Rp 97-33

For Further Information on Electro n i c
Funds Transfer
For information on the Treasury’s electronic funds transfer system — the Electronic Federal Tax Payment System
(EFTPS) — or to get a form to enroll in
EFTPS, call either of the two Treasury Financial Agents for EFTPS at (800) 9458400 or (800) 555-4477. Taxpayers may
also request enrollment forms by calling
the Service Distribution Center at (800)
829-3676.
Drafting Information
The principal author of this notice is
Robert J. Basso of the Office of A s s i s t a n t
Chief Counsel (Income Tax and A c c o u n ting). For further information regarding
the penalty waiver, contact Mr. Basso. For
further information regarding the comments on future guidance, contact Vi n c e n t
G. Surabian. Both can be contacted at
(202) 622-4940 (not a toll-free call).
26 CFR 601.602: Tax Forms and Instructions. (Also
Part I, § 6302; 31.6302–1.)

Rev. Proc. 97–33
CONTENTS
SECTION 1 PURPOSE
SECTION 2 BACKGROUND
SECTION 3 DEFINITIONS
SECTION 4 ENROLLMENT
SECTION 5 ASSIGNMENTTO A
FINANCIALAGENT
SECTION 6 TIMELY INITIATION
OF FTD OR FTP
SECTION 7 ACH DEBIT ENTRY
SECTION 8 ACH CREDIT ENTRY
SECTION 9 ELECTRONIC TAX
APPLICATION (ETA)
SECTION 10 PROOF OF PAYMENT
SECTION 11 REFUNDS
SECTION 12 ENROLLMENTFORMS
AND
ADDITIONAL
INFORMATION
ABOUT EFTPS
SECTION 13 EF F E C T ON OTHER
DOCUMENTS
SECTION 14 EFFECTIVE DATE

1997–30 I.R.B.

SECTION 15 IN T E R N A LREVENUE
S E RVICE OFFICE
CONTACT
SECTION 16 PAPERWORK
REDUCTION ACT
SECTION 1. PURPOSE
This revenue procedure provides taxpayers with information about the Electronic Federal Tax Payment System
(EFTPS). EFTPS is an electronic remittance processing system for making federal tax deposits (FTDs) and federal tax
payments (FTPs). EFTPS is the successor electronic funds transfer (EFT) system
to TAXLINK described in Rev. Proc.
94–48, 1994–2 C.B. 694.
SECTION 2. BACKGROUND
.01 Section 6302(c) of the Internal
Revenue Code provides that the Secretary
of the Treasury (Secretary) may authorize
Federal Reserve banks, and incorporated
banks and other financial institutions that
are depositories or financial agents of the
United States, to receive any tax imposed
under the internal revenue laws, in such
m a n n e r, at such times, and under such
conditions as the Secretary may prescribe.
Section 6302(c) also provides that the
Secretary shall prescribe the manner,
times, and conditions under which the receipt of such tax by such banks and other
financial institutions is to be treated as a
payment of such tax to the Secretary.
.02 Section 6302(h) requires the Secretary to establish an EFT system to collect
the FTDs of certain taxpayers. TA X L I N K
and its successor, EFTPS, are the EFTs y stems developed by the Secretary to collect
federal taxes. The TAXLINK system will
terminate on July 15, 1997. All taxpayers
making FTDs or FTPs by EFT must use
EFTPS after July 15, 1997.
.03 Some taxpayers are required by
regulations issued under § 6302(h) to
make FTDs using an EFT system. See
§ 31.6302–1(h)(2)(i)(A) of the Employment Taxes and Collection of Income Tax
at Source Regulations. Taxpayers not required to make FTDs using an EFT system may choose to do so voluntarily.
Taxpayers also may choose to make FTPs
using EFTPS.
.04 All taxpayers participating in
EFTPS must comply with this revenue
procedure.

10

.05 The two primary payment options in
EFTPS are an Automated Clearing House
(ACH) debit entry and an ACH credit entry.
Taxpayers may also use the Electronic Ta x
Application (ETA) to accommodate their
business requirements and meet their FTD
and FTP obligations. These payment options are described in sections 7, 8, and 9 of
this revenue procedure.
.06 Taxpayers participating in EFTPS
must ensure that their funds are remitted
on a timely basis. See § 31.6302–1(h)(8)
for rules regarding when an FTD remitted
by EFT is deemed made. In the case of
FTPs remitted by EFT, see § 31.6302–1(h)(9) for rules regarding when the tax is
deemed paid.
.07 A taxpayer required by regulations
to make an FTD by EFT may not use
Form 8109, Federal Tax Deposit Coupon,
to make an FTD. If the taxpayer is unable
to make a timely FTD using an ACH debit
entry or an ACH credit entry, the taxpayer
may use ETA to make a timely FTD. If a
taxpayer is a voluntary participant in
EFTPS (i.e., a participant not required by
regulations to make an FTD by EFT) and
is unable, for any reason, to make an FTD
using EFTPS or chooses not to use EFTPS
to make an FTD, the taxpayer may make a
timely FTD by using Form 8109.
.08 If an FTD is late, the taxpayer is
subject to the penalty for failure to timely
deposit unless the taxpayer establishes
reasonable cause for that failure. See
Rev. Rul. 94–46, 1994–2 C.B. 278.
.09 EFTPS does not change the computation of tax liability, interest or penalties,
or FTD or FTP due dates.
SECTION 3. DEFINITIONS
.01The definitions provided in this section will be used for EFTPS.
.02 A U TO M ATED CLEARING
HOUSE (ACH). “Automated Clearing
House” is a funds transfer system, governed by the ACH Rules (the Operating
Rules and the Operating Guidelines published by National Automated Clearing
House Association (NACHA)), that provides for the interbank clearing of electronic entries for participating financial
institutions.
.03 ACH CREDIT ENTRY. An “ACH
credit entry” is a transaction in which a financial institution, upon instructions from
a taxpayer, originates an FTD or FTP to
the appropriate Department of the Tr e a-

July 28, 1997

sury (Treasury) account through the ACH
system. See section 8 of this revenue procedure for a description of an ACH credit
entry.
.04 ACH DEBIT E N T RY. An “ACH
debit entry” is a transaction in which one
of the Treasury Financial Agents, upon instructions from a taxpayer, instructs the
t a x p a y e r’s financial institution to withdraw funds from the taxpayer’s account
for an FTD or FTP and to route the FTD
or FTP to the appropriate Treasury account through the ACH system. See section 7 of this revenue procedure for a description of an ACH debit entry.
.05 CASH CONCENTRATION OR
DISBURSEMENT+ TAX PAY M E N T
A D D E N D ARECORD (CCD+ TXP). T h e
“CCD+ TXP” is NACHA’s tax payment
convention that will be used to facilitate
the transmission of the tax payment information associated with an ACH credit
entry to the appropriate Financial A g e n t .
This convention consists of the CCD+
electronic funds transfer transaction and an
addenda record for tax payments identified
by the three characters, “TXP”. The A C H
T X Paddenda record includes the Ta x p a y e r
Identification Number (TIN) (i.e., E mployer Identification Number (EIN), IRS
Individual Taxpayer Identification Number
(ITIN), or Social Security Number (SSN)),
the tax type code, the tax period end date,
and the FTD or FTPamount.
.06 ELECTRONIC FUNDS TRANSFER (EFT). An “EFT” is any transfer of
funds, other than a transaction originated
by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument,
computer, or magnetic tape so as to order,
instruct, or authorize a financial institution or other financial intermediary to
debit or credit an account.
.07 ELECTRONIC TAX A P P L I C ATION (ETA). “ETA” (also referred to as
“Same Day Payment”) is a subsystem of
EFTPS that receives, processes, and
transmits an FTD or an FTP and the related tax payment information for taxpayers that make same day payments through
Fedwire value transfers, Fedwire
non–value transactions, and Direct A ccess transactions. See section 9 of this
revenue procedure for information on the
ETAprocess. For more information about
E TA payments, taxpayers should contact
their financial institutions.

1997–30 I.R.B.

.08 EMPLOYER IDENTIFICAT I O N
NUMBER (EIN). An “EIN” is a unique
nine digit taxpayer identifying number issued by the Internal Revenue Service to
business taxpayers for the purpose of reporting tax related information.
.09 FEDERAL R E S E RVE BANK
(FRB). The “FRB” is the U.S. Governm e n t ’s fiscal agent. The FRB also
processes ACH transactions to a commercial financial institution account or to a
Treasury account.
.10 FRB HEAD OFFICE LOCAL
ZONE TIME. “FRB Head Office Local
Zone Time” is the local zone time of the
FRB head office through which a financial
institution, or its authorized correspondent
bank, sends a same–day payment.
. 11 FINANCIAL A G E N T. For purposes of EFTPS, a “Financial Agent” (also
referred to as a “Treasury Financial
Agent”) is a financial institution that is
designated as an agent of Tr e a s u r y. T h e
Secretary has designated NationsBank and
First National Bank of Chicago (First
Chicago) to be the Financial Agents for
EFTPS. A Financial Agent processes
EFTPS enrollments, receives FTD and
F T Pinformation, originates ACH debit entries upon instructions from taxpayers, and
provides customer service assistance for
EFTPS enrollment and payment information.
.12 IRS INDIVIDUAL TA X PAY E R
I D E N T I F I C ATION NUMBER (ITIN).
An “ITIN” is a taxpayer identifying number issued by the Service to an alien individual who is ineligible to receive an SSN
for the purpose of reporting tax related information.
.13
PRENOTIFICATION A C H
C R E D I T. “Prenotification ACH credit” is
a process whereby a taxpayer’s financial
institution originates a zero dollar entry to
the appropriate Treasury Routing Tr a n s i t
Number (RTN) to verify the Tr e a s u r y
RTN, the Tr e a s u r y ’s account number, and
the taxpayer’s TIN. See section 8.02 of
this revenue procedure.
.14 PRENOTIFICATION A C H
DEBIT. “Prenotification ACH debit” is a
process whereby the appropriate Financial Agent originates a zero dollar entry to
the taxpayer’s financial institution to verify the RTN of the taxpayer’s financial institution, the taxpayer’s account number,
and the account type. See section 4.03 of
this revenue procedure.

11

.15 TA X PAYER IDENTIFICAT I O N
NUMBER (TIN). A “TIN” is a taxpayer
identifying number assigned to a taxpayer for
the purpose of reporting tax related information. ATIN includes an EIN, ITIN, or SSN.
SECTION 4. ENROLLMENT
.01 An EFTPS applicant should submit
its completed Form 9779, EFTPS Business
Enrollment Form, or Form 9783, EFTPS
Individual Enrollment Form, to the EFTPS
Enrollment Processing Center at the address provided in the applicable form instructions at least ten weeks in advance of
the first FTD or FTP due date for which it
intends to use EFTPS. As part of completing the enrollment form, the taxpayer may
choose to use the ACH debit entry and/or
ACH credit entry payment option(s). See
section 7 of this revenue procedure for information on the ACH debit entry payment
option, and section 8 for information on
the ACH credit entry payment option.
.02 A taxpayer may request an enrollment form by calling a Financial Agent at
one of the numbers listed in section 12.01
of this revenue procedure or the IRS Distribution Center at (800) TA X – F O R M
((800) 829–3676). A taxpayer should request an enrollment form at least four
weeks in advance of the time the form
needs to be submitted.
.03 The Financial Agent will verify the
accuracy of the enrollment information
and enter the verified enrollment information in its enrollment record database. As
part of the verification process for those
taxpayers who choose the ACH debit
entry, the Financial Agent will originate a
prenotification ACH debit.
.04 When the enrollment process is
completed, the Financial Agent will notify
the taxpayer that it is enrolled in EFTPS by
sending the taxpayer a Form 9787, Business Confirmation/Update Form, or Form
9789, Individual Confirmation/Update
Form and an EFTPS Payment Instruction
Booklet that will contain information on
ACH credit and debit transactions, and information on ETA under the heading
“Same Day Payments.” APersonal Identification Number (PIN) will be mailed to
the taxpayer separately from the enrollment confirmation package.
.05 If a taxpayer attempts to make an
FTD or FTPthrough EFTPS before the taxpayer receives Form 9787 or Form 9789,
the FTD or FTP generally will be rejected

July 28, 1997

and the taxpayer may be subject to a
penalty for a late FTD or FTP. Further, a
taxpayer cannot make an FTD or FTPu s i n g
an ACH debit transaction without a PIN.
SECTION 5. ASSIGNMENTTO A
FINANCIALAGENT
Each Financial Agent has responsibility
for certain geographic locations as listed
below. A taxpayer’s assignment to a Financial Agent is based on the location of
the principal financial institution that will
be electronically transmitting FTDs
and/or FTPs for the taxpayer.
NationsBank
First Chicago
(800) 555-4477
(800) 945-8400
Alabama
Alaska
American Samoa
California (except
Los Angeles,
Arizona
Orange, San
Arkansas
Bernardino, RiverCalifornia (Los
side, San Diego, and
Angeles, Orange,
Imperial counties)
San Bernardino,
Colorado
Riverside, San
Connecticut
Diego, and Impe- Hawaii
rial counties only) Idaho
Commonwealth of Illinois
the Northern
Indiana
Mariana Islands
Iowa
Commonwealth of Kansas
Puerto Rico
Maine
Delaware
Massachusetts
District of Columbia Michigan
Florida
Minnesota
Georgia
Missouri
Guam
Montana
Kentucky
Nebraska
Louisiana
New Hampshire
Maryland
New Jersey
Mississippi
New Yo r k
Nevada
North Dakota
New Mexico
Oregon
North Carolina
Rhode Island
Ohio
South Dakota
Oklahoma
Utah
Pennsylvania
Vermont
South Carolina
Washington
Tennessee
Wisconsin
Texas
Wyoming
Vi rgin Islands
Foreign countries
Virginia
West Vi rg i n i a
SECTION 6. TIMELY INITIATION OF
FTD OR FTP
.01 A taxpayer must ensure that the
FTD or FTP is timely made. Publication

1997–30 I.R.B.

509, Tax Calendars, lists the due dates for
FTDs and FTPs.
.02 Ataxpayer choosing the ACH debit
entry payment option may access the
EFTPS Voice Response System 24 hours
a day, seven days a week, or use the PC
Tax Payment software application. Howe v e r, the taxpayer must initiate its A C H
debit entry payment before 8:00 p.m.
Eastern Time of the last business day
prior to the FTD or FTP due date.
.03 A taxpayer choosing the A C H
credit entry payment option must determine whether its financial institution offers the ACH credit entry payment option
and when the taxpayer must initiate an
ACH credit entry that will settle on or before the FTD or FTP due date.
SECTION 7. ACH DEBIT ENTRY
.01 To initiate a timely ACH debit
entry, a taxpayer must contact the Financial Agent by 8:00 p.m. Eastern time of
the last business day prior to the FTD or
FTP due date. A business taxpayer may
arrange an ACH debit entry up to 30 calendar days in advance of the due date. An
individual taxpayer may arrange an ACH
debit entry up to 105 calendar days in advance of the due date.
.02 In order to initiate an ACH debit
entry, a taxpayer must furnish the Financial Agent with the taxpayer’s TIN and
PIN. The Service does not have access to
the taxpayer’s PIN and, therefore, cannot
initiate an ACH debit entry from the taxpayer’s account.
.03 After a taxpayer initiates an ACH
debit entry, the Financial Agent will validate the payment information and issue an
acknowledgment number to the taxpayer.
The acknowledgment number verifies
when the necessary payment information
was received by a Financial Agent but
does not constitute proof of payment. See
section 10 of this revenue procedure regarding proof of payment.
.04 Pursuant to the taxpayer’s instructions, the Financial Agent, on the date
designated by the taxpayer, will instruct
the taxpayer’s financial institution to originate the transfer of funds from the taxp a y e r’s account to the appropriate Tr e asury account. The Financial Agent also
will transmit the related payment data,
supplied by the taxpayer, to the Service
for posting to the taxpayer’s account(s).

12

.05 The Service will deem an A C H
debit entry to have been made at the time
of the debit (i . e ., when the amount is
withdrawn from the taxpayer’s account
and not returned or reversed).
.06 When a timely ACH debit entry
cannot be made, a taxpayer may instruct
the Financial Agent to complete the transaction at the next opportunity to submit an
ACH debit entry. The taxpayer may also
use the ACH credit entry payment option
or ETA. See section 8 of this revenue
procedure regarding the use of an A C H
credit entry and section 9 regarding the
use of ETA. A taxpayer that is not required to use EFT for FTDs may use the
paper FTD coupon system. To avoid
penalties, the FTD or FTP must be received by an appropriate means on or before the FTD or FTP due date.
.07 The ACH Rules will govern A C H
debit entry returns and reversals.
SECTION 8. ACH CREDIT ENTRY
.01 If a taxpayer chooses the A C H
credit entry payment option to make an
FTD or FTP, the taxpayer may use any financial institution capable of originating
an ACH credit entry.
.02 For each TIN used by a taxpayer in
making an FTD or FTP by an ACH credit
entry, the taxpayer should request that its
financial institution originate a prenotification ACH credit. See section 3.13 of
this revenue procedure. The taxpayer’s
financial institution should not originate
an ACH credit entry until the financial institution has successfully completed the
prenotification process. A prenotification
ACH credit will verify the taxpayer information in the T X P addenda record,
thereby minimizing the possibility that an
ACH credit entry will be rejected.
.03 If the prenotification ACH credit is
rejected, the financial institution should
not originate an ACH credit entry for the
taxpayer until the financial institution has
successfully completed the prenotification process.
.04 To initiate a timely ACH credit
e n t r y, a taxpayer must take into account
its financial institution’s deadline for originating an ACH credit entry.
.05 If the taxpayer timely and accurately requests an ACH credit entry, the
taxpayer’s financial institution is responsible for the timely origination of the
ACH credit entry with the appropriate

July 28, 1997

Treasury account number and the correct
format.
.06 When a timely ACH credit entry
cannot be made, a taxpayer may instruct
the financial institution to complete the
transaction at the next opportunity to submit an ACH credit entry or use ETA. The
taxpayer may also initiate an ACH debit
entry if enrolled for that payment option.
See section 7 of this revenue procedure
regarding the use of an ACH debit entry
and section 9 regarding the use of ETA .
A taxpayer that is not required to use EFT
for FTDs may use the paper FTD coupon
system. To avoid penalties, the FTD or
FTP must be received by an appropriate
means on or before the FTD or FTP due
date.
.07 The Financial Agent will receive
and process the ACH credit entry information. The Financial Agent will compare the transaction’s remittance detail in
the CCD+ T X P addenda with the taxp a y e r’s enrollment record data. If they
match, the Financial Agent will send the
FTD or FTP information to the Service
for posting to the taxpayer’s account(s).
.08 If the Financial Agent cannot identify the taxpayer, the ACH credit entry
will be returned to the originating financial institution.
.09 Failure to provide correct, complete, and properly formatted information
may cause an ACH credit entry to be returned. In the event of a return, a taxpayer may instruct the financial institution to submit a corrected ACH credit
entry at the next opportunity or use ETA.
The taxpayer may also initiate an A C H
debit entry if enrolled for that payment
option. A taxpayer that is not required to
use EFT may also use the paper FTD
coupon system.
.10 An ACH credit entry that is not returned or reversed will be deemed made
at the time that the funds are paid into the
appropriate Treasury account.
. 11 The ACH Rules will govern A C H
credit entry returns and reversals.

.02 After the EFTPS enrollment
process is completed, the Financial Agent
will send the taxpayer an EFTPS Payment
Instruction Booklet that includes additional ETA information under the heading
“Same Day Payments.”
.03 The Service generally will deem an
ETA payment to have been made on the
date the payment is received by the FRB.
Taxpayers should contact their financial
institutions to determine their deadline for
initiating ETA payments for a particular
day. ETA payments received by the FRB
after the deadline set forth in the Treasury
Financial Manual, Volume IV (IV TFM),
will be recorded as received the following
business day. Currently, the deadline in
IV TFM is 2:00 p.m. FRB Head Off i c e
Local Zone Time. If a payment is not accepted, the payment must be re-originated
using ETA or any other permissible payment method.

SECTION 9. ELECTRONIC TAX
APPLICATION (ETA)

SECTION 11. REFUNDS

.01 Taxpayers may use ETA(as defined
in section 3.07) to make a timely FTD or
F T P. Taxpayers should contact their financial institution to determine if the financial institution is capable of making an
ETApayment.

1997–30 I.R.B.

SECTION 10. PROOF OF PAYMENT
.01 For an ACH debit or credit entry, a
statement prepared by the taxpayer’s financial institution showing a transfer (that
is, a decrease to the taxpayer’s account
balance) will be accepted as proof of payment if the statement:
(1) shows the amount and the date of
the transfer; and
(2) identifies the U.S. Government as
the payee.
.02 For an ETApayment, taxpayers may
request that their financial institution obtain
a statement from the FRB that executed the
t r a n s f e r. This statement will be accepted as
proof of payment if the statement:
(1) shows the amount and the date of
the transfer; and
(2) identifies the U.S. Government as
the payee.
.03 For purposes of this section, statements prepared by a financial institution
include statements prepared by a third
party that is contractually obligated to prepare statements for the financial institution.

No refunds of FTDs or FTPs will be
made through EFTPS. However, a refund
request may be made using existing tax
refund procedures. If a taxpayer’s error
results in a significant hardship, the taxpayer may contact the Service at (800)
829-1040 for assistance.

13

SECTION 12. ENROLLMENT FORMS
AND ADDITIONAL INFORMATION
ABOUT EFTPS
.01 Taxpayers may obtain enrollment
forms and additional information by calling EFTPS Customer Service at (800)
945-8400 (First Chicago) or (800) 5554477 (NationsBank). Taxpayers may also
request enrollment forms by calling the
IRS Distribution Center at (800) TA X FORM ((800) 829-3676).
.02 Financial institutions that would
like additional information about EFTPS
may write to:
Financial Services Division
Financial Management Service
401 14th Street, SW, 3rd Floor
Washington, DC 20227
or may call (202) 874–6580 (not a
toll–free number).
SECTION 13. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 94–48 is obsoleted for FTDs
or FTPs made after July 15, 1997.
SECTION 14. EFFECTIVE DATE
This revenue procedure is effective on
July 11,1997.
SECTION 15. PAPERWORK
REDUCTION ACT
The collections of information contained in this revenue procedure have been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number
1545–1546.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the collection of information displays a valid
control number.
The collections of information in this
revenue procedure are in section 10 of this
revenue procedure. This information is required to implement EFTPS, and verify
that taxpayers have met their obligations to
pay their taxes and make FTDs by EFT.
This information will be used to credit taxp a y e r s ’accounts for FTDs and FTPs made
through EFTPS. The collections of information in section 10 of this revenue procedure are mandatory. The likely respondents are individuals, state or local
governments, farms, business or other

July 28, 1997

for–profit institutions, federal agencies or
employees, nonprofit institutions, and
small businesses or organizations.
In 1999, the estimated total annual reporting and recordkeeping burden will be
690,000 hours.
The estimated annual burden per respondent and recordkeeper will vary from
15 minutes to 45 minutes, depending on
individual circumstances, with an estimated average of 30 minutes. The estimated number of respondents and recordkeepers is 1,380,000.
The estimated annual frequency of responses is on occasion.
Books or records relating to a collection of information must be retained as
long as their contents may become material in the administration of any internal
revenue law. Generally tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.

NOTE:
Following is a list of related instructions
and forms for filing Information Returns
Magnetically/Electronically:
1997 Instructions for Forms 1099,
1098, 5498, and W–2G
Form 4419 — Application for Filing
Information Returns Magnetically/
Electronically
Form 4804 — Transmittal of Information Returns Reported Magnetically/Electronically
Form 4802 — Transmittal of Information Returns Reported Magnetically/Electronically (Continuation)
Form 8508 — Request for Wa i v e r
From Filing Information Returns on
Magnetic Media (Forms W – 2 ,
W–2G, 1042–S, 1099 Series, 5498,
and 8027)
Form 8809 - Request for Extension
of Time To File Information Returns
(For Forms W–2, W–2G, 1042–S,
1098, 1099, and 5498)
Notice 210 — Preparation Instructions for Media Label

Rev. Proc. 97–34
Use this revenue procedure to prepare
Tax Year 1 9 9 7 information returns for
submission to Internal Revenue Service
(IRS) using any of the following:

1997–30 I.R.B.

— Magnetic Tape
— Tape Cartridge
— 8mm, 4mm, and Quarter Inch Cartridges
— 5 1/4-inch Diskette
— 3 1/2-inch Diskette
— Electronic Filing
— (Bisynchronous)
— (Asynchronous)

Caution to filers:
Format changes to accommodate Ye a r
2000 will occur for TY98 in calendar year
1999.
Treasury has mandated that all electronic year dates exchanged with non-IRS
o rganizations, both government and private, both input and output, shall adhere
to the following:
—All Gregorian date formats will be
in the format ‘YYYYMMDD’.
— All other year date formats (e.g.,
Julian, Tax Period, Cycle Dates)
will expand representations from
2-digit year to 4-digit year: ‘YYYY’.
In compliance with Year 2000 changes,
the current bisynchronous electronic filing communications package will be
changed in the future.
Please read this publication carefully.
Persons or businesses required to file information returns may be subject to
penalties for failure to file or include correct information if they do not follow the
instructions in this revenue procedure.

Table of Contents
Part A. General
Section 1. Purpose
Section 2. Nature of Changes - Current
Year (Tax Year 1997)
Section 3. Where to File and 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 Information Re-

14

Section 10.
Section 11.
Section 12.

