Rev. Proc. 80-48

Section 1. Purpose

This Revenue procedure states the requirements of the Internal Revenue Service regarding the acceptance of computer-prepared tax forms (i.e., Forms 1040, 1040A, 1120, 940, 941, etc.) and computer- generated forms (and schedules) to be attached thereto.

Sec. 2. Definitions

.01 Definitions Used in This Procedure (Relating to Tax Forms).

1 Substitute Form. A tax form or related form that differs in any way from the official versions and is intended to replace the entire form printed and distributed by the Service. This term also covers those approved substitute formats and forms described in this revenue procedure. (A photocopy or a copy produced from an unchanged reproduction proof, supplied by the Service, is not a substitute form.)

2 Supporting Statement (Supplemental Schedule). A document filed as a part of a tax return that provides detailed information to support an entry for a line (or lines) on an official form. A supporting statement cannot take the place of an official form.

3 Computer-Prepared Form. A pre-printed form in which the taxpayer's name, address and tax entry information has been printed by a computer, computer-printer or other computer-type equipment, such as word-processing equipment.

4 Manually Prepared Form. A pre-printed form in which the taxpayer's name, address and tax entry information is entered by an individual using pen, pencil, typewriter or other nonautomated equipment.

5 Computer-Generated Tax Forms. A document that is entirely prepared by the use of a computer-printing device so that all the line numbers, line captions, and the tax amount data entries are in the same typeface. No graphics appear on the form.

6 Graphics. Those parts of the tax form that are not the tax amount entries or called-for information. Generally, these are line numbers, captions, instructions, rules and borders, special indicators, and rules or strokes created by type-setting, photo- graphics, photo-composition, etc.

7 Printed Form. A form produced using conventional printing processes, photocopying, or other similar processes.

8 Preprinted Pin-Fed Form. A form printed beforehand by conventional methods on paper with marginal perforations for use with automated and/or high-speed printing equipment.

Sec. 3. Summary of Contents

.01 MESSAGE TO TAX RETURN PREPARERS.

IF YOU PLAN TO CHANGE OR MODIFY ANY TAX FORMS, YOU MUST FOLLOW THESE INTERNAL REVENUE PROCEDURES. IN MOST CASES, YOU MUST GET OFFICIAL APPROVAL BEFORE USING SUBSTITUTE FORMS.

THE SERVICE IS CONTINUING A NATIONWIDE PROGRAM TO IDENTIFY AND CONTACT TAX RETURN PREPARERS USING UNAPPROVED FORMS.

.02 Additional information you may also need is contained in Rev. Proc. 80-47, page 782, this Bulletin. You can obtain this revenue procedure by (1) ordering it on the form included in Package X, Informational Copies of Federal Tax Forms, or (2) writing to: IRS Rev. Proc., P.O. Box 27322, Richmond, VA 23261. They are also obtainable at your local district office.

.03 THINGS YOU CAN DO TO INTERNAL REVENUE SERVICE PRINTED TAX FORMS TO MAKE THEM SUITABLE FOR COMPUTER PREPARATION.

1 You can PHOTOCOPY any federal tax form or schedule and use it instead of the official one.

2 You can REPRODUCE ANY CURRENT form (or schedule) cut sheets, snap-sets, and marginally-punched pin-fed forms, so long as you use an official Service version as the master copy. An official version is one supplied by the Service, such as those in the taxpayer's tax package, those in Package X, reproduction proofs (sold by the Service), and those printed in revenue procedures.

3 You can ADJUST the graphics on printed Forms 1040, 1040A, 1120, 940, 941, etc., to allow for computer-printed or word processor fill-in. Only the areas listed in revenue procedures may be changed without prior approval.

4 You can PRINT AND DUPLICATE the substitute "worksheet-type" versions of Schedules A and B (shown as exhibits) in Rev. Proc. 80-47 when you need a "worksheet-type" format. The Service will accept these substitute schedules instead of the official versions. These schedules serve different purposes. One allows the form to contain a state tax column. (The state tax information must not be visible on the copy filed with the Service.) The other allows the form to be used singly or as part of a snap-set.

.04 THINGS YOU CANNOT DO TO INTERNAL REVENUE SERVICE PRINTED TAX FORMS.

1 You cannot change any Internal Revenue Service form or use your own (non-approved) version, unless permitted by revenue procedures, without prior Service approval.

