Internal Revenue Bulletin 2006-32 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 200
6-32
August 7, 2006
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.
INCOME TAX
Rev. Rul. 2006–39, page 137.
Federal rates; adjusted federal rates; adjusted federal
long-termrateandthelong-termexemptrate.For pur-
poses of sections 382, 642, 1274, 1288, and other sections
of the Code, tables set forth the rates for August 2006.
Rev. Rul. 2
006–40, page 136.
LIFO; pric
e indexes; department stores.The May 2006
Bureau of L
abor Statistics price indexes are accepted for use
by departm
ent stores employing the retail inventory and last-in,
first-ou
t inventory methods for valuing inventories for tax years
ended on,
or with reference to, May 31, 2006.
EXEMPT ORGANIZATIONS
Announcement 2006–51, page 222.
A list is provided of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Rev. Proc. 2006–33, page 140.
Electronic filing; magnetic media; 2006 form specifi-
cations.This procedure contains updates and changes to
Publication 1220,Specifications for Filing Forms 1098, 1099,
5498 and W–2G Electronically or Magnetically.Rev.Proc.
2005–49 superseded.
Fi
nding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top quality service by helping
them understand and meet their tax responsibilities and by
applying the tax law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, 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 are compiled 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, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement 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 published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation 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 Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Sec-
retary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last 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 last Bulletin of each semiannual period.
The c
ontents 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.
August 7, 20062006–32 I.R.B.

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 42.—Low-Income
Housing Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term rates
are set forth for the month of August 2006. See Rev.
Rul. 2006-39, page 137.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of August 2006. See Rev. Rul.
2006-39, page 137.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 472.—Last-in,
First-out Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price
indexes; department
stores.Th
e May 2006 Bureau of Labor
Statistic
s price indexes are accepted for
use by depa
rtment stores employing the
retail inv
entory and last-in, first-out in-
ventory me
thods for valuing inventories
for tax ye
ars ended on, or with reference
to, May 31
, 2006.
Rev. Rul. 2006–40
The following Department Store In-
ventory Price Indexes for May 2006 were
issued by the Bureau of Labor Statistics.
The indexes are accepted by the Inter-
nal Revenue Service, under § 1.472–1(k)
of the Income Tax Regulations and Rev.
Proc. 86–46, 1986–2 C.B. 739, for ap-
propriate application to inventories of
department stores employing the retail
inventory and last-in, first-out inventory
methods for tax years ended on, or with
reference to, May 31, 2006.
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.
BUREAU O
F LABOR STATISTICS, DEPARTMENT STORE
INVENTO
RY PRICE INDEXES BY DEPARTMENT GROUPS
(January
1941 = 100, unless otherwise noted)
GroupsMay 2005May 2006
Percent Change
from May 2005
to May 2006
1
1. PieceGoods .............................................487.9473.3-3.0
2. DomesticsandDraperies..................................533.8491.1-8.0
3. Women’s
andChildren’sShoes ............................
666.7712.46.9
4. Men’sShoes.............................................878.3888.91.2
5. Infants’Wear ............................................572.5569.7-0.5
6. Women’
sUnderwear......................................
544.1550.41.2
7. Women’sHosiery ........................................343.1348.71.6
8. Women’sandGirls’Accessories ...........................594.1566.6-4.6
9. Women
’sOuterwearandGirls’Wear .......................
366.8366.70.0
10. Men’sClothing ..........................................563.9541.5-4.0
11. Men’sFurnishings........................................585.5573.0-2.1
12. Boys
’ClothingandFurnishings............................
431.0410.8-4.7
13. Jewelry..................................................892.1890.8-0.1
14. Notions .................................................811.0805.7-0.7
15. Toi
letArticlesandDrugs..................................
999.7997.0-0.3
16. FurnitureandBedding ....................................606.8604.8-0.3
17. FloorCoverings..........................................599.4605.91.1
2006–32 I.R.B.136August 7, 2006

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
GroupsMay 2005May 2006
Percent Change
from May 2005
to May 2006
1
18. Housewares..............................................716.6695.9-2.9
19. MajorAppliances.........................................204.5204.50.0
20. RadioandTelevision......................................39.536.6-7.3
21. Recreation and Education
2
.................................78.576.9-2.0
22. Home Improvements
2
.....................................136.5139.62.3
23. Automotive Accessories
2
..................................114.6119.84.5
Groups1–15:SoftGoods .......................................568.3563.0-0.9
Groups16–20:DurableGoods...................................382.3373.9-2.2
Groups 21–2
3: Misc. Goods
2
....................................
93.293.60.4
Store Total
3
..............................................501.5496.3-1.0
1
Absence of a minus sign before the percentage change in this column signifies a 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, food, liquor,
tobacco and contract departments.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Michael Burkom of the Office
of Associate Chief Counsel (Income Tax
and Accounting). For further informa-
tion regarding this revenue ruling, contact
Mr. Burkom at (202) 622–7924 (not a
toll-free call).
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
Federal short-term, mid-term, and long-term rates
are set forth for the month of August 2006. See Rev.
Rul. 2006-39, page 137.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term rates
are set forth for the month of August 2006. See Rev.
Rul. 2006-39, page 137.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 1274.—Determi-
nation of Issue Price in the
Case of Certain Debt Instru-
ments Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates;
adjusted federal long-term rate and the
long-term exempt rate.For purposes of
sections 382, 642, 1274, 1288, and other
sections of the Code, tables set forth the
rates for August 2006.
Rev. Rul. 2006–39
This revenue ruling provides various
prescribed rates for federal income tax
purposes for August 2006 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month
for purposes of section 1274(d) of the
Internal Revenue Code. Table 2 contains
the short-term, mid-term, and long-term
adjusted applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(2) for buildings placed in
service during the current month. Finally,
Table 5 contains the federal rate for deter-
mining the present value of an annuity, an
interest for life or for a term of years, or
a remainder or a reversionary interest for
purposes of section 7520.
August 7, 20061372006–32 I.R.B.

REV. RUL. 2006–
39 TABLE 1
Applicable Federal Rates (AFR) for August 2006
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR5.26%5.19%5.16%5.13%
110% AFR5.79%5.71%5.67%5.64%
120% AFR6.33%6.23%6.18%6.15%
130% AFR6.86%6.75%6.69%6.66%
Mid-term
AFR5.21%5.14%5.11%5.09%
110% AFR5.73%5.65%5.61%5.58%
120% AFR6.27%6.17%6.12%6.09%
130% AFR6.79%6.68%6.63%6.59%
150% AFR7.86%7.71%7.64%7.59%
175% AFR9.20%9.00%8.90%8.84%
Long-te
rm
AFR5.36%5.29%5.26%5.23%
110% AFR5.90%5.82%5.78%5.75%
120% AFR6.45%6.35%6.30%6.27%
130% AFR7.00%6.88%6.82%6.78%
REV. RUL. 2006–39 TABLE 2
Adjusted AFR for August 2006
Perio
d for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted
AFR
3.71%3.68%3.66%3.65%
Mid-term adjusted AFR3.95%3.91%3.89%3.88%
Long-term adjusted
AFR
4.52%4.47%4.45%4.43%
RE
V. RUL. 2006–39 TABLE 3
Rates Under Section 382 for August 2006
Adjusted federal long-term rate for the current month4.52%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted
federal long-term rates for the current month and the prior two months.)4.52%
REV. RUL. 2006–39 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for August 2006
Appropriate percentage for the 70% present value low-income housing credit8.23%
Appropriate percentage for the 30% present value low-income housing credit3.53%
2006–32 I.R.B.138August 7, 2006

REV. RUL. 2006–
39 TABLE 5
Rate Under Section 7520 for August 2006
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest6.2%
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
Section 7872.—Treatment
of Loans With Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2006. See Rev. Rul. 2006-39, page 137.
August 7, 20061392006–32 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
NOTE:
Following is a list of related instructions and forms for filing Information Returns Electronically/Magnetically:
• General Instructions for Forms 1099, 1098, 5498, and W–2G
• Specific Instructions for Individual Information Returns
• Form 4419 — Application for Filing Information Returns Electronically/Magnetically
• Form 4804 — Transmittal of Information Returns Reported Magnetically
• Form 8508 — Request for Waiver From Filing Information Returns Electronically/Magnetically
• Form 8809 — Application for Extension of Time to File Information Returns
• Notice 210 — Preparation Instructions for Media Labels
The Internal Revenue Service, Enterprise Computing Center — Martinsburg (IRS/ECC-MTB) encourages filers to make copies of
the blank forms for future use. These forms can be obtained by calling 1–800–829–3676 or on the IRS website atw
ww.irs.gov.
Use this Revenue Procedure to prepare Tax Year2006and prior year information returns for submission to Internal Revenue Service
(IRS) using any of the following:
- Electronic Filing
- Tape Cartridge
Caution to filers:
Please read this publication carefully. Persons or businesses required to file information returns electronically or
magnetically may be subject to penalties for failure to file or include correct information if they do not follow the
instructions in this Revenue Procedure.
ATTENTION: FORM 1099–INT AND 1099–OID WERE NOT FINALIZED AT THE TIME OF THIS POSTING.
PLEASE CONTACT ECC-MTB AT 866–455–7438 FOR AN UPDATE CONCERNING THESE FORMS. AN
ANNOUNCEMENT WILL BE ISSUED IN AN INTERNAL REVENUE BULLETIN WHEN THESE CHANGES
ARE FINALIZED.
IMPORTANT NOTES:
IRS/ECC-MTB now offers an Internet connection at h
ttp://fire.irs.govfor electronic filing. The Filing Information Returns
Electronically (FIRE) System will be down from 2 p.m. E.S.T. Dec. 21, 2006, through Jan. 2, 2007 for upgrading. It is not
operational during this time for submissions. The FIRE System does not provide fill-in forms.
IRS/ECC-MTB no longer accepts 3
1
/2-inch diskettes for filing information returns.
For tax year 2008 forms filed in calendar year 2009, IRS/ECC-MTB will no longer accept tape cartridges for the filing of
information returns. Electronic filing will be the ONLYacceptable method to file information returns at ECC-MTB.
Rev. Proc. 2006–33
TABLE OF CONTENTS
Part A. General
SEC. 1. PURPOSE................................................................................................. 143
2006–32 I.R.B.140August 7, 2006

SEC. 2. NATURE OF CHANGES — CURRENT YEAR (TAX YEAR2006)................................................. 143
SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, ENTERPRISE COMPUTING CENTER —
MARTINSBURG
....................................................................................... 144
SEC. 4. FILING REQUIREMENTS.................................................................................. 145
SEC. 5. VENDOR LIST............................................................................................. 146
SEC. 6. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS
ELECTRONICALLY/MAGNETICALLY
.................................................................. 147
SEC. 7. TEST FILES............................................................................................... 148
SEC. 8. FILING OF INFORMATION RETURNS MAGNETICALLY AND RETENTION REQUIREMENTS.................... 148
SEC. 9. DUE DATES............................................................................................... 149
SEC. 10. REPLACEMENT TAPE CARTRIDGES....................................................................... 150
SEC. 11. CORRECTED RE
TURNS
.................................................................
.................. 150
SEC. 12. EFFECT ON PAPER RETURNS AND STATEMENTS TO RECIPIENTS.......................................... 154
SEC. 13. COMBINED FEDERAL/STATE FILING PROGRAM........................................................... 154
SEC. 14. PENALTIES ASSOCIATED WITH INFORMATION RETURNS.................................................. 156
SEC. 15. STATE ABBREVIATIONS.................................................................................. 157
SEC. 16. MAJOR PROBLEMS ENCOUNTERED...................................................................... 158
Part B. Electronic Filing Specifications
SEC. 1. GENERAL................................................................................................ 159
SEC. 2. ADVANTAGES OF FILING ELECTRONICALLY............................................................... 159
SEC. 3. ELECTRONIC FILING APPROVAL PROCEDURE............................................................. 159
SEC. 4. TEST FILES............................................................................................... 160
SEC. 5. ELECTRONIC SUBMISSIONS............................................................................... 160
SEC. 6. PIN REQUIREMENTS...................................................................................... 161
SEC. 7. ELECTRONIC FILING SPECIFICATIONS.................................................................... 161
SEC. 8. CONNECTING TO THE FIRE SYSTEM....................................................................... 161
SEC. 9. COMMON PROBLEMS AND QUESTIONS ASSOCIATED WITH ELECTRONIC FILING........................... 163
Part C. Tape Cartridge Filing Specifications
Part D. Record Format Specifications and Record Layouts
SEC. 1. GENERAL................................................................................................. 164
SEC. 2. TRANSMITTER “T” RECORD — GENERAL FIELD DESCRIPTIONS............................................ 164
SEC. 3. TRANSMITTER “T” RECORD — RECORD LAYOUT.......................................................... 167
SEC. 4. PAYER “A” RECORD — GENERAL FIELD DESCRIPTIONS.................................................... 168
SEC. 5. PAYER “A” RECORD — RECORD LAYOUT.................................................................. 177
August 7, 20061412006–32 I.R.B.

