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SERVICE PROVIDES GUIDELINES FOR FILING 1990 INFORMATION RETURNS ON MAGNETIC DISKETTES.

AUG. 6, 1990

Rev. Proc. 90-43; 1990-2 C.B. 420

DATED AUG. 6, 1990
DOCUMENT ATTRIBUTES
Citations: Rev. Proc. 90-43; 1990-2 C.B. 420

Obsoleted by Rev. Proc. 91-33

Rev. Proc. 90-43

                          TABLE OF CONTENTS

 

 

PART A. -- GENERAL

 

 

     SECTION 1. PURPOSE

 

     SECTION 2. NATURE OF CHANGES -- CURRENT YEAR (TAX YEAR 1990)

 

     SECTION 3. HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER

 

     SECTION 4. FILING REQUIREMENTS

 

     SECTION 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION

 

                RETURNS ON MAGNETIC MEDIA

 

     SECTION 6. VENDOR LIST

 

     SECTION 7. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS

 

                MAGNETICALLY/ELECTRONICALLY

 

     SECTION 8. TEST FILES

 

     SECTION 9. FILING OF MAGNETIC MEDIA REPORTS AND RETENTION

 

                REQUIREMENTS

 

     SECTION 10. FILING DATES

 

     SECTION 11. EXTENSIONS OF TIME TO FILE

 

     SECTION 12. PROCESSING OF MAGNETIC MEDIA RETURNS

 

     SECTION 13. HOW TO FILE CORRECTED RETURNS

 

     SECTION 14. TAXPAYER IDENTIFICATION NUMBER (TIN)

 

     SECTION 15. EFFECT ON PAPER RETURNS

 

     SECTION 16. COMBINED FEDERAL/STATE FILING PROGRAM

 

     SECTION 17. DEFINITION OF TERMS

 

     SECTION 18. STATE ABBREVIATIONS

 

     SECTION 19. MAJOR PROBLEMS ENCOUNTERED

 

 

PART B. -- SINGLE DENSITY DISKETTE SPECIFICATIONS

 

 

     SECTION 1. GENERAL

 

     SECTION 2. DISKETTE HEADER LABEL

 

     SECTION 3. PAYER/TRANSMITTER "A" RECORD

 

     SECTION 4. PAYER/TRANSMITTER "A" RECORD LAYOUT

 

     SECTION 5. PAYEE "B" RECORD -- GENERAL INFORMATION FOR ALL FORMS

 

     SECTION 6. PAYEE "B" RECORD -- FIELD DESCRIPTIONS FOR SECTORS 1

 

                THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1

 

                THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S,

 

                AND W-2G

 

     SECTION 7. PAYEE "B" RECORD -- RECORD LAYOUTS FOR SECTORS 1

 

                THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1

 

                THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S

 

                AND W-2G

 

     SECTION 8. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                LAYOUT FOR SECTOR 4 OF FORM 1099-A

 

     SECTION 9. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                LAYOUT FOR SECTOR 4 OF FORM 1099-B

 

     SECTION 10. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-OID

 

     SECTION 11. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM 1099-S

 

     SECTION 12. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 4 OF FORM W-2G

 

     SECTION 13. END OF PAYER "C" RECORD

 

     SECTION 14. STATE TOTALS "K" RECORD

 

     SECTION 15. END OF TRANSMISSION "F" RECORD

 

 

PART C. -- DOUBLE DENSITY DISKETTE SPECIFICATIONS

 

 

     SECTION 1. GENERAL

 

     SECTION 2. PAYER/TRANSMITTER "A" RECORD

 

     SECTION 3. PAYER/TRANSMITTER "A" RECORD -- RECORD LAYOUT

 

     SECTION 4. PAYEE "B" RECORD -- GENERAL INFORMATION FOR ALL FORMS

 

     SECTION 5. PAYEE "B" RECORD -- FIELD DESCRIPTIONS FOR SECTORS 1

 

                AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT,

 

                1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF

 

                FORMS 1099-A, 1099-B, 1099-OID, 1099-S, AND W-2G

 

     SECTION 6. PAYEE "B" RECORD -- RECORD LAYOUTS FOR SECTORS 1 AND 2

 

                OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC,

 

                1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A,

 

                1099-B, 1099-OID, 1099-S, AND W-2G

 

     SECTION 7. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                LAYOUT FOR SECTOR 2 OF FORM 1099-A

 

     SECTION 8. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                LAYOUT FOR SECTOR 2 OF FORM 1099-B

 

     SECTION 9. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                LAYOUT FOR SECTOR 2 OF FORM 1099-OID

 

     SECTION 10. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM 1099-S

 

     SECTION 11. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD

 

                 LAYOUT FOR SECTOR 2 OF FORM W-2G

 

     SECTION 12. END OF PAYER "C" RECORD

 

     SECTION 13. STATE TOTALS "K" RECORD

 

     SECTION 14. END OF TRANSMISSION "F" RECORD

 

 

PART D. -- MISCELLANEOUS INFORMATION

 

 

     SECTION 1. MAGNETIC MEDIA RELATED FORMS AND PUBLICATIONS

 

                AVAILABLE AT THE IRS MARTINSBURG COMPUTING CENTER

 

     SECTION 2. FEDERAL DOLLAR CRITERIA

 

 

NOTE: THIS REVENUE PROCEDURE MAY ONLY BE USED TO PREPARE 8 INCH MAGNETIC DISKETTE FILED SUBMISSIONS FOR TAX YEAR 1990 INFORMATION RETURNS TO INTERNAL REVENUE SERVICE (IRS). UPDATED COPIES ARE PUBLISHED EACH YEAR. PLEASE READ THIS PUBLICATION CAREFULLY. PERSONS REQUIRED TO FILE MAY BE SUBJECT TO A FAILURE TO FILE PENALTY IF THEY DO NOT FOLLOW THE INSTRUCTIONS IN THIS REVENUE PROCEDURE OR FOR FAILURE TO INCLUDE CORRECT INFORMATION. THE REVENUE RECONCILIATION ACT OF 1989 HAS CHANGED THE PENALTY PROVISIONS AND SOME OF THE MAGNETIC MEDIA FILING REQUIREMENTS FOR INFORMATION RETURN REPORTING. FOR FURTHER INFORMATION, PLEASE READ THE CHAPTERS CONCERNING "NATURE OF CHANGES," AND "FILING REQUIREMENTS."

PART A. -- GENERAL

SECTION 1. PURPOSE

.01 The purpose of this revenue procedure is to provide the requirements and conditions for filing Forms 1098, 1099, 5498, and W-2G on 8 inch magnetic diskette to Internal Revenue Service (IRS). Publication 1220, "Specifications for Filing Forms 1098, 1099 Series, 5498, and W-2G Electronically or on Magnetic Tape, Tape Cartridge, 5 1/4 and 3 1/2 Inch Diskettes," contains instructions for filing information returns both electronically, and on certain types of magnetic media, and is not to be used for formatting 8 inch diskettes. THIS REVENUE PROCEDURE IS TO BE USED FOR THE PREPARATION OF 8 INCH DISKETTES FOR 1990 INFORMATION RETURNS ONLY. THIS PROCEDURE IS UPDATED YEARLY TO REFLECT NECESSARY CHANGES. PLEASE READ THIS PUBLICATION CAREFULLY. IF THERE ARE ANY QUESTIONS CONCERNING YOUR FILING, YOU MAY CONTACT THE INTERNAL REVENUE SERVICE (IRS) MARTINSBURG COMPUTING CENTER (MCC) FOR CLARIFICATION. (See Part A, Sec. 3 for address and telephone number.) Specifications for filing the following forms are contained in this procedure:

(a) Form 1098, Mortgage Interest Statement.

(b) Form 1099-A, Information Return for Acquisition or Abandonment of Secured Property.

(c) Form 1099-B, Statement for Recipients of Proceeds From Broker and Barter Exchange Transactions.

(d) Form 1099-DIV, Statement for Recipients of Dividends and Distributions.

(e) Form 1099-G, Statement for Recipients of Certain Government Payments.

(f) Form 1099-INT, Statement for Recipients of Interest Income.

(g) Form 1099-MISC, Statement for Recipients of Miscellaneous Income.

(h) Form 1099-OID, Statement for Recipients of Original Issue Discount.

(i) Form 1099-PATR, Statement for Recipients (Patrons) of Taxable Distributions Received From Cooperatives.

(j) Form 1099-R, Statement for Recipients of Total Distributions From Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, Etc.

(k) Form 1099-S, Statement for Recipients of Proceeds from Real Estate Transactions.

(l) Form 5498, Individual Retirement Arrangement Information.

(m) Form W-2G, Statement for Recipients of Certain Gambling Winnings.

.02 Specifications for filing Forms 1042S and 8027 are contained in separate IRS publications. Specifications for filing Forms W-2 and W-2P on magnetic media are available from the Social Security Administration (SSA) ONLY.

.03 In most cases, the box numbers on the paper forms correspond with the amount codes used to file on magnetic media; however, if discrepancies occur, the instructions in this revenue procedure govern.

.04 The IRS/MCC has the responsibility for processing information returns filed on magnetic media. These information returns include Forms 1098, 1099 series, 5498, and W-2G.

IRS/MCC does NOT process Forms W-2 and W-2P; these forms are to be sent to SSA whether you file paper OR magnetic media returns.

IRS/MCC does, however, process magnetic media waiver requests and extension of time requests for Forms W-2/W-2P.

Therefore, contact IRS/MCC with questions concerning Forms W-2 and W-2P ONLY IF THE QUESTIONS PERTAIN TO AN EXTENSION OF TIME TO FILE ON PAPER OR MAGNETIC MEDIA OR MAGNETIC MEDIA WAIVER REQUEST. Questions pertaining to magnetic media filing of forms W-2 or W-2P MUST be directed to SSA. TAX LAW QUESTIONS PERTAINING TO FORMS W-2 OR W-2P SHOULD BE DIRECTED TO IRS TAXPAYER SERVICE at 1-800-424-1040 (1-800-829-1040 after September 30, 1990), or to your local IRS office.

If you contact IRS/MCC with questions concerning Forms W-2/W-2P, and the questions are not pertaining to extensions of time or waivers for Forms W-2/W-2P, we will direct you to either SSA or IRS Taxpayer Service.

.05 Personnel at the IRS/MCC are equipped to answer any questions you may have concerning the magnetic media filing of information returns. Tax law related questions should be directed to IRS Taxpayer Service at 1-800-424-1040 (1-800-829-1040 after September 30, 1990).

.06 This revenue procedure also provides the requirements and specifications for filing 8 inch magnetic diskettes under the Combined Federal/State Filing Program. (Refer to Part A, Sec. 16.)

.07 The following revenue procedures and publications provide more detailed filing procedures for certain information returns:

(a) 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G," provides specific instructions on completing and submitting information returns to IRS. IRS/MCC includes this publication in the magnetic media reporting packages that are mailed to the transmitters who participate in the Magnetic Media Reporting Program (MMRP). These instructions are also available from IRS offices and can be obtained by contacting your local office or by calling 1-800-424-FORM (1-800-829-FORM after September 30, 1990).

(b) Rev. Proc. 84-33, 1984-1 C.B. 502, or other current revenue procedure, regarding the optional method for agents to report and deposit backup withholding.

(c) Publication 1179, Specifications for Paper Document Reporting and Paper Substitutes for Forms 1096, 1098, 1099, 5498 and W-2G.

(d) Publication 1239, Requirements and Conditions for Submitting Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on Magnetic Tape.

(e) Publication 1187, Requirements and Conditions for Filing Form 1042S, Foreign Persons U.S. Source Income Subject to Withholding, on Magnetic Tape.

(f) Publication 1245, Magnetic Tape Reporting for Forms W-4.

(g) Publication 1220, Specifications for Filing Forms 1098, 1099 Series, 5498, and W-2G Electronically or on Magnetic Tape, Tape Cartridge, 5 1/4 and 3 1/2 inch diskettes.

.08 This procedure supersedes the following:

Rev. Proc. 89-44 published in Publication 1255 (Rev. 7-89) [1989-2 C.B. 532], Requirements and Conditions for Filing Forms 1098, 1099, 5498 and W-2G series on 8 Inch Magnetic Diskette.

.09 Refer to Part A, Sec. 17 for definitions of terms used in this publication.

SEC. 2. NATURE OF CHANGES -- CURRENT YEAR (TAX YEAR 1990)

.01 PROGRAMMING CHANGES -- PART B -- "Magnetic Media Specifications"

Payer/Transmitter "A" Record:

Field Positions 3-4 -- "Payment Year" -- must be incremented by one year (from 89 to 90).

Payee "B" Record:

(a) Field Positions 3-4 -- "Payment Year" -- must be incremented by one year (from 89 to 90).

(b) Field Positions 5-6 -- "Document Specific Code"

The following categories for Form 1099-R Distribution Codes will now be:

(1) "Early (premature) distribution, no known exception" -- Code 1

(2) "Early (premature) distribution, exception applies (as defined in section 72(q), (t), or (v))" -- Code 2

(3) "Section 1035 exchange" -- Code 6

(4) "Normal distribution" -- Code 7

(5) Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 1990 -- Code 8

(6) Excess contributions plus earnings/excess deferrals taxable in 1989 -- Code P

(7) Excess contributions plus earnings/excess deferrals taxable in 1988 -- Code D

NOTE: IT WILL NO LONGER BE VALID TO CODE BLANKS IN BOTH POSITIONS 5 AND 6 OF SECTOR 1 OF THE PAYEE "B" RECORD FOR FORM 1099-R. YOU MUST PROVIDE AT LEAST ONE DISTRIBUTION CODE FOR THIS FORM. ALSO, A NUMERIC CODE MUST BE ENTERED IN ALL CASES EXCEPT WHEN CODE P OR D IS USED. HOWEVER, WHEN USING CODE P OR D FOR AN IRA DISTRIBUTION UNDER SECTION 408(d)(4), YOU MAY ALSO ENTER CODE 1, IF IT APPLIES. IF MORE THAN ONE NUMERIC CODE IS APPLICABLE TO A DISTRIBUTION, YOU WILL NOW NEED TO REPORT TWO SEPARATE PAYEE "B" RECORDS.

(c) Field Positions 25-44 -- "Payer's Account Number for Payee" -- In the past, if you had fewer than 20 characters, you were to left-justify the field. Now, you may EITHER left- or right-justify this field, and fill the remaining positions with blanks.

(d) Field Position 45 -- "IRA/SEP Indicator" -- Starting this year, if you Code a "1", "2", "3", "4", "5", or "7" in either Position 5-6 of the Payee "B" Record (Document Specific Code) for Form 1099-R; AND if you are reporting a distribution for an IRA or SEP, you will code a "1" in Position 45. If you are not reporting an IRA or SEP distribution, code a blank in this field.

End of Payer "C" Record -- No changes.

State Totals "K" Record -- No changes.

End of Transmission "F" Record -- No changes.

.02 EDITORIAL CHANGES -- PART A, "GENERAL"

There have been numerous editorial changes due in part to the impact of the Revenue Reconciliation Act of 1989. IRS recommends that you read this publication in its entirety to ensure that you report properly. The changes are as follows:

(a) The Revenue Reconciliation Act of 1989 changed some of the magnetic media reporting requirements and penalty provisions. See Notice 90-15, printed in 1990-1 C.B. 326, for further information.

(b) Starting this year, IRS/MCC will be accepting information returns, both originals and corrections, by way of electronic filing as well as magnetic media. See Publication 1220, "Specifications For Filing Forms 1098, 1099 Series, 5498, and W-2G Electronically or on Magnetic Tape, Tape Cartridge, 5 1/4 and 3 1/2 Inch Diskettes" for information on electronic filing of information returns.

(c) The title of Publication 1255 has changed to "Requirements and Conditions for Filing Forms 1098, 1099 Series, 5498, and W-2G on 8 Inch Magnetic Diskettes."

(d) Added the IRS toll-free telephone number for those filers with tax law questions in Part A, Sec. 1.05, and Part A, Sec. 3.04(c).

(e) The title for the publication containing the 1099 instructions has changed in 1990 from "Instructions for Forms 1099, 1098, 5498, 1096, and W-2G" to "Instructions for Forms 1099, 1098, 5498, and W-2G." Therefore, the references in this publication have been changed accordingly.

(f) Part A, Sec. 4, "Filing Requirements," has been changed to reflect the impact of the Revenue Reconciliation Act of 1989, including:

(1) All Forms 1098, 1099 series, 5498, and W-2G are to be filed on magnetic media with IRS if you have 250 or more of any of them SEPARATELY. None of the forms will be aggregated.

(2) The "look-back" rule has been rescinded which stated that you are required to file on magnetic media this year if you had the requirement to file in the previous year. You are only required to file this year if you exceed the filing threshold (250) for Tax Year 1990.

(g) Part A, Sec. 6, "Vendor List," has been added to provide information concerning the vendor list that IRS/MCC maintains for those payers who wish to file on magnetic media but are having difficulty finding software companies or service bureaus in their area. This section will provide information on how to order the list if you are a filer, and how to be added to the list if you are a vendor.

(h) In the past, filers were required to apply for different Transmitter Control Codes (TCC) for different types of media. This is no longer necessary. (See Part A, Sec. 7, Form 4419, "Application for Filing Information Returns Magnetically/Electronically.") If you have more than one TCC already assigned to you, you may use any that you wish. Notify IRS/MCC to remove those TCC's not used.

(i) A note was added to Part A, Sec. 7, encouraging filers to submit application Form 4419 at least 30 days before the due date of the returns to allow IRS/MCC time to process the application. However, IRS/MCC will still accept applications up to the filing due date.

(j) A note was added to Part A, Sec. 7, concerning filers who file on magnetic media with IRS/MCC, but still submit Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to the IRS Service Center that processes paper information returns. If you file your information returns on magnetic media with IRS/MCC, use transmittal Form 4804 to submit your data, and NOT Form 1096.

(k) Beginning this year, IRS/MCC will NOT return media to the filers, whether it is test, original, or correction data, after successfully processing the media. (See Part A, Sec. 12, "Processing of Magnetic Media Returns.") Your files will only be returned if a replacement file is necessary.

(l) A note was added to Part A, Sec. 13, "How to File Corrected Returns," concerning filers who submit late filed information returns as correction documents instead of originals (coding a "G" code in the Payee "B" Record).

(m) In the past, if you were correcting a bad payee address, you were instructed to correct the address using two transactions. This has been changed in the chart in Part A, Sec. 13. It now takes only one transaction to correct a bad payee address, UNLESS you are also correcting a bad payee name or TIN with the same correction. It will then still require two transactions to correct the bad address.

(n) Part A, Sec. 13 has information concerning the impact of the Revenue Reconciliation Act of 1989 upon the submission of corrected returns. It also refers you to the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" for specific information concerning the due date for filing information returns, and any penalties that may apply to returns considered to be filed late or incorrectly.

(o) Part A, Sec. 14, "Taxpayer Identification Number (TIN)," has been rewritten to remove tax law information and to add information concerning the creation of Name Controls.

(p) The section on contacting IRS/MCC has been moved for easy reference to Part A, Sec. 3, "How to Contact the IRS Martinsburg Computing Center." Information was added to this chapter to instruct filers when it is appropriate to contact IRS/MCC, and if it is not appropriate, where the information can be obtained.

(q) In Part A, Sec. 19, "Major Problems Encountered," five problems were added (numbers 11, 12, 13, 14, and 15).

(r) Added the IRS/MCC Telecommunication Devices for the Deaf (TDD) telephone number in Part A, Sec. 3.03.

(s) Part D, Miscellaneous Information, has been added concerning what magnetic media-related forms and publications are available from IRS/MCC, and to provide a table listing the federal dollar criteria for reporting information returns.

.03 EDITORIAL CHANGES -- PART B, "SINGLE DENSITY DISKETTE SPECIFICATIONS"

The following editorial changes were made to Part B, Sec. 1-15:

(a) Part B, Sec. 3, Sector 1, "Payer/Transmitter "A" Record," the following changes were made to the "AMOUNT INDICATOR FIELDS."

(1) For Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, and 1099-PATR, the term for "Federal Income Tax Withheld," has been further defined as "Backup Withholding."

(2) For Form 1099-R, a Note 2 has been added referring you to the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" for the definition of Federal Income Tax Withheld, and how it is applied to Form 1099-R reporting.

(3) For Forms 1099-B, Amount Code 7 changed to "Unrealized profit or (loss) on open contracts 12/31/89," and Amount Code 8 to "Unrealized profit or (loss) on open contracts -- 12/31/90."

(4) For Form 1099-DIV, the note has been changed to state that Amount Code 1 MUST equal the sum of Amount Codes 2, 3, 4, and 5.

(5) For Form 1099-INT, Amount Code 5, title changed to "Foreign tax paid."

(6) For Form 1099-MISC, Amount Code 3, title changed to "Prizes, awards, etc."

(7) For Form 1099-OID, Amount Code 1, title changed to "Original issue discount for 1990."

(8) For Form 5498, Amount Code 1, title changed to "Regular IRA contributions made in 1990 and 1991 for 1990." In the Note for Form 5498, any references to calendar years have been incremented by one year.

(b) Positions 45-49, Transmitter Control Code (TCC) -- added a sentence instructing filers to NOT enter more than one TCC per file.

(c) Position 50 -- Foreign Corporation Indicator -- added a note that some filers are automatically coding a "1" in this position to indicate a foreign corporation, whether it is or not. Since IRS processes foreign payer information differently from domestic payer information, this has caused processing problems. The payer may be subject to a penalty for providing incorrect information to IRS.

(d) Part B, Sec. 6, Sector 1, "Payee "B" Record," for Form 1099-R, the field title "Document Specific Code" was changed to "Distribution Code." Also, some category titles changed under Description and Remarks to:

(1) Early (premature) distribution, (no known exception) -- Code 1

(2) Early (premature) distribution, exception applies (as defined in section 72(q), (t), or (v)) -- Code 2

(3) Section 1035 Exchange -- Code 6

(4) Normal distribution -- Code 7

(5) Excess contributions plus earning/excess deferrals (and/or earnings) taxable in 1990 -- Code 8

(6) Excess contributions plus earnings/excess deferrals taxable in 1989 -- Code P

(7) Excess contributions plus earnings/excess deferrals taxable in 1988 -- Code D

(e) Part B, Sec. 6, Sector 1, "Payee "B" Record for Form 1099-R, added a sentence under "Description and Remarks" that you MUST enter at least one numeric code from the table that provides the categories for distribution in positions 5-6 of the Document Specific Code, Payee "B" Record, except when Code P or D is used. Also, if more than one numeric code applies, two separate Payee "B" Records are required.

(f) Positions 25-44 -- "Payer's Account Number for Payee," the instruction to left-justify and fill remaining positions with blanks has changed to EITHER left-or right-justify, and fill remaining positions with blanks.

(g) Positions 46-47 -- "Percentage of Total Distribution," a note was added to clarify that the field is only two positions in length since the figure MUST be 99% or less, and includes instructions on how to round off fractions. If the percentage is 100, leave this field blank.

(h) Form 1099-S, Part B, Sec. 11, Sector 4, Field Positions 32-70, "Description", and Part C, Sec. 10, Sector 2, Field Positions 140-178, "Description," added a statement that if you enter the address of the property being reported, include the state and ZIP code where the property is located.

(i) Part B, Sec. 13 and Part C, Sec. 12, End of Payer "C" Record, instructions were added that submitting files with a missing or incorrect End of Payer "C" Record will result in your media being returned for correction.

SEC. 3. HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER

.01 Magnetic media processing for all service centers is centralized at the IRS/MCC. Your magnetic media files containing information returns covered by this revenue procedure, and all requests for IRS magnetic media-related publications, information, undue hardship waivers, requests for extensions of time to file, or magnetic media related forms are to be directed to the following addresses:

If by Postal Service:

 

 

IRS-Martinsburg Computing Center

 

Post Office Box 1359

 

Martinsburg, WV 25401-1359

 

 

or

 

 

If by Truck or Air Freight:

 

IRS-Martinsburg Computing Center

 

Magnetic Media Reporting Section

 

Route 9 & Needy Road

 

Martinsburg, WV 25401

 

 

.02 Hours of operation are 8:30 A.M. until 6 P.M. Eastern time. The telephone number is (304) 263-8700 (not a toll-free number). NOTE: IRS/MCC has installed Telecommunication Devices for the Deaf (TDD). The number is 304-267-3367.

.03 Requests for 1099 paper returns, publications or forms not related to magnetic media processing, or paper Forms W-2/W-2P, MUST be requested by calling the "Forms Only Number" listed in the local telephone directory, or by calling the IRS toll-free number 1-800-424-FORM (1-800-829-FORM after September 30, 1990).

.04 Do NOT contact IRS/MCC if:

(a) You have a question concerning filing Forms W-2/W-2P, either on paper or magnetic media, with SSA. You MUST contact your local SSA office for this information.

(b) You want to order paper forms for information return filing, including paper Forms W-2/W-2P. IRS/MCC does NOT stock any paper forms for information return or wage reporting. Call the IRS toll-free number for forms (1-800-424-FORM, 1-800-829-FORM after September 30, 1990), or call your local IRS office to order paper forms.

(c) You have a question concerning the completion of the information return or Form W-2/W-2P. (For example, "How do I report a premature distribution on Form 1099-R?"). Call the IRS toll-free number (1-800-424-1040, 1-800-829-1040 after September 30, 1990) for such information.

(d) You have received a penalty notice and you need additional information, or you are requesting an abatement of the penalty. Most penalty notices contain an IRS representative's name and phone number to contact with questions. This person will be most familiar with your particular case. The letter may instruct you to respond in writing within a certain timeframe. IRS/MCC does NOT issue penalty notices, therefore, it does NOT have the authority to abate penalties. You MUST contact the service center that issued the penalty notice if you have questions, or if you are requesting abatement of the proposed penalty.

SEC. 4. FILING REQUIREMENTS

.01 Section 6011(e)(2)(A) of the Internal Revenue Code as amended by the Revenue Reconciliation Act of 1989 (Public Law No. 101-239 (1989) 103 Stat. 2106, Section 7713), requires any person, including corporations, partnerships, individuals, estates, and trusts, who files 250 or more information returns to file such returns on magnetic media. This requirement applies separately for each type of form. The filer also has the option of filing such returns electronically in lieu of magnetic media.

Thus, for example, if a person is required to file 200 returns on Form 1099-INT and 350 returns on Form 1099-DIV for a calendar year, the person is not required to file Forms 1099-INT on magnetic media, but is required to file forms 1099-DIV on magnetic media.

.02 All filing requirements apply individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN) Social Security Number (SSN), or Employer Identification Number (EIN). For example, if a corporation has several branches or locations and each uses the same EIN, aggregate the total volume of returns to be filed and apply the filing requirements to each type of return accordingly.

.03 The following filing requirements apply separately to both originals and corrections filed on magnetic media:

1098 250 OR MORE OF ANY of these forms require magnetic

 

1099-A media or electronic filing with IRS. These are stand

 

1099-B alone documents and are not to be aggregated for

 

1099-DIV purposes of determining the 250 threshold. For

 

1099-G example, if 100 Forms 1099-B are to be filed, they need

 

1099-INT not be filed magnetically or electronically since they

 

1099-MISC do not meet the threshold of 250. However, if you have

 

1099-OID 300 Forms 1099-R, they must be filed magnetically or

 

1099-PATR electronically since they meet the threshold of 250.

 

1099-R

 

1099-S

 

5498

 

W-2G

 

 

W-2/W-2P 250 or more of either form must be filed on magnetic

 

             media with SSA.

 

 

.04 The above requirements shall not apply if you establish undue hardship (see Part A, Sec. 5).

.05 Filers who are required to submit their information returns on magnetic media may choose to submit their documents by electronic filing instead (See Publication 1220 for information concerning the electronic filing of information returns). Filers who submit their information returns electronically will have satisfied the magnetic media filing requirements.

.06 In the past, if you were required to file on magnetic media for a particular tax year, you were automatically required to file on magnetic media for the following tax year, regardless of the volume of returns. The Revenue Reconciliation Act of 1989 eliminated this "look-back" rule. Therefore, if you were required to file on magnetic media for Tax Year 1989, and the volume of documents you will be submitting for Tax Year 1990 is less than 250, you are not required to file on magnetic media for Tax Year 1990.

SEC. 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA

.01 If you are required to file on magnetic media but fail to do so, and do not have an approved waiver on record, you may be subject to a failure to file penalty.

.02 Any person required to file original or corrected returns on magnetic media may request a waiver from these filing requirements if such filing would create an undue hardship by submitting Form 8508, Request for Waiver from Filing Information Returns on Magnetic Media, with IRS/MCC.

.03 If a waiver for original documents is approved, a waiver for corrections to these documents will be automatically approved. However, if you submit your original returns on magnetic media but not your corrections, then a waiver must be requested for the corrections only if they exceed the filing threshold of 249 returns.

.04 Generally, only the payer may sign the Form 8508; however, the transmitter may sign if the transmitter has a power-of-attorney from the respective payers, and a copy of the power-of-attorney is attached to the Form 8508.

.05 A separate Form 8508 must be submitted for each payer. Do not submit a list of payers. Specify the type of returns for which the waiver is being requested on the Form 8508 (i.e., 1099-DIV, 1099-A, etc.).

.06 The waiver, if approved, will provide exemption from magnetic media filing for one tax year only. Filers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.

.07 Copies of Form 8508 are included in this publication, or may be obtained from other IRS offices. Form 8508 may be computer-generated as long as it contains all the information requested on the original form, or it may be photocopied.

.08 All requests for magnetic media-related undue hardship exemptions must be submitted to the IRS/MCC at least 90 days before the due date of the return except as stated in Sec. 5.08. IF A REQUEST IS NOT POSTMARKED AT LEAST 90 DAYS BEFORE THE DUE DATE OF THE RETURNS, IT WILL NOT BE CONSIDERED. Therefore, for Forms 1098, 1099 series, and W-2G, the waiver request must be submitted to IRS/MCC with a postmark date of November 30. For Forms 5498, the waiver request must be submitted to IRS/MCC with a postmark date of March 2. Any waiver requests received with postmarks after the deadline(s) will be automatically denied.

.09 All magnetic media-related undue hardship requests for Forms W-2/W-2P are to be filed with the IRS/MCC, NOT SSA, and must be postmarked at least 90 days before the due date of the return. Since Forms W-2/W-2P are due to SSA by February 28, the due date for the waiver request is November 30.

.10 Waivers are granted on a case-by-case basis and are approved at the discretion of the IRS/MCC. You must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.

.11 If your waiver request is approved, keep it for your records. DO NOT send a copy of the approved waiver to the IRS with your paper returns.

