Internal Revenue Bulletin 1997-30 (PDF rendition): IRS Notices

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

EMPLOYMENT TAX
T.D. 8723, page 4.
Final and temporary regulations under section 6302 of the
Code relate to the deposit of federal taxes by electronic
funds transfer (EFT).
Notice 97–43, page 9.
This notice provides guidance relating to the waiver of the
failure-to-deposit penalty for certain taxpayers required to
begin using electronic funds transfer on or after July 1,
1997.
ADMINISTRATIVE
Rev. Proc. 97–33, page 10.
Tax forms and instructions. Information is provided to tax-
payers about the Electronic Federal Tax Payment System
(EFTPS). EFTPS is an electronic remittance system for mak-
ing federal tax deposits and federal tax payments.
Rev. Proc. 97–34, page 14.
Electronic filing; magnetic media; 1997 form specifi-
cations. Specifications are set forth for the magnetic or
e l e c t ronic filing of 1997 Forms 1098, 1099, 5498, and W- 2 G .
The forms may be filed with the IRS using 1/2 inch magnet-
ic tape; IBM 3480/3490 or AS400 compatible tape car-
tridges; 8 mm tape cartridges; 4 mm cartridges; quarter
inch cartridges; or 5 1/4-, 3 1/2-inch diskettes. Rev. Proc.
96–36 superseded.
Announcement 97–73, page 86.
An updated edition of Publication 939, General Rule for
Pensions and Annuities (revised June 1997), will be available
in August.
Internal Revenue
bulletin
Bulletin No. 1997–30
July 28, 1997
Finding Lists begin on page 90.
Announcement of Disbarments and Suspensions begins on page 87.
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Tr e a s u r y
Internal Revenue Service

Mission of the Service
The purpose of the Internal Revenue Service is to collect
the proper amount of tax revenue at the least cost; serv e
the public by continually improving the quality of our prod-
ucts and services; and perf o rm in a manner warr a n t i n g
the highest degree of public confidence in our integrity, eff i-
ciency and fairn e s s .
2
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to adm i n i s-
ter the Internal Revenue Code. Tax policy for raising re v e n u e
is determined by Congre s s .
With this in mind, it is the duty of the Service to carry out that
policy by correctly applying the laws enacted by Congress;
to determine the reasonable meaning of various Code provi-
sions in light of the Congressional purpose in enacting them;
and to perform this work in a fair and impartial manner, with
neither a government nor a taxpayer point of view.
At the heart of administration is interpretation of the Code. It
is the responsibility of each person in the Service, charged
with the duty of interpreting the law, to try to find the true
meaning of the statutory provision and not to adopt a
strained construction in the belief that he or she is “protect-
ing the revenue.” The revenue is properly protected only
when we ascertain and apply the true meaning of the statute.
The Service also has the responsibility of applying and
administering the law in a reasonable, practical manner.
Issues should only be raised by examining officers when
they have merit, never arbitrarily or for trading purposes.
At the same time, the examining officer should never hesi-
tate to raise a meritorious issue. It is also important that
c a re be exercised not to raise an issue or to ask a court to
adopt a position inconsistent with an established Serv i c e
p o s i t i o n .
Administration should be both reasonable and vigorous. It
should be conducted with as little delay as possible and
with great courtesy and considerateness. It should never
t ry to overreach, and should be reasonable within the
bounds of law and sound administration. It should, howev-
e r, be vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax devices and
f r a u d .

The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly and may be obtained
f rom the Superintendent of Documents on a subscription
basis. Bulletin contents of a permanent nature are consoli-
dated semiannually into Cumulative Bulletins, which are sold
on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and pro c e d u res that affect the rights
and duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings
to taxpayers or technical advice to Service field off i c e s ,
identifying details and information of a confidential nature
are deleted to prevent unwarranted invasions of privacy and
to comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have
the force and effect of Tre a s u ry Department Regulations,
but they may be used as precedents. Unpublished ru l i n g s
will not be relied on, used, or cited as precedents by Service
personnel in the disposition of other cases. In applying pub-
lished rulings and procedures, the effect of subsequent leg-
islation, regulations, court decisions, rulings, and pro c e-
dures must be considered, and Service personnel and oth-
ers concerned are cautioned against reaching the same con-
clusions in other cases unless the facts and circumstances
are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions, and Subpart B, Legislation and Related
Committee Reports.
P a rt III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross re f e rences to
these subjects are contained in the other Parts and Sub-
parts. Also included in this part are Bank Secrecy Act Admin-
istrative Rulings. Bank Secrecy Act Administrative Rulings
are issued by the Department of the Treasury’s Office of the
Assistant Secretary (Enforcement).
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemaking
and the disbarment and suspension list included in this part,
none of these announcements are consolidated in the Cumu-
lative Bulletins.
The first Bulletin for each month includes a cumulative index
for the matters published during the preceding months.
These monthly indexes are cumulated on a quarterly and
semiannual basis, and are published in the first Bulletin of the
succeeding quarterly and semi-annual period, re s p e c t i v e l y.
3
Introduction
The contents of this publication are not copyrighted and may be reprinted freely.Acitation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

Section 6302.—Mode or Time of
Collection
26 CFR 31.6302–1: Federal tax deposit rules for
withheld income taxes and taxes under the Federal
Insurance Contributions Act (FICA) attributable to
payments made after December 31, 1992.
T.D. 8723
D E PA RTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 31, and 40
Federal Tax Deposits by Electro n i c
Funds Transfer
A G E N C Y: Internal Revenue Service
(IRS), Treasury.
ACTION: Final and temporary regula-
tions.
S U M M A RY: This document contains
final regulations relating to the deposit of
Federal taxes by electronic funds transfer
(EFT). The regulations provide rules re-
garding which taxpayers must make de-
posits by EFT, the types of Federal taxes
that must be deposited by EFT, and when
deposits by EFTmust begin. The regula-
tions affect taxpayers required to make de-
posits of Federal taxes by EFT. The final
regulations reflect changes to the Internal
Revenue Code of 1986 (Code) made by
the North American Free Trade A g r e e m e n t
Implementation Act and the Small Busi-
ness Job Protection Act of 1996.
DATES: The final regulations are effec-
tive July 14, 1997. For dates of applica-
bility of these regulations, see §31.6302–
1(h)(2).
FOR FURTHER INFORMATION CON-
TA C T: Vincent G. Surabian, 202-622-
6232 (not a toll-free number).
SUPPLEMENTARYINFORMATION:
Background
Section 523 of the North American Free
Trade Agreement Implementation A c t ,
Public Law 103–182, 107 Stat. 2057 (De-
cember 8, 1993), amended section 6302 of
the Code by enacting a new subsection (h)
requiring the Secretary of the Treasury to
prescribe such regulations as may be nec-
essary for the development and implemen-
tation of an EFTsystem to be used for the
collection of depository taxes.
On July 11, 1994, the IRS published
temporary regulations (T.D. 8553) in the
FederalRegister(59 FR 35414) relating
to the deposit of Federal taxes by EFT.A
notice of proposed rulemaking
(IA–03–94) cross-referencing the tempo-
rary regulations was also published in the
Federal Registerfor the same day (59 FR
35418). Subsequently, on March 21,
1996, additional temporary regulations
( T.D. 8661) were published in the F e d e r a l
R e g i s t e r(61 FR 11548) as well as a notice
of proposed rulemaking (IA–03–94, 61
FR 11595) that both cross–referenced the
temporary regulations published that day
and amended the notice of proposed rule-
making published July 11, 1994. Many
written comments were received in re-
sponse to these notices of proposed rule-
making. Apublic hearing on the 1994 no-
tice was held on October 3, 1994. T h e r e
were no requests for a public hearing on
the 1996 notice and none was held.
Section 1809 of the Small Business Job
Protection Act of 1996, Public Law
104–188, 110 Stat. 1755 (August 20,
1996), delayed the date by which certain
taxpayers must begin EFTdeposits.
After consideration of all comments,
the regulations proposed by IA–03–94 are
adopted as revised by this Treasury deci-
sion, and the corresponding temporary
regulations are removed. The revisions
are discussed below.
Explanation of Provisions
Under the temporary regulations, the re-
quirement to deposit by EFTis based on
the taxpayer’s total deposits of certain
taxes during certain “determination peri-
ods.” If the taxpayer’s deposits of the
taxes during a determination period ex-
ceed a prescribed dollar threshold, the tax-
payer must use EFTto make deposits on
and after the date prescribed in the tempo-
rary regulations.
DELAYIN JANUARY1, 1997,
START-UPDATE
The Small Business Job Protection A c t
of 1996 provides that taxpayers first re-
quired by the temporary regulations to de-
posit by EFTfor return periods beginning
on and after January 1, 1997, need not
begin to deposit by EFTuntil July 1, 1997.
The final regulations provide that these
taxpayers must use EFTto make deposits
that are due on or after July 1, 1997, and
relate to return periods beginning on or
after January 1, 1997. For example, a cor-
poration to which this rule applies, and
which files its income tax returns on a cal-
endar year basis, must use EFTto make
corporate and estimated income tax de-
posits that are due on or after July 1, 1997.
Thus, the corporation’s September 15,
1997, and subsequent estimated tax pay-
ments must be made by EFT.
PENALTYRELIEF
Under Notice 97–43, (1997–30 I.R.B.),
the IRS announced that no penalties for
failure to deposit by EFTwill be imposed
through December 31, 1997, on any tax-
payer first required to deposit by EFTon
or after July 1, 1997. These taxpayers
will remain liable for the failure-to-de-
posit penalty (absent reasonable cause)
under section 6656 if they fail to make a
required deposit (using either EFTo r
paper coupons) in a timely manner.
THRESHOLD FOR
JANUARY1, 1999 MANDATE
The temporary regulations provide that
if a taxpayer’s employment tax deposits
during 1997 exceed $20,000, or, if no em-
ployment taxes are deposited, the other
taxes deposited in 1997 exceed $20,000,
the taxpayer must begin depositing by
EFTfor return periods beginning on and
after January 1, 1999. Based on informa-
tion available in 1994, the IRS and Trea-
sury Department concluded that the
$20,000 threshold was necessary to as-
sure that 94% of employment taxes and
94% of other depository taxes would be
collected by EFTin fiscal year 1999 and
subsequent years as required by section
6302(h). Based on information currently
available, the IRS and Treasury Depart-
ment have concluded that the statutory re-
quirement for 1999 and subsequent years
will be satisfied without the need to re-
duce the threshold below $50,000. A c-
c o r d i n g l y, the final regulations raise the
threshold for the January 1, 1997 through
1997–30 I.R.B.4July 28, 1997
P a rt I. Rulings and Decisions Under the Internal Revenue Code of 1986

December 31, 1997 determination period
from $20,000 to $50,000.
TECHNICALCORRECTION––FIRST
REQUIRED DEPOSIT
The final regulations revise the special
rule requiring taxpayers with no employ-
ment tax deposits to use EFTif their de-
posits of other taxes exceed a specified
threshold. As revised, the requirement to
deposit by EFT“applies to all depository
taxes due with respect to deposit obliga-
tions incurred for return periods begin-
ning on and after the applicable effective
date.” The words “for return periods be-
ginning” were inadvertently omitted in
the temporary regulations.
MISCELLANEOUS
The definition of time deemed de-
positedhas been revised solely for pur-
poses of clarity.
Certain obsolete provisions in the tem-
porary regulations relating to agreements
entered into by the Commissioner with
third party bulk data processors for the
period prior to January 1, 1995, have been
deleted.
Public Comment
Some commentators asked if the IRS in-
tends to notify each affected taxpayer of the
E F Trequirement before the date on which
the taxpayer must begin depositing by EFT.
The IRS mailed several advance notices to
each taxpayer that became subject to the
E F Trequirement in 1997, and plans to pro-
vide similar notices to taxpayers required to
begin depositing by EFTin 1998.
Other commentators stated that it would
be easier for taxpayers to determine
whether they are subject to the rules if the
thresholds were based on deposit liabilities
i n c u rre dduring the calendar year rather
than deposits madeduring the calendar
y e a r. Although the specific suggestion was
not adopted, the IRS is addressing the un-
derlying concern in other ways. The IRS
will make the threshold determination for
a ffected taxpayers and, as indicated above,
notify those taxpayers, in advance, of their
obligation to begin depositing by EFT.
Some commentators suggested that the
final regulations should clarify whether
tax payments made with returns by check,
money order, etc. are taken into account
in threshold determinations. Payments
submitted with a return are not “deposits”
and are, therefore, not taken into account
in determining if a threshold has been ex-
ceeded for EFTpurposes.
Other commentators stated that the de-
termination period for EFTshould be the
same as the lookback period used in de-
termining a taxpayer’s deposit status
(semi-weekly or monthly) for employ-
ment tax deposit purposes. This sugges-
tion was not adopted because the look-
back periods for determining a taxpayer’s
deposit status with respect to employment
tax vary depending upon the type of em-
ployment tax being deposited (for exam-
ple, Form 943 and 945 depositors have a
calendar year lookback period whereas
Form 941 depositors do not).
Several commentators suggested em-
ployers need a safe harbor more generous
than the current 98 percent rule because
deposits by EFTmust be initiated earlier
than current paper coupon deposits. The
IRS and Treasury Department do not be-
lieve it is necessary to change the safe
harbor. EFTdepositors may use the Same
Day Payment option (Electronic Tax Ap-
plication (ETA)) and, when using this op-
tion, are not required to initiate deposits
any earlier than paper coupon depositors.
Thus, EFTdepositors will have as much
time as they have always had to determine
the amount they are required to deposit.
One commentator indicated that fol-
lowing the ACH Holiday Schedule will
cause problems for $100,000 next-day de-
positors. The IRS and Treasury Depart-
ment believe that the availability of ETA
will alleviate any problems caused by the
ACH Holiday Schedule.
Another commentator noted that many
securities firms that have next-day de-
posits will be unable to comply with the
E F Tdeposit requirement because of the
nature of the securities business. T h e
commentator recommends either exempt-
ing nonpayroll related income tax de-
posits from the EFTdeposit requirement
or allowing the use of Fedwire on a regu-
lar basis. Since ETAincludes Fedwire
value transfers, Fedwire non-value trans-
fers, and Direct Access transactions, and
is available for taxpayers to use on a regu-
lar basis, securities firms should be able
to comply with the next-day deposit rule.
Another commentator suggested that a
deposit by EFTshould be considered
timely if initiated with the A u t o m a t e d
Clearing House (ACH) in a timely and
correct manner and that the taxpayer
should not be responsible for possible
ACH breakdowns. Rev. Rul. 94–46
(1994–2 C.B. 278), has been published to
address this situation. The revenue ruling
provides guidance on establishing reason-
able cause for abatement of the failure-to-
deposit penalty in certain situations in-
volving deposits by EFT.
Acommentator suggested that the reg-
ulations should allow taxpayers to make
deposits by EFTfrom any institution that
has the ability to make ACH credit or
debit transfers and should not require the
taxpayers to open accounts with a Tr e a-
sury Financial Agent. Ataxpayer is not
required to open an account with a Trea-
sury Financial Agent. The ACH debit and
ACH credit options allow a taxpayer to
make a deposit from any of the many in-
stitutions that have the ability to make
ACH credit or debit transfers.
One commentator suggested that a
$500 minimum threshold should be pro-
vided for EFTdeposits. This change
would unduly complicate administration
of the rules and has not been adopted.
Some of the issues raised in comments
on the notice of proposed rulemaking pub-
lished on July 11, 1994, were addressed in
changes made to the temporary regula-
tions by T.D. 8661. These issues were dis-
cussed in the preamble to T.D. 8661 and
will not be addressed again here. In addi-
tion, several other comments that were
outside the scope of this regulations pro-
ject have not been addressed here.
Special Analyses
It has been determined that this Tr e a-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations, and, because
the notices of proposed rulemaking pre-
ceding the regulations were issued prior
to March 29, 1996, a Regulatory Flexibil-
ity Analysis is not required. Pursuant to
section 7805(f) of the Internal Revenue
Code, the two notices of proposed rule-
making preceding these regulations were
submitted to the Chief Counsel for Advo-
1997–30 I.R.B.5July 28, 1997

cacy of the Small Business A d m i n i s t r a-
tion for comment on their impact on small
business.
Drafting Information
The principal author of these regula-
tions is Vincent G. Surabian, Office of the
Assistant Chief Counsel (Income Tax &
Accounting). However, other personnel
from the IRS and Treasury Department
participated in their development.
*****
Amendments to the Regulations
Accordingly, 26 CFR parts 1, 31, and
40 are amended as follows:
PART1––INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by removing the cita-
tions for “Section 1.6302–1(a)”, and Sec-
tions 1.6302–1T, 1.6302–2Ta n d
1.6302–3T”, and “Section 1.6302–4T”
and adding entries in numerical order to
read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6302–1 also issued under 26
U.S.C. 6302(c) and (h).
Section 1.6302–2 also issued under 26
U.S.C. 6302(h).
Section 1.6302–3 also issued under 26
U.S.C. 6302(h).
Section 1.6302–4 also issued under 26
U.S.C. 6302(a) and (c). * * *
Par. 2. Section 1.6302–1 is amended as
follows:
1. The heading for paragraph (b) is re-
vised.
2. The text of paragraph (b) is redesig-
nated as paragraph (b)(1) and a heading
for (b)(1) is added.
3. Paragraph (b)(2) is added.
4. The OMB parenthetical at the end of
the section is removed.
The revised and added provisions read
as follows:
§1.6302–1 Use of Government deposi-
taries in connection with corporation in-
come and estimated income taxes and
certain taxes of tax-exempt organizations.
*****
(b) Manner of deposit––(1) Deposit by
Federal tax deposit coupon. * * *
(b)(2) Deposits by electronic funds
t r a n s f e r.For the requirement to deposit
corporation income and estimated income
taxes and certain taxes of tax-exempt or-
ganizations by electronic funds transfer,
see §31.6302–1(h) of this chapter.Atax-
payer not required to deposit by electronic
funds transfer pursuant to §31.6302–1(h)
of this chapter remains subject to the rules
of paragraph (b)(1) of this section.
§1.6302–1T[Removed]
Par. 3. Section 1.6302–1Tis removed.
Par. 4. Section 1.6302–2 is amended as
follows:
1. The heading for paragraph (b) is re-
vised.
2. Paragraph (c) is redesignated as
paragraph (b)(6).
3. Anew paragraph (c) is added.
4. The OMB parenthetical at the end of
the section is removed.
The revised and added provisions read
as follows:
§1.6302–2 Use of Government deposi-
taries for payment of tax withheld on non-
resident aliens and foreign corporations.
*****
( b )Deposits by Federal tax deposit
coupon. * * *
(c) Deposits by electronic funds trans-
f e r.For the requirement to deposit taxes
withheld on nonresident aliens and foreign
corporations by electronic funds transfer,
see §31.6302–1(h) of this chapter. At a x-
payer not required to deposit by electronic
funds transfer pursuant to §31.6302–1(h)
of this chapter remains subject to the rules
of paragraph (b) of this section.
*****
§1.6302–2T[Removed]
Par. 5. Section 1.6302–2Tis removed.
P a r. 6. In §1.6302–3, paragraph (c) is
revised to read as follows:
§1.6302–3 Use of Government deposi-
taries in connection with estimated taxes
of certain trusts.
*****
(c) C ro s s - re f e re n c e s. For further guid-
ance and instructions for certain banks and
financial institutions acting as fiduciaries
with respect to taxable trusts, see Rev.
Proc. 89–49 (1989–2 C.B. 615), (see
§601.601(d)(2) of this chapter) or any suc-
cessor revenue procedure. For the re-
quirement to deposit estimated tax pay-
ments of taxable trusts by electronic funds
t r a n s f e r, see §31.6302–1(h) of this chapter.
§1.6302–3T[Removed]
Par. 7. Section 1.6302–3Tis removed.
P a r. 8. Section 1.6302–4 is added to
read as follows:
§1.6302–4 Use of financial institutions in
connection with individual income taxes.
Voluntary payments by electronic funds
t r a n s f e r. An individual may voluntarily
remit by electronic funds transfer all pay-
ments of tax imposed by subtitle Aof the
Code, including any payments of esti-
mated tax. Such payments must be made
in accordance with procedures to be pre-
scribed by the Commissioner.
§1.6302–4T[Removed]
Par. 9. Section 1.6302–4Tis removed.
PART31––EMPLOYMENTTAXES
AND COLLECTION OF INCOME TAX
ATSOURCE
Par. 10. The authority citation for Part
31 is amended by removing the entries for
“Section 31.6302–1T”, and “Section
31.6302(c)–3T” and revising the entry
“Sections 31.6302–1 through 31.6302–3”
and by adding an entry for “Section
31.6302(c)–3” to read as follows:
Authority: 26 U.S.C. 7805 * * *
Sections 31.6302–1 through 31.6302–3
also issued under 26 U.S.C. 6302(a), (c),
and (h). * * *
Section 31.6302(c)–3 also issued under
26 U.S.C. 6302(h).
P a r. 11. In §31.0–1, paragraph (a) is
amended by adding a sentence at the end
of the paragraph to read as follows:
§31.0–1 Introduction.
(a) * * * The regulations in this part
also provide rules relating to the deposit
of other taxes by electronic funds transfer.
*****
P a r. 12. In §31.0–3, paragraph (f) is
amended by adding a sentence at the end
of the paragraph to read as follows:
§31.0–3 Scope of regulations.
*****
1997–30 I.R.B.6July 28, 1997

