SEC. 5. INSTRUCTIONS FOR

PREPARING PAPER FORMS THAT WILL BE FILED WITH THE IRS (Copy A)

.01 The form recipient’s name, street address, city, state, and ZIP code information should be TYPED OR MACHINE PRINTED IN BLACK INK on separate lines. Carbon copies and photocopies are not acceptable. The city, state, and ZIP code must be on the same line.

.02 The name of the appropriate form recipient must be shown on the first or second name line in the area on the form provided for the form recipient’s name and address. No descriptive information or other name may precede the form recipient’s name. Only ONE form recipient’s name may appear on the first name line of the form. If the names of multiple recipients must be set forth on the form, on the first name line insert the recipient name that corresponds to the taxpayer identification number (TIN) used for information reporting purposes. Place the other form recipients’ names, on the succeeding name line (up to 2 name lines are allowable). Because certain states require that trust accounts be provided in a different format, generally filers should provide information returns reflecting payments to trust accounts with (1) the trust’s employer identification number (EIN) in the recipient’s TIN area, (2) the trust’s name on the recipient’s first name line, and (3) the name of the trustee on the recipient’s second name line.

.03 You should use the account number box for an account number designation. This number must not appear anywhere else on the form, and this box may not be used for any other item. Showing the account number is optional. However, it may be to your benefit to include the recipient’s account number or designation on paper documents if your system of records uses the account number or designation in conjunction with, or rather than, the name, social security number, or employer identification number for identification purposes. If you furnish the account number, the IRS will include it in future notices to you about backup withholding. If you use window envelopes and reduced rate mail to mail statements to recipients, be sure the account number does not appear in the window. Otherwise the Postal Service may not accept them for mailing.

.04 Although forms completed in handwriting will be accepted, in order for IRS to process the submitted forms in the most economical manner, the IRS prefers that filers TYPE OR MACHINE PRINT data entries. In addition, filers should insert data in the middle of blocks well separated from other printing and guidelines, and take other measures to guarantee a clear, dark black, sharp image.

.05 Machine printed forms should be printed using a 6 lines/inch option.

.06 Machine printed forms should be printed in 10 pitch pica ( i.e., 10 print positions per inch) or 12 pitch elite ( i.e., 12 print positions per inch). Proportional spaced fonts are unacceptable.

.07 To correct returns, enter an ‘‘X’’ within the checkbox located at the top of the form making the correction, to the left of the word ‘‘CORRECTED.’’ DO NOT type the words CORRECTED RETURN on the Form 1096, 1098, 1099, 5498, or W–2G. See ‘‘Corrected Returns’’ in the 1996 ‘‘Instructions for Forms 1099, 1098, 5498, and W–2G.’’

.08 If you make an error while typing or printing a Form 1098, 1099, or 5498, enter an ‘‘X’’ in the ‘‘VOID’’ box at the top of the form. An entry in the ‘‘VOID’’ box will not correct previously filed information returns. See ‘‘Void Returns’’ in the 1996 ‘‘Instructions for Forms 1099, 1098, 5498, and W–2G.’’

.09 DO NOT use a felt tip marker. The machine used to ‘‘read’’ paper forms generally cannot ‘‘read’’ this ink type.

.10 Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single sheet before they are filed with IRS. The size specified does not include pinfeed holes . Pinfeed holes MUST NOT be present on forms filed with the IRS.

.11 Use decimal points to indicate dollars and cents. DO NOT use dollar signs ($), ampersands (&), asterisks (*), commas (,), or other special characters in the numbered money boxes. Example: 2000.00 is acceptable. .12 DO NOT FOLD Forms 1096, 1098, 1099, or 5498 being mailed to IRS. Mail these forms flat in an appropriately sized envelope or box. Folded documents cannot be readily moved through the scanner transport used in IRS processing.

.13 DO NOT STAPLE Forms 1096 to the returns being transmitted. Staple holes in the vicinity of the return code

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number reduce the IRS’s ability to machine scan the type of documents.

.14 DO NOT type other information on Copy A. DO NOT cut or separate the individual forms on the sheet of forms of Copy A (except Forms W–2G).

.15 MAIL completed paper forms to the IRS service center specified on the back of Form 1096 and in the 1996 ‘‘Instructions for Forms 1099, 1098, 5498, and W–2G.’’ CAUTION: SEE NEW ‘‘WHERE TO FILE’’ ADDRESSES, for tax year 1995. Specific information needed to complete the forms in this revenue procedure is given in those instructions. A chart is included in those instructions giving a quick guide to which form must be filed to report a particular payment.