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Rev. Proc. 84-33

APR. 16, 1984

Rev. Proc. 84-33; 1984-1 C.B. 502

DATED APR. 16, 1984
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Tax forms and instructions.

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 84-33; 1984-1 C.B. 502
Rev. Proc. 84-33 1

SECTION 1. PURPOSE

The purpose of this revenue procedure is to provide an optional method for an authorized transfer/paying agent to report and deposit amounts withheld for payers under the statutory provisions of backup withholding.

SEC. 2. BACKGROUND

.01 Section 31.3504-1(a) of the Employment Tax Regulations provides that applications for authorization to act as agent with respect to wages under Chapter 24 of the Code shall be filed with the district director or director of a service center with whom the agent, on approval of the application, will file returns.

.02 Rev. Proc. 70-6, 1970-1 C.B. 420, describes the procedure to be followed in applying for authorization to act as agent for employers under section 3504 of the Code for purposes of chapters 21, 22, 24 and 25 with respect to acts required of employers under the federal employment tax statutes.

.03 Section 3406 of the Internal Revenue Code provides that under certain circumstances, payers of payments reportable under sections 6041, 6041A, 6042, 6044, 6045, 6049, and 6050A shall deduct and withhold tax of 20 percent of the payments. Section 3406(a) defines the four conditions that trigger the backup withholding requirements.

.04 Section 3406(h)(10) of the Code provides that for purposes of Chapter 24, payments which are subject to backup withholding under section 3406 shall be treated as if they were wages paid by an employer to an employee and any amounts withheld shall be treated as if they were income tax withholding under section 3402.

SEC. 3. SCOPE AND OBJECTIVE

.01 Current rules provide, in sections 35a.9999-1, 2 and 3 of the Temporary Employment Tax Regulations under the Interest and Dividend Tax Compliance Act of 1983, that the person who is required by the applicable Code sections to file the information returns is the person (payer) required to do the backup withholding. Thus, a transfer/paying agent who actually makes the reportable payments and withholds on behalf of such payers must deposit the withheld amounts separately for each payer using that payer's taxpayer identification number (TIN) and must notify each payer of the withholding and deposits made on the payer's behalf. The payer, in turn, is required to report the backup withholding on the same Form 941, Employer's Quarterly Federal Tax Return, or Form 941 E, Quarterly Return of Withheld Federal Income Tax, filed by the payer with respect to its own employees.

.02 However, in lieu of the provision in 3.01 above, a transfer/paying agent may report and deposit backup withholding amounts for payers under the agent's TIN if the agent complies with the procedures listed below.

SEC. 4. APPLICATION

.01 A transfer/paying agent making the election under 3.02 above must take the actions specified below:

.02 The agent must apply for authorization, in writing, to the Director of the Internal Revenue Service Center with whom the agent intends to file the returns involved.

(a) The application must be accompanied by a Form 2678, Employer Appointment of Agent under Section 3504, completed by each payer for whom the agent is to act. (Form 2678 is available at any Internal Revenue Service district or local office.) Even if the agent has already filed a Form 2678 for another purpose, a new Form 2678 from each payer is required under this optional procedure.

(b) The agent must enter "BACKUP WITHHOLDING" in red above the service center address area of Form 2678. The name and TIN of both the payer and the agent must be entered on the form. See Exhibit 1 for an example of a properly completed Form 2678. If the agent does not have a TIN, a properly completed Form SS 4, Application for Employer Identification Number must accompany the application for authorization.

(c) One application for authorization may be filed to cover more than one payer as long as a properly completed Form 2678 from each payer is attached.

(d) The application will be approved by letter to the agent from the service center director. Approval is effective as of the date of the letter.

(3) If the agreement to act as an agent is terminated for any payer(s) for whom a Form 2678 was filed, the agent must revoke the Form 2678 by notifying the Director of the Internal Revenue Service Center, by sending a letter with the name(s) of the payer(s) to be revoked and a statement that the originally filed Form 2678 is no longer in effect.

.03 Filing of Tax Returns

(a) The agent must file a single tax return (Form 941) for each tax period, regardless of the number of payers for whom the agent is acting.

