Section 1. General — Internal Revenue Bulletin 2001-20

Section 2. Tape Specifications Section 3. Tape Cartridge Specifica tions Section 4. 8mm, 4mm, and Quarter

Inch Cartridge Specifications Section 5. 3 1/2 -Inch Diskette Speci fications Section 6. Data Sequence Specifications Section 7. The Trustee ‘A’ Record General Field Descriptions and Record Layout Section 8. The Account Holder ‘B’

Record - General Field Descriptions and Record Layout Section 9. The Control Total ‘C’ Re cord - General Field Descriptions and Record Layout

Part A. General

.01 Numerous editorial changes were made to this revenue procedure. Major changes are emphasized by the use of ital- ics . Filers are urged to read the revenue procedure in its entirety.

.02 Part C, Electronic Filing Specifications, is completely revised. Because of the extensive revision italics have not been extensively used.

.03 Part B, Sec. 01, Trustee ‘A’ Record, has the only programming change. This change affects the report period.

Sec. 1. Purpose

.01 The purpose of this revenue procedure is to provide the specifications under which trustees may file Form 8851, Summary of Archer MSAs, magnetically or electronically.

.02 Comments concerning this revenue procedure, or suggestions for making it more helpful and user friendly, can be addressed to:

IRS-Martinsburg Computing Center Information Reporting Program Attn: 8851 Coordinator 240 Murall Drive Kearneysville, WV 25430 .03 It is unlawful to intentionally transmit a computer virus to the Internal Revenue Service. Violators may be subject to a fine and/or imprisonment.

May 14, 2001 1170 2001–20 I.R.B.

MSA01 Trustee’s name:

and February, it is advisable to call as soon as possible to avoid these peak filing seasons.

.04 The telephone numbers for inquiries or electronic submissions are:

304-263-8700 - Call Site or email mccirp@irs.gov

304-262-2400 - Electronic Filing 304-267-3367 - TDD (Telecommuni- cation Device for the Deaf)

304-264-5602 - Fax Machine (These are not toll-free telephone numbers.)

TO OBTAIN FORMS & PUBLICA- TIONS, CALL:

1-800-TAX-FORM (1-800-829-3676)

TO OBTAIN FORMS & PUBLICA- TIONS VIA THE INTERNET:

www.irs.gov

Sec. 3. Filing Requirements

.01 If you are required to report 250 or more Archer MSAs, you must file magnetically or electronically. Even though a trustee may not meet the required filing threshold of 250 documents, IRS encourages the filing of the Form 8851 magnetically/electronically.

.02 Filers who are required to submit their Forms 8851 on magnetic media may choose to submit their documents electronically instead. Filers who transmit their information electronically are considered to have satisfied the magnetic media filing requirements.

.03 The filing requirement applies individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN) (Social Security Number

[SSN] or Employer Identification Number

[EIN]). For example, if filing for a corporation with several branches or locations and each uses the same name and EIN, the filer must aggregate the total volume to be filed for that EIN and apply the filing requirement accordingly.

. 04 For additional information on filing requirements, please refer to the instructions on Form 8851.

Sec. 4. Filing of Form 8851 Magnetically/Electronically

.01 Form 8851, Summary of Archer MSAs, MUST accompany ALL magnetic media shipments. If you wish to file electronically, complete Form 8851 above line ‘a’ (trustee’s information only) and send it to:

IRS-Martinsburg Computing Center Information Reporting Program Attn: 8851 Coordinator 240 Murall Drive Kearneysville, WV 25430

Upon receipt, you will be contacted with instructions on how to transmit your file electronically. In both instances, only the trustee information requested on Form 8851 must be completed. The form may be computer-generated; however, all of the trustee information requested on the original form must be on the computergenerated form.

.02 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents must not be filed.

.03 A self-adhesive external media label, created by the filer, must be affixed to each piece of magnetic media

(See Sec. 5). If diskettes are used, be certain that only MS-DOS compatible operating systems were used to prepare the diskettes. Non-MS-DOS diskettes are no longer acceptable at IRS/MCC .

.04 On the outside of the shipping container, affix or attach a label which reads “IRB Box of” reflecting the number of containers in the shipment. If there is only one container, mark the outside as Box 1 of 1 . For multiple containers, include the sequence (for example, Box 1 of 3, 2 of 3, 3 of 3). .05 When submitting files include the following:

(a) Form 8851; (b) External media label affixed to the magnetic media;

(c) IRB Box _____ of ______ outside label.

