SECTION 6. DRAFTING

INFORMATION

The principal author of this notice is Jennifer C. Bernardini of the Office of Associate Chief Counsel (Passthroughs

& Special Industries). For further information regarding this notice, contact Ms. Bernardini at (202) 622–3110 (not a toll-free call).

Fractional Aircraft Ownership Programs Fuel Surtax

Notice 2012–27

This notice provides guidance relating to the application of the tax imposed by § 4043 of the Internal Revenue Code (Code) on fuel used in fractional program aircraft. Section 4043 was added to the Code by section 1103 of the FAA Modernization and Reform Act of 2012 (Act) (Pub. L. 112–95) and applies to fuel used after March 31, 2012.

Section 4043 imposes a $0.141-per-gallon tax on any liquid used in a fractional program aircraft as fuel (1) for the transportation of a qualified fractional owner with respect to the fractional ownership aircraft program of which such aircraft is a part, or (2) with respect to the use of such aircraft on account of such a qualified fractional owner, including use in deadhead service.

In general, a fractional ownership aircraft program is a system of aircraft ownership and exchange that involves a single program manager that manages a fleet of aircraft on behalf of fractional owners. Participation in a fractional ownership aircraft program entitles the owner to fly on any of the aircraft in the program’s fleet on an on-available basis, regardless of whether the owner has an ownership interest in the aircraft in which the owner travels. The terms “fractional program aircraft,” “fractional ownership aircraft program,” and “qualified fractional owner” are defined in § 4043(c).

The following rules apply with respect to § 4043:

of $0.141-per-gallon on the use of any

liquid fuel in the propulsion system of a fractional program aircraft engaged in the activities described in § 4043(a).

manager, rather than fractional owners, is liable for the tax imposed by § 4043.

used in a flight, the taxes imposed by §§ 4261 and 4271 (related to amounts paid for taxable transportation) do not apply to that flight.

other taxes imposed on the removal, entry, use, or sale of the fuel. If tax is imposed by § 4043 on fuel used in a flight, the flight is not commercial aviation for purposes of the fuel tax imposed by § 4081.

considered used for the transportation of a qualified fractional owner, or on account of such qualified fractional owner, when they are used for flight demonstration, maintenance, or crew training. In such situations, the flight is not commercial aviation for purposes of the fuel tax imposed by § 4081. As a result, the § 4081 tax on the fuel used in the flight is imposed in the case of kerosene at the noncommercial aviation rate of $0.219 per gallon.

agers must report the tax imposed by § 4043 on Form 720, Quarterly Fed- eral Excise Tax Return, in accordance with instructions to that form. For example, for fuel used in April, May, and June of 2012, the manager must report the tax on Form 720 for the second quarter of calendar year 2012, and must file the Form 720 by July 31, 2012.

generally required to make semimonthly deposits of tax in accordance with § 40.6302(c)–1 of the Excise Tax Procedural Regulations. Thus, for example, the deposit covering the

2012–17 I.R.B. 849 April 23, 2012

ending on the last day before the beginning of the plan year.

Notice 2004–34, 2004–1 C.B. 848, provides guidelines for determining the corporate bond weighted average interest rate and the resulting permissible range of interest rates used to calculate current liability. That notice establishes that the corporate bond weighted average is based on the monthly composite corporate bond rate derived from designated corporate bond indices. The methodology for determining the monthly composite corporate bond rate as set forth in Notice 2004–34 continues to apply in determining that rate. See Notice 2006–75, 2006–2 C.B. 366. The composite corporate bond rate for March 2012 is 4.57 percent. Pursuant to Notice 2004–34, the Service has determined this rate as the average of the monthly yields for the included corporate bond indices for that month.

The following corporate bond weighted average interest rate was determined for plan years beginning in the month shown below.

first fifteen days in April 2012 is due by April 27, 2012. For further information regarding excise tax deposit requirements, see the instructions to Form 720.

The principal author of this notice is Michael H. Beker of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice, contact Mr. Beker at (202) 622–3130 (not a toll-free call).

Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates

Notice 2012–28

This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and

For Plan Years

the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

CORPORATE BOND WEIGHTED AVERAGE INTEREST RATE

Sections 412(b)(5)(B)(ii) and 412(l)(7)(C)(i), as amended by the Pension Funding Equity Act of 2004 and by the Pension Protection Act of 2006 (PPA), provide that the interest rates used to calculate current liability and to determine the required contribution under § 412(l) for plan years beginning in 2004 through 2007 must be within a permissible range based on the weighted average of the rates of interest on amounts invested conservatively in long term investment grade corporate bonds during the 4-year period

Corporate Bond Weighted

Beginning in Permissible Range

Month Year

Average 90% to 100%

April 2012 5.55 5.00 5.55

monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007–81, the monthly corporate bond yield curve derived from March 2012 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of March 2012 are, respectively, 1.57, 4.36, and 5.18. The three 24-month average corporate bond segment rates applicable for April 2012 are as follows:

Third Segment

YIELD CURVE AND SEGMENT RATES

Generally for plan years beginning after 2007 (except for delayed effective dates for certain plans under sections 104, 105, and 106 of PPA), § 430 of the Code specifies the minimum funding requirements that apply to single employer plans pursuant to § 412. Section 430(h)(2) specifies the interest rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates

First Segment

(“segment rates”), each of which applies to cash flows during specified periods. However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates. Section 430(h)(2)G) set forth a transitional rule applicable to plan years beginning in 2008 and 2009 under which the segment rates were blended with the corporate bond weighted average described above, including an election under § 430(h)(2)(G)(iv) for an employer to use the segment rates without the transitional rule.

Notice 2007–81, 2007–2 C.B. 899, provides guidelines for determining the

Second Segment

1.90 4.90 6.01

April 23, 2012 850 2012–17 I.R.B.

mum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in section 431(c)(6)(A), based on the plan’s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88–73, 1988–2 C.B. 383, provides guidelines for determining the weighted average interest rate. The following rates were determined for plan years beginning in the month shown below.

The transitional rule of § 430(h)(2)(G) does not apply to plan years beginning after December 31, 2009. Therefore, for a plan year beginning after 2009 with a lookback month to April 2012, the funding segment rates are the three 24-month average corporate bond segment rates applicable for April 2012, listed above without blending for any transitional period.

30-YEAR TREASURY SECURITIES INTEREST RATES

Section 417(e)(3)(A)(ii)(II) (prior to amendment by PPA) defines the applicable interest rate, which must be used for purposes of determining the minimum present value of a participant’s benefit under § 417(e)(1) and (2), as the annual

For Plan Years

rate of interest on 30-year Treasury securities for the month before the date of distribution or such other time as the Secretary may by regulations prescribe. Section 1.417(e)–1(d)(3) of the Income Tax Regulations provides that the applicable interest rate for a month is the annual rate of interest on 30-year Treasury securities as specified by the Commissioner for that month in revenue rulings, notices or other guidance published in the Internal Revenue Bulletin.

The rate of interest on 30-year Treasury securities for March 2012 is 3.28 percent. The Service has determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in February 2042.

Generally for plan years beginning after 2007, § 431 specifies the mini

30-Year Treasury Weighted

Beginning in Permissible Range

Month Year

Average 90% to 105%

April 2012 3.97 3.57 4.17

ing the minimum present value segment rates. Pursuant to that notice, the minimum present value transitional segment rates determined for March 2012, taking into account the March 2012 30-year Treasury rate of 3.28 stated above, are as follows:

Third Segment

MINIMUM PRESENT VALUE SEGMENT RATES

Generally for plan years beginning after December 31, 2007, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a

For Plan Years

Beginning in

24-month average. For plan years beginning in 2008 through 2011, the applicable interest rates are the monthly spot segment rates blended with the applicable rate under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning in 2007. Notice 2007–81 provides guidelines for determin

First Segment

Second Segment

2011 1.91 4.14 4.80 2012 1.57 4.36 5.18

DRAFTING INFORMATION

The principal author of this notice is Tony Montanaro of the Employee Plans,

Tax Exempt and Government Entities Division. Mr. Montanaro may be e-mailed at RetirementPlanQuestions@irs.gov .

2012–17 I.R.B. 851 April 23, 2012

Table I

Monthly Yield Curve for March 2012

Derived from March 2012 Data

Maturity Yield Maturity Yield Maturity Yield Maturity Yield Maturity Yield

April 23, 2012 852 2012–17 I.R.B.

NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.

26 CFR 601.602: Tax forms and instructions. (Also Part I, Sections 6041, 6051, 6071, 6081, 6091; 1.6041–1, 1.6041–2, 31.6051–1, 31.6051–2, 31.6071(a)–1, 31.6081(a)–1, 31.6091–1.)