Section 13.
Section 14.
Section 15.
Section 16.
Section 17.
Section 18.
Section 19.

turns Magnetically/Electronically and Retention Requirements
Due Dates
Extensions of Time
Processing of Information
Returns Ma g n e t i c a l l y /
Electronically
Corrected Returns
Taxpayer Identification
Number (TIN)
Effect on Paper Returns and
Statements to Recipients
Combined Federal/State Filing Program
Definition of Terms
State Abbreviations
Major Problems Encountered

Part B. Magnetic Media
Specifications
Section 1. General
Section 2. Tape Specifications
Section 3. Tape Cartridge Specifications
Section 4. 8mm, 4mm, and Quarter
Inch Cartridge Specifications
Section 5. 5 1/4-inch and 3 1/2-inch
Diskette Specifications
Section 6. P a y e r / Transmitter “A”
Record — General Field
Descriptions
Section 7. P a y e r / Transmitter “A”
Record — Record Layout
Section 8. Payee “B” Record — General
Field Descriptions and
Record Layouts
Section 9. End of Payer “C” Record —
General Field Descriptions
and Record Layout
Section 10. State Totals “K” Record —
General Field Descriptions
and Record Layout
Section 11. End of Transmission “F”
Record — General Field
Descriptions and Record
Layout

Part C. Bisynchronous (Mainframe)
Electronic Filing
Specifications
Section 1. General
Section 2. Electronic Filing Approval
Procedure

July 28, 1997

Section 3. Test Files
Section 4. Electronic Submissions
Section 5. Transmittal Requirements
Section 6. IBM 3780 Bisynchronous
Communication Specifications
Section 7. Bisynchronous Electronic
Filing Record Specifications

Part D. Asynchronous (IRP–BBS)
Electronic Filing
Specifications
Section 1. General
Section 2. Electronic Filing Approval
Procedure
Section 3. Test Files
Section 4. Electronic Submissions
Section 5. Transmittal Requirements
Section 6. Information Reporting Program Bulletin Board System
(IRP-BBS) Specifications
Section 7. IRP-BBS First Logon Procedures

Part E. Magnetic/Electronic
Specification for
Extensions of Time
Section 1. General
Section 2. Magnetic Tape, IBM 3480/
3490, AS400 Compatible
Tape Cartridge, AS400 8mm
Tape Cartridge, 5 1/4- and
3 1/2 -inch Diskette, and
Electronic Specifications
Section 3. Record Layout

Part F. Miscellaneous Information
Section 1. Addresses for Martinsburg
Computing Center
Section 2. Telephone Numbers for
Contacting IRS/MCC

Part A. General
Revenue procedures are generally revised
annually to reflect legislative and form
changes. Comments concerning this revenue procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Martinsburg Computing Center
Attn: IRB, Information Support Section
P. O. Box 1359, MS-360
Martinsburg, WV 25402

1997–30 I.R.B.

(p) Form 5498–MSA, Medical Savings Account Information.
.01 The purpose of this revenue proce(q) Form W–2G, Certain Gambling
dure is to provide the specifications for filWinnings.
ing Forms 1098, 1099 series, 5498,
.02 Specifications for filing Forms W5498–MSA, and W–2G electronically or
2
on
magnetic media are available from
on magnetic media, which includes 1/2the
Social
Security Administration (SSA)
inch magnetic tape; IBM 3480, 3490 or
o
n
l
y.
Filers
can call 1-800-SSA-1213 to
AS400 compatible tape cartridges (includobtain
the
phone
number of the SSA
ing 8mm); or 5 1/4- and 3 1/2-inch
Magnetic
Media
Coordinator
for their
diskettes with IRS. IRS/MCC has disarea.
continued processing 8-inch diskettes.
.03 The Internal Revenue Service,
This revenue procedure must be used for
M
a r t i n s b u rg Computing Center
the preparation of Tax Year 1997 informa(IRS/MCC)
has the responsibility for protion returns and information returns for
cessing
Forms
1098, 1099 series, 5498,
years prior to 1997 that are required to be
5498–MSA,
and
W–2G filed magnetically
filed. This revenue procedure must be
or
electronically.
IRS/MCC does n o t
used to prepare current and prior year inprocess
Forms
W–2.
Paper and/or magformation returns filed between January 1,
netic
media
for
Forms
W–2 must be sent
1998, and December 31, 1998. Specificato
SSA.
IRS/MCC
does, however,
tions for filing the following forms are
process
waiver
requests
(Form 8508), excontained in this revenue procedure.
tension
of
time
to
file
requests (Form
(a) Form 1098, Mortgage Interest
8809)
for
Forms
W–2
and
requests for exStatement.
tension
of
time
to
file
the employee
(b) Form 1099–A, Acquisition or
copies
of
W–2G.
Abandonment of Secured Prop.04 Generally, the box numbers on the
erty.
paper
forms correspond with the amount
(c) Form 1099–B, Proceeds From
codes
used to file magnetically/electroniBroker and Barter Exchange
cally;
however,
if discrepancies occur, the
Transactions.
instructions
in
this revenue procedure
(d) Form 1099–C, Cancellation of
govern.
Debt.
.05 This revenue procedure also pro(e) Form 1099–DIV, Dividends and
vides
the requirements and specifications
Distributions.
for
magnetic
media or electronic filing
(f) Form 1099–G, Certain Governunder
the
Combined
Federal/State Filing
ment Payments.
Program.
(g) Form 1099–INT, Interest Income.
.06 The following revenue procedures
(h) Form 1099–LTC, Long-Term
C a re and Accelerated Death and publications provide more detailed filing procedures for certain other informaBenefits.
(i) Form 1099–MISC, Miscella- tion returns.
(a) 1997 “Instructions for Forms
neous Income.
1099, 1098, 5498, and W – 2 G ”
(j) Form 1099–MSA, Distributions
provides specific instructions on
F rom Medical Savings A c completing and submitting inforcounts.
mation
returns to IRS.
(k) Form 1099–OID, Original Issue
(b) R e v. Proc. 84–33, 1984–1 C.B.
Discount.
502, regarding the optional
(l) Form 1099–PATR, Taxable Dismethod for agents to report and
tributions Received From Coopdeposit
backup withholding.
eratives.
(
c
)
Publication
1179, Rules and
(m) Form 1099–R, Distributions
Specifications
for Private PrintFrom Pensions, Annuities, Reing
of
Substitute
Forms 1096,
tirement or Profit-Sharing Plans,
1098, 1099 Series, 5498, and
IRAs, Insurance Contracts, etc.
W–2G.
(n) Form 1099–S, Proceeds From
Real Estate Transactions.
(d) Publication 1239, Specifications
for Filing Form 8027, Em(o) Form 5498, IRA, SEP, or
p l o y e r’s Annual Information ReSIMPLE Retirement Plan Information.
turn of Tip Income and A l l ocated

Sec. 1. Purpose

15

July 28, 1997

Tips, on Magnetic Tape and 5
1/4- or 3 1/2-inch Diskettes.
(e) Publication 1187, Specifications
for Filing Form 1042–S, Foreign Person’s U.S. Source Income Subject to Wi t h h o l d i n g ,
Electronically or on Magnetic
Tape, and 5 1/4- or 3 1/2-inch
Diskettes.
(f) Publication 1245, Specifications
for Filing Form W-4, Emp l o y e e ’s Withholding A l l o w a n c e
Certificate, on Magnetic Ta p e ,
and 5 1/4- or 3 1/2-inch Diskette.
(g) R e v. Proc. 97–25, specifications
set forth for the magnetic or electronic filing of 1997 Form 8851,
Summary of Medical Savings
Accounts, Magnetically/Electronically.
.07 This revenue procedure supersedes
Rev. Proc. 96–36 published as Publication
1220 (Rev. 7–96), Specifications for Filing Forms 1098, 1099 series, 5498, and
W–2G Magnetically or Electronically.
.08 Refer to Part A, Sec. 17, for definitions of terms used in this publication.

Sec. 2. Nature of Changes—
Current Year (Tax Year 1997)
.01 In this publication, all pertinent
changes for Tax Year 1997 have been emphasized by using italics. This has been
done to assist filers in identifying new information. Filers are still advised to read
the publication in its entirety.
.02 Programming Changes

1 0 9 9 – LTC (Type of Return Code T ) ,
Amount Codes 1 (Gross long-term care
benefits paid) and 2 (Accelerated death
benefits paid) have been added to Field
Positions 23–31 of the Payer “A” Record.
(5) In Part B, Sec. 6, for the new Form
1 0 9 9 – M S A ( Type of Return Code M),
Amount Codes 1 (Gross distribution) and
2 (Earnings on excess contributions) have
been added to Field Positions 23–31 of
the Payer “A” Record.
(6) In Part B, Sec. 6, for Form 5498, Tw o
Amount Codes have been added, A m o u n t
Code 6 (SEP contributions) and A m o u n t
Code 7 (SIMPLE contributions) in Field
Positions 23–31 of the Payer “A” Record.
(7) In Part B, Sec. 6, for the new Form
5 4 9 8 – M S A ( Type of Return Code K),
Amount Codes 1 (Employee MSA contributions made in 1997 and 1998 for 1997),
2 (Total MSA contributions made in
1997), and 3 (Total MSA contributions
made in 1998 for 1997), 4 (MSA rollover
contributions not included in A m o u n t
Code 1, 2, or 3) and 5 (Fair market value
of account) have been added to Field Positions 23–31 of the Payer “A” Record.
(8) In Part B, Sec. 6, the Payer City,
State, and Zip Code field in Positions
171–210 of the Payer “A” Record have
been broken down into three separate
fields.
(9) In Part B, Sec. 6, for the convenience of the filer, an optional field has
been added for the Payer’s Phone Number
and Extension in Field Positions 371–385
of the Payer “A” Record.
b. Payee “B” Record Changes:

a. Payer/Transmitter “A” Record
Changes:
(1) For all forms, Payment Year, Field
Positions 2-3 must be incremented by one
(from 96 to 97) unless reporting prior year
data.
(2) In Part B, Sec. 6, the Type of Return
Codes, Field Position 22 of the Payer “A”
Record, have been expanded to include
new forms 1099–LTC, 1099–MSA, and
5498–MSA. The Type of Return Codes
are T for Form 1099–LTC, M for
1099–MSA, and K for Form 5498–MSA.
(3) In Part B, Sec. 6, for Form 1099–C,
Amount Code 4 (Penalties, fines, or administrative costs included in A m o u n t
Code 2) has been deleted from Field Positions 23–31 of the Payer “A” Record.
(4) In Part B, Sec. 6, for the new Form

1997–30 I.R.B.

(1) For all forms, Payment Year, Field
Positions 2–3 must be incremented by one
(from 96 to 97) unless reporting prior year
data.
(2) In Part B, Sec. 8, for the Form
1099–MSA, Distribution Codes 1 (Normal distribution), 2 (Excess contributions), 3 (Disability), 4 (Death), and 5
(Prohibited transaction) have been added
to Field Positions 4 and 5 of the Payee
“B” Record.
(3) In Part B, Sec. 8, for the Form
1099–R, Distribution Codes L ( L o a n s
treated as deemed distributions under section 72(p)) and S (Early distribution from
a SIMPLE IRA in first 2 years, no known
exception) have been added to Field Positions 4 and 5 of the Payee “B” Record.
(4) In Part B, Sec. 8, for the Form
1099–R, the IRA/SEP Indicator in Field

16

Position 44 of the Payee “B” Record has
been expanded from IRA/SEP t o
IRA/SEP/SIMPLE. This field will be
used exclusively for the Form 1099–R.
(5) In Part B, Sec. 8, for the Form 5498,
IRA, SEP, and SIMPLE Indicators have
been added in Field Positions 141–143.
(6) In Part B, Sec. 8(1), Form 1099MSA and Form 5498–MSA have been
added to the standard Record Layout Positions 322–420.
(7) In Part B, Sec. 8(5), the Record Layout Positions 322–420 of the Payee “B”
Record are given for Form 1099–LTC to
include the following fields:
(a) A Type of Payment Indicator has
been added to Field Position 322
of the Payee “B” Record with indicators of 1 (Per diem) and 2
(Reimbursed amount).
(b) The Social Security Number of
the Insured has been added to
Field Positions 323–331 of the
Payee “B” Record.
(c) The Name of the Insured has
been added to Field Positions
332–371 of the Payee “B”
Record.
(d) The Address of the Insured has
been added to Field Positions
3 7 2 – 4 11 of the Payee “B”
Record.
(e) A Status of Illness Indicator has
been added for Field Position 412
of the Payee “B” Record with indicators of 1 (Chronically ill) and
2 (Terminally ill).
(f) A Date of Doctor’s Certification
has been added in Field Positions
413–418 of the Payee “B”
Record.
.03 Other Programming Changes
(a) In Part E, Sec. 3, in the record layout for the Magnetic/Electronic Specifications for Extensions of Time, the Document Indicators in Field Position 175
have been expanded to include Forms
1099–LTC, 1099–MSA, and 5498–MSA.
.04 Editorial Changes—General
(a) A note has been added advising filers that date fields will be expanded in Ta x
Year 1998 in preparation for Year 2000.
(b) The title of the Form 5498 has been
changed from Individual Retirement
Arrangement Information to IRA, SEP, or
SIMPLE Retirement Plan Information.
The new title appears in the list of forms

July 28, 1997

in Part A, Sec. 1.01 and throughout the
publication.
(c) Three new forms have been added
for TY97 processing: Form 1099–LT C ,
L o n g - Term Care and Accelerated Death
Benefits, Form 1099–MSA, Distributions
From Medical Savings Accounts, and
Form 5498–MSA, Medical Savings A ccount Information. The new forms are included in the list of forms in Part A, Sec.
1.1 and throughout the publication. Filers
are advised throughout the publication that
the new forms cannot be filed under the
Combined Federal/State Filing Program.
(d) AZIP code change has occurred for
the Martinsburg Computing Center. For
all Martinsburg Computing Center addresses containing a post office box, the
ZIPcode has been changed from 25401 to
25402. The changes will appear in Part
A, Sec. 3.01, Part C, Sec. 2.02(c) and (e),
Part D, Sec. 5.04, and Part F, Sec. 1. The
ZIP code for the street address (Route 9
and Needy Road) of the Martinsburg
Computing Center remains 25401.
(e) In Part A, Sec. 4.01, under Filing
Requirements, filers are encouraged to file
magnetically/electronically even though
the number of returns being filed is less
than the filing requirement of 250 or more.
(f) In Part A, Sec. 6.02, filers are advised
that the most current version of the Ve n d o r
List (Pub. 1582) will not be printed. It will
be available for reading or downloading
from the Information Reporting ProgramBulletin Board System (IRP-BBS).
(g) In Part A, Sec. 7.10, information
has been added to advise filers that multiple Transmitter Control Codes (TCCs)
will only be issued to a payer with multiple TINs, one TCC per TIN.
(h) In Part A, Sec. 9.10, filers are advised to create a self-adhesive label with
the required information to attach to each
tape, cartridge, or diskette.
(i) In Part A, Sec. 9.11, filers are advised to attach a label that states “IRB,
Box __of__” to the outside of the shipping container.
(j) In Part A, Sec. 10, filers are advised
that, since the due dates for Tax Year 1997
fall on weekends, information returns, recipient copies, and participant copies will
be treated as timely if filed or furnished
on the next business day after the particular due date.
(k) In Part A, Sec. 10.04, filers are advised that the timely mailing rule now applies to designated private delivery services.

1997–30 I.R.B.

(l) In Part A, Sec. 16, in Table 2. Dollar
Criteria for State Reporting, the dollar criteria for the state of Idaho has been corrected.
(m) In part A, Sec. 17, Definition of
Terms, ITIN (Individual Taxpayer Identification Number) has been added. ITIN
has also been added to Part B, Sec. 6,
Type of TIN, Field Position 14 of the
Payee “B” Record.
(n) In Part B, Sec. 6, for the Form
1099-PATR, the titles of Amount Codes 7
and 8 in Field Positions 23–31 of the
Payer “A” Record have been changed.
The title of Amount Code 7 has been
changed from Energy investment credit to
Investment credit. The title of A m o u n t
Code 8 has been changed from Jobs credit
to Work opportunity credit.
(o) In Part B, Sec. 6, for Form 5498,
Amount Code 2 has been changed from
Rollover IRA contributions to IRA, SEP,
or SIMPLE rollover contributions in Field
Positions 23-31 of the Payer “A” Record.
(p) In Part B, Sec. 8, for Document Specific/Distribution Codes, Field Positions
4–5 of the Payee “B” Record, information
has been added to clarify that this field is
only required for 1099–MISC if Crop Insurance Proceeds are being reported.
.05 Editorial Changes—Magnetic
Media Specifications
(a) In Part B, Sec. 4.01(a)(7), filers are
advised to place the end of transmission
“F” Record at the end of the last cartridge
only, for files with multiple cartridges.
(b) In Part B, Sec. 4.02(d), filers are advised that for 8mm tape cartridge, the
S AVE OBJECT COMMAND is not acceptable.
(c) In Part B, Sec. 4.07, filers are now
advised that 4mm cassettes are an acceptable form of media. Specifications are
provided.
(d) In Part B, Sec. 4.08, filers are now
advised that Quarter Inch Cartridges
(QIC) are an acceptable form of media.
Specifications are provided.
(e) In Part B, Sec. 05.01(b), for 5 1/4inch diskettes created on a System 36 or
AS400, specific save commands are provided as well as EBCDIC specifications.
(f) In Part B, Sec. 6, for Form 1099–G,
Field Positions 23–31 of the Payer “A”
Record, Amount Code 4, for Federal income tax withheld, has been expanded to
include requested withholding on unemployment compensation, Commodity

17

Credit Corporation loans, or certain crop
disaster payments.

Sec. 3. Where to File and How
to Contact the IRS, Martinsburg
Computing Center
.01 All information returns filed magnetically or electronically are processed at
IRS/MCC. Files containing information
returns, requests for IRS magnetic media
and electronic filing information, undue
hardship waivers, and requests for extension of time to file returns or to furnish
the statements to recipients are to be sent
to the following addresses:

✉

If by Postal Service:

IRS-Martinsburg Computing Center
Information Reporting Program
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359
or if by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
☞ Note: The ZIPcode has changed
from 25401-1359 to 25402-1359 for the
IRS P.O. Box addresses for Martinsburg, WV.
.02 Send a magnetically filed extension
of time request to one of the following addresses:

✉

If by Postal Service:

I R S - M a r t i n s b u rg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879, MS-360
Kearneysville, W V 25430
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.03 Telephone inquiries for the Information Reporting Call Site may be made
between 8:30 a.m. and 4:30 p.m. Eastern
time. The telephone numbers for mag-

July 28, 1997

netic media inquiries or electronic submissions are:

☎

304-263-8700 – Call Site – Part A, Sec. 3.9
304-264-7070 – IRP–BBS (Information
R e p o rting Program Bulletin Board System) P a rt D
304-264-7080 – 4.8 Modems – Part C
304-264-7040 – 9.6 Modems – Part C
304-264-7045 – 14.4 Modems – Part C
304-267-3367 – TDD (Te l e c o m m u n i c ation Device forthe Deaf)
304-264-5602 – Fax Machine
( These are not toll-free telephone numbers.)
TO OBTAIN FORMS, CALL:
1-800-TAX-FORM (1-800-829-3676)
.04 The 1997 “Instructions for Forms
1099, 1098, 5498, and W–2G” have been
included in the Publication 1220 for transmitter convenience. The Form 1096 is
used only to transmit Copy A of paper
Forms 1099, 1098, 5498, and W–2G. If
filing paper returns, follow the mailing instructions on the Form 1096 and submit
the paper returns to the appropriate IRS
Service Center.
.05 Requests for paper Forms 1096,
1098, 1099, and W–2G, and publications
related to magnetic media/electronic filing should be requested by calling the IRS
toll-free number 1 - 8 0 0 - TA X - F O R M
(1-800-829-3676).
.06 Questions pertaining to magnetic
media filing of Forms W–2 must be directed to the Social Security Administration (SSA). Filers can call 1-800-SSA1213 to obtain the phone number of the
S S A Magnetic Media Coordinator for
their area.
.07 Payers should not contact IRS/ MCC
if they have received a penalty notice and
need additional information, or are requesting an abatement of the penalty. A penalty
notice contains an IRS representative’s name
and/or phone number for contact purposes;
o r, the payer may be instructed to respond in
writing to the address provided. IRS/MCC
does not issue penalty notices and does not
have the authority to abate penalties. For
penalty information, refer to the Penalty
Section of the 1997 “Instructions for Forms
1099, 1098, 5498, and W – 2 G . ”
.08 A taxpayer or authorized representative may request a copy of a tax return,

1997–30 I.R.B.

including Form W–2 filed with a return,
by submitting Form 4506, Request for
Copy or Transcript of Tax Form, to IRS.
This form may be obtained by calling
1-800-TAX-FORM (1-800-829-3676).
.09 The IRS Centralized Call Site answers both magnetic media and tax law
questions relating to the filing of information returns (Forms 1096, 1098, 1099,
5498, 8027, W–2G, W–3, 1042S, and W4 ’s). The IRS/MCC Call Site answers tax
law and paper filing related questions about
W–2s as well as handling inquiries dealing
with backup withholding due to missing
and incorrect taxpayer identification numbers. The Call Site is located at IRS/MCC
and operates in conjunction with the Information Reporting Program. The Call Site
provides service to the payer community
(financial institutions, employers, and other
transmitters of information returns). Recipients of information returns (payees) should
continue to contact 1-800-829-1040 or
other numbers specified in the tax return instructions with any questions on how to report information on their tax returns.
The Call Site accepts calls from all
areas of the country. The number to call is
304-263-8700 or Telecommunications Device for the Deaf (TDD) 304-267-3367.
These are toll calls. Hours of operation
for the Call Site are Monday through Frid a y, 8:30 a.m. to 4:30 p.m. Eastern Ti m e .
The Call Site is in operation throughout
the year to handle the questions of payers,
transmitters, and employers. Due to the
high demand for assistance at the end of
January and February, it is advisable to
call as soon as possible to avoid these
peak filing seasons.

Sec. 4. Filing Requirements
.01 Under section 6011(e)(2)(A) of the
Internal Revenue Code, any person, including a corporation, partnership, individual, estate, and trust, who is required to file
250 or more information returns must file
such returns magnetically/electronically.
The 250* or m o re re q u i rement applies
separately for each type of return and
also to each type of corrected re t u r n .

.02 All filing requirements that follow
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 with several branches or locations
uses the same EIN, the corporation must
aggregate the total volume of returns to be
filed for that EIN and apply the filing requirements to each type of return accordi n g l y.
.03 Payers who are required to submit
their information returns on magnetic
media may choose to submit their documents by electronic filing. Payers who
submit their information returns electronically are considered to have satisfied the
magnetic media filing requirements.
.04 IRS/MCC has two methods by
which payers may submit their files elect r o n i c a l l y. Bisynchronous (mainframe)
electronic filing, which can be found in
Part C of this publication, or A s y n c h r onous (Information Reporting ProgramBulletin Board System), which is in Part
D. An overview of some features provided on the IRP-BBS are as follows:
• Electronic filing of information returns
to the IRS using dial-up modems
• Return notification of the acceptability
of the data transmitted within 24 to 48
hours
• Electronic communication with IRS and
SSAbulletin board systems
• Access to information reporting publications
• Access to shareware
• Access to forms relating to the Information Reporting Program
• News about the latest changes and updates that affect the Information Reporting Program at IRS
• Answers to messages and questions left
on the bulletin board
• Available for public use and can be
reached by dialing 304-264-7070

• IRP-BBS is accessible 24 hours a day, 7
days a week. Routine maintenance is
performed
daily, at approximately 7:00
*Even though as many as 249 in a.m.
Eastern
Time.
formation returns may be submitted
on paper to the Internal Revenue • Questions, comments, or suggestions
can be directed to the Systems Operator
Service, IRS encourages filers to
transmit information returns mag - (SYSOP) through IRP-BBS.
netically or electronically.
.05 The following requirements apply

18

July 28, 1997

separately to both originals and corrections filed magnetically/electronically:
1098
1099–A
1099–B
1099–C
1099–DIV
1099–G
1099–INT
1099–LTC
1099–MISC
1099–MSA
1099–OID
1099–PATR
1099–R
1099–S
5498
5498–MSA
W–2G

250 o rm o re of any of these
forms require magnetic
media or electronic filing
with IRS. These are stand
alone documents and are not
to be aggregated for purposes
of determining the 250
threshold. For example, if
you must file 100 Forms
1099–B and 300 Forms
1 0 9 9 – I N T, Forms 1099–B
need not be filed magnetically or electronically since
they do not meet the threshold of 250. However,
Forms 1099–INTmust be
filed magnetically or
electronically since they
meet the threshold of 250.

.06 The above requirements do not
apply if the payer establishes hardship
(see Part A, Sec. 5).

Sec. 5. Form 8508, Request
for Waiver from Filing
Information Returns on
Magnetic Media
.01 If a payer is required to file on
magnetic media but fails to do so (or fails
to file electronically, in lieu of magnetic
media filing) and does not have an approved waiver on record, the payer will
be subject to a penalty of $50 per return in
excess of 250. (For penalty information,
refer to the Penalty section of the 1997
“Instructions for Forms 1099, 1098, 5498,
and W–2G.”)
.02 If payers are required to file original or corrected returns on magnetic
media, but such filing would create a
hardship, they may request a waiver from
these filing requirements by submitting
Form 8508, Request for Waiver From Filing Information Returns on Magnetic
Media, to IRS/MCC.
.03 Even though a payer may submit as
many as 249 corrections on paper, IRS
encourages magnetically or electronically
submitted corrections. Once the 250
threshold has been met, filers are required
to submit any returns of 250 or more magnetically or electronically. However, if a
waiver for original documents is approved, any corrections for the same type

1997–30 I.R.B.

of returns will be covered under this
waiver.
.04 Generally, only the payer may sign
the Form 8508. Atransmitter may sign if
given power of attorney; however, a letter
signed by the payer stating this fact must
be attached to the Form 8508.
.05 Atransmitter must submit a separate Form 8508 for each payer. Do
not submit a list of payers.
.06 All information requested on the
Form 8508 must be provided to IRS for
the request to be processed.
.07 The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Payers
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.
.08 Form 8508 may be photocopied or
computer-generated as long as it contains
all the information requested on the original form.
.09 Filers are encouraged to submit
Form 8508 to IRS/MCC at least 45 days
before the due date of the returns.
.10 File Form 8508 for Forms W–2
with IRS/MCC, not SSA.
. 11 Waivers are evaluated on a caseby-case basis and are approved or denied
based on criteria set forth under section
6 0 11(e) of the Internal Revenue Code.
The transmitter must allow a minimum of
30 days for IRS/MCC to respond to a
waiver request.
.12 If a waiver request is approved, the
transmitter should keep the approval letter
on file. The transmitter should not
send a copy of the approved waiver to
the service center w h e re the paper returns are filed.
.13 An approved waiver from filing
information returns on magnetic media
does not provide exemption from all filing. The payer must timely file information returns on acceptable paper forms
with the appropriate service center.
.14 Desert Storm/Operation Joint
Guard (OJG) [See Note] (Bosnia Region) Contributions — If a payer is required to file a Form 5498 magneti c a l l y / e l e c t r o n i c a l l y, the payer may
request an automatic waiver to file
Forms 5498 on paper for participants of
Desert Storm or Operation Joint G u a rd.
The payer should clearly mark Desert
Storm or Operation Joint G u a rd on the
waiver request form.

19

☞ Note: Military personnel under Operation Joint Guard (OJG) will be
treated the same as military personnel
under Operation Joint Endeavor (OJE)
for purposes of Publication L. 104–117
and Rev. Proc. 96–34.

