Rev. Proc. 72-34

Section 1. Purpose.

The purpose of this Revenue Procedure is to state the requirements of the Internal Revenue Service relating to substitutes for Form W-2, Wage and Tax Statement.

Sec. 2. Substitutes.

.01 Paper substitutes for Form W-2 which conform to the specifications contained in this procedure may be privately printed without the prior approval of the Internal Revenue Service. Proposed substitutes not conforming to these specifications should be submitted by letter to the Commissioner of Internal Revenue, Attention: ACTS:T:P, 1111 Constitution Avenue, N.W., Washington, D.C. 20224, for consideration. These requests should contain an explanation of the need for the specific deviations.

.02 In addition, employers utilizing copies of the Form W-2 as substitutes for State or local Wage and Tax Statements, must also comply with State or local regulations.

.03 Filing on magnetic tape may be substituted for filing Copy A of Form W-2. Revenue Procedure 71-20, C.B. 1971-2, 528, copies of which are available at Internal Revenue Service Centers and District Offices, covers the filing of Form W-2 data on magnetic tape. Revenue Procedure 71-18, C.B. 1971-1, 684, copies of which are available from Internal Revenue Service Centers and from the Social Security Administration, Baltimore, Maryland (Attn: Bureau of Data Processing) provides a single magnetic tape format covering quarterly earnings reports (Form 941, Schedule A), Forms W-2, quarterly reports to State employment security agencies and annual reports to State income tax agencies.

Sec. 3. Specifications for Forms Printing.

.01 Basic form.--The official Form W-2 for the reporting year should be used as the basis for developing the substitute form. Since Form W-2 is subject to annual review and possible change, employers are cautioned against overstocking supplies of the privately-printed substitutes. Copies of the official form for the reporting year may be obtained from any Internal Revenue Office. .02 Color and quality of paper.--

(a) The official form is printed in a four-part and six-part format. Paper for Copy A must be white chemical wood bond, or equivalent, 32- to 40-pound (basis 17 x 22-1000), plus or minus 5% (weight must be inclusive of any coatings or chemical treatments). The above paper must consist of principally bleached chemical woodpulp and be free from unbleached or ground woodpulp. It also must be suitably sized to accept ink without feathering.

(b) The paper used for Copy B must be white, and at least 24-pound (basis 17 x 22-1000).

(c) The paper used for the other copies must be white and at least 18-pound (basis 17 x 22-1000).

.03 Color and quality of ink.--All printing must be in a high quality black ink. Bar codes should be free from picks or voids.

04. Quality of Printing.--Strict observance of printing and trimming tolerances is required. Forms not meeting these specifications may be returned to the employers by the Service Center.

.05 Typography.--Type must be substantially identical in size and shape with corresponding type on the official form. All horizontal rules on the document and all vertical rules outside the specified format section except format identifier lines, must be 1 point (0.015 inch). All vertical rules within the specified format section and format identifiers must be 3 point (0.045 inch). When present, mailing guides must be less than one-half point (0.0075 inch). The format identifier must be printed in a 10 point Roman font. Any normally used 10 point Roman font is acceptable. Vertical rules must be parallel to the left edge of the document; horizontal rules parallel to the top edge.

.06 Dimensions.--The width of Copy A of substitute forms must be a minimum of 7 inches and a maximum of 8 inches, exclusive of snap stubs. The depth of substitute forms must be a minimum of 3 inches and a maximum of 4 inches. The preferable dimensions are 8 inches in width and 32/3 inches in depth. The dimensions of the other copies should conform to those of Copy A. However, to accommodate added information fields, listed in section 6.05, below, the permissible dimensions may be increased in one of the following ways:

(a) The depth of all copies except Copy A may be increased to 7 inches maximum, while holding the width to a maximum of 8 inches.

(b) The width of all copies except Copy A may be increased to a maximum of 16 inches while holding the depth to a maximum of 4 inches, by adding a detachable stub to each copy of the form. In this case employees must be instructed to detach the added portion prior to attaching to Federal or State income tax returns and the added material must be removed from the State copy, furnished to States by employers.

.07 Clear area.--The back of Copy A must be free of all printing.

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

.09 Special identification.--Copy B must show the full-face dots, arranged vertically on the upper right side.

