SEC. 3. GENERAL RULES FOR

FILING PAPER FORMS W-2

.01 Employers must use magnetic or electronic media for filing with the SSA if they file 250 or more Year 2001 Forms W-2 (Copy A). This requirement applies unless:

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

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

To request a waiver of the magnetic media or electronic filing requirement, for the current tax year only, send Form 8508, Request for Waiver From Filing Informa- tion Returns on Magnetic Media, to:

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

Martinsburg Computing Center (304) 263-8700 Call Site

Form 8508 may be obtained electronically on the IRS Web Site at http://www.irs.gov or by calling 1-800829-3676. It is recommended that completed requests for waivers (Form 8508) be submitted at least 45 days before, but no later than the due date, of the return (see Sec. 3.07, below). The requester will receive an approval or denial letter from IRS/MCC, but must allow a minimum of 30 days for IRS/MCC to respond. If you have any questions concerning Form 8508, contact IRS/MCC at the address or phone number shown above. Employers who do not comply with the magnetic media or electronic filing re-

April 23, 2001 1094 2001–17 I.R.B.

timely provide the employee copies may subject the employer to penalties. Employers needing additional time to file Form W-2 (paper, magnetic media, or electronic) with the SSA may request an extension of time to file by submitting Form 8809, Request for Extension of Time to File Information Returns, to the IRS/MCC “ ATTN: Extension of Time Coordination” at the address listed in Sec. 3.01, above. The extension request should be filed as early as possible, but must be postmarked (for paper or magnetic media) no later than the due date of the forms ( February 28, 2002 ). Extensions for electronically filed Forms W-2 must be postmarked no later than April 1, 2002. DO NOT SEND FORM 8809 TO THE SSA.

NOTE: APPROVAL OF THE EXTENSION IS NOT AUTOMATIC. Approval or denial is based on administrative criteria and guidelines. The requestor will receive an approval or denial letter from the IRS and must allow a minimum of 30 days from the date of the request for the IRS to respond. You do not have to wait for a response before filing your return. File your return as soon as it is ready. If you have received a response, positive or negative, do not send a copy of the letter or Form 8809 with your return. Form 8809 may be obtained on the IRS Web Site at http://www.irs.gov or by using the IRS Fax Forms Program at 703-368-9694, or by calling 1-800829-3676. .08 When requesting extensions of time for more than 10 employers, the IRS encourages filers to submit the request on tape, tape cartridge (4mm, 8mm, or Quarter Inch Cartridge), 3-1/2 inch diskette, or electronically. Transmitters requesting an extension of time to file for more than 50 employers are required to file the extension request on magnetic media or electronically. Transmitters who submit requests for multiple employers will receive one approval letter with an attached list of employers covered under that approval. Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Magneti- cally or Electronically, provides information on how to file requests for extensions of time on tape, tape cartridge (4mm, 8mm, or Quarter Inch Cartridge), 3 -1/2 inch diskette, or electronically.

quirements for Form W–2 and who are not granted a waiver may be subject to penalties. Since many state and local governments accept Form W-2 data on magnetic media or electronically, savings may be obtained if magnetic media or electronic data is used for filing with both the SSA and state or local governments. In many instances, the state or local government is willing to accept the data format specifications set out in the SSA’s publication “Magnetic Media Reporting and Electronic Filing (MMREF–1)”. You must contact each individual state or local taxing agency to receive approval and make arrangements to file electronically or on magnetic media.

EMPLOYERS WHO FILE FORM W–2 INFORMATION ON MAGNETIC MEDIA OR ELEC- TRONICALLY (USING MMREF–1 INSTRUCTIONS) WITH THE SSA MUST NOT SEND THE SAME DATA TO THE SSA ON PAPER FORMS W-2. This would result in duplicate reporting and may subject the filer to unnecessary contacts by the SSA or IRS.

.02 MMREF-1, Magnetic Media Re- porting and Electronic Filing (SSA Pub. No. ICN, revised, 2001) contains specifications and procedures for filing Form W-2 information electronically or on magnetic media with the SSA. The MMREF-1 format is mandatory beginning with TY 2001 wage reports regardless of the media utilized including magnetic tape, tape cartridge, diskette, or electronic.

.03 MMREF-1 may be obtained by writing to:

Social Security Administration OCO, DES Attn: Employer Reporting Services Center 300 North Greene Street Baltimore, MD 21290-0300.

Employers may also call their local SSA Employer Service Liaison Officer (ESLO) to obtain the MMREF-1 (see list of Employer Service Liaison Officers’ telephone numbers at the end of this document). The MMREF-1 is also available on the SSA Online Wage Reporting Service (OWRS) dial up or via the SSA Web Site http://www.ssa.gov/employer . The number for the OWRS dial up is (410) 966-4105 ( not a toll-free number ). Em

ployers using magnetic or electronic media are cautioned to obtain the most recent revision of the MMREF-1 and sup- plements due to possible changes in the specifications and procedures.

.04 Employers not filing on magnetic media or electronically must file a paper Copy A of Form W-2 with the SSA using either the IRS printed official form or a privately printed substitute paper form that exactly meets the specifications shown in Parts B and C of this revenue procedure.

.05 Employers may design their own statements to give to employees. This applies to employers who file with the SSA on magnetic media, electronically, or on paper. Employee statements designed by employers must comply with the requirements shown in Parts B and C, below.

.06 Employers who terminate their business must provide their employees with Form W-2 on or before the due date of their final Form 941. Employ- ers must also file Forms W-2 and W-3 with the SSA by the last day of the month that follows the due date of their final Form 941. See Rev. Proc. 96–57, 1996–2 C.B. 389, for information on automatic extensions.

Note: Use of a reporting agent or other third-party payroll service provider does not relieve an employer of the responsibility to ensure that Forms W-2 are provided to employees and filed correctly with the SSA on time.

.07 Forms W-2 for 2001, filed on paper or magnetic media must be filed with the SSA on or before February 28, 2002. Employers who file electronic Forms W-2 for 2001 must file them on or before April 1, 2002. Copies B, C, 1, and 2 must be furnished to the employee by January 31, 2002. If employment ended before December 31, 2001, the employee may be furnished his/her copy any time after employment ends, but no later than January 31, 2002. However, if the employee requests Form W-2, you must furnish him or her the completed copies within 30 days of the request or within 30 days of the final wage payment, whichever is later. This requirement is met if the form is properly addressed, mailed, and postmarked on or before the due date. Failure to timely file with the SSA or to

2001–17 I.R.B. 1095 April 23, 2001

4 Tearing Strength: Average, each direction, not less than— Grams . . . . . . . . . . . . . . . . . . . . .40 5 Opacity: Average, not less than — Percent . . . . . . . . . . . . . .82 6 Reflectivity: Average not less than — percent . . . . . . . . . . .68 7 Thickness: Average. Inch 0.0038 Metric equivalent. . . . . . .mm 0.097 A tolerance of +0.0005 inch (0.0127mm) is allowed. Paper can not vary more than 0.0004 inch (0.012mm) from one edge to the other. 8 Porosity: Average, not less than —

NOTE: To file a request for extension of time magnetically or electronically for multiple payers, third party filers/transmitters must have an IRS Transmitter Control Code (TCC) (au- thorization to file information returns).