IRS PUBLISHES REQUIREMENTS FOR SUBSTITUTE FORMS W-2c AND W-3c.

Rev. Proc. 95-18

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 W- 3c. Do not use Form W-2c to allocate backpay wages under statute. Obtain IRS Publication No. 957 for details.

SECTION 2. NATURE OF CHANGES

.01 The text and exhibits have been updated throughout the publication.

.02 A change in the IRS address to request Publication 1192, Catalog of Reproducible Forms, Instructions, and Publications, which has order blanks for obtaining reproduction proofs. See Section 11.1 below, for the new address.

.03 Form W-3c is not used to transmit Form W-2c that correct only names and social security numbers.

.04 Form 6560, Employer Summary of Form W-2 Magnetic Media Wage Information, and Form 6561, Payer Summary of Form W-2P Magnetic Media Pension Information, are obsolete. They have been replaced by Form 6559, Transmitter Report and Summary of Magnetic Media Filing and Form 6559A, Continuation Sheet for Form 6559.

.05 Reference to the terms "payer" and "payee" have been changed to employer and employee respectively. "Payer" and "payee" are carryover terms used when this publication contained the instructions to correct Form W-2P.

.06 The catalog number, shown on the 1994 Form W-2 as "Cat. 61437D", is used for IRS distribution purposes and should not be printed on substitute Forms W-3c or W-2c (Copy A or employee copies).

.07 All employers must file Forms W-2c and W-3c with the Social Security Administration (SSA), Data Operations Center, Wilkes-Barre, PA 18769. Household employers filing Forms W-2c for household employees should send the forms to the SAME ADDRESS SHOWN ABOVE." The SSA addresses must be printed on Forms W-3c (see Exhibit B), whether Forms W-3c are 7 inches wide, 7-1/2 inches wide, or 8 inches wide.

NOTE: BEGINNING WITH THE 1994 TAX YEAR, ALL FORMS W-2c AND W-3c (INCLUDING FORMS FOR HOUSEHOLD EMPLOYEES) SHOULD BE SENT TO SSA'S WILKES-BARRE DATA OPERATIONS CENTER.

.08 The optional employer's state number may be pre-printed in the employer's name, address, and zip code box. If this is done, the Employer's state I.D. Number section in box g of Form W-2c need not be completed, as long as the applicable state taxing authority does not object. PLEASE CHECK WITH THE APPROPRIATE STATE TAXING AUTHORITY BEFORE DOING THIS.

.09 Sec. 8.05.1 and .2 have been deleted.

.10 Sec. 8.06 has been deleted.

.11 The printer of Forms W-2c and W-3c is required to print its Employer Identification Number (EIN) to the left of the designation "Department of Treasury" on each type form.

.12 A listing of Social Security Administration Magnetic Media Coordinators is included.

.13 Various editorial changes were made.

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

.01 Employers 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 (See Appendix for list). Magnetic media users can design their own statements to give to employees.

.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 and Summary of Magnetic Media Filing, and if needed Form 6559A, Continuation Sheet for Form 6559. SSA will provide these forms to all approved magnetic media filers.

SECTION 4. GENERAL RULES FOR FILING FORMS W-2C AND W-3C

.01 Employers 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 for Forms W-2c that correct only Employee names or social security numbers.

SECTION 5. 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. SUBSTITUTE FORMS THAT DO NOT CONFORM TOTALLY TO THESE SPECIFICATIONS ARE NOT ACCEPTABLE. This applies to both paper substitutes that are filed with SSA and those that are given to employees. FORMS SHOULD NOT BE SUBMITTED TO IRS OR SSA FOR SPECIFIC APPROVAL. However, if you are uncertain of any specification set forth herein and want that specification clarified, you may submit a letter citing the specification in question, your interpretation of that specification, and an example of how the form would appear if produced using your understanding of the specification to:

     Internal Revenue Service

.03 Copies of the official forms can be obtained from most IRS offices or by calling 1-800-829-3676.

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

SECTION 6. REQUIREMENTS FOR SUBSTITUTE FORMS W-2C FURNISHED TO EMPLOYEES (COPIES B, C, AND 2 OF FORMS W-2C)

.01 All employers including those that file Copy A data on magnetic media, must furnish employees with at least two copies of Form W-2c (three or more for employees required to file a state, city, or local income tax return).

.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 employees 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 employee 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 employees (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 employee as specified below:

(a) The first copy of the Form (Copy B) is filed with the employee's Federal Tax Return.

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

(c) If applicable, the third copy (Copy 2) of the form is 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 must be provided to each employee.