Rev. Proc. 2012–22

TABLE OF CONTENTS

SECTION 1. — PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 853

SECTION 2 — WHAT’S NEW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 854

SECTION 3 — FILING FORMS W-2C AND W-3C ELECTRONICALLY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 854

SECTION 4 — SPECIFICATIONS FOR RED-INK SUBSTITUTE FORMS W-2C (COPY A) AND W-3C

FILED WITH THE SSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855

SECTION 5 — SPECIFICATIONS FOR SUBSTITUTE BLACK-AND-WHITE FORMS W-2C (COPY A) AND

W-3C FILED WITH THE SSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 857

SECTION 6 — REQUIREMENTS FOR SUBSTITUTE PRIVATELY-PRINTED FORMS W-2C (COPIES B, C,

AND 2) FURNISHED TO EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858

SECTION 7 — INSTRUCTIONS FOR EMPLOYERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 860

SECTION 8 — OMB REQUIREMENTS FOR BOTH RED-INK AND BLACK-AND-WHITE COPY A AND

W-3C SUBSTITUTE FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 860

SECTION 9 — REPRODUCIBLE COPIES OF FORMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 860

SECTION 10 — EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 861

SECTION 11 — EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 861

Section 1. — Purpose

.01 The purpose of this revenue procedure is to state the requirements of the Internal Revenue Service (IRS) and the Social Security Administration (SSA) regarding the preparation and use of substitute forms for Form W-2c, Corrected Wage and Tax Statement, and Form W-3c, Transmittal of Corrected Wage and Tax Statements, for wages paid during the 2011 calendar year.

.02 The of fi cial IRS Form W-2c is a six-part form and the of fi cial IRS Form W-3c is a one-part form. Red-ink substitute forms that completely conform to the speci fi cations contained in this document may be privately-printed without the prior approval of the IRS or the SSA. Only the substitute black-and-white Form (Copy A) and substitute black-and-white W-3c forms need to be submitted to the SSA for approval.

Note. Both paper substitute forms fi led with the SSA, and those furnished to employees, that do not totally conform to these speci fi cations are not acceptable. Forms W-2c (Copy A) and Forms W-3c that do not conform may be returned. In addition, penalties may be assessed by the IRS

.03 Substitute red-ink forms should not be submitted to either the IRS or the SSA for speci fi c approval. If you are uncertain of any speci fi cation and want clari fi cation, do the following.

(1) Submit a letter to the appropriate address below citing the speci fi cation. (2) State your understanding of the speci fi cation; enclose an example. (3) Be sure to include your name, complete address, phone number, and, if applicable, your email address with your correspon dence. .04 Any questions about the red-ink Form W-2c (Copy A) and Form W-3c, should be emailed to substituteforms@irs.gov. Please enter “Substitute Forms” on the subject line. Or send your questions to:

2012–17 I.R.B. 853 April 23, 2012

Internal Revenue Service Attn: Substitute Forms Program SE:W:CAR:MP:T:M:S, IR 6526 1111 Constitution Ave., NW Washington, DC 20224

Any questions about the substitute black-and-white Form W-2c (Copy A) and W-3c should be emailed to copy.a.forms@ssa.gov or sent to:

Social Security Administration Data Operations Center Attn: Substitute Black-and-White Copy A Forms, Room 348 1150 E. Mountain Drive Wilkes-Barre, PA 18702-7997

Do not mail completed Forms W-2c (Copy A) employer reports to the Substitute Black-and-White Copy A Forms address. Submitters should use the address shown on the Form W-3c.

Note. You should receive a response from either the IRS or the SSA within 30 days.

.05 The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains a centralized customer service call site to answer questions related to information returns (Forms W-2, W-3, W-2c, W-3c, 1099 series, 1096, etc.). You can reach the call site at 1–866–455–7438 (toll-free) or 304–263–8700 (not a toll-free number). The Telecommunication Device for the Deaf (TDD) number is 304–579–4827 (not a toll-free number). The hours of operation are Monday through Friday from 8:30 a.m. to 4:30 p.m. Eastern time. You may also send questions to the call site via the Internet at mccirp@irs.gov. IRS/IRB does not process information returns which are fi led on paper forms.

.06 The following form instructions and publications provide more detailed fi ling procedures for certain information returns.

Section 2 — What’s New

.01 The following changes have been made to Publication 1223 since the last revision (November 2010). The major changes include the following.

2010. Box 9, Advance EIC payments, has been eliminated from the 2011 Form W-2 (including Forms W-2GU, and W-2VI). This will not affect current versions of Forms W-2c and W-3c, as corrections to previously fi led Forms W-2 (including Forms W-2GU and W-2VI) reporting Advance EIC payments in Box 9 are required to be fi led for a period of four years after the original reportable tax year.