2 You cannot change any of the graphics on Forms 1040 and 1040A (except those specified in revenue procedures) without prior approval from the Service.

3 You cannot use your own version of Schedule A (Itemized Deductions) UNLESS YOU FIRST GET IT APPROVED. When using attachments to the official Schedule A, you must COMPLETELY FILL OUT ALL REFERENCED (NUMBERED OR LETTERED) LINES OF THE OFFICIAL SCHEDULE A, not just the total lines, but also the line items that make up the totals. In other words, you may not enter just the totals for the various deduction categories, i.e., "Medical," "Taxes," etc., and write "See Attached Schedule" across that part of the form. The Service wants only one Schedule A--either yours or an official version; yours needs prior approval from the Service.

4 You cannot use your own preprinted label on tax returns filed with the Service. The ONLY label permitted is the one provided the taxpayers in their tax packages. Otherwise, the taxpayer's name and address must be entered on the return in the spaces provided.

5 Other items are also not permitted. Please read the rest of this revenue procedure for details.

.05 THINGS YOU CAN DO TO FILE COMPUTER-PREPARED/GENERATED FORMS.

1 You can DUPLICATE the approved, computer-generated formats of Schedules A, B, C, D, E, F, G, R, RP, SE and TC (shown in the Exhibit Section of this revenue procedure) and use them without prior approval.

2 You can FILL IN official Internal Revenue Service supplied forms using computer or word-processing equipment. Internal Revenue Service forms are designed for a vertical spacing of six lines to the inch, with money amount columns wide enough to allow for the computer printing of ten characters.

3 You can CHANGE CERTAIN SPECIFIED AREAS on the Forms 1040 and 1040A (spelled out in the revenue procedures) to assist computer- printing requirements and to allow for a little more room on certain lines.

4 Other items are also permitted. Please read the rest of this revenue procedure for more details.

.06 THINGS YOU CANNOT DO TO INTERNAL REVENUE SERVICE FORMS.

1 You cannot use computer graphics on any Internal Revenue Service form without prior approval.

2 You cannot computer-generate the TAX FORMS THEMSELVES (i.e., forms requiring signatures; for example, Forms 1040, 1040A, 1120, 940, and 941). These forms must be preprinted using conventional printing processes, photocopying or similar reproduction processes. The forms may be filled in by a computer, by a word processor, or the like, but the forms themselves must be printed like the Service versions are. Forms designed using computer graphics may be submitted for approval.

3 You cannot use your own computer-generated version of any tax form that is to be attached to the tax return, unless permitted by revenue procedures, without prior Service approval.

4 Other items are also not allowed. Please read the rest of this revenue procedure for more details.

Sec. 4. Specifications for Filing Substitute Forms

.01 Computer-Prepared Tax Forms. For filing purposes the Service will accept computer-prepared tax forms (i.e., Forms 1040, 1040A, 1120, 940, 941, etc.) filled in by a computer or by word-processing equipment, but these forms MUST be pre-printed.

.02 Computer-Generated Forms. For filing purposes, the Service will accept computer-generated versions of forms that are attached to individual and business income tax returns, provided the substitutes and their manner of completion meet the guidelines prescribed herein.

.03 Combination of Manually Prepared and Computer- Prepared/Generated Forms. For filing purposes, the Service will accept substitute tax forms that contain a combination of computer- prepared/generated and manually filled in information.

Sec. 5. General Information

.01 Approvals.

1 Guidelines. Preparers who desire to file substitute computer- prepared forms and/or computer-generated forms must develop such substitutes using guidelines in revenue procedures. Substitutes other than those described here must be approved by the Service before being filed.

2 Changes to Tax Forms. Any person making changes to any tax form (EXCEPT THOSE ALLOWED BY REVENUE PROCEDURES) must obtain approval from the Service before filing the substitute.

3 Mailing Address. Proposed substitutes should be forwarded by letter to the Internal Revenue Service, Attention: Substitute Forms Program, TX:R:I, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

4 When to Submit. Proposed substitutes should be sent to the address in 3 above, as much in advance of the filing period for the form as possible. This is to allow adequate time for analysis and response and to permit notice to our field offices. Quarterly filed forms, such as the Form 941, must be submitted by the first day of the last month of the quarter.

5 Required Statement. When the sample substitute is submitted, there must also be an accompanying statement that lists the form number of each substitute requested and details those items that deviate from the official form in position, arrangement, appearance, line numbers, additions, deletions, etc. Included with each of the items must be a detailed reason or justification for the change and an approximation of the number of forms expected to be filed.

