SEC. 3. GENERAL RULES FOR

FILING PAPER FORMS W-2

.01 Employers MUST use magnetic media or electronic for filing with the SSA if they prepare and file 250 or more 1999 Forms W-2 (Copy A). This requirement applies unless:

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

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

To request a waiver of the magnetic media or electronic filing requirement, for the current tax year only, submit Form 8508,

Request for Waiver From Filing Informa- tion Returns on Magnetic Media, to:

If by Postal Service: Internal Revenue Service Martinsburg Computing Center 230 Murall Drive Kearneysville, WV 25430

Or, if by truck or air freight:

IRS - Martinsburg Computing Center Magnetic Media Reporting 240 Murall Drive Kearneysville, WV 25430.

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 or electronic 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 or electronically, savings may be obtained if magnetic media or electronic data is used for filing with both the 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 the 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 (or Magnetic Media Reporting and Electronic Filing Publication Number ICN (MMREF-1)).

EMPLOYERS WHO FILE FORM W2 INFORMATION ON MAGNETIC

MEDIA OR ELECTRONICALLY WITH THE SSA MUST NOT SEND THE SAME DATA TO THE 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., 1998 ) contains the specifications and procedures for filing Form W-2 information on magnetic media or electronically with the 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 Employer Service Liaison Officers (ESLO) to obtain the TIB-4 (see list of Employer Service Liiaison Officers’ telephone numbers in the Appendix). The TIB-4 is also on the SSA Online Wage Reporting Bulletin Board System (OWRBBS). The number for the OWRBBS is (410) 966-8450 (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 filing on magnetic media or electronically must file a paper Copy A of Form W-2 with the 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 may design their own statements to give to employees. This applies to employers who file with the SSA on magnetic media, electronically, or on paper. 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 the SSA when the same Form W-2 information is filed electronically or on magnetic media. Therefore, magnetic media or electronic filers who use the official IRS printed form or any other pre

1999–21 I.R.B. 9 May 24, 1999

Form W-3 is now a single cut sheet including only essential filing information. Be sure to make a copy of the complete form for your records.

.04 The bottom of Form W-3 has been redesigned. The “Need Help?” paragraph has been deleted and inserted within the “Instructions for Forms W-2 and W-3.” The “Purpose of Form” and “When To File” paragraphs have been added to restate the purpose of the Form W-3 which can also be found within the “Instructions for Forms W-2 and W-3,” while also providing due date on the actual form itself.

.05 Form W-3 should be used only to transmit paper Forms W-2 (Copy A). Magnetic media or electronic filers do not file Form W-3. Employers submitting magnetic media using the TIB-4 format must transmit Form W-2 data with Form 6559, Transmitter Report and Summary of Magnetic Media, (and Form 6559-A, Continuation Sheet for Form 6559, if necessary). These forms may be obtained by calling either your SSA ESLO (see listing in Appendix) or the IRS at 1-800-8293676. Employers submitting W-2 information electronically using OWRRB need not submit a Form 6559.

PART B. REQUIREMENTS FOR FILING PAPER SUBSTITUTES