.

 

 

 171-210    Payer City,        40       REQUIRED. If the TRANSFER

 

            State and                   AGENT INDICATOR in position

 

            ZIP Code                    130 is a "1", enter the City,

 

                                        State and ZIP Code of the

 

                                        Transfer Agent. Otherwise,

 

                                        enter the City, State and ZIP

 

                                        Code of the payer. Left-

 

                                        justify and fill with blanks.

 

 

 211-290    Transmitter        80       REQUIRED (only if the payer

 

            Name                        and transmitter are not the

 

                                        same). Enter the name of the

 

                                        transmitter in the manner in

 

                                        which it is used in normal

 

                                        business. The name of the

 

                                        transmitter must be constant

 

                                        through the entire file. Left-

 

                                        justify and fill with blanks.

 

                                        If the payer and transmitter

 

                                        are the same, enter blanks in

 

                                        this field.

 

 

 291-330    Transmitter        40       REQUIRED (only if the payer

 

            Mailing Address             and transmitter are not the

 

                                        same). Enter the mailing

 

                                        address of transmitter. Left-

 

                                        justify and fill with blanks.

 

                                        If the payer and transmitter

 

                                        are the same, enter blanks in

 

                                        this field.

 

 

 331-370    Transmitter        40       REQUIRED (only if the payer

 

            City, State                 and transmitter are not the

 

            and ZIP Code                same). Enter the City, State,

 

                                        and Zip Code of the

 

                                        transmitter. Left-justify and

 

                                        fill with blanks. If the payer

 

                                        and transmitter are the same,

 

                                        enter blanks in this field.

 

 

 371-418    Blank              48       Enter blanks.

 

 

 419-420    Blank              2        Enter blanks. Positions 419

 

                                        and 420 may be used to contain

 

                                        carriage return/line feed

 

                                        characters.

 

 

SEC. 3. PAYER/TRANSMITTER "A" RECORD--RECORD LAYOUT

[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]

SEC. 4. PAYEE "B" RECORDS--GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUTS

.01 The Payee "B" Record contains the payment information from the individual statements. When filing information documents on 5 1/4 inch diskette, the format for the Payee "B" Records will remain constant and is a fixed length of 420 positions. The record layout for positions 1 through 321 is the same for all "B" Records. Positions 322 through 420 varies slightly for Forms 1099-A, 1099-B, 1099-OID and W-2G to accommodate variations within these forms. The individual field definitions can be found following the Payee Zip Code field in the "B" Record.

For tax year 1987 data, all records must be submitted with a fixed length of 420 positions. In the "A" Record, the Amount Indicator Codes that appear in diskette positions 23 through 31 will be left-justified and blank filled. In the "B" Record, you will allow for all nine payment amount fields and for those not used, enter zeros. For example, if you are reporting on Form 1099-PATR, you will enter a "7" in diskette position 22 of the "A" Record, Type of Return Indicator field. If you are reporting payments for Amount Codes 2, 4, and 7, then diskette positions 23 through 31 of the "A" Record will be "247bbbbbb". In the Payee "B" Record, positions 51 through 60 for Payment Amount 1 will be zeros. Positions 61-70 will reflect the actual payment amount to be reported for "Nonpatronage distributions." Positions 71-80 for Payment Amount 3 will be zeros. Positions 81-90 will reflect the actual payment amount to be reported for "Federal income tax withheld." Positions 91-110 for Payment Amounts 5 and 6 will be zeros. Positions 111-120 will reflect the actual payment amount to be reported for "Energy investment credit." Positions 121-140 for Payment Amounts 8 and 9 will be zeros. The First Payee Name Line will always appear in positions 162-201.

.02 Carriage return/line feed characters (cr/lf) may be placed in positions 419 and 420 of the "B" Record.

.03 IRS must be able to identify the surname associated with the TIN (SSN or EIN) furnished on a statement. The specifications below include a field in the payee records called "Name Control" in which the first four alphabetic characters of the payee's surname or last name are to be entered by the payers. The surname or last name should appear first in the First Payee Name Line of all Payee "B" Records; however, if your records have been developed using the first name first, IRS programs will accept this but a blank must appear between the first and last name.

.04 If payers are unable to determine the first four characters of the surname, the Name Control Field may be left blank; however, compliance with the following will facilitate IRS computer programs in generating the Name Control.

(a) The surname of the payee whose TIN (SSN or EIN) is shown in the Payee "B" Record should always appear first. If, however, you enter the first name first, you must leave a blank space between the first and last name.

(b) In the case of multiple payees, only the surname of the payee, whose TIN (SSN or EIN) is shown in the Payee "B" Record, must be present in the First Payee Name Line. Surnames of any other payees in the record must be entered in the Second Payee Name Line.

.05 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required by state or local governments or for the filer's own personal use. IRS does not use the data provided in the Special Data Entries field.

.06 Those filers participating in the Combined Federal/State Filing Program must code their records appropriately for the state to receive the information. The state code now appears in diskette positions 417 and 418 of the "B" Record. The file should also meet the money criteria described in Part A, Sec. 12.11. Do not code for the states unless prior approval to participate has been granted by IRS. See Part A, Sec. 12.10 for a list of the valid participating state codes. FORMS 1098, 1099-A, 1099-B, AND W-2G CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM. Your files must meet all of the requirements specified in Part A, Sec. 12 in order to participate in this program.

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

.08 Do not use decimal points (.) to indicate dollars and cents on magnetic media.

.09 IRS STRONGLY ENCOURAGES FILERS TO REVIEW THEIR DATA FOR ACCURACY BEFORE SUBMISSION TO PREVENT ERRONEOUS NOTICES BEING MAILED TO PERSONS FOR WHOM REPORTS ARE FILED. FILERS SHOULD BE ESPECIALLY CAREFUL THAT THEIR TAXPAYER NAMES, SOCIAL SECURITY NUMBERS (SSNs), ACCOUNT NUMBERS, TYPES OF INCOME, AND INCOME AMOUNTS ARE CORRECT.