(f) * * * Subpart G of this part also
provides rules relating to the deposit of
other taxes by electronic funds transfer.
Par. 13. In §31.6302–1, paragraph (h) is
redesignated as paragraph (i), and new
paragraph (h) is added to read as follows:
§31.6302–1 Federal tax deposit rules for
withheld income taxes and taxes under
the Federal Insurance Contributions A c t
(FICA) attributable to payments made
after December 31, 1992.
*****
(h) Time and manner of deposit––de-
posits re q u i red to be made by electro n i c
funds transfer––(1) In general. Section
6302(h) requires the Secretary to prescribe
such regulations as may be necessary for
the development and implementation of an
electronic funds transfer system to be used
for the collection of the depository taxes as
described in paragraph (h)(3) of this sec-
tion. Section 6302(h)(2) provides a phase-
in schedule that sets forth escalating mini-
mum percentages of those depository taxes
to be deposited by electronic funds trans-
f e r. This paragraph (h) prescribes the rules
necessary for implementing an electronic
funds transfer system for collection of de-
pository taxes and for effecting an orderly
and expeditious phase-in of that system.
(2) T h reshold amounts, determination
periods, and effective dates.(i)(A) Tax-
payers whose aggregate deposits of the
taxes imposed by Chapters 21 (Federal
Insurance Contributions Act), 22 (Rail-
road Retirement Tax Act), and 24 (Collec-
tion of Income Tax at Source on Wages)
of the Internal Revenue Code during a 12-
month determination period exceed the
applicable threshold amount are required
to deposit all depository taxes described
in paragraph (h)(3) of this section by elec-
tronic funds transfer (as defined in para-
graph (h)(4) of this section) unless ex-
empted under paragraph (h)(5) of this
section. If the applicable effective date is
January 1, 1995, or January 1, 1996, the
requirement to deposit by electronic funds
transfer applies to all deposits required to
be made on or after the applicable effec-
tive date. If the applicable effective date
is July 1, 1997, the requirement to deposit
by electronic funds transfer applies to all
deposits required to be made on or after
July 1, 1997 with respect to deposit oblig-
ations incurred for return periods begin-
ning on or after January 1, 1997. If the
applicable effective date is January 1,
1998, or thereafter, the requirement to de-
posit by electronic funds transfer applies
to all deposits required to be made with
respect to deposit obligations incurred for
return periods beginning on or after the
applicable effective date. In general, each
applicable effective date has one 12-
month determination period. However,
for the applicable effective date January
1, 1996, there are two determination peri-
ods. If the applicable threshold amount is
exceeded in either of those determination
periods, the taxpayer becomes subject to
the requirement to deposit by electronic
funds transfer, effective January 1, 1996.
The threshold amounts, determination pe-
riods and applicable effective dates for
purposes of this paragraph (h)(2)(i)(A)
are as follows:
(B) Unless exempted under paragraph
(h)(5) of this section, a taxpayer that does
not deposit any of the taxes imposed by
chapters 21, 22, and 24 during the applic-
able determination periods set forth in
paragraph (h)(2)(i)(A) of this section, but
that does make deposits of other deposi-
tory taxes (as described in paragraph
(h)(3) of this section), is nevertheless sub-
ject to the requirement to deposit by elec-
tronic funds transfer if the taxpayer’s ag-
gregate deposits of all depository taxes
exceed the threshold amount set forth in
this paragraph (h)(2)(i)(B) during an ap-
plicable 12-month determination period.
This requirement to deposit by electronic
funds transfer applies to all depository
taxes due with respect to deposit obliga-
tions incurred for return periods begin-
ning on or after the applicable eff e c t i v e
date. The threshold amount, determina-
tion periods, and applicable eff e c t i v e
dates for purposes of this paragraph
(h)(2)(i)(B) are as follows:
(ii) Once a taxpayer is required to de-
posit by electronic funds transfer pursuant
to this paragraph (h)(2), the taxpayer must
continue to deposit by electronic funds
transfer. Until such time as a taxpayer is
required by this section to deposit by elec-
tronic funds transfer, the taxpayer may
voluntarily make deposits by electronic
funds transfer, but remains subject to the
rules of paragraph (i) of this section, per-
taining to deposits by Federal tax deposit
(FTD) coupon, in making deposits other
than by electronic funds transfer.
(3) Taxes required to be deposited by
e l e c t ronic funds transfer.The require-
ment to deposit by electronic funds trans-
fer under paragraph (h)(2) of this section
applies to all the taxes required to be de-
posited under §§1.6302–1, 1.6302–2, and
1.6302–3 of this chapter; §§31.6302–1,
31.6302–2, 31.6302–3, 31.6302–4, and
31.6302(c)–3; and §40.6302(c)–1 of this
chapter.
(4) D e f i n i t i o n s––(i) E l e c t ronic funds
t r a n s f e r.An e l e c t ronic funds transfer i s
any transfer of depository taxes made in
accordance with Revenue Procedure
97–33, (1997–30 I.R.B.), (see
§601.601(d)(2) of this chapter), or in ac-
cordance with procedures subsequently
prescribed by the Commissioner.
(ii) Taxpayer.For purposes of this sec-
tion, a taxpayeris any person required to
deposit federal taxes, including not only
individuals, but also any trust, estate,
partnership, association, company or cor-
poration.
(5) E x e m p t i o n s. If any categories of
taxpayers are to be exempted from the re-
quirement to deposit by electronic funds
t r a n s f e r, the Commissioner will identify
those taxpayers by guidance published in
the Internal Revenue Bulletin. (See
§601.601(d)(2)(ii)(b) of this chapter.)
T h reshold A m o u n tDetermination PeriodApplicable Effective Date
$78 million1–1–93 to 12–31–93January 1, 1995
$47 million1–1–93 to 12–31–93January 1, 1996
$47 million1–1–94 to 12–31–94January 1, 1996
$50 thousand1–1–95 to 12–31–95July 1, 1997
$50 thousand1–1–96 to 12–31–96January 1, 1998
$50 thousand1–1–97 to 12–31–97January 1, 1999
T h reshold A m o u n tDetermination PeriodApplicable Effective Date
$50 thousand1–1–95 to 12–31–95January 1, 1998
$50 thousand1–1–96 to 12–31–96January 1, 1998
$50 thousand1–1–97 to 12–31–97January 1, 1999
1997–30 I.R.B.7July 28, 1997

(6) Separation of deposits. Ad e p o s i t
for one return period must be made sepa-
rately from a deposit for another return
period.
(7) Payment of balance due. If the ag-
gregate amount of taxes reportable on the
applicable tax return for the return period
exceeds the total amount deposited by the
taxpayer with regard to the return period,
then the balance due must be remitted in
accordance with the applicable form and
instructions.
(8) Time deemed deposited.Adeposit
of taxes by electronic funds transfer will
be deemed made when the amount is
withdrawn from the taxpayer’s account,
provided the U.S. Government is the
payee and the amount is not returned or
reversed.
(9) Time deemed paid. In general, an
amount deposited under this paragraph
(h) will be considered to be a payment of
tax on the last day prescribed for filing the
applicable return for the return period (de-
termined without regard to any extension
of time for filing the return) or, if later, at
the time deemed deposited under para-
graph (h)(8) of this section. In the case of
the taxes imposed by chapters 21 and 24
of the Internal Revenue Code, solely for
purposes of section 6511 and the regula-
tions thereunder (relating to the period of
limitation on credit or refund), if an
amount is deposited prior to April 15th of
the calendar year immediately succeeding
the calendar year that includes the period
for which the amount was deposited, the
amount will be considered paid on April
15th.
*****
§31.6302–1T[Removed]
P a r. 14. Section 31.6302–1Tis re-
moved.
P a r. 15. Section 31.6302(c)–3 is
amended as follows:
1. The heading for paragraph (b) is re-
vised.
2. Paragraph (c) is revised.
3. Paragraph (d) is added.
The revised and added provisions read
as follows:
§31.6302(c)–3 Use of Government de-
positaries in connection with tax under
the Federal Unemployment Tax Act.
*****
(b) Manner of deposit––deposits re-
quired to be made by Federal tax deposit
(FTD) coupon.* * *
(c) Manner of deposit––deposits re-
q u i red to be made by electronic funds
t r a n s f e r.For the requirement to deposit
tax under the Federal Unemployment Tax
Act by electronic funds transfer, see
§31.6302–1(h). Ataxpayer not required
to deposit by electronic funds transfer
pursuant to §31.6302–1(h) remains sub-
ject to the rules of paragraph (b) of this
section.
(d) Effective date. The provisions of
paragraphs (a) and (b) of this section
apply with respect to calendar quarters
beginning after December 31, 1969. T h e
provisions of paragraph (c) of this sec-
tion apply with respect to calendar quar-
ters beginning on or after January 1,
1 9 9 5 .
§31.6302(c)–3T[Removed]
P a r. 16. Section 31.6302(c)–3Tis re-
moved.
PART40––EXCISE TAX PROCE-
DURALREGULATIONS
Par. 17. The authority citation for part
40 is amended by revising the entry for
“Sections 40.6302(c)–1, 40.6302(c)–2,
40.6302(c)–3, and 40.6302(c)–4” and re-
moving the entry for “Section
40.6302(c)–1T” to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 40.6302(c)–1 also issued under
26 U.S.C. 6302(a) and (h).
Sections 40.6302(c)–2, 40.6302(c)–3, and
40.6302(c)–4 also issued under 26 U.S.C.
6302(a).
P a r. 18. Section 40.6302(c)–1 is
amended as follows:
1. The text of paragraph (d) is redesig-
nated paragraph (d)(1) and a paragraph
heading is added for (d)(1).
2. Paragraph (d)(2) is added.
The added provisions read as follows:
§40.6302(c)–1 Use of Government de-
positaries.
*****
(d) Remittance of deposits—(1) D e p o s i t s
by Federal tax deposit coupon. * * *
(2) Deposits by electronic funds trans-
fer.For the requirement to deposit excise
taxes by electronic funds transfer, see
§31.6302–1(h) of this chapter.Ataxpayer
not required to deposit by electronic funds
transfer pursuant to §31.6302–1(h) of this
chapter remains subject to the rules of this
paragraph (d). * * * * *
§40.6302(c)–1T[Removed]
P a r. 19. Section 40.6302(c)–1Tis re-
moved.
Michael P. Dolan,
Acting Commissioner
of Internal Revenue.
Approved June 27, 1997.
Donald C. Lubick,
Acting Assistant Secretary
of the Treasury.
(Filed by the Office of the Federal Register on July
11, 1997, 8:45 a.m., and published in the issue of the
Federal Register for July 14, 1997, 62 F.R. 37490)
26 CFR 31.6302–1: Federal tax deposit rules for
withheld income taxes and taxes under the Federal
Insurance Contributions Act (FICA) attributable to
payments made after December 31, 1992.
Information is provided to taxpayers
about the Electronic Federal Tax Payment
System (EFTPS). EFTPS is an electronic
remittance system for making federal tax
deposits and federal tax payments.
1997–30 I.R.B.8July 28, 1997

Electronic Funds Transfer —
Temporary Waiver of Failure-To-
Deposit Penalty for Certain Tax-
payers and Request for Com-
ments on Future Guidance
Notice 97–43
This notice provides guidance relating
to the waiver of penalties announced in
News Release IR–97–32, issued June 2,
1997. In IR–97–32, the Internal Revenue
Service announced that it will waive the
failure to deposit penalty under § 6656 of
the Internal Revenue Code for certain tax-
payers first required to make federal tax
deposits by electronic funds transfer on or
after July 1, 1997. This notice also re-
quests comments regarding possible alter-
natives for future amendments to §
31.6302–1(h) of the Employment Ta x e s
and Collection of Income Tax at Source
Regulations with respect to the require-
ment to deposit by electronic funds trans-
fer for periods beginning after 1999.
Background
Section 6302(h)(1)(A) provides that the
Secretary will prescribe regulations nec-
essary for the development and imple-
mentation of an electronic funds transfer
system for the collection of depository
taxes. Section 6302(h)(2) provides a
phase-in schedule for the new system.
Section 31.6302–1(h) prescribes rules
for implementing an electronic funds
transfer system for the collection of de-
pository taxes. Under the regulation, tax-
payers are required to deposit taxes by
electronic funds transfer if the amount of
their depository taxes in a specified ear-
lier year exceeds the applicable threshold
amount. The regulation provides that tax-
payers with more than $50,000 of federal
employment tax deposits in calendar year
1995 must use electronic funds transfer to
make deposits that are due on or after July
1, 1997 and relate to return periods begin-
ning on or after January 1, 1997. For ex-
ample, a corporation to which this rule
applies, and which files its income tax re-
turns on a calendar year basis, must use
electronic funds transfer to make corpo-
rate and estimated income tax deposits
that are due on or after July 1, 1997.
Therefore, the corporation’s September
15, 1997, and subsequent estimated tax
payments must be made by electronic
funds transfer.
Section 6656(a) provides that in the
case of any failure by any person to de-
posit taxes on the prescribed date in an
authorized government depository, a
penalty applies unless the failure is due to
reasonable cause and not due to willful
neglect. Rev. Rul. 95–68, 1995–2 C.B.
272, provides that, absent reasonable
cause, a taxpayer that is required to de-
posit federal taxes by electronic funds
transfer is subject to the 10 percent failure
to deposit penalty if the taxpayer deposits
the taxes by means other than electronic
funds transfer.
Temporary Waiver of Penalty for Certain
Taxpayers
Although taxpayers with more than
$50,000 of federal employment tax de-
posits in calendar year 1995 are required
to make federal tax deposits electronically
on and after July 1, 1997, the Service will
not impose the 10 percent § 6656 penalty
solely for the failure to make those de-
posits by electronic funds transfer. How-
ever, a taxpayer will remain liable for the
failure to deposit penalty under § 6656
(absent reasonable cause) if the taxpayer
fails to make a required deposit (using ei-
ther electronic funds transfer or paper
coupons) in a timely manner.
This waiver of the failure to deposit
penalty applies only to deposit obligations
incurred on or before December 31, 1997.
The penalty waiver includes deposits
made after December 31, 1997, so long as
the deposit obligation was incurred on or
before December 31, 1997.
This waiver of the failure to deposit
penalty does not apply to taxpayers that
were required to begin using electronic
funds transfer in 1995 or 1996.
Request for Comments on Future Guidance
Under § 31.6302–1(h), taxpayers that
are not currently required to use elec-
tronic funds transfer must begin making
federal tax deposits electronically in 1999
if they exceed a $50,000 threshold in
1997. Currently, § 31.6302–1(h) provides
no requirement that a new or growing tax-
payer that exceeds $50,000 in annual de-
posits only after 1997 use electronic funds
transfer. In addition, a taxpayer that de-
posits employment taxes but never ex-
ceeds $50,000 a year in employment tax
deposits is not currently required to use
electronic funds transfer even if its de-
posits of other taxes have exceeded
$50,000 per year.The Service and Trea-
sury Department intend to develop regu-
lations that will address these matters. At
this time, two options are being consid-
ered.
The first option would be a two-
pronged test. If during a calendar year
determination period the taxpayer de-
posits more than $50,000 of the employ-
ment taxes imposed by chapters 21, 22,
and 24, or more than $50,000 of other de-
pository taxes, the taxpayer becomes sub-
ject to the requirement to deposit elec-
tronically in the second succeeding
calendar year.
The second option would be an aggre-
gate deposits test. If during a calendar
year determination period the taxpayer’s
aggregate deposits of all depository taxes
exceed $50,000, the taxpayer becomes
subject to the requirement to deposit elec-
tronically in the second succeeding calen-
dar year.
The Service and Treasury Department
invite public comment on these two op-
tions and also welcome any suggestions
for a different future rule. Comments and
suggestions are requested by October 10,
1997. An original and eight copies of
written comments should be sent to:
Internal Revenue Service
Attn: CC:DOM:CORP:R
Room 5228 (IT&A:Br4)
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044,
or hand delivered between the hours of
8:00 a.m. and 5:00 p.m to:
Courier’s Desk
Internal Revenue Service
Attn: CC:DOM:CORP:R
Room 5228 (IT&A:Br4)
1111 Constitution Ave., NW
Washington, DC
A l t e r n a t i v e l y, comments may be submit-
ted electronically via the Service’s Inter-
net site at “http://www. i r s . u s t r e a s .
gov/prod/tax_regs/comments.html”. A l l
comments will be available for public in-
spection and copying in their entirety.
1997–30 I.R.B.9July 28, 1997
Part III. Administrative, Procedural, and Miscellaneous

For Further Information on Electro n i c
Funds Transfer
For information on the Treasury’s elec-
tronic funds transfer system — the Elec-
tronic Federal Tax Payment System
(EFTPS) — or to get a form to enroll in
EFTPS, call either of the two Treasury Fi-
nancial Agents for EFTPS at (800) 945-
8400 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 t-
ing). For further information regarding
the penalty waiver, contact Mr. Basso. For
further information regarding the com-
ments 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 1PURPOSE
SECTION 2BACKGROUND
SECTION 3DEFINITIONS
SECTION 4ENROLLMENT
SECTION 5ASSIGNMENTTO A
FINANCIALAGENT
SECTION 6TIMELYINITIATION
OF FTD OR FTP
SECTION 7ACH DEBITENTRY
SECTION 8ACH CREDITENTRY
SECTION 9ELECTRONIC TAX
APPLICATION (ETA)
SECTION 10PROOF OF PAYMENT
SECTION 11REFUNDS
SECTION 12EN R O L L M E N TF O R M S
AND
ADDITIONAL
INFORMATION
ABOUTEFTPS
SECTION 13EF F E C TON OTHER
DOCUMENTS
SECTION 14EFFECTIVE DATE
SECTION 15IN T E R N A LREVENUE
S E RVICE OFFICE
C O N TA C T
SECTION 16PAPERWORK
REDUCTION ACT
SECTION 1. PURPOSE
This revenue procedure provides tax-
payers with information about the Elec-
tronic Federal Tax Payment System
(EFTPS). EFTPS is an electronic remit-
tance processing system for making fed-
eral tax deposits (FTDs) and federal tax
payments (FTPs). EFTPS is the succes-
sor 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 re-
ceipt 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 Secre-
tary to establish an EFTsystem to collect
the FTDs of certain taxpayers. TA X L I N K
and its successor, EFTPS, are the EFTs y s-
tems developed by the Secretary to collect
federal taxes. The TAXLINK system will
terminate on July 15, 1997. All taxpayers
making FTDs or FTPs by EFTmust use
EFTPS after July 15, 1997.
.03 Some taxpayers are required by
regulations issued under § 6302(h) to
make FTDs using an EFTsystem. S e e
§ 31.6302–1(h)(2)(i)(A) of the Employ-
ment Taxes and Collection of Income Tax
at Source Regulations. Taxpayers not re-
quired to make FTDs using an EFTsys-
tem 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.
.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 FTPobligations. These payment op-
tions 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 EFTis 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 Ataxpayer required by regulations
to make an FTD by EFTmay 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 ETAto 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 compu-
tation of tax liability, interest or penalties,
or FTD or FTPdue dates.
SECTION 3. DEFINITIONS
.01The definitions provided in this sec-
tion will be used for EFTPS.
.02 A U TO M ATED CLEARING
HOUSE (ACH). “Automated Clearing
House” is a funds transfer system, gov-
erned by the ACH Rules (the Operating
Rules and the Operating Guidelines pub-
lished by National Automated Clearing
House Association (NACHA)), that pro-
vides for the interbank clearing of elec-
tronic entries for participating financial
institutions.
.03 ACH CREDITENTRY.An “ACH
credit entry” is a transaction in which a fi-
nancial institution, upon instructions from
a taxpayer, originates an FTD or FTPt o
the appropriate Department of the Tr e a-
1997–30 I.R.B.10July 28, 1997

