Rev. Proc. 82-4

Section 1. Purpose

This revenue procedure states the Internal Revenue Service (the Service) requirements relating to acceptable computer-prepared substitute federal tax return forms (i.e., Forms 1040, 1040A, 1120, 940, 941, etc.) and computer-generated substitute forms to be attached thereto. It also gives direction for the proper completion of returns.

Sec. 2. Scope

This revenue procedure is the guide for preparing substitutes for most computer-prepared and computer-generated tax forms. This procedure does not include guidance for Form 1040-ES, Form 1042S, the Forms 1087 and 1099 series, and the Form W-2 series. (See Sec. 18 to obtain guidance for the excluded forms.)

Sec. 3. Definitions Used Here

.01 Substitute Form. A tax form (or related schedule) that differs in any way from the official version and is intended to replace the entire form that is printed and distributed by the Service. This term also covers those approved substitute forms exhibited in this revenue procedure.

.02 Printed Forms. A form produced using conventional printing processes. Also, a printed form which has been reproduced by photocopying or similar processes.

.03 Preprinted Pin-Fed Form. A printed form that has marginal perforations for use with automated and high-speed printing equipment.

.04 Computer-Prepared Substitute Form. A printed form in which the taxpayer's name, address and tax entry information has been printed by a computer, computer-printer or other computer-type equipment, such as word-processing equipment.

.05 Computer-Generated Substitute Form. A form that is entirely prepared by the use of a computer printer so that all the line numbers, line captions, and the tax amount data entries are in the same typeface. No graphics appear on the form. (Most tax forms requiring signature may not be computer-generated. Among them are Forms 1040, 1040A, and 1120.)

.06 Manually Prepared Form. A printed form on which the taxpayer's name, address, and tax entry information is entered by an individual using a pen, pencil, typewriter, or other nonautomated equipment.

.07 Graphics. Those parts of a printed tax form that are not tax amount entries or called-for information. Generally, these are line numbers, captions, instructions, special indicators, borders, rules, and strokes created by typesetting, photographics, photocomposition, etc.

.08 Acceptable Reproduced Form. A photocopy of an original form or of an unchanged reproduction proof supplied by the Service. (A reproduction is not a substitute form.)

.09 Supporting Statement (Supplemental Schedule). A document providing detailed information to support an entry for a line(s) on an official or approved substitute form and filed with (attached to) a tax return. (A supporting statement is not a tax form and does not take the place of an official form.)

Sec. 4. Message to Tax Return Preparers

.01 If you plan to change or modify any tax forms, you must follow internal revenue procedures, and, in many cases, you must get official approval before using substitute forms. The service is continuing a nationwide program to identify and contact tax return preparers using unapproved forms which do not conform to this revenue procedure and impede processing of the return.

.02 Additional information you may need regarding printed substitute forms is in Rev. Proc. 82-3, page 368, this Bulletin. You can get this revenue procedure by following instruction in Sec. 19.

Sec. 5. Highlights of Permitted Changes and Requirements

.01 Things you can do to internal revenue service printed tax forms to make them suitable for computer preparation. Prior approval is not required.

1 You can photocopy any tax form and use it instead of the official one.

2 You can reproduce any current tax form as cut sheets, snap-sets, and marginally-punched, pin-fed forms, so long as you use an official Service version as the master copy. Official versions are supplied by the Service, such as those in the taxpayer's tax package, those in Package X, those printed in revenue procedures, and reproduction proofs sold by the Service.

3 You can adjust the graphics on specified areas of printed Forms 1040 and 1040A (and other forms) to allow for computer-printed or word processor fill-in. Only the areas listed in this revenue procedure may be adjusted without specific prior approval.

4 You can print and duplicate the substitute "worksheet-type" versions of Schedules A and B of Form 1040 (shown as exhibits in Rev. Proc. 82-3). The Service will accept these substitute schedules instead of the official versions. These schedules serve different purposes. One allows the form to contain state tax information which is block-out before filing with the Service. The other allows the form to be used singly or as part of a snap-set.

.02 Things you cannot do to Internal Revenue Service printed tax forms to make them suitable for computer-preparation.

1 You cannot, without prior Service approval, change any Internal Revenue Service tax forms or use your own (non-approved) version, unless specifically permitted by revenue procedure.

2 You cannot adjust any of the graphics on Forms 1040 and 1040A (except in those areas specified in revenue procedures) without prior approval from the Service.

3 Generally, you cannot use your own version of Schedule A (Form 1040) unless you first get it approved. The Service wants only one Schedule A--either yours or ours; yours needs prior approval from the Service.

4 With some exceptions, you cannot omit filling out pertinent referenced (numbered or lettered) lines of the official Schedule A (and other tax forms when attaching a supporting statement. Exceptions to line completion requirements are listed in this revenue procedure.

5 You cannot use your own preprinted label on tax returns filed with the Service. The ONLY label permitted is the one provided the taxpayers in their tax packages. Otherwise, the taxpayer's name, address, and other identifying information must be entered on the return in the spaces provided.

.03 Things you can do to file computer-prepared/generated forms. Prior approval is not required.

1 You can duplicate the approved, computer-generated formats of schedules a, b, c, d, e, f, g, r, rp, se (of this revenue procedure) and use them without prior approval.

2 You can fill in official Service supplied forms using computer or word-processing equipment. The Service forms are designed for a vertical spacing of six lines to the inch, with money amount columns wide enough to allow for the computer printing of ten characters.

