If by Postal Service, truck or air freight: v

IRS-Martinsburg Computing Center Information Reporting Program Attn: Extension of Time Coordinator 240 Murall Drive Kearneysville, WV 25430

.07 Requests for extensions of time for multiple payers will be responded to with one approval letter, accompanied by a list of payers covered under that approval.

.08 As soon as it is apparent that a 30-day extension of time to file is needed, Form 8809 may be submitted. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of time could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days.

.09 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an extension of time to file several types of forms, use one Form 8809; however, the Form 8809 must be postmarked no later than the earliest due date. For example, if requesting an extension of time to file both Forms 1099-INT and 5498, submit Form 8809 postmarked on or before February 28, 2000. (See NOTE: ) Complete more than one Form 8809 to avoid this problem.

NOTE: For Tax Year 1999, if you will be filing Forms 1098, 1099, or W-2G electronically, the Form 8809 is not required un- less an extension beyond March 31, 2000.

• Internal Revenue Code Section 6071(b) eliminates the necessity for electronic filers of the information returns to which this provision applies (Forms 1098, 1099, W-2G) to request an extension of the filing date from February 28 to March 31, effective for returns required to be filed after December 31, 1999.

1999–31 I.R.B. 149 August 2, 1999

.10 If an additional extension of time is needed, a second Form 8809 must be filed by the initial extended due date. Check line 7 on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event. If requesting a second 30-day extension of time, submit the information return files as soon as prepared. Do not wait for MCC’s response to your second extension request.

.11 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for an extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper returns are filed.

.12 Request an extension for only one tax year. .13 The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other document for the payer.

.14 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.

.15 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676). The form is also available on the IRS Inter- net Web Site www.irs.ustreas.gov . A copy of the Form 8809 is also provided in the back of the Publication 1220.

.16 Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W-2G, W-2 series of forms, and 1042-S by submitting a letter to IRS/MCC at the address listed in .06 of this section. The letter should contain the following information:

(a) Payer name (b) TIN (c) Address (d) Type of return (e) Specify that the extension request is to provide statements to recipients. (f) Reason for delay (g) Signature of payer or person duly authorized Requests for an extension of time to furnish the statements to recipients for Forms 1098, 1099, 5498, W-2G, W-2 series of forms, and 1042-S are not automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days from the due date to furnish the statements to the recipients. The request must be postmarked by the date on which the statements are due to the recipients.

Sec. 12. Processing of Information Returns Magnetically/Electronically

.01 All data received at IRS/MCC for processing will be given the same protection as individual income tax returns (Form 1040). IRS/MCC will process the data and determine if the records are formatted and coded according to this revenue procedure.

.02 If the data is formatted incorrectly, the magnetic media will be returned for replacement accompanied by a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the media, therefore, requiring a replacement. Open all packages immediately.

.03 Magnetic media files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of the letter IRS/MCC included with the returned files. Refer to Part C, Section 6, for procedures for correcting files submitted electronically. A penalty for failure to file correct information returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if the incorrect files are returned by IRS/MCC for replacement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received. (For penalty information, refer to the Penalty section of the 1999 “Instructions for Forms 1099, 1098, 5498, and W-2G.”)

.04 Sample records identifying errors encountered will be provided with the returned media. It is the responsibility of the transmitter to check the entire file for similar errors.

.05 The following definitions have been provided to help distinguish between a correction and a replacement:

• A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by IRS/MCC, but contained erroneous information..

Note: Corrections should only be made to records that have been submitted incorrectly, not the entire file.

• A replacement is an information return file that IRS/MCC has returned to the transmitter due to errors encountered during processing. After necessary changes have been made, the file must be returned for processing along with the Media Tracking Slip Form 9267) which was included in the shipment from IRS/MCC. (See Note ). Note: Filers should never send anything to IRS/MCC marked “Replacement” unless IRS/MCC returned media to

them.

.06 IRS/MCC will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/MCC received a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery. Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.

August 2, 1999 150 1999–31 I.R.B.

.07 IRS/MCC will work with filers as much as possible to assist with processing problems. If the filer is contacted by IRS/MCC, a prompt response is important. IRS/MCC may have information that the filer needs to correct his or her file.

.08 IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers who submit data with missing TINs and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A) or penalties for missing or incorrect TINs.

Sec. 13. Corrected Returns

.01 The magnetic media filing requirement of information returns of 250 or more applies separately to both original and corrected returns.

E X A M

P L E

If a payer has 100 Forms 1099-A to be corrected, they can be filed on paper since they fall under the 250 threshold. However, if the payer has 300 Forms 1099-B to be corrected, they must be filed magnetically or electronically since they meet the 250 threshold. If for some reason a payer cannot file the 300 corrections on magnetic media, to avoid penalties, a request for a waiver must be submitted before filing on paper. If a waiver is approved for original documents, any corrections for the same type of return will be covered under this waiver.

.02 Corrections should be filed as soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of $50 per return. Corrections filed by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalty section of the 1999 “Instructions for Forms 1099, 1098, 5498, and W-2G.”) However, if payers discover errors after August 1, they may still be required to file corrections so they will not be subject to a penalty for intentional disregard of the filing requirements. Failure to correct information returns may result in penalties for failure to provide correct information. All fields must be com- pleted with the correct information, not just the data fields needing correction. Submit corrections only for the returns filed in error, not the entire file. Furnish corrected statements to recipients as soon as possible.

.03 There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error. If the original return was filed as an aggregate, the filers must consider this in filing corrected returns.

.04 Corrected returns may be included on the same medium as original returns; however, separate “A” Records are required. Corrected returns must be identified on the Form 4804 and the external media label by indicating “Correction.” If filers discover that certain information returns were omitted on their original file, they must not code these documents as corrections. The file must be coded and submitted as originals.

.05 If a payer discovers errors for prior years that affect a large number of payees, in addition to sending IRS the corrected returns and notifying the payees, a letter containing the following information should be sent to IRS/MCC:

(a) Name and address of payer (b) Type of error (please explain clearly) (c) Tax year (d) Payer TIN (e) TCC (f) Type of Return (g) Number of Payees This information will be forwarded to the appropriate office in an attempt to prevent erroneous notices from being sent to the payees. The correction must be submitted on an actual information return document or filed magnetically/electronically. Provide the correct tax year in Block 2 of the Form 4804 and on the external media label.

.06 Prior year data, original and corrected, must be filed according to the requirements of this revenue procedure. If submitting prior year corrections, use the record format for the current year and submit on separate media. However, use the actual year designation of the correction in Field Positions 2-5 of the “T”, “A”, and “B” Records. If filing electronically, a separate transmission must be made for each tax year.

.07 In general, filers should submit corrections for returns filed within the last 3 calendar years [4 years if the payment is a reportable payment subject to backup withholding under section 3406 of the Code and also for Form 1099-C, Cancellation of Debt under section 1.6050P–1(e)(7)].

.08 All paper returns, whether original or corrected, must be filed with the appropriate service center. .09 Form 4804 and Form 4802 (if applicable), must be submitted with corrected files submitted magnetically or electronically. .10 The “B” Record provides a 20-position field for the Payer’s Account Number for the Payee. This number will help identify the appropriate incorrect return if more than one return is filed for a particular payee. Do not enter a TIN in this field. A payer’s account number for the payee may be a checking account number, savings account number, serial number, or any other number assigned to the payee by the payer that will distinguish the specific account. This number should appear on the initial return and on the corrected return in order to identify and process the correction properly.

1999–31 I.R.B. 151 August 2, 1999

.11 The record sequence for filing corrections is the same as for original returns. .12 Review the chart that follows. Errors normally fall under one of the two categories listed. Next to each type of error made is a list of instructions on how to file the corrected return.

Guidelines for Filing Corrected Returns Magnetically/Electronically

Error Made on the Original Return How To File the Corrected Return

Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both Trans- actions 1 and 2. (See Note 1)

1. Original return was filed with one or more of the Transaction 1: Identify incorrect returns following errors: A . Prepare a new Form 4804/4802 that includes information re

lated to this new file. (a) No payee TIN (SSN, ITIN, or EIN) B. Mark “Correction” in Block 1 of Form 4804. (b) Incorrect payee TIN C. Prepare a new file. The first record on the file will be the (c) Incorrect payee name Transmitter “T” Record. (d) Wrong type of return indicator D. Make a separate “A” Record for each type of return and

each payer being reported. The information in the “A” record will be exactly the same as it was in the original submission with one exception; the Correction File Indicator (Field Position 50), will be set to “1” . E. The Payee “B” Records must contain exactly the same in formation as submitted previously, except, insert a Corrected Return Indicator Code of “G” in Field Position 6 of the “B” Records, and for all payment amounts, enter “0” (zeros). F. Corrected returns submitted to IRS/MCC using “G” coded

“B” Records may be on the same file as those returns submitted with a “C” code; however, separate “A” Records are required. G. Prepare a separate “C” Record for each type of return and

each payer being reported. H. Continue with Transaction 2 to complete the correction.

Transaction 2: Report the correct information

A. Make a separate “A” Record for each type of return and

each payer being reported. The Correction File Indicator (Field Position 50), must be set to “1” (one). B. The Payee “B” Records must show the correct information

as well as a Corrected Return Indicator Code of “C” in Field Position 6. C. Corrected returns submitted to IRS/MCC using “C” coded

“B” Records may be on the same file as those returns submitted with “G” codes; however, separate “A” Records are required. D. Prepare a separate “C” Record for each type of return and

each payer being reported. E. The last record on the file will be the End of Transmission

“F” Record. F. Indicate “Correction” on the external media label. Note 1: Payers who can show they have reasonable cause (defined in the regulations under section 6724 of the Internal Revenue Code) are not required to make corrections for returns filed with a missing or incorrect name and/or TIN. These payers should change their records in order to submit correct information in the future. Payers who cannot show reasonable cause are encouraged to make corrections for the current processing year by August 1 to reduce applicable penalties. Cor- rections filed by August 1 will reduce the $50 per return penalty for filing returns with missing or incorrect information to $30. The penalty is further reduced to $15 per return if the corrections are filed within 30 days of the due date. (For penalty information, refer to the Penalty section of the 1999 “Instructions for Forms 1099, 1098, 5498, and W-2G.”) Corrections filed after August 1 will not reduce the penalty but will allow IRS to update the payee’s records. The regulations for section 6724 are available in Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect

August 2, 1999 152 1999–31 I.R.B.

Name/TINs. The publication may be obtained by calling 1-800-TAX-FORM (1-800-829-3676) or from the IRS Internet Web Site www.irs.ustreas.gov.

One transaction is required to make the following corrections properly (See Note 2).

2. Original return was filed with one or more of the A. Prepare a new Form 4804/4802 that includes information following errors: relating to this new file. (a) Incorrect payment the Payer “A” Record B. Mark “Correction” in Block 1 of Form 4804. the Payer “A” Record C. Prepare a new file. The first record on the file will be the (b) Incorrect payment amounts in the Payer “B” Record Transmitter “T” Record. (c) Incorrect code in the Distribution Code field in D . Make a separate “A” Record for each type of return and the Payee “B” Record each payer being reported. Information in the “A” Record (d) Incorrect payee address may be the same as it was in the original submission. How**(e)** Incorrect Direct sales indicator ever, the Correction File Indicator (Field Position 50) must be set to “1” (one). E. The Payee “B” Records must show the correct record information as well as a Corrected Return Indicator Code of “G” in Field Position 6. F. Corrected returns submitted to IRS/MCC using “G” coded “B” Records may be on the same file as those returns submitted without the “G” coded “B” Records; however, sep- arate “A” Records are required. G. Prepare a separate “C” Record for each type of return and

each payer being reported. H. The last record on the file will be the End of Transmission

“F” Record. I. Indicate “Correction” on the external media label.

Note 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, two transactions will be required. If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns on the same media, each category must be reported under separate “A” Records.

Sec. 14. Taxpayer Identification Number (TIN)

.01 Section 6109 of the Internal Revenue Code requires a person to furnish his/her TIN to the person obligated to file the information return.

.02 The payee’s TIN and name combination is used to associate information returns reported to IRS/MCC with corresponding information on tax returns. It is imperative that correct Taxpayer Identification Numbers (TINs) for payees be provided to IRS/MCC. Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.

.03 The payer and payee names with associated TINs should be consistent with the names and TINs used on other tax returns. Also, the name and TIN provided must belong to the owner of the account. If the account is recorded in more than one name, furnish the name and TIN of one of the owners of the account. The TIN provided must be associated with the name of the payee provided in the first name line of the “B” Record. For individuals, the payee TIN is generally the payee’s Social Security Number (SSN). For other entities, the payee TIN is the payee’s Employer Identification Number (EIN). The payee TIN may also refer to an Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN). For sole proprietors, the payee TIN may be either an SSN or EIN but the sole proprietor’s name (not the business name) must be used on the first name line and the SSN is preferred.

.04 Failure to provide the correct name and corresponding TIN could result in a penalty and/or backup withholding notice (sometimes referred to as a “B” Notice).

.05 The following charts will help payers determine the TIN to be furnished to IRS/MCC for those persons for whom they are reporting information (payees).

1999–31 I.R.B. 153 August 2, 1999

Chart 1. Guidelines for Social Security Numbers

In the Taxpayer Identification Number Field of In the First Payee the Payee “B” Name Line of the For this type of Record, enter the Payee “B” Record, account SSN of- enter the name of

1. Individual The individual The individual

2. Joint account (two The actual owner The individual or more individuals, of the account or, whose SSN is including husband and if combined funds, entered wife) the first individual on the account

3. Custodian account The minor The minor of a minor (Uniform Gift, or Transfers, to Minors Act)

4. The usual revocable The grantor-trustee The grantor-trustee savings trust account trustee (grantor is also trustee)

5. A so-called trust The actual owner The actual owner account that is not a legal or valid trust under state law

6 . Sole proprietorship The owner The owner, not the business name (The (an SSN or EIN) filer may enter the business name on the second name line.)

Chart 2. Guidelines for Employer Identification Numbers

In the Taxpayer Identification Number Field of In the First Payee the Payee “B” Name Line of the For this type Record, enter the Payee “B” Record, of account- EIN of- enter the name of

1. A valid trust, estate, or pension trust The legal entity ¹ The legal trust, estate, or pension trust

2. Corporate The corporation The corporation

3. Association, club, The organization The organization religious, charitable, educational, or other tax-exempt organization

4. Partnership account The partnership The partnership held in the name of the business

1 Do not furnish the identification number of the personal representative or trustee unless the name of the representative or trustee is used in the account title.

August 2, 1999 154 1999–31 I.R.B.

Chart 2. Guidelines for Employer Identification Numbers—Continued

In the Taxpayer Identification Number Field of In the First Payee the Payee “B” Name Line of the For this type Record, enter the Payee “B” Record, of account- EIN of- enter the name of

5. A broker or The broker or The broker or registered nominee/ nominee/middleman nominee/middleman middleman

6. Account with Department of The public entity The public entity Agriculture in the name of a public entity (such as a state or local government, school district, or prison), that receives agriculture program payments

7. Sole proprietorship The business The owner, not the business name (The (an EIN or SSN) filer may enter the business name on the second name line.)

Sec. 15. Effect on Paper Returns and Statements to Recipients

.01 Magnetic/electronic reporting of information returns eliminates the need to submit paper documents to the IRS. CAUTION: Do not send Copy A of the paper forms to IRS/MCC for any forms filed on magnetic media or electronically. This will result in duplicate filing; therefore, erroneous notices could be generated.

.02 Payers are responsible for providing statements to the payees as outlined in the 1999 “Instructions for Forms 1099, 1098, 5498, and W-2G.” Refer to those instructions for filing information returns on paper with the IRS and furnishing statements to recipients.

.03 Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifications and guidelines in Publication 1179, “Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, and W-2G.”

Sec. 16. Combined Federal/State Filing Program

.01 The Combined Federal/State Filing (CF/SF) Program was established to simplify information returns filing for the taxpayer. IRS/MCC will forward this information to participating states free of charge for approved filers. Separate reporting to those states is not necessary. The following information returns may be filed under the Combined Federal/State Filing Program:

Form 1099-DIV — Dividends and Distributions Form 1099-G — Certain Government and Qualified State Tuition Program Payments Form 1099-INT — Interest Income Form 1099-MISC — Miscellaneous Income Form 1099-OID — Original Issue Discount Form 1099-PATR — Taxable Distributions Received from Cooperatives Form 1099-R — Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Form 5498 — IRA Contribution Information The following information returns may not be filed under this program:

Form 1098 — Mortgage Interest Statement Form 1098-E — Student Loan Interest Statement Form 1098-T — Tuition Payments Statement Form 1099-A — Acquisition or Abandonment of Secured Property Form 1099-B — Proceeds From Broker and Barter Exchange Transactions Form 1099-C — Cancellation of Debt Form 1099-LTC — Long-Term Care and Accelerated Death Benefits Form 1099-MSA — Distributions From an MSA or Medicare+Choice MSA

1999–31 I.R.B. 155 August 2, 1999

Form 1099-S — Proceeds From Real Estate Transactions Form 5498-MSA — MSA or Medicare+Choice MSA Information Form W-2G — Certain Gambling Winnings .02 To request approval to participate, a magnetic media test file coded for this program must be submitted to IRS/MCC between November l, 1999, and December 15, 1999. Electronic test files must be submitted between November 1, 1999, and January 31, 2000. .03 Attach a letter to the Form 4804 submitted with the test file to indicate a desire to participate in the Combined Federal/State Filing Program.

.04 A test file is only required for the first year. Each record, both in the test and the actual data file, must conform to this revenue procedure.

.05 If the test file is acceptable, IRS/MCC will send the filer an approval letter, and a Form 6847, Consent for Internal Revenue Service to Release Tax Information, which the payer must complete, sign, and return to IRS/MCC before any tax information can be released to the state. Filers must write their TCC on Form 6847.

.06 If the test file is not acceptable, IRS/MCC will return the media with a letter indicating the problems. The new test file must be returned to IRS/MCC no later than December 15.

.07 A separate Form 6847 is required for each payer. A transmitter may not combine payers on one Form 6847 even if acting as Attorney-in-Fact for several payers. Form 6847 may be computer-generated as long as it includes all information that is on the original form or it may be photocopied. If the Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must clearly indicate that the Attorney-in-Fact is empowered to authorize release of the information.

