SEC. 2. SPECIFICATIONS — Internal Revenue Bulletin 1996-32

FORMS 1096 AND COPY A OF FORMS 1098, 1099 AND 5498

.01 The substitute form must be an exact replica of the official IRS reproduction proof with respect to layout and contents. NOTE: To determine the correct form measurements, see Exhibits A through O at the end of this publication. The specifications for Copy A of Forms 1098, 1099 and 5498 are provided in Exhibits A through N, and specifications for Form 1096 are provided in Exhibit O.] Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply. Use of chemical transfer paper for Copy

A is acceptable. The Government Printing Office (GPO) symbol must be deleted.

.02 Color and quality of paper for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 0–25, dated November 29, 1978, must be white 100% bleached chemical wood, optical character recognition (OCR) bond produced in accordance with the following specifications: NOTE: Reclaimed fiber in any percentage is permitted provided the requirements of this standard are met.

(1) Acidity: Ph value, average,

not less than. . . . . . . . . . . . . . . . . . . . . . . .4.5 (2) Basis Weight 17 x 22

500 cut sheets . . . . . . . . . . . . . . . . . . . 18–20 Metric equivalent—g/m ² . . . . . . . . . . . . . . 75 A Tolerance of �5 pct. shall be allowed. (3) Stiffness: Average, each

direction, not less than—milligrams . . . . . . . . . . . . . . . . . . . . 50 (4) Tearing strength: Average,

each direction, not less than—grams . . . . . . . . . . . . . . . . . . . . . . . . 40 (5) Opacity: Average, not less

than—percent . . . . . . . . . . . . . . . . . . . . . . . 82 (6) Thickness: Average—

inch—0.0038

Metric equivalent—

mm—0.097 A tolerance of +0.0005 inch

(0.0127 mm) shall be allowed. Paper shall not vary more than

0.0004 inch (0.0102 mm) from one edge to the other. (7) Porosity: Average, not less

than—seconds . . . . . . . . . . . . . . . . . . . . . . 10 (8) Finish (smoothness): Average,

each side—seconds . . . . . . . . . . . . . . . . 20–5 For information only, the Sheffield equivalent—units . . . . . . . . . . . . . . . 170–100 (9) Dirt: Average, each side,

not to exceed—parts per million . . . . . . . . . . . . . . . . . . . . . . . . . . 8

.03 All printing on Forms 1098, 1099, and 5498 must be in red OCR dropout ink, Flint J–6983 (formerly Sinclair-Valentine) or an exact match, except for the 4-digit form identifying numbers, which must be printed in nonreflective carbon-based black ink. The shaded areas of any substitute form should generally correspond to that present on the official form. Printing on Form 1096 above the statement: ‘‘Please return this entire page to the Internal Revenue Service. Photocopies are NOT acceptable.’’ must be in red OCR dropout ink (except for the 4 digit form identifying number 6969). All printing including and below the statement described in the previous sentence may be in any shade or tone of black ink. Black ink should only appear on the lower portion of the reverse side of

Form 1096 where it would not bleed through and interfere with scanning. The instructions to filers are printed on the back of the copy designated for the Payer, Recipient for 1098, Lender for Form 1099–A, Creditor for 1099–C, Filer for 1099–S, or Trustee or Issuer for Form 5498 in any ink color or tone. Separation between fields must be 0.1 inch. Other than the Form 1099–R, the numbered captions are printed as a solid with no shaded background. Other printing requirements are discussed below.

OCR Specifications

The contractor must have or initiate a quality control program to assure OCR ink density. In addition, the contractor must have access to either a MacBeth PCM–II tester or a Kidder 082A tester to evaluate the ink at regular intervals throughout a shift.

Paper and Ink

Readings will be made when printed on approved 20 lb. white OCR bond with a reflectance of not less than 80%. Black ink used must not have a reflectance greater than 15%. These readings are based on requirements of the ‘‘REI Input 80 Model C1 & D’’ Optical Scanner using Flint Ink (formerly known as Sinclair - Valentine J–6983 red ink) or equal.

MacBeth PCM II Tester

The tested Print Contrast Signal (PCS) values when using the MacBeth PCM–II tester on the ‘‘C’’ scale must range from .01 minimum to .06 maximum.

