SEC. 5. FORM 8508, REQUEST FOR

WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA

.01 Withholding agents required to file Form 1042–S magnetically or electronically may receive a waiver if the requirement would create an undue hardship. The withholding agent may request a waiver by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC.

.02 A separate Form 8508 must be submitted by each withholding agent. Filers are encouraged to submit Form 8508 at least 45 days before the due date of the return.

.03 If a waiver for original

documents is approved, any correc-

tions for the same type of returns

will be covered under this waiver. If

a withholding agent submits the

original Form 1042–S on magnetic

media, corrections, less than 250,

may be submitted on paper. How-

ever, if you can submit your original

returns on magnetic media but not

your corrections, you must request a

waiver for those exceeding the 250.

.04 Waivers are evaluated on a case-by-case basis and are approved or denied based on regulation criteria set forth under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.

.05 Failure to provide all of the information requested on the Form 8508 and/or the cost estimates, if applicable, will result in an automatic denial of the waiver request.

.06 An approved waiver will only provide exemption from magnetic or electronic filing for one tax year. A waiver may not be requested for more than one tax year at a time. If needed, the withholding agent must apply each year for a waiver.

.07 A copy of Form 8508 may be obtained by calling 1-800-829-3676. Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original form.

.08 If a waiver request is ap-

proved, the transmitter should keep

the approval letter on file.

.09 An approved waiver from filing information returns magnetically or electronically does not provide exemption from filing; the withholding agent must still file information returns on acceptable paper forms with the Philadelphia Service Center. Do not include a copy of the approved waiver with the paper forms.

SEC. 6. VENDOR LIST

.01 IRS/MCC prepares a list of

vendors who support magnetic

media or electronic filing. This

list contains the names of serv-

ice bureaus that will produce

22

files on the prescribed types of

magnetic media or via electronic

filing. It also contains the names

of vendors who provide software

packages for payers who wish to

produce magnetic media or elec-

tronic files on their own computer

systems. This list is provided as

as a courtesy and in no way implies

IRS/MCC approval or endorsement.

NOTE: If filers meet the filing

requirements and engage a service

bureau to prepare media on their

behalf, the filers should not report

duplicate data which may cause

penalty notices to be generated.

.02 A withholding agent may con-

tact IRS/MCC via telephone or letter

(See Part A. Sec. 3) to acquire the

vendor list (Publication 1582). This in-

formation is also available from the In-

formation Reporting Program Bulletin

Board System (IRP/BBS). Vendor

names will not be provided over

the telephone.

.03 A vendor, who offers a soft-

ware package, has the ability to pro-

duce magnetic media for customers, or

has the capability to electronically

file information returns, and would like

to be included on the list, must submit

a written request to IRS/MCC. The re-

quest should be submitted by August 15

and must include:

(a) Company name

(b) Address (include city, state,

and ZIP code)

(c) Telephone number (include

area code)

(d) Contact person

(e) Type(s) of service provided

Payee records reported’’ provide the total number of recipient ‘‘Q’’ records.

.05 If a test file is submitted electronically, the filer will be prompted for what type of file is being transmitted. Choose the option T = Test File. Once the file has been transmitted, complete Form 4804/4802 indicating TEST File in Box 1 and send to IRS/MCC the same day. No processing will begin until this form is received by IRS/MCC. For additional information on electronic filing, see Part C. and Part D.

(e.g., service bureau and/or software)

(f) Type(s) of media offered

(e.g., magnetic tape, tape cartridge or

5 ¹ ⁄4-, 3 ¹ ⁄2-inch diskettes or elec-

tronic filing)

.04 The vendor list is updated

annually. Therefore, any changes to

information already on the vendor list

must be received by IRS/MCC no later

than August 15 to be included on the

most current vendor list.