.08 Only code the records for participating states and for those payers who have submitted Form 6847. .09 Some participating states require separate notification that the payer is filing in this manner. Since IRS/MCC acts as a forwarding agent only, it is the payer’s responsibility to contact the appropriate states for further information.

.10 All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states. .11 Participating states and corresponding valid state codes are listed in Table 1 of this section. The appropriate state code must be entered for those documents that meet the state filing requirements; do not use state abbreviations.

.12 To simplify filing, some of the participating states have provided their information return reporting requirements (see Table 2). Each state’s filing requirements are subject to change by the state. It is the payer’s responsibility to contact the partici- pating states to verify the criteria provided in this table.

.13 Upon submission of the actual files, the transmitter must be sure of the following:

(a) All records should be coded exactly as required by this revenue procedure. (b) The “C” Record must be followed by a State Totals “K” Record for each state being reported. (c) Payment amount totals and the valid participating state code must be included in the State Totals “K” Record. (d) The last “K” Record must be followed by an “A” Record or an End of Transmission “F” Record (if this is the last record of

the entire file).

Table 1. Participating States and Their Codes

State Code State Code State Code

Alabama 01 Idaho 16 Missouri 29 Arizona 04 Indiana 18 Montana 30 Arkansas 05 Iowa 19 New Jersey 34 California 06 Kansas 20 New Mexico 35 Delaware 10 Maine 23 North Dakota 38 District of Columbia 11 Massachusetts 25 Oregon 41 Georgia 13 Minnesota 27 South Carolina 45 Hawai 15 Mississipp 28 Tennessee 47 Wisconsin 55

Table 2. Dollar Criteria for State Reporting

1099- 1099- 1099- 1099- 1099- 1099- 1099STATE DIV G INT MISC OID PATR R 5498

Alabama $1500 $ NR $1500 $1500 $1500 $1500 $1500 NR Arkansas 100 2500 100 2500 2500 2500 2500 a

District of Columbia ^b 600 600 600 600 600 600 600 NR Hawaii 10 a 10 600 10 10 600 a

August 2, 1999 156 1999–31 I.R.B.

Table 2. Dollar Criteria for State Reporting—Continued

1099- 1099- 1099- 1099- 1099- 1099- 1099STATE DIV G INT MISC OID PATR R 5498

Idaho NR NR NR 600 NR NR a a

Iowa 10 10 10 600 10 10 10 a

Minnesota 10 10 10 600 10 10 600 a

Mississippi 600 600 600 600 600 600 600 NR Missouri NR NR NR 1200 ^c NR NR NR NR Montana 10 10 10 600 10 10 600 a

New Jersey 1000 1000 1000 1000 1000 1000 1000 NR Tennessee 100 NR 100 NR NR NR NR NR Wisconsin NR NR NR 600 NR NR 600 NR

The preceding list is for information purposes only. The state filing requirements are subject to change by the states. For complete information on state filing requirements, contact the appropriate state tax agencies. Filing requirements for states in TABLE 1 not shown in TABLE 2 are the same as the federal requirement.

NR = No filing requirement. Footnotes:

a. All amounts are to be reported. b. Amounts are for aggregates of several types of income from the same payer. c. Missouri would prefer those returns filed with respect to non-Missouri residents to be sent directly to its state agency.

Sec. 17. Definition of Terms

Element Description

Asynchronous Protocols This type of data transmission is most often used by microcomputers, PCs and some minicomputers. Asynchronous transmissions transfer data at arbitrary time intervals using the start-stop method. Each character transmitted has its own start bit and stop bit.

ATIN A temporary taxpayer identification number assigned to a child who has been placed by an authorized placement agency in the household of a prospective adoptive parent prior to adoption. When the adoption becomes final, the adoptive parent must apply for a social security number for the child.

/b Denotes a blank position. Enter blank(s) when this symbol is used (do not enter the letter “b”). This appears in numerous areas throughout the record descriptions.

Correction A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by IRS/MCC, but contained erroneous information.

Note: A correction should not be confused with a replacement. Only media returned to the filer by IRS/MCC due to pro- cessing problems should be marked replacement.

CUSIP Number A number developed by the Committee on Uniform Security Identification Procedures to serve as a common denominator in communications among users for security transactions and security information.

Employer Identification A nine-digit number assigned by IRS for federal tax reporting purposes. Number (EIN)

Electronic Filing Submission of information returns using switched telecommunications network circuits. These transmissions use modems, dial-up phone lines, and asynchronous protocols. See Parts A and C of this publication for specific information on electronic filing.

1999–31 I.R.B. 157 August 2, 1999

Element Description

File For purposes of this revenue procedure, a file consists of one Transmitter “T” Record at the beginning of the file, followed by a Payer “A” Record, Payee “B” Records, and an End of Payer “C” Record after each set of “B” Records. The last record on the file will be the End of Transmission “F” Record. Nothing should be reported after the End of Transmission “F” Record.

Filer Person (may be payer and/or transmitter) submitting information returns to IRS.

Filing Year The actual year in which the information returns are being submitted to IRS.

Golden Parachute Payment A payment made by a corporation to a certain officer, shareholder, or highly compensated individual when a change in the ownership or control of the corporation occurs or when a change in the ownership of a substantial part of the corporate assets occurs.

Incorrect Taxpayer A TIN may be incorrect for several reasons: Identification Number (a) The payee provided a wrong number or name (e.g., the payee is listed as the only (Incorrect TIN) owner of an account but provided someone else’s TIN). (b) A processing error (e.g., the number or name was typed incorrectly). (c) The payee’s status changed (e.g., a payee name change was not reported to the IRS

or SSA).

Individual Taxpayer A nine digit number issued by IRS to individuals who are required to have a U.S. taxIdentification Number payer identification number but are not eligible to obtain a social security number (ITIN) (SSN).

Information Return The vehicle for submitting required information about another person to IRS. Information returns are filed by financial institutions and by others who make certain types of payments as part of their trade or business. The information required to be reported on an information return includes interest, dividends, pensions, nonemployee compensation for personal services, stock transactions, sales of real estate, mortgage interest, and other types of information. For this revenue procedure, an information return is a Form 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099LTC, 1099-MISC, 1099-MSA, 1099-OID, 1099-PATR, 1099-R, 1099-S, 5498, 5498MSA or W-2G.

ISDN - Integrated Services ISDN’s basic service is Basic Rate Interface (BRI) which is made up of two 64Kbps Digital Network B channels and one 16Kbps D Channel. If both channels are combined into one, called bonding, the total data rate becomes 128KPBS and is 4 ¹ ⁄2 times the bandwidth of a 28.8 modem.

Magnetic Media For this revenue procedure, the term “magnetic media” refers to ¹ ⁄2-inch magnetic tape; IBM 3480/3490/3490E or AS400 compatible tape cartridge; 8mm, 4mm, and QIC (Quarter Inch Cartridge) cartridge or 3 ¹ ⁄2-inch diskette.

Media Tracking Slip Form 9267 accompanies media that IRS/MCC has returned to the filer for replacement (Form 9267) due to incorrect format or errors encountered when trying to process the media. This must be returned with the replacement file.

Missing Taxpayer The payee TIN on an information return is missing if: Identification Number (a) there is no entry in the TIN field, (Missing TIN) (b) includes one or more alpha characters (a character or symbol other than an Arabic

number) as one of the nine digits, OR (c) payee TIN has less than nine digits.

PS 58 Costs The current cost of life insurance under a qualified plan taxable under section 72(m) and Regulations section 1.72–16(b). (See Part B, Sec. 14, Payee “B” Record, Distribution Code, Category of Distribution, Code 9.)

August 2, 1999 158 1999–31 I.R.B.

Element Description

Payee Person or organization receiving payments from the payer, or for whom an information return must be filed. The payee also includes a student (Form 1098-T), borrower (Forms 1098, 1098-E, and 1099-A), a debtor (Form 1099-C), a policyholder or insured (Form 1099-LTC), any IRA plan participant (Form 5498) or MSA or Medicare+Choice MSA participant (Form 5498-MSA), and a gambling winner (Form W-2G). For Form 1099-S, the payee is the seller or other transferor.

Payer Includes the person making payments, a recipient of mortgage or student loan interest payments, a broker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee or issuer of any IRA or MSA plan, or a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned. The payer will be held responsible for the completeness, accuracy, and timely submission of magnetic/electronic files.

Note: For Form 1098-T, the eligible educational institution that received qualified tuition and related expenses is considered the payer.

Replacement A replacement is an information return file that IRS/MCC has returned to the transmitter due to errors encountered during processing.

Note: Filers should never submit media to IRS/MCC marked “Replacement” unless IRS/MCC returned media to the fil- ers. When sending “Replacement” media, be sure to include the Media Tracking Slip (Form 9267) which will accompany media returned by IRS/MCC. Media that has been incorrectly marked as Replacement may result in duplicate filing.

Service Bureau Person or organization with whom the payer has a contract to prepare and/or submit information return files to IRS/MCC. A parent company submitting data for a subsidiary is not considered a service bureau.

Social Security Number (SSN) A nine-digit number assigned by SSA to an individual for wage and tax reporting purposes.

Special Character Any character that is not a numeric, an alpha, or a blank.

SSA Social Security Administration.

Taxpayer Identification Refers to either an Employer Identification Number (EIN) Social Security Number Number (TIN) (SSN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification Number (ATIN).

Tax Year Generally, the year in which payments were made by a payer to a payee.

Transfer Agent The transfer agent, or paying agent, is the entity who has been contracted or authorized by the payer to perform the services of paying and reporting backup withholding (Form 945).

Transmitter Refers to the person or organization submitting file(s) magnetically/electronically. The transmitter may be the payer or agent of the payer.

Transmitter Control Code (TCC) A five character alpha/numeric number assigned by IRS/MCC to the transmitter prior to actual filing magnetically or electronically. This number is inserted in the “T” Record of the file and must be present before the file can be processed. An application Form 4419 must be filed with IRS/MCC to receive this number.

Vendor Vendors include service bureaus that produce information return files on the prescribed types of magnetic media or via electronic filing for payers. Vendors also include companies who provide software for payers who wish to produce their own media or electronic files.

1999–31 I.R.B. 159 August 2, 1999

Sec. 18. State Abbreviations.

01 The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. This table provides state and territory abbreviations only, and does not represent those states participating in the Combined Federal/State Filing Program.

State Code State Code State Code

Alabama AL Kentucky KY Ohio OH Alaska AK Louisiana LA Oklahoma OK American Samoa AS Maine ME Oregon OR Arizona AZ Marshall Islands MH Pennsylvania PA Arkansas AR Maryland MD Puerto Rico PR California CA Massachusetts MA Rhode Island RI Colorado CO Michigan MI South Carolina SC Connecticut CT Minnesota MN South Dakota SD Delaware DE Mississippi MS Tennessee TN District of Columbia DC Missouri MO Texas TX Federated States Montana MT Utah UT of Micronesia FM Nebraska NE Vermont VT Florida FL Nevada NV Virginia VA Georgia GA New Hampshire NH (U.S.) Virgin Islands VI Guam GU New Jersey NJ Washington WA Hawaii HI New Mexico NM West Virginia WV Idaho ID New York NY Wisconsin WI Illinois IL North Carolina NC Wyoming WY Indiana IN North Dakota ND Iowa IA Northern Kansas KS Mariana Islands MP

.02 Filers must adhere to the city, state, and ZIP Code format for U. S. addresses in the “B” Record. This also includes American Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U. S. Virgin Islands.

.03 For foreign country addresses, filers may use a 51 position free format which should include city, province or state, postal code, and name of country in this order. This is allowable only if a “1” (one) appears in the Foreign Country Indicator, Field Position 247 of the “B” Record. .04 When reporting APO/FPO addresses use the following format:

EXAMPLE:

Payee Name PVT Willard J. Doe Mailing Address Company F, PSC Box 100 167 Infantry REGT Payee City APO (or FPO) Payee State AE, AA, or AP* Payee ZIP Code 098010100

*AE is the designation for ZIPs beginning with 090-098, AA for ZIP 340, and AP for ZIPs 962-966.

Sec. 19. Major Problems Encountered

IRS/MCC encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This may eliminate the need for IRS/MCC to return files for replacement. This may be important for those payers who have either had their files prepared by a service bureau or who have purchased preprogrammed software packages.

Filers who engage a service bureau to prepare media on their behalf should be careful not to report duplicate data which may generate penalty notices.

August 2, 1999 160 1999–31 I.R.B.

The Major Problems Encountered lists some of the most frequently encountered problems with magnetic/electronic files submitted to IRS/MCC. These problems may result in media being returned for replacement. Some of the problems resulted from not re- ferring to the publication for instructions.

1. Incorrect Format

“ READ” the Publication 1220 carefully.

NOTE: Due to major format changes in the Tax Year 1998 Publication 1220, IRS/MCC strongly encourages transmitters, vendors, and filers to read the Revenue Procedure in its entirety. See problem examples below:

• No Transmitter “T” Record - These files began with Payer “A” Record. All files must begin with a Transmitter “T” Record

• Incorrect year format - In order to be Y2K compliant, any date field in the information transmitted that does not reflect the 4 position year in the date field will result in media being returned. Date fields having the year/month/day are 8 char- acters (YYYYMMDD). Also, if the month and/or day is one position, i.e.; January through September or 1 through 9 for the day of the month, precede the month and/or day with a zero. All date fields are numeric, therefore, blanks, alphas, or special characters are not acceptable.

EXAMPLE: January 2, 1999 (19990102)

• Invalid record length - Records not 750 Positions in length.

• Multiple Files on diskettes - Filers sending multiple files on diskettes. Please refer to Part B, Section 5. A file consists of one Transmitter “T” Record followed by a Payer “A” Record, Payee “B” Records, End of Payer “C” Record, State Totals “K” Record (if applicable for CF/SF Program), and the End of Transmission “F” Record. A file can contain multiple Payer “A” Records, but, only one Transmitter “T” Record.

IRS/MCC continues to receive prior year data in prior year format instead of current year format. Never send prior year data in prior year format. Be sure to use the current revenue procedure (Publication 1220) for formatting data for prior years.

2. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically

Each shipment of media sent to IRS/MCC must include a Form 4804. More than one type of media may be sent in the same shipment, (i.e., a tape, a diskette, or a tape cartridge) but must have a separate Form 4804 to accompany each type of media. In the following example, three separate Forms 4804 would be required in the total shipment However, multiples of one type of media (i.e., 6 diskettes) may be covered by one Form 4804. For electronically transmitted information returns, the Form 4804 must be mailed or faxed to IRS/MCC the same day as the transmission. Often, electronic files are transmitted and no Form 4804 is sent to MCC. A Form 4804 must be mailed or faxed immediately after the submission.

EXAMPLE: A & B Company sends in the one shipment of the following magnetic media:

1 Magnetic Tape = 1 Form 4804 2 Diskettes = 1 Form 4804 covers both diskettes 3 Tape Cartridges = 1 Form 4804 covers all three cartridges Total Number of Forms 4804 for the above shipment = 3 Forms 4804

3. Discrepancy Between IRS/MCC Totals and Totals in Payer “C” Records The “C” Record is a summary record for a type of return for a given payer as reported in the “B” Records. IRS balances the total number of payees and payment amounts and compares them with totals in the “C” Records. Filers should verify the accuracy of the records because imbalances may necessitate return of files for replacement.

4. The Payment Amount Fields in the “B” Record Do Not Correspond to the Amount Codes in the “A” Record

1999–31 I.R.B. 161 August 2, 1999

If codes 2, 4, and 7 appear in the Amount Codes Field of the “A” Record, then the “B” Record must show payment amounts in only Payment Amount Fields 2, 4, and 7, right-justified and unused positions must be zero (0) filled.

EXAMPLE: “A” RECORD 247 /b /b /b /b /b /b /b /b /b c /b - (‘ /b’ denotes a (Pos. 28-39) blank)

“B” RECORD 000000867599 - (Payment Amount 2) (Pos. 67-78)

000000709097 - (Payment Amount 4) (Pos. 91-102)

000000044985 - (Payment Amount 7) (Pos. 127-138)

5. Blanks or Invalid Characters Appear in Payment Amount Fields in the “B” Record

Money amounts must be right-justified and zero (0) filled. (Do not use blanks.)

6. Incorrect TIN in Payer “A” Record

The Payer’s TIN reported in positions 12-20 of the “A” Record must be nine numeric characters (no alphas or special characters) in order for IRS/MCC to process the media. The TIN provided in the “A” Record must correspond with the name provided in the first payer name line.

7. Incorrect Tax Year in the Transmitter “T” Record, Payer “A” Record and the Payee “B” Record

The tax year in the transmitter, payer and payee records should reflect the year of the information being reported. Filers need to check their files to ensure this information is correct.

Note: Due to Year 2000 compliance changes, the year format has been expanded to four (4) positions.

8. Incorrect Reporting of Form W-2 Information to IRS

Form W-2 information is submitted to SSA, and not to IRS/MCC. SSA has its own magnetic media reporting program and specifications for wage information, and the media containing Forms W-2 is submitted to SSA. Any media received at IRS/MCC that contains Form W-2 information will be forwarded to SSA. The filer will be notified of this action by letter. To inquire about filing Form W-2 information magnetically, call 1-800-SSA-6270.

9. Excessive Withholding Credits

Generally, for most information returns, other than Forms 1099-MISC, 1099-R, and W-2G, Federal withholding amounts should not exceed 31 percent of the income reported. Validate the total reported in the withholding field against the total income reported.

10. Incorrect Format for TINs in the Payee “B” Record

A check of “B” Records should be made to ensure the Taxpayer Identification Numbers (TINs) are formatted correctly. There should be nine numerics, no alphas, hyphens, commas, or blanks. Incorrect formatting of TINs may result in a penalty.

IRS/MCC contacts filers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers/transmitters who submit data with missing TINs, and have taken the required steps to obtain this information are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 and CP2100A) or penalties for missing or incorrect TINs. For penalty information, refer to the Penalty section of the “ 1999 Instructions for Forms 1099, 1098, 5498, and W-2G.”

August 2, 1999 162 1999–31 I.R.B.

11. Distribution Codes for Form 1099-R Reported Incorrectly

Distribution codes for Form 1099-R are being reported incorrectly or not being reported. See valid distribution codes for Form 1099-R in the Payee “B” Record layout, Field Positions 545-546.