SEC. 6. PAYEE “B” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUTS............................ 178
(1)Payee“B”Record—RecordLayoutPositions544–750forForm1098........................................... 185
(2)Payee“B”Record—RecordLayoutPositions544–750forForm1098–C......................................... 186
(3)Payee“B”Record—RecordLayoutPositions544–750forForm1098–E......................................... 187
(4)Payee“B”Record—RecordLayoutPositions544–750forForm1098–T......................................... 187
(5)Payee“B”Record—RecordLayoutPositions544–750forForm1099–A ........................................ 188
(6)Payee“B”Record—RecordLayoutPositions544–750forForm1099–B......................................... 189
(7)Payee“B”Record—RecordLayoutPositions544–750forForm1099–C......................................... 191
(8)Payee“B”Record—RecordLayoutPositions544–750forForm1099–CAP...................................... 192
(9)Payee“B”Record—RecordLayoutPositions544–750forForm1099–DIV...................................... 193
(10)Payee“B”Record—RecordLayoutPositions544–750forForm1099–G ........................................ 194
(11)Payee“B”Record—RecordLayoutPositions544–750forForm1099–H ........................................ 195
(12)Payee“B”Record—RecordLayoutPositions544–750forForm1099–INT ...................................... 195
(13)Payee“B”Record—RecordLayoutPositions544–750forForm1099–LTC...................................... 196
(14)Payee“B”Record—RecordLayoutPositions544–750forForm1099–MISC..................................... 198
(15)Payee“B”Record—RecordLayoutPositions544–750forForm1099–OID...................................... 199
(16)Payee“B”Record—RecordLayoutPositions544–750forForm1099–PATR..................................... 200
(17)Payee“B”Record—RecordLayoutPositions544–750forForm1099–Q ........................................ 201
(18)Payee“B”Record—RecordLayoutPositions544–750forForm1099–R......................................... 202
(19)Payee“B”Record—RecordLayoutPositions544–750forForm1099–S......................................... 206
(20)Payee“B”Record—RecordLayoutPositions544–750forForm1099–SA....................................... 207
(21)Payee“B”Record—RecordLayoutPositions544–750forForm5498........................................... 208
(22)Payee“B”Record—RecordLayoutPositions544–750forForm5498–ESA ..................................... 209
(23)Payee“B”Record—RecordLayoutPositions544–750forForm5498–SA....................................... 210
(24)Payee“B”Record—RecordLayoutPositions544–750forFormW–2G.......................................... 210
SEC. 7. END OF PAYER “C” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT.................... 212
SEC. 8. STATE TOTALS “K” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT..................... 214
SEC. 9. END OF TRANSMISSION “F” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD
LAYOUT
............................................................................................. 216
SEC. 10. FILE LAYOUT DIAGRAM.................................................................................. 217
Part E. Extensions of Time and Waivers
SEC. 1. GENERAL — EXTENSIONS................................................................................. 217
SEC. 2. SPECIFICATIONS FOR ELECTRONIC FILING OR TAPE CARTRIDGE EXTENSIONS OF TIME................... 218
SEC. 3. RECORD LAYOUT — EXTENSION OF TIME................................................................. 219
SEC. 4. EXTENSION OF TIME FOR RECIPIENT COPIES OF INFORMATION RETURNS................................. 220
SEC. 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS
ELECTRONICALLY/MAGNETICALLY
.................................................................. 221
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
Enterprise Computing Center — Martinsburg
Attn: Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
2006–32 I.R.B.142August 7, 2006

Sec. 1. Purpose
.01The purpose of this Revenue Procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W–2G with IRS
electronically through the IRS FIRE System or magnetically, using IBM 3480, 3490, 3490E, 3590, or 3590E tape cartridges. This
Revenue Procedure must be used for the preparation of Tax Year2006information returns and information returns for tax years prior
to2006filed beginning January 1, 2007, and postmarked by December 1, 2007.Specifications for filing the following forms are
contained in this Revenue Procedure.
(a)Form 1098, Mortgage Interest Statement
(b)Form 1098–C, Contributions of Motor Vehicles, Boats, and Airplanes
(c)Form 1098–E, Student Loan Interest Statement
(d)Form 1098–T, Tuition Statement
(e)Form 1099–A, Acquisition or Abandonment of Secured Property
(f)Form 1099–B, Proceeds From Broker and Barter Exchange Transactions
(g)Form 1099–C, Cancellation of Debt
(h)Form 1099–CAP, Changes in Corporate Control and Capital Structure
(i)Form 1099–DIV, Dividends and Distributions
(j)Form 1099–G, Certain Government Payments
(k)Form 1099–H, Health Coverage Tax Credit (HCTC) Advance Payments
(l)Form 1099–INT, Interest Income
(m)Form 1099–LTC, Long-Term Care and Accelerated Death Benefits
(n)Form 1099–MISC, Miscellaneous Income
(o)Form 1099–OID, Original Issue Discount
(p)Form 1099–PATR, Taxable Distributions Received From Cooperatives
(q)Form 1099–Q, Payments From Qualified Education Programs (Under Sections 529 and 530)
(r)Form 1099–R, Distributions From Pensions, Annuities, Retirement or Profit-SharingPlans, IRAs, Insurance Contracts, etc.
(s)Form 1099–S, Proceeds From Real Estate Transactions
(t)Form 1099–SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
(u)Form 5498, IRA Contribution Information
(v)Form 5498–ESA, Coverdell ESA Contribution Information
(w)Form 5498–SA, HSA, Archer MSA, or Medicare Advantage MSA Information
(x)Form W–2G, Certain Gambling Winnings
.02All data received at IRS/ECC-MTB for processing will be given the same protection as individual income tax returns (Form
1040). IRS/ECC-MTB will process the data and determine if the records are formatted and coded according to this Revenue Procedure.
.03Specifications for filing Forms W–2, Wage and Tax Statements, magnetically/electronically areonlyavailable from the Social
Security Administration (SSA). Filers cancall 1–800–SSA–6270 to obtain the telephone number of the SSA Employer Service Liaison
Officer for their area.
.04IRS/ECC-MTB doesnotprocess Forms W–2. Paperand/ormagnetic media for Forms W–2 must be sent to SSA. IRS/ECC-
MTB does, however, process waiver requests (Form 8508) and extension of time to file requests (Form 8809) for Forms W–2 as well
as requests for an extension of time to provide the employee copies of Forms W–2.
.05Generally, the box numbers on the paper forms correspond withthe amount codes used to file electronically/magnetically;
however, if discrepancies occur, the instructions in this Revenue Procedure govern.
.06This Revenue Procedure also provides the requirements and specifications for electronic or tape cartridge filing under the
Combined Federal/State Filing Program.
.07The following Revenue Procedures and publications provide moredetailed filing procedures for certain information returns:
(a)2006 General Instructions for Forms 1099, 1098, 5498, and W–2Gand individual form instructions.
(b)Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W–2G, and 1042–S.
(c)Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated
Tips, Magnetically/Electronically
(d)Publication 1187, Specifications for Filing Forms 1042–S, Foreign Person’s U.S. Source Income Subject to Withholding,
Electronically or Magnetically
.08This Revenue Procedure supersedes Rev. Proc. 2005–49 published as Publication 1220 (Rev. 9–2005), Specifications for
Filing Forms 1098, 1099, 5498, and W–2G Electronically or Magnetically.
Sec. 2. Nature of Changes — Current Year (Tax
Year2006)
.01In this publication, all pertinent changes for Tax Year2006are emphasized by the use ofitalics. Portions of text that require
special attention are in boldface text. Filers are always encouraged to read the publication in its entirety.
August 7, 20061432006–32 I.R.B.

a. General
(1)ECC-MTB no longer accepts 3½-inch diskettes for the filing of information returns.
(2)See Part A, Sec. 9.03 for times IRS/ECC-MTB will accept deliveries from private delivery or courier services.
(3)Since the only acceptable type of magnetic media is tape cartridge, most references to magnetic media were changed to
tape cartridge.
.02 Programming Changes
a. Programming Changes —Transmitter “T” Record
(1)For all Forms, Payment Year, Field Positions 2–5, must be incremented to update the four-digit reporting year (2005 to
2006), unless reporting prior year data.
(2)Two fields were deleted, Replacement Alpha Character, positions 21–22 and Electronic File name for a Replacement File,
positions 396–410.
(3)The Contact Email Address was expanded to 50 positions. This means several other fields have new positions. Also the
Vendor Contact Email Address was deleted.The new field positions are as follows:
(a) Contact Email Address, positions 359–408
(b) Cartridge Tape File Indicator, positions 409–410
b. Programming Changes — Payer “A” Record
(1)For all Forms, Payment Year, Field Positions 2–5, must be incremented to update the four-digit reporting year (2005 to
2006), unless reporting prior year data.
(2)For Form 1098–C, a new Amount Code 6, Value of goods or services in exchange for vehicle, positions 28–41, was added.
c. Programming Changes — Payee “B” Record
(1)For all Forms, Payment Year, Field Positions 2–5, must be incremented to update the four-digit reporting year (2005 to
2006), unless reporting prior year data.
(2)For Form 1098–C, three new fields were added. Donee Indicator, position 660, Intangible Religious Benefits Indicator,
position 661, Deduction $500 or Less Indicator, position 662 and Goods and Services, positions 731–748.
(3)For Forms 1098–T, in position 550, add Method of Reporting 2005 Amounts Indicator. Valid indicators are 1 for payments
received, and 2 for amounts billed.
(4)For Forms 1099–R, new date field, Year of DesignatedRoth Contribution, was added to positions 552–559.
(5)For Form 1099–R, a new distribution code, positions 545–546, was added, B for a distribution from a designated Roth
account.
Sec. 3. Where To File and How to Contact the IRS, Enterprise Computing Center — Martinsburg
.01All information returns filed electronically or magnetically are processed at IRS/ECC-MTB. Files containing information re-
turns and requests for IRS electronic and tape cartridge filing information should be sent to the following address:
IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
.02All requests for an extension of time to file information returns with IRS/ECC-MTB filed on Form 8809 or request for an
extension to provide recipient copies, and requests for undue hardship waivers filed on Form 8508 should be sent to the following
address:
IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
.03The telep
hone numbers for tape cartridge inquiries or electronic submissions are:
2006–32 I.R.B.144August 7, 2006

Information Reporting Program Customer Service Section
TOLL-FREE 1–866–455–7438 or outside the U.S. 1–304–263–8700
email at m
ccirp@irs.gov
304–267–3367 — TDD
(Telecommunication Device for the Deaf)
304–264–5602 — Fax Machine
Electronic Fi
ling — FIRE system
h
ttp://fire.irs.gov
TO OBTAIN FORMS:
1–800–TAX–FORM (1–800–829–3676)
w
ww.irs.gov— IRS website access to forms (See Note.)
Note: Because paper forms are scanned during processing, youcannot use forms printed from the IRS website to file Form
1096, and Copy A of Forms 1098, 1099, or 5498 with the IRS.
.04The2006 General Instructions for Forms 1099, 1098, 5498, and W–2Gis included in the Publication 1220 for your conve-
nience. Form 1096 is used only to transmit Copy A ofpaperForms 1099, 1098, 5498, and W–2G. If filing paper returns, follow the
mailing instructions on Form 1096 and submit the paper returns to the appropriate IRS Service Center.
.05Make requests for paper Forms 1096, 1098, 1099, 5498, and W–2G,and publications related to electronic/magnetic filing by
calling the IRS toll-free number1–800–TAX–FORM (1–800–829–3676) or ordering online from the IRS website at w
ww.irs.gov.
.06Questions pertaining to magnetic media or internet filing of Forms W–2mustbe directed to the Social Security Administration
(SSA). Filers can call 1–800–772–6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.
.07Payersshould notcontact IRS/ECC-MTB if they have received a penaltynotice and need additional information or are re-
questing an abatement of the penalty. A penalty notice contains an IRS representative’s name and/or telephone number for contact
purposes; or the payer may be instructed to respond inwriting to the address provided. IRS/ECC-MTB doesnotissue penalty no-
tices and doesnothave the authority to abate penalties. For penaltyinformation, refer to the Penalties section of the2006 General
Instructions for Forms 1099, 1098, 5498, and W–2G.
.08A taxpayer or authorized representative may request a copy of a tax return, including Form W–2 filed with a return, by submitting
Form 4506, Request for Copy of Tax Return, to IRS. This form may be obtained by calling1–800–TAX–FORM (1–800–829–3676).
For any questions regarding this form, call 1–800–829–1040.
.09The Information Reporting Program Customer Service Section (IRP/CSS), located at IRS/ECC-MTB, answers electronic/tape
cartridge, paper filing, and tax law questions from the payer community relating to the correct preparation and filing of business
information returns (Forms 1096, 1098, 1099, 5498, 8027, and W–2G).IRP/CSS also answers questions relating to the electronic/tape
cartridge filing of Forms 1042–S and the tax law criteria and paper filinginstructions for Forms W–2 and W–3. Inquiries dealing
with backup withholding and reasonable cause requirements due to missing and incorrect taxpayer identification numbers are also
addressed by IRP/CSS. Assistance is available year-round to payers, transmitters, and employers nationwide, Monday through Friday,
8:30 a.m. to 4:30 p.m. Eastern time, by calling toll-free1–866–455–7438or via email at m
ccirp@irs.gov.Do not include SSNs or
EINs in emails or in attachments since this is not a secure line.The Telecommunications Device for the Deaf(TDD)toll number
is304–267–3367. Call as soon as questions arise to avoid the busy filing seasons at the end of January and February. Recipients of
information returns (payees) should continue to contact 1–800–829–1040 with any questions on how to report the information returns
data on their tax returns.
.10IRP/CSS cannot advise filers where to send state copies of paper forms. Filers must contact the Tax Department in the state
where the recipient resides to obtain thecorrect address and filing requirements.
.11Form 4419, Application for Filing Information Returns Electronically/Magnetically, Form 8809, Application for Extension of
Time to File Information Returns, and Form 8508, Request for WaiverFrom Filing Information ReturnsElectronically/Magnetically,
may be faxed to IRS/ECC-MTB at 304–264–5602. Form 4804, Transmittal of Information Returns Filed Magnetically,mustalways
be included with media shipments.
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 file250 or more information returns must file such returns electroni-
August 7, 20061452006–32 I.R.B.

cally/magnetically.The 250* or more requirement applies separately foreach type of return and separately to each type of
corrected return.
*Even though filers may submit up to 249 information returns onpaper, IRS encourages filers to transmit those information
returns electronically or magnetically.
.02All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identification
Number (TIN), which may be either a Social Security Number (SSN),Employer Identification Number (EIN), or Individual Taxpayer
Identification Number (ITIN). For example, if a corporation with several branches or locations usesthe same EIN, the corporation
must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly.
.03Payers 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 by March 31,2006, are considered to have satisfied the
magnetic media filing requirements.
.04IRS/ECC-MTB has one method for filing information returns electronically; see Part B.
.05The following requirements apply separately to both originals and corrections filed electronically/magnetically:
1098
1098–C
1098–E
1098–T
1099–A
1099–B
1099–C
1099–CAP
1099–DIV
1099–G
1099–H
1099–INT
1099–LTC
1099–MISC
1099–OID
1099–PATR
1099–Q
1099–R
1099–S
1099–SA
5498
5498–ESA
5498–SA
W–2G
250ormoreofanyof these forms require electronic or magnetic media filing with IRS. These are
stand-alone documents and may not be aggregated for purposes of determining the 250 threshold. For
example, if you must file 100 Forms 1099–B and 300 Forms 1099–INT, Forms 1099–B need not be filed
electronically or magnetically since they do not meet the threshold of 250. However, Forms 1099–INT
must be filed electronically or magnetically since they meet the threshold of 250.
.06The above requirements do not apply if the payer establishes undue hardship (See Part E, Sec. 5).
Sec. 5. Vendor List
.01IRS/ECC-MTB prepares a list of vendors whosupport electronic or tapecartridge filing. The Vendor List (Pub. 1582) contains
the names of service bureaus that will produce or submit files forelectronic filing or on tape cartridges. It also contains the names
of vendors who provide software packages for payers who wish to produce electronic files or tape cartridges on their own computer
systems. This list is compiled as a courtesy and in no way implies IRS/ECC-MTB approval or endorsement.
.02If filers engage a service bureau to prepare files on their behalf, the filers must not report duplicate data, which may cause
penalty notices to be generated.
.03The Vendor List, Publication 1582, is updated periodically. The most recent revision is available on the IRS website at
w
ww.irs.gov. For an additional list of software providers, log on to www.irs.govandgototheApprovedIRSe-fileforBusiness
Providerslink.
.04A vendor, who offers a software package, or has the capability to electronically file information returns, or has the ability
to produce tape cartridges for customers, and who would like to be included in Publication 1582 must submit a letter or email to
IRS/ECC-MTB. The request should include:
(a)Company name
(b)Address (include city, state, and ZIP code)
(c)Telephone and FAX number (include area code)
(d)Email address
2006–32 I.R.B.146August 7, 2006

(e)Contact person
(f)Type(s) of service provided (e.g.,service bureau and/or software)
(g)Type(s) of media offered (e.g., tape cartridge, or electronic filing)
(h)Type(s) of return(s)
Sec. 6. Form 4419, Application for Filing Information Returns Electronically/Magnetically
.01Transmitters are required to submit Form 4419, Application forFiling Information Returns Electronically/Magnetically, to
request authorization to file information returns with IRS/ECC-MTB. A single Form 4419 should be filed no matter how many types
of returns the transmitter will be submitting electronically/magnetically. 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) will be filed, the
transmitter should not submit a new Form 4419.
Note: EXCEPTIONS — An additional Form 4419 is required for filing each of the following types of returns: Form 1042–S,
Foreign Person’s U.S. Source Income Subject to Withholding, and Form 8027, Employer’s Annual Information Return of Tip
Income and Allocated Tips. See the back of Form 4419 for detailed instructions.
.02Tape cartridge and electronically filed returns may not be submitted to IRS/ECC-MTB until the application has been approved.
Please read the instructions on the back of Form 4419 carefully. Form 4419 is included in the Publication 1220 for the filer’s use.
This form may be photocopied. Additional forms may be obtained by calling1–800–TAX–FORM (1–800–829–3676).The form is
also available on the IRS website atw
ww.irs.gov.
.03Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval
letter. The TCCmustbe coded in the Transmitter “T” Record. IRS/ECC-MTB uses the TCC to identify payer/transmitters and to
track their files through the processing system. The same TCC canbe used regardless of the method of filing. For example, a payer
may send their production data on a tape cartridge and then later file a correction file electronically. The same TCC can be used for
each filing.
.04IRS/ECC-MTB encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for
all payers. While not encouraged, multipleTCCs can be issued to payers with multiple TINs. Transmitter cannot use more than one
TCC in a file. Each TCC must be reported in separate transmissions if filing electronicallyor on separate media if filing magnetically.
.05If a payer’s files are prepared by a service bureau, the payer may not need to submit an applicationtoobtainaTCC.Some
service bureaus will produce files, code their own TCC in the file, and send it to IRS/ECC-MTB for the payer. Other service bureaus
will prepare the file and return the file to the payer for submission to IRS/ECC-MTB. These service bureaus may require the payer to
obtain a TCC, which is coded in the Transmitter “T” Record. Payers should contact their service bureaus for further information.
.06Form 4419 may be submitted anytime during the year; however, itmustbe submitted to IRS/ECC-MTB at least 30 days before
the due date of the return(s) for current year processing. This allows IRS/ECC-MTB the time necessary to process and respond to
applications.Form 4419 may be faxed to IRS/ECC-MTB at 304–264–5602. In the event that computer equipment or software is not
compatible with IRS/ECC-MTB, a waiver may be requested to file returns on paper documents (See Part E, Sec. 5).
.07Once a transmitter is approved to file electronically/magnetically, it is not necessary to reapplyunless:
(a)The payer has discontinued filing electronically or magnetically for two consecutive years. The payer’s TCC may have
been reassigned by IRS/ECC-MTB. Payers who know that the assigned TCC will no longer be used, are requested to notify
IRS/ECC-MTB so these numbers may be reassigned.
(b)The payer’s 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/ECC-MTB and wishes to prepare his or her own files. The payer must
request a TCC by filing Form 4419.
.08In 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 filed electronically or magnetically. 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 electronically/magnetically should be submitted. One TCC may be used for all departments.
.09Copies of Publication 1220 can be obtained by downloading from the IRS website atw
ww.irs.gov.
.10Ifanyof the information (name, TIN or address) on Form 4419changes, please notify IRS/ECC-MTB in writing so the
IRS/ECC-MTB database can be updated. The email address, m
ccirp@irs.gov, may be used for basic name and address changes.
IRS/ECC-MTB can not accept TIN information via email. A change inthe method by which information returns are submitted is not
information that needs to be updated (e.g., cartridge to electronic). The transmitter should include the TCC in all correspondence.
.11Approval to file does not imply endorsementby IRS/ECC-MTB of any computer software or of the quality of tax preparation
services provided by a service bureau or software vendor.
August 7, 20061472006–32 I.R.B.

Sec. 7. Test Files
.01IRS/ECC-MTB encourages first time electronic or tape cartridge filers to submit a test. Test files arerequiredfor filers wish-
ing to participate in the Combined Federal/State Filing Program. See Part A, Sec. 13, for further information on the Combined
Federal/State Filing Program.
.02The test filemustconsist 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 D for record formats.)
.03Use the Test Indicator “T” in Field Position 28 of the “T” Record to show this is a test file.
.04IRS/ECC-MTB 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.
.05Electronic tests may be submittedNovember 1, 2006, through February 15, 2007. See Part B, Sec. 4.03, for information on
electronic test results.
.06Tests submitted on tape cartridges should bepostmarkedno earlier thanOctober 2, 2006, and no later than December 1, 2006.
Tests must bereceivedat ECC-MTB by December 15 in order to be processed. Test processing will not begin until November 1. For
tests filed on tape cartridge, the transmitter must include the signed Form 4804 in the package with the tape cartridge. The “TEST”
box in Block 1 on Form 4804 must be marked and the external media label must denote “TEST”.
.07IRS/ECC-MTB will send a letter of acknowledgment to indicate the tape cartridge testresults. Unacceptable tape cartridge test
filers will receive a letter and/or documentation identifying the errors. Resubmission of tape cartridge test files must bereceivedby
IRS/ECC-MTB no later thanDecember 15, 2006.
TESTING PERIODS
TAPE CARTRIDGESELECTRONIC FILES
November 1, 2006, through December 15, 2006*November 1, 2006, through February 15, 2007
* Postmark media by Dec. 1 in order for tape cartridges to
bereceivedat ECC-MTB by December 15
Sec. 8. Filing of Information Returns Magnetically and Retention Requirements
.01Form 4804, Transmittal of Information Returns Reported Magnetically, or a computer-generated substitute, must accompany
alltape cartridge shipments except forreplacements, when Form 4804 is not always required (See Part A, Sec. 10).
.02IRS/ECC-MTB allows for the use of computer-generated substitutes for Form 4804. The substitutes must contain all infor-
mation requested on the original forms including the affidavit and signature line. Photocopies areacceptable, however, an original
signature is required. When using computer-generated forms, be sure to clearly mark the tax year being reported. This will eliminate
a telephone communication from IRS/ECC-MTB to verify the tax year.
.03Form 4804 may be signed by the payer or the transmitter, servicebureau, paying agent, or disbursingagent (all hereafter referred
to as agent) on behalf of the payer. Failureto sign the affidavit on Form 4804 may delayprocessing or could result in the files not
being processed. An agent may sign 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).”
.04Although an authorized agent may sign the affidavit, the payer is responsible for the accuracyof Form 4804 and the returns
filed. The payer will be liable for penalties for failure to comply with filing requirements.
.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.
.06Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to
IRS/ECC-MTB no earlier than January 1 of the year the returns are due. Filers may submit multiple original files by the due date as
long as duplicate information is not reported.
.07 Do not report duplicate information. If a filer submits returns electronically or magnetically, identical paper documents
must not be filed. This may result in erroneous penalty notices being sent to the recipients.
.08A self-adhesive external media label, created by the filer, must be affixed to each tape cartridge. For instructions on how to
prepare an external media label, refer to Notice 210 in the forms section of this publication.
2006–32 I.R.B.148August 7, 2006

.09When submitting files include the following:
(a)AsignedForm 4804
(b)External media label (created by filer) affixed to the tape cartridge
(c)IRB Box
oflabeled on outside of each package
.10IRS/ECC-MTB will not return media afterprocessing. Therefore, if the transmitter wants proof that IRS/ECC-MTB received
a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery. Shipping
containers will not be returned to the filer.
.11IRS/ECC-MTB will not pay for or accept “Cash-on-Delivery” or “Charge to IRS” shipments of tax information that an indi-
vidual or organization is legally required to submit.
.12 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, except:
(a)Retain for 4 years all information returns when backup withholding is imposed.
(b)A financial entity must retain a copy of Form 1099–C, Cancellation of Debt, or have the ability to reconstruct the data
required to be included on the return, for at least 4 years from the date such return is required to be filed.
Sec. 9. Due Dates
.01The due dates for filing paper returns with IRS also apply to tapecartridges. Filing of information returns is on a calendar year
basis, except for Forms 5498 and 5498–SA, which are used to report amounts contributed during or after the calendar year (but not
later than April 15). The following due dates will apply to Tax Year2006:
Due Dates
Electronic FilingTape Cartridge Filing (See Note.)
Forms 1098, 1099, and W–2G
Recipient Copy – January 31, 2007
IRS Copy – April 2, 2007
Forms 1098, 1099, and W–2G
Recipient Copy – January 31, 2007
IRS Copy – February 28, 2007
Electronic/Tape Cartridge Filing
Forms 5498*, 5498–SA and 5498–ESA
IRS Copy — May 31, 2007
Forms 5498 and 5498–SA Participant Copy — May 31, 2007
Form 5498–ESA Participant Copy — April 30, 2007
* Participants’ copies of Forms 5498 to furnish fair market value information — January 31, 2007
.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 day that is not a Saturday, Sunday, or legal holiday.
.03Tape cartridges postmarked by the United States Postal Service (USPS) on or before February 28, 2007, and delivered by United
States mail to the IRS/ECC-MTB after the due date, are treated as timely under the “timely mailing as timely filing” rule.Refer to
the2006 General Instructions for Forms 1099, 1098, 5498, and W–2G,When to File, located in the back of this publication for
more detailed information.Notice 97–26, 1997–1 C.B. 413, provides rules for determining the date that is treated as the postmark
date. For items delivered by a non-designated Private Delivery Service (PDS), the actual date of receipt by IRS/ECC-MTB will be
used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in Notice 2004–83, the
actual date of receipt by IRS/ECC-MTB will be used as the filing date.The timely mailing rule also applies to furnishing statements
to recipients and participants.
Note: Due to security regulations at ECC-MTB, the Internal Revenue police officers will only accept media from PDSs or
couriers from8:00 a.m. to 3:00 p.m., Monday through Friday.
.04Use this Revenue Procedure to prepare information returns filed electronically or magnetically beginningJanuary 1, 2007,and
postmarked no later thanDecember 1, 2007.
.05Media postmarked December 2, 2007 or latermusthave the Prior Year Data Indicator coded with a “P” in position 6 of the
Transmitter “T” Record.
August 7, 20061492006–32 I.R.B.