.10 WHEN REPORTING FORM 1098, "MORTGAGE INTEREST STATEMENT," THE "A" RECORD WILL REFLECT THE NAME OF THE RECIPIENT OF THE INTEREST. THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST AND THE AMOUNT PAID.

                     RECORD NAME: PAYEE "B" RECORD

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

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

 

 NOTE: For all fields marked REQUIRED, you must provide the

 

 information described under Description and Remarks. For those fields

 

 not marked REQUIRED, you must allow for the field but may be

 

 instructed to enter blanks or zeros in the indicated diskette

 

 position(s) and for the indicated length. All records are now a fixed

 

 length of 420 positions.

 

 

 1          Record Type        1        REQUIRED. Enter "B".

 

 

 2-3        Payment Year       2        REQUIRED. Must be the last two

 

                                        digits of the year for which

 

                                        payments are being reported

 

                                        (e.g., if payments were made

 

                                        in 1987 enter "87"). Must be

 

                                        incremented each year.

 

 

 4-5        Document           2        REQUIRED for Forms 1099-R,

 

            Specific                    1099-MISC, 1099-G, and W-2G.

 

            Code                        FOR ALL OTHER FORMS, ENTER

 

                                        BLANKS. For Form 1099-R, enter

 

                                        the appropriate code(s) for

 

                                        the Category of Total

 

                                        Distribution. More than one

 

                                        code may apply for Form 1099-

 

                                        R; however, if only one code

 

                                        is required, it will be

 

                                        entered in position 4 and

 

                                        position 5 will be blank. For

 

                                        Form 1099-MISC, position 4 is

 

                                        used to indicate Crop

 

                                        Insurance Proceeds, position 5

 

                                        will be blank. For Form 1099-

 

                                        G enter the year of income tax

 

                                        refund in position 4, position

 

                                        5 will be blank. For Form W-

 

                                        2G enter the Type of Wager in

 

                                        position 4, position 5 will be

 

                                        blank.

 

 

            Category of                 Use only for reporting on Form

 

            Total Distribution          1099-R to identify the

 

            (Form 1099-R                Category of Total

 

            only)                       Distribution. When applicable

 

                                        you may enter a numeric and an

 

                                        alpha code but not two numeric

 

                                        codes. No numeric code is

 

                                        needed for normal

 

                                        distributions reported in

 

                                        Amount Code 1, but codes A, B,

 

                                        or C might apply. IRS suggests

 

                                        that anyone using code P

 

                                        advise payees, at the time the

 

                                        distribution is made, that the

 

                                        earnings are taxable in the

 

                                        year in which the contribution

 

                                        was made. Enter the applicable

 

                                        code from the table that

 

                                        follows. Code 7 in the table

 

                                        must not be used if a

 

                                        significant amount (greater

 

                                        than zero) is included in a

 

                                        particular "B" Record for

 

                                        Amount Indicators 1, 2 and 3.

 

                                        A "0" (zero) is not a valid

 

                                        code for Form 1099-R. IF YOU

 

                                        ARE REPORTING A DISTRIBUTION

 

                                        FROM A KEOGH PLAN, OR FROM ANY

 

                                        OTHER DISTRIBUTION, TO WHICH

 

                                        THE FOLLOWING CODES DO NOT

 

                                        APPLY, ENTER BLANKS IN THIS

 

                                        FIELD. If you are reporting a

 

                                        total distribution from a plan

 

                                        that includes a distribution

 

                                        of a DEC, you must report two

 

 

                                        separate "B" Records--one to

 

                                        report the distribution of

 

                                        DECs and the other to report

 

                                        the distribution from the

 

                                        other part of the plan. This

 

                                        is necessary since DECs are

 

                                        not subject to 5-year/10-year

 

                                        averaging. Report the

 

                                        distribution of DECs in Amount

 

                                        Codes 1 and 3 of the "A"

 

                                        Record.

 

 

                                        Category                  Code

 

                                        Premature distribution    1

 

                                         (other than codes 2, 3,

 

                                         4, 5, 8, or P)

 

                                        Rollover                  2

 

                                        Disability                3

 

                                        Death (includes payments  4

 

                                         to a beneficiary)

 

                                        Prohibited transaction    5

 

                                        Other                     6

 

                                        Normal IRA or SEP         7

 

                                         distributions

 

                                        Excess contributions      8

 

                                         refunded plus earnings

 

                                         on such excess

 

                                         contributions

 

                                        PS58 Costs (see NOTE)     9

 

                                        Excess contributions      P

 

                                         refunded plus earnings

 

                                         on such excess

 

                                         contributions taxable

 

                                         in 1986

 

                                        Qualifies for 5-year/     A

 

                                         10-year averaging

 

                                        Qualifies for death       B

 

                                         benefit exclusion

 

                                        Qualifies for both A      C

 

                                         and B

 

 

                                        NOTE: PS58 Costs may be

 

                                        reported on Form 1099-R if a

 

                                        total distribution is also

 

                                        made; otherwise, use Form W-

 

                                        2P (filed with SSA). Since

 

                                        this is not actually a total

 

                                        distribution, a separate "B"

 

                                        Record is required to report

 

                                        PS58 Costs. These costs may

 

                                        not be reported in combination

 

                                        with a total distribution.

 

                                        Refer to the 1987

 

                                        "Instructions for Forms 1099,

 

                                        1098, 5498, 1096, and W-2G,"

 

                                        included in your reporting

 

                                        packages.

