Rev. Proc. 82-10

PART A--GENERAL

SECTION 1. PURPOSE AND NATURE OF CHANGES

The purpose of this revenue procedure is to update Rev. Proc. 81-13, 1981-1 C.B. 654, concerning the requirements and conditions for filing annual information returns for windfall profit tax on magnetic tape instead of on paper returns. Specifications for filing Form 6248, Annual Information Return of Windfall Profit Tax, are contained in this procedure. For Tax Year 1981 the following changes have been included in this revenue procedure:

.01 Expansion of all Records to 1450 characters in length.

.02 Expansion of the maximum block size to 14,500 characters in length.

.03 Inclusion of up to eight lines of Producer Name/Address information and deletion of separate name, address, city and state field in the Producer/Recipient "H" record.

.04 Inclusion of optional fields for owner's I.D. and Preparation Date in the Producer/Recipient "H" record.

.05 Certain fields in the Producer/Recipient "H" record are now optional. These fields are indicated in the layout of the "H" record.

SEC. 2. APPLICATION FOR MAGNETIC MEDIA REPORTING

.01 For the purpose of this revenue procedure the first purchaser, filer, and payer is the same and is considered to be the person making the payments. The producer, recipient, or payee is the receiver of the payments. The transmitter is the organization preparing the tape file. Payers or transmitters who decide to file information returns on magnetic tape must complete Form 4419, Application for Magnetic Media Reporting of Information Returns. Instructions for completing the application appear on the reverse side of the form.

.02 The Service will act on an application and notify the applicant of authorization to file within 30 days of receipt of the application. No magnetic tape returns may be filed with the Service until authorization to file is received.

.03 The Service will assist new filers with their initial magnetic tape submission by reviewing test tapes in advance of the filing season. Approved payers or transmitters who wish to submit test tapes should contract the magnetic media coordinator at the Service Center where the application was filed. A list of the Service Center addresses is provided in Section 10.

.04 Once authorization to file on magnetic tape has been granted to a payer or transmitter, it will remain in effect in succeeding years, provided that all the requirements of this revenue procedure are met and there are no equipment changes by the filer. If a filer discontinues filing on magnetic tape, a new application must be filed before this method of filing may be resumed.

SEC. 3. FILING OF TAPE REPORT

.01 A magnetic tape reporting package, which includes all the necessary transmittals, labels, and instructions, will be mailed to all approved filers between October and December of each year.

.02 Payers may submit a portion of their information returns on magnetic tape and the remainder on paper forms provided there is no duplicate filing. The magnetic tape records and paper forms must be filed at the same location, but in separate shipments. A Form 6248-T, Summary and Transmittal of Windfall Profit Tax, must accompany paper submissions and a Form 4804, Transmittal of Information Returns Reported on Magnetic Media, must accompany magnetic tape submissions.

.03 The affidavit which appears on Forms 6248-T and Form 4804 must be signed by the payer. One of the following may, however, sign the affidavit on behalf of the payer if three conditions are met; the transmitter, service bureau, or disbursing agent. The conditions are that the Agent must:

a. have the authority to sign the affidavit under an agency agreement (either oral, written, or implied) that is valid under state law;

b. have the responsibility (either oral, written or implied) conferred on it by the payer to request the taxpayer identifying numbers of payees reported on magnetic tape or paper returns; and

c. sign the affidavit and add the caption "From: (name of payer)".

.04 Although a duly authorized agent signs the affidavit, the payer is held responsible for the accuracy of the Form 4804 and will be liable for penalties for failure to comply with filing requirements.

.05 The preceding requirements also apply to paper filers submitting Form 6248-T. The failure of duly authorized "agents" of paper filers to comply with filing requirements for Form 6248-T and attachments does not relieve the payers of any penalties that may arise as a result of such failure to comply.

.06 If a portion of the returns are submitted on paper documents, include a statement on the Form 6248-T that the remaining returns are being filed on magnetic tapes. Please note that Form 6248-T instructions normally apply to filing of information returns on paper; however, filers of magnetic tape must review the Form 6248-T instructions and file Form 6248-T if appropriate.

SEC. 4. FILING DATES

.01 Magnetic tape reporting to the Service for Forms 6248 is on a calendar year basis.

.02 The dates prescribed for filing paper returns with the Service will also apply to magnetic tape filing. Tapes must be submitted to the service center by April 30. Copies required to be furnished to the producer or other recipients must be furnished by March 31.

SEC. 5. EXTENSIONS OF TIME TO FILE

.01 If a payer or transmitter is unable to submit the tape file by the date prescribed in Section .02 above, a letter requesting an extension must be filed before April 30. The letter should be sent to the attention of the magnetic media coordinator at the service center which will receive the tape file. The request should include the estimated number of returns which will be filed late, the reason for the delay, and the date by which the returns will be filed.

.02 If an extension is granted by the Service, a copy of the letter granting the extension must be attached to the transmittal Form 4804 when the file is submitted.

SEC. 6. PROCESSING OF TAPE RETURNS

.01 The Service will process tax information from the tapes. Tapes which are timely received by the Service will be returned to the filer within six months of receipt.

.02 All tapes submitted must conform totally to this revenue procedure. If tapes are unprocessable, they will be returned to the filer for correction. Corrected tapes must be filed with the Service as soon as possible. Corrected files will be returned by the Service within six months of receipt.

SEC. 7. CORRECTED RETURNS, SUBSTITUTE FORMS AND COMPUTER-GENERATED FORMS

.01 If a large volume of corrected returns is necessary, and the payer or transmitter possesses the capability to provide such corrections on tape, they are encouraged to do so. The filer must contact the magnetic media coordinator for format and shipping instructions. A corrected Form 4804 must accompany the shipment and be marked "Magnetic Media Correction" on the upper portion of the form.

.02 If corrections are not submitted on tape, payers must submit them on official Forms 6248 (Copy A). Approved substitutes or computer-generated forms that are exact facsimiles of the official form (except for minor page size or print style deviations) may be submitted without obtaining prior Service approval, before the substitute or computer-generated form can be used. These restrictions are imposed because of the Service's requirement to report to Congress.

.03 Requests for approval of a computer-generated or substitute form should be sent to the following address with a copy of the proposed form:

Internal Revenue Service Attn: Substitute Forms Program Room 7033 TX:R:I 1111 Constitution Avenue N.W. Washington, D.C. 20224

.04 Form 6248 instructions are to be followed when paper returns are filed to corrected returns submitted on magnetic media. The caption "Magnetic Media Correction" must appear on the top right corner of the form. Corrections must be sent to the attention of the magnetic media coordinator where the original tape file was filed.

SEC. 8. TAXPAYER IDENTIFICATION NUMBERS

.01 Under Section 6109 of the Internal Revenue Code, recipients of income are required to furnish taxpayer identification numbers (TINs) to the payer whether or not the payee is required to file a tax return.

.02 Payers are expected to keep to a minimum those statements submitted without TINs. It is particularly important that correct social security and employer identification numbers for payees be provided on magnetic media or paper forms submitted to the Service.

.03 For each omission of a required TIN, Section 6676 of the Internal Revenue Code imposes a $5 penalty, unless the payer or payee responsible for furnishing the number establishes reasonable cause for not having done so.

.04 The TIN to be furnished depends primarily upon the manner in which the account is maintained or set up on the record of the payer. The number to be provided must be that of the owner of record. If the account is recorded in more than one name, furnish the TIN and name of one of the holders of the record. For those engaged in a trade or business (including employee trusts, retirement systems, etc.) the TIN is the employer identification number, EIN (without hyphens). For individuals, it is a social security number, SSN (without hyphens).

.05 Sole proprietors who are payers should show their employer identification numbers in the Filer/Transmitter "G" Record. However, the payer should use the social security number of a sole proprietor in the Producer/Recipient "H" Record.

.06 Any person required to file an information return that is based in whole or in part, upon information received from another person MUST include the taxpayer identifying number of that person on the return. The tables below will help determine the number to be furnished to the Service.

           Table 1. Guidelines for Social Security Numbers

.01 Magnetic tape reporting of the information listed in Section 1 above applies only to the original (Copy A).

.02 Payers are permitted considerable flexibility in designing the copy of the information return to be furnished to the payee. The payer may combine the information return data with other reports of financial or commercial notices, or expand them to include other information. This is permissable so long as all required information present on the official form is included and the payees' copies are conducive to proper reporting of income on tax returns. Payers must include the message "This information is being furnished on Form 6248 to the Internal Revenue Service" on the recipients' copies.

.03 If a portion of the returns are reported on magnetic tape and the remainder are reported on paper forms, those returns not submitted on magnetic tape must be filed on official Forms 6248.

SEC. 10. ADDITIONAL INFORMATION

Requests for additional copies of this revenue procedure or for additional information on tape reporting should be addressed to the attention of magnetic media coordinator of one of the following:

(a) Internal Revenue Service Andover Service Center Post Office Box 311 Andover, MA 01810 (b) Internal Revenue Service Brookhaven Service Center P.O. Box 486 Holtsville N.Y. 11742 (c) Internal Revenue Service Philadelphia Service Center Post Office Box 245 Bensalem, PA 19020 (d) Internal Revenue Service Atlanta Service Center Post Office Box 47421 Doraville, GA 30362 (e) Internal Revenue Service Memphis Service Center P.O. Box 1900 Memphis, TN 38101 (f) Internal Revenue Service Cincinnati Service Center Post Office Box 267 Covington, KY 41019 (g) Internal Revenue Service Kansas City Service Center 2306 E. Bannister Road Stop 43 Kansas City, MO 64131 (h) Internal Revenue Service Austin Service Center Post Office Box 934 Austin, TX 78767 (i) Internal Revenue Service Ogden Service Center Post Office Box 9941 Ogden, UT 84409 (j) Internal Revenue Service Fresno Service Center Post Office Box 12866 Fresno, CA 93779