Rev. Proc. 83-63

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to state the requirements of the Internal Revenue Service (IRS) and the Social Security Administration (SSA) relating to substitutes for Form W-2c, Statement of Corrected Income and Tax Amounts, and Form W-3c, Transmittal of Corrected Income and Tax Statements.

.02 The IRS provides a six part Form W-2c and a two part Form W3c.

SEC. 2. FILING FORMS W-2C AND W-3C DATA ON MAGNETIC MEDIA

.01 Employers and payers (hereafter and where applicable collectively referred to aspayors) with computer capability and a high volume of records to be corrected are encouraged to use magnetic media for filing Forms W-2c (Copy A) with the SSA. Requests for the specifications and other information concerning magnetic media filing should be directed to the Regional SSA Magnetic Media Coordinator. Magnetic media users can design their own statements to give to employees, pensioners, annuitants, recipients of retired pay and IRA (Individual Retirement Account) payments, and recipients of disability income (hereafter and where applicable collectively referred to as payees). Statements designed bypayors must comply with the requirements of Section 5 below.

.02 All magnetic media reports of Form W-2c information must be identified with an external label, Form 6558, or a reasonable facsimile, clearly marked "W-2c". Each report must also be accompanied by Form 6559, Transmitter Report of Magnetic Media Filing, and either Form 6560, Employer Summary of Form W-2 Magnetic Media Wage Information or Form 6561, Payer Summary of Form W-2P Magnetic Media Pension Information. SSA will provide these forms to all approved magnetic media filers.

SEC. 3. GENERAL RULES FOR FILING FORMS W-2C AND W-3C

.01 Payers not using magnetic media must file Copy A of Form W-2c with SSA on either an official form or a privately printed substitute paper form meeting the specifications shown below.

.02 Form W-3c must be used to transmit Forms W-2c to SSA except in the two situations noted in the instructions on the back of Copy D of the official Form W-2c.

SEC. 4. PAPER SUBSTITUTES FOR FORMS W-2C AND W-3C

.01 Paper substitutes conforming to the specifications contained in this document may be privately printed without the prior approval of the IRS. Proposed substitutes not conforming totally to these specifications must be submitted by letter for consideration to the Commissioner of the IRS, Attention D:R:R:I, 1111 Constitution Ave., N.W., Washington, D.C. 20224. These requests should contain an explanation of the specific need for the deviations and the number of Forms W-2c and W-3c to be printed.

.02 Forms W-2c and W-3c are subject to periodic review and possible change. Payers are cautioned against overstocking supplies of privately printed substitutes.

.03 Copies of the official forms can be obtained from IRS offices.

.04 The design of substitute Forms W-2c and W-3c transmitted to SSA should generally contain only data provided to payees and as well as the summary data as requested by the Form W-3 instructions.

SEC. 5. REQUIREMENTS FOR SUBSTITUTE FORMS W-2C FURNISHED TO PAYEES

.01 Allpayors, including those that file Copy A on magnetic media, must furnish payees with at least two statements.

.02 The paper for all copies should be white and printed in high quality black ink.

.03 Chemical transfer paper is permitted as long as all copies are clearly legible and can be photocopied. NCR paper is also acceptable.

.04 The type must be substantially identical in size and shape with the corresponding type on the official form.

.05 Substitute forms for payee need contain only the payment boxes and captions that are applicable. Other boxes contained on the official form may be omitted, except that in all cases the payee name, address and social security number must be present. Payment boxes and captions must be clearly identified using the same wording as on the official form.

.06 Substitute forms for payees (Copies B, C, and 2 of Form W-2c) must contain the form title. If the substitute forms are not labeled as to the disposition of the copies, then written notification must be provided to each payee as specified below:

(a) The first copy is to be filed with the employee's Federal Tax Return.

(b) The second copy of the form is for the employee's records.

(c) If applicable, the third copy of the form may be filed with the employee's State, City, or Local Income Tax Return. If the substitute forms are labeled, then the form must contain the applicable description as stated on the official form.

.07 Instructions similar to those contained on the back of Copy C of the official form should be provided to each employee.

SEC. 6. REQUIREMENTS FOR SUBSTITUTE "PRIVATELY PRINTED" FORMS W-2C (COPY A) AND FORMS W-3C THAT PAYERS SUBMIT TO SSA

.01 Payers may file privately printed substitute Forms W-2c and W-3c with SSA. The substitute form must be an exact replica of the official repro-proof with respect to layout and content. The dimensions of a substitute form may differ as far as width. The printing of the Government Printing Office (GPO) symbol must be deleted.

.02 Color and Quality of Paper. Paper for Copy A must be white chemical wood bond, or equivalent, 40 pound (basis 17 x 22- 1000), plus or minus 5 per cent. No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached or ground wood pulp or recycled printed paper. It also must be suitably sized to accept ink without feathering.

.03 Typography-Type must be substantially identical in size and shape with corresponding type on the official form.

1. On Copy A of Form W-3c and for Form W-3c, all the perimeter rules must be I-point (0.014 inch), while all other rules must be one-half point (0.007 inch).