sury (Treasury) account through the ACH
system. See section 8 of this revenue pro-
cedure for a description of an ACH credit
entry.
.04 ACH DEBITE N T RY. An “ACH
debit entry” is a transaction in which one
of the Treasury Financial Agents, upon in-
structions from a taxpayer, instructs the
t a x p a y e r’s financial institution to with-
draw funds from the taxpayer’s account
for an FTD or FTPand to route the FTD
or FTPto the appropriate Treasury ac-
count through the ACH system. See sec-
tion 7 of this revenue procedure for a de-
scription 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 infor-
mation 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 m-
ployer 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 TRANS-
FER (EFT). An “EFT” is any transfer of
funds, other than a transaction originated
by check, draft, or similar paper instru-
ment, which is initiated through an elec-
tronic terminal, telephonic instrument,
computer, or magnetic tape so as to order,
instruct, or authorize a financial institu-
tion or other financial intermediary to
debit or credit an account.
.07 ELECTRONIC TAX A P P L I C A-
TION (ETA). “ETA” (also referred to as
“Same Day Payment”) is a subsystem of
EFTPS that receives, processes, and
transmits an FTD or an FTPand the re-
lated tax payment information for taxpay-
ers that make same day payments through
Fedwire value transfers, Fedwire
non–value transactions, and Direct A c-
cess transactions. See section 9 of this
revenue procedure for information on the
ETAprocess. For more information about
E TApayments, taxpayers should contact
their financial institutions.
.08 EMPLOYER IDENTIFICAT I O N
NUMBER (EIN). An “EIN” is a unique
nine digit taxpayer identifying number is-
sued by the Internal Revenue Service to
business taxpayers for the purpose of re-
porting tax related information.
.09 FEDERALR E S E RVE BANK
(FRB). The “FRB” is the U.S. Govern-
m e n t ’s fiscal agent. The FRB also
processes ACH transactions to a commer-
cial 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 FINANCIALA G E N T. For pur-
poses 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. AFinancial Agent processes
EFTPS enrollments, receives FTD and
F T Pinformation, originates ACH debit en-
tries upon instructions from taxpayers, and
provides customer service assistance for
EFTPS enrollment and payment informa-
t i o n .
.12 IRS INDIVIDUALTA X PAY E R
I D E N T I F I C ATION NUMBER (ITIN).
An “ITIN” is a taxpayer identifying num-
ber issued by the Service to an alien indi-
vidual who is ineligible to receive an SSN
for the purpose of reporting tax related in-
formation.
.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 Finan-
cial Agent originates a zero dollar entry to
the taxpayer’s financial institution to ver-
ify the RTN of the taxpayer’s financial in-
stitution, the taxpayer’s account number,
and the account type. See section 4.03 of
this revenue procedure.
.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 informa-
tion. 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 ad-
dress provided in the applicable form in-
structions at least ten weeks in advance of
the first FTD or FTPdue date for which it
intends to use EFTPS. As part of complet-
ing 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 in-
formation on the ACH debit entry payment
option, and section 8 for information on
the ACH credit entry payment option.
.02 Ataxpayer may request an enroll-
ment form by calling a Financial Agent at
one of the numbers listed in section 12.01
of this revenue procedure or the IRS Dis-
tribution Center at (800) TA X – F O R M
((800) 829–3676). Ataxpayer should re-
quest 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 informa-
tion 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, Busi-
ness 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 in-
formation on ETAunder the heading
“Same Day Payments.” APersonal Identi-
fication Number (PIN) will be mailed to
the taxpayer separately from the enroll-
ment confirmation package.
.05 If a taxpayer attempts to make an
FTD or FTPthrough EFTPS before the tax-
payer receives Form 9787 or Form 9789,
the FTD or FTPgenerally will be rejected
1997–30 I.R.B.11July 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.Ataxpayer’s assignment to a Fi-
nancial Agent is based on the location of
the principal financial institution that will
be electronically transmitting FTDs
and/or FTPs for the taxpayer.
NationsBankFirst Chicago
(800) 555-4477(800) 945-8400
A l a b a m aA l a s k a
American SamoaCalifornia (except
Los Angeles,
A r i z o n aOrange, San
A r k a n s a sBernardino, River-
California (Losside, San Diego, and
Angeles, Orange, Imperial counties)
San Bernardino, C o l o r a d o
Riverside, SanC o n n e c t i c u t
Diego, and Impe-H a w a i i
rial counties only)I d a h o
Commonwealth ofI l l i n o i s
the NorthernI n d i a n a
Mariana IslandsI o w a
Commonwealth ofK a n s a s
Puerto RicoM a i n e
D e l a w a r eM a s s a c h u s e t t s
District of ColumbiaM i c h i g a n
F l o r i d aM i n n e s o t a
G e o rg i aM i s s o u r i
G u a mM o n t a n a
K e n t u c k yN e b r a s k a
L o u i s i a n aNew Hampshire
M a r y l a n dNew Jersey
M i s s i s s i p p iNew Yo r k
N e v a d aNorth Dakota
New MexicoO r e g o n
North CarolinaRhode Island
O h i oSouth Dakota
O k l a h o m aU t a h
P e n n s y l v a n i aVe r m o n t
South CarolinaWa s h i n g t o n
Te n n e s s e eWi s c o n s i n
Te x a sWy o m i n g
Vi rgin IslandsForeign countries
Vi rg i n i a
West Vi rg i n i a
SECTION 6. TIMELYINITIATION OF
FTD OR FTP
.01 Ataxpayer must ensure that the
FTD or FTPis timely made. Publication
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. How-
e 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 FTPdue date.
.03 Ataxpayer choosing the A C H
credit entry payment option must deter-
mine whether its financial institution of-
fers the ACH credit entry payment option
and when the taxpayer must initiate an
ACH credit entry that will settle on or be-
fore the FTD or FTPdue date.
SECTION 7. ACH DEBITENTRY
.01 To initiate a timely ACH debit
entry, a taxpayer must contact the Finan-
cial Agent by 8:00 p.m. Eastern time of
the last business day prior to the FTD or
FTPdue date. Abusiness taxpayer may
arrange an ACH debit entry up to 30 cal-
endar days in advance of the due date. An
individual taxpayer may arrange an ACH
debit entry up to 105 calendar days in ad-
vance of the due date.
.02 In order to initiate an ACH debit
entry, a taxpayer must furnish the Finan-
cial 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 tax-
payer’s account.
.03 After a taxpayer initiates an ACH
debit entry, the Financial Agent will vali-
date 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 re-
garding proof of payment.
.04 Pursuant to the taxpayer’s instruc-
tions, the Financial Agent, on the date
designated by the taxpayer, will instruct
the taxpayer’s financial institution to orig-
inate the transfer of funds from the tax-
p a y e r’s account to the appropriate Tr e a-
sury 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).
.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 trans-
action 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. Ataxpayer that is not re-
quired to use EFTfor FTDs may use the
paper FTD coupon system. To avoid
penalties, the FTD or FTPmust be re-
ceived by an appropriate means on or be-
fore the FTD or FTPdue date.
.07 The ACH Rules will govern A C H
debit entry returns and reversals.
SECTION 8. ACH CREDITENTRY
.01 If a taxpayer chooses the A C H
credit entry payment option to make an
FTD or FTP, the taxpayer may use any fi-
nancial institution capable of originating
an ACH credit entry.
.02 For each TIN used by a taxpayer in
making an FTD or FTPby an ACH credit
entry, the taxpayer should request that its
financial institution originate a prenotifi-
cation 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 in-
stitution has successfully completed the
prenotification process. Aprenotification
ACH credit will verify the taxpayer infor-
mation in the T X Paddenda 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 prenotifica-
tion 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 orig-
inating an ACH credit entry.
.05 If the taxpayer timely and accu-
rately requests an ACH credit entry, the
taxpayer’s financial institution is respon-
sible for the timely origination of the
ACH credit entry with the appropriate
1997–30 I.R.B.12July 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 sub-
mit 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 .
Ataxpayer that is not required to use EFT
for FTDs may use the paper FTD coupon
system. To avoid penalties, the FTD or
F T Pmust be received by an appropriate
means on or before the FTD or FTPdue
date.
.07 The Financial Agent will receive
and process the ACH credit entry infor-
mation. The Financial Agent will com-
pare the transaction’s remittance detail in
the CCD+ T X Paddenda with the tax-
p a y e r’s enrollment record data. If they
match, the Financial Agent will send the
FTD or FTPinformation to the Service
for posting to the taxpayer’s account(s).
.08 If the Financial Agent cannot iden-
tify the taxpayer, the ACH credit entry
will be returned to the originating finan-
cial institution.
.09 Failure to provide correct, com-
plete, and properly formatted information
may cause an ACH credit entry to be re-
turned. In the event of a return, a tax-
payer may instruct the financial institu-
tion 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. Ataxpayer that is not required to
use EFTmay also use the paper FTD
coupon system.
.10 An ACH credit entry that is not re-
turned 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.
SECTION 9. ELECTRONIC TAX
APPLICATION (ETA)
.01 Taxpayers may use ETA(as defined
in section 3.07) to make a timely FTD or
F T P. Taxpayers should contact their fi-
nancial institution to determine if the fi-
nancial institution is capable of making an
ETApayment.
.02 After the EFTPS enrollment
process is completed, the Financial Agent
will send the taxpayer an EFTPS Payment
Instruction Booklet that includes addi-
tional ETAinformation under the heading
“Same Day Payments.”
.03 The Service generally will deem an
ETApayment 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 ETApayments for a particular
day. ETApayments received by the FRB
after the deadline set forth in the Treasury
Financial Manual, Volume IV(IVTFM),
will be recorded as received the following
business day. Currently, the deadline in
I VTFM is 2:00 p.m. FRB Head Off i c e
Local Zone Time. If a payment is not ac-
cepted, the payment must be re-originated
using ETAor any other permissible pay-
ment method.
SECTION 10. PROOF OF PAYMENT
.01 For an ACH debit or credit entry, a
statement prepared by the taxpayer’s fi-
nancial institution showing a transfer (that
is, a decrease to the taxpayer’s account
balance) will be accepted as proof of pay-
ment 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, state-
ments prepared by a financial institution
include statements prepared by a third
party that is contractually obligated to pre-
pare statements for the financial institu-
t i o n .
SECTION 11. REFUNDS
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 tax-
payer may contact the Service at (800)
829-1040 for assistance.
SECTION 12. ENROLLMENTFORMS
AND ADDITIONALINFORMATION
ABOUTEFTPS
.01 Taxpayers may obtain enrollment
forms and additional information by call-
ing EFTPS Customer Service at (800)
945-8400 (First Chicago) or (800) 555-
4477 (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. EFFECTON 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 con-
tained 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 col-
lection 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 re-
quired 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 tax-
p a y e r s ’accounts for FTDs and FTPs made
through EFTPS. The collections of infor-
mation in section 10 of this revenue proce-
dure are mandatory. The likely respon-
dents are individuals, state or local
governments, farms, business or other
1997–30 I.R.B.13July 28, 1997

for–profit institutions, federal agencies or
employees, nonprofit institutions, and
small businesses or organizations.
In 1999, the estimated total annual re-
porting and recordkeeping burden will be
690,000 hours.
The estimated annual burden per re-
spondent and recordkeeper will vary from
15 minutes to 45 minutes, depending on
individual circumstances, with an esti-
mated average of 30 minutes. The esti-
mated number of respondents and record-
keepers is 1,380,000.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial 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/
E l e c t r o n i c a l l y
Form 4804 — Transmittal of Infor-
mation Returns Reported Magneti-
cally/Electronically
Form 4802 — Transmittal of Infor-
mation Returns Reported Magneti-
cally/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,
and8027)
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 Instruc-
tions for Media Label
Rev. Proc. 97–34
Use this revenue procedure to prepare
Tax Year 1 9 9 7information returns for
submission to Internal Revenue Service
(IRS) using any of the following:
— Magnetic Tape
— Tape Cartridge
— 8mm, 4mm, and Quarter Inch Car-
tridges
— 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 elec-
tronic year dates exchanged with non-IRS
o rganizations, both government and pri-
vate, 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 fil-
ing communications package will be
changed in the future.
Please read this publication carefully.
Persons or businesses required to file in-
formation returns may be subject to
penalties for failure to file or include cor-
rect information if they do not follow the
instructions in this revenue procedure.
Table of Contents
Part A. General
Section1.Purpose
Section2.Nature of Changes - Current
Year (Tax Year 1997)
S e c t i o n3 .Where to File and How to
Contact the IRS, Martinsburg
Computing Center
Section4.Filing Requirements
S e c t i o n5 .Form 8508, Request for
Waiver from Filing Informa-
tion Returns on Magnetic
M e d i a
Section6.Vendor List
Section7.Form 4419, Application for
Filing Information Returns
Magnetically/Electronically
Section8.Test Files
Section9.Filing of Information Re-
turns Magnetically/Elec-
tronically and Retention Re-
quirements
Section10.Due Dates
Section11.Extensions of Time
Section12.Processing of Information
Returns Ma g n e t i c a l l y /
Electronically
Section13.Corrected Returns
Section14.Taxpayer Identification
Number (TIN)
Section15.Effect on Paper Returns and
Statements to Recipients
Section16.Combined Federal/State Fil-
ing Program
Section17.Definition of Terms
Section18.State Abbreviations
S e c t i o n1 9 .Major Problems Encountered
P a rt B. Magnetic Media
S p e c i f i c a t i o n s
Section1.General
Section2.Tape Specifications
Section3.Tape Cartridge Specifica-
tions
S e c t i o n4 .8mm, 4mm, and Quarter
Inch Cartridge Specifications
Section5.5 1/4-inch and 3 1/2-inch
Diskette Specifications
Section6.P a y e r / Transmitter “A”
Record — General Field
Descriptions
Section7.P a y e r / Transmitter “A”
Record — Record Layout
S e c t i o n8 .Payee “B” Record — General
Field Descriptions and
Record Layouts
Section9.End of Payer “C” Record —
General Field Descriptions
and Record Layout
Section10.State Totals “K” Record —
General Field Descriptions
and Record Layout
Section11.End of Transmission “F”
Record — General Field
Descriptions and Record
Layout
P a rt C. B i s y n c h ronous (Mainframe)
E l e c t ronic Filing
S p e c i f i c a t i o n s
Section1.General
Section2.Electronic Filing Approval
Procedure
1997–30 I.R.B.14July 28, 1997

Section3.Test Files
Section 4.Electronic Submissions
Section 5.Transmittal Requirements
Section6.IBM 3780 Bisynchronous
Communication Specifica-
tions
Section7.Bisynchronous Electronic
Filing Record Specifications
P a rt D. A s y n c h ronous (IRP–BBS)
E l e c t ronic Filing
S p e c i f i c a t i o n s
Section1.General
Section2.Electronic Filing Approval
Procedure
Section3.Test Files
Section4.Electronic Submissions
Section5.Transmittal Requirements
S e c t i o n6 .Information Reporting Pro-
gram Bulletin Board System
(IRP-BBS) Specifications
Section7.IRP-BBS First Logon Pro-
cedures
Part E. Magnetic/Electronic
Specification for
Extensions of Time
Section1.General
S e c t i o n2 .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
Section3.Record Layout
P a rt F. Miscellaneous Inform a t i o n
Section1.Addresses for Martinsburg
Computing Center
Section2.Telephone Numbers for
Contacting IRS/MCC
Part A. General
Revenue procedures are generally revised
annually to reflect legislative and form
changes. Comments concerning this rev-
enue procedure, or suggestions for mak-
ing it more helpful, can be addressed to:
Internal Revenue Service
Martinsburg Computing Center
Attn: IRB, Information Support Sec-
t i o n
P. O. Box 1359, MS-360
Martinsburg, WV25402
Sec. 1. Purpose
. 0 1The purpose of this revenue proce-
dure is to provide the specifications for fil-
ing Forms 1098, 1099 series, 5498,
5498–MSA, and W–2G electronically or
on magnetic media, which includes 1/2-
inch magnetic tape; IBM 3480, 3490 or
AS400 compatible tape cartridges (includ-
ing 8mm); or 5 1/4- and 3 1/2-inch
diskettes with IRS. IRS/MCC has dis-
continued processing 8-inch diskettes.
This revenue procedure must be used for
the preparation of Tax Year 1 9 9 7i n f o r m a-
tion returns and information returns for
years prior to 1997 that are required to be
filed. This revenue procedure must be
used to prepare current and prior year in-
formation returns filed between January 1,
1 9 9 8, and December 31, 1 9 9 8.S p e c i f i c a-
tions for filing the following forms are
contained in this revenue procedure.
(a)Form 1098, Mortgage Interest
Statement.
(b)Form 1099–A, Acquisition or
Abandonment of Secured Prop-
erty.
(c)Form 1099–B, Proceeds From
Broker and Barter Exchange
Transactions.
(d)Form 1099–C, Cancellation of
Debt.
(e)Form 1099–DIV, Dividends and
Distributions.
(f)Form 1099–G, Certain Govern-
ment Payments.
( g )Form 1099–INT, Interest Income.
(h)Form 1099–LTC, Long-Term
C a re and Accelerated Death
Benefits.
(i)Form 1099–MISC, Miscella-
neous Income.
(j)Form 1099–MSA, Distributions
F rom Medical Savings A c-
counts.
(k)Form 1099–OID, Original Issue
Discount.
(l)Form 1099–PATR, Taxable Dis-
tributions Received From Coop-
eratives.
(m)Form 1099–R, Distributions
From Pensions, Annuities, Re-
tirement or Profit-Sharing Plans,
IRAs, Insurance Contracts, etc.
(n)Form 1099–S, Proceeds From
Real Estate Transactions.
(o)Form 5498, IRA, SEP, or
SIMPLE Retirement Plan Infor-
mation.
(p)Form 5498–MSA, Medical Sav-
ings Account Information.
(q)Form W–2G, Certain Gambling
Winnings.
.02 Specifications for filing Forms W-
2 on magnetic media are available from
the Social Security Administration (SSA)
o n l y. Filers can call 1-800-SSA-1213 to
obtain the phone number of the SSA
Magnetic Media Coordinator for their
area.
.03 The Internal Revenue Service,
M a r t i n s b u rg Computing Center
(IRS/MCC) has the responsibility for pro-
cessing Forms 1098, 1099 series, 5498,
5498–MSA, and W–2G filed magnetically
or electronically. IRS/MCC does n o t
process Forms W–2. Paper and/ormag-
netic media for Forms W–2 must be sent
to SSA. IRS/MCC does, however,
process waiver requests (Form 8508), ex-
tension of time to file requests (Form
8809) for Forms W–2 and requests for ex-
tension of time to file the employee
copies of W–2G.
.04 Generally, the box numbers on the
paper forms correspond with the amount
codes used to file magnetically/electroni-
cally; however, if discrepancies occur, the
instructions in this revenue procedure
govern.
.05 This revenue procedure also pro-
vides the requirements and specifications
for magnetic media or electronic filing
under the Combined Federal/State Filing
Program.
.06 The following revenue procedures
and publications provide more detailed fil-
ing procedures for certain other informa-
tion returns.
( a )1997 “Instructions for Forms
1099, 1098, 5498, and W – 2 G ”
provides specific instructions on
completing and submitting infor-
mation returns to IRS.
( b )R e v. Proc. 84–33, 1984–1 C.B.
502, regarding the optional
method for agents to report and
deposit backup withholding.
( c )Publication 1179, Rules and
Specifications for Private Print-
ing of Substitute Forms 1096,
1098, 1099 Series, 5498, and
W – 2 G .
( d )Publication 1239, Specifications
for Filing Form 8027, Em-
p l o y e r’s Annual Information Re-
turn of Tip Income and A l l ocated
1997–30 I.R.B.15July 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, For-
eign Person’s U.S. Source In-
come 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, Em-
p 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 elec-
tronic filing of 1997 Form 8851,
Summary of Medical Savings
Accounts, Magnetically/Elec-
t r o n i c a l l y.
.07 This revenue procedure supersedes
Rev. Proc. 96–36 published as Publication
1220 (Rev. 7–96), Specifications for Fil-
ing Forms 1098, 1099 series, 5498, and
W–2G Magnetically or Electronically.
.08 Refer to Part A, Sec. 17, for defini-
tions 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 1997have been em-
phasized by using italics. This has been
done to assist filers in identifying new in-
formation. Filers are still advised to read
the publication in its entirety.
.02 Programming Changes
a. Payer/Transmitter“A” Record
Changes:
(1) For all forms, Payment Year, Field
Positions 2-3 must be incremented by one
(from96to 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 Tfor 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 ad-
ministrative costs included in A m o u n t
Code 2) has been deleted from Field Posi-
tions 23–31 of the Payer “A” Record.
(4) In Part B, Sec. 6, for the new Form
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 (SEPcontributions) 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 MSAcontri-
butions made in 1997 and 1998 for 1997),
2 (Total MSAcontributions made in
1997), and 3 (Total MSAc o n t r i b u t i o n s
made in 1998 for 1997), 4 (MSArollover
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 Po-
sitions 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 conve-
nience 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:
(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 (Nor-
mal distribution), 2 (Excess contribu-
tions), 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 sec-
tion 72(p)) and S (Early distribution from
a SIMPLE IRAin first 2 years, no known
exception) have been added to Field Posi-
tions 4 and 5 of the Payee “B” Record.
(4) In Part B, Sec. 8, for the Form
1099–R, the IRA/SEPIndicator in Field
Position 44 of the Payee “B” Record has
been expanded from IRA/SEPt 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 1099-
M S Aand Form 5498–MSAhave been
added to the standard Record Layout Po-
sitions 322–420.
(7) In Part B, Sec. 8(5), the Record Lay-
out Positions 322–420 of the Payee “B”
Record are given for Form 1099–LTC to
include the following fields:
( a )AType of Payment Indicator has
been added to Field Position 322
of the Payee “B” Record with in-
dicators 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”
R e c o r d .
( d )The Address of the Insured has
been added to Field Positions
3 7 2 – 4 11 of the Payee “B”
R e c o r d .
( e )AStatus of Illness Indicator has
been added for Field Position 412
of the Payee “B” Record with in-
dicators of 1 (Chronically ill) and
2 (Terminally ill).
( f )ADate of Doctor’s Certification
has been added in Field Positions
413–418 of the Payee “B”
Record.
.03 OtherProgramming Changes
(a) In Part E, Sec. 3, in the record lay-
out for the Magnetic/Electronic Specifica-
tions for Extensions of Time, the Docu-
ment Indicators in Field Position 175
have been expanded to include Forms
1099–LTC, 1099–MSA, and 5498–MSA.
.04 Editorial Changes—General
(a) Anote has been added advising fil-
ers 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
1997–30 I.R.B.16July 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 c-
count Information. The new forms are in-
cluded 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) AZIPcode change has occurred for
the Martinsburg Computing Center. For
all Martinsburg Computing Center ad-
dresses 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
Z I Pcode 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 Program-
Bulletin Board System (IRP-BBS).
(g) In Part A, Sec. 7.10, information
has been added to advise filers that multi-
ple Transmitter Control Codes (TCCs)
will only be issued to a payer with multi-
ple TINs, one TCC per TIN.
(h) In Part A, Sec. 9.10, filers are ad-
vised 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 ad-
vised to attach a label that states “IRB,
Box __of__” to the outside of the ship-
ping container.
(j) In Part A, Sec. 10, filers are advised
that, since the due dates for Tax Year 1997
fall on weekends, information returns, re-
cipient copies, and participant copies will
be treated as timely if filed or furnished
on the next business day after the particu-
lar due date.
(k) In Part A, Sec. 10.04, filers are ad-
vised that the timely mailing rule now ap-
plies to designated private delivery services.
(l) In Part A, Sec. 16, in Table 2. Dollar
Criteria for State Reporting, the dollar cri-
teria for the state of Idaho has been cor-
rected.
(m) In part A, Sec. 17, Definition of
Terms, ITIN (Individual Taxpayer Identi-
fication 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 IRAcontributions 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 Spe-
cific/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 In-
surance 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 ad-
vised that for 8mm tape cartridge, the
S AVE OBJECTCOMMAND is not ac-
ceptable.
(c) In Part B, Sec. 4.07, filers are now
advised that 4mm cassettes are an accept-
able 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 1/4-
inch diskettes created on a System 36 or
AS400, specific save commands are pro-
vided 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 in-
come tax withheld, has been expanded to
include requested withholding on unem-
ployment compensation, Commodity
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 mag-
netically 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 exten-
sion 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, WV25402-1359
or if by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road, MS-360
Martinsburg, WV25401
+Note: The ZIPcode has changed
from 25401-1359 to 25402-1359 forthe
IRS P.O. Box addresses forMartins-
burg, WV.
.02 Send a magnetically filed extension
of time request to one of the following ad-
dresses:
)
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 Coordi-
nator
P. O. Box 879, MS-360
Kearneysville, W V2 5 4 3 0
If by private delivery service:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordi-
nator
Route 9 and Needy Road, MS-360
Martinsburg, WV25401
.03 Telephone inquiries for the Infor-
mation Reporting Call Site may be made
between 8:30 a.m. and 4:30 p.m. Eastern
time. The telephone numbers for mag-
1997–30 I.R.B.17July 28, 1997