(b) The return must include the backup withholding amounts for all liable payers as well as for the agent, if the agent is liable for any on its own account.

(c) The agent's name and TIN must be used on the tax return as well as on any Federal Tax Deposit (FTD) coupons.

(d) See Rev. Proc. 84-11, 1984-8 I.R.B. 23 for instructions on filing Form 941 on magnetic media.

.04 Filing of Information Returns and Transmittals-If the agent submits a Form 2678 electing this option, all information returns and transmittals must be completed as specified below, whether or not backup withholding is required to be reported.

(a) If the information returns are filed on magnetic media:

(1) A separate transmittal, Form 4804, Transmittal of Information Returns Reported on Magnetic Media, must be filed for each payer.

(2) Enter the agent's name, address and TIN in box 5 of Form 4804.

(3) See Rev. Proc. 83-48, 1983-27 I.R.B. 7 for instructions on magnetic media filing of information returns.

(b) If the information returns are filed on paper:

(1) A separate transmittal document, Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or Form W 3G (if appropriate), Transmittal of Certain Information Returns must be filed for each payer. See Exhibits 2 and 3 for examples of properly completed forms.

(2) The transmittal document must have the payer's name and the agent's name (in care of-c/o) and the agent's address in the address area of the form.

(3) For both forms, enter three slashes (/ / /) before the payer's name to identify the document as being filed by an agent.

(4) Enter the agent's TIN in the lower right hand portion of the title area on Form 1096. Enter the agent's TIN in the blank box on Form W 3G.

(5) Enter the payer's TIN in the block for Employer Identification Number (EIN) on Form 1096. Enter the payer's TIN in the identifying number block on Form W 3G.

(6) For the Forms 1099 attached to the transmittal, enter the payer's name followed by the agent's name (in care of-c/o) and the agent's address in the name and address area of the form. See Exhibit 4 for an example of a properly completed form. The only exception is on Form 1099 R, Statement for Recipients of Total Distributions from Profit-sharing, Retirement Plans, Individual Retirement Arrangements, etc. For this form, enter the agent's name directly to the right of the printed words "Street Address". See Exhibit 5 for an example of a properly completed form.

(7) For all Forms 1099, enter the payer's TIN in the space for Federal identifying number.

SEC. 5. GENERAL

.01 The agent must maintain records that will disclose the full amount of interest, dividends, patronage dividends and other reportable payments reported and tax withheld for each payer and each recipient.

.02 In accordance with section 3504 of the Code, all provisions of the law and regulations (including penalties) applicable with respect to a payer will be applicable to the agent, and despite the acts performed by the agent pursuant to authority granted under Section 3504, the payer will remain subject to all provisions of the law and regulations (including penalties).

SEC. 6. INQUIRIES

Inquiries concerning this revenue procedure should refer to its number and should be addressed to the Director, Internal Revenue Service Center, serving the district in which the agent is located.

SEC. 7. EFFECT ON OTHER DOCUMENTS

This revenue procedure amplifies Revenue Procedures 70-6, 83-48, and 84-24.

SEC. 8. EFFECTIVE DATE

This revenue procedure is effective for returns for taxable periods beginning after December 31, 1983.

1 Also released in News Release IR 84-43 dated March 28, 1984.

Exhibit 1

                    Department of the Treasury --

 

                      Internal Revenue Service

 

 

Form 2678 Employer Appointment of Agent OMB Clearance No.

 

(Rev. August 1983) 1545-0748

 

                     Under Section 3504 of the

 

                       Internal Revenue Code

 

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

 

1. Instructions

 

 

                                          Employer: Please complete

 

                                          this form and give it to

 

                                          the agent.

 

 

                                          Agent: Please attach a

 

         Director, Internal Revenue request for authority to do

 

         Service Center all that is required of

 

         1040 Waverly Avenue the employer for wages you

 

         Holtsville, NY 11799 pay on the employer's

 

                                          behalf. (See applicable

 

                                          chapters of Subtitle C

 

                                          of the Internal Revenue

 

                                          Code.) Furnish the form and

 

                                          the request to the Director

 

                                          of the Internal Revenue

 

                                          Service Center where you

 

                                          file your returns.

