SEC. 2. NATURE OF CHANGES — Internal Revenue Bulletin 1996-5

.01 The text and exhibits were updated for tax year 1996.

.02 Only 7 inch width Forms W–2 and W–3 are acceptable for SSA pro- cessing. The exhibits for the printing of 7 ¹ ⁄2 and 8 inch width Forms W–2 and W–3 have been removed because 7.5 and 8 inch forms cannot be put through SSA scanning equipment. Key- ing from the paper documents will be necessary for any 7.5 and 8 inch forms submitted to SSA.

.03 A barcode is now required for copies B, C, and 2 of Forms W–2 (see Part B, Section 2.02 below).

.04 Any questions pertaining to Copy A of Form W–2 should be submitted to SSA. Questions regarding Copies B, C, and 2, should be submitted to IRS (see Part B, Section 3.01 below).

.05 A change in the SSA address to which Form W–2, Copy A, should be submitted has been added. Also, a new zip code has been added for those employers submitting Form W–2, copy A by certified mail. The use of a different zip code will allow SSA to better handle filings by certified mail (see Part B,Section 1.10 below).

.06 The words For Paperwork Reduction Act Notice, see separate instructions,’’ must be printed in red OCR drop-out ink on Forms W–2, Copy A.

.07 The form number and title must be printed in red OCR drop-out ink on

Form W–2, Copy A, and Form W–3. The tax year should remain printed in black ink.

.08 Military employers are now required to report basic quarters, subsistence allowances, and combat pay provided to their employees in box 13 of Form W–2 using code Q.

.09 Information has been added recommending that if employment terminated before December 31, 1996, that the employee receive a copy of their W–2 any time after employment ends. Also, if the employee requests their Form W–2 it should be given within 30 days of the request or the final wage payment, whichever is later. If the business closes, Copy ‘‘A’’ of the Form W–2 may be filed with the Social Security Administration as soon as they are completed. It is not necessary to wait until January 1 of the following year (see Part A, section 3.06 below).

.10 The Catalog Number, shown on the 1996 Form W–2 as ‘‘Cat. No. 10134D’’, and the Catalog Number shown on the 1996 Form W–3 as No. 10159Y, is used for IRS distribution purposes and should not be printed on substitute Forms W–3 or W–2 (Copy A or employee copies).

.11 Various editorial changes were made.