SECTION 1. OTHER COPIES

SECTION 2. OMB REQUIRE

PREPARING PAPER FORMS THAT WILL BE FILED WITH THE IRS (COPY A) SECTION 6. RESERVED SECTION 7. SUBSTITUTE STATE

PART E. EXHIBITS

EXHIBIT A. Form 1098 EXHIBIT B. Form 1098–E EXHIBIT C. Form 1098–T

COPIES SECTION 4. EFFECT ON OTHER

REVENUE PROCEDURES

MENTS TO FORM RECIPIENTS AND FORM RECIPIENT COPIES

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

June 29, 1998 6 1998–26 I.R.B.

.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 AP- PROVAL. 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 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 except Form 1098–T) 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. In addition, procedures are contained in Publication 1220, “Specifications for Filing Forms 1098, 1099, 5498, and W–2G Electronically.” .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, in Martinsburg, West Virginia, 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). This system provides information about forms and publications, including this revenue procedure, news of the latest changes, answers to questions, and other features. The IRP-BBS 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 304- 263-8700 Monday through Friday 8:30 A.M. to 4:30 P.M. eastern time.