.12 AN APPROVED WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA DOES NOT PROVIDE EXEMPTION FROM ALL FILING; YOU MUST STILL TIMELY FILE YOUR INFORMATION RETURNS ON ACCEPTABLE PAPER FORMS WITH THE APPROPRIATE SERVICE CENTER.

SEC. 6. VENDOR LIST

.01 IRS/MCC will provide you with a list of vendors who support magnetic media filing upon request. This list contains the names of service bureaus that will produce your files for you on the prescribed types of magnetic media, or via electronic filing. It also contains the names of vendors who can provide software packages for payers who wish to produce magnetic media or electronic files on their own computer systems or personal computers. This list is for filer information only, and in no way implies IRS approval or endorsement of these products or services.

.02 IRS/MCC will provide the vendor list to those filers who contact IRS/MCC at the address and phone number shown in Part A, Sec. 3. IRS/MCC WILL NOT PROVIDE ANY COMPANY NAMES OVER THE TELEPHONE.

.03 If you are a vendor who offers a software package, has the ability to produce magnetic media for your customers, or has the capability to electronically file information returns, and you would like to be included on the list, you MUST submit a written request. The written request must include:

(a) The company name

(b) Address (include the city, state, and ZIP code)

(c) Telephone number (include area code)

(d) Contact person

(e) Type of service provided (for example, service bureau and/or software)

(f) Type(s) of magnetic media offered (for example, 1/2 inch magnetic tape; tape cartridge; 8 inch, 5 1/4 inch, and/or 3 1/2 inch diskettes; electronic filing).

.04 You may submit your request to be added to the vendor list at any time. Send the written request to IRS/MCC at the address provided in Part A, Sec. 3. IRS/MCC WILL NOT ACCEPT ANY COMPANY NAMES OVER THE TELEPHONE. The list will be updated once a year, in March, to include new vendors.

SEC. 7. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY

.01 For purposes of this revenue procedure, the PAYER may be the person making payments; a recipient of mortgage interest payments; a broker; a barter exchange; a person reporting a real estate transaction; a trustee or issuer of an IRA or SEP; or a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned. The TRANSMITTER is the organization submitting the magnetic media file. The payer and transmitter may be the same organization.

Payers or their transmitters are required to complete Form 4419, Application for Filing Information Returns Magnetically/Electronically, to ensure equipment compatibility. A single Form 4419 should be filed no matter how many types of returns the payer or transmitter will be submitting on magnetic media or by electronic filing. For example, if you plan to file Forms 1099-INT and Forms 1099-DIV on magnetic media, submit one Form 4419. If you later wish to file another type of return on magnetic media in the Form 1099, 1098, 5498 or W-2G series, it is not necessary to submit a new Form 4419.

Copies of Form 4419, for your use, are included in this publication. Please read the instructions on the back of the form very carefully. This form may be photocopied. Requests for additional forms or other information related to magnetic media processing should be addressed to the IRS/MCC. (See Part A, Sec. 3 for the address.)

.02 Form 4419 can be submitted at any time during the year. However, Form 4419 should be submitted to IRS/MCC at least 30 days before the due date of the return(s) you wish to file on magnetic media. This will allow IRS/MCC the minimum amount of time necessary to process your application and send a response back to you. Otherwise, you may not receive your five character alpha/numeric Transmitter Control Code (TCC) in time to code in your Payer/Transmitter "A" Record (see Part B, Sec. 3 for further information). In the event that your computer equipment or software is not compatible with the IRS equipment, a waiver may be granted so that you may file your returns on paper documents for that tax year. If you have more than one TCC, you must use more than one tape or diskette; i.e., you cannot use two TCCs on the same medium. They must be reported separately.

IRS encourages transmitters who file for multiple payers, to submit one application and to use one Transmitter Control Code for all payers. Include a list of all payers and their TINS with the Form 4419. If you file for additional payers in later years, notify IRS in writing providing the additional names and TINS. Do not submit a new application for these additional payers.

Returns submitted on 8 inch diskette may not be filed with IRS until the application has been approved and a TCC assigned. This TCC will be entered in the Transmitter Control Code field of the "A" Record. Magnetic media submitted without a TCC will be held for processing until an application is approved.

.03 Upon approval, a magnetic media reporting package containing the appropriate revenue procedure and necessary transmittals, forms, labels, and instructions will be sent to the attention of the contact person indicated on Form 4419. Thereafter, IRS/MCC will send the transmitter a package containing the updated revenue procedure and forms each year. This package will continue to be sent to the contact person indicated on the Form 4419 unless IRS/MCC has received changes or updates.

.04 If you have your files prepared by a service bureau, you may not need to submit an application to obtain a TCC. Some service bureaus will produce your file using their TCC and send it to IRS/MCC for you.

Other service bureaus will prepare your magnetic media files, then send them to you to submit to IRS/MCC. These service bureaus may require you to submit an application to IRS/MCC to be assigned your own TCC to be coded in the Payer/Transmitter "A" Record. (See Part B, Sec. 3.) Contact your service bureau for further information.

.05 Once approved to file magnetically or electronically, you do not need to reapply each year unless:

(a) You discontinue filing magnetically or electronically for a year. Your TCC may have been reassigned by IRS/MCC.

(b) Your magnetic media files were transmitted in the past by a service agency. However, you now have computer equipment compatible with that of IRS and wish to prepare your own files. You must request your own TCC by filing an application Form 4419.

If any of these conditions apply to you, contact IRS/MCC for clarification.

.06 Also notify IRS/MCC if you had hardware or software changes that would affect the characteristics of the magnetic media submission. Be sure to refer to your current TCC in all correspondence with IRS/MCC.

.07 If you file on several different types of magnetic media (e.g., tape, 8 inch diskette, and 5 1/4 inch floppy disk), you need only submit one Form 4419. In the past, IRS/MCC required filers submitting different types of media to obtain different TCCs. This is no longer necessary. You may use the same TCC on all of your media. For example, if you submit a magnetic tape, an 8 inch diskette, and a 5 1/4 inch floppy disk, you may use the same TCC for all 3 types of media. If you already have different TCCs assigned to you, you may choose any of the TCCs to be coded into the Payer/Transmitter "A" Record. It doesn't matter which one you use; however, remember to code only one TCC per medium. Please contact IRS/MCC and indicate which TCC(s) you will not be using so that we can remove them from our files. (See Part A, Sec. 3 for the address and telephone number).

.08 If you are an approved filer on magnetic media and the name, EIN, or address of your organization or contact person changes, please notify IRS/MCC in writing so that your file may be updated to reflect the current information.

.09 In accordance with section 1.6041-7(b) of the Income Tax Regulations, payments by separate departments of a health care carrier to providers of medical and health care services may be reported on separate returns on magnetic media. In this case, the headquarters will be considered the transmitter, and the individual departments of the company filing reports will be considered payers. A single Form 4419 covering all departments filing on magnetic media should be submitted. One TCC may be used for all departments.

.10 Approval to file on magnetic media does not imply endorsement by the IRS of the computer software or quality of tax preparation services provided.

.11 The magnetic media file must be transmitted with Form 4804 (see Part A, Sec. 9), which will provide IRS with the necessary information. Filing the same information returns either magnetically or electronically, as well as on paper forms, will result in duplicate filing and may result in erroneous penalty notices being sent to the payees.

SEC. 8. TEST FILES

.01 IRS does not require magnetic media filers to submit test files, except for those filers who wish to participate in the Combined Federal/State Filing Program (see Part A, Sec. 16 for further information concerning combined federal/state filing).

However, IRS encourages first-time magnetic media filers, and filers of floppy disks or diskettes, to send a test for review prior to the filing season.

IRS will determine whether or not your file is formatted correctly, and will check the content of the records to ensure that it meets the specifications of the current revenue procedure.

For those filers who have submitted magnetic media files in previous tax years, sending a test file provides them the opportunity to ensure that their software reflects the annual programming changes.

.02 If you are a new filer, you must submit a Form 4419 before you send in a "TEST" file. If approved, you will be assigned a five character Alpha/Numeric Transmitter Control Code (TCC). This TCC must be entered in the TCC field of your Payer/Transmitter "A" Record (see Part B, Sec. 3).

.03 All tape and diskette "TEST" files must be submitted between October 1 and December 15 of each year. Do not submit tape or diskette "TEST" files after December 15. Only a hardcopy printout of the tape or diskette that shows a sample of each type of record used (A, B, C and F) may be submitted after December 15 and it must be postmarked before January 15. Clearly mark the hardcopy print as "TEST" data and include identifying information such as name, telephone number, and address of a person who can be contacted to discuss its acceptability. If your "TEST" file is acceptable, we will send you an approval letter.

.04 The information in the "A" Record must be "ACTUAL" information -- NOT FICTITIOUS.

.05 Form 4804, Transmittal of Information Returns Reported on Magnetic Media, must accompany your magnetic media test file. Indicate that the file contains test data by marking the "TEST" checkbox in block 1 on Form 4804. Also, write "TEST" on the external media label, Form 5064. The "TEST" data must be programmed according to the current revenue procedure.

.06 Submit a "TEST" file between October 1 and December 15 for the first year you wish to participate in the Combined Federal/State Filing Program. A hardcopy print is NOT an acceptable "TEST" file for this program.

.07 Approved payers or transmitters should send the "TEST" file to the IRS/MCC (see Part A, Sec. 3 for the address).

.08 IRS/MCC will send an acknowledgement in writing to indicate whether your "TEST" file was good or bad. If it was formatted incorrectly, we will indicate what the problems are and your file will be returned to you for replacement and resubmission. The "TEST" must be resubmitted by the deadline of December 15, 1990. After IRS/MCC successfully processes your test file, the diskette will not be returned.

SEC. 9. FILING OF MAGNETIC MEDIA REPORTS AND RETENTION REQUIREMENTS

.01 Form 4804, Transmittal of Information Returns Reported on Magnetic Media, must accompany all magnetic media submissions. This includes original, correction, replacement, and test data.

.02 In many cases, you can program your computer to generate a substitute Form 4804/4802 that contains the pertinent information. IRS encourages you to computer-generate your transmittal forms, as long as you include the necessary information contained on the most current revision of the form. You may also photocopy this form. If you file for multiple payers and have the authority to sign the affidavit on Form 4804, you should also submit Form 4802, "Transmittal for Multiple Magnetic Media Reporting."

.03 The transmitter may code any combination of payers and/or documents on their media. For example, if you are reporting Forms 1099-INT for Bank A, Forms 1099-DIV for Bank B, and Forms 1098 for Bank C, you need not create 3 separate diskettes. All 3 banks and all types of documents can be coded on one diskette. If you do create multiple diskettes, they can all be sent in one package; you need not send a separate package containing each diskette. Be sure to include Form 4804, 4802, or computer-generated substitute with your magnetic media shipment. DO NOT MAIL THE MAGNETIC MEDIA AND THE TRANSMITTAL DOCUMENTS SEPARATELY. Magnetic media files covered by this revenue procedure are to be sent to the IRS/MCC. (See Part A, Sec. 3 for the address.)

.04 IRS/MCC only processes returns filed magnetically or electronically, so paper information returns for information not being filed magnetically or electronically must be submitted to the appropriate service center using Form 1096, Annual Summary and Transmittal of U.S. Information Returns. DO NOT send information returns filed on paper forms to IRS/MCC.

.05 DO NOT REPORT DUPLICATE INFORMATION; I.E., IF YOU SUBMIT PART OF YOUR RETURNS ON PAPER AND PART ON MAGNETIC MEDIA, BE SURE THE SAME INFORMATION IS NOT INCLUDED IN BOTH SUBMISSIONS.

.06 Form 4804 contains an affidavit that must be signed by the payer; however, the transmitter, service bureau, paying agent, or disbursing agent (all hereafter referred to as agent), may sign the affidavit on behalf of the person required to file/payer if the agent has the authority to sign the affidavit under an agency agreement (either oral, written, or implied) that is valid under state law and adds the caption "FOR: (name of payer)".

.07 Although a duly authorized agent may sign the affidavit, the payer is responsible for the accuracy of the Form 4804 and the returns filed, and the payer will be liable for penalties for failure to comply with filing requirements.

.08 If returns from different branches or locations for one payer are submitted on the same file, consolidate each type of information return under one Payer/Transmitter "A" Record. For example, all Forms 1099-INT for the same payer on a single file must be sorted together under one Payer/Transmitter "A" Record followed by the appropriate "B" Records and one "C" Record.

.09 Before shipping magnetic media files, include the following:

(a) A signed Form 4804 (or computer-generated substitute).

(b) A Form 4802 if you transmit for multiple payers and have the authority to sign the affidavit on Form 4804.

(c) The magnetic media with an external identifying label (Form 5064) as described in Part B, Sec. 1.02. Be sure to include the proper sequence on this label.

(d) On the outside of the shipping container, include a Form 4801 or a substitute for the form which reads "DELIVER UNOPENED TO TAPE LIBRARY -- MAGNETIC MEDIA REPORTING -- BOX __ of __." If there is only one container, mark the outside as Box 1 of 1. For multiple containers, include the sequence (for example, Box 1 of 3, 2 of 3, 3 of 3).

(e) If you were granted an extension, include a copy of the approval letter with the magnetic media shipment. (See Part A, Sec. 11 for information on how to apply for an extension of time to file.)

.10 IRS will not pay for or accept "Cash-on-Delivery" or "Charge to IRS" shipments of reportable tax information that an individual or organization is legally required to submit.

.11 Files may be returned to you due to coding or format errors. These files are to be corrected and returned to IRS within 45 days from the date of notice or the payer may be subject to a penalty. A copy of page 2 of the letter sent by IRS must be returned with the replacement file.

.12 Payers are required to retain a copy of the information returns filed with IRS or to have the ability to reconstruct the data for at least three years from the reporting due date.

SEC. 10. FILING DATES

.01 The dates prescribed for filing paper returns with IRS also apply to magnetic media filing. Magnetic media filing with IRS for Forms 1098, 1099, and W-2G must be on a calendar year basis. Form 5498 is used to report amounts contributed during or after the calendar year but not later than April 15.

.02 Information returns filed on magnetic media for Forms 1098, all types of Forms 1099, and Forms W-2G must be submitted to IRS/MCC postmarked no later than February 28. The due date for furnishing the required copy or statement to the payee is January 31.

.03 Information returns filed on magnetic media for Form 5498 must be submitted to IRS/MCC postmarked no later than May 31. Trustees or issuers of IRAs or SEPs must provide participants with a statement of the value of the participant's account by January 31, in any written format. Statements are due to the participants by May 31 for contributions made to IRAs for the prior calendar year. Form 5498 is filed for contributions to be applied to 1990 that are made between January 1, 1990, and April 15, 1991.

.04 If any due date falls on a Saturday, Sunday, or legal holiday, the due date is extended to the next day that is not a Saturday, Sunday, or legal holiday.

SEC. 11. EXTENSIONS OF TIME TO FILE

.01 A payer may request an extension of time to file information returns by submitting Form 8809, Request for Extension of Time To File Information Returns, to IRS/MCC. This form may be used to request an extension of time for information returns filed on paper; magnetic media; and/or electronically.

.02 A transmitter may request an extension of time to file for multiple payers by attaching a list of their names, addresses, and TINs to Form 8809. Form 8809 may be computer-generated or photocopied; however, be sure that all the pertinent information is included. If you are requesting extensions of time for more than 50 payers, we strongly encourage you to submit the list of payers, addresses, and EINs on tape or diskette. Contact IRS/MCC for the format. (See Part A, Sec. 3 for the address.) Transmitters who submit the extension of time requests on magnetic media will receive one approval letter from IRS/MCC with an attached listing of the payers with approved extensions.

.03 Request an extension of time in increments of 30 days, AS SOON AS YOU ARE AWARE that an extension is necessary but no later than the due date of the return. The request must be sent to IRS/MCC. (See Part A, Sec. 3 for the address.) You must allow a minimum of 30 days for IRS/MCC to respond to an extension request.

.04 Form 8809 must be postmarked no later than the due date of the return(s) for which you are requesting an extension of time. If you are requesting an extension of time to file several types of forms, you may use one Form 8809, but you must submit Form 8809 to IRS/MCC postmarked no later than the earliest due date. For example, if you are requesting an extension of time to file both Forms 1099-INT and Forms 5498, you must submit Form 8809 postmarked on or before February 28. You may submit more than one Form 8809 to avoid this problem.

.05 IRS will process your Form 8809 and respond in writing. If the extension request is granted, a copy of the approval letter only MUST be included with the transmittal Form 1096, Form 4804 (or computer generated substitute) when the file is submitted. INCLUDE ONLY THE APPROVAL LETTER SENT FROM IRS. DO NOT SEND A COPY OF FORM 8809 WITH EITHER YOUR PAPER DOCUMENTS TO THE SERVICE CENTER, OR YOUR MAGNETIC MEDIA FILE TO IRS/MCC. Also, if you originally requested a 30-day extension and then find you need an additional 30 days, a copy of the first approved extension must accompany your second request. IRS/MCC will not grant more than two extensions of time for a maximum of 60 days.

.06 You can request an extension for only one tax year on Form 8809.

.07 The extension request must be signed by the payer or a duly authorized representative.

.08 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial of your request. Please read the instructions on the back of the Form 8809 very carefully.

.09 Copies of the Form 8809 may be obtained from IRS/MCC (see Part A, Sec. 3 for the address) or from other IRS offices. Form 8809 may also be computer-generated as long as it contains all the information requested on the original form, and it may be photocopied.

SEC. 12. PROCESSING OF MAGNETIC MEDIA RETURNS

.01 All data received at IRS/MCC for processing will be given the same protection as individual returns (Forms 1040). IRS/MCC will process your magnetic media files and check that the records were formatted according to the most current revenue procedure. Please be sure that your record format and coding comply with this revenue procedure, which is to be used for the preparation of Tax Year 1990 information returns only.

.02 Revenue procedures are revised annually to reflect legislative and form changes to the information returns.

.03 If your data is formatted incorrectly, or if the file contains information that will cause invalid conditions in the IRS processing (for example, you code all 9's or all zeros in the field for the TIN), we will return your file for replacement.

.04 To distinguish between a correction and a replacement:

A correction is media submitted by the payer to correct records that were successfully processed by IRS, but contained erroneous information.

A replacement is media that IRS has returned to the payer or transmitter due to format errors encountered during processing. After necessary changes have been made, the media must be returned to IRS/MCC to be re-input.

.05 Beginning with Tax Year 1990, (processed in Calendar Year 1991), IRS/MCC will no longer return your files after processing. Therefore, if IRS/MCC returns your file to you, it is because a replacement is needed. Open all packages immediately. Files returned due to format or coding errors must be corrected and returned to IRS/MCC within 45 days from the date of the notice to avoid a failure to file penalty. IRS/MCC will work with magnetic media filers as much as possible to assist with processing problems. If IRS/MCC calls your office, please respond promptly since we may have information that you need to correct your file.

.06 Do not use special shipping containers for transmitting data to IRS/MCC. Because of the high volume of data received and shipping costs involved, they will not be returned.

.07 When submitting your file to IRS/MCC, please keep in mind that:

(a) You may include any of the types of returns covered by this revenue procedure on one diskette. You do not have to separate the different types of forms on different media. For example, one diskette could contain Forms 1098, 1099-INT, 1099-DIV, and 5498 for different payers. You need only identify the different types of returns and payers with different Payer/Transmitter "A" Records which are coded on the magnetic media. (See Part B, Sec. 3 for details.)

(b) You may submit multiple types of media in your shipment. However, submit a separate Form 4804 for each type of media.

(c) Enclose your transmittal Form 4804 with your shipment. Do not send it in a separate mailing. If your shipment is packed in several packages, use label Form 4801 to indicate the number of packages, and put the transmittal in the first package.

(d) IRS/MCC will NOT be returning your magnetic media to you after successfully processing it. Therefore, if you want proof that IRS/MCC received your shipment, you may choose to send your submission using a service with tracing capabilities, or that will provide proof of delivery (for example, U.S. Postal Service Certified Mail, Federal Express or UPS.)

SEC. 13. HOW TO FILE CORRECTED RETURNS

.01 The filing requirement thresholds listed in Part A, Sec. 4 apply separately to both original and corrected returns.

EXAMPLE: If you have 100 Forms 1099-A to be corrected, they can be filed on paper since they fall under the 250 threshold. However, if you have 300 Forms 1099-A to be corrected, they must be filed on magnetic media since they meet the 250 threshold. If for some reason you cannot file these corrections on magnetic media, you must request a waiver (see Part A, Sec. 5) before filing them on paper or you may be subject to a penalty. No waiver is required for corrections that fall under the required threshold.

.02 Corrections for the current year should be aggregated and filed no later than August 1 of each year. However, if you discover errors after August 1, you are still required to file corrections so that you will not be subject to a penalty for intentional disregard of the filing requirements. Failure to correct information returns submitted with erroneous information may result in penalties being assessed for failure to provide correct information.

.03 See the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" for information concerning the due date for filing information returns, and any penalties that may apply to returns considered to be filed late or incorrectly. A copy of these instructions is included in your MMR (Magnetic Media Reporting) package each year. This will also contain specific information concerning the impact of the Revenue Reconciliation Act of 1989 on the penalty provisions for ANY documents, including corrections, which are filed after the original filing due date for the information return.

.04 ALL FIELDS MUST BE COMPLETED WITH THE CORRECT INFORMATION, NOT JUST THE DATA FIELDS NEEDING CORRECTION. If your entire file is in error, contact IRS/MCC immediately. If you file corrected returns on paper forms, submit Copy A to the appropriate service center. Furnish corrected statements to recipients as soon as possible.

.05 There are numerous types of errors. More than one transaction may be required to properly correct the initial error. A "G" in magnetic media position 8 of the "B" Record is used to indicate a corrected return. You are strongly encouraged to read this ENTIRE section before attempting to make ANY correction.

.06 Corrected returns submitted to IRS on magnetic media, using a "G" coded Payee "B" Record, may be included on the same medium as those corrections without the "G" code; however, separate "A" Records are required. Corrected returns are to be identified as corrections on the transmittal document by marking the appropriate checkbox and also on the EXTERNAL label of the file.

NOTE: If you discover that your original file omitted certain information returns that should have been included, do not submit those documents as "corrections," and do not code the Payee "B" Record with the correction "G" code. They will be considered as late filed original documents and may be subject to the penalty.

.07 The instructions that follow will provide information on how to file corrected returns on magnetic media for the current tax year. However, if you discover errors in previous years' files, please send us a letter with the following information:

(a) Name and address of payer

(b) Type of error (Please explain clearly.)

(c) Tax year

(d) EIN

(e) TCC

(f) Number of Payees

This information will be forwarded to the appropriate office and may prevent erroneous notices from being generated against payee accounts. You are also required to furnish corrected statements to the payees.

.08 If you are not required to file your corrections on magnetic media and you file them on paper forms, do not submit the paper returns to IRS/MCC. All paper returns, whether original or corrected, must be filed with the appropriate service center. Corrected returns filed on magnetic media must be filed with IRS/MCC. (Refer to Part A, Sec. 3 for the address.) CORRECTED DISKETTES WILL NOT BE RETURNED AFTER PROCESSING.

.09 Corrected statements to payees should be clearly identified as "CORRECTED" and should be provided to them as soon as possible.

.10 A transmittal Form 4804 (or computer-generated substitute) is used to transmit magnetic media. A Form 4802, "Transmittal for Multiple Magnetic Media Reporting," is a continuation sheet for a Form 4804. Use Form 4802 if you file for multiple payers, or submit multiple types of information returns, AND are an authorized agent for the payers. (See Part A, Sec. 9.05.)

.11 On magnetic media files, the Payee "B" Record provides a 20-position field to enter a Payer's Account Number for the Payee. This same account number may be provided on paper forms. This number will help identify the appropriate incorrect return if more than one return is filed for a particular payee. DO NOT ENTER A TIN (SSN OR EIN). A PAYER'S ACCOUNT NUMBER FOR THE PAYEE MAY BE A CHECKING ACCOUNT NUMBER; SAVINGS ACCOUNT NUMBER; SERIAL NUMBER; OR ANY OTHER NUMBER ASSIGNED TO THE PAYEE BY THE PAYER THAT WILL DISTINGUISH THE SPECIFIC ACCOUNT. THIS NUMBER SHOULD APPEAR ON THE INITIAL RETURN AND ON THE CORRECTED RETURN IN ORDER TO IDENTIFY AND PROCESS THE CORRECTION PROPERLY. THIS NUMBER IS ALSO PROVIDED WITH YOUR INVALID/NOTIN NOTIFICATION BY THE IRS AND MAY HELP YOU DETERMINE THE BRANCH OR SUBSIDIARY REPORTING THE TRANSACTION.

.12 REVIEW THE CHART THAT FOLLOWS. The types of errors made normally fall under one of the two categories listed. Next to each type of error made, you will find a list of instructions on how to properly file the corrected return for that type of error. READ AND FOLLOW CAREFULLY ALL OF THE INSTRUCTIONS LISTED FOR THE TYPES OF ERRORS MADE ON THE INITIAL RETURN. IN SOME CASES TWO TRANSACTIONS ARE REQUIRED TO PROPERLY FILE CORRECTIONS. IF THE ORIGINAL RETURN WAS FILED AS AN AGGREGATE, YOU MUST CONSIDER THIS IN FILING CORRECTED RETURNS.

       Guidelines for Filing Corrected Returns On Magnetic Media

 

             (PLEASE READ SEC. 13.01 THROUGH 13.11 BEFORE

 

                        MAKING ANY CORRECTIONS)

 

 

 Error Made on the Original        How To File the Corrected Return on

 

 Return Filed on Magnetic Media    Magnetic Media

 

 --------------------------------------------------------------------

 

 1. Original return was filed      TRANSACTION 1: Identify incorrect

 

    with one or more of the        returns:

 

    following errors:

 

    (a) No Payee TIN (SSN or EIN)  A. Forms 4804 and 4802 (or

 

    (b) Incorrect Payee TIN           computer-generated substitute):

 

    (c) Incorrect Payee Name          1. Prepare a new transmittal

 

    (e) Wrong type of return             Form 4804 (and 4802 if you

 

        indicator                        file for multiple payers), or

 

        TWO SEPARATE TRANSACTIONS        a computer-generated

 

        ARE REQUIRED TO MAKE THE         substitute, that includes

 

        CORRECTION PROPERLY. READ        information related to this

 

        AND FOLLOW ALL                   new file.

 

        INSTRUCTIONS FOR BOTH         2. Mark the Correction box in

 

        TRANSACTIONS 1 AND 2.            Block 1 of the new Form 4804.

 

                                         If you submit a computer

 

                                         -generated substitute for

 

                                         Form 4804, indicate "MAGNETIC

 

                                         MEDIA CORRECTION" at the top.

 

                                      3. Provide ALL requested

 

                                         information correctly.

 

                                      4. If you are a Combined

 

                                         Federal/State filer, it is

 

                                         your responsibility to

 

                                         transmit corrected returns

 

                                         to the state -- IRS will not.

 

                                         Do not include "K" Records in

 

                                         your corrected returns.

 

                                   B. 8 Inch Diskette: (Forms 1098,

 

                                         1099, 5498 or W-2G)

 

                                      1. Prepare a new file.

 

                                      2. Use a separate

 

                                         Payer/Transmitter "A" Record

 

                                         for each type of return being

 

                                         reported. The information in

 

                                         the "A" Record will be the

 

                                         same as it was in the

 

                                         original submission.

 

                                      3. The Payee "B" Record must

 

                                         contain exactly the same

 

                                         information as submitted

 

                                         previously EXCEPT insert a

 

                                         "G" in diskette position 8 of

 

                                         Sector 1 of the "B" Record

 

                                         AND for ALL payment amounts

 

                                         used, enter "0" (zero).

 

                                      4. Corrected returns submitted

 

                                         to IRS using a "G" coded "B"

 

                                         Record may be on the same

 

                                         diskette as those returns

 

                                         submitted without the "G"

 

                                         code; however, separate "A"

 

                                         Records are required.

 

                                      5. Mark the EXTERNAL label of

 

                                         the diskette "MAGNETIC MEDIA

 

                                         CORRECTION."

 

                                      6. Submit the magnetic diskette

 

                                         and the transmittal

 

                                         document(s) to IRS/MCC.

 

                                         (Refer to Part A, Sec. 3 for

 

                                         the address.)

 

 

                                   TRANSACTION 2: Report the correct

 

                                                  information:

 

 

                                      8 Inch Diskette: (Forms 1098,

 

                                        1099, 5498 or W-2G)

 

                                   1. Provide information on the Form

 

                                      4804 or 4802 as stated in

 

                                      Transaction 1A.

 

                                   2. Prepare a new file with the

 

                                      correct information in all

 

                                      records.

 

 

                                   3. Use a separate Payer/Transmitter

 

                                      "A" Record for each type of

 

                                      return being reported.

 

                                   4. Do not "G" code the Payee "B"

 

                                      Record as a corrected return for

 

                                      this type of correction.

 

                                   5. Submit the new returns as though

 

                                      they were originals. Provide all

 

                                      of the correct information

 

                                      including the TIN (SSN or EIN).

 

                                   6. Mark the EXTERNAL label of the

 

                                      diskette "MAGNETIC MEDIA

 

                                      CORRECTION."

 

                                   7. Submit the magnetic diskette and

 

                                      the transmittal document(s) to

 

                                      IRS/MCC. (Refer to Part A, Sec.

 

                                      3 for the address.)

 

 

 2. Original return was filed      A. Forms 4804 and 4802 (or

 

    with one or more of the           computer-generated

 

    following errors:                 substitute)

 

    (a) Incorrect Payment Amount      1. Prepare a new Form 4804 (and

 

        indicator in the Payer           4802 if you file for multiple

 

        "A" Record.                      payers), or a computer-

 

    (b) Incorrect Payment                generated substitute, that

 

        amounts in the Payee "B"         includes information related

 

        Record.                          to this new file.

 

    (c) Incorrect Code in the         2. Mark the Correction box in

 

        Document Specific Code           Block 1 of new Form 4804. If

 

        Field in the Payee "B"           you submit a computer-

 

        Record.                          generated substitute for Form

 

    (d) Incorrect payee address          4804, indicate "Magnetic

 

        (See NOTE)                       Media Correction" at the top.

 

    NOTE: If the only error to        3. Provide ALL requested

 

          be corrected is an             information correctly.

 

          incorrect payee address,    4. If you are a Combined

 

          only one transaction is        Federal/State filer it is

 

          required. However, if          your responsibility to

 

          you are correcting the         transmit corrected returns

 

          name and/or TIN along          to the state -- IRS will not.

