SEC. 2. SPECIFICATIONS FOR

FORM 1096 AND COPY A OF FORMS 1098, 1099 AND 5498

.01 The substitute form must be an exact replica of the official IRS form with respect to layout and content. NOTE: To determine the correct form measurements, see Exhibits A through T at the end of this publication. Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply. Use of chemical transfer paper for Copy A is acceptable. The Government Printing Office (GPO) symbol must be deleted.

.02 Color and quality of paper for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 025, dated November 29, 1978, must be white 100% bleached chemical wood, optical character recognition (OCR) bond produced in accordance with the following specifications:

NOTE: Reclaimed fiber in any percentage is permitted provided the requirements of this standard are met.

(1) Acidity: Ph value, average,

not less than . . . . . . . . . . . . . . 4.5 (2) Basis Weight 17 � 22 500

cut sheets . . . . . . . . . . . . . . 18–20 Metric equivalent—g/m ² . . . . . 75 A Tolerance of ±5 pct. shall be allowed. (3) Stiffness: Average, each

direction, not less than— milligrams . . . . . . . . . . . . . . . . 50 (4) Tearing strength: Average,

each direction, not less than— grams . . . . . . . . . . . . . . . . . . . . .40 (5) Opacity: Average, not less

than—percent . . . . . . . . . . . . . . 82 (6) Thickness: Average—inch—

0.0038 Metric equivalent—mm—0.097 A tolerance of +0.0005 inch (0.0127 mm) shall be allowed. Paper shall not vary more than 0.0004 inch (0.0102 mm) from one edge to the other. (7) Porosity: Average, not less

than—seconds . . . . . . . . . . . . . 10 (8) Finish (smoothness): Average,

each side—seconds . . . . . . 20–55 For information only, the Sheffield equivalent— units . . . . . . . . . . . . . . . . 170–100

(9) Dirt: Average, each side,

not to exceed—parts per million . . . . . . . . . . . . . . . . . . . . 8 .03 All printing on Copy A of Forms 1098, 1099, 5498 and the printing on Form 1096 above the statement: “Please return this entire page to the Internal Revenue Service. Photocopies are NOT acceptable.” must be in red OCR dropout ink, Flint J–6983 (formerly SinclairValentine) or an exact match, except for the 4-digit form identifying numbers, which must be printed in non-reflective carbon-based black ink. The shaded areas of any substitute form should generally correspond to that present on the official form. All printing including and below the Form 1096 statement may be in any shade or tone of black ink. Black ink should only appear on the lower portion of the reverse side of Form 1096 where it would not bleed through and interfere with scanning. NOTE: The instructions on the back of Form 1096, which include filing addresses, must be printed. The instructions to filers printed on the back of the copy designated for the Payer, Recipient for Form 1098 and 1098–E, Lender for Form 1099–A, Creditor for Form 1099–C, Filer for Form 1098–T and 1099–S, or Trustee or Issuer for Forms 5498 and Form 5498–MSA, may be printed in any ink color or tone. Separation between fields must be 0.1 inch. Other than the Form 1099–R, the numbered captions are printed as a solid with no shaded background. Other printing requirements are discussed below.

OCR Specifications

The contractor must have or initiate a quality control program to assure OCR ink density. In addition, the contractor must have access to either a MacBeth PCM-II tester or a Kidder 082A tester to evaluate the ink at regular intervals throughout a shift.

Paper and Ink

Readings will be made when printed on approved 20 lb. white OCR bond with a reflectance of not less than 80%. Black ink used must not have a reflectance greater than 15%. These readings are based on requirements of the ”ScanOptics Series 9000” Optical Scanner using Flint Ink (Formerly known as Sinclair – Valentine J–6983 red ink) or equal.

June 29, 1998 12 1998–26 I.R.B.

tion number (EIN) of the forms printer must be entered in the bottom margin on the face of each individual form of Copy A, or the bottom margin on the reverse side of each Form 1096. T HE FORM MUST NOT CONTAIN THE STATE- MENT “IRS APPROVED.”

.14 A postal indicia may be used if it meets the following criteria: a) it is printed in the OCR ink color prescribed for the form; and b) no part of the indicia is within 1 print position of the scannable area.

.15 The Catalog Number (Cat. No.) shown on the 1998 forms is used for IRS distribution purposes and need not be printed on any substitute forms.

PART C. SPECIFICATIONS FOR SUBSTITUTE FORMS W–2G TO BE FILED WITH IRS