 

 

            Crop Insurance              If the payment amount reported

 

            Proceeds (Form              for Amount Code 7 is crop

 

            1099-MISC only)             insurance proceeds, enter a

 

                                        "1" in position 4. Position 5

 

                                        will be blank.

 

 

            Refund is for               Use only for reporting the tax

 

            Tax Year                    year for which the refund was

 

            (Form 1099-G                issued. If the payment amount

 

            only)                       field associated with Amount

 

                                        Indicator 2, Income Tax

 

                                        Refunds, contains a refund,

 

                                        credit or offset that is

 

                                        attributable to an income tax

 

                                        which applies exclusively to

 

                                        income from a trade or

 

                                        business and is not of general

 

                                        application, then enter the

 

                                        ALPHA equivalent of the year

 

                                        for which the refund was

 

                                        issued from the table below

 

                                        (i.e., for 1985 enter E).

 

                                        Otherwise, enter the NUMERIC

 

                                        Year for which the refund was

 

                                        issued (i.e., for 1985, enter

 

                                        5). This code should appear in

 

                                        position 4. Position 5 will be

 

                                        blank.

 

 

                                        Year for which  Alpha

 

                                        Refund was      Equivalent /*/

 

                                        Issued

 

                                        1               A

 

                                        2               B

 

                                        3               C

 

                                        4               D

 

                                        5               E

 

                                        6               F

 

                                        7               G

 

                                        8               H

 

                                        9               I

 

                                        0               J

 

 

                                        /*/ To be used for trade or

 

                                        business refunds only.

 

 

            Type of Wager               Use only for reporting the

 

            (Form W-2G only)            Type of Wager on Form W-2G.

 

                                        This code will appear in

 

                                        position 4. Position 5 will be

 

                                        blank.

 

 

                                        Category                  Code

 

                                        Horse Race Track (or Off  1

 

                                         Track Betting of a Horse

 

                                         Track nature)

 

                                        Dog Race Track (or Off    2

 

                                         Track Betting of a Dog

 

                                         Track nature)

 

                                        Jai-alai                  3

 

                                        State Conducted Lottery   4

 

                                        Keno                      5

 

                                        Casino Type Bingo. DO     6

 

                                         NOT use this code for

 

                                         any other type of Bingo

 

                                         winnings (i.e., Church,

 

                                         Fire Dept. etc.

 

                                        Slot Machines             7

 

                                        Any other types of        8

 

                                         gambling winnings. This

 

                                         includes Church Bingo,

 

                                         Fire Dept. Bingo,

 

                                         unlabeled winnings,

 

                                         etc.

 

 

 6          Blank              1        Enter blank.

 

 

 7          Blank or           1        Enter blank. Diskette position

 

            Corrected                   7 is used to indicate a

 

            Return                      corrected return. Refer to

 

                                        Part A, Sec. 8 for specific

 

                                        instructions on how to file

 

                                        corrected returns using

 

                                        magnetic media.

 

 

 8-11       Indicator          4        Enter the first 4 letters of

 

            Name Control                the surname of the payee. The

 

                                        surname of the person whose

 

                                        TIN is being reported in

 

                                        position 15-23 of the "B"

 

                                        Record should be used to

 

                                        determine the Name Control.

 

                                        This is especially important

 

                                        in the case of trustee

 

                                        accounts. If the name that

 

                                        corresponds to the TIN is not

 

                                        included in the First or

 

                                        Second Payee Name Line every

 

                                        effort should be made to

 

                                        develop the correct name

 

                                        control of the name that

 

                                        corresponds to the TIN.

 

                                        Surnames of less than four (4)

 

                                        letters should be left-

 

                                        justified, filling the unused

 

                                        positions with blanks. Special

 

                                        characters and imbedded blanks

 

                                        should be removed. In the case

 

                                        of a business, use the first

 

                                        significant word of the

 

                                        business name (i.e., words

 

                                        such as "a," "an" and "of" are

 

                                        not considered significant).

 

                                        Disregard the word "the" when

 

                                        it is the first word of the

 

                                        name, unless there are only

 

                                        two words in the name. IF THE

 

                                        NAME CONTROL IS NOT

 

                                        DETERMINABLE BY THE PAYER,

 

                                        LEAVE THIS FIELD BLANK. A dash

 

                                        (--) and ampersand (&) are the

 

                                        only acceptable special

 

                                        characters.

 

 

 The following examples may be helpful to you in developing the name

 

 control:

 

 

                                        Name              Name Control

 

                                        John Brown        BROW

 

                                        John A. Lee       LEE /*/

 

                                        James P. En Sr.   EN /*/

 

                                        John O'Neill      ONEI

 

                                        Mary Van Buren    VANB

 

                                        Juan De Jesus     DEJE

 

                                        John A. El-Roy    EL-R

 

                                        Mr. John Smith    SMIT

 

                                        Joe McCarthy      MCCA

 

                                        Pedro

 

                                         Torres-Lopes     TORR

 

                                        Mark D'Allesandro DALL

 

                                        The First Bank    FIRS

 

                                        The Hideaway      THEH

 

                                        IRS               INTE

 

                                        A & B Cafe        A&BC

 

 

                                        /*/ Name Controls of less than

 

                                        four (4) significant

 

                                        characters must be left-

 

                                        justified and blank filled.

 

 

 12-13      Blank              2        Enter blanks.