.06 IRS/MCC will not pay for or accept “Cash-on-Delivery” or “Charge to IRS” shipments of tax information that an individual or organization is legally required to submit.

Sec. 5. Preparation Instructions for Media Label

Please create your own pressure sensitive label containing the following information: Type of filing: Indicate whether data is

O riginal or R eplacement. Tax Year: Tax period for which media is

submitted as defined on the Form 8851. IRS TCC: (Transmitter Control Code):

Operating System/Hardware: Recommended label format:

For 3 1/2- inch diskette files, indicate the Type of filing_________________________ type of personal computer operating system and Tax Year_____________ IRS TCC MSA01 software package used to create the media Trustee name_________________________ (for example: IBM.PC/AT-MSD/DOS) Operating System/Hardware_____________ Number of account holders______________ Trustee number for media_______________ Media sequence_________of____________

2001–20 I.R.B. 1171 May 14, 2001

For tape, indicate either EBCDIC or ASCII.

For tape cartridge, indicate operating system, either EBCDIC or ASCII, and either 18, 36, 128 or 256 track.

Number of account holders: Indicate the total number of Account Holder “B” Records reported on the media.

Trustee number for media: If available, provide the in-house number assigned by your organization to the tapes, tape cartridges, or diskettes.

Media sequence: Indicate sequence number of media and total number of media in file (for example: Media sequence 1 of 3, 2 of 3, 3 of 3).

Please affix external label to appropri- ate area on magnetic media, so it will not hinder the ability to process media.

Sec. 6. Due Dates

.01 The due dates for filing paper returns with IRS also apply to magnetic media or electronic filing. File Form 8851, postmarked no later than August 1, 2001, to report the number of Archer MSAs you established from January 1 through June 30, 2001.

.02 When using a delivery service other than the U.S. Postal Service, if no date of shipment appears on the package or container, the date of receipt will be the date received at IRS/MCC.

Sec. 7. 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 for

Sec. 9. Definition of Terms

matted and coded according to this revenue procedure.

.02 If you are filing information for more than one trustee, each trustee must be reported on separate media and/or transmitted separately, if filing electronically.

.03 If the data is formatted incorrectly, IRS/MCC will request a replacement file in writing. When IRS/MCC requests a replacement file, it is because we encountered errors (not limited to format) and were unable to process the media. Filers will receive a Media Tracking Slip (Form 9267), listing and letter detailing the reason(s) their media could not be processed. It is imperative that filers maintain backup copies and/or recreate capabilities for their information return files. Open all IRS/MCC correspondence immediately. Refer to Part C, Section 5, for procedures for replacing files submitted electronically.

.04 The following definition has been provided to help identify a replacement:

A replacement is an information return file sent by the filer at the request of IRS/ MCC because of errors encountered while processing the filers original submission. (See Note 1 ).

Note 1: Filers should never send any- thing to IRS/MCC marked “Replace- ment” unless IRS/MCC has requested a replacement file in writing or via the FIRE System.

Note 2: IRS/MCC no longer returns problem media in need of replacement. Filers will receive a tracking slip, listing and letter detailing the reason(s) their media could not be processed. Filers will be expected to send a replacement file within the prescribed time frame. This makes it imperative that filers maintain backup copies and/or recreate capabilities for their information return files.

.05 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. Refer to Part C, Section 5, for procedures for replacing files submitted electronically.

.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.

.07 IRS/MCC will work with the filers to identify and resolve processing problems. If contacted by IRS/MCC, please respond promptly. IRS/MCC may have information the filers need to correct their files.

.08 Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.

Sec. 8. Effect on Paper Documents

.01 Magnetic or electronic reporting eliminates the need to submit paper Forms 8851 to IRS.

.02 Even though the threshold for filing magnetically or electronically is 250 or more MSAs, IRS encourages transmitters to submit all returns magnetically or electronically.

.03 The address for filing paper Forms 8851 is: IRS – Martinsburg Computing Center Information Reporting Program Attn: 8851 Coordinator 240 Murall Drive Kearneysville, WV 25430 .04 In all instances, identify which accounts are for individuals that were previously uninsured or excludable account holders, if applicable.

Element Description

Account Holder The owner of the Archer MSA.

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

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.

Blocked Records Two or more records grouped together between interrecord gaps.

May 14, 2001 1172 2001–20 I.R.B.

Element Description

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

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

File For the purpose of this revenue procedure, a file consists of all records submitted by a transmitter either magnetically or electronically.