Sec. 6. Vendor List
.01 IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. The Vendor List (Pub. 1582)
contains the names of service bureaus that
will produce files on the prescribed types
of magnetic media or via electronic filing.
It also contains the names of vendors who
provide software packages for payers who
wish to produce magnetic media or electronic files on their own computer systems. This list is compiled as a courtesy
and in no way implies IRS/MCC approval
or endorsement.
☞ Note: If filers meet the filing req u i rements and engage a service bureau to prepare media on their behalf,
the filers should be careful not to rep o rt duplicate data, which may cause
penalty notices to be generated.
.02 The Vendor List may be updated in
print every other year. The most recently
printed copy will be available by contact ing IRS/MCC at (304) 263-8700 or by
way of a letter (see Part A, Sec. 3.) The
most current Vendor List is available for
downloading from the Information Re p o rting Program-Bulletin Board System
(refer to Part D).
.03 A v e n d o r, who offers a software
package, has the ability to produce magnetic media for customers, or has the capability to electronically file information
returns, and would like to be included on
the list, must submit a written request to
IRS/MCC. The request should be submitted by August 15 and must include:
(a) Company name
(b) Address (include city, state, and
ZIPcode)
(c) Telephone number (include area
code)
(d) Contact person
(e) Type(s) of service provided (e.g.,
service bureau and/or software)
(f) Type(s) of media offered (e . g . ,
magnetic tape or tape cartridge, 5
1/4- or 3 1/2-inch diskettes, or
electronic filing)
(g) Type of return

July 28, 1997

.04 The vendor list is updated annually. Therefore, any changes to information already on the vendor list must also be received
by IRS/MCC no later than August 15 to be included on the most current vendor list.

Sec. 7. Form 4419, Application for Filing Information Returns Magnetically/Electronically
.01 Transmitters are required to submit Form 4419, Application for Filing Information Returns Magnetically/Electronically, to request authorization to file information returns with IRS/MCC. Asingle Form 4419 should be filed no matter how many types of returns the transmitter will be submitting magnetically/electronically. For example, if a transmitter plans to file Forms 1099–INT, one
Form 4419 should be submitted. If, at a later date, another type of form (Form 1098, 1099 series, 5498, and W–2G) is to be filed, the
transmitter does not need to submit a new Form 4419.
EXCEPTIONS
An additional Form 4419 is required for filing each of the following types of returns: Forms 1042–S, 8027, and W–4.

FORM

TITLE

EXPLANATION

1042–S

Foreign Person’s U.S. Source Income
Subject to Withholding

Payments subject to withholding under Chapter 3 of the Code,
including interest, dividends, royalties, pensions, and annuities,
gambling winnings and compensation for personal services.

8027

Employer’s Annual Information Return
of Tip Income and Allocated Tips

Receipts from food or beverage operations, tips
reported by employees, and allocated tips.

W–4
(See Note)

E m p l o y e e ’s Withholding Allowance
C e r t i f icate

Forms received during the quarter from employees still employed
at the end of the quarter who claim the following:
(a) More than 10 withholding allowances or
(b) Exempt status and wages normally would be more than $200
a week.

☞ Note: Employers are not required to send other Forms W–4 unless notified to do so by the IRS.
.02 Magnetic tape, tape cartridge, diskette, and electronically filed returns may not be submitted to IRS/MCC until the application
has been approved. Please read the instructions on the back of Form 4419 carefully. AForm 4419 is included in the Publication 1220
for the filer’s use. This form may be photocopied. Additional forms may be obtained by calling 1 - 8 0 0 - TAX-FORM (1-800-8293676).
.03 Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval
letter. The TCC must be coded in the Payer “A” Record. If a transmitter uses more than one TCC to file, each TCC must be reported on separate media or in separate transmissions if filing electronically.
.04 Annually, a magnetic media reporting package containing the current revenue procedure, forms, and instructions will be sent
to the attention of the contact person indicated on Form 4419.
.05 If any of the information (name, TIN or address) on the Form 4419 changes, please notify IRS/MCC in writing so that the
IRS/MCC database can be updated. However, a change in the method by which information returns are being submitted is not information which needs to by updated (i.e., tape to disk, disk to BBS). The transmitter should include the TCC in all correspondence.
.06 Form 4419 can be submitted any time during the year; however, it must be submitted to IRS/MCC at least 30 days before the
due date of the return(s) for current year processing. For documents to be filed electronically using IBM 3780 bisynchronous
protocols, Form 4419 must be submitted at least 45 days prior to the due date of the returns (See Part C, Sec. 2). This will
allow IRS/MCC the minimum amount of time necessary to process and respond to applications. In the event that computer equipment or software is not compatible with IRS/MCC, a waiver may be requested to file returns on paper documents.
.07 IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all
payers. Include a list of all payers and TINs with the Form 4419.
.08 If a payer’s files are prepared by a service bureau, the payer may not need to submit an application to obtain a TCC. Some
service bureaus will produce files, code their own TCC on the media, and send it to IRS/MCC for the payer. Other service bureaus
will prepare magnetic media and return the media to the payer for submission to IRS/MCC. These service bureaus may require the
payer to obtain a TCC to be coded in the “A” Record. Payers should contact their service bureaus for further information.
.09 Once a transmitter is approved to file magnetically or electronically, it is not necessary to reapply each year unless:
(a) The payer has discontinued filing magnetically or electronically for three years; the payer’s TCC may have been reassigned
by IRS/MCC. Payers who are aware that the TCC assigned will no longer be used, are requested to notify IRS/MCC so
these numbers may be reassigned.
(b) The payer’s magnetic media files were transmitted in the past by a service bureau using the service bureau’sTCC, but now

1997–30 I.R.B.

20

July 28, 1997

the payer has computer equipment compatible with that of IRS/MCC and wishes to prepare his or her own files. The payer
must request a TCC by submitting Form 4419.
.10 One Form 4419 may be submitted regardless of how many types of media or methods are used to file the returns. Multiple
TCCs will only be issued to payers with multiple TIN. Only one TCC will be issued per TIN.
.11 In accordance with Regulations section 1.6041-7(b), 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. Asingle Form 4419
covering all departments filing on magnetic media should be submitted. One TCC may be used for all departments.
.12 Approval to file does not imply endorsement by IRS/MCC of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor.

Sec. 8. Test Files
.01 IRS/MCC does not require test files, except for filers wishing to participate in the Combined Federal/State Filing Program
(see Part A, Sec. 16, for further information concerning the Combined Federal/State Filing Program).
.02 IRS/MCC encourages first-time magnetic media or electronic filers to submit a test. The test file must consist of a sample of
each type of record:
(a) Payer “A” Record (must not be fictitious data)
(b) Multiple Payee “B” Records (at least 11 “B” Records per each “A” Record)
(c) End of Payer “C” Record
(d) State Totals “K” Record, if participating in the Combined Federal/State Filing Program
(e) End of Transmission “F” Record
(See Part B for record formats.)
.03 Use the Test Indicator “T” in Field Position 32 of the “A” Record to show that this is a test file.
.04 IRS/MCC will check the file to ensure it meets the specifications of this revenue procedure. For current filers, sending a test
file will provide the opportunity to ensure that their software reflects any programming changes.
If unable to submit a magnetic or electronic test file, a hardcopy printout that shows a sample of each record type (A, B, C, and F)
may be submitted. The hard copy print test is not acceptable for Combined Federal/State Filing approval.
.05 Tests should be sent to IRS/MCC between November 1 and December 31. The test file must be received at MCC by December 31 in order to be processed. Filers may begin submitting test tapes and diskettes after October 1; however, the data will not be
processed until on or after November 1.
.06 For tests filed electronically, the transmitter must send the signed Form 4804, Transmittal of Information Returns Reported
Magnetically/Electronically, the same day the transmission is made. For tests filed on magnetic tape, tape cartridge, 8mm, 4mm, and
quarter inch cartridge, 5 1/4- and 3 1/2-inch diskette, the transmitter must include the signed Form 4804 in the same package with
the corresponding magnetic media. Mark the “TEST” box in block 1 on the form. Also, mark “TEST” on the external media label.
If submitting a hard copy printout, mark the printout as “TEST” and include name, telephone number, and address of a person
who can be contacted to discuss its acceptability.
.07 IRS/MCC will send a letter of acknowledgment to indicate the test results. Unacceptable magnetic media files, along with
documentation identifying the errors, will be returned. Resubmission of test files must be received by IRS/MCC no later than December 31.
.08 Successfully processed media will not be returned to filers.

Sec. 9. Filing of Information Returns Magnetically/Electronically and Retention Requirements
.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, Form 4802, Transmittal of Information
Returns Reported Magnetically/Electronically (Continuation), or a computer-generated substitute, must accompany all magnetic
media shipments. For electronic transmissions, the Form 4804 and Form 4802, if applicable, must be sent the same day as the electronic transmission. Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), is a continuation of Form 4804 and should only be used if the filer is reporting more than five types of returns and/or more than five payers.
Form 4802 is not a stand-alone form; it can only accompany Form 4804.
.02 IRS/MCC allows for the use of computer-generated substitutes for Form 4804/4802 (See Note). The substitutes must contain
all information requested on the original forms including the affidavit and signature line. Photocopies are acceptable but an original
signature is required.
☞ Note: When using computer-generated forms, be sure to mark very clearly which tax year is being reported. This will
eliminate a phone communication from IRS/MCC to question the tax year.
.03 Atransmitter may report for any combination of payers and/or documents in a submission. For example, if reporting Forms
1099-INT for Bank A, Forms 1099-DIV for Bank B, and Forms 1098 for Bank C, three separate tapes or diskettes need not be created. All three banks and all types of documents can be coded on one tape or diskette as long as each filing entity or type of return is

1997–30 I.R.B.

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July 28, 1997

separated by an “A” Record. Only one “F” record may be used at the end of a transmission. Multiple tapes or diskettes can be sent
in one package. Filers must include Form 4804, 4802, or computer-generated substitute with their shipment.
.04 Multiple types of media may be submitted in a shipment. However, submit a separate Form 4804 for each type of media.
.05 Current and prior year data may be submitted in the same shipment; however, each tax year must be on separate media, and a
separate Form 4804 must be prepared to clearly indicate each tax year.
.06 Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to
IRS/MCC no earlier than January 1 of the year the return is due.
.07 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents
must not be filed. This may result in erroneous penalty notices.
.08 Form 4804 may be signed by the payer or the transmitter, service bureau, paying agent, or disbursing agent (all hereafter referred to as agent), on behalf of the payer. An agent may sign the Form 4804 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).”
☞ Note: Failure to sign the affidavit on Form 4804 may delay processing or could result in the files being returned unprocessed.
.09 Although an authorized agent may sign the affidavit, the payer is responsible for the accuracy of the Form 4804 and the returns filed. The payer will be liable for penalties for failure to comply with filing requirements.
.10 A self-adhesive external media label, created by the filer, must be affixed to each tape and diskette. (IRS no longer provides
self-adhesive labels for this purpose.) For instructions on how to prepare an external media label, refer to Notice 210 in the forms
section. If diskettes are used, and the operating system is not MS-DOS compatible, the operating system and hardware information
must be provided. Failure to provide this information may result in the diskettes being returned to the filer.
.11 On the outside of the shipping container, affix or attach a label which reads IRB Box ___of___ reflecting the number of containers in the shipment. (Filers can create a label with this information or cut out one of the labels on the special label page provided
in this publication. IRS no longer provides self-adhesive labels for this purpose.) 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).
.12 When submitting files include the following:
(a) A signed Form 4804;
(b) Form 4802, if applicable;
(c) External media label (created by filer) affixed to magnetic media;
(d) IRB _____ of ______ outside label.
☞ Note: See Parts C and D forElectronic Submission Requirements.
.13 If returns from different locations (using the same name and TIN) are submitted on the same file, IRS encourages the filer to
consolidate each type of information return under one “A” Record. For example, all “B” Records for the same type of return should
be together under one “A” Record and followed by the End of Payer “C” Record.
.14 IRS/MCC will not pay for or accept “Cash-on-Delivery” or “Charge to IRS” shipments of tax information that an individual
or organization is legally required to submit.
.15 Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at least 3
years from the reporting due date, with the exception of Form 1099–C. Afinancial entity must retain a copy of Form 1099–C, Cancellation of Debt, or have the ability to reconstruct the data required to be included on the return, for at least 4 years from the date
such return is required to be filed. Whenever backup withholding is imposed, a 4 year retention is required.

Sec. 10. Due Dates
As a result of due dates for Tax Year 1997 falling on weekends in 1998, the information returns, the recipient copies, and the participant copies will be treated as timely if filed or furnished on or before the following dates:
Forms 1098, 1099 and W-2G
Recipient Copy – February 2, 1998
IRS Copy – March 2, 1998
Forms 5498 and 5498-MSA
Participant Copy – June 1, 1998
IRS Copy – June 1, 1998
(5498 Only for fair market value – February 2, 1998)
.01 The due dates for filing paper returns with IRS also apply to magnetic media or electronic filing. Filing of information returns
is on a calendar year basis, except for Forms 5498 and 5498-MSA, which are used to report amounts contributed during or after the
calendar year (but not later than April 15).
.02 If any due date falls on a Saturday, Sunday or legal holiday, the return or statement is considered timely if filed or furnished
on the next business day (i.e., the next day that is not a Saturday, Sunday, or legal holiday).

1997–30 I.R.B.

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July 28, 1997

.03 Information returns filed magnetically/electronically for Forms 1098, 1099, and W–2G must be submitted to IRS/MCC postmarked on or before March 2, 1998.
.04 Returns postmarked by the United States Postal Service (USPS) on or before March 2, 1998, and delivered by United States
mail to the IRS/MCC after the due date, are treated as timely under the “timely mailing as timely filing” rule. A similar rule applies
to items delivered by private delivery services (PDSs) designated by the IRS. A PDS must be designated by the IRS before it will
qualify for the timely mailing rule. Designation is determined with respect to each type of delivery service offered by a PDS (e.g.,
next day delivery, two day delivery, etc.). Notice 97–26, 1997–17 I.R.B. 6, provides the first list of designated PDSs and the types of
delivery services designated. Designation is effective until the IRS issues a revised list of designated PDSs. Notice 97–26 also provides rules for determining the date that is treated as the postmark date. For items delivered by a non-designated PDS, the actual
date of receipt by IRS/MCC will be used as the filing date. For items delivered by a designated PDS, but through a type of service
not designated in Notice 97–26, the actual date of receipt by IRS/MCC will be used as the filing date. The timely mailing rule also
applies to furnishing statements to recipients and participants and filing Forms 5498 and 5498–MSA.
.05 Statements to recipients must be furnished on or before February 2, 1998 for TY97. Form 5498 statements to the participants
must be furnished on or before February 2, 1998 for TY97 for the fair market value of the account and by June 1, 1998 for TY97 for
contributions made to IRAs for the prior calendar year.
.06 Forms 5498 and 5498–MSA filed magnetically or electronically must be filed with IRS/MCC on or before June 1, 1998 for TY97.
Form 5498 and 5498–MSA are filed for contributions to be applied to 1997 that are made January 1, 1997, through April 15, 1998,
and/or to report the fair market value of the IRA, SEP, or SIMPLE or the medical savings account.
.07 Use this revenue procedure to prepare information returns filed magnetically or electronically beginning January 1, 1998, and
received by IRS/MCC no later than December 31, 1998.

Sec. 11. Extensions of Time
.01 An extension of time to file may be requested for Forms 1099, 1098, 5498, 5498–MSA, W–2G, W–2, and 1042–S.
.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC. This form may be used
to request an extension of time to file information returns submitted on paper, magnetically or electronically.
.03 Requesting an extension of time for multiple payers (50 or less) may be done by submitting Form 8809 and attaching a list of
the payer names and their TINs (EIN or SSN). The listing must be attached to ensure that the extension is recorded for all payers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included.
.04 Requests for an extension of time to file for more than 50 payers are required to be submitted magnetically or electronically
(See Note). Requests for an extension of time for 10 to 50 payers are encouraged to be filed magnetically or electronically. (See
Part E, Sec. 3, for the record format.) The request may be filed on tape, tape cartridge, 5 1/4- or 3 1/2-inch diskette, or electronically
through the IRP-BBS or mainframe.
☞ Note: If a filer does not have an IRS/MCC assigned Tr a n s m i t t e rC o n t rol Code (TCC), a Form 4419, Application forF i l i n g
Information Returns Magnetically/Electro n i c a l l y, must be submitted to obtain a TCC. This number must be used to submit
an extension request magnetically/electro n i c a l l y.
.05 Amagnetically filed request for an extension of time should be sent using the following addresses:

✉

If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879, MS-360
Kearneysville, WV 25430
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.06 Requests for extensions of time for multiple payers will be responded to with one approval letter, accompanied by a list of
payers covered under that approval.
.07 As soon as it is apparent that a 30-day extension of time to file is needed, Form 8809 may be submitted. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of time
could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days.
.08 If an additional extension of time is needed, a second Form 8809 must be submitted before the end of the initial extension.

1997–30 I.R.B.

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July 28, 1997

Line 7 on the form should be checked to indicate that an additional extension is being requested. Asecond 30-day extension will be
approved only in cases of extreme hardship or catastrophic event. When requesting a second 30-day extension of time, do not hold
your files waiting for a response.
.09 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting
an extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest due date. For example, if requesting an extension of time to file both Forms 1099–INT and 5498, submit Form 8809 postmarked on or before February 28. Complete more than one Form 8809 to avoid this problem.
.10 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper returns
are filed.
.11 Request an extension for only one tax year.
.12 The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other document for the payer.
.13 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.
.14 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.15 Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W–2G, W–2, and 1042–S by
submitting a letter to IRS/MCC containing the following information:
(a) Payer name
(b) TIN
(c) Address
(d) Type of return
(e) Specify that the extension request is to provide statements to recipients.
(f) Reason for delay
(g) Signature of payer or person duly authorized
Requests for an extension of time to furnish the statements for Forms 1098, 1099, 5498, W–2G, W–2, and 1042–S to recipients are not
automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days from the due date to
furnish the statements to the recipients. The request must be postmarked by the date on which the statements are due to the recipients.

Sec. 12. Processing of Information Returns Magnetically/Electronically
.01 All data received at IRS/MCC for processing will be given the same protection as individual income tax returns (Form 1040).
IRS/MCC will process the data and determine if the records are formatted and coded according to this revenue procedure.
.02 If the data is formatted incorrectly, the file will be returned for replacement accompanied with a Media Tracking Slip (Form
9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and was unable to process the
media, therefore, requiring a replacement. Open all packages immediately.
.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of
the letter IRS/MCC included with the returned files. Apenalty for failure to file correct information returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if the incorrect files are returned by IRS/MCC for re p l a c ement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received. (For penalty information, refer to the Penalty section of the 1997 “Instructions for Forms 1099, 1098, 5498, and W – 2 G . ” )
.04 Sample records identifying errors encountered will be provided with the returned media. It is the responsibility of the transmitter to check the entire file for similar errors.
.05 The following definitions have been provided to help distinguish between a correction and a replacement:
• A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by IRS/MCC, but contained erroneous information.
• A replacement is an information return file that IRS/MCC has returned to the transmitter due to errors encountered during processing. After necessary changes have been made, the file must be returned for processing along with the Media Tracking Slip
(Form 9267) which was included in the shipment from IRS/MCC.
• Filers should neversend anything to IRS/MCC marked “Replacement” unless IRS/ MCC returned media to them.
.06 IRS/MCC will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/MCC received
a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery.
.07 IRS/MCC will work with filers as much as possible to assist with processing problems.
☞ Note: If the filer is contacted by IRS/MCC, a prompt response is important. IRS/MCC may have information that the
filer needs to correct his orher file.
.08 IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result
in penalties. Payers who submit data with missing TINs and have taken the required steps to obtain this information are encouraged

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to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100ANotices) or penalties for missing or incorrect TINs.
.09 Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.

Sec. 13. Corrected Returns
.01 The magnetic media filing requirements of 250 information returns applies separately to both original and corrected returns.

E
X
A
M
P
L
E

If a payer has 100 Forms 1099-Ato be corrected, they
can be filed on paper since they fall under the 250
threshold. However, if the payer has 300 Forms
1099-B to be corrected, they must be filed magnetically or electronically since they meet the 250 threshold. If for some reason a payer cannot file the 300
corrections on magnetic media, to avoid penalties, a
request for a waiver must be submitted before filing
on paper. If a waiver is approved for original documents, any corrections for the same type of return will
be covered under this waiver.

.02 Corrections should be filed as soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of
$50 per return. Corrections filed prior to August 1 may be subject to a lesser penalty. (For information on penalties, refer to the
Penalty Section of the 1997 “Instructions for Forms 1099, 1098, 5498, and W–2G.”) However, if payers discover errors after August
1, they may still be required to file corrections so that they will not be subject to a penalty for intentional disregard of the filing requirements. Failure to correct information returns may result in penalties for failure to provide correct information. All fields must
be completed with the correct information, not just the data fields needing correction. Submit corrections only for the returns
filed in error, not the entire file. Furnish corrected statements to recipients as soon as possible.
.03 There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error.
If the original return was filed as an aggregate, the filers must considerthis in filing corrected returns.
.04 Corrected returns may be included on the same medium as original returns; however, separate “A” Records are required. Corrected returns must be identified on the Form 4804 and the external media label by indicating “Correction.”
☞ Note: If filers discover that certain information returns were omitted on their original file, they must not code these
documents as corrections. The file must be coded and submitted as originals.
.05 If a payer discovers errors for prior years that affect a large number of payees, in addition to sending IRS the corrected returns
and notifying the payees, a letter containing the following information should be sent to IRS/MCC:
(a) Name and address of payer
(b) Type of error (please explain clearly)
(c) Tax year
(d) Payer TIN
(e) TCC
(f) Type of Return
(g) Number of Payees
This information will be forwarded to the appropriate office in an attempt to prevent erroneous notices from being sent to the payees. The correction must be submitted on an actual information return document or filed magnetically/electronically. Provide the
correct tax year in Box 2 of the Form 4804 and on the external media label.
.06 Prior year data, original and corrected, must be filed according to the requirements of this revenue procedure. If submitting
prior year corrections, use the record format for the current year and submit on separate media. However, use the actual year designation of the correction in Field Positions 2–3. If filing electronically, a separate transmission must be made for each tax year.
.07 In general, filers should submit corrections for returns to be filed within the last three calendar years (four years if the payment is a reportable payment subject to backup withholding under section 3406 of the Code).
.08 All paper returns, whether original or corrected, must be filed with the appropriate service center.
.09 Form 4804 and Form 4802 (if applicable), must be submitted with corrected files submitted magnetically or electronically.
.10 The “B” Record provides a 20-position field for the Payer’s Account Number for the Payee. 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 in this field. 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.
.11 The record sequence for filing corrections is the same as for original returns.

1997–30 I.R.B.

25

July 28, 1997

.12 Review the chart that follows. Errors normally fall under one of the two categories listed. Next to each type of error made is
a list of instructions on how to file the corrected return.
Guidelines for Filing Corrected Returns Magnetically/Electronically
Error Made on the Original Return

How To File the Corrected Return

Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both
Transactions 1 and 2. (See Note 1)
1. Original return was filed with one or more of the following
errors:
(a) No payee TIN (SSN or EIN)
(b) Incorrect payee TIN
(c) Incorrect payee name
(d) Wrong type of return indicator

Transaction 1: Identify incorrect returns
A. Prepare a new Form 4804/4802 that includes information
related to this file.
B. Mark “Correction” in Block 1 of Form 4804.
C. Prepare a new file. Make a separate “A” Record for each
type of return being reported. The information in the “A”
Record will be exactly the same as it was in the original submission.
D. The Payee “B” Record must contain exactly the same information as submitted previously, except, insert a “G” in
Field Position 7 of the “B” Record, and for all payment
amounts, enter “0” (zero).
E. Corrected returns submitted to IRS/MCC using a “G”
coded “B” Record may be on the same tape or diskette as
those returns submitted without the “G” code; however,
separate “A” Records are required.
Transaction 2: Report the correct information
A. Prepare a new file with the correct information in all records.
B. Make a separate “A” Record for each type of return and
each payer being reported.
C. The “B” Record must show the correct information as well
as a “C” in Field Position 7.
D. Corrected returns submitted to IRS/MCC using a “C”
coded “B” Record may be on the same tape or diskette as
those returns submitted without the “C” code; however,
separate “A” Records are required.
E. Prepare a “C” Record.
F. Indicate “Correction” on the external media label.

☞ Note 1: Payers who can show that they have reasonable cause (defined in the regulations under sections 6721–6724 of the
Internal Revenue Code) are not re q u i red to make corrections for returns filed with a missing or i n c o r rect name and/or TIN.
These payers should change theirrecords in order to submit correct information in the future. Payers who cannot show re a s o nable cause are encouraged to make corrections for the current processing year by August 1 to reduce applicable penalties. Corrections filed by August 1 will reduce the $50 perreturn penalty forfiling returns with missing ori n c o r rect information to $30 or
$15 if filed within 30 days. (Forpenalty information, re f e r to the Penalty section of the 1997 “Instructions forForms 1099, 1098,
5498, and W–2G.”) Corrections filed afterAugust 1 will not reduce the penalty but will allow IRS to update the payee’s re c o r d s .
The regulations forIRC sections 6721–6724 are available in Publication 1586, Reasonable Cause Regulations and Require m e n t s
as They Apply to Missing and Incorrect TINs. The publication may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
One transaction is required to make the following corrections properly (See Note 2).
2. Original return was filed with one or more of the following
errors:
(a) Incorrect payment amount codes in the “A” Record
(b) Incorrect payment amounts in the “B” Record
(c) Incorrect code in the document specific/distribution
code field in the “B” Record
(d) Incorrect payee address

1997–30 I.R.B.

A. Prepare a new Form 4804/4802 that includes information
relating to this new file.
B. Mark “Correction” in Block 1 of Form 4804.
C. Prepare a new file. Make separate “A” Records for each
type of return being reported. Information in the “A”
Record may be the same as it was in the original submission.

26

July 28, 1997

(e) Direct sales indicator

D. The “B” Record must show the correct information as well
as a “G” in Field Position 7.
E. Corrected returns submitted to IRS/MCC using a “G”
coded “B” Record may be on the same tape or diskette as
those returns submitted without the “G” code; however,
separate “A” Records are required.
F. Prepare a “C” Record.
G. Mark “Correction” on the external media label.

☞ Note 2: If a filer is correcting the name and/orTIN in addition to any errors listed in item 2 of the chart, then two transactions will be required. If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns on the same
media, they must be reported under separate “A” Records.