.10 Printers' symbols.--The Government Printing Office symbol must not be placed on substitute Forms W-2. In place thereof, it is suggested the forms printer print his Employer Identification Number in the same place on such substitute forms.

.11 Copy D--Copy D is included in the official assembly for the convenience of the employer. Although there is no requirement that privately printed substitute forms include Copy D, employers may find it desirable to make and retain such copy.

Sec. 4. Format Requirements.

.01 The Form W-2 is divided into two sections: a specified format section and a variable format section. The specified format section consists of the area encompassed by the following data blocks: employee name and address, employee social security number, Federal income tax withheld, total wages paid, and other compensation, and includes also the left margin; i.e., the area within 3/8 inch of the left edge of the document. The variable format section consists of the remainder of the document, including the area consisting of the following data blocks: the reporting year, FICA tax withheld, total FICA wages paid, employer name, address, and identification number, and uncollected employee tax on tips.

.02 Additional data blocks, beyond those contained on the official form, may be added to substitute Forms W-2, at the option of the employer or in accordance with State or local requirements. When present, such additional entries must be contained in the variable format section, except as noted in section 4.04(h) below.

.03 The layout of privately-printed forms must conform to one of the six layouts illustrated in Exhibit B. These are numbered from 2-7, since Format 1 is reserved for the official government-printed forms. The format differences apply to the relative positions for the Federal Income Tax Information fields, the employee name and address field, and the employee social security number field.

.04 Special Instructions for Copy A. --

(a) The area within 3/8 inch of the left edge of Copy A of the form must be free of all printing, except for a format identifier number and format guidelines.

(b) The appropriate format identifier (2, 3, 4, 5, 6, or 7) must be 1/4 inch from the top and left edges and there must be 1/8 inch clear space to the right of such number.

(c) In formats 2, 4 and 6, the 3/8 inch margin must contain a 3 point horizontal rule from the left edge of the document at the bottom of the Federal Income tax field and another 3 point horizontal rule at the bottom of the employee name and address field. (See Exhibit B)

(d) In addition to those specified for formats 2, 4 and 6, formats 3, 5 and 7 must contain an additional 3 point horizontal rule at the top of the social security number field for format 3 or at the top of the employee name and address field for formats 5 and 7. (See Exhibit B)

(e) There must be a 3 point vertical rule at the beginning and end of each of the three required monetary fields, and at the beginning and end of the social security number and employee name and address fields.

(f) There must be a margin of at least 1/4 inch between the top edge of the document and any other printing. Variable format section data may be placed between the top of the form (subject to the 1/4 inch margin) or bottom edge of the document and the specified format section, or the specified format section may occupy the entire left side of the substitute form, at the option of the employer.

(g) Formats 2, 3, 4, and 5 are preferred; however, formats 6 and 7 are acceptable. If 6 or 7 is used and the location of the social security number will be consistent for all returns prepared by the employer, a 3 point vertical rule should be preprinted immediately to the left of this area. The length of the rule and the wording and placement of the block should conform to the dimensions and location on the official form.

(h) If Format 6 or 7 is used and the location of the social security number is not consistent for all returns, due to the nature of the mechanical equipment used by the employer, the social security number need not be contained in a special box or identified. Preferably it should be printed to the right of and on the same line as the name, but it can also be printed one or two lines above or below the name. There must be no other data between, or on the same line as, the social security number and the name. Also special precautions must be taken with respect to the printing of an employee number or badge number. The printing of such badge numbers in the specified format section should be avoided. However, if the printing of an employee or badge number in the specified format section is unavoidable, this number must not be on the same line as, or on any line above, the social security number or on the same line as wages.

.05 Instructions applicable to all copies. --

(a) Employee name, street address, and city and State (including ZIP code) must be on separate lines. City, State, and ZIP Code may be on the same line or printed on separate lines.

(b) The overall dimensions of the specified format section and the dimensions of the individual data blocks contained therein may be varied from the dimensions shown on Exhibit A. However, the general arrangement of data within the section and the typography may not be altered. Mailing guides may be added if the substitute form is intended to be mailed in window envelopes.

(c) In using any of the formats, care should be taken to prevent disclosure of wage and tax information if a window envelope is used for mailing.

Sec. 5. Variable Format Section Layout.

The arrangement of data in the variable format section may be varied on substitute forms to fit State or local requirements or to accommodate the needs of the data processing system used by the employer, except that the payment year must always be in the upper right corner of the form.

Sec. 6. Additional Instructions.

.01 Arrangement of assembly. -- Except as provided below, the parts of the assembly shall be arranged, from top to bottom, as follows: Copy A, "For Internal Revenue Service Center;" Copy B, "To be filed with employee's tax return;" Copy C, "For employee's records;" Copy D, "For employer." The first two copies of a Form W-2 assembly must be Copy A "For Internal Revenue Service Center" and Copy B "To be filed with employee's tax return," except when an additional copy is prepared for submission to a State or local taxing authority. Such additional copy may be inserted between Copy A and Copy B.

.02 Additional copies. -- Except as noted in .01 above, additional copies which may be prepared by employers shall not be placed ahead of the Copy C in the assembly. All copies of the form must be clearly labeled to indicate the purpose for which intended and must carry the copy designation. Copies for State or local use must be clearly labeled to indicate the purpose for which intended and should not bear any part of the designation "Form W-2--Department of the Treasury, Internal Revenue Service."

.03 Excludable sick pay. -- If desired, a block may be shown on Form W-2 for excludable sick pay. However, if such a block is provided and no amount is entered, the word "None" or "0" should be shown.

.04 Statement to support excludable sick pay. -- A statement from the employer to support sick pay excludable from gross income may be made a part of the assembly, provided it is not placed ahead of Copies A and B in the assembly and is printed on paper of distinctive color. Such statement should substantially conform with the statement set forth in Revenue Procedure 57-1, C.B. 1957-1, 721. It should be clearly indicated on such statement that it is to be attached to page 2 of the taxpayer's Federal income tax return, Form 1040.

.05 Use of additional space. -- The additional space permitted by section 3.06 under either option (a) or (b), may not be utilized for any of the data entries required on the official form. It may be used only to convey additional information such as annual withholding from pay for hospitalization, union or professional dues, or other data not otherwise reported on Form W-2. In general, the utilization of the increased dimensions specified in section 3.06 could permit the elimination of an annual earnings statement which many employers would otherwise provide their employees, in addition to the Form W-2. This approach should be particularly beneficial to employers filing on magnetic tape in lieu of Copy A.

.06 Instructions. -- The instructions contained on the face of Copies A and B and both the face and back of Copy C must appear on the corresponding copies of substitute forms.

.07 State agencies. -- The amounts of wages paid and employee contributions withheld under a State-Federal Agreement, entered into pursuant to section 218 of the Social Security Act, may be shown in the spaces on Form W-2 for Federal Insurance Contributions Act wages and employee tax, provided appropriate distinguishing captions are used to identify such amounts. In such cases, the identification number assigned by the Social Security Administration to the State (prefix 69) should be shown in the employer block in addition to the employer identification number assigned by the Internal Revenue Service for income tax withholding purposes.

.08 Instructions for employers. --

(a) Only originals or ribbon copies may be filed with the Service. Carbon copies are not acceptable.

(b) The Service requests the cooperation of employers in typing or machine printing whenever possible and in providing good quality data entries on the forms; i.e., using black ribbon, inserting data in the middle of blocks, well separated from other printing and guidelines, and taking any other measures that will guarantee a clear, sharp image. However, employers are not required to acquire special equipment solely for the purpose of preparing these forms.

(c) On corrected returns for Form W-2, an "X" must follow the format identifier number and the words "Corrected Return" (in upper case letters) must be centered in the top 1/4 inch of the form. All required data blocks must be completed on a corrected return since it supersedes the information previously reported.

Sec. 7. Reproduction Proofs.

Order blanks for reproduction proofs are mailed annually to requesters of record, and on request, to other users. Printers and others wishing to obtain reproduction proofs may send their requests to the Commissioner of Internal Revenue, Attention: A:FM:P, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

A charge of $0.75 per page will be made for each reproduction proof regardless of page size. Invoices will be mailed after orders have been filled.

Sec. 8. Effect on Other Documents.

This Revenue Procedure supersedes Revenue Procedure 68-38, C.B. 1968-2, 927.

[Editor's note: Exhibits A and B illustrate physical specifications of the forms discussed. These illustrations are not suitable for electronic reproduction.]