 

 

2. Employer's name 3. Employer's address (Number and

 

                                      street, city, town or post

 

     XYZ Corporation office, State and ZIP code)

 

 

4. Employer identification number 2780 Tiger St.

 

                                       Baltimore, Md. 21212

 

     99-9999999

 

 

5. Agent's name 6. Agent's address (Number and

 

                                      street, city, town or post

 

     EFG Bank & Trust Co. office, State and ZIP code)

 

 

7. Agent's employer 1173 Tuna Drive

 

   identification number Baltimore, Md. 21212

 

 

     11-1111111

 

 

8. Date appointment became

 

   effective

 

     1/1/84

 

 

                                 Signature Date

 

 

The agent named above has been 1/1/84

 

appointed to pay wages to our

 

employees. This appointment is

 

effective on the date shown in

 

item 8.

 

                                 By (Indicate whether the person

 

Under Section 3504 of the signing is an owner, partner, member

 

Internal Revenue Code, please of firm, fiduciary, or a corporate

 

authorize this agent to do all officer. If a corporate officer,

 

that is required under Chapters please give title.)

 

__________________ of Subtitle

 

C of the Code for the wages

 

this agent pays. President

 

 

It is understood that the

 

agent and the employer are

 

subject to all provisions of

 

law and regulations

 

(including penalties) which

 

apply to employers.

 

 

                   Paperwork Reduction Act Notice

 

 

     We ask for this information to carry out the Internal Revenue

 

laws of the United States. We need it to ensure that taxpayers are

 

complying with these laws and to allow us to figure and collect the

 

right amount of tax. You are required to give us this information.

 

 

                              Exhibit 2

 

 

__ 6969 For Official Use Only

 

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

 

Form 1096 Annual Summary and Transmittal of OMB No. 1545-0108

 

Department of U.S. Information Returns

 

the Treasury 1984

 

Internal

 

Revenue Service 11-1111111

 

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

 

Type or machine print PAYER'S name Enter in Box 1 or 2 below the

 

/// XYZ Corporation identifying number you used as

 

c/o EFG Bank & Trust Co. the payer on the attached

 

Street address information returns. Do not fill

 

1173 Tuna Drive in both Boxes 1 and 2.

 

City, State and ZIP code

 

Baltimore, MD 21212 1 Employer 2 Social security

 

 

                                     identification number

 

                                     number

 

 

                                     99-9999999

 

 

                                    3 Total number 4 Number without

 

                                      of documents taxpayer ID

 

                                                      numbers

 

                                    10

 

 

   Regular 1099's and 5498's Nominee/Middleman 1099's

 

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

 

1099 1099 1099 1099 1099 1099 1099 1099 1099 1099 1099

 

 ASC B DIV G INT MISC ASC B DIV G INT

 

 84 79 91 86 92 95 84 79 91 86 92

 

 

 __ __ __ __ x __ __ __ __ __ __

 

 

1099 1099 1099 1099 1099

 

OID PATR 5498 MISC OID PATR

 

 96 97 28 95 96 97

 

 

 __ __ __ __ __ __

 

 

     Under penalties of perjury, I declare that I have examined this

 

return, including accompanying documents and to the best of my

 

knowledge and belief, they are true, correct, and complete. In the

 

case of documents without recipients' identifying numbers I have

 

complied with the requirements of the law in attempting to secure

 

such numbers from the recipients.

 

 

Signature _______________ Title President Date 1/1/85

 

 

   Please return this entire page to the Internal Revenue Service.

 

 

Paperwork Reduction Act Notice

 

 

     We ask for this information to carry out the Internal Revenue

 

laws of the United States. We need it to ensure that taxpayers are

 

complying with these laws and to allow us to figure and collect the

 

right amount of tax. You are required to give us this information.

 

 

Notice to Payers

 

 

Purpose of this Form.--Use this form to transmit Forms 1099 and 5498

 

to the Internal Revenue Service. However, use Form W-3G to transmit

 

Form 1099-R.