 

          with an incorrect              Do not include "K" Records

 

          address, then two              in your corrected returns.

 

          transactions will be     B. 8 Inch Diskette: (Forms 1098,

 

          required (See previous         1099, 5498 or W-2G)

 

          information on              1. Prepare a new file.

 

          correcting an incorrect     2. Use a separate

 

          payee name/TIN).               Payer/Transmitter "A" Record

 

    REQUIRES ONLY ONE TRANSACTION.       for each type of return being

 

                                         reported. The information in

 

                                         the "A" Record will be the

 

                                         same as it was in the

 

                                         original submission EXCEPT,

 

                                         the correct Amount Indicators

 

                                         will be used.

 

                                      3. The Payee "B" Record must

 

                                         contain exactly the same

 

                                         information as submitted

 

                                         previously EXCEPT insert a

 

                                         "G" in diskette position 8,

 

                                         Sector 1, of the "B" Record

 

                                         AND report the correct

 

                                         information as it should have

 

                                         been reported on the original

 

                                         return.

 

                                      4. Corrected returns submitted

 

                                         using a "G" coded "B" Record

 

                                         may be on the same diskette

 

                                         as those returns submitted

 

                                         without the "G" code;

 

                                         however, separate "A" Records

 

                                         are required.

 

                                      5. Mark the EXTERNAL label of

 

                                         the diskette "MAGNETIC MEDIA

 

                                         CORRECTION."

 

                                      6. Submit the magnetic diskette

 

                                         and the transmittal

 

                                         document(s) to IRS/MCC.

 

                                         (Refer to Part A, Sec. 3.)

 

 

SEC. 14. TAXPAYER IDENTIFICATION NUMBERS (TIN)

.01 Section 6109 of the Internal Revenue Code, and the regulations thereunder, require a person whose Taxpayer Identification Number (TIN) must be shown on an information return to furnish his or her TIN to the person required to file the information return. The number must be furnished to the payer whether or not the payee is required to file a tax return or is covered by social security.

.02 The payee's TIN is used to associate and verify amounts reported to IRS with corresponding amounts on tax returns. Therefore, it is particularly important that CORRECT social security and employer identification numbers for payees be provided on magnetic media or paper forms submitted to IRS. DO NOT ENTER HYPHENS, ALPHA CHARACTERS, ALL 9S OR ALL ZEROS. IRS validates the SSN by using the Name Control of the surname (last name) of the individual who has been assigned this number. For this reason, provide the surname in the First Payee Name Line and/or the Name Control in positions 9-12 of the Payee "B" Record (see Part B, Sec. 6). Failure to provide this information may make it impossible for IRS to validate the SSN.

.03 The TIN to be furnished to IRS depends primarily upon the manner in which the account is maintained or set up on the payer's record. The payer and payee names with associated TINs should be consistent with the names and TINs used on other tax returns.

Also, the name and TIN provided must belong to the owner of the account. If the account is recorded in more than one name, furnish the name and TIN of one of the owners of the account. The TIN provided MUST be associated with the name of the payee provided in the first name line of the Payee "B" Record. For individuals, including sole proprietors, the payee TIN is the payee's social security number. For other entities, the payee TIN is the payee's employer identification number.

.04 Failure to provide the correct name with the payee TIN, or failure to provide a valid TIN, could result in an Invalid/No TIN notice (sometimes referred to as "B" notice) being generated for that TIN.

.05 The following charts will help you determine the TIN to be furnished to IRS for those persons for whom you are reporting information (payees).

            CHART 1. Guidelines for Social Security Numbers

 

 

                       In the Taxpayer

 

                       Identification Number   In the First Payee Name

 

                       field of the Payee      Line of the Payee "B"

 

 For this type of      "B" Record, enter the   Record, enter the name

 

 account --            SSN of --               of --

 

 --------------------------------------------------------------------

 

 1. Individual         The individual          The individual

 

 2. Joint account      The actual owner of     The individual whose

 

 (Two or more          the account. (If        SSN is entered

 

 individuals,          more than one owner,

 

 including husband     the first individual

 

 and wife)             on the account)

 

 3. Custodian account  The minor               The minor

 

 of a minor (Uniform

 

 Gift or Transfers

 

 to Minors Act)

 

 4. The usual          The grantor-trustee     The grantor-trustee

 

 revocable savings

 

 trust account

 

 (grantor is also

 

 trustee)

 

 5. A so-called        The actual owner        The actual owner

 

 trust account that

 

 is not a legal or

 

 valid trust under

 

 state law

 

 6. A sole             The owner               The owner, not the

 

 proprietorship                                business name

 

 

        CHART 2. Guidelines for Employer Identification Numbers

 

 

                       In the Taxpayer

 

                       Identification Number   In the First Payee Name

 

                       field of the Payee      Line of the Payee "B"

 

 For this type of      "B" Record, enter the   Record, enter the name

 

 account --            SSN of --               of --

 

 --------------------------------------------------------------------

 

 1. A valid trust,     Legal entity 1        The legal trust,

 

 estate, or pension                            estate, or pension

 

 trust                                         trust

 

 2. Corporate          The corporation         The corporation

 

 3. Association,       The organization        The organization

 

 club, religious,

 

 charitable,

 

 educational or

 

 other tax-exempt

 

 organization

 

 4. Partnership        The partnership         The partnership

 

 account held in

 

 then name of

 

 the business

 

 5. A broker or        The broker or           The broker or

 

 registered            nominee/middleman       nominee/middleman

 

 nominee/middleman

 

 6. Account with the   The public entity       The public entity

 

 Department of

 

 Agriculture in the

 

 name of a public

 

 entity, (such as

 

 a state or local

 

 government, school

 

 district or

 

 prison), that

 

 receives

 

 agriculture

 

 program payments

 

 

      1 Do not furnish the identification number of the personal

 

 representative or trustee unless the name of the representative or

 

 trustee is used in the account title.

 

 

SEC. 15. EFFECT ON PAPER RETURNS

.01 Magnetic media reporting of the information returns listed in Part A, Sec. 4 applies only to the information submitted to IRS (Copy A).

.02 Payers are responsible for providing statements to the payees as outlined in the 1990 "Instructions for Forms 1099, 1098, 5498 and W-2G."

.03 Refer to 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" for instructions and changes to reporting information returns on paper.

.04 Send all information returns filed on paper to the appropriate service center, not to IRS/MCC.

.05 If you file your information returns on magnetic media, DO NOT file the same returns on paper, since that will result in duplicate filing. Filing on magnetic media or by electronic filing takes the place of submitting the documents on paper. In some cases, you may want to file your original documents on magnetic media, but submit your corrections on paper documents. This is allowable as long as your corrections do not exceed the filing threshold; if the volume of corrections does exceed the threshold, you MUST have an approved waiver to submit your corrections on paper.

SEC. 16. COMBINED FEDERAL/STATE FILING PROGRAM

.01 The Combined Federal/State Program was established to simplify information returns filing for the taxpayer by providing the tax information to participating states free-of-charge. IRS/MCC will forward this information to participating states for approved filers so that separate reporting to those states is not necessary. FORMS 1098, 1099-A, 1099-B, 1099-S, AND W-2G CANNOT BE FILED UNDER THIS PROGRAM.

.02 To request approval to participate, a "TEST" file coded for this program, MUST be submitted by the transmitter to IRS/MCC between October 1 and December 15 using the revenue procedure that will be used to submit the actual data files.

.03 Attach a letter to the Form 4804 submitted with the "TEST" file which indicates that you wish to participate in this program.

.04 The "TEST" file is only required for the first year. Once you are approved, you need not resubmit tests each year except when notified by IRS. (See Part A, Sec. 8 for general guidelines on submission of "TEST" files.) Each record, both in the "TEST" file and the "ACTUAL" data file, must conform exactly to the revenue procedure for that tax year. Records must be coded using each state's dollar criteria from TABLE 2 of this section for each type of return.

.05 If your "TEST" file is acceptable, we will send you an approval letter and a Form 6847, Consent for Internal Revenue Service to Release Tax Information, which the payer MUST complete, sign, and return to IRS/MCC before any tax information can be released to the state. Be sure to write your TCC on Form 6847. If your "TEST" file is not acceptable, we will return your media with a letter indicating what the problems were, and your replacement "TEST" file must be returned to IRS/MCC postmarked on or before December 15.

.06 A separate Form 6847 is required for each payer; therefore, this form may be photocopied so that you may provide copies to all of the payers for whom you submit magnetic media or electronic files. A transmitter may not combine payers on one Form 6847 even though acting as Attorney-in-Fact for several payers. Form 6847 may be computer-generated as long as it includes all information that is on the original form. If the Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must clearly indicate that the Attorney-in-Fact is empowered to authorize release of the information.

.07 If you file for multiple payers, code the records only for participating states and for those payers who have properly submitted Form 6847. Do not submit records coded for the Combined Federal/State Program WITHOUT PRIOR APPROVAL from IRS.

.08 If you had applied to participate in this program in the past but did not meet the requirements, you must resubmit a test and the Form 6847 with the proper signatures as specified.

.09 Some participating states require separate notification that you are filing in this manner. Since IRS acts as a forwarding agent only, IT IS YOUR RESPONSIBILITY TO CONTACT THE APPROPRIATE STATES FOR FURTHER INFORMATION.

.10 Approval to participate in the Combined Federal/State Program will be revoked if files submitted do not totally conform to the specifications in this revenue procedure.

.11 IT IS THE FILER'S RESPONSIBILITY TO TRANSMIT CORRECTED RETURNS TO THE STATES.

.12 Participating states and corresponding valid state codes are listed in TABLE 1 of this section. If the state that you wish information released to does not participate in the program, do not code your records for that state. It is the filer's responsibility to file information returns with those states not participating in the Combined Federal/State program.

.13 The appropriate state code MUST be entered for those documents which meet the state's filing requirements (see TABLE 1). DO NOT USE STATE ABBREVIATIONS. It is the filer's responsibility to determine the state code to be used and to obtain the filing requirements from the appropriate state(s).

.14 To simplify filing, several of the participating states have provided lists of their information return reporting requirements (see TABLE 2). It is your responsibility to contact the participating states to verify the criteria provided in this table.

.15 If you have met ALL of the above conditions:

(a) You must submit all records coded exactly as required by this revenue procedure.

(b) The "C" Record must be followed by a "K" Record for each state. The "K" Record indicates the number of payees being reported to each particular state.

(c) Payment amount totals and the valid participating state code must be included in the State Totals "K" Record. Refer to Part B, Sec. 8, for a description of the "K" Record.

(d) The last "K" Record is followed by an "A" Record or End of Transmission "F" Record (if this is the last record of the entire file).

             TABLE 1. PARTICIPATING STATES AND THEIR CODES

 

 

 State                                                            Code

 

 ---------------------------------------------------------------------

 

 Alabama                                                           01

 

 Arizona                                                           04

 

 Arkansas                                                          05

 

 California                                                        06

 

 Delaware                                                          10

 

 District of Columbia                                              11

 

 Georgia                                                           13

 

 Hawaii                                                            15

 

 Idaho                                                             16

 

 Indiana                                                           18

 

 Iowa                                                              19

 

 Kansas                                                            20

 

 Maine                                                             23

 

 Massachusetts                                                     25

 

 Minnesota                                                         27

 

 Mississippi                                                       28

 

 Missouri                                                          29

 

 Montana                                                           30

 

 New Jersey                                                        34

 

 New Mexico                                                        35

 

 New York                                                          36

 

 North Carolina                                                    37

 

 North Dakota                                                      38

 

 Oregon                                                            41

 

 South Carolina                                                    45

 

 Tennessee                                                         47

 

 Wisconsin                                                         55

 

 

             TABLE 2. DOLLAR CRITERIA FOR STATE REPORTING

 

 

                1099   1099    1099     1099   1099   1099   1099

 

 STATE          -DIV    -G     -INT    -MISC   -OID  -PATR    -R  5498

 

 ---------------------------------------------------------------------

 

 Alabama       $1500  $  NR   $1500    $1500  $1500  $1500  $1500   NR

 

 Arkansas        100   2500     100     2500   2500   2500   2500  /g/

 

 District of

 

  Columbia /b/   600    600     600      600    600    600    600   NR

 

 Hawaii           10    /g/  10 /c/      600     10     10    600  /g/

 

 Idaho            10     10      10      600     10     10    600  /g/

 

 Iowa            100   1000    1000     1000   1000   1000   1000   NR

 

 Minnesota        10     10      10      600     10     10    600  /g/

 

 Mississippi     600    600     600      600    600    600    600   NR

 

 Missouri         NR     NR      NR 1200 /d/     NR     NR     NR   NR

 

 Montana          10     10      10      600     10     10    600  /g/

 

 New Jersey     1000   1000    1000     1000   1000   1000   1000   NR

 

 New York         NR    600     600  600 /e/     NR    600    600   NR

 

 North Carolina  100    100     100      600    100    100    100  /g/

 

 Tennessee        25     NR      25       NR     NR     NR     NR   NR

 

 Wisconsin        NR     NR      NR      600     NR    600    600   NR

 

 

 NOTE: This cumulative list is for information purposes only and

 

 represents dollar criteria. For complete information on state filing

 

 requirements, including any changes which may apply, contact the

 

 appropriate state tax agencies. Filing requirements for any state in

 

 TABLE 1 not shown in TABLE 2 are the same as the Federal requirement.

 

 

 NR -- No filing requirement.

 

 

 Footnotes:

 

 

      /a/ These requirements apply to individuals and business

 

 entities.

 

 

      /b/ Amounts are for aggregates of several types of income from

 

 the same payer.

 

 

      /c/ State regulation changing filing requirement from $600 to

 

 $10 is pending.

 

 

      /d/ The state would prefer those returns filed with respect to

 

 non-Missouri residents to be sent directly to the state agency.

 

 

      /e/ Aggregate of several types of income.

 

 

      /f/ Same as Federal requirement for this type of return.

 

 

      /g/ All amounts are to be reported.

 

 

SEC. 17. DEFINITIONS OF TERMS

 Element                 Description

 

 

 b                       Denotes a blank position. Enter blank(s) when

 

                         this symbol is used (do not enter the letter

 

                         "b"). This appears in numerous areas

 

                         throughout the record descriptions.

 

 

 CUSIP Number            A number developed by the Committee on

 

                         Uniform Security Identification Procedure to

 

                         serve as a common denominator in

 

                         communications among users for security

 

                         transactions and security information.

 

 

 EIN                     A nine-digit number (Employer Identification

 

                         Number) that has been assigned by IRS to the

 

                         taxpayer.

 

 

 Electronic Filing       Submission of information returns using

 

                         switched telecommunications network circuits.

 

                         These transmissions use modems, dial-up phone

 

                         lines, and bi-synchronous protocols. See

 

                         Publication 1220 for specific information on

 

                         electronic filing.

 

 

 File                    For purposes of this procedure, a file

 

                         consists of all records submitted by a Payer

 

                         or Transmitter, either magnetically or

 

                         electronically.

 

 

 Foreign Corporation     Any corporation organized or created other

 

                         than in or under the laws of the United

 

                         States or any of its states or territories.

 

 

 Magnetic Media          For purposes of this procedure, the term

 

                         "magnetic media" refers to 1/2 inch magnetic

 

                         tape; IBM 3480 compatible tape cartridge; or

 

                         8 inch, 5 1/4, or 3 1/2 inch diskette.

 

                         Magnetic media may be produced on mainframe

 

                         computer systems; mini- or micro-computer

 

                         systems; or personal computers.

 

 

 PS 58 Costs             The current cost of life insurance under a

 

                         qualified plan taxable under section 72(m)

 

                         and Regulations section 1.72-16(b). (See Part

 

                         B, Sec. 6 Payee "B" Record, Document Specific

 

                         Code, Category of Distribution, Code 9.)

 

 

 Payee                   Person or organization receiving payments

 

                         from the Payer, or for whom an information

 

                         return must be filed. The payee includes a

 

                         borrower (Form 1099-A), participant (Form

 

 

                         5498) and a gambling winner (Form W-2G). For

 

                         Form 1098, the payee is the individual paying

 

                         the interest. For Form 1099-S, the payee is

 

                         the seller or other transferor.

 

 

 Payer                   Includes the person making payments, a

 

                         recipient of mortgage interest payments, a

 

                         broker, a person reporting a real estate

 

                         transaction, a barter exchange, a trustee or

 

                         issuer of an IRA or SEP, or a lender who

 

                         acquires an interest in secured property or

 

                         who has reason to know that the property has

 

                         been abandoned. The payer will be held

 

                         responsible for the completeness, accuracy

 

                         and timely submission of magnetic media

 

                         files.

 

 

 Special Character       Any character that is not a numeral, an

 

                         alpha, or a blank.

 

 

 SSA                     Social Security Administration.

 

 

 SSN                     Social Security Number.

 

 

 Taxpayer                May be either an EIN or SSN.

 

 Identification

 

 Number (TIN)

 

 

 Transfer Agent          The transfer agent or paying agent is the

 

 (Paying Agent)          entity who has been contracted or authorized

 

                         by the payer to perform the services of

 

                         paying and reporting backup withholding (Form

 

                         941). The payer may be required to submit to

 

                         IRS a Form 2678, Employer Appointment of

 

                         Agent Under Section 3504 of the Internal

 

                         Revenue Code, which notifies IRS of the

 

                         transfer agent relationship.

 

 

 Transmitter             Person or organization submitting magnetic

 

                         media file(s). May be Payer or agent of

 

                         Payer.

 

 

 Transmitter Control     A five character alpha/numeric number

 

 Code (TCC)              assigned by IRS to the transmitter prior to

 

                         actual filing on magnetic media. This number

 

                         is inserted in the "A" Record of your files

 

                         and must be present before the file can be

 

                         processed. An application Form 4419 must be

 

                         filed with IRS to receive this number. (See

 

                         Part A, Sec. 7.)

 

 

SEC. 18. STATE ABBREVIATIONS

.01 You MUST use the following state abbreviations when developing the state code portion of address fields. (This table provides state abbreviations only and does not represent those states participating in the Combined Federal/State Filing Program. For a list of states that participate in the Combined Federal/State Program, refer to Part A, Sec. 16, Table 1.)

 State                                                            Code

 

 ---------------------------------------------------------------------

 

 Alabama                                                           AL

 

 Alaska                                                            AK

 

 American Samoa                                                    AS

 

 Arizona                                                           AZ

 

 Arkansas                                                          AR

 

 California                                                        CA

 

 Colorado                                                          CO

 

 Connecticut                                                       CT

 

 Delaware                                                          DE

 

 District of Columbia                                              DC

 

 Florida                                                           FL

 

 Georgia                                                           GA

 

 Guam                                                              GU

 

 Hawaii                                                            HI

 

 Idaho                                                             ID

 

 Illinois                                                          IL

 

 Indiana                                                           IN

 

 Iowa                                                              IA

 

 Kansas                                                            KS

 

 Kentucky                                                          KY

 

 Louisiana                                                         LA

 

 Maine                                                             ME

 

 Mariana Islands                                                   CM

 

 Maryland                                                          MD

 

 Massachusetts                                                     MA

 

 Michigan                                                          MI

 

 Minnesota                                                         MN

 

 Mississippi                                                       MS

 

 Missouri                                                          MO

 

 Montana                                                           MT

 

 Nebraska                                                          NE

 

 Nevada                                                            NV

 

 New Hampshire                                                     NH

 

 New Jersey                                                        NJ

 

 New Mexico                                                        NM

 

 New York                                                          NY

 

 North Carolina                                                    NC

 

 North Dakota                                                      ND

 

 Ohio                                                              OH

 

 Oklahoma                                                          OK

 

 Oregon                                                            OR

 

 Pennsylvania                                                      PA

 

 Puerto Rico                                                       PR

 

 Rhode Island                                                      RI

 

 South Carolina                                                    SC

 

 South Dakota                                                      SD

 

 Tennessee                                                         TN

 

 Texas                                                             TX

 

 Utah                                                              UT

 

 Vermont                                                           VT

 

 Virgin Islands                                                    VI

 

 Virginia                                                          VA

 

 Washington                                                        WA

 

 West Virginia                                                     WV

 

 Wisconsin                                                         WI

 

 Wyoming                                                           WY

 

 

.02 You must use the 29-2-9 City, State, and ZIP Code format for U.S. addresses which include American Somoa, Guam, Mariana Islands, Puerto Rico, and the Virgin Islands.

.03 For Foreign Country addresses you may use a 40-position free format in lieu of the 29-2-9 City, State, and ZIP Code format; however, this is only allowable if a "1" appears in the Foreign Country Indicator field of the "B" Record. You may choose to spell out the name of the foreign country or use abbreviations.

.04 When reporting APO/FPO addresses in Payee documents, the following format should be used:

EXAMPLE: Payee Name PVT Willard J. Doe

 

              Mailing Address Company F, PSC Box 100 )

 

                                  167 Infantry REGT ) See NOTE

 

              Payee City APO New York

 

              Payee State

 

              Payee ZIP Code 098010100

 

 

NOTE: Mailing address must be reported as one 40-position field.

 

 

SEC. 19. MAJOR PROBLEMS ENCOUNTERED

After preparing your files, we encourage you to verify the format and content of each type of record to ensure the accuracy of your data submission. This may eliminate the need for IRS/MCC to return your file for replacement, and reduce the likelihood of a penalty assessment for incorrect submissions. We strongly urge you to print your data before shipping to make sure you have good data in your records according to the format found in this revenue procedure. This is especially true for those filers who have either had their files prepared by a third party service bureau, or who have purchased pre-programmed software packages. If you purchased your software package for a previous tax year, it will no longer be valid for reporting your tax year 1990 information returns, since there were programming changes.

Following are some of the most frequently encountered problems with magnetic media files submitted to IRS/MCC which result in files being returned to the filer:

1. The Payment Amount Fields in the Payee "B" Record do not correspond to the amount indicators in the Payer "A" Record.

If Amount Indicators 2, 4 and 7 appear in Sector 1, positions 24, 25 and 26 of the Payer "A" Record, then the Payee "B" Record must show payment amounts in Fields 2 (Sector 1, position 62-71), 4 (Sector 1, position 82-91) and 7 (Sector 1, position 112-121), right-justified and unused positions zero filled.

EXAMPLE: "A" RECORD 247bbbbbbb -- (b = blank)

 

                       ----------

 

                       (Sector 1, pos. 24-32)

 

 

           "B" RECORD 0000867599 -- (Payment Amount 2)

 

                       ----------

 

                       (Sector 1, pos. 62-71)

 

 

                       0000709097 -- (Payment Amount 4)

 

                       ----------

 

                       (Sector 1, pos. 82-91)

 

 

                       0000044985 -- (Payment Amount 7)

 

                       ----------

 

                       (Sector 1, pos. 112-121)

 

 

2. Blanks or invalid characters appear in Payment Amount Fields in the Payee "B" Record.

Money amounts must be right-justified and zero (0) filled. DO NOT USE BLANKS. Each payment amount must be entered in U.S. dollars and cents; however, do not use dollar signs, decimal points, or commas, as these characters are understood. For example, if you are reporting a money amount of $100.00, your payment amount field would be coded "0000010000."

DO NOT ENTER NEGATIVE AMOUNTS EXCEPT for Amount Indicators 2, 6, 7, 8 or 9 of the Form 1099-B. A negative overpunch in the units position may be used instead of a minus sign in the leftmost position to indicate negative amounts. If a minus sign or negative overpunch is not used, the amount is assumed to be positive.

3. Data is in prior year's format.

Revenue procedures are updated each year and you must use the current revenue procedure to format your records. DO NOT USE 1989 REVENUE PROCEDURES FOR 1990 FILING.

4. Discrepancy between IRS totals and totals in Payer "C" Records.

The Payer "C" Record is a summary record for a type of return for a given payer as reported in the Payee "B" Records. IRS computers automatically compute the total number of payees and total payment amounts in the Payee "B" records and these totals are compared against the totals in the Payer "C" Records. These totals are also manually checked against the totals provided on Forms 4804/4802. Payers should verify the accuracy of the records because imbalances necessitate return of files for correction.

5. Incorrect/Invalid EIN in Payer "A" Record.

The Payer's federal EIN reported in Sector 1, positions 8-16 of the Payer "A" Record must be correct in order for IRS to process the media. Be sure the EIN reported on the Form 4804 and Form 4802 matches the EIN reported in the "A" Record. Do not enter blanks, hyphens, alphas, all 9s or all 0s. This field may be left blank for foreign corporations not required to have an EIN if the foreign indicator code is present in the "A" Record. Also, please double check for transposed numbers because an incorrect EIN will cause records to go unpostable; i.e., the records will not post to the Master File.

6. Bad Format.

We receive magnetic tape formatted using 8-inch diskette specifications and vice versa.

BE SURE TO USE THE PROPER REVENUE PROCEDURE FOR FORMATTING YOUR DATA. Use Publication 1220 for formatting magnetic tape, tape cartridge, 5 1/4 and 3 1/2 inch diskettes, and for electronic filing. Use Publication 1255 for formatting 8-inch diskettes only.

7. Reporting Payments on Form 1099-R, Payer "A" Record.

There is no provision for reporting the Distribution Code (entered in Box 7 on the paper Form 1099-R) in the Payer "A" Record. This information is reported in the Document Specific Code of the Payee "B" Record. Therefore, the Amount Indicators in the Payer "A" Record should be reported as follows if you are reporting all 8 Amount Codes: 12345689b. Amounts are entered in ascending sequence, left-justified, and unused positions blank filled. The Amount Indicators may change from year to year. Please be sure your Payer "A" Record only contains the Amount Indicators specified in the revenue procedure.

8. Block size exceeds 25,200 positions.

Be sure your records do not span blocks. Even though the size was changed from 10,000 to 25,200 positions, filers are still exceeding the block size.

9. Bad or incomplete address in the Payer "A" Record.

The Payer's address in Part B, Sector 2, positions 44-83 and Part C, Sector 1, positions 132-171 of the Payer "A" Record should be left-justified and blank filled, and must agree with the address provided on Forms 4804/4802. Payer's City, State and ZIP must appear in Part B, Sector 2, positions 84-123 and Part C, Sector 1, positions 172-211 and must be left-justified and blank filled.

10. Record length is invalid.

Beginning in Tax Year 1987, the record length was changed from 360 to 420 positions. Some filers are still using old programs that create records of 360 positions, which are now unacceptable.

RECORDS MUST BE A FIXED 420 POSITIONS.

11. The City/State/ZIP Code in the Payee "B" Record is in wrong format.

The Payee City (Part B, Sector 3, positions 43-71 and Part C, Sector 2, positions 43-71), State (Part B, Sector 3, positions 72-73 and Part C, Sector 2, positions 72-73), and ZIP Code (Part B, Sector 3, positions 74-82 and Part C, Sector 2, positions 74-82 and Part C, Sector 2, positions 74-82) in the Payee "B" Record MUST be coded in the correct positions. If your program cannot code this information in the correct fields, you MUST request a deviation in writing from IRS/MCC. Files submitted with the City/State/ZIP Code information coded incorrectly, and for which a deviation has not been approved by IRS/MCC, will be returned for replacement.

12. Invalid type of return indicator.

You must indicate the type of return submitted by inserting the appropriate code in Position 23 of the Payer/Transmitter "A" Record. For example, if the type of return being reported is Form 1099-INT, a code "6" must be inserted in Position 23.

13. Form W-2/W-2P information submitted on same media as Form 1099 information.

Form W-2/W-2P information is processed by the Social Security Administration (SSA). The Social Security Administration has its own magnetic media reporting program for wage information; therefore, the media containing Forms W-2/W-2P is submitted to SSA. Any media received at IRS/MCC which contains Form W-2/W-2P information will be returned to the filer. Contact your local SSA office for information concerning filing Forms W-2/W-2P on magnetic media.

14. Excessive withholding credits.

For most information returns other than Form 1099-R, withholding credits should not exceed 20 percent of the income reported. Validate the total reported in the withholding field against the total income reported.

15. Incorrect format for Taxpayer Identification Numbers (TIN) in the Payee "B" Record.

A check of your Payee "B" Records should be made to ensure the TIN's are formatted correctly. There should be nine digits, no alpha characters, no hyphens or commas. Incorrect formatting of TIN's may result in a penalty.

PART B. SINGLE DENSITY DISKETTE SPECIFICATIONS

SECTION 1. GENERAL

.01 The specifications contained in this part of the revenue procedure define the required format and contents of the records to be included in a single density diskette file and must be strictly adhered to unless deviations have been specifically granted by IRS.

.02 To be compatible, a single density diskette file must meet the following specifications in total:

(a) 8 inches in diameter.

(b) Recorded in EBCDIC.

(c) Contain 77 tracks of which:

(1) Track 0 is the index track (the operating system reserves track 0 for the directory information and writes the file name and location in the directory; data cannot be written in track 0).

(2) Tracks 1 through 73 are data tracks.

(3) Track 74 is unused.

(4) Tracks 75 and 76 are alternate data tracks.

(d) Each Track must contain 26 sectors.

(e) Each Sector must contain 128 bytes.

(f) Data must be recorded on only one side of the diskette.

(g) IRS can process single sided, single density, soft sectored diskettes as well as double sided, double density, soft sectored diskettes. Part C provides specifications for double density diskettes which have sectors of 256 bytes.

(h) An IBM 5360 compatible diskette would meet the above specifications.

(i) Hard sectored diskettes are not compatible.

(j) A diskette should be clearly marked as to which type of data (single sided/single density or double sided/double density) is on each diskette, and preferably, the entire file should consist of either all single sided/single density or all double sided/double density diskettes.

.03 Payers who can substantially conform to these specifications, but require some minor deviations, MUST contact IRS/MCC. Diskettes deviating from the specifications in this revenue procedure must not be submitted without prior approval from IRS. If you file under the Combined Federal/State Filing Program, your files must conform totally to this revenue procedure.

.04 Form 5064, Media Label, must be affixed to each diskette submitted for processing. The following information is needed:

(a) The transmitter's name.

(b) The five character alpha/numeric Transmitter Control Code (TCC).

(c) The tax year of the data (e.g., 1990).

(d) Operating system/software and hardware.

(e) Document types (e.g., 1098, 5498, INT, DIV, MISC, etc.).

(f) The total number of "B" Records on the diskette.

(g) An in-house volume serial number assigned by the transmitter to the diskette, if applicable. (This is optional for those organizations which assign their own numbers to their media.) If you do not assign media numbers, leave this blank.

(h) The sequence of each diskette (e.g., 001 of 008; 002 of 008, etc.) However, if your file is complete on one diskette (ends with an "F" Record) the sequence will be 001 of 001. The information on the external label, Form 5064, will assist IRS in processing the file, or in locating a file if the transmitter requests its return due to errors.

