REQUIREMENTS ARE SET FORTH FOR REPRODUCING PAPER SUBSTITUTES OF FORM 1042S, INCOME SUBJECT TO WITHHOLDING UNDER CHAPTER 3, IRC

Rev. Proc. 85-31

SECTION 1. PURPOSE

01 The purpose of this revenue procedure is to state the requirements for reproducing paper substitutes of Form 1042S, Income Subject to Withholding Under Chapter 3, Internal Revenue Code, Copy A only.

02 This revenue procedure supersedes Rev. Proc. 81-28, 1981-2 C.B. 549.

SEC. 2. PAPER SUBSTITUTES FOR FORM 1042S

01 Paper substitutes for Form 1042S that TOTALLY CONFORM to the specifications contained in this procedure may be privately printed without prior approval from the Internal Revenue Service. Proposed substitutes NOT CONFORMING to these specifications must be submitted by withholding agents for consideration to:

Commissioner of Internal Revenue Substitute Forms Program 1111 Constitution Ave., N.W. Washington, D.C. 20224 Attn: D:R:R:I

The request should be submitted by November 15 of the year prior to the year the form is to be used. This is to allow the Service adequate time to respond and the submitter adequate time to make any corrections. These requests should contain a copy of the proposed form, the need for the specific deviation(s), and the number of information returns to be printed.

02 Form 1042S is subject to annual review and possible change. Withholding agents and form suppliers are cautioned against overstocking supplies of the privately printed substitutes.

03 Copies of the official form for the reporting year may be obtained from most Service offices. The Service provides only cut sheets (no carbon interleaves) of these forms. Continuous fan-fold/ pin-fed forms are not provided.

SEC. 3. INSTRUCTIONS FOR WITHHOLDING AGENTS

01 Only original copies may be filed with the Service. Carbon copies and reproductions are not acceptable.

02 The term "Recipient's U.S. tax identifying no." for an individual means the social security number (SSN). The SSN consists of nine digits separated by hyphens as follows: 000-00-0000. For all other receipients, the term means employer identification number (EIN). The EIN consists of nine digits separated by one hyphen as follows: 00-0000000. The tax identifying number must be one of these formats.

03 Withholdign agents are requested to type or machine print whenever possible, provide quality data entries on the forms (that is, use black ribbon, insert data in the middle of blocks well separated from other printing and guidelines), and take other measures to guarantee a clear sharp image. Withholding agents are not required, however, to acquire special equipment solely for the purpose of preparing these forms.

04 On corrected returns, the words CORRECTED RETURN must be typed in all capital letters in the top 1/4 inch, right of center margin. All required information must be completed on a corrected return since it replaces and supersedes the information return previously filed.

05 Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single form before they are filed with the Service. The dimensions are found in Part B, Section 1.07 below.

06 Computer cards are acceptable, provided they meet all requirements regarding layout, content, and size.

PART B. SUBSTITUTE FORMS FORMAT REQUIREMENTS

SECTION 1. GENERAL

01 Privately placed substitute Forms 1042S must be EXACT REPLICAS of the official forms with respect to layout and contents. Only the dimensions of the substitute form may differ and the printing of the Government Printing Office symbol must be deleted. The exact dimensions are found in Section 1.07 below.

02 Line 1 must be present, lines 2 and/or 3 may be omitted if they are not needed. If both lines 2 and 3 are omitted, also omit line 4.

03 None of the boxes can be omitted. Each box (a through h) must be present and in the exact order. The box for each payment amount must contain the appropriate caption.

04 COLOR AND QUALITY OF PAPER

1 Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22-500), plus or minus 5 percent. No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached chemical woodpulp and be free from unbleached or ground woodpulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

2 Copies B and C (For Recipient) and D (For Withholding Agent) are provided in the official assembly solely for the convenience of the withholding agent. Withholding agents may choose the format, design, color and quality of the paper used for these copies.

05 Color and Quality of Ink -- All printing must be in a high quality nongloss black ink. Bar codes should be free from picks and voids.

06 Typography -- Type must be substantially identical in size and shape to corresponding type on the official form. All rules in the document are either 1 point (0.015 inch) or 3 point (0.045). Vertical rules must be parallel to the left edge of the document; horizontal rules, parallel to the top edge.

07 Dimensions -- The official form is 8 inches wide x 3 2/3 inches deep, exclusive of 1/2 inch snap stub on the left side of the form. The snap feature is not required on substitutes.

1 The width of a substitute Copy A must be a minimum of 7 inches and a maximum of 8 inches, although adherence to the size of the official form is preferred. If the width of the substitute Copy A is reduced from that of the official form, the width of each field on the substitute form must be reduced proportionately. The left margin must be 1/2 inch and free of all printing other than that shown on the official form.

2 The depth of a substitute Copy A must be a minimum of 3 1/3 inches and a maximum of 3 2/3 inches.

08 Carbonized forms or "spot carbons" are not permissible. Interleaved carbons, if used, must be of good quality to preclude smudging and should be black.

09 Other Copies -- Copies B and C are required to be furnished to the payee. Copy C is to be furnished for the convenience of payees who are required to send a copy of the form with other Federal returns they file. Copy D may be desired as a withholding agent's record/copy.

SEC. 2. ADDITIONAL INSTRUCTIONS

01 Arrangement of Assembly -- If all four parts are present, the parts of the assembly shall be arranged from top to bottom as follows: Copy A (Original), "For Internal Revenue Service," Copies B and C, "For Recipient," and Copy D, "For Withholding Agent's Record."

02 Reproduction Proofs -- Order blanks for reproduction proofs are mailed annually to requesters of record and to other users upon request. Printers and others wishing to obtain reproduction proofs may send their request to:

Internal Revenue Service Attn: Distribution Manager PM:S:FM:P 1111 Constitution Avenue, N.W., Room 1528 Washington, D.C. 20224

A charge of $1.00 per page will be made for each reproduction proof regardless of page size. Invoices will be made after orders are filled.

SEC. 3. OFFICE OF MANAGEMENT AND BUDGET (OMB) REQUIREMENTS FOR SUBSTITUTE FORMS

Public Law 96-511 requires: (1) OMB approval of Internal Revenue Service tax forms, (2) each form to show the OMB approval number and, when appropriate, the form's expiration date, and (3) that the form (or its instructions) state why the Service is collecting the information, how it will be used and whether it is mandatory. The official Service form or instructions will contain this information.

As it applies to substitute Service forms this means:

1. All substitute forms must show the OMB number and any expiration date as they appear on the official Service form.

2. The OMB number (and date) must be in one of the following formats:

a. OMB No. XXXX-XXXX (preferred) or OMB No. #XXXX-XXXX

b. OMB No. #XXXX-XXXX Expires XXXXXX (mmddyy) (preferred) or OMB #XXXX-XXXX Expires XXXXXX (mmddyy)

3. You must inform the users of your substitute forms of the reasons for Service collection, use and requirement, as stated in the instruction for the Service form.

4. The official OMB approval numbers (and expiration date) may be obtained from reproduction proofs, official Service printed forms, or when approval is requested for a substitute form.

SEC. 4. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 81-28 is superseded.