 

 

 14         Type of            1        REQUIRED. This field is used

 

            TIN                         to identify the Taxpayer

 

                                        Identification Number (TIN) in

 

                                        positions 15-23 as either an

 

                                        Employer Identification

 

                                        Number, a Social Security

 

                                        Number, or the reason no

 

                                        number is shown. Enter the

 

                                        appropriate code from the

 

                                        following table:

 

 

                                        Type of     Type of

 

                                          TIN  TIN  Account

 

                                           1   EIN  A business or an

 

                                                    organization

 

                                           2   SSN  An individual

 

                                         blank N/A  If the type of TIN

 

                                                    is undeterminable,

 

                                                    enter a blank. If

 

                                                    the number is

 

                                                    unobtainable due

 

                                                    to legitimate

 

                                                    cause; e.g.,

 

                                                    number applied for

 

                                                    but not received,

 

                                                    enter a blank.

 

 

 15-23      Taxpayer           9        REQUIRED. Enter the valid 9-

 

            Identification              digit Taxpayer Identification

 

            Number                      Number of the payee (SSN or

 

                                        EIN, as appropriate). Where an

 

                                        identification number has been

 

                                        applied for but not received

 

                                        or where there is any other

 

                                        legitimate cause for not

 

                                        having an identification

 

                                        number, enter blanks. Refer to

 

                                        Part A, Sec. 9. DO NOT ENTER

 

                                        HYPHENS, ALPHA CHARACTERS, ALL

 

                                        9s OR ALL ZEROS. Any record

 

                                        containing an invalid

 

                                        identification number in this

 

                                        field will be returned for

 

                                        correction.

 

 

 24-43      Payer's Account    20       THIS FIELD HAS BEEN EXPANDED

 

            Number For Payee            FROM 10 TO 20 POSITIONS. The

 

                                        payer may use this field to

 

                                        enter the payee's account

 

                                        number. The use of this item

 

                                        will facilitate easy reference

 

                                        to specific records in the

 

                                        payer's file should any

 

                                        questions arise. DO NOT ENTER

 

                                        A TAXPAYER IDENTIFICATION

 

                                        NUMBER IN THIS FIELD. An

 

                                        account number can be any

 

                                        account number assigned by the

 

                                        payer to the payee (e.g.,

 

                                        checking account, savings

 

                                        account, etc.). THIS NUMBER

 

                                        WILL HELP TO DISTINGUISH THE

 

                                        INDIVIDUAL PAYEE'S ACCOUNT

 

                                        WITH YOU AND SHOULD BE UNIQUE

 

                                        TO IDENTIFY THE SPECIFIC

 

                                        TRANSACTION MADE WITH THE

 

                                        ORGANIZATION, SHOULD MULTIPLE

 

                                        RETURNS BE FILED FOR ONE

 

                                        PAYEE. This information will

 

                                        be particularly necessary if

 

                                        you need to file a corrected

 

                                        return. You are strongly

 

                                        encouraged to use this field.

 

                                        You may use any number that

 

                                        will help identify the

 

                                        particular transaction that

 

                                        you are reporting. For real

 

                                        estate transactions reported

 

                                        on Forms 1099-B only, if the

 

                                        transferor received or will

 

                                        receive property or services

 

                                        as part of the consideration

 

                                        for the property transferred,

 

                                        enter "PST" in this field. If

 

                                        you are also entering an

 

                                        account number, enter "PST"

 

                                        after the number. If a number

 

                                        is not determinable, enter

 

                                        blanks. If fewer than twenty

 

                                        characters are required,

 

                                        right-justify, filling the

 

                                        remaining positions with

 

                                        blanks.

 

 

 44-50      Blank              7        Enter blanks.

 

 

            Payment Amount              REQUIRED. All records

 

            Fields (Must                submitted in this program must

 

            be numeric)                 be a fixed length of 420

 

                                        positions. You must allow for

 

                                        all payment amounts and for

 

                                        those not used you will enter

 

                                        zeros. For example: If

 

                                        position 22 of the

 

                                        Payer/Transmitter "A" Record

 

                                        is "7" (for 1099-PATR) and

 

                                        positions 23-31 are

 

                                        "247bbbbbb", this indicates

 

                                        that you will be reporting 3

 

                                        actual payment amounts in all

 

                                        of the following Payee "B"

 

                                        Records. Payment Amount 1 will

 

                                        be all "0" (zeros), Payment

 

                                        Amount 2 will represent

 

                                        Nonpatronage distributions,

 

                                        Payment Amount 3 will be all

 

                                        "0" (zeros), Payment Amount 4

 

                                        will represent Federal income

 

                                        tax withheld, Payment Amounts

 

                                        5 and 6 will be all "0"

 

                                        (zeros), Payment Amount 7 will

 

                                        represent Energy investment

 

                                        credit, and Payment Amounts 8

 

                                        and 9 will be all "0" (zeros).

 

                                        Each payment field must

 

                                        contain 10 numeric characters

 

                                        or 9 numeric characters and a

 

                                        sign if using signed fields

 

                                        (see NOTE 1).

 

 

                                        Each payment amount must be

 

                                        entered in U.S. dollars and

 

                                        cents. Do not enter dollar

 

                                        signs, commas, decimal points,

 

                                        or NEGATIVE PAYMENTS (except

 

                                        those items that reflect a

 

                                        loss on Form 1099-B). Positive

 

                                        and negative amounts are

 

                                        indicated by placing a "+" or

 

                                        "-" (minus sign) in the left

 

                                        most position of the amount

 

                                        field. If a plus or minus sign

 

                                        is not used, the number will

 

                                        be assumed to be positive.

 

                                        Payment amounts MUST be right-

 

                                        justified and unused positions

 

                                        MUST be zero filled. Federal

 

                                        income tax withheld is not

 

                                        reported as a negative amount

 

                                        for any form.

 

 

                                        NOTE 1: If any one payment

 

                                        amount exceeds "9999999999"

 

                                        (dollars and cents), as many

 

                                        SEPARATE Payee "B" Records as

 

                                        necessary to contain the total

 

                                        amount MUST be submitted for

 

                                        the Payee.