SEC. 2. DISKETTE HEADER LABEL

The following header label format applies to both single and double density diskettes.

The header label on the diskette must be located in track 0, sector 8 and must be formatted as shown in the following layout. If your system automatically creates a header label, this is not necessary. If the file will consist of multiple diskettes, the Multi-Volume indicator in the diskette header label must contain a "C".

[Editor's note: Pictorial record layouts depicting specifications discussed above have been omitted. These illustrations are not suitable for electronic reproduction.]

SEC. 3. PAYER/TRANSMITTER "A" RECORD

.01 The Payer/Transmitter "A" Record identifies the payer and transmitter of the diskette and provides parameters for the succeeding Payee "B" Records. IRS computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the "B" Records to which they apply.

.02 The number of "A" Records appearing on a diskette will depend on the number of payers and the different types of returns being reported. The payment amounts for one payer for one type of return must be consolidated under one "A" Record if submitted on the same file.

.03 Do not submit separate "A" Records for each payment amount being reported. For example, if you are filing Form 1099-DIV to report Amount Codes 1, 2, and 3, all three amount codes must be reported under one "A" Record, not three separate "A" Records. For Payee "B" Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no amount to be reported.

.04 After the header label on the diskette, the first record appearing in the file must be an "A" Record. When a single density diskette is used each "A" Record will consist of at least 2 sectors of 128 positions each; however, if you are transmitting for someone other than yourself, 4 sectors are required.

.05 A transmitter may include Payee "B" Records for more than one payer on a diskette; however, each GROUP of Payee "B" Records must be preceded by an "A" Record.

.06 A single diskette may also contain different types of returns, but the returns MUST NOT be intermingled. A separate "A" Record is required for each payer and each type of return being reported. An "A" Record may be blocked with "B" Records; however, the initial record on a file must be an "A" Record. IRS will accept an "A" Record after a "C" Record.

.07 All alpha characters entered in the "A" Record should be uppercase.

.08 WHEN REPORTING FORM 1098, MORTGAGE INTEREST STATEMENT, THE "A" RECORD WILL REFLECT THE NAME OF THE RECIPIENT OF THE INTEREST (THE FILER). THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST (BORROWER/PAYER OF RECORD) AND THE AMOUNT PAID.

NOTE: For all fields marked REQUIRED, you must provide the information described under Description and Remarks. For fields not marked REQUIRED, you must allow for the field but may be instructed to enter blanks or zeros in the indicated diskette position(s) and for the indicated length.

               RECORD NAME: PAYER/TRANSMITTER "A" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "1". It is

 

            Sequence                    used to sequence the sectors

 

                                        making up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "A".

 

 

 3-4        Payment Year       2        REQUIRED. Enter "90".

 

 

 5-7        Diskette           3        Sequence number assigned by

 

            Sequence                    the transmitter to each

 

            Number                      diskette starting with 001.

 

                                        (You may choose to enter

 

                                        blanks or zeros in this field.

 

                                        IRS bypasses this

 

                                        information.) You must

 

                                        indicate the proper sequence

 

                                        on the external label Form

 

                                        5064.

 

 

 8-16       Payer's            9        REQUIRED. Must be the valid 9-

 

            Federal EIN                 digit number assigned to the

 

                                        payer by IRS. DO NOT ENTER

 

                                        BLANKS, HYPHENS, ALPHA

 

                                        CHARACTERS, ALL 9's OR ALL

 

                                        ZEROS. (Also see Part A, Sec.

 

                                        14.) For foreign corporations

 

                                        not required to have an EIN,

 

                                        this field may be left blank.

 

                                        Foreign corporations should

 

                                        have the Foreign Corporation

 

                                        Indicator set to "1". (See

 

                                        Part A, Sec. 17 for the

 

                                        definition of a Foreign

 

                                        Corporation.)

 

 

 17-20      Payer Name         4        The Payer Name Control can be

 

            Control                     obtained from the mail label

 

                                        on the Package 1099 which is

 

                                        mailed to most payers on

 

                                        record each December. To

 

                                        distinguish between the

 

                                        Package 1099 and Magnetic

 

                                        Media Reporting (MMR) package,

 

                                        the Package 1099 contains

 

                                        instructions for paper filing

 

                                        only and the mail label on

 

 

                                        the package contains a four

 

                                        (4) character NAME CONTROL.

 

                                        The MMR package contains

 

                                        instructions for filing on

 

                                        magnetic media only, and the

 

                                        mail label DOES NOT contain a

 

                                        name control. Names of less

 

                                        than four (4) characters

 

                                        should be left-justified,

 

                                        filling the unused positions

 

                                        with blanks. If you have not

 

                                        received a Package 1099 or you

 

                                        do not know your Payer Name

 

                                        Control, this field should be

 

                                        blank filled.

 

 

 21         Blank              1        Enter blank.

 

 

 22         Combined           1        FORMS 1098, 1099-A, 1099-B,

 

            Federal/                    1099-S AND W2-G CANNOT BE

 

            State Filer                 FILED  ON THIS PROGRAM.

 

 

                                        Enter the appropriate code

 

                                        from the following table:

 

 

                                        Code        Meaning

 

                                        1           Participating in

 

                                                    the Combined

 

                                                    Federal/State

 

                                                    Filing Program

 

                                        blank       Not participating

 

 

                                        Prior approval is required. A

 

                                        Consent Form 6847 must be

 

                                        submitted to IRS before tax

 

                                        information will be released

 

                                        to the states. (Refer to Part

 

                                        A, Sec. 16, Table 2, for money

 

                                        criteria.) Not all states

 

                                        participate in this program.

 

                                        If the Payer/Transmitter is

 

                                        not participating in the

 

                                        Combined Federal/State Filing

 

                                        Program, enter blank. (Refer

 

                                        to Part A, Sec. 16 for the

 

                                        requirements that must be met

 

                                        prior to actual participation

 

                                        in this program.) Filers

 

                                        participating in this program

 

                                        must incorporate state totals

 

                                        into corresponding "K" Records

 

                                        as described in Part A, Sec.

 

                                        16.

 

 

 23         Type of            1        REQUIRED. Enter appropriate

 

            Return                      code from table below:

 

                                        Type of Return      Code

 

                                        1098                3

 

                                        1099-A              4

 

                                        1099-B              B

 

                                        1099-DIV            1

 

                                        1099-G              F

 

                                        1099-INT            6

 

                                        1099-MISC           A

 

                                        1099-OID            D

 

                                        1099-PATR           7

 

                                        1099-R              9

 

                                        1099-S              S

 

                                        5498                L

 

                                        W-2G                W

 

 

 24-32      Amount             9        REQUIRED. In most cases, the

 

            Indicators                  box numbers on paper

 

                                        information returns and the

 

                                        amount codes on magnetic media

 

                                        correspond. However, if

 

                                        discrepancies do occur, the

 

                                        instructions in this revenue

 

                                        procedure govern. For a

 

                                        detailed explanation of the

 

                                        information to be reported in

 

                                        each Amount Code, refer to the

 

                                        1990 "Instructions for Forms

 

                                        1099, 1098, 5498, and W-2G",

 

                                        included in your magnetic

 

                                        media reporting package.

 

 

                                        The amount indicators entered

 

                                        for a given type of return

 

                                        indicate type(s) of payment(s)

 

                                        which were made. For each

 

                                        Amount Code entered in this

 

                                        field, a corresponding Payment

 

                                        Amount will appear in the

 

                                        Payee "B" Record.

 

 

                                        EXAMPLE: If Sector 1, position

 

                                        23 of the Payer/Transmitter

 

                                        "A" Record is "7" (for 1099-

 

                                        PATR) and positions 24-32 are

 

                                        "247bbbbbb", (b = blanks),

 

                                        this indicates that you will

 

                                        be reporting 3 actual Payment

 

                                        Amounts in all of the

 

                                        following Payee "B" Records.

 

                                        The first Payment Amount field

 

                                        in the Payee "B" Record will

 

                                        be all "0" (zeros); the second

 

                                        will represent Nonpatronage

 

                                        distributions; the third will

 

                                        be all "0" (zeros); the fourth

 

                                        will represent Federal income

 

                                        tax withheld; the fifth and

 

                                        sixth will be all "0" (zeros);

 

                                        the seventh will represent

 

                                        Energy investment credit; and,

 

 

                                        the eighth and ninth will be

 

                                        all "0" (zeros). Enter the

 

                                        Amount Indicators in

 

                                        ASCENDING SEQUENCE (i.e.,

 

                                        247bbbbbb, b = blanks)

 

                                        left-justify, filling unused

 

                                        positions with blanks. For

 

                                        further clarification of the

 

                                        Amount Indicator codes,

 

                                        contact IRS/MCC. (See Part A,

 

                                        Sec. 3)

 

 

            Amount                      For Reporting Interest

 

            Indicators                  Received from

 

            Form                        Payer(s)/Borrower(s) (Payer of

 

            1098 -- Mortgage            Record) on Form 1098:

 

            Interest                    Amount

 

            Statement                   Code        Amount Type

 

                                        1           Mortgage interest

 

                                                    received from

 

                                                    payer(s)/

 

                                                    borrower(s)

 

 

            Amount                      For Reporting the Acquisition

 

            Indicators                  or Abandonment of Secured

 

            Form 1099-A --              Property on Form 1099-A:

 

            Acquisition or              Amount

 

            Abandonment of              Code        Amount Type

 

            Secured Property            2           Balance of

 

                                                    principal

 

                                                    outstanding

 

                                        3           Gross foreclosure

 

                                                    proceeds

 

                                        4           Appraisal value

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-B:

 

            Form 1099-B --              Amount

 

            Proceeds from               Code        Amount Type

 

            Broker and Barter

 

            Exchange                    2           Stocks, bonds,

 

            Transactions                            etc. (For Forward

 

                                                    Contracts see Note

 

                                                    below.)

 

                                        3           Bartering (Do not

 

                                                    report negative

 

                                                    amounts.)

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        6           Profit (or loss)

 

                                                    realized in 1990

 

                                        7           Unrealized profit

 

                                                    (or loss) on open

 

                                                    contracts --

 

                                                    12/31/89

 

                                        8           Unrealized profit

 

                                                    (or loss) on open

 

                                                    contracts --

 

                                                    12/31/90

 

                                        9           Aggregate profit

 

                                                    (or loss)

 

 

NOTE: The Payment Amount field associated with Amount Code 2 may be used to represent a loss when the reporting is for Forward Contracts. Refer to Payee "B" Record -- General Field Descriptions, Payment Amount Fields, for instructions on reporting negative amounts. Do not report negative amounts for Amount Codes 3 and 4.

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-DIV:

 

            Form 1099-DIV --            Amount

 

            Dividends and               Code        Amount Type

 

            Distributions

 

                                        1           Gross dividends

 

                                                    and other

 

                                                    distributions on

 

                                                    stock (See NOTE)

 

                                        2           Ordinary dividends

 

                                                    (See NOTE)

 

                                        3           Capital gain

 

                                                    distributions (See

 

                                                    NOTE)

 

                                        4           Nontaxable

 

                                                    distributions (if

 

                                                    determinable) (See

 

                                                    NOTE)

 

                                        5           Investment

 

                                                    expenses (See

 

                                                    NOTE)

 

                                        6           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        7           Foreign tax paid

 

                                        8           Cash liquidation

 

                                                    distributions

 

                                        9           Noncash

 

                                                    liquidation

 

                                                    distributions

 

                                                    (show fair

 

                                                    market value)

 

 

 NOTE: Amount Code 1 MUST equal the sum of amounts reported in Amount

 

 Codes 2, 3, 4 and 5.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-G:

 

            Form 1099-G --              Amount

 

            Certain Government          Code        Amount Type

 

            Payments

 

                                        1           Unemployment

 

                                                    compensation

 

                                        2           State or local

 

                                                    income tax refunds

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Discharge of

 

                                                    indebtedness

 

                                        6           Taxable grants

 

                                        7           Agriculture

 

                                                    payments

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-INT:

 

            Form 1099-INT --            Amount

 

            Interest Income             Code        Amount Type

 

 

                                        1           Earnings from

 

                                                    savings and loan

 

                                                    associations,

 

                                                    credit unions,

 

                                                    bank deposits,

 

                                                    bearer

 

                                                    certificates

 

                                                    of deposit, etc.

 

 

                                        2           Early withdrawal

 

                                                    penalty

 

                                        3           U.S. Savings

 

                                                    Bonds, etc.

 

                                        4           Federal Income Tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Foreign tax paid

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-MISC:

 

            Form 1099-MISC --           Amount

 

            Miscellaneous               Code        Amount Type

 

            Income

 

                                        1           Rents

 

                                        2           Royalties

 

                                        3           Prizes, awards,

 

                                                    etc.

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Fishing boat

 

                                                    proceeds

 

                                        6           Medical and health

 

                                                    care payments

 

                                        7           Nonemployee

 

                                                    compensation or

 

                                                    Crop Insurance

 

                                                    Proceeds (See Note

 

                                                    1)

 

                                        8           Substitute

 

                                                    payments in lieu

 

                                                    of dividends or

 

                                                    interest

 

                                        9           Direct sales

 

                                                    "indicator" (See

 

                                                    Note 2)

 

 

 NOTE 1: Amount Code "7" is normally used to report Nonemployee

 

 Compensation. However, Amount Code "7" may also be used to report

 

 Crop Insurance proceeds. If both Nonemployee Compensation and Crop

 

 Insurance Proceeds are being paid to the same payee, two separate

 

 Payee "B" Records are required. See Part B, Sec. 6, Document Specific

 

 Code, for instructions on how to indicate Crop Insurance Proceeds.

 

 

 NOTE 2: Use Amount Code "9" to report the occurrence of sales of

 

 $5,000 or more of consumer products to a person on a buy-sell,

 

 deposit-commission, or any other commission basis for resale. Refer

 

 to the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G," for

 

 specific instructions. Amount Code "9" actually reflects an indicator

 

 of direct sales of $5,000 or more and is not an actual payment

 

 amount. The corresponding payment amount field in the payee "B"

 

 Record MUST be 0000000100 to reflect direct sales of $5,000 or more.

 

 This does not mean that a payment of $1.00 was made or is being

 

 reported.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-OID:

 

            Form 1099-OID --            Amount

 

            Original Issue              Code        Amount Type

 

            Discount

 

                                        1           Original issue

 

                                                    discount for 1990

 

                                        2           Other periodic

 

                                                    interest

 

                                        3           Early withdrawal

 

                                                    penalty

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-PATR:

 

            Form 1099-PATR --           Amount

 

            Taxable                     Code        Amount Type

 

            Distributions

 

            Received From               1           Patronage

 

            Cooperatives                            dividends

 

                                        2           Nonpatronage

 

                                                    distributions

 

                                        3           Per-unit retain

 

                                                    allocations

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Redemption of

 

                                                    nonqualified

 

                                                    notices and retain

 

                                                    allocations

 

                                        6           Investment credit

 

 

                                                    (See Note)

 

                                        7           Energy investment

 

                                                    credit (See Note)

 

                                        8           Jobs credit (See

 

                                                    NOTE)

 

                                        9           Low-income housing

 

                                                    credit (See Note)

 

 

 NOTE: The amounts shown for Amount Indicators 6, 7, 8 and 9 must be

 

 reported to the payee; however, they need not be reported to IRS.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-R:

 

            Form 1099-R --              Amount

 

            Total                       Code        Amount Type

 

            Distributions

 

            from Profit-                1           Gross distribution

 

            Sharing,                    2           Taxable amount

 

            Retirement Plans,                       (See NOTE 1)

 

            Individual                  3           Amount in Amount

 

            Retirement                              Code 2 eligible

 

            Arrangements,                           for capital gain

 

            Insurance                               election

 

            Contracts, Etc.             4           Federal income tax

 

                                                    withheld (See NOTE

 

                                                    2)

 

                                        5           Employee

 

                                                    contributions or

 

                                                    insurance premiums

 

                                        6           Net unrealized

 

                                                    appreciation in

 

                                                    employer's

 

                                                    securities

 

                                        8           Other

 

                                        9           State income tax

 

                                                    withheld (See NOTE

 

                                                    3)

 

 

 NOTE 1: If a distribution is a loss, do not enter a negative amount.

 

 For example, if stock is distributed but the value is less than the

 

 employee's after tax contribution, enter the value of the stock in

 

 Amount Code 1, enter (0) zero in Amount Code 2, and enter the

 

 employee's contribution in Amount Code 5.

 

 

 NOTE 2: See the 1990 "Instructions for Forms 1099, 1098, 5498, and

 

 W-2G" for further information concerning the definition of Federal

 

 Income Tax Withheld for Form 1099-R.

 

 

 NOTE 3: State income tax withheld has been added for the convenience

 

 of the payer but need not be reported to IRS.

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  1099-S:

 

            Form 1099-S --              Amount

 

            Proceeds                    Code        Amount Type

 

            from Real Estate

 

            Transactions                2           Gross Proceeds

 

 

            Amount                      For Reporting Payments on Form

 

            Indicators                  5498:

 

            Form 5498 --                Amount

 

            Individual                  Code        Amount Type

 

            Retirement

 

            Arrangement                 1           Regular IRA

 

            Information                             contributions made

 

            (See Note)                              in 1990 and

 

                                                    1991 for 1990

 

                                        2           Rollover IRA

 

                                                    contributions

 

                                        3           Life insurance

 

                                                    cost included in

 

                                                    Amount Code 1

 

                                        4           Fair market value

 

                                                    of the account

 

 

NOTE: Form 5498 is filed for each person for whom you maintained an individual retirement arrangement (IRA) (including an Individual Retirement Arrangement maintained as part of a simplified employee pension (SEP)) during 1990. Amount Code 4 represents the value of the account. Trustees and issuers of IRAs and SEPs must report the value of accounts in existence during the year, even if no contributions were made during the year. However, if a total distribution was made from an IRA during the year and no contributions were made for that year, you need not file Form 5498 to reflect that the fair market value on December 31 was zero. Do not report employer SEP contributions on Form 5498; however, you must report the value of a SEP account. For an IRA, use all applicable Amount Codes. If no IRA contributions were made for 1990, you will only use Amount Code 4. Only IRA contributions to be applied to 1990 that are made between January 1, 1990, and April 15, 1991, are to be reported in Amount Code 1. For further information concerning IRA reporting, see Rev. Proc. 89-52, printed in IR Bulletin 1989-37 on September 11, 1989.

            Amount                      For Reporting Payments on Form

 

            Indicators                  W-2G:

 

            Form W-2G --                Amount

 

            Certain Gambling            Code        Amount Type

 

            Winnings

 

                                        1           Gross winnings

 

                                        2           Federal income tax

 

                                                    withheld

 

                                        3           State income tax

 

                                                    withheld (see

 

                                                    Note)

 

                                        7           Winnings from

 

                                                    identical wagers

 

 

NOTE: State income tax withheld has been added for the convenience of the payer but need not be reported to IRS.

 33-44      Blank              12       Enter blanks.

 

 

 45-49      Transmitter        5        REQUIRED. Enter the five

 

            Control Code                character alpha/numeric

 

            (TCC)                       Transmitter Control Code

 

                                        assigned by IRS. You must have

 

                                        a TCC to file data on this

 

                                        program. DO NOT ENTER MORE

 

                                        THAN ONE TCC PER FILE.

 

 

 50         Foreign            1        Enter a "1" if the payer is a

 

            Corporation                 foreign corporation and income

 

            Indicator                   is paid by the corporation to

 

                                        a U.S. resident from sources

 

                                        outside of the United States.

 

                                        (See Part A, Sec. 17 for the

 

                                        definition of a Foreign

 

                                        Corporation.) If the payer is

 

                                        not a Foreign Corporation,

 

                                        enter a blank. (See NOTE.)

 

 

NOTE: Some filers are submitting their files with a "1" coded in Position 50 in all of the records contained on the file, whether the payer is a foreign corporation or not. Records that are coded as foreign corporations are processed differently than those that are coded with a blank in Position 50. If your program automatically codes a "1" in Position 50, all of the records on your file will be processed as foreign corporations. If you erroneously report corporations as foreign, you may be subject to a penalty for providing incorrect information to IRS. Therefore, be sure to code only those records as foreign corporations that should be coded as such.

 51-90      First              40       REQUIRED. Must be present or

 

            Payer Name                  files will be returned for

 

                                        correction. Enter the name of

 

                                        the payer whose Federal EIN

 

                                        appears in Sector 1, position

 

                                        8-16, in the manner in which

 

                                        it is used on other tax

 

                                        returns. Any extraneous

 

                                        information must be deleted

 

                                        from the name line. Left-

 

                                        justify and fill with blanks.

 

                                        (Do not enter the Transfer

 

                                        Agent's name in this field.

 

                                        The Transfer Agent's name

 

                                        should appear in the Second

 

                                        Payer Name field.)

 

 

NOTE: WHEN REPORTING FORM 1098, MORTGAGE INTEREST STATEMENT, THE "A" RECORD WILL REFLECT THE NAME AND EIN OF THE RECIPIENT OF THE INTEREST (THE FILER). THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST (THE PAYER OF RECORD) AND THE AMOUNT PAID. For Form 1099-S, the "A" Record will reflect the person responsible for reporting the transaction; the "B" Record will reflect the Seller.

 91-128     Blank              38       Enter blanks.

 

 

 SECTOR 2

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "2". Used

 

            Sequence                    to sequence the sectors

 

                                        making up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "A".

 

 

 3-42       Second             40       The contents of this field are

 

            Payer Name                  dependent upon the TRANSFER

 

                                        AGENT INDICATOR in Sector 2,

 

                                        position 43 of this record.

 

                                        If the Transfer Agent

 

                                        Indicator contains a "1", this

 

                                        field must contain the name of

 

                                        the Transfer Agent. If the

 

                                        Transfer Agent Indicator

 

                                        contains a "0" (zero), this

 

                                        field must contain either a

 

                                        continuation of the First

 

                                        Payer Name field or blanks.

 

                                        Left-justify and fill unused

 

                                        positions with blanks. IF NO

 

                                        ENTRIES ARE PRESENT FOR THIS

 

                                        FIELD, FILL WITH BLANKS. (See

 

                                        Part A, Sec. 17 for a

 

                                        definition of Transfer Agent.)

 

 

 43         Transfer           1        REQUIRED. Identifies the

 

            Agent                       entity in the Second Payer

 

            Indicator                   Name field. (See Part A, Sec.

 

                                        17 for a definition of

 

                                        Transfer Agent.)

 

 

                                        Code        Meaning

 

                                        1           The entity in the

 

                                                    Second Payer Name

 

                                                    field is the

 

                                                    Transfer Agent,

 

                                                    (as defined in

 

                                                    Part A, Sec. 17.)

 

                                        0 (zero)    The entity shown

 

                                                    is not the

 

                                                    Transfer Agent

 

                                                    (i.e., the Second

 

                                                    Payer Name field

 

                                                    contains either a

 

                                                    continuation of

 

                                                    the First Payer

 

                                                    Name field or

 

                                                    blanks).

 

 

 44-83      Payer              40       REQUIRED. If the TRANSFER

 

            Shipping                    AGENT INDICATOR in Sector 2,

 

            Address                     position 43 is a "1," enter

 

                                        the shipping address of the

 

                                        Transfer Agent. Otherwise,

 

                                        enter the shipping address of

 

                                        the payer. Left-justify and

 

                                        fill with blanks.

 

 

 84-123     Payer City,        40       REQUIRED. If the TRANSFER

 

            State and                   AGENT INDICATOR in Sector 2,

 

            ZIP Code                    position 43 of this Record is

 

                                        a "1", enter the City, State

 

                                        and ZIP Code of the Transfer

 

                                        Agent. Otherwise, enter the

 

                                        City, State and ZIP Code of

 

                                        the payer. Left-justify and

 

                                        fill with blanks.

 

 

 124-128    Blank              5        Enter blanks.

 

 

 SECTOR 3 Sectors 3 and 4 are only required if the payer and

 

 transmitter are not the same.

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "3". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "A".

 

 

 3-82       Transmitter        80       REQUIRED. (Only if payer and

 

            Name                        transmitter are not the same.)

 

                                        Enter the name of the

 

                                        transmitter in the manner in

 

                                        which it is used in normal

 

                                        business. The name of the

 

                                        transmitter must be reported

 

                                        in the same manner throughout

 

                                        the entire file. Left-justify

 

                                        and fill with blanks. If the

 

                                        payer and transmitter are the

 

                                        same, enter blanks in this

 

                                        field.

 

 

 83-122     Transmitter        40       REQUIRED. (Only if payer and

 

            Mailing                     transmitter are not the same.)

 

            Address                     Enter the mailing address of

 

                                        transmitter. Left-justify and

 

                                        fill with blanks. If the payer

 

                                        and transmitter are the same,

 

                                        enter blanks in this field.

 

 

 123-128    Blank              6        Enter blanks.

 

 

 SECTOR 4 Sectors 3 and 4 are only required if the payer and

 

 transmitter are not the same.

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "4". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "A".

 

 

 3-42       Transmitter        40       REQUIRED. (Only if the payer

 

            City, State                 and transmitter are not the

 

            and ZIP Code                same). Enter the City, State

 

                                        and ZIP Code of the

 

                                        transmitter. Left-justify and

 

                                        fill with blanks. If the payer

 

                                        and transmitter are the same,

 

                                        enter blanks in this field.

 

 

 43-128     Blank              86       Enter blanks.

 

 

SEC. 4. PAYER/TRANSMITTER "A" RECORD -- RECORD LAYOUT

[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]

SEC. 5. PAYEE "B" RECORD -- GENERAL INFORMATION FOR ALL FORMS

.01 This section contains the general information concerning the Payee "B" Record for all information returns filed on single sided/single density soft-sectored diskettes. For a detailed description of the record refer to the following in Part B:

(a) Sec. 6. PAYEE "B" RECORD -- FIELD DESCRIPTIONS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

(b) Sec. 7. PAYEE "B" RECORD LAYOUTS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

(c) Sec. 8. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-A.

(d) Sec. 9. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-B.

(e) Sec. 10. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-OID.

(f) Sec. 11. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-S.

(g) Sec. 12. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM W-2G.

For tax year 1990 data, all "B" Records will consist of at least 3 sectors of 128 positions each. If you are not a Combined Federal/State filer or if you are not utilizing the Special Data Entries field, Sector 4 can be eliminated for Forms 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, and 5498.

The "B" Record will always consist of 4 Sectors for Forms 1099-A, 1099-B, 1099-OID, 1099-S, and W-2G.

In the "A" Record, the Amount Indicator Codes that appear in diskette positions 24 through 32 of Sector 1 will be left-justified and blank filled. In the "B" Record, allow for all nine payment amount fields. For those fields not used, enter zeros. For example, if you are reporting on Form 1099-PATR, enter a "7" in diskette position 23 of Sector 1 of the "A" Record, Type of Return Indicator field. If you are reporting payments for Amount Codes 2, 4, and 7, then diskette positions 24 through 32 of Sector 1 of the "A" Record will be "247bbbbbb" (b = blanks). In the Payee "B" Record:

Positions 52 through 61 of Sector 1 for Payment Amount 1 will be zeros.

Positions 62-71 of Sector 1 will reflect the actual payment amount to be reported for "Nonpatronage distributions."

Positions 72-81 of Sector 1 for Payment Amount 3 will be zeros.

Positions 82-91 of Sector 1 will reflect the actual payment amount to be reported for "Federal income tax withheld."

Positions 92-111 of Sector 1 for Payment Amounts 5 and 6 will be zeros.

Positions 112-121 of Sector 1 will reflect the actual payment amount to be reported for "Energy investment credit."

Positions 3-22 of Sector 2 for Payment Amounts 8 and 9 will be zeros.

.02 The record layout for Sectors 1, 2 and 3 will be the same for all "B" records. Sector 4, however, will be different for Forms 1099-A, 1099-B, 1099-OID, 1099-S and W-2G. Refer to Part B, Sec. 8, 9, 10, 11 or 12, respectively for the layout of Sector 4 of these records.

.03 IRS must be able to identify the surname or last name associated with the TIN (SSN or EIN) furnished on a return. The specifications below include a field in the payee records called "Name Control" in which the first four characters of the payee's surname or last name are to be entered by the payers. The surname or last name should appear first in the First Payee field of all Payee "B" Records; however, if your records have been developed using the first name first, a blank must appear between the first and last names.

.04 If payers are unable to determine the first four characters of the surname, the Name Control Field may be left blank; however, compliance with the following will facilitate IRS computer programs in generating the Name Control.

(a) The surname of the payee whose TIN (SSN or EIN) is shown in the Payee "B" Record should always appear first. If, however, you enter the first name first, you must leave a blank space between the first and last names.

(b) In the case of multiple payees, only the surname of the payee whose TIN (SSN or EIN) is shown in the Payee "B" Record must be present in the First Payee Name field. Surnames of any other payees in the record may be entered in the Second Payee Name field.

.05 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required by state or local governments or for the filer's own personal use. IRS does not use the data provided in the Special Data Entries field; therefore, the IRS program does not check the content or format of the data entered in this field. It is the filer's choice whether or not this field is used. If this field is coded, it will not affect the processing of the Payee "B" Records.

.06 For those filers participating in the Combined Federal/State Filing Program, positions 70 and 71 of Sector 4 in the Payee "B" Record must contain the appropriate state code for the state to receive the information. The file should also meet the money criteria described in Part A, Sec. 16, Table 2.

.07 Do not code for the states unless prior approval to participate has been granted by IRS. (See Part A, Sec. 16) Table 1 for a list of the valid participating state codes.) FORMS 1098, 1099-A, 1099-B, 1099-S AND W-2G CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM. Your files must meet all of the requirements specified in Part A, Sec. 16, in order to participate in this program.

.08 All alpha characters entered in the "B" Record should be uppercase.

.09 Do not use decimal points (.) to indicate dollars and cents.

.10 IRS STRONGLY ENCOURAGES FILERS TO REVIEW THEIR DATA FOR ACCURACY BEFORE SUBMISSION TO PREVENT ISSUANCE OF ERRONEOUS NOTICES TO PERSONS FOR WHOM REPORTS ARE FILED. FILERS SHOULD BE ESPECIALLY CAREFUL THAT THEIR TAXPAYER NAMES, SOCIAL SECURITY NUMBERS (SSNs), ACCOUNT NUMBERS, TYPES OF INCOME, AND INCOME AMOUNTS ARE CORRECT.