netic media inquiries or electronic sub-
missions are:
%
304-263-8700 – Call Site – Part A, Sec. 3.9
304-264-7070 – IRP–BBS (Information
R e p o rting Program Bul-
letin 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 a-
tion Device forthe Deaf)
304-264-5602 – Fax Machine
( These are not toll-free telephone num-
b e r s . )
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 trans-
mitter convenience. The Form 1096 is
used only to transmit Copy Aof p a p e r
Forms 1099, 1098, 5498, and W–2G. If
filing paper returns, follow the mailing in-
structions 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 fil-
ing 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 di-
rected to the Social Security Administra-
tion (SSA). Filers can call 1-800-SSA-
1213 to obtain the phone number of the
S S AMagnetic 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 request-
ing an abatement of the penalty. Ap e n a l t y
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 n o t
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 Ataxpayer or authorized represen-
tative may request a copy of a tax return,
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 an-
swers both magnetic media and tax law
questions relating to the filing of informa-
tion returns (Forms 1096, 1098, 1099,
5498, 8027, W–2G, W–3, 1042S, and W-
4 ’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 num-
bers. The Call Site is located at IRS/MCC
and operates in conjunction with the Infor-
mation Reporting Program. The Call Site
provides service to the payer community
(financial institutions, employers, and other
transmitters of information returns). Recip-
ients of information returns (payees) should
continue to contact 1-800-829-1040 o r
other numbers specified in the tax return in-
structions with any questions on how to re-
port 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 De-
vice for the Deaf (TDD) 3 0 4 - 2 6 7 - 3 3 6 7 .
These are toll calls. Hours of operation
for the Call Site are Monday through Fri-
d 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, in-
cluding a corporation, partnership, individ-
ual, estate, and trust, who is required to file
250 or more information returns must file
such returns magnetically/electronically.
The 250* orm o re re q u i rement applies
separately foreach type of return and
also to each type of corrected re t u r n .
*Even though as many as 249 in-
formation returns may be submitted
on paper to the Internal Revenue
Service, IRS encourages filers to
transmit information returns mag-
netically or electronically.
.02 All filing requirements that follow
apply individually to each reporting entity
as defined by its separate Taxpayer Identi-
fication Number (TIN) [Social Security
Number (SSN), or Employer Identification
Number (EIN)]. For example, if a corpo-
ration 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 re-
quirements to each type of return accord-
i n g l y.
.03 Payers who are required to submit
their information returns on magnetic
media may choose to submit their docu-
ments by electronic filing. Payers who
submit their information returns electroni-
cally are considered to have satisfied the
magnetic media filing requirements.
.04 IRS/MCC has two methods by
which payers may submit their files elec-
t 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 o-
nous (Information Reporting Program-
Bulletin Board System), which is in Part
D. An overview of some features pro-
vided 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 publica-
tions
• Access to shareware
• Access to forms relating to the Informa-
tion Reporting Program
• News about the latest changes and up-
dates that affect the Information Report-
ing 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
a.m. Eastern Time.
• Questions, comments, or suggestions
can be directed to the Systems Operator
(SYSOP) through IRP-BBS.
.05 The following requirements apply
1997–30 I.R.B.18July 28, 1997

separately to both originals and correc-
tions filed magnetically/electronically:
1 0 9 82 5 0o rm o re of anyof these
1 0 9 9 – Aforms require magnetic
1 0 9 9 – Bmedia or electronic filing
1 0 9 9 – Cwith IRS. These are stand
1 0 9 9 – D I Valone documents and are not
1 0 9 9 – Gto be aggregated for purposes
1 0 9 9 – I N Tof determining the 250
1 0 9 9 – LT Cthreshold. For example, if
1 0 9 9 – M I S Cyou must file 100 Forms
1 0 9 9 – M S A1099–B and 300 Forms
1 0 9 9 – O I D1 0 9 9 – I N T, Forms 1099–B
1 0 9 9 – PAT Rneed not be filed magneti-
1 0 9 9 – Rcally or electronically since
1 0 9 9 – Sthey do not meet the thres-
5 4 9 8hold of 250. However,
5 4 9 8 – M S AForms 1099–INTmust be
W – 2 Gfiled 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 ap-
proved 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 origi-
nal 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 Fil-
ing 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 mag-
netically or electronically. However, if a
waiver for original documents is ap-
proved, any corrections for the same type
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 Atransmittermust submit a sep-
arate Form 8508 foreach 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 pro-
vide exemption from magnetic media fil-
ing 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 origi-
nal 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 forForms W–2
with IRS/MCC, not SSA.
. 11 Waivers are evaluated on a case-
by-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 transmittershould not
send a copy of the approved waiverto
the service centerw h e re the paperre-
turns are filed.
.13 An approved waiverfrom filing
information returns on magnetic media
does not provide exemption from all fil-
ing. The payer must timely file informa-
tion returns on acceptable paper forms
with the appropriate service center.
.14 Desert Storm/Operation Joint
G u a r d(OJG) [S e eNote] (Bosnia Re-
gion) Contributions— If a payer is re-
quired to file a Form 5498 magnet-
i 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 rdon the
waiver request form.
+Note: Military personnel underOp-
eration Joint Guard (OJG) will be
treated the same as military personnel
underOperation Joint Endeavor(OJE)
forpurposes of Publication L. 104–117
and Rev. Proc. 96–34.
Sec. 6. Vendor List
.01 IRS/MCC prepares a list of ven-
dors who support magnetic media or elec-
tronic 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 elec-
tronic files on their own computer sys-
tems. This list is compiled as a courtesy
and in no way implies IRS/MCC approval
or endorsement.
+Note: If filers meet the filing re-
q u i rements and engage a service bu-
reau to prepare media on theirbehalf,
the filers should be careful not to re-
p 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 PartA, 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 Av e n d o r, who offers a software
package, has the ability to produce mag-
netic media for customers, or has the ca-
pability 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 submit-
ted 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
1997–30 I.R.B.19July 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 re-
quest authorization to file information returns with IRS/MCC. Asingle Form 4419 should be filed no matter how many types of re-
turns 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 forfiling each of the following types of returns: Forms 1042–S, 8027, and W–4.
FORMTITLEEXPLANATION
1042–SForeign Person’s U.S. Source IncomePayments subject to withholding under Chapter 3 of the Code,
Subject to Withholding including interest, dividends, royalties, pensions, and annuities,
gambling winnings and compensation for personal services.
8027Employer’s Annual Information ReturnReceipts from food or beverage operations, tips
of Tip Income and Allocated Tipsreported by employees, and allocated tips.
W – 4E m p l o y e e ’s Withholding Allowance Forms received during the quarter from employees still employed
(SeeNote)C e r t i f icateat 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 otherForms 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 (1-800-829-
3 6 7 6 ) .
.03 Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval
letter.The TCC mustbe coded in the Payer “A” Record. If a transmitter uses more than one TCC to file, each TCC must be re-
ported 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 in-
formation 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. Fordocuments to be filed electronically using IBM 3780 bisynchronous
protocols, Form 4419 must be submitted at least 45 days priorto 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 equip-
ment 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’sTCC 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.20July 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.
.11In 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 con-
sidered 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 ser-
vices 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 pereach “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 forCombined 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 Decem-
ber 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 De-
cember 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 m a g n e t i c
media shipments. For electronic transmissions, the Form 4804 and Form 4802, if applicable, must be sent the same day as the elec-
tronic transmission. Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation), is a con-
tinuation 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 yearis 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-INTfor Bank A, Forms 1099-DIVfor Bank B, and Forms 1098 for Bank C, three separate tapes or diskettes need not be cre-
ated. 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.21July 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 filersubmits returns magnetically/electronically, identical paperdocuments
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 re-
ferred 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 orcould result in the files being returned un-
processed.
.09 Although an authorized agent may sign the affidavit, the payer is responsible for the accuracy of the Form 4804 and the re-
turns filed. The payer will be liable for penalties for failure to comply with filing requirements.
.10Aself-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
mustbe provided. Failure to provide this information may result in the diskettes being returned to the filer.
.11On the outside of the shipping container, affix or attach a label which reads IRB Box ___of___ reflecting the number of con-
tainers 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 1of 1. For multiple containers, include the sequence (for example, Box 1 of 3, 2 of 3, 3 of 3).
.12When submitting files include the following:
(a)AsignedForm 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.
.13If 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.
.14IRS/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.
.15Payers 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, Can-
cellation 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 partic-
ipant 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).
.02If 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.22July 28, 1997

.03Information returns filed magnetically/electronically for Forms 1098, 1099, and W–2G must be submitted to IRS/MCC post-
marked on or before March 2, 1998.
.04Returns 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. Asimilar rule applies
to items delivered by private delivery services (PDSs) designated by the IRS. APDS 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 pro-
vides 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.
.05Statements to recipients must be furnished on or before February 2, 1998 forTY97. Form 5498 statements to the participants
must be furnished on or before February 2, 1998 for TY97for the fair market value of the account and by June 1, 1998 for TY97for
contributions made to IRAs for the prior calendar year.
. 0 6Forms 5498 and 5498–MSA filed magnetically or electronically must be filed with IRS/MCC on or before June 1, 1998 for T Y 9 7 .
Form 5498 and 5498–MSAa re filed for contributions to be applied to 1997 that are made January 1, 1997, through April 15, 1998,
and/or to re p o rt 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
.01An extension of time to file may be requested for Forms 1099, 1098, 5498, 5498–MSA, W–2G, W–2, and 1042–S.
. 0 2Form 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.
.03Requesting 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 forall pay-
ers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included.
.04Requests 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.
+N o t e :If a filerdoes 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 numbermust be used to submit
an extension request magnetically/electro n i c a l l y.
.05Amagnetically 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, WV25430
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, WV25401
.06Requests 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.
.07As soon as it is apparentthat a 30-day extension of time to file is needed, Form 8809 may be submitted. It will take a mini-
mum 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.
.08If 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.23July 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.
.09Form 8809 must be postmarked no laterthan 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 ear-
liest due date. For example, if requesting an extension of time to file both Forms 1099–INTand 5498, submit Form 8809 post-
marked on or before February 28. Complete more than one Form 8809 to avoid this problem.
.10If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval let-
ter 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.
.11Request an extension for only one tax year.
.12The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other doc-
ument for the payer.
.13Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Care-
fully read and follow the instructions on the back of the Form 8809.
.14Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
.15Request 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
.01All 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.
.02If 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 returnedwith 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 as-
sessed if the files are not corrected and returned within the 45 days o rif the incorrect files are returned by IRS/MCC forre p l a c e-
ment more than two times.Apenalty for intentional disregard of filing requirements will be assessed if a replacement file is not re-
ceived. (For penalty information, refer to the Penalty section of the 1 9 9 7“Instructions for Forms 1099, 1098, 5498, and W – 2 G . ” )
.04Sample records identifying errors encountered will be provided with the returned media. It is the responsibility of the trans-
mitter to check the entire file for similar errors.
.05The following definitions have been provided to help distinguish between a correction and a replacement:
• Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit-
ted to and processed by IRS/MCC, but contained erroneous information.
• Areplacementis an information return file that IRS/MCC has returned to the transmitter due to errors encountered during pro-
cessing. 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.
.06IRS/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.
.07IRS/MCC will work with filers as much as possible to assist with processing problems.
+Note:If the fileris contacted by IRS/MCC, a prompt response is important. IRS/MCC may have information that the
filerneeds to correct his orherfile.
.08IRS/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
1997–30 I.R.B.24July 28, 1997

to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter, how-
ever, will not prevent backup withholding notices (CP2100 or CP2100ANotices) or penalties for missing or incorrect TINs.
.09Do not use special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.
Sec. 13. Corrected Returns
.01The magnetic media filing requirements of 250 information returns applies separately to both original and corrected returns.
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 magneti-
cally or electronically since they meet the 250 thresh-
old. 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 docu-
ments, any corrections for the same type of return will
be covered under this waiver.
.02Corrections 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 re-
quirements. 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.
.03There 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.
.04Corrected returns may be included on the same medium as original returns; however, separate “A” Records are required. Cor-
rected returns must be identified on the Form 4804 and the external media label by indicating “Correction.”
+Note: If filers discoverthat certain information returns were omitted on theiroriginal file, they must not code these
documents as corrections. The file must be coded and submitted as originals.
.05If 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 pay-
ees. 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.
.06Prior year data, original and corrected, mustbe 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 desig-
nation of the correction in Field Positions 2–3. If filing electronically, a separate transmission must be made for each tax year.
.07In general, filers should submit corrections for returns to be filed within the last three calendar years (four years if the pay-
ment is a reportable payment subject to backup withholding under section 3406 of the Code).
.08All paper returns, whether original or corrected, must be filed with the appropriate service center.
.09Form 4804 and Form 4802 (if applicable), must be submitted with corrected files submitted magnetically or electronically.
.10The “B” Record provides a 20-position field for the Payer’sAccount 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 enteraTIN in this field. Apayer’s
account number for the payee may be a checking account number, savings account number, serial number, or any other number as-
signed 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.
.11The record sequence for filing corrections is the same as for original returns.
1997–30 I.R.B.25July 28, 1997
E
X
A
M
P
L
E

.12Review 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 forFiling Corrected Returns Magnetically/Electronically
Error Made on the Original ReturnHow To File the Corrected Return
Two (2) separate transactions are required to make the following corrections properly. Follow the directions forboth
Transactions 1 and 2. (See Note 1)
1. Original return was filed with one or more of the followingTransaction 1:Identify incorrect returns
errors:A. Prepare a new Form 4804/4802 that includes information
(a)No payee TIN (SSN or EIN)related to this file.
(b)Incorrect payee TINB.Mark “Correction” in Block 1 of Form 4804.
(c)Incorrect payee nameC. Prepare a new file. Make a separate “A” Record for each
(d)Wrong type of return indicatortypeof return being reported. The information in the “A”
Record will be exactly the same as it was in the original sub-
m i s s i o n .
D.The Payee “B” Record must containexactly thesamein-
formation 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;h o w e v e r,
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 undersections 6721–6724 of the
Internal Revenue Code) are not re q u i red to make corrections forreturns filed with a missing ori n c o r rect name and/orT I N .
These payers should change theirrecords in orderto submit correct information in the future. Payers who cannot show re a s o n-
able cause are encouraged to make corrections forthe current processing yearby August 1 to reduce applicable penalties. Cor-
rections 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 rto the Penalty section of the 1 9 9 7“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 A.Prepare a new Form 4804/4802 that includes information
errors:relating to this new file.
(a)Incorrect payment amount codes in the “A” RecordB.Mark “Correction” in Block 1 of Form 4804.
(b)Incorrect payment amounts in the “B” RecordC.Prepare a new file. Make separate “A” Records for each
(c)Incorrect code in the document specific/distributiontype of return being reported. Information in the “A”
code field in the “B” RecordRecord may be the same as it was in the original submis-
(d)Incorrect payee addresssion.
1997–30 I.R.B.26July 28, 1997

(e)Direct sales indicatorD.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 fileris correcting the name and/orTIN in addition to any errors listed in item 2 of the chart, then two trans-
actions will be required. If a fileris reporting “G” coded, “C” coded, and/or“Non-coded” (original) returns on the same
media, they must be reported underseparate “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 infor-
mation return.
.02The payee’sTIN and name combination is used to associate information returns reported to IRS/MCC with corresponding in-
formation on tax returns. It is imperative that correctSocial Security Number (SSN), Individual Tax Identification Number (ITIN),
and Employer Identification Number (EIN), for payees be provided to IRS/MCC. Do not enterhyphens oralpha characters.En-
tering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.
.03The 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 mustbe 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 butthe sole proprietor’s name(not the business name)must be used on the first name line.
.04Failure to provide the correct name and corresponding TIN could result in a penalty and/or backup withholding notice (some-
times 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.)
.05The following charts will help payers determine the TIN to be furnished to IRS/MCC for those persons for whom they are re-
porting information (payees).
Chart 1. Guidelines forSocial Security Numbers
In the Taxpayer Identification Number
Field of the Payee “B” Record, enterIn the First Payee Name Line of the
For this type of account-the SSN of-Payee “B” Record, enter the name of-
1. IndividualThe individual The individual
2. Joint account (Two or more individ-The actual owner of the account or,The individual whose SSN is entered
uals, including husband and wife)if combined funds, the first individual
on the account
3. Custodian account of a minor (Uni-The minorThe minor
form Gift, or Transfers, to Minors Act)
4. The usual revocable savings trust The grantor-trusteeThe grantor-trustee
account (grantor is also trustee)
5. Aso-called trust account that is not aThe actual ownerThe actual owner
legal or valid trust under state law
6. Sole proprietorshipThe owner (An SSN or EIN)The owner, not the business name (the filer
may enter the business name on the second
name line).
1997–30 I.R.B.27July 28, 1997

Chart 2. Guidelines forEmployerIdentification Numbers
In the Taxpayer Identification Number
Field of the Payee “B” Record, enter In the First Payee Name Line of the
For this type of account-the EIN of-Payee “B” Record, enter the name of-
1.Avalid trust, estate, or pension trustThe legal entity
1
The legal trust, estate, or pension trust
1
2.CorporateThe corporationThe corporation
3 .Association, club, religious, charitable,The org a n i z a t i o nThe organization
educational, or other tax-exempt org a n i z a -
tion
4.Partnership accountThe partnershipThe partnership
held in the name of the business
5.Abroker or registered nominee/The broker or nominee/middlemanThe broker or nominee/middleman
middleman
6 .Account with Department of A g r i c u l -The public entityThe public entity
ture in the name of a public entity
(such as a state or local government,
school district, or prison), that receives
agriculture program payments
7.Sole proprietorshipThe business (An EIN or SSN)The owner, not the business name (the filer
may enter the business name on the second
name line).
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
.01Magnetic/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 du-
plicate filing; therefore, erroneous notices could be generated.
. 0 2Payers are responsible for providing statements to the recipients as outlined in the 1 9 9 7“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.
.03Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifi-
cations and guidelines in Publication 1179, “Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099 se-
ries, 5498, and W–2G.”
Sec. 16. Combined Federal/State Filing Program
. 0 1The 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.28July 28, 1997

.02To request approval to participate, a magnetic media or electronic test file coded for this program mustbe submitted to
IRS/MCC between November l and December 31. Hard copy print tests are not acceptablefor 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.
.04Atest 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.
.05If 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 mustcomplete, sign, and return to IRS/MCC before any tax information can be
released to the state. Filers must write their TCC on Form 6847.
.06If 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.
.07Aseparate Form 6847 is requiredfor 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 orig-
inal 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.
.08Only code the records for participating states and for those payers who have submitted Form 6847.
.09Some participating states require separate notification that the payer is filing in this manner. Since IRS/MCC acts as a for-
warding agent only, it is the payer’s responsibility to contact the appropriate states forfurtherinformation.
.10All corrections properly coded for the Combined Federal/ State Filing Program will be forwarded to the participating states.
.11Participating states and corresponding valid state codes are listed in Table1of this section. The appropriate state code must
be entered for those documents that meet the state filing requirements;do not use state abbreviations.
.12To 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.
.13Upon 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 mustbefollowed 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 befollowed 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 TheirCodes
StateCodeStateCodeStateCode
Alabama01Iowa19North Carolina37
Arizona04Kansas20North Dakota38
Arkansas05Maine23Oregon41
California06Massachusetts25South Carolina45
Delaware10Minnesota27Tennessee47
District of Columbia11Mississippi28Wisconsin55
Georgia13Missouri29
Hawaii15Montana30
Idaho16New Jersey34
Indiana18New Mexico35
Table 2. DollarCriteria ForState Reporting
1099–1099– 1099–1099–1099–
STATEDIV1099–GINTMISCOIDPATR1099–R5498
Alabama$1500$ NR$1500$1500$1500$1500$1500NR
Arkansas10025001002500250025002500
a
District of Columbia
b
600600600600600600600NR
1997–30 I.R.B.29July 28, 1997