12. Incorrect Record Totals Listed on Form 4804

The Combined Total Payee Records listed on the Form 4804 (Block 9) are used in the verification process of information returns. The figure in this block should be the total number of Payee “B” Records contained on the media submitted with the Form 4804. The figures on the Form 4804 are compared against the total number of Payee “B” Records processed on the media.

Imbalances may necessitate the return of the files for replacement.

13. Invalid Use of IRA/SEP/SIMPLE Indicator (Form 1099-R)

The IRA/SEP/SIMPLE indicator for Form 1099-R should be used for the reporting of a distribution from a traditional IRA/SEP/SIMPLE or a Roth conversion. It may be used at your option for a distribution from a Roth or Ed IRA or for an IRA recharacterization. The total amount distributed from a traditional IRA/SEP/SIMPLE should be reported in Payment Amount Field A (IRA/SEP/SIMPLE Distribution) as well as Payment Amount Field 1. The amount reported in this payment amount field is the amount from Box 2a of Form 1099-R.

14. Failure To Identify the Rollover Contributions and/or Fair Market Value of the Account for Form 5498.

Rollover contributions (Amount Code 2 of the “A” Record) and/or fair market value of the account (Amount Code 4 of the “A” Record) for Form 5498 must be identified as an IRA (position 547 of the “B” Record), SEP (position 548 of the “B” Record), SIMPLE (position 549 of the “B” Record), Roth IRA (position 550 of the “B” Record) Recharacterization (position 551 of the “B” Record), or Education IRA (position 552 of the “B” Record).

15. Media Received Without Data

Transmitters/filers should verify the presence of Form 1099 information returns on the media before sending the shipment to IRS/MCC.

Part B. Magnetic Media Specifications

Sec. 1. General

.01 The specifications contained in this part of the revenue procedure define the required format and contents of the records to be included in the magnetic media/electronic file.

.02 A provision is made in the “B” Records for entries which are optional. If the field is not utilized, enter blanks to maintain a fixed record length of 750 positions. Each field description explains the intended use of specific field positions.

.03 Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifications, it will be returned to the transmitter for replacement. Filers are encouraged to submit a test prior to submitting the actual file. Contact IRS/MCC for further information at 304-263-8700.

Sec. 2. Tape Specifications

.01 IRS/MCC can process most magnetic tape files if the following specifications are followed:

(a) 9 track EBCDIC (Extended Binary Coded Decimal Interchange Code) with:

(1) Odd parity. (2) A density of 1600 or 6250 BPI. (3) If transmitters use UNISYS Series 1100, they must submit an interchange tape. (b) 9 track ASCII (American Standard Coded Information Interchange) with:

(1) Odd parity. (2) A density of 1600 or 6250 BPI. Transmitters should be consistent in the use of recording codes and density on files. .02 All compatible tape files must have the following characteristics: Type of tape - ¹ ⁄2-inch (12.7 mm) wide, computer-grade magnetic tape on reels of up to 2,400 feet (731.52 m) within the following specifications:

1999–31 I.R.B. 163 August 2, 1999

(a) Tape thickness: 1.0 or 1.5 mils and (b) Reel diameter: 10 ¹ ⁄2-inch (26.67 cm), 8 ¹ ⁄2-inch (21.59 cm), 7-inch (17.78 cm), or 6-inch. .03 The tape records defined in this revenue procedure may be blocked subject to the following:

(a) A block must not exceed 32,250 tape positions. (b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; how

ever, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks. (c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant

in every block with the exception of the last block which may be shorter (see item (b) above). The block length must be evenly divisible by 750.

(d) Records may not span blocks. .04 Labeled or unlabeled tapes may be submitted. .05 For the purposes of this revenue procedure the following must be used:

Tape Mark: (a) Signifies the physical end of the recording on tape. (b) For even parity, use BCD configuration 001111 (8421). (c) May follow the header label and precede and/or follow the trailer label. .06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.

Sec. 3. Tape Cartridge Specifications

.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:

(a) Must be IBM 3480, 3490, 3490E, or AS400 compatible. (b) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:

(1) Tape cartridges will be ¹ ⁄2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by 1 inch in dimension. (2) Magnetic tape will be chromium dioxide particle based ¹ ⁄2-inch tape. (3) Cartridges must be 18-track or 36-track parallel (See Note ). (4) Cartridges will contain 37,871 CPI or 75,742 CPI (characters per inch). (5) Mode will be full function. (6) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression. (7) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Informa

tion Interchange) may be used. .02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:

(a) A block must not exceed 32,250 tape positions. (b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; how ever, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks. (c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields

or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter [see item (b) above]. The block length must be evenly divisible by 750. (d) Records may not span blocks. .03 Tape cartridges may be labeled or unlabeled. .04 For the purposes of this revenue procedure, the following must be used:

Tape Mark: (a) Signifies the physical end of the recording on tape. (b) For even parity, use BCD configuration 001111 (8421). (c) May follow the header label and precede and/or follow the trailer label.

Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 18-track or 36-track.

Sec. 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications

.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:

(a) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:

August 2, 1999 164 1999–31 I.R.B.

(1) Created from an AS400 operating system only. (2) 8mm (.315-inch) tape cartridges will be 2 ¹ ⁄2-inch by 3 ¹ ⁄2-inch. (3) The 8mm tape cartridges must meet the following specifications:

Tracks Density Capacity

1 20 (43245 BPI) 2.5 Gb (10Gb) 1 21 (45434 BPI) 5 Gb (20Gb)

(4) Mode will be full function. (5) Compressed data is not acceptable. (6) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Informa tion Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge. (7) A file may consist of more than one cartridge; however, no more than 250,000 documents may be transmitted per file or

per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will indicate the sequence of the cartridge within the file (e.g., 1 of 3, 2 of 3, and 3 of 3 will appear in the header label as IRSTAX.001, IRSTAX.002, and IRSTAX.003 on each cartridge of the file.) The Transmitter “T” Record must only appear on the first cartridge. The end of transmission “F” Record should be placed only on the last cartridge for files containing multiple cartridges. .02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:

(a) A block must not exceed 32,250 tape positions. (b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9’s; how ever, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks. (c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields

or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be shorter [see item (b) above]. The block length must be evenly divisible by 750. (d) Various COPY commands have been successful; however, the SAVE OBJECT COMMAND is not acceptable. (e) Extraneous data following the “F” Record will result in media being returned for replacement. (f) Records may not span blocks. (g) No more than 250,000 documents per cartridge and per file. .03 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a suggested filename.

.04 For the purposes of this revenue procedure, the following must be used: Tape Mark: (a) Signifies the physical end of the recording on tape. (b) For even parity, use BCD configuration 001111 (8421). (c) May follow the header label and precede and/or follow the trailer label. .05 If extraneous data follows the End of Transmission “F” Record, the file will be returned for replacement. Therefore, IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data when submitting information returns.

.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.

.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:

(a) 4mm cassettes will be 2 ¹ ⁄2-inch by 3-inch. (b) The tracks are 1 (one). (c) The density is 19 (61000 BPI). (d) The typical capacity is DDS (DAT data storage) at 1.3 Gb ( 60 meter ) or 2 Gb ( 90 meter ), or DDS-2 at 4Gb ( 120 meter) . (e) The general specifications for 8mm cartridges will also apply to the 4mm cassettes. .08 Various Quarter Inch Cartridges (QIC) ( ¹ ⁄4-inch) are also acceptable.

(a) QIC cartridges will be 4� by 6�. (b) QIC cartridges must meet the following specifications:

1999–31 I.R.B. 165 August 2, 1999

Size Tracks Density Capacity

QIC-24 8/9 5 (8000 BPI) 45Mb or 60Mb QIC-120 15 15 (10000 BPI) 120Mb or 200Mb QIC-150 18 16 (10000 BPI) 150Mb or 250Mb QIC-525 26 17 (16000 BPI) 525Mb QIC-1000 30 21 (36000 BPI) 1Gb QIC-2Gb 42 34 (40640 BPI) 2Gb

(c) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.

Sec. 5. 3 ¹ ⁄2-Inch Diskette Specifications

IRS/MCC has discontinued processing 5 ¹ ⁄4-inch diskettes. Filers must use other methods by which to submit information returns magnetically/electronically.

.01 To be compatible, a diskette file must meet the following specifications:

(a) 3 ¹ ⁄2-inches in diameter. (b) Data must be recorded in standard ASCII code. (c) Records must be a fixed length of 750 bytes per record. (d) Delimiter character commas (,) must not be used. (e) Positions 749 and 750 of each record have been reserved for use as carriage return/line feed (CR/LF) characters, if applic able. (f) Filename of IRSTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette,

the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the diskettes within the file. For example, if the file consists of three diskettes, the first diskette will be named IRSTAX.001, the second will be IRSTAX.002, and the third will be IRSTAX.003. The first diskette, IRSTAX.001 will begin with a “T” Record and the third diskette, IRSTAX.003 will have an “F” Record at the end of the file. (g) A diskette will not contain multiple files as defined in Part A, Section 17. A file may have only ONE Transmitter “T”

Record. (h) Failure to comply with instructions will result in media being returned for replacement. (i) Diskettes must meet one of the following specifications:

Capacity Tracks Sides/Density Sector Size

1.44 mb 96tpi hd 512 1.44 mb 135tpi hd 512 1.2 mb 96tpi hd 512

.02 IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data follows the End of Transmission “F” Record, the file will be returned for replacement.

.03 IRS/MCC will only accept 3 ¹ ⁄2-inch diskettes created using MS-DOS.

Notes: IRS/MCC has discontinued processing 5 ¹ ⁄4-inch diskettes.

IRS no longer has the capability to process non-MS-DOS compatible diskettes.

3 ¹ ⁄2-inch diskettes created on a System 36 or AS400 are not acceptable.

.04 Transmitters should check media for viruses before submitting it to IRS/MCC.

Sec. 6. Transmitter “T” Record – General Field Descriptions

.01 The Transmitter “T” Record identifies the entity transmitting the magnetic media/electronic file and contains information which is supplied on the Form 4804, Transmittal of Information Returns reported Magnetically/Electronically. The “T” Record has been created to facilitate current magnetic/electronic processing of information returns at IRS/MCC.

.02 The Transmitter “T” Record is the first record on each file and is followed by a Payer “A” Record. See Part A, Sec. 17, Definition of Terms for the definition of file. A file will be returned to the transmitter for replacement if the “T” Record is not present. For transmitters with multiple diskettes, refer to Sec. 5. 3 ¹ ⁄2-Inch Diskette Specifications.

.03 No money or payment amounts are reported in the Transmitter “T” Record.

August 2, 1999 166 1999–31 I.R.B.

.04 For all fields marked “Required”, the transmitter must provide the information described under Description and Remarks. For those fields not marked “Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field positions and for the indicated length.

.05 All records must be a fixed length of 750 positions. .06 The Transmitter “T” Record must be followed by the Payer “A” Record, which must be followed with Payee “B” Records; however, the initial record on each file must be a Transmitter “T” Record.

.07 All alpha characters entered in the “T” Record must be upper-case. .08 When transmitting information on magnetic media or electronically, the Transmitter “T” Record must precede the first Payer “A” Record and reflect the person actually transmitting the information to IRS/MCC.

Record Name: Transmitter “T” Record

Field Position Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “T.”

2–5 Payment Year 4 Required. Enter “ 1999 ” (unless reporting prior year data; report the year which applies [1997, 1998, etc.] and set the Prior Year Data Indicator in field position 6).

6 Prior Year 1 Required. Enter “P” only if reporting prior year data; otherwise, enter Data Indicator blank. Do not enter a “P” if tax year is 1999.

7–15 Transmitter’s 9 Required. Enter the transmitter’s nine digit Tax Identification Number. TIN May be an EIN, SSN or ITIN.

16–20 Transmitter 5 Required. Enter the five character alpha/numeric Transmitter Control Control Code Code (TCC) assigned by IRS/MCC. A TCC must be obtained to file data within this program.

21–22 Replacement 2 Required for replacement files only. Enter the alpha/numeric character Alpha Character which appears immediately following the TCC number on the Media Tracking Slip (Form 9267). The Form 9267 accompanies media that has been returned by IRS/MCC due to processing problems. This field must be blank unless media has been returned. If the file is being replaced magnetically, information is required in this field. If the file was originally sent magnetically, but the replacement is being sent electronically, the information is required in this field. Otherwise, leave blank for electronic files. Left justify information and fill unused positions with blanks. If this is not a replacement file, enter blanks.

23–27 Blank 5 Enter blanks.

28 Test File 1 Required for test files only. Enter “T” if this is a test file; otherwise, Indicator enter a blank.

29 Foreign 1 Enter a “1” (one) if the transmitter is a foreign entity. If the transmitter is Entity Indicator not a foreign entity, enter a blank.

30–69 Transmitter 40 Required. Enter the name of the transmitter in the manner in which it is Name used in normal business. Left justify and fill unused positions with blanks. (Used in course of business) This is not the person’s name unless it is the name of the business transmitting the file.

1999–31 I.R.B. 167 August 2, 1999

Record Name: Transmitter “T” Record (Continued)

Field Position Field Title Length Description and Remarks

70–109 Transmitter 40 Enter any additional information that may be part of the name. Left justify Name (Continuation) information and fill unused positions with blanks.

NOTE: All the information “Required” in Field Positions 110 through 280 MUST contain the address where media, which IRS/MCC was unable to process, may be returned. Any correspondence relating to problem media or electronic files will also be sent to this address.

110–149 Company 40 Required. Enter the name of the company to be associated with the adName dress where correspondence should be sent or media should be returned due to processing problems.

150–189 Company 40 Enter any additional information that may be part of the name of the Name company where correspondence should be sent or media should be re(Continuation) turned due to processing problems.

190–229 Company 40 Required. Enter the mailing address where correspondence should be sent Mailing Address or media should be returned in the event IRS/MCC is unable to process.

230–269 Company City 40 Required. Enter the city, town, or post office where correspondence should be sent or media should be returned in the event IRS/MCC is unable to process.

270–271 Company State 2 Required. Enter the valid U. S. Postal Service state abbreviation. Refer to the chart of valid state codes in Part A, Sec.18.

272–280 Company ZIP Code 9 Required. Enter the valid nine digit ZIP Code assigned by the U. S. Postal Service. If only the first five digits are known, left justify information and fill unused positions with blanks

281–295 Blank 15 Enter blanks.

296–303 Total Number 8 Enter the total number of Payee “B” Records reported in the file. Right of Payees justify information and fill unused positions with zeros.

304–343 Contact Name 40 Required. Enter the name of the person to be contacted if IRS/MCC encounters problems with the file or transmission.

344–358 Contact’s Phone 15 Required. Enter the telephone number of the person to contact regarding Number & Extension magnetic/electronic files. Omit hyphens. If no extension is available, left justify information and fill unused positions with blanks. For example, the IRS/MCC Call Site phone number of 304-263-8700 with an extension of 52345 would be 304263870052345.

359–360 Magnetic 2 Required for magnetic tape/tape cartridge filers only. Enter the letters Tape File “LS” (in uppercase only). Use of this field by filers using other types of Indicator media will be acceptable but is not required.

361–375 Electronic 15 Required for an incorrect original or correction electronic file for which a File Name replacement is being sent. Enter the ORIGINAL or CORRECTION elecFor a Replacement tronic file name assigned by the IRS electronic filing system. File

EXAMPLE: If you have sent an original file, the TCC is 44444 and it is your first original file, then the filename would be ORIG.44444.0001.

If you are sending an original, correction or test file, then enter blanks.

August 2, 1999 168 1999–31 I.R.B.

Record Name: Transmitter “T” Record (Continued)

Field Position Field Title Length Description and Remarks

376–748 Blank 373 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Sec. 7. Transmitter “T” Record - Record Layout

Replacement

Alpha Character

Blank

Record

Type

Payment

Year

Prior Year

Data Indicator

Transmitter’s

TIN

Transmitter

Code

Control

1 2–5 6 7–15 16–20 21–22 23–27

Test File Indicator

Foreign

Entity Indicator

Transmitter

Name

Transmitter

Name (Continuation)

Company

Name

Company

Name (Continuation)

28 29 30–69 70–109 110–149 150–189

Company

Mailing Address

Company

City

Company

State

Company

ZIP Code

Blank

Total Number of Payees

Contact

Name

190–229 230–269 270–271 272–280 281–295 296–303 304–343

Contact’s Phone

Magnetic Tape File

Indicator

Electronic File

Name For a Replacement

File

Blank or Blank

CR/LF

Number &

Extension

344–358 359–360 361–375 376–748 749–750

Sec. 8. Payer “A” Record – General Field Descriptions

.01 The Payer “A” Record identifies the institution or person making payments, a recipient of mortgage interest payments, a broker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee, or issuer of an IRA, SEP, or SIMPLE, or a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned. The payer will be held responsible for the completeness, accuracy, and timely submission of magnetic/electronic files. The Payer “A” Record also provides parameters for the succeeding Payee “B” Records. IRS computer programs rely on the absolute relationship between the parameters and data fields in the “A” Record and the data fields in the “B” Records to which they apply.

.02 The number of “A” Records depends on the number of payers and the different types of returns being reported. The payment amounts for one payer and for one type of return should be consolidated under one “A” Record if submitted on the same file.

.03 Do not submit separate “A” Records for each payment amount being reported. For example, if a payer is filing Form 1099DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one “A” Record, not three separate “A” Records. For “B” Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no payment to be reported.

.04 The second record on the file must be an “A” Record. A transmitter may include “B” Records for more than one payer on a tape or diskette. However, each group of “B” Records must be preceded by an “A” Record and followed by an End of Payer “C” Record. A single tape or diskette may contain different types of returns but the types of returns must not be intermingled. A separate “A” Record is required for each payer and each type of return being reported.

.05 All records must be a fixed length of 750 positions. .06 The initial record on a file must be a “T” Record followed by an “A” Record. IRS/MCC will accept an “A” Record after a “C” Record to report an additional payer or a different type of return. An “A” Record may be blocked with “B” Records.

.07 Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.

1999–31 I.R.B. 169 August 2, 1999

.08 All alpha characters entered in the “A” Record must be upper-case. .09 When filing Form 1098, Mortgage Interest Statement, Form 1098-E, Student Loan Interest Statement, and Form 1098-T, Tuition Payments Statement, the “A” Record will reflect the name of the recipient of the interest referred to as the payer in these instructions. The “B” Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid.

.10 For all fields marked “Required”, the transmitter must provide the information described under Description and Remarks. For those fields not marked “Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated media position(s) and for the indicated length.

