SEC. 3. GENERAL RULES FOR

FILING FORMS W–2

.01 Employers MUST use magnetic media for filing with SSA if they prepare and file 250 or more 1998 Forms W–2 (Copy A). This requirement applies unless:

1 The employer can establish that filing on magnetic media will result in undue hardship, AND

2. The employer is granted a waiver of the requirement by IRS.

To request a waiver of the magnetic media filing requirement, for the current tax year only, submit Form 8508, Request for Waiver From Filing Information Re- turns on Magnetic Media, to:

If by Postal Service:

Internal Revenue Service Martinsburg Computing Center

May 11, 1998 8 1998–19 I.R.B.

P.O. Box 1359 Martinsburg, WV 25402 -1359

Or, if by truck or air freight:

IRS – Martinsburg Computing Center Magnetic Media Reporting Route 9 and Needy Road Martinsburg, WV 25401.

Forms may also be FAXED to the IRS/MCC at (304) 264-5602.

Form 8508 may be obtained through electronic options on the Internet at http://www.irs.ustreas.gov, or by calling 1-800-829-3676. Form 8508 also may be obtained directly from the IRS Martinsburg Computing Center (IRS/MCC) at the above address or by calling (304) 2638700 (not a toll-free number). The number for Telecommunication Device for the Deaf (TDD) is (304) 267-3367 (not a tollfree number). It is recommended that completed requests for waivers (Form 8508) be submitted at least 45 days before but no later than the due date of the return (see Sec. 3.06, below). The requestor will receive an approval or denial letter from IRS, but must allow at least 30 days for IRS to respond. If you have any questions concerning Form 8508, contact IRS/MCC at the address or phone number shown above. Employers who do not comply with the magnetic media filing requirements for Form W–2 and who are not granted a waiver may be subject to certain penalties. Since many states and local governments accept Form W–2 data on magnetic media, savings may be obtained if magnetic media is used for filing with both SSA and state or local governments. In many instances, the state or local government is willing to accept the data format specifications set out in SSA’s Technical Information Bulletin (TIB) No. 4, Magnetic Media Reporting. You must contact each individual state or local taxing agency to receive approval and make arrangements to file on magnetic media.

EMPLOYERS WHO FILE FORM W–2 INFORMATION ON MAGNETIC MEDIA WITH SSA MUST NOT SEND THE SAME DATA TO SSA ON PAPER FORMS W–2. This would result in duplicate reporting and may subject the filer to an unnecessary contact by the IRS.

.02 TIB–4, Magnetic Media Reporting, Submitting Annual W–2 Copy A Informa-

tion to the Social Security Administration, (SSA Pub. No. 42–007, revised Oct., 1997 ) contains the specifications and procedures for filing Form W–2 information on magnetic media with SSA. Specifications for both tape and diskette reporting for Forms W–2 are included in the TIB-4.

.03 TIB–4 may be obtained by writing to:

Social Security Administration OCO, DES Attn: Employer Reporting Services Center 300 North Greene Street Baltimore, MD 21201.

Employers may call their local SSA Magnetic Media Coordinator (MMC) to obtain the TIB–4 (see list of Magnetic Media Coordinators’ telephone numbers in the Appendix). The TIB–4 is also on the SSA Annual Wage Reporting Bulletin Board System (AWRBBS). The number for the AWRBBS is (410) 965-1133 (not a toll-free number ). Employers using magnetic media are cautioned to obtain the most recent revision of the TIB–4 and supplements due to possible changes in the specifications and procedures.

.04 Employers not using magnetic media must file a paper Copy A of Form W–2 with SSA on either the IRS printed official form or a privately printed substitute paper form that exactly meets the specifications shown in Parts B and C.

.05 Employers can design their own statements to give to employees. This applies to both employers who file with SSA either on magnetic media or paper Forms W–2, Copy A. Employee statements designed by employers must comply with the requirements shown in Parts B and C, below. NOTE: Copy A must not be filed on paper with SSA when the same Form W–2 information is filed on magnetic media. Therefore, magnetic media fil- ers who use the official IRS printed form or any other pre-printed form are advised not to print Copy A, or to dis- card a printed Copy A, to prevent du- plicate information from being submit- ted to SSA.

.06 If you are terminating your busi- ness, you must provide your employees with Forms W–2 on or before the due date of the business filing its final Form 941. Employers must also file Forms

W–2 and W–3 with SSA on or before the last day of the month following the due date of the final Form 941. See Rev. Proc. 96–57, Automatic Extensions for Forms W–2, Internal Revenue Cu- mulative Bulletin 1996–2 page 389, dated 12/30/96, for more information.

Note: Use of a reporting agent or other third-party payroll service provider does not relieve an employer of the responsibility to ensure that tax and information returns are sent out and/or filed correctly and on time.

.07 1998 Forms W–2, whether filed on magnetic media or paper, must be submitted to SSA on or before March 1, 1999. In addition, the employee copies must be furnished to the employee on or before February 1, 1999. If employment ended before December 31, 1998, the employee may be furnished his/her copy any time after employment ends, but no later than February 1, 1999. However, if the employee requests Form W–2, you must furnish him or her the completed copies within 30 days of the request or of the final wage payment, whichever is later. This requirement is met if the form is properly addressed, mailed, and postmarked on or before the due date. Failure to timely file with SSA or to timely provide the employee copies may subject the employer to penalties. Employers needing additional time to file Form W–2 information (paper or magnetic media) with SSA may request an extension of time to file by submitting Form 8809, Request for Extension of Time to File Information Returns, to the IRS/MCC at the address (or alternative address) listed in Sec. 3.01, above. The extension request should be filed as early as possible, but must be postmarked no later than the due date of the forms ( March 2, 1999 ). DO NOT SEND FORM 8809 TO SSA.

NOTE: APPROVAL OF THE EXTENSION IS NOT AUTOMATIC. Approval or denial is based on administrative criteria and guidelines. The requestor will receive an approval or denial letter from IRS and must allow at least 30 days for IRS to respond. You do not have to wait for a response before filing your return. File your return as soon as they are ready. If you have received a response, do not send a copy of the letter or Form 8809 with your return. Form 8809 may be obtained through electronic options on the

1998–19 I.R.B. 9 May 11, 1998

Internet at http://www.irs.ustreas.gov; by modem to IRIS (703) 321-8020; or by using the IRS Fax Forms Program (703) 487-4160, or by calling 1-800-829-3676. You can also contact IRS/MCC (See the address and phone number in Sec. 3.01, above).

.08 If requesting extensions of time for more than 10 employers, IRS encourages filers to submit the request on tape, tape cartridge, 5 ¹ ⁄4 or 3 ¹ ⁄2-inch diskette, or electronically through the Information Reporting Program Bulletin Board System (IRP–BBS). Transmitters request- ing an extension of time to file more than 50 payers are required to file the extension request on magnetic media or electronically. Transmitters who submit requests for multiple payers will receive one approval letter with an attached list of payers covered under that approval. Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W–2G Magnetically or Electronically, provides information on how to file requests for extensions of time on tape, tape cartridge/quarter inch cartridge, diskette, or electronically. NOTE: To file a request for extensions of time magnetically or electronically for multiple payers, third party filers and transmitters, must have an IRS Transmitter Control Code (Authoriza- tion to file information returns).