3 You can change certain specified areas on the Forms 1040 and 1040A (spelled out in the revenue procedures) to assist computer-printing requirements and to allow for more room on certain lines.

4 If you meet the requirements, standards, and qualifications of this revenue procedure, you can, without prior approval, computer-generate your own substitutes of the tax forms not exhibited here. (See Agreement in Sec. 21)

.04 Things you cannot do to Internal Revenue Service Forms

1 You cannot use computer graphics on any Service form without prior approval. (See Exception in Sec. 22).

2 You cannot computer-generate the tax forms themselves (i.e., forms requiring signatures; for example, Forms 1040, 1040A, 1120, 940 and 941). These forms must be preprinted using conventional printing processes, photocopying or similar reproduction processes. The forms may be filled in by a computer, by a word processor, or the like, but the forms themselves must be printed like the Service versions are. First-time users of forms designed using computer graphics submitted must receive prior written approval. (See Exception in Sec. 22)

Sec. 6. Approval

.01 Basic Requirements. Preparers who desire to file substitute tax forms and/or computer-generated tax forms must develop such substitutes using these guidelines. These substitutes, unless excepted by revenue procedure, must be approved by the Service before being filed.

.02 Requests for Approval

1 The Service cannot approve your substitute form until the official form has been published. Pleas propose your substitute after you have examined the official form.

2 You should know the revenue procedure relating to the official form before you attempt to alter the form to meet your needs. Any alteration of forms must be within the limits acceptable to the Service. It is possible that, from one filing period to another, a change in law or a change in internal need (processing, audit, compliance, etc.) may change the allowable limits for the alteration of the official form.

3 When specific approval of any substitute form is desired, a sample of the proposed substitute should be forwarded for consideration by letter to the Internal Revenue Service, Attention: Substitute Forms Program, TX:R:1, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

.03 When to Send Proposed Substitutes. Proposed substitutes should be sent to the address listed above, as much in advance of the filing period for the form as possible. This is to allow adequate time for analysis and response and to permit notice to our field offices that your substitute is acceptable. Quarterly filed forms, such as the Form 941, must be submitted by the first day of the last month of the quarter.

.04 Accompanying Statement. When the sample substitute is submitted, there should be an accompanying statement that lists the form number of each substitute requested and details those items that deviate from the official form in position, arrangement, appearance, line numbers, additions, deletions, etc. Included with each of the items should be a detailed reason or justification for the change and an approximation of the number of forms expected to be filed.

.05 Approval/Non-Approval Letter. The Service sends a formal letter of approval/non-approval. Approval letters may contain qualifications for use of the substitutes. Non-approval letters may specify the changes required for approval, but also require resubmission for approval.

.06 Duration of Approval.

1 Approvals are good for only one calendar year (January through December) or, in the case of corporation tax forms (with the exception noted below), for the remainder of the quarters of the calendar year.

2 Please note: In most cases each new filing season requires a new approval, even if the official form does not change. But see the exceptions in 3 and 4 below.

3 Exception: Quarterly tax forms in the 94X series (941, 942, etc.) are approved only for one quarter. Each new quarter requires a new approval.

4 Exception: Limited continued use of a change approved for a tax year 1980 form is allowed for the same form in tax year 1981. See .07 below for the limitations and for other requirements.

.07 Limited Continued Use of an Approved Change.

1 If you received written approval of a tax year 1980 substitute form governed by this revenue procedure and wish to continue to use the approved change in your tax year 1981 substitute form, you may revise the official form current in 1981 to include this change and, without additional written approval, use it as a tax year 1981 substitute form, provided you comply with the requirements in this revenue procedure. See exception in 2 below.

2 This means that if you received written approval for a specific change on a specific form last year, you may again make the same change on the same form this year. Thus, the change allowed in last year's approved substitute Schedule A, for example, can be continued in your new substitute for this year. The new substitute does not have to be sent to the Service, and written approval is not required. However, the new substitute must conform to the official 1981 form in other respects: date, Office of Management and Budget (OMB) approval number, sequence number, arrangement, item caption, line number, line reference, sequence, etc. It must also comply with this revenue procedure--which may have eliminated, added to, or otherwise changed the guideline which affected the change approved last year. Additionally, you will be bound by the "Agreement" in Sec. 21.

Exception: Those written approvals which stated that the approved change or form would not be allowed in any other tax year.

3 This authorization for continued use of an approved change is limited to the continuation from a tax year 1980 substitute form to a tax year 1981 substitute form.

.08 Requested Copies. In our letter of approval, you may be requested to send to the Service eleven (11) copies of each approved form. When received, the copies will be used to notify Internal Revenue Service Centers that your substitute forms are approved. The requested forms should be assembled in sets. A set constitutes a return with the related schedules and forms in the same order as they will be filed, i.e., Form 1040, Schedules A, B, C, etc., Forms 2440, 2441, etc.

Sec. 7. Office of Management and Budget (OMB) Requirements for all Substitute Forms

.01 New Legal Requirements of the Paperwork Reduction Act of 1980. Public Law 96-511 requires that: (1) OMB approve Service tax forms, (2) each Service form contains (in the upper right corner) the OMB approval number and any expiration date, and (3) each form (or its instructions) state why the Service is collecting the information, how it will be used, and whether or not the information is required to be furnished.

.02 Application to Substitute Forms.

1 Approval Number and Date Is Required. All substitute forms must contain in the upper right corner (see Marginal Printing, Sec. 11.02.1(c)) the OMB number and any expiration date that is on the Service form.