Filer Person or organization who prepares and submits files. May be the trustee and/or transmitter.

IRS/MCC Internal Revenue Service/Martinsburg Computing Center.

Magnetic Media For this Revenue Procedure, the term magnetic media refers to 1/2-inch magnetic tape; IBM 3480, 3490, 3490E, 3590, 3590E or AS400 compatible tape cartridge; 8mm, 4mm, and QIC (Quarter Inch Cartridge) cartridge or 3 1/2-inch diskette.

Multi-reel/diskette file A group of tapes or diskettes submitted under one TCC where all media ends with an account holder “B” Record, except for the last media of the file, which ends with a Control Total “C” Record.

Replacement An information return file sent by the filer at the request of IRS/MCC because of errors encountered while processing their filers original submission.

Note 1: Filers should never submit media to IRS/MCC marked “Replacement” unless IRS/MCC has requested a replacement file in writing or via the FIRE System. When sending “Replacement” media, be sure to include the Media Tracking Slip (Form 9267). Media that has been incorrectly marked as Replacement may result in duplicate filing .

Note 2: IRS/MCC is no longer returning problem media in need of replacement.

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

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

Taxpayer Identification May be either a Social Security Number (SSN) or an Employer Identification Number Number (TIN) (EIN)

Transmitter Control Code (TCC) The five-digit code “MSA01” assigned to all filers prior to submitting Forms 8851 magnetically/electronically. This number is inserted in the “A” Record and must be present in the file.

Trustee Person or organization that is the custodian of the Archer MSA and is required to file Form 8851.

Part B. Magnetic Media Specifications

Sec. 1. General

. 01 These specifications prescribe the required format and content of the Trustee ‘A,’ Account Holder ‘B,’ and Control Total ‘C’ records to be included in the magnetic media file. Usually, IRS/MCC will be able to process any compatible file. Deviations cannot and will not be permitted in any of the data fields.

.02 If you are filing for more than one trustee, each trustee must be reported on a separate tape, tape cartridge, 8mm, 4mm, and QIC (Quarter

Inch Cartridge) cartridge, diskette, or in a separate electronic transmission. A separate Form 8851 is required for each.

.03 An external label must appear on each tape, diskette, or cartridge submitted. The following information is needed on the label:

(a) Type of filing (i.e., Original). (b) The tax year of the data (i.e.,

2001). (c) The trustee’s name. (d) The five-digit Transmitter Con trol Code “MSA01”. (e) Operating system software and

hardware used to create the file (i.e., IBM.PC/AT-MSD/DOS).

(f) The total number of account

holders in the file. (g) Trustee’s media number. The

number assigned to the media by the trustee. (h ) The sequence of each tape or

diskette (i.e., 001 of 008, 002 of 008,..., 008 of 008). Information provided on the label will assist IRS/MCC in identifying information that is reported and in locating a specific file if it is necessary for IRS/MCC to request a replacement file from the trustee.

.04 Regardless of the type of media used or if returns are filed electronically, the record length must be 150 positions.

2001–20 I.R.B. 1173 May 14, 2001

Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. .02 The tape cartridge records defined in this Revenue Procedure may be blocked subject to the following:

Sec. 2. Tape Specifications w

Note: Beginning in calendar year 2003 for Tax Year 2002, 9 track mag- netic tape will no longer be an accept- able method for submitting Informa- tion Returns to IRS/MCC.

.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:

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 150. (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 con figuration 001111 (8421). (c) May follow the header label and

(a) A block must not exceed 30,000

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; however, 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

(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.

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.

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, computergrade magnetic tape on reels of up to 2,400 feet (731.52 m) within the following specifications:

Sec. 3. Tape Cartridge Specifications

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

(a) Tape thickness: 1.0 or 1.5 mils

and (b) Reel diameter: 10 1/2-inch (26.67

(a) Must be IBM 3480, 3490,

3490E, 3590, 3590E or AS400 compatible. (b) Must meet American National

cm), 8 1/2-inch (21.59 cm), 7inch (17.78 cm), or 6-inch. .03 The tape records defined in this Revenue Procedure may be blocked subject to the following:

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 150. (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:

(a) A block must not exceed 30,000

tape positions. (b) If the use of blocked records

Tape Mark: (a) Signifies the physical end of the

recording on tape. (b) For even parity, use BCD config uration 001111 (8421). (c) May follow the header label and

precede and/or follow the trailer label.