Sec. 14. Taxpayer Identification Number (TIN)
.01 Section 6109 of the Internal Revenue Code requires a person to furnish his/her TIN to the person obligated to file the information return.
.02 The payee’sTIN and name combination is used to associate information returns reported to IRS/MCC with corresponding information on tax returns. It is imperative that correct Social Security Number (SSN), Individual Tax Identification Number (ITIN),
and Employer Identification Number (EIN), for payees be provided to IRS/MCC. Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.
.03 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 “B” Record. For individuals, the payee TIN is generally the payee’s Social Security Number. For other
entities, the payee TIN is the payee’s Employer Identification Number. For sole proprietors, the payee TIN may be either an SSN or
EIN but the sole proprietor’s name (not the business name) must be used on the first name line.
.04 Failure to provide the correct name and corresponding TIN could result in a penalty and/or backup withholding notice (sometimes referred to as a “B” Notice). (For penalty information, refer to the Penalty section of the 1997 “Instructions for Forms 1099,
1098, 5498, and W–2G.” For “B” Notice information, refer to the Backup Withholding section of the same publication.)
.05 The following charts will help payers determine the TIN to be furnished to IRS/MCC for those persons for whom they are reporting information (payees).
Chart 1. Guidelines for Social Security Numbers
In the Taxpayer Identification Number
Field of the Payee “B” Record, enter
the SSN of-

In the First Payee Name Line of the
Payee “B” Record, enter the name of-

1. Individual

The individual

The individual

2. Joint account (Two or more individuals, including husband and wife)

The actual owner of the account or,
if combined funds, the first individual
on the account

The individual whose SSN is entered

3. Custodian account of a minor (Uniform Gift, or Transfers, to Minors Act)

The minor

The minor

4. The usual revocable savings trust
account (grantor is also trustee)

The grantor-trustee

The grantor-trustee

5. Aso-called trust account that is not a
legal or valid trust under state law

The actual owner

The actual owner

6. Sole proprietorship

The owner (An SSN or EIN)

The owner, not the business name (the filer
may enter the business name on the second
name line).

For this type of account-

1997–30 I.R.B.

27

July 28, 1997

Chart 2. Guidelines for Employer Identification Numbers
In the Taxpayer Identification Number
Field of the Payee “B” Record, enter
the EIN of-

In the First Payee Name Line of the
Payee “B” Record, enter the name of-

1. Avalid trust, estate, or pension trust

The legal entity 1

The legal trust, estate, or pension trust1

2. Corporate

The corporation

The corporation

3. Association, club, religious, charitable, The org a n i z a t i o n
educational, or other tax-exempt org a n i z a tion

The organization

4. Partnership account
held in the name of the business

The partnership

The partnership

5. Abroker or registered nominee/
middleman

The broker or nominee/middleman

The broker or nominee/middleman

6. Account with Department of A g r i c u l ture in the name of a public entity
(such as a state or local government,
school district, or prison), that receives
agriculture program payments

The public entity

The public entity

7. Sole proprietorship

The business (An EIN or SSN)

The owner, not the business name (the filer
may enter the business name on the second
name line).

For this type of account-

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 and Statements to Recipients
.01 Magnetic/electronic reporting of information returns eliminates the need to submit paper documents to the IRS. CAUTION!
Do not send Copy Aof the paperforms to IRS/MCC in addition to magnetic media and electronic filing. This will result in duplicate filing; therefore, erroneous notices could be generated.
.02 Payers are responsible for providing statements to the recipients as outlined in the 1997 “Instructions for Forms 1099, 1098, 5498,
and W–2G.” Refer to these instructions for filing information returns on paper with the IRS and furnishing statements to recipients.
.03 Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifications and guidelines in Publication 1179, “Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099 series, 5498, and W–2G.”

Sec. 16. Combined Federal/State Filing Program
.01 The Combined Federal/State Filing Program was established to simplify information returns filing for the taxpayer.
IRS/MCC will forward this information to participating states free of charge for approved filers. Separate reporting to those states is
not necessary. The following information returns may not be filed under this program:
Form 1098 — Mortgage Interest Statement
Form 1099–A— Acquisition or Abandonment of Secured Property
Form 1099–B — Proceeds From Broker and Barter Exchange Transactions
Form 1099–C — Cancellation of Debt
Form 1099–LTC — Long-Term Care and Accelerated Death Benefits
Form 1099–MSA — Distributions From Medical Savings Accounts
Form 1099–S — Proceeds From Real Estate Transactions
Form 5498–MSA — Medical Savings Account Information
Form W–2G — Certain Gambling Winnings

1997–30 I.R.B.

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July 28, 1997

.02 To request approval to participate, a magnetic media or electronic test file coded for this program must be submitted to
IRS/MCC between November l and December 31. Hard copy print tests are not acceptable for Combined Federal/State Filing
approval.
.03 Attach a letter to the Form 4804 submitted with the test file to indicate a desire to participate in this program.
.04 Atest file is only required for the first year. Each record, both in the test and the actual data file, must conform to this revenue
procedure.
.05 If the test file is acceptable, IRS/MCC will send the filer 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. Filers must write their TCC on Form 6847.
.06 If the test file is not acceptable, IRS/MCC will return the media with a letter indicating the problems. The replacement test
file must be returned to IRS/MCC on or before December 31.
.07 Aseparate Form 6847 is required for each payer. Atransmitter may not combine payers on one Form 6847 even if 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 or it may be photocopied. 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.
.08 Only code the records for participating states and for those payers who have submitted Form 6847.
.09 Some participating states require separate notification that the payer is filing in this manner. Since IRS/MCC acts as a forwarding agent only, it is the payer’s responsibility to contact the appropriate states for further information.
.10 All corrections properly coded for the Combined Federal/ State Filing Program will be forwarded to the participating states.
.11 Participating states and corresponding valid state codes are listed in Table 1 of this section. The appropriate state code must
be entered for those documents that meet the state filing requirements; do not use state abbreviations.
.12 To simplify filing, some of the participating states have provided their information return reporting requirements (see Table
2). State filing regulations are subject to change by the state. It is the payer’s responsibility to contact the participating
states to verify the criteria provided in this table.
.13 Upon submission of the actual files, the transmitter must be sure of the following:
(a) All records should be coded exactly as required by this revenue procedure.
(b) The “C” Record must be followed by a State Totals “K” Record for each state being reported.
(c) Payment amount totals and the valid participating state code must be included in the State Totals “K” Record.
(d) The last “K” Record must be followed by an “A” Record or an 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
Arizona
Arkansas
California
Delaware
District of Columbia
Georgia
Hawaii
Idaho
Indiana

01
04
05
06
10
11
13
15
16
18

State

Code

Iowa
Kansas
Maine
Massachusetts
Minnesota
Mississippi
Missouri
Montana
New Jersey
New Mexico

19
20
23
25
27
28
29
30
34
35

State

Code

North Carolina
North Dakota
Oregon
South Carolina
Tennessee
Wisconsin

37
38
41
45
47
55

Table 2. Dollar Criteria For State Reporting

STATE

1099–
DIV

1099–G

1099–
INT

1099–
MISC

1099–
OID

1099–
PATR

1099–R

Alabama
Arkansas
District of Columbiab

$1500
100
600

$ NR
2500
600

$1500
100
600

$1500
2500
600

$1500
2500
600

$1500
2500
600

$1500
2500
600

1997–30 I.R.B.

29

5498
NR
a

NR

July 28, 1997

STATE
Hawaii
Idaho
Iowa
Minnesota
Mississippi
Missouri
Montana
New Jersey
North Carolina
Tennessee
Wisconsin

1099–
DIV

1099–G

1099–
INT

1099–
MISC

1099–
OID

1099–
PATR

1099–R

5498

10
NR
100
10
600
NR
10
1000
100
25
NR

a
NR
1000
10
600
NR
10
1000
100
NR
NR

10
NR
1000
10
600
NR
10
1000
100
25
NR

600
600
1000
600
600
1200c
600
1000
600
NR
600

10
NR
1000
10
600
NR
10
1000
100
NR
NR

10
NR
1000
10
600
NR
10
1000
100
NR
NR

600
a
1000
600
600
NR
600
1000
100
NR
600

a
a
NR
a
NR
NR
a
NR
a
NR
NR

The preceding list is for information purposes only. The state filing requirements are subject to change by the states. For complete information on state filing requirements, contact the appropriate state tax agencies.
Filing requirements for states in TABLE 1 not shown in TABLE 2 are the same as the federal requirement.
NR = No filing requirement
Footnotes:
a. All amounts are to be reported.
b. Amounts are for aggregates of several types of income from the same payer.
c. Missouri would prefer those returns filed with respect to non-Missouri residents to be sent directly to their state agency.

Sec. 17. Definition of Terms
Element

Description

Asynchronous Protocols

This type of data transmission is most often used by microcomputers, PCs and some minicomputers. A s y n c h r o n o u s
transmissions transfer data at arbitrary time intervals using
the start-stop method. Each character transmitted has its own
start bit and stop bit.

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.

Bisynchronous Protocols

For purposes of this publication, these are electronic transmissions made using IBM 3780 protocols. These transmissions must be in EBCDIC character code and use the Bell
208B (4800bps), AT&T 2296A(9600bps) or Hayes OPTIMA
288 V.FC Smartmodem (14400bps) modems. Standard IBM
3780 space compression is acceptable.

Correction

A correction is an information return submitted by the transmitter to correct an information return that was previously
submitted to and processed by IRS/MCC, but contained erroneous information.

☞ Note: A correction should not be confused with a replacement. Only media returned to the filer by IRS/MCC due to
processing problems should be marked replacement.
CUSIP Number

A number developed by the Committee on Uniform Security
Identification Procedures to serve as a common denominator
in communications among users for security transactions and
security information.

Employer Identification Number (EIN)

Anine-digit number assigned by IRS for federal tax reporting
purposes.

Electronic Filing

Submission of information returns using switched telecommunications network circuits. These transmissions use

1997–30 I.R.B.

30

July 28, 1997

modems, dial-up phone lines, and asynchronous or bisynchronous protocols. See Parts A, C, and D of this publication
for specific information on electronic filing.
For purposes of this revenue procedure, a file consists of all
records submitted by a payer or transmitter, either magnetically or electronically.
Person (may be payer and/or transmitter) submitting information returns to IRS.
The actual year in which the information returns are being
submitted to IRS.
A payment made by a corporation to a certain officer, shareholder, or highly compensated individual when a change in
the ownership or control of the corporation occurs or when a
change in the ownership of a substantial part of the corporate
assets occurs.
ATIN may be incorrect for several reasons:
(a) The payee provided a wrong number or name (e.g., the
payee is listed as the only owner of an account but provided someone else’s TIN).
(b) A processing error (e.g., the number or name was typed
incorrectly).
(c) The payee’s status changed (e.g., a payee name change
was not conveyed to the IRS or SSA so that they could
enter the change in their records).
A nine digit number issued by IRS to individuals who are re quired to have a U.S. taxpayer identification number but are
not eligible to obtain a Social Security Number (SSN).
The vehicle for submitting required information about another person to IRS. Information returns are filed by financial
institutions and by others who make certain types of payments as part of their trade or business. The information required to be reported on an information return includes interest, dividends, pensions, nonemployee compensation for
personal services, stock transactions, sales of real estate,
mortgage interest, and other types of information. For this
revenue procedure, an information return is a Form 1098,
1099–A, 1099–B, 1099–C, 1099–DIV, 1099–G, 1099–INT,
1 0 9 9 – LT C, 1099–MISC, 1 0 9 9 – M S A, 1099–OID,
1099–PATR, 1099–R, 1099–S, 5498, 5498–MSA or W–2G.
For this revenue procedure, the term “magnetic media” refers
to 1/2-inch magnetic tape; IBM 3480/3490/3490E or AS400
compatible tape cartridge; 8mm, 4mm, and QIC (Quarter
Inch Cartridges) cartridges or 5 1/4- and 3 1/2-inch diskette.
Form 9267 accompanies media that IRS/MCC has returned to
the filer for replacement due to incorrect format or errors encountered when trying to process the media. This must be
returned with the replacement file.
The payee TIN on an information return is “missing” if:
(a) there is no entry in the TIN field,
(b) includes one or more alpha characters (a character or
symbol other than an Arabic number) as one of the nine
digits, OR
(c) payee TIN has less than nine digits

File

Filer
Filing Year
Golden Parachute Payment

Incorrect Taxpayer Identification Number (Incorrect TIN)

Individual Taxpayer Identification Number (ITIN)

Information Return

Magnetic Media

Media Tracking Slip

Missing Taxpayer Identification Number (Missing TIN)

PS 58 Costs

1997–30 I.R.B.

The current cost of life insurance under a qualified plan taxable under section 72(m) and section 1.72–16(b) of the In-

31

July 28, 1997

come Tax Regulations. (See Part B, Sec. 7, Payee “B”
Record, Document Specific/Distribution 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), a debtor (1099–C), a poli cyholder or insured (Form 1099–LTC), an IRA, SEP, or SIMPLE plan 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 creditor, a trustee, or issuer of an IRA, SEP, or SIMPLE, 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.

Replacement

Areplacement is an information return file that IRS/MCC has
returned to the transmitter due to errors encountered during
processing.

☞ Note: Filers should never submit media to IRS/MCC marked “Replacement” unless IRS/MCC returned media to the
filers. When sending “Replacement” media, be sure to include the Media Tracking Slip (Form 9267) which will accompany
media returned by IRS/MCC. Media that has been incorrectly marked as Replacement may result in duplicate filing.
Service Bureau

Person or organization with whom the payer has a contract to
prepare and/or submit information return files to IRS/MCC.
Aparent company submitting data for a subsidiary is not considered a service bureau.

Social Security Number (SSN)

A nine-digit number assigned by SSA to an individual for
wage and tax reporting purposes.

Special Character

Any character that is not a numeral, an alpha, or a blank.

SSA

Social Security Administration.

Taxpayer Identification Number (TIN)

Refers to either an Employer Identification Number (EIN),
Social Security Number (SSN) or Individual Taxpayer Identi fication Number (ITIN).

Tax year

Generally, the year in which payments were made by a payer
to a payee.

Transfer Agent

The transfer agent, or paying agent, is the entity who has been
contracted or authorized by the payer to perform the services
of paying and reporting backup withholding (Form 945).

Transmitter

Refers to the person or organization submitting file(s) magnetically/ electronically. The transmitter may be the payer or
agent of the payer.

Transmitter Control Code (TCC)

A five character alpha/numeric number assigned by
IRS/MCC to the transmitter prior to actual filing magnetically or electronically. This number is inserted in the “A”
Record of the files and must be present before the file can be
processed. An application Form 4419 must be filed with
IRS/MCC to receive this number.

Vendor

Vendors include service bureaus that produce information return files on the prescribed types of magnetic media or via

1997–30 I.R.B.

32

July 28, 1997

electronic filing for payers. Vendors also include companies
who provide software for payers who wish to produce their
own media or electronic files.

Sec. 18. State Abbreviations
.01 The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields.
This table provides state and territory abbreviations only, and does not represent those states participating in the Combined Federal/State Filing Program.
State
Alabama
Alaska
American Samoa
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Federated States
of Micronesia
Florida
Georgia
Guam
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas

Code
AL
AK
AS
AZ
AR
CA
CO
CT
DE
DC
FM
FL
GA
GU
HI
ID
IL
IN
IA
KS

State

Code State

Kentucky
Louisiana
Maine
Marshall Islands
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Northern Mariana Islands

KY
LA
ME
MH
MD
MA
MI
MN
MS
MO
MT
NE
NV
NH
NJ
NM
NY
NC
ND
MP

Ohio
Oklahoma
Oregon
Pennsylvania
Puerto Rico
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Virgin Islands*
Washington
West Virginia
Wisconsin
Wyoming

Code
OH
OK
OR
PA
PR
RI
SC
SD
TN
TX
UT
VT
VA
VI
WA
WV
WI
WY

*This abbreviation applies to the United States Virgin Islands
.02 Filers must adhere to the city, state, and ZIP code format for U.S. addresses in the “B” Record. This also includes American
Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
.03 For foreign country addresses, filers may use a 40 position free format which should include city, province or state, postal
code, and name of country in this order. This is allowable only if a “1” (one) appears in the Foreign Country Indicator, Field Position
161 of the “B” Record.
.04 When reporting APO/FPO addresses use the following format:
EXAMPLE:
Payee Name
PVTWillard J. Doe
Mailing Address
Company F, PSC Box 100
167 Infantry REGT
Payee City
APO (or FPO)
Payee State
AE, AA, or AP*
Payee ZIP Code
098010100
*AE is the designation for ZIPs beginning with 090-098, AAfor ZIP 340, and APfor ZIPs 962-966.

Sec. 19. Major Problems Encountered
IRS/MCC encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This may
eliminate the need for IRS/MCC to return files for replacement. This may be important for those payers who have either had their
files prepared by a service bureau or who have purchased preprogrammed software packages (see Note). If a filer purchased a software package for a previous tax year, it may no longer be valid for reporting current tax year information returns.

1997–30 I.R.B.

33

July 28, 1997

☞ Note: If filers meet the filing requirements and engage a service bureau to prepare media on their behalf, the filers
should be careful not to report duplicate data which may generate penalty notices.
The Major Problems Encountered lists some of the most frequently encountered problems with magnetic/electronic files submitted to IRS/MCC. These problems may result in media being returned for replacement.
1. Discrepancy between IRS/MCC totals and totals in Payer “C” Records
The “C” Record is a summary record for a type of return for a given payer as reported in the “B” Records. IRS balances the total
number of payees and payment amounts and compares them with totals in the “C” Records. Filers should verify the accuracy of the
records because imbalances may necessitate return of files for replacement.
2. The Payment Amount Fields in the “B” Record do not correspond to the Amount Codes in the “A” Record
If codes 2, 4, and 7 appear in the Amount Codes Field of the “A” Record, then the “B” Record must show payment amounts in only
Fields 2, 4, and 7, right-justified and unused positions must be zero (0) filled.
EXAMPLE:

“A” RECORD

247bbbbbb
—
(Pos. 23–31)

(‘b’denotes a blank)

“B” RECORD

0000867599 —
(Pos. 61–70)

(Payment Amount 2)

0000709097

—

(Payment Amount 4)

0000044985 —
(Pos. 111–120)

(Payment Amount 7)

(Pos. 81–90)

3. Blanks or invalid characters appear in Payment Amount Fields in the “B” Record
Money amounts must be right-justified and zero (0) filled. Do not use blanks.
4. Incorrect TIN in Payer “A” Record
The Payer’s TIN reported in positions 7-15 of the “A” Record must be nine numeric characters (no alphas or special characters) in
order for IRS/MCC to process the media. The TIN provided in the “A” Record must correspond with the name provided in the first
payer name line.
5. Bad Format
IRS/MCC receives data in prior year format. Be sure to use the current revenue procedure (Publication 1220) for formatting
data.
6. Incorrect tax year in the Payer “A” Record and the Payee “B” Record
The tax year in both the payer and payee records should reflect the year of the information that is being reported. Filers need to
check their files to ensure that this information is correct.
7. Incorrect reporting of Form W-2 information to IRS
Form W–2 information is submitted to SSA, and not to IRS/MCC. SSAhas its own magnetic media reporting program and specifications for wage information, and the media containing Forms W-2 is submitted to SSA. Any media received at IRS/MCC that contains Form W–2 information will be returned to the filer. The local SSAoffice should be contacted for information concerning filing
Forms W–2 on magnetic media.
8. Excessive withholding credits
Generally, for most information returns, other than Forms 1099–G, 1099–MISC, 1099–R, and W–2G, Federal withholding amounts
should not exceed 31 percent of the income reported. Validate the total reported in the withholding field against the total income reported.
9. Incorrect format forTINs in the Payee “B” Record
A check of “B” Records should be made to ensure the Taxpayer Identification Numbers (TINs) are formatted correctly. T h e r e
should be nine numerics, no alphas, hyphens, commas, or blanks. Incorrect formatting of TINs may result in a penalty.
IRS/MCC contacts filers who have submitted payee data with missing TINs in an attempt to prevent erroneous notices.
Payers/transmitters who submit data with missing TINs, and have taken the required steps to obtain this information are encouraged
to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 and CP2100A Notices) or penalties for missing or incorrect TINs. For
penalty information, refer to the Penalty section of the 1997 “Instructions for Forms 1099, 1098, 5498, and W–2G.”

1997–30 I.R.B.

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July 28, 1997

10. Distribution Codes for Form 1099-R reported incorrectly
Distribution codes for Form 1099-R are being reported incorrectly or not being reported. See valid distribution codes for Form
1099–R in the Payee “B” Record layout.
11. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on the Form 4804 (Box 9) are used in the verification process of information returns. The
figure in this box should be the total number of Payee “B” Records contained on the media submitted with the Form 4804. The figures on the Form 4804 are compared against the total number of Payee “B” Records processed on the media. Imbalances may necessitate the return of the files for replacement.
12. Invalid Use of IRA/SEP/SIMPLE Indicator
The IRA, SEP, or SIMPLE Indicator for Form 1099-R should be used only for the reporting of a distribution from an IRA, SEP or
S I M P L E. The total amount distributed from an IRA, SEP or S I M P L E should be reported in Payment Amount Field 2
(IRA/SEP/SIMPLE Distribution).

Part B. Magnetic Media Specifications
Sec. 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 the magnetic media file.
.02 A provision is made in the “B” Records for Special Data Entries. These entries are optional. If the field is not utilized, enter
blanks to maintain a fixed record length of 420 positions. The field is intended to serve one or both of these purposes:
(a) Contain information required by state or local governments. Filers who wish to use this option for satisfying state or local
reporting requirements should contact the state or local department of revenue for filing instructions. (Also refer to Part A,
Sec. 16.)
(b) Contain information for the filer’s own personal use and used at the discretion of the filer to include information related to
each individual return. IRS/MCC will not use the information supplied in this field. The length of this field will vary depending on the type of return.
.03 Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifications, it could be returned to the transmitter for replacement. Filers are encouraged to submit a test prior to submitting the actual
file. Contact IRS/MCC for further information at 304-263-8700.

Sec. 2. Tape Specifications
.01 IRS/MCC can process most magnetic tape files if the following specifications are followed:
(a) 9 track EBCDIC (Extended Binary Coded Decimal Interchange Code) with:
(1) Odd parity.
(2) Adensity of 1600 or 6250 CPI.
(3) If transmitters use UNISYS Series 1100, they must submit an interchange tape.
(b) 9 track ASCII (American Standard Coded Information Interchange) with:
(1) Odd parity.
(2) Adensity of 1600 or 6250 CPI.
Transmitters should be consistent in the use of recording codes and density on files.
.02 All compatible tape files must have the following characteristics: Type of tape - 1/2-inch (12.7 mm) wide, computer-grade
magnetic tape on reels of up to 2,400 feet (731.52 m) within the following specifications:
(a) Tape thickness: 1.0 or 1.5 mils and
(b) Reel diameter: 10 1/2-inch (26.67 cm), 8 1/2-inch (21.59 cm), 7-inch (17.78 cm), or 6-inch.
.03 The tape records defined in this revenue procedure may be blocked subject to the following:
(a) Ablock must not exceed 32,760 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. Arecord may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item b above). The block length must be evenly divisible by 420.
(d) Records may not span blocks.
.04 Labeled or unlabeled tapes may be submitted.
.05 For the purposes of this revenue procedure the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).

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(c) May follow the header label and precede and/or follow the trailer label.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.

Sec. 3. Tape Cartridge Specifications
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a) Must be IBM 3480, 3490, 3490E, or AS400 compatible.
( b ) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches
by 1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3) Cartridges must be 18-track or 36-track parallel (See Note).
(4) Cartridges will contain 37,871 CPI or 75,742 CPI (characters per inch).
(5) Mode will be full function.
(6) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,760 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s;
h o w e v e r, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control
fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last
block which may be shorter (see item b above). The block length must be evenly divisible by 420.
(d) Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
☞ Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 36track or 18-track.

Sec. 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications
.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Created from an AS400 operating systems only.
(2) 8mm (.315-inch) tape cartridges will be 2 1/2-inch by 3 3/4-inch.
(3) The 8mm tape cartridges must meet the following specifications:
Tracks
Density
Capacity
1
20 (43245 BPI)
2.3 Gb
1
21 (45434 BPI)
5 Gb
(4) Mode will be full function.
(5) Compressed data is not acceptable.
(6) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear
on the external media label affixed to the cartridge.
(7) A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per
file or per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will indicate the sequence of the cartridge within the file (e.g., 1 of 3, 2 of 3, and 3 of 3 and would appear in the header
label IRSTAX.001, IRSTAX.002, and IRSTAX.003 on each cartridge of the file). The end of transmission “F”
Record should be placed on the last cartridge only for files containing multiple cartridges.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,760 tape positions.

1997–30 I.R.B.

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(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s;
h o w e v e r, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control
fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last
block which may be shorter (see item (b) above). The block length must be evenly divisible by 420.
(d) Various COPY commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e) Extraneous data following the “F” record will result in media being returned for replacement.
(f) Records may not span blocks.
(g) No more than 250,000 documents per cartridge and per file.
.03 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a suggested filename.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
.05 If extraneous data follows the End of Transmission “F” Record, the file must be returned for replacement. T h e r e f o r e ,
IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data
when submitting information returns.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4mm cassettes will be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT Data Storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4 Gb.
(e) The general specifications for 8mm cartridges will also apply to the 4mm cart r i d g e s .
.08 Various Quarter Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(a) QIC cartridges will be 4 by 6 .
(b) QIC cartridges must meet the following specifications:
Size
Tracks
Density
Capacity
QIC-11
4/5
4 (8000 BPI)
22Mb or 30Mb
QIC-24
8/9
5 (8000 BPI)
45Mb or 60Mb
QIC-120
15
15 (10000 BPI)
120Mb or 200Mb
QIC-150
18
16 (10000 BPI)
150Mb or 250Mb
QIC-320
26
17 (16000 BPI)
320Mb
QIC-525
26
17 (16000 BPI)
525Mb
QIC-1000
30
21 (36000 BPI)
1Gb
QIC-1350
30
18 (51667 BPI)
1.3Gb
QIC-2Gb
42
34 (40640 BPI)
2Gb
(c) The general specifications that apply to 8mm cartridges will also apply to QIC cart r i d g e s .

Sec. 5. 5 1/4-inch And 3 1/2-inch Diskette Specifications
.01 To be compatible, a diskette file must meet the following specifications:
(a) 5 1/4- or 3 1/2-inches in diameter.
(b) IRS recommends data be re c o rded in standard ASCII code. However, if data is re c o rded using EBCDIC, a 5 1/4-inch
diskettes must be used and a 1024 byte sector would be valid for System 36 or A S 4 0 0 .
The following command to format the diskette into a 1024 byte sector is: INIT IRSTA X , , F O R M AT 2
The save commands are as follows:
(1) The save command for System 36 is SAV E .
(2) The save command for AS400 is SAF36F.
(c) Records must be a fixed length of 420 bytes per record.
(d) Delimiter character commas (,) must not be used.
(e) Positions 419 and 420 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
(f) Filename of IRSTAX must be used. Do not enter any other data in this field. If a file will consist of more than one
diskette, the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the

1997–30 I.R.B.

