SEC. 3. GENERAL RULES FOR

FILING FORMS W–2

.01 Employers MUST use magnetic media for filing with SSA if they prepare and file 250 or more 1996 Forms W–2 (Copy A). This requirement applies unless:

1 The employer can establish that filing on magnetic media will result in undue hardship, AND

2 The employer is granted a waiver of the requirement by IRS.

To request a waiver of the magnetic media filing requirement, for the current tax year only, submit Form 8508, Request for Waiver From Filing Infor- mation Returns on Magnetic Media, to:

Forms may also be FAXED to the IRS/ MCC at (304) 264-5602.

Form 8508 may be obtained by calling 1-800-829-3676. Form 8508 also may be obtained directly from the IRS Martinsburg Computing Center (IRS/MCC) at the above address or by calling 304-263-8700 (not a toll-free number). The number for Telecommunication Device for the Deaf (TDD) is 304-267-3367 (not a toll-free number). It is recommended that completed requests for waivers (Form 8508) be submitted at least 45 days before but no later than the due date of the return (see Sec. 3.06, below). The requestor will receive an approval or denial letter from IRS, but must allow at least 30 days for IRS to respond. If you have any questions concerning Form 8508, contact IRS/MCC at the address or phone number shown above. Employers who do not comply with the magnetic media filing requirements for Form W– 2 and who are not granted a waiver may be subject to certain penalties. Since many states and local governments accept Form W–2 data on magnetic media, savings may be obtained if magnetic media is used for filing with both SSA and state or local governments. In many instances, the state or local government is willing to accept the data format specifications set out in SSA’s Technical Instruction Bulletin No. 4, Magnetic Media Reporting. You must contact each individual state or local taxing agency to receive approval and make arrangements to file on magnetic media.

EMPLOYERS WHO FILE FORM W–2 INFORMATION ON MAGNETIC MEDIA WITH SSA MUST NOT SEND THE SAME DATA TO SSA ON PAPER FORMS W–2. This would result in duplicate reporting and may subject the filer to penalties imposed by the IRS.

.02 TIB–4, Magnetic Media Re- porting, Submitting Annual W–2 Copy A Information to the Social Security Administration, (SSA Pub. No. 42–007, revised Oct., 1995) contains the specifications and procedures for filing Form W–2 information on magnetic media with SSA. Specifications for both tape and diskette reporting for Forms W–2 are included in this Technical Instructions Bulletin (TIB–4).

.03 TIB–4 may be obtained by writing to:

Social Security Administration OCRO, DEA

29

Attn: Resubmittal Unit 300 North Greene Street Baltimore, MD 21201.

Employers may call their local SSA Magnetic Media Coordinator (MMC) to obtain the TIB–4 (see list of Magnetic Media Coordinators’ telephone numbers in the Appendix). The TIB–4 is also on the SSA Annual Wage Reporting Bulletin Board System/AWRBBS. The number for the AWRBBS is (410) 965–1133 (not a toll-free number). Employers using magnetic media are cautioned to obtain the most recent revision of the TIB–4 and supplements due to possible changes in the specifications and procedures.

.04 Employers not using magnetic media must file a paper Copy A of Form W–2 with SSA on either the IRS printed official form or a privately printed substitute paper form that exactly meets the specifications shown in Parts B and C.

.05 Employers can design their own statements to give to employees. This applies to both employers who file with SSA either on magnetic media or paper Forms W–2, Copy A. Employee statements designed by employers must comply with the requirements shown in Parts B and C, below.

NOTE: Copy A must not be filed on paper with SSA when the same Form W–2 information is filed on magnetic media. Therefore, magnetic media filers who use the official IRS printed form or any other pre-printed form are advised not to print Copy A, or to discard a printed Copy A, to prevent duplicate information from being sub- mitted to SSA.

.06 1996 Forms W–2, whether filed on magnetic media or paper, must be submitted to SSA on or before February 28, 1997. In addition, the employee copies must be furnished to the employee on or before January 31, 1997. If employment ended before December 31, 1996, the employee may be furnished their copy any time after employment ends. However, If the employee requests Form W–2, you must furnish him or her the completed copies within 30 days of the request or the final wage payment, whichever is later. This requirement is met if the form is properly addressed, mailed, and postmarked on or before the due date. If the business closes, Copy A of the Form W–2 may be filed with the Social Security Administration as soon as they

If by Postal Service: Internal Revenue Service Martinsburg Computing Center P.O. Box 1359 Martinsburg, WV 25401–1359 Or, if by truck or air freight: IRS—Martinsburg Computing

Center Magnetic Media Reporting Route 9 and Needy Road Martinsburg, WV 25401.

are completed. It is not necessary to wait until after January 1st of the following year to file them. Failure to timely file with SSA or to timely provide the employee copies may subject the employer to penalties. Employers needing additional time to file Form W–2 information (paper or magnetic media) with SSA may request an extension of time to file by submitting Form 8809, Request for Extension of Time to File Information Returns, to the IRS/MCC at the address (or alternative address) listed in Sec. 3.01, above. The extension request should be filed as early as possible, but must be postmarked no later than the due date of the forms (February 28, 199 7 ). Forms may be FAXED to the IRS/ MCC at (304) 264-5602. DO NOT SEND FORM 8809 TO SSA.

NOTE: APPROVAL OF THE EXTENSION IS NOT AUTOMATIC. Approval or denial is based on administrative criteria and guidelines. The requestor will receive an approval or denial letter from IRS and must allow at least 30 days for IRS to respond. Form 8809 may be obtained by calling 1-800-829-3676, or by contacting IRS/ MCC (See the address and phone number in Sec. 3.01, above).

.07 If requesting extensions of time for more than 10 employers, IRS encourages filers to submit the request on tape, tape cartridge, 5 ¹ ⁄4 or 3 ¹ ⁄2-inch diskette, or electronically through the Information Reporting Program Bulletin Board System (IRP–BBS). Transmitters who submit requests for multiple payers will receive one approval letter with an attached list of payers covered under that approval. Publication 1220, Specifications for Filing Forms 1098, 1099 series, 5498 and W– 2G Electronically or on Magnetic Media, provides information on how to file requests for extensions of time on tape, diskette, or electronically. NOTE: Approval of extensions to file (disclosure of return information) will be made only to those third party filers and/or transmitters for whom IRS has received disclosure authorization.