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,

36-track, 128-track or 256- 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

Note: Filers should indicate on the external media label whether the car- tridge is 18-track, 36-track, 128-track or 256-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) stan

May 14, 2001 1174 2001–20 I.R.B.

dards, and have the following characteristics:

must meet the following specifications:

(1) Created from an AS400

(2) 8mm (.315-inch) tape car tridges will be 2 1/2-inch by 3 3/4-inch. (3) The 8mm tape cartridges

operating system only.

Tracks Density Capacity 1 20 (43245 BPI) 2.3 Gb 1 21 (45434 BPI) 5 Gb

(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 Information 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

not pad a block with blanks . (c) All records, except the header

been successful; however, the is not acceptable . (e) Extraneous data following the “C”

Record will result in IRS/MCC requesting a replacement file. (f) Records may not span blocks. (g) No more than 250,000 docu ments per cartridge and per file.

precede and/or follow the trailer label. .05 If extraneous data follows the “C” Record, IRS/MCC will request a replacement file. 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 1/4-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

than one cartridge; however, no more than 250,000 documents may be transmitted per file or per cartridge. The filename, for example, 8851MSA, 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 8851MSA.001, 8851MSA. 002, and 8851MSA.003 on each cartridge of the file). .02 The 8mm (.315-inch) tape cartridge records defined in this Revenue Procedure may be blocked subject to the following:

Note: Advanced Metal Evaporated (AME) cartridges are not acceptable.

8mm cartridges also apply to the 4mm cassettes. Note: 4mm cassettes with a capacity of DDS-3 (125 meter) are not accept- able.

.08 Various Quarter-Inch Cartridges (QIC) (1/4-inch) are also acceptable.

(a) A block must not exceed 30,000

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; however, the last block of the file may be filled with 9s or truncated. Do

.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 con figuration 001111 (8421). (c) May follow the header label and

(a) QIC cartridges will be 4 inch

by 6 inch. (b) QIC cartridges must meet the

following specifications:

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

2001–20 I.R.B. 1175 May 14, 2001

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

Sec. 5. 3 1/2-Inch Diskette Specifications 0

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

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

(g) A diskette will not contain

multiple files as defined in Part A, Section 09. A diskette file may consist of multiple diskettes as long as the file naming conventions are followed. (h) Failure to comply with instruc tions will result in IRS/MCC requesting a replacement file. (i) Diskettes must meet one of the

following specifications:

(a) 3 1/2-inches in diameter. (b) Data must be recorded in stan dard ASCII code. (c) Records must be a fixed length

of 150 bytes per record. (d) Delimiter character commas (,)

(e) Positions 149 and 150 of each

record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable. (f) Filename of 8851MSA must

be used. Do not enter any other data in this field. If a file will consist of more than one diskette, the file name 8851MSA will contain a 3digit extension. This extension will indicate the sequence of the diskettes within the file. For example, the first diskette will be named 8851MSA.001, the second diskette will be 8851MSA.002, etc.

must not be used.

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 trustees to use blank or currently formatted diskettes when preparing files. If extraneous data follows the “C” Record, IRS/MCC will request a replacement file.

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

.04 3 1/2-inch diskettes created on a System 36 or AS400 are not acceptable .

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

Sec. 6. Data Sequence Specifications

.01 In order to be acceptable, records within the file must be in the following sequence:

(a) A Trustee “A” Record (b) Account Holder “B” Records (c) Control Total “C” Record . 02 If you are filing for more than one trustee, each trustee must be reported on a separate tape, tape cartridge, 8mm, 4mm, and QIC (Quarter Inch Cartridge) cartridge or diskette.

Sec. 7. The Trustee “A” Record- General Field Descriptions and Record Layout

.01 This record identifies the entity preparing and transmitting the file. The first record of a file MUST be a Trustee “A” Record, (preceded only by header labels, if any), and must appear on each tape and cartridge. Otherwise, the file will be returned for replacement. The “A” Record is a fixed length of 150 positions.

Record Name: Trustee “A” Record Positions Field Title Length Description and Remarks

1 Record Type 1 Required . Enter “A”

2–10 Trustee TIN 9 Enter the Taxpayer Identification Number (TIN), either the Employer Identification Number (EIN) or the Social Security Number (SSN) of the Trustee.