SECTION 7. REQUIREMENTS FOR SUBSTITUTE "PRIVATELY PRINTED" FORMS W-2c (COPY A) AND FORMS W-3C THAT PAYERS SUBMIT TO SSA

.01 Employers may file privately printed substitute Forms W-2c and W-3c with SSA. The substitute form must be an exact replica of the IRS printed Form (or official reproduction 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. The paper for all copies should be white. The substitute Copy B that employees are instructed to attach to their Federal income tax return, must be at least 12 pound paper (basis 17 x 22-500), while the other copies furnished the payee should be at least 9-pound paper (basis 17 x 22-500).

.03 Interleaved carbon and chemical transfer paper for payee copies must meet the following standards:

1. All copies must be CLEARLY LEGIBLE;

2. All copies must have the capability to be photocopied; and

3. Fading must not be of such a degree as to preclude legibility and the ability to photocopy.

In general, black chemical transfer inks are preferred; other colors are permitted only if the above standards are met. "Spot carbons: are NOT permitted.

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

1. On Copy A of Form W-2c and Form W-3c, all the perimeter rules must be 1-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.

.05 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 snapstubs) by 11 inches deep (see Exhibits A and B). The width of a substitute must be 7 inches, 7.5 inches, or 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 Form W-3c filed, but adherence to the size of the official forms is preferred. Copy A should not be perforated on Form W-2c.

.06 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 (see Exhibit A for Format and location).

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

.08 The Paperwork Reduction Act Notice must be printed on Form W-3c in the same location as on the official form (see Exhibit B for format and location).

.09 All employers must file Forms W-2c with the Social Security Administration, Data Operations Center, Wilkes-Barre, PA 18769. Household employers filing Forms W-2c for household employees should send the forms to the same address shown above. The SSA address must be printed on Forms W-3c (see Exhibit C), whether Forms W-3c are 7 inches wide, 7 1/2 inches wide, or 8 inches wide.

NOTE: BEGINNING WITH 1994 TAX YEAR, ALL FORMS W-2c AND W-3c (INCLUDING FORMS FOR HOUSEHOLD EMPLOYEES) SHOULD BE SENT TO SSA'S WILKES-BARRE DATA OPERATIONS CENTER.

.10 Printer's symbol -- the GPO symbol must not be placed on substitute Copy A of Form W-2c. In place of the GPO symbol, Copy A of Form W-2c and Form W-3c must have the form producers Employer Identification Number (EIN), entered to the left of "Department of Treasury".

.11 The catalog number shown on Form W-2c, revised 10-94 as "Cat. No. 61437D", is used for IRS distribution purposes and should not be printed on substitute Forms W-3c or W-2c (Copy A or employee copies).

SECTION 8. 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 employer must carry the designation "Copy A".

.03 The substitute Form W-2c, Copy B, which the employee is instructed to attach to their Federal Income Tax Return, must be at least 9-pound paper (basis 17x22-500), while the other copies furnished to the payee should be at least 9-pound paper (basis 17x22- 500).

.04 Except as provided in the arrangement of the official assemblies, additional copies that may be prepared by payers shall not be placed ahead of the copy "For EMPLOYEE'S RECORDS," Form W-2c (Copy C).

.05 It is not a requirement that privately printed substitute forms contain a copy to be retained by employers (Copy D). However, employers must be prepared to verify or duplicate this information if it is requested by the IRS or SSA. Paper filers that do not keep Copy D should be able to generate a facsimile of Copy A in case of loss.

1. If Copy D is provided for the employer, 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, instructions contained on the back of Copy D of the official form must be furnished on a separate statement to the employer.

.06 The copy of the substitute Form W-3c which contains the instructions and is to be retained by the employer should be at least 18-pound paper (basis 17x22-500).

SECTION 9. INSTRUCTIONS FOR EMPLOYERS

.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 Employers should type or machine print entries on forms whenever possible and provide good quality data entries by using a high quality type face, inserting data in the middle of blocks that are well separated from other printing and guidelines, and taking any other measures that will guarantee clear, sharp images. The employer must provide Copy A to the Social Security Administration. The employer must also provide employee copies (Copies B, C, and 2) that are legible and capable of being photocopied (by the employee).

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

.04 The employers name, address and EIN may be preprinted.

.05 State and Local Employers. 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. When such State and local employers are submitting corrections for tax years prior to 1987, they must also enter their "69" number in box "e" of the W-2c and box "h" of the W- 3c.

.06 The optional employer's state number may be pre-printed in the employers name, address, and zip code box. If this is done, the Employers state I.D. number section in box "g" of Form W-2c need not be completed, as long as the applicable state taxing authority does not object. PLEASE CHECK WITH THE APPROPRIATE STATE TAXING AUTHORITY BEFORE DOING THIS.

SECTION 10. OMB REQUIREMENTS

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

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

.02 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 must be in one of the following formats:

     a. OMB No. XXXX-XXXX

SECTION 11. REPRODUCTION PROOFS

.01 Order blanks for reproduction proofs (repro-proofs) are mailed annually to requestors of record, and on request to other users. Printers and others wishing to obtain reproduction proofs should call the toll-free number for ordering IRS forms and publications (1-800-829-3676) and ask for Publication 1192, Catalog of Reproducible Forms, Instructions, and Publications, which has order blanks for obtaining reproduction proofs. Written requests for Publication 1192 may be sent to:

     Internal Revenue Service

.03 List of Social Security Administrations Magnetic Media Coordinators is included in the Appendix.

SECTION 12. EFFECT ON OTHER REVENUE PROCEDURES

.01 Rev. Proc. 83-63, 1983-2 C.B. 581 (Reprinted as Publication 1223 Revised 8-83), is superseded.

APPENDIX: TELEPHONE NUMBERS FOR THE SOCIAL SECURITY ADMINISTRATIONS REGIONAL MAGNETIC MEDIA COORDINATORS

Social Security personnel at these telephone numbers can help callers with questions about how to submit W-2's or W-2c's on MAGNETIC MEDIA. These are not toll-free telephone numbers.

Employers, payroll services, or an "agent" filing W-2s for employers may telephone the IRS Martinsburg Computing Center at (304) 263-8700 with employment tax questions.

 Calls from:              Telephone:

EXHIBIT B -- FORM W-3C

[Exhibits omitted]

EXHIBIT C

INSTRUCTIONS

PAPERWORK REDUCTION ACT NOTICE. -- We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is 20 minutes. If you have comments concerning the accuracy of this time estimate or suggestions for making this form simpler, we would be happy to hear from you. You can write to both the Internal Revenue Service, Attention: Tax Forms Committee, PC:FP, Washington, DC 20224; and the Office of Management and Budget, Paperwork Reduction Project (1545-0008), Washington, DC 20503. DO NOT send the tax form to either of these offices. Instead, see WHERE TO FILE on this page.

PURPOSE OF FORM. -- Form W-3c is used to accompany Copy A of Form W-2c sent to the Social Security Administration (SSA). Form W-3c can be filed separately to correct a previously filed Form W-3. Form W-3c is required to be filed with a single Form W-2c as well as with multiple Forms W-2c. However, if you are only correcting the employees' names, addresses, or social security numbers you do not have to file Form W-3c with Form W-2c.

CORRECTING MORE THAN ONE KIND OF FORM. -- A separate Form W-3c must be used for each type of W-2 (e.g., W-2, W-2AS, W-2CM, W-2GU, or W-2VI) being corrected. If you are correcting more than one kind of form, please group forms of the same kind, and send them in separate groups.

REPORTING ON MAGNETIC MEDIA. -- Forms W-2c and W-3c are not required to be filed on magnetic media. If you wish to submit data on magnetic media, contact the magnetic media coordinator in the Social Security regional office that services your state. Call 1-800-772- 1213 for the telephone number of the magnetic media coordinator in your area. Magnetic media filing instructions are also available on the SSA and IRS electronic bulletin boards.

BULLETIN BOARD SERVICES. -- Using a personal computer and a modem, you can obtain information from either of two electronic bulletin board systems (BBS) -- the SSA-BBS or the IRP-BBS (IRS). The SSA-BBS can be accessed by dialing (410) 965-1133 or BBS-(IRS) by dialing (304) 263-2749.

Information available includes Forms W-2c/W-3c magnetic media filing instructions, selected IRS and SSA forms and publications, information on electronic filing, and general topics of interest about information reporting. The BBS can also be used to ask questions about magnetic media and/or electronic filing programs and reporting on information returns.

WHO MUST FILE. -- Generally, employers must file Form W-3c to send Copy A of Forms W-2c to the SSA. See PURPOSE OF FORM for when W- 3c is not needed.

The transmitter or sender (including a service bureau, paying agent, or disbursing agent) may sign Form W-3c for the employer or payer only if the sender:

a. Is authorized to sign by an agency agreement (either oral, written, or implied) that is valid under state law; and

b. Writes "For (name of payer)" next to the signature.

Even though an authorized sender signs for the payer, the payer still has the responsibility for making sure the Form W-3c and attachments are filed correctly and timely, and is subject to any penalties that result from not complying with these requirements.

WHERE TO FILE. -- All employers must file Forms W-2c and W-3c with the Social Security Administration, Data Operations Center, Wilkes-Barre, PA 18769.

SHIPPING AND MAILING. -- If you have a large number of forms, you may send them in separate packages. Show your name and employer identification number on each package. Number them in order (1 of 4, 2 of 4, etc.), and place Form W-3c in package 1. Show the number of packages at the bottom of Form W-3c below the title. You must send the Forms W-2c and W-3c by First-Class mail.