Record Name: Payer “A” Record

Field Position Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “A.”

2–5 Payment Year 4 Required. Enter “ 1999 ” (unless reporting prior year data; report the year which applies [1997, 1998, etc.]).

6–11 Blank 6 Enter blanks.

12–20 Payer’s 9 Required. Must be the valid nine-digit Taxpayer Identification Number Taxpayer assigned to the payer. Do not enter blanks, hyphens, or alpha charac- Identification ters. All zeros, ones, twos, etc., will have the effect of an incorrect TIN. Number (TIN)

Note: For foreign entities that are not required to have a TIN, this field must be blank. However, the Foreign Entity In- dicator, position 52 of the “A” Record, must be set to “1” (one).

21–24 Payer Name 4 The Payer Name Control can be obtained only from the mail label on the Control Package 1099 that is mailed to most payers each December. To distinguish between Package 1099 and the Magnetic Media Reporting (MMR) Package, the Package 1099 contains Form 7018-C, Order Blank for Forms, and the mail label on the package contains a four (4) character name control. The MMR Package contains instructions for filing magnetically or electronically.

For a business, use the first four significant characters of the business name. Disregard the word “the” when it is the first word of the name, un- less there are only two words in the name. A dash (–) and an ampersand (&) are the only acceptable special characters.

The mail label on the MMR Package does not contain a name control. Names of less than four (4) characters should be left justified, filling the unused positions with blanks. If a Package 1099 has not been received or the Payer Name Control is unknown, this field must be blank filled.

25 Last Filing 1 Enter a “1” (one) if this is the last year the payer will file; otherwise, enter Indicator blank. Use this indicator if the payer will not be filing information returns under this payer name and TIN in the future either magnetically, electronically, or on paper.

26 Combined 1 Required for the Combined Federal/State Filing Program. Enter “1” Federal/State (one) if participating in the Combined Federal/State Filing Program; otherFiler wise, enter blank. Refer to Part A, Sec. 16, for further information. The only forms that may be filed under the Combined Federal /State Filing Program are: Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099- OID, 1099-PATR, 1099-R, and 5498.

August 2, 1999 170 1999–31 I.R.B.

Record Name: Payer “A” Record (Continued)

Field Position Field Title Length Description and Remarks

27 Type of 1 Required. Enter the appropriate code from the table below:

Return Type of Return Code

1098 3 1098-E 2 1098-T 8 1099-A 4 1099-B B 1099-C 5 1099-DIV 1 1099-G F 1099-INT 6 1099-LTC T 1099-MISC A 1099-MSA M 1099-OID D 1099-PATR 7 1099-R 9 1099-S S 5498 L 5498-MSA K W-2G W

28–39 Amount Codes 12 Required. Enter the appropriate amount codes for the type of return being (See Note ) reported. Generally, for each amount code entered in this field, a corresponding payment amount must appear in the Payee “B” Record.

In most cases, the box numbers on paper information returns corre- spond with the amount codes used to file magnetically/ electronically. However, if discrepancies occur, this revenue procedure governs.

The Amount Codes have been expanded from nine to twelve codes to accommodate three additional payment fields in the Payee “B” Record. Amount Codes 1 through 9 will remain numeric. Amount Codes 10, 11, and 12 will be A, B, and C, respectively.

Example of Amount Codes:

If position 27 of the Payer “A” Record is “A” (for 1099-MISC) and positions 28-39 are “1247AC /b /b /b /b /b //b”, this indicates the payer is reporting any or all six payment amounts (1247AC) in all of the following “B” Records. (In this example, “ /b” denotes blanks in the designated positions. Do not enter the letter “b”.)

The first payment amount field (1) will represent rents; the second payment amount field (2) will represent royalties; the third payment amount field (3) will be all “0” (zeros); the fourth payment amount field (4) will represent Federal income tax withheld; the fifth and sixth payment amount fields (5 and 6) will be all “0” (zeros); the seventh payment amount field (7) will represent nonemployee compensation; the eighth and ninth payment amount fields (8 and 9) will be all “0” (zeros); the tenth payment amount field (A) will represent crop insurance proceeds; the eleventh payment amount field (B) will be all “0” (zeros); and the twelfth payment amount field (C) will represent gross proceeds paid to an attorney in connection with legal services.

1999–31 I.R.B. 171 August 2, 1999

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

Enter the amount codes in ascending sequence (i.e., 1247AC/b /b /b /b /b), left justify information, and fill unused positions with blanks. For further clarification of the amount codes, contact IRS/MCC. (In this example, “ /b” denotes blanks in the desig- nated positions. Do not enter the letter “b.”)

Note: A type of return and an amount code must be present in every Payer “A” Record even if no money amounts are being reported. For a detailed explanation of the information to be reported in each amount code, refer to the 1999 “In- structions for Forms 1099, 1098, 5498, and W-2G.”

Amount Codes Form 1098 - For Reporting Mortgage Interest Received From Payers/Borrowers (Payer Mortgage Interest of Record) on Form 1098: Statement

Amount Code Amount Type 1 Mortgage interest received from payer(s)/borrower(s) 2 Points paid on purchase of principal residence 3 Refund (or credit) of overpaid interest 4 Blank (Filer’s use) See Note .

Note: The interest recipient may use this box to furnish other information, such as real estate taxes or insurance paid from escrow.

Amount Codes Form 1098-E - For Reporting Interest on Student Loans on Form 1098-E Student Loan Interest Statement Amount Code Amount Type 1 Student loan interest received

Note: Until regulations are adopted, no penalties will be imposed under section 6721 or 6722 for failure to file or furnish correct Forms 1098-E if you made a good faith effort to file and furnish them.

Amount Codes Form 1098-T - For Reporting Tuition Payments on Form 1098-T (See Note.) Tuition Payments Statement Amount Code Amount Type 1 For filer’s use (See Notes. ) 2 For filer’s use (See Notes. )

Note: When reporting Form 1098-T magnetically/electronically, the filer must use Type of Return Code 8 in position 27, and Amount Codes 1 and 2 in positions 28 and 29 of the Payer “A” Record. However, if no money is being reported, the pay- ment amount fields will contain zeros. There is no requirement for filers to report money amounts on Form 1098-T for Tax Year 1999.

PAYER: For Form 1098-T, payer refers to the eligible educational institution that received qualified tuition and related expenses in 1999. The payer is not the student or the parent/guardian of the student.

Note: Until regulations are adopted, no penalties will be imposed under section 6721 or 6722 for failure to file or furnish correct Forms 1098-T if you made a good faith effort to file and furnish them.

Amount Codes Form 1099-A - For Reporting the Acquisition or Abandonment of Secured Property on Acquisition or Abandonment Form 1099-A: of Secured Property Amount (See Note. ) Code Amount Type 2 Balance of principal outstanding 4 Fair market value of property

August 2, 1999 172 1999–31 I.R.B.

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

Note: If, in the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured property for one debtor and the filer would be required to file both Forms 1099-A and 1099-C (Cancellation of Debt), the filer is required to file Form 1099-C only. See the 1999 “ Instructions for Forms 1099, 1098, 5498, and W-2G” for further in- formation on coordination with Form 1099-C.

Amount Codes Form 1099-B For Reporting on Form 1099-B: Proceeds From Broker and Amount Barter Exchange Code Amount Type Transactions 2 Stocks, bonds, etc. (For forward contracts, see Note 1 .) 3 Bartering (Do not report negative amounts.) 4 Federal income tax withheld (backup withholding) (Do not report negative amounts.) 6 Profit (or loss) realized in 1999 (See Note 2 .) 7 Unrealized profit (or loss) on open contracts-12/31/98 (See Note 2 .) 8 Unrealized profit (or loss) on open contracts-12/31/99 (See Note 2. ) 9 Aggregate profit (or loss) (See Note 2 .)

Note 1: The payment amount field associated with Amount Code 2 may be used to report a loss from a closing transac- tion on a forward contract. Refer to the “B” Record - General Field Descriptions, Payment Amount Fields, for instructions on reporting negative amounts.

Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used for the reporting of regulated futures or foreign currency contracts.

Amount Codes Form 1099-C - For Reporting Cancellation of Debt on Form 1099-C: Cancellation of Debt (See Note 1. ) Amount Code Amount Type 2 Amount of debt canceled 3 Interest, if included in Amount Code 2 7 Fair market value of property (See Note 2. )

Note 1: If, in the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured property for one debtor and the filer would be required to file both Forms 1099-C and 1099-A (Acquisition or Abandonment of Secured Property), the filer is required to file Form 1099-C only. See the 1999 “ Instructions for Forms 1099, 1098, 5498, and W-2G” for further information on coordination with Form 1099-A.

Note 2: Amount Code 7 will be used only if a combined Form 1099-A and 1099-C is being filed.

Amount Codes Form 1099-DIV - For Reporting Payments on Form 1099-DIV: Dividends and Distributions

Amount See the 1999 “Instructions for Code Amount Type Forms 1099, 1098, 5498 and 1 Ordinary dividends W-2G” for further information 2 Total capital gains distributions on Form 1099-DIV. 3 28% rate gain 4 Unrecaptured section 1250 gain 5 Section 1202 gain 6 Nontaxable distributions

1999–31 I.R.B. 173 August 2, 1999

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

7 Federal income tax withheld (backup withholding) 8 Investment expenses 9 Foreign tax paid A Cash liquidation distribution (See Note. ) B Noncash liquidation distribution (See Note. )

Note: Amount Codes A and B apply only to corporations in partial or complete liquidation. Amount Codes A and B reflect information in Boxes 8 and 9 on the Form 1099-DIV.

Amount Codes Form 1099-G - For Reporting Payments on Form 1099-G: Certain Government and Qualified State Tuition Program Payments Amount Code Amount Type 1 Unemployment compensation 2 State or local income tax refunds, credits, or offsets 4 Federal income tax withheld (backup withholding or volun tary withholding on unemployment compensation or Commodity Credit Corporation Loans, or certain crop disaster payments) 5 Qualified state tuition program earnings 6 Taxable grants 7 Agriculture payments

Amount Codes Form 1099-INT - For Reporting Payments on Form 1099-INT: Interest Income

Amount Code Amount Type 1 Interest income not included in Amount Code 3 2 Early withdrawal penalty 3 Interest on U.S. Savings Bonds and Treasury obligations 4 Federal income tax withheld (backup withholding) 5 Investment expenses 6 Foreign tax paid

Amount Codes Form 1099-LTC- For Reporting Payments on Form 1099-LTC: Long-Term Care and Accelerated Death Benefits Amount Code Amount Type 1 Gross long-term care benefits paid 2 Accelerated death benefits paid

Amount Codes Form 1099-MISC - For Reporting Payments on Form 1099-MISC: Miscellaneous Income (See Note 1 .) Amount Code Amount Type 1 Rents 2 Royalties (See Note 2. ) 3 Other income 4 Federal income tax withheld (backup withholding or withholding on payments of Indian gaming profits) 5 Fishing boat proceeds 6 Medical and health care payments 7 Nonemployee compensation

August 2, 1999 174 1999–31 I.R.B.

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

8 Substitute payments in lieu of dividends or interest A Crop insurance proceeds B Excess golden parachute payments C Gross proceeds paid to an attorney in connection with legal services

Note 1: If reporting the Direct Sales Indicator only in position 547 of the Payee “B” Record, use Type of Return Code A for 1099-MISC in position 27, and Amount Code 1 in position 28 of the Payer “A” record. All payment amount fields in the Payee “B” record will contain zeros.

Note 2: Do not report timber royalties under a “pay-as-cut” contract; these must be reported on Form 1099-S.

Amount Codes Form 1099-MSA - For Reporting Distributions from a Medical Savings Account or Distributions From an MSA or Medicare+Choice MSA on Form 1099-MSA: Medicare+Choice MSA

Amount Code Amount Type 1 Gross distribution 2 Earnings on excess contributions 4 Fair market value of the account on date of death

Amount Codes Form 1099-OID - For Reporting Payments on Form 1099-OID: Original Issue Discount

Amount Code Amount Type 1 Original issue discount for 1999 2 Other periodic interest 3 Early withdrawal penalty 4 Federal income tax withheld (backup withholding) 6 Original issue discount on U.S. Treasury obligations (See Note. ) 7 Investment expenses (See Note .)

Note: See the 1999 “Instructions for Forms 1099, 1098, 5498 and W-2G” for further reporting information.

Amount Codes Form 1099-PATR - For Reporting Payments on Form 1099-PATR: Taxable Distributions Received From Cooperatives Amount Code Amount Type 1 Patronage dividends 2 Nonpatronage distributions 3 Per-unit retain allocations 4 Federal income tax withheld (backup withholding) 5 Redemption of nonqualified notices and retain allocations Pass-Through Credits (See Note .) 6 For filers use for pass-through credits 7 Investment credit 8 Work opportunity credit 9 Patron’s alternative minimum tax (AMT) adjustment

Note: Amount Codes 6, 7, 8, and 9 are reserved for the patron’s share of unused credits that the cooperative is passing through to the patron. Other credits, such as the Indian employment credit may be reported in Amount Code 6. The title of the credit reported in Amount Code 6 may be reported in the Special Data Entries Field in the Payee “B” Record. The

1999–31 I.R.B. 175 August 2, 1999

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

amounts shown for Amount Codes 6, 7, 8, and 9 must be reported to the payee. These Amount Codes and the Special Data Entries Field are for the convenience of the filer. This information is not needed by IRS/MCC.

Amount Codes Form 1099-R - For Reporting Payments on Form 1099-R: Distributions From Pensions, Annuities, Amount Retirement or Profit- Code Amount Type Sharing Plans, IRAs, 1 Gross distribution (See Note 1 .) Insurance Contracts, etc. 2 Taxable amount (See Note 2. ) 3 Capital gain (included in Amount Code 2) 4 Federal income tax withheld (See Note 3 .) 5 Employee contributions or insurance premiums 6 Net unrealized appreciation in employer’s securities 8 Other 9 Total employee contributions A Traditional IRA/SEP/SIMPLE distribution (See Note 4 .)

Note 1: If the payment shown for Amount Code 1 is a total distribution, enter a “1” (one) in position 549 of the “B” Record. An amount must be shown in Payment Amount Field 1 unless reporting an amount ONLY in Payment Amount Field 8. If a distribution is a loss, do not enter a negative amount. For example, if stock is distributed but the value is less than the employee’s after-tax contributions, enter the value of the stock in Payment Amount Field 1, enter “0” (zero) in Pay- ment Amount Field 2, and enter the employee’s contributions in Payment Amount Field 5.

Note 2: If the taxable amount cannot be determined, enter a “1” (one) in position 547 of the “B” Record. For a tradi- tional IRA, SEP, or SIMPLE distribution, generally enter in Payment Amount Field A the same amount entered in Payment Amount Field 1.

Note 3: See the “l999 Instructions for Forms 1099, 1098, 5498, and W-2G” for information concerning Federal income tax withheld for Form 1099-R.

Note 4: For Form 1099-R, report the total amount distributed from a Traditional IRA, SEP, or SIMPLE in Payment Amount Field A (IRA/SEP/SIMPLE Distribution), Field Positions 163-174 of the Payee “B” Record, and generally, the same amount in Payment Amount Field 1 (Gross Distribution), Field Positions 55-66 of the Payee “B” Record. Amount Code A was created to identify the distribution as a Traditional IRA/SEP/SIMPLE. The IRA/SEP/SIMPLE Indicator should be set in Field Position 548 of the Payee “B” Record and the money should be reported in Payment Field A as well as Payment Field 1 of the Payee “B” Record; but, not in Payment Amount Field 2. The purpose for Payment Field A is to identify the amount of money re- ported is a Traditional IRA/SEP/SIMPLE distribution. Refer to the “1999 Instructions for Forms 1099, 1098, 5498, and W- 2G” for exceptions.

Amount Codes Form 1099-S - For Reporting Payments on Form 1099-S: Proceeds From Real Estate Amount Transactions Code Amount Type 2 Gross proceeds (See Note. ) 5 Buyer’s part of real estate tax

Note: Include payments of timber royalties made under a “pay-as-cut” contract, reportable under section 6050N. If tim- ber royalties are being reported, enter “TIMBER” in the description field of the “B” record.

August 2, 1999 176 1999–31 I.R.B.

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

Amount Codes Form 5498 - For Reporting Information on Form 5498: IRA Contribution Information (See Note 1. ) Amount Code Amount Type 1 IRA contributions (other than amounts in Amount Codes 2, 3, and 7, 8, 9, and A ) (See Note 2.) 2 Rollover contributions 3 Roth conversion amount 4 Fair market value of account 5 Life insurance cost included in Amount Code 1 7 Employer SEP contributions 8 SIMPLE contributions 9 Roth IRA contributions A Education IRA contributions

Note 1: For information regarding Inherited IRAs, refer to the 1999 “Instructions for Forms 1099, 1098, 5498, and W- 2G” and Rev. Proc. 89-52, 1989-2 C.B. 632. Beneficiary information must be given in the Payee Name Line Field of the “B” Record.

If reporting IRA contributions for a Desert Storm/Shield participant for other than 1999 or an Operation Joint Guard (OJG) (Bosnia Region) or Operation Allied Force (Yugoslavia) participant, enter “DS” for Desert Storm or Joint Endeavor or “JG” for Joint Guard, the year for which the contribution was made, and the amount of the contribution in the Special Data Entries Field of the “B” Record. Do not enter the contributions in Amount Code 1. For information concerning Desert Storm/Shield participant reporting, refer to the “1994 Instructions for Forms 1099, 1098, 5498, and W-2G,” or Notice 91-17, 1991-1 C.B. 319. The instructions for filing Form 5498 for Desert Storm/Shield participants will also apply to participants of Joint Endeavor or Operation Joint Guard (OJG) (Bosnia Region) and Operation Allied Force (Yugoslavia).

Note 2: Also include employee contributions to an IRA under a SEP plan but not salary reduction contributions. DO NOT include EMPLOYER contributions, these are included in Amount Code 7.

