SEC. 15. DEFINITION OF TERMS

Element Description

Asynchronous Protocols The type of data transmission most often used by micro-computers, PCs and some mini-computers. Asynchronous transmissions transfer

data at arbitrary time intervals using start-stop method. Each

character transmitted has its own start bit and stop bit.

b Denotes a blank position. Enter blank(s) when this symbol is used (do not enter the letter ‘‘b’’). This appears in numerous areas throughout the record descriptions. Bisynchronous Protocols For purposes of this publication, these are electronic trans- missions made using IBM 3780 protocols. These transmissions must be in EBCDIC character code and use the Bell 208B (4800bps) or AT&T 2296A (9600bps) modems. Standard IBM 3780 space compression is acceptable.

Blocked records Two or more records grouped together between interrecord gaps. Correction Media submitted by the payer to correct records that were suc- cessfully processed by IRS/MCC, but contained erroneous information.

Employer Identification Number (EIN) A nine-digit number assigned by IRS to a person for Federal tax reporting purposes. Electronic Filing Submission of information returns using switched telecommunications network circuits. These transmissions use modems, dial-up phone lines, asynchronous or bisynchronous protocols (see Part C and D of this publication for specific information on electronic filing). File For the purpose of this revenue procedure, a file consists of all records submitted by a transmitter either magnetically or electronically. Filer Person or organization who prepares and submits files. May be the withholding agent and/or transmitter.

Information Reporting Program Bulletin An electronic bulletin board provides the ability to transmit information Board System (IRP–BBS) returns via a personal computer (PC) using dial-up modems; provides

immediate access to the latest changes, updates, and publications. IRS/MCC Internal Revenue Service/Martinsburg Computing Center

Magnetic Media Refers to ¹ ⁄2-inch magnetic tape, tape cartridge, 5 ¹ ⁄4- or 3 ¹ ⁄2-inch diskettes.

Multi-reel/diskette file A group of tapes or diskettes submitted under one TCC where all media either ends with a Recipient ‘‘Q’’ Record or Withholding Agent ‘‘W’’ Record, EXCEPT for the last media of the file, which ends with an End of Transmission ‘‘Y’’ Record. (Refer to Part B. Sec. 5 for data sequence) Payer Person or organization who is the originator of income and enters into a contractual agreement with the withholding agent for the purpose of disbursing income for the payer. For example, Corporation X is about to declare a dividend. Corporation X contracts Bank Y to calculate and distribute such dividends to recipients, and be responsible for withholding. Corporation X is considered the Payer and Bank Y is considered the Withholding Agent. Recipient Person or organization receiving payments from a withholding agent. Replacement Media that IRS/MCC has returned due to format errors encountered during processing.

Service Bureau Person or organization with whom the payer has a contract to prepare and/ or submit information return file to IRS/MCC. a parent company submitting data for a subsidiary is not considered a service bureau.

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Element Description

Social Security Number (SSN) A nine-digit number assigned by the Social Security Administration (SSA) to an individual for tax and wage reporting purposes.

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

Taxpayer Identification Number (TIN) May be either a Social Security Number (SSN) or an Employer Identification Number (EIN).

Transmitter Person or organization who prepares and submits files. May be the withholding agent or their agent.

Transmitter Control Code (TCC) A five-digit code assigned prior to filing. This number is inserted in the ‘‘T’’ Record and must be present. A Form 4419 must be filed with IRS/ MCC to receive this number. Transmitter control codes assigned to 1042–S filers will always begin with ‘‘22’’.

Withholding Agent A person or entity, U.S. or foreign, required to withhold U.S. tax on payments of income subject to withholding from U.S. sources. A withholding agent may be an individual, partnership, corporation, trust, estate, government agency (Federal, State or local), association, or a taxexempt foundation or organization. The withholding agent is responsible for the completeness, accuracy, and timely submission of files.