Kidder 082A Tester

The tested Print Contrast Signal (PCS) values when using the Kidder 082A tester on the Infra Red (IR) scale must range from .12 minimum to .21 maximum. White calibration disc must be 100%, sensitivity must be set at one (1).

Alternative Tester

If an alternative tester is used it must be approved by the Government so that tested (PCS) values can be established with this equipment. Approval may be obtained by writing to the following address:

Commissioner of Internal Revenue Attn: HR:F:P:P Room 1237 Tax Forms Procurement Analyst 1111 Constitution Avenue, N.W. Washington, DC 20224

.04 Typography - Type must be substantially identical in size and shape with corresponding type on the official form. All rules are either 1⁄2-point or 3⁄4-point. Rules must be identical to that on the official IRS form. NOTE: The form identifying number must be nonreflective carbon-based black ink in OCR A Font. .

05 Dimension - Three Forms 1098, 1099, or 5498 (Copy A) are contained on a single page, except Form 1099–R which contains two documents per page, which is 8 inches wide (exclusive of any snap-stubs and/or pinfeed holes) by 11 inches deep. There is a .33 inch top margin from the top of the corrected box, and there is a .25 inch right margin. There is a ¹ ⁄32� (0.0313’’) tolerance for the right margin. These measurements are constant for all Forms 1098, 1099 and 5498 . The measurements will be shown only once in the exhibit section of this publication, on the Form 1098 . Exceptions to these measurements will be shown on the remainder of exhibits. If the right and top margins are properly aligned, the left margin for all forms will be correct. All margins must be free of all printing. See Exhibits A through O in this publication for the correct form measurements.

.06 The depth of the individual trim size of each form on a page must be the same as that of the official form (3 ² ⁄3 inches, except 5 ¹ ⁄2 inches for Form 1099–R). .07 The words ‘‘For Paperwork Reduction Act Notice and instructions for completing this form, see Instructions for Forms 1099, 1098, 5498, and W–2G ’’ must be printed on Copy A (and Copy C). The words ‘‘For more information and the Paperwork Reduction Act Notice, see the Instructions for Forms 1099, 1098, 5498, and W–2G’’ must be printed on Form 1096.

.08 The OMB Number must be printed on Copies A and Form 1096 in the same location as that on the official form.

.09 Privately printed continuous sub- stitute forms (Copy A) must be perfo- rated at each 11 - (3 per page, or 2 per page for 1099–R) page depth. No perfo- rations are allowed between the 3 ² ⁄3 forms (or 5 ¹ ⁄2 - for Form 1099–R) on a single copy page of Copy A.

.10 The words ‘‘ Do NOT Cut or Separate Forms on This Page ’’ must be printed in red dropout ink (as required

by form specifications) between the three, or two for Forms 1099–R . NOTE: Perforations are required between all the other individual copies (Copies B and C, and Copies 1 and 2 for Form 1099–R and Form 1099– MISC, and Copy D for Form 1099–R ) included in the set.

.11 Chemical transfer paper is permitted for Copy A only if the following standards are met:

(1) Only chemically backed paper is acceptable for Copy A.

(2) Carbon coated forms are not permitted. Front and back chemically treated paper cannot be processed properly by machine.

(3) Chemically transferred images must be black in color.

.12 Hot wax and cold carbon spots are NOT permitted for Copy A. Interleaved carbon should be black and must be of good quality to assure legibility of information on all copies to preclude smudging. All copies must be CLEARLY LEGIBLE. Fading must not be of such a degree as to preclude legibility.

.13 Printer’s symbol —- The GPO symbol must not be printed on substitute Copy A. Instead, the employer identification number (EIN) of the forms printer must be entered in the bottom margin on the face of each individual form of Copy A, or the bottom margin on the reverse side of each Form 1096. THE FORM MUST NOT CONTAIN THE STATEMENT ‘‘IRS AP- PROVED .’’

.14 A postal indicia may be used if it meets the following criteria: a) it is printed in the OCR ink color prescribed for the form; and b) no part of the indicia is within 1 print position of the scannable area.

PART C. SPECIFICATIONS FOR SUBSTITUTE FORMS W–2G TO BE FILED WITH IRS