Amount Codes Form 5498-MSA For Reporting Information on 5498-MSA: MSA or Medicare+Choice MSA Information Amount Code Amount Type 1 Employee or self-employed person’s MSA contributions made in 1999 and 2000 for 1999 2 Total MSA contributions made in 1999 (this would include any contributions made in 1999 for 1998. Optional for M+C MSA.) 3 Total MSA contributions made in 2000 for 1999 4 Rollover contributions (See Note 1. ) 5 Fair market value of MSA or M+C MSA (See Note 2. )

Note 1: This is the amount of any rollover made to this MSA in 1999 after a distribution from another MSA. For de- tailed information on reporting, see the 1999 “ Instructions for Forms 1099, 1098, 5498 and W-2G.”

Note 2: This is the fair market value (FMV) of the account on December 31, 1999.

Amount Codes Form W-2G - For Reporting Payments on Form W-2G: Certain Gambling Winnings Amount Code Amount Type 1 Gross winnings 2 Federal income tax withheld 7 Winnings from identical wagers

1999–31 I.R.B. 177 August 2, 1999

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

40–47 Blank 8 Enter blanks.

48 Original File 1 Required for original files only. Enter “1” (one) if the information is Indicator original data. Otherwise, enter a blank.

49 Replacement 1 Required for replacement files only. Enter “1” (one) if the purpose of File Indicator this file is to replace a file that IRS/MCC returned to the transmitter due to errors encountered in processing. This is a file that has not been successfully processed by IRS. Otherwise, enter a blank.

If selecting the Replacement File Indicator in Position 49, Field Positions 48 and 50 must be blank. Only one indicator may be selected for each Payer “A” Record.

50 Correction 1 Required for correction files only. Enter “1” (one) if the purpose of this File Indicator file is to correct information which was previously submitted to IRS/MCC, was processed, but contained erroneous information. Do not submit original information as corrections. Any information return which was inadvertently omitted from a file must be submitted as original. Otherwise, enter a blank.

51 Blank 1 Enter a blank.

52 Foreign 1 Enter a “1” (one) if the payer is a foreign entity and income is paid by Entity Indicator the foreign entity to a U. S. resident. If the payer is not a foreign entity, enter a blank (See Note. ).

Note: If payers report the Foreign Entity Indicator erroneously, they may be subject to a penalty for providing incorrect information to IRS.

53–92 First Payer 40 Required. Enter the name of the payer whose TIN appears in positions Name Line 12-20 of the “A” Record. Any extraneous information must be deleted. Left justify information, and fill unused positions with blanks. (Filers should not enter a transfer agent’s name in this field. Any transfer agent’s name should appear in the Second Payer Name Line Field.)

Note: When reporting Form 1098, Mortgage Interest Statement, and Form 1098-E, Student Loan Interest Statement, the “A” Record will reflect the name and TIN of the recipient of the interest or payment, the filer of Forms 1098 and 1098-E (the payer). The “B” Record will reflect the individual paying the interest (the borrower/payer of record) and the amount paid. For Form 1099-S, the “A” Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099- S) and the “B” Record will reflect the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the “A” Record will reflect the name and TIN of the educational institution receiving tuition payments. The “B” Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.

93–132 Second Payer 40 If the Transfer (or Paying) Agent Indicator (position 133) contains a “1” Name Line (one), this field must contain the name of the transfer (or paying) agent. If the indicator contains a “0” (zero), this field may contain either a continuation of the First Payer Name Line or blanks. Left justify information and fill unused positions with blanks.

133 Transfer Agent 1 Required. Identifies the entity in the Second Payer Name Line Field. Indicator (See Part A, Sec. 17 for a definition of transfer agent.)

August 2, 1999 178 1999–31 I.R.B.

Record Name: Payer “A” Record, Field Positions 28-39 (Continued)

Field Position Field Title Length Description and Remarks

Code Meaning 1 The entity in the Second Payer Name Line Field is the transfer (or paying) agent. 0 (zero) The entity shown is not the transfer (or paying) agent (i.e., the Second Payer Name Line Field contains either a continuation of the First Payer Name Line Field or blanks).

134–173 Payer 40 Required. If the Transfer Agent Indicator in position 133 is a “1” (one), Shipping enter the shipping address of the transfer (or paying) agent. Otherwise, Address enter the actual shipping address of the payer. The street address should include number, street, apartment or suite number (or P. O. Box if mail is not delivered to street address). Left justify information, and fill unused positions with blanks.

For U.S. addresses, the payer city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must adhere to the correct format for the payer city, state, and ZIP Code.

For foreign addresses, filers may use the payer city, state, and ZIP Code as a continuous 51 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Entity Indicator in position 52 must contain a “1” (one).

174–213 Payer City 40 Required. If the Transfer Agent Indicator in position 133 is a “1” (one), enter the city, town, or post office of the transfer agent. Otherwise, enter the city, town, or post office of the payer. Left justify information, and fill unused positions with blanks. Do not enter state and ZIP Code information in this field.

214-215 Payer State 2 Required. Enter the valid U.S. Postal Service state abbreviations. Refer to the chart of valid state abbreviations in Part A, Sec.18.

216–224 Payer ZIP Code 9 Required. Enter the valid nine digit ZIP Code assigned by the U.S. Postal Service. If only the first five digits are known, left justify information and fill the unused positions with blanks. For foreign countries, alpha characters are acceptable as long as the filer has entered a “1” (one) in the Foreign Entity Indicator, located in Field Position 52 of the “A” Record.

225–239 Payer’s Phone 15 Enter the payer’s phone number and extension. Number & Extension

240–748 Blank 509 Enter blanks.

749–750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.

Sec. 9. Payer “A” Record - Record Layout

Record

Type

Payment

Payer’s Blank Year TIN

TIN

Payer Name

Control

Last Filing

Indicator

1 2–5 6–11 12–20 21–24 25

1999–31 I.R.B. 179 August 2, 1999

Combined Federal/State

Filer

Type

of Return

Replacement

File Indicator

Correction

File Indicator

Amount

Blank Codes

Original

File Indicator

26 27 28–39 40–47 48 49 50

First Payer Name

Line

Second Payer Name

Line

Transfer

Agent Indicator

Payer Shipping

Address

Blank

Foreign

Entity Indicator

51 52 53–92 93–132 133 134–173

Payer’s Phone

Extension

Blank or Blank

CR/LF

Payer

City

Payer

State

Payer

ZIP Code

Number and

174-213 214-215 216-224 225-239 240-748 749-750

Sec. 10. Payee “B” Record - General Field Descriptions and Record Layouts

.01 The “B” Record contains the payment information from the information returns. When filing information returns, the format for the “B” Records will remain constant and is a fixed length of 750 positions. The record layout for field positions 1 through 543 is the same for all types of returns. Field positions 544 through 750 vary for each type of return to accommodate special fields for individual forms. In the “A” Record, the amount codes that appear in field positions 28 through 39 will be left-justified and filled with blanks. In the “B” Record, the filer must allow for all twelve Payment Amount Fields. For those fields not used, enter “0” (zero). For example, a payer reporting on Form 1099-MISC should enter “A” in field position 27 of the “A” Record, Type of Return. If reporting payments for Amount Codes 1, 2, 4, 7, A and C, the payer would report field positions 28 through 39 of the “A” Record as “1247AC /b /b /b /b /b.” (In this example, “ /b” denotes blanks. Do not enter the letter “ /b”.) In the “B” Record:

Positions 55 through 66 for Payment Amount 1 will represent rents. Positions 67-78 for Payment Amount 2 will represent royalties. Positions 79-90 for Payment Amount 3 will be “0” (zeros). Positions 91-102 for Payment Amount 4 will represent Federal income tax withheld. Positions 103-126 for Payment Amounts 5 and 6 will be “0” (zeros). Positions 127-138 for Payment Amount 7 will represent nonemployee compensation. Positions 139-162 for Payment Amounts 8 and 9 will be “0” (zeros). Positions 163-174 for Payment Amount A will represent crop insurance proceeds. Positions 175-186 for Payment Amount B will be “0” (zeros). Positions 187-198 for Payment Amount C will represent gross proceeds paid to an attorney in connection with legal services. .02 The following specifications include a field in the payee records called “Name Control” in which the first four characters of the payee’s surname are to be entered by the filer;

(a) If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Com

pliance with the following will facilitate IRS computer programs in identifying the correct name control: (1) The surname of the payee whose TIN is shown in the “B” Record should always appear first. If, however, the records

have been developed using the first name first, the filer must leave a blank space between the first and last names. (2) In the case of multiple payees, only the surname of the payee whose TIN (SSN, EIN, ITIN, or ATIN) is shown in the

“B” Record must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second Payee Name Line. .03 See Part A, Sec. 14, for further information concerning Taxpayer Identification Numbers (TINs). .04 For all fields marked “Required”, the transmitter must provide the information described under Description and Remarks. For those fields not marked “Required”, the transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and for the indicated length.

.05 All records must be a fixed length of 750 positions. .06 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required by state or local governments, or for the personal use of the filer. IRS does not use the data provided in the Special Data Entries Field; therefore, the IRS program does not check the content or format of the data entered in this field. It is the filer’s option to use the Special Data Entry Field. This field will not affect the processing of the “B” Records.

August 2, 1999 180 1999–31 I.R.B.

.07 Following the Special Data Entries Field in the “B” Record, payment fields have been allocated for State Income Tax Withheld and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by IRS/MCC.

.08 Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A, Sec. 16, to participate in this program. Filers may not file Forms 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-LTC, 1099MSA, 1099-S, 5498-MSA, and W-2G under the Combined Federal/State Filing Program.

.09 All alpha characters in the “B” Record must be uppercase. .10 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 000000001000 in the payment amount field.

.11 IRS strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous notices. Transmitters should be especially careful that the names, TINs, account numbers, types of income, and income amounts are correct.

.12 When reporting Form 1098, Mortgage Interest Statement and Form 1098-E, Student Loan Interest Statement, the “A” Record will reflect the name and TIN of the recipient of the interest or payment, the filer of the Forms 1098 and 1098-E (the payer). The “B” Record will reflect the individual paying the interest (borrower/payer of record) and the amount paid. For Form 1099-S, the “A” Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the “B” record will reflect the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the “A” Record will reflect the name and TIN of the educational institution receiving tuition payments. The “B” Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.

Record Name: Payee “B” Record

Field Position Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “B.”

2–5 Payment Year 4 Required. Enter “ 1999 ” (unless reporting prior year data; report the year which applies [1997, 1998, etc.]).

6 Corrected 1 Required for corrections only. Indicates a corrected return. Return Indicator Code Definition (See Note. ) G If this is a one-transaction correction or the first of a twotransaction correction C If this is the second transaction of a two-transaction correction Blank If this is not a return being submitted to correct information already processed by IRS

Note: C, G, and non-coded records must be reported using separate Payer “A” Records. Refer to Part A, Sec. 13, for specific instructions on how to file corrected returns.

7-10 Name Control 4 If determinable, enter the first four characters of the surname of the person whose TIN is being reported in positions 12-20 of the “B” Record; otherwise, enter blanks. This usually is the payee. If the name that corresponds to the TIN is not included in the first or second payee name line and the correct name control is not provided, a backup withholding notice may be generated for the record. Surnames of less than four characters should be left-justified, filling the unused positions with blanks. Special characters and imbedded blanks should be removed. In the case of a business, other than a sole proprietorship, use the first four significant characters of the business name. Disregard the word “the” when it is the first word of the name, unless there are only two words in the name. A dash (-) and an ampersand (&) are the only acceptable special characters. Surname prefixes are considered part of the surname, e.g., for Van Elm, the name control would be VANE.

1999–31 I.R.B. 181 August 2, 1999

Record Name: Payee “B” Record (Continued)

Field Position Field Title Length Description and Remarks

Note: Imbedded blanks, extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period [.], apostrophe [’]) should be removed from the Payee Name Lines. This information may be dropped during subsequent processing at IRS/MCC. A dash (–) and an ampersand (&) are the only acceptable special characters.

The following examples may be helpful to filers in developing the Name Control:

Name Name Control Individuals:

Jane Brow n BROW John A. Lee LEE* James P. En , Sr EN* John O’Nei ll ONEI Mary Van B uren VANB Juan De Je sus DEJE Gloria A. El-R oy EL-R Mr. John Smit h SMIT Joe McCa rthy MCCA Pedro Torr es-Lopes TORR Maria Lope z Moreno** LOPE Binh To La LA* Nhat Thi Pham PHAM Mark D’All esandro DALL

Corporations:

Sole Proprietor:

Partnership:

Estate:

The Firs t National Bank FIRS The H ideaway THEH A & B C afe A&BC 11TH Street Inc. 11TH

Mark Heml ock DBA The Sunshine Club HEML

Robert Aspe n and Bess Willow ASPE Harold Fir , Bruce Elm, and Joyce Spruce et al Ptr FIR*

Frank Whit e Estate WHIT Estate of Sheila Blue BLUE

Trusts and Fiduciaries:

Dais y Corporation Employee Benefit Trust DAIS Trust FBO The Cher ryblossom Society CHER

Exempt Organization:

Labo rer’s Union, AFL-CIO LABO St. Be rnard’s Methodist Church Bldg. Fund STBE

August 2, 1999 182 1999–31 I.R.B.

Record Name: Payee “B” Record (Continued)

Field Position Field Title Length Description and Remarks

*Name Controls of less than four significant characters must be left-justified and blank-filled. **For Hispanic names, when two last names are shown for an individual, derive the name control from the first last name.

11 Type of TIN 1 This field is used to identify the Taxpayer Identification Number (TIN) in positions 12-20 as either an Employer Identification Number (EIN), a Social Security Number (SSN), an Individual Taxpayer Identification Number (ITIN), or an Adoption Taxpayer Identification Number (ATIN). Enter the appropriate code from the following table:

Code Type of TIN Type of Account 1 EIN A business, organization, sole proprietor, or other entity 2 SSN An individual, including a sole proprietor or 2 ITIN An individual required to have a taxpayer identification number, but who is not eligible to obtain an SSN or 2 ATIN An adopted individual prior to the assignment of a social security number Blank N/A If the type of TIN is not determinable, enter a blank.

12–20 Payee’s 9 Required. Enter the nine digit Taxpayer Identification Number of the Taxpayer payee (SSN, ITIN, ATIN, or EIN). If an identification number has been Identification applied for but not received, enter blanks. Do not enter hyphens or alpha Number (TIN) characters. All zeros, ones, twos, etc., will have the effect of an incorrect TIN. If the TIN is not available, enter blanks. (See Note .)

Note: IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penalties. Payers who submit data with missing TINs, and have taken the required steps to obtain this infor- mation are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A Notices) or penalties for missing or incorrect TINs.

21–40 Payer’s 20 Enter any number assigned by the payer to the payee (e.g., checking or Account Number savings account number). Filers are encouraged to use this field. This For Payee number helps to distinguish individual payee records and should be unique for each document. Do not use the payee’s TIN since this will not make each record unique. This information is particularly useful when corrections are filed. This number will be provided with the backup withholding notification and may be helpful in identifying the branch or subsidiary reporting the transaction. Do not define data in this field in packed decimal format. If fewer than twenty characters are used, filers may either left or right justify, filling the remaining positions with blanks.

41–44 Payer’s Office 4 Enter office code of payer; otherwise, enter blanks . For payers with Code multiple locations, this field may be used to identify the location of the office submitting the information return.

45–54 Blank 10 Enter blanks.

1999–31 I.R.B. 183 August 2, 1999

Record Name: Payee “B” Record (Continued)

Field Position Field Title Length Description and Remarks

Payment Required. Filers should allow for all payment amounts. For those not Amount Fields used, enter zeros. For example: If position 27, Type of Return, of the “A” (Must be numeric) Record, is “A” (for 1099-MISC) and positions 28-39, Amount Codes, are (See Note. ) “1247AC /b /b /b /b /b /b”, this indicates the payer is reporting any or all six payment amounts in all of the following “B” Records. (In this example, “ /b”denotes blanks in the designated positions. Do not enter the letter “b”.) Payment Amount 1 will represent rents; Payment Amount 2 will represent royalties; Payment Amount 3 will be all “0” (zeros); Payment Amount 4 will represent Federal income tax withheld; Payment Amounts 5 and 6 will be all “0” (zeros); Payment amount 7 will represent nonemployee compensation, Payment Amounts 8 and 9 will be all “0” (zeros); Payment Amount A will represent crop insurance proceeds; Payment Amount B will be all “0” (zeros); and Payment Amount C will represent gross proceeds paid to an attorney in connection with legal services. Each payment field must contain 12 numeric characters. Each payment amount must contain U.S. dollars and cents. The right-most two positions represent cents in the payment amount fields. Do not enter dollar signs, commas, decimal points, or negative payments, except those items that reflect a loss on Form 1099-B. Positive and negative amounts are indicated by placing a “+” (plus) or “–” (minus) sign in the left-most position of the payment amount field. A negative over punch in the units position may be used, instead of a minus sign, to indicate a negative amount. If a plus sign, minus sign, or negative over punch is not used, the number is assumed to be positive. Negative over punch cannot be used in PC created files. Payment amounts must be rightjustified and unused positions must be zero-filled. Federal income tax withheld cannot be reported as a negative amount on any form.

Note: Filers must enter numeric information in all payment fields when filing magnetically or electronically. However, when reporting information on the statement to recipient, the payer may be instructed to leave a box blank. Follow the guidelines provided in the paper instructions for the statement to recipient.

55–66 Payment 12 The amount reported in this field represents payments for Amount Code 1 Amount 1* in the “A” Record.

67–78 Payment 12 The amount reported in this field represents payments for Amount Code 2 Amount 2* in the “A” Record.

79–90 Payment 12 The amount reported in this field represents payments for Amount Code 3 Amount 3* in the “A” Record.

91–102 Payment 12 The amount reported in this field represents payments for Amount Code 4 Amount 4* in the “A” Record.

103–114 Payment 12 The amount reported in this field represents payments for Amount Code 5 Amount 5* in the “A” Record.

115–126 Payment 12 The amount reported in this field represents payments for Amount Code 6 Amount 6* in the “A” Record.

127–138 Payment 12 The amount reported in this field represents payments for Amount Code 7 Amount 7* in the “A” Record.

August 2, 1999 184 1999–31 I.R.B.

Record Name: Payee “B” Record (Continued)

Field Position Field Title Length Description and Remarks

139–150 Payment 12 The amount reported in this field represents payments for Amount Code 8 Amount 8* in the “A” Record.

151–162 Payment 12 The amount reported in this field represents payments for Amount Code 9 Amount 9* in the “A” Record.

163–174 Payment 12 The amount reported in this field represents payments for Amount Code A Amount A* in the “A” Record.