6 Approval Letter. Upon determination that approval can be given, the Service sends a formal letter of approval which also may contain qualifications for the substitute's use.

7 Duration of Approval. Approvals when granted are good for only one calendar year (January-December) or, in the case of corporation tax forms (with the exception noted below), for the remainder of the quarter of the calendar year.

PLEASE NOTE: Each new filing season requires a new approval, even if the official form does not change.

Exception: Forms in the 94X series (941, 942, etc.) are approved only for one quarter. Each new quarter requires a new approval from the Service.

8 Required Copies. Once an approval is granted for the use of a computer-prepared or computer-generated substitute form, you may be requested to send the Service eleven (11) copies of each approved form. When requested, the form(s) must be assembled in sets and submitted to the Service so that we can notify our Service Centers of the approvals we have given. A set constitutes a return with the related schedules and forms in order as they will be filed, i.e., Forms 1040, Schedules A, B, C, D, etc., Form 2440, 2442, etc. We reserve the right to reject sets which are not assembled in the order specified.

Sec. 6. Physical Aspects and Requirements

.01 Lined Paper. Computer-generated substitute forms must be submitted on quality, lined, machine paper. Lined, color-barred paper is also acceptable. Lined paper assists Service employees during processing of the returns by allowing speedy location of tax entries corresponding to line captions. The lines provide the basic means for eye-travel from one side of the form to the other.

.02 Margins. A one-half inch margin must be maintained across the top, bottom, and both sides (exclusive of any pin-feed holes) of all computer-generated substitutes. One-half inch margins allow for slight printing misalignment when forms are prepared on high-speed equipment. The margin area is also used by Service employees to make necessary entries on the form during processing.

.03 Page Size. Computer-prepared/generated substitutes may be the same size as the official (8" X 11", in most cases) or they may be the standard commercial size (81/2" X 11"). Computer-generated forms must be on the same size paper as the tax form to which it is attached.

.04 Prohibited Paper. Carbon-bonded paper is prohibited from use for forms filed with the Service.

.05 Chemical Transfer Paper--Limited Use.

Chemical transfer paper may be used ONLY when the following specifications are met:

1 Each ply within the chemical-transfer set of forms must be labeled.

2 Only the top ply (ply one), the one which contains chemical on the back only (coated back), may be filed with the Service. For example, a set containing three plies would be constructed as follows: Ply one (coated back), "Federal Return, File with IRS"; Ply two (coated front and back), "Taxpayer's copy"; and Ply three (coated front), "Preparer's copy."

Sec. 7. Conditions -- Tax Forms (1040A, 1040, 1120, 940, 941, Etc.)

.01 PROHIBITED FORMS.

1 COMPUTER-GENERATED VERSIONS. Computer-generated versions of a tax form which requires a signature are not permitted. Only preprinted substitutes of these forms are allowed.

2 COMPUTER-GENERATED GRAPHICS. Computer - generated graphics CANNOT be used on any form without prior approval.

.02 FILL - IN INFORMATION. The tax form itself (i.e., 1040, 1040A, 1120, 940, 941, etc.) may be filled in by a computer printer or other similar automated equipment, but the form itself must be created beforehand (i.e. preprinted) using conventional printing methods, photocopying or other similar reproduction processes.

.03 CHANGES PERMITTED TO THE FORMS 1040 & 1040A.

1 Certain changes (listed below) are permitted to the graphics of the form without prior approval, but these changes apply only to preprinted forms as described in .02 above.

2 Changes not requiring prior approval are good only for the filing period January through December 1981.

3 OTHER CHANGES NOT LISTED. All changes not listed here require prior approval from the Service BEFORE the form may be filed with the Service.

4 OTHER FORMS NOT LISTED. Other Internal Revenue Service forms, such as Forms W-2, 1087, 1099, and 1040-ES, are governed by different revenue procedures. These revenue procedures are available at your local district office.

Sec. 8. Agreement

Any person who uses substitute forms and makes all or part of the changes specified in this revenue procedure, agrees to the following stipulation: The Service presumes the changes are made in accordance with these procedures and, as such, will be noninterruptive to the processing of the tax return. Should any of the changes prove to be not exactly as described, and as a result become disruptive to the Service during processing of the tax return, the preparer agrees to accept the determination of the Service as to whether or not the form may continue to be used during the filing season, and also agrees to work with the Service in correcting noted deficiencies. Notification of deficiencies may be made by letter, phone call or both.

Sec. 9. Changes Permitted to the Graphics on Both Form 1040 and 1040A and, Where Applicable, on Other Forms as Well (for Use With Computer-Prepared Forms Only)

.01 Adjustments. You may make minor vertical and horizontal spacing adjustments to allow for computer or word-processing printing. This includes widening the amount columns or tax entry areas so long as the adjustments do not exceed other provisions stated in revenue procedures. No prior approval is needed for these changes. However, the user of forms with such changes are bound by the "Agreement" in Section 8.

.02 NAME AND ADDRESS AREA.

1 The horizontal rules and instructions within the name and address area may be removed and the entire area left blank; no line or instruction can remain in the area.

2 The heavy ruled border (when present) that outlines the name and address area must not be removed, relocated, expanded or contracted.

3 Required Format.

(a) When the name and address area is left blank, as provided in 1 above, the following format MUST be used when printing the taxpayer's name and address. Otherwise, unless the taxpayer's preprinted label is affixed over the information entered in this area, the lines must be filled-in as shown.

1st name line (35 characters maximum)

In-care-of name line (35 characters maximum)

Street address (35 characters maximum)

City, State (24 char. max.), one blank char., & zip (five char.)

(b) When there is no in-care-of name line, the name and address will consist of only three lines. Examples of the formats follow:

Example of name and address with No in-care-of name line:

     JOHN AND MARY JONES

(d) The ONLY label that may be used is the OFFICIAL INTERNAL REVENUE SERVICE LABEL SUPPLIED to the taxpayer in his/her tax package. Please use the official Internal Revenue Service supplied label to help reduce errors.

(e) For identification purposes, you may computer print the taxpayer's name and address on the form and afterward affix the OFFICIAL INTERNAL REVENUE SERVICE SUPPLIED LABEL over the computer printed address. This applies whether or not the horizontal rules and the instructions have been removed.

.03 SOCIAL SECURITY NUMBER (SSN) AND EMPLOYER IDENTIFICATION NUMBER (EIN) AREA.

1 The vertical lines separating the format arrangement of the SSN/EIN may be removed.

2 When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 and 00-0000000, respectively.

.04 CENSUS INFORMATION. When present, this area may be vertically compressed into two lines; one for captions and one line below for computer entries. The areas A-D (Forms 1040 and 1040A) must NOT be rearranged or relocated. You may remove the vertical dash- leader in section A that separates "State" and "City." Captions may be shortened to fit in the space but sufficient "key words" must be used to identify the items requested.

.05 CENTS COLUMNS.

1 You may remove the vertical rule that separates the dollars from the cents.

2 All entries in the amount column must have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present.

3 You may omit printing the cents, but all amounts entered on the form must follow a consistent format. YOU ARE STRONGLY URGED TO ROUND OFF THE FIGURES TO WHOLE DOLLAR AMOUNTS.

4 When printing money amounts, you must use one of the following ten-character formats:

(a) 0,000,000.

(b) 000,000.00

5 When there is no entry for a line, leave the line blank.

.06 PAID PREPARER'S INFORMATION AREA.

1 On all forms, where present, the paid preparer's information area may NOT be rearranged or relocated.

2 You may add one line to the preparer's address area.

Sec. 10. Changes Permitted to Form 1040A Graphics (for use with computer-printed forms only)

.01 LINE 4.

This line may be compressed vertically to one line (to allow for a larger entry area for the name of the qualifying unmarried child) by using the following line caption:

"Head of household; unmarried child's name. . . . . ."

.02 LINE 5d.

1 The vertical lines separating columns (1) through (5) may be removed.

2 The number of lines for listing "other dependents" may be expanded to a maximum of 5.

.03 LINE 9a (and 9b).

These lines may be changed to allow larger amount entry fields by removing references to instructions.

.04 LINE 11.

This line may be vertically compressed to one line by using the following line caption:

"Adjusted Gross Income."

.05 LINES 12a, 12b, 14a, 14b, and 17.

These lines may be vertically compressed to one line by removing references to instructions.

Sec. 11. Marginal Printing

You may print your logo, company or firm name, identifying and collation symbols, etc., in the top left margin of the form. The area you may use extends vertically from the top of the Form 1040A title designation to the top edge of the form and horizontally 3 1/2 inches from the left edge.

Sec. 12. Other Changes Prohibited

NO OTHER CHANGES TO THE FORM 1040A GRAPHICS ARE ALLOWED WITHOUT PRIOR APPROVAL.

Sec. 13. Changes Permitted to the Form 1040 Graphics (for Use With Computer-Prepared Forms Only)

.01 LINE 4. This line may be compressed horizontally (to allow for a larger entry area for the name of the qualifying unmarried child) by using the following line caption:

"Head of household; unmarried child's name."

.02 LINE 6d.

1 The vertical lines separating columns (1) through (5) may be removed. The captions may be shortened to allow a one-line caption for each column.

2 The number of lines for listing "other dependents" may be expanded to a maximum of 5 by compressing other noted areas listed here.

.03 LINES 10a and 10b. This line may be horizontally compressed to allow for larger entry fields for Dividends and Exclusions by the use of the following line caption (on one line): "10a Dividends . . . (15 char.) . . . 10b Exclusion . . . (15 char.)."

.04 LINE 11. This line may be vertically compressed to one line by using the following line caption:

"State and local income tax refunds."

.05 LINES 20a and b. These lines may be compressed horizonally and vertically to allow a larger entry field for "total received" and to make a two-line entry on one line by using the following caption:

"a. Total unempl. comp. rec'd (10 char.) b. Taxable amt."

.06 LINE 21.

1 This line may be expanded vertically to a maximum of 4 lines.

2 The amount entry box must remain a single entry and the cross- hatched shading must extend down the numbered line box by the same number of lines you add.

.07 LINE 31. This line may be vertically compressed to one line by removing references to instructions.

.08 LINE 35. You may change the line caption to read "Tax" and computer-print either the words "FROM TAX TABLES" or "FROM SCHEDULE TC."

.09 LINE 36. You may change the caption to read:

"Additional taxes from Form/Section" and computer-print only the form(s) or/and section number that apply.

Sec. 14. Other Changes Prohibited

NO OTHER CHANGES TO THE FORM 1040 GRAPHICS ARE PERMITTED WITHOUT PRIOR APPROVAL.

Sec. 15. Acceptable Formats -- Computer-Generated Forms and Schedules

.01 Exhibits of Acceptable Formats for Form 1040 Schedules.

1 Exhibits of acceptable computer-generated formats for the schedules usually attached to the Form 1040 are shown in the Exhibits section of this revenue procedure. The exhibits are for Schedules A, B, C, D, E, F, G, R, RP, SE, and TC.

Because a substitute form is a variation from the official form, you should know the requirements of the official form before you modify it to meet your needs. For the most frequently used tax forms, the quickest way to obtain an official form is to request reproduction proofs of these forms. Reproduction proofs can only be ordered by using Form M-5368, Order for Reproduction Proofs. Form M- 5368 can be obtained in two ways: (1) by written request to Internal Revenue Service, RM:FM:P, Room 1528, 1111 Constitution Ave., N.W., Washington, D.C. 20224, or (2) by telephone request (at your expense) to the Reproduction Proof Coordinator at (202) 566-2473.

2 Use of Acceptable Formats. If your computer-generated forms appear exactly like the exhibits, no prior authorization is needed.

3 CHANGES TO EXHIBITS NOT PERMITTED WITHOUT PRIOR APPROVAL. Any change to the text or format of any of the exhibits requires PRIOR WRITTEN APPROVAL.

Sec. 16. Computer - Generated Forms Not Shown as Exhibits in This Revenue Procedure

.01 Persons or companies desiring to change the computer- generated forms shown as exhibits MUST obtain prior approval before use.

.02 Those desiring to computer-generate forms not shown here may do so, but they must design such forms themselves by following the manner and style of those in the Exhibits section of this publication and by taking care to observe other requirements and conditions stated here.

.03 Computer-generated forms so designed DO NOT require prior approval from the Service. However, the user of such forms is bound by the "Agreement" in Sec. 8 above.

.04 If you wish, you may submit any substitute form to the Service for approval consideration.

Sec. 17. Instructions for Preparing Computer-Generated Substitutes

.01 Format Arrangement.

The format of each substitute schedule must follow the format of the official schedule as to item caption, line reference, line numbers, sequence, form arrangement and format, etc. Basically try to make the form look like the official one, with readability being a primary factor. Use periods and/or other special characters to separate the various parts and sections of the form. With the exceptions in .02 below, all line numbers and items must be printed even though an amount is not entered on the line.

.02 Exceptions.

1 Zero Entries. Detailed information for any deduction or income category may be omitted from the printout if the category total to be reported is zero. However, the substitute form must show the total (zero when applicable) for each category.

2 Lines Captioned "Other." It is not necessary to fill in every numbered or referenced line of forms when the line caption calls for "Other," e.g., "Other (itemize)," "Other (specify)," "Other (attach schedule)," etc. Examples of this exception are lines 6c, 15, 19, 21b and 31 for Schedule A (Form 1040). When this occurs, a supporting statement may be used and only the total amount of these "Other" items entered on the line of the official form. However, we prefer that the space on the official form be used when it is adequate.

3 Schedule A (Form 1040). All numbered and lettered lines must be filled in, if applicable. Supporting statements may be used to give the details of the totals entered on such lines but may not be used as a substitute for a collection of lines. For example, the detailed information for "Taxes" may not be shown on a supporting statement (supplemental schedule) and only line 16 filled in; but the details of "state and local income taxes" may be shown on a supporting statement and the total of such taxes entered on line 11. Also, lines 33 through 38 need not be shown, but the total of itemized deductions must be shown on line 39.

4 Schedule B (Form 1040). Lines 1 and 3 need not be filled in on the form. A supporting statement may be used for the details of interest and dividend income and the appropriate totals of such income entered on lines 2 and 4 unless nominee distribution or accrued interest criteria apply. (See the tax package instructions concerning interest.)

5 Schedule C (Form 1040). All lines on page 1 must be filled in when applicable except the line where "Other expenses (specify)" is listed. (See instruction 2 above.) All information for Schedule C-1 must be entered. Schedule C-2 information may be entered on a supporting statement so long as the method of depreciation used (if any) is entered on the form in column (e). Schedule C-3 information may be shown on a supporting statement and not entered on the form.

6 Schedule E (Form 1400).

(a) When there are entries on page 1 for any of the Parts I and IV, the following requirements and/or questions must be answered and tax information must be entered on the lines provided, in Part II, lines 5a through 6b, the question boxes must be answered; if the answer to question 6a is "yes," the amortizable basis must be entered on line 6b. Be sure there is a place on line 6b for the amount.

(b) Supporting statements may be used for the details of rental income and expenses and for royalty income. The appropriate totals must be carried to line 7, columns (b) through (g).

(c) The income and loss from various partnerships, estates or trusts, and small business corporations also may be detailed on a supporting statement, but the appropriate total income and total loss must be entered on lines 10 through 18 and also on line 19 when applicable.

(d) Page 2 need not be used so long as the information is provided on a supporting statement. The supporting statement must show the details required by the form.

7 Schedule F (Form 1040). Depending on which accounting method is used (cash or accrual), all of parts I and II or II and V must be printed in their entirety.

.03 Vertical Alignment of Amount Fields. Vertically align the amount entry fields where possible.

.04 Line Numbers.

1 When a line on an official form is designated by a number or a letter, that designation (reference code) must be used on a computer-generated substitute form.

2 The reference code must be printed to the left of the corresponding captioned line and also immediately preceding the data field even if there is no reference code immediately preceding the data field on the official form.

3 In addition, the reference code that is immediately before the data field must be either followed by a period or enclosed in parentheses. There also must be at least two blank spaces between the period or the right parenthesis and the first character of the data field. (See example in 4 below.)

4 A decimal point (i.e., a period) must be used for each money amount regardless of whether the amount is reported in dollars and cents or in whole dollars or whether or not the vertical line that separates the dollars from the cents is present. The decimal points must be vertically aligned when possible.

Example:

1 Please note that certain forms have a newly added "sequence number" located in the upper right hand corner of official forms. On computer-generated forms, place this sequence number following the year designation for the tax form and separate with an asterisk. (Example. 1980 * 08)

2 The affected forms and their respective sequence numbers follow:

Please note that some of the numbers have been changed since the 1979 tax forms.

 Form 1040                          Sequence

1 the section title/description must be printed

2 skip one blank line following the title/description

3 on the second print line print the following statement: SECTION/PART XX DOES NOT APPLY

4 skip one blank line, and

5 begin the next section.

Sec. 18. Additional Instructions for All Forms

.01 Internal control numbers and identifying symbols of the computer preparer may be shown on the substitute, if the use of such numbers or symbols is acceptable to the taxpayer and the taxpayer's representative. If shown, such information must not be printed in the top one-half inch clear area, from the center to the right edge, of any form or schedule requiring a signature.

With the exception of the actual tax return form (i.e., Forms 1040, 1120, 940, 941, etc.) you may also print in the left vertical and bottom left margins. The bottom left margin you may use extends 31/2 inches from the left edge of the form.

.02 Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one print line by using abbreviations and contractions and by omitting articles, prepositions, etc. However, sufficient key words must be retained to permit ready identification of the caption, line or item.

1 Explanatory details and/or intermediate calculations for derivation of final line totals, may be included on the substitute. We prefer that such calculations be submitted in the form of a supporting statement. If intermediate calculations are included on the substitute, the lines on which they appear may not be numbered or lettered. Intermediate calculations may not be printed in the right column. This column is reserved for official numbered and lettered lines that correspond to the ones on the official form. If a supporting statement is submitted, intermediate calculations or subtotals may be formatted at the preparer's option.

All supporting statements submitted must be referenced to the schedule entry which it supports, and the entry on the schedule, in turn, must be cross-referenced to the supporting statement. However, all total lines on supporting forms must have a total printed. This total must be carried forward from any supporting statements.

2 Text prescribed for the official form, which is solely instructional in nature, e.g., "Attach this schedule to Form 1040," "See instructions," etc., may be omitted from the substitute form.

3 Information for more than one schedule may not be shown on the same printout page without prior approval from the Service. Except for computer-generated Schedules A and B (Form 1040), any form may be continued on two or more pages if necessary. When a form is continued on two or more pages, clearly identify at the bottom of each page, including page 1, that it is continued, e.g., "page 1, Schedule C continued." It is strongly recommended that a substitute form not exceed the same number of pages used for the official form.

4 Identify all computer-prepared substitutes clearly; print the form designation one-half inch from the top margin and one and one- half inches from the left margin; print the title centered on the first line of print; and print the taxable year and, where applicable, the sequence number on the same line one-half to one inch from right margin. Include the taxpayer's name and SSN on all forms and attachments.

5 State tax information must not appear on the federal tax return which is filed with the Internal Revenue Service Center, except where amounts are claimed as a state tax deduction, e.g., line 11, Schedule A (Form 1040).

The state column may be present, but the state tax information must NOT be visible on the copy filed with the Service. When a form is designed with both federal and state columns, THE FEDERAL COLUMN MUST BE TO THE LEFT OF THE STATE COLUMN AND ADJACENT TO THE LINE CAPTION.

6 Use the preaddressed label supplied with the taxpayer's tax package on all computer-prepared substitute forms that will be filed with the Service. Use of the label avoids larger processing costs because it reduces the potential for error--the kind of error which can delay the receipt of refund and information needed by the taxpayer.

7 When filing substitute computer-prepared or computer-generated schedules, use the envelope enclosed with the taxpayer's tax package. This envelope is coded for sorting into several categories. Use of the coded envelope can help speed up the processing of the return and reduce processing costs. Use of the Service provided tax package envelope for other correspondence with the Service could delay the correspondence.

8 Attach all schedules in alphabetical order and forms in numerical order followed by supporting statements. The sequence of information on supporting statements must be the same order as the items appear on the form(s) to which it is referenced.

9 Additional information required or voluntarily submitted should be on the same size paper as the official form and attached to the return following the supporting statements.

10 Attach all payments (checks or money order, no cash) to the front of the tax return.

11 Reproductions must have a high standard of legibility, both as to original form and as to fill-in matter. The Service reserves the right to reject any computer-generated or computer-prepared substitutes or related forms that have poor legibility or that do not meet the specifications of this revenue procedure.

Sec. 19. Filing Substitute Forms With IRS

Follow the same instructions as for filing official forms. These instructions are in the taxpayer's tax package.

Sec. 20. Effect on Other Documents

This revenue procedure supersedes Rev. Proc. 79-58, 1979-2 C.B. 549.

Sec. 21. Exhibits Section

[Editor's note: Exhibits CG-A1 through CG-TC depict examples of preferred and acceptable formats for the substitute, computer generated IRS Forms discussed above. These illustrations are not suitable for electronic reproduction.]