1099–1099– 1099–1099–1099–
STATEDIV1099–GINTMISCOIDPATR1099–R5498
Hawaii10a106001010600a
IdahoNRNRNR600NRNRa a
Iowa100100010001000100010001000NR
Minnesota1010106001010600a
Mississippi600600600600600600600NR
MissouriNRNRNR1200
c
NRNRNRNR
Montana1010106001010600a
New Jersey1000100010001000100010001000NR
North Carolina100100100600100100100a
Tennessee25NR25NRNRNRNRNR
WisconsinNRNRNR600NRNR600NR
The preceding list is for information purposes only.The state filing requirements are subject to change by the states. For com-
plete 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
ElementDescription
Asynchronous ProtocolsThis type of data transmission is most often used by micro-
computers, 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 ProtocolsFor purposes of this publication, these are electronic trans-
missions made using IBM 3780 protocols. These transmis-
sions must be in EBCDIC character code and use the Bell
208B (4800bps), AT&T2296A(9600bps) or Hayes OPTIMA
288 V.FC Smartmodem (14400bps) modems. Standard IBM
3780 space compression is acceptable.
CorrectionAcorrection is an information return submitted by the trans-
mitter to correct an information return that was previously
submitted to and processed by IRS/MCC, but contained erro-
neous information.
+Note: Acorrection should not be confused with a replacement. Only media returned to the filerby IRS/MCC due to
processing problems should be marked replacement.
CUSIPNumberAnumber 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 FilingSubmission of information returns using switched telecom-
munications network circuits. These transmissions use
1997–30 I.R.B.30July 28, 1997

modems, dial-up phone lines, and asynchronous or bisyn-
chronous protocols. See Parts A, C, and D of this publication
for specific information on electronic filing.
File For purposes of this revenue procedure, a file consists of all
records submitted by a payer or transmitter, either magneti-
cally or electronically.
FilerPerson (may be payer and/or transmitter) submitting informa-
tion returns to IRS.
Filing YearThe actual year in which the information returns are being
submitted to IRS.
Golden Parachute PaymentApayment made by a corporation to a certain officer, share-
holder, 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.
Incorrect Taxpayer Identification Number (Incorrect TIN) 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 pro-
vided someone else’s TIN).
(b) Aprocessing 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 SSAso that they could
enter the change in their records).
Individual Taxpayer Identification Number (ITIN)Anine 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).
Information ReturnThe vehicle for submitting required information about an-
other person to IRS. Information returns are filed by financial
institutions and by others who make certain types of pay-
ments as part of their trade or business. The information re-
quired to be reported on an information return includes inter-
est, 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–MSAor W–2G.
Magnetic Media 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.
Media Tracking SlipForm 9267 accompanies media that IRS/MCC has returned to
the filer for replacement due to incorrect format or errors en-
countered when trying to process the media. This must be
returned with the replacement file.
Missing Taxpayer Identification Number (Missing TIN)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
PS 58 Costs The current cost of life insurance under a qualified plan tax-
able under section 72(m) and section 1.72–16(b) of the In-
1997–30 I.R.B.31July 28, 1997

come Tax Regulations. (See Part B, Sec. 7, Payee “B”
Record, Document Specific/Distribution Code, Category of
Distribution, Code 9.)
PayeePerson or organization receiving payments from the payer, or
for whom an information return must be filed. The payee in-
cludes a borrower (Form 1099–A), a debtor (1099–C), a poli-
cyholder or insured (Form 1099–LTC), an IRA, SEP, or SIM-
PLE 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 mort-
gage interest payments, a broker, a person reporting a real es-
tate transaction, a barter exchange, a creditor, a trustee, or is-
suer 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 re-
sponsible for the completeness, accuracy, and timely submis-
sion of magnetic media files.
ReplacementAreplacement is an information return file that IRS/MCC has
returned to the transmitter due to errors encountered during
processing.
+Note: Filers should neversubmit 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 BureauPerson 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 con-
sidered a service bureau.
Social Security Number (SSN) Anine-digit number assigned by SSAto an individual for
wage and tax reporting purposes.
Special CharacterAny character that is not a numeral, an alpha, or a blank.
SSASocial 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 yearGenerally, 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) mag-
netically/ electronically.The transmitter may be the payer or
agent of the payer.
Transmitter Control Code (TCC)Afive character alpha/numeric number assigned by
IRS/MCC to the transmitter prior to actual filing magneti-
cally 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.
VendorVendors include service bureaus that produce information re-
turn files on the prescribed types of magnetic media or via
1997–30 I.R.B.32July 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 Fed-
eral/State Filing Program.
S t a t eC o d eS t a t eC o d eS t a t eC o d e
AlabamaALKentuckyKYOhioOH
AlaskaAKLouisianaLAOklahomaOK
American SamoaASMaineMEOregonOR
ArizonaAZMarshall IslandsMHPennsylvaniaPA
ArkansasARMarylandMDPuerto RicoPR
CaliforniaCAMassachusettsMARhode IslandRI
ColoradoCOMichiganMISouth Carolina SC
ConnecticutCTMinnesotaMNSouth DakotaSD
DelawareDEMississippiMSTennesseeTN
District of ColumbiaDCMissouriMOTexasTX
Federated States MontanaMTUtah UT
of MicronesiaFMNebraskaNEVermontVT
FloridaFLNevada NVVirginiaVA
GeorgiaGANew HampshireNHVirgin Islands*VI
GuamGUNew JerseyNJWashingtonWA
HawaiiHINew MexicoNMWest VirginiaWV
IdahoIDNew YorkNYWisconsinWI
IllinoisILNorth CarolinaNCWyomingWY
IndianaINNorth DakotaND
IowaIANorthern Mariana IslandsMP
KansasKS
*This abbreviation applies to the United States Virgin Islands
.02 Filers must adhere to the city, state, and ZIPcode 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 Is-
lands.
.03For 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.
.04When reporting APO/FPO addresses use the following format:
EXAMPLE:
Payee NamePVTWillard J. Doe
Mailing AddressCompany F, PSC Box 100
167 Infantry REGT
Payee CityAPO (or FPO)
Payee StateAE, AA, or AP*
Payee ZIPCode098010100
*AE is the designation for ZIPs beginning with 090-098, AAfor ZIP340, 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 (seeNote). If a filer purchased a soft-
ware package for a previous tax year, it may no longer be valid for reporting current tax year information returns.
1997–30 I.R.B.33July 28, 1997

+ Note: If filers meet the filing requirements and engage a service bureau to prepare media on theirbehalf, 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 submit-
ted 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 bezero (0) filled.
EXAMPLE:“A” RECORD247bbbbbb—(‘b’denotes a blank)
(Pos. 23–31)
“B” RECORD0000867599—(Payment Amount 2)
(Pos. 61–70)
0000709097—(Payment Amount 4)
(Pos. 81–90)
0000044985—(Payment Amount 7)
(Pos. 111–120)
3. Blanks orinvalid characters appearin 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’sTIN 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 yearin 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 specifi-
cations for wage information, and the media containing Forms W-2 is submitted to SSA. Any media received at IRS/MCC that con-
tains 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 notexceed 31 percent of the income reported. Validate the total reported in the withholding field against the total income re-
ported.
9. Incorrect format forTINs in the Payee “B” Record
Acheck 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, how-
ever, will not prevent backup withholding notices (CP2100 and CP2100ANotices) 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.34July 28, 1997

10. Distribution Codes forForm 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 fig-
ures on the Form 4804 are compared against the total number of Payee “B” Records processed on the media. Imbalances may ne-
cessitate the return of the files for replacement.
12. Invalid Use of IRA/SEP/SIMPLEIndicator
The IRA, SEP, or SIMPLEIndicator for Form 1099-R should be used only for the reporting of a distribution from an IRA, SEPor
S I M P L E. The total amount distributed from an IRA, SEPor S I M P L Eshould be reported in Payment Amount Field 2
(IRA/SEP/SIMPLEDistribution).
Part B. Magnetic Media Specifications
Sec. 1. General
.01The 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.
.02Aprovision 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 de-
pending on the type of return.
.03Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifi-
cations, 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
.01IRS/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.
.02All 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.
.03The 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; how-
ever, 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 log-
ical 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.
.04Labeled or unlabeled tapes may be submitted.
.05For 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).
1997–30 I.R.B.35July 28, 1997

( c )May follow the header label and precede and/or follow the trailer label.
. 0 6IRS/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 tape-
mark, but m u s tend with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
Sec. 3. Tape Cartridge Specifications
. 0 1In 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 N o t e) .
(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 Informa-
tion Interchange) may be used.
. 0 2The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
( a )Ablock must notexceed 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. 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 num-
ber 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.
. 0 3Tape cartridges may be labeled or unlabeled.
. 0 4For 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 whetherthe cartridge is 36-
track or1 8 - t r a c k.
Sec. 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications
. 0 1In 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:
Tr a c k sD e n s i t yC a p a c i t y
120 (43245 BPI)2.3 Gb
121 (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 Informa-
tion 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) Afile 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 in-
dicate 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 )Ablock must notexceed 32,760 tape positions.
1997–30 I.R.B.36July 28, 1997

( 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. 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 num-
ber 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 OBJECTCOMMAND 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.
. 0 3For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a sug-
gested filename.
. 0 4For 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.
. 0 5If 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.
. 0 6IRS/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 tape-
mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
. 0 74mm (.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 (DATData 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 .
. 0 8Various Quarter Inch Cartridges (QIC) (1/4-inch) are also acceptable.
( a )QIC cartridges will be 4by 6.
( b )QIC cartridges must meet the following specifications:
S i z eTr a c k sD e n s i t yC a p a c i t y
Q I C - 114 / 54 (8000 BPI)22Mb or 30Mb
Q I C - 2 48 / 95 (8000 BPI)45Mb or 60Mb
Q I C - 1 2 01 515 (10000 BPI)120Mb or 200Mb
Q I C - 1 5 01 816 (10000 BPI)150Mb or 250Mb
Q I C - 3 2 02 617 (16000 BPI)3 2 0 M b
Q I C - 5 2 52 617 (16000 BPI)5 2 5 M b
Q I C - 1 0 0 03 021 (36000 BPI)1 G b
Q I C - 1 3 5 03 018 (51667 BPI)1 . 3 G b
Q I C - 2 G b4 234 (40640 BPI)2 G b
( 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
. 0 1To 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 applica-
b l e .
( 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.37July 28, 1997

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 )Adiskette file may consist of multiple diskettes as long as the file naming conventions are followed.
( h )Diskettes must meet one of the following specifications:
C a p a c i t yTr a c k sS i d e s / D e n s i t ySector Size
1.44 mb9 6 t p ih d5 1 2
1.44 mb1 3 5 t p ih d5 1 2
1.2 mb9 6 t p ih d5 1 2
720 kb4 8 t p id s / d d5 1 2
360 kb4 8 t p id s / d d5 1 2
320 kb4 8 t p id s / d d5 1 2
180 kb4 8 t p is s / d d5 1 2
160 kb4 8 t p is s / d d5 1 2
. 0 2IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files (See N o t e). If extra-
neous data follows the End of Transmission “F” Record, the file must be returned for replacement.
. 0 3IRS/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 orAS400 are not acceptable.
. 0 4Transmitters 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
. 0 1The 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.
. 0 2The number of “A” Records depends on the number of payers and the different types of returns being reported. The pay-
ment amounts for one payer and for one type of return should be consolidated under one “A” Record if submitted on the same
f i l e .
. 0 3Do not submit separate “A” Records for each payment amount being reported. For example, if a payer is filing Form
1 0 9 9 – D I Vto report Amount Codes 1, 2, and 3, all three amount codes should be reported under one “A” Record, not three sepa-
rate “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.
. 0 4The first record on the file must be an “A” Record. Atransmitter may include “B” Records for more than one payer on a
tape or diskette. However, each g ro u pof “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 notbe intermingled. As e p-
arate “A” Record is required for each payer and each type of return being reported.
. 0 5All records must be a fixed length of 420 positions.
. 0 6An “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.
. 0 7Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.
. 0 8All alpha characters entered in the “A” Record must be upper- c a s e.
. 0 9When 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: Forall fields marked Required, the transmittermust provide the information described underD e s c r i p t i o n
and Remarks. Forthose fields not marked Required, a transmittermust allow forthe field, but may be instructed to
e n t e rblanks orz e ros in the indicated media position(s) and forthe indicated length. All records are now a fixed length of
420 positions.
1997–30 I.R.B.38July 28, 1997

Record Name: Payer/Tr a n s m i t t e r“A” Record
Field PositionField Title L e n g t hDescription and Remarks
1Record Ty p e1R e q u i re d. Enter “A.”
2 – 3Payment Ye a r2 R e q u i re d. Enter “97” (unless reporting prior year
d a t a ) .
4–6 Reel Sequence Number3 The reel sequence number is incremented by 1 for each
tape or diskette on the file starting with 001. The trans-
mitter 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 N9 R e q u i re d. Must be the valid nine-digit Taxpayer Iden-
tification Number assigned to the payer. Do not enter
blanks, hyphens, oralpha characters.All zeros,
ones, twos, etc., will have the effect of an incorrect
T I N .
+ 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 Indi-
c a t o r, position 49 of the “A” Record, must be set to “1” (one).
16–19 Payer Name Control4 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 Pack-
age 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 notcontain 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 Indicator1 Enter a “1” (one) if this is the last year the payer will
file; otherwise, e n t e rb l a n k. 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/State1 R e q u i re dfor the Combined Federal/State Filing Pro-
F i l e rgram. Enter “1” (one) if participating in the Combined
Federal/State Filing Program; otherwise, e n t e rb l a n k.
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–MSAand W–2G c a n n o tb e
filed under this program.
22Type of Return1 R e q u i re d. Enter the appropriate code from the table
below:
1997–30 I.R.B.39July 28, 1997

Type of ReturnCode
10983
1099–A4
1099–B B
1099–C 5
1099–DIV1
1099–G F
1099–INT6
1099–LTC T
1099–MISC A
1099–MSAM
1099–OID D
1099–PATR 7
1099–R 9
1099–S S
5498 L
5498–MSAK
W–2G W
23–31Amount Codes 9Required. Enter the appropriate amount codes for the
(See Note) type of return being reported. Generally, for each
amount code entered in this field, a corresponding pay-
ment amount m u s tappear in the Payee “B” Record.
In most cases, the box numbers on paperinformation
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 n-
cies 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
enterthe letter“b”.)
The firstpayment amount field will represent rents;
the secondwill represent royalties;
the thirdwill be all “0” (zeros);
the fourthwill represent Federal income tax withheld;
the fifth and sixthwill be all “0” (zeros);
the seventhwill represent nonemployee compensation;
and
the eighth and ninthwill be all “0” (zeros).
Enter the amount codes in ascending sequence(i.e., 1247bbbbb, left justify information, and fill un-
used 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 enterthe 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. Fora detailed explanation of the information to be reported in each amount code, referto the 1997 “In-
structions forForms 1099, 1098, 5498, and W–2G.”
Amount Codes Form 1098— For Reporting Mortgage Interest Received From Payers/
Mortgage Interest StatementBorrowers (Payer of Record) on Form 1098:
1997–30 I.R.B.40July 28, 1997

Amount CodeAmount Type
1 Mortgage interest received from
payer(s)/borrower(s)
2 Points paid on purchase of princi-
pal residence
3Refund (or credit) of overpaid in-
terest
Amount Codes Form 1099–A— For Reporting the Acquisition or Acquisition or Abandonment
of Secured Property (See Note)Abandonment of Secured Property on Form 1099–A:
AmountCodeAmount Type
2 Balance of principal outstanding
4Fair market value of property
+ Note: If, in the same calendaryear, a debt is canceled in connection with the acquisition orabandonment of secured
property forone debtorand the filerwould be required to file both Forms 1099–Aand 1099–C, the fileris required to file
Form 1099–C only. See the 1997 “Instructions forForms 1099, 1098, 5498, and W–2G” forfurtherinformation on coordina-
tion with Form 1099–C.
Amount Codes Form 1099–B Proceeds FromFor Reporting Payments on Form 1099–B:
Broker and Barter Exchange Transactions
Amount Code Amount Type
2Stocks, bonds, etc. (For forward
contracts, See Note 1)
3Bartering (Do not report negative
amounts.)
4 Federal income tax withheld
(backup withholding) (Do not re-
port negative amounts.)
6 Profit (or loss) realized on closed
regulated futures or foreign cur-
rency contracts in 1997 (See N o t e
2) .
7 Unrealized profit (or loss) on open
contracts-12/31/96 (See Note 2).
8 Unrealized profit (or loss) on open
contracts- 12/31/97(See Note 2).
9 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 trans-
action on a forward contract. Referto the “B” Record — General Field Descriptions, Payment Amount Fields, forinstruc-
tions on reporting negative amounts.
+ Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used forthe reporting of regulated futures orforeign currency
contracts.
Amount Codes Form 1099–C— For Reporting Cancellation of Debt on Form 1099–C:
Cancellation of Debt (See Note 1)Amount Code Amount Type
2Amount of debt canceled
3Interest if included in Amount
Code 2
7Fair market value of property (See
Note 2)
+ Note 1: If, in the same calendaryear, a debt is canceled in connection with the acquisition orabandonment of secured
property forone debtorand the filerwould be required to file both Forms 1099–C and 1099–A(Acquisition orAbandon-
1997–30 I.R.B.41July 28, 1997

ment of Secured Property), the fileris required to file Form 1099-C only. See the 1997 “Instructions forForms 1099, 1098,
5498, and W–2G” forfurtherinformation 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— For Reporting Payments on Form 1099–DIV
Dividends and Distributions:
Amount Code Amount Type
1 Gross dividends and other distrib-
utions on stock (See Note)
2 Ordinary dividends (See Note)
3 Capital gain distributions (See
N o t e)
4 Nontaxable distributions (if deter-
minable) (See Note)
5 Investment expenses (See Note)
6 Federal income tax withheld
(backup withholding)
7 Foreign tax paid
8 Cash liquidation distributions
9 Noncash liquidation distributions
(show fair market value)
+ Note: Amount Code 1 must be present (unless the payeris using Amount Codes 8 or9 only) and must equal the sum of
amounts reported forAmount Codes 2, 3, 4, and 5. If an amount is present forAmount Code 1, there must be an amount
present forAmount Codes 2–5, as applicable.
Amount Codes Form 1099–G— Certain GovernmentFor Reporting Payments on Form 1099–G:
Payments
Amount CodeAmount Type
1 Unemployment compensation
2 State or local income tax refunds,
credits, or offsets
4 Federal income tax withheld
(backup withholding) or voluntary
withholding on unemployment
compensation or Commodity
Credit Corporation Loans, or cer-
tain crop disaster payments
6 Taxable grants
7 Agriculture payments
Amount Codes Form 1099–INT— Interest IncomeFor Reporting Payments on Form 1099–INT:
Amount CodeAmount Type
1 Interest income not included in
Amount Code 3
2 Early withdrawal penalty
3 Interest on U.S. Savings Bonds
and Treasury obligations
4 Federal income tax withheld
(backup withholding)
5 Foreign tax paid
1997–30 I.R.B.42July 28, 1997

Amount Codes Form 1099–LTC —Long-Term Care andFor Reporting Payments on Form 1099–LTC:
Accelerated Death Benefits
Amount CodeAmount Type
1Gross long-term care benefits paid
2Accelerated death benefits paid
Amount Codes Form 1099–MISC— Miscellaneous IncomeFor Reporting Payments on Form 1099–MISC:
Amount CodeAmount Type
1 Rents (See Note 1)
2 Royalties (SeeNote 2)
3 Other income
4 Federal income taxw i t h h e l d
(backup withholding or withhold-
ing on payments of Indian gaming
p r o f i t s )
5 Fishing boat proceeds
6 Medical and health care payments
7 Nonemployee compensation or
crop insurance proceeds (See N o t e
3)
8Substitute payments in lieu of div-
idends or interest
9 Excess golden parachute payments
+ Note 1: If reporting the Direct Sales Indicatoronly, use Type of Return Code Afor1099–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 timberroyalties undera “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 forinstructions. If nonemployee compensation
and crop insurance proceeds are being paid to the same payee, a separate “B” Record foreach transaction is required.
Amount Codes Form 1099–MSADistributions FromFor Reporting Distributions from Medical Savings Accounts
Medical Savings Accounts on Form 1099–MSA
Amount CodeAmount Type
1Gross distribution
2Earnings on excess contributions
Amount Codes Form 1099–OID— Original Issue DiscountFor 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 DistributionsFor Reporting Payments on Form 1099–PATR:
Received From Cooperatives
AmountCode Amount Type
1 Patronage dividends
2 Nonpatronage distributions
3 Per-unit retain allocations
4 Federal income tax withheld
(backup withholding)
5 Redemption of nonqualified no-
tices and retain allocations
1997–30 I.R.B.43July 28, 1997

Pass-Through Credits
(See Note)
6For filers’use
7 Investment credit*
8Work opportunity credit**
9Patron’sAlternative Minimum Tax
(AMT) adjustment
*The title of Amount Code 7 has been changed from Energy investment credit to Investment credit.
**Thetitle of Amount Code 8 has been changed from Jobs credit to Work opportunity credit.
+ Note: Amount Codes 6, 7, 8, and 9 are reserved forthe patron’s share of unused credits that the cooperative is passing
through to the patron. Othercredits, 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 forthe convenience of the filer. This information is not needed by IRS/MCC.
Amount Codes Form 1099–R— Distributions From For Reporting Payments on Form 1099-R:
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
AmountCodeAmount Type
1 Gross distribution (See Note 1)
2 Taxable amount (See Note 2)
3 Capital gain (included in A m o u n t
Code 2)
4 Federal income tax withheld (See
Note 3)
5 Employee contributions or insur-
ance premiums
6 Net unrealized appreciation in em-
ployer’s securities
8 Other
9 Total employee contributions
+ Note 1: If the payment shown forAmount Code 1 is a total distribution, entera “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 entera negative amount. Forexample, if stock is distributed but the value is
less than the employee’s after-tax contributions, enterthe value of the stock in Amount Code 1, enter“0” (zero) in Amount
Code 2, and enterthe employee’s contributions in Amount Code 5. If the taxable amount cannot be determined, entera “1”
(one) in position 48 of the “B” Record. If reporting an IRA, SEP, orSIMPLE distribution, generally include the amount of
the distribution in the Taxable Amount (Payment Amount Field 2, positions 61–70) and entera “1” (one) in the
IRA/SEP/SIMPLE IndicatorField (position 44). A“1” (one) may be entered in the Taxable Amount Not Determined Indica-
torField (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 forBox 2a of Form 1099–R in the 1997“Instructions forForms 1099, 1098, 5498, and
W–2G” formore information on reporting the taxable amount.
+ Note 3: See the l997 “Instructions forForms 1099, 1098, 5498, and W–2G” forinformation concerning Federal income
tax withheld forForm 1099–R.
+ Note : Forpayers who wish to report state orlocal 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 For Reporting Payments on Form 1099–S:
Transactions
AmountCode Amount Type
2 Gross proceeds (See Note)
5Buyer’s part of real estate tax
+ Note: Include payments of timberroyalties made undera “pay-as-cut” contract, reportable undersection 6050N. If
timberroyalties are being reported, enter“TIMBER” in the description field of the “B” Record. Formore information, see
Announcement 90–129, 1990–48 I.R.B. 10.
1997–30 I.R.B.44July 28, 1997

Amount Codes Form 5498— IRA, SEP, or SIMPLEFor Reporting Payments on Form 5498:
Retirement Plan Information (See Note)
AmountCode Amount Type
1 Regular IRAcontributions made
in 1997 and 1998 for 1997.
2 IRA, S E P, or SIMPLE ro l l o v e r
contributions
3 Life insurance cost included in
Amount Code 1
4 Fair market value of account
6SEPcontributions
7SIMPLE contributions
+ Note: Forinformation regarding Inherited IRAs, re f e rto the 1997 “Instructions forForms 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 IRAcontributions fora Desert Storm/Shield participant forotherthan 1997 oran Operations Joint Guard
(OJG) (Bosnia Region) participant, enter“DS” forDesert Storm or“JG” forJoint Guard, the yearforwhich the contribu-
tion was made, and the amount of the contribution in the Special Data Entries Field of the “B” Record. Do not enterthe con-
tributions in Amount Code 1.
Forinformation concerning Desert Storm/Shield participant reporting, referto the 1994 “Instructions forForms 1099,
1098, 5498, and W–2G,” orNotice 91–17, 1991–1 C.B. 319. The instructions forfiling Form 5498 forDesert Storm/Shield
participants will also apply to participants ofOperations Joint Guard (OJG) of the Bosnia Region.
Amount Codes Form 5498–MSAMedical Savings AccountFor Reporting Contributions to Medical Savings Accounts
Information
Amount CodeAmount Type
1Employee MSAc o n t r i b u t i o n s
made in 1997 and 1998 for 1997
2Total MSAcontributions made in
1997
3 Total MSAcontributions made in
1998 for 1997
4 M S Arollover contributions (not
included in Amount Code 1, 2, or
3) (SeeNote 1)
5 Fair market value of account (See
Note 2)
+ Note 1: This is the amount of any rollovermade to this MSAin 1997 aftera distribution from anotherMSA. Forde-
tailed information on reporting, see 1997 “Instructions forFiling Forms 1099, 1098, 5498 and W–2G.”
+ Note 2: This is the fairmarket value (FMV) of the account at the end of 1997.
Amount Codes Form W–2G— Certain Gambling WinningsFor Reporting Payments on Form W–2G:
Amount Code Amount Type
1 Gross winnings
2Federal income tax withheld
3 State income tax withheld (See
Note)
7 Winnings from identical wagers
+ Note: State income tax withheld is added forthe convenience of the payerbut need not be reported to IRS/MCC.
32 Test Indicator 1Required. Enter “T” if this is a test file, otherwise, enter
a blank.
1997–30 I.R.B.45July 28, 1997