     2 Format Required (3 Options).

.03 Obtaining OMB Number, Date, and Statement. The OMB approval number, expiration date, and use and collection requirements may be obtained from the printed form (or its instructions), the reproduction proof (or instructions), or from the Service.

Sec. 8. General Guidelines

.01 Official Form Is the Standard. Because a substitute form is a variation from the official form, you should know the requirements of the official form for the year of use before you modify it to meet your needs. For the most frequently used tax forms, the quickest way to obtain an official form is to request reproduction proofs of these forms. (See Sec. 20.)

.02 Design. Each form must follow the design of the official form as to format, arrangement, item caption, line numbers, line references, and sequence.

.03 State Tax Information Prohibited. State tax information must not appear (be visible) on the federal tax return which is filed with the Internal Revenue Service Center, except where amounts are claimed on or required by the federal return, e.g., line 11, Schedule A (Form 1040). See Rev. Proc. 82-3, Sec. 12.06 Block Out Methods.)

.04 Federal and State Columns. When a form is designed with both federal and state columns, the federal column must be to the left of the state column and adjacent to the line caption.

.05 Vertical Alignment of Amount Fields. When a form is to be computer-prepared, you may remove the vertical line in the amount field that separates dollars from cents. When a form is to be computer-generated, vertically align the amount entry fields where possible. You must also use one of the ten-character amount formats shown in Sec. 23.04.

.06 Sequence Number. Please note that certain forms have a recently added "sequence number" located just below the year designation in the upper right corner of the form. Form 1040 also has one opposite line 54 on the left side. The Service uses this number to indicate the order in which forms are processed when filed with a return. On computer-prepared forms it must be printed in no less than 12-point, boldface type and centered below the form's year designation. On computer-generated forms, place this sequence number following the year designation for the tax form and separate with an asterisk. (Example: 1981 * 07).

.07 Forms with Sequence Numbers Required. The sequence number is required on the forms listed below. Please note that some of the numbers have been changed since last year.

   Form 1040                          Sequence

.09 Assemblage of Forms. When filing a return (i.e., Form 1040), we prefer that the return be arranged in this order: (1) the tax return, (2) lettered forms in alphabetical order (Schedule A, B, etc.), (3) the numbered forms shown in .07 above in sequence number order followed by all other numbered forms, (4) supporting statement in the same sequence as the forms they support, and (5) additional information required or voluntarily submitted. In this way, they are received in the order in which they must be processed. If you do not send them in this order, the Service has to disassemble them and place them in this order before processing is continued.

Sec. 9. Physical Aspects and Requirements: Paper

.01 Paper Content. The paper must be:

1 Chemical wood writing paper that is equal to or better than the quality used for the official form;

2 at least 18 pound (17" x 22", 500 sheets) or

3 at least 45 pound (25" x 38", 500 sheets).

.02 Paper Prohibited. Carbon-bonded paper is prohibited from use for all substitute forms filed with the Service.

.03 Paper with Chemical Transfer Properties--Limited Use. Chemical transfer paper for all substitute forms may be used ONLY when the following specifications are met.

1 Each ply within the chemical transfer set of forms must be labeled.

2 Only the top ply (ply one and white in color), the one which contains chemical on the back only (coated back), may be filed with the Service. For example, a set containing three plies would be constructed as follows: ply one (coated back), "Federal Return, File with the Internal Revenue Section"; ply two (coated front and back), "Taxpayer's copy"; and ply three (coated front), "Preparer's copy."

3 The file designation, "Federal Return, File with the Internal Revenue Service," for ply one must be printed in the bottom right margin (just below the last line of the form) in 12-point, bold-face type. It is not mandatory, but recommended, that the file designation, "Federal Return, File with the Internal Revenue Service," be printed in a contrasting ink for visual emphasis.

.04 Paper and Ink Color. We prefer that the color of paper substantially duplicate that of the original form. You may use white paper. This means that your substitute must be printed in black ink and may be on white or on the color paper the Service form is printed on. An exception to this rule is that Forms 1040A and 1040 substitutes and reproductions may be in black ink without the colored screening. Any additional exception to this rule requires written approval from the Service.

.05 Page Size. Substitute or reproduced forms computer-prepared/generated substitutes may be the same size as the official form (8" x 11", in most cases) or they may be the standard commercial size 81/2" x 11") exclusive of pin-feed holes. The thickness of the stock cannot be less than .003 inch.

.06 Lined Paper. Computer-generated substitute forms must be submitted on quality lined, machine paper. Lined, color-barred paper is also acceptable. Lined paper assists Service employees during processing of the returns by allowing speedy location of tax entries corresponding to line captions. The lines provide the basic means for eye-travel from one side of the form to the other.

.07 Exception to Lined Paper Requirement. If your printer has underlining capability, you do not have to use lined or color-barred paper so long as you underline every other text line on the form. The underlining must be a continuous line and extend from the left text margin to the right text margin and be the same length for all lines on the page.

Sec. 10. Physical Aspects and Requirements: Printing

.01 Printing Medium. The printing of computer-prepared substitutes must be by conventional printing processes, photocopying, computer-graphics, or similar reproduction processes.

.02 Legibility. All forms must have a high standard of legibility, both as to printing and reproduction and as to fill-in matter. The Service reserves the right to reject those with poor legibility.

.03 Type Font. Almost all federal tax forms are printed using "News Gothic" as the basic type font. We request that you use this type font when composing substitute computer-prepared forms.