 

 

                                        NOTE 2: If you file 1099-

 

                                        MISC, and you are reporting a

 

                                        Direct Sale of $5,000 or more,

 

                                        enter 0000000100 in Payment

 

                                        Amount 9. This will not

 

                                        represent an actual money

 

                                        amount; this is an indicator

 

                                        of direct sales. (Refer to

 

                                        Part B, Sec. 2, NOTE 3, of the

 

                                        Amount Indicators, Form

 

                                        1099-MISC, for clarification.)

 

 

 51-60      Payment            10       The amount reported in this

 

            Amount 1                    field represents payments for

 

                                        Amount Code 1 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 61-70      Payment            10       The amount reported in this

 

            Amount 2                    field represents payments for

 

                                        Amount Code 2 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 71-80      Payment            10       The amount reported in this

 

            Amount 3                    field represents payments for

 

                                        Amount Code 3 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 81-90      Payment            10       The amount reported in this

 

            Amount 4                    field represents payments for

 

                                        Amount Code 4 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 91-100     Payment            10       The amount reported in this

 

            Amount 5                    field represents payments for

 

                                        Amount Code 5 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 101-110    Payment            10       The amount reported in this

 

            Amount 6                    field represents payments for

 

                                        Amount Code 6 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 111-120    Payment            10       The amount reported in this

 

            Amount 7                    field represents payments for

 

                                        Amount Code 7 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 121-130    Payment            10       The amount reported in this

 

            Amount 8                    field represents payments for

 

                                        Amount Code 8 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 131-140    Payment            10       The amount reported in this

 

            Amount 9                    field represents payments for

 

                                        Amount Code 9 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 141-160    Blank              20       Enter blanks.

 

 

 161        Foreign Country    1        REQUIRED. If the payee address

 

            Indicator                   is in a foreign country, enter

 

                                        a "1" in this field. This will

 

                                        allow you to use any format

 

                                        for the Payee Address, City,

 

                                        State and ZIP Code. Address

 

                                        information must not appear in

 

                                        the First or Second Payee Name

 

                                        Lines. You may choose to use

 

                                        the foreign country codes

 

                                        provided in Part A, Sec. 14;

 

                                        however, the U.S. Postal

 

                                        Service will not recognize

 

                                        these foreign codes for

 

                                        mailing purposes.

 

 

                                        If the address for the payee

 

                                        is a U.S. address, you must

 

                                        enter a blank in this field.

 

                                        The free address format may

 

                                        only be used for foreign

 

                                        addresses. For U.S. addresses,

 

                                        you must use the U.S. Postal

 

                                        Service state abbreviations in

 

                                        diskette "B" Record positions

 

                                        311 and 312. These

 

                                        abbreviations are provided in

 

                                        Part A, Sec. 14.

 

 

 162-201    First Payee        40       REQUIRED. The First Payee Name

 

            Name Line                   Line will always appear in

 

                                        positions 162-201. Do not

 

                                        enter address information in

 

                                        this field. Enter the name of

 

                                        the payee (preferably surname

 

                                        first) whose Taxpayer

 

                                        Identification Number appears

 

                                        in positions 15-23 above. If

 

                                        fewer than 40 characters are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

                                        blanks. If more space is

 

                                        required for the name, utilize

 

                                        the Second Payee Name Line

 

                                        field below. If there are

 

                                        multiple payees, only the name

 

                                        of the payee whose Taxpayer

 

                                        Identification Number has been

 

                                        provided can be entered in

 

                                        this field. The names of the

 

                                        other payees should be entered

 

                                        in the Second Payee Name Line

 

                                        field. NOTE: WHEN REPORTING

 

                                        FORM 1098, "MORTGAGE INTEREST

 

                                        STATEMENT," THE "A" RECORD

 

                                        WILL REFLECT THE NAME OF THE

 

                                        RECIPIENT OF THE INTEREST. THE

 

                                        "B" RECORD WILL REFLECT THE

 

                                        INDIVIDUAL PAYING THE INTEREST

 

                                        AND THE AMOUNT PAID.

 

 

 202-241    Second Payee       40       If the payee name requires

 

            Name Line                   more space than is available

 

                                        in the First Payee Name Line,

 

                                        enter only the remaining

 

                                        portion of the name in this

 

                                        field. If there are multiple

 

                                        payees (e.g., partners or

 

                                        joint owners), this field may

 

                                        be used for those payees'

 

                                        names who are not associated

 

                                        with the Taxpayer

 

                                        Identification Number provided

 

                                        in positions 15-23 above. Do

 

                                        not enter address information

 

                                        in this field. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. FILL WITH BLANKS IF NO

 

                                        ENTRIES ARE PRESENT FOR THIS

 

                                        FIELD.

 

 

 242-281    Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

 

 282-310    Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 311-312    Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state or

 

                                        foreign country (if you have

 

                                        chosen to use the foreign

 

                                        country abbreviations) as

 

                                        shown in Part A, Sec. 14. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses; however,

 

                                        you are not required to use

 

                                        the foreign country codes.

 

                                        Refer to Part A, Sec. 14 for

 

                                        more information. Use this

 

                                        field for state or country

 

                                        abbreviations only. If the

 

                                        code used is for a foreign

 

                                        country, insert a "1" in

 

                                        position "161" of the Foreign

 

                                        Country Indicator field. If

 

                                        the code used is for a state,

 

                                        enter a blank in position

 

                                        "161".

 

 

 313-321    Payee ZIP Code     9        REQUIRED. Enter the valid 9

 

                                        digit ZIP Code assigned by the

 

                                        U.S. Postal Service. If only

 

                                        the first 5 digits are known,

 

                                        left-justify and fill the

 

                                        unused positions with blanks.