33 Service Bureau 1 Enter “1” (one) if a service bureau was used to develop
Indicator and/or transmit files, otherwise,enterblank. See Part
A, Sec. 17 for the definition of service bureau.
34–41 Blank 8 Enterblanks.
42–43 Magnetic Tape Filer 2 R e q u i re dfor magnetic tape/tape cartridge filers o n l y.
Indicator Enter the letters “LS” (in uppercaseonly). Use of this
field by filers using other types of media will be accept-
able but is not required.
44–48 Transmitter Control 5 R e q u i re d. Enter the five character alpha/numeric
Code (TCC)Transmitter Control Code assigned by IRS/MCC. A
TCC must be obtained to file data on this program. Do
not entermore than one TCC perfile.
49 Foreign Entity 1 Enter a “1” (one) if the payer is a foreign entity and in-
Indicator come is paid by the corporation to a U.S. resident. If
the payer is not a foreign entity, enter a blank (See
N o t e) .
+ Note: If payers erroneously report entities as foreign, they may be subject to a penalty forproviding incorrect infor-
mation 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 ap-
pears in positions 7–15 of the “A” Record. Any extrane-
ous information must be deleted. Left justify informa-
tion, and fill unused positions with blanks. (Filers should
not enter a transfer agent’s name in this field. Any trans-
fer 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
payerof record) and the amount paid. ForForm 1099–S, the “A” Record will reflect the person responsible forreporting
the transaction (the filerof Form 1099–S) and the “B” Record will reflect the seller/transferor.
90–129 Second Payer Name Line40 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 infor-
mation and fill unused positions with blanks.
130 Transfer Agent Indicator1 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.)
Code Meaning
1 The entity in the Second Payer
Name Line Field is the transfer (or
paying) agent.
0 (zero) The entity shown is notthe transfer
(or paying) agent (i . e . ,the Second
Payer Name Line Field contains ei-
ther a continuation of the First Payer
Name Line Field or blanks).
1997–30 I.R.B.46July 28, 1997

131–170 Payer Shipping 40 R e q u i re d. If the Transfer Agent Indicator in position
Address 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.
ForU.S. addresses, the payer city, state, and ZIPcode must be reported as a 29, 2, and 9 position field, respectively.Filers must
adhere to the correct format forthe payercity, state, and ZIPcode. Forforeign 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 R e q u i re d. 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 officeof the payer.Left justify information, and fill
unused positions with blanks. Do not enter state and ZIP
code information in this field.
200–201Payer State2Required. Enter the valid U.S. Postal Service state ab-
breviations for states.
202–210Payer ZIPCode9Required. Enter the valid nine digit ZIPcode assigned
by the U.S. Postal Service. If only the first five digits are
known, left justify information and fill the unused posi-
tions 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 R e q u i re dif 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 trans-
mitter mustbe 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 40 Requiredif the payer and transmitter are not the same.
Address Enter the mailing address of the transmitter. Street ad-
dress should include number, street, apartment or suite
number (or P.O. Box if mail is not delivered to street ad-
dress). 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 Requiredif 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.
360–361Transmitter State 2Requiredif the payer and transmitter are not the same.
Enter the valid U.S. Postal Service state abbreviation for
states.
3 6 2 – 3 7 0Transmitter ZIPC o d e9R e q u i re dif the payer and transmitter are not the same.
1997–30 I.R.B.47July 28, 1997

Enter the valid nine digit ZIPCode 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 15 Enter the payer’s phone number and extension.
and Extension
386–418Blank33Enterblanks.
419–420Blank 2 Enterblanksor carriage return/line feed (cr/lf).
Sec. 7. Payer/Transmitter “A” Record - Record Layout
12–34–67–1516–1920
212223–313233
34–4142–4344–484950–8990–129
130131–170171–199200–201202–210211–290
331–359360–361362–370 371–385386–418419–420
Sec. 8. Payee “B” Record — General Field Descriptions and Record Layouts
. 0 1The “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, 1 0 9 9 – LT C, 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 m u s tallow 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 60for Payment Amount 1 will represent rents.
Positions 61–70for Payment Amount 2 will represent royalties.
Positions 71–80for Payment Amount 3 will be “0s” (zeros).
Positions 81–90for Payment Amount 4 will represent Federal income tax withheld.
1997–30 I.R.B.48July 28, 1997
Combined Federal/State
Filer
Type
of Return
Amount
Codes
Test
Indicator
Service Bureau
Indicator
Record
Type
Payment
Year
Reel Sequence
Number
Payer’s
TIN
Payer Name
Control
Last Filing
Indicator
Blank
Magnetic Tape
Filer Indicator
Transmitter
Control Code
Foreign Entity
Indicator
First Payer
Name Line
Second Payer
Name Line
Transfer Agent
Indicator
Payer Shipping
Address
Payer
City
Payer
State
Payer
ZIPCode
Transmitter
Name
Transmitter
City
Transmitter
State
Transmitter
ZIPCode
Payer Phone
Number & Extension
Blank
Blank or
CR/LF

Positions 91–110for Payment Amounts 5 and 6 will be “0s” (zeros).
Positions 111–120for Payment Amount 7 will represent nonemployee compensation.
Positions 121–140for Payment Amounts 8 and 9 will be “0s” (zeros).
.02The 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.
.03If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Compli-
ance 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.
.04See Part A, Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).
.05Afield 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.
.06Those 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.
.07All alpha characters in the “B” Record must be uppercase.
.08Do notuse decimal points (.)to indicate dollars and cents. Ten dollars must appear as 0000001000 in the payment amount
field.
.09IRS strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous no-
tices. Transmitters should be especially careful that the names, TINs, account numbers, types of income, and income amounts are
correct.
.10When 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: Forall fields marked Required, the transmittermust provide the information described underDescription and
Remarks. Forthose fields not marked Required, the transmittermust allow forthe field, but may be instructed to enter
blanks orzeros in the indicated position(s) and forthe 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/2 Required for Forms 1099–G, 1099–MISC (for Crop In-
Distribution Codesurance Proceeds only), 1099–MSA,1099–R and W–2G.
For all other forms, or if not used, enterblanks.
Tax Year of RefundForForm 1099–G, use only for reporting the tax year
for (Form 1099–Gonly)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 numericyear from the
table below for which the refund, credit, or offset was is-
sued (e.g., for 1996, enter 6). If the refund, credit or off-
set is exclusively attributable to income from a trade or
business and is not of general application, enter the
alphaequivalent of the year from the table below (e.g.,
for 1996, enter F).
1997–30 I.R.B.49July 28, 1997

Code For Tax Year Which Refund Was Issued
Tax YearCodeCode For
For WhichForTrade/Business
Refund WasGeneralRefund (Alpha
IssuedRefund*Equivalent)*
19877G
19888H
19899I
19900J
19911A
19922B
19933C
19944D
19955E
19966F
*Be sure the distribution code reflects the tax yearf o rwhich the REFUND was made, not the tax yearof the Form 1099–G.
Crop Insurance Proceeds F o rForm 1099-MISC, enter “1” (one) in position 4 if the
(Form 1099-MISConly)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 1099-
MISC requiring a Document Specific/Distribution
Code.
4 – 5Distribution Code contd.2For Form 1099-MSA, enter the applicable code in posi-
(Form 1099-MSAo n l y )tion 4. Position 5 will be blank.
(For a detailed
explanation of the CategoryCode
distribution codes,Normal distribution1
see the 1997Excess contributions2
“ I n s t ructions for Disability3
Forms 1099, 1098,Death4
5498, and W- 2 G . )Prohibited transaction5
(Form 1099–R only)For Form 1099-R, enter the appropriate distribution
code(s). More than one code may apply for Form 1099-R.
(For a detailed explanationIf only one code is required, it must be entered in position 4
of the distribution codes,and position 5 must be blank. Enter at least one (1)
see the 1997 “Instructionsdistribution code. Ablank in position 4 is not acceptable.
for Forms 1099, 1098, 5498Enter the applicable code from the table that follows.
and W – 2 G . ” )Position 4 must contain a numeric code in all cases except
when using P, D, E, F, G, H, L, or S.( Land S have been
added for TY97.)Distribution Code A, B, or C, when ap-
plicable, must be entered in position 5 with the applicable
numeric code in position 4.When using Code Pfor an
I R Adistribution under section 408(d)(4) of the Internal
Revenue Code, the filer may also enter Code 1 if applica-
ble. Only three numeric combinations are acceptable,
codes 8 and 1, codes 8 and 2 and codes 8 and 4, on one re-
turn. 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 conjunc-
tion with Distribution Code 4 only, if applicable.
1997–30 I.R.B.50July 28, 1997

1997–30 I.R.B.51July 28, 1997
C a t e g o ryC o d e
Early distribution, no known exception1*
Early distribution, exception applies 2*
(as defined in section 72(q), (t), or
(v) of the Internal Revenue Code (other
than disability or death)
Disability3*
Death (includes payments4*
to an estate or other beneficiary)
Prohibited transaction 5*
Section 1035 exchange 6
Normal distribution 7*
Excess contributions plus earnings/excess8 *
deferrals (and/or earnings) taxable in 1997
PS 58 costs9
Excess contributions plus earnings/excessP *
d e f e r r a l staxable in 1996
May be eligible for 5- or 10-year tax optionA
May be eligible for death benefit exclusionB
(See Note 1)
May be eligible for both Aand B (See Note 1)C
Excess contributions plus earnings/excess D*
deferrals taxable in 1995
Excess annual additions under section 415E
Charitable gift annuityF
Direct rollover to IRAG
Direct rollover to qualified plan or tax-shelteredH
annuity
Loans treated as deemed distributions underL
section 72(p)
Early distribution from a SIMPLE (IRAin first S*
2 years, no known exception)
*If reporting an IRA, SEP, or SIMPLEdistribution, code a “1” (one) in position 44 of the “B” Record.
+ Note 1: Do not use code B orC forpayments with respect to employees who died afterAugust 20, 1996.
Type of Wager (Form W–2G Only)For Form W–2G, enter the applicable code in position 4.
Position 5 will be blank.
CategoryCode
Horse race track (or off-rack betting of a1
horse track nature)
Dog race track (or off- track betting of a dog2
track nature)
Jai-alai3
State-conducted lottery4
Keno5
Bingo 6
Slot machines7
Any other type of gambling winnings8
62nd TIN Notice1 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.

7Corrected Return 1 Indicate a corrected return.
I n d i c a t o r
CodeDefinition
G If this is a one- transaction cor-
rection or the first of a two-trans-
action correction
C If this is the second transaction
of a two transaction correction
BlankIf this is not a return being sub-
mitted to correct information al-
ready processed by IRS.
+ Note: C, G, and non-coded records must be reported using separate Payer“A” Records. Referto PartA, Sec. 13, for
specific instructions on how to file corrected returns.
8–11Name Control4If 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 corre-
sponds to the TIN is not included in the first or second
payee name line and the correct name control is not pro-
vided, 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 [‘], ordash
[-]), this information may be dropped during subsequent IRS/MCC processing.
The following examples may be helpful to filers in developing the Name Control:
NameName Control
Individuals:
Jane BrownBROW
John A. LeeLEE*
James P. En,Sr.EN*
John O’NeillONEI
Mary VanBuren VANB
Juan DeJesus DEJE
Gloria A. El-Roy EL-R
Mr. John Smith SMIT
Joe McCarthy MCCA
Pedro Torres-Lopes TORR
Maria Lopez Moreno**LOPE
Binh To LaLA*
Nhat Thi PhamPHAM
Mark D’Allesandro DALL
Corporations:
The First National Bank FIRS
TheHideawayTHEH
1997–30 I.R.B.52July 28, 1997

A& B Cafe A&BC
11THStreet Inc. 11TH
Sole Proprietor:
Mark Hemlock DBA
The Sunshine ClubHEML
Partnership:
Robert Aspen and Bess Willow ASPE
Harold Fir, Bruce Elm, and
Joyce Spruce et al Ptr FIR*
Estate:
Frank White Estate WHIT
Sheila BlueEstate BLUE
Trusts and Fiduciaries:
Daisy Corporation Employee
Benefit Trust DAIS
Trust FBO The Cherryblossom
SocietyCHER
Exempt Organization:
Laborer’s Union, AFL-CIOLABO
St. Bernard’s Methodist
Church Bldg. Fund 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 Indicator11099 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 Blank1Enterblank.
14Type of TIN1This 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 Num-
ber (SSN) or an Individual Taxpayer Identification Num-
ber (ITIN).Enter the appropriate code from the follow-
ing table:
Type of TINType of Account
1EIN Abusiness, organization, sole
proprietor, or other entity
2SSN An individual, including a sole
proprietor
or
2ITINAn individual required to have
a taxpayer identification num-
b e r, but who is not eligible to
obtain an SSN
BlankN/AIf the type of TIN is not deter-
minable, enter a blank.
1997–30 I.R.B.53July 28, 1997

1 5 – 2 3Taxpayer Identification9R e q u i red. Enter the nine digit Taxpayer Identification
Number Number of the payee (SSN, I T I N, or EIN). If an identifi-
cation 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 N o t e) .
+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 en-
couraged 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 orCP2100ANotices) orpenalties forfiling incor-
rect information returns.
24–43Payer’s Account 20Enter any number assigned by the payer to the payee
Number For Payee (e.g., checking or savings account number). Filers are
encouraged to use this field. This number helps to distin-
guish individual payee records and should be unique for
each document. Do not use the payee’sTIN since this
will not make each record unique. This information is
particularly useful when corrections are filed. This num-
ber will be provided with the backup withholding notifi-
cation 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 1Form 1099–R only.Enter “1” (one) if reporting a
IRA/SEP/SIMPLEdistribution from an IRA, SEP, or S I M P L E; otherwise,
Indicator enter a blank (See Note).
+Note: ForForm 1099-R, generally, report the total amount distributed from an IRA, SEP, orSIMPLEin 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. Referto the 1997 “Instructions
forForms 1099, 1098, 5498, and W–2G” forexceptions.
45–46 Percentage of 2 Form 1099–R only.Use this field when reporting a total
Total Distribution distribution to more than one person, such as when a par-
ticipant 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 SIMPLEdis-
tributions or for direct rollovers.
47Total Distribution1Form 1099–R only. Enter a “1” (one) only if the
Indicator (See Note)payment shown for Amount Code 1 is a total distribution
that closed out the account; otherwise, enter a blank.
+Note: Atotal distribution is one ormore distributions within one tax yearin 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.54July 28, 1997

48Taxable Amount1Form 1099–R only.Enter a “1” (one) only if the
Not Determinedtaxable amount of the payment entered for Payment
IndicatorAmount Field 1 (Gross Distribution) of the “B” Record
cannot be computed; otherwise, enterblank.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 tax-
able amount.
+Note: If reporting an IRA, SEP, orSIMPLE distribution forForm 1099–R, the Taxable Amount Not Determined Indi-
catormay be used; but, it is not required. If the IRA/SEP/SIMPLE Indicatoris present, generally, the amount of the distri-
bution must be reported in both Payment Amount Fields 1 and 2. Referto the 1997 “Instructions forForms 1099, 1098,
5498, and W–2G” formore information.
49–50Blank2Enterblanks.
Payment Amount FieldsR e q u i red. Filers should allow forall payment
(Must be numeric)amounts. Forthose not used, enterz e ros. For
(See Note 1)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 ex-
ample, “b” denotes blanks in the designated positions.
Do not enter the letter ‘b.’) Payment Amount 1 will rep-
resent 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); Pay-
ment amount 7 will represent nonemployee compensa-
tion, 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 posi-
tions represent cents in the payment amount fields. Do
not enter dollar signs, commas, decimal points, or nega-
tive payments, except those items that reflect a loss on
Form 1099-B. Positive and negative amounts are indi-
cated by placing a “+” (plus) or “-” (minus sign) in the
left-most position of the payment amount field. Anega-
tive 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 re-
ported as a negative amount onany form.
+Note 1: Filers must enternumeric information in all payment fields when filing magnetically orelectronically. How-
ever, when reporting information on the statement to recipient, the payermay be instructed to leave a box blank. Follow the
guidelines provided in the paperinstructions forthe 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.55July 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.
81–90Payment Amount 4*10The amount reported in this field represents payments for
Amount Code 4 in the “A” Record.
91–100Payment Amount 5*10The 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 paperforms, the instructions in this rev-
enue procedure govern.
1 4 1Form 5498 I R AI n d i c a t o r1R e q u i red. Form 5498 only.Enter ‘ 1 ’if re p o rting a
(Individual Retirementrollover (Amount Code 2) or Fair Market Value (Amount
Arrangement)Code 4) for an IRAand not reporting a contribution in
Amount Code 1. Otherwise,enter a blank.
142Form 5498 SEP1R e q u i red. Form 5498 only. Enter ‘ 1 ’if re p o rting
Indicator (Simplifieda rollover (Amount Code 2) or Fair Market Value
Employee Pension)(Amount Code 4) for a SEPand not reporting a contribu-
tion in Amount Code 1. Otherwise,enter a blank.
143Form 5498 SIMPLE1R e q u i red. Form 5498 only. Enter ‘ 1 ’if re p o rting
Indicator (Savings a rollover (Amount Code 2) or Fair Market Value
Incentive Match Plan (Amount Code 4) for a SIMPLE and not reporting a con-
for Employeestribution in Amount Code 1. Otherwise, enter a blank.
of Small employers)
144–160 Blank 17 Enterblanks.
161 Foreign Country 1 If the address of the payee is in a foreign country, enter a
Indicator“1” (one) in this field; otherwise, enter blanks. When fil-
ers use this indicator, they may use a free format for the
payee city, state, and ZIPCode. Address information
must not appear in the First or Second Payee Name Line.
162-201 First Payee 40 Required. Enter the name of the payee (preferably sur-
Name Linename 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
1997–30 I.R.B.56July 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 individ-
u 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 recipi-
ent of the interest (the payer). The “B” Record will reflect the individual paying the interest (the borrower/payerof record)
and the amount paid. ForForm 1099–S, the “B” Record will reflect the seller/transferorinformation.
+Note 2: ForForm 5498 Inherited IRAs, enterthe beneficiary’s name followed by the word “beneficiary.” Forexample,
“Brian Young as beneficiary of Joan Smith” orsomething similarthat signifies that the IRAwas once owned by Joan Smith.
Filers may abbreviate the word “beneficiary” as, forexample, “benef.” Referto the 1997“Instructions forForms 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 NOTSPLITWORDS.
+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 40 If there are multiple payees, (e.g., partners, joint owners,
Name Line 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 enteraddress information.It is impor-
tant 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 forthis field.
+Note: End First Payee Name Line with a full word. DO NOTSPLITWORDS. Begin Second Payee Name Line with
the next sequential word.
242–281 Payee Mailing Address40 Required. Enter mailing address of payee. Street ad-
dress should include number, street, apartment or suite
number (or P.O. Box if mail is not delivered to street ad-
dress). Left justify information and fill unused positions
with blanks. This field must notcontain any data other
than the payee’s mailing address.
ForU.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 forthe payee city, state, and ZIPcode.
Forforeign 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 jus-
tify information and fill the unused positions with
blanks. Enter APO or FPO if applicable. Do not enter
state and ZIPcode information in this field.
311–312 Payee State 2 Required. Enter the valid U.S. Postal Service state ab-
breviations for states or the appropriate postal identifier
(AA, AE, or AP) described in Part A, Sec. 18.
1997–30 I.R.B.57July 28, 1997

313–321 Payee ZIPCode9 Required. Enter the valid nine digit ZIPCode assigned
by the U.S. Postal Service. If only the first five digits are
known, left justify information and fill the unused posi-
tions 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 posi-
tion 161 of the “B” Record.
Standard Payee “B” Record Format For All Types of Returns up to Position 321
12–34–567
8–1112131415–2324–43
4445–46474849–50
51–6061–7071–8081–9091–100
101–110111–120121–130131–140141
142 143144–160161162–201
202–241242–281282–310311–312313–321
1997–30 I.R.B.58July 28, 1997
Record
Type
Payment
Year
Document Specific/
Distribution Code
2nd TIN
Notice (Optional)
Corrected Return
Indicator
Name
Control
Direct Sales
Indicator
Blank
Type of
TIN
Taxpayer
Identification
Number
Payer’s Account
Number For Payee
Form 1099-R
IRA/SEP/SIMPLE
Indicator
Percentage of
Total Distribution
Total Distribution
Indicator
Taxable Amt Not
Determined Indicator
Blank
Payment
Amount 1
Payment
Amount 2
Payment
Amount 3
Payment
Amount 4
Payment
Amount 5
Payment
Amount 6
Payment
Amount 7
Payment
Amount 8
Payment
Amount 9
Form 5498
IRAIndicator
Form 5498
SEPIndicator
Form 5498
SIMPLE Indicator
Blank
Foreign
Country Indicator
First Payee
Name Line
Second Payee
Name Line
Payee Mailing
Address
Payee
City
Payee
State
Payee
ZIPCode

Record Name: Payee “B” Record — Continued
Field PositionField TitleLengthDescription 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 28Enterblanks.
350–416Special Data 67This portion of the “B” Record may be used to record in-
Entriesformation 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, enterblanks.
417–418 Combined Federal/2 If this payee record is to be forwarded to a state agency
State Codeas 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, e n t e rb l a n k s .
419–420 Blank 2 E n t e rb l a n k s, 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
322–349 350–416 417–418 419–420
(2) Payee “B” Record — Record Layout Positions 322–420 Form 1099–A
322–349 Blank 28 Enterblanks.
350–370 Special Data Entries21 This portion of the “B” Record may be used to record in-
formation 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, enterblanks.
3 7 1 – 3 7 6Date of Lender’s 6Form 1099–Ao n l y.Enter the acquisition date of the se-
Acquisition or Knowledge cured property or the date the lender first knew or had
of A b a n d o n m e n treason to know the property was abandoned, in the format
M M D D Y Y(i . e . ,0 5 2 29 7). Do not enterhyphens or
s l a s h e s.
1997–30 I.R.B.59July 28, 1997
Blank
Special Data
Entries
Combined Federal/State
Code
Blank or
CR/LF