 

 

     Enter your name, address, and taxpayer identifying number (TIN)

 

in the spaces provided on the form. Individuals not in a trade or

 

business should enter their social security number in box 2; sole

 

proprietors and all others should enter their employer identification

 

number in box 1. However, sole proprietors who are not required to

 

have an employer identification number should enter their social

 

security number in box 2.

 

 

     Do not submit more than one type of Form 1099 or submit Forms

 

5498 and Forms 1099 with the same Form 1096. In box 3, enter the

 

number of documents attached to Form 1096 and check the appropriate

 

box to indicate the type of Form 1099 (or 5498) you are transmitting.

 

 

     If you are transmitting Forms 1099 as a nominee or middleman for

 

payments you received on behalf of another person, check the

 

appropriate box on the lower right half of this form. If you are

 

required to file both regular Forms 1099 or 5498 and Forms 1099 as a

 

middleman or nominee, use a separate Form 1096 for each category.

 

 

     If you have one type of Form 1099 (or 5498) that includes forms

 

with TIN's of recipients and others with no TIN's, you may submit

 

them with one Form 1096 if they are bundled separately. Show the

 

total number of documents being transmitted in box 3. Also, show the

 

number of forms without TIN's in box 4.

 

 

     For more information about where and when to file, etc., see the

 

separate instructions for Form 1096.

 

 

     If you are filing a Form 1096 for corrected information returns

 

mark over the "X" in the box at the top left corner of this form.

 

 

                              Exhibit 3

 

 

__ 8888 For Official Use Only

 

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

 

                                                      OMB No.

 

Type or machine 1 PAYER'S 2 Enter the number 1545-0238

 

print PAYER'S name identifying of Forms W-2G

 

/// XYZ Corporation number transmitted

 

c/o EFG Bank

 

& Trust Co. 99-9999999 1984

 

 

                    3 Enter the 4 Total Federal

 

Street address number of income tax Transmittal of

 

                      Forms 1099-R withheld

 

1173 Tuna Drive transmitted Certain

 

                                                      Information

 

                      10 $460.00 Returns

 

 

City, State and 5 Enter number

 

ZIP code without Copy

 

                      taxpayer for Internal

 

Baltimore, MD 21212 identifying Revenue

 

                      number Service Center

 

 

                                   11-1111111

 

 

Under penalties of perjury, I declare that I have examined this

 

return, and accompanying documents, and, to the best of my knowledge

 

and belief, they are true, correct, and complete. In the case of

 

documents without recipients' identifying numbers, I have complied

 

with the requirements of the law in attempting to secure such numbers

 

from the recipients.

 

 

Signature ______________ Title President Date 1/1/85

 

 

   Please return this entire page to the Internal Revenue Service

 

           Center address for your State as listed below.

 

 

Paperwork Reduction Act Notice.--We ask for this information to carry

 

out the Internal Revenue laws of the United States. We need it to

 

ensure that taxpayers are complying with these laws and to allow us

 

to figure and collect the right amount of tax. You are required to

 

give us this information.

 

 

Instructions for Form W-3G

 

 

Who Must File.--Payers of gambling winnings for which a Form W-2G,

 

Statement for Recipients of Certain Gambling Winnings, is required

 

and payers of certain death benefits or total distributions (those

 

that close the account) from a pension plan, annuity, or individual

 

retirement arrangement for which a Form 1099-R, Statement for

 

Recipients of Total Distributions from Profit-Sharing, Retirement

 

Plans, Individual Retirement Arrangements, etc., is required, must

 

file Form W-3G, Transmittal of Certain Information Returns, with

 

Forms W-2G or Forms 1099-R.

 

 

When to File.--File Forms W-3G with Forms W-2G and 1099-R by February

 

28 of the calendar year following the calendar year in which payment

 

is made.

 

 

Where to File.--(Do not file with the Social Security

 

Administration.)