 

                                        Use this field for the ZIP

 

                                        Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in position

 

                                        "161" of the Foreign Country

 

                                        Indicator field.

 

 

 THE FOLLOWING FIELD DEFINITIONS DESCRIBE PAYEE "B" RECORD POSITIONS

 

 FOLLOWING THE PAYEE ZIP CODE FOR EITHER (1) FORMS 1098, 1099-DIV,

 

 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R and 5498 OR (2) FORM

 

 1099-A OR (3) FORM 1099-B OR (4) FORM 1099-OID, OR (5) FORM W-2G.

 

 

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

 

 1099-R, and 5498

 

 

                   NEXT FIELD AFTER PAYEE ZIP CODE:

 

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

 

 322-349    Blank              28       Enter blanks.

 

 

 350-416    Special Data       67       This portion of the Payee "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 their

 

                                        state or local revenue

 

                                        departments for their filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 417-418    State Code         2        If this payee record is to be

 

                                        forwarded to a state agency as

 

                                        part of the Combined

 

                                        Federal/State Filing Program,

 

                                        enter the valid state code

 

                                        from Part A, Sec. 12.10. For

 

                                        those filers or states NOT

 

                                        participating in this program

 

                                        or for Form 1098, ENTER

 

                                        BLANKS.

 

 

 419-420    Blank              2        Enter blanks. This field may

 

                                        also be used for carriage

 

                                        return/line feed characters.

 

 

                    PAYEE "B" RECORD--RECORD LAYOUT

 

 

          FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC.,

 

                      1099-PATR, 1099-R, and 5498

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

 (2) FORM 1099-A (For detailed explanations of the following fields

 

 see the 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and

 

 W-2G," included in your reporting packages.)

 

 

                   NEXT FIELD AFTER PAYEE ZIP CODE:

 

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

 

 322-349    Blank              28       Enter blanks.

 

 

 350-372    Special Data       23       This portion of the payee "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 their

 

                                        state or local revenue

 

                                        departments for their filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 373-378    Lender's Date of   6        REQUIRED FOR FORMS 1099-A

 

            Acquisition or              ONLY. Enter the date of your

 

            Knowledge of                acquisition of the secured

 

            Abandonment                 property or the date you first

 

                                        knew or had reason to know

 

                                        that the property was

 

                                        abandoned, in the format

 

                                        MMDDYY. DO NOT ENTER HYPHENS

 

                                        OR SLASHES.

 

 

 379        Liability          1        REQUIRED FOR FORM 1099-A ONLY.

 

            Indicator                   Enter the appropriate from the

 

                                        table below:

 

 

                                        Indicator Usage

 

                                        1         Borrower is

 

                                                  personally liable

 

                                                  for repayment of the

 

                                                  debt.

 

                                        Blank     Borrower is not

 

                                                  liable for repayment

 

                                                  of the debt.

 

 

 380-416    Description        37       REQUIRED FOR FORM 1099-A ONLY.

 

                                        Enter a brief description of

 

                                        the property. For example, 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-1987 Buick Regal or Office

 

                                        Equipment, etc.). If fewer

 

                                        than 37 positions are

 

                                        required, left justify and

 

                                        fill unused positions with

 

                                        blanks.

 

 

 417-418    Blank              2        Enter Blanks.

 

 

 419-420    Blank              2        Enter blanks. This field may

 

                                        also be used for carriage

 

                                        return/line feed characters.

 

 

              PAYEE "B" RECORD--RECORD LAYOUT FORM 1099-A

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

 (3) FORM 1099-B (For detailed explanations of the following fields

 

 see the 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and

 

 W-2G," and 1987 "Instructions for Reporting Real Estate Transactions

 

 on Form 1099-B".)

 

 

                   NEXT FIELD AFTER PAYEE ZIP CODE:

 

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

 

 322-349    Blank              28       Enter blanks.

 

 

 350-367    Special Data       18       This portion of the Payee "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 their

 

                                        state or local revenue

 

                                        departments for their filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 368        Principal          1        For real estate transactions

 

            Residence                   reported on Form 1099-B only.

 

            Indicator                   The use of this field is not

 

                                        required. If it is not used,

 

                                        enter blanks. Enter

 

                                        appropriate indicator from

 

                                        table below:

 

 

                                        Indicator Usage

 

                                        P         Principal residence

 

                                        blank     Other real estate

 

 

 369        Date of Sale       1        REQUIRED FOR FORM 1099-B ONLY.

 

            Indicator                   Enter the appropriate

 

                                        indicator from the table

 

                                        below:

 

 

                                        Indicator Usage

 

                                        S         Date of Sale is the

 

                                                  actual settlement

 

                                                  date

 

                                        blank     Date of Sale is the

 

                                                  trade date or this

 

                                                  is an aggregate

 

                                                  transaction

 

 

 370-375    Date of            6        REQUIRED FOR FORM 1099-B ONLY.

 

            Sale/Closing                Enter the trade date or the

 

                                        actual settlement date of the

 

                                        transaction in the format

 

                                        MMDDYY. Enter blanks if this

 

                                        is an aggregate transaction.

 

 

                                        DO NOT ENTER HYPHENS OR

 

                                        SLASHES. For real estate

 

                                        transactions, enter the date

 

                                        of closing.

 

 

 376-390    CUSIP NUMBER       15       REQUIRED FOR FORM 1099-B ONLY.

 

                                        Enter the CUSIP (Committee on

 

                                        Uniform Security

 

                                        Identification Procedures)

 

                                        number of the items reported

 

                                        for Amount Indicator "2"

 

                                        (Stocks, bonds, etc.). Enter

 

                                        blanks if this is an aggregate

 

                                        transaction. Enter "0" (zeros)

 

                                        if the number is not

 

                                        available. For CUSIP numbers

 

                                        with less than 15 characters,

 

                                        right-justify and fill the

 

                                        remaining positions with

 

                                        blanks.