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diskettes within the file. For example, the first diskette will be named IRSTAX.001, the second diskette will be
I R S TAX.002, etc.
(g) A diskette file may consist of multiple diskettes as long as the file naming conventions are followed.
(h) Diskettes must meet one of the following specifications:
Capacity
Tracks
Sides/Density
Sector Size
1.44 mb
96tpi
hd
512
1.44 mb
135tpi
hd
512
1.2 mb
96tpi
hd
512
720 kb
48tpi
ds/dd
512
360 kb
48tpi
ds/dd
512
320 kb
48tpi
ds/dd
512
180 kb
48tpi
ss/dd
512
160 kb
48tpi
ss/dd
512
.02 IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files (See Note). If extraneous data follows the End of Transmission “F” Record, the file must be returned for replacement.
.03 IRS/MCC prefers that 5 1/4- and 3 1/2-inch diskettes be created using MS-DOS; however, diskettes created using other
operating systems may be acceptable. IRS/MCC has equipment that can convert diskettes created under most operating systems
to the appropriate MS-DOS format. IRS/MCC strongly recommends that transmitters submit a test file for 5 1/4- and 3 1/2-inch
diskettes, especially if their data was not created using MS-DOS.
☞ Note: 3 1/2-inch diskettes created on a System 36 or AS400 are not acceptable.
.04 Transmitters are encouraged to use high density diskettes. Low density diskettes are acceptable but must be formatted in
low density.
.05 Transmitters should check media for viruses before submitting media to IRS/MCC.

Sec. 6. Payer/Transmitter “A” Record —- General Field Descriptions
.01 The Payer/Transmitter “A” Record identifies the payer and transmitter of the magnetic media file 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 depends on the number of payers and the different types of returns being reported. The payment amounts for one payer and for one type of return should 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 a payer is filing Form
1099–DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one “A” Record, not three separate “A” Records. For “B” Records that do not contain payment amounts for all three amount codes, enter zeros for those which
have no payment to be reported.
.04 The first record on the file must be an “A” Record. A transmitter may include “B” Records for more than one payer on a
tape or diskette. However, each g ro u p of “B” Records must be preceded by an “A” Record and followed by an End of Payer “C”
Record. Asingle tape or diskette may contain different types of returns but the types of returns must not be intermingled. As e parate “A” Record is required for each payer and each type of return being reported.
.05 All records must be a fixed length of 420 positions.
.06 An “A” Record may be blocked with “B” Records, however, the initial record on a file must be an “A” Record. IRS/MCC
will accept an “A” Record after a “C” Record.
.07 Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.
.08 All alpha characters entered in the “A” Record must be upper- c a s e.
.09 When filing Form 1098, Mortgage Interest Statement, the “A” Record will reflect the name of the recipient of the interest
referred to as the payer in these instructions. The “B” Record will reflect the individual paying the interest (borrower/payer of
record) and the amount paid.
☞ Note: For all fields marked Required, the transmitter must provide the information described under Description
and Remarks. For those fields not marked Required, a transmitter must allow for the field, but may be instructed to
enter blanks or z e ros in the indicated media position(s) and for the indicated length. All records are now a fixed length of
420 positions.

1997–30 I.R.B.

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July 28, 1997

Record Name: Payer/Tr a n s m i t t e r “A” Record
Field Position

Field Title

Length

Description and Remarks

1

Record Ty p e

1

Required. Enter “A.”

2–3

Payment Ye a r

2

R e q u i re d. Enter “97” (unless reporting prior year
data).

4–6

Reel Sequence Number

3

The reel sequence number is incremented by 1 for each
tape or diskette on the file starting with 001. The transmitter may enter blanks or zeros in this field.
IRS/MCC bypasses this information. Indicate the
proper sequence on the external media label.

7–15

P a y e r’s T I N

9

Required. Must be the valid nine-digit Taxpayer Identification Number assigned to the payer. Do not enter
blanks, hyphens, or alpha characters. All zeros,
ones, twos, etc., will have the effect of an incorrect
TIN.

☞ Note: For foreign entities that are not required to have a TIN, this field must be blank. H o w e v e r, the Foreign Entity Indic a t o r, position 49 of the “A” Record, must be set to “1” (one).
16–19

Payer Name Control

4

The Payer Name Control can be obtained only from the
mail label on the Package 1099 that is mailed to most
payers each December. To distinguish between Package 1099 and the 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 magnetically or
e l e c t r o n i c a l l y. 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 a Package 1099 has not been received or the
Payer Name Control is unknown, this field must be
blank filled.

20

Last Filing Indicator

1

Enter a “1” (one) if this is the last year the payer will
file; otherwise, enter blank. Use this indicator if the
payer will not be filing information returns under this
payer name and TIN in the future either magnetically,
e l e c t r o n i c a l l y, or on paper.

21

Combined Federal/State 1
Filer

R e q u i re d for the Combined Federal/State Filing Program. Enter “1” (one) if participating in the Combined
Federal/State Filing Program; otherwise, enter blank.
Refer to Part A, Sec. 16, for further information. Forms
1098, 1099–A, 1099–B, 1099–C, 1099–LT C ,
1099–MSA, 1099–S, 5498–MSA and W–2G cannot be
filed under this program.

22

Type of Return

R e q u i re d. Enter the appropriate code from the table
below:

1997–30 I.R.B.

1

39

July 28, 1997

23–31

Amount Codes
(See Note)

9

Type of Return

Code

1098
1099–A
1099–B
1099–C
1099–DIV
1099–G
1099–INT
1099–LTC
1099–MISC
1099–MSA
1099–OID
1099–PATR
1099–R
1099–S
5498
5498–MSA
W–2G

3
4
B
5
1
F
6
T
A
M
D
7
9
S
L
K
W

Required. Enter the appropriate amount codes for the
type of return being reported. Generally, for each
amount code entered in this field, a corresponding payment amount must appear in the Payee “B” Record.
In most cases, the box numbers on paper information
returns correspond with the amount codes used to file
m a g n e t i c a l l y / e l e c t ro n i c a l l y. However, if discre p a ncies occur, this revenue procedure governs.

Example of Amount Codes:
If position 22 of the Payer/Transmitter “A” Record is “A” (for 1099–MISC) and positions 23–31 are
“1247bbbbb”, this indicates the payer is reporting any or all four payment amounts (1247) in all of the
following “B” Records. (In this example, “b” denotes blanks in the designated positions. Do not
enter the letter “b”.)
The first payment amount field will represent rents;
the second will represent royalties;
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 nonemployee compensation;
and
the eighth and ninth will be all “0” (zeros).
Enter the amount codes in ascending sequence (i.e., 1247bbbbb, left justify information, and fill unused positions with blanks. For further clarification of the amount codes, contact IRS/MCC. (In this
example, “b” denotes blanks in the designated positions. Do not enter the letter “b.”)
☞ Note: Atype of return and an amount code must be present in every Payer “A” Record even if no money amounts are
being reported. For a detailed explanation of the information to be reported in each amount code, refer to the 1997 “Instructions for Forms 1099, 1098, 5498, and W–2G.”

Amount Codes Form 1098 —
Mortgage Interest Statement

1997–30 I.R.B.

For Reporting Mortgage Interest Received From Payers/
Borrowers (Payer of Record) on Form 1098:

40

July 28, 1997

Amount Code
1
2
3

Amount Codes Form 1099–A —
of Secured Property (See Note)

Amount Type
Mortgage interest received from
payer(s)/borrower(s)
Points paid on purchase of principal residence
Refund (or credit) of overpaid interest

For Reporting the Acquisition or Acquisition or Abandonment
Abandonment of Secured Property on Form 1099–A:
Amount Code
2
4

Amount Type
Balance of principal outstanding
Fair market value of property

☞ Note: If, in the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured
property for one debtor and the filer would be required to file both Forms 1099–A and 1099–C, the filer is required to file
Form 1099–C only. See the 1997 “Instructions for Forms 1099, 1098, 5498, and W–2G” for furtherinformation on coordination with Form 1099–C.
Amount Codes Form 1099–B Proceeds From
Broker and Barter Exchange Transactions

For Reporting Payments on Form 1099–B:
Amount Code
2
3
4

6

7
8
9

Amount Type
Stocks, bonds, etc. (For forward
contracts, See Note 1)
Bartering (Do not report negative
amounts.)
Federal income tax withheld
(backup withholding) (Do not report negative amounts.)
Profit (or loss) realized on closed
regulated futures or foreign currency contracts in 1997 (See Note
2).
Unrealized profit (or loss) on open
contracts-12/31/96 (See Note 2).
Unrealized profit (or loss) on open
contracts- 12/31/97 (See Note 2).
Aggregate profit (or loss) (See
Note 2).

☞ Note 1: The payment amount field associated with Amount Code 2 may be used to represent a loss from a closing transaction on a forward contract. Refer to the “B” Record — General Field Descriptions, Payment Amount Fields, for instructions on reporting negative amounts.
☞ Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used for the reporting of regulated futures or foreign currency
contracts.
Amount Codes Form 1099–C —
Cancellation of Debt (See Note 1)

For Reporting Cancellation of Debt on Form 1099–C:
Amount Code
Amount Type
2
Amount of debt canceled
3
Interest if included in Amount
Code 2
7
Fair market value of property (See
Note 2)

☞ Note 1: If, in the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured
property for one debtor and the filer would be required to file both Forms 1099–C and 1099–A (Acquisition or Abandon-

1997–30 I.R.B.

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July 28, 1997

ment of Secured Property), the filer is required to file Form 1099-C only. See the 1997 “Instructions for Forms 1099, 1098,
5498, and W–2G” forfurther information on coordination with Form 1099–A.
☞ Note 2: Amount Code 7 will be used only if a combined Form 1099–Aand 1099–C is being filed.
Amount Codes Form 1099–DIV —
Dividends and Distributions

For Reporting Payments on Form 1099–DIV
:
Amount Code
1
2
3
4
5
6
7
8
9

Amount Type
Gross dividends and other distributions on stock (See Note)
Ordinary dividends (See Note)
Capital gain distributions (See
Note)
Nontaxable distributions (if determinable) (See Note)
Investment expenses (See Note)
Federal income tax withheld
(backup withholding)
Foreign tax paid
Cash liquidation distributions
Noncash liquidation distributions
(show fair market value)

☞ Note: Amount Code 1 must be present (unless the payer is using Amount Codes 8 or 9 only) and must equal the sum of
amounts reported forAmount Codes 2, 3, 4, and 5. If an amount is present for Amount Code 1, there must be an amount
present forAmount Codes 2–5, as applicable.
Amount Codes Form 1099–G — Certain Government
Payments

For Reporting Payments on Form 1099–G:
Amount Code
1
2
4

6
7
Amount Codes Form 1099–INT — Interest Income

For Reporting Payments on Form 1099–INT:
Amount Code
1
2
3
4
5

1997–30 I.R.B.

Amount Type
Unemployment compensation
State or local income tax refunds,
credits, or offsets
Federal income tax withheld
(backup withholding) or voluntary
withholding on unemployment
compensation or Commodity
Credit Corporation Loans, or cer tain crop disaster payments
Taxable grants
Agriculture payments

42

Amount Type
Interest income not included in
Amount Code 3
Early withdrawal penalty
Interest on U.S. Savings Bonds
and Treasury obligations
Federal income tax withheld
(backup withholding)
Foreign tax paid

July 28, 1997

Amount Codes Form 1099–LTC — Long-Term Care and
Accelerated Death Benefits

For Reporting Payments on Form 1099–LTC:
Amount Code
1
2

Amount Codes Form 1099–MISC — Miscellaneous Income

Amount Type
Gross long-term care benefits paid
Accelerated death benefits paid

For Reporting Payments on Form 1099–MISC:
Amount Code
1
2
3
4

5
6
7

8
9

Amount Type
Rents (See Note 1)
Royalties (See Note 2)
Other income
Federal income tax w i t h h e l d
(backup withholding or withholding on payments of Indian gaming
profits)
Fishing boat proceeds
Medical and health care payments
Nonemployee compensation or
crop insurance proceeds (See Note
3)
Substitute payments in lieu of dividends or interest
Excess golden parachute payments

☞ Note 1: If reporting the Direct Sales Indicator only, use Type of Return Code A for 1099–MISC in position 22, and
Amount Code 1 in position 23 of the Payer “A” record. All payment amount fields in the Payee “B” record will contain
zeros.
☞ Note 2: Do not report timber royalties under a “pay-as-cut” contract; these must be reported on Form 1099–S.
☞ Note 3: Amount Code 7 is normally used to report nonemployee compensation. However,Amount Code 7 may also be
used to report crop insurance proceeds. See positions 4–5 of the “B” Record for instructions. If nonemployee compensation
and crop insurance proceeds are being paid to the same payee, a separate “B” Record for each transaction is required.
Amount Codes Form 1099–MSA Distributions From
Medical Savings Accounts

For Reporting Distributions from Medical Savings Accounts
on Form 1099–MSA
Amount Code
1
2

Amount Type
Gross distribution
Earnings on excess contributions

Amount Codes Form 1099–OID — Original Issue Discount

For Reporting Payments on Form1099–OID:
Amount Code
Amount Type
1
Original issue discount for 1997
2
Other periodic interest
3
Early withdrawal penalty
4
Federal income tax withheld
(backup withholding)

Amount Codes Form 1099–PATR — Taxable Distributions
Received From Cooperatives

For Reporting Payments on Form 1099–PATR:
Amount Code
1
2
3
4
5

1997–30 I.R.B.

43

Amount Type
Patronage dividends
Nonpatronage distributions
Per-unit retain allocations
Federal income tax withheld
(backup withholding)
Redemption of nonqualified notices and retain allocations

July 28, 1997

Pass-Through Credits
(See Note)
6
7
8
9

For filers’use
Investment credit*
Work opportunity credit**
Patron’sAlternative Minimum Tax
(AMT) adjustment

*The title of Amount Code 7 has been changed from Energy investment credit to Investment credit.
**The title of Amount Code 8 has been changed from Jobs credit to Work opportunity credit.
☞ Note: Amount Codes 6, 7, 8, and 9 are reserved for the patron’s share of unused credits that the cooperative is passing
through to the patron. Other credits, such as the Indian employment credit may be reported in Amount Code 6. The title of
the credit reported in Amount Code 6 should be reported in the Special Data Entries Field in the Payee “B” Record. The
amounts shown forAmount Codes 6, 7, 8, and 9 must be reported to the payee. These Amount Codes and the Special Data
Entries Field are for the convenience of the filer. This information is not needed by IRS/MCC.
Amount Codes Form 1099–R — Distributions From
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.

For Reporting Payments on Form 1099-R:

Amount Code
1
2
3
4
5
6
8
9

Amount Type
Gross distribution (See Note 1)
Taxable amount (See Note 2)
Capital gain (included in A m o u n t
Code 2)
Federal income tax withheld (See
Note 3)
Employee contributions or insurance premiums
Net unrealized appreciation in employer’s securities
Other
Total employee contributions

☞ Note 1: If the payment shown for Amount Code 1 is a total distribution, enter a “1” (one) in position 47 of the “B”
Record. An amount must be shown in Amount Field 1 unless reporting an amount ONLYforAmount Code 8.
☞ Note 2: 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 contributions, enter the value of the stock in Amount Code 1, enter “0” (zero) in Amount
Code 2, and enter the employee’s contributions in Amount Code 5. If the taxable amount cannot be determined, enter a “1”
(one) in position 48 of the “B” Record. If reporting an IRA, SEP, or SIMPLE distribution, generally include the amount of
the distribution in the Taxable Amount (Payment Amount Field 2, positions 61–70) and enter a “1” (one) in the
IRA/SEP/SIMPLE Indicator Field (position 44). A“1” (one) may be entered in the Taxable Amount Not Determined Indicator Field (position 48) of the Payee “B” Record, but the amount of the distribution must still be reported in Payment Amount
Fields 1 and 2. See the explanation for Box 2a of Form 1099–R in the 1997 “Instructions for Forms 1099, 1098, 5498, and
W–2G” for more information on reporting the taxable amount.
☞ Note 3: See the l997 “Instructions for Forms 1099, 1098, 5498, and W–2G” for information concerning Federal income
tax withheld for Form 1099–R.
☞ Note : For payers who wish to report state or local income tax, see Part B, Section 8 (7) Payee “B” Record — Record
Layout Positions 322–420 Form 1099–R.
Amount Codes Form 1099–S — Proceeds From Real Estate
Transactions

For Reporting Payments on Form 1099–S:
Amount Code
2
5

Amount Type
Gross proceeds (See Note)
Buyer’s part of real estate tax

☞ Note: Include payments of timber royalties made under a “pay-as-cut” contract, reportable under section 6050N. If
timber royalties are being reported, enter “TIMBER” in the description field of the “B” Record. For more information, see
Announcement 90–129, 1990–48 I.R.B. 10.

1997–30 I.R.B.

44

July 28, 1997

Amount Codes Form 5498 — IRA, SEP, or SIMPLE
Retirement Plan Information (See Note)

For Reporting Payments on Form 5498:
Amount Code
1
2
3
4
6
7

Amount Type
Regular IRA contributions made
in 1997 and 1998 for 1997.
IRA, S E P, or SIMPLE ro l l o v e r
contributions
Life insurance cost included in
Amount Code 1
Fair market value of account
SEP contributions
SIMPLE contributions

☞ Note: For information regarding Inherited IRAs, re f e r to the 1997 “Instructions for Forms 1099, 1098, 5498, and
W–2G” and Rev. Proc. 89–52, 1989–2 C.B. 632. Beneficiary information must be given in the Payee Name Line Field of the
“B” Record.
If reporting IRA contributions for a Desert Storm/Shield participant for other than 1997 or an Operations Joint Guard
(OJG) (Bosnia Region) participant, enter “DS” for Desert Storm or “JG” for Joint Guard, the year for which the contribution was made, and the amount of the contribution in the Special Data Entries Field of the “B” Record. Do not enterthe contributions in Amount Code 1.
For information concerning Desert Storm/Shield participant reporting, refer to the 1994 “Instructions for Forms 1099,
1098, 5498, and W–2G,” or Notice 91–17, 1991–1 C.B. 319. The instructions for filing Form 5498 for Desert Storm/Shield
participants will also apply to participants of Operations Joint Guard (OJG) of the Bosnia Region.
Amount Codes Form 5498–MSA Medical Savings Account
Information

For Reporting Contributions to Medical Savings Accounts
Amount Code
1
2
3
4

5

Amount Type
Employee MSA c o n t r i b u t i o n s
made in 1997 and 1998 for 1997
Total MSA contributions made in
1997
Total MSA contributions made in
1998 for 1997
MSA rollover contributions (not
included in Amount Code 1, 2, or
3) (See Note 1)
Fair market value of account (See
Note 2)

☞ Note 1: This is the amount of any rollover made to this MSA in 1997 after a distribution from another MSA. For detailed information on reporting, see 1997 “Instructions for Filing Forms 1099, 1098, 5498 and W–2G.”
☞ Note 2: This is the fair market value (FMV) of the account at the end of 1997.
Amount Codes Form W–2G — Certain Gambling Winnings

For Reporting Payments on Form W–2G:
Amount Code
1
2
3
7

Amount Type
Gross winnings
Federal income tax withheld
State income tax withheld (See
Note)
Winnings from identical wagers

☞ Note: State income tax withheld is added for the convenience of the payer but need not be reported to IRS/MCC.
32

1997–30 I.R.B.

Test Indicator

1

Required. Enter “T” if this is a test file, otherwise, enter
a blank.

45

July 28, 1997

33

Service Bureau
Indicator

1

Enter “1” (one) if a service bureau was used to develop
and/or transmit files, otherwise, enter blank. See Part
A, Sec. 17 for the definition of service bureau.

34–41

Blank

8

Enter blanks.

42–43

Magnetic Tape Filer
Indicator

2

Required for magnetic tape/tape cartridge filers only.
Enter the letters “LS” (in uppercase only). Use of this
field by filers using other types of media will be acceptable but is not required.

44–48

Transmitter Control
Code (TCC)

5

R e q u i re d. Enter the five character alpha/numeric
Transmitter Control Code assigned by IRS/MCC. A
TCC must be obtained to file data on this program. Do
not enter more than one TCC per file.

49

Foreign Entity
Indicator

1

Enter a “1” (one) if the payer is a foreign entity and income is paid by the corporation to a U.S. resident. If
the payer is not a foreign entity, enter a blank (See
Note).

☞ Note: If payers erroneously report entities as foreign, they may be subject to a penalty for providing incorrect information to IRS. Therefore, payers must be sure to code only those records as foreign entities that should be coded.
50–89

First Payer Name Line

40

Required. Enter the name of the payer whose TIN appears in positions 7–15 of the “A” Record. Any extraneous information must be deleted. Left justify information, and fill unused positions with blanks. (Filers should
not enter a transfer agent’s name in this field. Any transfer agent’s name should appear in the Second Payer
Name Line Field.)

☞ Note: When reporting Form 1098, Mortgage Interest Statement, the “A” Record will reflect the name and TIN of the
recipient of the interest/the filerof Form 1098 (the payer). 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 filer of Form 1099–S) and the “B” Record will reflect the seller/transferor.
90–129

Second Payer Name Line 40

If the Transfer (or Paying) Agent Indicator (position 130)
contains a “1” (one), this field must contain the name of
the transfer (or paying) agent. If the indicator contains a
“0” (zero), this field may contain either a continuation of
the First Payer Name Line or blanks. Left justify information and fill unused positions with blanks.

130

Transfer Agent Indicator

R e q u i re d. Identifies the entity in the Second Payer
Name Line Field. (See Part A, Sec. 17 for a definition of
transfer agent.)

1

Code

Meaning

1

The entity in the Second Payer
Name Line Field is the transfer (or
paying) agent.
The entity shown is not the transfer
(or paying) agent (i.e.,the Second
Payer Name Line Field contains either a continuation of the First Payer
Name Line Field or blanks).

0 (zero)

1997–30 I.R.B.

46

July 28, 1997

131–170

Payer Shipping
Address

40

Required. If the Transfer Agent Indicator in position
130 is a “1” (one), enter the shipping address of the
transfer (or paying) agent. Otherwise, enter the actual
shipping address of the payer. The street address should
include number, street, apartment or suite number (or P.
O. Box if mail is not delivered to street address). Left
justify information, and fill unused positions with blanks.

For U.S. addresses, the payer city, state, and ZIP code must be reported as a 29, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payer city, state, and ZIP code. For foreign addresses, filers may use the payer city, state,
and ZIPcode as a continuous 40 position field. Enter information in the following order: city, province or state, postal code, and the
name of the country. When reporting a foreign address, the Foreign Entity Indicator in position 49 must contain a “1” (one).
171–199

Payer City

29

Required. If the Transfer Agent Indicator in position
130 is a “1” (one), enter the city, town, or post office of
the transfer agent. Otherwise, enter the city, town, or
post office of the payer. Left justify information, and fill
unused positions with blanks. Do not enter state and ZIP
code information in this field.

200–201

Payer State

2

Required. Enter the valid U.S. Postal Service state abbreviations for states.

202–210

Payer ZIP Code

9

Required. Enter the valid nine digit ZIP code assigned
by the U.S. Postal Service. If only the first five digits are
known, left justify information and fill the unused positions with blanks. For foreign countries, alpha characters
are acceptable as long as the filer has entered a “1” (one)
in the Foreign Entity Indicator, located in Field Position
49 of the “A” Record.

211–290

Transmitter Name

80

Required if the payer and the 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 transmitter must be reported in the same manner throughout
the entire file. Left justify information, and fill unused
positions with blanks. If the payer and transmitter are
the same, this field may be blank.

291–330

Transmitter Mailing
Address

40

Required if the payer and transmitter are not the same.
Enter the mailing address of the transmitter. Street address should include number, street, apartment or suite
number (or P.O. Box if mail is not delivered to street address). Left justify information, and fill unused positions
with blanks. If the payer and transmitter are the same,
this field may be blank.

331–359

Transmitter City

29

Required if the payer and transmitter are not the same.
Enter the city, town, or post office of the transmitter.
Left justify information and fill unused positions with
blanks. If the payer and transmitter are the same, this
field may be blank.

360–361

Transmitter State

2

Required if the payer and transmitter are not the same.
Enter the valid U.S. Postal Service state abbreviation for
states.

362–370

Transmitter ZIPC o d e

9

Required if the payer and transmitter are not the same.

1997–30 I.R.B.

47

July 28, 1997

Enter the valid nine digit ZIP Code assigned by the U.S.
Postal Service. If only the first five digits are known, left
justify information and fill the unused positions with blanks.
371–385

Payer’s Phone Number
and Extension

15

Enter the payer’s phone number and extension.

386–418

Blank

33

Enter blanks.

419–420

Blank

2

Enter blanks or carriage return/line feed (cr/lf).

Sec. 7. Payer/Transmitter “A” Record - Record Layout
Record
Type
1

Payment
Year
2–3

Combined Federal/State
Filer

Type
of Return

21

22

Blank

Magnetic Tape
Filer Indicator

34–41

Transfer Agent
Indicator
130

Transmitter
City
331–359

42–43

Payer Shipping
Address
131–170

Transmitter
State
360–361

Reel Sequence
Number

Payer’s
TIN

Payer Name
Control

4–6

7–15

16–19

Amount
Codes

Last Filing
Indicator
20

Test
Indicator

Service Bureau
Indicator

32

33

23–31

Transmitter
Control Code

Foreign Entity
Indicator

First Payer
Name Line

Second Payer
Name Line

44–48

49

50–89

90–129

Payer
City

Payer
State

Payer
ZIPCode

Transmitter
Name

171–199

200–201

202–210

211–290

Transmitter
ZIPCode

Payer Phone
Number & Extension

Blank

Blank or
CR/LF

362–370

371–385

386–418

419–420

Sec. 8. Payee “B” Record — General Field Descriptions and Record Layouts
.01 The “B” Record contains the payment information from the information returns. When filing information returns, the format
for the “B” Records will remain constant and is a fixed length of 420 positions. The record layout for positions 1 through 321 is the
same for all “B” Records. Positions 322 through 420 vary for Forms 1099–A, 1099–B, 1099–C, 1099–LTC, 1099–OID, 1099–S, and
W–2G to accommodate variations within these forms. In the “A” Record, the amount codes that appear in positions 23 through 31
will be left-justified and filled with blanks. In the “B” Record, the filer must allow for all nine Payment Amount Fields. For those
fields not used, enter “0s” (zeros). For example, a payer reporting on Form 1099–MISC, should enter “A” in field position 22 of the
“A” Record, Type of Return. If reporting payments for Amount Codes 1, 2, 4, and 7, the payer would report field positions 23 through
31 of the “A” Record as “1247bbbbb.” (In this example, “b” denotes blanks. Do not enter the letter “b”) In the “B” Record:
Positions 51 through 60 for Payment Amount 1 will represent rents.
Positions 61–70 for Payment Amount 2 will represent royalties.
Positions 71–80 for Payment Amount 3 will be “0s” (zeros).
Positions 81–90 for Payment Amount 4 will represent Federal income tax withheld.

