SEC. 6. MAGNETIC MEDIA AND

ELECTRONIC FILING

.01 All forms listed in Section 1.01 (except Form 1096) may be filed magnetically or electronically. The IRS encourages all filers including nominees (hereafter collectively referred to as filers) to file information returns on magnetic media or electronically instead of on paper forms.

.02 Any person who is required to file 250 or more (of any one type of form) information returns for one calendar year MUST file on magnetic media unless an undue hardship waiver is requested and received. To request a one year waiver of the magnetic media filing requirements, for the current tax year only, submit Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media. See Publication 1220 Part A, See. 5, for more

information. Specifications for filing information returns on magnetic media are contained in Publication 1220, ‘‘Specifications for Filing Forms 1098, 1099, 5498, and W–2G Magnetically or Electronically.’’ Copies of this publication may be obtained by calling 1-800- TAX-FORM (1-800-829-3676). Payers who do not comply with the magnetic filing requirements and who are not granted a waiver may be subject to certain penalties. Note: Filing electronically will satisfy the magnetic media filing requirements. Refer to Publication 1220, Part C, Biscynchronous (Mainframe) Electronic Filing S p e c i f i c a t i o n s a n d P a r t D, Asynchronous (IRB–BBS) Electronic Filing Specifications.