175–186 Payment 12 The amount reported in this field represents payments for Amount Code B Amount B* in the “A” Record.

187–198 Payment 12 The amount reported in this field represents payments for Amount Code C Amount C* in the “A” Record.

*If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this rev- enue procedure govern.

199–246 Reserved 48 Enter blanks.

247 Foreign 1 If the address of the payee is in a foreign country, enter a “1” (one) in Country this field; otherwise, enter blank. When filers use this indicator, they may Indicator use a free format for the payee city, state, and ZIP Code. Address information must not appear in the First or Second Payee Name Line.

248–287 First Payee 40 Required. Enter the name of the payee (preferably surname first) whose Name Line Taxpayer Identification Number (TIN) was provided in positions 12-20 of (See Notes. ) the “B” Record. Left justify and fill unused positions with blanks. If more space is required for the name, utilize the Second Payee Name Line Field. If there are multiple payees, only the name of the payee whose TIN has been provided should be entered in this field. The names of the other payees may be entered in the Second Payee Name Line Field. If reporting information for a sole proprietor, the individual’s name must always be present, preferably on the First Payee Name Line. The use of the business name is optional in the Second Payee Name Line Field.

Note 1: Extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period [.], apostrophe [’]) should be removed from the Payee Name Lines. This information may be dropped during subsequent processing at IRS/MCC. A dash (–) and an ampersand (&) are the only acceptable special characters.

N ote 2: End the First Payee Name Line with a full word. Do not split words.

Note 3: When reporting Form 1098, Mortgage Interest Statement, and Form 1098-E, Student Loan Interest Statement, the “A” Record will reflect the name and TIN of the recipient of the interest or payment, the filer of Forms 1098 and 1098-E (the payer). The “B” Record will reflect the individual paying the interest (the borrower/payer of record) and the amount paid. For Form 1099-S, the “A” Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the “B” Record will reflect the seller/transferor. When reporting Form 1098-T, Tuition Payments State- ment, the “A” Record will reflect the name and TIN of the educational institution receiving tuition payments. The “B” Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.

1999–31 I.R.B. 185 August 2, 1999

Record Name: Payee “B” Record (Continued)

Field Position Field Title Length Description and Remarks

Note 4: For Form 5498, Inherited IRAs, enter the beneficiary’s name followed by the word “beneficiary.” For example, “Brian Young as beneficiary of Joan Smith” or something similar that signifies that the IRA was once owned by Joan Smith. Filers may abbreviate the word “beneficiary” as, for example, “benef.” Refer to the “ 1999 Instructions for Forms 1099, 1098, 5498, and W-2G.” The beneficiary’s TIN must be reported in positions 12-20 of the “B” Record.

Note 5: When reporting Form 1099-LTC, Long-Term Care and Accelerated Death Benefits, the Payee Name Line of the “B” Record will reflect the policyholder. The name of the insured will be reported in Field Positions 557-596 of the Payee “B” Record.

288–327 Second Payee 40 If there are multiple payees, (e.g., partners, joint owners, or spouses), use Name Line this field for those names not associated with the TIN provided in positions 12-20 of the “B” Record or if not enough space was provided in the First Payee Name Line, continue the name in this field. (See Note. ) Do not enter address information. It is important that filers provide as much payee information to IRS/MCC as possible to identify the payee associated with the TIN. Left justify and fill unused positions with blanks. Fill with blanks if no entries are present for this field.

Note: End the First Payee Name Line with a full word. Do not split words. Begin the Second Payee Name Line with the next sequential word.

328–367 Blank 40 Enter blanks.

368–407 Payee Mailing 40 Required. Enter mailing address of payee. Street address should include Address number, street, apartment or suite number (or P.O. Box if mail is not delivered to street address). Left justify information and fill unused positions with blanks. This field must not contain any data other than the payee’s mailing address.

For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must adhere to the correct format for the payee city, state, and ZIP Code.

For foreign addresses, filers may use the payee city, state, and ZIP Code as a continuous 51 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Country Indicator in position 247 must contain a “1” (one).

408–447 Blank 40 Enter blanks.

448–487 Payee City 40 Required. Enter the city, town or post office. Left justify information and fill the unused positions with blanks. Enter APO or FPO if applicable. Do not enter state and ZIP Code information in this field.

488–489 Payee State 2 Required. Enter the valid U.S. Postal Service state abbreviations for states or the appropriate postal identifier (AA, AE, or AP) described in Part A, Sec. 18.

490–498 Payee ZIP Code 9 Required. Enter the valid ZIP Code (nine or five digit) assigned by the U.S. Postal Service. If only the first five digits are known, left justify information and fill unused positions with blanks. For foreign countries, alpha characters are acceptable as long as the filer has entered a “1” (one) in the Foreign Country Indicator, located in position 247 of the “B” Record.

499–543 Blank 45 Enter blanks.

August 2, 1999 186 1999–31 I.R.B.

Standard Payee “B” Record Format For

All Types of Returns, Positions 1-543

Record

Type

Payment

Year

Corrected

Return Indicator

Name Control

Type of

TIN

Payee’s

TIN

Payer’s Account

Number

1 2–5 6 7–10 11 12–20 21–40

Payer’s

Blank

Payment

Amount

3

Payment

Amount

4

Payment

Amount

5

Office

Payment

Amount

1

Payment

Amount

2

Code

41–44 45–54 55–66 67–78 79–90 91–102 103–114

Payment

Payment

Amount

8

Payment

Amount

9

Payment

A

Amount

Payment

Amount

7

Amount

Payment

Amount

B

6

115–126 127–138 139–150 151–162 163–174 175–186

Payment

Second Payee

Blank Name Line

Amount

Reserved

Foreign Country Indicator

First Payee Name Line

C

187–198 199–246 247 248–287 288–327 328–367

Payee Mailing Address

Payee Blank

City

Payee

State

Payee Blank ZIP Code

368–407 408–447 448–487 488–489 490–498 499–543

The following sections define the field positions for the different types of returns in the Payee “B” Record (positions 544- 750): (l) Forms 1098, 1098-E (2) Form 1098-T (3) Form 1099-A (4) Form 1099-B (5) Form 1099-C (6) Form 1099-DIV* (7) Form 1099-G* (8) Form 1099-INT* (9) Form 1099-LTC (10) Form 1099-MISC* (11) Form 1099-MSA (12) Form 1099-OID* (13) Form 1099-PATR* (14) Form 1099-R* (15) Form 1099-S (16) Form 5498* (17) Form 5498-MSA (18) Form W-2G

1999–31 I.R.B. 187 August 2, 1999

• These forms may be filed through the Combined Federal/State Filing Program. IRS/MCC will forward these records to participating states for filers who have been approved for the program. See Part A, Sec. 16 for information about the program, including specific codes for the record layouts.

(1) Payee “B” Record - Record Layout Positions 544-750 for Forms 1098 and 1098-E

Field Position Field Title Length Description and Remarks

544–662 Blank 119 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–748 Blank 26 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 Forms 1098 and 1098-E

Blank

Special

Data Entries

Blank Blank or CR/LF

544–662 663–722 723–748 749–750

Note: Until regulations are adopted, no penalties will be imposed under section 6721 or 6722 for failure to file or furnish cor- rect Forms 1098-T if you made a good faith effort to file and furnish them.

(2) Payee “B” Record - Record Layout Positions 544-750 for Form 1098-T

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Half-time 1 Enter “1” (one) if the student was at least a half-time student during any Student Indicator academic period that began in 1999. Otherwise, enter a blank.

548 Graduate 1 Enter “1” (one) if the student is enrolled exclusively in a graduate level Student Indicator program. Otherwise, enter a blank.

549–662 Blank 114 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for the filing requirements. If this field is not utilized, enter blanks.

723–748 Blank 26 Enter blanks

749–750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.

August 2, 1999 188 1999–31 I.R.B.

Payee “B” Record - Record Layout Positions 544-750 Form 1098-T

Graduate

Student Indicator

Blank

Half-time

Student Indicator

Blank

Special

Data Entries

Blank or Blank

CR/LF

544–546 547 548 549–662 663–722 723–748 749–750

(3) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-A

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Personal 1 Enter the appropriate indicator from the table below: Liability Indicator Indicator Usage 1 Borrower was personally liable for repayment of the debt. Blank Borrower was not personally liable for repayment of the debt.

548–555 Date of Lender’s 8 Enter the acquisition date of the secured property or the date the lender first Acquisition or knew or had reason to know the property was abandoned, in the format Knowledge of YYYYMMDD (i.e., 1999 1022). Do not enter hyphens or slashes. Abandonment

For dates with one-digit months (i.e., January-September) or days (i.e., 1-9), enter a zero before the month or day. January 1, 1999, would be 19990101. Do not enter blanks, alphas or special characters.

556–594 Description 39 Enter a brief description of the property. For real property, enter the of Property address, or, if the address does not sufficiently identify the property, enter the section, lot and block. For personal property, enter the type, make and model (e.g., Car-1998 Buick Regal or Office Equipment). Enter “CCC” for crops forfeited on Commodity Credit Corporation loans. If fewer than 39 positions are required, left justify information and fill unused positions with blanks.

595–662 Blank 68 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for the filing requirements. If this field is not utilized, enter blanks.

723–748 Blank 26 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 Form 1099-A

Date of Lender’s

Acquisition or Knowledge of Abandonment

Description

of Property

Blank

Personal Liability Indicator

Blank

544–546 547 548–555 556–594 595–662

1999–31 I.R.B. 189 August 2, 1999

663–722 723–748 749–750

(4) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-B

Field Position Field Title Length Description and Remarks

544 Second TIN 1 Enter “2” to indicate notificationby IRS twice within three calendar years Notice that the payee provided an incorrect name and/or TIN combination; (Optional) enter a blank.

545–546 Blank 2 Enter blanks.

547 Gross 1 Enter the appropriate indicator from the following table, to identify amount Proceeds reported in Amount Code 2; otherwise, enter blanks. Indicator

Indicator Usage 1 Gross proceeds 2 Gross proceeds less commissions and option premiums

548–555 Date of Sale 8 For broker transactions, enter the trade date of the transaction. For barter exchanges, enter the date when cash, property, a credit, or scrip is actually or constructively received in the format YYYYMMDD (e.g., 1999 1022). Enter blanks if this is an aggregate transaction. Do not enter hyphens or slashes.

For dates with one-digit months (i.e., January-September) or days (i.e., 1-9), enter a zero before the month or day. January 2, 1999, would be 19990102. Do not enter blanks, alphas or special characters.

556–568 CUSIP Number 13 For broker transactions only, enter the CUSIP (Committee on Uniform Security Identification Procedures) number of the item reported for Amount Code 2 (stocks, bonds, etc.). Enter blanks if this is an aggregate transaction. Enter “0” (zeros) if the number is not available. Right justify information and fill unused positions with blanks.

569–607 Description 39 If fewer than 39 characters are required, left justify information and fill unused positions with blanks. For broker transactions, enter a brief description of the disposition item (e.g., 100 shares of XYZ Corp.). For regulated futures and forward contracts, enter “RFC” or other appropriate description (see Note ). For bartering transactions, show the services or property provided.

608–662 Blank 55 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

August 2, 1999 190 1999–31 I.R.B.

(4) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-B (Continued)

Field Position Field Title Length Description and Remarks

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries field.

747–748 Blank 2 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-B

Second TIN Notice

(Optional)

CUSIP Description Number

Blank

Gross Proceeds Indicator

Date of

Sale

544 545–546 547 548–555 556–568 569–607

Local Income

Tax Withheld

State Income

Tax Withheld

Blank

Special

Data Entries

Blank

Blank

or CR/LF

608–662 663–722 723–734 735–746 747–748 749–750

(5) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-C

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Bankruptcy 1 Enter “1” (one) to indicate the debt was discharged in bankruptcy, if Indicator known. Otherwise, enter a blank.

548–555 Date Canceled 8 Enter the date the debt was canceled in the format of YYYYMMDD (i.e., 19991022 ). Do not enter hyphens or slashes.

For dates with one-digit months (i.e., January-September) or days (i.e., 1-9), enter a zero before the month or day. January 2, 1999, would be 19990102. Do not enter blanks, alphas or special characters.

556–594 Debt 39 Enter a description of the origin of the debt, such as student loan, Description mortgage, or credit card expenditure. If a combined Form 1099-C and 1099-A is being filed, also enter a description of the property.

595–662 Blank 68 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

1999–31 I.R.B. 191 August 2, 1999

(5) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-C (Continued)

Field Position Field Title Length Description and Remarks

723–748 Blank 26 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-C

Bankruptcy Blank

Indicator

Date Canceled

Debt Blank Description

Special

Data Entries

544–546 547 548–555 556–594 595–662 663–722

Blank Blank or CR/LF

723–748 749–750

(6) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-DIV

Field Position Field Title Length Description and Remarks

544 Second TIN 1 Enter “2” to indicate notification by IRS twice within three calendar years Notice that the payee provided an incorrect name and/or TIN combination; (Optional) otherwise, enter a blank.

545–546 Blank 2 Enter blanks.

547–586 Foreign Country 40 Enter the name of the foreign country or U.S.possession to which the or U.S. withheld foreign tax (Amount Code 9) applies. Otherwise, enter blanks. Possession

587–662 Blank 76 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

August 2, 1999 192 1999–31 I.R.B.

(6) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-DIV (Continued)

Field Position Field Title Length Description and Remarks

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/ Combined Federal/State Filing Program, enter the valid state code from State Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-DIV

544 545-546 547-586 587-662 663-722

723–734 735–746 747–748 749–750

(7) Payee “B” Record-Record Layout Positions 544-750 for Form 1099-G

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Trade or 1 Enter “1” (one) to indicate the state or local income tax refund, credit, or Business offset (Amount Code 2) is attributable to income tax that applies exIndicator clusively to income from a a trade or business.

Indicator Usage 1 Income tax refund applies exclusively to a trade or business. Blank Income tax refund is a general tax refund.

548–551 Tax Year 4 Enter the tax year for which the refund, credit, or offset (Amount Code 2) of Refund was issued. The tax year must reflect the year for which the payment was made, not the tax year of the Form 1099-G. The tax year must be in the four position format of YYYY (i.e., 1998) . The valid range of years for the refund is 1989 through 1998.

552–662 Blank 111 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. You may enter your routing and transit number (RTN) here. If this field is not utilized, enter blanks.

1999–31 I.R.B. 193 August 2, 1999

(7) Payee “B” Record-Record Layout Positions 544-750 for Form 1099-G

Field Position Field Title Length Description and Remarks

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/ Combined Federal/State Filing Program, enter the valid state code from State Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-G

Tax Year

of Refund

State Income

Tax Withheld

Blank

Trade or Business Indicator

Blank

Special

Data Entries

544–546 547 548–551 552–662 663–722 723–734

Local Income

Tax Withheld

Combined

State Code

Blank or CR/LF

Federal/

735–746 747–748 749–750

(8) Payee “B” Record—Record Layout Positions 544-750 for Form 1099-INT

Field Position Field Title Length Description and Remarks

544 Second TIN 1 Enter “2” to indicate notification by IRS twice within three calendar years Notice that the payee provided an incorrect name and/or TIN combination; (Optional) otherwise, enter a blank.

545–546 Blank 2 Enter blanks.

547–586 Foreign Country 40 Enter the name of the foreign country or U.S. possession to which the or U.S. withheld foreign tax (Amount Code 6) applies. Otherwise, enter blanks. Possession

587–662 Blank 76 Enter blanks.

August 2, 1999 194 1999–31 I.R.B.

(8) Payee “B” Record—Record Layout Positions 544-750 for Form 1099-INT (Continued)

Field Position Field Title Length Description and Remarks

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. You may enter your routing and transit number (RTN) here. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/ Combined Federal/State Filing Program, enter the valid state code from State Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-INT

Second

TIN Notice (Optional)

State Income

Tax Withheld

Blank

Foreign Country

or U.S. Possession

Blank

Special

Data Entries

544 545–546 547–586 587–662 663–722 723–734

Local Income

Tax Withheld

Combined

State Code

Blank or CR/LF

Federal/

735–746 747–748 749–750

(9) Payee “B” Record—Record Layout Positions 544-750 for Form 1099-LTC

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Type of 1 Enter the appropriate indicator from the following table; otherwise, enter Payment blanks. Indicator

1999–31 I.R.B. 195 August 2, 1999

(9) Payee “B” Record—Record Layout Positions 544-750 for Form 1099-LTC (Continued)

Field Position Field Title Length Description and Remarks

Indicator Usage 1 Per diem 2 Reimbursed amount

548–556 Social 9 Required. Enter the Social Security Number of the insured Security. Number of Insured

557–596 Name of 40 Required. Enter the name of the insured. Insured

597–636 Address 40 Required. Enter the address of the insured. Street address should inof Insured clude number, street, apartment or suite number (or P.O. Box if not delivered to street address). Left justify information and fill unused positions with blanks. This field must not contain any data other than payee’s address.

For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must adhere to the correct format for the insured’s city, state, and ZIP Code.

For foreign addresses, filers may use the insured’s city, state, and ZIP Code as a continuous 51 position field. Enter information in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign Country Indicator in position 247 must contain a “1” (one).

637–676 City of 40 Required. Enter the city, town, or post office. Left justify information Insured and fill the unused positions with blanks. Enter APO or FPO, if applicable. Do not enter state and Zip Code information in this field.

677–678 State of 2 Required. Enter the valid U.S. Postal Service state abbreviations for Insured states or the appropriate postal identifier (AA, AE, or AP) described in Part A, Sec. 18.

679–687 ZIP Code 9 Required. Enter the valid nine digit ZIP Code assigned by the U.S. Postal of Insured Service. If only the first five digits are known, left justify information and fill the unused positions with blanks. For foreign countries, alpha characters are acceptable as long as the filer has entered a “1” (one) in the Foreign Country Indicator, located in position 247 of the “B” Record.

688 Status of 1 Enter the appropriate code from the table below to indicate the status of the Illness illness of the insured; otherwise, enter blank: Indicator (Optional) Indicator Usage 1 Chronically ill 2 Terminally ill

689–696 Date 8 Enter the latest date of a doctor’s certification of the status of the insured’s Certified illness. The format of the date is YYYYMMDD (e.g., 19991022 ). (Optional)

For dates with one-digit months (i.e., January-September) or days (i.e., 1-9), enter a zero before the month or day. January 2, 1999, would be 19990102. Do not enter blanks, alphas or special characters.