Sec. 10. Replacement Tape Cartridges
Note: Replacement Electronic files are detailed in Part B, Sec. 5.
.01A replacement is an information return file sent by the filerat the request of IRS/ECC-MTBbecause of errors encountered
while processing the filer’s original file or correction file. After the necessary changes have been made, the entire file must be returned
for processing along with the Media Tracking Slip (Form 9267) which was included in the correspondence from IRS/ECC-MTB. (See
Note.)
Note: Filers should never send anything to IRS/ECC-MTB marked “Replacement” unless IRS/ECC-MTB has requested a
replacement file in writing or via the FIRE System.
.02Tape cartridge filers will receive a Media Tracking Slip (Form 9267), listing, and letter detailingthe reason(s) their media could
not be processed. It is imperative that filers maintain backup copies and/or recreate capabilities for their information return files. Open
all correspondence from IRS/ECC-MTB immediately.
.03When possible, sample records identifying errors encountered will be provided with the returned information. It is the respon-
sibility of the transmitter to check the entire file for similar errors.
.04Before sending replacement media make certain the following items are addressed:
(a)Make the required changes noted in the enclosed correspondence and check entire file for other errors.
(b)Code Payer “A” record in position 49 with “1” for replacement file. See Part D, Sec. 4.
(c)Enclose Form 9267, Media Tracking Slip, with your replacement media.
(d)Label your media“Replacement Data”and indicate the appropriate Tax Year.
(e)CompleteanewForm4804if any of your information has changed.
.05Replacement files must be corrected and returned to IRS/ECC-MTB within 45 days from the date of the letter. Refer to Part
B, Sec. 5.05, for procedures for files submitted electronically. A penalty forfailure to return a replacement file will be assessed if the
files are not corrected and returned within the 45 daysor if filers are notified by IRS/ECC-MTB of the need for a replacement file
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 the2006 General Instructions for Forms 1099, 1098, 5498, and W–2G.)
Sec. 11. Corrected Returns
•Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit-
ted to and successfully processed by IRS/ECC-MTB, but contained erroneous information.
•While we encourage you to file your corrections electronically/magnetically, you may file upto 249 paper corrections even
though your originals were filedelectronically or magnetically.
•DO NOT SEND YOUR ENTIRE FILE AGAIN.Only correct the information returns which were erroneous.
•Information returns omitted from the original filemust notbe coded as corrections. Submit these returns under a separate
Payer “A” Record asoriginal returns.
•Be sure to use the same payee account number that was used onthe original submission. The account number is used to match
a correction record to the original information return.
•Before creating your correction file, review the correction guidelines chart carefully.
.01The magnetic media filing requirement of information returns of 250 or more applies separately to both original and corrected
returns.
E
X
A
M
P
L
E
If a payer has 100 Forms 1099–A to be corrected, theycan be filed on paper because they fall under the 250
threshold. However, if the payer has 300 Forms 1099–B to be corrected, they must be filed electronically or
magnetically because they meet the 250 threshold. Iffor some reason a payer cannot file the 300 corrections
electronically or magnetically, to avoid penalties, a request for a waiver must be submitted before filing
on paper. If a waiver is approved for original documents, any corrections for the same type of return will
be covered under this waiver.
2006–32 I.R.B.150August 7, 2006

.02Corrections should be filedas 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 Penalties
section of the2006 General Instructions for Forms 1099, 1098, 5498, and W–2G.) However, if payers discover errors after August
1, they should file corrections, as prompt correction is a factor considered in determining whether the intentional disregard penalty
should be assessed or whether a waiver of the penalty for reasonable cause may be granted. All fields must be completed with the
correct information, not just the data fieldsneeding correction. Submit corrections only for the returns filed in error, not the entire
file. Furnish corrected statementsto recipients as soon as possible.
Note: Do NOT resubmit your entire file as corrections. This willresult in duplicate filing and erroneous notices may be sent
to payees. Submit only those returns which require correction.
.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.
.04The payee’s account number should be included onallcorrection records. This is especially important when more than one
information return of the same type is reported for a payee. Theaccount number is used to determine which information return is
being corrected. It is vital that each information return reported for a payee have a unique account number. See Part D, Sec. 6, Payer’s
Account Number For Payee.
.05Corrected returns may be included on the same media as original returns; however, separate “A”Records are required. Cor-
rected returns must be identified on Form 4804 and the external medialabel 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.
.06If a payer realizes duplicate reporting has occurred, IRS/ECC-MTB should be contactedimmediatelyfor instructions on how
to avoid notices. The standard correction process will not resolve duplicate reporting.
.07If a payer discovers errors that affect a large number of payees, in addition to sending IRS the corrected returns and notifying the
payees, IRS/ECC-MTB underreporter section should be contacted toll-free 1–866–455–7438 for additional requirements. Corrections
must be submitted on actual information return documents or filed electronically/magnetically. Form 4804 must be submitted with
corrected files submitted magnetically. If filing magnetically, provide the correct tax year in Block 2 of Form 4804 and on the external
media label. A separate Form 4804 must be submitted for each tax yearreported magnetically. Form 4804 is not required for electronic
filing.
.08Prior year data, original and corrected,mustbe filed according to the requirements ofthis Revenue Procedure. When submitting
prior year data, use the record format for the current year. Each tax year must be submitted on separate media. However, use the actual
year designation of the data in Field Positions 2–5 of the “T”, “A”,and “B” Records. If filing electronically, a separate transmission
must be made for each tax year.
.09In general, filers should submit corrections for returns filed within the last 3 calendar years (4 years if the payment is a reportable
payment subject to backup withholding under section 3406 of the Code and also for Form 1099–C, Cancellation of Debt).
.10All paper returns, whether original or corrected, must be filed with the appropriate service center.IRS/ECC-MTB does not
process paper returns.
.11If a payer discovers an error(s) in reporting thepayername and/or TIN, write a letter to IRS/ECC-MTB (See Part A, Sec. 3)
containing the following information:
(a)
Name and address of payer
(b)Type of error (please include the incorrect payer name/TIN that was reported)
(c)Tax year
(d)Payer TIN
(e)TCC
(f)Type of return
(g)Number of payees
(h)Filing method, paper, electronic, or tape cartridge
.12The “B” Record provides a 20-position field for a unique Payer’s Account Number for Payee. If a payee has more than one
reporting of the same document type, it is vital that each reporting is assigned a unique accountnumber. This number will help
identify the appropriate incorrect return if morethan one return is filed for a particular payee.Do not enter a TIN in this field.
A payer’s account number for the payee may be a checking account number, savings account number, serial number, or any other
number assigned to the payee by the payer that will distinguish the specific account. This number should appear on the initial return
and on the corrected return in order to identify and process the correction properly.
.13The record sequence for filing correctionsisthesameasfororiginalreturns.
.14Review the chart that follows. Errors normally fall under oneof the two categories listed. Next to each type of error is a list of
instructions on how to file the corrected return.
August 7, 20061512006–32 I.R.B.

Guidelines for Filing Corrected Returns Electronically/Magnetically
Note: References to Form 4804 apply to magnetically filed returns only. Form 4804 is not required for files submitted
electronically through the FIRE System.
One transaction is required to make the following corrections properly. (See Note 3.)
Error Made on the Original ReturnHow To File the Corrected Return
ERRORTYPE1CORRECTION
1.Original return was filed with one or more of the
following errors:
A.Prepare a new Form 4804 that includes information
relating to this new file.
B.Mark “Correction” in Block 1 of Form 4804.
C.Prepare a new file. The first record on the file will be
the Transmitter “T” Record.
D.Make a separate “A” Record for each type of return
and each payer being reported. Payer information
in the “A” Record must be the same as it was in
the original submission. However, remove the “1”
(one) in Field Position 48 and set the Correction File
Indicator (Field Position 50), to “1” (one).
E.The Payee “B” Records must show the correct record
information as well as a Corrected Return Indicator
Code of “G” in Field Position 6.
F.Corrected returns using“G” coded “B” Records may
be on the same file as those returns submitted without
the “G” coded “B” Records; 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.
(a)Incorrect payment amount codes in the Payer “A”
Record
(b)Incorrect payment amounts in the Payee “B”
Record.
(c)Incorrect code in the distribution code field in
Payee “B” Record
(d)Incorrect payee address(See Note 3.)
(e)Incorrect payee indicator(See Note 1.)
(f)Incorrect payee name(See Notes 2 & 3.)
Note 1: Payee indicators are non-money amount
indicator fields located in the specific form record
layouts of the Payee “B” Record between field
positions 544–748.
Note 2: For information on correcting errors to the
payer’s name and TIN (See Part A, Sec. 11.11).
Note 3: To correct a TIN and/or payee name and
address follow the instructions under Error Type 2.
I.Indicate “Correction” on the external media label.
File layoutonestep corrections
Transmitter
“T”
Record
Payer
“A”
Record
“G”
coded
Payee “B”
Record
“G”
coded
Payee “B”
Record
End of Payer
“C”
Record
End of
Transmission
“F” Record
2006–32 I.R.B.152August 7, 2006

Guidelines for Filing Corrected Returns Electronically/Magnetically (Continued)
Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both
Transactions 1 and 2. (See Note 5.) DO NOT use the two step correction process to correct money amounts.
Error Made on the Original ReturnHow To File the Corrected Return
ERRORTYPE2CORRECTION
1.Original return was filed with one or more of the
following errors:
Transaction 1:Identify incorrect returns.
A.Prepare a new Form 4804 that includes information
related to this new file.
B.Mark “Correction” in Block 1 of Form 4804.
C.Prepare a new file. The first record on the file will be
the Transmitter “T” Record.
(a)No payee TIN (SSN, EIN, ITIN, QI-EIN)
(b)Incorrect payee TIN
(c)Incorrect payee name and address
(d)Wrong type of return indicator
Note 4: The Record Sequence Number will be
different since this is a counter number and is
unique to each file. For 1099–R corrections, if the
corrected amounts are zeros, certain indicators will
not be used.
D.Make a separate “A” Record for each type of return
and each payer being reported. The information in
the “A” Record will beexactlythe same as it was in
the original submission with one exception; remove
the“1” (one) from Field Position 48, and set the
Correction File Indicator (Field Position 50) to “1”
(one).(See Note 4.)
E.The Payee “B” Records must containexactly the
sameinformation as submitted previously,except,
insert a Corrected Return Indicator Code of “G” in
Field Position 6 of the “B” Records, and enter “0”
(zeros) in all payment amounts.(See Note 4.)
F.Corrected returns 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. Remove the “1”
(one) in Field Position 48 and set the Correction File
Indicator (Field Position 50), to “1” (one).
B.The Payee “B” Records must show the correct
information as well as a Corrected Return Indicator
Code of “C” in Field Position 6.
C.Corrected returns submitted to IRS/ECC-MTB using
“C” coded “B” Records may be on the same file as
those returns submitted with “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.
August 7, 20061532006–32 I.R.B.

Guidelines for Filing Corrected Returns Electronically/Magnetically (Continued)
Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both
Transactions 1 and 2. (See Note 5.) DO NOT use the two step correction process to correct money amounts.
Error Made on the Original ReturnHow To File the Corrected Return
CORRECTION
F.Indicate “Correction” on the external media label.
Note 5: See the2006 General Instructions for Forms 1099, 1098, 5498, and W–2Gfor additional information on regulations
affecting corrections and related penalties.
File layouttwostep corrections
Transmitt
er
“T”
Record
Payer
“A”
Record
“G”
coded
Payee “B”
Record
“G”
coded
Payee “B”
Record
End of Paye
r
“C”
Record
Payer
“A”
Record
“C”
coded
Payee “B”
Record
“C”
coded
Payee “B”
Record
End of Payer
“C”
Record
End of
Transmission
“F” Record
Note 6: If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns onthe same file, each category
must be reported under separate “A” Records.
Sec. 12. Effect on Paper Returns and Statements to Recipients
.01Electronic/Magnetic 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/ECC-MTB for any forms filed electronically or magnetically.This will result in
duplicate filing; therefore, erroneous notices could be generated.
.02Payers are responsible for providing statements to the payees as outlined in the2006 General Instructions for Forms 1099,
1098, 5498, and W–2G. Refer to those instructions for filing information returns on paper with the IRS and furnishing statements to
recipients.
.03Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifica-
tions and guidelines in Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W–2G and
1042–S.
Sec. 13. Combined Federal/State Filing Program
•Through the Combined Federal/State Filing (CF/SF) Program, IRS/ECC-MTB will forward original and corrected information
returns filed electronically or magnetically toparticipating states for approved filers.
•For approval, the filer must submit a test file coded for this program. See Part A, Sec. 7, Test Files.
•For tape cartridge test files, attach a letter to Form 4804 requesting approval to participate in the CF/SF Program. Form 4804
or letter is not required fortests sent electronically.
•Approved filers are sent Form 6847, Consent for Internal Revenue Service to Release Tax Information, which must be com-
pleted and returned to IRS/ECC-MTB. A separate form is required for each payer.
2006–32 I.R.B.154August 7, 2006