 

 

 391-416    Description        26       REQUIRED FOR FORM 1099-B ONLY.

 

                                        Enter a brief description of

 

                                        the item or services for which

 

                                        the proceeds are being

 

                                        reported. If fewer than 26

 

                                        characters are required, left-

 

                                        justify and fill unused

 

                                        positions with blanks. For

 

                                        regulated futures contracts,

 

                                        enter "RFC" and any amount

 

                                        subject to backup withholding.

 

                                        Enter blanks if this an

 

                                        aggregate transaction. For

 

                                        real estate transactions, if

 

                                        you are reporting a

 

                                        refinancing, although you are

 

                                        not required to report it,

 

                                        enter "Refinancing".

 

 

 417-418    Blank              2        Enter blanks.

 

 

 419-420    Blank              2        Enter blanks. This field may

 

                                        also be used for carriage

 

                                        return/line feed characters.

 

 

              PAYEE "B" RECORD--RECORD LAYOUT FORM 1099-B

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

 (4) FORM 1099-OID (For detailed explanations of the following fields

 

 see the 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and

 

 W-2G," included in your reporting package.

 

 

                   NEXT FIELD AFTER PAYEE ZIP CODE:

 

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

 

 322-349    Blank              28       Enter blanks.

 

 

 350-390    Special Data       41       This portion of the payee "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 their

 

                                        state or local revenue

 

                                        departments for their filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 391-416    Description        26       REQUIRED FOR FORM 1099-OID

 

                                        ONLY. Enter a brief

 

                                        description of the item or

 

                                        services for which the

 

                                        proceeds are being reported.

 

                                        If fewer than 26 characters

 

                                        are required, left-justify and

 

                                        fill unused positions with

 

                                        blanks.

 

 

 417-418    State Code         2        If this payee record is to be

 

                                        forwarded to a state agency as

 

                                        part of the Combined

 

                                        Federal/State Filing Program,

 

                                        enter the valid state code

 

                                        from Part A, Sec. 12.10. For

 

                                        those filers or states NOT

 

                                        participating in this program,

 

                                        ENTER BLANKS.

 

 

 419-420    Blank              2        Enter Blanks. This field may

 

                                        also be used for carriage

 

                                        return/line feed characters.

 

 

                    PAYEE "B" RECORD--RECORD LAYOUT

 

                             FORM 1099-OID

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

 (5) FORM W-2G (For detailed explanations of the following fields see

 

 the 1987 "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G,"

 

 included in your reporting packages.)

 

 

                   NEXT FIELD AFTER PAYEE ZIP CODE:

 

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

 

 322-352    Blank              31       Enter blanks.

 

 

 353-358    Date Won           6        REQUIRED FOR FORM W-2G ONLY.

 

                                        Enter the date of the winning

 

                                        event in MMDDYY format. This

 

                                        is not the date the money was

 

                                        paid, if paid after the date

 

                                        of the race (or game). DO NOT

 

                                        ENTER HYPHENS OR SLASHES.

 

 

 359-373    Transaction        15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the ticket

 

                                        number, card number (and

 

                                        color, if applicable), machine

 

                                        serial number or any other

 

                                        information that will help

 

                                        identify the winning

 

                                        transaction. If no entry,

 

                                        enter blanks. Not applicable

 

                                        for horse and dog racing, jai-

 

                                        alai, and certain other

 

                                        wagering transactions,

 

                                        sweepstakes, wagering pools,

 

                                        and certain lotteries.

 

 

 374-378    Race               5        REQUIRED FOR FORM W-2G ONLY.

 

                                        The race (or game) applicable

 

                                        to the winning ticket. If no

 

                                        entry, enter blanks.

 

 

 379-383    Cashier            5        REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the initials of

 

                                        the cashier and/or the window

 

                                        number making the winning

 

                                        payment. If no entry, enter

 

                                        blanks.

 

 

 384-388    Window             5        REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the location of

 

                                        the person paying the

 

                                        winnings. If no entry, enter

 

                                        blanks.

 

 

 389-403    First ID           15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the first

 

                                        identification number of the

 

                                        person receiving the winnings.

 

                                        If no entry, enter blanks.

 

 

 404-418    Second ID          15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the second

 

                                        identification number of the

 

                                        person receiving the winnings.

 

                                        If no entry, enter blanks.

 

 

 419-420    Blank              2        Enter Blanks. This field may

 

                                        also be used for carriage

 

                                        return/line feed characters.

 

 

                    PAYEE "B" RECORD--RECORD LAYOUT

 

                               FORM W-2G

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 5. END OF PAYER "C" RECORD

.01 THE "C" RECORD IS A FIXED RECORD LENGTH OF 420 POSITIONS. The Control Total fields are each 15 positions in length.

.02 The End of Payer "C" Record is a summary for a type of return for a given payer.

.03 The "C" Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer. The "C" Record must be written after the last Payee "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.

.04 In developing the "C" Record, for example, if you used Amount Codes 1, 3 and 6 in the "A" Record, the totals from the "B" Records will appear in Control Totals 1, 3 and 6 of the "C" Record. In this example, positions 26-40, 56-85, and 101-145 would be zero filled. Positions 146-420 would be blank filled.

.05 Carriage return/line feed characters (cr/lf) may be placed in positions 419 and 420 of the "C" Record.

.06 Payers/Transmitters must verify the accuracy of the totals in the "C" Record and must enter the totals on the transmittal, Form 4804, 4802 or computer generated substitute, which will accompany the shipment. The lines used on Forms 4804 and 4802 to record payment amounts correspond with the Amount Codes used in the "A" Record.