697–722 Blank 26 Enter blanks.

August 2, 1999 196 1999–31 I.R.B.

(9) Payee “B” Record—Record Layout Positions 544-750 for Form 1099-LTC (Continued)

Field Position Field Title Length Description and Remarks

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled.

747–748 Blank 2 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record—Record Layout Positions 544-750 for Form 1099-LTC

Name of

Insured

Address

of Insured

City of Insured

State of Insured

ZIP Code

of Insured

Blank

Type of Payment Indicator

SSN of Insured

544–546 547 548–556 557–596 597–636 637–676 677–678 679–687

Status of

Illness Indicator (Optional)

Local Income

Tax Withheld

Date Certified (Optional)

Blank

State Income

Tax Withheld

Blank Blank or CR/LF

688 689–696 697–722 723–734 735–746 747–748 749–750

(10) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MISC

Field Position Field Title Length Description and Remarks

544 Second TIN 1 Enter “2” to indicate notification by IRS twice within three calendar years Notice that the payee provided an incorrect name and/or TIN combination; other(Optional) wise, enter a blank.

545–546 Blank 2 Enter blanks.

547 Direct Sales 1 Enter a “1” (one) to indicate sales of $5,000 or more of consumer products Indicator to a person on a buy-sell, deposit-commission, or any other commission (See Note. ) basis for resale anywhere other than in a permanent retail establishment. Otherwise, enter a blank.

Note: If reporting a direct sales indicator only, use Type of Return “A” in Field Position 27, and Amount Code 1 in Field Position 28 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros.

548–662 Blank 115 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

1999–31 I.R.B. 197 August 2, 1999

(10) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MISC (Continued)

Field Position Field Title Length Description and Remarks

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/ Combined Federal/State Filing Program, enter the valid state code from State Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record—Record Layout Positions 544-750 for Form 1099-MISC

Second

TIN Notice (Optional)

Local Income

Tax Withheld

State Income

Tax Withheld

Blank

Direct

Sales Indicator

Blank

Special

Data Entries

544 545–546 547 548–662 663–722 723–734 735–746

Combined

Blank or CR/LF

Federal/

State Code

747–748 749–750

(11) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MSA

Field Position Field Title Length Description and Remarks

544 Blank 1 Enter blank.

545 Distribution 1 Required. Enter the applicable code to indicate the type of payment: Code

Code Category 1 Normal distribution 2 Excess contributions 3 Disability 4 Death distribution other than code 6 (This includes distri- butions to a spouse, nonspouse, or estate beneficiary in the year of death and to an estate after the year of death.) 5 Prohibited transaction

August 2, 1999 198 1999–31 I.R.B.

11) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MSA (Continued)

Field Position Field Title Length Description and Remarks

6 Death distribution after year of death to a nonspouse beneficiary (Do not use for distribution to an estate.)

546 Blank 1 Enter a blank.

547 Medicare+Choice 1 Enter “1” (one) if distributions are from a Medicare+Choice MSA. Indicator Otherwise, enter a blank.

548–662 Blank 115 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field .

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Blank 2 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record—Record Layout Positions 544-750 for Form 1099-MSA

Distribution Blank Blank

Code

Medicare+ Choice MSA

Indicator

Special Data Blank

Entries

544 545 546 547 548–662 663–722

723–734 735–746 747–748 749–750

1999–31 I.R.B. 199 August 2, 1999

(12) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-OID

Field Position Field Title Length Description and Remarks

544 Second TIN 1 Enter “2” to indicate notification by IRS twice within three calendar years Notice hat the payee provided an incorrect name and/or TIN combination; (Optional) otherwise, enter a blank.

545–546 Blank 2 Enter blanks.

547–585 Description 39 Required. Enter the CUSIP number, if any. If there is no CUSIP number, enter the abbreviation for the stock exchange and issuer, the coupon rate, and year ( must be 4 digit year ) of maturity (e.g., NYSE XYZ 12 1/2 1999 ). Show the name of the issuer if other than the payer. If fewer than 39 characters are required, left justify information and fill unused positions with blanks.

586–662 Blank 77 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/ Combined Federal/State Filing Program, enter the valid state code from State Code Part A, Sec. 16, Table l. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-OID

Second

TIN Notice (Optional)

State Income

Tax Withheld

Blank Description Blank

Special

Data Entries

544 545–546 547–585 586–662 663–722 723–734

735–746 747–748 749–750

August 2, 1999 200 1999–31 I.R.B.

(13) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-PATR

Field Position Field Title Length Description and Remarks

544 Second TIN 1 Enter “2” to indicate notification by IRS twice within three calendar years Notice that the payee provided an incorrect name and/or TIN combination; (Optional) otherwise, enter a blank.

545–662 Blank 118 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/ Combined Federal/State Filing Program, enter the valid state code from State Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for 1099-PATR

Second

TIN Notice (Optional)

Local Income

Tax Withheld

Combined

State Code

Blank or CR/LF

State Income

Tax Withheld

Blank

Special

Data Entries

Federal/

544 545–662 663–722 723–734 735–746 747–748 749–750

(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R

Field Position Field Title Length Description and Remarks

544 Blank 1 Enter blank.

545–546 Distribution Code 2 Required. Enter at least one distribution code from the table below. More (For a detailed than one code may apply. If only one code is required, it must be entered explanation of the in position 545 and position 546 must be blank. A blank in position 545 is distribution codes not acceptable. Position 545 must contain a numeric code in all cases ex see the “ 1999 cept when using Code D, E, F, G, H, J, L, M, P, or S. Distribution Code A, Instructions for when applicable, must be entered in position 546 with the applicable

1999–31 I.R.B. 201 August 2, 1999

(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R (Continued)

Field Position Field Title Length Description and Remarks

Forms 1099, 1098, numeric code in position 545. When using Code P for an IRA distribution 5498, and W-2G.”) under section 408(d)(4) of the Internal Revenue Code, the filer may also enter Code 1 or 2, if applicable. Only three numeric combinations are acceptable, Codes 8 and 1, 8 and 2, and codes 8 and 4, on one return. These three combinations can be used only if both codes apply to the distribution being reported. If more than one numeric code is applicable to different parts of a distribution, except the three combinations mentioned above, report two separate “B” Records. Distribution Codes E, F, and H cannot be used with any other codes. Distribution Code G may be used with Distribution Code 4 only, if applicable.

Code Category 1 *Early distribution, no known exception (in most cases, under age 59 ¹ ⁄2) 2 *Early distribution, exception applies [as defined in section 72(q), (t), or (v)] (other than Codes 3 or 4) 3 *Disability 4 *Death (includes payments to an estate or other beneficiary) 5 *Prohibited transaction 6 Section 1035 exchange (a tax-free exchange of life insur- ance, annuity, or endowment contracts) 7 *Normal distribution (Do not use if Code J or M applies.) 8 *Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 1999 9 PS 58 costs (premiums paid by a trustee or custodian for current insurance protection) A May be eligible for 5- or 10-year tax option D *Excess contributions plus earnings/excess deferrals taxable in 1997 E Excess annual additions under section 415 F Charitable gift annuity G Direct rollover to IRA H *Direct rollover to qualified plan or tax-sheltered annuity or the distribution is from a conduit IRA and is made payable to the trustee of or is transferred to an employer plan J Distribution from a Roth IRA. (This code may be used with Code 1, 2, 3, 4, 5, 8, or P.) L Loans treated as deemed distributions under section 72(p) M Distribution from an education IRA (Ed IRA) P *Excess contributions plus earnings/excess deferrals taxable in 1998 (See the explanation for Code 8.) R Recharacterized IRA contribution (To another type of IRA by a trustee-to-trustee transfer or with the same trustee) (See Note. ) S *Early distribution from a SIMPLE IRA in first 2 years, no known exception (Do not use Code S if Code 3 or 4 applies.)

August 2, 1999 202 1999–31 I.R.B.

(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R (Continued)

Field Position Field Title Length Description and Remarks

*If reporting an IRA, SEP, or SIMPLE distribution, use the IRA/SEP/SIMPLE Indicator of “1” (one) in position 548 of the Payee “B” Record.

Note: The trustee of the first IRA must report the recharacterization as a distribution on Form 1099-R (and the original con- tribution and its character on Form 5498).

547 Taxable Amount 1 Enter “1” (one) only if the taxable amount of the payment entered for Not Determined Payment Amount Field 1 (Gross distribution) of the “B” Record cannot be Indicator computed; otherwise, enter blank. [If Taxable Amount Not Determined Indicator is used, enter “0” (zeros) in Payment Amount Field 2 of the Payee “B” Record.] Please make every effort to compute the taxable amount.

548 IRA/SEP/ 1 Enter “1” (one) for an IRA, SEP, or SIMPLE; otherwise, enter a blank. SIMPLE (See Note. ) If the IRA/SEP/SIMPLE Indicator is used, enter the amount Indicator of the distribution in Payment Amount Field A of the Payee “B” Record. It is not necessary to mark the indicator for a distribution from a Roth or education IRA or for an IRA recharacterization.

Note: For Form 1099-R, generally, report the total amount distributed from a traditional IRA, SEP, or SIMPLE in Pay- ment Amount Field A (IRA/SEP/SIMPLE Distribution), as well as Payment Amount Field 1 (Gross Distribution) of the “B” Record. Refer to the “ 1999 Instructions for Forms 1099, 1098, 5498, and W-2G” for exceptions (Box 2a instructions).

549 Total 1 Enter a “1” (one) only if the payment shown for Amount Code 1 is a total Distribution distribution that closed out the account; otherwise, enter a blank. Indicator (See Note )

Note: A total distribution is one or more distributions within one tax year in which the entire balance of the account is distributed. Any distribution that does not meet this definition is not a total distribution.

550–551 Percentage 2 Use this field when reporting a total distribution to more than one person, of Total such as when a participant is deceased and a payer distributes to two or Distribution more beneficiaries. Therefore, if the percentage is 100, leave this field blank. If the percentage is a fraction, round off to thenearest whole number (for example, 10.4 percent will be 10 percent; 10.5 percent will be 11 percent). Enter the percentage received by the person whose TIN is included in positions 12-20 of the “B” Record. This field must be right justified, and unused positions must be zero-filled. If not applicable, enter blanks. Filers need not enter this information for any IRA distribution or for direct rollovers.

552–662 Blank 111 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. The state/ payer’s state number, state distribution, name of locality, and/or local distribution can be entered in this field. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

1999–31 I.R.B. 203 August 2, 1999

(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R (Continued)

Field Position Field Title Length Description and Remarks

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries field.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/State Combined Federal/State Filing Program, enter the valid state code from Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record—Record Layout Positions 544-750 for Form 1099-R

IRA/SEP/SIMPLE

Indicator

Distribution Blank

Code

Taxable Amount Not

Determined

Indicator

Total Distribution

Indicator

544 545–546 547 548 549

Local Income

Tax Withheld

Combined

State Code

Blank or CR/LF

Percentage

of Total Distribution

State Income

Tax Withheld

Blank

Special

Data Entries

Federal/

550–551 552–662 663–722 723–734 735–746 747–748 749–750

(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-S

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Property or 1 Required. Enter “1” (one) if the transferor received or will receive Services property (other than cash and consideration treated as cash in computing Indicator gross proceeds) or services as part of the consideration for the property transferred. Otherwise, enter a blank.

548–555 Date of 8 Required. Enter the closing date in the format YYYYMMDD Closing (e.g., 1999 1022). Do not enter hyphens or slashes.

For dates with one-digit months (i.e., January-September) or days (i.e., 1-9), enter a zero before the month or day. January 2, 1999, would be 19990102. Do not enter blanks, alphas or special characters.

August 2, 1999 204 1999–31 I.R.B.

(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-S

Field Position Field Title Length Description and Remarks

556–594 Address or 39 Required. Enter the address of the property transferred (including Legal city, state, and ZIP Code). If the address does not sufficiently identify the Description property, also enter a legal description, such as section, lot, and block. For timber royalties, enter “TIMBER.” If fewer than 39 positions are required, left justify information and fill unused positions with blanks.

595–662 Blank 68 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Blank 2 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 1099-S

Address or Legal Description

Blank

Property or Services

Indicator

Date of Closing

Blank

Special

Data Entries

544–546 547 548–555 556–594 595–662 663–722

723–734 735–746 747–748 749–750

Note: When reporting Form 1099-S, the “B” Record will reflect the seller/transferor information.

(16) Payee “B” Record - Record Layout Positions 544-750 for Form 5498

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

1999–31 I.R.B. 205 August 2, 1999

(16) Payee “B” Record - Record Layout Positions 544-750 for Form 5498

Field Position Field Title Length Description and Remarks

547 IRA 1 Required, if applicable. Enter “1” (one) if only reporting a rollIndicator over (Amount Code 2) or Fair Market Value (Amount Code 4) for an IRA. ( I ndividual Otherwise, enter a blank. R etirement A ccount)

548 SEP 1 Required, if applicable. Enter “1” (one) if only reporting rollIndicator over (Amount Code 2) or Fair Market Value (Amount Code 4) for a SEP. ( S implified Otherwise, enter a blank. E mployee P ension)

549 SIMPLE 1 Required, if applicable. Enter “1” (one) if only reporting a rollIndicator over (Amount Code 2) or Fair Market Value (Amount Code 4) for a ( S avings I ncentive SIMPLE. Otherwise, enter a blank. M atch P lan for E mployees)

550 Roth 1 Required, if applicable. Enter “1” (one) if only reporting a rollIRA Indicator over (Amount Code 2) or Fair Market Value (Amount Code 4) for a Roth IRA. Otherwise, enter a blank.

551 Recharacter- 1 Required, if applicable. Enter “1” (one) if reporting any recharacteri**ization** Indicator zation. Otherwise, enter a blank.

552 Education 1 Required, if applicable. Enter “1” (one) if only reporting a rollIRA Indicator over (Amount Code 2) or Fair Market Value (Amount Code 4) for an Education IRA. Otherwise, enter a blank.

553–662 Blank 110 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–746 Blank 24 Enter blanks.

747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the Federal/State Combined Federal/State Filing Program, enter the valid state code from Code Part A, Sec. 16, Table 1. For those payers or states not participating in this program, enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 5498

Education

IRA Indicator

IRA Blank Indicator

SEP Indicator

SIMPLE Indicator

Roth

IRA Indicator

Recharacter

-ization Indicator

544–546 547 548 549 550 551 552

August 2, 1999 206 1999–31 I.R.B.

Payee “B” Record - Record Layout Positions 544-750 for Form 5498 (Continued)

Blank or CR/LF

Combined

Blank

Special

Data Entries

Blank

Federal/

State Code

553–662 663–722 723–746 747–748 749–750

(17) Payee “B” Record - Record Layout Positions 544-750 for Form 5498-MSA Information

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Medicare+ 1 Enter “1” for Medicare+Choice MSA. Choice Indicator

548–662 Blank 115 Enter blanks.

663–722 Special 60 This portion of the “B” Record may be used to record information for state Data or local government reporting or for the filer’s own purposes. Payers Entries should contact the state or local revenue departments for filing require- ments, If this field is not utilized, enter blanks.

723–748 Blank 26 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750 for Form 5498-MSA

CR/LF

Blank

Medicare + Choice MSA

Indicator

Special Data Blank

Blank or Blank Entries CR/LF

544–546 547 548–662 663–722 723–748 749–750

(18) Payee “B” Record - Record Layout Positions 544-750 for Form W-2G

Field Position Field Title Length Description and Remarks

544–546 Blank 3 Enter blanks.

547 Type of 1 Required. Enter the applicable type of wager code from the table below: Wager Code

Code Category 1 Horse race track (or off-track betting of a horse track nature) 2 Dog race track (or off-track betting of a dog track nature) 3 Jai-alai 4 State-conducted lottery 5 Keno 6 Bingo 7 Slot machines 8 Any other type of gambling winnings

1999–31 I.R.B. 207 August 2, 1999

(18) Payee “B” Record - Record Layout Positions 544-750 for Form W-2G (Continued)

Field Position Field Title Length Description and Remarks

548–555 Date Won 8 Required. Enter the date of the winning transaction in the format YYYYMMDD (e.g., 19991022 ). Do not enter hyphens or slashes. This is not the date the money was paid, if paid after the date of the race (or game).

For dates with one-digit months (i.e., January-September) or days (i.e., 1-9), enter a zero before the month or day. January 2, 1999, would be 19990102. Do not enter blanks, alphas or special characters.

556–570 Transaction 15 Required . For state-conducted lotteries, enter the ticket or other identifying number. For keno, bingo, and slot machines, enter the ticket or card number (and color, if applicable), machine serial number, or any other information that will help identify the winning transaction. For all others, enter blanks.

571–575 Race 5 If applicable, enter the race (or game) relating to the winning ticket; otherwise , enter blanks.

576–580 Cashier 5 If applicable, enter the initials or number of the cashier making the winning payment; otherwise, enter blanks.

581–585 Window 5 If applicable, enter the window number or location of the person paying the winning payment; otherwise, enter blanks.

586–600 First ID 15 For other than state lotteries, enter the first identification number of the person receiving the winning payment; otherwise, enter blanks.

601–615 Second ID 15 For other than state lotteries, enter the second identification number of the person receiving the winnings; otherwise, enter blanks.

616–662 Blank 47 Enter blanks.

663–722 Special Data 60 This portion of the “B” Record may be used to record information for state Entries or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.

723–734 State Income 12 State income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries Field.

735–746 Local Income 12 Local income tax withheld is for the convenience of the filers. This inTax Withheld formation does not need to be reported to IRS. The payment amount must be right justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field.

747–748 Blank 2 Enter blanks.

749–750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

August 2, 1999 208 1999–31 I.R.B.

Payee “B” Record - Record Layout Positions 544-750 for Form W-2G

Blank

Type of

Wager

Code

Date Transaction Race Cashier Window First ID Won

544–546 547 548–555 556–570 571–575 576–580 581–585 586–600

Local Income

Tax Withheld

State Income

Tax Withheld

Second ID Blank

Special

Data Entries

Blank Blank or CR/LF

601–615 616–662 663–722 723–734 735–746 747–748 749–750

Sec. 11. End of Payer “C” Record - General Field Descriptions and Record Layout

.01 The End of Payer “C” Record is a fixed record length of 750 positions. The control total fields are each 18 positions in length. .02 The “C” Record consists of the total number of payees and the totals of the payment amount fields filed by a given payer and/or a particular type of return. The “C” Record must be written after the last “B” Record for each type of return for a given payer. For each “A” Record and group of “B” Records on the file, there must be a corresponding “C” Record.