.11 WHEN REPORTING FORM 1098, MORTGAGE INTEREST STATEMENT, THE "A" RECORD WILL REFLECT THE NAME AND EIN OF THE RECIPIENT OF THE INTEREST (THE FILER). THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST (THE BORROWER/PAYER OF RECORD) AND THE AMOUNT PAID. FOR FORMS 1099-S THE "A" RECORD WILL REFLECT THE PERSON RESPONSIBLE FOR REPORTING THE TRANSACTION. THE "B" RECORD WILL REFLECT THE SELLER.

SEC. 6. PAYEE "B" RECORD -- FIELD DESCRIPTIONS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

.01 For Forms 1099-A, 1099-B, 1099-OID, 1099-S, and W-2G, see Part B, Sec. 8, 9, 10, 11 and 12, respectively for the field descriptions and record layouts for Sector 4 of these records.

NOTE: For all fields marked REQUIRED, you must provide the information described under Description and Remarks. For those fields not marked REQUIRED, you must allow for the field but may be instructed to enter blanks or zeros in the indicated position(s) and for the indicated length.

                     RECORD NAME: PAYEE "B" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "1". It is

 

                                        used to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-4        Payment Year       2        REQUIRED. Enter "90".

 

 

 5-6        Document           2        REQUIRED FOR FORMS 1099-R,

 

            Specific                    1099-MISC, 1099-G, AND W-2G.

 

            Code                        FOR ALL OTHER FORMS, OR IF NOT

 

                                        USED, ENTER BLANKS. For Form

 

                                        1099-R, enter the appropriate

 

                                        code(s) for the Distribution

 

                                        Code. More than one code may

 

                                        apply for Form 1099-R;

 

                                        however, if only one code is

 

                                        required, it will be entered

 

                                        in position 5. Position 6 will

 

                                        be blank. NOTE: You MUST enter

 

                                        at least one (1) Distribution

 

                                        Code for Form 1099-R. BLANKS

 

                                        in BOTH positions 5 and 6 are

 

                                        NOT acceptable for Form 1099-

 

                                        R.  For Form 1099-MISC,

 

                                        position 5 is used to indicate

 

                                        Crop Insurance Proceeds.

 

                                        Position 6 will be blank.

 

                                        For Form 1099-G, enter the

 

                                        year of income tax refund in

 

                                        position 5. Position 6 will be

 

                                        blank.

 

                                        For Form W-2G, enter the Type

 

                                        of Wager in position 5.

 

                                        Position 6 will be blank.

 

 

            Distribution                Use only for reporting on Form

 

            Code                        1099-R to identify the

 

            (Form 1099-R)               Distribution Code. Enter the

 

                                        applicable code from the table

 

                                        below. A "0" (zero) is not a

 

                                        valid code for Form 1099-R. A

 

                                        numeric code MUST be entered

 

                                        in all cases except when Code

 

                                        P or D is used. However, when

 

                                        using Code P for an IRA

 

                                        distribution under section

 

                                        408(d)(4), you may also enter

 

                                        Code 1, if it applies. In

 

                                        addition, if more than one

 

                                        numeric code is applicable to

 

                                        a distribution, report two (2)

 

                                        separate Payee "B" Records. If

 

                                        you are reporting a total

 

                                        distribution from a plan that

 

                                        includes a distribution of a

 

                                        DEC, you must report two

 

                                        separate "B" Records:

 

                                        one to report the distribution

 

                                        of DECs and the other to

 

                                        report the distribution from

 

                                        the other part of the plan.

 

                                        Category (See Note)      Code

 

 

                                        Early (premature)

 

                                          distribution, no

 

                                          known exception /*/    1 /*/

 

                                        Early (premature)

 

                                          distribution,

 

                                          exception applies

 

                                          (as defined in

 

                                          section 72(q),

 

                                          (t), or (v))

 

                                          other than disabi-

 

                                          lity or death /*/      2 /*/

 

                                        Disability /*/           3 /*/

 

                                        Death (includes

 

                                          payments to a

 

                                          beneficiary) /*/       4 /*/

 

                                        Prohibited

 

                                          transaction /*/        5 /*/

 

                                        Section 1035 Exchange    6

 

                                        Normal distribution /*/  7 /*/

 

                                        Excess contributions

 

                                          plus earnings/excess

 

                                          deferrals (and/or

 

                                          earnings taxable in

 

                                          1990)                  8

 

                                        PS 58 Costs              9

 

                                        Excess contributions

 

                                          plus earnings/excess

 

                                          deferrals taxable

 

                                          in 1989                P

 

                                        Qualifies for 5-year/

 

                                          10-year averaging      A

 

                                        Qualifies for death

 

 

                                          benefit exclusion      B

 

                                        Qualifies for both

 

                                          A and B                C

 

                                        Excess Contributions

 

                                          plus earnings/excess

 

                                          deferrals taxable

 

                                          in 1988                D

 

 

 NOTE: For detailed explanations of the distribution codes, see the

 

 1990 "Instructions for Form 1099, 1098, 5498, and W-2G" included in

 

 your magnetic media reporting packages.

 

 

      /*/ If you are reporting a distribution of an IRA or SEP for

 

 Codes 1, 2, 3, 4, 5, or 7, you must code a "1" in position 45 Sector

 

 1 of the Payee "B" Record.

 

 

            Crop Insurance              If the payment amount reported

 

            Proceeds (Form              for Amount Code 7 is crop

 

            1099-MISC only)             insurance proceeds, enter a

 

                                        "1" in position 5. Position 6

 

                                        will be blank.

 

 

            Tax Year of                 Use only for reporting the tax

 

            Refund                      year for which the refund was

 

            (Form 1099-G only)          issued. Enter the NUMERIC Year

 

                                        for which the refund was

 

                                        issued (i.e., for 1989 enter

 

                                        9). However, if the payment

 

                                        amount for Amount Code 2,

 

                                        State or Local Income Tax

 

                                        Refunds, contains a refund,

 

                                        credit, or offset that is

 

                                        attributable to an income tax

 

                                        which applies exclusively to

 

                                        income from a trade or

 

                                        business and is not of general

 

                                        application, then enter the

 

                                        ALPHA equivalent of the year

 

                                        for which the refund was

 

                                        issued from the table below

 

                                        (i.e., for 1989 enter I). This

 

                                        code should appear in position

 

                                        5. Position 6 will be blank.

 

 

                                         Year for Which       Alpha

 

                                        Trade or Business   Equivalent

 

                                        Refund was Issued      /*/

 

                                               1                A

 

                                               2                B

 

                                               3                C

 

                                               4                D

 

                                               5                E

 

                                               6                F

 

                                               7                G

 

                                               8                H

 

                                               9                I

 

                                               0                J

 

 

      /*/ To be used for trade or business refunds only.

 

 

            Type of                     Use only for reporting the

 

            Wager (Form                 Type of Wager on Form W-2G.

 

            W-2G only)                  This code will appear in

 

                                        position 5. Position 6 will be

 

                                        blank.

 

 

                                        Category                  Code

 

 

                                        Horse Race Track (or Off

 

                                        Track Betting of a Horse

 

                                        Track nature)              1

 

                                        Dog Race Track (or Off

 

                                        Track Betting of a Dog

 

                                        Track nature)              2

 

                                        Jai-alai                   3

 

                                        State Conducted Lottery    4

 

                                        Keno                       5

 

                                        Casino Type Bingo. DO NOT

 

                                        use this code for any

 

                                        other type of bingo

 

                                        winnings (e.g., church

 

                                        or fire dept.)             6

 

                                        Slot Machines              7

 

                                        Any other type of

 

                                        gambling winnings. (This

 

                                        includes church bingo,

 

                                        fire dept. bingo,

 

                                        unlabeled winnings, etc.)  8

 

 

 7          Blank              1        Enter blank.

 

 

 8          Corrected          1        Diskette position 8 is used to

 

            Return                      indicate a corrected return.

 

            Indicator                   Refer to Part A, Sec. 13 for

 

                                        specific instructions on how

 

                                        to file corrected returns.

 

 

 9-12       Name Control       4        Enter the first four (4)

 

                                        characters of the surname

 

                                        (last name) of the payee. The

 

                                        surname of the person whose

 

                                        TIN is being reported in

 

                                        positions 16-24, Sector 1 of

 

                                        the "B" Record should be used

 

                                        to determine the Name Control.

 

                                        This is especially important

 

                                        in the case of trustee

 

                                        accounts. IF THE NAME THAT

 

                                        CORRESPONDS TO THE TIN IS NOT

 

                                        INCLUDED IN THE FIRST OR

 

                                        SECOND PAYEE NAME LINE, EVERY

 

                                        EFFORT SHOULD BE MADE TO

 

                                        DEVELOP THE CORRECT NAME

 

                                        CONTROL FOR THE NAME THAT

 

                                        CORRESPONDS TO THE TIN.

 

                                        Surnames of less than four (4)

 

                                        characters should be left-

 

                                        justified, filling the unused

 

                                        positions with blanks. Special

 

                                        characters and imbedded blanks

 

                                        should be removed. In the case

 

                                        of a business, use the first

 

                                        four significant characters of

 

                                        the business name. Disregard

 

                                        the word "the" when it is the

 

                                        first word of the name, UNLESS

 

                                        there are only two words in

 

                                        the name. IF THE NAME CONTROL

 

                                        IS NOT DETERMINABLE BY THE

 

                                        PAYER, LEAVE THIS FIELD BLANK.

 

                                        (See Part A, Sec. 14 for

 

                                        information on Name Controls.)

 

                                        A dash (-) and ampersand (&)

 

                                        are the only acceptable

 

                                        special characters.

 

 

 The following examples may be helpful to you in developing the name

 

 control:

 

 

                         Name                           Name Control

 

 Individuals:

 

                         Jane Brown BROW

 

                         John A. Lee                    LEE /*/

 

                         James P. En, Sr.               EN /*/

 

                         John O'Neill                   ONEI

 

                         Mary Van Buren                 VANB

 

                         Juan De Jesus                  DEJE

 

                         Gloria A. El-Roy               EL-R

 

                         Mr. John Smith                 SMIT

 

                         Joe McCarthy                   MCCA

 

                         Pedro Torres-Lopes             TORR

 

                         Maria Lopez Moreno             LOPE

 

                         Binh To La                     LA /*/

 

                         Nhat Thi Pham                  PHAM

 

                         Mark D'Allesandro              DALL

 

 

 Corporations:

 

 

                         The First National Bank        FIRS

 

                         The Hideaway                   THEH

 

                         A & B Cafe                     A&BC

 

 

 Sole Proprietor:

 

 

                         Jane and Mark Hemlock          HEML

 

                           c/o The Sunshine Club

 

 

 Partnership:

 

 

                         Robert Aspen and Bess Willow   ASPE

 

                         Harold Fir, Bruce Elm, and     FIR /*/

 

                           Joyce Spruce et al Ptr

 

 

 Estate:

 

 

                         Frank White Estate             WHIT

 

                         Sheila Blue Estate             BLUE

 

 

 Trusts and Fiduciaries:

 

 

                         Daisy Corporation Employee     DAIS

 

                           Benefit Trust

 

                         Trust FBO The Cherryblossom    CHER

 

                           Society

 

 

 Exempt Organization:

 

 

                         Laborer's Union, AFL-CIO       LABO

 

                         St. Bernard's Methodist        STBE

 

                           Church Bldg. Fund

 

 

/*/ Name Controls of less than four (4) significant characters must be left-justified and blank filled.

 13-14      Blank              2        Enter blanks.

 

 

 15         Type of            1        REQUIRED. This field is used

 

            TIN                         to identify the Taxpayer

 

                                        Identification Number (TIN) in

 

                                        positions 16-24 as either an

 

                                        Employer Identification

 

                                        Number, a Social Security

 

                                        Number, or that the type is

 

                                        undeterminable. Enter the

 

                                        appropriate code from the

 

                                        following table:

 

 

                                        Type of         Type of

 

                                          TIN     TIN   Account

 

 

                                           1      EIN   A business,

 

                                                        organization,

 

                                                        or other

 

                                                        entity that is

 

                                                        not an

 

                                                        individual

 

                                           2      SSN   An individual

 

                                           blank  N/A   If the type of

 

                                                        TIN is

 

                                                        undeter-

 

                                                        minable, enter

 

                                                        a blank.

 

 

 16-24      Taxpayer           9        REQUIRED. Enter the valid 9-

 

            Identification              digit Taxpayer Identification

 

            Number                      Number of the payee (SSN or

 

                                        EIN, as appropriate). If an

 

                                        identification number has been

 

                                        applied for but not received,

 

                                        enter blanks. DO NOT ENTER

 

                                        HYPHENS, ALPHA CHARACTERS, ALL

 

                                        9's OR ALL ZEROS.

 

 

 25-44      Payer's            20       DO NOT ENTER A TAXPAYER

 

            Account                     IDENTIFICATION NUMBER IN THIS

 

            Number for                  FIELD. We strongly encourage

 

            Payee                       the payer to use this field to

 

                                        enter the payee's account

 

                                        number which can be any

 

                                        number assigned by the payer

 

                                        to the payee (e.g., checking

 

                                        or savings account number).

 

                                        THIS WILL DISTINGUISH THE

 

                                        INDIVIDUAL PAYEE'S ACCOUNT

 

                                        WITH YOU, AND SHOULD BE UNIQUE

 

                                        FOR EACH DOCUMENT SO AS TO

 

                                        IDENTIFY SPECIFIC TRANSACTIONS

 

                                        IF MULTIPLE RETURNS ARE FILED

 

                                        FOR ONE PAYEE. This

 

                                        information is particularly

 

                                        helpful if corrections are

 

                                        filed. This number is also

 

                                        provided with your Invalid/No-

 

                                        TIN notification from the IRS

 

                                        and may help you determine the

 

                                        branch or subsidiary reporting

 

                                        the transaction. YOU ARE

 

                                        STRONGLY ENCOURAGED TO

 

                                        USE THIS FIELD. Do not define

 

                                        data in this field in packed

 

                                        decimal format. If fewer than

 

                                        twenty characters are

 

                                        required, you may either left-

 

                                        or right-justify, filling the

 

                                        remaining positions with

 

                                        blanks.

 

 

 45         IRA/SEP            1        THIS FIELD IS ONLY USED WHEN

 

            Indicator                   REPORTING FORMS 1099-R. This

 

                                        field will be coded ONLY if

 

                                        you entered a code "1", "2",

 

                                        "3", "4", "5", or "7" in

 

                                        either Position 5 or 6,

 

                                        Document Specific Code, of

 

                                        Sector 1 of the Payee "B"

 

                                        Record, AND you are reporting

 

                                        a distribution of an IRA or

 

                                        SEP. Enter the appropriate

 

                                        indicator from the table

 

                                        below.

 

                                        Indicator   Usage

 

                                            1       You are reporting

 

                                                    an IRA or SEP

 

                                                    Distribution.

 

                                            Blank   You are NOT

 

                                                    reporting an IRA

 

                                                    or SEP

 

                                                    Distribution.

 

 

 46-47      Percentage         2        THIS FIELD IS ONLY USED WHEN

 

            of Total                    REPORTING FORMS 1099-R, and

 

            Distribution                ONLY if you are reporting a

 

                                        total distribution to more

 

 

                                        than one person. This field is

 

                                        only two (2) positions in

 

                                        length because when a total

 

                                        distribution is made to more

 

                                        than one person, the figure

 

                                        MUST be 99% or less. If the

 

                                        percentage is 100, leave this

 

                                        field blank. If the percentage

 

                                        is a fraction, round off to

 

                                        the nearest whole number (for

 

                                        example, 10.4% will be 10%;

 

                                        10.5% or more will be 11%).

 

                                        Enter the percentage received

 

                                        by the person whose TIN in

 

                                        included in positions 16-24 of

 

                                        Sector 1 of the "B" Record.

 

                                        This field must be right-

 

                                        justified, and unused

 

                                        positions must be zero filled.

 

                                        If not applicable, enter

 

                                        blanks. You need not enter a

 

                                        percentage for IRA or SEP

 

                                        distributors.

 

 

 48-51      Blank              4        Enter blanks.

 

 

            Payment                     REQUIRED. You must allow for

 

            Amount Fields               all payment amounts. For those

 

            (Must be numeric)           not used you will enter zeros.

 

                                        For example: If position 23 of

 

                                        Sector 1 of the

 

                                        Payer/Transmitter "A" Record

 

                                        is "7" (for 1099-PATR) and

 

                                        Sector 1, positions 24-32 are

 

                                        "247bbbbbb", this indicates

 

                                        that you will be reporting 3

 

                                        actual payment amounts in the

 

                                        following Payee "B" Records.

 

                                        Payment Amount 1 of Sector 1

 

                                        will be all "0" (zeros);

 

                                        Payment Amount 2 of Sector 1

 

                                        will represent Nonpatronage

 

                                        distributions;

 

                                        Payment Amount 3 of Sector 1

 

                                        will be all "0" (zeros);

 

                                        Payment Amount 4 of Sector 1

 

                                        will represent Federal income

 

                                        tax withheld;

 

                                        Payment Amounts 5 and 6 of

 

                                        Sector 1 will be all "0"

 

                                        (zeros);

 

                                        Payment Amount 7 of Sector 1

 

                                        will be energy investment

 

                                        credit; and,

 

                                        Payment Amounts 8 and 9 of

 

                                        Sector 2 will be all "0"

 

                                        (zeros).

 

                                        Each payment field must

 

                                        contain 10 numeric characters

 

                                        (see Note). Each payment

 

                                        amount must be entered in U.S.

 

                                        dollars and cents. The

 

                                        rightmost two positions

 

                                        represent cents in the Payment

 

                                        Amount Fields. Do not enter

 

                                        dollar signs, commas, decimal

 

                                        points, or NEGATIVE PAYMENTS,

 

                                        except those items that

 

                                        reflect a loss on Form 1099-

 

                                        B. Positive and negative

 

                                        amounts are indicated by

 

                                        placing a "+" or "-" (minus

 

 

                                       sign) in the leftmost position

 

                                        of the payment amount field. A

 

                                        negative over-punch in the

 

                                        units position may be used,

 

                                        instead of a minus sign, to

 

                                        indicate a negative amount. If

 

                                        a plus sign, minus sign, or

 

                                        negative overpunch is not

 

                                        used, the number is assumed to

 

                                        be positive.

 

                                        PAYMENT AMOUNTS MUST BE RIGHT-

 

                                        JUSTIFIED AND UNUSED POSITIONS

 

                                        MUST BE ZERO FILLED. FEDERAL

 

                                        INCOME TAX WITHHELD CANNOT BE

 

                                        REPORTED AS A NEGATIVE AMOUNT

 

                                        ON ANY FORM.

 

 

                                        NOTE: If any one payment

 

                                        amount exceeds "9999999999"

 

                                        (dollars and cents), it must

 

                                        be reported as follows:

 

                                             (1) The First Payee "B"

 

                                                 Record MUST contain

 

                                                 9999999999;

 

                                             (2) The second Payee "B"

 

                                                 Record will contain

 

                                                 the remaining

 

                                                 amounts. DO NOT SPLIT

 

                                                 THIS FIGURE IN HALF.

 

 

 52-61      Payment /*/        10       The amount reported in this

 

            Amount 1                    field represents payments for

 

                                        Amount Code 1 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 62-71      Payment /*/        10       The amount reported in this

 

            Amount 2                    field represents payments for

 

                                        Amount Code 2 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 72-81      Payment /*/        10       The amount reported in this

 

            Amount 3                    field represents payments for

 

                                        Amount Code 3 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 82-91      Payment /*/        10       The amount reported in this

 

            Amount 4                    field represents payments for

 

                                        Amount Code 4 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 92-101     Payment /*/        10       The amount reported in this

 

            Amount 5                    field represents payments for

 

                                        Amount Code 5 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 102-111    Payment /*/        10       The amount reported in this

 

            Amount 6                    field represents payments for

 

                                        Amount Code 6 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 112-121    Payment /*/        10       The amount reported in this

 

            Amount 7                    field represents payments for

 

                                        Amount Code 7 in the

 

                                        Payer/Transmitter "A" Record.

 

 

      /*/ If there are discrepancies between these Payment Amount Codes

 

 and the boxes on the paper forms, the instructions in this revenue

 

 procedure govern.

 

 

 122-128    Blank              7        Enter blanks.

 

 

 SECTOR 2

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "2". It is

 

            Sequence                    used to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-12       Payment            10       The amount reported in this

 

            Amount 8                    field represents payments for

 

                                        Amount Code 8 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 13-22      Payment            10       The amount reported in this

 

            Amount 9                    field represents payments for

 

                                        Amount Code 9 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 23-42      Blank              20       Enter blanks.

 

 

 43         Foreign            1        REQUIRED. If the payee address

 

            Country                     is in a foreign country, enter

 

            Indicator                   a "1" in this field. This will

 

                                        allow you to use any format

 

                                        for the Payee Address, City,

 

                                        State and ZIP Code. Address

 

                                        information must not appear in

 

                                        the First or Second Payee Name

 

                                        Lines.

 

 

                                        If the address for the payee

 

                                        is a U.S. address, you must

 

                                        enter a blank in this field.

 

                                        The free address format may

 

                                        only be used for foreign

 

                                        addresses. For U.S. addresses,

 

                                        you must use the U.S. Postal

 

                                        Service state abbreviations in

 

                                        diskette positions 72 and 73

 

                                        of Sector 3 of the "B" Record.

 

                                        These abbreviations are

 

                                        provided in Part A, Sec. 18.

 

 

 44-83      First Payee        40       REQUIRED. Do not enter address

 

            Name Line                   information in this field.

 

                                        Enter the name of the payee

 

                                        (preferably surname (last

 

                                        name) first) whose Taxpayer

 

                                        Identification Number appears

 

                                        in Sector 1, positions 16-24

 

                                        of the "B" Record. If fewer

 

                                        than 40 characters are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

 

                                        blanks. If more space is

 

                                        required for the name, utilize

 

                                        the Second Payee Name Line

 

                                        field. If there are multiple

 

                                        payees, only the name of the

 

                                        payee whose Taxpayer

 

                                        Identification Number has been

 

                                        provided may be entered in

 

                                        this field. The names of the

 

                                        other payees should be entered

 

                                        in the Second Payee Name Line

 

                                        field.

 

 

                                        NOTE: WHEN REPORTING FORM

 

                                        1098, MORTGAGE INTEREST

 

                                        STATEMENT, THE "A" RECORD WILL

 

                                        REFLECT THE NAME OF THE

 

                                        RECIPIENT OF THE INTEREST (THE

 

                                        FILER). The "B" RECORD WILL

 

                                        REFLECT THE INDIVIDUAL PAYING

 

                                        THE INTEREST (THE

 

                                        BORROWER/PAYER OF RECORD) AND

 

                                        THE AMOUNT PAID. FOR FORMS

 

                                        1099-S, THE "B" RECORD WILL

 

                                        REFLECT THE SELLER

 

                                        INFORMATION.

 

 

 84-123     Second Payee       40       If the payee name requires

 

            Name Line                   more space than is available

 

                                        in the First Payee Name Line,

 

                                        enter only the remaining

 

                                        portion of the name in this

 

                                        field. If there are multiple

 

                                        payees (e.g., partners or

 

                                        joint owners), we encourage

 

                                        you to use this field for

 

                                        those payees' names not

 

                                        associated with the Taxpayer

 

                                        Identification Number in

 

                                        Sector 1, positions 16-24 of

 

                                        the "B" Record. Do not enter

 

                                        address information in this

 

                                        field. IT IS IMPORTANT THAT

 

                                        YOU PROVIDE AS MUCH PAYEE

 

                                        INFORMATION TO IRS AS POSSIBLE

 

                                        TO IDENTIFY THE OWNER OF THE

 

                                        TAXPAYER IDENTIFICATION NUMBER

 

                                        (TIN). Left-justify and fill

 

                                        unused positions with blanks.

 

                                        FILL WITH BLANKS IF NO ENTRIES

 

                                        ARE PRESENT FOR THIS FIELD.

 

 

 124-128    Blank              5        Enter blanks.

 

 

 SECTOR 3

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "3". Used

 

            Sequence                    to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format can be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee ZIP Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (Country) and Payee

 

 ZIP Code can be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1."

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP          9        REQUIRED. Enter the valid 9

 

                                        digit ZIP Code assigned by the

 

                                        Code U.S. Postal Service. If

 

                                        only the first 5 digits are

 

                                        known, left-justify and fill

 

                                        the unused positions with

 

                                        blanks. Use this field for the

 

                                        ZIP Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field which is located in

 

                                        Sector 2, position 43 of the

 

                                        "B" Record.

 

 

 83-128     Blank              46       Enter blanks.

 

 

 SECTOR 4

 

 

 THE FOLLOWING FIELD DESCRIPTIONS DESCRIBE THE RECORD POSITIONS FOR

 

 SECTOR 4 OF THE PAYEE "B" RECORD FOR FORMS 1098, 1099-DIV, 1099-G,

 

 1099-INT, 1099-MISC, 1099-PATR, 1099-R, AND 5498. IF YOU ARE NOT A

 

 COMBINED FEDERAL/STATE FILER, OR IF YOU ARE NOT UTILIZING THE SPECIAL

 

 DATA ENTRIES FIELD, SECTOR 4 CAN BE ELIMINATED FOR ALL "B" RECORDS

 

 EXCEPT FORMS 1099-A, 1099-B, 1099-OID, 1099-S, AND W-2G. SEE PART B,

 

 SEC. 8, 9, 10, 11 AND 12 FOR THE FIELD DESCRIPTIONS FOR SECTOR 4 OF

 

 FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

 

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "4". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-69       Special Data       67       This portion of the Payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 70-71      Combined           2        If a payee record is to be

 

            Federal/State               forwarded to a state agency as

 

            Code                        part of the Combined

 

                                        Federal/State Filing Program,

 

                                        enter the valid state code

 

                                        from Part A, Sec. 16, Table 1.

 

                                        For those states NOT

 

                                        participating in this program

 

                                        or for Form 1098, ENTER

 

                                        BLANKS.

 

 

 72-128     Blank              57       Enter blanks.

 

 

SEC. 7. PAYEE "B" RECORD -- RECORD LAYOUTS FOR SECTORS 1 THROUGH 4 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTORS 1 THROUGH 3 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S, AND W-2G

[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]

SEC. 8. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-A

.01 This section contains information pertaining to Sector 4 of Form 1099-A. For detailed explanations of the 1099-A fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part B. Sec. 6 for field descriptions of Sectors 1, 2 and 3 of the Payee "B" Record for Form 1099-A.

.03 FORM 1099-A CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                     FORM 1099-A -- SECTOR 4 ONLY

 

 

 SECTOR 4

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "4". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-23       Special Data       21       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 24-29      Date of Lender's   6        REQUIRED FOR FORMS 1099-A

 

            Acquisition or              ONLY. Enter the date of the

 

            Knowledge of                acquisition of the secured

 

            Abandonment                 property or the date you first

 

                                        knew or had reason to know

 

                                        that the property was

 

                                        abandoned in the format MMDDYY

 

                                        (e.g., 102490). DO NOT ENTER

 

                                        HYPHENS OR SLASHES.

 

 

 30         Liability          1        REQUIRED FOR FORM 1099-A ONLY.

 

            Indicator                   Enter the appropriate

 

                                        indicator from the table

 

                                        below:

 

 

                                        Indicator   Usage

 

 

                                             1      Borrower is

 

                                                    personally

 

                                                    liable for

 

                                                    repayment of

 

                                                    the debt.

 

                                           Blank    Borrower is not

 

                                                    liable for

 

                                                    repayment of the

 

                                                    debt.

 

 

 31-69      Description        39       REQUIRED FOR FORM 1099-A ONLY.

 

                                        Enter a brief description of

 

                                        the property. For example, for

 

                                        real property, enter the

 

                                        address, or if the address

 

                                        does not sufficiently identify

 

                                        the property, enter the

 

                                        section, lot, and block. For

 

                                        personal property, enter the

 

                                        type, make, and model (e.g.,

 

                                        Car-1988 Buick Regal or Office

 

                                        Equipment). Enter "CCC" for

 

                                        crops forfeited on Commodity

 

                                        Credit Corporation Loans. If

 

                                        fewer than 39 positions are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

                                        blanks.

 

 

 70-128     Blank              59       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTION 4 OF FORM 1099-A

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 9. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-B

.01 This section contains the general payment information for Sector 4 of Form 1099-B. For detailed explanations of the 1099-B fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part B, Sec. 6 for field descriptions for Sectors 1, 2 and 3 of the Payee "B" Record for Form 1099-B.

.03 FORM 1099-B CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-B -- SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "4". Used

 

                                        to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-12       Special Data       10       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 13         Gross Proceeds     1        REQUIRED FOR FORM 1099-B ONLY.

 

            Reported to IRS             Enter appropriate indicator

 

            Indicator                   from the table below. If this

 

                                        field is not utilized, ENTER

 

                                        BLANKS.

 

 

                                        Indicator   Usage

 

 

                                        1           Gross Proceeds

 

                                        2           Gross Proceeds

 

                                                    less commission

 

                                                    and option

 

                                                    premiums.

 

 

 14-19      Date of Sale       6        REQUIRED FOR FORM 1099-B ONLY.

 

                                        For broker transactions, enter

 

                                        the trade date of the

 

                                        transaction in the format

 

                                        MMDDYY (e.g., 102490). For

 

                                        barter exchanges, enter the

 

                                        date cash, property, a credit,

 

                                        or scrip is actually or

 

                                        constructively received. Enter

 

                                        blanks if this is an aggregate

 

                                        transaction. DO NOT ENTER

 

                                        HYPHENS OR SLASHES.

 

 

 20-32      CUSIP Number       13       REQUIRED FOR FORM 1099-B ONLY.

 

                                        For broker transactions only,

 

                                        enter the CUSIP (Committee on

 

                                        Uniform Security

 

                                        Identification Procedures)

 

                                        number of the item reported

 

                                        for Amount Indicator "2"

 

                                        (Stocks, bonds, etc.). Enter

 

                                        blanks if this is an aggregate

 

                                        transaction. Enter "0" (zeros)

 

                                        if the number is not available

 

                                        or applicable. For CUSIP

 

                                        numbers with less than 13

 

                                        characters, right-justify and

 

                                        fill the remaining positions

 

                                        with blanks.

 

 

 33-71      Description        39       REQUIRED FOR FORM 1099-B ONLY.

 

                                        Enter a brief description of

 

                                        the item or services for which

 

                                        the proceeds are being

 

                                        reported. If fewer than 39

 

                                        characters are required, left-

 

                                        justify and fill unused

 

                                        positions with blanks. For

 

                                        regulated futures contracts,

 

                                        enter "RFC" and any amount

 

                                        subject to backup withholding.

 

                                        Enter blanks if this is an

 

                                        aggregate transaction.