377 Personal Liability1 Form 1099-Aonly. Enter the appropriate indicator from
Indicatorthe table below:
IndicatorUsage
1 Borrower was personally liable
for repayment of the debt.
Blank Borrower was not personally li-
able for repayment of the debt.
378–416Description of Property39 Form 1099–Ao n l y. 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-1996Buick 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 un-
used positions with blanks.
417–418 Blank 2 Enterblanks.
419–420Blank 2Enterblanks, or carriage return/line feed (cr/lf) charac-
ters.
Payee “B” Record — Record Layout Positions 322–420
Form 1099–A
322–349350–370371–376377378–416417–418419–420
(3) Payee “B” Record — Record Layout Positions 322–420 Form 1099–B
Field PositionField TitleLengthDescription and Remarks
322–349 Blank 28 Enterblanks.
350–359 Special Data Entries 10 This portion of the “B” Record may be used to record in-
formation 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, enterblanks.
360 Gross Proceeds 1 Form 1099–B only. Enter the appropriate indicator from
I n d i c a t o rthe following table, otherwise, enterblanks.
IndicatorUsage
1 Gross proceeds
2 Gross proceeds less commis-
sions and option premiums
361–366 Date of Sale 6 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
1997–30 I.R.B.60July 28, 1997
Blank
Special Data
Entries
Date of Lender’s
Acquisition or
Abandonment
Personal
Liability
Indicator
Description of
Property
Blank
Blank or
CR/LF

MMDDYY(e.g.,052197). Enter blanks if this is an ag-
gregate transaction. Do not enterhyphens orslashes.
367–379 CUSIPNumber 13 Form 1099–B only. For broker transactions only, enter
the CUSIP(Committee on Uniform Security Identifica-
tion Procedures) number of the item reported for Amount
Code 2 (stocks, bonds, etc.). Enter blanks if this is an ag-
gregate 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 re-
quired, left justify information and fill unused positions
with blanks. For broker transactions, enter a brief descrip-
tion 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 N o t e). 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 Enterblanks, or carriage return/line feed (cr/lf) charac-
ters.
Payee “B” Record — Record Layout Positions 322–420
Form 1099–B
322–349350–359360361–366367–379380–418
419–420
(4) Payee “B” Record — Record Layout Positions 322–420 Form 1099–C
Field PositionField TitleLengthDescription and Remarks
322–349 Blank 28 Enterblanks.
350–370 Special Data 21 This portion of the “B” Record may be used to record in-
Entries formation 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, enterblanks.
371–376Date Canceled 6Form 1099–C only. Enter the date the debt was can-
celed in the format of MMDDYY(i.e., 052297). Do not
enterhyphens orslashes.
377Bankruptcy Indicator1Form 1099–C only.Enter “1” (one) to indicate the debt
was discharged in bankruptcy, if known.
1997–30 I.R.B.61July 28, 1997
Blank
Special Data
Entries
Gross Proceeds
Indicator
Date of
Sale
CUSIP
Number
Description
Blank
or CR/LF

IndicatorUsage
1Debt w a sd i s c h a rged in bank-
ruptcy.
BlankDebt was not d i s c h a rged in
bankruptcy.
378–416Debt Description39Form 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.
417–418Blank2Enterblanks.
419–420Blank2Enterblanks,or carriage return/line feed (cr/lf).
Payee “B” Record — Record Layout Positions 322–420
Form 1099–C
322–349350–370371–376377378–416
417–418419–420
(5) Payee “B” Record—Record Layout Positions 322–420 Form 1099–LTC
Field PositionField TitleLengthDescription and Remarks
322Type of Payment1Form 1099–LTC only.Enter the appropriate indicator
Indicator from the following table, otherwise,enter blanks:
IndicatorUsage
1Per diem
2Reimbursed amount
323–331 Social Security Number9Required for Form 1099–LTC only.Enter the Social
of the InsuredSecurity Number of the individual for whom the benefits
are being paid.
332–371 Name of the Insured40 Required for Form 1099–LTC only.Enter the name of
the individual.
372–411Address of the Insured40Form 1099–LTC. Enter the address of the insured. Ab-
breviate or truncate the information if necessary.
412Status of Illness1Form 1099–LTC only.Enter the appropriate code from
Indicator (Optional)the table below to indicate the status of the illness of the
insured, otherwise, enter blank:
IndicatorUsage
1Chronically ill
2Terminally ill
1997–30 I.R.B.62July 28, 1997
Blank
Special
Data
Date
Canceled
Bankruptcy
Indicator
Debt Description
Blank
Blank
or CR/LF

4 1 3 – 4 1 8Date Certified (Optional)6Form 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 Blank2Enter blanks, or carriage return/line feed (cr/lf) charac-
ters.
Payee “B” Record—Record Layout Positions 322–420 Form 1099–LTC
322323–331332–371372–411412413–418
419–420
(6) Payee “B” Record — Record Layout Positions 322–420 Form 1099–OID
Field PositionTitle LengthDescription and Remarks
322–349 Blank 28Enterblanks.
350–377 Special Data Entries 28 This portion of the “B” Record may be used to record in-
formation 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, enterblanks.
378–416Description39R e q u i red Form 1099–OID only. Enter the CUSIP
number, if any. If there is no CUSIPnumber, 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 jus-
tify information and fill unused positions with blanks.
417–418 Combined Federal/2 If this payee record is to be forwarded to a state agency
State Codeas 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 notparticipating in this pro-
gram, enterblanks.
419–420 Blank 2 Enterblanksor carriage return/ line feed (cr/lf) charac-
ters.
Payee “B” Record — Record Layout Positions 322–420
Form 1099–OID
322–349350–377378–416417–418419–420
1997–30 I.R.B.63July 28, 1997
Type of
Payment
Indicator
SSN of
Insured
Name
of
Insured
Address
of
Insured
Status of
Illness
Indicator
Date
Certified
Blank
or CR/LF
Blank
Special
Data Entries
Description
Combined Federal/
State Code
Blank or
CR/LF

(7) Payee “B” Record — Record Layout Positions 322–420 Form 1099–R
Field PositionField Title Length Description and Remarks
322–349Blank28Enterblanks.
350–396 Special Data Entries47This portion of the “B” Record may be used to record in-
formation 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, enterblanks.
397–406State Income 10Form 1099–Ronly. State income tax withheld is for the
Tax Withheld 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 state tax withheld, this field may
be used as a continuation of the Special Data Entries
f i e l d .
4 0 7 – 4 1 6Local Income1 0Form 1099–R only.Local income tax withheld is for the
Tax Wi t h h e l dconvenience 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.
417–418Combined 2If this payee record is to be forwarded to a state agency
Federal/State Codeas 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 pro-
gram, enterblanks.
419–420Blank2Enterblanks, or carriage return/line feed (cr/lf) charac-
ters.
Payee “B” Record—Record Layout Positions 322–420
Form 1099–R
322–349350–396397–406407–416417–418
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 Enterblanks.
350–372 Special Data Entries23 This portion of the “B” Record may be used to record in-
formation for state or local government reporting or for
1997–30 I.R.B.64July 28, 1997
Blank
Special
Data Entries
State Income Tax
Withheld
Local Income Tax
Withheld
Combined Federal/
State Code
Blank
or CR/LF

the filer’s own purposes. Payers should contact the state
or local revenue departments for filing requirements. If
this field is not utilized, enterblanks.
373–378 Date of Closing6 Required. Form 1099–S only. Enter the closing date in
the format MMDDYY(e.g.,052297). Do not enterhy-
phens orslashes.
379–417 Address or Legal 39 Required. Form 1099–S only. Enter the address of the
Descriptionproperty transferred (including city, state, and ZIPcode).
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.
418Property or Services 1 R e q u i red. Form 1099–S only.Enter “1” (one) if the
Indicatortransferor 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) charac-
ters.
Payee “B” Record — Record Layout Positions 322–420
Form 1099–S
322–349350–372373–378379–417418419–420
+Note: When reporting Form 1099–S, the “B” Record will reflect the seller/transferorinformation.
(9) Payee “B” Record - Record Layout Positions 322–420 Form W–2G
Field Position Field Title Length Description and Remarks
322–352 Blank 31 Enterblanks.
353–358 Date Won 6 Required. Form W–2Gonly. Enter the date of the win-
ning 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).
359–373 Transaction 15 Required. Form W–2G only. For state-conducted lot-
teries, 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 win-
ning transaction. All others, enterblanks.
1997–30 I.R.B.65July 28, 1997
Blank
Special Data
Entries
Date of
Closing
Address or Legal
Description
Property or
Services Indicator
Blank or
CR/LF

374–378 Race 5 Form W–2G only.If applicable, enter the race (or game)
relating to the winning ticket. Otherwise, e n t e rb l a n k s.
379–383 Cashier 5 Form W–2G only.If applicable, enter the initials of the
cashier making the winning payment; otherwise, e n t e r
blanks.
384–388 Window 5 Form W–2G only.If applicable, enter the window num-
ber or location of the person paying the winnings; other-
wise, enterblanks.
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, enterblanks.
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, enterblanks.
419–420 Blank 2 Enterblanks, or carriage return/line feed (cr/lf) charac-
ters.
Payee “B” Record — Record Layout Positions 322–420
Form W–2G
322–352353–358359–373374–378379–383384–388389–403
404–418419–420
Sec. 9. End of Payer “C” Record — General Field Descriptions and Record Layout
. 0 1The End of Payer“C” Record is a fixed record length of 420 positions.The control total fields are each 15 positions in length.
.02The “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.
.03In 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.
.04Payers/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 Payees6 Required. Enter the total number of “B” Records cov-
ered by the preceding “A” Record. Right justify infor-
mation and fill unused positions with zeros.
1997–30 I.R.B.66July 28, 1997
BlankDate WonTransactionRaceCashierWindowFirst Id
Id
Blank or
CR/LF

8–10 Blank 3 Enterblanks.
11–25Control15R e q u i red. Accumulate totals of any payment amount
Total 1fields in the “B” Record into the appropriate control total
26–40Control15fields of the “C” Record. Control totals must be right-
Total 2justified and unused control total fields zero - f i l l e d .
41–55Control15All control total fields are 15 positions in length.
Total 3
56–70Control15
Total 4
71–85Control15
Total 5
86–100Control15
Total 6
101–115Control15
Total 7
116–130Control15
Total 8
131–145Control15
Total 9
146–420 Blank275Enterblanks.Filers may enter carriage return/line feed
(cr/lf) characters in positions 419–420.
End of Payer “C” Record — Record Layout
12–78–1011–2526–4041–55
56–7071–8586–100101–115116–130131–145146–420
Sec. 10. State Totals “K” Record — General Field Descriptions and Record Layout
.01The State Totals “K” Record is a fixed record length of 420 positions. The control total fields are each 15 positions in length.
.02The “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.
.03The “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.
.04In 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.
.05There mustbe a separate “K” Record for each statebeing reported.
.06Refer to Part A, Sec. 16 for the requirements and conditions that mustbe met to file via this program.
.07Control 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.67July 28, 1997
Control
Total 4
Control
Total 5
Control
Total 6
Control
Total 7
Control
Total 8
Control
Total 9
Blank or
CR/LF
Record
Type
Number of
Payees
Blank
Control
Total 1
Control
Total 2
Control
Total 3

(1) State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC, 1099–OID, 1099–PAT R ,
and 5498
Field Position Field Title Length Description and Remarks
1 Record Type 1 Required. Enter “K.”
2–7 Number of Payees 6Required. Enter the total number of “B” Records being
coded for this state. Right justify information and fill un-
used positions with zeros.
8–10 Blank 3 Enter blanks.
11–25Control15R e q u i re d. Accumulate totals of any payment amount
Total 1fields in the “B” Records for each state being reported
26–40Control15into the appropriate control total fields of the appropriate
Total 2“K” Record. C o n t rol totals must be right-justified,
41–55Control15and unused control total fields zero-filled. All control
Total 3total fields are 15 positions in length.
56–70Control15
Total 4
71–85Control15
Total 5
86–100Control15
Total 6
101–115Control15
Total 7
116–130Control15
Total 8
131–145Control15
Total 9
146–416 Blank 271 Reserved for IRS use. Enterblanks.
417–418 Combined Federal/2 Required. Enter the code assigned to the state which is
State Codeto receive the information. (Refer to Part A, Sec. 16,
Table l.)
419–420 Blank 2 Enterblanksor carriage return/line feed (cr/lf) charac-
ters.
State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC,
1099–OID, 1099–PATR, and 5498
12–78–1011–2526–4041–55
1997–30 I.R.B.68July 28, 1997
Record
Type
Number of
Payees
Blank
Control
Total 1
Control
Total 2
Control
Total 3

56–7071–8586–100101–115116–130131–145
146–416417–418419–420
(2) State Totals “K” Record — Record Layout Form 1099–R
Field PositionField TitleLengthDescription and Remarks
1Record Type1 Required.Enter “K.”
2–7Number of Payees6Required.Enter the total number of “B” Records being
coded for this state. Right justify information and fill un-
used positions with zeros.
8–10Blank3Enterblanks.
11–25Control15R e q u i re d .Accumulate totals of any payment amount
Total 1fields in the “B” Records for each state being reported
26–40 Control15into the appropriate control total fields of the appropriate
Total 2“K” Record. C o n t rol totals must be right-justified,
41–55Control15and unused control total fields zero-filled.All control
Total 3total fields are 15 positions in length.
56–70Control15
Total 4
71–85Control15
Total 5
86–100Control15
Total 6
101–115Control15
Total 7
116–130Control15
Total 8
131–145Control15
Total 9
146–386 Blank241Reserved for IRS use. Enterblanks.
387–401Control Total State 15Form 1099–R only.Aggregate totals of the state income
Income Tax Withheldtax withheld field in the Payee “B” Record; otherwise,
enterblanks.
402–416Control Total Local 15Form 1099–R only.Aggregate totals of the local income
Income Tax Withheldtax withheld field in the Payee “B” Record; otherwise,
enterblanks.
1997–30 I.R.B.69July 28, 1997
Blank
Combined Federal/
State Code
Blank or
CR/LF
Control
Total 4
Control
Total 5
Control
Total 6
Control
Total 7
Control
Total 8
Control
Total 9

417–418Combined Federal/State2Required.Enter the code assigned to the state which is
Codeto receive the information. (Refer to Part A, Sec. 16,
Table 1.)
419–420Blank2Enterblanksor carriage return/line feed (cr/lf) charac-
ters.
State Totals “K” Record — Record Layout — Form 1099–R
12–78–1011–2526–4041–55
56–7071–8586–100101–115116–130131–145
146–386387–401402–416417–418419–420
Sec. 11. End of Transmission “F” Record — General Field Descriptions and Record Layout
.01The end of transmission “F” record is a fixed record length of 420 positions.The “F” Record is a summary of the num-
ber of payers in the entire file.
.02This 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
1Record Type1Required. Enter “F.”
2–5 Number of4 Enter the total number of Payer “A” Records in the entire
“A” Recordsfile (right justify and zero fill) or enter all zeros.
6–30 Zero 25 Enter zeros.
31–420 Blank 390 Enterblanksor carriage return/line feed (cr/lf) charac-
ters in positions 419–420.
End of Transmission “F” Record — Record Layout
12–56–3031–420
1997–30 I.R.B.70July 28, 1997
Record
Type
Number of
Payees
Blank
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
Blank
Control Total State
Income Tax Withheld
Control Total Local
Income Tax Withheld
Combined Federal/
State Code
Blank or
CR/LF
Record
Type
Number of
“A” Records
Zeros
Blank or
CR/LF

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.
.01Bisynchronous electronic filing of Forms 1098, 1099, 5498, and W–2G, originals, corrections, and replacements of informa-
tion 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.
.02The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two pro-
grams 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 tax-
payers 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.
.03Filers participating in the electronic filing program for information returns will submit their returns to IRS/MCC electroni-
cally, and not through magnetic media or paper filing.
. 0 4If 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 possi-
b l e .
.05The 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
.01Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files elec-
tronically. (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.
.02Filers 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 in-
formation 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) Pass-
word 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 mustsign the acknowledgment and mail to:
)
Chief, Security and Disclosure Branch
IRS, Martinsburg Computing Center
P. O. Box 1208, MS-370
Martinsburg, WV25402
(d)The users or filers should retain a copy of the signed acknowledgment for their records. It is the filer’s responsibility to en-
sure 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 as-
signed.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, WV25402-1359
1997–30 I.R.B.71July 28, 1997

%
or by calling: 304-263-8700.
.03It is the user’s responsibility to remember the password and not allow the password to be compromised.
Sec. 3. Test Files
.01Filers 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 mustbe submitted to IRS/MCC no earlierthanNovember 1, 1997, and no later than
December 31, 1997.
.02If a filer encounters problems while transmitting electronic test files, contact IRS/MCC for assistance.
.03Apassword must be obtained before submitting an electronic test file.
.04Bisynchronous 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.
.05Atest 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
.01Electronically filed information may be submitted to IRS/MCC 7 days a week, 24 hours a day, except for routine mainte-
nance/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.
.02Lengthy 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.
.03The 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 records50 minutes(4800 bps, no compression, one record perblock)
54,000 records4 hours(9600 bps, compression, two records perblock)
Sec. 5. Transmittal Requirements
.01All 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.
.02Form 4804 can be ordered by calling the IRS toll free forms and publications order number 1-800-TAX-FORM (1-800- 829-
3676) 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.
.03The filer whose TCC is used in the “A” Record is responsible for submitting the transmittal Form 4804.
.04Forms 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, WV25402-1359
+Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses forM a rt i n s b u r g ,
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, WV25401
1997–30 I.R.B.72July 28, 1997

.05Asigned 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.
.01Transmissions using IBM 3780 bisynchronous protocols must be in EBCDIC character code. Modems must be compatible
with either Bell 208B for 4800 bps transmissions, AT&T2296Afor 9600 bps transmissions, or Hayes OPTIMA288 V.FC Smartmo-
dem 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.
.02IRS/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.For14400 bps, the circuitwill be 304-264-
7045. These circuits are equipped for bisynchronous transmission using the IBM 3780 protocol.
.03The 4800 bps line terminates at a Bell 208B modem. The Bell 208B modem uses phase-shift keying and eight-phase modu-
lation 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
.04The 9600 bps line terminates at an AT&TDataphone II 2296Amodem. The AT&T2296Amodem 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
.05The 14400 bps line terminates at a Hayes OPTIMA288 V.FC Smartmodem. The Hayes OPTIMASmartmodem is a half-du-
plex, 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
.01For 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 pur-
pose of these records is to provide the password and identity of the transmitter.The $$REQUEST, $$ADD, and the data file should
1997–30 I.R.B.73July 28, 1997

be transmitted as one file. In some cases, filers have attempted to send the $$REQUESTand $$ADD as separate files. Doing this
will result in a failed transmission.
.02With 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: $$REQUEST
Field PositionField TitleLengthDescription and Remarks
1–20 $$REQUESTIdentifier 20Enter the following characters: $$REQUESTID=MSG-
RecordFILE
21–420 Blank 400Enterblanks.
Electronic Filing Identifier $$REQUEST RECORD — Record Layout
1–2021–420
.03Upon making contact with IRS/MCC and furnishing a valid password in the $$ADD identifier record, a data transmission
session will commence. The transmission will continue until an End of Transmission (EOT) “F” Record is received. At the end of
each transmission, the following message should be received electronically by the filer: “DATARECEIVED ATMCC” and the line
will be disconnected. If this message is not received, there was a problem with the submission, and the filer should contact
IRS/MCC immediately.
.04Upon receiving a data file and transmittal Form 4804, IRS/MCC will release the data for further processing. If the media can-
not be processed, the filer will be notified by either letter or telephone that the data must be retransmitted. This file name, if neces-
sary, will be provided by IRS/MCC and is to be placed in positions 45–51 of the $$ADD record when the file is retransmitted.
Record Name: $$ADD
Field PositionField Title LengthDescription and Remarks
1–9 $$ADD Identifier Record9 Enter the following characters: $$ADD ID=
10–17Password 8Enter the password assigned by IRS/MCC. For informa-
tion concerning the password, see Part C, Sec. 2.
18 Blank 1 Entera blank.
19–26 BATCHID 8 Enter the following characters: BATCHID=
27 Quote 1 Enter a single quote (‘).
28–43 Transmitter Name16 Enter the transmitter’s name. This name should remain
consistent in all transmissions. If the transmitter’s name
exceeds 16 positions, truncate the name.
44 Type of File Indicator 1 Enter the Type of File Indicator from the list below:
O = Original filing
T= Test file
C = Correction file
R = Replacement file
E = Extension file
1997–30 I.R.B.74July 28, 1997
$$REQUEST
Identifier Record
Blank

45–51 Replacement File Name7 Use this field only if this isa 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 neces-
sary. 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 Enterblanks.
Electronic Filing Identifier $$ADD Record - Record Layout
1–910–171819–262728–43
4445–515253–420
Part D. Asynchronous (IRP–BBS) Electronic Filing Specifications
Sec. 1. General
.01Asynchronous electronic filing of Forms 1098, 1099, 5498, and W–2G, originals, corrections, and replacements of informa-
tion 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 re-
quirements 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.
.02The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two pro-
grams 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 tax-
payers 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.
.03Filers participating in the electronic filing program, for information returns will submit their returns to IRS/MCC via elec-
tronically 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.
.05The 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 musthave an End of Transmission (EOT) “F” Record.
Sec. 2. Electronic Filing Approval Procedure
.01Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files elec-
tronically. (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.
.02Once a TCC is obtained, filers using IRP-BBS assign their own passwords and do not need special approval.
.03With all passwords, it is the user’s responsibility to remember the password and not allow the password to be compromised.
1997–30 I.R.B.75July 28, 1997
$$ADD Identifier
Record
PasswordBlankBATCHIDQuote
Transmitter
Name
Type of
File Indicator
Replacement
File Name
QuoteBlanks

