SEC. 3. GENERAL RULES FOR FILING

‘‘PAPER SUBSTITUTES’’ FOR FORMS W–2 AND W–3

.01 Paper substitutes that conform totally to the specifications contained in this revenue procedure may be privately printed without the prior approval of the IRS. Penalties may be assessed for not complying with the form specifications set forth in this publication. SUBSTITUTE FORMS THAT DO NOT CONFORM TOTALLY TO THESE SPECIFICATIONS ARE NOT ACCEPTABLE. This applies to both paper substitutes that are filed with SSA and those that are given to employees. Substitute Copy A of Form W–2 and Form W–3 may be submitted to IRS and SSA for review. Forms should not be submitted to IRS or SSA for specific approval. However, if you are uncertain of any specification set forth herein and want that specification clarified, you may submit a letter citing the specification in question, your interpretation of that specification, and an example of how the form would appear if produced using your understanding of the specification. Any questions pertaining to Copies B, C, and 2 of Forms W–2 should be sent to:

Internal Revenue Service ATTN: Substitute Form W–2

Coordinator CP:CO:SC: A Room 7238 1111 Constitution Avenue, N.W. Washington, DC 20224

Any questions pertaining to Copy A, Form W–2, and Form W–3 should be forwarded to:

Social Security Administration Data Operations Center

Box 16—State and Employer’s state

combat pay, report the amount in box 13 using code Q. .06 Substitute forms for employees (Copies B, C, and 2 of Forms W–2) must meet the following requirements:

1 All copies of Forms W–2 must clearly show the form number, the form title, and the tax year. The title of Form W–2 is ‘‘Wage and Tax Statement.’’ It is recommended (but not required) that this be located on the bottom left of Form W–2. The reference to the Department of the Treasury—Internal Revenue Service must be on all copies of Form W–2 provided to the employee. It is recommended (but not required) that this be located on the bottom right of Form W–2.

2 If the substitute forms are not labeled as to the disposition of the copies, then written notification must be provided to each employee as specified below:

(a) The first copy of the form (Copy B) is filed with the employee’s Federal tax return.

(b) The second copy of the form (Copy C) is for the employee’s records.

(c) If applicable, the third copy (Copy 2) of the form is filed with the employee’s state, city, or local income tax return.

3 If the substitute forms are labeled, the forms must contain the applicable description:

‘‘Copy B, to be filed with employee’s Federal tax return,’’ and ‘‘Copy C, for employee’s records,’’ it is recommended (but not required) that this be located on the lower left of Form W–2. The designation ‘‘Form W–2, it is recommended (but not required) that this be located on the lower left of Form W–2 and Department of the Treasury—Internal Revenue Service.’’ It is recommended (but not required) that this be located on the lower right of Form W–2.

4 Instructions similar to those contained on the back of Copy C of the official form MUST be provided to each employee. While employers may modify or delete certain information in these instructions, (such as modification for employees of railroad to cover Railroad Retirement Tier I and II Compensation and Taxes) the instructions MUST include the exact language concerning the Earned Income Credit (EIC) as is contained on the official form. Employers are allowed to delete

33

i d e n t i f i c a t i o n ( I . D . ) number, Box 17—State wages, tips, etc., and Box 18—State income tax withheld. 11 Employers who are required to report or withhold local income tax information are required to include the following boxes on substitute Forms W–2:

Box 19—Locality name Box 20—Local wages, tips, etc., and Box 21—Local income tax. 12 If state or local tax information is required, this information is also considered ‘‘core data.’’ The state and local information MUST be placed at the bottom of the form. See the exhibits at the end of this revenue procedure.

13 Other boxes on the IRS printed form (Boxes 7 through 15) need not appear on substitute Forms W–2 provided to employees unless an employer has that item of information to report to an employee. For example, if an employee did not have Social Security tips (Box 7), Allocated tips (Box 8), or Advance EIC payments (Box 9), the form could be printed without these boxes. However, if the employer had provided amounts for dependent care benefits, those amounts would be required to be reported separately and shown in a box labeled ‘‘Box 10, Dependent care benefits,’’ as on the IRS printed form and the exhibits in this revenue procedure.

14 Employers may use other headings for Boxes 13 and 14 as needed. For example, if an employer will only be reporting amounts for a 401(k) type retirement plan in Box 13, the employee copies of Form W–2 may be printed labeling Box 13 as ‘‘401(k) Plan.’’ Also, if an employer had two items that may be reported in Box 13, they may divide the box into ‘‘Box 13a’’ and ‘‘Box 13b,’’ labeling the boxes as appropriate. This applies only to Boxes 13 and 14. NOTE: If you are a military employer and provide your employee with basic quarters, subsistence allowances, and

1150 E. Mountain Drive Wilkes-Barre, PA 18702-7997 Attn: Phylis Passetti

NOTE: You should allow at least 30 days for the IRS and SSA to respond.

.02 Forms W–2 and W–3 are subject to annual review and possible change. Employers are cautioned against overstocking supplies of privately printed substitutes.

.03 Copies of the current year, IRS printed Forms W–2 and W–3 and the instructions for these forms may be obtained from most IRS offices or by calling 1-800-829-3676. The IRS provides only cut sheet sets. Reproduction proofs of the official Forms W–2 and W–3 are also available. See Part C, Sec. 4, below, for information on ordering reproduction proofs.

.04 Substitute Forms W–2 and W–3 transmitted to SSA should generally contain only data that is required by the Form W–2, the Form W–2 instructions, and this Revenue Procedure.

.05 Substitute Forms W–2, Copy A, and W–3 are machine imaged and scanned by Social Security, therefore these forms must meet the same specifications as Forms W–2 and W–3 produced by IRS. The vertical and horizontal spacing for all Federal payment and data boxes on Form W–2 must be in compliance with the specifications contained herein.

.06 All ballot boxes on Forms W–2, Copy A (Box 15), and W–3 (Box ‘‘b’’) must be 8-point boxes. NOTE: If a box is marked, more than 50% of the applicable ballot box must be covered by an ‘‘X’’.

.07 Copy A of Form W–2 and Form W–3 must have the form producer’s EIN entered to the left of ‘‘Department of Treasury’’.

PART C. ADDITIONAL INSTRUCTIONS