Part 1 General Information

Section 1.1 - Overview of Revenue Procedure 2000–28

1.1.1 Purpose The purpose of this revenue procedure is to set forth the requirements for the year 2000 for:

• Using official Internal Revenue Service (IRS) forms to file information returns with the IRS,

• Preparing acceptable substitutes of the official IRS forms to file information returns with the IRS, and

• Using official or acceptable substitute forms to furnish information to recipients.

1.1.2 Which This revenue procedure contains specifications for these information returns: Forms Are Covered?

1.1.3 Scope For purposes of this revenue procedure, a substitute form or statement is one that is not printed by the IRS. For a substitute form or statement to be acceptable to the IRS, it must conform to the official form or the specifications outlined in this revenue procedure. Do not submit any substitute forms or statements listed above to the IRS for approval. Privately printed forms may not state “This is an IRS approved form.”

Filers making payments to certain recipients during a calendar year are required by the Internal Revenue Code (the Code) to file information returns with the IRS for these payments. These filers must also provide this information to their recipients. In some cases, this also applies to payments received. See Part 4 for specifications that apply to recipient statements (generally Copy B).

In general, section 6011 of the Code contains requirements for filers of information returns. A filer must file information returns on magnetic media, through electronic filing, or on paper. A filer who is required to file 250 or more information returns of any one type during a calendar year must file those returns by magnetic media or electronic filing.

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Exception. Filers are not required to use magnetic media or electronic filing when filing 250 or more Forms 1098-E or 1098-T.

Although not required, small volume filers (fewer than 250 returns during a calendar year) and Form 1098-E and 1098-T filers may file the forms on magnetic media or electronically. See the legal requirements for filing information returns (and providing a copy to a payee) in the 2000 General Instructions for Forms 1099, 1098, 5498, and W-2G. In addition, see Pub. 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Magnetically or Electronically.

1.1.4 For More The IRS prints and provides the forms on which various payments must be reported. Alternatively, filers may Information prepare substitute copies of these IRS forms and use such forms to report payments to the IRS.

• For copies of the official forms and the instruction booklet for the reporting year, call our toll-free number at 1-800-TAX-FORM (1-800- 829-3676).

• The IRS operates a central call site in Martinsburg, WV, to answer questions related to information

returns, penalties, and backup withholding. Call 304-263-8700 Monday through Friday 8:30 a.m. to 4:30 p.m. eastern time. The TTY/TDD number is 304-267-3367.

1.1.5 Changes The following changes have been made to this year’s Revenue Procedure: to the Revenue - A new Part 4, made up of sections from other Parts, has been added to better address recipient Procedure statements. (Old Part 4 is now Part 5.)

• We have rearranged certain sections in the document for easier understanding. For instance, Section

1.4 of last year’s Revenue Procedure is now Section 2.2.

• We are now providing general and specific form instructions as separate products for 2000. The 2000

General Instructions for Forms 1099, 1098, 5498, and W-2G contain general information for all forms. Separate specific instructions provide information for specific 2000 forms. These new products are referred to on the faces and in the notes on the backs of the forms.

• We slightly revised Section 5.1 (OMB Requirements).

• The form dimensions shown on the exhibits have been slightly revised to reflect the actual dimensions

of official IRS forms.

Section 1.2 - General Requirements for Acceptable Substitute Forms 1096, 1098, 1099, 5498, and W-2G

1.2.1 Paper substitutes for Form 1096 and Copy A of Forms 1098, 1099, 5498, and W-2G that totally conform to Introduction the specifications listed in this revenue procedure may be privately printed and filed as returns with the IRS. The reference to the Department of the Treasury - Internal Revenue Service should be included on all such forms. If you are uncertain of any specification and want it clarified, you may submit a letter citing the specification, stating your understanding and interpretation of the specification, and enclosing an example of the form (if appropriate) to:

Internal Revenue Service Attn: Substitute Forms Program OP:FS:FP:F:CD 1111 Constitution Ave., NW Room 5244 IR Washington, DC 20224

Note: Allow at least 45 days for the IRS to respond.

Forms 1096, 1098, 1099, 5498, and W-2G are subject to annual review and possible change. Therefore, filers are cautioned against overstocking supplies of privately printed substitutes. The specifications contained in this revenue procedure apply to 2000 forms only.

1.2.2 Copy A Proposed substitutes for Copy A that do not conform to the specifications in this revenue procedure are not Specifications acceptable. Further, if you file such forms with the IRS, you may be subject to a penalty for failure to file an information return under section 6721 of the Code. Generally, the penalty is $50 for each failure to file a form (up to $250,000) that the IRS cannot accept as a return because it does not meet the provisions in this revenue procedure. No IRS office is authorized to allow deviations from this revenue procedure.

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1.2.3 Copy B Copies B and Copies C of the following forms must contain the information in Section 1.5 to be considered a and Copy C “statement” or “official form” under the applicable provisions of the Code. The format of this information is Specifications at the discretion of the filer with the exception of the location of the tax year, form number, form name, and the information for composite Form 1099 statements as outlined under Section 4.2.

Copy B of the following forms are:

Note: On Copy C, Form 1099-LTC, you may reverse the locations of the policyholder’s and the insured’s name, street address, city, state, and ZIP code for easier mailing.

Section 1.3 - Definitions

1.3.1 Form Form recipient means the person to whom you are required by law to furnish a copy of the official form or Recipient information statement. The form recipient may be referred to by different names on various Forms 1099 and related forms (“payer/borrower,” “borrower,” “student,” “debtor,” “policyholder,” “insured,” “transferor,” “payment recipient,” “participant,” or, in the case of Form W-2G, the “winner”). See Section 1.2.3 earlier.

1.3.2 Filer Filer means the person or organization required by law to file a form listed in Section 1.1.2 with the IRS. As outlined earlier, a filer may be a payer, creditor, recipient of mortgage or student loan interest payments, educational institution, broker, barter exchange, person reporting real estate transactions, trustee or issuer of any individual retirement arrangement or medical savings account, or lender who acquires an interest in secured property or who has reason to know that the property has been abandoned.

1.3.3 Substitute Substitute form means a paper substitute of Copy A of an official form listed in Section 1.1.2 that totally Form conforms to the provisions in this revenue procedure.

1.3.4 Substitute Substitute form recipient statement means a paper statement of the information reported on a form listed in Form Recipient Section 1.1.2. This statement must be furnished to a person (form recipient), as defined under the applicable Statement provisions of the Code and the applicable regulations.

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1.3.5 Composite Composite substitute statement means one in which two or more required statements (e.g., Forms 1099Substitute INT and 1099-DIV) are furnished to the recipient on one document. However, each statement must be desigStatement nated separately and must contain all the requisite Form 1099 information except as provided under Section 4.2. A composite statement may not be filed with the IRS.