Rev. Proc. 79-57

Section 1. Purpose

This Revenue Procedure restates the requirements of the Internal Revenue Service relating to the preparation of acceptable reproductions and private design and printing of substitute federal tax return forms and schedules for filing purposes in place of the official forms and schedules. Rev. Proc. 78-29, 1978-2 C.B. 526 is superseded.

Sec. 2. Definitions

.01 Definitions Used in This Publication (Relating to Tax Forms)

Substitute Form--A tax form or related form or schedule that differs in any way from the official version that is printed and distributed by IRS. This term also covers those approved substitute formats and forms described in this Revenue Procedure. (A photocopy of an official form or a copy produced from an unchanged Reproduction Proof, supplied by IRS, is not a substitute form.)

Computer-prepared Form--A preprinted 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.

Manually Prepared Form--A preprinted form in which the taxpayer's name, address and tax entry information is entered by an individual using a pen pencil, typewriter or other non-automated equipment.

Computer-generated Tax Forms and Schedules--A document that is entirely prepared by the use of a computer printing device so that all the line numbers, line captions, and the tax amount data entries are in the same type face. No graphics appear on the form.

Graphics--Those parts of the tax form that are not the tax amount entries, or called-for information. Generally, these are line numbers, captions, instructions, lines and borders, special indicators, lines or strokes created by type-setting, photo-graphics, photo-composition, etc.

Printed Forms--A form produced using conventional printing processes, photocopying, or other similar processes.

Pre-printed Pin-fed Form--A form printed beforehand by conventional methods on paper that has marginal perforations for use with automated and high-speed printing equipment.

Sec. 3. Summary of Contents

MESSAGE TO TAX RETURN PREPARERS

IF YOU PLAN TO CHANGE OR MODIFY ANY TAX FORMS YOU MUST FOLLOW THESE INTERNAL REVENUE PROCEDURES AND IN MOST CASES, YOU MUST GET OFFICIAL APPROVAL BEFORE USING SUBSTITUTE FORMS.

IRS NOW HAS A NATIONWIDE PROGRAM TO IDENTIFY AND CONTACT TAX RETURN PREPARERS USING NON-APPROVED FORMS.

Additional information you may also need is contained in Rev. Proc. 79-58, page 22, this Bulletin. You can get this procedure by (1) ordering it on the form provided in Package X, Information Copies of Federal Income Tax Forms, or by writing to: IRS REV. PROC., P.O. Box 611, Beltsville, Md. 20705. They are also obtainable at your IRS District Office.

THINGS YOU CAN DO TO IRS PRINTED TAX FORMS

-- You can PHOTOCOPY any federal tax form or schedule, and use it instead of the official one.

-- You can REPRODUCE ANY CURRENT tax form or schedule in the form of cut sheets, snap-sets, marginally-punched pin-fed forms, so long as you use an official IRS version as the master copy. An official version is one supplied by IRS, such as those in the taxpayer's tax package, those in Package X, and reproduction proofs (sold by IRS).

-- You can ADJUST the graphics on certain specified areas of printed Forms 1040 and 1040A to allow for computer-printed or word processor fill-in. Only the areas listed in Revenue Procedure 79-58 may be changed.

-- You can PRINT AND DUPLICATE the substitute "worksheet-type" versions of Schedules A and B (see exhibits section) for use when you need a "worksheet". IRS 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 blocked-out before submission to IRS. The other allows the form to be used singly or as part of a snap-set.

THINGS YOU CAN NOT DO TO IRS PRINTED TAX FORMS

-- You cannot change any IRS tax form or use your own version without prior IRS approval.

-- You cannot change any of the graphics on Forms 1040 and 1040A (except those specified in Revenue Procedures) without prior approval from IRS.

-- You cannot use your own version of Schedules A (Itemized Deductions) UNLESS YOU FIRST GET IT APPROVED. When using attachments to the official Schedule A, You must COMPLETELY FILL OUT ALL THE LINES OF THE OFFICIAL SCHEDULE A; not just the total lines, but the line items that make up the totals as well. IRS wants only one Schedule A--either yours or an Official version; yours needs prior approval from IRS.

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

-- Other items are also not permitted. Please read the rest of this Revenue Procedures for details.

Sec. 4. Specifications for Filing Substitute Forms

.01 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 processor equipment, but these forms MUST be preprinted.

.02 Computer-generated Schedules and Forms

For filing purposes, the Service will accept computer-generated versions of schedules and forms that are attached to individual and business income tax returns, provided they meet the requirements prescribed in Rev. Proc. 79-58.

.03 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 manual fill-in information.

.04 Substitute Schedules K-1

Prior approval is NOT required for Schedule K-1's that accompany Forms 1065, Partnerships, 1120-S, Small Business, and 1041, Fiduciary Return, when the K-1's meet the following requirements:

(a) The K-1 needs to contain only the line items required for use by the taxpayer.

(b) These line items must be in the same order and arrangement as the official form,

(c) the line items must be numbered, titled and/or captioned exactly as shown on the official form, and

(d) Each taxpayer's information must be on a separate piece of paper.

Sec. 5. Approval Information

.01 Approvals

(a) Guidelines--Preparers who desire to file privately designed and printed substitute tax forms and related schedules must develop such substitutes using these guidelines and those contained in Rev. Proc. 79-58, and must obtain approval from IRS before the forms are filed.

(b) Changes to Tax Forms--Any person making changes to any tax form or schedule (EXCEPT THOSE STATED IN THIS PUBLICATION) must obtain approval from the Service before filing the substitute.

(c) Mailing Address -- Proposed substitutes should be forwarded by letter to the Commissioner of Internal Revenue, Attention: Substitute Forms Program, TX:R:I, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

(d) When to Submit--Proposed substitutes should be sent to the address listed in (c), 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. Quarterly filed forms, such as the Form 941, must be submitted by the first day of the last month of the quarter.

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

(f) Approval letter--Upon determination that approval can be given, IRS sends a formal letter of approval which also may contain qualifications for the substitutes's use.

(g) Duration of Approval--Approvals, when granted, 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.

PLEASE NOTE: Each new filing season requires a new approval, even if the official form does not change.

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

(h) Required Copies--Once an approval is granted for the use of a substitute form, you may be requested to send to IRS eleven (11) copies of each approved form.

Sec. 6. Physical Aspects and Requirements

.01 Printing Medium

The private printing of these substitutes must be produced by conventional printing processes, photocopying or other similar reproduction process.

(a) Remove Government Printing Office Symbol--When privately printing a tax form the Government Printing Office symbol and jacket numbers must be removed, and in its place (using the same type size):

(b) Print the Employer Identifying Number (EIN) of the printer or the Social Security Number (SSN) of the form designer.

.02 Paper Requirements

The paper must be chemical wood writing that is equal to or better than the quality used for the official forms.

(a) Official tax forms are printed on 18 pound (17" X 22", 500 sheets) white, chemical wood writing paper or;

(b) 45 pound offset white (25" X 38", 500 Sheets).

(c) The thickness of the stock cannot be less than 0.0030 inch.

.03 Prohibited Paper -- Carbon bonded paper is prohibited from use for forms and schedules filed with the Service.

.04 Chemical Transfer Paper--LIMITED USE

Chemical transfer paper may be used ONLY when the following specifications are met:

(a) Each ply within the chemical transfer set of forms or schedules must be labeled.

(b) 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 IRS"; Ply two (coated front and back), "Taxpayer's copy"; and Ply three (coated front), "Preparer's copy."

(c) The file designation, "Federal Return, File with IRS," for ply one must be placed vertically in the left-hand one-half inch margin area at least three inches from the top of each individual form or schedule. It is not mandatory, but recommended, that the file designation, "Federal Return, File with IRS," be printed using a contrasting ink to be clearly visible to the taxpayer.

.05 Paper and Ink Color--The color of paper and ink must substantially duplicate that of the original form in order to be accepted. This means that your substitute must be printed in black ink and on the color paper the IRS form is printed on. An exception to this rule is that Forms 1040A and 1040 reproductions may be in black ink without the colored screening. Any additional exceptions to this rule require written approval from IRS.

.06 Legibility--Reproductions must have a high standard of legibility, both as to original form and as to fill-in matter. The Service reserves the right to reject any reproductions with poor legibility.