11–50 Trustee 40 Required . Enter the trustee’s name. Abbreviate if necessary to fit 40- Name character limit. Omit punctuation if possible. Left-justify and blank fill. 51–90 Trustee 40 Required . Enter mailing address of the trustee. Street address Address should include number, street, apartment or suite number (or P.O. Box if mail is not delivered to street address). Abbreviate as needed to fit 40character limit. Omit punctuation if possible. Left-justify and blank fill. 91–119 Trustee City 29 Required . Enter the city or town of trustee. If applicable, enter APO or FPO only. Left-justify and blank fill. 120-121 Trustee State 2 Required . Enter two-letter Post Office Code as shown in the list below ONLY. Do NOT spell out the state name.

May 14, 2001 1176 2001–20 I.R.B.

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

NOTE: When reporting APO/FPO addresses use the following format: Example:

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

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

Record Name: Trustee “A” Record (continued)

Positions Field Title Length Description and Remarks

122–130 Trustee ZIP 9 Required . Enter the ZIP code of the trustee for all U.S. addresses, Code U.S. territories or possessions, APO/FPO addresses. For trustees using a five-digit ZIP code, enter the ZIP code in the left-most five positions and zero fill the remaining four positions. For trustees outside the U.S., enter nine zeros only. Do NOT blank fill.

131–135 Transmitter 5 Required . Enter your five-digit Transmitter (TCC) Control Code, Control Code “MSA01.” This is the TCC assigned to all filers who report Form(s) 8851 magnetically/electronically.

136 Report Period 1 Required. Enter the last digit of the year for which the Form 8851 is being filed. For example, if reporting for tax year 2001, enter a ‘1’ (one), enter a ‘2’, if reporting for 2002, etc.

Note: Currently, the filing requirement is for tax year 2001 only. If filing is required in the future, an announcement will be issued in an I.R. Bulletin.

137–148 Blanks 12 Enter Blanks.

149–150 Blanks or 2 Enter blanks or Carriage Return/ Carriage Return/Line Line Feed (cr/lf) Feed(cr/lf).

2001–20 I.R.B. 1177 May 14, 2001

Trustee “A” Record Layout

Record Type “A” Trustee TIN Trustee Name Trustee Address Trustee City 1 2–10 11–50 51–90 91–119

Trustee Trustee Transmitter Report Blanks Blanks or State ZIP Code Control Code Period Carriage (TCC) Return / Line “MSA01” Feed 120–121 122–130 131–135 136 137–148 149–150

Sec. 8. The Account Holder “B” Record - General Field Descriptions and Record Layout

.01 The “B” record contains the account holder information. The format of the “B” record will remain constant and is a fixed length of 150 positions.

Record Name: Account Holder “B” Record

Positions Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “B.”

2–10 Account Holder’s 9 Required . Enter the nine-digit Taxpayer Identification Number (TIN) Identification (EIN or SSN) of the Account Holder. Do NOT enter blanks, hyphens, Number (TIN) or alpha characters. A TIN consisting of all the same digit (e.g., 111111111) is not acceptable.

11–50 Account Holder 40 Required. Enter the name of the account holder. Abbreviate as need- Name ed Left justify and blank fill.

51 Previously 1 Required. Enter a code from the list below to indicate whether or not Uninsured the account holder was previously uninsured. For a definition of Indicator “Previously Uninsured”, please see Form 8851.

Condition Code Previously uninsured 1 Previously insured 0 52 Excludable 1 Required . Enter a code from the list below to indicate whether the Indicator account holder is excludable. For a definition see Form 8851.

Condition Code Excludable 1 Not excludable 0 53–148 Blanks 96 Enter blanks.

149–150 Blank or Carriage 2 Enter blanks or carriage return/line feed (CR/LF). Return/Line Feed

Account Holder “B” Record Layout

Record Type “B” Account Holder TIN Account Holder Name Previously Uninsured Indicator 1 2–10 11–50 51

Excludable Indicator Blanks Blanks or Carriage Return/ Line Feed 52 53–148 149–150

Sec. 9. The Control Total “C” Record-General Field Descriptions and Record Layout

.01 Enter a “C” Record after the last “B” Record submitted for a particular Trustee “A” Record. The “C” Record serves as a summary of the preceding “B” Records’ data, and enables IRS to cross check the correctness of information received.

.02 A “C” Record may only be followed by “B” Records reported for a trustee, or by a tape mark and/or trailer label when more reels follow this reel. The “C” Record can be the last record on the file.

.03 Each “C” Record has a fixed length of 150 positions. .04 If the field is not applicable, allow for the field by entering blanks or zeros as instructed.

May 14, 2001 1178 2001–20 I.R.B.

Record Name: Control Total “C” Record

Positions Field Title Length Description and Remarks

1 Record Type 1 Required. Enter “C”.

2–7 Number of 6 Required. Enter the total number of account holders being reported. Account Holders Right justify and zero fill.

8–13 Previously 6 Enter the total number of account holders that were previously unin- Uninsured sured. Right justify and zero fill.

14–19 Excludable 6 Enter the total number of excludable account holders being reported. Right justify and zero fill.

20–148 Blanks 129 Enter blanks.

149–150 Blank or Carriage 2 Enter blanks or carriage return/line feed (CR/LF). Return/Line Feed

“C” Record Layout

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 taxpayers in the filing of Form 1040 and will direct taxpayers, to the Customer Service toll-free number ( 1-800-829-1040 ).

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

.04 The formats of the “A”, “B”, and “C” records are the same for electronically filed records as they are for magnetic media, and must be in standard ASCII code. For electronically filed documents, each transmission is considered a separate file; therefore, each transmission must begin with a Trustee “A” Record and end with a Control Total “C” Record.

Sec. 4. Electronic Filing Approval Procedure

.01 Filers must send a Form 8851 to IRS/MCC prior to filing the Form(s)

Part C. Electronic Filing Specifications

Sec. 1. Background

.01 All electronic filing of information returns are received at IRS/MCC via the FIRE (Filing Information Returns Electronically) System. The FIRE System can be accessed via analog and ISDN BRI connections. The system is designed to support the electronic filing of information returns only. The telephone number for electronic filing is (304-262-2400) .

Sec. 2. Advantages of Filing Electronically

Some of the advantages of filing electronically are as follows:

(1) Results available within 10

workdays regarding the acceptability of the data transmitted. It is the filer’s responsibility to dial back in and check results. (2) Allows more attempts than mag

netic media filing to replace bad files within a specific time frame.

(3) Better customer service due to

on-line availability of transmitter’s files for research purposes.

Sec. 3. General

.01 Electronic filing of Forms 1098, 1099, 5498, 8851, 1042–S, 8027, Questionable W-4s (QWF) and W-2G, originals, and replacements of information returns is offered 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 electronically. If the original file was sent magnetically, but IRS/MCC has requested a replacement file, the replacement may be transmitted electronically.

.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to

2001–20 I.R.B. 1179 May 14, 2001

8851 electronically. Only trustee information should be provided on the Form 8851 when filing electronically. Please annotate the Form 8851 with “Electronic Filing” to indicate the method of filing. The Form 8851 may also be faxed to IRS/MCC in order to expedite electronic processing. The fax number is (304) 2645602. .02 Electronic filers assign their own logon name and password and do not need prior or special approval.

.03 For 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 forget their password, call 304-263- 8700 for assistance. The FIRE System will require users to change their passwords on a yearly basis.

Sec. 5. 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 .

.02 Files submitted electronically will be assigned a unique filename by the FIRE System (the users may name files anything they choose from their end). The filename assigned by the FIRE System will consist of submission type [ORIG (original), 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 to identify the file, if assistance is required.

.03 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.

.04 The TCC in the Trustee “A” Record must be the TCC used to transmit the file; otherwise, the file will be considered an error.

Browser settings: (a) Browser must be capable of file

uploads (i.e., Internet Explorer 4.0, Netscape 2.0 or higher) (b) Enter the URL address of

http://10.225.224.2, after you have connected via dial-up (Remember, this is a point-to-point connection, not the Internet.) .02 Due to the large number of communication products available, it is impossible

Sec. 6. Electronic Filing Specifications

.01 The FIRE System is designed exclusively for the filing of Forms 1042–S, 1098, 1099, 5498, 8027, 8851, W-2G and Questionable W-4s.

.02 A transmitter must call IRS/MCC regarding the TCC and EIN to be used on the FIRE System for Form 8851.

.03 The results of the electronic transmission of Form 8851 will be available in the File Status area of the FIRE System within 10 business days. It is the filer’s responsibility to dial back to verify the acceptability of files submitted by checking the file status area of the system. These reports will be available on the electronic system in 10 workdays after the transmission is received by IRS/MCC.

.04 Connect to the FIRE System by dialing 304-262-2400. This number supports analog connections from 1200bps to 56Kbps or ISDN BRI 128Kbps. The system can be accessed via Dial-up network/web browser (see Section 9 ) or communications software (see Section 10). The Dial-up network/web browser (point-to-point) will provide an Internetlike look, however, it is not the Internet. If you do not have this capability, a text interface is provided that can be accessed via communication software such as Hyperterminal, Procomm, PCAnywhere, etc.

Sec. 7. Dial-up Network/Browser Specifications (Web Interface)

.01 The following are some general instructions (many of these settings may already be set by default in your software):

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

to provide specific information on all software/hardware configurations. However, since most filers use Windows 95, 98, NT, 2000, or ME software (more current versions are similar), the following instructions are geared toward those products:

UPLOADING FILES WITH DIAL-UP NETWORKING/WEB BROWSER IN WINDOWS 95/98/2000/ME

Tips (1) This is a point-to-point connection –

not the Internet. (2) Your browser must be capable of file

uploads, i.e., Internet Explorer 4.0 or Netscape Navigator 2.0 or higher. (3) If you currently access the Internet via

Select ‘ Make new connection’ . Type a descriptive name for the

system you are calling. Select your modem. Click ‘Next’ . Enter area code 304 and telephone

number 262-2400 . Click ‘Next’ . When you receive a message

that you have successfully created a new Dial-Up Networking connection, click ‘Finish’ . Click ‘ Connect ’ to dial. If you

are prompted for a user name and password, complete according to local procedures; otherwise, click ‘OK’ .

a LAN or a PROXY server, you will need to disable those options in your browser and enable ‘Connect to the Internet using a modem’.

Select Programs Accessories Communications

(Windows 98) Dial-Up Networking First time connecting with Dial-Up Net- work (If you have logged on previously, skip to Subsequent Dial-up Network Connections.)

The first time you dial-in, you will need to configure your Dial-Up Networking.

When you receive the message

that you have connected to our system, click on your Web Browser (remember, it is not connecting via the Internet – this is a point-to-point con- nection).

May 14, 2001 1180 2001–20 I.R.B.

In the URL Address enter

http://10.225.224.2 and press ENTER .

ber. This information will be used to contact or send any correspondence regarding this transmission. Update as appropriate and/or click ‘Accept’ .

Subsequent Dial-Up Network connections

Click one of the following:

Click ‘Connect’ . If prompted for user name and

password, complete according to local procedures; otherwise, click ‘OK’ . When you receive ‘Connection

Complete’, click ‘OK’ . Click on your Web Browser (re-

member, you are not connect- ing via the Internet) . In the URL Address enter

http://10.225.224.2 and press ENTER .

Original File Replacement File (if you select this option, select one of the following):

FIRE Replacement (file was originally transmitted on this system) Click file to be replaced

or Magnetic Media Replacement File

IMPORTANT Go back into your Dial-Up Network and click ‘hang-up’; otherwise, you may stay connected and incur unnecessary phone charges.

Sec. 8. Communication Software Specifications (Text Interface)

.01 Communications software settings must be:

No parity
Eight data bits
One stop bit .02 Terminal Emulation must be

VT100.¶

.03 Due to the large number of communication products available, it is impossible to provide specific information on all software/hardware configurations. However, since filers use Windows 95, 98, NT, 2000, or ME software, the following instructions are most compatible with those products (Procomm, PCAnywhere and many other communications packages are also acceptable and the product does not necessarily need to be Windows based.)

Uploading Files Using Hyperterminal in Windows 95, 98, NT, 2000, or ME

‘File Bad’ - Correct the errors and resubmit the file as a ‘replacement’.

‘Not Yet Processed’ - File has been received, but results are not available. Please recheck in several days.

Click on the desired file for a de tailed report of your transmission. When finished viewing your files,

click on ‘ Main Menu ’. Click ‘Log Off’ . Close your Web Browser.

First time connection to the FIRE System (If you have logged on previously, skip to Subsequent Connections to the FIRE System.)

Click ‘Create New Account’ . Fill out the registration form and

Enter the alpha character from Form 9267, Media Tracking Slip, that was returned with your correspondence requesting a replacement file. Click ‘ Submi t’. Enter the drive/path/filename of the

file you want to upload or click ‘Browse’ to locate the file. Click ‘Upload’ .

click ‘Create’ . Enter your logon name (most

users logon with their first and last name). Enter your password (the pass

word is user assigned and is case sensitive). Click ‘Create’ . If you receive the message ‘ac

Hyperterminal, Hyperterm or Hyperterm.exe, whichever is available on your system. With subsequent connections, select the saved icon.

count created’, click ‘OK’ . Click ‘ Start the FIRE Application ’

When the upload is complete, the screen will display the total bytes received and the IRS assigned file name.