 

 

 72-128     Blank              57       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-B

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 10. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-OID

.01 This section contains information pertaining to Sector 4 of Form 1099-OID. For detailed explanations of the 1099-OID fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part B, Sec. 6 for field descriptions of Sectors 1, 2 and 3 of the Payee "B" Record for Form 1099-OID.

                     RECORD NAME: PAYEE "B" RECORD

 

                     FORM 1099-OID -- SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "4". Used

 

                                        to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-30       Special Data       28       This portion of the payee "B"

 

                                        Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 31-69      Description        39       REQUIRED FOR FORM 1099-OID

 

                                        ONLY. Enter identification

 

                                        number (CUSIP number) or

 

                                        description of the obligation.

 

                                        The description may include

 

                                        the stock exchange, issuer,

 

                                        coupon rate, and year of

 

                                        maturity. If fewer than 39

 

                                        characters are required, left-

 

                                        justify and fill unused

 

                                        positions with blanks.

 

 

 70-71      Combined Federal/  2        If a payee record is to be

 

            State Code                  forwarded to a state agency as

 

                                        part of the Combined

 

                                        Federal/State Filing Program,

 

                                        enter the valid state code

 

                                        from Part A, Sec. 16, Table 1.

 

                                        For those states NOT

 

                                        participating in this program,

 

                                        ENTER BLANKS.

 

 

 72-128     Blank              57       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-OID

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 11. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-S

.01 This section contains the general payment information for Sector 4 of Form 1099-S. For detailed explanations of the 1099-S fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G," included in your reporting package.

.02 See Part B, Sec. 6 for field descriptions for Sectors 1, 2 and 3 of the Payee "B" Record for Form 1099-S.

.03 FORM 1099-S CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-S -- SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "4". Used

 

                                        to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-25       Special Data       23       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 26-31      Date of Closing    6        REQUIRED FOR FORM 1099-S ONLY.

 

                                        Enter the closing date in the

 

                                        format MMDDYY (e.g., 102490).

 

                                        DO NOT ENTER HYPHENS OR

 

                                        SLASHES.

 

 

 32-70      Description        39       REQUIRED FOR FORM 1099-S ONLY.

 

                                        Enter the address of the

 

                                        property transferred or a

 

                                        legal description of the

 

                                        property. If you are entering

 

                                        an address, include the state

 

                                        and ZIP code where this

 

                                        property is located. If fewer

 

                                        than 39 positions are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

                                        blanks.

 

 

 71        Property or         1        REQUIRED FOR FORM 1099-S ONLY.

 

           Services Received            If the transferor received or

 

                                        will receive property (other

 

                                        than cash) or services as part

 

                                        of the consideration for the

 

                                        property transferred, enter

 

                                        "1." Otherwise, enter "Blank."

 

 

 72-128     Blank              57       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 4 OF FORM 1099-S

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 12. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 4 OF FORM W-2G.

.01 This section contains the general payment information for Sector 4 of Form W-2G. For detailed explanations of the W-2G fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part B, Sec. 6 for field descriptions for Sectors 1, 2 and 3 of the Payee "B" Record for Form W-2G.

.03 FORM W-2G CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                       FORM W-2G -- SECTOR 4 ONLY

 

 

 SECTOR 4

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "4". Used

 

                                        to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-8        Date Won           6        REQUIRED FOR FORM W-2G ONLY.

 

                                        Enter the date of the winning

 

                                        event in the format MMDDYY

 

                                        (e.g., 102490). This is not

 

                                        the date the money was paid,

 

                                        if paid after the date of the

 

                                        race (or game). DO NOT ENTER

 

                                        HYPHENS OR SLASHES.

 

 

 9-23       Transaction        15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the ticket

 

                                        number, card number (and

 

                                        color, if applicable), machine

 

                                        serial number or any other

 

                                        information that will help

 

                                        identify the winning

 

                                        transaction. Not applicable

 

                                        for horse and dog racing, jai

 

                                        alai, and certain other

 

                                        wagering transactions,

 

                                        sweepstakes, wagering pools,

 

                                        and certain lotteries. If no

 

                                        entry, enter blanks.

 

 

 24-28      Race               5        REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the race (or

 

                                        game) applicable to the

 

                                        winning ticket. If no entry,

 

                                        enter blanks.

 

 

 29-33      Cashier            5        REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the initials of

 

                                        the cashier making the winning

 

                                        payment. If no entry, enter

 

                                        blanks.

 

 

 34-38      Window             5        REQUIRED FOR FORM W-2G ONLY.

 

                                        The window number or location

 

                                        of the person paying the

 

                                        winnings. If no entry, enter

 

                                        blanks.

 

 

 39-53      First ID           15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the first

 

                                        identification number of the

 

                                        person receiving the winnings.

 

                                        If no entry, enter blanks.

 

 

 54-68      Second ID          15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the second

 

                                        identification number of the

 

                                        person receiving the winnings.

 

                                        If no entry, enter blanks.

 

 

 69-128     Blank              60       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 4 OF FORM W-2G

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 13. END OF PAYER "C" RECORD

.01 The "C" Record consists of 2 Sectors of 128 positions each. The Control Total fields are each 15 positions in length.

.02 The End of Payer "C" Record is a summary record for a type of return for a given payer.

.03 The "C" Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer. The "C" Record MUST be written after the last Payee "B" Record for each type of return for a given payer. For each "A" Record and group of "B" Records on the file, there must be a corresponding "C" Record.

.04 In developing the "C" Record, for example, if you used Amount Codes 1, 3 and 6 in the "A" Record, the totals from the "B" Records will appear in Control Totals 1, 3 and 6 of the "C" Record. In this example, positions 27-41, 57-86, and 102-116 of Sector 1 and positions 3-32 of Sector 2 would be zero filled.

.05 Payers/Transmitters must verify the accuracy of the totals in the "C" Record and must enter the totals on the Forms 4804, 4802, or computer-generated substitute, which will accompany the shipment. The lines used on Forms 4804 and 4802 to record payment amounts correspond with the Amount Codes used in the "A" Record.

.06 Missing or incorrect End of Payer "C" Records will result in the diskette being returned for correction.

                 RECORD NAME: END OF PAYER "C" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "1". Used

 

                                        to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "C".

 

 

 3-8        Number of Payees   6        REQUIRED. Enter the total

 

                                        number of Payee "B" Records

 

                                        covered by the preceding

 

                                        Payer/Transmitter "A" Record.

 

                                        Right-justify and zero fill.

 

 

 9-11       Blank              3        Enter blanks.

 

 

 REQUIRED. If any corresponding Payment Amount fields are present in

 

 the Payee "B" Records, accumulate into the appropriate Control Total

 

 fields. CONTROL TOTALS MUST BE RIGHT-JUSTIFIED, AND UNUSED CONTROL

 

 TOTAL FIELDS MUST BE ZERO FILLED. Please note that all Control Total

 

 fields are 15 positions in length.

 

 

 12-26      Control Total 1    15

 

 

 27-41      Control Total 2    15

 

 

 42-56      Control Total 3    15

 

 

 57-71      Control Total 4    15

 

 

 72-86      Control Total 5    15

 

 

 87-101     Control Total 6    15

 

 

 102-116    Control Total 7    15

 

 

 117-128    Blank              12       Enter blanks.

 

 

 SECTOR 2

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "2". Used

 

                                        to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "C".

 

 

 3-17       Control Total 8    15

 

 

 18-32      Control Total 9    15

 

 

 33-128     Blank              96       Enter blanks.

 

 

 END OF PAYER "C" RECORD -- RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 14. STATE TOTALS "K" RECORD

.01 The "K" Record consists of 2 Sectors of 128 positions each. The Control Total fields are each 15 positions in length.

.02 The State Totals "K" Record is a summary for a given payer and type of return to a given state in the Combined Federal/State Filing Program. Use ONLY when state reporting approval has been granted.

.03 The "K" Record will contain the total number of payees and the totals of the payment amount fields filed for a given state. The "K" Record(s) must be written after the "C" Record for the related "A" Record.

.04 In developing the "K" Record, for example, if you used Amount Codes 1, 3 and 6 in the "A" Record, the totals from the "B" Records coded for this state will appear in Control Totals 1, 3, and 6 of the "K" Record.

.05 There MUST be a separate "K" Record for each state being reported.

.06 Refer to Part A, Sec. 16 for the requirements and conditions that MUST be met to file on this program.

                 RECORD NAME: STATE TOTALS "K" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "1". Used

 

                                        to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "K".

 

 

 3-8        Number of Payees   6        REQUIRED. Enter the total

 

                                        number of Payee "B" Records

 

                                        being coded for this state.

 

                                        Right-justify and zero fill.

 

 

 9-11       Blank              3        Enter blanks.

 

 

 REQUIRED. If any corresponding Payment Amount fields are present in

 

 the Payee "B" Records, accumulate into the appropriate Control Total

 

 fields. CONTROL TOTALS MUST BE RIGHT-JUSTIFIED, AND UNUSED CONTROL

 

 TOTAL FIELDS MUST BE ZERO FILLED. Please note that all Control Total

 

 fields are 15 positions in length.

 

 

 12-26      Control Total 1    15

 

 

 27-41      Control Total 2    15

 

 

 42-56      Control Total 3    15

 

 

 57-71      Control Total 4    15

 

 

 72-86      Control Total 5    15

 

 

 87-101     Control Total 6    15

 

 

 102-116    Control Total 7    15

 

 

 117-128    Blank              12       Enter blanks.

 

 

 SECTOR 2

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "2". Used

 

                                        to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "K".

 

 

 3-17       Control Total 8    15

 

 

 18-32      Control Total 9    15

 

 

 33-126     Blank              94       Enter blanks.

 

 

 127-128    Combined Federal/  2        REQUIRED. Enter the code

 

            State Code                  assigned to the state which is

 

                                        to receive the information.

 

                                        (Refer to Part A, Sec. 16,

 

                                        Table 1.)

 

 

 END OF PAYER "K" RECORD -- RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 15. END OF TRANSMISSION "F" RECORD

.01 The "F" Record consists of one 128-position Sector. The "F" Record is a summary of the number of payers in the entire file.

.02 This record should be written after the last "C" Record (or last "K" Record, when applicable) of the entire file.

              RECORD NAME: END OF TRANSMISSION "F" RECORD

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Type        1        REQUIRED. Enter "F".

 

 

 2-5        Number of "A"      4        You may enter the total number

 

            Records                     of Payer/Transmitter "A"

 

                                        Records in the entire file.

 

                                        Right-justify and zero fill or

 

                                        enter all zeros.

 

 

 6-30       Zero               25       Enter zeros.

 

 

 31-128     Blank              98       Enter blanks.

 

 

 END OF TRANSMISSION "F" RECORD -- RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

PART C. DOUBLE DENSITY DISKETTE SPECIFICATIONS

SECTION 1. GENERAL

.01 The specifications contained in this part of the revenue procedure describe the required format and contents of the records to be included in a double density diskette file. These specifications must be adhered to unless deviations have been specifically granted by IRS.

.02 To be compatible, a double density diskette file must meet the following specifications in total:

(a) 8 inches in diameter.

(b) Recorded in EBCDIC.

(c) Contains 77 cylinders (A cylinder refers to both of the tracks available to the read/write heads at any of the 77 locations on the double sided, double density diskette).

(1) Cylinder 00 is the index cylinder (the operating system reserves cylinder 00 for the directory information and writes the file name and location in the directory; data cannot be written in cylinder 00).

(2) Cylinders 1-74 are the primary data cylinders.

(3) Cylinders 75 and 76 are reserved for alternate cylinder assignment.

(d) Each track contains 26 sectors; therefore, each cylinder contains 52 sectors.

(e) Each sector must contain 256 bytes.

(f) Data may be recorded on both sides of the diskette.

(g) IRS can process single sided, single density, soft sectored diskettes as well as double sided, double density, soft sectored diskettes.

Part B provides specifications for single density diskettes which have sectors of 128 bytes.

(h) An IBM 5360 compatible diskette would meet the above specifications. If using other processors, data should be recorded in the Basic Data Exchange (EBCDIC) format.

(i) Hard sectored diskettes are not compatible.

(j) A diskette should be clearly marked as to which type of data (single sided/single density or double sided/double density) is on each diskette, and preferably, the entire file should consist of either all single sided/single density or all double sided/double density diskettes.

.03 Refer to Part B, Sec. 1.03 through Sec. 2 for further information concerning diskette requirements which apply to both single and double density diskettes.

SEC. 2. PAYER/TRANSMITTER "A" RECORD

.01 The Payer/Transmitter "A" Record identifies the payer and transmitter of the diskette and provides parameters for the succeeding Payee "B" Records. IRS computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the "B" Records to which they apply.

.02 The number of "A" Records appearing on a diskette will depend on the number of payers and the different types of returns being reported. The payment amounts for one payer for one type of return must be consolidated under one "A" Record if submitted on the same file.

.03 Do not submit separate "A" Records for each payment amount being reported. For example, if you are filing Form 1099-DIV to report Amount Codes 1, 2 and 3, all three amount codes must be reported under one "A" Record, not three separate "A" Records. For Payee "B" Records which do not contain payment amounts for all three amount codes, enter zeros for those which have no payment to be reported.

.04 After the header label on the diskette (See Part B, Sec. 2, for format of the header label), the first record appearing in the file MUST be an "A" Record. When a double density diskette is used, each "A" Record will consist of at least one 256 position sector; however, if you are transmitting for someone other than yourself, 2 sectors are required.

.05 A transmitter may include Payee "B" Records for more than one payer on a diskette; however, each GROUP of Payee "B" Records must be preceded by an "A" Record.

.06 A single diskette may also contain different types of returns, but the returns MUST NOT be intermingled. A separate "A" Record is required for each payer and each type of return being reported. An "A" Record may be blocked with "B" Records; however, the initial record on a file must be an "A" Record. IRS will accept an "A" Record after a "C" Record.

.07 All alpha characters entered in the "A" Record should be uppercase.

.08 WHEN REPORTING FORM 1098, MORTGAGE INTEREST STATEMENT, THE "A" RECORD WILL REFLECT THE NAME OF THE RECIPIENT OF THE INTEREST (THE FILER). THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST (BORROWER/PAYER OF RECORD) AND THE AMOUNT PAID.

               RECORD NAME: PAYER/TRANSMITTER "A" RECORD

 

 

 NOTE: For all fields marked REQUIRED, you must provide the

 

 information described under Description and Remarks. For fields not

 

 marked REQUIRED, you must allow for the field but may be instructed

 

 to enter blanks or zeros in the indicated diskette position(s) and

 

 for the indicated length. When using double density diskettes, each

 

 "A" Record will consist of at least one 256 position sector; however,

 

 if you are transmitting for someone other than yourself, two sectors

 

 are required.

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be "1". It is

 

                                        used to sequence the sectors

 

                                        making up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "A".

 

 

 3-4        Payment Year       2        REQUIRED. Enter "90".

 

 

 5-7        Diskette Sequence  3        Sequence number assigned by

 

            Number                      the Transmitter to each

 

                                        diskette starting with 001.

 

                                        You may choose to enter blanks

 

                                        or zeros in this field. IRS

 

                                        bypasses this information. You

 

                                        must indicate the proper

 

                                        sequence on the external label

 

                                        Form 5064.

 

 

 8-16       Payer's Federal    9        REQUIRED. Must be the valid 9

 

            EIN                         -digit number assigned to the

 

                                        payer by IRS. DO NOT ENTER

 

                                        BLANKS, HYPHENS, ALPHA

 

                                        CHARACTERS, ALL 9's OR ALL

 

                                        ZEROS. (Also see Part A, Sec.

 

                                        14.) For foreign corporations

 

                                        not required to have an EIN,

 

                                        this field may be left blank.

 

                                        Foreign corporations should

 

                                        have the Foreign Corporation

 

                                        Indicator set to "1." (See

 

                                        Part A, Sec. 17 for the

 

                                        definition of a Foreign

 

                                        Corporation.)

 

 

 17-20      Payer Name Control 4        The Payer Name Control can be

 

                                        obtained from the mail label

 

                                        on the Package 1099 which is

 

                                        mailed to most payers on

 

                                        record each December. To

 

                                        distinguish between the

 

                                        Package 1099 and the Magnetic

 

                                        Media Reporting (MMR) package,

 

                                        Package 1099 contains

 

                                        instructions for paper filing

 

                                        only and the mail label on the

 

                                        package contains a four (4)

 

                                        character NAME CONTROL. The

 

                                        MMR package contains

 

                                        instructions for filing on

 

                                        magnetic media only, and the

 

                                        mail label DOES NOT contain a

 

                                        name control. Names of less

 

                                        than four (4) characters

 

                                        should be left-justified,

 

                                        filling the unused positions

 

                                        with blanks. If you have not

 

                                        received a Package 1099 or you

 

                                        do not know your Payer Name

 

                                        Control, this field should be

 

                                        blank filled.

 

 

 21         Blank              1        Enter blank.

 

 

 22         Combined           1        FORMS 1098, 1099-A, 1099-B,

 

            Federal/State               1099-S, AND W-2G CANNOT BE

 

            Filer                       FILED ON THIS PROGRAM. Enter

 

                                        the appropriate code from the

 

                                        table below:

 

 

                                        Code        Meaning

 

                                        1           Participating in

 

                                                    the Combined

 

                                                    Federal/State

 

                                                    Filing Program

 

                                        blank       Not participating

 

 

                                        Prior approval is required. A

 

                                        Consent Form 6847 must be

 

                                        submitted to IRS before tax

 

                                        information will be released

 

                                        to the states. (Refer to Part

 

                                        A, Sec. 16, Table 2, for money

 

                                        criteria.) Not all states

 

 

                                        participate in this program.

 

                                        If the Payer/Transmitter is

 

                                        not participating in the

 

                                        Combined Federal/State Filing

 

                                        Program, enter blank. (Refer

 

                                        to Part A, Sec. 16 for the

 

                                        requirements that must be met

 

                                        prior to actual participation

 

                                        in this program.) Filers who

 

                                        participate in this program

 

                                        must incorporate state totals

 

                                        into corresponding "K" Records

 

                                        as described in Part C, Sec.

 

                                        13.

 

 

 23         Type of Return     1        REQUIRED. Enter appropriate

 

                                        code from table below:

 

 

                                        Type of Return           Code

 

                                        1098                     3

 

                                        1099-A                   4

 

                                        1099-B                   B

 

                                        1099-DIV                 1

 

                                        1099-G                   F

 

                                        1099-INT                 6

 

                                        1099-MISC                A

 

                                        1099-OID                 D

 

                                        1099-PATR                7

 

                                        1099-R                   9

 

                                        1099-S                   S

 

                                        5498                     L

 

                                        W-2G                     W

 

 

 24-32      Amount Indicators  9        REQUIRED. In most cases, the

 

                                        box numbers on paper

 

                                        information returns correspond

 

                                        with the amount codes on

 

                                        magnetic media. However, if

 

                                        discrepancies do occur, the

 

                                        instructions in this revenue

 

                                        procedure govern. For a

 

                                        detailed explanation of the

 

                                        information to be reported in

 

                                        each Amount Code, refer to the

 

                                        1990 "Instructions for Forms

 

                                        1099, 1098, 5498, and W-2G,"

 

                                        included in your magnetic

 

                                        media reporting package. The

 

                                        amount indicators entered for

 

                                        a given type of return

 

                                        indicate type(s) of payment(s)

 

                                        which were made. For each

 

                                        Amount Code entered in this

 

                                        field, a corresponding payment

 

                                        amount must appear in the

 

                                        Payee "B" Record.

 

                                        Example: If position 23 of the

 

                                        Payer/Transmitter "A" Record

 

                                        is "7" (for 1099-PATR) and

 

                                        positions 24-32 are

 

                                        "247bbbbbb" (b = blanks), this

 

                                        indicates that you will be

 

                                        reporting 3 actual payment

 

                                        amounts in all of the

 

                                        following Payee "B" Records.

 

                                        The first payment amount field

 

                                        in the Payee "B" Record will

 

                                        be all "0" (zeros);

 

                                        the second will represent

 

                                        Nonpatronage distributions;

 

                                        the third will be all "0"

 

                                        (zeros);

 

                                        the fourth will represent

 

                                        Federal income tax withheld;

 

                                        the fifth and sixth will be

 

                                        all "0" (zeros);

 

                                        the seventh will represent

 

                                        Energy investment credit; and,

 

                                        the eighth and ninth will be

 

                                        all "0" (zeros).

 

                                        Enter the Amount Indicators in

 

                                        ASCENDING SEQUENCE (e.g.,

 

                                        247bbbbbb; b = blanks), left

 

                                        -justify, filling unused

 

                                        positions with blanks. For

 

                                        further clarification of the

 

                                        Amount Indicator codes,

 

                                        contact the IRS/MCC. (See Part

 

                                        A, Sec. 3).

 

 

            Amount Indicators           For Reporting Interest

 

            Form 1098 -- Mortgage       Received from Payer(s)/

 

            Interest Statement          Borrower(s) (Payer of Record)

 

                                        on Form 1098-

 

                                        Amount

 

                                        Code        Amount Type

 

 

                                        1           Mortgage interest

 

                                                    received from

 

                                                    payer(s)/

 

 

                                                    borrower(s)

 

            Amount Indicators           For Reporting the Acquisition

 

            Form 1099-A --              or Abandonment of Secured

 

            Acquisition or              Property on Form 1099-A:

 

            Abandonment of              Code        Amount Type

 

            Secured Property

 

                                        2           Balance of

 

                                                    principal

 

                                                    outstanding

 

                                        3           Gross foreclosure

 

                                                    proceeds

 

                                        4           Appraisal value

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-B --              1099-B:

 

            Proceeds from               Amount

 

            Broker and Barter           Code        Amount Type

 

            Exchange

 

            Transactions                2           Stocks, bonds,

 

                                                    etc. (For Forward

 

                                                    Contracts see

 

                                                    Note)

 

                                        3           Bartering (Do not

 

                                                    report negative

 

                                                    amounts.)

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        6           Profit (or loss)

 

                                                    realized in 1990

 

                                        7           Unrealized profit

 

                                                    (or loss) on open

 

                                                    contracts --

 

                                                    12/31/89

 

                                        8           Unrealized profit

 

                                                    (or loss) on open

 

                                                    contracts --

 

                                                    12/31/90

 

                                        9           Aggregate profit

 

                                                    (or loss)

 

 

 NOTE: The Payment Amount field associated with Amount Code 2 may be

 

 used to represent a loss when the reporting is for Forward Contracts.

 

 Refer to Payee "B" Record -- General Field Descriptions, Payment

 

 Amount Fields, for instructions on reporting negative amounts. Do not

 

 report negative amounts for Amount Codes 3 and 4.

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-DIV --            1099-DIV:

 

            Dividends and               Amount

 

            Distributions               Code        Amount Type

 

 

                                        1           Gross dividends

 

                                                    and other

 

                                                    distributions

 

                                                    on stock (see

 

                                                    Note)

 

                                        2           Ordinary dividends

 

                                                    (see Note)

 

                                        3           Capital gain

 

                                                    distributions (see

 

                                                    Note)

 

                                        4           Nontaxable

 

                                                    distributions (if

 

                                                    determinable) (see

 

                                                    Note)

 

                                        5           Investment

 

                                                    expenses

 

                                                    (see Note)

 

                                        6           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        7           Foreign tax paid

 

                                        8           Cash liquidation

 

                                                    distributions

 

                                        9           Noncash

 

                                                    liquidation

 

                                                    distributions

 

                                                    (show fair market

 

                                                    value)

 

 

 NOTE: Amount Code 1 MUST equal the sum of Amounts reported in Amount

 

 Codes 2, 3, 4 and 5.

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-G --              1099-G:

 

            Certain Government          Amount

 

            Payments                    Code        Amount Type

 

 

                                        1           Unemployment

 

                                                    compensation

 

                                        2           State or local

 

                                                    income tax refunds

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Discharge of

 

                                                    indebtedness

 

                                        6           Taxable grants

 

                                        7           Agriculture

 

 

                                                    payments

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-INT --            1099-INT:

 

            Interest Income             Amount

 

                                        Code        Amount Type

 

 

                                        1           Earnings from

 

                                                    savings and loan

 

                                                    associations,

 

                                                    credit unions,

 

                                                    bank deposits,

 

                                                    bearer

 

                                                    certificates of

 

                                                    deposit, etc.

 

                                        2           Early withdrawal

 

                                                    penalty

 

                                        3           U.S. Savings

 

                                                    Bonds, etc.

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Foreign tax paid

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-MISC --           1099-MISC:

 

            Miscellaneous               Amount

 

            Income                      Code        Amount Type

 

 

                                        1           Rents

 

                                        2           Royalties

 

                                        3           Prizes, awards,

 

                                                    etc.

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Fishing boat

 

                                                    proceeds

 

                                        6           Medical and health

 

                                                    care payments

 

                                        7           Nonemployee

 

                                                    compensation or

 

                                                    Crop Insurance

 

                                                    Proceeds (see Note

 

                                                    1)

 

                                        8           Substitute

 

                                                    payments in lieu

 

                                                    of dividends or

 

                                                    interest

 

                                        9           Direct sales

 

                                                    "indicator" (see

 

                                                    Note 2)

 

 

 NOTE 1: Amount Code "7" is normally used to report Nonemployee

 

 Compensation. However, Amount Code "7" may also be used to report

 

 Crop Insurance Proceeds. If both Nonemployee compensation and Crop

 

 Insurance Proceeds are being paid to the same payee, two separate

 

 Payee "B" Records are required. See Part B, Sec. 6, Document Specific

 

 Code for instructions on how to indicate Crop Insurance Proceeds.

 

 

 NOTE 2: Use Amount Code "9" to report the occurrence of sales of

 

 $5,000 or more of consumer products to a person on a buy-sell,

 

 deposit-commission, or any other commission basis for resale. Refer

 

 to the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G," for

 

 specific instructions. Amount Code "9" actually reflects an indicator

 

 of direct sales of $5,000 or more and not the actual payment amount.

 

 The corresponding payment amount field in the payee "B" Record MUST

 

 be 0000000100 to reflect direct sales of $5,000 or more. This does

 

 not mean that a payment of $1.00 was made or is being reported.

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-OID --            1099-OID:

 

            Original Issue              Amount

 

            Discount                    Code        Amount Type

 

 

                                        1           Original issue

 

                                                    discount for 1990

 

                                        2           Other periodic

 

                                                    interest

 

                                        3           Early withdrawal

 

                                                    penalty

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-PATR --           1099-PATR:

 

            Taxable                     Amount

 

            Distributions               Code        Amount Type

 

            Received From

 

 

            Cooperatives                1           Patronage

 

                                                    dividends

 

                                        2           Nonpatronage

 

                                                    distributions

 

                                        3           Per-unit retain

 

                                                    allocations

 

                                        4           Federal income tax

 

                                                    withheld (Backup

 

                                                    Withholding)

 

                                        5           Redemption of

 

                                                    nonqualified

 

                                                    notices and retain

 

                                                    allocations

 

                                        6           Investment credit

 

                                                    (see Note)

 

                                        7           Energy investment

 

                                                    credit (see Note)

 

                                        8           Jobs credit (see

 

                                                    Note)

 

                                        9           Low income housing

 

                                                    credit (see Note)

 

 

 NOTE: The amounts shown for Amount Indicators 6, 7, 8 and 9 must be

 

 reported to the payee; however, they need not be reported to IRS.

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-R -- Total        1099-R:

 

            Distributions from          Amount

 

            Profit-Sharing,             Code        Amount Type

 

            Retirement Plans,

 

            Individual Retirement       1           Gross distribution

 

            Arrangements,               2           Taxable amount

 

            Insurance                               (see Note 1)

 

            Contracts, Etc.             3           Amount in Amount

 

                                                    Code 2 eligible

 

                                                    for capital gain

 

                                                    election

 

                                        4           Federal income tax

 

                                                    withheld (see Note

 

                                                    2)

 

                                        5           Employee

 

                                                    contributions or

 

                                                    insurance premiums

 

                                        6           Net unrealized

 

                                                    appreciation in

 

                                                    employer's

 

                                                    securities

 

                                        8           Other

 

                                        9           State income tax

 

                                                    withheld (see Note

 

                                                    3)

 

 

 NOTE 1: If a distribution is a loss, do not enter a negative amount.

 

 For example, if stock is distributed but the value is less than the

 

 employee's after tax contribution, enter the value of the stock in

 

 Amount Code 1, enter zero (0) in Amount Code 2, and enter the

 

 employee's contribution in Amount Code 5.

 

 

 NOTE 2: See the 1990 "Instructions for Forms 1099, 1098, 5498, and

 

 W-2G" for further information concerning the definition of federal

 

 income tax withheld for Form 1099-R.

 

 

 NOTE 3: State income tax withheld has been added for the convenience

 

 of the payer but need not be reported to IRS.

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 1099-S --              1099-S:

 

            Proceeds From Real          Amount

 

            Estate Transactions         Code        Amount Type

 

 

                                        2           Gross Proceeds

 

 

            Amount Indicators           For Reporting Payments on Form

 

            Form 5498 --                5498:

 

            Individual Retirement       Amount

 

            Arrangement                 Code        Amount Type

 

            Information (see

 

            Note)                       1           Regular IRA

 

                                                    contributions made

 

                                                    in 1990 and 1991

 

                                                    for 1990

 

                                        2           Rollover IRA

 

                                                    contributions

 

                                        3           Life insurance

 

                                                    cost included in

 

                                                    Amount Code 1

 

                                        4           Fair market value

 

                                                    of the account

 

 

NOTE: Form 5498 is filed for each person for whom you maintained an Individual Retirement Arrangement (IRA) (including an Individual Retirement Arrangement maintained as part of a Simplified Employee Pension (SEP)) during 1990. Amount Code 4 represents the value of the account. Trustees and issuers of IRAs and SEPs must report the value of accounts in existence during the year, even if no contributions were made during the year. However, if a total distribution was made from an IRA during the year and no contributions were made for that year, you need not file Form 5498 to reflect that the fair market value on December 31 was zero. Do not report employer SEP contributions on Form 5498; however, you must report the value of the SEP account. For an IRA, use all applicable Amount Codes. If no IRA contributions were made for 1990, you will only use Amount Code 4. Only IRA contributions to be applied to 1990 that are made between January 1, 1990 and April 15, 1991 are to be reported in Amount Code 1. For further information concerning IRA reporting, see Rev. Proc. 89-52, printed in IR Bulletin 1989-37 on September 11, 1989.

