SEC. 4. FILING — Internal Revenue Bulletin 1998-13

.01 Employers are required to send to IRS quarterly, copies of all Forms W–4 received during the quarter from employees still employed at the end of the quarter who claim the following:

(a) More than 10 withholding allowances, or (b) Exempt status and are expected to earn more than $200 a week. .02 Employers are not required to send other Forms W–4 unless notified by IRS in writing to do so.

March 30, 1998 28 1998–13 I.R.B.

.03 Employers may submit all information magnetically or electronically; or a combination of magnetic/electronic files and paper documents is acceptable, provided there are no duplications or omissions of documents. However magnetic/electronic filing is preferred and strongly encouraged.

.04 A Form W–4 with a written statement attached from the employee must be filed on paper, not on magnetic media. If filing paper Forms W–4, the employer may send them in each quarter with paper Forms 941. If the employer submits the paper Forms W–4 at any time other than quarterly, a cover letter must be submitted giving the employer’s name, address, employer identification number (EIN), and the number of Forms W–4 included.

NOTE: MCC DOES NOT PROCESS PAPER RETURNS. PAPER RETURNS MUST BE FILED WITH THE AP-

PROPRIATE SERVICE CENTER. SEE FORM 941 INSTRUCTIONS FOR THE APPROPRIATE SERVICE CENTER