IRS PUBLISHES SPECIFICATIONS FOR SUBSTITUTE FORMS W-2 AND W-3.

Rev. Proc. 92-37

PART A. GENERAL

SECTION 1. PURPOSE

01 The purpose of this revenue procedure is to provide the general rules for filing and to state the requirements of the Internal Revenue Service (IRS) and the Social Security Administration (SSA) for reproducing paper substitutes for Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Income and Tax Statements, for amounts paid during the 1992 calendar year. The information reported on Forms W-2 and W-3 is required to establish tax liability for employees and their eligibility for Social Security benefits.

02 Important Note: Box 6 Error and Top Margin (Copy A)

1 The first printing of the IRS produced 1992 Form W-2 and the first release of the reproduction proofs contain improper spacing in the check boxes in Box 6. The forms exhibited in this revenue procedure (see the exhibits at the end of the text) and the second release of the reproduction proofs (dated April 1992) contain the correct spacing for these boxes. The proper spacing of these check boxes (.3 inches between boxes) is unchanged from the 1991 form. Private printers should use the even (.3 inch) spacing of these check boxes for Copy A of their Forms W-2. Filers of Forms W-2, Copy A, when completing the Box 6 check boxes, may place any necessary marks as if the check boxes were evenly spaced (as shown in this revenue procedure), regardless of the placement of the boxes on the version of the Form W-2 used. This will allow filers using automated systems to avoid unnecessary software changes. However, IRS and SSA will accept Forms W-2 with the boxes checked as per the first printing of the IRS printed form, regardless of the placement of the boxes on the Form W-2 used. IRS printed Forms W-2, which contain the uneven spacing, and any privately printed forms containing the uneven spacing that were printed because of the first release of the reproduction proofs, may be used by filers of 1992 Forms W-2.

2 The top margin of Form W-2, Copy A, and Form W-3 will remain .25 inch. The change that was reflected in the first release of the IRS printed Forms W-2 and W-3 (to .375 inch) will not be used. While forms printers and filers are strongly encouraged to use the .25 inch top margin, those that changed to the larger margin may use their forms if already printed and/or changing back (to .25 inch) would cause hardship.

03 The IRS is considering new requirements for private printing of Form W-2 for 1993. This is the result of comments the service has received that the Form W-2 needs more uniformity to ease taxpayer burden in reporting. Private printers and payers are cautioned against overstocking supplies of privately printed substitutes or establishing the format for their Forms W-2 early in the year. See Announcement 91-172, 1991-46 I.R.B. 31, for a discussion of the proposed 1993 requirements and a draft of the proposed form.

04 For the purpose of this Revenue Procedure, a substitute form is one that is not printed by the IRS or SSA. A substitute Form W-2 or W-3 must conform to the specifications in this revenue procedure to be acceptable to the IRS. Preparers should also refer to the separate instructions for Forms W-2 and Form W-3 for additional guidelines on how to complete these forms. See Part B, Sec. 1.03, for information on ordering the official IRS forms and instructions. See Part B, Sec. 2, for requirements for substitute forms furnished to employees.

05 This revenue procedure supersedes Rev. Proc. 91-45, 1991-33 I.R.B. 8. (Reprinted as Publication 1141, Revised 8-91.)

SEC. 2. NATURE OF CHANGES

01 The text and exhibits were updated for tax year 1992.

02 The Revenue Procedure was clarified to emphasize that recipient copies of Forms W-2, including those that are printed on a single sheet of paper, must be produced so as to be easily separated by the recipient. Perforations between the individual copies (Copy B, C, etc.) that are printed on a single sheet satisfy this requirement.

03 The ink color for paper Forms W-3 and W-2, Copy A, which may be used by filers of fewer than 250 documents, has been changed. The new specified OCR dropout ink is Sinclair and Valentine J-6983 red ink or equivalent. This is the same ink that is used for Copy A of the Form 1099 series. For 1992 Forms W-2 and W-3 only, the prior ink color will be allowed.

