SEC. 2. NATURE OF CHANGES

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

.02 The phone number for the Information Reporting Bulletin Board System (IRP–BBS) has been changed. See Part A, Sec. 1.08.

.03 On Form 5498, new box 5 (check box for simplified employee pension (SEP)) was added. See Exhibit N.

.04 A statement regarding the acceptance of handwritten forms has been added to Part A, Section 5.04.

.05 A note requesting that a phone number be included on statements to recipients has been added to Part A, Sections 7.01(7) and 7.02(2).

.06 A note referring to the correct form measurements has been added to Part B, Sec. 2.01.

.07 The note regarding new verbiage for paper and ink specifications for substitute forms has been deleted from Part B, Sec. 2.02. The current specifications are applicable to our new OCR equipment. Therefore, it is not necessary to change the current specifications. .08 New procedures for obtaining Reproducible copies were added to Part D, Sec. 3.

SEC. 3 REQUIREMENTS FOR ACCEPTABLE SUBSTITUTE FORMS 1096, 1098, 1099, 5498, and W–2G

.01 Paper substitutes for Form 1096 and Copy A of Forms 1098, 1099, 5498, and W–2G that totally conform to the specifications contained in this revenue

procedure may be privately printed and filed as returns with the IRS. The reference to the Department of the Treasury Internal Revenue Service should be included on all such forms. The Catalog Number (Cat. No.) shown on the 1996 Forms 1096, 1098, 1099, 5498, and W–2G is used for IRS distribution purposes and need not be printed on any substitute forms.

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, giving your understanding and interpretation of the specification, and enclosing an example of the form (if appropriate) to:

Internal Revenue Service ATTN: T:S:P:S - SAL (IRP Coordinator) 1111 Constitution Avenue, N.W. Washington, DC 20224 NOTE: Allow at least 45 days for the IRS to respond.

.02 Copy B (Form 1098 - For Payer, Form 1099–A - For Borrower, Form 1099–C - For Debtor, Form 1099–S For Transferor, Other Forms 1099 - For Recipient, Form 5498 - For Participant, and Forms W–2G and 1099–R - To Be Attached To the Federal Tax Return), and Copy C- (Form 1099–R For Recipient’s Records and Form W–2G For Winner’s Records) must contain the information specified in PART A Section 7 in order to constitute a ‘‘statement’’ or ‘‘official form’’ under the applicable provisions of the Internal Revenue Code. The format of this information is at the discretion of the filer with the exception of the location of the tax year, form number and form name specified in Part A Section 7.01(6) and composite Form 1099 statements specified in PART A Sections 7.02 and 7.04.

.03 Forms 1096, 1098, 1099, 5498, and W–2G are subject to annual review and possible change. Therefore, filers are cautioned against overstocking supplies of privately printed substitutes. THE SPECIFICATIONS CONTAINED IN THIS REVENUE PROCEDURE APPLY TO 1996 FORMS ONLY.

.04 Proposed substitutes for Copy A that do not conform to the specifications in this revenue procedure are not acceptable. Further, if you file such forms with IRS, you may be subject to a penalty for failure to file an information return under section 6721 of the Internal Revenue Code (IRC). Generally, the penalty is $50 for each failure to file a form (up to $250,000) that the IRS cannot accept

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as a return because it does not meet the provisions in this revenue procedure. No IRS office is authorized to allow deviations from this revenue procedure.