Internal Revenue Bulletin 1998-21 (PDF rendition): IRS Announcements

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.

INCOME TAX
Rev. Rul. 98–26, page 4.
LIFO; price indexes; department stores. The March
1998 Bureau of Labor Statistics price indexes are accepted
for use by department stores employing the retail inventory
and last-in, first-out inventory methods for valuing inventories
for tax years ended on, or with reference to, March 31,
1998.
EXEMPT ORGANIZATIONS
Announcement 98–42, page 93.
Publication 3079, Gaming Publication for Tax-Exempt Organi-
zations, is now available.
Announcement 98–43, page 93.
A list is given of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Rev. Proc. 98–35, page 6.
Magnetic media; electronic filing; 1998 form specifi-
cations. Specifications are set forth for the magnetic or
electronic filing of 1998 Forms 1098, 1099, 5498, and
W–2G. The forms may be filed with the Internal Revenue Ser-
vice using
1
⁄
2
inch magnetic tape; IBM 3480/3490 or AS400
compatible tape cartridges; 8mm tape cartridges; 4mm car-
tridges;
1
⁄
4
-inch cartridges; or 5
1
⁄
4
-, 3
1
⁄
2
-inch diskettes. Rev.
Proc. 97–34 superseded.
Internal Revenue
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Bulletin No. 1998–21
May 26, 1998
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 Treasury
Internal Revenue Service
Finding Lists begin on page 99.
Announcement of the Consent Voluntary Suspension of Attorneys, Certified Public Accounts, Enrolled Agents, etc., begins on
page 96.

Mission of the Service
The purpose of the Internal Revenue Service is to collect
the proper amount of tax revenue at the least cost; serve
the public by continually improving the quality of our prod-
ucts and services; and perform in a manner warranting
the highest degree of public confidence in our integrity, effi-
ciency, and fairness.
2
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to adminis-
ter the Internal Revenue Code. Tax policy for raising revenue
is determined by Congress.
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
care be exercised not to raise an issue or to ask a court to
adopt a position inconsistent with an established Service
position.
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
try to overreach, and should be reasonable within the
bounds of law and sound administration. It should, howev-
er, be vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax devices and
fraud.

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
from 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 procedures 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 offices,
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 Treasury Department Regulations,
but they may be used as precedents. Unpublished rulings
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 proce-
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.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references 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 semiannual basis
and are published in the first Bulletin of the succeeding semi-
annual period, respectively.
3
Introduction
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

May 26, 199841998–21 I.R.B.
Section 472.—Last-in, First-out
Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price indexes; deparment
stores. The March 1998 Bureau of Labor
Statistics price indexes are accepted for
use by department stores employing the
retail inventory and last-in, first-out in-
ventory methods for valuing inventories
for tax years ended on, or with reference
to, March 31, 1998.
Rev. Rul. 98–26
The following Department Store Inven-
tory Price Indexes for March 1998 were
issued by the Bureau of Labor Statistics.
The indexes are accepted by the Internal
Revenue Service, under § 1.472–1(k) of
the Income Tax Regulations and Rev.
Proc. 86–46, 1986–2 C.B. 739, for appro-
priate application to inventories of depart-
ment stores employing the retail inven-
tory and last-in, first-out inventory
methods for tax years ended on, or with
reference to, March 31, 1998.
The Department Store Inventory Price
Indexes are prepared on a national basis
and include (a) 23 major groups of depart-
ments, (b) three special combinations of
the major groups - soft goods, durable
goods, and miscellaneous goods, and (c) a
store total, which covers all departments,
including some not listed separately, ex-
cept for the following: candy, food,
liquor, tobacco, and contract departments.
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Percent Change
GroupsMar.Mar.from Mar. 1997
19971998to Mar. 1998
1
1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .539.0538.90.0
2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .644.2636.1–1.3
3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .646.1658.72.0
4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .900.9898.3–0.3
5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .630.6620.5–1.6
6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .544.0576.35.9
7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .296.7308.13.8
8. Women’s and Girls’ Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .557.3556.8–0.1
9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . .430.0429.5–0.1
10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .617.9636.53.0
11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .587.7608.13.5
12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .479.9501.44.5
13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1025.2993.0–3.1
14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .801.5796.7–0.6
15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .910.8932.42.4
16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .667.5673.00.8
17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .583.5583.1–0.1
18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .813.2818.30.6
19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244.9237.4–3.1
20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78.573.4–6.5
21. Recreation and Education
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111.8106.7–4.6
22. Home Improvements
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131.9134.52.0
23. Auto Accessories
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107.7107.5–0.2
Groups 1 – 15: Soft Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .606.4612.21.0
Groups 16 – 20: Durable Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .469.2463.0–1.3
Groups 21 – 23: Misc. Goods
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .113.6110.4–2.8
Store Total
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .558.8558.90.0
1
Absence of a minus sign before percentage change in this column signifies price increase.
2
Indexes on a January 1986=100 base.
3
The store total index covers all departments, including some not listed separately, except for the following: candy, foods, liquor, to-
bacco, and contract departments.

1998–21 I.R.B.5May 26, 1998
DRAFTING INFORMATION
The principal author of this revenue
ruling is Stan Michaels of the Office of
Assistant Chief Counsel (Income Tax and
Accounting). For further information re-
garding this revenue ruling, contact Mr.
Michaels on (202) 622-4970 (not a toll-
free call).

NOTE:
Following is a list of related instructions and forms for filing Information Returns Magnetically/Electronically:
c1998 Instructions for Forms 1099, 1098, 5498, and W–2G
cForm 4419—Application for Filing Information Returns Magnetically/Electronically
cForm 4804—Transmittal of Information Returns Reported Magnetically/Electronically
cForm 4802—Transmittal of Information Returns Reported Magnetically/Electronically (Continuation)
cForm 8508—Request for Waiver From Filing Information Returns on Magnetic Media (Forms W–2, W–2G,
1042–S, 1099, 1098, 5498, and 8027)
cForm 8809, 8027,—Request for Extension of Time To File Information Returns (For Forms W–2, W–2G, 1042–S
1098, 1099, and 5498)
cNotice 210—Preparation Instructions for Media Label
The Internal Revenue Service, Martinsburg Computing Center encourages filers to make copies of blank forms for future use.
Rev. Proc. 98–35
Use this revenue procedure to prepare Tax Year 1998 information returns for submission to Internal Revenue Service (IRS) using
any of the following:
– Magnetic Tape
– Tape Cartridge
– 8mm, 4mm, and Quarter Inch Cartridges
– 5
1
⁄
4
-inch Diskette
– 3
1
⁄
2
-inch Diskette
– Electronic Filing
– (Bisynchronous)
– (Asynchronous)
Caution to filers:
Format changes to accommodate Year 2000 are included in this publication for TY 1998, calendar
year 1999, as well as a significant change in record size from 420 positions to 750 positions.
To be in compliance with Year 2000 changes, the current bisynchronous electronic filing communi-
cations package will be changed next year.
Please read this publication carefully. Persons or businesses required to file information returns
magnetically or electronically may be subject to penalties for failure to file or include correct informa-
tion if they do not follow the instructions in this revenue procedure.
May 26, 199861998–21 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous

Table of Contents
Part A. General
Section 1.Purpose
Section 2.Nature of Changes—Current Year (Tax Year 1998)
Section 3.Where to File and How to Contact the IRS, Martinsburg Computing Center
Section 4.Filing Requirements
Section 5.Form 8508, Request for Waiver from Filing Information Returns on Magnetic Media
Section 6.Vendor List
Section 7.Form 4419, Application for Filing Information Returns Magnetically/Electronically
Section 8.Test Files
Section 9.Filing of Information Returns Magnetically/ Electronically and Retention Requirements
Section 10.Due Dates
Section 11.Extensions of Time
Section 12.Processing of Information Returns Magnetically/Electronically
Section 13.Corrected Returns
Section 14.Taxpayer Identification Number (TIN)
Section 15.Effect on Paper Returns and Statements to Recipients
Section 16.Combined Federal/State Filing Program
Section 17.Definition of Terms
Section 18.State Abbreviations
Section 19.Major Problems Encountered
Part B. Magnetic Media Specifications
Section 1.General
Section 2.Tape Specifications
Section 3.Tape Cartridge Specifications
Section 4.8mm, 4mm, and Quarter Inch Cartridge Specifications
Section 5.5
1
⁄
4
-inch and 3
1
⁄
2
-inch Diskette Specifications
Section 6.Transmitter “T” Record—General Field Descriptions
Section 7.Transmitter “T” Record—Record Layout
Section 8.Payer “A” Record—General Field Descriptions
Section 9.Payer “A” Record—Record Layout
Section 10.Payee “B” Record—General Field Descriptions and Record Layouts
(l)Payee “B” Record—Record Layout Positions 544–750 for Forms 1098, 1098–E, and 5498–MSA
(2)Payee “B” Record—Record Layout Positions 544–750 for Form 1098–T
(3)Payee “B” Record—Record Layout Positions 544–750 for Form 1099–A
(4) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–B
(5)Payee “B” Record—Record Layout Positions 544–750 for Form 1099–C
(6)Payee “B” Record—Record Layout Positions 544–750 for Form 1099–DIV
(7)Payee “B” Record—Record Layout Positions 544–750 for Form 1099–G
(8)Payee “B” Record—Record Layout Positions 544–750 for Form 1099–INT
(9)Payee “B” Record—Record Layout Positions 544–750 for Form 1099–LTC
(10) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–MISC
(11) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–MSA
(12) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–OID
(13) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–PATR
(14) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–R
(15) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–S
(16) Payee “B” Record—Record Layout Positions 544–750 for Form 5498
(17) Payee “B” Record—Record Layout Positions 544–750 for Form W–2G
Section 11.End of Payer “C” Record—General Field Descriptions and Record Layout
Section 12.State Totals “K” Record—General Field Descriptions and Record Layout
Section 13.End of Transmission “F” Record—General Field Descriptions and Record Layout
Part C. Bisynchronous (Mainframe) Electronic Filing Specifications
Section 1.General
1998–21 I.R.B.7May 26, 1998

Section 2.Electronic Filing Approval Procedure
Section 3.Test Files
Section 4.Electronic Submissions
Section 5.Transmittal Requirements
Section 6.IBM 3780 Bisynchronous Communication Specifications
Section 7.Bisynchronous Electronic Filing Record Specifications
Part D. Asynchronous (IRP–BBS) Electronic Filing Specifications
Section 1.General
Section 2.Electronic Filing Approval Procedure
Section 3.Test Files
Section 4. Electronic Submissions
Section 5.Transmittal Requirements
Section 6. Information Reporting Program-Bulletin Board System (IRP–BBS) Specifications
Section 7.IRP–BBS First Logon Procedures
Part E. Magnetic/Electronic Specification for Extensions of Time
Section 1.General
Section 2.Magnetic Tape, IBM 3480/3490, Tape Cartridge, 8mm, 4mm, and QIC (quarter in cartridge), 5
1
⁄
4
- and 3
1
⁄
2
-inch
Diskette, and Electronic Specifications
Section 3. Record Layout
Part F. Miscellaneous Information
Section 1.Addresses for Martinsburg Computing Center
Section 2.Telephone Numbers for Contacting IRS/MCC
May 26, 199881998–21 I.R.B.

Part A. General
Revenue procedures are generally revised annually to reflect legislative and form changes. Comments concerning this revenue
procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Martinsburg Computing Center
Attn: IRB, Information Support Section
P. O. Box 1359
Martinsburg, WV 25402
Sec. 1. Purpose
.01 The purpose of this revenue procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W–2G magnet-
ically or electronically, which includes
1
⁄
2
-inch magnetic tape; IBM 3480, 3490 or AS400 compatible tape cartridges (including
8mm) or 5
1
⁄
4
- and 3
1
⁄
2
-inch diskettes with IRS. IRS/MCC has discontinued processing 8-inch diskettes.This revenue procedure
must be used for the preparation of Tax Year 1998 information returns and information returns for tax years prior to 1998 that are re-
quired to be filed. This revenue procedure must be used to prepare current and prior year information returns filed beginning Janu-
ary 1, 1999, and received by IRS/MCC or postmarked by December 15, 1999. Specifications for filing the following forms are
contained in this revenue procedure.
(a)Form 1098, Mortgage Interest Statement.
(b)Form 1098–E, Student Loan Interest Statement
(c) Form 1098–T, Tuition Payments Statement
(d) Form 1099–A, Acquisition or Abandonment of Secured Property
(e)Form 1099–B, Proceeds From Broker and Barter Exchange Transactions
(f)Form 1099–C, Cancellation of Debt
(g)Form 1099–DIV, Dividends and Distributions
(h)Form 1099–G, Certain Government Payments
(i)Form 1099–INT, Interest Income
(j) Form 1099–LTC, Long-Term Care and Accelerated Death Benefits
(k)Form 1099–MISC, Miscellaneous Income
(l)Form 1099–MSA, Distributions From Medical Savings Accounts
(m)Form 1099–OID, Original Issue Discount
(n)Form 1099–PATR, Taxable Distributions Received From Cooperatives
(o) Form 1099–R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
(p) Form 1099–S, Proceeds From Real Estate Transactions
(q)Form 5498–IRA Contribution Information
(r)Form 5498–MSA, Medical Savings Account Information
(s) Form W–2G, Certain Gambling Winnings
.02Specifications for filing Forms W–2 on magnetic media are available from the Social Security Administration (SSA) only.
Filers can call 1-800-SSA-1213 to obtain the phone number of the SSA Magnetic Media Coordinator for their area.
.03IRS/MCC does not process Forms W–2. Paper and/ormagnetic media for Forms W–2 must be sent to SSA. IRS/MCC does,
however, process waiver requests (Form 8508), extension of time to file requests (Form 8809) for Forms W–2 and requests for ex-
tension of time to provide the employee copies of Forms W–2.
.04 Generally, the box numbers on the paper forms correspond with the amount codes used to file magnetically/electronically;
however, if discrepancies occur, the instructions in this revenue procedure govern.
.05This revenue procedure also provides the requirements and specifications for magnetic media or electronic filing under the
Combined Federal/State Filing Program.
.06The following revenue procedures and publications provide more detailed filing procedures for certain other information re-
turns.
(a)1998 “Instructions for Forms 1099, 1098, 5498, and W–2G” provides specific instructions on completing and submitting in-
formation returns to IRS.
(b) Rev. 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 Printing of Substitute Forms 1096, 1098, 1099, 5498, and W–2G.
(d)Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated
Tips, on Magnetic Tape and 5
1
⁄
4
- or 3
1
⁄
2
-inch Diskettes.
(e)Publication 1187, Specifications for Filing Form 1042–S, Foreign Person’s U.S. Source Income Subject to Withholding, Elec-
tronically or on Magnetic Tape, and 5
1
⁄
4
- or 3
1
⁄
2
-inch Diskettes.
(f)Publication 1245, Specifications for Filing Form W–4, Employee’s Withholding Allowance Certificate, Magnetically or Elec-
tronically.
1998–21 I.R.B.9May 26, 1998

(g) Rev. Proc. 98–25, specifications set forth for the magnetic or electronic filing of 1999 Form 8851, Summary of Medical Sav-
ings Accounts, Magnetically/Electronically.
.07This revenue procedure supersedes Rev. Proc. 97–34 published as Publication 1220 (Rev. 7–97), Specifications for Filing
Forms 1098, 1099, 5498, and W–2G Magnetically or Electronically.
.08Refer to Part A, Sec. 17, for definitions of terms used in this publication.
Sec. 2. Nature of Changes—Current Year (Tax Year 1998)
.01 Legislative changes for Tax Year 1998 necessitated major changes in the record format for information returns filed
magnetically/electronically. There are two new forms for Tax Year 1998, the Form 1098–E, Student Loan Interest Statement,
and Form 1098–T, Tuition Payments Statement. However, for Tax Year 1998, Form 1098–T is not required to be reported
magnetically. Additional fields have been added to some of the existing records. IRS/MCC has redesigned the record lay-
outs and expanded record lengths from 420 positions to 750 positions for the Payer “A” Record, the Payee “B” Record, the
End of Payer “C” Record, the State Totals “K” Record, and the End of Transmission “F” Record. In addition, a Transmitter
“T” Record has been added as the first record on the file. This record will contain transmitter information from the Form
4804, Transmittal of Information Returns Reported Magnetically/Electronically. The record changes make it imperative for
filers to read this publication in its entirety. Failure to comply with the new record formats will result in the media being re-
turned to the filer.
.02 In previous years, new or revised information in the publication has been highlighted by the use of italics. Due to the
complete change in record formats, italics will not be used in this publication. Filers are encouraged to read the entire publi-
cation.
.03 Within the next few years, IRS/MCC will discontinue processing 5
1
⁄
4
-inch diskettes as an acceptable form of media.
Filers are encouraged to explore optional types of media or methods for submitting information returns to IRS/MCC. The
Information Reporting Program-Bulletin Board System (IRP–BBS) is a highly recommended alternative to diskette filing.
Sec. 3. Where to File and How to Contact the IRS, Martinsburg Computing Center
.01All information returns filed magnetically or electronically are processed at IRS/MCC. Files containing information returns,
requests for IRS magnetic media and electronic filing information, undue hardship waivers, and requests for extensions of time to
file returns or to furnish the statements to recipients are to be sent to the following addresses:
)
(
If by Postal Service:orIf by truck or air freight:
IRS-Martinsburg Computing CenterIRS-Martinsburg Computing Center
Information Reporting ProgramInformation Reporting Program
P. O. Box 1359Route 9 and Needy Road
Martinsburg, WV25402-1359Martinsburg, WV 25401
.02Send a magnetically filed extension of time request to one of the following addresses:
If by Postal Service:
)
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
P. O. Box 879
Kearneysville, WV 25430
If by truck or air freight:
(
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
.03Telephone inquiries for the Information Reporting Call Site may be made between 8:30 a.m. and 4:30 p.m. Eastern time,
Monday through Friday.
.04The telephone numbers for magnetic media inquiries or electronic submissions are:
%
304-263-8700 - Call Site - Part A, Sec 3.10
May 26, 1998101998–21 I.R.B.

Asynchronous filing
304-264-7070 - IRP–BBS (Information Reporting Program- Bulletin Board System) - Part D
Bisynchronous filing
(Mainframe filing)
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 (Telecommunication Device for the Deaf)
304-264-5602 - Fax Machine
(These are not toll-free telephone numbers.)
TO OBTAIN FORMS:
1-800-TAX-FORM (1-800-829-3676)
304-264-7070 - IRP–BBS access to forms
http://www.irs.ustreas.gov - INTERNET access to forms
.05 The 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G” have been included in the Publication 1220 for transmitter
convenience. The Form 1096 is used only to transmit Copy A of paperForms 1099, 1098, 5498, and W–2G. If filing paper returns,
follow the mailing instructions on the Form 1096 and submit the paper returns to the appropriate IRS Service Center.
.06Requests for paper Forms 1096, 1098, 1099 and W–2G, and publications related to magnetic media/electronic filing should
be made by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).
.07Questions pertaining to magnetic media filing of Forms W–2 mustbe directed to the Social Security Administration (SSA).
Filers can call 1-800-SSA-1213 to obtain the phone number of the SSA Magnetic Media Coordinator for their area.
.08Payers should notcontact IRS/MCC if they have received a penalty notice and need additional information, or are requesting
an abatement of the penalty. A penalty notice contains an IRS representative’s name and/or phone number for contact purposes; or,
the payer may be instructed to respond in writing to the address provided. IRS/MCC does notissue penalty notices and does not
have the authority to abate penalties. For penalty information, refer to the Penalty section of the 1998 “Instructions for Forms 1099,
1098, 5498, and W–2G.”
.09A taxpayer or authorized representative may request a copy of a tax return, including Form W–2 filed with a return, by sub-
mitting 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).
.10The IRS Centralized Call Site answers both magnetic media and tax law questions relating to the filing of information returns
(Forms 1096, 1098, 1099, 5498, 8027, W–2G, 1042–S, and W–4). The IRS/MCC Call Site answers tax law and paper filing related
questions about Forms W–2 and W–3, as well as handling inquiries dealing with backup withholding due to missing and incorrect
taxpayer identification numbers. The Call Site is located at IRS/MCC and operates in conjunction with the Information Reporting
Program. The Call Site provides service to the payer community (financial institutions, employers, and other transmitters of infor-
mation returns). Recipients of information returns (payees) should continue to contact 1-800-829-1040 or other numbers specified
in the tax return instructions with any questions on how to report information on their tax returns.
The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700or Telecommunications Device for
the Deaf (TDD) 304-267-3367.These are toll calls. Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to
4:30 p.m. Eastern Time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and em-
ployers. 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
.01The regulations under section 6011(e)(2)(A) of the Internal Revenue Code provide that, any person, including a corporation,
partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns magneti-
cally/electronically. The 250* or more requirement applies separately for each type of return and also to each type of cor-
rected return.
*Even though as many as 249 information returns may be submitted on paper to the Internal Revenue Service,
IRS encourages filers to transmit information returns magnetically or electronically.
.02All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identifica-
tion Number (TIN) [Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification
Number (ITIN), or Adoption Taxpayer Identification Number (ATIN)]. For example, if a corporation with several branches or loca-
tions 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 accordingly.
.03 Payers who are required to submit their information returns on magnetic media may choose to submit their documents by
electronic filing. Payers who submit their information returns electronically are considered to have satisfied the magnetic media fil-
ing requirements.
1998–21 I.R.B.11May 26, 1998

.04 IRS/MCC has two methods by which payers may submit their files electronically. Bisynchronous (mainframe) electronic fil-
ing, which can be found in Part C of this publication, or Asynchronous (Information Reporting Program-Bulletin Board System),
which is in Part D. An overview of some features provided on the IRP–BBS are as follows:
• Electronic filing of information returns to the IRS using dial-up modems
• Return notification of the acceptability of the data transmitted within 24 to 48 hours
• Electronic communication with IRS and SSA bulletin board systems
• Access to shareware
• Access to forms and publications relating to the Information Reporting Program
• News about the latest changes and updates that affect the Information Reporting Program at IRS
• Answers to messages and questions left on the bulletin board
• Available for public use and can be reached by dialing 304-264-7070
• IRP–BBS is accessible 24 hours a day, 7 days a week. Routine maintenance is performed daily, at approximately 7:00 a.m.
Eastern Time.
• Questions, comments, or suggestions can be directed to the Systems Operator (SYSOP) through IRP–BBS.
.05The following requirements apply separately to both originals and corrections filed magnetically/electronically:
1098 250 or more of anyof these forms require magnetic media or electronic filing with IRS. These are stand alone
1098–Ealone documents and are not to be aggregated for purposes of determining the 250 threshold. For
1098–T* example, if you must file 100 Forms 1099–B and 300 Forms 1099–INT, Forms 1099–B need not be filed
1099–Amagnetically or electronically since they do not meet the threshold of 250. However, Forms 1099–INT must be
1099–B filed magnetically or electronically since they meet the threshold of 250.
1099–C
1099–DIV
1099–G
1099–INT
1099–LTC
1099–MISC
1099–MSA
1099–OID
1099–PATR
1099–R
1099–S
5498
5498–MSA
W–2G
*For Tax Year 1998, Form 1098–T may be reported on paper regardless of the 250 threshold.
.06The 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
.01If a payer is required to file on magnetic media but fails to do so (or fails to file electronically, in lieu of magnetic media fil-
ing) and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For
penalty information, refer to the Penalty section of the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G.”)
.02If payers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they
may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns
on Magnetic Media, to IRS/MCC.
.03Even though a payer may submit as many as 249 corrections on paper, IRS encourages magnetically or electronically submit-
ted corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more magnetically or elec-
tronically. However, if a waiver for original documents is approved, any corrections for the same type of returns will be covered
under this waiver.
.04Generally, only the payer may sign the Form 8508. A transmitter 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 A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers.
.06All information requested on the Form 8508 must be provided to IRS for the request to be processed.
.07The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Payers may not
apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.
May 26, 1998121998–21 I.R.B.

