SECTION 1. OTHER COPIES

SECTION 2. OMB REQUIREMENTS SECTION 3. REPRODUCIBLE COPIES SECTION 4. EFFECT ON OTHER

REVENUE PROCEDURES

PART E. EXHIBITS

EXHIBIT A. Form 1098 EXHIBIT B. Form 1099–A EXHIBIT C. Form 1099–B EXHIBIT D. Form 1099–C EXHIBIT E. Form 1099–DIV

(a) Form 1098 Mortgage Interest Statement; (b) Form 1099–A Acquisition or Abandonment of Secured Property; (c) Form 1099–B Proceeds From Broker and Barter Exchange Transactions; (d) Form 1099–C Cancellation of Debt; (e) Form 1099–DIV Dividends and Distributions; (f) Form 1099–G Certain Government Payments; (g) Form 1099–INT Interest Income; (h) Form 1099–LTC Long-Term Care and Accelerated Death Benefits; (i) Form 1099–MISC Miscellaneous Income; (j) Form 1099–MSA Distributions From Medical Savings Accounts; (k) Form 1099–OID Original Issue Discount; (l) Form 1099–PATR Taxable Distributions Received From Cooperatives; (m) Form 1099–R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.; (n) Form 1099–S Proceeds From Real Estate Transactions; (o) Form W–2G Certain Gambling Winnings; (p) Form 5498 IRA, SEP, or SIMPLE Retirement Plan Information; (q) Form 5498–MSA Medical Savings Account Information; and (r) Form 1096 Annual Summary and Transmittal of U.S. Information Returns.

.02 For the purpose of this revenue procedure, a substitute form or statement is one that is not printed by the IRS. For a substitute form or statement to be acceptable to the IRS, it must conform to the official form or the specifications outlined in this revenue procedure. DO

NOT SUBMIT ANY SUBSTITUTE FORMS OR STATEMENTS TO IRS FOR APPROVAL. Private printers may not state ‘‘This is an IRS approved form.’’ Further, only those forms that conform to the official form or comply with the specifications set forth herein

are acceptable. See Part A, Section 7, for the specifications that apply to form recipient statements (generally Copy B).

.03 Filers who make payments to certain persons (payees) (or in some cases receive payments) during a calendar year are required by the Internal

1997-27 I.R.B. 9 July 7, 1997

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. 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: IRP Coordinator - T:S:P:S 1111 Constitution Avenue, NW 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–LTC For Policyholder, Form 1099–S - For Transferor, Other Forms 1099 - For Recipient, Forms 5498 and 5498–MSA 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, Form W–2G - For Winner’s Records and, Form 1099–LTC - For Insured) 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 7.03(1) and composite Form 1099 statements specified in PART A, Section 7.02.

.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 1997 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 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.

Revenue Code (IRC) to file information returns with the IRS reflecting these payments. Further, as discussed below, these filers must provide this information to their payees.

.04 In general, the manner in which a filer must file an information return is governed by section 6011 of the IRC. A filer must file information returns on magnetic media (including electronic filing) or on paper. Under section 6011 of the IRC, a filer who is required to file 250 or more information returns (of any one type) during a calendar year must file those returns on magnetic media. Filers required to file less than 250 returns during a calendar year may, but are not required to, file such information returns on magnetic media (small volume filers). The IRS explains these legal requirements for filing information returns (and providing a copy to a payee) in the annual publication of Instructions for Forms 1099, 1098, 5498, and W–2G.

.05 Copies of the official forms for the reporting year and the instruction booklet may be obtained by calling our toll-free number 1–800–TAX–FORM (1–800–829–3676).

.06 The IRS prints and provides the forms on which various payments must be reported. Alternatively, filers may prepare substitute copies of these IRS forms and use such forms to report payments to the IRS.

.07 IRS operates a centralized call site, located at the Martinsburg Computing Center (MCC), to answer questions related to information returns, penalties, and backup withholding. The call site phone number is 304–263–8700. The number for Telecommunications Device for the Deaf (TDD) is 304–267–3367. These are not toll-free numbers.

.08 IRS has established a personal computer based Information Reporting Program Bulletin Board System (IRPBBS) at MCC. This system provides information about forms and publications, including this revenue procedure, news of the latest changes, answers to questions, and other features. The IRPBBS is available for public use and can be reached by dialing 304–264–7070. The IRP–BBS is compatible with most modems. For more information concerning this system, call MCC at 304–263– 8700 Monday through Friday 8:30 A.M. to 4:30 P.M. eastern time.