04 The maximum allowable width of recipient copies of Form W-2 (Copies B, C, etc.) has been increased to 8.5 inches. The allowable sizes for the Form W-2, Copy A, are unchanged.

05 The Revenue Procedure is clarified to state that the requirement that a maximum of three items are permitted in Box 17 of Form W-2 applies only to the paper Copy A that is filed with SSA. As long as sufficient space is provided on the recipient copies, as many items as needed may be placed in Box 17.

06 The rules for printing the instructions to the employee are clarified to specify that these instructions are not to be printed on the back of Copy B (filed with the recipient's Federal income tax return) or a copy that is to be filed with the recipient's state or local returns. These instructions must be printed either on the back of Copy C or on a separate page that is included with the Forms W-2 provided to the employee.

07 Various editorial changes were made.

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

01 Employers and payers (hereafter and where applicable collectively referred to as payers) MUST use magnetic media for filing if the payer will file 250 or more 1992 Forms W-2 (Copy A) with SSA. This requirement applies unless:

1 The payer can establish that filing on magnetic media will result in undue hardship, AND

2 The payer is granted a waiver of the requirement by IRS. To request a ONE YEAR waiver of the magnetic media filing requirement, submit Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media, to:

          Internal Revenue Service

PAYERS WHO FILE FORM W-2 INFORMATION ON MAGNETIC MEDIA WITH SSA MUST NOT SEND THE SAME DATA TO SSA ON PAPER FORMS W-2. This would result in duplicate reporting and may subject the filer to penalties imposed by the IRS.

02 Payers can design their own statements to give to employees (hereafter and where applicable collectively referred to as recipients). This applies to both payers who file with SSA either on magnetic media or paper Forms W-2, Copy A. Payers who file paper Copy A, Form W-2, with SSA are required to use a substitute Copy A that exactly meets the specifications set forth in this Revenue Procedure (or use the official IRS printed form) for submission to SSA. Payee statements designed by payers MUST comply with the requirements shown in Parts B and C, below.

NOTE: Copy A must not be filed with SSA when Form W-2 information is filed on magnetic media. Magnetic media filers who use the official IRS printed form or any other pre-printed form are advised not to print Copy A, or to discard a printed Copy A, to prevent duplicate information from being submitted to SSA.

03 TIB-4, "Magnetic Media Reporting, Submitting Annual W-2 Copy A Information to the Social Security Administration," contains the specifications and procedures for filing Forms W-2 information on magnetic media with SSA. Specifications for both tape and diskette reporting for Forms W-2 are included in this Technical Instructions Bulletin (TIB-4).

04 TIB-4 may be obtained by writing to:

          Social Security Administration

05 Payers not using magnetic media must file a paper Copy A of Form W-2 with SSA on either an official form or a privately printed substitute paper form that exactly meets the specifications shown in Parts B and C.

06 1992 Forms W-2, whether filed on magnetic media or paper, must be submitted to SSA on or before March 1, 1993. (The last day of February, the normal due date, is a Sunday.) In addition, the payee copies must be provided to the recipient on or before January 31, 1993. Failure to timely file with SSA or to timely provide the recipient (taxpayer) copies may subject the payer to penalties. Payers needing additional time to file Copy A of Form W-2 with SSA may request an extension of time to file by submitting Form 8809, Request for Extension of Time to File Information Returns, to the IRS Martinsburg Computing Center (IRS/MCC), at the address (or alternative address) listed in Sec. 3.01, above. The extension request should be filed as early as possible, but must be postmarked no later than the due date of the forms (March 1, 1993).

NOTE: APPROVAL OF THE EXTENSION IS NOT AUTOMATIC. Approval or denial is based on administrative criteria and guidelines. The requestor will receive an approval or denial letter from IRS and must allow at least 30 days for IRS to respond. Form 8809 may be obtained by calling 1-800-829-3676, or by contacting IRS/MCC. (See the address and phone number in Sec. 3.01, above.)

SEC. 4. GENERAL RULES FOR FILING FORM W-3

01 Employers and payers (hereafter and where applicable collectively referred to as payers) submitting Forms W-2 (Copy A) on PAPER to SSA must transmit Forms W-2 with Form W-3.

02 Form W-3 must be the same width (i.e., 7 inches, 7.5 inches, or 8 inches) as the Forms W-2 filed.

03 Form W-3 should only be used to transmit paper Forms W-2 (Copy A). MAGNETIC MEDIA FILERS DO NOT FILE FORM W-3. Payers using magnetic media must transmit Form W-2 data with Form 6559, Transmitter Report and Summary of Magnetic Media, (and Form 6559-A, Continuation Sheet for Form 6559, if necessary).

NOTE: Form 6559 has been substantially revised and Form 6560 has been replaced by Form 6559-A. Payers must use the new revisions of Forms 6559 and 6559-A for the reporting of 1991 Form W-2 information on magnetic media. A set of these forms (Form 6559 and 6559-A) are provided by SSA to all approved magnetic media filers. The forms may also be obtained by calling IRS at 1-800-829-3676.

PART B. REQUIREMENTS FOR PILING PAPER SUBSTITUTES

SEC. 1. GENERAL RULES FOR FILING "PAPER SUBSTITUTES" FOR FORMS W-2 AND W-3

01 Paper substitutes that conform totally to the specifications contained in this revenue procedure 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 GENERAL 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

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

03 Copies of the current year, IRS printed Forms W-2 and W-3 and the instructions for these forms may be obtained from most IRS offices or by calling 1-800-829-3676. The IRS provides only cut sheet sets. For 1992, IRS is printing Forms W-2 on carbonless, NCR paper. Reproduction proofs of the official Forms W-2 and W-3 are also available. See Part C, Sec. 4, below, for information on ordering reproduction proofs.

04 Substitute Forms W-2 and W-3 transmitted to SSA should generally contain only data that is required by the Form W-2, the Form W-2 instructions, and this Revenue Procedure.

05 Substitute Forms W-2, Copy A, and W-3 may be redesigned as to the spacing for state and local tax data AS LONG as the vertical and horizontal spacing for all federal payment and data boxes are in compliance with the specifications contained herein.

06 All ballot boxes on Forms W-2, Copy A (Box 6), and W-3 must be 8-point boxes. NOTE: If a box is marked, more than 50% of the applicable ballot box must be covered by an "X."

SEC. 2. REQUIREMENTS FOR SUBSTITUTE FORMS FURNISHED TO PAYEES (COPIES B, C, AND 2 OF FORMS W-2)

01 All payers (including payers who file on magnetic media and do not file a paper Copy A) must furnish payees with at least two Forms W-2 (three or more for payees required to file a state, city, or local income tax return). The dimensions of these copies (Copies B, C, etc.) may be expanded from the dimensions of the official form to allow space for conveying additional information, such as additional entries required for Boxes 17 or 18, withholding from pay for health insurance, union dues, bonds, charity, etc. The requirement that a maximum of three items are permitted in Box 17 of Form W-2 applies only to the paper Copy A that is filed with SSA. As long as sufficient space is provided on the substitute recipient copies, as many items as needed may be placed in Box 17. Also, on these copies (Copies B, C, etc.), the size of these boxes may be adjusted. This may permit the payer to eliminate other statements or notices that would otherwise be furnished to payees.

     1 The MAXIMUM allowable dimensions are:

02 The paper for all copies should be white. The substitute Copy B (or its equal), that payees 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;

04 Substitute forms for payees need contain only the payment boxes and captions that are applicable. Certain other boxes contained on the official form may be omitted. IN ALL CASES, the tax year (1992) must be clearly printed on the form and the following boxes MUST be present:

     1 The payee name, address, Social Security Number (SSN);

Payment box numbers and captions that are applicable must be clearly identified, using, where possible, the same wording as on the IRS printed form. On Form W-2, Copy B, payers ARE REQUIRED to identify the amount of Federal income tax withheld as "Box 9" and the amount of wages, tips, other compensation as "Box 10." Boxes 9 and 10 on Copy B are required to be outlined in bold 2-point rule (see Exhibit I) or highlighted in some manner to distinguish these boxes from the rest of the form. If Allocated tips (Box 7) or Advance EIC (Earned Income Credit) payments (Box 8) are present for the individual employee (or class of employees that are being provided Forms W-2), it is recommended that these boxes also be outlined in bold 2-point rule or highlighted on Copy B. If Form W-2 contains additional data (e.g., saving bonds withholding, retirement withholding, or payroll savings), there should be a special highlighting of the areas pertaining to (1) Federal income tax withheld, (2) Wages, tips, and other compensation, or (3) Advance EIC (Earned Income Credit) payments that are related to those items.

05 Substitute forms for payees (Copies B, C, and 2 of Forms W-2) must meet the following requirements:

1 All copies of Forms W-2 must clearly show the form number, the form title, and the tax year. The title of Form W-2 is "Wage and Tax Statement."

2 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 of the form (Copy B) is filed with the employee's (or recipient's) Federal tax return. (b) The second copy of the form (Copy C) is for the employee's (or recipient'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.

3 If the substitute forms are LABELED, then the forms must contain the applicable description:

"Copy B, to be filed with employee's Federal tax return," "Copy C, for employee's records," and the designation "Form W-2, Department of the Treasury - Internal Revenue Service."

The reference to the Department of the Treasury - Internal Revenue Service should be omitted from any other copies provided in the set.

4 Instructions similar to those contained on the back of Copy C of the official form MUST be provided to each employee (recipient). While payers may modify or delete certain information in these instructions, the instructions MUST include the exact language concerning the Earned Income Credit (EIC) as is contained on the official form. Payers are allowed to delete information in these instructions (except the EIC explanation) that does not apply to the employee/recipient. For example, if none of the employees of a payer have dependent care benefits (box 22), the payer may delete the instructions for that item. Also, if an employer will only be reporting amounts for a 401(k) plan in Box 17, those instructions may be modified to cover only Section 401(k) contributions.

NOTE: Printers are cautioned that the rules set forth here (Part B. Sec. 2) apply to employee or recipient copies (Copies B, C, etc.) only. Paper filers who send Copy A of Form W-2 to SSA MUST follow the requirements in Part B. Sec. 3, below for those paper submissions.

SEC. 3. REQUIREMENTS FOR SUBSTITUTE "PRIVATELY PRINTED" FORMS SUBMITTED TO SSA (FORMS W-2, COPY A, AND FORMS W-3)

01 Payers may file privately printed substitute Forms W-2 and W-3 with SSA. The substitute form must be an exact replica of the IRS printed form (or official reproduction proof) with respect to layout and contents because it will be read by machine. The dimensions of a substitute form may differ as far as width (see Sec. 3.05, below). The Government Printing Office (GPO) symbol must be deleted (see Sec. 3.16, below). The specifications and allowable tolerances for the Copy A of substitute Forms W-2 are provided later in this Revenue Procedure. See Exhibits A, C, and D for Form W-2 specifications. The specifications and allowable tolerances for Forms W-3 are provided in Exhibits B, E, and F.

NOTE: PRINTERS OF FORMS W-2 THAT ARE WIDER THAN 7 INCHES MUST PROVIDE FORMS W-3 THAT ARE THE SAME WIDTH AS THE FORMS W-2 (I.E., 7- 1/2" FORMS W-3 WITH 7 1/2" WIDTH FORMS W-2; 8" WIDTH FORMS W-3 WITH 8" WIDTH FORMS W-2).

02 Paper for substitute Forms W-2, Copy A, and Form W-3 (cut sheets and continuous pinfeed forms) that are to be filed with SSA must be white 100% bleached chemical wood, optical character recognition (OCR) bond produced in accordance with the specifications shown as follows:

      1 Acidity: pH value, average, not less than       4.5

03 All printing for Copy A (of Forms W-2) and Form W-3 will be in red OCR dropout ink, as specified below, except for the form identifying numbers '22222' or '33333' at the top of the form and the descriptive information at the bottom (see Exhibits G and H) that will be printed in nonreflective black ink. All other printing will be in red OCR dropout ink meeting, or comparable to, the specifications in this paragraph. The screened area of any substitute form (Form W-3 and the Copy A of Form W-2) that is sent to SSA should generally correspond to that present on the official form. Vertical rules require screening of .05 inches on each side of an inside rule. Horizontal screening should follow the standard format and allow for typewriter spacing. All screened areas are to be printed in red OCR dropout ink. The numbered captions are printed as a solid with no screened background (see Exhibits). THE INK COLOR FOR PAPER FORMS W- 2, COPY A, AND W-3 HAS BEEN CHANGED. THE NEW SPECIFIED OCR DROPOUT INK IS SINCLAIR AND VALENTINE J-6983 RED INK OR EQUIVALENT. (This is the same ink that is used for Copy A of the Form 1099 series.) For 1992 Forms W-3 and W-2, Copy A, only, the prior ink color will be allowed. The prior ink is Sinclair and Valentine (U.S.) red OCR dropout ink number J-25083, or equivalent.

NOTE: Printing in any other red OCR dropout ink must be cleared by contacting Manager of Sales Support, Recognition Equipment, Inc., P.O. Box 660204, Dallas, TX 75266, telephone number 214-579-6927.

04 Type must be substantially identical in size and shape with corresponding type on the official form. NOTE: The form identifying number must be in OCR A font.

1 On Form W-3 and Copy A of Forms W-2, 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 form; horizontal rules parallel to the top edge.

05 Two official Forms W-2 (Copy A), or one official Form W-3 are contained on a single page that is 7 inches wide (exclusive of any snap-stubs) by 11 inches deep. The form identifying number for the official forms (7 inches wide) is '22222' for Form W-2 and '33333' for Form W-3. Although adherence to the size of the official page is preferred, the width of privately printed substitute pages may be 7 inches, 7-1/2 inches, or 8 inches, exclusive of any left or right snap-stubs, or pin-feed holes. If a 7 inch form is produced, the image must be an exact copy of the IRS printed Form W-2. If the width of the substitute page is increased, the width of specified fields on the substitute page must be increased in accordance with Exhibits C, D, E, and F. The top margin for Forms W-2, Copy A, and Form W-3 must be .25 inch, the right margin must be .15 inch, and the left margin .35 inch (plus or minus .0313 inch). Margins must be free of all printing. For Forms W-2, Copy A, and W-3 the combination width of Box 1, "Control number", and the box containing the form identifying number must always be 2.2 inches.

1 When the width of Form, Copy A, is increased to 8 inches, exclusive of any left or right snap-stubs or pin-feed holes, the form identifying number must be shown as 222 for Form W-2 or 333 for Form W-3. This number tells the scan equipment used by SSA which information document it is reading, the width size and the position of individual data fields (see Exhibits C and E).

2 When the width of Copy A is increased to 7-1/2 inches, exclusive of any left or right snap-stubs or pin-feed holes, the form identifying must be shown as 2222 for Form W-2 or 3333 for Form W-3. This number tells the scan equipment used by SSA which information document it is reading, the width size and the position of individual data fields (see Exhibits D and F).

06 The depth of the individual image on a page must be the same as that of the IRS printed forms. For Form W-2, the depth is 5.5 inches (see Exhibit A). The depths of the Form W-3 on a page must be 3.37 inches (see Exhibit B). The depths are the same for the 7 inch, 7-1/2 inch, and 8 inch wide forms.

07 The words "DO NOT CUT OR SEPARATE FORMS ON THIS PAGE" must be printed in red OCR dropout ink between the two Forms W-2, Copy A, (see Exhibit A) and must also be present on 7-1/2 inch and 8 inch wide substitute Forms W-2. Perforations are required on all copies (except Copy A) to enable the separation of individual forms.

08 The words "For Paperwork Reduction Act Notice, see separate instructions." MUST be printed on Forms W-2, Copy A, (see Exhibit A for format and location) and MUST also be present on 7-1/2 inch and 8 inch wide substitute Forms W-2.

09 The Office of Management and Budget (OMB) Number MUST be printed on EACH ply of Form W-2 and W-3 (see Exhibits A and B for format and location) and MUST also be present on 7-1/2 inch and 8 inch wide substitute Forms W-2 or W-3.

10 The statement "PLEASE RETURN THIS ENTIRE PAGE WITH THE ACCOMPANYING FORMS W-2 TO THE SOCIAL SECURITY ADMINISTRATION ADDRESS FOR YOUR STATE AS LISTED BELOW. HOUSEHOLD EMPLOYERS FILING FORMS W-2 FOR HOUSEHOLD EMPLOYEES SHOULD SEND THE FORMS TO THE ALBUQUERQUE DATA OPERATIONS CENTER." and the list of SSA addresses MUST be printed on Forms W-3 (see Exhibit B), whether Forms W-3 are 7 inches wide, 7-1/2 inches wide, or 8 inches wide.

11 The Paperwork Reduction Act Notice must be printed on Form W-3 (see Exhibit B for format and location), whether Forms W-3 are 7 inches wide, 7-1/2 inches wide, or 8 inches wide.

12 PRIVATELY PRINTED CONTINUOUS SUBSTITUTE FORMS W-2 -- COPY A, MUST BE PERFORATED AT EACH 11" PAGE DEPTH. NO PERFORATIONS ARE ALLOWED BETWEEN THE INDIVIDUAL FORMS (5-1/2 INCH FORMS W-2) ON A SINGLE COPY PAGE OF COPY A. NOTE: Perforations are required between all the other INDIVIDUAL copies on a page (Copy 1, B, C, 2, and D) included in the set.

13 The back of a substitute Form W-2, Copy A, and Form W-3 (page 1) must be free of all printing.

14 Spot carbons are NOT PERMITTED for Copy A of Forms W-2 or for Form W-3. Interleaved carbon should be black and must be of good quality to assure legibility of information on all copies and to preclude smudging.

15 Chemical transfer paper is permitted for Copy A only if the following standards are met:

(1) Only CHEMICALLY BACKED paper is acceptable for Copy A.

(2) Carbon coated forms ARE NOT permitted. Front and back chemically treated paper cannot be processed properly by machine.

(3) Chemically transferred images must be black in color.

16 The GPO symbol must not be placed on substitute Copy A of Forms W-2.

PART C. ADDITIONAL INSTRUCTIONS

SEC. 1. INSTRUCTIONS FOR FORMS PRINTERS

01 Except as provided below, if magnetic media is not used for filing with SSA, the substitute copies of Forms W-2 assembly should be arranged in the same order as the IRS printed Forms W-2. Copy A should be first, followed sequentially by perforated sets (Copies 1, B, C, 2, and D). The substitute form to be filed by the payer with SSA must carry the designation "Copy A." NOTE: Magnetic media filers do not need to print Copy A since it is not needed by SSA.

1 It is not a requirement that privately printed substitute forms contain a copy to be retained by payers (Copy D). However, payers 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.

2 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-2 (Copy C).

3 Instructions similar to those contained on the back of Copy C of the official form MUST be provided to each employee (recipient). These instructions may be printed on the back of the substitute Copy C. However, the instructions to taxpayers may be provided to recipients on a separate statement. Do not print these instructions on the back of Copy B (filed with the recipient's Federal income tax return) or and copy that is to be filed with the recipient's state or local returns.

02 All privately printed Forms W-2 (Copy A) must have the tax year, form number, and form title printed on the bottom face of each form using identical type to that of the official format.

03 The substitute Form W-2, Copy B, which recipients attach to their Federal income tax return, must be at least 12-pound paper (basis 17 x 22-500), while the other copies furnished to payees should be at least 9-pound paper (basis 17 x 22-500).

04 Recipient copies of Forms W-2 (Copies B, C, etc.), including those that are printed on a single sheet of paper, MUST be produced so as to be easily separated by the recipient. Perforations between the individual copies that are printed on a single sheet of paper satisfy this requirement.

05 The OCR bond Form W-3 that is filed with SSA must have no printing on the reverse side.

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

07 All privately printed Forms W-3 must have the tax year, form number, and form title printed on the bottom face of each substitute Form W-3, using identical type to that of the official format.

08 The copy of the substitute Form W-3 that contains the instructions and is to be retained by the employer should be at least 18-pound paper (basis 17 x 22-500).

SEC. 2. INSTRUCTIONS FOR PAYERS

01 Only originals or ribbon copies of Copy A (Forms W-2) and Form W-3 may be filed with SSA. CARBON COPIES AND PHOTOCOPIES ARE NOT ACCEPTABLE.

02 Payers 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 payer must provide a machine scannable form for Copy A. The payer must also provide payee copies (Copies B, C, and 2) that are legible and capable of being photocopied (by the recipient).

03 The Employer Identification Number (EIN) may be entered in Box 2 along with the Payer's name and address on Copy A of Forms W-2. If this is done, the EIN need not be entered in Box 3 of Form W-2. The EIN must be entered in Box 18, Form W-3.

04 The payer's name, address, and EIN may be pre-printed.

05 The optional employer's state number may be pre-printed in the employer's (payer's) name, address, and ZIP code box. If this is done, Box 4 of Forms W-2 need not be completed, so long as the applicable state taxing authority does not object.

06 The preparation and filing instructions for Forms W-2 are contained in the 1992 Instructions for Form W-2. The preparation and filing instructions for Form W-3 are contained as part of the 1992 Form W-3 snap set assembly.

07 To avoid confusion and questions by payees, payers are encouraged to delete the following items from the copies of Forms W-2 that are provided to payees:

1 Form identifying number (e.g., 22222);

2 The words "subtotal" and "void" and their boxes;

3 Any other captions or box number that would not be of any informational use to payees.

08 Payers should use the IRS supplied labels on all Forms W-3 filed with SSA to ensure that their reports are properly recorded as timely received.

SEC. 3. 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 we will use it and whether it must be given to us. The official IRS form (or instructions) 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 date as it appears on the official IRS printed form (see Exhibits A and B).

2. The OMB number must be in one of the following formats:

OMB No. 1545-0008 (preferred),

or

OMB #. 1545-0008

3. You must inform the users of your substitute forms of the reasons for IRS collection, use, and requirements, as stated in the instructions for the official IRS form.

SEC. 4. REPRODUCTION PROOFS

01 Order blanks for reproductions proofs (repro-proofs) are mailed annually to requesters of record, and on request to other users. Reproduction copies of Forms W-2 and W-3 each consist of two parts. Part 1 is line art, i.e., type and rule. Part 2 is a black solid that should be photographically screened by the user to allow a 10%-20% dot pattern when printed in red OCR dropout ink. In some cases, where the production method requires the use of something other than a standard dot pattern, the printed value of part 2 must still be 10%-20%. Printers and others wishing to obtain reproduction proofs should call the toll-free number (1-800-829-3676) and ask for Publication 1192, which has order blanks for obtaining reproduction proofs. Written requests for Publication 1192 may be sent to:

     Internal Revenue Service

SEC. 5 EFFECT ON OTHER REVENUE PROCEDURES

01 Rev. Proc. 91-45, 1991-33 I.R.B. 8, is superseded.

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