2. Vertical rules must be parallel to the left edge of the document; horizontal rules parallel to the top edge.

.04 Dimensions-two official Forms W-2c, or one official Form W-3c are contained on a single page that is 7 inches wide (exclusive of any snap-stubs) by II inches deep. The width of a substitute must be a minimum of 7 inches and a maximum of 8 inches; the depth may be a minimum of 11 inches and a maximum of 12 inches. Form W-2c must be the same width as the Forms W-2c filed, but adherence to the size of official forms is preferred. Copy A should not be perforated on Form W-2c.

.05 The words, "For Paperwork Reduction Act Notice, see back of Copy D," must be printed on Copy A in the same location as on the official Form W-2c.

.06 The back of a substitute Copy A of Form W-2c must be free of all printing.

.07 The Paper Work Reduction Act Notice must be printed on Form W-3c in the same location as on the official forms.

.08 The words, "Please return Form W-3c to the Social Security Administration address for your State as listed below," as well as the list of SSA addresses must be printed on all Forms W-3c in the same format and location as on the official form.

.09 Printer's symbol-The GPO symbol must not be placed on substitute Copy A of Form W-2c. In place of the GPO symbol, the Employer Identification Number (EIN) of the forms printer must be printed in the bottom margin on the face of each individual sheet of Copy A. In addition, the EIN of the forms printer must be printed on the face of the Form W-3c filed with SSA.

SEC. 7. ADDITIONAL INSTRUCTIONS

.01 Instructions similar to those provided as part of the official Form W-3c must be part of any substitute Form W-3c.

.02 Arrangement of assembly -Except as provided below, the substitute copies of Form W-2c should be arranged in the same order as the official form: Copy A first, followed sequentially by perforated sets (Copies 1, B, C, 2, and D). The substitute form to be filed with SSA by the payor must carry the designation Copy A.

.03 The substitute Copy B, which the payee is instructed to attach to the Federal Income Tax Return, must be at least 24-pound paper (basis 17x221000), while the other copies furnished to the payee should be at least 18-pound paper (basis 17x22-1000).

.04 Additional Copies may be prepared. The additional copies shall not be placed ahead of the Copy C, "For Employee's records."

.05 Copy D for employer orpayor is not required for privately printed substitute forms. However, payers must be prepared to verify or duplicate this information if it is requested by the IRS or SSA.

1 If Copy D is provided for the employer or payer, instructions contained on the back of Copy D of the official form must appear on the back of the substitute form Copy D.

2 If Copy D is not provided for the employer or payer, instructions contained on the back of Copy D of the official form must be furnished on a separate statement to the employer or payer.

.06 The copy of the substitute Form W-2c which contains the instructions and is to be retained by the employer should be at least 18-pound paper (basis 17x22-1000).

SEC. 8. INSTRUCTIONS FOR PAYERS

.01 Only originals or ribbon copies, of Copy A of Forms W-2c and W-3c may be filed. Carbon copies and photocopies are not acceptable.

.02 IRS requests the cooperation of the payers in typing or machine printing whenever possible and in providing good quality data entries on the forms. This can be accomplished by using black ribbon, inserting data in the middle of blocks, and taking any other measures that will guarantee clear, sharp images. However, payers are not required to acquire equipment solely for the purpose of preparing these forms.

.03 The Employer Identification Number (EIN) may be entered anywhere in Box 10 along with the payor's name and address on Copy A of Form W-2c. (If this is done, the EIN need not be entered in Box 7). For Form W-3c, the EIN must be entered in box 2 as prescribed in the instructions.

.04 The payer's name, address and EIN may be preprinted.

.05 State and Local Employers

1. In addition to the EIN assigned by IRS, State and local employers covered under section 218 of the Social Security Act are assigned a nine digit identification number beginning with "69" by SSA. This number may be entered in the box provided for the employer name and address on the Form W-2c. When this is done, the "69" number does not have to be entered in Box 6. The "69" number may be preprinted. On the Form W-3c, both the EIN and the "69" number must be entered where prescribed by the Form W-3c.

2. State and local employers covered under section 218 must use a 4 part Form W-3c provided by SSA. This form can be obtained by contacting the State Social Security Administrator in each State.

.06 The optional employer's state number may be preprinted in the employer's name, address, and zip code box. If this is done, Box 8 of Form W-2c need not be completed, so long as the applicable state taxing authority does not object.

SEC. 9. OMB REQUIREMENTS

Office of Management and Budget (OMB) Requirements for Substitute Forms

Public Law 96-511 requires: (1) OMB approval of IRS tax forms, (2) that each form (all copies) snow the OMB approval number and, when appropriate, the form's expiration date, (3) the form (or its instructions) state why IRS is collecting the information, how we will use it and whether it must be given to us. The official IRS forms will contain this information.

As it applies to substitute IRS forms this means:

1. All substitute forms (all copies) must show the OMB number and any expiration date as they appear on the official IRS form (see Exhibits A, B, C, and D).

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

     a. OMB No. XXXX-XXXX

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

SEC. 10. REPRODUCTION PROOFS

.01 Order blanks for reproduction proofs are mailed annually to requestors of record, and on request to other users. Printers and others wishing to obtain reproduction proofs may send their requests to: Internal Revenue Service Attn: Distribution Manager PM:S:FM:P-Room 1528 1111 Constitution Avenue, N. W. Washington, DC 20224

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