Rev. Proc. 82-5

PART A. GENERAL

SECTION 1. PURPOSE

.01 The purpose of the revenue procedure is to state the requirements for reproducing paper substitutes of the following forms:

(a) Form 1099R, Statement for Recipients of Total Distribution from Profit-Sharing, Retirement Plans, and Individual Retirement Arrangements.

(b) Form 1099-DIV, Statement for Recipients of Dividends and Distributions.

(c) Form 1099-INT, Statement for Recipients of Interest Income.

(d) Form 1099-MISC, Statement for Recipients of Miscellaneous Income.

(e) Form 1099-MED, Statement for Recipients of Medical and Health Care Payments.

(f) Form 1099-OID, Statement for Recipients of Original Issue Discount.

(g) Form 1099-PATR, Statement for Recipients (Patrons) of Taxable Distributions Received From Cooperatives.

(h) Form 1099-L, U.S. Information Return for Distributions in Liquidation During Calendar Year.

(i) Form 1099-F, Statement for Certain Fishing Boat Crewmembers.

(j) Form 1099-BCD, Statement for Recipients of Interest on Bearer Certificates of Deposit.

(k) Form 1087-DIV, Statement for Recipients of Dividends and Distributions.

(l) Form 1087-INT, Statement for Recipients of Interest Income.

(m) Form 1087-MISC, Statement for Recipients of Miscellaneous Income.

(n) Form 1087-MED, Statement for Recipients of Medical and Health Care Payments.

(o) Form 1087-OID, Statement for Recipients of Original Issue Discount.

(p) Form W-2G, Statement for Certain Gambling Winnings.

(q) Form 1099-ASC, Statement for Recipients of Interest on All-Savers Certificates.

(r) Form 1099-UC, Statement for Recipients of Unemployment Compensation Payments.

(s) Form 1099-NEC, Statement for Recipients of Nonemployee Compensation.

(t) Form 1087-ASC, Statement for Recipients of Interest on All-Savers Certificates.

.02 For the purpose of this revenue procedure, a substitute form is one which does not totally conform to the specifications set forth. Payee copies are not to be considered substitute forms. Only Copy A data need be approved.

.03 This revenue procedure supersedes Rev. Proc. 79-17, 1979-1 C.B. 516. SEC. 2. NATURE OF CHANGES

.01 New return types, Forms 1099-ASC, 1087-ASC, 1099-NEC, and 1099-UC, have been added.

.02 Requirement for OMB Approval Numbers has been added.

.03 Instructions for payee copies have been clarified (i.e. what a taxpayer must provide to a payee).

.04 A new section has been added to detail which payee TIN should be reported.

.05 Specifications for each type of Form 1099, 1087, and W-2G have been standardized so that the requirements are the same for all (i.e., exceptions removed).

.06 Various Editorial Changes.

SEC. 3. APPLICATION FOR APPROVAL OF SUBSTITUTE FORMS 1099, 1087, AND W-2G, COPY A

.01 Paper substitutes for Forms 1099, 1087 and W-2G which totally conform to the specifications contained in this procedure may be privately printed without prior approval from the Internal Revenue Service.

.02 Proposed substitutes not conforming to these specifications, must be submitted by payers for consideration to:

Commissioner of Internal Revenue Attn: TX:R:I 1111 Constitution Ave., N.W. Washington, DC 20224

These requests should contain a copy of the proposed form, the need for the specific deviation(s), and the volume of information returns affected.

.03 Forms 1099, 1087, and W-2G are subject to annual review and possible change. Payers are cautioned, therefore, against overstocking supplies of the privately printed substitutes.

.04 Copies of the official forms for the reporting year may be obtained from most Internal Revenue offices. The Service provides only cut sheets (no carbon interleaves) of these forms.

.05 Only original or ribbon copies may be filed with the Internal Revenue Service. Carbon copies and reproduced copies are not acceptable.

SEC. 4. DEFINITIONS

.01 The term "taxpayer (recipient) identifying number" 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 payees, the term "taxpayer (recipient) identifying number" means employer identification number (EIN). The EIN consists of nine-digits separated by one hyphen as follows: 00-0000000.

.02 The terms Payee and Recipient are usually synonymous. The name of the appropriate payee (i.e. person or organization whose tax identifying number has been provided) must be shown as the first entry in the area on the form provided for the payee's name and address. No descriptive information or other individual's name are to precede the payee's name. ONLY one payee name should appear. If more are needed, place the responsible payee (person who will report the income for tax purposes) on the first line. Place other payees on succeeding lines.

.03 A Corrected and/or Amended return is one which corrects previously reported information.

SEC. 5. INSTRUCTIONS

.01 Recipient name, street address, city, state, and ZIP Code information must be on separate lines. It is preferred that the city, state, and ZIP Code be on the same line.

.02 The clear area to the right of the payee's name and address is available for the account designation number. This information is not required; however, special caution must be taken if an account designation number is being printed. This number must not appear in the "Recipients Identifying Number" box, the payment amount boxes, or in the box provided for the payee's name and address.

.03 The Service requests that payers type or machine print whenever possible, provide quality data entries on the forms (i.e. 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. Payers are not required, however, to acquire special equipment solely for the purpose of preparing these forms.

.04 On corrected returns, an "X" must be placed in the check box in the left 1/2 inch margin following the "format identifier number" (e.g., Form 1099-DIV, 91). The words CORRECTED RETURN must be typed in all caps in the top 1/4 inch, right-of center margin. All required data blocks 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.

SEC. 6. TAXPAYER IDENTIFICATION NUMBERS

.01 Under Section 6109 of the Internal Revenue Code, recipients of dividends, interest, or other payments are required to furnish taxpayer identification numbers (TINs) to the payer. The number must be furnished to the payer whether or not the payee is required to file a tax return or is covered by Social Security. Section 6109 also requires payers to request recipient TINs and furnish such on returns filed with the Service.

.02 The Service expects that payers will 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 provides that the Service charge a $5 penalty, unless the payer or payee responsible for furnishing the number supplies an explanation, upon request from the Service, that establishes reasonable cause for not having done so.

.04 The TIN to be furnished the Service 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. The number provided must be associated with the name of the holder provided in the first name line. The payee TIN is the recipient's Social Security Number of individuals (including those individuals operating a business as a sole proprietorship) or the recipient's Employer Identification Number of other entries.

.05 Sole proprietors who are payers should show their employer identification numbers as a Payer; however, the payer should use the social security number of a sole proprietor when a payee.

.06 The charts below will help you determine the number to be furnished to the Service.

           Chart 1. Guidelines for Social Security Numbers

.01 The Service encourages payers or nominees (hereafter collectively referred to as payers) with computer capability to file information returns on magnetic media instead of paper forms. All forms listed in Sec. 1.01, except Forms 1099-BCD, 1099F, and W-2G, may be filed on magnetic media. Specifications for filing information returns on tape, disk, or diskette are contained in revenue procedures, relating to Magnetic Tape Recording for Information Returns, Disk Pack Reporting for Information Returns, and Diskette Reporting for Information Returns. Copies of these procedures may be obtained from any Internal Revenue district office or service center. Payers or agents who want to file information returns on magnetic media must file an application, Form 4419, with the service center which normally receives the paper forms.

.02 Since many states accept information returns filed on magnetic media, savings may be obtained if similar media is used for filing with the Service and state tax agencies. For information regarding state magnetic media filing requirements, payers should contact the individual state tax authority.

PART B SUBSTITUTE FORM FORMAT REQUIREMENTS

SEC. 1. GENERAL

.01 The following specifications prescribe the format requirements of Forms 1099, 1087, and W-2G;--Copy A ONLY.

.02 Copies sent to Recipients need only (a) list all information needed to complete tax returns, (b) list all payee instructions provided for on the Official Internal Revenue Service formats, (c) meet local, state, etc. requirements, (d) contain the OMB number prescribed on the Official Service format, and (e) tell the payee(s) that the information is being furnished to the Service.

.03 A payer may file a substitute Form 1099, 1087, or W-2G with the Service (hereafter referred to as substitute Copy A). Substitute forms submitted to the Service 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.

.04 Color and Quality of Paper

1 Paper for Copy A must be white chemical wood bond, or equivalent, 40 pound (basis 17 x 22-1000), 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 (For Recipient) and C (For Payer) are provided in the official assembly solely for the convenience of the payer. Payers 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 non-gloss black ink. Bar codes should be free from picks and voids.

.06 Typography--Type must be substantially identical in size and shape with corresponding type on the official form. All rules on 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 32/3 inches deep, exclusive of a 1/2 inch snap stub on the left side of the form. The snap feature is not required on substitutes. If the substitute forms are in continuous or strip form, they must be burst and stripped to conform to the size specified for a single form before they are filed with the Service.

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, except the left margin and the "For Official Use Only" area, 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. The area marked "For Official Use Only" must be 3 inches.

2 The depth of a substitute Copy A must be a minimum of 31/3 inches and a maximum of 32/3 inches. If the depth is reduced from that of the official form, the margin area at the top of the form marked "Official Use Only" must be 1/2 inch in depth by three inches in width.

.08 Clear Area--The back of Copy A must be free of all printing.

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

.10 Printer's Symbol--The Government Printing Office symbol must not be printed on substitute Forms 1099, 1087, or W-2G. In place thereof, the printer's Employer Identification Number should appear in the same place on such substitute forms.

.11 Other Copies--Copy B and C are included in the official assembly for the convenience of the payer. Although there is no requirement that privately printed substitute forms include these copies, Copy B will satisfy the requirement of law and regulations concerning the statement of information which is required to be furnished the payee. Copy C may be desired as a payer record/copy.

SEC. 2. ADDITIONAL INSTRUCTIONS

.01 Arrangement of Assembly--Except as provided in paragraph .02 below, the parts of the assembly shall be arranged, from top to bottom, as follows: Copy A (Original), "For Internal Revenue Service Center", Copy B, "For Payee" (Form 1099-OID for Record Owner), Copy C, "For Payer's Record" (1087-OID for Record Owner).

.02 Additional Copies--Additional copies may be prepared by payers for states REQUIRING THE REPORT. When this is done, one such copy may be inserted between Copies A and B. Forms for delivery to state or local taxing authorities should be clearly labeled to indicate the purpose for which they are intended and should not bear the Internal Revenue Service form number or the designation, "Department of the Treasury, Internal Revenue Service".

.03 Reproductions Proofs--Order blanks for reproduction proofs are mailed annually to requestors of record, and to other users upon request. Printers and others wishing to obtain reproduction proofs may send their requests to:

Internal Revenue Service Attn: Distribution Manager RM:FM:P 1111 Constitution Avenue, N.W. 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. OMB REQUIREMENTS

.01 Office of Management and Budget (OMB) Requirements for Substitute Forms. Pub. L. 96-511 requires: (1) OMB approval of Internal Revenue Service tax forms, (2) that each form show (in the upper right corner) the OMB approval number and any expiration date, and (3) the form (or its instructions) state why the Service is collecting the information, how we will use it and whether it must be given to us. The official Service forms 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 use one of the following formats:

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

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

This Rev. Proc. supersedes Rev. Proc. 79-17.