 

 

If your principal business,

 

office or agency, or legal Use the following Internal

 

residence in the case of an Revenue Service Center

 

individual, is located in address

 

 

New Jersey, New York City

 

and counties of Nassau, 1040 Waverly Avenue

 

Rockland, Suffolk, and Holtsville, NY 11799

 

Westchester

 

 

New York (all other

 

counties), Connecticut,

 

Maine, Massachusetts, 310 Lowell Street

 

New Hampshire, Rhode Andover, MA 01810

 

Island, Vermont

 

 

Alabama, Florida, Georgia, 4800 Buford Highway

 

Mississippi, South Carolina Chamblee, GA 30341

 

 

Michigan, Ohio 201 West Second Street

 

                                               Covington, KY 41019

 

 

Arkansas, Kansas,

 

Louisiana, New Mexico, 3651 S. Interregional Highway

 

Oklahoma, Texas Austin, TX 78740

 

 

Alaska, Arizona, Colorado,

 

Idaho, Minnesota, Montana,

 

Nebraska, Nevada, North 1160 W. 1200 South Street

 

Dakota, Oregon, South Ogden, UT 84404

 

Dakota, Utah, Washington,

 

Wyoming

 

 

Illinois, Iowa, Missouri, 2306 E. Bannister Road

 

Wisconsin Kansas City, MO 64131

 

 

California, Hawaii 5045 E. Butler Avenue

 

                                                Fresno, CA 93727

 

 

Indiana, Kentucky, North

 

Carolina, Tennessee, 3131 Democrat Road

 

Virginia, West Virginia Memphis, TN 38110

 

 

Delaware, District of 11601 Roosevelt Boulevard

 

Columbia, Maryland, Philadelphia, PA 19154

 

Pennsylvania

 

 

     If you have no legal residence, principal place of business, or

 

principal office or agency in any Internal Revenue district, file

 

your return with the Internal Revenue Service Center, 11601 Roosevelt

 

Boulevard, Philadelphia, PA 19154.

 

 

Magnetic Media Reporting.--IRS encourages filing information returns

 

on magnetic tape, diskette, or disk pack. Revenue Procedures for

 

Magnetic Media Reporting are available at Internal Revenue service

 

centers and district offices. Information reported on Forms W-2G and

 

1099-R may be reported on the same tape or disk submission.

 

 

Undeliverable Forms.--Any copies of Form W-2G or Form 1099-R which,

 

after a reasonable effort, cannot be delivered to a winner or

 

recipient should be kept as a part of your records for four years.

 

 

Payer's Identifying Number.--Your payer's identifying number is your

 

Employer Identification Number.

 

 

Shipping and Mailing.--Payers should group returns of the same type

 

and forward them in separate groups.

 

 

Completing the Form.--Enter the number of forms being transmitted in

 

the appropriate box (Box 2 for W-2G, Box 3 for 1099-R). Enter in Box

 

4 the total Federal income tax withheld on the forms covered by this

 

transmittal.

 

 

     If you are sending many forms, you may send them in

 

conveniently-sized packages. On each package write your name and

 

identifying number. Number the packages consecutively and place Form

 

W-3G in package number one. At the top of Form W-3G show the number

 

of packages. Postal regulations require forms and packages to be sent

 

by first class mail.

 

 

Corrected Returns.--Use a separate Form W-3G for corrected returns

 

and mark over the "X" in the checkbox next to the number in the top

 

left corner of the form. If a Form 1099-R is prepared incorrectly, do

 

not cut and separate the forms on the page. Simply mark over the "X"

 

in the checkbox to the left of the word "VOID" appearing in the top

 

left corner of the form and prepare a new form for those voided. On

 

corrected Forms 1099-R mark over the "X" in the checkbox appearing

 

next to the number in the top left corner of the form. On corrected

 

Forms W-2G center the words "CORRECTED RETURN" in the space at the

 

top of the return above "For Official Use Only," and mark an "X" in

 

the box next to the number in the left corner of the form. For paper

 

forms correcting data previously submitted on magnetic tape,

 

diskette, or disk pack, print "CORRECTED RETURN - MAGNETIC MEDIA" on

 

the bottom of the transmittal Form W-3G and mark the checkbox on the

 

Form W-3G and on each Form W-2G or 1099-R. Complete all required data

 

boxes on a corrected return, since it supersedes the information

 

previously reported. Also, statements issued to recipients or winners

 

should be identified as "CORRECTED."