.03 In developing the “C” Record, for example, if a payer used Amount Codes 1, 3, and 6 in the “A” Record, the totals from the “B” Records would appear in Control Totals 1 (positions 16-33), 3 (positions 52-69), and 6 (positions 106-123) of the “C” Record. In this example, positions 34-51, 70-105, and 124-231 would be zero filled. Positions 232-748 would be blank filled.

.04 Payers/Transmitters should verify the accuracy of the totals since data with missing or incorrect “C” Records will be returned for replacement.

Record Name: End of Payer “C” Record

Field Position Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “C.”

2–9 Number of 8 Required. Enter the total number of “B” Records covered by the prePayees ceding “A” Record. Right justify information and fill unused positions with zeros.

10–15 Blank 6 Enter blanks.

16–33 Control 18 Required. Accumulate totals of any payment amount fields in the “B” Total 1 Record into the appropriate control total fields of the “C” Record. 34–51 Control 18 Control totals must be right justified and unused control total fields Total 2 zero-filled. All control total fields are 18 positions in length. 52–69 Control 18 Total 3 70–87 Control 18 Total 4 88–105 Control 18 Total 5 106–123 Control 18 Total 6 124–141 Control 18 Total 7 142–159 Control 18 Total 8 160–177 Control 18 Total 9

1999–31 I.R.B. 209 August 2, 1999

Record Name: End of Payer “C” Record (Continued)

Field Position Field Title Length Description and Remarks

178–195 Control 18 Total A 196–213 Control 18 Total B 214–231 Control 18 Total C

232–748 Blank 517 Enter blanks.

749-750 Blank 2 Enter blanks, or carriage return/line feed (CR/LF) characters.

End of Payer “C” Record - Record Layout

Control

Total

Control

Total

Record

Type

Number

of Payees

Blank

Control

Total

1

Control

Total

2

3

4

Control

Total

5

Control

Total

6

1 2–9 10–15 16–33 34–51 52–69 70–87 88–105 106–123

Control

Total

Control

Total

8

Control

Total

9

Control

Total

A

Control

Total

B

Control

Total

C

Blank Blank or CR/LF

7

124–141 142–159 160–177 178–195 196–213 214–231 232–748 749–750

Sec. 12. State Totals “K” Record - General Field Descriptions and Record Layout

.01 The State Totals “K” Record is a fixed record length of 750 positions. The control total fields are each 18 positions in length.

.02 The “K” Record is a summary for a given payer and a given state in the Combined Federal/State Filing Program, used only when state reporting approval has been granted.

.03 The “K” Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer for a given state. The “K” Record(s) must be written after the “C” Record for the related “A” Record.

.04 In developing the “K” Record, for example, if a payer used Amount Codes 1, 3, and 6 in the “A” Record, the totals from the “B” Records coded for this state would appear in Control Totals 1, 3, and 6 of the “K” Record.

.05 There must be a separate “K” Record for each state being reported.. 06 Refer to Part A, Sec. 16, for the requirements and conditions that must be met to file via this program.

(1) State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR,

1099-R, and 5498

Field Position Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “K.”

2–9 Number of 8 Required. Enter the total number of “B” Records being coded for this Payees state. Right justify information and fill unused positions with zeros.

10–15 Blank 6 Enter blanks.

August 2, 1999 210 1999–31 I.R.B.

(1) State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR,

1099-R, and 5498 (Continued)

Field Position Field Title Length Description and Remarks

16–33 Control 18 Required. Accumulate totals of any payment amount fields in the “B” Total 1 Records for each state being reported into the appropriate control total 34–51 Control 18 fields of the appropriate “K” Record. Control totals must be right just- Total 2 ified and unused control total fields zero-filled. All control total fields 52–69 Control 18 are fields are 18 positions in length Total 3 70–87 Control 18 Total 4 88–105 Control 18 Total 5 106–123 Control 18 Total 6 124–141 Control 18 Total 7 142–159 Control 18 Total 8 160–177 Control 18 Total 9 178–195 Control 18 Total A 196–213 Control 18 Total B 214–231 Control 18 Total C

232–706 Blank 475 Enter blanks.

707–724 State Income 18 State income tax withheld totals is for the convenience of the filers. AgTax Withheld gate totals of the state income tax withheld field in the Payee “B” Record; Total otherwise, enter blanks.

725–742 Local Income 18 Local income tax withheld totals is for the convenience of the filers. AgTax Withheld gregate totals of the local income tax withheld field in the Payee “B” Total Record; otherwise, enter blanks.

743–746 Blank 4 Enter blanks.

747–748 Combined 2 Required. Enter the code assigned to the state which is to receive the inFederal/ formation. (Refer to Part A, Sec. 16, Table l.) State Code

749–750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.

State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR,

1099-R, and 5498

Control

Total

Control

Total

Control

Total

Control

Total

Record

Type

Number

of Payees

Blank

Control

Total

1

Control

Total

2

3

4

5

6

1 2–9 10–15 16–33 34–51 52–69 70–87 88–105 106–123

1999–31 I.R.B. 211 August 2, 1999

State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR,

1099-R, and 5498 (Continued)

Control

Total

Control

Total

8

Control

Total

9

Control

Total

A

Control

Total

B

Control

Total

C

Blank

Tax Withheld

State Income

Tax Withheld

Local Income

Total

7

Total

124–141 142–159 160–177 178–195 196–213 214–231 232–706 707–724 725–742

743–746 747–748 749–750

Sec. 13. End of Transmission “F” Record - General Field Descriptions and Record Layout

.01 The End of Transmission “F” Record is a fixed record length of 750 positions. The “F” Record is a summary of the number of payers in the entire file.

.02 This record should be written after the last “C” Record (or last “K” Record, when applicable) of the entire file.

Record Name: End of Transmission “F” Record

Field Position Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “F.”

2–9 Number of 8 Enter the total number of Payer “A” Records in the entire file (right justify “A” Records and zero fill) or enter all zeros.

10–30 Zero 21 Enter zeros.

31–748 Blank 718 Enter blanks.

749–750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.

End of Transmission “F” Record - Record Layout

1 2–9 10–30 31–748 749–750

Part C. Electronic Filing Specifications

Sec. 1. Background

.01 IRS/MCC is in the process of upgrading all of its hardware and software for electronic filing. Effective October 31, 1999, the Information Reporting Program-Bulletin Board System (IRP-BBS) and 3780 bisynchronous electronic filing systems will be discontin- ued. Starting November 1, 1999, users will be able to access the new electronic system via analog and ISDN BRI connections. Bisyn- chronous electronic filing will no longer be supported. The new system is designed to support the electronic filing of information re- turns only. The new telephone number for electronic filing is (1-304-262-2400). Publications and forms will no longer be electronically available from MCC. Users needing the publications and forms no longer available on the IRP-BBS will need to download them from the IRS’s Internet Web Site at www.irs.ustreas.gov or order them by calling 1-800-TAX-FORM (1-800-829-3676).

August 2, 1999 212 1999–31 I.R.B.

Sec. 2. Advantages of Filing Electronically

Some of the advantages of filing electronically are as follows: (1) Notification within 1-2 workdays as to the acceptability of the data transmitted.

(2) Later due dates than magnetic media or paper for electronically filed Forms 1099, 1098, and W-2G (refer to Part A, Sec- tion 10.01).

(3) Allowing more attempts than magnetic media filing to correct bad files before imposing penalties. (Refer to Part C, Section 6.05). (4) Better customer service due to on-line availability of transmitters files for research purposes. (5) Additional 45 days for testing - November 1, 1999, to January 31, 2000, instead of November 1, 1999, through December 15, 1999.

Sec. 3. General

.01 Electronic filing of Forms 1098, 1099, 5498, and W-2G, originals, corrections, and replacements of information returns is of- fered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement. Transmitters filing electronically will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way. If the original file was sent magnetically, but was returned for replacement, the replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any corrections may be transmitted electronically.

.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two pro- grams are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist tax- payers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Customer Service toll-free number (1-800-829-1040) for assistance.

.03 Files submitted to IRS/MCC electronically must be in standard ASCII code. No magnetic media or paper forms are to be sub- mitted with the same information as the electronically submitted file.

.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of time to file. Part A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.

.05 The formats of the “T”, “A”, “B”, “C”, “K”, and “F” Records are the same for electronically filed records as they are for 3 ¹ ⁄2-inch diskettes, tapes, and tape cartridges, and must be in standard ASCII code. For electronically filed documents, each trans- mission is considered a separate file; therefore, each transmission must begin with a Transmitter “T” Record and end with an End of Transmission (EOT) “F” Record.

Sec. 4. Electronic Filing Approval Procedure

.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned prior to submitting their files electronically. (Filers who currently have a TCC for magnetic media filing do not have to request a second TCC for electronic filing.) Refer to Part A, Sec. 7, for information on how to obtain a TCC.

.02 Once a TCC is obtained, electronic filers assign their own passwords and do not need prior or special approval. .03 With all passwords, it is the user’s responsibility to remember the password and not allow the password to be compromised. Passwords are user assigned at first logon and are up to 8 alpha/numerics, which are case sensitive. However, if filers do forget their password, call 304-263-8700 for assistance.

Note: Passwords are case sensitive.

Sec. 5. Test Files

. 01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for all electronic filers be- cause of the new hardware and software. If filers wish to submit an electronic test file for Tax Year 1999 (returns to be filed in 2000), it must be submitted to IRS/MCC no earlier than November 1, 1999, and no later than January 31, 2000.

.02 If a filer encounters problems while transmitting the electronic test files, contact IRS/MCC for assistance. .03 Filers can verify the status of their transmitted test data by dialing the electronic filing system phone number (1-304-262-2400). This information will be available within 1-2 workdays after their transmission is received by IRS/MCC.

.04 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec. 16, for further details.

Sec. 6. Electronic Submissions

.01 Electronically filed information may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.

1999–31 I.R.B. 213 August 2, 1999

.02 Do not transmit data electronically from December 28, 1999, through January 5, 2000. This will allow time for IRS/MCC to update their system to reflect current year changes.

.03 Data compression is encouraged when submitting information returns electronically. MCC has the ability to decompress files created using several popular software compression programs such as ARC, COMPRESS, LHARC, and PKZIP.

The time required to transmit information returns electronically will vary depending on the modem speed and the type of data compression used, if any. The time required to transmit a file can be reduced by as much as 95 percent by using software com- pression and hardware compression.

The following are actual transmission rates achieved in test uploads at MCC using compressed files. The actual transmission rates will vary depending on the modem speeds.

.04 Files submitted electronically will be assigned a unique filename by the IRS system (the users may name files anything they choose from their end). The IRS assigned filename will consist of, submission type [TEST, ORIG (original), CORR (correction), and REPL (replacement)], the filer’s TCC and a four digit number sequence. The sequence number will be incremented for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename would be ORIG.44444.0001. Record the filename. This information will be needed by MCC in order to identify the file, if assistance is re- quired, and to complete Form 4804.

.05 If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was uploaded or 4 replacement attempts to transmit an acceptable file. If an acceptable file is not received after 60 days or within 4 replacement attempts, then the payer could be subject to late filing penalties. This only applies to files originally sent electronically.

.06 Filers are advised not to resubmit an entire file if records were omitted from the original transmission. This will result in duplicate filing. A new file should be sent consisting of the records that had not previously been submitted.

.07 The TCC in the Transmitter “T” Record must be the TCC used to transmit the file; otherwise, the file will be considered in error.

Sec. 7. Transmittal Requirements

.01 The results of the electronic transmission will be available in the File Status area of the electronic system within 1-2 work- days; however, no further processing will occur until the signed Form 4804 is received. The Form 4804 must be postmarked by the due date of the return. No return is considered filed until a Form 4804 is received by IRS/MCC.

.02 Form 4804 can be ordered by calling the IRS toll-free forms and publication order number 1-800-TAX-FORM (1-800-829- 3676), or it may be computer-generated. It may also be obtained from the IRS’s Internet Web Site at www.irs.ustreas.gov. If a filer chooses to computer-generate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the computer-generated form.

.03 The TCC used in the Transmitter “T” Record is the TCC which must appear on the transmittal Form 4804. .04 Forms 4804 may be mailed to the following address:

If by Postal Service, air or truck freight:

IRS-Martinsburg Computing Center Information Reporting Program Attn: Electronic Filing Coordinator 230 Murall Drive Kearneysville, WV 25430

Please indicate on the envelope the following message: CONTAINS FORM 4804 INFORMATION - NO MAGNETIC MEDIA

Sec. 8. Electronic Filing Specifications

.01 The Electronic Filing System is designed exclusively for the filing of Forms 1099, 1098, 5498, and W2-G. .02 A transmitter must have a TCC before a file can be transmitted. If you have a TCC for magnetic media filing, that TCC can also be used for electronic filing.

August 2, 1999 214 1999–31 I.R.B.

. 03 Filers can determine the acceptability of files submitted by checking the file status area of the system. These reports will be available on the electronic system in 1-2 workdays after the transmission is received by IRS/MCC.

.04 Contact the Electronic Filing System by dialing 304-262-2400. This number supports analog connections from 1200bps to 56Kbps or ISDN BRI 128Kbps connections. The system can be accessed via Dial-up network/web browser or a communications software package such as Hyperterminal, Procomm, PCAnywhere, etc. The Dial-up network/web browser will provide an Internet- like look without going through the Internet (point to point). If you do not have this capability, a text interface will be provided that can be accessed via typical communications software and will perform similar to the former IRP-BBS.

Sec. 9. Dial-up Network/Browser Specifications (Web Interface)

.01 Due to the large number of communication products available, it is impossible to provide specific information on a particular software package or hardware configuration. Filers should contact their software or hardware supplier for assistance. Your browser will need to be capable of file uploads (i.e., Internet Explorer 4.0, Netscape Navigator 2.0 or higher). The following are some general instructions (many of these settings may already be set by default in your software):

.02 Dial-up network settings:

(a) Set dial-up server type to PPP (b) Set network protocol to TCP/IP (c) Enable software compression (d) Enable PPP LCP extensions .03 Browser settings:

(a) Set to receive “cookies” (b) Enable JavaScript or Jscript (c) Browser must be capable of file uploads (i.e., Internet Explorer 4.0, Netscape 2.0 or higher) (d) Enter the URL address of http://10.225.224.2

Sec. 10. Communication Software Specifications (Text Interface)

.01 Communications software settings should be:

– No parity

– Eight data bits

– One stop bit

– Full duplex

Sec. 11. Modem Configuration

.01 Hardware features

(a) Enable hardware flow control (b) Enable modem error control (c) Enable modem compression

Sec. 12. Logon Procedures

.01 The first time you log on to the electronic system, you will need to create a new account. After completing the registration in- formation, you will be prompted for a user name and password. Passwords are assigned by the user at first logon and are up to 8 alpha/numerics which are case sensitive. Remember your exact user name and password for future reference. If you forget your user name and/or password, call IRS/MCC at 304-263-8700 for assistance.

.02 Once you are an established user, select the logon option and then you will be prompted for your logon name and password. Once you have entered this information, you will be at the Main Menu. Select one of the following options:

(a) Electronic Filing - this option will allow you to send your files and provide us with current mailing address information in

case we need to send any correspondence. (b) File Status - this option will display the results of your file transfer and will be posted in this area after 1-2 business days.

Sec. 13. Common Problems Associated with Electronic Filing

.01 Refer to Part A, Sec. 19, for common format errors associated with magnetic/electronic files. .02 The following are the major non-format errors associated with electronic filing:

1. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically.

Even though you have sent your information returns electronically, you still need to mail a signed Form 4804 by the due date of the return. See Part C, Sec. 7.04, for the mailing address.

1999–31 I.R.B. 215 August 2, 1999

2. Transmitter does not dial back to the electronic system to determine file acceptability.

Within 1-2 business days, the results of your file transmission will be posted under the option called File Status. It is very important that you check this option because if your file is bad and we do not receive a timely replacement, you could be subject to a late filing penalty.

3. Transmitter compresses several files into one.

Only compress one file at a time. For example, if you have 10 uncompressed files to send, compress each file separately and send 10 separate compressed files.

4. Transmitter sends a file and File Status indicates that the file is good, but the transmitter wants to send a replacement or cor- rection file to replace the original/correction/replacement file.

Once a file has been transmitted, you cannot send a replacement file unless File Status indicates the file is bad (1-2 business days after file was transmitted). If you do not want us to process the file, you must first contact us at 304-263-8700 to see if this is a pos- sibility. However, this will count as a replacement. (See Part A. Sec. 17, for the definition of replacement.)

5. Transmitter sends an original file that is good, then sends a correction file for the entire file even though there are only a few changes.

The correction file, containing the proper coding, should only contain the records needing correction, not the entire file.

6. File is formatted as EBCDIC.

All files submitted electronically must be in standard ASCII code.

Part D. Magnetic/Electronic Specifications For Extensions of Time

Sec. 1. General

.01 The specifications in Part D include the required 200-byte record format for extensions of time to file requests submitted magnetically or electronically. Also included are the instructions for the information that is to be entered in the record. Filers are ad- vised to read this section in its entirety to ensure proper filing.

.02 Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electronically. If you meet the threshold of more than 50 payers when requesting an extension but are below the 250 documents threshold, you must still submit a Form 4419, Application for Filing Information Returns Magnetically/Electronically. Requests for extensions of time may be made for Forms 1098, 1099, 5498, W-2G, W-2, 1042-S and 8027.

.03 For Tax Year 1999 (returns due to be filed in 2000 ), transmitters requesting an extension of time to file for more than 50 pay- ers (not payees) are required to file the extension request magnetically or electronically. Transmitters requesting an extension of time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed on tape, tape cartridge, 3 ¹ ⁄2-inch diskette, or electronically.

.04 For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809, Request for Extension of Time To File Information Returns, in the same package as the corresponding media or fax it to 304-264-5602. For extension requests filed electronically, the transmitter must FAX the Form 8809 the same day the transmission is made.

.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names and TINs with the Form 8809 since this information is included on the magnetic or electronic file. However, Line 6 of the Form 8809 must be completed with the total number of records included on the magnetic media or electronic file.

.06 To be considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the request will be denied.

.07 A magnetically-filed request for an extension of time should be sent using the following address: