Section 1. Addresses for Martinsburg Computing Center

Section 2. Telephone Numbers for Contacting IRS

Part A. General

Revenue Procedures are generally revised annually to reflect legislative and form changes. Comments concerning this Revenue Procedure, or suggestions for making it more helpful, can be addressed to:

Internal Revenue Service Martinsburg Computing Center Attn: Information Reporting Program 230 Murall Drive Kearneysville, WV 25430

Sec. 1. Purpose

.01 The purpose of this Revenue Procedure is to provide the specifications for filing Form 1042–S magnetically or electronically, using 1/2-inch 9-track tape, IBM 3480, 3490, 3490E, 3590, 3590E or AS400 compatible tape cartridges (including 4mm, 8mm & QIC), or 3 1/2-inch diskette with IRS. IRS/MCC has discontinued processing 8-inch and 5 1/4-inch diskettes and the main- frame electronic filing system. In addition, IRS/MCC will no longer process 1/2-inch 9-track magnetic tape beginning in cal- endar year 2003 for tax year 2002. The previously used IRP-BBS (Bulletin Board System) has also been replaced . The new electronic filing system is known as FIRE (Filing Information Returns Electronically). When using the Revenue Procedure for filing prior year returns, reformat required information from prior years to fit the updated specifications . This Revenue Procedure must be used to prepare current and prior year information returns filed beginning January 1, 2002, and received by IRS/MCC or post- marked by December 31, 2002.

.02 Generally, the box numbers on the paper Form 1042–S correspond with the fields used to file magnetically/electronically; however, if discrepancies occur, the instructions in this Revenue Procedure govern.

.03 This Revenue Procedure supersedes Rev. Proc. 98–44 published as Publication 1187, Specifications for Filing Form 1042–S, Foreign Person’s U.S. Source Income Subject to Withholding, Magnetically or Electronically.

.04 Refer to Part A, Sec. 17, for definitions of terms used in this publication. .05 Specifications for filing Forms W-2, Wage and Tax Statements, magnetically/electronically are available from the Social Security Administration (SSA) only . Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.

.06 IRS/MCC does not process Forms W-2. Paper and/or magnetic media for Forms W-2 must be sent to SSA. IRS/MCC does, however, process waiver requests (Form 8508) and extension of time to file requests (Form 8809) for Forms W-2 and requests for an extension of time to provide the employee copies of Forms W-2.

.07 The following Revenue Procedures and publications provide more detailed filing procedures for certain information returns:

(a) 2001 Instructions for Form 1042–S. (b) Rev. Proc. 84–33, 1984–1 C.B. 502, regarding the optional method for agents to report and deposit backup withholding. (c) Publication 1179, Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 1042–S, 5498, and W–2G. (d) Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Magnetically or Electronically. (e) Publication 1220 (Rev. 7 –2001 ), Specifications for Filing Forms 1098, 1099, 5498, and W-2G, Magnetically or Electronically.

August 13, 2001 132 2001–33 I.R.B.

(f) Publication 1245, Specifications for Filing Form W-4, Employee’s Withholding Allowance Certificate, Magnetically or Electronically.

Sec. 2. Nature of Changes—Current Year (Tax Year 2001)

.01 Due to the issuance of final regulations to Internal Revenue Code (IRC) Section 1441, effective January 1, 2001, this publication is completely revised for Tax Year 2001. Because of this comprehensive revision, changes are not emphasized by the use of italics as in the past. Major changes are listed below, however, filers must read the publication in its entirety for Form 1042–S to be filed correctly, magnetically or electronically.

.02 IRS/MCC will no longer return problem media in need of replacement. See Part A, Sec. 12. Filers will receive Form 9267, Media Tracking Slip, a listing of errors, and a letter detailing the problem(s) encountered during processing. Filers will be expected to send replacement media within the prescribed time frame . This makes it imperative that filers maintain backup copies and/or recreate capabilities for their information return files. All references to returning media for replacement were deleted.

.03 Major changes were implemented for the processing of Form 1042–S. See Part A, Sec.12.03 for a complete listing of errors that will result in a request for a replacement file.

.04 Validity, consistency, and related math error checks within individual “Q” Records will no longer be conducted as part of IRS/MCC’s processing. This processing will be performed by the IRS Service Center. See Part A, Sec. 13.

.05 The guidelines for corrected returns have been updated to reflect record and format changes. See Part A, Sec. 14. .06 Beginning in calendar year 2003 for Tax Year 2002, IRS/MCC will no longer accept 9-track tape for filing Form 1042–S. See Part B, Sec. 2, Tape Specifications.

.07 The record layout and record sequence have changed. A Reconciliation “C” Record was added, and the End of Transmission “F” Record has replaced the “Y” Record. A file will consist of records in the following sequence:

Transmitter “T” Record, Withholding Agent “W” Record, Recipient “Q” Record(s), Reconciliation “C” Record, and End of Transmission “F” Record. Multiple sets of the Withholding Agent “W” Record, the Recipient “Q” Record(s), and the Reconciliation “C” Record may be included within the file in that sequence. However, the file must contain only one Transmitter “T” Record (at the beginning of the file) and one End of Transmission “F” Record (at the end of the file). The record length has changed to 780 fixed positions. Block size must not exceed 23,400 tape positions. See Part B.

.08 A Reconciliation “C” Record has been added to summarize the number of “Q” Records and income amounts reported in the Recipient “Q” Records for a specific Withholding Agent “W” Record. See Part B, Reconciliation “C” Record.

.09 The final record on a file has been changed to End of Transmission “F” Record. See Part B, End of Transmission “F” Record. .10 Filers must read the record format for each type of record very carefully. There have been numerous changes, additions, and deletions to the elements in each record.

Sec. 3. Where To File and How to Contact the IRS, Martinsburg Computing Center

.01 All information returns filed magnetically or electronically are processed at IRS/MCC. Files containing information returns and requests for IRS magnetic media and electronic filing information should be sent to the following address:

IRS-Martinsburg Computing Center Information Reporting Program 230 Murall Drive Kearneysville, WV 25430

.02 All requests for an extension of time to file information returns with IRS/MCC or to the recipients, and requests for undue hardship waivers filed on Form 8508, should be sent to the following address:

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

.03 The telephone numbers for magnetic media inquiries or electronic submissions are: