☛ Note: Do not enter — Internal Revenue Bulletin 2002-25

are requesting an extension for Form 1099-INT and Form 5498 for the same payer, submit one record with “2” coded in this field and another record with “3” coded in this field. If you are requesting an extension for Form 1099-DIV and Form 1099-MISC for the same payer, submit one record with “2” coded in this field.

187 Foreign Entity Indicator 1 Enter character “X” if the payer is a foreign entity.

188–198 Blank 11 Enter blanks.

199–200 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.

Extension of Time Record Layout

Transmitter Control Code

Payer

TIN

Payer Name

Second Payer Name

Payer Address Payer City Payer State

1–5 6–14 15–54 55–94 95–134 135–174 175–176

Payer

ZIP Code

Document

Indicator

Foreign

Entity Indicator

Blank Blank or CR/LF

177–185 186 187 188–198 199–200

Sec. 4. Extension of Time for Recipient Copies of Information Returns

.01 Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W-2G, W-2 series, and 1042-S by submitting a letter to IRS/MCC at the address listed in Part E, Sec. 1.08. 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 duly authorized person

June 24, 2002 1282 2002–25 I.R.B.

.02 Requests for an extension of time to furnish the statements to recipients for Forms 1098, 1099, 5498, W-2G, W-2 series, 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.

.03 Generally, only the payer may sign the letter requesting the extension for recipient copies. A transmitter may sign if given power of attorney; however, a letter signed by the payer stating this fact must be attached to the extension request letter. A transmitter must submit a separate extension request letter for each payer. Do not submit a list of payers.

Sec. 5. Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media

.01 If a payer is required to file on magnetic media but fails to do so (or fails to file electronically in lieu of magnetic media filing) and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For penalty information, refer to the Penalty Section of the 2002 General Instructions for Forms 1099, 1098, 5498, and W-2G. )

.02 If payers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to IRS/MCC. A Form 8508 can be obtained on the IRS Web Site at www.irs.gov or by calling toll-free 1–800– 829–3676. .03 Even though a payer may submit as many as 249 corrections on paper, IRS encourages electronic or magnetic filing of corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more electronically or magnetically. However, if a waiver for original documents is approved, any corrections for the same type of returns will be covered under this waiver.

.04 Generally, only the payer may sign the Form 8508. A transmitter may sign if given power of attorney; however, a letter signed by the payer stating this fact must be attached to the Form 8508.

.05 A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers. .06 All information requested on the Form 8508 must be provided to IRS for the request to be processed. .07 The waiver, if approved, will provide exemption from the magnetic media filing requirement for the current tax year only. Payers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.

.08 Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original form.

.09 Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns. Generally, IRS/ MCC does not process waiver requests until January. Waiver requests received prior to January are processed on a first come, first serve basis.

10. All requests for a waiver should be sent using the following address:

IRS-Martinsburg Computing Center Information Reporting Program 240 Murall Drive Kearneysville, WV 25430

.11 File Form 8508 for the W-2 series of forms with IRS/MCC not SSA. .12 Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth in the regulations under Section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.

.13 If a waiver request is approved, the transmitter should keep the approval letter on file. The transmitter should not send a copy of the approved waiver to the service center where the paper returns are filed.

.14 An approved waiver from filing information returns on magnetic media does not provide exemption from all filing. The payer must timely file information returns on Copy A of acceptable paper forms with the appropriate service center.

2002–25 I.R.B. 1283 June 24, 2002