.07 Size of Page--Reproductions and privately designed and printed 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").

.08 Image Size and Text Removal--The image size of printed material should be as close as possible to that of the official form. You may omit any text that is solely instructional in nature.

.09 Marginal Printing -- Limited Area--You may print your logo, company or firm name, identifying and collation symbols, etc., in the top left margin of any IRS form. The area you may use extends vertically from the top of the form's title designation to the top of the form and horizontally three and one-half (3 and 1/2) inches from the left edge. No printing is permitted in the top right hand margin.

Sec. 7. Approved Substitute Formats For Form 1040 Schedules A and B

.01 Schedules A and B (Form 1040)

(a) Exhibits of Approved Formats--There are two sets of exhibits (Exhibits A1 & B1 and A2 & B2) shown in this publication. They are acceptable substitutes for the official forms. Both sets are usable for manual entry or computer prepared preparation. (Vertical spacing is six (6) lines to the inch).

.02 Duplication of Exhibits A1 & A2 and B1 & B2

(a) You are permitted to duplicate these exhibits photographically or using photo-reproduction techniques, PROVIDING YOUR PRINTED IMAGES ARE EXACTLY LIKE THE ONES IN THE EXHIBITS. WITH THE EXCEPTION NOTED BELOW, NOTHING CAN BE CHANGED. Please note: IRS does NOT supply Reproduction Proofs for these exhibits.

.03 Use of Duplicated Exhibits

(a) If your forms are EXACT DUPLICATES of these exhibits, THEY MAY BE USED WITHOUT PRIOR AUTHORIZATION.

(b) SIZE OF EXHIBITS--The exhibits are shown at 92% of actual size. These substitutes must be restored to their original size during your reproduction process.

ANY CHANGES TO THE FORMAT, CAPTIONS, SPACING, ARRANGEMENT AND/OR POSITION OF THE VARIOUS CATEGORIES, ETC., OF THESE EXHIBITS REQUIRES PRIOR APPROVAL.

EXCEPTION--The areas in the Exhibits A1 and A2 identified by the circled numbers 1 through 9 may be changed as follows. The areas inside the perimeter of the boxes containing the dash-leaders, i.e., ----, (designated by the circled numbers), may be used to print any particular deduction item associated with the corresponding deduction category. You may remove the dash-leaders if you wish. YOU MAY NOT CHANGE THE AMOUNT COLUMN BOX SIZE OR POSITION. Strip out the circled numbers before use.

(c) Exhibit A1. This substitute Schedule A format may be used as a single sheet or as one of the copies of a snap-set. It is designed to be used in place of the official Schedule A (Form 1040).

(d) Exhibit A2. This substitute Schedule A format may be used as a single sheet when both Federal and State tax information is placed on the same form.

NO STATE TAX INFORMATION CAN APPEAR ON THESE FORMS WHEN FILED WITH THE FORM 1040. THE STATE TAX INFORMATION MUST BE BLOCKED OUT.

(e) Exhibits B1 and B2. These exhibits correspond to Exhibits A1 and A2 and the same provisions in (c) and (d) apply. Both of these exhibits are acceptable for use in place of the official Schedule B (Form 1040). Both are designed for either manual or computer-generated entries.

(f) Exhibits A1 and B1 or A2 and B2. These exhibits must be used as sets when the return calls for both Schedules A and B. PLEASE NOTE: DO NOT USE BOTH THESE SUBSTITUTES AND THE OFFICIAL VERSIONS. USE ONE OR THE OTHER.

(g) BLOCK OUT METHOD. A suggested method to block out the state tax information is: (1) place the substitute form in a clear plastic folder. (2) On the folder place a strip of opaque material the exact width and length of the column you wish to block out. Then, (3) photocopy the substitute form while still in the folder. The result will be a form with only the Federal tax information visible.

Sec. 8. Other Considerations

(a) 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 and schedules.

(b) Required Preparation of Forms--You must completely fill out all the lines on official forms (NOT JUST THE TOTALS, BUT ALL THE LINES THAT MAKE UP THE TOTALS AS WELL) before attaching any supporting statement or your own version of any form. IRS processes the return based on information entered on the official or approved versions of the tax forms. References are made to attachments ONLY AS required by law and as processing requirements direct. When you fail to complete all the lines on the official forms, IRS 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.

IRS NOW HAS A NATIONWIDE PROGRAM TO NOTIFY PREPARERS WHO FAIL TO MEET THIS REQUIREMENT.

(c) Supporting Statements.

You may attach supporting statements to explain or support any line item on an official or approved form. Supporting statements must provide detail and explain entries made on the official form or schedule, must furnish all required information in the same sequence as called for on the official forms or schedules, and must be attached to the form or schedule in the same order as the entries appear on the official forms or schedules. THEIR USE MUST BE TO SUPPORT LINE ENTRIES ON THE OFFICIAL FORM AND NOT TO AVOID COMPLETING ALL THE LINES ON THE OFFICIAL FORM.

(d) Printing On One Side of Paper.

While it is preferred that both sides of the paper be used in making reproductions, 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 or if the reproduction has a different fold from that provided on the official form.

(e) Paid Preparer's Information and Signature Area.

On both Forms 1040A and 1040, the Paid Preparer's Information area may not be rearranged or relocated. An exact facsimile must appear on Page 1 of Form 1040A and page 2 of Form 1040. This applies to other tax forms as well.

(f) Use Preaddressed Label--When filing reproduced or privately printed Federal tax returns and related schedules, use the preaddressed label furnished to the taxpayer in the tax package by the Service on the copy that is to be filed with the Internal Revenue Service. 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.

(g) State Tax Information Prohibited.

State tax information must not appear on the Federal tax return which is filed with the Internal Revenue Service Center, except where amounts are claimed as a State tax deduction, e.g., line 11, Schedule A (Form 1040).

(h) Use IRS Envelope--When filing reproduced or privately printed Federal tax returns and related schedules, 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 could delay the correspondence.

(i) Filing Substitute Forms.

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

(j) Voluntarily Submitted Information.

Additional information required or voluntarily submitted should be on the same size paper as the official form and attached to the back of the form to which it relates.

Sec. 9. Reproduction Proofs

Camera-ready, reproduction-quality, proof copies of many of the tax forms issued by IRS are available to the public. Order blanks for reproduction proofs will be mailed to requestors of record and, on request, to prospective users. Printers and others wishing to obtain reproduction proofs may send their requests to the Internal Revenue Service, Attention: Publishing Services, RM:FM:P, Room 1528, 1111 Constitution Avenue, N.W., Washington, D.C. 20224.

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 privately printed Federal tax returns and related schedules.

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. 10. Additional Instructions

.01 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 and schedules satisfy the conditions stated in these Revenue Procedures.

.02 Taxpayer and Preparer Signatures

All taxpayer signatures on forms to be filed with the Internal Revenue Service must be original signatures, affixed subsequent to the reproduction process. However, the income tax preparer can satisfy the requirement that he/she manually sign the return if he/she signs a completed income tax return form, makes a photocopy of the return form, and has the taxpayer sign and file the photocopy. (See Rev. Rul. 78-370, 1978-2 C.B. 336.)

.03 Requests for Approvals

When specific approval of a reproduction of any form or schedule is desired, or if the use of a reproduction of any form or schedule is not listed or specified herein or otherwise specifically authorized, a sample of the proposed reproduction should be forwarded, by letter, to the Commissioner of Internal Revenue, Attention: Substitute Forms Program, TX:R:I, 1111 Constitution Avenue, N.W., Washington, D.C. 20224, for consideration. When copies of privately designed forms or schedules are submitted for approval, please follow the instructions listed near the beginning of this Revenue Procedure.

Sec. 11. Effect on Other Documents

This Revenue Procedure supersedes Rev. Proc. 78-29.

Sec. 12. Exhibits Section

Exhibits shown in this section are acceptable substitutes for official schedules and are intended to be used in place of their corresponding official schedules. No prior approval is needed before using them so long as all other requirements in this Procedure are met.

[Editor's note: Exhibits A-1 through B-2 depict examples of preferred and acceptable formats for the substitute, computer generated IRS Forms discussed above. These illustrations are not suitable for electronic reproduction.]