1997–30 I.R.B.

48

July 28, 1997

Positions 91–110 for Payment Amounts 5 and 6 will be “0s” (zeros).
Positions 111–120 for Payment Amount 7 will represent nonemployee compensation.
Positions 121–140 for Payment Amounts 8 and 9 will be “0s” (zeros).
.02 The following specifications include a field in the payee records called “Name Control” in which the first four characters of
the payee’s surname are to be entered by the filer.
.03 If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Compliance with the following will facilitate IRS computer programs in generating the name control:
(a) The surname of the payee whose TIN is shown in the “B” Record should always appear first. If, however, the records have
been developed using the first name first, the filer 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, EIN or ITIN) is shown in the “B” Record
must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second Payee Name Line.
.04 See Part A, Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).
.05 Afield 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 personal use of the filer. 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 option to use
the Special Data Entry Field. If this field is coded, it will not affect the processing of the “B” Records.
.06 Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A,
Sec. 16, to participate in this program. Filers may not file Forms 1098, 1099–A, 1099–B, 1099–C, 1099–LTC, 1099–MSA, 1099–S,
5498–MSA, and W–2G under the Combined Federal/State Filing Program.
.07 All alpha characters in the “B” Record must be uppercase.
.08 Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as 0000001000 in the payment amount
field.
.09 IRS strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous notices. Transmitters should be especially careful that the names, TINs, account numbers, types of income, and income amounts are
correct.
.10 When reporting Form 1098, Mortgage Interest Statement, the “A” Record will reflect the name and TIN of the recipient of
the interest, the filer of the Form 1098 (the payer). The “B” Record will reflect the individual paying the interest (borrower/payer of
record) and the amount paid. For Form 1099–S, the “A” Record will reflect the person responsible for reporting the transaction (the
filer of the Form 1099–S) and the “B” Record will reflect the seller/transferor.
☞ Note: For all fields marked Required, the transmitter must provide the information described under Description and
Remarks. For those fields not marked Required, the transmitter must allow for the field, but may be instructed to enter
blanks or zeros in the indicated position(s) and for the indicated length. All records are now a fixed length of 420 positions.
Record Name: Payee “B” Record
Field Position

Field Title

Length

Description and Remarks

1

Record Type

1

Required. Enter “B.”

2–3

Payment Year

2

Required. Enter “97” (unless reporting prior year data).

4–5

Document Specific/
Distribution Code

2

Required for Forms 1099–G, 1099–MISC (for Crop Insurance Proceeds only), 1099–MSA, 1099–R and W–2G.
For all other forms, or if not used, enter blanks.

Tax Year of Refund
for (Form 1099–G only)

For Form 1099–G, use only for reporting the tax year
which the refund*, credit, or offset (Amount Code 2) was
issued. Enter in position 4; position 5 must be blank. If
the refund, credit, or offset is not attributable to income
from a trade or business, enter the numeric year from the
table below for which the refund, credit, or offset was issued (e.g., for 1996, enter 6). If the refund, credit or offset is exclusively attributable to income from a trade or
business and is not of general application, enter the
alpha equivalent of the year from the table below (e.g.,
for 1996, enter F).

1997–30 I.R.B.

49

July 28, 1997

Code For Tax Year Which Refund Was Issued
Tax Year
For Which
Refund Was
Issued
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996

Code
For
General
Refund*
7
8
9
0
1
2
3
4
5
6

Code For
Trade/Business
Refund (Alpha
Equivalent)*
G
H
I
J
A
B
C
D
E
F

*Be sure the distribution code reflects the tax yearf o r which the REFUND was made, not the tax yearof the Form 1099–G.
Crop Insurance Proceeds
(Form 1099-MISC only)

4–5

Distribution Code contd.
(Form 1099-MSAo n l y )
(For a detailed
explanation of the
distribution codes,
see the 1997
“ I n s t ructions for
Forms 1099, 1098,
5498, and W- 2 G . )

For Form 1099-MISC, enter “1” (one) in position 4 if the
payments reported for Amount Code 7 are crop insurance
proceeds. Position 5 will be blank. Crop insurance pro ceeds are the only type of payment for Form 1099MISC requiring a Document Specific/Distribution
Code.
2

For Form 1099-MSA, enter the applicable code in position 4. Position 5 will be blank.
Category
Normal distribution
Excess contributions
Disability
Death
Prohibited transaction

For Form 1099-R, enter the appropriate distribution
code(s). More than one code may apply for Form 1099-R.
If only one code is required, it must be entered in position 4
and position 5 must be blank. Enter at least one (1)
distribution code. A blank in position 4 is not acceptable.
Enter the applicable code from the table that follows.
Position 4 must contain a numeric code in all cases except
when using P, D, E, F, G, H, L, or S. (L and S have been
added for TY97.) Distribution Code A, B, or C, when applicable, must be entered in position 5 with the applicable
numeric code in position 4. When using Code P for an
IRA distribution under section 408(d)(4) of the Internal
Revenue Code, the filer may also enter Code 1 if applicable. Only three numeric combinations are acceptable,
codes 8 and 1, codes 8 and 2 and codes 8 and 4, on one return. These three combinations can be used only if both
codes apply to the distribution being reported. If more
than one numeric code is applicable to different parts of a
distribution, report two separate “B” Records. Distribution
Codes E, F, and H cannot be used in conjunction with
other codes. Distribution Code G may be used in conjunction with Distribution Code 4 only, if applicable.

(Form 1099–R only)
(For a detailed explanation
of the distribution codes,
see the 1997 “Instructions
for Forms 1099, 1098, 5498
andW–2G.”)

1997–30 I.R.B.

Code
1
2
3
4
5

50

July 28, 1997

Category

Code

Early distribution, no known exception
Early distribution, exception applies
(as defined in section 72(q), (t), or
(v) of the Internal Revenue Code (other
than disability or death)
Disability
Death (includes payments
to an estate or other beneficiary)
Prohibited transaction
Section 1035 exchange
Normal distribution
Excess contributions plus earnings/excess
deferrals (and/or earnings) taxable in 1997
PS 58 costs
Excess contributions plus earnings/excess
deferrals taxable in 1996
May be eligible for 5- or 10-year tax option
May be eligible for death benefit exclusion
(See Note 1)
May be eligible for both Aand B (See Note 1)
Excess contributions plus earnings/excess
deferrals taxable in 1995
Excess annual additions under section 415
Charitable gift annuity
Direct rollover to IRA
Direct rollover to qualified plan or tax-sheltered
annuity
Loans treated as deemed distributions under
section 72(p)
Early distribution from a SIMPLE (IRA in first
2 years, no known exception)

1*
2*

3*
4*
5*
6
7*
8*
9
P*
A
B
C
D*
E
F
G
H
L
S*

*If reporting an IRA, SEP, or SIMPLE distribution, code a “1” (one) in position 44 of the “B” Record.
☞ Note 1: Do not use code B or C for payments with respect to employees who died afterAugust 20, 1996.

6

1997–30 I.R.B.

Type of Wager (Form W–2G Only)

For Form W–2G, enter the applicable code in position 4.
Position 5 will be blank.
Category
Code
Horse race track (or off-rack betting of a
1
horse track nature)
Dog race track (or off- track betting of a dog
2
track nature)
Jai-alai
3
State-conducted lottery
4
Keno
5
Bingo
6
Slot machines
7
Any other type of gambling winnings
8

2nd TIN Notice

For Forms 1099–B, 1099–DIV, 1099–INT, 1099–MISC,
1099–OID, and 1099–PATR only. Enter “2” to indicate
notification by IRS/MCC twice within three calendar
years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.

1

51

July 28, 1997

7

Corrected Return
Indicator

1

Indicate a corrected return.
Code

Definition

G

If this is a one- transaction correction or the first of a two-transaction correction
If this is the second transaction
of a two transaction correction
If this is not a return being submitted to correct information already processed by IRS.

C
Blank

☞ Note: C, G, and non-coded records must be reported using separate Payer “A” Records. Refer to Part A, Sec. 13, for
specific instructions on how to file corrected returns.
8–11

Name Control

4

If determinable, enter the first four (4) characters of the
surname of the person whose TIN is being reported in
positions 15–23 of the “B” Record; otherwise, enter
blanks. This usually is the payee. If the name that corresponds to the TIN is not included in the first or second
payee name line and the correct name control is not provided, a backup withholding notice may be generated for
the record. 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, other than a sole
proprietorship, 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. Adash (-) and an ampersand (&) are
the only acceptable special characters. Surname prefixes
are considered part of the surname, e.g., for Van Elm, the
name control would be VANE.

☞ Note: Although extraneous words, titles, and special characters are allowed (i.e., Mr., Mrs., Dr., apostrophe [‘], or dash
[-]), this information may be dropped during subsequent IRS/MCC processing.
The following examples may be helpful to filers in developing the Name Control:
Name

Name Control

Individuals:
Jane Brown
John A. Lee
James P. En, Sr.
John O’Neill
Mary Van Buren
Juan De Jesus
Gloria A. El-Roy
Mr. John Smith
Joe McCarthy
Pedro Torres-Lopes
Maria Lopez Moreno**
Binh To La
Nhat Thi Pham
Mark D’Allesandro

BROW
LEE*
EN*
ONEI
VANB
DEJE
EL-R
SMIT
MCCA
TORR
LOPE
LA*
PHAM
DALL

The First National Bank
The Hideaway

FIRS
THEH

Corporations:

1997–30 I.R.B.

52

July 28, 1997

A& B Cafe
11TH Street Inc.

A&BC
11TH

Mark Hemlock DBA
The Sunshine Club

HEML

Sole Proprietor:

Partnership:
Robert Aspen and Bess Willow
Harold Fir, Bruce Elm, and
Joyce Spruce et al Ptr

ASPE

Frank White Estate
Sheila Blue Estate

WHIT
BLUE

FIR*

Estate:

Trusts and Fiduciaries:
Daisy Corporation Employee
Benefit Trust
Trust FBO The Cherryblossom
Society

DAIS
CHER

Exempt Organization:
Laborer’s Union, AFL-CIO
St. Bernard’s Methodist
Church Bldg. Fund

LABO
STBE

*Name Controls of less than four (4) significant characters must be left-justified and blank-filled.
**For Hispanic names, when two last names are shown for an individual, derive the name control from the first last name.
12

Direct Sales Indicator

1

1099 MISC only . Enter a “1” (one) to indicate 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 anywhere other than in a permanent retail
establishment. Otherwise, enter a blank.

☞ Note: If reporting direct sales only, use Type of Return “A” in Field Position 22, and Amount Code 1 in Field Position
23 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros.
13

Blank

1

Enter blank.

14

Type of TIN

1

This field is used to identify the Taxpayer Identification
Number (TIN) in positions 15–23 as either an Employer
Identification Number (EIN), or a Social Security Number (SSN) or an Individual Taxpayer Identification Num ber (ITIN). Enter the appropriate code from the following table:

Type of TIN

1997–30 I.R.B.

53

Type of Account

1

EIN

A business, organization, sole
proprietor, or other entity

2

SSN

An individual, including a sole
proprietor
or

2

ITIN

An individual required to have
a taxpayer identification num b e r, but who is not eligible to
obtain an SSN

Blank

N/A

If the type of TIN is not determinable, enter a blank.

July 28, 1997

15–23

Taxpayer Identification
Number

9

R e q u i red. Enter the nine digit Taxpayer Identification
Number of the payee (SSN, ITIN, or EIN). If an identification number has been applied for but not received, enter
blanks. Do not enter hyphens or alpha characters. A l l
zeros, ones, twos, etc. will have the effect of an incorrect
TIN. If the TIN is not available, enter blanks (See Note).

☞ Note: IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent erroneous
notices. Payers who submit data with missing TINs, and have taken the required steps to obtain this information are encouraged to attach a letterof explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC.
This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A Notices) or penalties for filing incorrect information returns.
24–43

Payer’s Account
Number For Payee

20

Enter any number assigned by the payer to the payee
(e.g., checking or savings account number). Filers are
encouraged to use this field. This number helps to distinguish individual payee records and should be unique for
each document. Do not use the payee’s TIN since this
will not make each record unique. This information is
particularly useful when corrections are filed. This number will be provided with the backup withholding notification and may be helpful in identifying the branch or
subsidiary reporting the transaction. Do not define data
in this field in packed decimal format. If fewer than
twenty characters are used, filers may either left or right
justify, filling the remaining positions with blanks.

44

Form 1099–R
IRA/SEP/SIMPLE
Indicator

1

Form 1099–R only. Enter “1” (one) if reporting a
distribution from an IRA, SEP, or SIMPLE; otherwise,
enter a blank (See Note).

☞ Note: For Form 1099-R, generally, report the total amount distributed from an IRA, SEP, or SIMPLE in Payment
Amount Field 2 (Taxable Amount), as well as Payment Amount Field 1 (Gross Distribution) of the “B” Record. Filers may
indicate the taxable amount was not determined by using the Taxable Amount Not Determined Indicator (position 48) of the
“B” Record. However, still report the amount distributed in Payment Amount Fields 1 and 2. Refer to the 1997 “Instructions
for Forms 1099, 1098, 5498, and W–2G” for exceptions.
45–46

Percentage of
Total Distribution

2

Form 1099–R only. Use this field when reporting a total
distribution to more than one person, such as when a participant is deceased and a payer distributes to two or
more beneficiaries. Therefore, if the percentage is 100,
leave this field blank. If the percentage is a fraction,
round off to the nearest whole number (e.g.,10.4 percent
will be 10 percent; 10.5 percent will be 11 percent).
Enter the percentage received by the person whose TIN
is included in positions 15-23 of the “B” Record. This
field must be right-justified, and unused positions must
be zero-filled. If not applicable, enter blanks. Filers need
not enter this information for IRA, SEP, or SIMPLE distributions or for direct rollovers.

47

Total Distribution
Indicator (See Note)

1

Form 1099–R only. Enter a “1” (one) only if the
payment shown for Amount Code 1 is a total distribution
that closed out the account; otherwise, enter a blank.

☞ Note: Atotal distribution is one or more distributions within one tax year in which the entire balance of the account is
distributed. Any distribution that does not meet this definition is not a total distribution.

1997–30 I.R.B.

54

July 28, 1997

48

Taxable Amount
Not Determined
Indicator

1

Form 1099–R only. Enter a “1” (one) only if the
taxable amount of the payment entered for Payment
Amount Field 1 (Gross Distribution) of the “B” Record
cannot be computed; otherwise, enter blank. If Taxable
Amount Not Determined Indicator is used, enter “0’s ”
(zeros) in Payment Amount Field 2 of the Payee “B”
Record unless the IRA/SEP/SIMPLE Indicator is present
(See Note). Please make every effort to compute the taxable amount.

☞ Note: If reporting an IRA, SEP, or SIMPLE distribution for Form 1099–R, the Taxable Amount Not Determined Indicator may be used; but, it is not required. If the IRA/SEP/SIMPLE Indicator is present, generally, the amount of the distribution must be reported in both Payment Amount Fields 1 and 2. Refer to the 1997 “Instructions for Forms 1099, 1098,
5498, and W–2G” for more information.
49–50

Blank

2

Enter blanks.

Payment Amount Fields
(Must be numeric)
(See Note 1)

R e q u i red. Filers should allow for all payment
amounts. For those not used, enter z e ros. For
example: If position 22, Type of Return, of the “A”
Record is “A” (for 1099–MISC) and positions 23–31,
Amount Codes, are “1247bbbbb”. This indicates the
payer is reporting any or all four payment amounts
(1247) in all of the following “B” Records. (In this example, “b” denotes blanks in the designated positions.
Do not enter the letter ‘b.’) Payment Amount 1 will represent rents; Payment Amount 2 will represent royalties;
Payment Amount 3 will be all “0’s” (zeros); Payment
Amount 4 will represent Federal income tax withheld;
Payment Amounts 5 and 6 will be all “0’s” (zeros); Payment amount 7 will represent nonemployee compensation, and Payment Amounts 8 and 9 will be all “0’s ”
(zeros). Each payment field must contain 10 numeric
characters (See Note 2). Each payment amount must
contain U.S. dollars and cents. The right-most 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 “+” (plus) or “-” (minus sign) in the
left-most 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 over punch is not used, the
number is assumed to be positive. Negative over punch
cannot be used in PC created files. 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 1: Filers must enter numeric information in all payment fields when filing magnetically or electronically. However, when reporting information on the statement to recipient, the payermay be instructed to leave a box blank. Follow the
guidelines provided in the paper instructions for the statement to recipient.
☞ Note 2: If a payeris re p o rting a money amount in excess of 9999999999* (dollars and cents), it must be re p o rted as follows:
(1) The first Payee “B” Record must contain 9999999999*.
(2) The second Payee “B” Record will contain the remaining money amount.
*DO NOT SPLIT THIS FIGURE IN HALF.

1997–30 I.R.B.

55

July 28, 1997

51–60

Payment Amount 1*

10

The amount reported in this field represents payments for
Amount Code 1 in the “A” Record.

61–70

Payment Amount 2*

10

The amount reported in this field represents payments for
Amount Code 2 in the “A” Record.

71–80

Payment Amount 3*

10

The amount reported in this field represents payments for
Amount Code 3 in the “A” Record.

81–90

Payment Amount 4*

10

The amount reported in this field represents payments for
Amount Code 4 in the “A” Record.

91–100

Payment Amount 5*

10

The amount reported in this field represents payments for
Amount Code 5 in the “A” Record.

101–110

Payment Amount 6*

10

The amount reported in this field represents payments for
Amount Code 6 in the “A” Record.

111–120

Payment Amount 7*

10

The amount reported in this field represents payments for
Amount Code 7 in the “A” Record.

121–130

Payment Amount 8*

10

The amount reported in this field represents payments for
Amount Code 8 in the “A” Record.

131–140

Payment Amount 9*

10

The amount reported in this field represents payments for
Amount Code 9 in the “A” Record.

*If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this revenue procedure govern.
141

Form 5498 IRA Indicator
(Individual Retirement
Arrangement)

1

R e q u i red. Form 5498 only. Enter ‘1’ if re p o rting a
rollover (Amount Code 2) or Fair Market Value (Amount
Code 4) for an IRA and not reporting a contribution in
Amount Code 1. Otherwise, enter a blank.

142

Form 5498 SEP
Indicator (Simplified
Employee Pension)

1

R e q u i red. Form 5498 only. Enter ‘1’ if re p o rting
a rollover (Amount Code 2) or Fair Market Value
(Amount Code 4) for a SEPand not reporting a contribu tion in Amount Code 1. Otherwise, enter a blank.

143

Form 5498 SIMPLE
Indicator (Savings
Incentive Match Plan
for Employees
of Small employers)

1

R e q u i red. Form 5498 only. Enter ‘ 1 ’ if re p o rting
a rollover (Amount Code 2) or Fair Market Value
(Amount Code 4) for a SIMPLE and not reporting a contribution in Amount Code 1. Otherwise, enter a blank.

144–160

Blank

161

Foreign Country
Indicator

162-201

First Payee
Name Line

1997–30 I.R.B.

17

Enter blanks.

1

If the address of the payee is in a foreign country, enter a
“1” (one) in this field; otherwise, enter blanks. When filers use this indicator, they may use a free format for the
payee city, state, and ZIP Code. Address information
must not appear in the First or Second Payee Name Line.

40

Required. Enter the name of the payee (preferably surname first) whose Taxpayer Identification Number (TIN)
was provided in positions 15–23 of the “B” Record. Left
justify and fill unused positions with blanks. If more
space is required for the name, utilize the Second Payee

56

July 28, 1997

Name Line Field. If there are multiple payees, only the
name of the payee whose TIN has been provided should
be entered in this field. The names of the other payees
may be entered in the Second Payee Name Line Field. If
reporting information for a sole proprietor, the individu a l ’s name must always be present on the First Payee
Name Line. The use of the business name is optional in
the Second Payee Name Line Field.
☞ Note 1: When reporting Form 1098, Mortgage Interest Statement, the “A” Record will reflect the name of the recipient of the interest (the payer). The “B” Record will reflect the individual paying the interest (the borrower/payer of record)
and the amount paid. For Form 1099–S, the “B” Record will reflect the seller/transferor information.
☞ Note 2: ForForm 5498 Inherited IRAs, enter the beneficiary’s name followed by the word “beneficiary.” For example,
“Brian Young as beneficiary of Joan Smith” or something similar that signifies that the IRAwas once owned by Joan Smith.
Filers may abbreviate the word “beneficiary” as, for example, “benef.” Refer to the 1997 “Instructions for Forms 1099,
1098, 5498, and W–2G.” The beneficiary’s TIN must be reported in positions 15–23 of the “B” Record.
☞ Note 3: End First Payee Name Line with a full word. DO NOTSPLIT WORDS.
☞ Note 4: When reporting Form 1099- LTC, Long-Term Care and Accelerated Death Benefits, the “B” record will reflect
the individual receiving the payment (the policyholder) and the amount paid. The “B” record will also reflect the individual
on account of whose illness the payment was made (the insured).
202–241

Second Payee
Name Line

40

If there are multiple payees, (e.g., partners, joint owners,
or spouses), use this field for those names not associated
with the TIN provided in position 15-23 of the “B”
Record or if not enough space was provided in the First
Payee Name Line, continue the name in this field (See
Note). Do not enter address information. It is important that filers provide as much payee information to
IRS/MCC as possible to identify the payee assigned the
TIN. Left justify and fill unused positions with blanks.
Fill with blanks if no entries are present for this field.

☞ Note: End First Payee Name Line with a full word. DO NOT SPLIT WORDS. Begin Second Payee Name Line with
the next sequential word.
242–281

Payee Mailing Address

40

Required. Enter mailing address of payee. Street address should include number, street, apartment or suite
number (or P.O. Box if mail is not delivered to street address). Left justify information and fill unused positions
with blanks. This field must not contain any data other
than the payee’s mailing address.
For U.S. addresses, the payee city, state, and ZIPCode must be reported as a 29, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payee city, state, and ZIPcode.
For foreign addresses, filers may use the payee city, state, and ZIPcode as a continuous 40 position field. Enter information in
the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign
Country Indicator in position 161 must contain a “1” (one).
282–310

Payee City

29

Required. Enter the city, town or post office. Left justify information and fill the unused positions with
blanks. Enter APO or FPO if applicable. Do not enter
state and ZIP code information in this field.

311–312

Payee State

2

Required. Enter the valid U.S. Postal Service state abbreviations for states or the appropriate postal identifier
(AA, AE, or AP) described in Part A, Sec. 18.

1997–30 I.R.B.

57

July 28, 1997

313–321

Payee ZIPCode

9

Required. Enter the valid nine digit ZIP Code assigned
by the U.S. Postal Service. If only the first five digits are
known, left justify information and fill the unused positions with blanks. For foreign countries, alpha characters
are acceptable as long as the filer has entered a “1” (one)
in the Foreign Country Indicator Field, located in position 161 of the “B” Record.

Standard Payee “B” Record Format For All Types of Returns up to Position 321
Record
Type

Payment
Year

Document Specific/
Distribution Code

2nd TIN
Notice (Optional)

Corrected Return
Indicator

1

2–3

4–5

6

7

Name
Control
8–11

Direct Sales
Indicator
12

Blank

Type of
TIN

Taxpayer
Identification
Number

13

14

15–23

Payer’s Account
Number For Payee
24–43

Form 1099-R
IRA/SEP/SIMPLE
Indicator

Percentage of
Total Distribution

Total Distribution
Indicator

Taxable Amt Not
Determined Indicator

Blank

44

45–46

47

48

49–50

Payment
Amount 1

Payment
Amount 2

Payment
Amount 3

Payment
Amount 4

Payment
Amount 5

51–60

61–70

71–80

Payment
Amount 6

Payment
Amount 7

Payment
Amount 8

Payment
Amount 9

Form 5498
IRA Indicator

101–110

111–120

121–130

131–140

141

Form 5498
SEP Indicator

Form 5498
SIMPLE Indicator

Blank

Foreign
Country Indicator

First Payee
Name Line

142

143

144–160

Second Payee
Name Line

Payee Mailing
Address

202–241

242–281

1997–30 I.R.B.

81–90

91–100

161

162–201

Payee
City

Payee
State

Payee
ZIP Code

282–310

311–312

313–321

58

July 28, 1997

Record Name: Payee “B” Record — Continued
Field Position

Field Title

Length

Description and Remarks

The following sections define the field positions for the different types of returns in the Payee “B” Record (positions 322–420):
(l) Forms 1098, 1099–DIV, 1099–G, 1099–INT, 1099–MISC, 1099–MSA, 1099–PATR, 5498, and 5498–MSA
(2) Form 1099–A
(3) Form 1099–B
(4) Form 1099–C
(5) Form 1099–LTC
(6) Form 1099–OID
(7) Form 1099–R
(8) Form 1099–S
(9) Form W–2G
(1) Payee “B” Record — Record Layout Positions 322–420 Forms 1098, 1099–DIV, 1099–G, 1099–INT, 1099–MISC,
1099–MSA, 1099–PATR, 5498, and 5498–MSA
322–349

Blank

28

Enter blanks.

350–416

Special Data
Entries

67

This portion of the “B” Record may be used to record information for state or local government reporting or for
the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enter blanks.

417–418

Combined Federal/
State Code

2

If this payee record is to be 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 payers or states not participating in this program
or for forms not valid for state reporting, enter blanks.

419–420

Blank

2

Enterblanks, or carriage return/line feed (cr/lf) characters.

Payee “B” Record — Record Layout Positions 322–420
Forms 1098, 1099–DIV, 1099–G, 1099–INT, 1099–MISC, 1099–MSA, 1099–PATR, 5498, and 5498–MSA
Special Data
Entries

Blank
322–349

Combined Federal/State
Code

350–416

417–418

Blank or
CR/LF
419–420

(2) Payee “B” Record — Record Layout Positions 322–420 Form 1099–A
322–349

Blank

28

Enter blanks.

350–370

Special Data Entries

21

This portion of the “B” Record may be used to record information for state or local government reporting or for
the filer’s own purposes. Payers should contact the state
or local revenue departments for the filing requirements.
If this field is not utilized, enter blanks.

371–376

Date of Lender’s
6
Acquisition or Knowledge
ofAbandonment

Form 1099–A only. Enter the acquisition date of the secured property or the date the lender first knew or had
reason to know the property was abandoned, in the format
MMDDYY (i.e., 052297). Do not enter hyphens or
slashes.