If you have more files to upload for that TCC:

Click ‘File Another’ ; otherwise, Click ‘Back to Main Menu’ .

It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 10 business days.

To check the acceptability of a previously submitted file:

At the Main Menu:

Click ‘ File Stats’ Enter your TCC: Enter your EIN: Click on the appropriate filename to get results.

If ‘Results’ indicate:

‘File Good’ and you agree with the ‘Count of Payees’ you are finished with this file. (If you do not want the file processed, you must contact IRS/MCC with 10 days.)

Subsequent connections to the FIRE System

Click ‘Log On’ . Enter your logon name (most

users logon with their first and last name). Enter your password (the pass

word is user assigned and is case sensitive).

Select Programs

At Menu Options:

Click ‘Information Returns’ Enter your TCC: Enter your EIN: Click ‘Submit’ .

The system will then display the company name, address, city, state, ZIP code, contact and phone num

Accessories Communications (Windows 98) Hyperterminal The first time you log on, select

2001–20 I.R.B. 1181 May 14, 2001

A box will appear titled ‘Connection

Description’ . Enter a name and choose an icon for the connection: Country Code: United States of America Area Code: 304 Phone Number: 262-2400 Connect Using: (default)

(If you need to modify the phone number, select File, then Properties to enter defaults for the area code, phone numbers and/or special access codes.) Click on Dial . A ‘Connect’ box will appear to show

the status. Once you have connected to the FIRE System, if you do not get a menu within a few seconds, press the ENTER key one time.

Enter your TCC : Enter your EIN :

The system will then display the company name, address, city, state, ZIP code, and phone number. This information will be used for correspondence regarding this transmission. If you need to update, enter ‘ n ’ to change information; otherwise, enter ‘ y ’ to accept.

Select one of the following:

‘ A ’ for an Original file ‘ B ’ for a Replacement file

If you selected ‘B’ for a replacement file, select one of the following:

This option is to replace an original file that was submitted electronically on this system but was bad and requires replacement. Select the file to be replaced.

‘ A ’ Replacement Files For This

Click on Send .

When the upload is complete, the screen will display the total bytes received and the IRS assigned file name.

Press ENTER to continue. If you have more files to send for the same TCC/EIN, enter ‘ y ’; otherwise, enter ‘ n ’.

It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 10 business days.

To check the acceptability of a previously submitted file:

At the Main Menu:

System

Enter ‘ B ’ for file status. Press the Tab key to advance to TCC

box; otherwise, enter ‘ E ’ to exit. Enter your TCC: Enter your EIN: Choose the appropriate option. Tab to the file you want to look at

First Time Logon

When you have connected to the system, enter ‘ new ’ to create your logon name and password. Complete the registration information and enter ‘ y ’ to create account.

Logon Name and Password

Logon Name : Enter a logon name. Most users enter their first and last name as the logon name. Password : Enter a password of your choosing (1-8 alpha/numerics - case sensitive).

After entering the password, you will go to the Main Menu.

Transferring Your Electronic File

Enter ‘ A’ for Electronic Filing. After reading Information Notice, press ENTER . Enter ‘ A ’ for Forms 1098, 1099, and Questionable Forms W-4. Press the Tab key to advance to TCC box; otherwise, enter ‘ E ’ to exit.

A box will appear titled ‘Send File’.

Enter the drive/path/filename or click on Browse to locate your file.

or ‘ B ’ Magnetic media replacement

and press ENTER .

files Enter the alpha character from Form 9267, Media Tracking Slip, that was sent with the correspondence requesting a replacement file.

If ‘Results’ indicate:

‘File Good’ and you agree with the ‘Count of Payees’ you are finished with this file. (If you do not want the file processed, you must contact IRS/MCC within 10 days.)

Choose one of the following protocols (Hyperterminal is normally set to Zmodem by default):

X - Xmodem Y - Ymodem Z - Zmodem (Zmodem will nor

mally give you the fastest transfer rate.)

‘ File Bad’ - Correct the errors and resubmit the file as a replacement.

‘Not Yet Processed’ - File has been received, results are not available. Please recheck in several days. When you are finished, enter ‘ E ’ from the ‘Main Menu’ to logoff.

Enter ‘ 2 ’ to hang-up.

Sec. 9. Modem Configuration

.01 Hardware features

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

At this point, you must start the upload from your PC.

To send a file:

Go to the hyperterminal menu bar. Click on Transfer . Click on Send file .

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