A and W-3c forms to Substitute black-and-white Forms W-2c (Copy A) and W-3c.

included in Box c Kind of Payer, Kind of Employer, Third-party sick pay boxes, and the “X’s” for the “Yes/No” area above the signature area for W-3c forms. Checkboxes will be included in Box e and Box 13 of the Form W-2c (Copy A).

new checkboxes. All fi lers are required to check one of these new checkboxes.

Section 3 — Filing Forms W-2c and W-3c Electronically

.01 Employers must fi le electronically with the SSA if they fi le 250 or more Forms W-2c (Copy A) during a calendar year unless the IRS granted you a waiver. For details, see the Instructions for Forms W-2c and W-3c. SSA publication EFW2C, Speci fi cations for

April 23, 2012 854 2012–17 I.R.B.

Filing Forms W-2c Electronically, contains speci fi cations and procedures for fi ling Forms W-2c. Employers are cautioned to obtain the most recent revision of EFW2C (and supplements) due to any subsequent changes in speci fi cations and procedures.

Note. For purposes of the electronic fi ling requirement, only Forms W-2c for the immediate prior year are taken into account. For example, if an employer must fi le 200 Forms W-2c for the immediate prior year in March and then discovers that another 100 Forms W-2c for the same year must be fi led in August, only the 100 Forms W-2c fi led in August must be fi led electronically.

.02 You may obtain a copy of the EFW2C by:

.03 Electronic fi lers do not fi le a paper Form W-3c. SSA creates this for you when Forms W-2c are submitted electronically. See the SSA publication EFW2 for guidance on transmitting Form W-2c (Copy A) information to the SSA electronically.

.04 Employers with fewer than 250 Forms W-2 to be corrected are encouraged to electronically fi le Forms W-2c (Copy A) with the SSA. Doing so will enhance the timeliness and accuracy of forms processing.

.05 Employers who do not comply with the electronic fi ling requirements for Form W-2c (Copy A) and who are not granted a waiver by the IRS may be subject to penalties. Employers who fi le Form W-2c information with the SSA electronically must not send the same data to the SSA on paper Forms W-2c (Copy A). Any duplicate reporting may subject fi lers to unnecessary contacts by the SSA or the IRS.

Section 4 — Specifications for Red-Ink Substitute Forms W-2c (Copy A) and W-3c Filed With the SSA

.01 The of fi cial IRS-printed red dropout ink Form W-2c (Copy A) and W-3c and their exact substitutes are referred to as red-ink in this revenue procedure. Employers may fi le substitute Forms W-2c (Copy A) and W-3c with the SSA. The substitute forms must be exact replicas of the of fi cial IRS forms with respect to layout and content because they will be read by scanner equipment. Even the slightest deviation can result in incorrect scanning, and may affect money amounts reported for employees.

.02 Color and paper quality for Form W-2c (Copy A) (cut sheets and continuous pin-fed forms) and Form W-3c, as speci fi ed by JCP Code 0–25 dated November 29, 1978, must be white 100% bleached chemical wood, optical character recognition (OCR) bond. The contractor must initiate or have a quality control program to assure OCR ink density.

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

.03 All printing of substitute Forms W-2c (Copy A) and W-3c must be in Flint red OCR dropout ink except as speci fi ed below. The following must be printed in nonre fl ective black ink:

2012–17 I.R.B. 855 April 23, 2012

.04 The vertical and horizontal spacing on Forms W-2c and W-3c must meet speci fi cations. See Exhibits A and B.

one-half point (0.007-inch). Vertical rules must be parallel to the left edge of the form; horizontal rules parallel to the top edge.

(Copy A) or W-3c must be 7.5 inches. See Exhibits A and B.

.05 The of fi cial red-ink Form W-3c and Form W-2c (Copy A) are 7.5 inches wide. Employers fi ling Forms W-2c (Copy A) with the SSA on paper must also fi le a Form W-3c. Form W-3c must be the same width (7.5 inches) as the Form W-2c (Copy A). One Form W-2c (Copy A) or Form W-3c is contained on a standard-size, 8.5 x 11-inch page.

.06 The top, left, and right margins for the Form W-2c (Copy A) and Form W-3c are .5 inches ( ¹ /2 inch). All margins must be free of printing except for the words “DO NOT CUT, FOLD, OR STAPLE THIS FORM” on red-ink Form W-2c (Copy A) or “DO NOT CUT, FOLD, OR STAPLE” on red-ink Form W-3c.

.07 The identifying numbers are “44444” for Form W-2c and “55555” for Form W-3c. No printing should appear anywhere near the identifying numbers.