.01The Combined Federal/State Filing (CF/SF) Program was established to simplify information returns filing for the taxpayer.
IRS/ECC-MTB will forward this information to participating states free of charge for approved filers. Separate reporting to those
states is not required. The following information returns may be filed under theCombined Federal/State Filing Program:
Form 1099–DIVDividends and Distributions
Form 1099–GCertain Government Payments
Form 1099–INTInterest Income
Form 1099–MISCMiscellaneous Income
Form 1099–OIDOriginal Issue Discount
Form 1099–P
ATR
Taxable Dis
tributions Received From Cooperatives
Form 1099–RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.
Form 5498IRA Contribution Information
.02To request approval to participate, a tapecartridge test file coded for this programmustbe submitted to IRS/ECC-MTB between
November l, 2006, and December 15, 2006.Media must bepostmarkedno later than December 1, 2006 in order to be received at
ECC-MTB by December 15 for processing. Electronic test files coded for this program must be submitted betweenNovember 1, 2006,
and February 15, 2007.
.03Attach a letter to Form 4804 submitted with the test file to indicate the filer is requesting approval to participate in the Combined
Federal/State Filing Program. Test files sent electronically do not require Form 4804 or letter. If the test file is coded for the Combined
Federal/State Filing Program and is acceptable, an approval letter and Form 6847, Consent for Internal Revenue Service to Release
Tax Information, will be sent to the filer.
.04Form 6847, Consent for Internal Revenue Service to Release Tax Information,mustbe completed and signed by the payer, and
returned to IRS/ECC-MTB before any tax information can be released to the state. Filers must write their TCC on Form 6847.
.05While a test file is only required for the first year when a filer applies to participate in the Program, it is highly recommended
that a test be sent every year you participate in the Combined Federal/State Filing program. Each record, both in the test and the actual
data file, must conform to the current Revenue Procedure.
.06If the test file is not acceptable, IRS/ECC-MTB will send tape cartridge filers information indicating the problems. Electronic
filers must log on to the FIRE System within two business days to check the acceptability of their test file. The new test file must be
postmarked no later than December 1, 2006 for tape cartridges, or transmitted by February 15, 2007 for an electronically filed test.
.07A separate Form 6847 isrequiredfor each payer. A transmitter may not combine payers on one Form 6847 even if acting as
Attorney-in-Fact for several payers. Form6847 may be computer-generated as long as it includes all information on the original form,
or it may be photocopied. If 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.
.09If a payee has a reporting requirement for more than one state,separate “B” records must be created for each state. Payers must
pro-rate the amounts to determine what should be reported to each state. Donotreport the total amount to each state. This will cause
duplicate reporting.
.10Some participating states require separate notification thatthepayerisfilinginthismanner. SinceIRS/ECC-MTBactsasa
forwarding agent only, it is the payer’sresponsibility to contact the appropriate states for further information.
.11All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states.
Only send corrections which affect the Federal reporting. Errors which apply only to the state filing requirement should be sent directly
to the state.
.12
Participating states and corresponding valid state codes are listed inTable 1of this section. The appropriate state codemust
be entered for those documents that meet the state filing requirements;do not use state abbreviations.
.13Each state’s filing requirements are subject to change by the state. It is the payer’s responsibility to contact the participating
states to verify their criteria.
.14Upon submission of the actual files, the transmittermustbe sure of the following:
(a)All records are coded exactly as required by this Revenue Procedure.
(b)A State Total “K” Record(s) for each state(s)being reported follows the “C” Record.
(c)Payment amount totals and the valid participating statecode are included in the State Totals “K” Record(s).
(d)The last “K” Record is followed by an “A” Record or an End of Transmission “F” Record (if this is the last record of the
entire file).
August 7, 20061552006–32 I.R.B.

Table 1. Participating States and Their Codes *
StateCodeStateCodeStateCode
Alabama01Indiana18Nebraska31
Arizona04Iowa19NewJersey34
Arkansas05Kansas20New Mexico35
California06Louisiana22North Caroli
na
37
Colorado07Maine23North Dakota38
Connecticut08Maryland24Ohio39
Delaware10Massachusetts25South Carolina45
District of Columbia11Minnesota27Virginia51
Georgia13Mississippi28Wisconsin55
Hawaii15Missouri29
Idaho16Montana30
* The codes listed above are correct for the IRS Combined Federal/State Filing Program and may not correspond to the
state codes of other agencies or programs.
Sample File Layout for Combined Federal/State Filer
Transmitter
“T”
Record
Payer
“A”
Record coded
with 1 in
position 26
Payee “B”
Record with
statecode15
in position
747–748
Payee “B”
Record with
statecode06
in position
747–748
Payee “B”
Record, no
state code
End of Payer
“C” Record
State Total “K” Record
for “B” records coded 15.
“K” record coded 15 in positions
747–748.
State Total “K” Record
for “B” records coded 06.
“K” record coded 06 in positions
747–748.
End of Transmission “F”
Record
Sec. 14. Penalties Associated With Information Returns
.01The following penalties generally apply to the person required to file information returns. The penalties apply to electronic/mag-
netic media filers as well as to paper filers.
.02 Failure To File Correct Information Returns by the Due Date (Section 6721).If you fail to file a correct information return
by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely,
you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also
applies if you file on paper when you were required to file either electronically or magnetically, you report an incorrect TIN or fail to
report a TIN, or you fail to file paper forms that are machine readable.
The amount of the penalty is based on when you file the correct information return. The penalty is:
•$15per information return if you correctly file within 30 daysof the due date of the return (See Part A, Sec. 9.01); maximum
penalty $75,000 per year ($25,000 for small businesses).
•$30per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $150,000
per year ($50,000 for small businesses).
•$50per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000
per year ($100,000 for small businesses).
.03A late filing penalty may be assessed for a replacement file which is not returned by the required date. Files which require
replacement more than two times will also be subject to penalty.See Part A, Sec. 10, for more information on replacement files.
2006–32 I.R.B.156August 7, 2006

.04 Intentional disregard of filing requirements.If failure to file a correct information return is due to intentional disregard of
the filing or correct information requirements, the penalty isat least $100 per information return with no maximum penalty.
.05 Failure To Furnish Correct Payee Statements (Section 6722). For information regarding penalties which may apply to
failure to furnish correct payee statements, see2006 General Instructions for Forms 1099, 1098, 5498, and W–2G.
Sec. 15. State Abbreviations
.01The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. This
table provides state and territory abbreviations only, and does not represent those states participating in the Combined Federal/State
Filing Program.
StateCodeStateCodeStateCode
AlabamaALKentuckyKYNo. Mariana IslandsMP
AlaskaAKLouisianaLAOhioOH
American SamoaASMaineMEOklahomaOK
ArizonaAZMarshall IslandsMHOregonOR
ArkansasARMarylandMDPennsylvaniaPA
CaliforniaCAMassachusettsMAPuerto RicoPR
ColoradoCOMichiganMIRhode IslandRI
Connectic
ut
CTMinnesotaMNSouth Caro
lina
SC
DelawareDEMississippiMSSouth DakotaSD
District of ColumbiaDCMissouriMOTennesseeTN
Federated States of Micronesia FMMontanaMTTexasTX
FloridaFLNebraskaNEUtahUT
GeorgiaGANevadaNVVermontVT
GuamGUNew Hamp
shire
NHVirgini
a
VA
HawaiiHINew JerseyNJ(U.S.) Virgin IslandsVI
IdahoIDNew MexicoNMWashingtonWA
IllinoisILNew YorkNYWest VirginiaWV
IndianaINNorth CarolinaNCWisconsinWI
IowaIANorth DakotaNDWyomingWY
Kansa
s
KS
.02Filers must adhere to the city, state, and ZIP Code format for U.S. addresses in the “B” Record. This also includes American
Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
.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.
.04When reporting APO/FPO addresses, use the following format:
EXAMPLE:
Payee NamePVT Willard J. Doe
Mailing AddressCompany F, PSC Box 100
167 Infantry REGT
Pay
ee City
APO
(or FPO)
Payee StateAE, AA, or AP*
Payee ZIP Code098010100
*A
E is the designation for ZIPs beginning with 090–098, AA for ZIP 340, and AP for ZIPs 962–966.
August 7, 20061572006–32 I.R.B.

Sec. 16. Major Problems Encountered
IRS/ECC-MTB 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/ECC-MTB to request replacement files. This may be important for those payers who have either had
their files prepared by a service bureau orwho have purchased software packages.
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 problems most frequently encounteredwith electronic/magnetic files submitted
to IRS/ECC-MTB. These problems may result inIRS/ECC-MTB requesting replacement files.
1. Unable to read tape cartridge.
Please review all tape cartridge specifications carefully (See Part C, Sections 1 and 2.)
2. No Form 4804, Transmittal of Information Returns Reported Magnetically
Each shipment of media sent to IRS/ECC-MTB must include asignedForm 4804.
3. Discrepancy Between IRS/ECC-MTB Totals and Totals in Payer “C” Records
The “C” Record is a summary record for a type of return for agiven payer. IRS compares the total number of payees and
payment amounts in the “B” records with totals in the “C” Records. The two totalsmustagree. DoNOTenter negative amounts
except when reporting Forms 1099–B or 1099–Q. Money amounts mustbe all numeric, right-justified and zero (0) fill unused
positions.Do Not Use Blanks.
4. The Payment Amount Fields in the “B” Record Do Not Correspond to the Amount Codes in the “A” Record
The Amount Codes used in the “A” recordMUSTcorrespond with the payment amount fields used in the “B” records. The amount
codes must be left-justified, in ascendingorder with the unused positions blank. For Example: If the “B” records show payment
amounts in payment amount fields 2, 4, and 7, then the “A” record must correspond with 2, 4, and 7 in the amount codes field.
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 only.(Do Not Enter Hyphen.)
The TIN and the First Payer Name Line provided in the “A” record must correspond.
6. Incorrect Tax Year in the Transmitter “T” Record, Payer “A” Record and the Payee “B” Records
The tax year in the transmitter, payer and payee records should reflect the tax year of the information return being reported. For
prior tax year data, there must be a “P” in position 6 of the Transmitter “T” record. Media postmarked December 2, 2006 or
latermusthave the Prior Year Data Indicator coded with a “P” in position 6 of the Transmitter “T” Record. This position must
be blank for current tax year data.
7. Incorrect use of Test Indicator
When sending a test file, position 28 of the Transmitter“T” record must contain a “T”, otherwise blank fill.
8. Incorrect Format for TINs in the Payee “B” Record
TINs entered in position 12–20 of the Payee “B” record must consist of nine numerics only.(Do Not Enter Hyphens.)Incorrect
formatting of TINs may result in a penalty.
9. Distribution Codes for Form 1099–R Reported Incorrectly
For Forms 1099–R, there must be valid Distribution Code(s) inposition 545–546 of the Payee “B” record. For valid codes (and
combinations), see Guide to Distribution Codes in Part D. If only one distribution code is required, it must be entered in position
545 and position 546 must be blank. A blank in position 545 is not acceptable.
10. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on Form 4804 (Block 6) are used in the verification process of information returns.
The figure in this blockmustbe the total number of payee “B” records contained on each individual piece of media submitted.
A separate Form 4804 should be sent foreach piece of media that contains a file.
2006–32 I.R.B.158August 7, 2006

11. Missing Correction Indicator in Payee “B” Record
When a file is submitted as a correction file, there must be acorrection indicator, “G” or “C” in position 6 of the Payee “B”
record. See Part A, Sec. 11.
Part B. Electronic Filing Specifications
Note: The FIRE System DOES NOT provide fill-in forms. Filersmust program files according to the Record Layout Specifi-
cations contained in this publication. For a list of software providers, log on to w
ww.irs.govandgototheApprovedIRSe-file
forBusinessProviderslink.
Sec. 1. General
.01Electronic filing of Forms 1098, 1099, 5498, and W–2G information returns, originals, corrections, and replacements is offered
as an alternative to tape cartridges or paper filing. Filing electronically will fulfill the magnetic media requirements for those payers
who are required to file magnetically. Payers who are under the filing threshold requirement, are encouraged to file electronically.
If the original file was sent magnetically, but IRS/ECC-MTB hasrequested a replacement file, the replacement may be transmitted
electronically. Also, if the original file was submitted via tapecartridge, any corrections may be transmitted electronically.
.02All electronic filing of information returns are received at IRS/ECC-MTB via the FIRE (FilingInformation Returns Electron-
ically) System. To connect to the FIRE System, point your browser toh
ttp://fire.irs.gov. The system is designed to support the
electronic filing of information returns only.
.03The electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain
separate approval to participate in each program. Only inquiries concerning electronic filing of information returns should be directed
to IRS/ECC-MTB.
.04Files submitted to IRS/ECC-MTB electronically must be in standard ASCII code. Do not send tape cartridges or paper forms
with the same information as electronicallysubmitted files. This would create duplicate reporting resulting in penalty notices.
.05The record formats of the “T”, “A”, “B”, “C”, “K”, and “F” records are the same for both electronically or magnetically filed
records. See Part D, Record FormatSpecifications and Record Layouts.
Sec. 2. Advantages of Filing Electronically
Some of the advantages of filing electronically are:
(1)Paperless, no Form 4804 requirements.
(2)Security – Secure Socket Layer (SSL) 128-bit encryption.
(3)Results available within 1–2 workdays regarding the acceptability of the data transmitted. It is the filer’s responsibility to
log into the system and check results.
(4)Later due date than tape cartridge or paper for electronicallyfiled Forms 1098, 1099, and W–2G (refer to Part A, Sec. 9.01).
(5)Allows more attempts than a tape cartridge filing to replace bad files within a specific time frame before imposing penalties
(refer to Part B, Sec. 5.05).
(6)Better customer service due to on-line availability of transmitter’s files for research purposes.
(7)Extended period to test electronic files: November 1, 2006 to February 15, 2007.
Sec. 3. Electronic Filing Approval Procedure
.01Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Filers who currently have a TCC
for magnetic media filing may use their assigned TCC for electronic filing. Refer to Part A, Sec. 6, for information on how to obtain
a TCC.
.02Once a TCC is obtained, electronic filers assign their own userID, password and PIN (Personal Identification Number) and do
not need prior or special approval. See Part B, Sec. 6, for more information on the PIN.
.03If a filer is submitting files for more than one TCC, it is notnecessary to create a separate logon and password for each TCC.
.04For all passwords, it is the user’s responsibility to remember the password and not allow the password to be compromised.
Passwords are user assigned at first logon and must be 8 alpha/numerics containing at least 1 uppercase, 1 lowercase, and 1 numeric.
However, filers who forget their password or PIN, can calltoll-free 1–866–455–7438for assistance. The FIRE System may require
users to change their passwords on a yearly basis.
August 7, 20061592006–32 I.R.B.