However, if filers do forget their password, call 304-263-8700for assistance.
+ Note: Passwords on the IRP–BBS are case sensitive.
Sec. 3. Test Files
.01Filers 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 mustbe submitted to IRS/MCC no earlierthanNovember 1, 1997, and no laterthan
December 31, 1997.
.02If a filer encounters problems while transmitting the electronic test files, contact IRS/MCC for assistance.
.03Filers 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.
.04Atest file is required from filers who want approval forthe Combined Federal/State Filing Program.See Part A, Sec.
16 for further details.
Sec. 4. Electronic Submissions
.01Electronically 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.
.02Filers 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 twohours 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.
.03Do 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.
.04Data compression is encouraged when submitting information returns by way of the IRP-BBS. MCC has the ability to de-
compress 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 XMODEM-
1K protocol. The actual transmission rates will vary depending on the protocol that is used. (ZMODEM is normally the fastest pro-
tocol and XMODEM and KERMITare the slower protocols.)
Transmission Speed in bps500 Records2500 Records10000 Records
9600 40 sec2 min 50 sec12 min 21 sec
1920031 sec1 min 34 sec7 min 1 sec
3840017 sec36 sec4 min 7 sec
.05Files 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’sTCC, submission type (T=Test, P= Production, C = Correction, and R = Replacement) and a se-
quence 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
.01The results of the electronic transmission will be posted to the (F)ile Status area of the IRP-BBS; however, no further pro-
cessing will occur until the signed Form 4804 is received. The transmitter must send the signed Form 4804 the same day the elec-
tronic transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.02Form 4804 can be ordered by calling the IRS toll-free forms and publication order number 1-800-TAX-FORM,(1-800-829-
3676),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.
1997–30 I.R.B.76July 28, 1997

.03The filer whose TCC is used in the “A” Record is responsible for submitting the transmittal Form 4804.
.04Forms 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, WV25402-1359
+Note: The ZIPCode has changed from 25401–1359 to 25402–1359 forthe IRS P.O. Box addresses forMartinsburg,
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, WV25401
.05Asigned 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
.01The 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.
.02The IRP-BBS is available for public use and accessible using various personal computer communications equipment; how-
ever, 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.
.03Filers 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.
.04Contact 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.
.05Due 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.
.06IRP-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.
.07IRP-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-Tstandard or MNP2-4. Data compression is supported
using V.42bis ITU-Tstandard or MNP5.
Sec. 7. IRP–BBS First Logon Procedures
.01The 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:
1997–30 I.R.B.77July 28, 1997

<A>IBM PC<B>IBM w/ANSI<C>Atari
<D>ADM-3<E>H19/Z19/H89<F>Televid 925
<G>TRS-80<H>Vidtex<I>VT-52
<J>VT-100<CR>if none of the above
Most PCs, clones, etc., will select the IBM PC emulation. Machines with color, CGA, EGA, or V G Ashould select IBM
w/ANSI.
(B) Upper/lower case, line feed needed, O (zero) nulls after each <CR>, do you wish to modify this? (Most users answer no.)
Common User Problems
ProblemProbable CauseSolution
File does not upload/downloadNot starting communication whenStart upload/download on filers end
prompted by ‘Awaiting Start Signal’
All files not processedCompressing several files into one Compress only one file for every filename
filename
Replacement neededOriginal data does not meetReplacement must be submitted within 45
processing and/or format requirementsdays of original transmission
Cannot determine file statusNot dialing back thru IRP-BBS toWithin 24 to 48 hours after sending a file,
check the status of the file check under (F)ile Status for notification
of acceptability
Transfer aborts before it startsTransfer protocol mismatchEnsure protocols match on both the
sending and receiving ends
IRS Encountered Problems
ProblemProbable Cause Solution
Loss of carrier during session Incorrect modem settings on user’s endReference your modem manual about
increasing the value of the S10 register
Unreadable screens after selectingANSI.SYS driver not loaded in theSelect non ANSI under (Y) our settings
“IBM w/ANSI”user’s PC
IRS cannot complete finalUser did not mail the Form 4804Mail completed Form 4804 the same day
processing of dataas the electronic transmission
IRS cannot determine which file is User did not indicate which file Must enter the file name that is being
being replaced is being replaced replaced under the replacement option
IRS cannot determine the typeUser incorrectly indicated T, P, C,When prompted, enter the correct
of file being sentor R for the type of filetype of file for data being sent
Replacement file not returned withinUser did not dial back thru IRP–BBSWithin two workdays check under (F)ile
45 daysto check the status of fileStatus for notification of acceptability
Duplicate dataTransmitter sends corrections forOnly submit corrections for incorrect
entire filerecords
1997–30 I.R.B.78July 28, 1997

Part E. Magnetic/Electronic Specifications For Extensions of Time
Sec. 1. General
.01The specifications in Part E include the required 200-byte record format for extensions of time to file requests submitted mag-
netically or electronically.Also included are the instructions for the information that is to be entered in the record. Filers are ad-
vised to read this section in its entirety to ensure properfiling.
.02Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electroni-
cally. 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.
.03For Tax Year 1997(returns due to be filed in 1998), transmitters requesting an extension of time to file for more than 50 pay-
ers (not payees) are requiredto file the extension request magnetically orelectronically.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.
.04For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809, Request for Ex-
tension of Time To File Information Returns, in the same package as the corresponding media. For extension requests filed elec-
tronically, the transmitter must FAX the Form 8809 the same day the transmission is made.
.05Transmitters submitting an extension of time magnetically orelectronically should not submit a list of payernames
and TINS with the Form 8809. However, Box 6 of the Form 8809 must be completed with the total numberof records in-
cluded on the magnetic media orelectronic file.
.06To 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.
.07The extension record format is also on the IRP-BBS and can be downloaded. See Part D formore information on how to
contact the IRP–BBS.
.08Amagnetically-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, WV25430
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, WV25401
+ 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) re q u e s t s .
.09Requests 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 fil-
ing” rule. Asimilar rule applies to designated private delivery services (PDSs). See section 10 of Part Afor 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.
.10Transmitters 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.
.11Do not submit tax year 1997 extensions of time to file requests on magnetic media or electronically before January 1, 1998.
. 1 2Filers may request an extension of time as soon as they are awarethat 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 re-
quest for an extension of time could be denied. In such cases, the transmitter receives a denial letter. When this denial letter is re-
ceived, the transmitter has 20 days to provide the additional or necessary information and resubmit the extension request to IRS/MCC.
.13Each piece of magnetic media musthave an external media label containing the following information:
(a)Transmitter name
(b)Transmitter Control Code (TCC)
1997–30 I.R.B.79July 28, 1997

(c)Tax year
(d)The words “Extension of Time”
(e)Record count
.14Arequest for an extension of time to file is not automatically granted. Approval or denial is dependent on information pro-
vided on the Form 8809.
.15If 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.
.16If an additional extension of time is needed, a second Form 8809 and file may be submitted before the end of the initial ex-
tension period. Line 7 on the form should be checked to indicate that the original extension has been received and the additional ex-
tension is being requested.
.17See part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are addi-
tional 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
.01Tape specifications are as follows:
(a)9 track.
(b)EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Inter-
change) 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.
.02Tape 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 36-
track.
(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:
TracksDensityCapacity
120 (43245 BPI)2.3 Gb (10Gb)
121 (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 Infor-
mation Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must ap-
pear on the external media label affixed to the cartridge.
(g)Afile 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)Ablock must not exceed 32,600 tape positions.
1997–30 I.R.B.80July 28, 1997

(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 block-
ing 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 OBJECTCOMMAND 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 sug-
gested 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 tape-
mark, 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 (DATdata 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:
S i z eTr a c k sD e n s i t yC a p a c i t y
Q I C - 114 / 54 (8000 BPI)22Mb or 30Mb
Q I C - 2 48 / 95 (8000 BPI)45Mb or 60Mb
Q I C - 1 2 01 51 5(10000 BPI)120Mb or 200Mb
Q I C - 1 5 01 816 (10000 BPI)150Mb or 250Mb
Q I C - 3 2 02 617 (16000 BPI)3 2 0 M b
Q I C - 5 2 52 617 (16000 BPI)5 2 5 M b
Q I C - 1 0 0 03 021 (36000 BPI)1 G b
Q I C - 1 3 5 03 018 (51667 BPI)1 . 3 G b
Q I C - 2 G b4 234 (40640 BPI)2 G b
( c )The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
. 0 4Diskette specifications are as follows:
( a )5 1/4- or 3 1/2-inches in diameter.
( b )ASCII recording mode o n l y. 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 IRSEOTwill 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 ap-
p l i c a b l e .
. 0 5Bisynchronous electronic specifications include:
( a )Transmitter must have Transmitter Control Code (TCC) and a valid IRS/MCC-assigned password prior to submitting
data files.
1997–30 I.R.B.81July 28, 1997

(b)Access phone numbers:
4800 bps304-264-7080
9600 bps304-264-7040
14400 bps304-265-7045
+Note: See Part C, Bisynchronous (Mainframe) Electronic Filing Specifications, fordetailed information on filing with
IRS/MCC via bisynchronous protocols.
.06IRP-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
.01Positions 6 through 174 of the following record should contain information about the payerfor 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 PositionField Title LengthDescription and Remarks
1–5 Transmitter Control 5 Required. Enter the five digit Transmitter Control Code
Code (TCC)issued by IRS. Only one TCC perfile is acceptable.
6–14 Payer 9R e q u i re d. Must be the valid nine-digit EIN/SSN as-
TINsigned to the payer.Do notenterblanks, 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,
mustbe set to “X.”
15–54Payer 40R e q u i re d. Enter the name of the payer whose T I N
Name appears in positions 6–14. Left justify information.
55–94Second Payer 40If additional space is needed, this field may be used to
Namecontinue name line information (e.g., c/o First National
Bank); otherwise,enterblanks.
95–134Payer 40R e q u i re d. Enter the payer’s address. Street address
Addressshould include number, street, apartment or suite number
(or P.O. Box if mail is not delivered to a street address).
135–163Payer City29Required. Enter payer city, town, or post office.
164–165Payer State2R e q u i re d. Enter payer valid U.S. Postal Service state
abbreviation (refer to Part A, Sec. 18).
166–174Payer ZIP9Required. Enter payer ZIPcode. If using a five-digit ZIP
Codecode, left justify information and fill unused positions
with blanks.
1997–30 I.R.B.82July 28, 1997

175Document Indicator1Required. Enter the document you are requesting an ex-
(See Note)tension of time for using the following code:
CodeDocument
1W–2
21098, 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
35498, 5498–MSA
41042–S
5REMIC Documents
(1099–INTor 1099–OID)
+Note: Do not enterany othervalues in this field. Submit a separate record foreach document. Forexample, if you are
requesting an extension for1099–INTand 5498 forthe same payer, submit one record with “2” coded in this field and an-
otherrecord with “3” coded in this field. If you are requesting an extension for1099–DIVand 1099–MISC forthe same
payer, submit one record with “2” coded in this field.
176Foreign Entity1 Enter character “X” if the payer is a foreign entity.
Indicator
177–198Blank22Enterblanks.
199–200Blank2Enterblanks.Diskette filers may code the ASCII car-
riage return/line feed (cr/lf) characters.
Extension of Time Record Layout
1–56–1415–5455–9495–134135–163
164–165166–174175176177–198
199–200
Part F. Miscellaneous Information
Section 1. Addresses for Martinsburg Computing Center
To submit an application to file, waiverrequest (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, WV25402-1359
1997–30 I.R.B.83July 28, 1997
Transmitter Control
Code
Payer
TIN
Payer
Name
Second Payer
Name
Payer
Address
Payer
City
Payer
State
Payer
Zip Code
Document
Indicator
Foreign Entity
Indicator
Blank
Blank or
CR/LF

Shipping private delivery service:
IRS—Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road, MS-360
Martinsburg, WV25401
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, WV25430
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, WV25401
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 forthe 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 Modems304-264-7045
HOURS OFOPERATION—
24 HOURS ADAY
7 DAYS AWEEK
This is the end of Publication 1220 for Tax Year 1997.
1997–30 I.R.B.84July 28, 1997

1997–30 I.R.B.85July 28, 1997
I R B
Box of
I R B
Box of
I R B
Box of
Internal Revenue Service
Martinsburg Computing Center
Information Reporting Program
PO Box 1359
MartinsburgWV25402
I R B
Box of
I R B
Box of
I R B
Box of
Internal Revenue Service
Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road
MartinsburgWV25401
(Reproduce as needed)
To expedite handling, please affix this label, or a substitute
label, to your OUTSIDE shipping container.
(use this label for U S Postal deliveries)(use this label for truck or air freight deliveries)

New Revision of Publication
939, General Rule for Pensions
and Annuities
Announcement 97–73
Anew June 1997 revision of Publica-
tion 939 will soon be available from the
Internal Revenue Service. It replaces the
prior January 1990 revision (as reprinted
in March 1997).
This publication is primarily for tax-
payers who receive pension and annuity
payments from nonqualified plans. It con-
tains actuarial tables that taxpayers must
use to apply the General Rule.
Previously, the information in this pub-
lication could be used by taxpayers with
qualified plans who chose to use the Gen-
eral Rule to determine the tax treatment of
pension and annuity income. New law
now provides that, in general, taxpayers
whose annuity starting date begins after
November 18, 1996, may no longer use
the General Rule. Instead, they must use
the Simplified Method.
As a result, many taxpayers will no
longer need the information in this publi-
cation. The Simplified Method is ex-
plained in Publication 575.
You can get a copy of this publication
by calling 1-800-TAX-FORM (1-800-
829-3676). You can also write to the IRS
Forms Distribution Center nearest you.
Check your income tax package for the
address. The publication will also be
available on the IRS Internet Web Site at
www.irs.ustreas.gov.
1997–30 I.R.B.86July 28, 1997
P a rt IV. Items of General Intere s t

Under 31 Code of Federal Regulations,
section 10.76, the Director of Practice is
authorized to immediately suspend from
practice before the Internal Revenue Ser-
vice any practitioner who, within five
years, from the date the expedited pro-
ceeding is instituted, (1) has had a license
to practice as an attorney, certified public
accountant, or actuary suspended or re-
voked for cause; or (2) has been convicted
of any crime under title 26 of the United
States Code or, of a felony under title 18
of the United States Code involving dis-
honesty or breach of trust.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or suspended from practice
before the Internal Revenue Service.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled ac-
tuaries to identify practitioners under expe-
dited suspensions from practice before the
Internal Revenue Service, the Director of
Practice will announce in the Internal Rev-
enue Bulletin the names and addresses of
practitioners who have been suspended
from such practice, their designation as at-
t o r n e y, certified public accountant, en-
rolled agent, or enrolled actuary, and date
or period of suspension. This announce-
ment will appear in the weekly Bulletin at
the earliest practicable date after such ac-
tion and will continue to appear in the
weekly Bulletins for five successive weeks
or for as many weeks as is practicable for
each attorney, certified public accountant,
enrolled agent, or enrolled actuary so sus-
pended and will be consolidated and pub-
lished in the Cumulative Bulletin.
The following individuals have been
placed under suspension from practice be-
fore the Internal Revenue Service by virtue
of the expedited proceeding provisions of
the applicable regulations:
1997–30 I.R.B.87July 28, 1997
Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
B e f o re the Internal Revenue Serv i c e
NameAddressDesignationDate of Suspension
Newman, Harry J.Covington, VACPAIndefinite from May 16, 1997
Sehnert, FredDallas, TXCPAIndefinite from May 16, 1997
Gaskins, John D.Valdosta, GACPAIndefinite from May 16, 1997
Turner, Charles L.Goshen, KYAttorneyIndefinite from May 16, 1997
Thornton Jr., Kenneth W.Murrells Inlet, SCAttorneyIndefinite from May 16, 1997
Kellogg, RichardWhite Hall, ARCPAIndefinite from May 16, 1997
Stec, Albert J.Schereville, INCPAIndefinite from May 16, 1997
Huff Jr., James G.Raleigh, NCCPAIndefinite from May 16, 1997
Seall, WilliamDayton, OHAttorneyIndefinite from May 16, 1997
Brunner, L. KeithCenterville, OHAttorneyIndefinite from May 16, 1997
Bart, David R.Oakwood, OHAttorneyIndefinite from May 16, 1997
Shafer, David A.Franklin, OHCPAIndefinite from May 16, 1997
Schouman, JamesMilford, MIAttorneyIndefinite from May 16, 1997
Jones, Milo A.Greensboro, NCCPAIndefinite from May 16, 1997
Dolan, Gary L.Lincoln, NEAttorneyIndefinite from May 16, 1997
Coorey, Edward T.Hampton, NHEnrolled AgentIndefinite from May 16, 1997
Sheehan, Thomas J.Maggie Valley, NCCPAIndefinite from May 16, 1997
Millonig, Arthur F.Dayton, OHAttorneyIndefinite from May 16, 1997
McHaffie, Richard T.St. Paul, MNAttorneyIndefinite from June 4, 1997
Rigler, MichaelGainesville, TXCPAIndefinite from June 4, 1997
Hopkins, Diane E.St. Paul, MNAttorneyIndefinite from June 4, 1997
Adae, F. BrianBarrington, RIAttorneyIndefinite from June 4, 1997

Under 31 Code of Federal Regulations,
Part 10, an attorney, certified public ac-
countant, enrolled agent or enrolled actu-
a r y, in order to avoid the institution or
conclusion of a proceeding for his disbar-
ment or suspension from practice before
the Internal Revenue Service, may off e r
his consent to suspension from such prac-
tice. The Director of Practice, in his dis-
cretion, may suspend an attorney, certi-
fied public accountant, enrolled agent, or
enrolled actuary in accordance with the
consent off e r e d .
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Ser-
vice matter from directly or indirectly em-
ploying, accepting assistance from, being
employed by or sharing fees with, any
practitioner disbarred or suspended from
practice before the Internal Revenue Ser-
vice.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled
actuaries to identify practitioners under
consent suspension from practice before the
Internal Revenue Service, the Director
of Practice will announce in the Internal
Revenue Bulletin the names and ad-
dresses of practitioners who have been
suspended from such practice, their desig-
nation as attorney, certified public ac-
countant, enrolled agent, or enrolled actu-
ary, and date or period of suspension. This
announcement will appear in the weekly
Bulletin at the earliest practicable date
after such action and will continue to ap-
pear in the weekly Bulletins for five suc-
cessive weeks or for as many weeks as is
practicable for each attorney, certified
public accountant, enrolled agent, or en-
rolled actuary so suspended and will be
consolidated and published in the Cumu-
lative Bulletin.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue Ser-
v i c e :
1997–30 I.R.B.88July 28, 1997
NameAddressDesignationDate of Suspension
Padgett, JohnOrleans, MAAttorneyMay 22, 1997 to October 21, 1998
Crisp, Jerry W.Dallas, TXCPAJune 1, 1997 to May 31, 2000
Kessel, Donald K.Export, PACPAJune 1, 1997 to November 30, 1998
Klimchak, JosephAliquippa, PACPAJune 1, 1997 to February 28, 1998
Steele, Lewis M.Pittsburgh, PACPAJune 1, 1997 to May 31, 1998
Castleberry, Gene A.Oklahoma City, OKAttorneyJune 4, 1997 to August 3, 1997
O’Connor, Paul J.Hanover, MACPAJune 6, 1997 to June 5, 2000
Olshan, Robert M. Washington, DCCPAJune 10, 1997 to December 9, 1998
Johnson, Kirk L.Ann Arbor, MICPAJuly 1, 1997 to June 30, 1999
Mattutat, StephenElicott City, MDCPAJuly 1, 1997 to March 31, 1998
Trenary, Lloyd R.Oklahoma City, OKCPAAugust 1, 1997 to March 31, 1998
Ritchey Jr., FerrisBirmingham, ALAttorneyAugust 1, 1997 to July 31, 2000
Gold, Howard G.Hamden, CTCPAAugust 1, 1997 to July 31, 1999
Womack, KathleenHammond, LACPAAugust 1, 1997 to July 31, 1999
Announcement of the Consent Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
B e f o re the Internal Revenue Serv i c e

Revenue rulings and revenue pro c e d u re s
( h e reinafter re f e rred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
e f f e c t :
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. T h u s ,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with m o d i f i e d, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
D i s t i n g u i s h e ddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to Abut not
to B, and the new ruling holds that it ap-
plies to both Aand B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified a n d
c l a r i f i e d, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. Ar u l i n g
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, m o d i f i e d
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
s e d e d .
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
1997–30 I.R.B.89July 28, 1997
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

Numerical Finding List
1
Bulletins 1997–27 through 1997–29
Announcements:
97–61, 1997–29 I.R.B. 13
97–67, 1997–27 I.R.B. 37
97–68, 1997–28 I.R.B. 13
97–69, 1997–28 I.R.B. 13
97–70, 1997–29 I.R.B. 14
97–71, 1997–29 I.R.B. 15
97–72, 1997–29 I.R.B. 15
Delegation Orders:
172 (Rev. 5), 1997–28 I.R.B. 6
Notices:
97–37, 1997–27 I.R.B. 4
97–38, 1997–27 I.R.B. 8
97–39, 1997–27 I.R.B. 8
97–40, 1997–28 I.R.B. 6
97–41, 1997–28 I.R.B. 6
97–42, 1997–29 I.R.B. 12
Railroad Retirement Quarterly Rate:
1997–28 I.R.B. 5
Proposed Regulations:
REG–104893–97, 1997–29 I.R.B. 13
Revenue Procedures:
97–27, 1997–27 I.R.B. 9
Revenue Rulings:
97–27, 1997–27 I.R.B. 4
97–28, 1997–28 I.R.B. 4
97–29, 1997–28 I.R.B. 4
Treasury Decisions:
8722, 1997–29 I.R.B. 4
1997–30 I.R.B.90July 28, 1997
1
Acumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1997–1 through 1997–26
will be found in Internal Revenue Bulletin 1997–27,
dated July 7, 1997.

Finding List of Current Action on
Previously Published Items
1
Bulletins 1997–27 through 1997–29
*Denotes entry since last publication
Revenue Procedures:
96–42
Superseded by
97–27, 1997–27 I.R.B. 9
1997–30 I.R.B.91July 28, 1997
1
Acumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1997–1 through 1997–26 will be found in Internal
Revenue Bulletin 1997–27, dated July 7, 1997.

Notes
1997–30 I.R.B.92July 28, 1997

Notes
1997–30 I.R.B.93July 28, 1997

Notes
1997–30 I.R.B.94July 28, 1997

1997–30 I.R.B95.July 28, 1997

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW,Washington, DC
20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
IRS
Permit No. G–48

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW,Washington, DC
20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
GPO
Permit No. G–26