• Electronic payee statements are permitted for all Forms 1099, 1098, and 5498 (see…

4.5 ).

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

1042-S

1.2.1 Introduction Paper substitutes for Form 1096 and Copy A of Forms 1098, 1099, 5498, W-2G, and 1042-S that totally conform to 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.

2004–41 I.R.B. 605 October 12, 2004

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 SE:W:CAR:MP:T:T:SP 1111 Constitution Ave., NW Room 6406 Washington, DC 20224

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

You may also contact the Substitute Forms Program Unit via e-mail at *taxforms@irs.gov . Please enter “Substitute Forms” on the Subject Line.

Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S 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 2004 forms only.

1.2.2 Copy A Specifications Proposed substitutes of Copy A must be an exact replica of the official IRS form with respect to layout and content. Proposed substitutes for Copy A that do not conform to the specifications in this revenue procedure are not acceptable. Further, if you file such forms with the IRS, you may be subject to a penalty for failure to file a correct information return under section 6721 of the Code. Generally, the penalty is $50 for each return where such failure occurs (up to $250,000). No IRS office is authorized to allow deviations from this revenue procedure.

Caution: Overuse of proportional fonts may cause you to be subject to penalties and delays in processing.

1.2.3 Copy B and Copy C Specifications

Copies B and Copies C of the following forms must contain the information in Part 4 to be considered a “statement” or “official form” under the applicable provisions of the Code. The format of this information is 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 forms below, are for the following recipients.

October 12, 2004 606 2004–41 I.R.B.

Copy C 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 Recipient Form recipient means the person to whom you are required by law to furnish a copy of the official form or information statement. The form recipient may be referred to by different names on various Forms 1099 and related forms (“payer,” “borrower,” “student,” “debtor,” “policyholder,” “insured,” “transferor,” “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 Form Substitute form means a paper substitute of Copy A of an official form listed in Section 1.1.2 that totally conforms to the provisions in this revenue procedure.

1.3.4 Substitute Form Recipient Statement

1.3.5 Composite Substitute Statement

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

Composite substitute statement means one in which two or more required statements (for example, Forms 1099-INT and 1099-DIV) are furnished to the recipient on one document. However, each statement must be designated 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.

2004–41 I.R.B. 607 October 12, 2004

Part 2 Specifications for Substitute Forms 1096

and Copies A of Forms 1098, 1099,

and 5498 (All Filed with the IRS)

Section 2.1 - Specifications

2.1.1 General Requirements Form identifying numbers (for example, 9191 for Form 1099-DIV) must be printed in nonreflective black carbon-based ink in print positions 15 through 19 using an OCR A font. The checkboxes to the right of the form identifying numbers must be 10-point boxes. The “VOID” checkbox is in print position 25. The “CORRECTED” checkbox is in position 33. Measurements are from the left edge of the paper, not including the perforated strip. See Exhibits D and M .

The substitute form must be an exact replica of the official IRS form with respect to layout and content. To determine the correct form measurements, see Exhibits A through Y at the end of this publication.

Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply.

Use of chemical transfer paper for Copy A is acceptable.

The Government Printing Office (GPO) symbol must be deleted.

2.1.2 Color and Paper Quality Color and paper quality for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 0–25, dated November 29, 1978, must be white 100% bleached chemical wood, optical character recognition (OCR) bond produced in accordance with the following specifications.

Note. Reclaimed fiber in any percentage is permitted provided the requirements of this standard are met.

• Acidity: Ph value, average, not less than. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5

• Basis Weight: 17 x 22-500 cut sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-20

• Metric equivalent–g/m ² . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

A tolerance of ±5 pct. is allowed.

• Stiffness: Average, each direction, not less than-milligrams . . . . . . . . . . . . 50

• Tearing strength: Average, each direction, not less than-grams . . . . . . . . . 40

• Opacity: Average, not less than-percent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

• Thickness: Average-inch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0038

• Metric equivalent-mm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.097

A tolerance of +0.0005 inch (0.0127 mm) is allowed. Paper cannot vary more than 0.0004 inch (0.0102 mm) from one edge to the other.

• Porosity: Average, not less than-seconds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

• Finish (smoothness): Average, each side-seconds. . . . . . . . . . . . . . . . . . . . . 20-55

• For information only, the Sheffield equivalent-units. . . . . . . . . . . . . . . . . . . 170-100

• Dirt: Average, each side, not to exceed-parts per million. . . . . . . . . . . . . . . 8

October 12, 2004 608 2004–41 I.R.B.

2.1.3 Chemical Transfer Paper Chemical transfer paper is permitted for Copy A only if the following standards are met: