SEC. 14. COMPUTER GENERATED

ALTERNATIVE RETURNS, FORM 1040PC FORMAT RETURN

.01 The Internal Revenue Service is offering a new approach for filing individual income tax returns. The 1040PC Format Return is an alternative to the conventional preprinted tax return. The 1040PC is an answer sheet return, generated on a personal computer, in threecolumn format that prints only tax data that is input into the software. Tax returns are filed by tax preparers and taxpayers using commercially available tax preparation software packages that include the 1040PC Format Return print option.

1 1040PC Format Returns are computer-prepared, printed on plain white paper, signed and mailed to the designated processing center and are processed like any other conventionally filed return.

2 Preparers, or taxpayers, must purchase IRS accepted tax preparation software packages that include the 1040PC print option. All that is necessary to participate in 1040PC is a personal computer, accepted software, a printer, and plain white paper. 1040PC is attractive to tax preparers and taxpayers who might not be interested or capable of Electronic Filing.

3 The Direct Deposit option is available to taxpayers filing 1040PC returns. Balance due returns may also be filed using 1040PC. The payment may be forwarded to the Service Center with a separate payment voucher (Form 1040– V).

4 All software used to generate the 1040PC Format Return must be tested and accepted by the Internal Revenue Service. Testing will validate 1040PC returns generated by the software and that the software program is in compliance with validity and consistency checks in the IRS 1040PC Project specifications. Software developers who wish

to participate in the 1040PC program must submit Form 9356, Application for Software Developers to Participate in the 1040PC Answer Sheet for Individual Income Tax Returns, to the 1040PC Filing Section.

5 Upon successful completion of software acceptance testing, the software developer will be issued a software acceptance code that will be embedded into the software and print on every 1040PC return generated. This is not the same as the Forms Approval Number which is referenced in Part A, Section 8, or the approval number which is generated for OCR Scannable Application Forms for Employee Plans in Part B, Section 19.

6 The Internal Revenue Service believes that 1040PC will prove beneficial to taxpayers, tax preparers, and the Service. For specific information about the alternative computer generated 1040PC Format Return, refer to Publication 1678, Project 1040PC, Handbook for 1040PC Format Preparers and Publication 1630, Project 1040PC, Specifications for Software Developers. You may also call (202) 283–0180 or write:

Internal Revenue Service 1040PC Filing Office, T:S:P:I 1111 Constitution Ave. NW Washington, DC 20224