                 RECORD NAME: END OF PAYER "C" RECORD

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

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

 

 1          Record Type        1        REQUIRED. Enter "C".

 

 

 2-7        Number of          6        REQUIRED. Enter the total

 

            Payees                      number of Payee "B" Records

 

                                        covered by the preceding

 

                                        Payer/Transmitter "A" Record.

 

                                        Right-justify and zero fill.

 

 

 8-10       Blank              3        Enter blanks.

 

 

 REQUIRED. If any corresponding Payment Amount fields are present in

 

 the Payee "B" Records, accumulate into the appropriate Control Total

 

 fields. RIGHT JUSTIFY AND ZERO FILL UNUSED CONTROL TOTAL FIELDS.

 

 Positive and negative amounts are indicated by placing a "+" or "-"

 

 (minus sign) in the left most position of the amount field. If a plus

 

 or minus sign is not used, the number will be assumed to be positive.

 

 Please note that all Control Total fields are 15 positions in length.

 

 

 11-25      Control            15

 

            Total 1

 

 

 26-40      Control            15

 

            Total 2

 

 

 41-55      Control            15

 

            Total 3

 

 

 56-70      Control            15

 

            Total 4

 

 

 71-85      Control            15

 

            Total 5

 

 

 86-100     Control            15

 

            Total 6

 

 

 101-115    Control            15

 

            Total 7

 

 

 116-130    Control            15

 

            Total 8

 

 

 131-145    Control            15

 

            Total 9

 

 

 146-420    Blank              275      Enter blanks. Positions 419

 

                                        and 420 may be used to contain

 

                                        the carriage return/line feed

 

                                        characters.

 

 

                 END OF PAYER "C" RECORD--RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 6. STATE TOTALS "K" RECORD

.01 THE "K" RECORD IS A FIXED RECORD LENGTH OF 420 POSITIONS. The Control Total fields are each 15 positions in length.

.02 The State Totals "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. ALL RECORDS ARE A FIXED LENGTH OF 420 POSITIONS.

.03 The "K" Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer for a given state. The "K" Record(s) must be written after the "C" Record for the related "A" Record.

.04 There MUST be a separate "K" Record for each state being reported.

.05 Refer to Part A, Sec. 12 for the requirements and conditions that MUST be met to file on this program.

.06 Carriage return/line feed characters (cr/lf) may be placed in positions 419 and 420 of the "K" Record.

                 RECORD NAME: STATE TOTALS "K" RECORD

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

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

 

 1          Record Type        1        REQUIRED. Enter "K".

 

 

 2-7        Number of          6        REQUIRED. Enter the total

 

            Payees                      number of Payee "B" Records

 

                                        being coded for this state.

 

                                        Right-justify and zero fill.

 

 

 8-10       Blank              3        Enter blanks.

 

 

 REQUIRED. If any corresponding Payment Amount fields are present in

 

 the Payee "B" Records, accumulate into the appropriate Control Total

 

 fields. RIGHT JUSTIFY AND ZERO FILL UNUSED CONTROL TOTAL FIELDS.

 

 Positive and negative amounts are indicated by placing a "+" or "-"

 

 (minus sign) in the left most position of the amount field. If a plus

 

 or minus sign is not used, the number will be assumed to be positive.

 

 Please note that all Control Total fields are 15 positions in length.

 

 

 11-25      Control            15

 

            Total 1

 

 

 26-40      Control            15

 

            Total 2

 

 

 41-55      Control            15

 

            Total 3

 

 

 56-70      Control            15

 

            Total 4

 

 

 71-85      Control            15

 

            Total 5

 

 

 86-100     Control            15

 

            Total 6

 

 

 101-115    Control            15

 

            Total 7

 

 

 116-130    Control            15

 

            Total 8

 

 

 131-145    Control            15

 

            Total 9

 

 

 146-416    Reserved           271      Reserved for IRS use. Enter

 

                                        blanks.

 

 

 417-418    State Code         2        REQUIRED. Enter the code

 

                                        assigned to the state which is

 

                                        to receive the information.

 

                                        Refer to Part A, Sec. 12.10.

 

 

 419-420    Blank              2        Enter blanks. This field may

 

                                        also be used to contain

 

                                        carriage return/line feed

 

                                        characters.

 

 

                STATE TOTALS "K" RECORD--RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 7. END OF TRANSMISSION "F" RECORD

.01 THE "F" RECORD IS A FIXED RECORD LENGTH OF 420 POSITIONS. The "F" Record is a summary of the number of payers and diskettes in the entire file.

.02 This record should be written after the last "C" Record (or "K" Record, when applicable) of the entire file.

.03 Carriage return/line feed characters (cr/lf) may be placed in positions 419 and 420 of the "F" Record.

              RECORD NAME: END OF TRANSMISSION "F" RECORD

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

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

 

 1          Record Type        1        REQUIRED. Enter "F".

 

 

 2-5        Number of          4        You may enter the total number

 

            "A" Records                 of Payer/Transmitter "A"

 

                                        Records in this transmission.

 

                                        Right-justify and zero fill or

 

                                        enter all zeros.

 

 

 6-8        Number of          3        You may enter the total number

 

            Diskettes                   of diskettes in this

 

                                        transmission. Right-justify

 

                                        and zero fill or enter all

 

                                        zeros.

 

 

 9-30       Zeros              22       Enter zeros.

 

 

 31-420     Blank              390      Enter blanks. Positions 419

 

                                        and 420 may be used to contain

 

                                        carriage return/line feed

 

                                        characters.

 

 

                 END OF TRANSMISSION "F" RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Index Terms
    information return
  • Jurisdictions
  • Language
    English
  • Tax Analysts Electronic Citation
    87 TNT 169-8
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