Sec. 4. Test Files
.01Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to
test hardware and software. If filers wish to submit an electronic test file for Tax Year2006(returns to be filed in2007), itmustbe
submitted to IRS/ECC-MTBno earlier thanNovember 1, 2006, andno later thanFebruary 15, 2007.
.02Filers who encounter problems while transmitting the electronic test file can contact IRS/ECC-MTBtoll-free 1–866–455–7438
for assistance.
.03Filers must verify the status of the transmitted test data by returning toh
ttp://fire.irs.govto check the status of their file by
clicking on CHECK FILE STATUS. This information will be available within 1–2 workdays after the transmission is received by
IRS/ECC-MTB.If your results indicate:
(a) “Good, Federal Reporting”— Your test file is good for federal reporting only. Click on the filename for additional details.
(b) “Good, Federal/State Reporting”— Your file is good for the Combined Federal and State Filing Program (see Part A,
Section 13 for further details). Click on the filename for additional details.
(c) “Bad”— This means that your test file contained errors. Click on the filename for a list of the errors. If you want to send
another test file, send it as another test (not a replacement, original or correction).
(d) “Not Yet Processed”— The file has been received, but we do not have results available yet. Please allow another day for
results.
.04Form 4804 is not required for test files submitted electronically. See Part B, Sec. 6.
.05 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec. 13,
for further details.
Sec. 5. Electronic Submissions
.01Electronically filed information may be submitted to IRS/ECC-MTB 24 hours a day, 7 days a week. Technical assistance is
available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern time by callingtoll-free 1–866–455–7438.
.02 The FIRE System will be down from 2 p.m. EST December 21, 2006, through January 2, 2007.This allows IRS/ECC-
MTB to update its system to reflect current year changes.
Note: Current year data MAILED December 2 or later or electronic files SENT December 21 or later must be coded with a
“P”. Current year processing ends in December and programs are converted for the next processing year.
.03If you are sending files larger than 10,000 records electronically, data compression is encouraged. When transmitting files
larger than 5 million records, please contact IRS/ECC-MTB for additional information. WinZip and PKZip are the only acceptable
compression packages. IRS/ECC-MTB cannot accept self-extracting zip files or compressed files containing multiple files. The time
required to transmit information returns electronically will vary depending upon the type of connection to the internet and if data
compression is used.The time required to transmit a file can be reduced up to 95 percent by using compression.
.04The Fire System can accept multiple files for the same type of return providing duplicate data is not transmitted. For example,
your company has several branches issuing 1099–INT forms. It is not necessary to consolidate all the forms into one transmission.
Each file may be sent separately,providing duplicate data is not transmitted.
.05Transmitters may create files using self assigned file name(s). Files submitted electronically will be assigned a new unique file
name by the FIRE System. The filename assigned by the FIRE System will consist of submission type (TEST, ORIG [original], CORR
[correction], and REPL [replacement]), the filer’s TCC and a four-digit number sequence. The sequence number will be incremented
for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename
would be ORIG.44444.0001.Record the filename.This information will be needed by ECC-MTB to identify the file, if assistance
is required.
.06If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was transmitted to transmit an
acceptable file. If an acceptable file is not received within 60 days, the payer could be subject to late filingpenalties. This only applies
to files originally submitted electronically.
.07The 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/ECC-MTB, but contained erroneous information.(See Note.)
Note: Corrections should only be made to records that have been submitted incorrectly, not the entire file.
•Areplacementis an information return file sent by the filer because the CHECK FILE STATUS option on the FIRE System
indicated the original/correction file wasbad. After the necessary changes have been made, the file must be transmitted through
the FIRE System.(See Note.)
2006–32 I.R.B.160August 7, 2006

Note: Filers should never transmit anything to IRS/ECC-MTB as a “Replacement” file unless the CHECK FILE STATUS
option on the FIRE System indicates the file is bad.
.08The TCC in the Transmitter “T” Record must be the TCC used to transmit the file; otherwise, the file will be considered an
error.
Sec. 6. PIN Requirements
.01Form 4804 is not required for electronic files. Instead, the user will be prompted to create a PIN consisting of 10 numerics
when establishing their initial logon name and password.
.02The PIN is required each time an ORIGINAL, CORRECTION, or REPLACEMENT file is sent electronically and is permission
to release the file. It is not needed for a TEST file. An authorized agent may enter their PIN, however, the payer is responsible for the
accuracy of the returns. The payer will be liable for penalties for failure to comply with filing requirements. If you forget your PIN,
please calltoll-free 1–866–455–7438for assistance.
.03If the file is good, it is released for mainline processing after 10 calendar days from receipt. Contact ustoll-free 1–866–455–7438
within this 10-day period if there is a reason the file should not be released for further processing. If the file is bad, follow normal
replacement procedures.
Sec. 7. Electronic Filing Specifications
.01The FIRE System is designed exclusively for the filing of Forms 1042–S, 1098, 1099, 5498, 8027, and W–2G.
.02A transmitter must have a TCC (see Part A, Sec. 6) before a filecan be transmitted. A TCC assigned for magnetic media filing
should also be used for electronic filing.
.03The results of the electronic transmission will be available in the CHECK FILE STATUS area of the FIRE System within 1–2
business days. It is the filer’s responsibility to verify the acceptability of files submitted by selecting the CHECK FILE STATUS
option. Forms 1042–S and 8027 require a longer processing time.
Sec. 8. Connecting to the FIRE System
.01Point your browser to http://fire.irs.govto connect to the FIRE System.
.02Filers should turn off their pop-up blockingsoftware before transmitting their files.
.03Before connecting, have your TCC and EIN available.
.04Your browser must support SSL 128-bit encryption.
.05Your browser must be set to receive “cookies”. Cookies are used to preserve your User ID status.
F
irsttimeconnectiontoTheFIRESystem(If you have logged on previously, skip to Subsequent Connections to the FIRE
System.)
Click“Create New Account”.
Fill out the registration form and click“Submit”.
Enter yourUser ID(most users logon with their first and last name).
Enter and verify yourpassword(the password is user assigned and must be 8 alpha/numerics,
containing at least 1 uppercase, 1 lowercase and1numeric).FIREmayrequireyoutochange
the password once a year.
Click“Create”.
If you receive the message“Account Created”,click“OK”.
Enter and
verify your 10-digit self-assigned PIN(Personal Identification Number).
Click“Submit”.
If you receive the message“Your PIN has been successfully created!”,click“OK”.
Read the bulletin(s) and/or“Click here to continue”.
S
ubsequentconnectionstoTheFIRESystem
Click“Log On”.
Enter yourUser ID(most users logon with their first and last name).
Enter yourpassword(the password is user assigned and is case sensitive).
August 7, 20061612006–32 I.R.B.

UploadingyourfiletotheFIRESystem
At Menu Options
:
Click“Send Information Returns”
Enter yourTCC:
Enter yourEIN:
Click“Submit”.
The system will then display the company name, address, city, state, ZIP code, phone number,
contact and email address. This information will be used to contact or send correspondence (if
necessary) regarding this transmission. Update as appropriate and/or Click“Accept”.
Click one of the following:
Original File
Correcti
on File
Test File(This option will only be available 11/1/2006 — 02/15/2007.)
Replacement File(if you select this option, select one of the following):
Electro
nic Replacement(file was originally transmitted on this system)
Click the file to be replaced.
Magnetic Media Replacement
Enter the alpha character from Form9267, Media Tracking Slip, that was
sent with the request for replacement file. Click“Submit”.
Enter your 10-digit PIN.
Clic
k“Submit”.
Click“Browse”to locate the file and open it.
Click“Upload”.
When the upload is complete, the screenwill display the total bytes received and tell you the name of the file you just
uploaded.
If you have more files to upload for that TCC:
Click“File Another?”;otherwise,
Click“Main Menu”.
It is your responsibility to check the acceptability of your file; therefore, be sure to check back into the system in 1–2
business days using the CHECK FILE STATUS option.
CheckingyourFILESTATUS
At the Main Menu:
Click“Check File Status”.
Enter yourTCC:
Enter yourEIN:
Click“Search”.
If “Results” indicate:
“Good, Not Released”and you agree with the “Count of Payees”, you
are finished with this file. The file will automatically be released after 10
calendar days unless you contact us within this timeframe.
“Good, Released”– File has been released to our mainline processing.
“Bad”– Correct the errors and timely resubmit the file as a “replacement”.
2006–32 I.R.B.162August 7, 2006

“Not yet processed”– File has been received, but we do not have results
available yet. Please check back in a few days.
Click on the des
ired file for a detailed report of your transmission.
When you are finished, click onMain Menu.
Click“Log Out”.
Close your Web Browser.
Sec. 9. Common Problems and Questions Associated with Electronic Filing
.01Refer to Part A, Sec. 16, for common format errors associated with electronic/magnetic files.
.02The following are the major errors associated with electronic filing:
N
ON-FORMATERRORS
1. Transmitter does not check the FIRE System to determine file acceptability.
The results of your file transfer are posted to the FIRE System within two business days. It is your responsibility to verify file
acceptability and, if the file contains errors, you can get an online listing of the errors. Date received and number of payee records
are also displayed. If the file is good, but you do not wantthe file processed, you must contact IRS/ECC-MTB within 10
calendar days from the transmission of your file.
2. Incorrect file is not replaced timely.
If your fi
le is bad, correct the file and timely resubmit as a replacement.
3. Transmitter compresses several files into one.
Only compress one file at a time. For example, if you have 10 uncompressed files to send, compress each file separately and
send 10 separate compressed files.
4. Transmitter sends a file and CHECK FILE STATUS indicates that the file is good, but the transmitter wants to send a
replacement or correction file to replace the original/correction/replacement file.
Once a file has been transmitted, you cannot send a replacement file unless CHECK FILE STATUS indicates the file is bad
(1–2 business days after file was transmitted). If you do not want us to process the file, you must first contact ustoll-free
1–866–455–7438to see if this is a possibility.
5. Tran
smitter sends an original file that is good, and then sends a correction file for the entire file even though there are
onlyaf
ew changes.
The correction file, containing the proper coding, should only contain the records needing correction, not the entire file.
6. File is formatted as EBCDIC.
All files submitted electronicallymust be in standard ASCII code.
7. Transmitter has one TCC number, but is filing for multiple companies, which EIN should be used when logging
into the system to send the file?
When sending the file electronically, youwill need to enter the EIN of the company assigned to the TCC. When you upload the
file, it will contain the EINs of the other companies for which you are filing. This is the information that will be passed forward.
8. Transmitter sent the wrong file, what should be done?
Cal
l us as soon as possibletoll-free 1–866–455–7438. We may be able to stop the file before it has been processed.Please do not
sen
d a replacement for a file that is marked as a good file.
Part C. Tape Cartridge Specifications
.01Transmitters should be consistent in the use of recording codesand density on files. If the tape cartridge does not meet these
specifications, IRS/ECC-MTB will request a replacement file. Filers are encouraged to submit a test prior to submitting the actual
August 7, 20061632006–32 I.R.B.

file. Contact IRS/ECC-MTBtoll-free 1–866–455–7438 extension 5for further information. Transmitters should also check media
for viruses before submitting to IRS/ECC-MTB.
.02In most instances, IRS/ECC-MTB can process tape cartridges that meet the following specifications:
(a)Must be IBM 3480, 3490, 3490E, 3590, or 3590E.
(b)Must meet American National Standard Institute (ANSI)standards, and have the following characteristics:
(1)Tape cartridges must be
1
/2-inch tape contained in plastic cartridges that areapproximately 4-inches by 5-inches by 1-inch
in dimension.
(2)Magnetic tape must be chromium dioxide particle based
1
/2-inch tape.
(3)Cartridges must be 18-track, 36-track, 128-track or 256-track parallel(See Note.)
(4)Cartridges will contain 37,871 CPI, 75,742 CPI, or 3590 CPI (characters per inch).
(5)Mode will be full function.
(6)The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7)Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information
Interchange) may be used.
.03The tape cartridge records definedin this Revenue Procedure may be blocked subject to the following:
(a)Ablockmust 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;
however, the last block of the file may be filled with 9s or truncated.Do not pad a block with blanks.
(c)All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields, which describe the length of the block or the logical records within the block. The number of
logical records within a block (the blocking factor) must be constant in every block with the exception of the last block,
which may be shorter (see item (b) above). Theblock length must be evenly divisible by 750.
(d)Records may not span blocks.
.04Tape cartridges may be labeled or unlabeled.
.05Donotsend encrypted data.
.06For 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.
Note: Filers should indicate on the external media label whether the cartridge is 18-track, 36-track, 128-track or 256-track.
Part D. Record Format Specifications and Record Layouts
Sec. 1. General
.01The specifications contained in this part of the Revenue Procedure define the required formation and contents of the records to
be included in the electronic or tape cartridge files.
.02A provision is made in the “B” Records for entries which are optional. If the field is not used, enter blanks to maintain a fixed
record length of 750 positions. Each field descriptionexplains the intended use of specific field positions.
Sec. 2. Transmitter “T” Record — General Field Descriptions
.01The Transmitter “T” Record identifies the entity transmitting the electronic/tape cartridge file and contains information which
is critical if it is necessary for IRS/ECC-MTB to contact the filer.
.02The Transmitter “T” Record is the first record on each file and is followed by a Payer “A” Record. A file format diagram is
located at the end of Part D. A replacement file will be requested by IRS/ECC-MTB if the “T” Record is not present.
.03For 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.
.04All records must be a fixed length of 750 positions.
.05All alpha characters entered in the “T”Record must be upper-case, except emailaddresses which may be case sensitive.Do
notuse punctuation in the name and address fields.
2006–32 I.R.B.164August 7, 2006

Record Name: Transmitter “T” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “T”.
2–5Payment Year4Required.Enter“2006”. If reporting prior year data report the year which
applies (2004, 2005, etc.) and set the Prior Year Data Indicator in field position 6.
6Prior Year Data
Indicator
1Required.Enter “P”onlyif reporting prior year data; otherwise, enter blank.
Do not enter a “P” if tax year is2006. (See Note.)
Note: Current year data MAILED December 2 or later or electronic files SENT December 21 or later must be coded with
a “P”. Current year processing ends in December and programs are converted for the next processing year.
7–15Transmitter’s TIN9Required.Enter the transmitter’s nine-digitTaxpayer Identification Number
(TIN). May be an EIN or SSN.
16–20Transmitter Control
Code
5Required.Enter the five-character alpha/numeric Transmitter Control Code
(TCC) assigned by IRS/ECC-MTB. A TCCmust be obtained to file data with
this program.
21–27Blank7Enter blanks.
28Test File
Indicator
1Required for test files only. Enter a “T” if this is a test file; otherwise, enter
a blank.
29Foreign Entity
Indicator
1Enter a “1” (one) if the transmitter is a foreign entity. If the transmitter 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 Name
(Continuation)
40Required.Enter any additional information that may be part of the name.
Left-justify information and fill unused positions with blanks.
110–149Company Name40Required.Enter the name of the company to be associated with the address
where correspondence should be sent.
150–189Company Name
(Continuation)
40Enter any additional information that may be part of the name of the company
where correspondence should be sent.
190–229Company Mailing
Address
40Required.Enter the mailing address where correspondence should be sent.
Note: Any correspondence relating to problem media or electronic files will be sent to this address. This should be
the same address as in box 5 of Form 4804.
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 29 must contain a “1” (one).
230–269Company
City
40Required.Enter the city, town, or post office where correspondence should
be sent.
270–271Company
State
2Required.Enter the valid U.S. Postal Service state abbreviation. Refer to the
chart for valid state codes in Part A, Sec. 15.
272–280Company
ZIP Code
9Required.Enter the valid nine-digit ZIP assigned by the U.S. Postal Service.
If only the first five-digits are known, left-justify information and fill unused
positions with blanks.
281–295Blank15Enter blanks.
August 7, 20061652006–32 I.R.B.