            Amount Indicators           For Reporting Payments on Form

 

            Form W-2G -- Certain        W-2G:

 

            Gambling Winnings           Amount

 

                                        Code        Amount Type

 

                                        1           Gross winnings

 

                                        2           Federal income tax

 

                                                    withheld

 

                                        3           State income tax

 

                                                    withheld (see

 

                                                    Note)

 

                                        7           Winnings from

 

                                                    identical wagers

 

 

 NOTE: State income tax withheld has been added for the convenience of

 

 the payer but need not be reported to IRS.

 

 

 33-44      Blank              12       Enter blanks.

 

 

 45-49      Transmitter        5        REQUIRED. Enter the five

 

            Control                     character alpha/numeric

 

            Code (TCC)                  Transmitter Control Code

 

                                        assigned by IRS. You MUST have

 

                                        a TCC to file data on this

 

                                        program. DO NOT ENTER MORE

 

                                        THAN ONE TCC PER FILE.

 

 

 50         Foreign            1        Enter a "1" if the payer is a

 

            Corporation                 foreign corporation and income

 

            Indicator                   is paid by the corporation to

 

                                        a U.S. resident from sources

 

                                        outside of the United States.

 

                                        (See Part A, Sec. 17 for the

 

                                        definition of a Foreign

 

                                        Corporation.) If the payer is

 

                                        not a foreign corporation,

 

                                        enter a blank. (See Note).

 

 

NOTE: Some filers are submitting their files with a "1" coded in Position 50 in all of the records contained on the file, whether the payer is a foreign corporation or not. Records that are coded as foreign corporations are processed differently than those that are coded with a blank in Position 50. If your program automatically codes a "1" in Position 50, all of the records on your file will be processed as foreign corporations. If you erroneously report corporations as foreign, you may be subject to a penalty for providing incorrect information to IRS. Therefore, be sure to code only those records as foreign corporations that should be coded as such.

 51-90      First Payer Name   40       REQUIRED. Must be present or

 

                                        files will be returned for

 

                                        correction. Enter the name of

 

                                        the payer whose Federal EIN

 

                                        appears in positions 8-16 of

 

                                        the "A" Record, in the manner

 

                                        in which it is used on other

 

                                        tax returns. Any extraneous

 

                                        information must be deleted

 

                                        from the name line. Left-

 

                                        justify and fill with blanks.

 

                                        (Do not enter the Transfer

 

                                        Agent's name in this field.

 

                                        The Transfer Agent's name

 

                                        should appear in the Second

 

                                        Payer Name field.) NOTE: WHEN

 

                                        REPORTING FORM 1098, MORTGAGE

 

                                        INTEREST STATEMENT, THE "A"

 

                                        RECORD WILL REFLECT THE NAME

 

                                        AND EIN OF THE RECIPIENT OF

 

                                        THE INTEREST (THE FILER). THE

 

                                        "B" RECORD WILL REFLECT THE

 

                                        INDIVIDUAL PAYING THE INTEREST

 

                                        (THE PAYER OF RECORD) AND THE

 

                                        AMOUNT PAID. FOR FORM 1099-S,

 

                                        THE "A" RECORD WILL REFLECT

 

                                        THE PERSON RESPONSIBLE FOR

 

                                        REPORTING THE TRANSACTION; THE

 

                                        "B" RECORD WILL REFLECT THE

 

                                        SELLER.

 

 

 91-130     Second Payer Name  40       The contents of this field are

 

                                        dependent upon the TRANSFER

 

                                        AGENT INDICATOR in Sector 1,

 

                                        Position 131. If the Transfer

 

                                        Agent Indicator contains a

 

                                        "1", this field must contain

 

                                        the name of the Transfer

 

                                        Agent. If the Transfer Agent

 

                                        Indicator contains a "0"

 

                                        (zero), this field must

 

                                        contain either a continuation

 

                                        of the First Payer Name field

 

                                        or blanks. Left-justify and

 

                                        fill unused positions with

 

                                        blanks. IF NO ENTRIES ARE

 

                                        PRESENT FOR THIS FIELD, FILL

 

                                        WITH BLANKS. (See Part A, Sec.

 

                                        17 for a definition of

 

                                        Transfer Agent.)

 

 

 131        Transfer Agent     1        REQUIRED. Identifies the

 

            Indicator                   entity in the Second Payer

 

                                        Name field. (See Part A, Sec.

 

                                        17 for a definition of

 

                                        Transfer Agent.)

 

 

                                        Code        Meaning

 

 

                                        1           The entity in the

 

                                                    Second Payer Name

 

                                                    field is the

 

                                                    Transfer Agent.

 

                                        0 (zero)    The entity shown

 

                                                    is not the

 

                                                    Transfer Agent

 

                                                    (e.g., the Second

 

                                                    Payer Name field

 

                                                    contains either a

 

 

                                                    continuation of

 

                                                    the First Payer

 

                                                    Name field or

 

                                                    blanks).

 

 

 132-171    Payer Shipping     40       REQUIRED. If the TRANSFER

 

            Address                     AGENT INDICATOR in Sector 1,

 

                                        position 131 of this record is

 

                                        a "1" enter the shipping

 

                                        address of the Transfer Agent.

 

                                        Otherwise, enter the shipping

 

                                        address of the payer. Left-

 

                                        justify and fill with blanks.

 

 

 172-211    Payer City, State  40       REQUIRED. If the TRANSFER

 

            and ZIP Code                AGENT INDICATOR in Sector 1,

 

                                        position 131 of this Record is

 

                                        a "1", enter the City, State

 

                                        and ZIP Code of the Transfer

 

                                        Agent. Otherwise, enter the

 

                                        City, State and ZIP Code of

 

                                        the payer. Left-justify and

 

                                        fill with blanks.

 

 

 212-256    Blank              45       Enter blanks.

 

 

 SECTOR 2 -- Sector 2 need only be used if the Payer and Transmitter

 

 are not the same.

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be "2". Used to

 

                                        sequence the sectors making up

 

                                        a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "A".

 

 

 3-82       Transmitter Name   80       REQUIRED. (Only if payer and

 

                                        transmitter are not the same.)

 

                                        Enter the name of the

 

                                        transmitter in the manner in

 

                                        which it is used in normal

 

                                        business. The name of the

 

                                        transmitter must be reported

 

                                        in the same manner throughout

 

                                        the entire file. Left-justify

 

                                        and fill with blanks. If the

 

                                        payer and transmitter are the

 

                                        same, enter blanks in this

 

                                        field.

 

 

 83-122     Transmitter        40       REQUIRED. (Only if payer and

 

            Mailing                     transmitter are not the same.)

 

            Address                     Enter the mailing address of

 

                                        the transmitter. Left-justify

 

                                        and fill with blanks. If the

 

                                        payer and transmitter are the

 

                                        same, enter blanks in this

 

                                        field.

 

 

 123-162    Transmitter City,  40       REQUIRED. (Only if the payer

 

            State and                   and transmitter are not the

 

            ZIP Code                    same.) Enter the City, State

 

                                        and ZIP Code of the

 

                                        transmitter. Left-justify and

 

                                        fill with blanks. If the payer

 

                                        and transmitter are the same,

 

                                        enter blanks in this field.

 

 

 163-256    Blank              94       Enter blanks.

 

 

SEC. 3. PAYER/TRANSMITTER "A" RECORD -- RECORD LAYOUT

[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]

SEC. 4. PAYEE "B" RECORD -- GENERAL INFORMATION FOR ALL FORMS

.01 This section contains the general information concerning the Payee "B" Record for all information returns filed on double sided/double density soft sectored diskettes. For a detailed description of the record refer to the following in Part C:

(a) Sec. 5. PAYEE "B" RECORD -- FIELD DESCRIPTIONS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G. (See Part C, Sec. 7, 8, 9, 10 and 11 for field descriptions for Sector 2 of Forms. 1099-A, 1099-B, 1099-OID, 1099-S and W-2G.)

(b) Sec. 6. PAYEE "B" RECORD LAYOUTS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

(c) Sec. 7. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-A.

(d) Sec. 8. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-B.

(e) Sec. 9. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-OID.

(f) Sec. 10. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-S.

(g) Sec. 11. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM W-2G.

For tax year 1990 data, all "B" Records will consist of two sectors of 256 positions each. In the "A" Record, the Amount Indicator Codes that appear in diskette positions 24 through 32 of Sector 1 will be left-justified and blank filled. In the "B" Record, you will allow for all nine payment amount fields and for those not used, enter zeros. For example, if you are reporting on Form 1099-PATR, you will enter a "7" in diskette position 23 of Sector 1 of the "A" Record, Type of Return Indicator field. If you are reporting payments for Amount Codes 2, 4 and 7, then diskette positions 24 through 32 of Sector 1 of the "A" Record will be "247bbbbbb" (b = blanks). In the Payee "B" Record:

Positions 52 through 61 of Sector 1 for Payment Amount 1 will be zeros.

Positions 62-71 of Sector 1 will reflect the actual payment amount to be reported for "Nonpatronage distributions."

Positions 72-81 of Sector 1 for Payment Amount 3 will be zeros.

Positions 82-91 of Sector 1 will reflect the actual payment amount to be reported for "Federal income tax withheld."

Positions 92-111 of Sector 1 for Payment Amounts 5 and 6 will be zeros.

Positions 112-121 of Sector 1 will reflect the actual payment amount to be reported for "Energy investment credit."

Positions 122-141 of Sector 1 for Payment Amounts 8 and 9 will be zeros.

.02 The record layout for Sector 1 will be the same for all "B" Records. Sector 2, however, will be different for Forms 1099-A, 1099-B, 1099-OID, 1099-S and W-2G. Refer to Part C, Sec. 7, 8, 9, 10 and 11 respectively for the record layouts for Sector 2 of these records.

.03 IRS must be able to identify the surname (last name) associated with the TIN (SSN or EIN) furnished on a statement. The specifications below include a field in the payee records called "Name Control" in which the first four characters of the payee's surname or last name are to be entered by the payers. The surname or last name should appear first in the First Payee Name field of all Payee "B" Records; however, if your records have been developed using the first name first, a blank must appear between the first and last names.

.04 If payers are unable to provide the first four characters of the surname, the Name Control Field may be left blank; however, compliance with the following will facilitate IRS computer programs in generating the Name Control.

(a) The surname of the payee whose TIN (SSN or EIN) is shown in the Payee "B" Record should always appear first. If, however, you enter the first name first, you must leave a blank space between the first and last names.

(b) In the case of multiple payees, only the surname of the payee whose TIN (SSN or EIN) is shown in the Payee "B" Record, must be present in the First Payee Name field. Surnames of any other payees in the record may be entered in the Second Payee Name field.

.05 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required by state or local governments or for the filer's own personal use. IRS does not use the data provided in the Special Data Entries field; therefore, the IRS program doesn't check the content or format of the data entered in this field. It is the filer's choice whether or not this field is used. If this field is coded, it will not affect the processing of the Payee "B" Records.

.06 Those filers participating in the Combined Federal/State Filing Program must code their records appropriately for the state to receive the information. The state code appears in Sector 2, positions 180 and 181. The file should also meet the money criteria described in Part A, Sec. 16, Table 2.

.07 Do not code for the states unless prior approval to participate has been granted by IRS. See Part A, Sec. 16, Table 1 for a list of the participating states.

FORMS 1098, 1099-A, 1099-B, 1099-S AND W-2G CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM. Your files must meet all of the requirements specified in Part A, Sec. 16 in order to participate in this program.

.08 All alpha characters entered in the "B" Record should be uppercase.

.09 Do not use decimal points (.) to indicate dollars and cents.

.10 IRS STRONGLY ENCOURAGES FILERS TO REVIEW THEIR DATA FOR ACCURACY BEFORE SUBMISSION TO PREVENT ISSUANCE OF ERRONEOUS NOTICES TO PERSONS FOR WHOM REPORTS ARE FILED. FILERS SHOULD BE ESPECIALLY CAREFUL THAT THEIR TAXPAYER NAMES, SOCIAL SECURITY NUMBERS (SSNs), ACCOUNT NUMBERS, TYPES OF INCOME AND INCOME AMOUNTS ARE CORRECT.

.11 WHEN REPORTING FORM 1098, MORTGAGE INTEREST STATEMENT, THE "A" RECORD WILL REFLECT THE NAME AND EIN OF THE RECIPIENT OF THE INTEREST (THE FILER). THE "B" RECORD WILL REFLECT THE INDIVIDUAL PAYING THE INTEREST (BORROWER/PAYER OF RECORD) AND THE AMOUNT PAID.

SEC. 5. PAYEE "B" RECORD -- FIELD DESCRIPTIONS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

.01 For Forms 1099-A, 1099-B, 1099-OID, 1099-S and W-2G, see Part C, Sec. 7, 8, 9, 10 and 11 respectively for the field descriptions and record layouts for Sector 2 of these records.

                     RECORD NAME: PAYEE "B" RECORD

 

 

 NOTE: For all fields marked REQUIRED, you must provide the

 

 information described under Description and Remarks. For fields not

 

 marked REQUIRED, you must allow for the field but may be instructed

 

 to enter blanks or zeros in the indicated diskette position(s) and

 

 for the indicated length. When using double density diskettes, each

 

 "B" Record will consist of two 256 position sectors.

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "1". It is

 

                                        used to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-4        Payment Year       2        REQUIRED. Enter "90".

 

 

 5-6        Document Specific  2        REQUIRED FOR FORMS 1099-R,

 

            Code                        1099-MISC, 1099-G, AND W-2G.

 

                                        FOR ALL OTHER FORMS, OR IF NOT

 

                                        USED, ENTER BLANKS. For Form

 

                                        1099-R, enter the appropriate

 

                                        code(s) for the Distribution

 

                                        Code. More than one code may

 

                                        apply for Form 1099-R;

 

                                        however, if only one code is

 

                                        required, it will be entered

 

                                        in position 5. Position 6 will

 

                                        be blank. NOTE: You MUST enter

 

                                        at least one (1) Distribution

 

                                        Code for Form 1099-R. BLANKS

 

                                        in BOTH positions 5 and 6 are

 

                                        NOT acceptable for Form 1099

 

                                        -R. For Form 1099-MISC,

 

                                        position 5 is used to indicate

 

                                        Crop Insurance Proceeds.

 

                                        Position 6 will be blank. For

 

                                        Form 1099-G, enter the year of

 

                                        income tax refund in position

 

                                        5. Position 6 will be blank.

 

                                        For Form W-2G enter the Type

 

                                        of Wager in position 5.

 

                                        Position 6 will be blank.

 

 

            Distribution Code           Use only for reporting on Form

 

            (Form 1099-R)               1099-R to identify the

 

                                        Distribution Code. Enter the

 

                                        applicable code from the

 

                                        following table. A "0" (zero)

 

                                        is not a valid code for Form

 

                                        1099-R. A numeric code MUST be

 

                                        entered in all cases except

 

                                        when Code P or D is used.

 

                                        However, when using Code P for

 

                                        an IRA distribution under

 

                                        section 408(d)(4), you may

 

                                        also enter Code 1, if it

 

                                        applies. If you are reporting

 

                                        a total distribution from a

 

                                        plan that includes a

 

                                        distribution from a DEC, you

 

                                        must report two separate "B"

 

                                        Records; one to report the

 

                                        distribution of DECs and the

 

                                        other to report the

 

                                        distribution from the other

 

                                        part of the plan. In addition,

 

                                        if more than one numeric code

 

                                        is applicable to a

 

                                        distribution, report two

 

                                        separate Payee "B" Records.

 

 

                                        Category (See Note)      Code

 

                                        Early (premature)

 

                                          distribution, no known

 

                                          exception /*/          1 /*/

 

                                        Early (premature)

 

                                          distribution,

 

                                          exception applies (as

 

                                          defined in Sec.

 

                                          72(q), (t), or (v))

 

                                          other than disability

 

                                          or death               2 /*/

 

                                        Disability /*/           3 /*/

 

                                        Death (includes payments

 

                                          to a beneficiary) /*/  4 /*/

 

                                        Prohibited

 

                                          transaction /*/        5 /*/

 

                                        Section 1035 Exchange    6

 

                                        Normal distribution /*/  7 /*/

 

                                        Excess contributions

 

                                          plus earnings/ excess

 

                                          deferrals (and/or

 

                                          earnings) taxable in

 

 

                                          1990                   8

 

                                        PS58 costs               9

 

                                        Excess contributions

 

                                          plus earnings/excess

 

                                          deferrals taxable in

 

                                          1989                   P

 

                                        Qualifies for 5-year/

 

                                          10-year averaging      A

 

                                        Qualifies for death

 

                                          benefit exclusion      B

 

                                        Qualifies for both A

 

                                          and B                  C

 

                                        Excess contributions

 

                                          plus earnings/excess

 

                                          deferrals taxable in

 

                                          1988                   D

 

 

 /*/ If you are reporting a distribution for an IRA or SEP for Codes

 

 1, 2, 3, 4, 5, or 7, you MUST code a "1" in Sector

 

 1, Position 45, of the Payee "B" Record.

 

 

 NOTE: For detailed explanations of the distribution codes, see the

 

 1990 "Instructions for Form 1099, 1098, 5498, and W-2G" included in

 

 your magnetic media reporting packages.

 

 

            Crop Insurance              If the payment amount reported

 

            Proceeds (Form              for Amount Code 7 is crop

 

            1099-MISC only)             insurance proceeds, enter a

 

                                        "1" in position 5. Position 6

 

                                        will be blank.

 

 

            Tax Year of                 Use only for reporting the tax

 

            Refund (Form 1099-G         year for which the refund was

 

            only)                       issued. Enter the NUMERIC year

 

                                        for which the refund was

 

                                        issued (e.g., for 1989 enter

 

                                        9). However, if the payment

 

                                        amount field associated with

 

                                        Amount Indicator 2, State or

 

                                        Local Income Tax Refunds,

 

                                        contains a refund, credit or

 

                                        offset that is attributable to

 

                                        an income tax which applies

 

                                        exclusively to income from a

 

                                        trade or business and is not

 

                                        of general application, then

 

                                        enter the ALPHA equivalent of

 

                                        the year for which the refund

 

                                        was issued from the table

 

                                        below (e.g., for 1989 enter

 

                                        I). This code should appear in

 

                                        position 5. Position 6 will be

 

                                        blank.

 

 

                                        Year for Which

 

                                        Trade or Business   Alpha /*/

 

                                        Refund was Issued   Equivalent

 

 

                                        1                   A

 

                                        2                   B

 

                                        3                   C

 

                                        4                   D

 

                                        5                   E

 

                                        6                   F

 

                                        7                   G

 

                                        8                   H

 

                                        9                   I

 

                                        0                   J

 

 

                                        /*/ To be used for trade or

 

                                        business refunds only.

 

 

            Type of Wager               Use only for reporting the

 

            (Form W-2G only)            Type of Wager on Form W-2G.

 

                                        This code will appear in

 

                                        position 5. Position 6 will be

 

                                        blank.

 

 

                                        Category                  Code

 

                                        Horse Race Track (or Off

 

                                          Track Betting of a

 

                                          Horse Track nature)     1

 

                                        Dog Race Track (or Off

 

                                          Track Betting of a Dog

 

                                          Track nature)           2

 

                                        Jai-alai                  3

 

                                        State Conducted Lottery   4

 

                                        Keno                      5

 

                                        Casino Type Bingo. DO NOT

 

                                          use this code for any

 

                                          other type of bingo

 

                                          winnings (e.g., church

 

                                          or fire dept.)          6

 

                                        Slot Machines             7

 

                                        Any other type of

 

                                          gambling winnings.

 

                                          (This includes church

 

                                          bingo, fire dept.

 

                                          bingo, unlabeled

 

                                          winnings, etc.)         8

 

 

 7          Blank              1        Enter blank.

 

 

 8          Corrected Return   1        Diskette position 8 is used to

 

            Indicator                   indicate a corrected return.

 

                                        Refer to Part A, Sec. 13 for

 

                                        specific instructions on how

 

                                        to file corrected returns

 

                                        using magnetic media.

 

 

 9-12       Name Control       4        Enter the first four (4)

 

                                        characters of the surname

 

                                        (last name) of the payee. The

 

                                        surname of the person whose

 

                                        TIN is being reported in

 

                                        positions 16-24 of the "B"

 

                                        Record should be used to

 

                                        determine the Name Control.

 

                                        This is especially important

 

                                        in the case of trustee

 

                                        accounts. IF THE NAME THAT

 

                                        CORRESPONDS TO THE TIN IS NOT

 

                                        INCLUDED IN THE FIRST OR

 

                                        SECOND PAYEE NAME LINE, EVERY

 

                                        EFFORT SHOULD BE MADE TO

 

                                        DEVELOP THE CORRECT NAME

 

                                        CONTROL FOR THE NAME THAT

 

                                        CORRESPONDS TO THE TIN.

 

                                        Surnames of less than four (4)

 

                                        characters should be left

 

                                        -justified, filling the unused

 

                                        positions with blanks. Special

 

                                        characters and imbedded blanks

 

                                        should be removed. In the case

 

                                        of a business, use the first

 

                                        four significant characters of

 

                                        the business name. Disregard

 

                                        the word "the" when it is the

 

                                        first word of the name, UNLESS

 

                                        there are only two words in

 

                                        the name. IF THE NAME CONTROL

 

                                        IS NOT DETERMINABLE BY THE

 

                                        PAYER, LEAVE THIS FIELD BLANK.

 

                                        A dash (-) and ampersand (&)

 

                                        are the only acceptable

 

                                        special characters. (See Part

 

                                        A, Sec. 14 for information on

 

                                        Name Controls.)

 

 

 The following examples may be helpful to you in developing the name

 

 control:

 

 

                         Name                           Name Control

 

 Individuals:

 

                         Jane Brown                     BROW

 

                         John A. Lee                    LEE /*/

 

                         James P. En, Sr.               EN /*/

 

                         John O'Neill                   ONEI

 

                         Mary Van Buren                 VANB

 

                         Juan De Jesus                  DEJE

 

                         Gloria A. El-Roy               EL-R

 

                         Mr. John Smith                 SMIT

 

                         Joe McCarthy                   MCCA

 

                         Pedro Torres-Lopes             TORR

 

                         Maria Lopez Moreno             LOPE

 

                         Binh To La                     LA /*/

 

                         Nhat Thi Pham                  PHAM

 

                         Mark D'Allesandro              DALL

 

 Corporations:

 

                         The First National Bank        FIRS

 

                         The Hideaway                   THEH

 

                         A & B Cafe                     A&BC

 

 Sole Proprietor:

 

                         Jane and Mark Hemlock c/o The  HEML

 

                         Sunshine Club

 

 Partnership:

 

                         Robert Aspen and Bess Willow   ASPE

 

                         Harold Fir, Bruce Elm, and

 

                         Joyce                          FIR /*/

 

                         Spruce et al Ptr

 

 Estate:

 

                         Frank White Estate             WHIT

 

                         Sheila Blue Estate             BLUE

 

 

 Trusts and Fiduciaries:

 

                         Daisy Corporation Employee     DAIS

 

                         Benefit Trust

 

                         Trust FBO The Cherryblossom    CHER

 

                         Society

 

 

 Labor Organization:

 

                         Laborer's Union, AFL-CIO       LABO

 

                         St. Bernard's Methodist

 

                         Church Bldg.                   STBE

 

                         Fund

 

 

      /*/ Name Controls of less than four (4) significant characters

 

 must be left-justified and blank filled.

 

 

 13-14      Blank              2        Enter blanks.

 

 

 15         Type of TIN        1        REQUIRED. This field is used

 

                                        to identify the Taxpayer

 

                                        Identification Number (TIN) in

 

                                        positions 16-24 as either an

 

                                        Employer Identification

 

                                        Number, a Social Security

 

                                        Number, or that the type is

 

                                        undeterminable. Enter the

 

                                        appropriate code from the

 

                                        following table:

 

 

                                        Type of         Type of

 

                                          TIN     TIN   Account

 

 

                                           1      EIN   A business,

 

                                                        organization,

 

                                                        or other

 

                                                        entity that is

 

                                                        not an

 

                                                        individual

 

                                           2      SSN   An individual

 

                                         blank    N/A   If the type of

 

                                                        TIN is

 

                                                        undeter-

 

                                                        minable, enter

 

                                                        a blank.

 

 

 16-24      Taxpayer           9        REQUIRED. Enter the valid 9-

 

            Identification              digit Taxpayer Identification

 

            Number                      Number of the payee (SSN or

 

                                        EIN, as appropriate). If an

 

                                        identification number has been

 

                                        applied for but not received,

 

                                        enter blanks. DO NOT ENTER

 

                                        HYPHENS, ALPHA CHARACTERS, ALL

 

                                        9's OR ALL ZEROS.

 

 

 25-44      Payer's            20       DO NOT ENTER A TAXPAYER

 

            Account                     IDENTIFICATION NUMBER IN THIS

 

            Number                      FIELD. We strongly encourage

 

            for Payee                   the payer to use this field to

 

                                        enter the payee's account

 

                                        number which can be any number

 

                                        assigned by the payer to the

 

                                        payee (e.g., checking or

 

                                        savings account number). THIS

 

                                        NUMBER SHOULD BE UNIQUE AND

 

                                        WILL HELP TO DISTINGUISH THE

 

                                        INDIVIDUAL PAYEE'S ACCOUNT,

 

                                        AND WILL HELP IDENTIFY A

 

                                        SPECIFIC TRANSACTION IF

 

                                        MULTIPLE RETURNS ARE FILED FOR

 

                                        ONE PAYEE. This information is

 

                                        helpful if corrected returns

 

                                        are filed. This number is also

 

                                        provided with your Invalid/No-

 

                                        TIN notification from IRS and

 

                                        may help you determine the

 

                                        branch or subsidiary reporting

 

                                        the transaction. YOU ARE

 

                                        STRONGLY ENCOURAGED TO USE

 

                                        THIS FIELD. Do not define data

 

                                        in this field in packed

 

                                        decimal format. If fewer than

 

                                        twenty characters are

 

                                        required, you may either left-

 

                                        or right-justify, filling the

 

                                        remaining positions with

 

                                        blanks.

 

 

 45         IRA/SEP Indicator  1        This field is only used when

 

                                        reporting Forms 1099-R. This

 

                                        field will be coded ONLY if

 

                                        you entered a code 1, 2, 3, 4,

 

                                        5, or 7 in either Position 5

 

                                        or 6, Document Specific Code,

 

                                        of Sector 1 of the Payee "B"

 

                                        Record, AND you are reporting

 

                                        a distribution from an IRA or

 

                                        SEP. Enter the appropriate

 

                                        indicator from the table

 

                                        below:

 

 

                                        Indicator   Usage

 

                                        1           You are reporting

 

                                                    an IRA or SEP

 

                                                    Distribution.

 

                                        Blank       You are NOT

 

                                                    reporting an IRA

 

                                                    or SEP

 

                                                    Distribution.

 

 

 46-47      Percentage of      2        THIS FIELD IS ONLY USED WHEN

 

            Total                       REPORTING FORM 1099-R, and

 

            Distribution                ONLY if you are reporting a

 

                                        total distribution to more

 

                                        than one person. This field is

 

                                        only 2 positions in length

 

                                        because when a total

 

 

                                        distribution is made to more

 

                                        than one person, the figure

 

                                        MUST be 99% or less. If the

 

                                        percentage is 100, leave this

 

                                        field blank. If the percentage

 

                                        is a fraction, round off to

 

                                        the nearest whole number (for

 

                                        example 10.4% will be 10%;

 

                                        10.5% or more will be 11%).

 

                                        Enter the percentage received

 

                                        by the person whose TIN is

 

                                        included in positions 16-24,

 

                                        Sector 1, of the Payee "B"

 

                                        Record. This field must be

 

                                        right-justified, and unused

 

                                        positions must be zero filled.

 

                                        If not applicable, enter

 

                                        blanks. You need not enter a

 

                                        percentage for IRA or SEP

 

                                        distribution.

 

 

 48-51      Blank              4        Enter blanks.

 

 

            Payment Amount              REQUIRED. You must allow for

 

            Fields                      all payment amounts; for

 

            (Must be numeric)           those not used enter ZEROS.

 

                                        For example, if position 23 of

 

                                        Sector 1 of the "A" Record is

 

                                        "7" (for 1099-PATR) and

 

                                        positions 24-32 are

 

                                        "247bbbbbb" (b = blank), this

 

                                        indicates you are reporting 3

 

                                        actual payment amounts in all

 

                                        of the following Payee "B"

 

                                        Records. Payment Amount 1 will

 

                                        be all "0" (zeros), Payment

 

                                        Amount 2 will represent

 

                                        Nonpatronage distributions,

 

                                        Payment Amount 3 will be all

 

                                        "0" (zeros), Payment Amount 4

 

                                        will represent Federal income

 

                                        tax withheld, Payment Amounts

 

                                        5 and 6 will be all "0"

 

                                        (zeros), Payment Amount 7 will

 

                                        represent energy investment

 

                                        credit, and Payment Amounts 8

 

                                        and 9 will be all "0" (zeros).

 

                                        Each payment field must

 

                                        contain 10 numeric characters

 

                                        (see Note). Each payment

 

                                        amount must be entered in U.S.

 

                                        dollars and cents. The

 

                                        rightmost two positions

 

                                        represent cents in the Payment

 

                                        Amount fields. Do not enter

 

                                        dollar signs, commas, decimal

 

                                        points or NEGATIVE PAYMENTS

 

                                        (except those items that

 

                                        reflect a loss on Form 1099-

 

                                        B). You may NOT enter ANY

 

                                        negative payments for Form

 

                                        1099-MISC. Positive and

 

                                        negative amounts are indicated

 

                                        by placing a "+" or "-" (minus

 

                                        sign) in the leftmost position

 

                                        of the payment amount field. A

 

                                        negative overpunch in the

 

                                        units position may be used,

 

                                        instead of the minus sign, to

 

                                        indicate a negative amount. If

 

                                        a plus sign, minus sign, or

 

                                        negative overpunch is not

 

                                        used, the number will be

 

                                        assumed to be positive.

 

                                        PAYMENT AMOUNTS MUST BE RIGHT-

 

                                        JUSTIFIED AND UNUSED POSITIONS

 

                                        MUST BE ZERO FILLED. Federal

 

                                        income tax withheld cannot be

 

                                        reported as a negative amount

 

                                        on any form. NOTE: If you are

 

                                        reporting money amounts in

 

                                        excess of 9999999999 (dollars

 

                                        and cents), it must be

 

                                        reported as follows:

 

 

                                        (1) The first Payee "B" Record

 

                                            MUST contain 9999999999.

 

                                        (2) The second Payee "B"

 

                                            record will contain the

 

                                            remaining money amounts.

 

                                        DO NOT SPLIT THIS FIGURE IN

 

                                        HALF.