Note. The identifying number must be printed in nonre fl ective black ink in OCR-A font of 10 characters per inch.

.08 Continuous pin-fed Forms W-2c (Copy A) must be separated into 11-inch deep pages. The pin-fed strips must be removed when Forms W-2c (Copy A) are fi led with the SSA.

.09 Box 12 of Form W-2c (Copy A) contains four entry boxes — 12a, 12b, 12c, and 12d. Do not make more than one entry per box. Enter your fi rst code in box 12a (for example, enter Code D in box 12a, not 12d, if it is your fi rst entry). If more than four items need to be reported in box 12, use a second Form W-2c to report the additional items. Do not report the same federal tax data to the SSA on more than one Form W-2c (Copy A). However, repeat the identifying information (employee’s name, address, and SSN; employer’s name, address, and EIN) on each additional form.

.10 The checkboxes in box 13 of Form W-2c (Copy A) must be .14 inches each; the space before the fi rst checkbox is .20 inches; the spacing on each remaining side of the three checkboxes is .36 inches. The checkboxes in box c of Form W-3c must also be .14 inches.

Note. More than 50% of an applicable checkbox must be covered by an “X.”

.11 All substitute Forms W-2c (Copy A) and W-3c in the red-ink format must have the form number and form title printed on the bottom face of each form using type identical or a close approximation to that of the of fi cial IRS form. The red-ink substitute must have the form producer’s (not the form fi ler’s) EIN entered in red in place of the Cat. No. (directly to the left of “Department of the Treasury” for Form W-2c (Copy A) and at the bottom for Form W-3c).

.12 The words “For Privacy Act and Paperwork Reduction Act Notice, see separate instructions” must be printed on all Forms W-2c (Copy A) and Forms W-3c.

.13 The Of fi ce of Management and Budget (OMB) Number must be printed on substitute Forms W-3c and W-2c (Copy A) (on each ply) in the same location as on the of fi cial IRS forms.

.14 All substitute Forms W-3c must include the instructions that are printed on the same sheet below the of fi cial IRS form. .15 The appropriate SSA addresses must be printed on the front of Form W-3c below the body of the form (see Exhibit B). If you use the U.S. Postal Service, the address is:

Social Security Administration Data Operations Center P.O. Box 3333 Wilkes-Barre, PA 18767–3333

If you use a carrier other than the U.S. Postal Service, the address is:

April 23, 2012 856 2012–17 I.R.B.

Social Security Administration Data Operations Center Attn: W-2c Process 1150 E. Mountain Drive Wilkes-Barre, PA 18702–7997

.16 The back of substitute Form W-2c (Copy A) and Form W-3c must be free of all printing. .17 All copies must be clearly legible. Fading must be minimized to assure legibility. .18 Chemical transfer paper is permitted for Form W-2c (Copy A) only if the following standards are met:

processed properly by scanning equipment.

.19 The Government Printing Of fi ce (GPO) symbol and the Catalog Number (Cat. No.) must be deleted from substitute Form W-2c (Copy A) and Form W-3c.

.20 The sequence for assembling the copies of Form W-2c is as follows.

Section 5 — Specifications for Substitute Black-and-White Forms W-2c (Copy A) and W-3c Filed With the SSA

.01 The SSA-approved substitute black-and-white Forms W-2c (Copy A) and W-3c are referred to as substitute black-and-white Form W-2c (Copy A) and W-3c. Speci fi cations for the substitute black-and-white Form W-2c (Copy A) and W-3c are similar to the red-ink forms (Section 4) except for the items that follow (see Exhibits C and D). You may contact the SSA via email at copy.a.forms@ssa.gov for more information.

Note. Exhibits are samples only and must not be downloaded to meet tax obligations.

(1) Forms must be printed on 8.5 x 11-inch single-sheet paper only, not on continuous pin-fed paper. There must be one Form

W-2c (Copy A) or W-3c printed on a page. (2) All forms and data must be printed in nonre fl ective black ink only. (3) The data and forms must be programmed to print simultaneously. Forms cannot be produced separately from wage data

entries. (4) The forms must not contain corner register marks. (5) The forms must not contain any shaded areas including those boxes that are entirely shaded on the red-ink forms. (6) Identifying numbers on both Form W-2c (Copy A) (“44444”) and Form W-3c (“55555”) must be preprinted in 14-point

Arial bold font or a close approximation. (7) The form numbers (“W-2c” and “W-3c”) must be in 18-point Arial font or a close approximation. (8) No part of the box titles or the data printed on the forms may touch any of the vertical or horizontal lines, nor should any

of the data intermingle with the box titles. The data should be centered in the boxes. (9) Do not print any information in the margins of the black-and-white forms (for example, do not print “DO NOT CUT, FOLD,

OR STAPLE” in the top margin of Form W-3c). (10) The word “Code” must not appear in box 12 on Form W-2c (Copy A). (11) A 4-digit vendor code (not fi ler code) preceded by four zeros and a slash (for example, 0000/9876) must appear in 12-point

Arial font, or a close approximation, in place of the Cat. No. to the left of “Department of the Treasury” on Form W-2c (Copy A) and in the bottom right corner of Form W-3c.

Note. Do not display the form producer’s EIN. The vendor code will be used to identify the form producer.

(12) Do not print Catalog Numbers (Cat. No.) on either Form W-2c (Copy A) or Form W-3c. (13) Do not print dollar signs. If there are no money amounts being reported, the entire fi eld should be left blank.

2012–17 I.R.B. 857 April 23, 2012

.02 The dimensions for the substitute black-and-white Forms W-2c (Copy A) and W-3c are as follows. See Exhibits C and D.

(1) The left and top margins on Form W-2c (Copy A) and Form W-3c must measure ¹ /2 (0.5) inch. (2) The distance from the top line of Form W-3c to the bottom line of the form must measure 7 ¹ /6 (7.17) inches. (3) The distance from the top line of Form W-2c (Copy A) to the bottom line of the form must measure 9 ¹ /3 (9.33) inches. (4) Each box on Form W-2c (Copy A) and Form W-3c must measure ¹ /3 inch in height. (5) Box b on Form W-3c must measure (1) inch in height. (6) Box a on Form W-2c (Copy A) must measure 1 ¹ /3 inches in height and box 14 must measure ⁵ /6 (0.83) inch in height. (7) The fi rst three column on the right of Form W-2c (Copy A) and Form W-3c must measure 1 ⁹ /10 (1.9) inches in width. (8) The last column on the right of Form W-2c (Copy A) and Form W-3c must measure 1 ⁸ /10 (1.8) inches in width. (9) The “Explain decreases here” box has been reduced to measure ¹ /3 (0.33) inches to allow for an increase in Box b and the

“Signature” box on Form W-3c must measure ¹ /2 (0.5) inches in height. .03 You must submit samples of your black-and-white substitute forms to the SSA. Only black-and-white substitute Forms W-2c (Copy A) and W-3c will be accepted for approval by the SSA. Questions regarding other forms (that is, red-ink Forms W-2, W-2c, W-3, W-3c, 1099 series, 1096, etc.) must be directed to the IRS. Also, see IRS Publications 1141 and 1179.

.04 You will be required to send one set of blank and one set of dummy-data substitute black-and-white Form W-2c (Copy A) and W-3c for approval. Sample data entries should be fi lled in to the maximum length for each box entry, preferably using numeric data or alpha data, depending upon the type required to be entered. Include in your submission the name, telephone number, fax number, and email address of a contact person who can answer questions regarding your sample forms.

.05 To receive approval, you may fi rst contact the SSA at copy.a.forms@ssa.gov to obtain a template and further instructions in PDF format. Do not mail completed Form W-2c (Copy A) and W-3c employer reports to the Substitute Black-and-White Forms (Copy A) address. Submitters should use the address shown on the Form W-3c. You may also send your sample substitute black-and-white forms to:

Social Security Administration Data Operations Center Attn: Substitute Black-and-White Copy A Forms, Room 348 1150 E. Mountain Drive Wilkes-Barre, PA 18702–7997

Send your sample forms via private mail carrier or certi fi ed mail in order to verify their receipt. You may send your sample forms via electronic mail to Copy.A.Forms@ssa.gov .

.06 The 4-digit vendor code preceded by four zeros and a slash (0000/9876) must be preprinted on the sample black-and-white substitute forms. Forms not containing a vendor code will be rejected and will not be submitted for testing or approval. If you have a valid vendor code provided to you through the National Association of Computerized Tax Processors, you should use that code. If you do not have a valid vendor code, contact the Social Security Administration at copy.a.forms@ssa.gov to obtain an SSA-issued code. (Additional information on vendor codes may be obtained from the SSA or the National Association of Computerized Tax Processors via email at president@nactp.org .)

Note. Vendor codes are only required by those companies producing the W-2 family of forms as part of a product for resale to be used by multiple employers and payroll professionals. Employers developing Forms W-2c or W-3c to be used only for their individual company do not require a vendor code.

.07 If you use forms produced by a vendor and have questions concerning approval, do not send the forms to the SSA for approval. Instead, you may contact the software vendor to obtain a copy of SSA’s dated approval notice supplied to that vendor.

Section 6 — Requirements for Substitute Privately-Printed Forms W-2c (Copies B, C, and 2) Furnished to Employees

.01 All employers (including those who fi le electronically) must furnish employees with at least two copies of Form W-2c (three or more for employees required to fi le a state, city, or local income tax return). Employee copies do not require approval as long as these requirements are followed.

Note. Although substitute Copy 1 of Form W-2c can be printed in black instead of the red dropout ink, it should conform as closely as possible to Copy A of the of fi cial IRS form in content, format, and layout in order to satisfy state and local reporting requirements.

.02 Some Forms W-2c that include logos, slogans, and advertisements (including advertisements for tax preparation software) may be confused with questionable Forms W-2c. An employee may not recognize the importance of the employee copy for tax reporting purposes due to the use of logos, slogans, and advertisements. Thus, the IRS has determined that logos, slogans, and advertising will

April 23, 2012 858 2012–17 I.R.B.

not be allowed on Forms W-3c, Copy A of Forms W-2c, or any employee copies reporting wages paid during the 2011 calendar year, and thereafter, with the following exceptions:

January 1, 2011.

The IRS e- fi le logo on the IRS of fi cial employee copies may be included, but it is not required, on any of the substitute form copies. The information return and employee copies must clearly identify the employer’s name associated with its employer identi fi cation number.

Forms W-2c and W-3c are subject to annual review and possible change. The prohibition against including slogans, advertising, and logos on information returns and employee copies reporting wages paid during the 2011 calendar year that was announced in Rev. Proc. 2011–62 (the previous issue of Publication 1141). The prohibition is now in effect for reporting wages paid in 2012 and thereafter. Do not include logos, slogans or advertising on any information returns or employee copies fi led in 2012 or thereafter. This revenue procedure may be revised to state other requirements of the IRS and the SSA regarding the preparation and use of substitute forms for Form W-2c and Form W-3c for wages paid during the 2011 calendar year, at a future date. If you have comments about the prohibition against including slogans, advertising, and logos on information returns and employee copies, send or email your comments to: Internal Revenue Service, Attn: Substitute Forms Program, SE:W:CAR:MP:T:M:S, IR 6526, 1111 Constitution Ave., NW, Washington, DC 20224 or Substituteforms@irs.gov .

.03 Chemical transfer paper for employee copies must be clearly legible, have the capability to be photocopied, and not fade to such a degree as to preclude legibility and the ability to photocopy.

.04 Chemical transfer paper for employee copies must be clearly legible, have the capability to be photocopied, and not fade to such a degree as to preclude legibility and the ability to photocopy.

.05 Type must be substantially identical in size and shape to that on the of fi cial form. .06 Substitute forms for employees need to contain only the payment boxes and captions that are applicable. These boxes, box numbers, and box titles must, when applicable, match the IRS-printed form. In all cases, the employee name, address, and SSN, as well as the employer name, address, and EIN, must be present.

.07 The dimensions of the boxes on these copies (Copies B, C, and 2), but not Copy A, may be adjusted to allow space for conveying additional information. This may permit the employer to eliminate other statements or notices that would otherwise be furnished to employees.

.08 The maximum allowable dimensions for employee copies of Form W-2c are no more than 11 inches deep by 8.5 inches wide. The minimum allowable dimensions for employee copies of Form W-2c are 2.67 inches deep by 4.25 inches wide.

Note. These maximum and minimum size speci fi cations are subject to future change.

.09 Either horizontal or vertical format is permitted for substitute employee copies of Forms W-2c. That is, the width of the form may be either greater or less than the depth of the form.

.10 All copies of Form W-2c must clearly and prominently display the form number and the form title together in one area of the form. It is recommended (but not required) that this be located on the bottom left of Form W-2c. The reference to the “Department of the Treasury – Internal Revenue Service” must be on all copies of Form W-2c. It is recommended (but not required) that this be located on the bottom right of Form W-2c.

.11 If the substitute Forms W-2c are not labeled as to the disposition of the copies, then written noti fi cation must be provided to each employee as speci fi ed below.

If the substitute Forms W-2c are labeled, the forms must contain the applicable description as stated on the of fi cial form. .12 Instructions similar to those on the back of Form W-2c (Copy C) of the of fi cial form must be provided to each employee.

2012–17 I.R.B. 859 April 23, 2012

Section 7 — Instructions for Employers

.01 Privately-printed substitute Forms W-2c are not required to contain a copy to be retained by employers (Copy D). However, employers must be prepared to verify or duplicate this information if the IRS or the SSA requests it. Paper fi lers who do not keep Copy D of Form W-2c should be able to generate a facsimile of Form W-2c (Copy A) in case of loss.

.02 If Copy D is provided for the employer, instructions contained on the back of Copy D of the of fi cial form must appear on the back of the substitute form. If Copy D is not provided, these instructions must be furnished to the employer on a separate statement.

.03 Only originals or compliant substitute copies of Forms W-2c (Copy A) and Forms W-3c may be fi led with the SSA. Carbon copies and photocopies are unacceptable.

.04 Employers should type or machine print entries on non-laser generated forms whenever possible and provide good quality data entries by using a high quality typeface, inserting data in the middle of blocks that are well separated from other printing and guidelines, and taking any other measures that will guarantee clear, sharp images.

.05 Because employers must fi le a machine-scannable Form W-2c, they should meet the following requirements.

.06 The employer must also furnish payee copies of Forms W-2c (Copies B, C, and 2) that are legible and capable of being photocopied (by the employee).

.07 When Forms W-2c or W-3c are typed, black ink must be used with no script type, inverted font, italics, or dual-case alpha characters.

.08 Forms W-2c (Copy A) requires decimal entries for wage data. Dollar signs should not be printed with money amounts on Forms W-2c (Copy A) and Form W-3c.

.09 The fi ler’s employer identi fi cation number (EIN) must be entered in box (b) of Form W-2c and box (e) of Form W-3c. .10 The employer’s name, address, EIN, and state ID number may be preprinted.

Section 8 — OMB Requirements for Both Red-Ink and Black-and-White Copy A and W-3c Substitute Forms

.01 The Paperwork Reduction Act (the Act) of 1995 (Public Law 104–13) requires the following.

may be found on the of fi cial IRS printed forms and are also shown on the forms in the exhibits.)

(1) Why the IRS needs the information, (2) How it will be used, and (3) Whether or not the information is required to be furnished to the IRS. .02 This information must be provided to any users of of fi cial or substitute IRS forms or instructions. .03 The OMB requirements for substitute IRS Form W-2c (Copy A) and Form W-3c are the following.

(1) OMB No. 1545–0008 (preferred) or (2) OMB # 1545–0008 (acceptable). .04 Any substitute Form W-3c and Form W-2c (Copy A only) must state “For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D”. If no instructions are provided to users of your forms, you must furnish them the exact text of the Privacy Act and Paperwork Reduction Act Notice.

Section 9 — Reproducible Copies of Forms

.01 You can obtain of fi cial IRS forms and information copies of federal tax materials at local IRS of fi ces or by calling the IRS Distribution Center at 1–800–829–3676. Other ways to get federal tax material include the following.

April 23, 2012 860 2012–17 I.R.B.

Only contact the IRS, not the SSA, for forms.

Note. Many IRS forms are provided on IRS.gov and on the IRS Tax Products on DVD. But copies of Form W-2c (Copy A) and Form W-3c cannot be used for fi ling with the IRS or SSA when obtained by these methods because the forms do not meet the speci fi c printing speci fi cations as described in this publication. Copies of Forms W-2c and W-3c obtained from these sources are for information purposes only.

.02 The DVD contains approximately 2,500 tax forms and publications for small businesses, return preparers, and others who frequently need current or prior year tax products. Most current tax forms on the DVD may be fi lled in electronically, then printed out for submission and saved for recordkeeping. Other products on the DVD include the Internal Revenue Bulletins, Tax Supplements, and Internet resources and links for the tax professional.

For system requirements, contact the National Technical Information Service (NTIS) at http://www.ntis.gov. Prices are subject to change. The cost of the DVD if purchased from NTIS via the Internet at www.irs.gov/formspubs/article/0,,id=108660,00.html is $30 (with no handling fee). If purchased using the following methods, the cost for each DVD is $30 (plus a $6 handling fee). These methods are:

National Technical Information Service 5301 Shawnee Road Alexandria, VA 22312

Section 10 — Effect on Other Documents

.01 Revenue Procedure 2010–43, 2010–47 I.R.B. 738 (reprinted as Publication 1223, Rev. 11–2010), is superseded.

Section 11 — Exhibits

2012–17 I.R.B. 861 April 23, 2012

April 23, 2012 862 2012–17 I.R.B.

2012–17 I.R.B. 863 April 23, 2012

April 23, 2012 864 2012–17 I.R.B.

2012–17 I.R.B. 865 April 23, 2012