.08Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original
form.
.09Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns.
.10 File Form 8508 for the W–2 series of forms with IRS/MCC, not SSA.
.11Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth in the regulations under
section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a
waiver request.
.12 If a waiver request is approved, the transmitter should keep the approval letter on file. The transmitter should not send a
copy of the approved waiver to the service center where the paper returns are filed.
.13 An approved waiver from filing information returns on magnetic media does not provide exemption from all filing.
The payer must timely file information returns on acceptable paper forms with the appropriate service center.
.14 Desert Storm/Operation Joint Guard (OJG) [See Note] (Bosnia Region) Contributions- If a payer is required to file a
Form 5498 magnetically/electronically, the payer may request an automaticwaiver to file Forms 5498 on paper for participants of
Desert Storm or Operation Joint Guard. The payer should clearly mark Desert Storm or Operation Joint Guard on the waiver request
form.
*Note: Military personnel under Operation Joint Guard (OJG) will be treated the same as military personnel under Op-
eration Joint Endeavor (OJE) for purposes of Pub. L. 104–117 and Notice 96–34, 1996–1 C.B. 379.
Sec. 6. Vendor List
.01IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. The Vendor List (Pub. 1582) contains
the names of service bureaus that will produce files on the prescribed types of magnetic media or via electronic filing. It also con-
tains the names of vendors who provide software packages for payers who wish to produce magnetic media or electronic files on
their own computer systems. This list is compiled as a courtesy and in no way implies IRS/MCC approval or endorsement.
.02 If filers meeting the filing requirements engage a service bureau to prepare media on their behalf, the filers should be
careful not to report duplicate data, which may cause penalty notices to be generated.
.03The Vendor List may be updated in print every other year. The most recently printed copy will be available by contacting
IRS/MCC at (304) 263-8700 or by way of a letter (see Part A, Sec. 3). The copy of the Vendor List on the Information Reporting
Program-Bulletin Board System is updated whenever changes or new information is received (Refer to Part D).
.04A vendor, who offers a software package, has the ability to produce magnetic media for customers, or has the capability to
electronically file information returns, and would like to be included on the list, must submit a written request to IRS/MCC. The re-
quest should include:
(a) Company name
(b)Address (include city, state, and ZIP code)
(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
Sec. 7. Form 4419, Application for Filing Information Returns Magnetically/Electronically
.01Transmitters are required to submit Form 4419, Application for Filing Information Returns Magnetically/ Electronically, to
request authorization to file information returns with IRS/MCC. A single Form 4419 should be filed no matter how many types of
returns the transmitter will be submitting magnetically/ electronically. For example, if a transmitter plans to file Forms 1099–INT,
one Form 4419 should be submitted. If, at a later date, another type of form (Forms 1098, 1099, 5498 and W–2G) is to be filed, the
transmitter does not need to submit a new Form 4419.
EXCEPTIONS
An additional Form 4419 is required for filing each of the following types of returns: Forms 1042–S, 8027, and W–4.
FORMTITLEEXPLANATION
1042–SForeign Person’s U.S. Payments subject to withholding under Chapter 3
Source Income Subjectof the Code, including interest, dividends, royal-
to Withholding ties, pensions and annuities, gambling winnings
and compensation for personal services.
1998–21 I.R.B.13May 26, 1998

8027 Employer’s AnnualReceipts from operations where tipping is custo-
Information Returnmary. Used by the employer to report employee’s
of Tip Income andtips or allocated tips.
Allocated Tips
W–4Employee’s WithholdingForms received during the quarter from employees
(See Note) Allowance Certificatequarter from employees still employed at the end
of the quarter who claim the following:
(a)More than 10 withholding allowances or
(b)Exempt status and wages normally would be
more than $200 a week.
*Note: Employers are not required to send other Forms W–4 unless notified to do so by the IRS.
.02Magnetic tape, tape cartridge, diskette, and electronically-filed returns may not be submitted to IRS/MCC until the applica-
tion has been approved. Please read the instructions on the back of Form 4419 carefully. A Form 4419 is included in the Publication
1220 for the filer’s use. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800-
829-3676). The form is also available on IRP–BBS at 304-264-7070 or on Internet at http://www.irs.ustreas.gov.
.03Upon 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 Transmitter “T” Record. If a transmitter uses more than one TCC to file, each TCC must be
reported on separate media or in separate transmissions if filing electronically.
.04Annually, a Publication 1220 containing the current revenue procedure, forms, and instructions will be sent to the attention of
the contact person indicated on Form 4419.
.05If any of the information (name, TIN or address) on the Form 4419 changes, please notify IRS/MCC in writing so 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 be 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 mustbe submitted to IRS/MCC at least 30 days before the
due date of the return(s) for current year processing. For documents to be filed electronically using IBM 3780 bisynchronous
protocols, Form 4419 must be submitted at least 45 days prior to the due date of the returns (See Part C, Sec. 2).This will
allow IRS/MCC the minimum amount of time necessary to process and respond to applications. In the event that computer equip-
ment or software is not compatible with IRS/MCC, a waiver may be requested to file returns on paper documents.
.07IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all
payers.
.08If 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 Transmitter “T” Record. Payers should contact their service bureaus for further informa-
tion.
.09Once 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 two years; the payer’s TCC may have been reassigned by
IRS/MCC. Payers, who are aware that the TCC assigned will no longer be used, are requested to notify IRS/MCC so these
numbers may be reassigned; or
(b)The payer’s magnetic media files were transmitted in the past by a service bureau using the service bureau’s TCC, but now 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 filing Form 4419.
.10One Form 4419 may be submitted regardless of how many types of media or methods are used to file the return. Multiple
TCCs will only be issued to payers with multiple TINs. Only one TCC will be issued per TIN unless the filer has checked the
application for the following forms in addition to the Forms 1099; Form 1042–S, Form 8027, and/or Form W–4. A separate
TCC will be assigned for each of these forms.
.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
considered the transmitter, and the individual departments of the company filing reports will be considered payers. A single Form
4419 covering all departments filing on magnetic media should be submitted. One TCC may be used for all departments.
.12Approval 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
.01IRS/MCC does not require test files, exceptfor 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).
May 26, 1998141998–21 I.R.B.

.02IRS/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)Transmitter “T” Record (all fields marked required must include transmitter information)
(b)Payer “A” Record (must not be fictitious data)
(c)Multiple Payee “B” Records (at least 11 “B” Records per each “A” Record)
(d) End of Payer “C” Record
(e) State Totals “K” Record, if participating in the Combined Federal/State Filing Program
(f)End of Transmission “F” Record (See Part B for record formats.)
.03Use the Test Indicator “T” in Field Position 28 of the “T” Record to show this is a test file.
.04IRS/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 their software reflects any programming changes. If unable to submit a magnetic or elec-
tronic test file, a hard copy printout that shows a sample of each record type (T, A, B, C, and F) may be submitted. The hard copy
print test is not acceptable for Combined Federal/State Filing approval.
.05 Tests should be sent to IRS/MCC between November 1 and December 15. The test file must be received at MCC by Decem-
ber 15 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.
.06For tests filed electronically, the transmitter mustsend 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 15.
.08Successfully processed media will not be returned to filers.
Sec. 9. Filing of Information Returns Magnetically/Electronically and Retention Requirements
.01Form 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 allmagnetic
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.
.02IRS/MCC allows for the use of computer-generated substitutes for Form 4804/4802. The substitutes must contain all infor-
mation requested on the original forms including the affidavit and signature line. Photocopies are acceptable but an original signa-
ture is required. When using computer- generated forms, be sure to mark very clearly which tax year is being reported. This
will eliminate a phone communication from IRS/MCC to question the tax year.
.03A transmitter may report for any combination of payers and/or documents in a submission. Each file must begin with a “T”
Record and end with an “F” record for the end of a transmission. For example, if reporting Forms 1099–INT for Bank A, Forms
1099–DIV for Bank B, and Forms 1098 for Bank C, three separate tapes or diskettes need not be created. All three banks and all
types of documents can be coded within a file on one tape or diskette as long as each bank or type of return has a separate “A”
Record. Multiple tapes or diskettes can be sent in one package. For each separate type of media, the first record on the file must be
the Transmitter “T” Record. A Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must be
submitted for every Transmitter “T” Record. 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.
.05Current and prior year data may be submitted in the same shipment; however, each tax year must be on separate media, and a
separate Form 4804 must be prepared to clearly indicate each tax year.
.06 Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to
IRS/MCC no earlier than January 1 of the year the return is due.
.07 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents
must not be filed. This may result in erroneous penalty notices.
.08Form 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. Failure to sign the affidavit on Form 4804 may delay processing or could result in
the files being returned unprocessed. 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).”
1998–21 I.R.B.15May 26, 1998

.09Although 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.
.10 A self-adhesive external media label, created by the filer, must be affixed to each tape and diskette. (IRS no longer pro-
vides 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 infor-
mationmust be 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.) 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).
.12 When 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 Box _____ of ______ outside label.
*Note: See Parts C and D for Electronic 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.
.15 Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at least 3
years from the reporting due date, with the exception of Form 1099–C. A financial 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 1998 falling on weekends in 1999, the information returns, the recipient copies, and the par-
ticipant 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 1, 1999
IRS Copy - March 1, 1999
Forms 5498 and 5498–MSA
Participant Copy - June 1, 1999
IRS Copy - June 1, 1999
(Participants Copy Form 5498-for fair market value of account and for Education IRA Contributions-February 1, 1999)
.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).
.03Information returns filed magnetically/electronically for Forms 1098, 1099, and W–2G must be submitted to IRS/MCC post-
marked on or before March 1, 1999.
.04Returns postmarked by the United States Postal Service (USPS) on or before March 1, 1999, and delivered by United States
mail to the IRS/MCC after the due date, are treated as timely under the “timely mailing as timely filing “ rule. A similar rule applies
to items delivered by private delivery services (PDSs) designated by the IRS. A PDS must be designated by the IRS before it will
qualify for the timely mailing rule. Designation is determined with respect to each type of delivery service offered by a PDS (e.g.,
next day delivery, two day delivery, etc.). Notices 97–26, 1997–1 C.B. 413 and 97–50, 1997–37 I.R.B. 21 provide the list of desig-
nated PDSs and the types of delivery services designated. Designation is effective until the IRS issues a revised list of designated
PDSs. Notice 97–26 also provides rules for determining the date that is treated as the postmark date. For items delivered by a non-
designated PDS, the actual date of receipt by IRS/MCC will be used as the filing date. For items delivered by a designated PDS, but
through a type of service not designated in Notice 97–26 and Notice 97–50, 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.
May 26, 1998161998–21 I.R.B.

.05Statements to recipients must be furnished on or before February 1, 1999 for TY98. Form 5498 statements to the participants
must be furnished on or before February 1, 1999 for TY98 for the fair market value of the account and for contributions to an educa-
tion IRA and by June 1, 1999 for TY98 for contributions made to all other types of IRAs for the prior calendar year.
.06Forms 5498 and 5498–MSA filed magnetically or electronically must be filed with IRS/MCC on or before June 1, 1999 for
TY98. Forms 5498 and 5498–MSA are filed for contributions to be applied to 1998 that are made January 1, 1998 through April 15,
1999 and/or to report the fair market value of any IRA/SEP/SIMPLE or medical savings account.
.07Use this revenue procedure to prepare information returns filed magnetically or electronically beginning January 1, 1999 and
received by IRS/MCC no later than December 15, 1999.
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 series of forms, and
1042–S.
.02Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC at the addresses
listed later in this section. 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 for all 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.
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.
.05If a filer does not have an IRS/MCC assigned Transmitter Control Code (TCC), a Form 4419, Application for Filing Informa-
tion Returns Magnetically/Electronically, must be submitted to obtain a TCC. This number must be used to submit an extension re-
quest magnetically/electronically.
.06 All magnetically filed requests 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
Kearneysville, WV 25430
If by truck or air freight: (
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
.07Requests 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.
.08 As 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.
.09If an additional extension of time is needed, a second Form 8809 must be filed by the initial extended due date. Check line 7
on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of
extreme hardship or catastrophic event. If requesting a second 30-day extension of time, submit the information return files as
soon as prepared. Do not wait for MCC’s response to your second extension request.
.10Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an
extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest
due date. For example, if requesting an extension of time to file both Forms 1099–INT and 5498, submit Form 8809 postmarked on
or before March 1, 1999. Complete more than one Form 8809 to avoid this problem.
.11If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval let-
ter for an extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper re-
turns are filed.
.12Request an extension for only one tax year.
1998–21 I.R.B.17May 26, 1998

.13The 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.
.14Failure 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.
.15 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).The form is also available on IRP–BBS at
304-264-7070or on Internet at http://www.irs.ustreas.gov.A copy of the Form 8809 is also provided in the back of the Publica-
tion 1220.
.16Request an extension of time to furnish the statements to recipients of Forms 1098, 1099, 5498, W–2G, W–2 series of forms,
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 series of forms, 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 state-
ments are due to the recipients.
Sec. 12. Processing of Information Returns Magnetically/Electronically
.01 All data received at IRS/MCC for processing will be given the same protection as individual income tax returns (Form 1040).
IRS/MCC will process the data and determine if the records are formatted and coded according to this revenue procedure.
.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.
.03Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of
the letter IRS/MCC included with the returned files. A penalty for failure to file correct information returns by the due date will be
assessed if the files are not corrected and returned within the 45 days or if the incorrect files are returned by IRS/MCC for re-
placement more than two times.A penalty for intentional disregard of filing requirements will be assessed if a replacement file is
not received. (For penalty information, refer to the Penalty section of the 1998 “Instructions for Forms 1099, 1098, 5498, and
W–2G.”)
.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 never send 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. If the filer is contacted by
IRS/MCC, a prompt response is important. IRS/MCC may have information that the filer needs to correct his or her file.
.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
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 CP2100A Notices) 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 requirement of information returns of 250 or more applies separately to both original and corrected
returns.
May 26, 1998181998–21 I.R.B.

If a payer has 100 Forms 1099–A to be corrected, they can be
Efiled on paper since they fall under the 250 threshold. However,
Xif the payer has 300 Forms 1099–B to be corrected, they must be
Afiled magnetically or electronically since they meet the 250 threshold.
MIf for some reason a payer cannot file the 300 corrections on magnetic
Pmedia, to avoid penalties, a request for a waiver must be submitted before
Lfiling on paper. If a waiver is approved for original documents, any corrections
Efor 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 by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalty
section of the 1998 “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 they will not be subject to a penalty for intentional disregard of the filing requirements.
Failure to correct information returns may result in penalties for failure to provide correct information. All fields must be com-
pleted 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 consider this 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.” If filers discover that
certain information returns were omitted on their original file, they must not code these documents as corrections. The file
must be coded and submitted as originals.
.05 If a payer discovers errors for prior years that affect a large number of payees, in addition to sending IRS the corrected returns
and notifying the payees, a letter containing the following information should be sent to IRS/MCC:
(a) Name and address of payer
(b)Type of error (please explain clearly)
(c)Tax year
(d) Payer TIN
(e)TCC
(f)Type of Return
(g) Number of Payees
This information will be forwarded to the appropriate office in an attempt to prevent erroneous notices from being sent to the pay-
ees. The correction must be submitted on an actual information return document or filed magnetically/electronically. Provide the
correct tax year in Block 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 2–5. If filing electronically, a separate transmission must be made for each tax year.
.07In general, filers should submit corrections for returns filed within the last 3 calendar years (4 years if the payment is a re-
portable 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’s Account Number for the Payee. This number will help identify
the appropriate incorrect return if more than one return is filed for a particular payee. Do not enter a TIN in this field.A payer’s
account number for the payee may be a checking account number, savings account number, serial number, or any other number 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.
.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 for Filing 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 for both Trans-
actions 1 and 2. (See Note 1)
1.Original return was filedTransaction 1:Identify incorrect returns
with one or more of the following errors:A. Prepare a new Form 4804/4802 that includes information related
(a)No payee TIN (SSN, ITIN, ATIN, or EIN)to this new file.
1998–21 I.R.B.19May 26, 1998

Guidelines for Filing Corrected Returns Magnetically/Electronically (Continued)
Error Made on the Original ReturnHow To File the Corrected Return
(b)Incorrect payee TINB. Mark “Correction” in Block 1 of Form 4804.
(c)Incorrect payee name C. Prepare a new file. The first record on the file will be the Trans-
(d)Wrong type of return indicatormitter “T” Record.
D.Make a separate “A” Record for each type of return and each
payer being reported. The information in the “A” record will be
exactlythe same as it was in the original submission with one ex-
ception, the Correction File Indicator must be set to “1” (one) in
Field Position 50.
E. The Payee “B” Records must contain exactly the sameinforma-
tion as submitted previously, except, insert a Corrected Return In-
dicator Code of “G” in Field Position 6 of the “B” Records, and
for all payment amounts, enter “0” (zero).
F.Corrected returns submitted to IRS/MCC using “G” coded “B”
Records may be on the same file as those returns submitted with a
“C” code; however, separate “A” Records are required.
G.Prepare a separate “C” Record for each type of return and each
payer being reported.
H.Continue with Transaction 2 to complete the correction.
Transaction 2: Report the correct information
A. Make a separate “A” Record for each type of return and each
payer being reported. The Correction File Indicator must be set
to “1” (one) in Field Position 50.
B. The Payee “B” Records must show the correct information as
well as a Corrected Return Indicator Code of “C” in Field Posi-
tion 6.
C.Corrected returns submitted to IRS/MCC using “C” coded “B”
Records may be on the same file as those returns submitted with a
“G” Codes; however, separate “A” Records are required.
D.Prepare a separate “C” Record for each type of return and each
payer being reported.
E.The last record on the file will be the End of Transmission “F”
Record.
F.Indicate “Correction” on the external media label.
*Note 1: Payers who can show they have reasonable cause (defined in the regulations under section 6724 of the Internal
Revenue Code) are not required to make corrections for returns filed with a missing or incorrect name and/or TIN. These
payers should change their records in order to submit correct information in the future. Payers who cannot show reasonable
cause are encouraged to make corrections for the current processing year by August 1 to reduce applicable penalties. Cor-
rections filed by August 1 will reduce the $50 per return penalty for filing returns with missing or incorrect information to
$30. The penalty is further reduced to $15 per return if the corrections are filed within 30 days of the due date. (For penalty
information, refer to the Penalty section of the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G.”) Corrections
filed after August 1 will not reduce the penalty but will allow IRS to update the payee’s records. The regulations for IRC sec-
tion 6724 are available in Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect
Name/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 orA.Prepare a new Form 4804/4802 that includes information relating
more of the following errors:to this new file.
B.Mark “Correction” in Block 1 of Form 4804.
(a)Incorrect payment amount codes inC. Prepare a new file. The first record on the file will be the Trans-
the Payer “A” Recordmitter “T” Record.
(b) Incorrect payment amounts in theD.Make a separate “A” Record for each type of return and each
Payee “B” Recordpayer being reported. Information in the “A” Record may be the
May 26, 1998201998–21 I.R.B.

Guidelines for Filing Corrected Returns Magnetically/Electronically (Continued)
Error Made on the Original ReturnHow To File the Corrected Return
(c)Incorrect code in the documentsame as it was in the original submission. The Correction File
specific/distribution code field in theIndicator must be set to “1” (one) in Field Position 50.
Payee “B” RecordE. The Payee “B” Records must show the correct information as well
(d)Incorrect payee addressas a Corrected Return Indicator Code of “G” in Field Position 6.
(e)Direct sales indicator F.Corrected returns submitted to IRS/MCC using file as those re-
turns submitted without the “G” code; however, separate “A”
Records are required.
G.Prepare a separate “C” Record for each type of return and each
payer being reported.
H.The last record on the file will be the End of Transmission “F”
Record.
I. Indicate “Correction” on the external media label.
*Note 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, two transactions
will be required. If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns on the same media,
each category must be reported under separate “A” records.
Sec. 14. Taxpayer Identification Number (TIN)
.01 Section 6109 of the Internal Revenue Code requires a person to furnish his/her TIN to the person obligated to file the infor-
mation return.
.02The payee’s TIN and name combination is used to associate information returns reported to IRS/MCC with corresponding in-
formation on tax returns. It is imperative that correctTaxpayer Identification Numbers (TINs) for payees be provided to IRS/MCC.
Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.
.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 providedmustbelong to the owner of the account. If the account is recorded in more than one name, fur-
nish the name and TIN of one of the owners of the account. The TIN provided mustbe associated with the name of the payee pro-
vided in the first name line of the “B” Record. For individuals, the payee TIN is generally the payee’s Social Security Number
(SSN). For other entities, the payee TIN is the payee’s Employer Identification Number (EIN). The payee TIN may also refer to an
Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN). 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.
.04 Failure 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 1998 “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 for Social Security Numbers
In the Taxpayer
Identification
Number Field ofIn the First Payee
the Payee “B”Name Line of the
For this type of Record, enter the Payee “B” Record,
account- SSN of-enter the name of-
1.IndividualThe individualThe individual
2.Joint account (Two orThe actual owner of theThe individual whose SSN is entered
more individuals, including account or, if combined
husband and wife)funds, the first indivdual
on the account.
1998–21 I.R.B.21May 26, 1998

3. Custodian account The minorThe minor
of a minor (Uniform
Gift, or Transfers,
to Minors Act)
4.The usual revocable The grantor-trusteeThe grantor-trustee
savings trust account
(grantor is also trustee)
5. A so-called trust The actual ownerThe actual owner
account that is not a
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.)
Chart 2. Guidelines for Employer Identification Numbers
In the Taxpayer
Identification
Number Field of In the First Payee
the Payee “B” Name Line of the
For this type Record, enter thePayee “B” Record,
of account- EIN of-enter the name of-
1.A valid trust, estate, orThe legal entity
1
The legal trust, estate, or pension trust
pension trust
2.Corporate The corporationThe corporation
3.Association, club, religious, The organizationThe organization
charitable, educational, or other
tax-exempt organization
4. Partnership account held in The partnershipThe partnership
the name of the business
5.A broker or registed The broker or nominee/middlemanThe broker or nominee/middleman
nominee/middleman
6.Account with Department of The public entityThe public entity
Agriculture 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 A of the paper forms to IRS/MCC in addition to magnetic media and electronic filing.This will result in du-
plicate filing; therefore, erroneous notices could be generated.
May 26, 1998221998–21 I.R.B.

.02Payers are responsible for providing statements to the payees as outlined in the 1998 “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 re-
cipients.
.03 Statements 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,
5498, and W–2G.”
Sec. 16. Combined Federal/State Filing Program
.01 The Combined Federal/State Filing Program was established to simplify information returns filing for the taxpayer.
IRS/MCC will forward this information to participating states free of charge for approved filers. Separate reporting to those states is
not necessary. The following information returns may be filed under the Combined Federal/State Filing Program:
Form 1099–DIV
_____
Dividends and Distributions
Form 1099–G
_______
Certain Government Payments
Form 1099–INT
_____
Interest Income
Form 1099–MISC
____
Miscellaneous Income
Form 1099–OID
_____
Original Issue Discount
Form 1099–PATR
____
Taxable Distributions Received from Cooperatives
Form 1099–R
_______
Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
Form 5498
__________
IRA
The following information returns may not be filed under this program:
Form 1098
__________
Mortgage Interest Statement
Form 1098–E
________
Student Loan Interest Statement
Form 1098–T
________
Tuition Payments 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
.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 15. 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.
.04 A test 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 payermustcomplete, 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 postmarked on or before December 15.
.07A separate Form 6847 is requiredfor each payer. A transmitter 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 for further information.
.10 All 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 Table 1of this section. The appropriate state code must
be entered for those documents that meet the state filing requirements; do not use state abbreviations.
1998–21 I.R.B.23May 26, 1998

.12 To simplify filing, some of the participating states have provided their information return reporting requirements (see Table
2). Each state’s filing requirements are subject to change by the state. It is the payer’s responsibility to contact the partici-
pating 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 must befollowed 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 Their Codes
StateCode State Code StateCode
Alabama 01 Idaho 16 Montana 30
Arizona 04 Indiana 18 New Jersey 34
Arkansas 05 Iowa 19 New Mexico 35
California 06 Kansas 20 North Dakota 38
Delaware 10 Maine 23 Oregon 41
District of Columbia 11 Massachusetts 25South Carolina 45
Georgia 13 Mississippi 28 Tennessee 47
Hawaii 15 Missouri29Wisconsin 55
Table 2. Dollar Criteria For State Reporting
STATE1099–DIV1099–G1099–INT099 MISC1099–OID1099–PATR1099–R5498
Alabama $1500$ NR$1500$1500$1500$1500$1500NR
Arkansas10025001002500 2500 25002500
a
District of
Columbia
b
600600 600 600600 600 600NR
Hawaii 10
a
10 600 10 10 600
a
Idaho NRNRNR 600 NR NR
aa
Iowa 10 1010600 10 10 10
a
Mississippi 600 600600 600600 600 600 NR
Missouri NRNRNR 1200
c
NR NR NR NR
Montana 10 1010 600 10 10 600
a
New Jersey 1000 10001000 1000 10001000 1000 NR
Tennessee 100NR100 NRNR NR NRNR
Wisconsin NR NRNR 600 NR NR 600 NR
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 its state agency.
Sec. 17. Definition of Terms
ElementDescription
Asynchronous ProtocolsThis type of data transmission is most often used by microcomputers, PCs and some mini-
computers. Asynchronous transmissions transfer data at arbitrary time intervals using the
start-stop method. Each character transmitted has its own start bit and stop bit.
ATINA temporary taxpayer identification number assigned to a child who has been placed by an
authorized placement agency in the household of a prospective adoptive parent prior to
May 26, 1998241998–21 I.R.B.

adoption. When the adoption becomes final, the adoptive parent must apply for a social
security number for the child.
bDenotes 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 transmissions made using IBM 3780
protocols. These transmissions must be in EBCDIC character code and use the Bell 208B
(4800bps), AT&T 2296A (9600bps) or Hayes OPTIMA 288 V.FC Smartmodem
(14400bps) modems. Standard IBM 3780 space compression is acceptable.
CorrectionA correction is an information return submitted by the transmitter to correct an informa-
tion return that was previously submitted to and processed by IRS/MCC, but contained
erroneous information.
*Note: A correction should not be confused with a replacement. Only media returned to the filer by IRS/MCC due to pro-
cessing problems should be marked replacement.
CUSIP NumberA number developed by the Committee on Uniform Security Identification Procedures to
serve as a common denominator in communications among users for security transactions
and security information.
Employer Identification A nine-digit number assigned by IRS for federal tax reporting purposes.
Number (EIN).
Electronic Filing Submission of information returns using switched telecommunications network circuits.
These transmissions use modems, dial-up phone lines, and asynchronous or bisynchro-
nous protocols. See Parts A, C, and D of this publication for specific information on elec-
tronic filing.
File For purposes of this revenue procedure, a file consists of one Transmitter “T” Record at
the beginning of the file, followed by a Payer “A” Record, Payee “B” Records, and an End
of Payer “C” Record after each set of “B” Records. The last record on the file will be the
End of Transmission “F” Record. Nothing should be reported after the End of Transmis-
sion “F” Record.
FilerPerson (may be payer and/or transmitter) submitting information returns to IRS.
Filing YearThe actual year in which the information returns are being submitted to IRS.
Golden Parachute PaymentA payment made by a corporation to a certain officer, shareholder, or highly compensated
individual when a change in the ownership or control of the corporation occurs or when a
change in the ownership of a substantial part of the corporate assets occurs.
Incorrect TaxpayerA TIN may be incorrect for several reasons:
Identification Number(a) The payee provided a wrong number or name (e.g., the payee is listed as the only
(Incorrect TIN) owner of an account but provided someone else’s TIN).
(b) A processing error (e.g., the number or name was typed incorrectly).
(c) The payee’s status changed (e.g., a payee name change was not conveyed to the IRS or
SSA so they could enter the change in their records).
Individual TaxpayerA nine digit number issued by IRS to individuals who are required to have a U.S. Tax-
Identification Number (ITIN)payer Identification Number but are not eligible to obtain a Social Security Number (SSN).
Information ReturnThe vehicle for submitting required information about another person to IRS. Information
returns are filed by financial institutions and by others who make certain types of payments
as part of their trade or business. The information required to be reported on an information
return includes interest, dividends, pensions, nonemployee compensation for personal ser-
vices, stock transactions, sales of real estate, mortgage interest, and other types of informa-
tion. For this revenue procedure, an information return is a Form 1098, 1098–E, 1098–T,
1099–A, 1099–B, 1099–C, 1099–DIV, 1099–G, 1099–INT, 1099–LTC, 1099–MISC,
1099–MSA, 1099–OID, 1099–PATR, 1099–R, 1099–S, 5498, 5498–MSA or W–2G.
1998–21 I.R.B.25May 26, 1998
ElementDescription

ElementDescription
Magnetic For this revenue procedure, the term “magnetic media” refers to
1
⁄
2
-inch magnetic tape;
MediaIBM 3480/3490/3490E or AS400 compatible tape cartridge; 8mm, 4mm, and QIC (Quar-
ter Inch Cartridges) cartridge 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
(Form 9267) due to incorrect format or errors encountered when trying to process the media. This
must be returned with the replacement file.
Missing TaxpayerThe payee TIN on an information return is “missing” if:
Identification Number(a) there is no entry in the TIN field,
(Missing TIN)(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 taxable under section 72(m) and
section 1.72–16(b) of the Income Tax Regulations. (See Part B, Sec. 10, 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 re-
turn must be filed. The payee includes a student (Form 1098–T), borrower (Forms 1098,
1098–E, and 1099–A), a debtor (Form 1099–C), a policyholder or insured (Form 1099–
LTC), any IRA/SEP/SIMPLE plan participant (Form 5498), and a gambling winner (Form
W–2G). For Form 1099–S, the payee is the seller or other transferor.
Payer Includes the person making payments, a recipient of mortgage interest payments, a recipi-
ent of student loan interest payments, a broker, a person reporting a real estate transaction,
a barter exchange, a creditor, a trustee or issuer of any IRA/SEP/SIMPLE, or a lender who
acquires an interest in secured property or who has reason to know that the property has
been abandoned. The payer will be held responsible for the completeness, accuracy, and
timely submission of magnetic media files.
ReplacementA replacement is an information return file that IRS/MCC has returned to the transmitter
due to errors encountered during processing.
*Note: Filers should never submit media to IRS/MCC marked “Replacement” unless IRS/MCC returned media to the filers.
When sending “Replacement” media, be sure to include the Media Tracking Slip (Form 9267) which will accompany media returned
by IRS/MCC. Media that has been incorrectly marked as Replacement may result in duplicate filing.
Service BureauPerson or organization with whom the payer has a contract to prepare and/or submit infor-
mation return files to IRS/MCC. A parent company submitting data for a subsidiary is not
considered a service bureau.
Social Security Number (SSN) A nine-digit number assigned by SSA to an individual for wage and tax reporting pur-
poses.
Special CharacterAny character that is nota numeric, an alpha, or a blank.
SSASocial Security Administration.
Taxpayer Identification Refers to either an Employer Identification Number (EIN), Social Security Number (SSN),
Number (TIN)Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer Identification
Number (ATIN).
Tax YearGenerally, the year in which payments were made by a payer to a payee.
Transfer AgentThe transfer agent, or paying agent, is the entity who has been contracted or authorized by
the payer to perform the services of paying and reporting backup withholding (Form 945).
Transmitter Refers to the person or organization submitting file(s) magnetically/electronically. The
transmitter may be the payer or agent of the payer.
Transmitter Control Code A five character alpha/numeric number assigned by IRS/MCC to the transmitter prior to
(TCC)actual filing magnetically or electronically. This number is inserted in the “T” Record of
the files and mustbe present before the file can be processed. An application Form 4419
must be filed with IRS/MCC to receive this number.
May 26, 1998261998–21 I.R.B.

ElementDescription
VendorVendors include service bureaus that produce information return files on the prescribed
types of magnetic media or via electronic filing for payers. Vendors also include compa-
nies 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.
State CodeState Code State Code
Alabama ALKentucky KYOhioOH
Alaska AK LouisianaLAOklahomaOK
American Samoa AS Maine ME OregonOR
Arizona AZMarshall Islands MH PennsylvaniaPA
ArkansasAR MarylandMDPuerto RicoPR
CaliforniaCAMassachusettsMARhode IslandRI
ColoradoCOMichiganMISouth CarolinaSC
Connecticut CTMinnesota MN South Dakota SD
Delaware DE Mississippi MS TennesseeTN
District of Columbia DC Missouri MO Texas TX
Federated States Montana MTUtah UT
of Micronesia FM Nebraska NE VermontVT
Florida FLNevada NVVirginia VA
Georgia GANew HampshireNH Virgin Islands* VI
Guam GU New Jersey NJ WashingtonWA
Hawaii HI New MexicoNM West Virginia WV
Idaho ID New York NYWisconsinWI
Illinois ILNorth Carolina NC Wyoming WY
Indiana IN North DakotaND
Iowa IANorthern
Kansas KS Mariana Islands MP
*This abbreviation applies to the United States Virgin Islands.
.02 Filers must adhere to the city, state, and ZIP Code format for U. S. addresses in the “B” Record. This also includes American
Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U. S. Virgin Is-
lands.
.03For foreign country addresses, filers may use a 51 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
247 of the “B” Record.
.04 When reporting APO/FPO addresses use the following format:
EXAMPLE:
Payee NamePVT Willard J. Doe
Mailing AddressCompany F, PSC Box 100
167 Infantry REGT
Payee City APO (or FPO)
Payee State AE, AA, or AP*
Payee ZIP Code 098010100
*AE is the designation for ZIPs beginning with 090–098, AA for ZIP 340, and AP for 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
1998–21 I.R.B.27May 26, 1998

files prepared by a service bureau or who have purchased preprogrammed software packages. If a filer purchased a software
package for a previous tax year, it will not be valid for reporting current tax year information returns due to the new record
format.
Filers who engage a service bureau to prepare media on their behalf 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. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically
Each shipment of media sent to IRS/MCC must include a Form 4804. More than one type of media may be sent in the same ship-
ment, (i.e., a tape, a diskette, or a tape cartridge) but must have a separate Form 4804 to accompany each type of media.In this ex-
ample three separate Forms 4804 would be required in the total shipment However, multiples of one type of media (6 diskettes)
may be covered by one Form 4804. For electronically transmitted information returns, the Form 4804 must be mailed to IRS/MCC
the same day as the transmission.
2. 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.
3. 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 positionsmust be zero (0) filled.
EXAMPLE:“A” RECORD247 bbbbbbbbb — (‘b’ denotes a blank)
(Pos. 28–39)
“B” RECORD000000867599—(Payment Amount 2)
(Pos. 67–78)
000000709097 — (Payment Amount 4)
(Pos. 91–102)
000000044985— (Payment Amount 7)
(Pos. 127–138)
4. Blanks or invalid characters appear in Payment Amount Fields in the “B” Record
Money amounts must be right-justified and zero (0) filled. Do not use blanks.
5. Incorrect TIN in Payer “A” Record
The Payer’s TIN reported in positions 12–20 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.
6. Bad Format
NOTE: Due to major format changes in the record expansion and layout, IRS/MCC strongly encourages transmitters, ven-
dors, and filers to read the Revenue Procedure in its entirety.
IRS/MCC receives data in prior year format. Be sure to use the current revenue procedure (Publication 1220)for formatting
data.
7. Incorrect tax year in the Transmitter “T” Record, Payer “A” Record and the Payee “B” Record
The tax year in the transmitter, payer and payee records should reflect the year of the information being reported. Filers need to
check their files to ensure this information is correct.
Due to Year 2000 compliance changes, the year format has expanded to four (4) positions.
8. Incorrect reporting of Form W–2 information to IRS
Form W–2 information is submitted to SSA, andnotto IRS/MCC. SSA has 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-
May 26, 1998281998–21 I.R.B.

tains Form W–2 information will be returned to the filer. To inquire about filing Form W–2 information magnetically, call 1-800-
SSA–1213.
9. 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.
10. Incorrect format for TINs in the Payee “B” Record
A check of “B” records should be made to ensure the Taxpayer Identification Numbers (TINs) are formatted correctly. There 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 errors that could result in penal-
ties. Payers/transmitters who submit data with missing TINs, and have taken the required steps to obtain this information are en-
couraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This
letter, however, will not prevent backup withholding notices (CP2100 and CP2100A Notices) or penalties for missing or incorrect
TINs. For penalty information, refer to the Penalty section of the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G.”
11. Distribution Codes for Form 1099–R reported incorrectly
Distribution codes for Form 1099–R are being reported incorrectly or not being reported. See valid distribution codes for Form
1099–R in the Payee “B” Record layout.
12. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on the Form 4804 (Block 9) are used in the verification process of information returns.
The figure in this block should be the total number of Payee “B” Records contained on the media submitted with the Form 4804.
The figures on the Form 4804 are compared against the total number of Payee “B” Records processed on the media. Imbalances
may necessitate the return of the files for replacement.
13. Invalid Use of IRA/SEP/SIMPLE Indicator (Form 1099–R)
The IRA/SEP/SIMPLE Indicator for Form 1099–R should be used only for the reporting of a distribution from a traditional
IRA/SEP/SIMPLE. The total amount distributed from a traditional IRA/SEP/SIMPLE should be reported in Payment Amount Field
A (IRA/SEP/SIMPLE Distribution).
14. Distribution Codes used incorrectly in conjunction with the IRA/SEP/SIMPLE Indicator. (Form 1099–R)
When reporting Form 1099–R information, Distribution Codes G and H MAY NOT be used in positions 545–546 of the”B” Record
if the IRA/SEP/SIMPLE Indicator (1) is present in position 548 of the “B” Record.This will cause media to be returned.
15. Failure to identify the rollover contributions and/or fair market value of the account for Form 5498
Rollover contributions (Amount Code 2 of the “A” Record) and/or fair market value of the account (Amount Code 4 of the “A”
Record) for Form 5498 must be identified as an IRA (position 547 of the “B” Record), SEP (position 548 of the “B” Record), SIM-
PLE (position 549 of the “B” Record), Roth IRA (position 550 of the “B” Record), Roth Conversion (position 551 of the “B”
Record), or Education IRA (position 552 of the “B” Record).
16. Media received without data
Before media is shipped, transmitters/filers should verify the presence of Form 1099 information returns on the media before send-
ing the shipment to IRS/MCC.
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/electronic file.
.02A provision is made in the “B” Records for entries which are optional. If the field is not utilized, enter blanks to maintain a
fixed record length of 750 positions. Each field description explains the intended use of specific field positions.
.03Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these specifi-
cations, it will 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.
1998–21 I.R.B.29May 26, 1998

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)A density 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)A density 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)A block must notexceed 32,250 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. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of 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 750.
(d)Records may not span blocks.
.04 Labeled or unlabeled tapes may be submitted.
.05For the purposes of this revenue procedure the following must be used:
Tape Mark:
(a)Signifies 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.
.06IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark,
but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
Sec. 3. Tape Cartridge Specifications
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a)Must be IBM 3480, 3490, 3490E, or AS400 compatible.
(b)Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1)Tape cartridges will be
1
⁄
2
-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by 1-
inch in dimension.
(2)Magnetic tape will be chromium dioxide particle based
1
⁄
2
-inch tape.
(3)Cartridges must be 18-track or 36-track parallel (See Note).
(4)Cartridges will contain 37,871 CPI or 75,742 CPI (characters per inch).
(5)Mode will be full function.
(6)The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7)Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Informa-
tion Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a)A block must notexceed 32,250 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. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of 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 750.
(d)Records may not span blocks.
.03Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:
May 26, 1998301998–21 I.R.B.

Tape Mark:
(a)Signifies the physical end of the recording on tape.
(b)For even parity, use BCD configuration 001111 (8421).
(c)May follow the header label and precede and/or follow the trailer label.
*Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 36-track or
18-track.
Sec. 4. 8mm, 4mm, and Quarter Inch Cartridge Specifications
.01In 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 system 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:
TracksDensityCapacity
120 (43245 BPI)2.5 Gb (10Gb)
121 (45434 BPI)5 Gb (20 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)A file may consist of more than one cartridge; however, no more than 250,000 documents may be transmitted per file or
per cartridge. The filename, for example; IRSTAX, will contain a three digit extension. The extension will indicate the
sequence of the cartridge within the file (e.g., 1 of 3, 2 of 3, and 3 of 3) and would appear in the header label
IRSTAX.001, IRSTAX.002, and IRSTAX.003 on each cartridge of the file. The end of transmission “F” Record
should be placed only on the last cartridge for files containing multiple cartridges.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must notexceed 32,250 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 9’s; how-
ever, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of 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 750.
(d)Various COPY commands have been successful; however, the SAVE OBJECT COMMAND is not acceptable.
(e)Extraneous data following the “F” Record will result in media being returned for replacement.
(f) Records may not span blocks.
(g) No more than 250,000 documents per cartridge and per file.
.03For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a sug-
gested filename.
.04For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Signifies 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.
.05If extraneous data follows the End of Transmission “F” Record, the file will be returned for replacement. Therefore,
IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data
when submitting information returns.
.06IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark,
but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a)4 mm cassettes will be 2
1
⁄
4
-inch by 3-inch.
(b)The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d)The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4Gb.
1998–21 I.R.B.31May 26, 1998

(e)The general specifications for 8mm cartridges will also apply to the 4 mm cassettes.
.08Various Quarter Inch Cartridges (QIC) (
1
⁄
4
-inch) are also acceptable.
(a)QIC cartridges will be 4” by 6”.
(b)QIC cartridges must meet the following specifications:
SizeTracks DensityCapacity
QIC–114/54 (8000 BPI)22Mb or 30Mb
QIC–248/95 (8000 BPI)45Mb or 60Mb
QIC–1201515 (10000 BPI) 120Mb or 200Mb
QIC–1501816 (10000 BPI) 150Mb or 250Mb
QIC–3202617 (16000 BPI) 320Mb
QIC–5252617 (16000 BPI) 525Mb
QIC–10003021 (36000 BPI)1Gb
QIC–13503018 (51667 BPI) 1.3Gb
QIC–2Gb4234 (40640 BPI) 2Gb
(c) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
Sec. 5. 5
1
⁄
4
-inch and 3
1
⁄
2
-inch Diskette Specifications
IRS/MCC will discontinue processing 5
1
⁄
4
inch diskettes in the future. Filers who use 5
1
⁄
4
inch diskettes are encouraged to
explore other methods by which to submit information returns magnetically/electronically.
.01To 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 recorded in standard ASCII code. However, if data is recorded using EBCDIC, a 5
1
⁄
4
-inch
diskette must be used and a 1024 byte sector would be valid for System 36 or AS400.
The following command should be used to format the diskette into a 1024 byte sector:
INIT IRSTAX,,FORMAT2
The save commands are as follows:
(1)The save command for System 36 is SAVE.
(2)The save command for AS400 is SAV36F.
(c)Records must be a fixed length of 750 bytes per record.
(d)Delimiter character commas (,) must not be used.
(e) Positions 749 and 750 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
(f)Filename of IRSTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette,
the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the diskettes within
the file. For example, if the file consists of three diskettes, the first diskette will be named IRSTAX.001, the second will be
IRSTAX.002, and the third will be IRSTAX.003. The first diskette, IRSTAX.001 will begin with a “T” Record and the
third diskette, IRSTAX.003 will have an “F” Record at the end of the file.
(g)A diskette will not contain multiple files. (See Part A, Section 17 for definition of a file.)
(h)Failure to comply with instructions will result in media being returned for replacement.
(i)Diskettes must meet one of the following specifications:
CapacityTracks Sides/Density Sector Size
1.44 mb96tpi hd512
1.44 mb135tpi hd512
1.2 mb 96tpi hd512
.02IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data fol-
lows the End of Transmission “F” Record, the file will be returned for replacement.
.03 IRS/MCC prefers that 5
1
⁄
4
- and 3
1
⁄
2
-inch diskettes be created using MS–DOS; however, diskettes created using other operat-
ing systems may be acceptable (See Notes). IRS/MCC has equipment that can convert diskettes created under most operating sys-
tems 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.
Notes: IRS/MCC will discontinue processing 5
1
⁄
4
-inch diskettes in the future.
IRS will discontinue processing non-MS–DOS compatible diskettes in the future.
3
1
⁄
2
-inch diskettes created on a System 36 or AS400 are not acceptable.
.04 Transmitters should check media for viruses before submitting it to IRS/MCC.
May 26, 1998321998–21 I.R.B.

Sec. 6. Transmitter “T” Record - General Field Descriptions
.01The Transmitter “T” Record identifies the entity transmitting the magnetic media/electronic file and contains information
which is supplied on the Form 4804, Transmittal of Information Returns Magnetically/Electronically. The “T” Record has been cre-
ated to facilitate current magnetic/ electronic processing of information returns at IRS/MCC with an eventual goal of paperless filing.
.02 The Transmitter “T” Record is the first record on each file and is followed by a Payer “A” Record. See Part A, Sec. 17, Defi-
nition of Terms for the definition of file. A file will be returned to the transmitter for replacement if the “T” Record is not present.
For transmitters with multiple diskettes, refer to Sec. 5. 5
1
⁄
4
-inch and 3
1
⁄
2
- inch Diskette Specifications.
.03The Transmitter “T” Record requires the total number of Payees (“B” Records) being reported. No money or payment
amounts are reported in the Transmitter “T” Record.
.04For all fields marked “Required”,the transmitter must provide the information described under Description and Remarks.
For those fields not marked “Required”,a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the
indicated field positions and for the indicated length.
.05 All records must be a fixed length of 750 positions.
.06The Transmitter “T” Record must be followed by the Payer “A” Record, which must be followed with Payee “B” Records;
however, the initial record on each file must be a Transmitter “T” Record.
.07 All alpha characters entered in the “T” Record must be upper-case.
.08When transmitting information on magnetic media or electronically, the Transmitter “T” Record must precede the first Payer
“A” Record and reflect the person actually transmitting the information to IRS/MCC.
Record Name: Transmitter “T” Record
Field
PositionField TitleLengthDescription and Remarks
1Record Type1Required.Enter “T.”
2–5Payment Year4Required. Enter “1998” (unless reporting prior year data; see field
position 6).
6Prior Year1Required.Enter “P” onlyif reporting prior year data; otherwise,
Dataenter blank.
Indicator
7–15Transmitter’s9Required.Enter the transmitter’s nine digit Tax Identification Num-
TINber. May be an EIN or SSN.
16–20Transmitter5Required.Enter the five character alpha/numeric Transmitter Con-
Control Codetrol Code (TCC) assigned by IRS/MCC. A TCC must be obtained to
file data within this program.
21–22Replacement 2Required for replacement files only. Enter the alpha/numeric
Alpha Charactercharacter which appears immediately following the TCC number on
the Media Tracking Slip (Form 9267). The Form 9267 accompanies
media that has been returned by IRS/MCC due to processing prob-
lems. This field must be blank unless media has been returned. If
the file is being replaced magnetically, information is required in this
field. If the file was originally sent magnetically, but the replacement
is being sent electronically, the information is required in this field.
Otherwise, leave blank for electronic files. Left justify information
and fill unused positions with blanks. If this is not a replacement
file, enter blanks.
23–27Blank5Enter blanks.
28Test File Indicator1Required for test files only.Enter “T” if this is a test file, otherwise
enter a blank.
1998–21 I.R.B.33May 26, 1998

Record Name: Transmitter “T” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
29 Foreign Entity 1Enter a “1” (one) if the transmitter is a foreign entity. If the transmit-
Indicatorter is not a foreign entity, enter a blank.
30–69Transmitter Name40Required.Enter the name of the transmitter in the manner in which
it is used in normal business. Left justify and fill unused positions
with blanks.
70–109Transmitter Name40Enter any additional information that may be part of the name. Left
(Continuation)justify information and fill unused positions with blanks.
NOTE: All the information “Required” in Field Positions 110 thru 280 MUST contain the address information where
media, which IRS/MCC was unable to process is to be returned. Any correspondence relating to problem media or elec-
tronic files will also be sent to this address.
110–149Company 40Required.Enter the name of the company to be associated with the
Nameaddress where correspondence should be sent or media should be re-
turned due to processing problems.
150–189Company 40Enter any additional information that may be part of of the name of
Namethe company where correspondence should be sent or media should
(Continuation)be returned due to processing problems.
190–229Company40Required. Enter the mailing address where correspondence should
Mailingbe sent or media should be returned in the event IRS/MCC is unable
Adressto process.
230–269Company City40Required.Enter the city, town, or post office where correspondence
should be sent or media should be returned in the event IRS/MCC is
unable to process.
270–271Company State2Required.Enter the valid U. S. Postal Service state abbreviation for
states. Refer to the chart of valid state codes in Part A, Sec.18.
272–280Company9Required.Enter the valid nine digit ZIP Code assigned by the U. S.
ZIP Code Postal Service. If only the first five digits are known, left justify in-
formation and fill unused positions with blanks.
281–295Blank 15Enter blanks.
296–303Total Number 8Required.Enter the total number of Payee “B” Records reported in
of Payeesthe file. Right justify information and fill unused positions with
zeros.
304–343Contact Name 40Required.Enter the name of the person to be contacted if IRS/MCC
encounters problems with the file or transmission.
344–358Contact’s Phone15Required.Enter the telephone number of the person to contact
Number &regarding magnetic/electronic files. Omit hyphens. If no extension
Extensionis available, left justify information and fill unused positions with
blanks. For example, the IRS/MCC Call Site phone number of 304-
263-8700 with an extension of 52345 would be 304263870052345.
May 26, 1998341998–21 I.R.B.

Record Name: Transmitter “T” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
359–360Magnetic 2Required for magnetic tape/tape cartridge filer only.Enter the
Tape Fileletters “LS” (in uppercase only). Use of this field by filers using
Indicatorother types of media will be acceptable but is not required.
361–375Electronic15Required for an original or correction electronic file which was
File Nameincorrect and a replacement is being sent, enter the ORIGINAL/or
CORRECTION filename that was assigned by the IRP–BBS (Exam-
ple-12345p01.DAT). Left justify information and fill unused posi-
tions with blanks. Do not enter the replacement filename. Other-
wise, enter blanks.
376–748Blank373Enter blanks.
749–750Blank 2Enter blanks,or carriage return/line feed (CR/LF) characters.
Sec. 7. Transmitter “T” Record - Record Layout
12–567–1516–2021–2223–27
282930–6970–109110–149150–189
190–229230–269270–271272–280281–295296–303304–343
344–358359–360361–375376–748749–750
Sec. 8. Payer “A” Record - General Field Descriptions
.01 The Payer “A” Record identifies the institution or person making payments, a recipient of mortgage interest payments, a bro-
ker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee, or issuer of an IRA, SEP, or SIMPLE, or a
lender who acquires an interest in secured property or who has reason to know that the property has been abandoned. The payer will
be held responsible for the completeness, accuracy, and timely submission of magnetic media files. The Payer “A” Record also pro-
vides parameters for the succeeding Payee “B” Records. IRS computer programs rely on the absolute relationship between the para-
meters and data fields in the “A” Record and the data fields in the “B” Records to which they apply.
.02The number of “A” Records depends on the number of payers and the different types of returns being reported. The payment
amounts for one payer and for one type of return should be consolidated under one “A” Record if submitted on the same file.
1998–21 I.R.B.35May 26, 1998
Record
Type
Payment
Year
Prior Year
Data
Indicator
Transmitter’s
TIN
Transmitter
Control
Code
Replacement
Alpha
Character
Blank
Test
Indicator
Foreign
Entity
Indicator
Transmitter
Name
Transmitter
Name
(Continuation)
Company
Name
Company
Name
(Continuation)
Company
Mailing
Address
Company
City
Company
State
Company
ZIP
Code
Blank
Total
Number
of Payees
Contact
Name
Contact’s Phone
Number &
Extension
Magnetic
Tape File
Indicator
Electronic File
Name
Blank
Blank or
CR/LF

.03Do not submit separate “A” Records for each payment amount being reported. For example, if a payer is filing Form
1099–DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one “A” Record, not three separate
“A” Records. For “B” Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no
payment to be reported.
.04 The second record on the file must be an “A” Record. A transmitter may include “B” Records for more than one payer on a
tape or diskette. However, each groupof “B” Records must be preceded by an “A” Record and followed by an End of Payer “C”
Record. A single tape or diskette may contain different types of returns but the types of returns must notbe intermingled. A sepa-
rate “A” Record is required for each payer and each type of return being reported.
.05 All records must be a fixed length of 750 positions.
.06An “A” Record may be blocked with “B” Records; however, the initial record on a file must be a “T” Record followed by an
“A” Record. IRS/MCC will accept an “A” Record after a “C” Record.
.07Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.
.08All alpha characters entered in the “A” Record must be upper-case.
.09When filing Form 1098, Mortgage Interest Statement, and Form 1098–E, Student Loan 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 in-
dividual paying the interest (borrower/payer of record) and the amount paid.
.10 For all fields marked “Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked “Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the
indicated media position(s) and for the indicated length.
Record Name: Payer “A” Record
Field
PositionField TitleLengthDescription and Remarks
1Record Type1Required.Enter “A.”
2–5Payment Year4Required.Enter “1998” (unless reporting prior year data).
6–11Blank6Enter blanks.
12–20Payer’s9Required. Must be the valid nine-digit Taxpayer Identification
TaxpayerNumber assigned to the payer. Do not enter blanks, hyphens,
Identification or alpha characters. All zeros, ones, twos, etc., will have the
Number (TIN)effect of an incorrect TIN.
*Note: For foreign entities that are not required to have a TIN, this field must be blank. However, the Foreign Entity In-
dicator, position 52 of the “A” Record, must be set to “1” (one).
21–24 Payer Name 4The Payer Name Control can be obtained only from the mail label
Controlon the Package 1099 that is mailed to most payers each December.
To distinguish between Package 1099 and the Magnetic Media Re-
porting (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 electronically. The mail label does not
contain a name control. Names of less than four (4) characters
should be left-justified, filling the unused positions with blanks. If a
Package 1099 has not been received or the Payer Name Control is
unknown, this field must be blank filled.
25Last Filing1Enter a “1” (one) if this is the last year the payer will file; otherwise,
Indicatorenter blank.Use this indicator if the payer will not be filing infor-
mation returns under this payer name and TIN in the future either
magnetically, electronically, or on paper.
26Combined1 Required for the Combined Federal/State Filing Program.Enter
Federal/State“1” (one) if participating in the Combined Federal/State Filing
FilerProgram; otherwise, enter blank.Refer to Part A, Sec. 16, for fur-
ther information. The only forms that may be filed under the
May 26, 1998361998–21 I.R.B.

Combined Federal /State Filing Program are: Forms 1099–DIV,
1099–G, 1099–INT, 1099–MISC, 1099–OID, 1099–PATR,
1099–R, and 5498.
27Type of Return1Required.Enter the appropriate code from the table below:
Type of ReturnCode
1098 3
1098–E2
1098–T8
1099–A4
1099–BB
1099–C 5
1099–DIV1
1099–GF
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
28–39 Amount Code12Required.Enter the appropriate amount codes for the type of
(See Note)return being reported. Generally, for each amount code entered in
this field, a corresponding payment amount mustappear in the
Payee “B” Record.
In most cases, the box numbers on paper information returns
correspond with the amount codes used to file magnetically/elec-
tronically. However, if discrepancies occur, this revenue proce-
dure governs.
The Amount Codes have been expanded from nine to twelve
codes to accommodate three additional payment fields in the
Payee “B” Record. Amount Codes 1 through 9 will remain nu-
meric. Amount Codes 10, 11, and 12 will be A, B, and C, respec-
tively.
Example of Amount Codes:
If position 27 of the Payer “A” Record is “A” (for 1099–MISC) and positions 28–39 are “1247ACbbbbbb”, this indicates the payer
is reporting any or all six payment amounts (1247AC) in all of the following “B” Records. (In this example, “b” denotes blanks in
the designated positions. Do not enter the letter “b”.)
The first payment amount field (1)will represent rents;
the second payment amount field (2)will represent royalties;
the third payment amount field (3)will be all “0” (zeros);
the fourth payment amount field (4)will represent Federal income tax withheld;
the fifth and sixth payment amount fields (5 and 6)will be all “0” (zeros);
the seventh payment amount field (7)will represent nonemployee compensation;
the eighth and ninth payment amount fields (8 and 9)will be all “0” (zeros);
1998–21 I.R.B.37May 26, 1998
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

the tenth payment amount field (A) will represent crop insurance proceeds;
the eleventh payment amount field (B)will be all “0” (zeros);
and
the twelfth payment amount field (C)will represent gross proceeds paid to an attorney in connection with legal services.
Enter the amount codes in ascending sequence(i.e.,1247ACbbbbbb), left justify information, and fill unused positions with blanks.
For further clarification of the amount codes, contact IRS/MCC. (In this example, “b” denotes blanks in the designated posi-
tions. Do not enter the letter “b.”)
* Note: A type of return and an amount code must be present in every Payer “A” Record even if no money amounts are
being reported. For a detailed explanation of the information to be reported in each amount code, refer to the 1998 “In-
structions for Forms 1099, 1098, 5498, and W–2G.”
Amount Codes Form 1098 - For Reporting Mortgage Interest Received From Payers/
Mortgage InterestBorrowers (Payer of Record) on Form 1098:
Statement
Amount
Code Amount Type
1 Mortgage interest received from payer(s)/bor-
rower(s)
2Points paid on purchase of principal residence
3Refund (or credit) of overpaid interest
Amount Codes Form 1098–E -For Reporting Interest on Student Loans on Form 1098–E
Student Loan Interest
StatementAmount
Code Amount Type
1Student loan interest received
Amount Codes Form 1098–T -For Reporting Tuition Payments on Form 1098–T
Tuition Payments
StatementAmount
Code Amount Type
1For filer’s use (See Note)
2For filer’s use (See Note)
*Note: When reporting Form 1098–T magnetically/electronically, the filer must use Type of Return Code 8 in position 27,
and Amount Codes 1 and 2 in positions 28 and 29 of the Payer “A” Record. However, if no money is being reported, the pay-
ment amount fields will contain zeros. There is no requirement for filers to report money amounts on Form 1098–T for Tax
Year 1998.
Amount Codes Form 1099–A - For Reporting the Acquisition or Abandonment
Acquisition or Abandonmentof Secured Property on Form 1099–A:
of Secured Property
(See Note)Amount
Code Amount Type
2Balance of principal outstanding
4Fair market value of property
* Note: If, in the same calendar year, a debt is canceled in connection with the acquisition or abandonment of secured
property for one debtor and the filer would be required to file both Forms 1099–A and 1099–C (Cancellation of Debt), the
filer is required to file Form 1099–C only. See the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G” for further in-
formation on coordination with Form 1099–C.
May 26, 1998381998–21 I.R.B.
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

Amount Codes Form 1099–B -For Reporting Payments on Form 1099–B:
Proceeds From
Broker andAmount
Barter Exchange Code Amount Type
Transactions2Stocks, bonds, etc. (For forward contracts, see Note 1)
3Bartering (Do not report negative amounts.)
4Federal income tax withheld (backup withholding) (Do
not report negative amounts.)
6Profit (or loss) realized on closed regulated futures or
foreign currency contracts in 1998 (See Note 2)
7Unrealized profit (or loss) on open contracts-12/31/97
(See Note 2)
8Unrealized profit (or loss) on open contracts-12/31/98
(See Note 2)
9Aggregate profit (or loss) (See Note 2)
* Note 1: The payment amount field associated with Amount Code 2 may be used to report a loss from a closing transac-
tion on a forward contract. Refer to the “B” Record - General Field Descriptions, Payment Amount Fields, for instructions
on reporting negative amounts.
*Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used for the reporting of regulated futures or foreign currency
contracts.
Amount Codes Form 1099–C -For Reporting Cancellation of Debt on Form 1099–C:
Cancellation of Debt
(See Note 1) Amount
CodeAmount 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 calendar year, a debt is canceled in connection with the acquisition or abandonment of secured
property for one debtor and the filer would be required to file both Forms 1099–C and 1099–A (Acquisition or Abandonment
of Secured Property), the filer is required to file Form 1099–C only. See the 1998 “Instructions for Forms 1099, 1098, 5498,
and W–2G” for further information on coordination with Form 1099–A.
* Note 2: Amount Code 7 will be used only if a combined Form 1099–A and 1099–C is being filed.
Amount Codes Form 1099–DIV - For Reporting Payments on Form 1099–DIV:
Dividends and Distributions
Amount
See the 1998 “Instructions forCode Amount Type
Forms 1099, 1098, 5498 and1Ordinary dividends
W–2G” for further information2Total capital gains distributions
on Form 1099–DIV. 328% rate gain
4Unrecaptured section 1250 gain
5Section 1202 gain
6Nontaxable distributions
7Federal income tax withheld (backup withholding)
8Investment expenses
9Foreign tax paid
ACash liquidation distribution
BNoncash liquidation distribution
1998–21 I.R.B.39May 26, 1998
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

Amount Codes Form 1099–G - For Reporting Payments on Form 1099–G:
Certain Government Payments
Amount
Code Amount Type
1Unemployment compensation
2State or local income tax refunds, credits, or offsets
4Federal income tax withheld (backup withholding) or
voluntary withholding on unemployment compensation
or Commodity Credit Corporation Loans, or certain crop
disaster payments
6Taxable grants
7Agriculture payments
Amount Codes Form 1099–INT -For Reporting Payments on Form 1099–INT:
Interest Income
Amount
Code Amount Type
1Interest income not included in Amount Code 3
2Early withdrawal penalty
3Interest on U.S. Savings Bonds and Treasury obligations
4Federal income tax withheld (backup withholding)
5Foreign tax paid
Amount Codes Form 1099–LTC -For Reporting Payments on Form 1099–LTC:
Long-Term Care and
Accelerated Death BenefitsAmount
CodeAmount Type
1Gross long-term care benefits paid
2Accelerated death benefits paid
Amount Codes Form 1099–MISC - For Reporting Payments on Form 1099–MISC:
Miscellaneous Income
Amount
Code Amount Type
1Rents (See Note 1)
2Royalties (See Note 2)
3Other income
4Federal income tax withheld (backup withholding or
withholding on payments of Indian gaming profits)
5Fishing boat proceeds
6Medical and health care payments
7Nonemployee compensation
8Substitute payments in lieu of dividends or interest
ACrop insurance proceeds
BExcess golden parachute payments
CGross proceeds paid to an attorney in connection with
legal services
*Note 1: If reporting the Direct Sales Indicator only in position 547 of the Payee “B” Record, use Type of Return Code A
for 1099–MISC in position 27, and Amount Code 1 in position 28 of the Payer “A” record. All payment amount fields in the
Payee “B” record will contain zeros.
*Note 2: Do not report timber royalties under a “pay-as-cut” contract; these must be reported on Form 1099–S.
May 26, 1998401998–21 I.R.B.
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

Amount CodesForm 1099–MSA -For Reporting Distributions from Medical Savings Accounts
Distributions Fromon Form 1099–MSA:
Medical Savings Accounts
Amount
CodeAmount Type
1Gross distribution
2Earnings on excess contributions
Amount Codes Form 1099–OID -For Reporting Payments on Form 1099–OID:
Original Issue Discount
Amount
Code Amount Type
1Original issue discount for 1998
2Other periodic interest
3Early withdrawal penalty
4Federal income tax withheld (backup withholding)
Amount Codes Form 1099–PATR - For Reporting Payments on Form 1099–PATR:
Taxable Distributions Received From
CooperativesAmount
Code Amount Type
1Patronage dividends
2Nonpatronage distributions
3Per-unit retain allocations
4 Federal income tax withheld (backup withholding)
5Redemption of nonqualified notices and retain alloca-
tions
Pass-Through Credits (See Note)
6For filers’ use for pass through credits
7Investment credit
8Work opportunity credit
9Patron’s alternative minimum tax (AMT) adjustment
*Note: Amount Codes 6, 7, 8, and 9 are reserved for the patron’s share of unused credits that the cooperative is passing
through to the patron. Other credits, such as the Indian employment credit may be reported in Amount Code 6. The title of
the credit reported in Amount Code 6 may be reported in the Special Data Entries Field in the Payee “B” Record. The
amounts shown for Amount Codes 6, 7, 8, and 9 must be reported to the payee. These Amount Codes and the Special Data
Entries Field are for the convenience of the filer. This information is not needed by IRS/MCC.
Amount Codes Form 1099–R -For Reporting Payments on Form 1099–R:
Distributions From
Pensions, Annuities, Amount
Retirement or Profit- Code Amount Type
Sharing Plans, IRAs, 1Gross distribution (See Note 1)
Insurance Contracts, etc. 2Taxable amount (See Note 2)
3Capital gain (included in Amount Code 2)
4Federal income tax withheld (See Note 3)
5Employee contributions or insurance premiums
6Net unrealized appreciation in employer’s securities
8Other
9Total employee contributions
ATraditional IRA/SEP/SIMPLE distribution (See Note 4)
1998–21 I.R.B.41May 26, 1998
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

* Note 1: If the payment shown for Amount Code 1 is a total distribution, enter a “1” (one) in position 549 of the “B”
Record. An amount must be shown in Payment Amount Field 1 unless reporting an amount ONLY in Payment Amount
Field 8. If a distribution is a loss, do not enter a negative amount. For example, if stock is distributed but the value is less
than the employee’s after-tax contributions, enter the value of the stock in Payment Amount Field 1, enter “0” (zero) in Pay-
ment Amount Field 2, and enter the employee’s contributions in Payment Amount Field 5.
*Note 2: If the taxable amount cannot be determined, enter a “1” (one) in position 547 of the “B” Record. For a tradi-
tional IRA, SEP, or SIMPLE distribution, generally enter in Payment Amount Field A the same amount entered in Payment
Amount Field 1.
* Note 3: See the l998 “Instructions for Forms 1099, 1098, 5498, and W–2G” for information concerning Federal income
tax withheld for Form 1099–R.
*Note 4: For Form 1099–R, generally, report the total amount distributed from an IRA, SEP, or SIMPLE in Payment
Amount Field A (IRA/SEP/SIMPLE Distribution), as well as Payment Amount Field 1 (Gross Distribution) of the “B”
Record. Refer to the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G” for exceptions.
Amount Codes Form 1099–S- For Reporting Payments on Form 1099–S:
Proceeds From
Real EstateAmount
Transactions CodeAmount Type
2Gross proceeds (See Note)
5Buyer’s part of real estate tax
*Note: Include payments of timber royalties made under a “pay-as-cut” contract, reportable under section 6050N. If tim-
ber royalties are being reported, enter “TIMBER” in the description field of the “B” record.
Amount Codes Form 5498 - For Reporting Payments on Form 5498:
IRA Contribution Information
(See Note)Amount
CodeAmount Type
1IRA contributions (other than amounts in Amount Codes
2, 3, 7, 9 and A)
2Rollover contributions
3Roth conversion amount
4Fair market value of account
5Life insurance cost included in Amount Code 1
7Employer SEP contributions
8SIMPLE contributions
9Roth IRA contributions
AEducation IRA contributions
* Note: For information regarding Inherited IRAs, refer to the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G”
and Rev. Proc. 89–52, 1989–2 C.B. 632. Beneficiary information must be given in the Payee Name Line Field of the “B”
Record.
If reporting IRA contributions for a Desert Storm/Shield participant for other than 1998 or an Operation Joint Guard
(OJG) (Bosnia Region) participant, enter “DS” for Desert Storm or Joint Endeavor or “JG” for Joint Guard, the year for
which the contribution was made, and the amount of the contribution in the Special Data Entries Field of the “B” Record.
Do not enter the contributions in Amount Code 1. For information concerning Desert Storm/Shield participant reporting,
refer to the 1994 “Instructions for Forms 1099, 1098, 5498, and W–2G,” or Notice 91–17, 1991–1 C.B. 319. The instructions
for filing Form 5498 for Desert Storm/Shield participants will also apply to participants of Joint Endeavor or Operations
Joint Guard (OJG) of the Bosnia Region.
May 26, 1998421998–21 I.R.B.
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

Amount Codes Form 5498–MSA -For Reporting Contributions to Medical Savings Accounts:
Medical Saving Account
InformationAmount
CodeAmount Type
1Employee or self-employed person’s MSA contributions
made in 1998 and 1999 for 1998
2Total MSA contributions made in 1998
3Total MSA contributions made in 1999 for 1998
4MSA rollover contributions (not included in Amount
Code 1, 2, or 3) (See Note 1)
5Fair market value of account (See Note 2)
*Note 1: This is the amount of any rollover made to this MSA in 1998 after a distribution from another MSA. For detailed
information on reporting, see 1998 “Instructions for Forms 1099, 1098, 5498 and W–2G.”
*Note 2: This is the fair market value (FMV) of the account at the end of 1998.
Amount Codes Form W–2G - For Reporting Payments on Form W–2G:
Certain Gambling
WinningsAmount
Code Amount Type
1Gross winnings
2Federal income tax withheld
7Winnings from identical wagers
40–47 Blank8Enter blanks.
48Original File1Required for original files only. Enter “1” (one) if the informa-
Indicatortion is original data. Otherwise, enter a blank.
49 Replacement 1 Required for replacement files only.Enter “1” (one) if the purpose
File Indicatorof this file is to replace a file that IRS/MCC returned to the transmit-
ter due to errors encountered in processing. This is a file that has not
been successfully processed by IRS. Otherwise, enter a blank.
50 Correction1Required for correction files only.Enter “1” (one) if the purpose
File Indicatorof this file is to correct information which was previously submitted
to IRS/MCC, was processed, but contained erroneous information.
Do not submit original information as corrections. Any information
return which was inadvertently omitted from a file must be submit-
ted as original. Otherwise, enter a blank.
51Blank1Enter a blank.
52 Foreign 1Enter a “1” (one) if the payer is a foreign entity and income is
Entity paid by the foreign entity to a U. S. resident. If the payer is
Indicator not a foreign entity, enter a blank(SeeNote).
*Note: If payers report the Foreign Entity Indicator erroneously, they may be subject to a penalty for providing incorrect
information to IRS.
1998–21 I.R.B.43May 26, 1998
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

53–92 First 40Required.Enter the name of the payer whose TIN appears in posi-
Payer Name tions 12–20 of the “A” Record. Any extraneous information must
Line be deleted. Left justify information, and fill unused positions with
blanks. (Filers should not enter a transfer agent’s name in this field.
Any transfer agent’s name should appear in the Second Payer Name
Line Field.)
*Note: When reporting Form 1098, Mortgage Interest Statement, and Form 1098–E, Student Loan Interest Statement,
the “A” Record will reflect the name and TIN of the recipient of the interest or payment, the filer of Forms 1098 and 1098–E
(the payer). The “B” Record will reflect the individual paying the interest (the borrower/payer of record) and the amount
paid. For Form 1099–S, the “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. When reporting Form 1098–T, Tuition Payments State-
ment, the “A” Record will reflect the name and TIN of the educational institution receiving tuition payments. The “B”
Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.
93–132 Second 40If the Transfer (or Paying) Agent Indicator (position 133) contains
Payer Namea “1” (one), this field must contain the name of the transfer (or pay-
Line ing) agent. If the indicator contains a “0” (zero), this field may con-
tain either a continuation of the First Payer Name Line or blanks.
Left justify information and fill unused positions with blanks.
133Transfer Agent 1Required.Identifies the entity in the Second Payer Name Line
Indicator Field. (See Part A, Sec. 17 for a definition of transfer agent.)
Code Meaning
1The 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 either a
continuation of the First Payer Name Line Field or
blanks).
134–173 Payer Shipping40Required.If the Transfer Agent Indicator in position 133 is a “1”
Addres(one), enter the shipping address of the transfer (or paying) agent.
Otherwise, enter the actualshipping 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 in-
formation, and fill unused positions with blanks.
For U.S. addresses,the payer city, state, and ZIP code must be reported as a 40, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payer city, state, and ZIP code.
For foreign addresses,filers may use the payer city, state, and ZIP code as a continuous 51 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 52 must contain a “1” (one).
174–213 Payer City40Required. If the Transfer Agent Indicator in position 133 is a “1”
(one), enter the city, town, or post office of the transfer agent. Other-
wise, enter the city, town, or post office of the payer. Left justify in-
formation, and fill unused positions with blanks. Do not enter state
and ZIP code information in this field.
May 26, 1998441998–21 I.R.B.
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

214–215Payer State 2Required. Enter the valid U.S. Postal Service state abbreviations for
states. Refer to the chart of valid state abbreviations in Part A,
Sec.18.
216–224Payer ZIP9Required. Enter the valid nine digit ZIP code assigned by the U.S.
CodePostal Service. If only the first five digits are known, left justify in-
formation and fill the unused positions with blanks. For foreign
countries, alpha characters are acceptable as long as the filer has en-
tered a “1” (one) in the Foreign Entity Indicator, located in Field Po-
sition 52 of the “A” Record.
225–239Payer’s Phone15Enter the payer’s phone number and extension.
Number &
Extension
240–748Blank509Enter blanks.
749–750Blank 2Enter blanksor carriage return/line feed (CR/LF) characters.
Sec. 9. Payer “A” Record - Record Layout
12–56–1112–2021–2425
262728–3940–47484950
5152 53–9293–132133134–173
174–213214–215216–224225–239240–748749–750
Sec. 10. Payee “B” Record - General Field Descriptions and Record Layouts
.01The “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 750 positions. The record layout for field positions 1 through 543
is the same for all types of returns. Field positions 544 through 750 vary for each type of return to accommodate special fields for in-
dividual forms. In the “A” Record, the amount codes that appear in field positions 28 through 39 will be left-justified and filled with
blanks. In the “B” Record, the filer mustallow for all twelve 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 27 of the “A” Record, Type of Return. If re-
1998–21 I.R.B.45May 26, 1998
Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field
Record
Type
Payment
Year
Blank
Payer’s
TIN
Payer Name
Control
Last Filing
Indicator
Combined
Federal/State
Filer
Type
of
Return
Amount
Codes
Blank
Original
File
Indicator
Replacement
File
Indicator
Correction
File
Indicator
Blank
Foreign
Entity
Indicator
First
Payer Name
Line
Second
Payer Name
Line
Transfer
Agent
Indicator
Payer
Shipping
Address
Payer
City
Payer
State
Payer
ZIP
Code
Payer’s Phone
Number and
Extension
Blank
Blank or
CR/LF

porting payments for Amount Codes 1, 2, 4, 7, A and C, the payer would report field positions 28 through 39 of the “A” Record as
“1247ACbbbbbb.” (In this example, “b” denotes blanks. Do not enter the letter “b”.) In the “B” Record:
Positions 55 through 66 for Payment Amount 1will represent rents.
Positions 67–78 for Payment Amount 2will represent royalties.
Positions 79–90 for Payment Amount 3will be “0’s” (zeros).
Positions 91–102 for Payment Amount 4will represent Federal income tax withheld.
Positions 103–126 for Payment Amounts 5 and 6will be “0’s” (zeros).
Positions 127–138 for Payment Amount 7will represent nonemployee compensation.
Positions 139–162 for Payment Amounts 8 and 9will be “0’s” (zeros).
Positions 163–174 for Payment Amount Awill represent crop insurance proceeds.
Positions 175–186 for Payment Amount B will be “0’s” (zeros).
Positions 187–198 for Payment Amount Cwill represent gross proceeds paid to an attorney in connection with legal services.
.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.
(a) If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Com-
pliance with the following will facilitate IRS computer programs in identifying the correct name control:
(1)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.
(2) In the case of multiple payees, only the surname of the payee whose TIN (SSN, EIN, ITIN, or ATIN) 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.
.03See Part A, Sec. 14 for further information concerning Taxpayer Identification Numbers (TINs).
.04For all fields marked “Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked “Required,”the transmitter must allow for the field, but may be instructed to enter blanks or zeros in
the indicated field position(s) and for the indicated length.
.05 All records must be a fixed length of 750 positions.
.06 A field is also provided in these specifications for Special Data Entries. This field may be used to record information required
by state or local governments, or for the 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. This field will not affect the processing of the “B” Records.
.07Following the Special Data Entries Field in the “B” Record, payment fields have been allocated for State Income Tax With-
held and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by
IRS/MCC.
.08Those 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, 1098–E, 1098–T, 1099–A, 1099–B, 1099–C, 1099–LTC,
1099–MSA, 1099–S, 5498–MSA, and W–2G under the Combined Federal/State Filing Program.
.09All alpha characters in the “B” Record must be uppercase.
.10 Do notuse decimal points (.) to indicate dollars and cents. Ten dollars must appear as 000000001000 in the payment amount
field.
.11IRS 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.
.12When reporting Form 1098, Mortgage Interest Statement and Form 1098–E, Student Loan Interest Statement, the “A” Record
will reflect the name and TIN of the recipient of the interest or payment, the filer of the Forms 1098 and 1098–E (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. When reporting Form 1098–T, Tuition Payments Statement, the “A” Record will reflect the name and TIN of
the educational institution receiving tuition payments. The “B” Record will reflect the name and TIN of the student on whose behalf
the tuition is being paid.
Record Name: Payee “B” Record
Field
PositionField TitleLengthDescription and Remarks Field
1 Record Type 1 Required.Enter “B.”
May 26, 1998461998–21 I.R.B.

2–5 Payment Year 4 Required. Enter “1998” (unless reporting prior year data).
6 Corrected 1 Required for corrections only. Indicate a corrected return.
Return
Indicator Code Definition
(SeeNote)G If this is a one-transaction correction or the first of a two-
transaction correction
C If this is the second transaction of a two transaction cor-
rection
BlankIf this is not a return being submitted to correct informa-
tion already processed by IRS.
* Note: C, G, and non-coded records must be reported using separate Payer “A” Records. Refer to Part A, Sec. 13, for spe-
cific instructions on how to file corrected returns.
7–10 Name Control 4If determinable, enter the first four characters of the surname of the
person whose TIN is being reported in positions 12–20 of the “B”
Record; otherwise, enter blanks. This usually is the payee. If the
name that corresponds to the TIN is not included in the first or sec-
ond payee name line and the correct name control is not provided, a
backup withholding notice may be generated for the record. Sur-
names of less than four 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. A dash (–) and
an ampersand (&) are the only acceptable special characters. Sur-
name prefixes are considered part of the surname, e.g., for Van Elm,
the name control would be VANE.
*Note: Although extraneous words, titles, and special characters are allowed (i.e., Mr., Mrs., Dr., apostrophe [‘], or dash
[–]), this information may be dropped during subsequent IRS/MCC processing.
The following examples may be helpful to filers in developing the Name Control:
Name Name Control
Individuals:
Jane Brown BROW
John A. LeeLEE*
James P.En,Sr. EN*
John O’Neill ONEI
Mary Van Buren VANB
Juan De JesusDEJE
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 Pham PHAM
Mark D’Allesandro DALL
1998–21 I.R.B.47May 26, 1998
Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

Corporations:
The First National Bank FIRS
The Hideaway THEH
A & B Cafe A&BC
11THStreet Inc. 11TH
Sole Proprietor:
Mark Hemlock DBA
The Sunshine Club HEML
Partnership:
RobertAspen
and Bess Willow ASPE
Harold Fir,Bruce Elm,
and Joyce Spruce et al PtrFIR*
Estate:
Frank White EstateWHIT
Estate of Sheila BlueBLUE
Trusts and Fiduciaries:
Daisy Corporation Employee
Benefit TrustDAIS
Trust FBO The Cherryblossom
SocietyCHER
Exempt Organization:
Laborer’s Union, AFL-CIO LABO
St. Bernard’s Methodist
Church Bldg. FundSTBE
*Name Controls of less than four 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.
11 Type of TIN1 This field is used to identify the Taxpayer Identification Number
(TIN) in positions 12–20 as either an Employer Identification Num-
ber (EIN), a Social Security Number (SSN), an Individual Taxpayer
Identification Number (ITIN) or an Adoption Taxpayer Identification
Number (ATIN). Enter the appropriate code from the following
table:
CodeType of TIN Type of Account
1 EIN A business, organization, sole propri-
etor, or other entity
2 SSN An individual, including a sole propri-
etor
or
2 ITINAn individual required to have a tax-
payer identification number, but who
is not eligible to obtain an SSN
or
2ATINAn adopted individual prior to the as-
signment of a social security number
Blank N/AIf the type of TIN is not determinable,
enter a blank
May 26, 1998481998–21 I.R.B.
Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

12–20 Payee’s 9 Required.Enter the nine digit Taxpayer Identification Number of
Taxpayerthe payee (SSN, ITIN, ATIN, or EIN). If an identification number
Identificationhas been applied for but not received, enter blanks. Do not enter
Number (TIN)hyphens or alpha characters. All zeros, ones, twos, etc., will have the
effect of an incorrect TIN. If the TIN is not available, enter blanks
(See Note).
* Note: IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that
could result in penalties. Payers who submit data with missing TINs, and have taken the required steps to obtain this infor-
mation are encouraged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact
from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or CP2100A Notices) or penalties
for missing or incorrect TINs.
21–40 Payer’s 20Enter any number assigned by the payer to the payee (e.g., checking
Account Number or savings account number). Filers are encouraged to use this
For Payeefield. This number helps to distinguish individual payee records and
should be unique for each document. Do not use the payee’s TIN
since this will not make each record unique. This information is par-
ticularly useful when corrections are filed. This number will be pro-
vided with the backup withholding notification and may be helpful
in identifying the branch or subsidiary reporting the transaction. Do
not define data in this field in packed decimal format. If fewer than
twenty characters are used, filers may either left or right justify, fill-
ing the remaining positions with blanks.
41–44Payer’s Office4Enter office code of payer; otherwise, enter blanks. For payers with
Codemultiple locations, this field may be used to identify the location of
the office submitting the information return.
45–54Blank10Enter blanks.
PaymentRequired. Filers should allow for all payment amounts. For
Amount Fields those not used, enter zeros.For example: If position 27, Type of
(Must be numeric)Return, of the “A” Record, is “A” (for 1099–MISC) and posi-
(See Note)tions 28–39, Amount Codes, are “1247ACbbbbbb”. This indicates
the payer is reporting any or all six payment amounts in all of the fol-
lowing “B” Records. (In this example, “b” denotes blanks in the
designated positions. Do not enter the letter “b.”) Payment Amount
1 will represent rents; Payment Amount 2 will represent royalties;
Payment Amount 3 will be all “0’s” (zeros); Payment Amount 4 will
represent Federal income tax withheld; Payment Amounts 5 and 6
will be all “0’s” (zeros); Payment amount 7 will represent nonem-
ployee compensation; Payment Amounts 8 and 9 will be all “0’s”
(zeros); Payment Amount A will represent crop insurance proceeds;
Payment Amount B will be all “0’s (zeros); and Payment Amount C
will represent gross proceeds paid to an attorney in connection with
legal services. Each payment field must contain 12 numeric charac-
ters. Each payment amount must contain U.S. dollars and cents.
The right-most two positions represent cents in the payment amount
fields. Do not enter dollar signs, commas, decimal points, or nega-
tive payments, except those items that reflect a loss on Form
1099–B. Positive and negative amounts are indicated by placing a
“+” (plus) or “–” (minus) sign in the left-most position of the pay-
ment amount field. A negative over punch in the units position may
1998–21 I.R.B.49May 26, 1998
Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

be used, instead of a minus sign, to indicate a negative amount. If a
plus sign, minus sign, or negative over punch is not used, the number
is assumed to be positive. Negative over punch cannot be used in PC
created files. Payment amounts must be right-justified and unused
positions must be zero-filled. Federal income tax withheld cannot
be reported as a negative amount on any form.
*Note: Filers must enter numeric information in all payment fields when filing magnetically or electronically. However,
when reporting information on the statement to recipient, the payer may be instructed to leave a box blank. Follow the
guidelines provided in the paper instructions for the statement to recipient.
55–66 Payment 12The amount reported in this field represents payments for Amount
Amount 1* Code 1 in the “A” Record.
67–78 Payment 12The amount reported in this field represents payments for Amount
Amount 2* Code 2 in the “A” Record.
79–90 Payment 12The amount reported in this field represents payments for Amount
Amount 3* Code 3 in the “A” Record.
91–102 Payment 12 The amount reported in this field represents payments for Amount
Amount 4* Code 4 in the “A” Record.
103–114 Payment 12The amount reported in this field represents payments for Amount
Amount 5* Code 5 in the “A” Record.
115–126 Payment 12The amount reported in this field represents payments for Amount
Amount 6*Code 6 in the “A” Record.
127–138 Payment 12The amount reported in this field represents payments for Amount
Amount 7*Code 7 in the “A” Record.
139–150 Payment12The amount reported in this field represents payments for Amount
Amount 8* Code 8 in the “A” Record.
151–162 Payment12The amount reported in this field represents payments for Amount
Amount 9* Code 9 in the “A” Record.
163–174 Payment 12 The amount reported in this field represents payments for Amount
Amount A*Code A in the “A” Record.
175–186 Payment 12The amount reported in this field represents payments for Amount
Amount B* Code B in the “A” Record.
187–198 Payment12The amount reported in this field represents payments for Amount
Amount C* Code C in the “A” Record.
*If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this rev-
enue procedure govern.
199–246 Reserved 48Enter blanks.
247 Foreign 1 If the address of the payee is in a foreign country, enter a “1”
Country (one) in this field;otherwise, enter blank. When filers use this
Indicatorindicator, they may use a free format for the payee city, state, and
May 26, 1998501998–21 I.R.B.
Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

ZIP Code. Address information must not appear in the First or Sec-
ond Payee Name Line.
248–287 First Payee 40 Required. Enter the name of the payee (preferably surname first)
Name Line whose Taxpayer Identification Number (TIN) was provided in
(See Notes)positions 12–20 of the “B” Record. Left justify and fill unused posi-
tions with blanks. If more space is required for the name, utilize the
Second Payee Name Line Field. If there are multiple payees, only
the name of the payee whose TIN has been provided should be en-
tered 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 individual’s name must always be present, prefer-
ably 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, and Form 1098–E, Student Loan Interest Statement,
the “A” Record will reflect the name and TIN of the recipient of the interest or payment, the filer of Forms 1098 and 1098–E
(the payer). The “B” Record will reflect the individual paying the interest (the borrower/payer of record) and the amount
paid. For Form 1099–S, the “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. When reporting Form 1098–T, Tuition Payments State-
ment, the “A” Record will reflect the name and TIN of the educational institution receiving tuition payments. The “B”
Record will reflect the name and TIN of the student on whose behalf the tuition is being paid.
*Note 2: For Form 5498, Inherited IRAs, enter the beneficiary’s name followed by the word “beneficiary.” For example,
“Brian Young as beneficiary of Joan Smith” or something similar that signifies that the IRA was once owned by Joan Smith.
Filers may abbreviate the word “beneficiary” as, for example, “benef.” Refer to the 1998 “Instructions for Forms 1099,
1098, 5498, and W–2G.” The beneficiary’s TIN must be reported in positions 12–20 of the “B” Record.
*Note 3: When reporting Form 1099–LTC, Long-Term Care and Accelerated Death Benefits, the Payee Name Line of the
“B” Record will reflect the policyholder. The name of the insured will be reported in Field Positions 557–596 of the Payee
“B” Record.
*Note 4: End First Payee Name Line with a full word. Do not split words.
288–327 Second Payee 40If there are multiple payees, (e.g., partners, joint owners, or spouses),
Name Line use this field for those names not associated with the TIN provided
in positions 12–20 of the “B” Record or if not enough space was pro-
vided in the First Payee Name Line, continue the name in this field
(See Note). Do not enter address information.It is important that
filers provide as much payee information to IRS/MCC as possible to
identify the payee associated with the TIN. Left justify and fill un-
used positions with blanks. Fill with blanks if no entries are pre-
sent for this field.
* Note: End First Payee Name Line with a full word. Do not split words. Begin Second Payee Name Line with the next se-
quential word.
328–367Blank40Enter blanks.
368–407 Payee Mailing 40 Required. Enter mailing address of payee. Street address should
Address include number, street, apartment or suite number (or P.O. Box if
mail is not delivered to street address). Left justify information and
fill unused positions with blanks. This field must not contain any
data other than the payee’s mailing address.
1998–21 I.R.B.51May 26, 1998
Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field

For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payee city, state, and ZIP Code.
For foreign addresses,filers may use the payee city, state, and ZIP Code as a continuous 51 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 247 must contain a “1” (one).
408–447Blank 40Enter blanks.
448–487 Payee City 40 Required.Enter the city, town or post office. Left justify informa-
tion and fill the unused positions with blanks. Enter APO or FPO if
applicable. Do not enter state and ZIP Code information in this field.
488–489 Payee State 2 Required.Enter the valid U.S. Postal Service state abbreviations for
states or the appropriate postal identifier (AA, AE, or AP) described
in Part A, Sec. 18.
490–498 Payee ZIP Code 9 Required.Enter the valid nine digit ZIP Code assigned by the U.S.
Postal Service. If only the first five digits are known, left justify in-
formation and fill the unused positions with blanks. For foreign
countries, alpha characters are acceptable as long as the filer has en-
tered a “1” (one) in the Foreign Country Indicator, located in posi-
tion 247 of the “B” Record.
499–543Blank45Enter blanks.
Standard Payee “B” Record Format For All Types of Returns, Positions 1–543
12–567–101112–20 21–40
41–44 45–54 55–66 67–7879–9091–102103–114
115–126127–138 139–150151–162 163–174175–186
187–198199–246247248–287288–327328–367
May 26, 1998521998–21 I.R.B.
Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks Field
Record
Type
Payment
Year
Corrected
Return
Indicator
Name
Control
Type of
TIN
Payee’s
TIN
Payer’s
Account
Number
Payer’s
Office
Code
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
Payment
Amount A
Payment
Amount B
Payment
Amount C
Reserved
Foreign
Country
Indicator
First Payee
Name Line
Second Payee
Name Line
Blank

368–407408–447448–487488–489 490–498499–543
The following sections define the field positions for the different types of returns in the Payee “B” Record (positions
544–750):
(l) Forms 1098, 1098–E, and 5498–MSA
(2) Form 1098–T
(3) Form 1099–A
(4) Form 1099–B
(5) Form 1099–C
(6) Form 1099–DIV*
(7) Form 1099–G*
(8) Form 1099–INT*
(9) Form 1099–LTC
(10) Form 1099–MISC*
(11) Form 1099–MSA
(12) Form 1099–OID*
(13) Form 1099–PATR*
(14) Form 1099–R*
(15) Form 1099–S
(16) Form 5498*
(17) Form W–2G
* These forms may be filed through the Combined Federal/State Filing Program. IRS/MCC will forward these records to participat-
ing states for filers who have been approved for the program. See Part A, Sec. 16 for information about the program, including spe-
cific codes for the record layouts.
(1) Payee “B” Record - Record Layout Positions 544–750 for Forms 1098, 1098–E, and 5498–MSA
Field
PositionField TitleLengthDescription and Remarks Field
544–662 Blank 119Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank 2Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 or Forms 1098, 1098–E, in 5498–MSA
544–662663–722723–748749–750
1998–21 I.R.B.53May 26, 1998
Payee
Mailing
Address
Blank
Payee
City
Payee
State
Payee
ZIP Code
Blank
Blank
Special
Data
Entries
Blank
Blank
or CR/LF
Record Name: Payee “B” Record (Continued)

(2) Payee “B” Record - Record Layout Positions 544–750 for Form 1098–T
Field
PositionField TitleLengthDescription and Remarks Field
544–546 Blank 3Enter blanks.
547Status of1Enter the appropriate indicator from the table below:
Student
IndicatorIndicatorUsage
1Student is carrying at leastone-half the normal
full-time work load for course of study.
BlankStudent is carrying less thanone-half the normal
full-time work load for course of study.
548Graduate 1Enter the appropriate indicator from the table below:
Student
IndicatorIndicatorUsage
1Student is enrolled exclusively in a graduate level
program.
BlankStudent is enrolled in an undergraduate level pro-
gram.
549–662Blank114Enter blanks.
663–722 Special Data 60 This portion of the “B” Record may be used to record information
Entries for state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for the filing requirements. If this field is not utilized, enter blanks.
723–748Blank 26Enter blanks.
749–750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 1098–T
544–546547548549–662663–722 723–748749–750
(3) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–A
Field
PositionField TitleLengthDescription and Remarks Field
544–546 Blank 3 Enter blanks.
547Personal1Enter the appropriate indicator from the table below:
Liability
IndicatorIndicator Usage
1Borrower was personally liable for repayment of the
debt.
BlankBorrower was not personally liable for repayment of
the debt.
May 26, 1998541998–21 I.R.B.
Blank
Status of
Student
Indicator
Graduate
Student
Indicator
Blank
Special
Data
Entries
Blank
Blank or
CR/LF

548–555Date of8Enter the acquisition date of the secured property or the data the
Lender’slender first knew or had reason to know the property was
Acquisition orabandoned, in the format YYYYMMDD (i.e., 19981022). Do
Knowledge ofnot enter hyphens or slashes.
Abandonment
556–594 Description 39 Enter a brief description of the property. For real property, enter
of Property the address, or, if the address does not sufficiently identify the prop-
erty, enter the section, lot and block. For personal property, enter the
type, make and model (e.g., Car-1997 Buick Regal or office equip-
ment). Enter “CCC” for crops forfeited on Commodity Credit Cor-
poration loans. If fewer than 39 positions are required, left justify in-
formation and fill unused positions with blanks.
595–662 Blank 68 Enter blanks.
663–722 Special Data 60 This portion of the “B” Record may be used to record information
Entries for state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for the filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750Blank2Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 1099–A
544–546547 548–555556–594595–662
663–722723–748749–750
(4) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–B
Field
PositionField TitleLengthDescription and Remarks Field
544Second TIN1Enter “2” to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN com-
(Optional)bination; otherwise, enter a blank.
545–546 Blank 2 Enter blanks.
547 Gross 1 Enter the appropriate indicator from the following table, to identify
Proceeds amount reported in Amount Code 2; otherwise enter blanks.
Indicator
1998–21 I.R.B.55May 26, 1998
(3) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–A (Continued)
Field
PositionField TitleLengthDescription and Remarks Field
Blank
Personal
Liability
Indicator
Date of Lender’s
Acquisition or
Knowledge of
Abandonment
Description
of
Property
Blank
Special
Data
Entries
Blank
Blank or
CR/LF

(4) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–B (Continued)
Field
PositionField TitleLengthDescription and Remarks Field
Indicator Usage
1Gross proceeds
2Gross proceeds less commissions and option premi-
ums
548–555 Date of Sale8For 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 in the format YYYYM-
MDD (e.g., 19981022). Enter blanks if this is an aggregate transac-
tion. Do not enter hyphens or slashes.
556–568 CUSIP Number13For broker transactions only, enter the CUSIP (Committee on Uni-
form Security Identification Procedures) number of the item reported
for Amount Code 2 (stocks, bonds, etc.). Enter blanks if this is an
aggregate transaction. Enter “0s” (zeros) if the number is not avail-
able. Right justify information and fill unused positions with blanks.
569–607 Description 39 If fewer than 39 characters are required, left justify information and
fill unused positions with blanks. For broker transactions, enter a
brief description of the disposition item (e.g., 100 shares of XYZ
Corp.). For regulated futures and forward contracts, enter “RFC” or
other appropriate description and any amount subject to backup
withholding (See Note). For bartering transactions, show the ser-
vices or property provided.
*Note: The amount withheld in these situations is to be included in Amount Code 4.
608–662Blank 55Enter blanks.
663–722 Special Data 60 This portion of the “B” Record may be used to record information
Entries for state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers.
Tax Withheld 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 Field.
735–746Local Income 12Local income tax withheld is for the convenience of the filers.
Tax Withheld 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.
747–748 Blank2 Enter blanks.
749–750Blank 2Enter blanks,or carriage return/line feed (CR/LF) characters.
May 26, 1998561998–21 I.R.B.

Payee “B” Record - Record Layout Positions 544–750 for Form 1099–B
544545–546547 548–555556–568569–607
608–662 663–722723–734735–746747–748749–750
(5) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–C
Field
PositionField TitleLengthDescription and Remarks Field
544–546 Blank 3 Enter blanks.
547Bankruptcy1Enter “1” (one) to indicate the debt was discharged in bankruptcy,
Indicatorif known.
Indicator Usage
1Debt wasdischarged in bankruptcy.
BlankDebt was notdischarged in bankruptcy.
548–555Date Canceled 8Enter the date the debt was canceled in the format of YYYYMMDD
(i.e., 19981022). Do not enter hyphens or slashes.
556–594Debt Description39Enter 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–A is being filed, also enter a description of the property.
595–662Blank68Enter blanks.
663–722 Special Data 60 This portion of the “B” Record may be used to record information
Entries for state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–748 Blank 26 Enter blanks.
749–750Blank2Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 1099–C
544–546547548–555556–594595–662 663–722
1998–21 I.R.B.57May 26, 1998
Second
TIN
Notice
(Optional)
Blank
Gross
Proceeds
Indicator
Date of
Sale
CUSIP
Number
Description
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Blank
Blank
or
CR/LF
Blank
Bankruptcy
Indicator
Date
Canceled
Debt
Description
Blank
Special
Data
Entries

723–748749–750
(6) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–DIV
Field
PositionField TitleLengthDescription and Remarks Field
544Second TIN1Enter “2” to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN
(Optional)combination; otherwise, enter a blank.
545–546 Blank 2Enter blanks.
547–586Foreign Country40Enter the name of the foreign country or U.S.possession to which the
or U.S.withheld foreign tax applies. If in the United States, enter
Possession.blanks.
587–662Blank 76Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/ Combined Federal/State Filing Program, enter the valid state
State Code code from Part A, Sec. 16, Table 1. For those payers or states not par-
ticipating in this program, enter blanks.
749–750 Blank 2 Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 1099–DIV
544545–546547–586587–662663–722
May 26, 1998581998–21 I.R.B.
Blank
Blank
or CR/LF
Second
TIN
Notice
(Optional)
Blank
Foreign
Country
or U.S.
Possession
Blank
Special
Data
Entries
Payee “B” Record - Record Layout Positions 544–750 for Form 1099–C (Continued)

Payee “B” Record - Record Layout Positions 544–750 Form 1099–DIV (Continued)
723–734735–746747–748749–750
(7) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–G
Field
PositionField TitleLengthDescription and Remarks Field
544–546 Blank 3Enter blanks.
547Trade or1Enter “1” (one) to indicate the state or local income tax refund,
Business credit, or offset (Amount Code 2) applies to income from a trade or
Indicatorbusiness.
Indicator Usage
1Income tax refund is income from a trade or business.
BlankIncome tax refund is a general tax refund.
548–551Tax Year 4Enter the tax year for which the refund, credit, or offset (Amount
of RefundCode 2) was issued. The tax year must reflect the year for which
the payment was made, not the tax year of the Form 1099–G.
The tax year must be in the four position format of YYYY(i.e.
1998). The valid range of years for the refund is 1988 through 1997.
552–662Blank 111Enter blanks.
663–722 Special Data 60 This portion of the “B” Record may be used to record information
Entries for state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheld 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 Field.
735–746Local Income 12Local income tax withheld is for the convenience of the filers. This
Tax Withheld 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.
747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/State CodeCombined Federal/State Filing Program, enter the valid state code
from Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749–750Blank2Enter blanks,or carriage return/line feed (CR/LF) characters.
1998–21 I.R.B.59May 26, 1998
State
Income Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State Code
Blank
or CR/LF

Payee “B” Record - Record Layout Positions 544–750 for Form 1099–G
544–546547548–551552–662663–722723–734
735–746747–748749–750
(8) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–INT
Field
Position Field TitleLengthDescription and Remarks
544Second TIN1Enter “2” to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN com-
(Optional)bination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547–586Foreign Country40Enter the name of the foreign country or U.S. possession to which
or U.S. the withheld foreign tax applies. If in the United States, enter
Possessionblanks.
587–662Blank 76Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. You may enter your routing and transit num-
ber (RTN) here. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/State CodeCombined Federal/State Filing Program, enter the valid state code
from Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749–750 Blank2Enter blanks,or carriage return/line feed (CR/LF) characters.
May 26, 1998601998–21 I.R.B.
Blank
Trade or
Business
Indicator
Tax Year
of
Refund
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State
Code
Blank
or CR/LF

Payee “B” Record - Record Layout Positions 544–750 for Form 1099–INT
544545–546547–586587–662663–722723–734
735–746747–748749–750
(9) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–LTC
Field
Position Field TitleLengthDescription and Remarks
544–546Blank 3Enter blanks.
547Type of 1Required. Enter the appropriate indicator from the following
Paymenttable, otherwise,enter blanks.
Indicator
IndicatorUsage
1Per diem
2Reimbursed amount
548–556 Taxpayer9Required.Enter the Taxpayer Identification Number of the isured.
Identification
Number of
Insured
557–596Name of40Required.Enter the name of the insured.
Insured
597–636Mailing 40Required.Enter the mailing address of the insured. Street address
Address should include number, street, apartment or suite number (or
of InsuredP.O. Box if not delivered to street address). Left justify information
and fill unused positions with blanks. This field must notcontain
any other data other than payee’s mailing address.
For U.S. addresses,the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payee city, state, and ZIP Code.
For foreign addresses,filers may use the insured’s city, state, and ZIP Code as a continuous 51 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 For-
eign Country Indicator in position 247 must contain a “1” (one).
637–676City of 40Required.Enter the city, town, or post office. Left justify informa-
Insuredtion and fill the unused positions with blanks. Enter APO or FPO if
applicable, do not enter state and Zip Code information in this field.
677–678State of2Required.Enter the valid U.S. Postal Service state abbreviations
Insuredfor states or the appropriate postal identifier (AA, AE, or AP) de-
scribed in Part A, Sec. 18.
1998–21 I.R.B.61May 26, 1998
Second
TIN
Notice
(Optional)
Blank
Foreign
Country
or U.S.
Possession
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State
Code
Blank
or CR/LF

(9) Payee “B” Record—Record Layout Positions 544–750 for Form 1099–LTC (Continued)
Field
Position Field TitleLengthDescription and Remarks
679–687ZIP Code9Required.Enter the valid nine digit ZIP Code assigned by the U.S.
of Insured Postal Service. If only the first five digits are known, left justify in-
formation and fill the unused positions with blanks. For foreign
countries, alpha characters are acceptable as long as the filer has en-
tered a “1” (one) in the Foreign Country Indicator, located in posi-
tion 247 of the “B” Record.
688Status of1Enter the appropriate code from the table below to indicate the
Illnessstatus of the illness of the insured; otherwise, enter blank:
Indicator
(Optional)Indicator Usage
1Chronically ill
2Terminally ill
689–696Date 8Enter the latest date of a doctor’s certification of the status of the in-
Certifiedsured’s illness. The format of the date is YYYYMMDD (e.g.,
(Optional)19981022).
697–722Blank26Enter blanks.
723–734State Income12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right justified and unused positions must be zero-
filled.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right justified and unused positions must be zero-
filled.
747–748 Blank 2 Enter blanks.
749–750Blank 2Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record—Record Layout Positions 544–750 for Form 1099–LTC
544–546547548–556557–596597–636637–676677–678679–687
688689–696697–722723–734735–746747–748749–750
May 26, 1998621998–21 I.R.B.
Blank
Type of
Payment
Indicator
TIN of
Insured
Name of
Insured
Mailing
Address
of
Insured
City of
Insured
State of
Insured
ZIP Code
of Insured
Status of
Illness
Indicator
(Optional)
Date
Certified
(Optional)
Blank
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Blank
Blank
or CR/LF

(10) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–MISC
Field
PositionField TitleLengthDescription and Remarks Field
544Second TIN1Enter “2” to indicate notification by IRS twice within three calender
Noticeyears that the payee provided an incorrect name and/or TIN com-
(Optional)bination; otherwise, enter a blank.
545–546 Blank 2Enter blanks.
547Direct Sales1Enter a “1” (one) to indicate sales of $5,000 or more of consumer
Indicatorproducts to a person on a buy/sell, deposit/commission, or any other
(SeeNote)commission basis for resale anywhere other than in a permanent re-
tail establishment. Otherwise,enter a blank.
* Note: If reporting a direct sales indicator only, use Type of Return ”A” in Field Position 27, and Amount Code 1 in Field
Position 28 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros.
548–662Blank115Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/State Code Combined Federal/State Filing Program, enter the valid state code
from Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749–750 Blank 2 Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record—Record Layout Positions 544–750 for Form 1099–MISC
544545–546547548–662663–722723–734735–746
47–748749–750
1998–21 I.R.B.63May 26, 1998
Second
TIN
Notice
(Optional)
Blank
Direct
Sales
Indicator
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State
Code
Blank
or CR/LF

(11) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–MSA
Field
Position Field TitleLengthDescription and Remarks
544Blank1Enter blank.
545Document 1Required.Enter the applicable code to indicate the type of payment.
Specific/
DistributionCodeCategory
Code1Normal distribution
2Excess contributions
3Disability
4Death
5Prohibited transaction
546–662Blank117Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748 Blank 2 Enter blanks.
749–750 Blank 2 Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record—Record Layout Positions 544–750 for Form 1099–MSA
544545546–662663–722723–734735–746
747–748749–750
May 26, 1998641998–21 I.R.B.
Blank
Document
Specific/
Distribution
Code
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Blank
Blank
or CR/LF

(12) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–OID
Field
PositionField TitleLengthDescription and Remarks Field
544Second TIN1Enter “2” to indicate notification by IRS twice within three
Noticecalendar years that the payee provided an incorrect name and/or
(Optional)TIN combination; otherwise, enter a blank.
545–546 Blank 2Enter blanks.
547–585 Description 39 Required. Enter the CUSIP number, if any. If there is no CUSIP
number, enter the abbreviation for the stock exchange and issuer, the
coupon rate, and year (must be 4 digit year)of maturity (e.g.,
NYSE XYZ 12 1/2 1999). Show the name of the issuer if other
than the payer. If fewer than 39 characters are required, left justify
information and fill unused positions with blanks.
586–662Blank77Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/ Combined Federal/State Filing Program, enter the valid state code
State Code from Part A, Sec. 16, Table l. For those payers or states not partici-
pating in this program, enter blanks.
749–750 Blank 2 Enter blanksor carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 1099–OID
544545–546547–585586–662663–722723–734
735–746747–748749–750
1998–21 I.R.B.65May 26, 1998
Second
TIN
Notice
(Optional)
BlankDescriptionBlank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State
Code
Blank
or CR/LF

(13) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–PATR
Field
Position Field TitleLengthDescription and Remarks
544Second TIN1Enter “2” to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN com-
(Optional)bination; otherwise, enter a blank.
545–662 Blank 118Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/Combined Federal/State Filing Program, enter the valid state code
State Codefrom Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749–750 Blank 2 Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for 1099–PATR
544545–662663–722723–734 735–746 747–748 749–750
(14) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–R
Field
Position Field TitleLengthDescription and Remarks
544Blank1Enter blank.
545–546Document 2Required.Enter the appropriate distribution code(s). More than
Specific/one code may apply for Form 1099–R. If only one code is required,
Distribution Codeit must be entered in position 545. Position 546 must be blank.
(For a detailedEnter at least one distribution code. A blank in position 545 is not
explanation of theacceptable. Enter the applicable code from the table that follows.
distribution codesPosition 545 must contain a numeric code in all cases except when
see the 1998using D, E, F, G, H, J, K, L, M, P or S. Distribution Code A, B, or
“Instructions forC, when applicable, must be entered in position 546 with the applic-
May 26, 1998661998–21 I.R.B.
Second
TIN
Notice
(Optional)
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State
Code
Blank
or CR/LF

Forms 1099, 1098able code in position 545. When using Code P for an IRA distribu-
5498, and W–2G.)tion under section 408(d)(4) of the Internal Revenue Code, the filer
may also enter Code 1 or 2 if applicable. Only three numeric combi-
nations are acceptable, codes 8 and 1, codes 8 and 2, and codes 8 and
4, on one return. These three combinations can be used only if both
codes apply to the distribution being reported. If more than one nu-
meric code is applicable to different parts of a distribution, except
the three combinations mentioned above, report two separate “B”
Records. Distribution Codes E, F, and H cannot be used in conjunc-
tion with other codes. Distribution Code G may be used in conjunc-
tion with Distribution Code 4 only, if applicable.
Code Category
1*Early distribution, no known exception
2*Early distribution, exception applies (as defined in section
72(q), (t), or (v) (other than disability or death)
3*Disability
4*Death (includes payments to an estate or other beneficiary)
5* Prohibited transaction
6 Section 1035 exchange
7*Normal distribution
8* Excess contributions plus earnings/excess deferrals (and/or
earnings) taxable in 1998
9 PS 58 costs
AMay be eligible for 5- or 10-year tax option
B May be eligible for death benefit exclusion (See Note)
C May be eligible for both A and B (See Note)
D* Excess contributions plus earnings/excess deferrals taxable
in 1996
E Excess annual additions under section 415
F Charitable gift annuity
G** Direct rollover to IRA
H** Direct rollover to qualified plan or is transferred to tax-
sheltered annuity, or distribution from a conduit IRA that is
payable to the trustee of an employer plan
JDistribution from a Roth IRA in the first 5 years
KDistribution from a 1998 Roth conversion IRA in first 5
years
LLoans treated as deemed distributions under section 72(p)
MDistribution from an education IRA
P* Excess contributions plus earnings/excess deferrals taxable
in 1997
S* Early distribution from a SIMPLE IRA in first 2 years, no
known exception
*If reporting an IRA, SEP, or SIMPLE distribution, use the IRA/SEP/SIMPLE Indicator of “1” (one) in position 548 of the
Payee “B” Record.
**Distribution Codes G and H cannot be used in combination with the IRA/SEP/SIMPLE Indicator in Field Position 548.
* Note: Do not use code B or C for payments with respect to employees who died after August 20, 1996.
1998–21 I.R.B.67May 26, 1998
(14) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position Field TitleLengthDescription and Remarks

(14) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position Field TitleLengthDescription and Remarks
547Taxable Amount1Enter “1” (one) only if the taxable amount of the payment entered
Not Determinedfor Payment Amount Field 1 (Gross distribution) of the “B” Record
Indicatorcannot be computed; otherwise, enter blank.[If Taxable Amount
Not Determined Indicator is used, enter “0’s” (zeros) in Payment
Amount Field 2 of the Payee “B” Record.] Please make every effort
to compute the taxable amount.
548IRA/SEP/1Enter “1” (one) if reporting a distribution from a traditional IRA,
SIMPLESEP, or SIMPLE; otherwise, enter a blank(See Note). If the IRA/.
IndicatorSEP/SIMPLE Indicator is used, enter the amount of the distribution
in Payment Amount Field A of the Payee “B” Record. Do not use
the indicator for Roth IRA or Education IRA.
*Note: For Form 1099–R, generally, report the total amount distributed from a traditional IRA, SEP, or SIMPLE in Pay-
ment Amount Field A (IRA/SEP/SIMPLE Distribution), as well as Payment Amount Field 1 (Gross Distribution) of the “B”
Record. Refer to the 1998 “Instructions for Forms 1099, 1098, 5498, and W–2G” for exceptions.
549Total 1Enter a “1” (one) only if the payment shown for Amount Code 1 is
Distributiona total distribution that closed out the account; otherwise, enter a
Indicatorblank.
(See Note)
*Note: A total distribution is one or more distributions within one tax year in which the entire balance of the account is
distributed. Any distribution that does not meet this definition is not a total distribution.
550–551Percentage 2Use this field when reporting a total distribution to more than one
of Total person, such as when a participant is deceased and a payer
Distribution 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 (for example, 10.4 percent will be
10 percent; 10.5 percent will be 11 percent). Enter the percentage re-
ceived by the person whose TIN is included in positions 12–20 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 any IRA distribution or for direct rollovers.
552–662Blank111Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. The state/payer’s state number, state distribution, name of lo-
cality, and/or local distribution can be entered in this field. Payers
should contact the state or local revenue departments for filing re-
quirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheld 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right justified and unused positions must be zero-
May 26, 1998681998–21 I.R.B.

filled. If not reporting local tax withheld, this field may be used as a
continuation of the Special Data Entries Field.
747–748Combined 2If this payee record is to be forwarded to a state agency as part of the
Federal/StateCombined Federal/State Filing Program, enter the valid state code
Codefrom Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749–750Blank2Enter blanks, or carriage return/line feed (CR/LF) characters.
Payee “B” Record—Record Layout Positions 544–750 for Form 1099–R
544 545–546547548549
550–551552–662663–722723–734735–746747–748749–750
(15) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–S
Field
Position Field TitleLengthDescription and Remarks
544–546Blank3Enter blanks.
547 Property or 1 Required. Enter “1” (one) if the transferor received or will receive
Services property (other than cash and consideration treated as cash in com-
Indicator puting gross proceeds) or services as part of the consideration for the
property transferred. Otherwise, enter a blank.
548–555 Date of 8 Required.Enter the closing date in the format YYYYMMDD (e.g.,
Closing 19981022). Do not enter hyphens or slashes.
556–594 Address or 39 Required. Enter the address of the property transferred (including
Legal city, state, and ZIP Code). If the address does not sufficiently identity
Descriptionthe property, also enter a legal description, such as section, lot, and
block. For timber royalties, enter “TIMBER.” If fewer than 39 posi-
tions are required, left justify information and fill unused positions
with blanks.
595–662Blank68Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
1998–21 I.R.B.69May 26, 1998
(14) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position Field TitleLengthDescription and Remarks
Blank
Document
Specific/
Distribution
Code
Taxable
Amount
Not
Determined
Indicator
IRA/SEP/SIMPLE
Indicator
Total
Distribution
Indicator
Percentage
of Total
Distribution
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Combined
Federal/
State
Code
Blank
or CR/LF

poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheld 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 Field.
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747–748Blank2Enter blanks.
749–750Blank2Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 1099–S
544–546547 548–555 556–594595–662663–722
723–734735–746747–748749–750
* Note: When reporting Form 1099–S, the “B” Record will reflect the seller/transferor information.
(16) Payee “B” Record - Record Layout Positions 544–750 for Form 5498
Field
Position Field TitleLengthDescription and Remarks
544–546Blank 3 Enter blanks.
547IRA1Required, if applicable.Enter “1” (one) if reporting a rollover
Indicator(Amount Code 2) or Fair Market Value (Amount Code 4) for an IRA.
(IndividualOtherwise, enter a blank.
Retirement
Account)
548SEP1Required, if applicable.Enter “1” (one) if reporting a rollover
Indicator(Amount Code 2) or Fair Market Value (Amount Code 4) for a SEP.
(SimplifiedOtherwise, enter a blank.
Employee Pension)
May 26, 1998701998–21 I.R.B.
(15) Payee “B” Record - Record Layout Positions 544–750 for Form 1099–S
Field
Position Field TitleLengthDescription and Remarks
Blank
Property
or Services
Indicator
Date of
Closing
Address
or Legal
Description
Blank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Blank
Blank
or CL/RF

(16) Payee “B” Record - Record Layout Positions 544–750 for Form 5498 (Continued)
Field
Position Field TitleLengthDescription and Remarks
549SIMPLE1Required, if applicable.Enter “1” (one) if reporting a rollover
Indicator(Amount Code 2) or Fair Market Value (Amount Code 4) for a
(Savings IncentiveSIMPLE. Otherwise, enter a blank.
Match Plan for
Employees
of Small employers)
550Roth1Required, if applicable. Enter “1” (one) if reporting a rollover
IRA(Amount Code 2) or Fair Market Value (Amount Code 4) for a Roth
IndicatorIRA. Otherwise, enter a blank.
551Roth1Required, if applicable.Enter “1” (one) if reporting a rollover
Conversion(Amount Code 2) or Fair Market Value (Amount Code 4) for a Roth
Indicator Conversion. Otherwise, enter a blank.
552Education1Required, if applicable. Enter “1” (one) if reporting a rollover
IRA(Amount Code 2) or Fair Market Value (Amount Code 4) for an
IndicatorEducation IRA. Otherwise, enter a blank.
553–662Blank 110Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–746Blank24Enter blanks.
747–748Combined 2If this payee record is to be forwarded to a state agency as part of the
Federal/StateCombined Federal/State Filing Program, enter the valid state code
Codefrom Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749–750Blank2Enter blanks,or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form 5498
544–546547548549550551 552
553–662663–722723–746747–748 749–750
1998–21 I.R.B.71May 26, 1998
Blank
IRA
Indicator
SEP
Indicator
SIMPLE
Indicator
Roth
IRA
Indicator
Roth
Conversion
Indicator
Education
IRA
Indicator
Blank
Special
Data
Entries
Blank
Combined
Federal/
State
Code
Blank
or CR/LF

(17) Payee “B” Record - Record Layout Positions 544–750 for Form W–2G
Field
Position Field TitleLengthDescription and Remarks
544–546Blank 3 Enter blanks.
547 Type of1Required.Enter the applicable type of wager code from the table
Wagerbelow:
Code
CodeCategory
1Horse race track (or off-track betting of a horse track na-
ture)
2Dog race track (or off-track betting of a dog track nature)
3Jai-alai
4State-conducted lottery
5Keno
6Bingo
7Slot machines
8 Any other type of gambling winnings
548–555Date Won 8Required. Enter the date of the winning transaction in the format
YYYYMMDD (e.g., 19981022). 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).
556–570Transaction 15 Required.For state-conducted lotteries, enter the ticket or other
identifying number. For keno, bingo, and slot machines, enter the
ticket or card number (and color, if applicable), machine serial num-
ber, or any other information that will help identify the winning
transaction. For all others, enter blanks.
571–575 Race 5 If applicable, enter the race (or game) relating to the winning ticket;
otherwise, enter blanks.
576–580 Cashier 5 If applicable, enter the initials of the cashier making the winning
payment; otherwise,enter blanks.
581–585 Window 5 If applicable, enter the window number or location of the person
paying the winning payment; otherwise, enter blanks.
586–600 First ID 15 For other than state lotteries, enter the first identification number of
the person receiving the winning payment; otherwise, enter blanks.
601–615 Second ID 15 For other than state lotteries, enter the second identification number
of the person receiving the winnings; otherwise, enter blanks.
616–662 Blank 47Enter blanks.
663–722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for filing requirements. If this field is not utilized, enter blanks.
723–734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheld 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 Field.
May 26, 1998721998–21 I.R.B.

(17) Payee “B” Record - Record Layout Positions 544–750 for Form W–2G
Field
Position Field TitleLengthDescription and Remarks
735–746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation 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.
747-748Blank2Enter blanks.
749–750Blank2Enter blanks, or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544–750 for Form W–2G
544–546547548–555556–570571–575576–580581–585586–600
601–615616–662663–722723–734735–746747–748749–750
Sec. 11. End of Payer “C” Record - General Field Descriptions and Record Layout
.01 The End of Payer “C” Record is a fixed record length of 750 positions. The control total fields are each 18 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.
.03 In developing the “C” Record, for example, if a payer used Amount Codes 1, 3, and 6 in the “A” Record, the totals from the
“B” Records would appear in Control Totals 1 (positions 16–33), 3 (positions 52–69), and 6 (positions 106–123) of the “C” Record.
In this example, positions 34–51, 70–105, and 124–231 would be zero filled. Positions 232–748 would be blank filled.
.04 Payers/Transmitters should verify the accuracy of the totals since data with missing or incorrect “C” Records will be returned
for replacement.
Record Name: End of Payer “C” Record
Field
Position Field TitleLengthDescription and Remarks
1Record Type 1 Required. Enter “C.”
2–9 Number of 8 Required.Enter the total number of “B” Records covered by the
Payees preceding “A” Record. Right justify information and fill unused po-
sitions with zeros.
10–15 Blank 6 Enter blanks.
16–33 Control 18 Required.Accumulate totals of any payment amount fields in the
Total 1 “B” Record into the appropriate control total fields of the “C”
1998–21 I.R.B.73May 26, 1998
Blank
Type of
Wager
Code
Date
Wo n
TransactionRaceCashierWindowFirst ID
Second IDBlank
Special
Data
Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
Blank
Blank
or CR/LF

Record Name: End of Payer “C” Record (Coninued)
Field
Position Field TitleLengthDescription and Remarks
34–51 Control 18 Record. Control totals must be right justified and unused con-
Total 2 trol total fields zero-filled.All control total fields are 18 positions
52–69 Control 18 in length.
Total 3
70-87 Control 18
Total 4
88–105 Control 18
Total 5
106–123 Control 18
Total 6
124–141 Control 18
Total 7
142–159 Control 18
Total 8
160–177 Control 18
Total 9
178–195 Control 18
Total A
196–213Control 18
Total B
214–231 Control 18
Total C
232–748Blank 517Enter blanks.
749–750Blank 2 Enter blanks,or carriage return/line feed (CR/LF) characters.
End of Payer “C” Record - Record Layout
12–910–1516–3334–5152–6970–8788–105106–123
124–141142–159 160–177178–195196–213214–231232–748749–750
Sec. 12. State Totals “K” Record - General Field Descriptions and Record Layout
.01 The State Totals “K” Record is a fixed record length of 750 positions.The control total fields are each 18 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.
.04 In developing the “K” Record, for example, if a payer used Amount Codes 1, 3, and 6 in the “A” Record, the totals from the
“B” Records coded for this state would appear in Control Totals 1, 3, and 6 of the “K” Record.
.05There must be a separate “K” Record for each statebeing reported.
.06 Refer to Part A, Sec. 16 for the requirements and conditions that must be met to file via this program.
May 26, 1998741998–21 I.R.B.
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
Control
Total
A
Control
Total
B
Control
Total
C
Blank
Blank
or CR/LF

(1) State Totals “K” Record - Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC, 1099–OID, 1099–PATR,
1099–R, and 5498
Field
Position Field Title Length Description and Remarks
1 Record Type 1 Required.Enter “K.”
2–9 Number of 8 Required.Enter the total number of “B” Records being coded for
Payeesthis state. Right justify information and fill unused positions with
zeros.
10–15 Blank 6 Enter blanks.
16–33 Control 18Required.Accumulate totals of any payment amount fields in the
Total 1 “B” Records for each state being reported into the appropriate con-
34–51Control 18 trol total fields of the appropriate “K” Record. Control totals must
Total 2 be right justified and unused control total fields zero-filled.All
52–69Control 18control total fields are 18 positions in length.
Total 3
70–87 Control 18
Total 4
88–105 Control 18
Total 5
106–123 Control 18
Total 6
124–141 Control 18
Total 7
142–159 Control 18
Total 8
160–177 Control 18
Total 9
178–195 Control 18
Total A
196–213 Control 18
Total B
214–231 Control 18
Total C
232–706 Blank 475Enter blanks.
707–724State Income18State income tax withheld totals is for the convenience of the filers.
Tax WithheldAggregate totals of the state income tax withheld field in the Payee
Total“B” Record; otherwise, enter blanks.
725–742Local Income18Local income tax withheld totals is for the convenience of the filers.
Tax WithheldAggregate totals of the local income tax withheld field in the Payee
Total“B” Record; otherwise, enter blanks.
743–746Blank4Enter blanks.
747–748 Combined 2 Required.Enter the code assigned to the state which is to receive
Federal/ the information. (Refer to Part A, Sec. 16, Table 1.)
State Code
749–750 Blank 2 Enter blanksor carriage return/line feed (CR/LF) characters.
1998–21 I.R.B.75May 26, 1998

State Totals “K” Record - Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC, 1099–OID, 1099–PATR,
1099–R, and 5498
12–910–1516–3334–5152–6970–8788–105106–123
124–141142–159 160–177178–195196–213214–231232–706707–724725–742
743–746747–748749–750
Sec. 13. End of Transmission “F” Record - General Field Descriptions and Record Layout
.01 The End of Transmission “F” Record is a fixed record length of 750 positions.The “F” Record is a summary of the num-
ber of payers in the entire file.
.02 This record should be written after the last “C” Record (or last “K” Record, when applicable) of the entire file.
Record Name: End of Transmission “F” Record
Field
Position Field TitleLengthDescription and Remarks
1 Record Type 1 Required.Enter “F.”
2–9 Number of 8 Enter the total number of Payer “A” Records in the entire file (right
“A” Records justify and zero fill) or enter all zeros.
10–30 Zero 21 Enter zeros.
31–748 Blank 718Enter blanks.
749–750Blank 2Enter blanks or carriage return/line feed (CR/LF) characters.
End of Transmission “F” Record - Record Layout
12–910–3031–748749–750
Part C. Bisynchronous (Mainframe) Electronic Filing Specifications
Sec. 1. General
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will not be of-
fered next year.
May 26, 1998761998–21 I.R.B.
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
Control
Total
A
Control
Total
B
Control
Total
C
Blank
State
Income
Tax
Withheld
Total
Local
Income
Tax
Withheld
Total
Blank
Combined
Federal/State
Code
Blank or
CR/LF
Record
Type
Number of
“A” Records
ZeroBlank
Blank
or CR/LF

.01 Bisynchronous 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, 8mm, 4mm,
1
⁄
4
inch QIC tape cartridge or diskette) or
paper filing, but is not a requirement. This method uses IBM 3780 communications protocols and is used primarily by mainframe
filers. Electronic filing will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may
also be used by payers who are under the filing threshold requirement, but would prefer to file their information returns this way.
.02 The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two 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 Customer Service toll-free
number (1-800-829-1040)for assistance.
.03 Filers participating in the electronic filing program for information returns will submit their returns to IRS/MCC electroni-
cally, and not through magnetic media or paper filing.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of 30 days to file. Part
A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05The formats of the “T”, “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;
therefore, each transmission must begin with a Transmitter “T” Record and end with an End of Transmission (EOT) “F” Record.
Sec. 2. Electronic Filing Approval Procedure
.01 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files 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.
.02 Filers using bisynchronous protocols must obtain an IRS/MCC-assigned password prior to submitting test or actual data files.
To obtain a password, the following steps must be taken:
(a) Bisynchronous filers who already have a TCC must submit either Form 4419 or a letter to indicate that they wish to file infor-
mation 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 acknowledgement and mail to:
)
Chief, Security and Disclosure Branch
IRS, Martinsburg Computing Center
P. O. Box 1208, MS-370
Martinsburg, WV 25402
(d)The users or filers should retain a copy of the signed acknowledgment for their records. It is the filer’s responsibility to 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)If filers have any questions relating to the security procedures, and/or they need to report their password has been compro-
mised, they must contact IRS/MCC as soon as possible at:
)
IRS/MCC
Information Returns Branch
P. O. Box 1359
Martinsburg, WV 25402-1359
%
or by calling: 304-263-8700.
.03It is the user’s responsibility to remember the password and not allow the password to be compromised.
1998–21 I.R.B.77May 26, 1998

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 1998 (returns to be filed in 1999), it mustbe submitted to IRS/MCC no earlier thanNovember 1, 1998, and no later than
December 15, 1998.
.02 If a filer encounters problems while transmitting electronic test files, contact IRS/MCC for assistance.
.03A password must be obtained before submitting an electronic test file.
.04 Bisynchronous electronic test files will be processed and filers will be notified as to the acceptability of their data within 5
workdays of the date, the data, and transmittal Form 4804 are received by IRS/MCC.
.05 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec.
16, for further details.
Sec. 4. Electronic Submissions
.01 Electronically filed information may be submitted to IRS/MCC 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 or more 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.
Sec. 5. Transmittal Requirements
.01All data submitted electronically is verified by transmittal Form 4804. The transmitter must mail 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. A copy of the form is also available in the back of this publication. The Form 4804 can
be downloaded from IRP–BBS at 304- 264-7070or from the Internet at http://www.irs.ustreas.gov.If a filer chooses to com-
puter-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 TCC in the “T” Record must be the TCC used to transmit the file and should appear on the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION - NO MAGNETIC MEDIA
If by Postal Service:
)
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P. O. 1359
Martinsburg, WV 25402-1359
*Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS-MCC P.O. Box addresses for Martinsburg,
WV.
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION - NO MAGNETIC MEDIA
If by truck or air freight:
(
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
Sec. 6. IBM 3780 Bisynchronous Communication Specifications
In compliance with Year 2000 changes, the current bisynchronous electronic filing communication package will not be of-
fered next year.
May 26, 1998781998–21 I.R.B.