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
296–303Total Number
of Payees
8Enter the total number of Payee “B” Records reported in the file. Right-justify
information and fill unused positions with zeros.
304–343Contact Name40Required.Enter the name of the person to be contacted if IRS/ECC-MTB
encounters problems with the file or transmission.
344–358Contact Phone
Number &
Extension
15Required.Enter the telephone number of the person to contact regarding
electronic or magnetic files. Omit hyphens. If no extension is available,
left-justify information and fill unused positions with blanks. For example, the
IRS/ECC-MTB Customer Service Section phone number of866–455–7438with
an extension of52345would be866455743852345
359–408Contact Email
Address
50
Required if available.Enter the email address of the person to contact regarding
electronic or magnetic files. Left-justify information. If no email address is
available, enter blanks.
409–410Cartridge Tape
File Indicator
2
Required for tape cartridge filers only.Enter the letters “LS” (in uppercase
only). Use of this field by filers using other types of media will be acceptable
but is not required.
411–416Transmitter’s Media
Number
6For tape cartridge filers only. If your organization uses an in-house numbering
system to identify tape cartridges, enter that number; otherwise, enter blanks.
417–499Blank83Enter blanks.
500–507Record Sequence
Number
8Required.Enter the number of the record as it appears within your file. The
record sequence number for the “T” record will always be “1” (one), since it is
the first record on your file and you can have only one “T” record in a file.
Each record, thereafter, must be incremented by one in ascending numerical
sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field.
For example, the “T” record sequence number would appear as “00000001”
in the field, the first “A” record would be “00000002”, the first “B” record,
“00000003”, the second “B” record, “00000004” and so on until you reach the
final record of the file, the “F” record.
508–517Blank10Enter blanks.
518Vendor Indicator1Required.Enter the appropriate code from the table below to indicate if your
software was provided by a vendor or produced in-house.
IndicatorUsage
VYour software was purchased from a
vendor or other source.
IYour software was produced by
in-house programmers.
Note: In-house programmer is defined as an employee or a hired contract programmer. If your software is produced
in-house, the following Vendor information fields are not required.
519–558Vendor Name40Required.Enter the name of the company from whom you purchased your
software.
559–598Vendor Mailing
Address
40Required.Enter the mailing address.
ForU.S.addresses, the vendor 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.
599–638Vendor City40Required.Enter the city, town, or post office.
2006–32 I.R.B.166August 7, 2006

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
639–640Vendor State2Required.Enter the valid U.S. Postal Service state abbreviation. Refer to the
chart of valid state codes in Part A, Sec. 15.
641–649Vendor ZIP Code9Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal
Service. If only the first five-digits are known, left-justify information and fill
unused positions with blanks.
650–689Vendor Contact Name40Required.Enter the name of the person whocan be contacted concerning any
software questions.
690–704Vendor Contact
Phone Number
& Extension
15Required.Enter the telephone number of the person to contact concerning
software questions. Omit hyphens. If no extension is available, left-justify
information and fill unused positions with blanks.
705–739Blank35Enter Blanks.
740Vendor Foreign
Entity Indicator
1Enter a “1” (one) if the vendor is a foreign entity. Otherwise, enter a blank.
741–748Blank8Enter blanks.
749–750Blank2Enter blanks or carriage return/line feed characters (CR/LF).
Sec. 3. Transmitter “T” Record — Record Layout
Record
Type
Payment
Year
Prior Year
Data
Indicator
Transmitter’s
TIN
Transmitter
Control
Code
Blank
12–567–1516–2021–27
Test File
Indicator
Foreign
Entity
Indicator
Transmitter
Name
Transmitter
Name
(Continuation)
Company
Name
Company
Name
(Continuation)
282930–6970–109110–149150–189
Company
Mailing
Address
Company
City
Company
State
Company
ZIP
Code
BlankTotal
Number
of Payees
Contact
Name
190–229230–269270–271272–280281–295296–303304–343
Contact
Phone
Number &
Extension
Contact
Email
Address
Cartridge
Tape File
Indicator
Transmitter’s
Media Number
BlankRecord
Sequence
Number
344–358359–408409–410411–416417–499500–507
August 7, 20061672006–32 I.R.B.

BlankVendor
Indicator
Vendor
Name
Vendor
Mailing
Address
Vendor
City
Vendor
State
508–517518519–558559–598599–638639–640
Vendor ZIP
Code
Vendor
Contact
Name
Vendor
Contact
Phone
Number &
Extension
BlankVendor
Foreign
Entity
Indicator
BlankBlank or
CR/LF
641–649650–689690–704705–739740741–748749–750
Sec. 4. Payer “A” Record — General Field Descriptions
.01The Payer “A” Record identifies the person making payments, a recipient of mortgage or student loan interest payments, an
educational institution, a broker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee or issuer of any
IRA or MSA plan, and a lender who acquires an interest in secured property or who has a reason to know that the property has been
abandoned. The payer will be held responsible for the completeness, accuracy, and timelysubmission of electronic/magnetic files.
.02The second record on the file must be an “A” Record. A transmitter may include Payee “B” records for more than one payer
in a file. However,each groupof “B” records must be preceded by an “A” Record and followed by an End of Payer “C” Record. A
single file may contain different types of returns but the types of returnsmust notbe intermingled. A separate “A” Record is required
for each payer and each type of return being reported.
.03The number of “A” Records depends on the number of payers and the different types of returns being reported. Do not submit
separate “A” Records for each payment amount being reported. For example, if a payer is filingForm 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.
.04The maximum number of “A” Records allowed on a file is 90,000.
.05All records must be a fixed length of 750 positions.
.06All alpha characters entered inthe “A” Record must be upper case.
.07For 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
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter an “A”.
2–5Payment Year4Required.Enter “2006”. If reporting prior year data, report the year which applies
(2004, 2005, etc.).
6–11Blank6Enter blanks.
12–20Payer’s
Taxpayer
Identification
Number (TIN)
9Required.Must be the valid nine-digit Taxpayer Identification Number assigned to
the payer.Do not enter blanks, hyphens, or alpha characters.All zeros, ones,
twos, etc., will have the effect of an incorrect TIN.
Note: For foreign entities that are not required to have a TIN, this field must be blank. However, the Foreign Entity
Indicator, position 52 of the “A” Record, must be set to “1” (one).
2006–32 I.R.B.168August 7, 2006

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
21–24Payer Name
Control
4The Payer Name Control can be obtained only from the mail label on the Package
1099 that is mailed to most payers each December. Package 1099 contains Form
7018–C, Order Blank for Forms, and the mail label on the package contains a
four (4) character name control. If a Package 1099 has not been received, you can
determine your name control using the following simple rules or you can leave the
field blank. For a business, use the first four significant characters of the business
name. Disregard the word “the” when it is the first word of the name, unless there
are only two words in the name. A dash (-) and an ampersand (&) are the only
acceptable special characters. Names of less than four (4) characters should be
left-justified, filling the unused positions with blanks.
25Last Filing
Indicator
1Enter a “1” (one) if this is thelast yearthis payer name and TIN will file information
returns electronically, magnetically or on paper; otherwise, enter blank.
26Combined
Federal/State
Filer
1Required for the Combined Federal/State Filing Program.Enter“1”(one)if
approved or submitting a test to participate in the Combined Federal/State Filing
Program; otherwise, enter a blank.
Note: If the Payer “A” Record is coded for combined Federal/State filing there must be coding in the Payee “B” Records
and the State Totals “K” Records.
Note: If you entered “1” (one) in this field position, be sure to code the Payee “B” Records with the appropriate state
code. Refer to Part A, Sec. 13,for further information.
27Type of Return1Required.Enter the appropriate code from the table below:
TypeofReturnCode
10983
1098–CX
1098–E2
1098–T8
1099–A4
1099–BB
1099–C5
1099–
CAP
P
1099–DIV1
1099–GF
1099–HJ
1099–INT6
1099–LTCT
10
99–MISC
A
1099–OIDD
1099–PATR7
1099–QQ
1099–R9
1099–SS
1099–SAM
5498L
5498–ESAV
5498–SAK
W–2GW
August 7, 20061692006–32 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
28–41Amount Codes
(See Note.)
14Required.Enter the appropriate amount codes for the type of return being reported.
In most cases, the box numbers on paper information returns correspond with the
amount codes used to file electronically or magnetically. However, if discrepancies
occur, this Revenue Procedure governs for filing electronically/magnetically. Enter
the amount codes in ascending sequence; numeric characters followed by alphas.
Left-justify, and fill unused positions with blanks.
Note: A type of return and an amount code must be presentin 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 appropriate
paper instructions for each form.
Amount CodesForm 1098—Mortgage
Interest Statement
For Reporting Mortgage Interest Received From Payers/Borrowers (Payer of
Record) on Form 1098:
AmountCodeAmountType
1Mortgage interest received from
payer(s)/borrower(s)
2Points paid on purchase of principal
residence
3Refund (or credit) of overpaid interest
4Blank(Fi
ler’s use)
Amount CodesForm 1098–C—
Contributions of Motor Vehicles, Boats,
and Airplanes
For Reporting Gross Proceeds From Sales on Form 1098–C:
A
mountC
ode
AmountT
ype
4Gross proceeds from sales
6Value of goods or services in exchange for
vehicle
Amount
CodeForm 1098–E— Student
Loan I
nterest
For Rep
orting Interest on Student Loans on Form 1098–E:
A
mountCodeAmountType
1Student loan interest received by lender
Amoun
t CodesForm 1098–T— Tuition
Stat
ement
For Re
porting Tuition Payments on Form 1098–T:
A
mountCodeAmountType
1Payments received forqualified tuition and
related expenses
2Amounts billed for qualified tuition and
related expenses
3Adjustments made for prior year
4Scholarships or grants
5Adjustments to scholarships or grants for
a prior year
7Reimbursements or refunds of qualified
tuition and related expenses from an
insurance contract
Note 1: For Amount Codes 1 and 2 enter either payments received OR amounts billed. DO NOT report both.
N
ote 2: Amount codes 3 and 5 are assumed to be negative. It is not necessary to code with an over punch or dash
to indicate a negative reporting.
2006–32 I.R.B.170August 7, 2006

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Amount CodesForm 1099–A—
Acquisition or Abandonment of Secured
Property
For Reporting the Acquisition or Abandonment of Secured Property on Form
1099–A:
AmountCodeAmountType
2Balance of principal outstanding
4Fair market value of property
For Reporti
ng Payments on Form 1099–B:
Amount Code
sForm 1099–B— Proceeds
From Broker
and Barter Exchange
Transactio
ns
A
mountCodeAmountType
2Stocks, 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 in2006(See Note
2.)
7Unrealized profit (or loss) on open contracts
—12/31/2005(See Note 2.)
8Unrealized profit (or loss) on open contracts
—12/31/2006(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 transaction
on a forward contract. Refer to the “B” Record – General Field Descriptions and Record Layouts, 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
contr
acts.
For Reporting Payments on Form 1099–C:Amount Codes Form1099–C —
Cancellation of Debt
A
mountCodeAmountType
2Amou
nt of debt canceled
3Interest, if included in Amount Code 2
7Fair market value of property(See Note.)
Not
e: Use Amount Code 7 only if a combined Form 1099–A and 1099–C is being filed.
For Reporting Payments on Form 1099–CAP:Amount CodeForm 1099–CAP—
Changes in Corporate Control and Capital
StructureA
mountCodeAmountType
2Aggregate amount received
Fo
r Reporting Payments on Form 1099–DIV:
Am
ount CodesForm 1099–DIV—
Di
vidends and Distributions
A
mountCodeAmountType
1Total ordinary dividends
2Qualified dividends
3Total capital gain distribution
6Unrecaptured Section 1250 gain
7Section 1202 gain
8Collectibles (28%) rate gain
9Nondividend distributions
August 7, 20061712006–32 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
AmountCodeAmountType
AFederal income tax withheld
BInvestment ex
penses
CForeign tax paid
DCash liquidation distributions
ENon-cash liquidation distributions
For Reporting Payments on Form 1099–G:Amount CodesForm 1099–G—Certain
Government Payments
A
mountCodeAmountType
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)
5Alternative Trade Adjustment Assistance
(ATAA) Payments
6Taxable g
rants
7Agriculture payments
For Repo
rting Payments on Form 1099–H:
Amount C
odesForm 1099–H— Health
Coverag
e Tax Credit (HCTC) Advance
Payment
s
A
mountC
ode
AmountT
ype
1Gross amount of health insurance advance
payments
2Amount of advance payment for January
3Amount of advance payment for February
4Amount of advance payment for March
5Amount of advance payment for April
6Amount of advance payment for May
7Amount of advance payment for June
8Amount of advance payment for July
9Amount of advance payment for August
AAmount of advance payment for September
BAmount of advance payment for October
CAmount of advance payment for November
DAmount of advance payment for December
For Reporting Payments on Form 1099–INT:Amount CodesForm 1099–INT—
Interest Income
A
mountCodeAmountType
1Interest income not included in Amount
Code 3
2Early withdrawal penalty
3Interest on U.S. Savings Bonds and
Treasury obligations
4F
ederal income tax withheld (backup
w
ithholding)
5Investment expenses
6Foreign tax paid
8Tax-exempt interest
2006–32 I.R.B.172August 7, 2006

