EMPLOYERS IN POSSESSIONS WILL FILE WAGE AND TAX STATEMENTS ON MAGNETIC MEDIA.

Notice 95-64

This notice provides information on magnetic media filing requirements that the Internal Revenue Service intends to prescribe for employers filing wage and tax statements for employees in Puerto Rico, U.S. Virgin Islands, Guam, and American Samoa, and also invites public comment on this matter.

RETURNS REQUIRED ON MAGNETIC MEDIA. Under section 6011(e) of the Internal Revenue Code, the Secretary is authorized to issue regulations providing standards for determining which returns must be filed on magnetic media.

Currently, employers are encouraged, but are not required, to file the following wage and tax statements on magnetic media:

(1) Form 499R-2/W-2PR, Withholding Statement (Puerto Rico);

(2) Form W-2VI, U.S. Virgin Islands Wage and Tax Statement;

(3) Form W-2GU, Guam Wage and Tax Statement; and

(4) Form W-2AS, American Samoa Wage and Tax Statement.

The Service intends to issue proposed regulations that will require an employer to file these wage and tax statements on magnetic media if the employer is required to file 250 or more statements during the calendar year, unless a waiver for hardship is obtained. This magnetic media filing requirement will be effective for wage and tax statements required to be FILED AFTER DECEMBER 31, 1996, with the Social Security Administration.

INFORMATION REGARDING MAGNETIC MEDIA SPECIFICATIONS. Specifications for magnetic media filing may be obtained from the Social Security Administration by contracting:

     (1) for Form W-2GU and Form W-2AS, contact:

     Internal Revenue Service

DRAFTING INFORMATION:

The principal author of this notice is Donna J. Welch of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this notice, contact Ms. Welch on (202) 622-4910 (not a toll-free number).