SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to provide the general rules for filing and to state the requirements of the Internal Revenue Service (IRS) and the Social Security Administration (SSA) for reproducing paper substitutes for Form W–2, Wage and Tax Statement, and Form W–3, Transmittal of Wage and Tax Statements, for amounts paid during the 1996 calendar year. The information reported on Forms W–2 and W–3 is required to establish tax liability for employees and their eligibility for Social Security and Medicare benefits.

.02 Forms W–2 and W–3 have only minor changes for 1996. Please see ‘‘Nature of Changes’’ (Section 2, below) and the exhibits at the end of this revenue procedure for changes to the Form W–2 and W–3.

.03 For the purpose of this revenue procedure, a substitute form is one that is not printed by IRS. A substitute Form W–2 or W–3 MUST conform to the specifications in this revenue procedure to be acceptable to the IRS. Preparers should also refer to the separate instructions for Forms W–2 and the instructions on Form W–3 for details on how to complete these forms. See Part C, Sec. 4.01, for information on ordering the official IRS forms and instructions. See Part B, Sec. 2, for requirements for substitute forms furnished to employees.

.04 IRS has instituted a centralized call site to answer questions related to information returns (Forms W–2, W–3, 1099, etc.). The call-site phone number is 304-263-8700 (not a toll-free num- ber) . The number for Telecommunication Device for the Deaf (TDD) is 304-267-3367 (not a toll-free number) . .05 IRS has established a personal computer based Information Reporting Program Bulletin Board System (IRP– BBS) at the IRS Martinsburg Computing Center (IRS/MCC). This system provides access to the forms and publications relating to information returns, news of the latest changes, the ability to receive answers to specific questions, access to shareware, and other features. The IRP–BBS is available for public use and can be reached by dialing 304-264-7070 (not a toll-

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free number) . The IRP–BBS is compatible with most modems. For more information concerning this system, call IRS/MCC at 304-263-8700 (not a toll-free number) .

.06 Employers are reminded that under Section 6722 of the Internal Revenue Code (IRC) they can be assessed a penalty of $50 per Form W–2 that is not furnished to an employee on a form acceptable to the IRS (up to $100,000). To be acceptable to IRS, the Form W–2 must be either the ‘‘official’’ form or a substitute form with the core data placed exactly as specified in Part B., Section 2.04 of this Revenue Procedure. No IRS office is authorized to allow deviations from this Revenue Procedure.

.07 This revenue procedure supersedes Rev. Proc. 95–20, 1995–13 I.R.B. (Reprinted as Publication 1141, Revised 3–95).