.01 Transmissions using IBM 3780 bisynchronous protocols must be in EBCDIC character code. Modems must be compatible
with either Bell 208B for 4800 bps transmissions, AT&T 2296A for 9600 bps transmissions, or Hayes OPTIMA 288 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.
.02 IRS/MCC will accept information returns filed electronically over switched telecommunications network circuits. For 4800
bps, the circuit will be 304-264-7080. For 9600 bps, the circuit will be 304-264-7040. For 14400 bps, the circuit will be 304-
264-7045.These circuits are equipped for bisynchronous transmission using the IBM 3780 protocol.
.03 The 4800 bps line terminates at a Bell 208B modem. The Bell 208B modem uses phase- shift keying and eight-phase 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&T Dataphone II 2296A modem. The AT&T 2296A modem is a full-duplex, CCITT
V.32 compatible unit which operates at 9600 bps or 4800 bps (fallback). The following options have been selected:
– Receiver Responds to Remote Loopback
– Loss-of-Carrier Disconnect
– Received-Space Disconnect
– Send-Space Disconnect
– Automatic Answer
– Answer on Ring 1
– DTR Interlock
– Retrain Enable
– Internal Timing
– CTS Controlled by RTS
– 0 - 1 ms RTS to CTS Delay
– CTS Dependent on Carrier
– RR Indicates Carrier
– 9600 Trellis Coding
– 4800 bps Fallback
– 4 dB Compromise Equalization
.05 The 14400 bps line terminates at a Hayes OPTIMA 288 V.FC Smartmodem. The Hayes OPTIMA Smartmodem 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
750 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. These records may be shorter as long as inter record
separators are used. The $$REQUEST, $$ADD, and the data file should be transmitted as one file. In some cases, filers have at-
tempted to send the $$REQUEST and $$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:
1998–21 I.R.B.79May 26, 1998

Record Name: $$REQUEST
Field
Position Field TitleLengthDescription and Remarks
1–20 $$REQUEST20Enter the following characters:
Identifier $$REQUEST ID=MSGFILE
Record
21–750 Blank730Enter blanks.
Electronic Filing Identifier $$REQUEST RECORD - Record Layout
1–2021–750
.03 Upon making contact with IRS/MCC and furnishing a valid password in the $$ADD identifier record, a data transmission
session will commence. The transmission will continue until an End of Transmission (EOT) “F” Record is received. At the end of
each transmission, the following message should be received electronically by the filer: “DATA RECEIVED AT MCC” and the line
will be disconnected. If this message is not received, there was a problem with the submission, and the filer should contact
IRS/MCC immediately.
.04 Upon receiving a data file and transmittal Form 4804, IRS/MCC will release the data for further processing. If the data can-
not be processed, the filer will be notified by either letter or telephone that the data must be retransmitted. This file name, if neces-
sary, will be provided by IRS/MCC and is to be placed in positions 45-51 of the $$ADD record when the file is retransmitted.
Record Name: $$ADD
Field
Position Field TitleLengthDescription and Remarks
1–9 $$ADD 9Enter the following characters:
Identifier $$ADD ID=
Record
10–17 Password 8Enter the password assigned by IRS/MCC. For information con-
cerning the password, see Part C, Sec. 2.
18 Blank 1Enter a blank.
19–26 BATCHID 8Enter the following characters:
BATCHID=
27 Quote1Enter a single quote (‘).
28–43 Transmitter 16Enter the transmitter’s name. This name should remain consistent in
Name all transmissions. If the transmitter’s name exceeds 16 positions,
truncate the name.
44 Type of File 1 Enter the Type of File Indicator from the list below:
Indicator
O = Original filing
T = Test File
C = Correction file
R = Replacement file
E = Extension File
May 26, 1998801998–21 I.R.B.
$$Request
Identifier
Record
Blank

Record Name: $$ADD (Continued)
Field
Position Field TitleLengthDescription and Remarks
45–51 Replacement7 Use this field only if this is a replacement file.
File Name Enter the replacement file name which IRS/MCC has assigned to
this file. This file name will be provided to the filer in the letter no-
tifying them that a replacement file is necessary. If contact is made
by telephone, the replacement file name will be given to the filer by
IRS/MCC at that time. For other than replacement files, this field
will contain blanks.
52 Quote1Enter a single quote (‘).
53–750 Blank 698Enter blanks.
Electronic Filing Identifier $$ADD Record - Record Layout
1–910–171819–262728–43
4445–515253–750
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 Customer 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. 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 time 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 “T”, “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 mustbegin with a Transmitter “T” Record and end with an
End of Transmission (EOT) “F” Record.
1998–21 I.R.B.81May 26, 1998
$$ADD
Identifier
Record
PasswordBlankBATCHIDQuote
Transmitter
Name
Type of
File Indicator
Replacement
File Name
QuoteBlank

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.
.02 Once 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.
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 1998 (returns to be filed in 1999), it mustbe submitted to IRS/MCC no earlier thanNovember 1, 1998, and no later than
December 15, 1998.
.02If a filer encounters problems while transmitting the electronic test files, contact IRS/MCC for assistance.
.03 Filers can verify the status of their transmitted test data by dialing the IRP–BBS. This information will be available within
two workdays after their transmission is received by IRS/MCC.
.04 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec.
16 for further details.
Sec. 4. Electronic Submissions
.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.
.03 Do not transmit data using IRP–BBS January 1 through January 7.This will allow time for the IRP–BBS to be updated
to reflect current year changes.
.04 Data compression is encouraged when submitting information returns by way of the IRP– BBS. MCC has the ability to 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 KERMIT are the slower protocols.)
May 26, 1998821998–21 I.R.B.
Transmission Speed
in bps500 Records2500 Records10000 Records
96001 min4 min16 min
1920045 sec2 min9 min
3840030 sec1 min4 min

.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’s TCC, 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.
.06 Electronic filers must transmit their files by the due date of the return. If a file is bad, the filer will have 45 days to transmit
the first replacement file and 30 days thereafter if additional replacements are necessary.
.07 Filers are advised not to resubmit an entire file if records were omitted from the original transmission. This will result
in duplicate filing. A new file should be sent consisting of the records that had not previously been submitted.
.08The TCC in the Transmitter “T” Record must be the TCC used to transmit the file.
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.
.02 Form 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 at 304-264-7070,or it may be computer-generated. It may also be obtained from the Inter-
net at http://www.irs.ustreas.gov.A copy of the form is also available in the back of this publication. If a filer chooses to com-
puter-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 TCC used in the Transmitter “T” Record is the TCC which must appear on the transmittal Form 4804.
.04 Forms 4804 may be mailed to the following addresses:
If by Postal Service:
)
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
P. O. Box 1359
Martinsburg, WV 25402-1359
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION - NO MAGNETIC MEDIA
*Note: The ZIP Code has changed from 25401-1359 to 25402-1359 for the IRS P.O. Box addresses for Martinsburg, WV.
If by air or truck freight:
(
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
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. A TCC is not needed to access those portions
of the IRP–BBS that contain forms and publications or to leave questions or messages for IRS/MCC personnel.
.03 Filers using IRP–BBS can determine the acceptability of files submitted by checking the file status area of the bulletin board.
These reports are not immediately available but will be available two workdays after the transmission is received by IRS/MCC.
.04 Contact the IRP–BBS by dialing 304-264-7070. The communication software settings for IRP–BBS are:
1998–21 I.R.B.83May 26, 1998

– 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.
.06 IRP–BBS software provides a menu-driven environment allowing access to different parts of IRP–BBS. Whenever possible,
IRS/MCC personnel will provide assistance in resolving any communication problems with IRP–BBS.
.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-T standard or MNP 2-4. Data compression is supported
using V.42bis ITU-T standard or MNP5.
Sec. 7. IRP–BBS First Logon Procedures
.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:
<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 VGA should 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 Cause Solution
File does notNot starting communication whenStart upload/download on filer’s end
upload/downloadprompted by ‘Awaiting Start Signal’
All files not processedCompressing several files intoCompress only one file for every filename
one filename
Replacement neededOriginal data does not meetReplacement must be submitted within 45 days
processing and/or formatof original transmission
requirements
Cannot determine file statusNot dialing back toWithin 24 to 48 hours after sending a file, check
IRP–BBS to checkunder (F)ile Status for notification of
the status of the fileof acceptability
Transfer abortsTransfer protocolEnsure protocols match on both the sending
before it startsmismatchand receiving ends
Loss of carrierIncorrect modemReference your modem manual about increas-
during session settings on user’s ending the value of the S10 register
Unreadable screensANSI.SYS driver notSelect non ANSI under (Y)our settings
after selectingloaded in the user’s PC
“IBM w/ANSI”
IRS cannotUser did not mail theMail completed Form 4804 the same day as the
complete finalForm 4804electronic transmission
processing of data
May 26, 1998841998–21 I.R.B.

Common User Problems (Continued)
ProblemProbable Cause Solution
IRS cannot determineUser did not indicate whichMust enter the original filename that is being
which file is beingfile is beingreplaced under the replacement option
replacedreplaced
IRS cannot determineUser incorrectly indicatedWhen prompted, enter the correct type of file
the type of file being sentT, P, C, or R for the typefor the data being sent
of file being sentof file
Replacement file notUser did not dial back toWithin two workdays check under (F)ile Status
returned within 45 daysIRP–BBS to check statusfor notification of acceptability
of file
Duplicate dataTransmitter sendsOnly submit corrections for incorrect records
corrections for entire file
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 proper filing.
.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 1998 (returns due to be filed in 1999), transmitters requesting an extension of time to file for more than 50 pay-
ers (not payees) are required to file the extension request magnetically or electronically.Transmitters requesting an extension
of time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed
on tape, tape cartridge, 5
1
⁄
4
- and 3
1
⁄
2
-inch diskette, or electronically.
.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.
.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names
and TINs with the Form 8809 since this information is included on the magnetic or electronic file. However, Line 6 of the
Form 8809 must be completed with the total number of records included on the magnetic media or electronic file.
.06 To be considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the re-
quest will be denied.
.07 The extension record format is also on the IRP–BBS and can be downloaded. See Part D for more information on how to
contact the IRP–BBS.
.08 A magnetically-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
Kearneysville, WV 25430
If by truck or air freight:
(
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
1998–21 I.R.B.85May 26, 1998

*Note: Due to the large volume of mail received by IRS/MCC and the time factor involved in processing the Form 8809, it
is imperative that the attention line be present on all envelopes or packages containing Extension of Time (EOT) requests.
.09Requests for extensions 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. A similar rule applies to designated private delivery services (PDSs). See Part A, Sec. 10. for more information on PDSs.
For requests delivered by a designated PDS, but through a non-designated service, the actual date of receipt by IRS/MCC will be
used as the filing date.
.10 Transmitters who submit their extensions of time requests magnetically or electronically will receive a letter from IRS/MCC
with an attached list of the payers, based on information contained in the file, specifying approval and/or denial.
.11 Do not submit tax year 1998 extensions of time to file requests on magnetic media or electronically before January 1, 1999.
.12Filers 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 request for an extension of time could be denied. In such cases, the transmitter receives a denial letter. When this denial letter is
received, the transmitter has 20 days to provide the additional or necessary information and resubmit the extension request to
IRS/MCC.
.13Each piece of magnetic media musthave an external media label containing the following information:
(a) Transmitter name
(b)Transmitter Control Code (TCC)
(c)Tax year
(d)The words “Extension of Time”
(e)Record count
.14A request 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.
.16 If 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 with a postmark reflecting the date mailed. Line 7 on the form should be checked to indicate that the original exten-
sion has been received and the additional extension is being requested.
.17 See Part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are 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)A block 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)A block 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.
.038mm, 4mm, and Quarter Inch Cartridge Specifications
(a)In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
May 26, 1998861998–21 I.R.B.

(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
⁄
4
-inch by 3
1
⁄
4
-inch.
(c)The 8mm tape cartridges must meet the following specifications:
TracksDensityCapacity
120 (43245 BPI)2.5 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 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.
(g)A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per file or
per cartridge. The filename, for example; IRSEOT, 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 IRSEOT.001,
IRSEOT.002, and IRSEOT.003 on each cartridge of the file.
(2)The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a)A block must not exceed 32,600 tape positions.
(b)If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9’s;
however, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks.
(c)All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control
fields or block descriptor fields which describe the length of the block or the logical records within a 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 200.
(d)Various SAVE commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e)Records may not span blocks.
(3)For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSEOT may be used as a sug-
gested filename.
(4)For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a)Signifies 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)IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-
mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
(b) 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(1)4mm cassettes will be 2
1
⁄
4
-inch by 3-inch.
(2) The tracks are 1 (one).
(3)The density is 19 (61000 BPI).
(4)The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4 Gb.
(5)The general specifications for 8mm cartridges will also apply to the 4mm cassettes.
(c)Various Quarter Inch Cartridges (QIC) (
1
⁄
4
-inch) are also acceptable.
(1) QIC cartridges will be 4” by 6”.
(2)QIC cartridges must meet the following specification:
SizeTracksDensityCapacity
QIC–11 4/54 (8000 BPI)22Mb or 30Mb
QIC–24 8/95 (8000 BPI)45Mb or 60Mb
QIC–1201515 (10000 BPI)120Mb or 200Mb
QIC–1501816 (10000 BPI)150Mb or 250Mb
QIC–3202617 (16000 BPI)320Mb
QIC–5252617 (16000 BPI)525Mb
QIC–10003021 (36000 BPI) 1Gb
QIC–13503018 (51667 BPI)1.3Gb
QIC–2Gb4234 (40640 BPI)2Gb
1998–21 I.R.B.87May 26, 1998

(3) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
.04 Diskette specifications are as follows:
(a)5
1
⁄
4
- or 3
1
⁄
2
-inches in diameter.
(b)ASCII recording mode only.Additional specifications may be found in Part B, Sec. 5, of this revenue procedure.
(c)Record length of 200 bytes.
(d)Diskettes must be created using the MS–DOS operating system.
(e)Filename of IRSEOT must be used. No other filenames are acceptable. If a file will consist of more than one diskette,
the filename IRSEOT will contain a three-digit extension. This extension will indicate the sequence of the diskettes
within the file. For example, the first diskette will be named IRSEOT.001, the second diskette will be name
IRSEOT.002, etc.
(f)Delimiter character commas (,) or quotes (“ ”) 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 applic-
able.
.05Bisynchronous electronic specifications include:
(a)Transmitter must have a Transmitter Control Code (TCC) and a valid IRS/MCC-assigned password prior to submitting
data files.
(b)Access phone numbers:
4800 bps304-264-7080
9600 bps304-264-7040
14400 bps304-264-7045
* Note: See Part C, Bisynchronous (Mainframe) Electronic Filing Specifications, for detailed 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 185 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
Position Field TitleLengthDescription and Remarks
1–5 Transmitter 5Required.Enter the five digit Transmitter Control Code (TCC)
Control Codeissued by IRS. Only one TCC per file is acceptable.
6–14 Payer TIN9Required. Must be the valid nine-digit EIN/SSN assigned to the
payer. Do not enter blanks, hyphens or alpha characters.All
zeros, ones, twos, etc. will have the effect of an incorrect TIN. For
foreign entities that are not required to have a TIN, this field may be
blank; however, the Foreign Entity Indicator, position 187, mustbe
set to “X.”
May 26, 1998881998–21 I.R.B.

Record Layout for Extension of Time (Continued)
Field
Position Field TitleLengthDescription and Remarks
15–54Payer Name 40Required.Enter the name of the payer whose TIN appears in posi-
tions 6–14. Left justify information and fill unused positions with
blanks.
55–94Second Payer 40If additional space is needed this field may be used to continue name
Nameline information (e.g., c/o First National Bank); otherwise, enter
blanks.
95–134Payer Address 40Required.Enter the payer’s address. Street address should include
number, street, apartment or suite number (or P.O. Box if mail is not
delivered to a street address).
135–174Payer City40Required.Enter payer city, town, or post office.
175–176Payer State2Required. Enter payer valid U.S. Postal Service state abbreviation
(Refer to Part A, Sec. 18).
177–185Payer ZIP Code9Required.Enter payer ZIP Code. If using a five-digit ZIP Code, left
justify information and fill unused positions with blanks.
186Document1Required.Enter the document for which you are requesting an ex-
Indicatortension of time using the following code:
(See Note)
CodeDocument
1W–2
21098, 1098–E, 1098–T, 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–INT or 1099–OID)
*Note: Do not enter any other values in this field. Submit a separate record for each document. For example, if you are
requesting an extension for Form 1099–INT and Form 5498 for the same payer, submit one record with “2” coded in this
field and another record with “3” coded in this field. If you are requesting an extension for Form 1099–DIV and Form
1099–MISC for the same payer, submit one record with “2” coded in this field.
187Foreign1Enter character “X” if the payer is a foreign entity.
Entity Indicator
188–198Blank11Enter blanks.
199–200Blank2Enter blanks.Diskette filers may code the ASCII carriage
return/line feed (CR/LF) characters.
Extension of Time Record Layout
1–56–1415–5455–9495–134135–174175–176
1998–21 I.R.B.89May 26, 1998
Transmitter
Control
Code
Payer
TIN
Payer
Name
Second
Payer
Name
Payer
Address
Payer
City
Payer
State

177–185186187188–198199–200
Part F. Miscellaneous Information
Sec. 1. Addresses for Martinsburg Computing Center
To submit an application to file, waiver request (forms), correspondence, and magnetic media files, use the following:
Mailing by U. S. Postal Service:
)
IRS—Martinsburg Computing Center
Information Reporting Program
P.O. Box 1359
Martinsburg, WV 25402-1359
Shipping by truck or air freight:
(
IRS—Martinsburg Computing Center
Information Reporting Program
Route 9 and Needy Road
Martinsburg, WV 25401
To submit magnetically filed extension of time requests, 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
Kearneysville, WV 25430
Shipping by truck or air freight:
(
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
Route 9 and Needy Road
Martinsburg, WV 25401
Sec. 2. Telephone Numbers for Contacting IRS/MCC
%
Information Reporting Program Call Site:
?
304-263-8700
Between 8:30 a.m. and 4:30 p.m. Eastern Time
Monday through Friday
Telecommunication Device for the Deaf (TDD):
304-267-3367
May 26, 1998901998–21 I.R.B.
Payer
Zip
Code
Document
Indicator
Foreign
Entity
Indicator
Blank
Blank
or CR/LF
Extension of Time Record Layout (Continued)

Information Returns FAX Machine:
304-264-5602
Electronic Filing:
(IRP–BBS)
(Asynchronous)
304-264-7070
Mainframe Filing
(Bisynchronous Filing)
4.8 Modems 304-264-7080
9.6 Modems 304-264-7040
14.4 Modems 304-264-7045
HOURS OF OPERATION —
24 HOURS A DAY
7 DAYS A WEEK
This is the end of Publication 1220 for Tax Year 1998.
1998–21 I.R.B.91May 26, 1998

$
May 26, 1998921998–21 I.R.B.
I R B
Box of
I R B
Box of
I R B
Box of
Internal Revenue Service
Martinsburg Computing Center
Information Reporting Program
P O Box 1359
Martinsburg WV 25402
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
Martinsburg WV 25401
(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)

1998–21 I.R.B.93May 26, 1998
Announcement 98–42
Publication 3079, Gaming Publication
for Tax-Exempt Organizations,is now
available for tax-exempt organizations
conducting gaming. The publication pro-
vides general information regarding tax
exemption, unrelated business tax,
recordkeeping, filing requirements (in-
come tax, withholding tax, excise, and
employment tax), and provides examples
of the type of records that should be main-
tained by tax-exempt organizations con-
ducting bingo, pull-tabs, and other games
of chance. The publication also provides
information regarding related publica-
tions that contain additional information
on the topics discussed in the publication.
Publication 3079 may be obtained by
calling 1-800-TAX-FORM (1-800-829-
3676) or through the internet at ftp.
fedworld.gov/pub/irs-pdf/p3079.pdf. Ad-
ditional information about tax-exempt or-
ganizations may be obtained through the
Exempt Organization’s Home Page at
www.irs.ustreas.gov\bus_info\eo.
Foundations Status of Certain
Organizations
Announcement 98–43
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The following
organizations (which have been treated as
organizations that are not private founda-
tions described in section 509(a) of the
Code) are now classified as private foun-
dations:
Access to Education Foundation Inc.,
Chicago, IL
Advocates for Quality Education,
Farmington Hills, MI
Adults Against Child Abuse, Inc., Vero
Beach, FL
Albemarle Recreation and Leadership
Training Ctr for Disabled Person,
Edenton, NC
All Fund, Little Rock, AR
Alliance for Sober Living, Inc.,
Northampton, MA
Alliance Foundation, Portland, ME
Alvo-Eagle Recreation Association,
Eagle, NE
American College of Ophthermology,
Davenport, IA
American College of Workers
Compensation Counsel, Manchester,
NH
American Friends of Maccabee Institute
Foundation, New York, NY
American Friends of Mishlow Ltfilah,
Monsey, NY
AMI-Southwest Wisconsin Inc.,
Platteville, WI
Apprenticeship Incorporated, St. Paul, MN
Arab Television of America, Inc.,
Brooklyn, NY
Asian American Coalition of Houston,
Houston, TX
Asian Studies Consortium, Virginia
Beach, VA
Associates in Education and Prevention
in Pastoral Practice, North Kingstown,
RI
BCMS Recovering Company, Inc.,
Boston, MA
Back to Blue Incorporated, Sherman
Oaks, CA
Bak Resources, Fremont, CA
Bengali Association of Greater Nashville,
Nashville, TN
Black Alumni-ae of the Massachusetts
Institute, Cambridge, MA
Blaine Back Court Club, Blaine, MN
Blues in the Schools Education Fund
Richard H. Friedberg, Goose Creek, SC
Boston Kendo Association, Chestnut Hill,
MA
Bradford Senior Independence Housing
Corporation, Bradford, VT
Brownsburg Junior Athletic Foundation
Inc., Brownsburg, IN
Brandon Bears Youth Football League
Inc., Valvico, FL
Brookwood Guild Inc., Tierra Verde, FL
Bryantville Parent Teacher Organization,
Inc., Pembroke, MA
Buckle My Shoe, Inc., Chester, VT
Burlington Area 2020, Burlington, CO
Californians for Green Speed,
Sacramento, CA
Caring Hearts Inc., Vincennes, IN
Center for Innovative Public Policy, Inc.,
Princeton, NJ
Center for Transportation Training
Education and Research, Alexandria,
VA
Cetana Educational Foundation Inc.,
Princeton, NJ
Charles D Bud Hering Jr. Foundation,
Tiffin, OH
Chesterfield Basketball League Inc.,
Richmond, VA
Chinese Society for Women’s Studies,
Inc., Flushing, NY
Childrens Village Inc., Lantana, FL
Circle of Friends Inc., Ashboro, NC
Citizens Committee on Immigration
Policy, Norco, CA
Citizens of the Territory, Tucson, AZ
CITWE, Inc., Brooklyn, NY
Clark County Jail Chaplaincy Program,
Inc., Springfield, OH
Cleburne Emergency Medical Services
Inc., Heflin, AL
Coahoma Lighthouse Ministries Inc.,
Farmington, NM
Colorado Reforestation Project, Como,
CO
Comeback Home for Chemical
Dependency Inc., Dallas, TX
Connecticut-Family Coalition, Inc.,
Hartford, CT
Corpus Christi Ministries Inc., Jersey
City, NJ
Council of Elementary Science of New
Jersey, Inc., Pennington, NJ
Creative Castle Ministries, Little Rock,
AR
Creative Educational Partnership, Ft.
Worth, TX
Creative Neighbors Always Sharing, Los
Angeles, CA
Decibelles of Cape Coral Inc., Cape
Coral, FL
Deer Trails Wilderness Area Association,
Norfolk, NE
Dekalb Housing Organization,
Alexandra, TN
District 27 N Club Inc., Charlotte, NC
Divine Principles Continuity, Seattle,
WA
Part IV. Items of General Interest

May 26, 1998941998–21 I.R.B.
Don Singer Memorial Scholarship Fund,
Inc., Uniontown, OH
Downs Media Education Center,
Stockbridge, MA
Drug Quiz Show Inc., Syracuse, NY
DUL Subsidiary Inc., Detroit, MI
East Jefferson Preservation Association,
Ann Arbor, MI
East Longmeadow Rotary Memorial
Scholarship Foundation, Inc., East
Longmeadow, MA
Eastwood Rotary Foundation, Inc.,
Syracuse, NY
Eastside Youth Services & Street
Outreach, Inc., Austin, TX
Elizabeth Haddon Housing Corporation,
Medford, NJ
Elmbrook Center for the Arts,
Brookfield, WI
Engineers Council of Houston Inc.,
Houston, TX
European Missionary Baptist Missions
Inc., Plant City, FL
Eveleth Band Boosters Inc., Eveleth,
MN
Faith Village Corporation, Chesapeake,
VA
Farm Saver Inc., Peoria, IL
Farmington Symphony Orchestra
Boosters, Farmington, UT
Fort Bend Songwriters Association,
Richmond, TX
Foundation for the Advancement of
Autistic Persons, Inc., Staten Island,
NY
Franklin Interfaith Council, Inc.,
Franklin, MA
Fresh Start Rescue Mission Inc.,
Albertville, AL
Friends of Tarrywhite Park, Inc.,
Danbury, CT
Friends of the Glacial Drumlin Trail, Inc.,
Lake Mills, WI
Fun Ages Family Daycare, Inc., Chelsea,
MA
Fundraising Project, Inc., Atlanta, GA
Future Fund Inc., Louisville, KY
GFWC Gulf Breeze Junior Womans
Club, Gulf Breeze, FL
Gamma XI Lambda Alpha Phi Alpha
Fraternity, Inc., Minneapolis, MN
Giant People, Inc., Sausalito, CA
Gospel Music Promotions Inc., Roseau,
MN
Greater Gardner Community
Development Corp., Gardner, MA
Greater Little Rock Center for World
Religions, North Little Rock, AR
Gulf Medical Relief Fund, Metairie, LA
Gwinnett County Childrens Association,
Inc., Lawrenceville, GA
Harding Academy Foundation, Inc.,
Memphis, TN
Hazrat Sultan Bahu Foundation USA
Inc., Boonton, NJ
Help Out Inc., Boulder, CO
Heritage of Chernobyl Foundation USA,
Houston, TX
Highlands Hockey Association,
Tarentum, PA
Hill-Stead Museum Board of Governors,
Inc., Farmington, CT
Hospice Partners Inc., S. St. Paul, MN
Housecalls Hospice Volunteer
Association Inc., Parkersburg, WV
Idec or Intake-Discharge Evaluation
Center, Houston, TX
Imagine America Productions, Chicago,
IL
Independent Living Center of North
Central Ohio, Inc., Mansfield, OH
Inner City Awaking Inc., Washington,
DC
International Music Center, Colorado
Springs, CO
International Science and Engineering
Fair 2000, Detroit, MI
Jedcenter Inc. Foundation for Adapline
and Assistive Technology, Riviera,
TX
Jonesboro Crime Stoppers Inc.,
Jonesboro, AR
Joseph E. Mertz Memorial Educational
Foundation, Inc., Cleveland, TN
Joyful Parenting Center, Inc., Tamsworth,
NY
Julius and Bertha Orth Foundation,
Minot, ND
Kemper Military School Alumni
Edowment Fund, Boonville, MO
Kentucky Society for Parenteral and
Enteral Nutrition, Lexington, KY
Kids Connection, Dayton, OH
Kids Dream Ranch USA, Tucson, AZ
Kissimmee American Chinese Center,
Kissimmee, FL
Ladzekpo Brothers and the African Music
and Dance Ensemble, Oakland, CA
Lake Jackson Soccer Club, Lake Jackson,
TX
Latino Cultural Arts & Production Center
of Dallas, Dallas, TX
Llano County Youth Center Inc., Llano,
TX
Logan County Housing Improvement
Association, Bellafontaine, OH
Lorraine Digby Enterprises, Chicago, IL
Louisville Male High School Junior
Reserve Officer Training Corps,
Louisville, KY
M O T Community Fund Inc.,
Middletown, DE
MA at Educational and Cultural Agency,
Inc., Wilmington, DE
Main Street Lonoke, Lonoke, AR
Majestic Inc., Milwaukie, OR
Mannahouse Fellowship International,
Spokane, WA
Margaret Weissenfluh Foundation for
Musically Inclined Children Inc.,
Rockville, MD
Marquette Community Concert
Association, Marquette, MI
Martin Luther King Jr. General Hospital
Founation, Los Angeles, CA
Mayberry Model Railroaders Inc., Mount
Airy, NC
Medical Research Foundation Inc.,
Benton, KS
Mediphors, Inc., Bloomsburg, PA
Mennonite & Brethren Marriage
Encounter Northwest Region Inc.,
Albany, OR
Midland Park Centennial Inc., Midland
Park, NJ
Midwest Dance Theatre Inc., Walled
Lake, MI
Milk Bottle Productions Incorporated,
Arlington, VA
Mississippi Society for Parenteral and
Enteral Nutrition, Ridgeland, MS
Moorhead Kennedy Institute, Inc., New
York, NY
Moses Housing Incorporated, Troy, AL
Muldown Academic Achievement
Scholarship Trust, Whitefish, MT
NSSV Corporation, Washington, DC
Nadiad Visa Khadayata Samaj, Norwood,
NJ
National Afro-American Golfers
Association, Richmond, CA
National Association of Education
Buyers, Inc., Hauppauge, NY
National Association of Latin American
Catholic Youth and Young Adult
Ministry, Oakland, CA
National Shared Housing Resource
Center, Inc., Baltimore, MD
Nerriaet, Los Angeles, CA
New Era Human Need Services
Emergency Shelter & Affordable
Housing, Los Angeles, CA
New Life X S A Group Inc., Irvington,
NJ

1998–21 I.R.B.95May 26, 1998
New Outlook Boys Home Inc., Los
Angeles, CA
New School Arts Foundation, San Diego,
CA
New Talent Garden, Houston, TX
New York Japanese-American Lions
Club Charities, Inc., New York, NY
Nipomo Book and Toy Lending Library,
Nipomo, CA
Nohma Development Corporation, New
Orleans, LA
Norcal Vocational Inc., San Rafael, CA
North Coast Association for Jewish
Culture, McKinleyville, CA
Northeast Brooklyn Services
Corporation, Brooklyn, NY
Northeast Fellowship of Alcoholics
Anonymous, Clovis, CA
Northern California African Heritage
Network, Vallejo, CA
Northern California Health Care
Coalition, Redding, CA
Northwest Documentary Consortium,
Portland, OR
Norwalk Float Foundation, Norwalk,
CA
Norwich Hospital Employees Family
Day Care, Inc., Norwich, CT
If an organization listed above submits
information that warrants the renewal of its
classification as a public charity or as a pri-
vate operating foundation, the Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classifi-
cation as to foundation status. Grantors and
contributors may thereafter rely upon such
ruling or determination letter as provided
in section 1.509(a)–7 of the Income Tax
Regulations. It is not the practice of the
Service to announce such revised classifi-
cation of foundation status in the Internal
Revenue Bulletin.

May 26, 1998961998–21 I.R.B.
NameAddressDesignationDate of Suspension
Soulides, James C. Berwyn, ILCPAJanuary 1, 1998 to June 30, 2000
Bujan, FrankOrland Park, ILCPAJanuary 1, 1998 to June 30, 2000
Field, Edward L.Topeka, KSCPAJanuary 27, 1998 to April 26, 1999
Cito, Paul J.West Orange, NJCPAFebruary 21, 1998 to May 20, 1999
Sproul, JerryIdaho Falls, IDCPAFebruary 25, 1998 to October 24, 1998
Hunt, RussellPauls Valley, OKCPAMarch 1, 1998 to June 30, 1998
Oertli, WilliamRochester, MNCPAMach 4, 1998 to March 3, 2000
Maynard, RichardReno, NVCPAMarch 10, 1998 to March 9, 2002
McDonald, BillReno, NVAttorneyMarch 10, 1998 to March 9, 2002
Komendant, HowardPassaic, NJCPAMarch 10, 1998 to September 9, 1998
Kwiatek, Fabian A.Silver Spring, MDCPAMarch 16, 1998 to March 15, 2001
Brown, PatriciaDeKalb, ILCPAMarch 16, 1998 to September 15, 1999
Marshall, RobertWoodland Hills, CAAttorneyMarch 18, 1998 to November 17, 2000
Baloun, Donald J.Palatine, ILCPAMarch 25, 1998 to November 24, 1998
Goldman, Harold J.Summit, NJCPAMarch 27 , 1998 to September 26, 1998
Garner, Darrow C.Austin, TXCPAApril 1, 1998 to March 20, 2000
Klein, Charles U.Dunedin, FLCPAApril 1, 1998 to September 30, 1999
Morgan, Robert I.Brownsville, VTAttorneyApril 2, 1998 to April 1, 2000
Teel, Jeffrey J.Hollis, NHCPAApril 2, 1998 to April 1, 2001
Hancock, Randall M.Gardendale, ALCPAIndefinite from April 13, 1998
Allison Jr., Dale A.Blairsville, GAAttorneyApril 15, 1998 to July 14, 2001
Gogel, William A.North Hills, NYAttorneyApril 21, 1998 to April 20, 2002
Bose, GautemOak Brook, ILCPAMay 1, 1998 to April 30, 2001
Woods, W. RexBelleville, KSCPAMay 1, 1998 to January 31, 1999
Monahan, JohnSeattle, WAAttorneyMay 1, 1998 to April 30, 2001
Swartz, Lewis A.Syosset, NYCPAMay 1, 1998 to April 30, 2002
Announcement of the Consent Voluntary Suspension of Attorneys,
Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries
From Practice Before the Internal Revenue Service
Under 31 Code of Federal Regulations,
Part 10, an attorney, certified public ac-
countant, enrolled agent, or enrolled ac-
tuary, 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 offer
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 offered.
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-
vice:

1998–21 I.R.B.97May 26, 1998
NameAddressDesignationDate of Suspension
Eckert, Bruce G.Cleveland, OHCPAMay 2, 1998 to May 1, 1999
Rozanski, Lawrence J.Pittsburg, PACPAJune 1, 1998 to May 30, 2000
Mangum, Carl E.Morris Plains, NJCPAJuly 1, 1998 to December 31, 1999
Reeser, Richard M. Thornton, COCPAJuly 1, 1998 to September 30, 1999
Bailey, Thomas O.Dallas, TXCPAJuly 1, 1998 to June 30, 2001
Johnson, Kenneth E.Forest Lake, MNCPAJuly 1, 1998 to November 30, 1999
Deren, JosephLackawanna, NYAttorneyJuly 1, 1998 to June 30, 2001

May 26, 1998981998–21 I.R.B.
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
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. Thus,
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 modified, 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.
Distinguisheddescribes 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 A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, 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. A ruling
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, modified
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-
seded.
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.
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

1998–21 I.R.B.99May 26, 1998
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1997–27 through
1997–52 will be found in Internal Revenue Bulletin
1998–1, dated January 5, 1998.
Numerical Finding List
1
Bulletins 1998–1 through 1998–20
Announcements:
98–1, 1998–2 I.R.B. 38
98–2, 1998–2 I.R.B.38
98–3, 1998–2 I.R.B.38
98–4, 1998–4 I.R.B.31
98–5, 1998–5 I.R.B. 25
98–6, 1998–5 I.R.B. 25
98–7, 1998–5 I.R.B. 26
98–8, 1998–6 I.R.B. 96
98–9, 1998–7 I.R.B. 35
98–10, 1998–7 I.R.B. 35
98–11, 1998–8 I.R.B. 42
98–12, 1998–8 I.R.B. 43
98–13, 1998–8 I.R.B. 43
98–14, 1998–8 I.R.B. 44
98–15, 1998–10 I.R.B.36
98–16, 1998–9 I.R.B. 17
98–17, 1998–9 I.R.B. 16
98–18, 1998–10 I.R.B.44
98–19, 1998–10 I.R.B.44
98–20, 1998–11 I.R.B. 25
98–21, 1998–11 I.R.B. 26
98–22, 1998–12 I.R.B. 33
98–23, 1998–12 I.R.B. 34
98–24, 1998–12 I.R.B. 35
98–25, 1998–13 I.R.B.43
98–26, 1998–14 I.R.B. 28
98–27, 1998–15 I.R.B. 30
98–28, 1998–15 I.R.B. 30
98–29, 1998–16 I.R.B. 48
98–30, 1998–17 I.R.B. 38
98–32, 1998–17 I.R.B. 39
98–33, 1998–17 I.R.B. 39
98–34, 1998–17 I.R.B. 39
98–35, 1998–17 I.R.B. 40
98–36, 1998–18 I.R.B. 18
98–37, 1998–19 I.R.B. 24
98–38, 1998–19 I.R.B. 26
98–39, 1998–20 I.R.B.24
98–40, 1998–20 I.R.B. 24
98–41, 1998–20 I.R.B. 25
Notices:
98–1, 1998–3 I.R.B. 42
98–2, 1998–2 I.R.B. 22
98–3, 1998–3 I.R.B. 48
98–4, 1998–2 I.R.B. 25
98–5, 1998–3 I.B.R.49
98–6, 1998–3 I.R.B. 52
98–7, 1998–3 I.R.B. 54
98–8, 1998–4 I.R.B. 6
98–9, 1998–4 I.R.B. 8
98–10, 1998–6 I.R.B.9
98–11, 1998–6 I.R.B. 18
98–12, 1998–5 I.R.B.12
98–13, 1998–6 I.R.B.19
98–14, 1998–8 I.R.B. 27
98–15, 1998–9 I.R.B. 8
98–16, 1998–15 I.R.B. 12
98–17, 1998–11 I.R.B. 6
98–18, 1998–12 I.R.B. 11
98–19, 1998–13 I.R.B.24
98–20, 1998–13 I.R.B.25
98–21, 1998–15 I.R.B. 14
98–22, 1998–17 I.R.B. 5
98–23, 1998–18 I.R.B. 9
Notices—Continued
98–24, 1998–17 I.R.B. 5
98–25, 1998–18 I.R.B. 11
98–26, 1998–18 I.R.B. 14
98–27, 1998–18 I.R.B. 14
98–28, 1998–19 I.R.B.7
Proposed Regulations:
PS–158–86, 1998–11 I.R.B. 13
REG–100841–97, 1998–8 I.R.B. 30
REG–102144–98, 1998–15 I.R.B.25
REG–102894–97, 1998–3 I.R.B. 59
REG–104062–97, 1998–10 I.R.B. 34
REG–104537–97, 1998–16 I.R.B. 21
REG–104691–97, 1998–11 I.R.B. 13
REG–105163–97, 1998–8 I.R.B. 31
REG–109333–97, 1998–9 I.R.B. 9
REG–109704–97, 1998–3 I.R.B. 60
REG–110965–97, 1998–13 I.R.B. 42
REG–115795–97, 1998–8 I.R.B.33
REG–119449–97, 1998–10 I.R.B. 35
REG–120200–97, 1998–12 I.R.B. 32
REG–120882–97, 1998–14 I.R.B. 25
REG–121268–97, 1998–20 I.R.B. 12
REG–121755–97, 1998–9 I.R.B. 13
REG–208299–90, 1998–16 I.R.B. 26
REG–209276–87, 1998–11 I.R.B. 18
REG–209322–82, 1998–15 I.R.B. 26
REG–209373–81, 1998–14 I.R.B. 26
REG–209463–82, 1998–4 I.R.B. 27
REG–209476–82, 1998–8 I.R.B. 36
REG–209484–87, 1998–8 I.R.B.40
REG–209485–86, 1998–11 I.R.B. 21
REG–209682–94, 1998–17 I.R.B. 20
REG–209807–95, 1998–8 I.R.B. 40
REG–243025–96, 1998–18 I.R.B. 18
REG–251502–96, 1998–9 I.R.B. 14
REG–251698–96, 1998–20 I.R.B. 14
Revenue Procedures:
98–1, 1998–1 I.R.B. 7
98–2, 1998–1 I.R.B. 74
98–3, 1998–1 I.R.B. 100
98–4, 1998–1 I.R.B. 113
98–5, 1998–1 I.R.B. 155
98–6, 1998–1 I.R.B. 183
98–7, 1998–1 I.R.B. 222
98–8, 1998–1 I.R.B. 225
98–9, 1998–3 I.R.B. 56
98–10, 1998–2 I.R.B. 35
98–11, 1998–4 I.R.B.9
98–12, 1998–4 I.R.B. 18
98–13, 1998–4 I.R.B. 21
98–14, 1998–4 I.R.B. 22
98–15, 1998–4 I.R.B. 25
98–16, 1998–5 I.R.B. 19
98–17, 1998–5 I.R.B. 21
98–18, 1998–6 I.R.B. 20
98–19, 1998–7 I.R.B. 30
98–20, 1998–7 I.R.B. 32
98–21, 1998–8 I.R.B. 27
98–22, 1998–12 I.R.B. 11
98–23, 1998–10 I.R.B. 30
98–24, 1998–10 I.R.B. 31
98–25, 1998–11 I.R.B. 7
98–26, 1998–13 I.R.B.26
98–27, 1998–15 I.R.B.15
98–28, 1998–15 I.R.B.14
Revenue Procedures—Continued
98–29, 1998–15 I.R.B. 22
98–30, 1998–17 I.R.B. 6
98–32, 1998–17 I.R.B. 11
98–33, 1998–19 I.R.B. 7
98–34, 1998–18 I.R.B. 15
Revenue Rulings:
98–1, 1998–2 I.R.B. 5
98–2, 1998–2 I.R.B. 15
98–3, 1998–2 I.R.B. 4
98–4, 1998–2 I.R.B. 18
98–5, 1998–2 I.R.B. 20
98–6, 1998–4 I.R.B. 4
98–7, 1998–6 I.R.B.6
98–8, 1998–7 I.R.B. 24
98–9, 1998–6 I.R.B. 5
98–10, 1998–10 I.R.B. 11
98–11, 1998–10 I.R.B. 13
98–12, 1998–10 I.R.B. 5
98–13, 1998–11 I.R.B. 4
98–14, 1998–11 I.R.B. 4
98–15, 1998–12 I.R.B. 6
98–16, 1998–13 I.R.B. 18
98–17, 1998–13 I.R.B. 21
98–18, 1998–14 I.R.B. 22
98–19, 1998–15 I.R.B. 5
98–20, 1998–15 I.R.B. 8
98–21, 1998–18 I.R.B. 7
98–22, 1998–19 I.R.B.5
98–23, 1998–18 I.R.B. 5
98–24, 1998–19 I.R.B. 6
98–25, 1998–19 I.R.B.4
Treasury Decisions:
8740, 1998–3 I.R.B. 4
8741, 1998–3 I.R.B. 6
8742, 1998–5 I.R.B.4
8743, 1998–7 I.R.B. 26
8744, 1998–7 I.R.B. 20
8745, 1998–7 I.R.B. 15
8746, 1998–7 I.R.B. 4
8747, 1998–7 I.R.B. 18
8748, 1998–8 I.R.B. 24
8749, 1998–7 I.R.B. 16
8750, 1998–8 I.R.B. 4
8751, 1998–10 I.R.B. 23
8752, 1998–9 I.R.B. 4
8753, 1998–9 I.R.B. 6
8754, 1998–10 I.R.B. 15
8755, 1998–10 I.R.B. 21
8756, 1998–12 I.R.B.4
8757, 1998–13 I.R.B.4
8758, 1998–13 I.R.B. 15
8759, 1998–13 I.R.B. 19
8760, 1998–14 I.R.B. 4
8761, 1998–14 I.R.B. 13
8762, 1998–14 I.R.B. 15
8763, 1998–15 I.R.B. 5
8764, 1998–15 I.R.B. 9
8765, 1998–16 I.R.B. 11
8766, 1998–16 I.R.B. 17
8767, 1998–16 I.R.B. 4
8768, 1998–20 I.R.B.4

May 26, 19981001998–21 I.R.B.
Finding List of Current Action on
Previously Published Items
1
Bulletins 1998–1 through 1998–20
Revenue Procedures:
91–59
Updated and superseded by
98–25, 1998–11 I.R.B. 7
94–16
Modified and superseded by
98–22, 1998–12 I.R.B. 11
93–62
Modified and superseded by
98–22, 1998–12 I.R.B. 11
95–35
95–35A
Superseded by
98–19, 1998–7 I.R.B. 30
96–29
Modified and superseded by
98–22, 1998–12 I.R.B. 11
97–1
Superseded by
98–1, 1998–1 I.R.B. 7
97–2
Superseded by
98–2, 1998–1 I.R.B. 74
97–3
Superseded by
98–3, 1998–1 I.R.B. 100
97–4
Superseded by
98–4, 1998–1 I.R.B. 113
97–5
Superseded by
98–5, 1998–1 I.R.B. 155
97–6
Superseded by
98–6, 1998–1 I.R.B. 183
97–7
Superseded by
98–7, 1998–1 I.R.B. 222
97–8
Superseded by
98–8, 1998–1 I.R.B. 225
97–21
Superseded by
98–2, 1998–1 I.R.B. 74
97–24
97–24A
Superseded by
98–33, 1998–19 I.R.B. 7
97–26
Obsoleted by
98–28, 1998–15 I.R.B. 14
97–53
Superseded by
98–3, 1998–1 I.R.B. 100
Revenue Rulings:
68–352
Obsoleted by
98–24, 1998–19 I.R.B. 6
73–198
Modified by
98–24, 1998–19 I.R.B. 6
75–17
Supplemented and superseded by
98–5, 1998–2 I.R.B. 20
92–19
Supplemented in part by
98–2, 1998–2 I.R.B. 15
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1997–27 through 1997–52 will be found in Internal
Revenue Bulletin 1998–1, dated January 5, 1998.

1998–21 I.R.B.101May 26, 1998
Notes

May 26, 19981021998–21 I.R.B.
Notes

INTERNAL REVENUE BULLETIN
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