 

 

General Instructions for Payers of Gambling Winnings

 

 

Instructions for Form W-2G

 

 

Who Must File.--The requirements for filing Form W-2G, Statement for

 

Recipients of Certain Gambling Winnings, depend on the type of

 

gambling and are listed separately following these general

 

instructions.

 

 

     If a recipient fails to furnish a payer of gambling winnings

 

with a correct taxpayer identification number, a payer is required to

 

withhold 20% of the proceeds and report this amount on Form W-2G.

 

This is referred to as backup withholding. It applies to any gambling

 

situation of reportable winnings for which there are no regular

 

withholding requirements.

 

 

                              Exhibit 4

 

 

__ 9292 __ VOID For Official Use Only

 

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

 

                         1 Earnings from savings and loan OMB No.

 

Type or machine print associations, credit unions, 1545-0112

 

PAYER'S name bank deposits, bearer

 

                           certificates of deposit, etc.

 

XYZ Corporation

 

c/o EFG Bank & Trust Co. $100.00 1984

 

Street Address 2 Amount of 3 Federal income

 

1173 Tuna Drive forfeiture tax withheld Statement

 

                                                           for

 

                                                           Recipients

 

                                                           of

 

City, State, and $20.00

 

ZIP code

 

Baltimore, MD 21212 4 Foreign tax 5 Foreign country

 

                           paid (if or U.S. Interest

 

                           eligible for possession Income

 

Federal identifying foreign tax

 

number credit)

 

 

99-9999999 For Paper-

 

                                                           work

 

                                                           Reduction

 

                                                           Act Notice

 

Type or machine print Recipient's and in-

 

RECIPIENT'S name (first, identifying structions

 

middle, last) number for com-

 

                                                           pleting

 

Pete George Cougar 888-88-8888 this form,

 

Street Address see In-

 

                                                           structions

 

534 Ocean Drive for Form

 

City, State, and 1096.

 

ZIP code

 

                                                           Copy A

 

Baltimore, MD 21212 For

 

                                                           Internal

 

                                                           Revenue

 

                                                           Service

 

                                                           Center

 

 

                              Exhibit 5

 

 

__ 9898 __ VOID For Official Use Only

 

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

 

Type or machine print 1 Amount includible 2 Capital gain OMB No.

 

PAYER'S name as income (For lump- 1545-0119

 

                         (Add boxes 2 sum distri-

 

XYZ Corporation and 3) butions

 

                                              only) 1984

 

 

                            $2,300.00 $800.00

 

 

Street Address c/o 3 Ordinary income 4 Federal Statement

 

EFG Bank & Trust Co. income tax for

 

                                              withheld Recipients

 

1173 Tuna Drive of Total

 

                          $1,500.00 $460.00 Distri-

 

                                                           butions

 

                                                           from

 

City, State, and Profit-

 

ZIP code sharing,

 

                                                           Retire-

 

Baltimore, MD 21212 ment

 

                                                           Plans,

 

                         5 Employee contri- 6 Net unrea- Indivi-

 

                         butions to lized dual Re-

 

                         profit-sharing or appreciation tirement

 

Federal identifying retirement plans in Arrange-

 

number employer's ments,

 

                                              securities etc.

 

99-9999999

 

                                                           For Paper-

 

                                                           work

 

Type or machine print Recipient's 7 Category of Reduction

 

RECIPIENT'S name identifying number distribution Act Notice

 

(first, middle, last) and in-

 

                                                           structions

 

Pete George Cougar 888-88-8888 for com-

 

                                                           pleting

 

                       8 IRA, SEP or DEC 9 Other: this form,

 

Street address distributions see Form

 

                                                           W-3G.

 

534 Ocean Drive $ %

 

 

City, State, and

 

ZIP code This does __ does not x qualify as

 

                       a lump-sum distribution. Copy A

 

Baltimore, MD 21212 For

 

                       Your percentage of total Internal

 

                       distribution. % Revenue

 

                                                           Service

 

                       Death benefit exclusion does __ or Center

 

                       does not __ apply.
DOCUMENT ATTRIBUTES
  • Cross-Reference

    26 CFR 601.602: Tax forms and instructions.

  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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