1997–30 I.R.B.

59

July 28, 1997

377

Personal Liability
Indicator

1

Form 1099-Aonly. Enter the appropriate indicator from
the table below:

39

Indicator
1

Usage
Borrower was personally liable
for repayment of the debt.

Blank

Borrower was not personally liable for repayment of the debt.

378–416

Description of Property

Form 1099–A only. Enter a brief description of the
property. 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-1996 Buick Regal or
office equipment). Enter “CCC” for crops forfeited on
Commodity Credit Corporation loans. If fewer than 39
positions are required, left justify information and fill unused positions with blanks.

417–418

Blank

2

Enter blanks.

419–420

Blank

2

Enter blanks, or carriage return/line feed (cr/lf) characters.

Payee “B” Record — Record Layout Positions 322–420
Form 1099–A

Blank

Special Data
Entries

Date of Lender’s
Acquisition or
Abandonment

Personal
Liability
Indicator

Description of
Property

Blank

Blank or
CR/LF

322–349

350–370

371–376

377

378–416

417–418

419–420

(3) Payee “B” Record — Record Layout Positions 322–420 Form 1099–B
Field Position

Field Title

Length

Description and Remarks

322–349

Blank

28

Enter blanks.

350–359

Special Data Entries

10

This portion of the “B” Record may be used to record information for state or local government reporting or for
the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enter blanks.

360

Gross Proceeds
Indicator

1

Form 1099–B only. Enter the appropriate indicator from
the following table, otherwise, enter blanks.
Indicator

361–366

1997–30 I.R.B.

Date of Sale

6

Usage

1

Gross proceeds

2

Gross proceeds less commissions and option premiums

Form 1099–B only. For broker transactions, enter the
trade date of the transaction. For barter exchanges, enter
the date when cash, property, a credit, or scrip is actually
or constructively received. Enter the date in the format

60

July 28, 1997

MMDDYY (e.g., 052197). Enter blanks if this is an aggregate transaction. Do not enter hyphens or slashes.
367–379

CUSIP Number

13

Form 1099–B only. For broker transactions only, enter
the CUSIP (Committee on Uniform Security Identification Procedures) number of the item reported for Amount
Code 2 (stocks, bonds, etc.). Enter blanks if this is an aggregate transaction. Enter “0” (zeros) if the number is
not available. Right justify information and fill unused
positions with blanks.

380–418

Description

39

Form 1099–B only. If fewer than 39 characters are required, left justify information and fill unused positions
with blanks. For broker transactions, enter a brief description of the disposition item (e.g., 100 shares of XYZ
Corp.). For regulated futures and forward contracts, enter
“RFC” or other appropriate description and any amount
subject to backup withholding (see Note). For bartering
transactions, show the services or property provided.

☞ Note: The amount withheld in these situations is to be included in Amount Code 4.
419–420

Blank

2

Enter blanks, or carriage return/line feed (cr/lf) characters.

Payee “B” Record — Record Layout Positions 322–420
Form 1099–B
Blank

Special Data
Entries

Gross Proceeds
Indicator

Date of
Sale

CUSIP
Number

322–349

350–359

360

361–366

367–379

Description
380–418

Blank
or CR/LF
419–420
(4) Payee “B” Record — Record Layout Positions 322–420 Form 1099–C
Field Position

Field Title

Length

Description and Remarks

322–349

Blank

28

Enter blanks.

350–370

Special Data
Entries

21

This portion of the “B” Record may be used to record information for state or local government reporting or for
the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enter blanks.

371–376

Date Canceled

6

Form 1099–C only. Enter the date the debt was canceled in the format of MMDDYY (i.e., 052297). Do not
enter hyphens or slashes.

377

Bankruptcy Indicator

1

Form 1099–C only. Enter “1” (one) to indicate the debt
was discharged in bankruptcy, if known.

1997–30 I.R.B.

61

July 28, 1997

39

Indicator

Usage

1

Debt w a s d i s c h a rged in bankruptcy.

Blank

Debt was not d i s c h a rged in
bankruptcy.

378–416

Debt Description

Form 1099–C only. Enter a description of the origin of
the debt, such as student loan, mortgage, or credit card
expenditure. If a combined Form 1099–C and 1099–Ais
being filed, also enter a description of the property.

417–418

Blank

2

Enter blanks.

419–420

Blank

2

Enter blanks, or carriage return/line feed (cr/lf).

Payee “B” Record — Record Layout Positions 322–420
Form 1099–C

Blank
322–349

Special
Data

Date
Canceled

Bankruptcy
Indicator

Debt Description

350–370

371–376

377

378–416

Blank

Blank
or CR/LF

417–418

419–420

(5) Payee “B” Record—Record Layout Positions 322–420 Form 1099–LTC
Field Position

Field Title

322

Type of Payment
Indicator

323–331

Social Security Number
of the Insured

332–371

Length

Description and Remarks

1

Form 1099–LTC only. Enter the appropriate indicator
from the following table, otherwise, enter blanks:
Indicator

Usage

1

Per diem

2

Reimbursed amount

9

Required for Form 1099–LTC only. Enter the Social
Security Number of the individual for whom the benefits
are being paid.

Name of the Insured

40

Required for Form 1099–LTC only. Enter the name of
the individual.

372–411

Address of the Insured

40

Form 1099–LTC. Enter the address of the insured. Ab breviate or truncate the information if necessary.

412

Status of Illness
Indicator (Optional)

1

Form 1099–LTC only. Enter the appropriate code from
the table below to indicate the status of the illness of the
insured, otherwise, enter blank:
Indicator
1
2

1997–30 I.R.B.

62

Usage
Chronically ill
Terminally ill

July 28, 1997

413–418

Date Certified (Optional)

6

Form 1099–LTC only. Enter the date of a doctor’s certi fication of the status of the insured’s illness. The format
of the date is MMDDYY (e.g., 022097).

419–420

Blank

2

Enter blanks, or carriage return/line feed (cr/lf) charac ters.

Payee “B” Record—Record Layout Positions 322–420 Form 1099–LTC
Type of
Payment
Indicator

SSN of
Insured

Name
of
Insured

Address
of
Insured

322

323–331

332–371

372–411

Status of
Illness
Indicator
412

Date
Certified
413–418

Blank
or CR/LF
419–420
(6) Payee “B” Record — Record Layout Positions 322–420 Form 1099–OID
Field Position

Title

Length

Description and Remarks

322–349

Blank

28

Enter blanks.

350–377

Special Data Entries

28

This portion of the “B” Record may be used to record information for state or local government reporting or for
the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enter blanks.

378–416

Description

39

R e q u i red Form 1099–OID only. Enter the CUSIP
number, if any. If there is no CUSIP number, enter the
abbreviation for the stock exchange and issuer, the
coupon rate, and year of maturity (e.g., NYSE XYZ 12
1/2 98). Show the name of the issuer if other than the
payer. If fewer than 39 characters are required, left justify information and fill unused positions with blanks.

417–418

Combined Federal/
State Code

2

If this payee record is to be 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 l.
For those payers or states not participating in this program, enter blanks.

419–420

Blank

2

Enter blanks or carriage return/ line feed (cr/lf) characters.

Payee “B” Record — Record Layout Positions 322–420
Form 1099–OID

Blank
322–349

1997–30 I.R.B.

Special
Data Entries
350–377

Description

Combined Federal/
State Code

Blank or
CR/LF

378–416

417–418

419–420

63

July 28, 1997

(7) Payee “B” Record — Record Layout Positions 322–420 Form 1099–R
Field Position

Field Title Length

Description and Remarks

322–349

Blank

28

Enter blanks.

350–396

Special Data Entries

47

This portion of the “B” Record may be used to record information for state or local government reporting or for
the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enter blanks.

397–406

State Income
Tax Withheld

10

Form 1099–R only. State income tax withheld is for the
convenience of the filers. This information does not
need to be reported to IRS. The payment amount must
be right justified and unused positions must be zerofilled. If not reporting state tax withheld, this field may
be used as a continuation of the Special Data Entries
field.

407–416

Local Income
Tax Wi t h h e l d

10

Form 1099–R only. Local income tax withheld is for the
convenience of the filers. This information does not need
to be reported to IRS. The payment amount must be right
justified and unused positions must be zero-filled. If not
reporting local tax withheld, this field may be used as a
continuation of the Special Data Entries field.

417–418

Combined
Federal/State Code

2

If this payee record is to be 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 payers or states not participating in this program, enter blanks.

419–420

Blank

2

Enter blanks, or carriage return/line feed (cr/lf) characters.

Payee “B” Record—Record Layout Positions 322–420
Form 1099–R
Special
Data Entries

Blank
322–349

State Income Tax
Withheld

Local Income Tax
Withheld

Combined Federal/
State Code

397–406

407–416

417–418

350–396

Blank
or CR/LF
419–420
(8) Payee “B” Record — Record Layout Positions 322–420 Form 1099–S
Field Position

Field Title

Length

Description and Remarks

322–349

Blank

28

Enter blanks.

350–372

Special Data Entries

23

This portion of the “B” Record may be used to record information for state or local government reporting or for

1997–30 I.R.B.

64

July 28, 1997

the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enter blanks.
373–378

Date of Closing

6

Required. Form 1099–S only. Enter the closing date in
the format MMDDYY (e.g., 052297). Do not enter hyphens or slashes.

379–417

Address or Legal
Description

39

Required. Form 1099–S only. Enter the address of the
property transferred (including city, state, and ZIP code).
If the address does not sufficiently identify the property,
also enter a legal description, such as section, lot, and
block. For timber royalties, enter “TIMBER.” If fewer
than 39 positions are required, left justify information
and fill unused positions with blanks.

418

Property or Services
Indicator

1

R e q u i red. Form 1099–S only. Enter “1” (one) if the
transferor received or will receive property (other than
cash and consideration treated as cash in computing
gross proceeds) or services as part of the consideration
for the property transferred. Otherwise, enter a blank.

419–420

Blank

2

Enter blanks or carriage return/line feed (cr/lf) characters.

Payee “B” Record — Record Layout Positions 322–420
Form 1099–S

Blank

Special Data
Entries

Date of
Closing

Address or Legal
Description

322–349

350–372

373–378

379–417

Property or
Services Indicator
418

Blank or
CR/LF
419–420

☞ Note: When reporting Form 1099–S, the “B” Record will reflect the seller/transferor information.

(9) Payee “B” Record - Record Layout Positions 322–420 Form W–2G
Field Position

Field Title

Length

Description and Remarks

322–352

Blank

31

Enter blanks.

353–358

Date Won

359–373

Transaction

1997–30 I.R.B.

6

Required. Form W–2G only. Enter the date of the winning event in the format MMDDYY (e.g., 052297). Do
not enter hyphens or slashes. This is not the date the
money was paid, if paid after the date of the race (or
game).

15

Required. Form W–2G only. For state-conducted lotteries, enter the ticket or other identifying number. For
keno, bingo, and slot machines, enter the ticket or card
number (and color, if applicable), machine serial number,
or any other information that will help identify the winning transaction. All others, enter blanks.

65

July 28, 1997

374–378

Race

5

Form W–2G only. If applicable, enter the race (or game)
relating to the winning ticket. Otherwise, enter blanks.

379–383

Cashier

5

Form W–2G only. If applicable, enter the initials of the
cashier making the winning payment; otherwise, enter
blanks.

384–388

Window

5

Form W–2G only. If applicable, enter the window number or location of the person paying the winnings; otherwise, enter blanks.

389–403

First ID

15

Form W–2G only. For other than state lotteries, enter
the first identification number of the person receiving the
winnings; otherwise, enter blanks.

404–418

Second ID

15

Form W–2G only. For other than state lotteries, enter
the second identification number of the person receiving
the winnings; otherwise, enter blanks.

419–420

Blank

2

Enter blanks, or carriage return/line feed (cr/lf) characters.

Payee “B” Record — Record Layout Positions 322–420
Form W–2G

Blank

Date Won

Transaction

322–352

353–358

359–373

Id

Blank or
CR/LF

404–418

419–420

Race
374–378

Cashier

Window

First Id

379–383

384–388

389–403

Sec. 9. End of Payer “C” Record — General Field Descriptions and Record Layout
.01 The End of Payer“C” Record is a fixed record length of 420 positions. The control total fields are each 15 positions in length.
.02 The “C” Record consists of the total number of payees and the totals of the payment amount fields filed by a given payer
and/or a particular type of return. The “C” Record must be written after the last “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.
.03 In developing the “C” Record, for example, if a payer 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 26–40, 56–85, and 101–145
would be zero filled. Positions 146–420 would be blank filled.
.04 Payers/Transmitters should verify the accuracy of the totals since data with missing or incorrect “C” Records may be returned
for replacement.
Record Name: End of Payer “C” Record
Field Position

Field Title

Length

Description and Remarks

1

Record Type

1

Required. Enter “C.”

2–7

Number of Payees

6

Required. Enter the total number of “B” Records covered by the preceding “A” Record. Right justify information and fill unused positions with zeros.

1997–30 I.R.B.

66

July 28, 1997

8–10

Blank

3

11–25

Control
Total 1
Control
Total 2
Control
Total 3
Control
Total 4
Control
Total 5
Control
Total 6
Control
Total 7
Control
Total 8
Control
Total 9

15

Blank

275

26–40
41–55
56–70
71–85
86–100
101–115
116–130
131–145

146–420

Enter blanks.
R e q u i red. Accumulate totals of any payment amount
fields in the “B” Record into the appropriate control total
fields of the “C” Record. Control totals must be rightjustified and unused control total fields zero - f i l l e d .
All control total fields are 15 positions in length.

15
15
15
15
15
15
15
15

Enter blanks. Filers may enter carriage return/line feed
(cr/lf) characters in positions 419–420.

End of Payer “C” Record — Record Layout
Record
Type

Number of
Payees

1

2–7

Blank

Control
Total 1

8–10

11–25

Control
Total 4

Control
Total 5

Control
Total 6

Control
Total 7

56–70

71–85

86–100

101–115

Control
Total 8
116–130

Control
Total 2

Control
Total 3

26–40

41–55

Control
Total 9

Blank or
CR/LF

131–145

146–420

Sec. 10. State Totals “K” Record — General Field Descriptions and Record Layout
.01 The State Totals “K” Record is a fixed record length of 420 positions. The control total fields are each 15 positions in length.
.02 The “K” Record is a summary for a given payer and a given state in the Combined Federal/State Filing Program, used 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 by a given payer 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 a payer 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 via this program.
.07 Control total fields have been added for the accumulated totals of state and local withholding fields from the “B” Records for
Form 1099–R only for each state being reported.

1997–30 I.R.B.

67

July 28, 1997

(1) State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC, 1099–OID, 1099–PATR,
and 5498
Field Position

Field Title

1

Record Type

1

Required. Enter “K.”

2–7

Number of Payees

6

Required. Enter the total number of “B” Records being
coded for this state. Right justify information and fill unused positions with zeros.

8–10

Blank

3

Enter blanks.

11–25

Control
Total 1
Control
Total 2
Control
Total 3
Control
Total 4
Control
Total 5
Control
Total 6
Control
Total 7
Control
Total 8
Control
Total 9

26–40
41–55
56–70
71–85
86–100
101–115
116–130
131–145

Length

Description and Remarks

15

Required. Accumulate totals of any payment amount
fields in the “B” Records for each state being reported
into the appropriate control total fields of the appropriate
“K” Record. C o n t rol totals must be right-justified,
and unused control total fields zero-filled. All control
total fields are 15 positions in length.

15
15
15
15
15
15
15
15

146–416

Blank

271

Reserved for IRS use. Enter blanks.

417–418

Combined Federal/
State Code

2

Required. Enter the code assigned to the state which is
to receive the information. (Refer to Part A, Sec. 16,
Table l.)

419–420

Blank

2

Enter blanks or carriage return/line feed (cr/lf) characters.

State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC,
1099–OID, 1099–PATR, and 5498

Record
Type
1

1997–30 I.R.B.

Number of
Payees
2–7

Blank

Control
Total 1

8–10

11–25

68

Control
Total 2

Control
Total 3

26–40

41–55

July 28, 1997

Control
Total 4

Control
Total 5

Control
Total 6

Control
Total 7

56–70

71–85

86–100

101–115

Combined Federal/
State Code

Blank or
CR/LF

417–418

419–420

Blank
146–416

Control
Total 8
116–130

Control
Total 9
131–145

(2) State Totals “K” Record — Record Layout Form 1099–R
Field Position

Field Title

1

Record Type

1

Required. Enter “K.”

2–7

Number of Payees

6

Required. Enter the total number of “B” Records being
coded for this state. Right justify information and fill unused positions with zeros.

8–10

Blank

3

Enter blanks.

11–25

Control
Total 1
Control
Total 2
Control
Total 3
Control
Total 4
Control
Total 5
Control
Total 6
Control
Total 7
Control
Total 8
Control
Total 9

26–40
41–55
56–70
71–85
86–100
101–115
116–130
131–145

Length

Description and Remarks

15

Required. Accumulate totals of any payment amount
fields in the “B” Records for each state being reported
into the appropriate control total fields of the appropriate
“K” Record. C o n t rol totals must be right-justified,
and unused control total fields zero-filled. All control
total fields are 15 positions in length.

15
15
15
15
15
15
15
15

146–386

Blank

387–401

Control Total State
Income Tax Withheld

15

Form 1099–R only.Aggregate totals of the state income
tax withheld field in the Payee “B” Record; otherwise,
enter blanks.

402–416

Control Total Local
Income Tax Withheld

15

Form 1099–R only.Aggregate totals of the local income
tax withheld field in the Payee “B” Record; otherwise,
enter blanks.

1997–30 I.R.B.

241

Reserved for IRS use. Enter blanks.

69

July 28, 1997

417–418

Combined Federal/State
Code

2

Required. Enter the code assigned to the state which is
to receive the information. (Refer to Part A, Sec. 16,
Table 1.)

419–420

Blank

2

Enter blanks or carriage return/line feed (cr/lf) characters.

State Totals “K” Record — Record Layout — Form 1099–R
Record
Type

Number of
Payees

Blank

Control
Total 1

1

2–7

8–10

11–25

Control
Total 4

Control
Total 5

Control
Total 6

Control
Total 7

56–70

71–85

86–100

101–115

Control
Total 2
26–40
Control
Total 8
116–130

Blank

Control Total State
Income Tax Withheld

Control Total Local
Income Tax Withheld

Combined Federal/
State Code

146–386

387–401

402–416

417–418

Control
Total 3
41–55
Control
Total 9
131–145
Blank or
CR/LF
419–420

Sec. 11. End of Transmission “F” Record — General Field Descriptions and Record Layout
.01 The end of transmission “F” record is a fixed record length of 420 positions. 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

Field Position

Field Title

Length

Description and Remarks

1

Record Type

1

Required. Enter “F.”

2–5

Number of
“A” Records

4

Enter the total number of Payer “A” Records in the entire
file (right justify and zero fill) or enter all zeros.

6–30

Zero

25

31–420

Blank

390

Enter zeros.
Enter blanks or carriage return/line feed (cr/lf) characters in positions 419–420.

End of Transmission “F” Record — Record Layout

1997–30 I.R.B.

Record
Type

Number of
“A” Records

Zeros

Blank or
CR/LF

1

2–5

6–30

31–420

70

July 28, 1997

Part C. Bisynchronous (Mainframe) Electronic Filing Specifications

Sec. 1. General
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will change in
the future.
.01 Bisynchronous electronic filing of Forms 1098, 1099, 5498, and W–2G, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement.
This method uses IBM 3780 communications protocols and is used primarily by mainframe filers. Electronic filing will fulfill the
magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under
the filing threshold requirement, but would prefer to file their information returns this way.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the
electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Taxpayer Service toll free
number (1-800-829-1040) for assistance.
.03 Filers participating in the electronic filing program for information returns will submit their returns to IRS/MCC electronically, and not through magnetic media or paper filing.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of 30 days to file.
Part A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The formats of the “A”, “B”, “C”, “K”, and “F” Records are the same for electronically filed records as they are for 5 1/4- and
3 1/2-inch diskettes, tapes, and tape cartridges. For electronically filed documents, each transmission is considered a separate file.

Sec. 2. Electronic Filing Approval Procedure
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically. (Filers who currently have a TCC for magnetic filing do not have to request a second TCC for electronic filing.) Refer to
Part A, Sec. 7, for information on how to obtain a TCC.
.02 Filers using bisynchronous protocols must obtain an IRS/MCC-assigned password prior to submitting test or actual data files.
To obtain a password, the following steps must be taken:
(a) Bisynchronous filers who already have a TCC must submit either Form 4419 or a letter to indicate that they wish to file information returns electronically. Another TCC will not be assigned. If a letter is submitted, it must contain the following:
1) Name and address of transmitter.
2) Transmitter Control Code.
3) Name and phone number of a contact person within the filer’s organization to whom a password will be assigned.
(b) Within 30 days of receiving the application or letter, IRS/MCC will send Form 6086, Time Sharing Operation (TSO) Password Assignment, to the filer which will contain the password to be used for electronic submissions.
(c) Upon receipt of Form 6086, the user (person who will actually transmit the data) will separate the acknowledgment from the
password. Both the user and the user’s manager must sign the acknowledgment and mail to:

✉

Chief, Security and Disclosure Branch
IRS, Martinsburg Computing Center
P. O. Box 1208, MS-370
Martinsburg, WV 25402
(d) The users or filers should retain a copy of the signed acknowledgment for their records. It is the filer’s responsibility to ensure that the password is not compromised. Access to IRS/MCC computers will not be allowed without a valid password.
After a password is received and the acknowledgment returned, the filer may submit a data file.
(e) For security reasons, all bisynchronous passwords will expire periodically, and a new password will automatically be assigned.If filers have any questions relating to the security procedures, and/or they need to report their password has been
compromised, they must contact IRS/MCC as soon as possible at:

✉

IRS/MCC
Information Returns Branch
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359

1997–30 I.R.B.

71

July 28, 1997

☎

.03

or by calling: 304-263-8700.
It is the user’s responsibility to remember the password and not allow the password to be compromised.

Sec. 3. Test Files
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for first time electronic filers
in order to resolve any data or communication problems prior to the filing season. If filers wish to submit an electronic test file for
Tax Year 1997 (returns to be filed in 1998), it must be submitted to IRS/MCC no earlier than November 1, 1997, and no later than
December 31, 1997.
.02 If a filer encounters problems while transmitting electronic test files, contact IRS/MCC for assistance.
.03 Apassword must be obtained before submitting an electronic test file.
.04 Bisynchronous electronic test files will be processed and filers will be notified as to the acceptability of their data within 5
workdays of the date the data and transmittal Form 4804 are received by IRS/MCC.
.05 Atest file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec. 16, for
further details.

Sec. 4. Electronic Submissions
.01 Electronically filed information may be submitted to IRS/MCC 7 days a week, 24 hours a day, except for routine maintenance/backup which is performed at 4:00 a.m. Eastern Time. Technical assistance will be available Monday through Friday between
8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.02 Lengthy transmissions (100,000 ormore records) are not encouraged since the transmission may be interrupted by line noise
problems. It is advisable to break lengthy files into multiple transmissions.
.03 The time required to transmit information returns electronically will vary depending on the modem speed, if IBM 3780 data
compression is used, and if the records are blocked. The following transmission rates were based on actual test files received at
MCC:
4,500 records
50 minutes
(4800 bps, no compression, one record per block)
54,000 records
4 hours
(9600 bps, compression, two records per block)

Sec. 5. Transmittal Requirements
.01 All data submitted electronically is verified by transmittal Form 4804. The transmitter must send the signed Form 4804 the
same day the transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804 can be ordered by calling the IRS toll free forms and publications order number 1-800-TAX-FORM (1-800- 8293676) or it may be computer-generated. If a filer chooses to computer-generate Form 4804, all of the information contained on the
original form, including the affidavit, must also be contained on the computer-generated form.
.03 The filer whose TCC is used in the “A” Record is responsible for submitting the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:

✉

If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359
☞ Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses for Martinsburg,
WV.

If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401

1997–30 I.R.B.

72

July 28, 1997

.05 Asigned Form 4804 submitted for electronically filed information returns may be sent to IRS/MCC at the following number:
304-264-5602. Faxed transmittals will allow IRS/MCC to begin processing the file immediately; however, a filer must still send the
actual signed Form 4804 the same day as the electronic submission.

Sec. 6. IBM 3780 Bisynchronous Communication Specifications
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will change in
the future.
.01 Transmissions using IBM 3780 bisynchronous protocols must be in EBCDIC character code. Modems must be compatible
with either Bell 208B for 4800 bps transmissions, AT&T 2296Afor 9600 bps transmissions, or Hayes OPTIMA288 V.FC Smartmodem for 14400 bps transmissions. These modems are dial-up type modems using the Public Switched Telephone Network. IBM
3780 data compression is acceptable for any bisynchronous transmission. Records may be blocked up to 4096 bytes with INTER
RECORD SEPARATORS.
.02 IRS/MCC will accept information returns filed electronically over switched telecommunications network circuits. For 4800
bps, the circuit will be 304-264-7080. For 9600 bps, the circuit will be 304-264-7040. For 14400 bps, the circuit will be 304-2647045. These circuits are equipped for bisynchronous transmission using the IBM 3780 protocol.
.03 The 4800 bps line terminates at a Bell 208B modem. The Bell 208B modem uses phase-shift keying and eight-phase modulation to transmit binary serial data signals over the telephone line in half-duplex mode. The following options have been selected:
— Transmit Level set to -4 dBm
— Compromise Equalizer in (4-Db Slope)
— DSR off in Analog Loop Mode
— Automatic Answer
— Transmitter Internally Timed
— RS–CS Interval of 50 ms
.04 The 9600 bps line terminates at an AT&T Dataphone II 2296A modem. The AT&T 2296A modem is a full-duplex, CCITT
V.32 compatible unit which operates at 9600 bps or 4800 bps (fallback). The following options have been selected:
— Receiver Responds to Remote Loopback
— Loss-of-Carrier Disconnect
— Received-Space Disconnect
— Send-Space Disconnect
— Automatic Answer
— Answer on Ring 1
— DTR Interlock
— Retrain Enable
— Internal Timing
— CTS Controlled by RTS
— 0 - 1 ms RTS to CTS Delay
— CTS Dependent on Carrier
— RR Indicates Carrier
— 9600 Trellis Coding
— 4800 bps Fallback
— 4 dB Compromise Equalization
.05 The 14400 bps line terminates at a Hayes OPTIMA288 V.FC Smartmodem. The Hayes OPTIMASmartmodem is a half-duplex, ITU-T (formerly CCITT) V.32 and V.32 bis compatible unit which operates at 14400 bps, 9600 bps, or 4800 bps (fallback).
The following options have been selected:
— Monitor DTR signal
— Assert DSR signal after handshake negotiation, but before connect result code
— Ring control S=1

Sec. 7. Bisynchronous Electronic Filing Record Specifications
.01 For bisynchronous filing there are two additional identifier records which must be used to transmit data. These records are
420 positions in length and are the first ($$REQUEST) and second ($$ADD) records sent in an electronic transmission. The purpose of these records is to provide the password and identity of the transmitter. The $$REQUEST, $$ADD, and the data file should

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be transmitted as one file. In some cases, filers have attempted to send the $$REQUEST and $$ADD as separate files. Doing this
will result in a failed transmission.
.02 With the exception of these additional records, the file format for electronic filing is the same as for magnetic media filing.
The format of each of these records is as follows:
Record Name: $$REQUEST
Field Position

Field Title

1–20

$$REQUEST Identifier
Record

21–420

Blank

Length

Description and Remarks

20

Enter the following characters: $$REQUEST ID=MSGFILE

400

Enter blanks.