.04 Image Size. The image size of printed computer-prepared forms should be as close as possible to that of the official form. You may omit any text on both computer-prepared and computer-generated forms that is solely instructional.

.05 Title Area Changes. To allow a larger top margin for marginal printing (see Sec. 11 below), the title line(s) for all computer-prepared forms (not including the form's year designation and sequence code, when present), may be photographically reduced by 40 percent or reset as one line of type. When reset as one line, the type size may be no smaller than 14-point. You may omit "Department of the Treasury Internal Revenue Service" and all reference to instructions in the form's title area.

.06 Remove Government Printing Office Symbol. When privately printing computer-prepared forms, the Government Printing Office symbol and/or jacket number must be removed. In the same place, using the same type size, print the Employer Identifying Number or the Social Security Number of the printer or designer.

.07 Printing On One Side of Paper. While it is preferred that both sides of the paper be used for computer-prepared forms, and reproduced forms, resulting in the same page arrangement as that of the official form or schedule, the Service will not object if only one side of the paper is used.

.08 Photocopy Equipment. The Service does not undertake to approve or disapprove the specific equipment or process used in reproducing official forms, but requires only that the reproduced forms satisfy the conditions stated in revenue procedures.

.09 Reproductions. Reproductions of official forms and substitute forms which do not meet the requirements of this revenue procedure may not be filed instead of the official forms.

Sec. 11. Physical Aspects and Requirements: Margins

.01 Margin Size.

1 The format of the tax form when printed on the page must have margins on all sides at least as large as the margins on the official form. This allows room for Service employees to make the necessary entries on the form during processing.

2 A one-half to one quarter inch margin must be maintained across the top, bottom, and both sides (exclusive of any pin-feed holes) of all computer-generated substitutes. The margin area is also used by Service employees to make necessary entries on the form during processing.

.02 Marginal Printing.

1 Non-Tax Material Allowed in Limited Areas.

(a) On any 8- or 81/2-inch-wide Service or substitute form, you may print your logo, company or firm name, identifying and collation symbols, etc., in the left half of the top margin.

(b) With the exception of the actual tax return forms (i.e., Forms 1040, 1040A, 1120, 940, 941, etc.), you may also print in the left vertical margin and in the left half of the bottom margin.

(c) Printing is never allowed in the right half of the top margin of the tax return (i.e., Forms 1040, 1120, 940, 941, etc). (See Sec. 4 below)

2 Prior Approval Not Required. Prior approval is not required for the marginal printing allowed in 1 above when used with the (unchanged exhibits in this revenue procedure or when printed on an official form, on a photocopy of an official form or on an (unchanged) reproduction proof.

3 Prior Approval Required. The marginal printing allowance in 1 above is also the guide for the preparation of acceptable substitute forms. There is no exception to the requirement that no printing is allowed in the right half of the top margin of the tax return form.

4 Marginal Printing Areas Outlined

Sec. 12. Approved Substitute Formats for Computer Generated Form 1040 Schedules

.01 Exhibits of Approved Formats. Acceptable computer-generated formats for the schedules usually attached to the Form 1040 are shown in the Exhibits section of this revenue procedure. The exhibits are for Schedule A, B, C, D, E, F, G, R, RP, and SE. There are two formats for Schedules A and B. All are acceptable substitutes for the official forms. They are intended to be used (without change) in place of the official forms and may be used without prior approval. All lines (including those not used for tax information must be printed. (Any change to text or format of an exhibit requires prior written approval.) Vertical spacing is six (6) lines to the inch. You may also refer to them as examples of how the guidelines in this revenue procedure may be used in specific cases.

.02 Additional Approved Formats. Acceptable formats for printed Form 1040 Schedule A and B are exhibited in Rev. Proc. 82-3, Substitute Forms; Private Design and Printing. They are usable for computer-preparation. The conditions in .01 above apply.

Sec. 13. Specifications for Filing Substitute Schedules K-1

Prior approval is NOT required for substitute Schedules K-1 that accompany 1065 (for partnership), 1120-S (for small business corporations), and 1041 (for fiduciaries) when the Schedules K-1 meet all of the following requirements.

.01 The Schedule K-1 must contain only the line items required for use by the taxpayer.

.02 The line items must be in the same order and arrangement as those in the official form.

.03 The line items must be numbered, titled, and/or captioned exactly as shown on the official form.

.04 Each taxpayer's information must be on a separate piece of paper.

Sec. 14. Required Preparation of Forms .01 Completely Fill-Out Lines. You must completely fill out all the numbered or reference lines on computer-prepared or generated forms (not just the totals) but all the items that make up the totals as well before attaching any supporting statement (see Sec. 15 below for exceptions).

.02 Internal Revenue Service Processing of Forms. The Service processes the return based on information entered on the official forms or approved substitutes. References are made to attachments only as required by law and as processing requirements direct. When you fail to complete all the pertinent lines on the official forms, Internal Revenue Service Tax Examiners have to locate the information on your attachment and write it on the proper line of the official form. This unfortunate process causes delays in processing the return and increases the potential for errors both in transcription and in interpretation.

.03 Notification of Preparers. The service is continuing a nationwide program to notify preparers who fail to meet the requirement to completely fill-out lines.

Sec. 15. Exceptions to Line Completion Requirements

.01 Zero Entries. Detailed information for any deduction or income category may be omitted from the printout if the category total to be reported is zero. However, the substitute form must show the total (zero when applicable) for each category. This means when no tax information is applicable, leave the line blank.

.02 Lines Captioned "Other" (All Forms). It is not necessary to fill in every numbered or referenced line of tax forms when the line caption calls for "Other," i.e., "Other (itemize)," "Other (specify)," "Other (attach schedule)," etc. Examples of this exception are lines 6d, 15, 19 and 31 for Schedule A Form 1040. When this occurs, you may use a supporting statement and enter only the total amount of these "Other" items on the line of the official form. However, we prefer that you use the space on the official form when it is adequate.

.03 Schedule A (Form 1040). All numbered and lettered lines must be filled in, if applicable. Supporting statements may be used to give the details of the totals entered on such lines. For example, the detailed information for "Taxes" may not be shown on a supporting statement (supplemental schedule) and only line 16 filled in. For example the details of "State and local income taxes" may be shown on a supporting statement and the total of such taxes entered on line 11. Also, lines 33 through 38 need not be filled in (they may be omitted) but the total of itemized deductions must be entered on line 39.

.04 Schedule B (Form 1040). Lines 1 and 3 need not be filled in on the form. A supporting statement may be used for the details of interest and dividend income and the appropriate totals of such income entered on lines 1b, 1d and 4 unless nominee distribution or accrued interest criteria apply. (See the tax package instructions concerning interest).

.05 Schedule C Form (1040). All lines on page 1 must be filled in when applicable except the lines where "Other expenses-specify" is listed. (See instruction in .02 above). All information for Schedule C-1 must be entered. Schedule C-2 and C-3 information may be entered on a supporting statement.

.06 Schedule E (Form 1040).

1 When there are entries on page 1 for Part I, the following requirements must be met: (1) in Part I, lines 1 and 2, the questions must be answered and tax information must be entered on the lines provided.

2 Supporting statements may be used for the details of rental and royalty income and expenses. The appropriate totals must be carried and entered in the total column for lines 3, 17, 18 and 21 through 25.

3 Part II (page 2) -- The "at risk" questions must be answered. The income and loss from various partnerships, estates or trusts, and small business corporations also may be detailed on a supporting statement, but the appropriate total income and total loss must be entered on lines 26 through 38.

.06 Form 4562 This form need not always be used to report depreciation. Instead you may use a supporting statement so long as it contains the same information as called for on the Form 4562.

.07 Schedule F (Form 1040). If the cash method is used, only page one is needed. Otherwise both pages one and two must be entirely printed.

Sec. 16. Supporting Statements

.01 Use of Supporting Statements. Supporting statements are to be used to support line entries on the official form. Unless specifically authorized by this revenue procedure (see Sec. 15), They must not be used to avoid completing required lines on the official form.

.02 Requirements for Supporting Statements. Supporting statements must: (1) provide details and explain entries made on the official form, (2) furnish all required information in the same sequence as called for on the official form, and (3) furnish any additional information in the order of appearance on the form to which it refers.

.03 Cross-Reference. Each supporting statement must be referenced to the form it supports, and the entry on the form must be cross-referenced to the supporting statement. For example, put "Statement X" on the top of the supporting statement that contains the identified line number and the supporting information, and put "See Statement X" on the line of the form that references the statement.

.04 Extent of Use. You may attach supporting statements to explain or support any line item on an official or approved substitute form.

.05 Assemblage. For filing purposes, supporting statements are not attached directly to their related forms. Rather, all supporting statements are assembled in the same sequence as the forms they support; they are then placed after the lettered and numbered forms (See Sec. 8.09).

.06 Multiple Supporting Statements. Supporting statements for each numbered or lettered tax form may be on one page or may be on multiple pages. But each numbered or lettered form must have a separate page for its supporting statement(s). Each page should be the size of the form it supports, or it may be 8" x 11" or 81/2" x 11".

.07 Not Approved. The Service does not give its approval for specific supporting statements. The taxpayer or the tax practitioner for the taxpayer, must meet the needs as they arise, using the guidelines in this revenue procedure.

Sec. 17. Specifications for Filing Substitute Forms

.01 Filing Substitute Forms. Follow the same instructions as for filing official forms. These instructions are in the taxpayer's tax package.

.02 Computer-Prepared Tax Forms. For filing purposes the Service will accept computer-prepared tax forms (i.e., Forms 1040, 1040A, 1120, 940, 941, etc.) filled in by a computer or by word-processing equipment, but these forms MUST be pre-printed.

.03 Computer-Generated Forms. For filing purposes, the Service will accept computer-generated versions of forms that are attached to individual and business income tax returns, provided the substitutes and their manner of completion meet the guidelines prescribed herein.

.04 Combination of Manually Prepared and Computer-Prepared/Generated Forms. For filing purposes, the Service will accept substitute tax forms that contain a combination of computer-prepared/generated and manually filled in information.

.05 Taxpayer and Preparer Signatures. All taxpayer signatures on forms to be filed with the Service must be original signatures, affixed subsequent to the reproduction process. However, the income tax preparer can satisfy the manual signature requirement by signing a completed income tax return form, making a photocopy of the return form, and having the taxpayer sign and file the photocopy. (See Rev. Rul. 78-370, 1978-2 C.B. 336.)

.06 Use Preaddressed Label. When filing substitute or reproduced forms, use the preaddressed label included in the tax package the Service sent to the taxpayer. Use of the label avoids larger processing costs because it reduces the potential for error--the kind of error which can delay the receipt of refund and information needed by the taxpayer. No other label may be used.

.07 Use Internal Revenue Service Envelope. When filing substitute or reproduced forms, use the envelope enclosed with the taxpayer's tax package. This envelope is coded for sorting into several categories. Use of the coded envelope can help speed up the processing and reduce processing costs. Do not use the Service-provided, tax-package envelope for other correspondence with the Service, as its misuse can delay the correspondence.

.08 Voluntarily Submitted Information. Additional information required or voluntarily submitted should be on the same size paper as the official form and attached to the return following the supporting statements. (See Sec. 8.09.)

Sec. 18. Guidance from other Revenue Procedures

.01 Rev. Proc. 82-3, (Order as Publication 1167), page 368, this Bulletin, gives guidance for the substituted tax forms covered by this revenue procedure when these substitute tax forms are privately designed and printed.

.02 Guidance for the substitute tax forms not covered in this revenue procedure and the revenue procedures which govern their use, are as follows:

Form 1040-ES -- Rev. Proc. 79-56, 1979-2, C.B. 539, not reprinted for distribution

Form 1042S -- Rev. Proc. 81-28, 1981-2 C.B. 549, order as Publication 1161

Form W-2 series -- Rev. Proc. 81-15, 1981-1 C.B. 670, order as Publication 1141

Form 1087 and 1099 series -- Rev. Proc. 79-17, 1979-1 C.B. 516, order as Publication 1091

Sec. 19. Ordering Revenue Procedures

.01 If you receive Package X, Informational Copies of Federal Tax Forms, you may use the Form 2333P, Order Blank for Revenue Procedures, contained therein to order the following revenue procedures:

Pub. 1091, the revenue procedure on magnetic tape reporting for information returns (Forms 1987 and 1099).

Pub. 1141, the revenue procedure on specification for private printing of Forms W-2, W-2P, and W-3.

Pub. 1149, the revenue procedure on magnetic tape reporting for Windfall Profit Tax (Form 6248).

Pub. 1161, the revenue procedure on reprinted paper substitutes for Form 1042S.

Pub. 1162, the revenue procedure on group exemption procedures.

Pub. 1167, the revenue procedure on reproduction requirements and substitute (printed) tax return forms and schedules.

Pub. 1168, the revenue procedure on computer-prepared and substitute computer-generated forms and schedules.

.02 The above listed revenue procedures may be obtained also by writing to: Internal Revenue Service, Revenue Procedure, P.O. Box 27322, Richmond, VA 23261. Be sure to order using Publication number.

.03 Rev. Proc. 79-56 (Form 1040-ES is not reprinted for distribution.)

Sec. 20. Ordering Reproduction Proofs

.01 The Service provides for the public camera-ready, reproduction proofs of many of its printed tax forms. These reproduction proofs can only be ordered by using Form 6747, Order for Reproduction Proofs. Form 6747 can be obtained in two ways: (1) by written request to Internal Revenue Service, RM:FM:P, Attention: Reproduction Proof Coordinator, Room 1528, 1111 Constitution Ave., N.W., Washington, D.C. 20224, or (2) by telephone request (at your expense) to the Reproduction Proof Coordinator at (202) 566-2473.

.02 Basic specifications, such as margin, pagination, etc., will be printed in the margins of the reproduction proofs and must be removed before printing. The official reproduction proof margins across the top, bottom, and sides must be maintained on all reproductions and substitute forms.

.03 A charge of $1.00 per page will be made for each reproduction proof regardless of page size. After an order has been filled, invoices will be mailed to the requestor.

Sec. 21. Agreement

Any person or company who uses substitute forms and makes all or part of the changes specified in this revenue procedure, agrees to the following stipulation: The Service presumes the changes are made in accordance with these procedures and, as such, will be noninterruptive to the processing of the tax return. Should any of the changes prove to be not exactly as described, and as a result become disruptive to the Service during processing of the tax return, the person or company agrees to accept the determination of the Service as to whether or not the form may continue to be used during the filing season, and also agrees to work with the Service in correcting noted deficiencies. Notification of deficiencies may be made by letter, phone call, or both.

Sec. 22. Conditions--Tax Forms 1040A, 1040, 1120, 940, 941, Etc.)

.01 Prohibited forms.

1 Computer-generated versions.

Computer-generated versions of the tax return (e.g. Form 1040, 1040A, 1120, 940, 941 etc.) which requires a signature are not permitted. Only preprinted substitutes of these forms are allowed.

2 Computer-generated graphics--first time users

First-time users who design substitute forms using computer-graphics (e.g. laser printing) must receive prior approval before using them. Exception: Experienced users who have previously received written approval from the Service for tax forms do not need written approval before using their forms. However, users are bound by agreement in Sec. 21.

.02 Fill-in information.

The tax form itself (i.e., 1040, 1040A, 1120, 940, 941, etc.) may be filled in by a computer printer or other similar automated equipment, but the form itself must be created beforehand (i.e. preprinted) using conventional printing methods, photocopying computer-graphics (laser printing), or other similar reproduction processes.

.03 Changes permitted to the Forms 1040 & 1040A.

1 Certain changes (listed below) are permitted to the graphics of the form without prior approval, but these changes apply only to preprinted forms as described .02 above.

2 Changes not requiring prior approval are good only for the filing period January through December 1982.

3 Other changes not listed.

All changes not listed here require prior approval from the Service Before the form may be filed with the Service.

Sec. 23. Changes Permitted to Graphics (Forms 1040A and 1040).

Changes Permitted to the Graphics on Both Form 1040 and 1040A and, Where Applicable, on Other Forms as Well for Use With computer-prepared (i.e. prnted forms Only.)

.01 Adjustments.

You may make minor vertical and horizontal spacing adjustments to allow for computer or word-processing printing. This includes widening the amount columns or tax entry areas so long as the adjustments do not exceed other provisions stated in revenue procedures. No prior approval is needed for these changes. However, the user of forms with such changes are bound by the "Agreement" in Sec. 8.

.02 Name and Address Area.

1 The horizontal rules and instructions within the name and address area may be removed and the entire area left blank; no line or instruction can remain in the area.

2 The heavy ruled border (when present) that outlines the name and address area must not be removed, relocated, expanded or contracted.

3 Required Format.

(a) When the name and address area is left blank, as provided in 1 above, the following format must be used when printing the taxpayer's name and address. Otherwise, unless the taxpayer's preprinted label is affixed over the information entered in this area, the lines must be filled-in as shown.

1st name line (35 characters maximum)

In-care-of name line (35 characters maximum)

Street address (35 characters maximum)

City, State (24 char. max.), one blank char., & zip (five char.)

(b) When there is no in-care-of name line, the name and address will consist of only three lines. Examples of the formats follow:

     Example of name and address with NO in-care-of name line:

(d) The only label that may be used is the official Internal Revenue Service label supplied to the taxpayer in his/her tax package. Please use the official Internal Revenue Service supplied label to help reduce errors.

(e) For identification purposes, you may computer print the taxpayer's name and address on the form and afterward affix the official Internal Revenue Service supplied label over the computer printed address. This applies whether or not the horizontal rules and the instructions have been removed from the address area.

.03 Social Security Number (SSN) and Employer Identification Number (EIN) Area.

1 The vertical lines separating the format arrangement of the SSN/EIN may be removed.

2 When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 or 00-0000000, respectively.

.04 Cents Columns.

1 You may remove the vertical rule that separates the dollars from the cents.

2 All entries in the amount column must have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present.

3 You may omit printing the cents, but all amounts entered on the form must follow a consistent format. You are strongly urged to round off the figures to whole dollar amounts.

4 When printing money amounts, you must use one of the following ten-character formats:

(a) 0,000,000.

(b) 000,000.00

5 When there is no entry for a line, leave the line blank.

.05 "Paid Preparer's Use Only" Area

1 On all forms, where present, the paid preparer's information area may not be rearranged or relocated.

2 You may add three lines and remove the horizontal rules in the preparer's address area. Sec. 24. Changes Permitted to Form 1040A Graphics

(for use with computer-printed forms only). No prior approval is needed for the following changes.

.01 Line 4.

The line caption may be compressed vertically to one line (to allow for same line entry for the name of the qualifying unmarried child) by using the following caption:

"Head of household; unmarried child's name . . . . . ." name field

.02 Line 5c.

To allow for a two-line field for printing dependent children's names, you may shorten the caption to:

"Dep. children" (names field) (names field )

.03 Line 5d.

1 The vertical lines separating columns (1) through (5) may be removed.

2 The number of lines for listing "other dependents" may be expanded to a maximum of 5.

3 Column captions may be shortened to one line descriptions.

.04 Line 9a (and 9b).

These lines may be changed to allow larger amount entry fields by removing references to instructions.

.05 Line 10.

This line may be vertically compressed to one line by using the following caption:

"Adj Gross Income"

.06 Other Lines.

Any other line whose caption takes up two or more vertical lines may be compressed to one line by using contractions etc. and by removing instructional references.

.07 Page 2 (Form 1040A).

Lines for entries on 1a, c and 3 may be expanded to completely fill the remaining vertical page space. Sec. 25. Other Changes Prohibited

No other changes to the Form 1040a graphics are allowed without prior approval.

Sec. 26. Changes Permitted to the Form 1040 Graphics (For Use with Computer-Prepared Forms Only)

No prior approval is needed for the following changes:

.01 Line 4.

This line may be compressed horizontally (to allow for a larger entry area for the name of the qualifying unmarried child) by using the following caption:

"Head of household; unmarried child's name" (name field)

.02 Line 6c.

To allow for a two-line field for printing dependent children's names you may shorten the caption to:

"Dep. children" (names field) (names field )

.03 Line 6d.

1 The vertical lines separating columns (1) through (5) may be removed. The captions may be shortened to allow a one-line caption for each column.

2 The number of lines for listing "other dependents" may be expanded to a maximum of 5 by compressing other noted areas and lines.

.04 Other Lines.

Any other line whose caption takes up two or more vertical lines may be compressed to one line by using contractions, etc., and by removing instructional references.

.05 Line 20.

1 This line may be expanded vertically to a maximum of 4 lines.

2 The amount entry box must remain a single entry and the cross hatched shading must extend down the numbered line box to the same number of lines you add.

.06 Line 35. You may change the line caption to read "Tax" and computer-print either the words "from tax tables:" or "from schedule/form" and computer-print the appropriate text.

.09 Line 36.

You may change the caption to read:

"Additional taxes from Form/Section" and computer-print only the form(s) or/and section number that apply.

Sec. 27. Other Changes Prohibited

No other changes to the form 1040 graphics are permitted without prior approval.

Sec. 28. Acceptable Formats of Computer-Generated Forms and Schedules

1 Exhibits of acceptable computer-generated formats for the schedules usually attached to the Form 1040 are shown in the Exhibits section of this revenue procedure.

2 Use of Acceptable Formats. If your computer-generated forms appear exactly like the exhibits, no prior authorization is needed.

3 Changes to exhibits not permitted without prior approval. Any change to the text or format of any of the exhibits requires prior written approval.

Sec. 29. Computer-Generated Forms

Not Shown as Exhibits in this Revenue Procedure

.01 Those desiring to computer-generate forms not shown here may do so, but they must design such forms themselves by following the manner and style of those in the Exhibits section of this publication and by taking care to observe other requirements and conditions stated here.

.02 Computer-generated forms so designed do not require prior approval from the Service. However, the user of such forms is bound by the "Agreement" in Sec. 21 above.

.03 If you wish, you may submit any substitute form to the Service for approval consideration.

Sec. 30. Instructions for Preparing Computer-Generated Substitutes

.01 Format Arrangement.

The format of each substitute schedule must follow the format of the official schedule as to OMB number item caption, line reference, line numbers, sequence, form arrangement and format, etc. Basically try to make the form look like the official one, with readability being a primary factor. Use periods and/or other special characters to separate the various parts and sections of the form. With the exceptions in .02 below, all line numbers and items must be printed even though an amount is not entered on the line.

.02 Line Numbers.

1 When a line on an official form is designated by a number or a letter, that designation (reference code) must be used on a computer-generated substitute form.

2 The reference code must be printed to the left of the corresponding captioned line and also immediately preceding the data field even if there is no reference code immediately preceding the data field on the official form.

3 In addition, the reference code that is immediately before the data field must either be followed by a period or enclosed in parentheses. There also must be at least two blank spaces between the period or the right parentheses and the first character of the data field. (See example below.)

4 A decimal point (i.e., a period) must be used for each money amount regardless of whether the amount is reported in dollars and cents or in whole dollars, or whether or not the vertical line that separates the dollars from the cents is present. The decimal points must be vertically aligned when possible.

           Example:

.04 Exception to Forms that must be entirely printed in whole or in part. Schedule F. Depending on which accounting method is used, cash or accrual, the following will apply. If the cash accounting method is used only page one needs to be printed. Otherwise both page one and two must be entirely printed.

Sec. 31. Additional Instructions for All Forms

.01 Internal control numbers and identifying symbols of the computer preparer may be shown on the substitute, if the use of such manners or symbols is acceptable to the taxpayer and the taxpayer's representative. If shown, such information must not be printed in the top one-half inch clear area, from the center to the right edge, of any form or schedule requiring a signature. With the exception of the actual tax return form (i.e. Forms 1040, 1120, 940, 941, etc.), you may also print in the left vertical and bottom left margins. The bottom left margin you may use extends 31/2 inches from the left edge of the form. (See Sec. 12 for more information on this subject.)

.02 Descriptions for captions, lines etc., appearing on the substitute forms may be limited to one print line by using abbreviations and contractions and by omitting articles, prepositions, etc. However, sufficient key words must be retained to permit ready identification of the caption, line or item.

1 Explanatory detail and/or intermediate calculations for derivation of fine line totals, may be included on the substitute. We prefer that such calculations be submitted in the form of a supporting statement. If intermediate calculations are included on the substitute, the lines on which they appear may not be numbered or lettered. Intermediate calculations may not be printed in the right column. This column is reserved for official numbered and lettered lines that correspond to the ones on the official form. If a supporting statement is submitted, intermediate calculations or subtotals may be formatted at the preparer's option.

2 Text prescribed for the official form, which is solely instructional in nature, e.g., "Attach this schedule to Form 1040," "See instructions," etc., may be omitted from the substitute form.

3 Information for more than one schedule may not be shown on the same printout page without prior approval from the Service. Except for computer-generated Schedules A and B (Form 1040), almost any form may be continued on two or more pages if necessary. When a form is continued on two or more pages, clearly identify at the bottom of each page, including page 1, that is continued, e.g., "page 1, Schedule C continued." It is strongly recommended that a substitute form not exceed the same number of pages used for the official form.

4 Identify all computer-prepared substitutes clearly; print the form designation one-half inch from the top margin and one and one-half inches from the left margin; print the title centered on the first line of print; and print the taxable year and, where applicable, the sequence number on the same line one-half to one inch from right margin. Include the taxpayer's name and SSN on all forms and attachments. Also print the OMB number and (when applicable) the forms expiration date.

5 The state tax column may be present, but the state tax information must not be visible on the copy filed with the Service. When a form is designed with both federal and state columns, the federal column must be to the left of the state column and adjacent to the line caption.

6 Attach all schedules in alphabetical order and forms in numerical order followed by supporting statements. The sequence of information on supporting statements must be the same order as the items appear on the form(s) to which it is referenced. It would be helpful if you would voluntarily attach the schedules and forms to the return in ascending sequence number order, followed by other numbered forms and then supporting statements.

7 Attach all payments (check or money order, no cash) to the front of the tax return.

Sec. 32. Filing Substitute Forms With IRS

Follow the same instructions as for filing official forms. These instructions are in the taxpayer's tax package.

Sec. 33. Effect on Other Documents

This revenue procedure supersedes Rev. Proc. 80-48, 1980-2 C.B. 792.

[Editor's note: Exhibits CG-A1 through CG-SE depict examples of preferred and acceptable formats for the substitute, computer generated IRS Forms discussed above. These illustrations are not suitable for electronic reproduction.]