 

 

 52-61      Payment /*/        10       The amount reported in this

 

            Amount 1                    field represents payments for

 

                                        Amount Code 1 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 62-71      Payment /*/        10       The amount reported in this

 

            Amount 2                    field represents payments for

 

 

                                        Amount Code 2 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 72-81      Payment /*/        10       The amount reported in this

 

            Amount 3                    field represents payments for

 

                                        Amount Code 3 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 82-91      Payment /*/        10       The amount reported in this

 

            Amount 4                    field represents payments for

 

                                        Amount Code 4 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 92-101     Payment /*/        10       The amount reported in this

 

            Amount 5                    field represents payments for

 

                                        Amount Code 5 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 102-111    Payment /*/        10       The amount reported in this

 

            Amount 6                    field represents payments for

 

                                        Amount Code 6 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 112-121    Payment /*/        10       The amount reported in this

 

            Amount 7                    field represents payments for

 

                                        Amount Code 7 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 122-131    Payment /*/        10       The amount reported in this

 

            Amount 8                    field represents payments for

 

                                        Amount Code 8 in the

 

                                        Payer/Transmitter "A" Record.

 

 

 132-141    Payment /*/        10       The amount reported in this

 

            Amount 9                    field represents payments for

 

                                        Amount Code 9 in the

 

                                        Payer/Transmitter "A" Record.

 

 

      /*/ If there are discrepancies between these Payment Amount Codes

 

 and the boxes on the paper forms, the instructions in this revenue

 

 procedure govern.

 

 

 142-161    Blank              20       Enter blanks.

 

 

 162        Foreign Country    1        REQUIRED. If the payee's

 

            Indicator                   address is in a foreign

 

                                        country, enter a "1" in this

 

                                        field. This will allow you to

 

                                        use any format for the Payee

 

                                        Address, City, State and ZIP

 

                                        Code. Address information must

 

                                        not appear in the First or

 

                                        Second Payee Name Lines.

 

 

                                        If the address for the payee

 

                                        is a U.S. address, you must

 

                                        enter a blank in this field.

 

                                        The free address format may

 

                                        only be used for foreign

 

                                        addresses. For U.S. addresses,

 

                                        you must use the U.S. Postal

 

                                        Service state abbreviations in

 

                                        diskette positions 72 and 73

 

                                        of Sector 2 of the "B" Record.

 

                                        These abbreviations are

 

                                        provided in Part A, Sec. 18.

 

 

 163-202    First Payee Name   40       REQUIRED. Do not enter address

 

            Line                        information in this field.

 

                                        Enter the name of the payee

 

                                        (preferably surname (last

 

                                        name) first) whose Taxpayer

 

                                        Identification Number appears

 

                                        in positions 16-24 of Sector 1

 

                                        of the "B" Record. If fewer

 

                                        than 40 characters are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

                                        blanks. If more space is

 

                                        required for the name, utilize

 

                                        the Second Payee Name Line

 

                                        field below. If there are

 

                                        multiple payees, only the name

 

                                        of the payee whose Taxpayer

 

                                        Identification Number has been

 

                                        provided may be entered in

 

                                        this field. The names of the

 

                                        other payees should be entered

 

                                        in the Second Payee Name Line

 

                                        field. NOTE: WHEN REPORTING

 

                                        FORM 1098, MORTGAGE INTEREST

 

                                        STATEMENT, THE "A" RECORD WILL

 

                                        REFLECT THE NAME OF THE

 

                                        RECIPIENT OF THE INTEREST (THE

 

                                        FILER). THE "B" RECORD WILL

 

                                        REFLECT THE INDIVIDUAL PAYING

 

                                        THE INTEREST (THE

 

                                        BORROWER/PAYER OF RECORD) AND

 

                                        THE AMOUNT PAID. FOR FORMS

 

                                        1099-S, THE "B" RECORD WILL

 

 

                                        REFLECT THE SELLER

 

                                        INFORMATION.

 

 

 203-242    Second Payee       40       If the payee name requires

 

            Name Line                   more space than is available

 

                                        in the First Payee Name Line,

 

                                        enter only the remaining

 

                                        portion of the name in this

 

                                        field. If there are multiple

 

                                        payees (e.g., partners or

 

                                        joint owners), we encourage

 

                                        you to use this field for

 

                                        those payees' names not

 

                                        associated with the Taxpayer

 

                                        Identification Number in

 

                                        positions 16-24 of Sector 1 of

 

                                        the "B" Record. DO not enter

 

                                        address information in this

 

                                        field. NOTE: It is important

 

                                        that you provide as much payee

 

                                        information to IRS as possible

 

                                        to identify the owner of the

 

                                        Taxpayer Identification

 

                                        Number. Left-justify and fill

 

                                        unused positions with blanks.

 

                                        FILL WITH BLANKS IF NO ENTRIES

 

                                        ARE PRESENT FOR THIS FIELD.

 

 

 243-256    Blank              14       Enter blanks.

 

 

 SECTOR 2 -- See Part C, Sec. 7, 8, 9, 10 and 11 for field descriptions

 

             for Sector 2 of Forms 1099-A, 1099-B, 1099-OID, 1099-S and

 

             W-2G.

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "2". Used

 

                                        to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format may be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee ZIP Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (Country) and Payee

 

 ZIP Code may be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1."

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified, and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP Code     9        REQUIRED. Enter the valid 9

 

                                        digit ZIP Code assigned by the

 

                                        U.S. Postal Service. If only

 

                                        the first 5 digits are known,

 

                                        left-justify and fill the

 

                                        unused positions with blanks.

 

                                        Use this field for the ZIP

 

                                        Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field, which is located in

 

                                        position 162 of Sector 1 of

 

                                        the "B" Record.

 

 

 83-112     Blank              30       Enter blanks.

 

 

 113-179    Special Data       67       This portion of the Payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 180-181    Combined           2        If a payee record is to be

 

            Federal/                    forwarded to a state agency as

 

            State Code                  part of the Combined Federal/

 

                                        State Filing Program, enter

 

                                        the valid state code from Part

 

                                        A, Sec. 16, Table 1. For those

 

                                        filers or states NOT

 

                                        participating in this program

 

                                        or filers of Form 1098, ENTER

 

                                        BLANKS.

 

 

 182-256    Blank              75       Enter blanks.

 

 

SEC. 6. PAYEE "B" RECORD -- RECORD LAYOUTS FOR SECTORS 1 AND 2 OF FORMS 1098, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-PATR, 1099-R, 5498 AND SECTOR 1 OF FORMS 1099-A, 1099-B, 1099-OID, 1099-S AND W-2G.

01. See Part C, Sec. 7, 8, 9, 10 and 11 for the field descriptions and record layouts for Sector 2 of Form 1099-A, 1099-B, 1099-OID, 1099-S and W-2G.

[Editor's note: These record layouts are graphic representations of the file specifications described above. They have been omitted because they provide no additional information and are not suitable for clear on-screen presentation.]

SEC. 7. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-A

.01 This section contains information pertaining to Sector 2 of Form 1099-A. For detailed explanations of the 1099-A fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part C, Sec. 5 for field descriptions for Sector 1 of the Payee "B" Record for Forms 1099-A.

.03 FORM 1099-A CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-A -- SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "2". Used

 

                                        to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format may be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee ZIP Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (Country) and Payee

 

 ZIP Code may be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1".

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP          9        REQUIRED. Enter the valid 9

 

                                        Code digit ZIP Code assigned

 

                                        by the U.S. Postal Service. If

 

                                        only the first 5 digits are

 

                                        known, left-justify and fill

 

                                        the unused positions with

 

                                        blanks. Use this field for the

 

                                        ZIP Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field, which is located in

 

                                        position 162 of Sector 1 of

 

                                        the "B" Record.

 

 

 83-112     Blank              30       Enter blanks.

 

 

 113-133    Special Data       21       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 134-139    Date of Lender's   6        REQUIRED FOR FORM 1099-A ONLY.

 

            Acquisition or              Enter the date of the

 

            Knowledge of                acquisition the secured

 

            Abandonment                 property or the date you first

 

                                        knew or had reason to know

 

                                        that the property was

 

                                        abandoned in the format MMDDYY

 

                                        (e.g., 102490). DO NOT ENTER

 

                                        HYPHENS OR SLASHES.

 

 

 140        Liability          1        REQUIRED FOR FORM 1099-A ONLY.

 

            Indicator                   Enter the appropriate

 

                                        indicator from the table

 

                                        below:

 

 

                                        Indicator   Usage

 

 

                                        1           Borrower is

 

                                                    personally liable

 

                                                    for repayment of

 

                                                    the debt.

 

                                        Blank       Borrower is not

 

                                                    liable for

 

                                                    repayment of the

 

                                                    debt.

 

 

 141-179    Description        39       REQUIRED FOR FORM 1099-A ONLY.

 

                                        Enter a brief description of

 

                                        the property. For example, for

 

                                        real property, enter the

 

                                        address, or if the address

 

                                        does not sufficiently identify

 

                                        the property, enter the

 

                                        section, lot and block. For

 

                                        personal property, enter the

 

                                        type, make, and model (e.g.,

 

                                        Car-1988 Buick Regal or Office

 

                                        Equipment). Enter "CCC" for

 

                                        crops forfeited on Commodity

 

                                        Credit Corporation loans. If

 

                                        fewer than 39 positions are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

                                        blanks.

 

 

 180-256    Blank              77       Enter blanks.

 

 

 PAYEE "B" RECORD - RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-A

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 8. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-B

.01 This section contains the general payment information for Sector 2 of Form 1099-B. For detailed explanations of the 1099-B fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part C, Sec. 5 for field descriptions for Sector 1 of the Payee "B" Record for Form 1099-B.

.03 FORM 1099-B CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-B -- SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Sequence    1        REQUIRED. Must be a "2". Used

 

                                        to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format may be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee ZIP Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (country) and Payee

 

 ZIP Code may be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1".

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP          9        REQUIRED. Enter the valid 9

 

            Code                        digit ZIP Code assigned by the

 

                                        U.S. Postal Service. If only

 

                                        the first 5 digits are known,

 

                                        left-justify and fill the

 

                                        unused positions with blanks.

 

                                        Use this field for the ZIP

 

                                        Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field, which is located in

 

                                        position 162 of Sector 1 of

 

                                        the "B" Record.

 

 

 83-112     Blank              30       Enter blanks.

 

 

 113-122    Special Data       10       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 123        Gross              1        REQUIRED FOR FORM 1099-B ONLY.

 

            Proceeds                    Enter appropriate indicator

 

            Reported to IRS             from the table below. If this

 

            Indicator                   field is not utilized, ENTER

 

                                        BLANKS.

 

 

                                        Indicator           Usage

 

 

                                        1           Gross Proceeds

 

                                        2           Gross Proceeds

 

                                                    less commission

 

                                                    and option

 

                                                    premiums

 

 

 124-129    Date of            6        REQUIRED FOR FORM 1099-B ONLY.

 

            Sale                        For broker transactions, enter

 

                                        the trade date of the

 

                                        transaction in the format

 

                                        MMDDYY (e.g., 102490). For

 

                                        barter exchanges, enter the

 

                                        date cash, property, a credit,

 

                                        or scrip is actually or

 

                                        constructively received. Enter

 

                                        blanks if this is an aggregate

 

                                        transaction. DO NOT ENTER

 

                                        HYPHENS OR SLASHES.

 

 

 130-142    CUSIP Number       13       REQUIRED FOR FORM 1099-B ONLY.

 

                                        For broker transactions only,

 

                                        enter the CUSIP (Committee on

 

                                        Uniform Security

 

                                        Identification Procedures)

 

                                        number of the item reported

 

                                        for Amount Indicator "2"

 

                                        (Stocks, bonds, etc.). Enter

 

                                        blanks if this is an aggregate

 

                                        transaction. Enter "0" (zeros)

 

                                        if the number is not available

 

                                        or applicable. For CUSIP

 

                                        numbers with less than 13

 

                                        characters, right-justify and

 

                                        fill the remaining positions

 

                                        with blanks.

 

 

 143-181    Description        39       REQUIRED FOR FORM 1099-B ONLY.

 

                                        Enter a brief description of

 

                                        the item or services for which

 

                                        the proceeds are being

 

                                        reported. If fewer than 39

 

                                        characters are required, left-

 

                                        justify and fill unused

 

                                        positions with blanks. For

 

                                        regulated futures contracts,

 

                                        enter "RFC" and any amount

 

                                        subject to backup withholding.

 

                                        Enter blanks if this is an

 

                                        aggregate transaction.

 

 

 182-256    Blank              75       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-B

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 9. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-OID

.01 This section contains the general payment information for Sector 2 of Form 1099-OID. For detailed explanations of the 1099-OID fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part C, Sec. 5 for field descriptions for Sector 1 of the Payee "B" Record for Form 1099-OID.

                     RECORD NAME: PAYEE "B" RECORD

 

                     FORM 1099-OID -- SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "2". Used

 

            Sequence                    to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format may be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee ZIP Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (country) and Payee

 

 ZIP Code may be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1".

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified, and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP          9        REQUIRED. Enter the valid 9

 

            Code                        digit ZIP Code assigned by the

 

                                        U.S. Postal Service. If only

 

                                        the first 5 digits are known,

 

                                        left-justify and fill the

 

                                        unused positions with blanks.

 

 

                                        Use this field for the ZIP

 

                                        Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field, which is located in

 

                                        position 162 of Sector 1 of

 

                                        the "B" Record.

 

 

 83-112     Blank              30       Enter blanks.

 

 

 113-140    Special Data       28       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 141-179    Description        39       REQUIRED. Enter identification

 

                                        number (CUSIP Number) or

 

                                        description of the obligation.

 

                                        The description may include

 

                                        the stock exchange, issuer,

 

                                        coupon rate and year of

 

                                        maturity. If fewer than 39

 

                                        characters are required, left-

 

                                        justify and fill unused

 

                                        positions with blanks.

 

 

 180-181    Combined           2        If a payee record is to be

 

            Federal/                    forwarded to a state agency as

 

            State Code                  part of the Combined Federal/

 

                                        State Filing Program, enter

 

                                        the valid state code from Part

 

                                        A, Sec. 16, Table 1. For those

 

                                        filers or states NOT

 

                                        participating in this program,

 

                                        ENTER BLANKS.

 

 

 182-256    Blank              75       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-OID

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 10. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-S

.01 This section contains the general payment information for Sector 2 of Form 1099-S. For detailed explanations of the 1099-S fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part C, Sec. 5 for field descriptions for Sector 1 of the Payee "B" Record for Forms 1099-S.

.03 FORM 1099-S CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                      FORM 1099-S -- SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "2". Used

 

            Sequence                    to sequence the sectors

 

                                        making up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format may be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee ZIP Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (Country) and Payee

 

 ZIP Code may be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1".

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified, and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP          9        REQUIRED. Enter the valid 9

 

            Code                        digit ZIP Code assigned by the

 

                                        U.S. Postal Service. If only

 

                                        the first 5 digits are known,

 

                                        left-justify and fill the

 

                                        unused positions with blanks.

 

                                        Use this field for the ZIP

 

                                        Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field, which is located in

 

                                        position 162 of Sector 1 of

 

                                        the "B" Record.

 

 

 83-110     Blank              28       Enter blanks.

 

 

 111-133    Special Data       23       This portion of the payee "B"

 

            Entries                     Record may be used to record

 

                                        information for state or local

 

                                        government reporting or for

 

                                        the filer's own purposes.

 

                                        Payers should contact their

 

                                        state or local revenue

 

                                        departments for their filing

 

                                        requirements. If this field is

 

                                        not utilized, ENTER BLANKS.

 

 

 134-139    Date of            6        REQUIRED FOR FORM 1099-S ONLY.

 

            Closing                     Enter the closing date in the

 

                                        format MMDDYY (e.g., 102490).

 

                                        DO NOT ENTER HYPHENS OR

 

                                        SLASHES.

 

 

 140-178    Description        39       REQUIRED FOR FORM 1099-S ONLY.

 

                                        Enter the address of the

 

                                        property transferred or a

 

                                        legal description of the

 

                                        property. If you are entering

 

                                        an address, include the state

 

                                        and ZIP code where the

 

                                        property is located. If fewer

 

                                        than 39 positions are

 

                                        required, left-justify and

 

                                        fill unused positions with

 

                                        blanks.

 

 

 179        Property           1        REQUIRED FOR FORM 1099-S ONLY.

 

            or Services                 If the transferor received or

 

            Received                    will receive property (other

 

                                        than cash) or services as part

 

                                        of the consideration for the

 

                                        property transferred, enter

 

                                        "1." If this field is not

 

                                        utilized, enter blank.

 

 

 180-256    Blank              77       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 2 OF FORM 1099-S

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 11. PAYEE "B" RECORD -- FIELD DESCRIPTIONS AND RECORD LAYOUT FOR SECTOR 2 OF FORM W-2G

.01 This section contains the general payment information for Sector 2 of Form W-2G. For detailed explanations of the W-2G fields see the 1990 "Instructions for Forms 1099, 1098, 5498, and W-2G" included in your reporting package.

.02 See Part C, Sec. 5 for field descriptions for Sector 1 of the Payee "B" Record for Form W-2G.

.03 FORM W-2G CANNOT BE FILED UNDER THE COMBINED FEDERAL/STATE FILING PROGRAM.

                     RECORD NAME: PAYEE "B" RECORD

 

                       FORM W-2G -- SECTOR 2 ONLY

 

 

 SECTOR 2

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "2". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYEE Record.

 

 

 2          Record Type        1        REQUIRED. Enter "B".

 

 

 3-42       Payee Mailing      40       REQUIRED. Enter mailing

 

            Address                     address of payee. Left-justify

 

                                        and fill unused positions with

 

                                        blanks. The address MUST be

 

                                        present. This field MUST NOT

 

                                        contain any data other than

 

                                        the payee's mailing address.

 

                                        Any format may be used in

 

                                        reporting a foreign mailing

 

                                        address.

 

 

 For U.S. addresses, the Payee City, Payee State and Payee Zip Code

 

 must be reported as a 29, 2 and 9 position field, respectively. For

 

 foreign addresses, the Payee City, Payee State (country) and Payee

 

 Zip Code may be reported as a continuous 40 position field. When

 

 reporting a foreign address, the Foreign Country Indicator must

 

 contain a "1".

 

 

 43-71      Payee City         29       REQUIRED. Enter the city,

 

                                        left-justified, and fill the

 

                                        unused positions with blanks.

 

                                        Do not enter state and ZIP

 

                                        Code information in this

 

                                        field.

 

 

 72-73      Payee State        2        REQUIRED. Enter the

 

                                        abbreviation for the state as

 

                                        shown in Part A, Sec. 18. You

 

                                        MUST use valid U.S. Postal

 

                                        Service state abbreviations

 

                                        for U.S. addresses.

 

 

 74-82      Payee ZIP          9        REQUIRED. Enter the valid 9

 

            Code                        digit ZIP Code assigned by the

 

                                        U.S. Postal Service. If only

 

                                        the first 5 digits are known,

 

                                        left-justify and fill the

 

                                        unused positions with blanks.

 

                                        Use this field for the ZIP

 

                                        Code only. For foreign

 

                                        countries, alpha characters

 

                                        are acceptable as long as you

 

                                        have entered a "1" in the

 

                                        Foreign Country Indicator

 

                                        field, which is located in

 

                                        position 162 of Sector 1 of

 

                                        the "B" Record.

 

 

 83-112     Blank              30       Enter blanks.

 

 

 113-118    Date Won           6        REQUIRED FOR FORM W-2G ONLY.

 

                                        Enter the date of the

 

                                        winning event in the format

 

                                        MMDDYY (e.g., 102490). This is

 

                                        not the date the money was

 

                                        paid, if paid after the date

 

                                        of the race (or game). DO NOT

 

                                        ENTER HYPHENS OR SLASHES.

 

 

 119-133    Transaction        15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the ticket

 

                                        number, card number (and

 

                                        color, if applicable), machine

 

                                        serial number or any other

 

                                        information that will help

 

                                        identify the winning

 

                                        transaction. Not applicable

 

                                        for horse and dog racing, jai

 

                                        alai and certain other

 

                                        wagering transactions,

 

                                        sweepstakes, wagering pools

 

                                        and certain lotteries. If no

 

                                        entry, enter blanks.

 

 

 134-138    Race               5        REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the race (or

 

                                        game) applicable to the

 

                                        winning ticket. If no entry,

 

                                        enter blanks.

 

 

 139-143    Cashier            5        REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the initials of

 

                                        the cashier making the winning

 

                                        payment. If no entry, enter

 

                                        blanks.

 

 

 144-148    Window             5        REQUIRED FOR FORM W-2G ONLY.

 

                                        The window number or location

 

                                        of the person paying the

 

                                        winnings. If no entry, enter

 

                                        blanks.

 

 

 149-163    First ID           15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the first

 

                                        identification number of the

 

                                        person receiving the winnings.

 

                                        If no entry, enter blanks.

 

 

 164-178    Second ID          15       REQUIRED FOR FORM W-2G ONLY.

 

                                        If applicable, the second

 

                                        identification number of the

 

                                        person receiving the winnings.

 

                                        If no entry, enter blanks.

 

 

 179-256    Blank              78       Enter blanks.

 

 

 PAYEE "B" RECORD -- RECORD LAYOUT FOR SECTOR 2 OF FORM W-2G

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 12. END OF PAYER "C" RECORD

.01 The "C" Record consists of one 256-position sector. The Control Total fields are each 15 positions in length.

.02 The End of Payer "C" Record is a summary record for a type of return for a given payer.

.03 The "C" Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer. The "C" Record MUST be written after the last Payee "B" Record for each type of return for a given payer. For each "A" Record and group of "B" Records on the file, there must be a corresponding "C" Record.

.04 In developing the "C" Record, for example, if you used Amount Codes 1, 3 and 6 in the "A" Record, the totals from the "B" Records will appear in Control Totals 1, 3 and 6 of the "C" Record. In this example, positions 27-41, 57-86 and 102-146 would be zero filled.

.05 Payers/Transmitters must verify the accuracy of the totals in the "C" Record and must enter the totals on the Forms 4804, 4802 or computer generated substitute, which will accompany the shipment. The lines used on Forms 4804 and 4802 to record payment amounts correspond with the Amount Codes used in the "A" Record.

.06 Missing or incorrect End of Payer "C" Records will result in the media being returned for correction.

                 RECORD NAME: END OF PAYER "C" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "1". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "C".

 

 

 3-8        Number of          6        REQUIRED. Enter the total

 

            Payees                      number of Payee "B" Records

 

                                        covered by the preceding

 

                                        Payer/Transmitter "A" Record.

 

                                        Right-justify and zero fill.

 

 

 9-11       Blank              3        Enter blanks.

 

 

      REQUIRED. If any corresponding Payment Amount fields are present

 

 in the Payee "B" Records, accumulate into the appropriate Control

 

 Total field. CONTROL TOTALS MUST BE RIGHT-JUSTIFIED, AND UNUSED

 

 CONTROL FIELDS MUST BE ZERO FILLED. Please note that all Control

 

 Total fields are 15 positions in length.

 

 

 12-26      Control      15

 

            Total 1

 

 27-41      Control      15

 

            Total 2

 

 42-56      Control      15

 

            Total 3

 

 57-71      Control      15

 

            Total 4

 

 72-86      Control      15

 

            Total 5

 

 87-101     Control      15

 

            Total 6

 

 102-116    Control      15

 

            Total 7

 

 117-131    Control      15

 

            Total 8

 

 132-146    Control      15

 

            Total 9

 

 

 147-256    Blank              110      Enter blanks.

 

 

 END OF PAYER "C" RECORD -- RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 13. STATE TOTALS "K" RECORD

.01 The "K" Record consists of one 256-position sector. The Control Total fields are each 15 positions in length.

.02 The State Totals "K" Record is a summary for a given payer and type of return to a given state in the Combined Federal/State Filing Program. Use ONLY when state reporting approval has been granted.

.03 The "K" Record will contain the total number of payees and the totals of the payment amount fields filed for a given state. The "K" Record(s) must be written after the "C" Record for the related "A" Record.

.04 In developing the "K" Record, for example, if you used Amount Codes 1, 3 and 6 in the "A" Record, the totals from the "B" Records coded for this state will appear in Control Totals 1, 3 and 6 of the "K" Record.

.05 There MUST be a separate "K" Record for each state being reported.

.06 Refer to Part A, Sec. 16 for the requirements and conditions that MUST be met to file on this program.

                 RECORD NAME: END OF PAYER "K" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record             1        REQUIRED. Must be a "1". Used

 

            Sequence                    to sequence the sectors making

 

                                        up a PAYER Record.

 

 

 2          Record Type        1        REQUIRED. Enter "K".

 

 

 3-8        Number of          6        REQUIRED. Enter the total

 

            Payees                      number of Payee "B" Records

 

                                        being coded for this state.

 

                                        Right-justify and zero fill.

 

 

 9-11       Blank              3        Enter blanks.

 

 

      REQUIRED. If any corresponding Payment Amount fields are present

 

 in the Payee "B" Records, accumulate into the appropriate Control

 

 Total field. CONTROL TOTALS MUST BE RIGHT-JUSTIFIED, AND UNUSED

 

 CONTROL FIELDS MUST BE ZERO FILLED. Please note that all Control

 

 Total fields are 15 positions in length.

 

 

 12-26      Control      15

 

            Total 1

 

 27-41      Control      15

 

            Total 2

 

 42-56      Control      15

 

            Total 3

 

 57-71      Control      15

 

            Total 4

 

 72-86      Control      15

 

            Total 5

 

 87-101     Control      15

 

            Total 6

 

 102-116    Control      15

 

            Total 7

 

 117-131    Control      15

 

            Total 8

 

 132-146    Control      15

 

            Total 9

 

 

 147-254    Blank              108      Enter blanks.

 

 

 255-256    Combined           2        REQUIRED. Enter the code

 

            Federal/                    assigned to the state which is

 

            State Code                  to receive the information.

 

                                        (Refer to Part A, Sec. 16,

 

                                        Table 1.)

 

 

                END OF PAYER "K" RECORD -- RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

SEC. 14. END OF TRANSMISSION "F" RECORD

.01 The "F" Record consists of one 256-position sector. The "F" Record is a summary of the number of payers in the entire file.

.02 This record should be written after the last "C" Record (or last "K" Record, when applicable) of the entire file.

              RECORD NAME: END OF TRANSMISSION "F" RECORD

 

 

 SECTOR 1

 

 

 Diskette

 

 Position   Field Title        Length   Description and Remarks

 

 --------------------------------------------------------------------

 

 1          Record Type        1        REQUIRED. Enter "F".

 

 

 2-5        Number of          4        You may enter the total number

 

            "A" Records                 of Payer/Transmitter "A"

 

                                        Records in the entire file.

 

                                        Right-justify and zero fill or

 

                                        enter all zeros.

 

 

 6-30       Zero               25       Enter zeros.

 

 

 31-256     Blank              226      Enter blanks.

 

 

            END OF TRANSMISSION "F" RECORD -- RECORD LAYOUT

 

 

 [Editor's note:  These record layouts are graphic representations

 

 of the file specifications described above. They have been omitted

 

 because they provide no additional information and are not suitable

 

 for clear on-screen presentation.]

 

 

PART D. MISCELLANEOUS INFORMATION

SECTION 1. MAGNETIC MEDIA-RELATED FORMS AND PUBLICATIONS AVAILABLE AT THE IRS MARTINSBURG COMPUTING CENTER

.01 IRS/MCC maintains supplies of magnetic media-related forms and publications including:

-Publication 1220, Specifications for Filing Forms 1098, 1099 Series, 5498, and W-2G Electronically or on Magnetic Tape, Tape Cartridge, 5 1/4 and 3 1/2 Inch Diskettes

-Publication 1255, Requirements and Conditions for Filing Forms 1098, 1099 Series, 5498, and W-2G on 8 Inch Magnetic Diskette

-Publication 1187, Requirements and Conditions for Filing Form 1042S, Foreign Person's U.S. Source Income Subject to Withholding, on Magnetic Tape

-Publication 1239, Requirements and Conditions for Submitting Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, on Magnetic Tape

-Publication 1245, Magnetic Tape Reporting for Forms W-4

-Publication 1437, Revenue Procedure and File Specifications for Magnetic Tape Filing of Fiduciary Returns Forms 1041, and Partnership Returns Form 1065, for Tax Year 1989

-Instructions for Forms 1099, 1098, 5498, and W-2G

-Form 8508, Request for Waiver from Filing Information Returns on Magnetic Media

-Form 4419, Application for Filing Information Returns Magnetically/Electronically

-Form 8809, Request for Extension of Time to File Information Returns

-Form 4804, Transmittal of Information Returns Reported on Magnetic Media

-Form 4802, Transmittal for Multiple Magnetic Media Reporting

-Form 5064, Media Label

-Notice 210, Preparation Instructions for Media Label, Form 5064

-Form 6466, Transmittal of Magnetic Tape of Form W-4, Employee's Withholding Allowance Certificate

-Form 6467, Multiple Employer Transmittal for Magnetic Tape Reporting of Form W-4

-Form 6468, How to Prepare Form 6469, Tape Label for Form W-4

-Form 6469, Tape Label for Form W-4

.02 To order any of these forms or publications, you may contact IRS/MCC (see Part A, Sec. 3 for the address, telephone number, and hours of operation). You may also call the IRS toll- free forms and publications order number (1-800-424-FORM, 1-800-829-FORM after September 30, 1990), or contact your local IRS office.

SEC. 2. FEDERAL DOLLAR CRITERIA

.01 For your convenience, the federal requirements for reporting the information returns to IRS is provided in Table 1.

                 TABLE 1. FEDERAL DOLLAR REQUIREMENTS

 

 

 FORM                    DOLLAR CRITERIA

 

 1098                    $600

 

 1099-A                  ALL

 

 1099-B                  ALL

 

 1099-DIV                $10 ($600 for Liquidations)

 

 1099-G                  $10 -- Unemployment and Tax Refunds

 

                         $600 -- All others

 

 1099-INT                $10

 

                         $600 (In some cases)

 

 1099-MISC               $600

 

                         ALL (Fishing boat proceeds)

 

                         $10 (Royalties or Substitute Dividend and

 

                         Tax-exempt Interest Payments Reportable by

 

                         Brokers)

 

                         $5,000 -- Direct sales indicator

 

 1099-OID                $10

 

 1099-PATR               $10

 

 1099-R                  ALL

 

 1099-S                  ALL

 

 5498                    ALL

 

 W-2G                    $600

 

                         $1200 (Bingo or Slot Machines)

 

                         $1500 (Keno)

 

 

      For specific information, refer to the 1990 "Instructions for

 

 Forms 1099, 1098, 5498, and W-2G."
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