Electronic Filing Identifier $$REQUEST RECORD — Record Layout

$$REQUEST
Identifier Record
1–20

Blank
21–420

.03 Upon making contact with IRS/MCC and furnishing a valid password in the $$ADD identifier record, a data transmission
session will commence. The transmission will continue until an End of Transmission (EOT) “F” Record is received. At the end of
each transmission, the following message should be received electronically by the filer: “DATA RECEIVED AT MCC” and the line
will be disconnected. If this message is not received, there was a problem with the submission, and the filer should contact
IRS/MCC immediately.
.04 Upon receiving a data file and transmittal Form 4804, IRS/MCC will release the data for further processing. If the media cannot be processed, the filer will be notified by either letter or telephone that the data must be retransmitted. This file name, if necessary, will be provided by IRS/MCC and is to be placed in positions 45–51 of the $$ADD record when the file is retransmitted.
Record Name: $$ADD
Field Position

Field Title

1–9

$$ADD Identifier Record

9

Enter the following characters: $$ADD ID=

10–17

Password

8

Enter the password assigned by IRS/MCC. For information concerning the password, see Part C, Sec. 2.

18

Blank

1

Enter a blank.

19–26

BATCHID

8

Enter the following characters: BATCHID=

27

Quote

1

Enter a single quote (‘).

28–43

Transmitter Name

44

Type of File Indicator

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Length

Description and Remarks

16

Enter the transmitter’s name. This name should remain
consistent in all transmissions. If the transmitter’s name
exceeds 16 positions, truncate the name.

1

Enter the Type of File Indicator from the list below:
O = Original filing
T = Test file
C = Correction file
R = Replacement file
E = Extension file

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45–51

Replacement File Name

7

Use this field only if this is a replacement file. Enter the
replacement file name which IRS/MCC has assigned to
this file. This file name will be provided to the filer in
the letter notifying them that a replacement file is necessary. If contact is made by telephone, the replacement
file name will be given to the filer by IRS/MCC at that
time. For other than replacement files, this field will
contain blanks.

52

Quote

1

Enter a single quote (‘).

53–420

Blanks

368

Enter blanks.

Electronic Filing Identifier $$ADD Record - Record Layout

$$ADD Identifier
Record

Password

Blank

BATCHID

1–9

10–17

18

19–26

Type of
File Indicator

Replacement
File Name

Quote

Blanks

44

45–51

52

Quote
27

Transmitter
Name
28–43

53–420

Part D. Asynchronous (IRP–BBS) Electronic Filing Specifications

Sec. 1. General
.01 Asynchronous electronic filing of Forms 1098, 1099, 5498, and W–2G, originals, corrections, and replacements of information returns is offered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement.
Electronic filing using the Information Reporting Program Bulletin Board System (IRP–BBS) will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold
requirement, but would prefer to file their information returns this way. If the original file was sent magnetically, but was returned
for replacement, the replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any
corrections may be transmitted electronically.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two programs are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the
electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Taxpayer Service toll-free
number (1-800-829-1040) for assistance.
.03 Filers participating in the electronic filing program, for information returns will submit their returns to IRS/MCC via electronically and not through magnetic media or paper filing. Files submitted in this manner must be in standard ASCII code.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of 30 days to file. Part
A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05 The formats of the “A”, “B”, “C”, “K”, and “F” Records are the same for electronically filed records as they are for
5 1/4- and 3 1/2-inch diskettes, tapes, and tape cartridges and must be in standard ASCII code. For electronically filed documents,
each transmission is considered a separate file; therefore, each transmission must have an End of Transmission (EOT) “F” Record.

Sec. 2. Electronic Filing Approval Procedure
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically. (Filers who currently have a TCC for magnetic filing do not have to request a second TCC for electronic filing.) Refer to
Part A, Sec. 7, for information on how to obtain a TCC.
.02 Once a TCC is obtained, filers using IRP-BBS assign their own passwords and do not need special approval.
.03 With all passwords, it is the user’s responsibility to remember the password and not allow the password to be compromised.

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However, if filers do forget their password, call 304-263-8700 for assistance.
☞ Note: Passwords on the IRP–BBS are case sensitive.

Sec. 3. Test Files
.01 Filers are not required to submit a test file; however, the submission of a test file is encouraged for first time electronic filers
in order to resolve any data or communication problems prior to the filing season. If filers wish to submit an electronic test file for
Tax Year 1997 (returns to be filed in 1998), it must be submitted to IRS/MCC no earlier than November 1, 1997, and no laterthan
December 31, 1997.
.02 If a filer encounters problems while transmitting the electronic test files, contact IRS/MCC for assistance.
.03 Filers can verify the status of their transmitted test data by dialing the IRP-BBS. This information will be available within
two workdays after their transmission is received by IRS/MCC.
.04 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec.
16 for further details.

Sec. 4. Electronic Submissions
.01 Electronically filed information may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be
available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.02 Filers may submit as many documents as they choose electronically. Filers are allowed 240 minutes a day; however, more
time may be requested if needed. It may be advantageous to break down large files (files in excess of two hours of transmission
time) into several smaller files. For example, if large files contain several types of returns or payers, transmit each type of return or
payer as a separate file. As a result, if only one of the files is incorrect, a replacement would be needed for only the incorrect file.
.03 Do not transmit data using IRP-BBS January 1 through January 7. This will allow time for the IRP-BBS to be updated
to reflect current year changes.
.04 Data compression is encouraged when submitting information returns by way of the IRP-BBS. MCC has the ability to decompress files created using several popular software compression programs such as ARC, LHARC, and PKZIP. Software data
compression can be done alone or in conjunction with V.42bis hardware compression.
The time required to transmit information returns electronically will vary depending on the modem speed and the type of data
compression used, if any. However, transmissions to IRP-BBS will be significantly faster than electronic filing to the mainframe.
The time required to transmit a file can be reduced by as much as 85 percent by using software compression and hardware
compression.
The following are actual transmission rates achieved in test uploads at MCC using compressed files (PKZIP) and the XMODEM1K protocol. The actual transmission rates will vary depending on the protocol that is used. (ZMODEM is normally the fastest protocol and XMODEM and KERMIT are the slower protocols.)
Transmission Speed in bps

500 Records

2500 Records

10000 Records

9600

40 sec

2 min 50 sec

12 min 21 sec

19200

31 sec

1 min 34 sec

7 min 1 sec

38400

17 sec

36 sec

4 min 7 sec

.05 Files submitted to IRP-BBS must have a unique filename; therefore, the IRP-BBS will build the filename that must be used.
The name will consist of the filer’s TCC, submission type (T= Test, P= Production, C = Correction, and R = Replacement) and a sequence number. Filers may call the file anything they choose on their end. The sequence number will be incremented every time the
filers send, or attempt to send, a file. Record the upload date, time, and filename. This information will be needed by MCC in order
to identify the file if assistance is required and to complete Form 4804.

Sec. 5. Transmittal Requirements
.01 The results of the electronic transmission will be posted to the (F)ile Status area of the IRP-BBS; however, no further processing will occur until the signed Form 4804 is received. The transmitter must send the signed Form 4804 the same day the electronic transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02 Form 4804 can be ordered by calling the IRS toll-free forms and publication order number 1-800-TAX-FORM, (1-800-8293676), downloaded from the IRP-BBS, or it may be computer-generated. If a filer chooses to computer-generate Form 4804, all of
the information contained on the original form, including the affidavit, must also be contained on the computer-generated form.

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.03 The filer whose TCC is used in the “A” Record is responsible for submitting the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:

✉

If by Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359
☞ Note: The ZIP Code has changed from 25401–1359 to 25402–1359 for the IRS P.O. Box addresses for Martinsburg,
WV
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
.05 A signed Form 4804 submitted for electronically filed information returns may be sent to IRS/MCC at the following number:
304-264-5602. Faxed transmittals will allow IRS/MCC to begin processing the file immediately; however, a filer must still send the
actual signed Form 4804 the same day as the electronic submission.

Sec. 6. Information Reporting Program Bulletin Board System (IRP–BBS) Specifications
.01 The IRP-BBS is an electronic bulletin board system available to filers of information returns. In addition to filing information
returns electronically, the IRP-BBS provides other capabilities. Some of the advantages of IRP-BBS are as follows:
(1) Notification within two workdays as to the acceptability of the data transmitted.
(2) Immediate access to the latest changes and updates that affect the Information Reporting Program at IRS/MCC (program,
legislative, etc.).
(3) Access to publications such as the Publication 1220 as soon as they are available.
(4) Capability to communicate with IRS/MCC personnel.
(5) Ability to retrieve information and files applicable to the IRP-BBS.
.02 The IRP-BBS is available for public use and accessible using various personal computer communications equipment; however, electronic submission of information returns is limited to holders of valid TCCs. ATCC is not needed to access those portions
of the IRP-BBS that contain forms and publications or to leave questions or messages for IRS/MCC personnel.
.03 Filers using IRP-BBS can determine the acceptability of files submitted by checking the file status area of the bulletin board.
These reports are not immediately available but will be available two workdays after the transmission is received by IRS/MCC.
.04 Contact the IRP-BBS by dialing 304-264-7070. The communication software settings for IRP-BBS are:
— No parity
— Eight data bits
— One stop bit
— Full duplex
The communication software should be set up to use the fastest speed allowed by the filer’s modem.
.05 Due to the large number of communication products available, it is impossible to provide specific information on a particular
software package or hardware configuration. Filers should contact their software or hardware supplier for assistance.
.06 IRP-BBS software provides a menu-driven environment allowing access to different parts of IRP-BBS. Whenever possible,
IRS/MCC personnel will provide assistance in resolving any communication problems with IRP-BBS.
.07 IRP-BBS can be accessed at speeds from 1200 to 28,800 bps. The speed is automatically negotiated for connection at the
speed of the calling modem. The communication standards supported include Industry Standard 212A, V.22bis, V.32, V.32bis, V.34,
and V.FC. Point-to-point error control is supported using the V.42 ITU-T standard or MNP 2-4. Data compression is supported
using V.42bis ITU-T standard or MNP5.

Sec. 7. IRP–BBS First Logon Procedures
.01 The following information will be requested to set up the filer’s user profile when logging onto the IRP-BBS for the first time.
(A) Enter the letter, that corresponds to the filer’s terminal, from the following:

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IBM PC
ADM-3
TRS-80
VT-100

IBM w/ANSI Atari
H19/Z19/H89 Televid 925
Vidtex
VT-52
if none of the above

Most PCs, clones, etc., will select the IBM PC emulation. Machines with color, CGA, EGA, or V G A should select IBM
w/ANSI.
(B) Upper/lower case, line feed needed, O (zero) nulls after each , do you wish to modify this? (Most users answer no.)
Common User Problems
Problem

Probable Cause

Solution

File does not upload/download

Not starting communication when
prompted by ‘Awaiting Start Signal’

Start upload/download on filers end

All files not processed

Compressing several files into one
filename

Compress only one file for every filename

Replacement needed

Original data does not meet
processing and/or format requirements

Replacement must be submitted within 45
days of original transmission

Cannot determine file status

Not dialing back thru IRP-BBS to
check the status of the file

Within 24 to 48 hours after sending a file,
check under (F)ile Status for notification
of acceptability

Transfer aborts before it starts

Transfer protocol mismatch

Ensure protocols match on both the
sending and receiving ends

IRS Encountered Problems

Problem

Probable Cause

Solution

Loss of carrier during session

Incorrect modem settings on user’s end

Reference your modem manual about
increasing the value of the S10 register

Unreadable screens after selecting
“IBM w/ANSI”

ANSI.SYS driver not loaded in the
user’s PC

Select non ANSI under (Y) our settings

IRS cannot complete final
processing of data

User did not mail the Form 4804

Mail completed Form 4804 the same day
as the electronic transmission

IRS cannot determine which file is
being replaced

User did not indicate which file
is being replaced

Must enter the file name that is being
replaced under the replacement option

IRS cannot determine the type
of file being sent

User incorrectly indicated T, P, C,
or R for the type of file

When prompted, enter the correct
type of file for data being sent

Replacement file not returned within
45 days

User did not dial back thru IRP–BBS
to check the status of file

Within two workdays check under (F)ile
Status for notification of acceptability

Duplicate data

Transmitter sends corrections for
entire file

Only submit corrections for incorrect
records

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Part E. Magnetic/Electronic Specifications For Extensions of Time

Sec. 1. General
.01 The specifications in Part E include the required 200-byte record format for extensions of time to file requests submitted magnetically or electronically. Also included are the instructions for the information that is to be entered in the record. Filers are advised to read this section in its entirety to ensure proper filing.
.02 Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electronically. If you meet the threshold of more than 50 payers when requesting an extension but are below the 250 documents threshold,
you must still submit a Form 4419, Application for Filing Information Returns Magnetically/Electronically.
Requests for extensions of time may be made for Forms 1098, 1099, 5498, W-2G, W-2, and 1042-S.
.03 For Tax Year 1997 (returns due to be filed in 1998), transmitters requesting an extension of time to file for more than 50 payers (not payees) are required to file the extension request magnetically or electronically. Transmitters requesting an extension
of time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed
on tape, tape cartridge, 5 1/4- and 3 1/2-inch diskette, or electronically.
.04 For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809, Request for Extension of Time To File Information Returns, in the same package as the corresponding media. For extension requests filed electronically, the transmitter must FAX the Form 8809 the same day the transmission is made.
.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names
and TINS with the Form 8809. However, Box 6 of the Form 8809 must be completed with the total number of records included on the magnetic media or electronic file.
.06 To be considered, an extension request must be submitted or transmitted on or before the due date of the returns; otherwise,
the request will be denied.
.07 The extension record format is also on the IRP-BBS and can be downloaded. See Part D for more information on how to
contact the IRP–BBS.
.08 Amagnetically-filed request for an extension of time should be sent using the following addresses:

✉

If by Postal Service:

IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879, MS-360
Kearneysville, WV 25430
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
☞ Note: Due to the large volume of mail received by IRS/MCC and the time factor involved in processing the Form 8809, it
is imperative that the attention line be present on all envelopes or packages containing Extension of Time (EOT) requests.
.09 Requests for extension of time to file postmarked by the United States Postal Service on or before the due date of the returns,
and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the “timely mailing as timely filing” rule. A similar rule applies to designated private delivery services (PDSs). See section 10 of Part A for more information on
PDSs. For requests delivered by a designated PDS, but through a non-designated service, the actual date of receipt by IRS/MCC
will be used as the filing date.
.10 Transmitters who submit their extensions of time requests magnetically or electronically will receive a letter from IRS/MCC
with an attached list of the payers specifying approval and/or denial.
.11 Do not submit tax year 1997 extensions of time to file requests on magnetic media or electronically before January 1, 1998.
.12 Filers may request an extension of time as soon as they are aware that an extension is necessary but not later than the due date
of the return. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances a request for an extension of time could be denied. In such cases, the transmitter receives a denial letter. When this denial letter is received, the transmitter has 20 days to provide the additional or necessary information and resubmit the extension request to IRS/MCC.
.13 Each piece of magnetic media must have an external media label containing the following information:
(a) Transmitter name
(b) Transmitter Control Code (TCC)

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(c) Tax year
(d) The words “Extension of Time”
(e) Record count
.14 A request for an extension of time to file is not automatically granted. Approval or denial is dependent on information provided on the Form 8809.
.15 If the first request for an extension of time to file was submitted magnetically or electronically, additional extension requests
should be submitted in the same manner.
.16 If an additional extension of time is needed, a second Form 8809 and file may be submitted before the end of the initial extension period. Line 7 on the form should be checked to indicate that the original extension has been received and the additional extension is being requested.
.17 See part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are additional questions or concerns, contact IRS/MCC.

Sec. 2. Magnetic Tape, Tape Cartridge, 8mm, 4mm and QIC (quarter inch cartridge), 5 1/4- and
3 1/2-inch Diskette and Electronic Specifications
.01 Tape specifications are as follows:
(a) 9 track.
(b) EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) recording mode.
(c) 1600 or 6250 BPI.
(d) Ablock must not exceed 32,600 tape positions and must be a multiple of 200.
(e) Record length of 200 bytes.
(f) Labeled or unlabeled tapes may be submitted.
.02 Tape cartridge specifications are as follows:
(a) Must be IBM 3480, 3490, or AS400 compatible.
(b) Must meet American National Standard Institute (ANSI) standards and have the following characteristics:
(1) Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by
1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3) Cartridges will be 18-track or 36-track parallel. Indicate on the external media label if the tape cartridge is 18- or 36track.
(4) Mode will be full function.
(5) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(6) Either EBCDIC or ASCII.
(c) Ablock must not exceed 32,600 tape positions and must be a multiple of 200.
(d) Record length of 200 bytes.
(e) Labeled or unlabeled tape cartridges may be submitted.
.03 8mm, 4mm, and Quarter Inch Cartridge Specifications
(a) In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(1) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(a) Created from an AS400 operating system only.
(b) 8mm (.315-inch) tape cartridges will be 2 1/2 -inch by 3 3/4-inch.
(c) The 8mm tape cartridges must meet the following specifications:
Tracks
Density
Capacity
1
20 (43245 BPI)
2.3 Gb (10Gb)
1
21 (45434 BPI)
5 Gb (20 Gb)
(d) Mode will be full function.
(e) Compressed data is not acceptable.
(f) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge.
(g) A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per
file or per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will
indicate the sequence of the cartridge within the file 1 of 3, 2 of 3, or 3 of 3 and would appear in the header label
IRSTAX.001, IRSTAX.002, and IRSTAX.003. on each cartridge of the file. The end of transmission “F” Record
should be placed on the last cartridge only for files containing multiple cartridges.
(2) The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,600 tape positions.

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(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with
9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. Arecord may not contain any control
fields or block descriptor fields which describe the length of the block or the logical records within a block (the blocking factor) must be constant in every block with the exception the last block which may be shorter (see item (b)
above). The block length must be evenly divisible by 200.
(d) Various SAVE commands have been successful, however, the S AVE OBJECT COMMAND is not acceptable.
(e) Extraneous data following the “F” Record will result in media being returned for replacement.
(f) Records may not span blocks.
(g) No more than 250,000 documents per cartridge and per file.
(3) For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a suggested filename.
(4) For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
(5) If extraneous data follows the End of Transmission “F” Record, the file must be returned for replacement. T h e r e f o r e ,
IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation
of data when submitting information returns.
(6) IRS/MCC can only read one data file on a tape. Adata file is a group of records which may or may not begin with a tapemark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
(7) 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4mm cassettes will be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4 Gb.
(e) The general specifications for 8mm cartridges will also apply to the 4mm cassettes.
(8) Various Quarter Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(a) QIC cartridges will be 4” by 6”.
(b) QIC cartridges must meet the following specification:
Size
Tracks
Density
Capacity
QIC-11
4/5
4 (8000 BPI)
22Mb or 30Mb
QIC-24
8/9
5 (8000 BPI)
45Mb or 60Mb
QIC-120
15
15 (10000 BPI)
120Mb or 200Mb
QIC-150
18
16 (10000 BPI)
150Mb or 250Mb
QIC-320
26
17 (16000 BPI)
320Mb
QIC-525
26
17 (16000 BPI)
525Mb
QIC-1000
30
21 (36000 BPI)
1Gb
QIC-1350
30
18 (51667 BPI)
1.3Gb
QIC-2Gb
42
34 (40640 BPI)
2Gb
(c) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
.04 Diskette specifications are as follows:
(a) 5 1/4- or 3 1/2-inches in diameter.
(b) ASCII recording mode only. Additional specifications may be found in Part B, Sec. 3, of this revenue procedure.
(c) Record length of 200 bytes.
(d) Diskettes must be created using the MS-DOS operating system.
(e) Filename of IRSEOTmust be used. No other filenames are acceptable. If a file will consist of more than one diskette,
the filename IRSEOT will contain a three-digit extension. This extension will indicate the sequence of the diskettes
within the file. For example, the first diskette will be named IRSEOT.001, the second diskette will be named
I R S E O T.002, etc.
(f) Delimiter character commas (,) must not be used.
(g) Positions 199 and 200 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
.05 Bisynchronous electronic specifications include:
(a) Transmitter must have Transmitter Control Code (TCC) and a valid IRS/MCC-assigned password prior to submitting
data files.

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(b) Access phone numbers:
4800 bps
304-264-7080
9600 bps
304-264-7040
14400 bps
304-265-7045
☞ Note: See Part C, Bisynchronous (Mainframe) Electronic Filing Specifications, for detailed information on filing with
IRS/MCC via bisynchronous protocols.
.06 IRP-BBS specifications include:
(a) Transmitter must have Transmitter Control Code (TCC).
(b) IRP-BBS access phone number is 304-264-7070.
(c) Communications software settings are:
— No parity
— Eight data bits
— One stop bit
— Full duplex
(d) Access speeds from 1200 to 28,800 bps.
☞ Note: See Part D, IRP–BBS Electronic Filing Specifications, for detailed information on filing with IRS/MCC via
IRP–BBS.

Sec. 3. Record Layout
.01 Positions 6 through 174 of the following record should contain information about the payer for whom the extension of time
to file is being requested. Do not enter transmitter information in these fields. Only one TCC may be present in a file.
Record Layout for Extension of Time
Field Position

Field Title

1–5

Transmitter Control
Code (TCC)

5

Required. Enter the five digit Transmitter Control Code
issued by IRS. Only one TCC per file is acceptable.

6–14

Payer
TIN

9

Required. Must be the valid nine-digit EIN/SSN assigned to the payer. Do not enter blanks, hyphens or
alpha characters. All zeros, ones, twos, etc. will have
the effect of an incorrect TIN. For foreign entities that
are not required to have a TIN, this field may be blank;
h o w e v e r, the Foreign Entity Indicator, position 176,
must be set to “X.”

15–54

Payer
Name

40

R e q u i re d. Enter the name of the payer whose T I N
appears in positions 6–14. Left justify information.

55–94

Second Payer
Name

40

If additional space is needed, this field may be used to
continue name line information (e.g., c/o First National
Bank); otherwise, enter blanks.

95–134

Payer
Address

40

Required. Enter the payer’s address. Street address
should include number, street, apartment or suite number
(or P.O. Box if mail is not delivered to a street address).

135–163

Payer City

29

Required. Enter payer city, town, or post office.

164–165

Payer State

2

Required. Enter payer valid U.S. Postal Service state
abbreviation (refer to Part A, Sec. 18).

166–174

Payer ZIP
Code

9

Required. Enter payer ZIPcode. If using a five-digit ZIP
code, left justify information and fill unused positions
with blanks.

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Description and Remarks

82

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175

Document Indicator
(See Note)

1

Required. Enter the document you are requesting an extension of time for using the following code:
Code
1
2

Document
W–2
1098, 1099–A, 1099–B, 1099–C,
1099–DIV, 1099–G, 1099–INT,
1099–LTC, 1099–MISC, 1099–MSA,
1099–OID, 1099–PATR, 1099–R,
1099–S, or W–2G
5498, 5498–MSA
1042–S
REMIC Documents
(1099–INT or 1099–OID)

3
4
5

☞ Note: Do not enter any other values in this field. Submit a separate record for each document. For example, if you are
requesting an extension for 1099–INT and 5498 for the same payer, submit one record with “2” coded in this field and another record with “3” coded in this field. If you are requesting an extension for 1099–DIV and 1099–MISC for the same
payer, submit one record with “2” coded in this field.
176

Foreign Entity
Indicator

177–198

Blank

22

199–200

Blank

2

1–5
Transmitter Control
Code

Payer
State
164–165

6–14
Payer
TIN

1

Enter character “X” if the payer is a foreign entity.

Enter blanks.
Enter blanks. Diskette filers may code the ASCII carriage return/line feed (cr/lf) characters.

Extension of Time Record Layout
15–54
55–94
Payer
Name

95–134

Second Payer
Name

Payer
Address

Payer
Zip Code

Document
Indicator

Foreign Entity
Indicator

166–174

175

176

135–163
Payer
City

Blank
177–198

Blank or
CR/LF
199–200
Part F. Miscellaneous Information

Section 1. Addresses for Martinsburg Computing Center
To submit an application to file, waiver request (forms), correspondence, and magnetic media files, use the following:

✉

Mailing by U. S. Postal Service:
IRS—Martinsburg Computing Center
Information Reporting Program
P. O. Box 1359, MS-360
Martinsburg, WV 25402-1359

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Shipping private delivery service:
IRS—Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401
To submit a magnetically filed extension of time request, use the following:
Mailing by U.S. Postal Service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879, MS-360
Kearneysville, WV 25430
Shipping by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road, MS-360
Martinsburg, WV 25401

Section 2. Telephone Numbers for Contacting IRS/MCC

Information Reporting Program Call Site:

☎

?
304-263-8700

Between 8:30 a.m. and 4:30 p.m. Eastern Time
Monday through Friday
Telecommunication Device for the Deaf (TDD):
304-267-3367
Information Returns FAX Machine:
304-264-5602
Electronic Filing:
(IRP–BBS)
(Asynchronous)
304-264-7070
Mainframe Filing
(Bisynchronous Filing)
4.8 Modems 304-264-7080
9.6 Modems 304-264-7040
14.4 Modems 304-264-7045
HOURS OF OPERATION —
24 HOURS ADAY
7 DAYS AWEEK
This is the end of Publication 1220 for Tax Year 1997.

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IRB

IRB

Box

Box

of

of

IRB

IRB

Box

Box

of

of

IRB

IRB

Box

Box

of

of

Internal Revenue Service
Martinsburg Computing Center
Information Reporting Program
P O Box 1359
Martinsburg WV 25402

Internal Revenue Service
Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road
Martinsburg WV 25401

(use this label for U S Postal deliveries)

(use this label for truck or air freight deliveries)

(Reproduce as needed)

To expedite handling, please affix this label, or a substitute
label, to your OUTSIDE shipping container.
1997–30 I.R.B.

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July 28, 1997