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
For Reporting Payments on Form 1099–LTC:Amount CodesForm 1099–LTC—
Long-Term Care and Accelerated Death
BenefitsA
mountCodeAmountType
1Gross long-term care benefits paid
2Accelerated
death benefits paid
For Reporting Payments on Form 1099–MISC:Amount CodesForm 1099–MISC—
Miscellaneous Income
(See Note 1.)A
mountCodeAmountType
1Rents
2Royalties(See Note 2.)
3Other income
4Federal income tax withheld (backup
withholding or withholding on Indian
gaming profits)
5Fishing boat proceeds
6Medical and health care payments
7Nonemplo
yee compensation
8Substitute payments in lieu of dividends or
interest
ACrop insurance proceeds
BExcess golden parachute payments
CGrossp
roceeds paid to an attorney in
connec
tion with legal services
DSection 409A Deferrals
ESection 409A Income
Note 1: If reporting a direct sales indicatoronly,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.
Note 2: Do not report timber royalties under a “pay-as-cut” contract; these must be reported on Form 1099–S.
Amount CodesForm 1099–OID—
Original Issue Discount
For Reporting Payments on Form 1099–OID:
A
mountCodeAmountType
1Original issue discount for2006
2Other periodic interest
3Early withdrawal penalty
4Fe
deral income tax withheld (backup
wi
thholding)
6Original issue discount on U.S. Treasury
Obligations
7I
nvestment expenses
For Reporting Payments on Form 1099–PATR:Amount CodesForm 1099–PATR—
Taxable Distributions Received From
CooperativesA
mountCodeAmountType
1Patronage dividends
2Nonpatronage distributions
3Per-unit retain allocations
4Federal income tax withheld (backup
withholding)
August 7, 20061732006–32 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
AmountCodeAmountType
5Redemption of nonqualified notices and
retain allocations
6Deduction for qualified production
activities income
Pass-Throug
hCredits
7Investment credit
8Work opportunity credit
9Patron’sal
ternative minimum tax (AMT)
adjustment
AFor filer’s use for pass-through credits and
deductions
For Reporting Payments on a Form 1099–Q:Amount CodesForm 1099–Q—
Payments From Qualified Education
Programs (Under Sections 529 and 530)A
mountCodeAmountType
1Gross distribution
2Earnings
3Basis
For Reporting Payments on Form 1099–R:
A
mount
Code
Amount
Type
1Gross distribution
2Taxable amount(See Note 1.)
3Capit
al gain (included in Amount Code 2)
4Federal income tax withheld
5Employee contributions or insurance
premiums
6Net unrealized appreciation in employer’s
securities
8Other
9Total employee contributions
Amount CodesForm 1099–R—
Distributions From Pensions, Annuities,
Retirement or Profit–Sharing Plans, IRAs,
Insurance Contracts, etc.
ATraditional IRA/SEP/SIMPLE distribution
or Roth conversion(See Note 2.)
Note 1: If the taxable amount cannot be determined, enter a “1” (one) in position 547 of the “B” Record. Payment
Amount 2 must contain zeros.
No
te 2: For Form 1099–R, report the Roth conversion or total amount distributed from an IRA, SEP, or SIMPLE in
P
ayment Amount Field A (IRA/SEP/SIMPLE distribution or Roth conversion) of the Payee “B” Record, and generally,
t
he same amount in Payment Amount Field 1 (Gross Distribution). The IRA/SEP/SIMPLE indicator should be set to
“
1” (one) in Field Position 548 of the Payee “B” Record.
For Reporting Payments on Form 1099–S:Amount CodesForm 1099–S— Proceeds
From Real Estate Transactions
A
mountCodeAmountType
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 IRC section 6050N. If
timber royalties are being reported, enter “TIMBER” in the description field of the “B” Record.
2006–32 I.R.B.174August 7, 2006

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
For Reporting Distributions on Form 1099–SA:Amount CodesForm 1099–SA —
Distributions From an HSA, Archer MSA
or Medicare Advantage MSAA
mountCodeAmountType
1Gross distribution
2Earnings on e
xcess contributions
4Fair market value of the account on date
of death
For Reporting Information on Form 5498:Amount CodesForm 5498—IRA
Contribution Information
A
mountCodeAmountType
1IRA contributions (other than amounts in
Amount Codes 2, 3, 4, 8, 9, and A)(See
Notes 1 and 2.)
2Rolloverc
ontributions
3Roth conversion amount
4Recharacterized contributions
5Fair market value of account
6Life insurance cost included in Amount
Code 1
8SEP contributions
9SIMPLE contributions
ARoth IRA contributions
Note 1: If reporting IRA contributions fora participant in a military operation, see2006 Instructions for Forms 1099–R
and 5498.
Note 2: Also include employee contributions to an IRA under a SEP plan but not salary reduction contributions. D
O
NOTincludeEMPLOYERcontributions; these are included inAmount Code 8.
For Re
porting Information on Form 5498–ESA:
Amoun
tCodesForm 5498–ESA—
Cover
dell ESA Contribution Information
A
mountCodeAmountType
1Coverdell ESA contributions
2Rollover contributions
For Reporting Information on Form 5498–SA:Amount CodesForm 5498–SA—HSA,
Archer MSA, or Medicare Advantage
MSA InformationA
mountCodeAmountType
1Employee or self-employed person’s
Archer MSA contributions made in 2006
and 2007 for 2006
2Total contributions made in 2006 (See
current 2006 Instructions.)
3Total HSA/MSA contributions made in
2007 for 2006
4Rollover contributions(See Note.)
5Fair market value of HSA, Archer MSA
or Medicare Advantage MSA account on
Dec. 31, 2006
Note:ThisistheamountofanyrollovermadetothisMSAin2006after a distribution from another MSA. For detailed
information on reporting, see the2006 Instructions for Forms 1099–SA and 5498–SA.
August 7, 20061752006–32 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Amount CodesForm W–2G—Certain
Gambling Winnings
For Reporting Payments on Form W–2G:
AmountCodeAmountType
1Grosswinnings
2Federal income tax withheld
7Winnings from identical wagers
42–47Blank6Enter blanks.
48Original File
Indicator
1Required for original files only.Enter “1” (one) if the information is original data.
Otherwise, enter a blank.
49Replacement
File Indicator
1Required for replacement files only.Enter“1”(one)ifthisfileistoreplaceafile
that IRS/ECC-MTB has informed you in writing cannot be processed or the FIRE
System indicated a FILE STATUS of bad. Otherwise, enter a blank.
Note: If selecting the Replacement File Indicator in Position 49, Field Positions 48 and 50 must be blank. Onlyone
indicator may be selected in positions 48, 49, and 50 for each Payer “A” Record.
50Correction File
Indicator
1Required for correction files only.Enter “1” (one) if this file is to correct
information which was previously submitted to IRS/ECC-MTB, was processed, but
contained erroneous information. Any information return which was inadvertently
omitted from a file must be submitted as original. Otherwise, enter a blank.
51Blank1Enter blank.
52Foreign Entity
Indicator
1Enter a “1” (one) if the payer is a foreign entity and income is paid by the foreign
entity to a U.S. resident. Otherwise, enter a blank.
53–92First Payer
Name Line
40Required.Enter the name of the payer whose TIN appears in positions 12–20 of the
“A” Record. Any extraneous information must be deleted. Left-justify information,
and fill unused positions with blanks. (Filers should not enter a transfer agent’s
name in this field. Any transfer agent’s name should appear in the Second Payer
Name Line Field.)
93–132Second Payer
Name Line
40If the Transfer (or Paying) Agent Indicator (position 133) contains a “1” (one),
this field must contain the name of the transfer (or paying) agent. If the indicator
contains a “0” (zero), this field may contain either a continuation of the First Payer
Name Line or blanks. Left-justify information and fill unused positions with blanks.
133Transfer
Agent Indicator
1Required.Identifies the entity in the Second Payer Name Line Field.
CodeMeaning
1The entity in the Second Payer Name Line
Field is the transfer (or paying) agent.
0 (zero)The entity shown isnotthe 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).
134–173Payer
Shipping
Address
40Required.If the Transfer Agent Indicator in position 133 is a “1” (one), enter the
shipping address of the transfer (or paying) agent. Otherwise, enter theactual
shipping address of the payer. The street address should include number, street,
apartment or suite number, or PO Box if mail is not delivered to a street address.
Left-justify information, and fill unused positions with blanks.
2006–32 I.R.B.176August 7, 2006

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
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 acontinuous 51-position field. Enter information
inthefollowingorder:city,provinceorstate,postalcode,and the name of the country. When reporting a foreign address, the
Foreign Entity Indicator in position 52 must contain a “1” (one).
174–213Payer City40Required.If the Transfer Agent Indicator in position 133 is a “1” (one), enter the
city, town, or post office of the transfer agent. Otherwise, enter the city, town, or post
office of the payer. Left-justify information, and fill unused positions with blanks.
Do not enter state and ZIP Code information in this field.
214–215Payer State2Required. Enter the valid U.S. Postal Service state abbreviations. Refer to the chart
of valid state abbreviations in Part A, Sec. 15.
216–224Payer ZIP Code 9Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal Service.
If only the first five-digits are known, left-justify information and fill the unused
positions with blanks. For foreign countries, alpha characters are acceptable as long
as the filer has entered a “1” (one) in the Foreign Entity Indicator, located in Field
Position 52 of the “A” Record.
225–239Payer’s Phone
Number &
Extension
15Enter the payer’s phone number and extension. Omit hyphens. Left-justify
information and fill unused positions with blanks.
240–499Blank260Enter blanks.
500–507Record
Sequence
Number
8Required.Enter the number of the record as it appears within your file. The record
sequence number for the “T” record will always be “1” (one), since it is the first
record on your file and you can have onlyone “T” record in a file. Each record,
thereafter, must be incremented by one inascending numerical sequence, i.e., 2, 3,
4, etc. Right-justify numbers with leading zeros in the field. For example, the “T”
record sequence number would appear as “00000001” in the field, the first “A” record
would be “00000002”, the first “B” record, “00000003”, the second “B” record,
“00000004” and so on until you reach the final record of the file, the “F” record.
508–748Blank241Enter blanks.
749–750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Sec. 5. Payer “A” Record — Record Layout
Record
Type
Payment
Year
BlankPayer
TIN
Payer Name
Control
Last Filing
Indicator
12–56–1112–2021–2425
Combined
Federal/State
Filer
Type
of
Return
Amount
Codes
BlankOriginal
File
Indicator
Replacement
File
Indicator
Correction
File
Indicator
262728–4142–47484950
August 7, 20061772006–32 I.R.B.

BlankForeign
Entity
Indicator
First
Payer Name
Line
Second Payer
Name
Line
Transfer
Agent
Indicator
Payer
Shipping
Address
515253–9293–132133134–173
Payer
City
Payer
State
Payer
ZIP
Code
Payer’s
Phone
Number and
Extension
BlankRecord
Sequence
Number
BlankBlank or
CR/LF
174–213214–215216–224225–239240–499500–507508–748749–750
Sec. 6. Payee “B” Record — General Field Descriptions and Record Layouts
.01The “B” Record contains the payment information from the information returns. 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 toaccommodate special fields for
individual forms. In the “B” Record, the filermustallow for allfourteenPaymentAmountFields.For those fields not used, enter
“0s” (zeros).
.02The following specifications include a field in the payee records called “NameControl” 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)ThesurnameofthepayeewhoseTINisshown 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, 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.
.03For 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.
.04All records must be a fixed length of 750 positions.
.05A field is also provided in these specifications for Special DataEntries. This field may be used torecord 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 ofthe data entered in this field. It is the filer’s option to use the
Special Data Entry Field.
.06Following the Special Data Entries Field in the “B” Record, payment fields have been allocatedfor State Income Tax Withheld
and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by IRS/ECC-
MTB.
.07Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A,
Sec. 13, to participate in this program.
.08All alpha characters in the “B” Record must be uppercase.
.09 Do notuse decimal points (.) to indicate dollars and cents. Payment Amount Fields must be all numeric characters.
Record Name: Payee “B” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “B”.
2–5Payment Year4Required. Enter “2006”. If reporting prior year data, report the year
which applies (2004, 2005, etc.).
2006–32 I.R.B.178August 7, 2006

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
6Corrected Return
Indicator
(See Note.)
1Required for corrections only.Indicates a corrected return.
CodeDefinition
GIf this is a one-transactioncorrectionorthefirstof
a two-transaction correction
CIf this is the second transaction of a two-transaction
correction
BlankIf this is not a return being submitted to correct
information already processed by IRS
Note: C, G, and non-coded records must be reported usingseparate Payer “A” Records. Refer to Part A, Sec. 11,
for specific instructions on how to file corrected returns.
7–10Name Control4If 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 correctname 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 busi-
ness 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. Surname
prefixes are considered, e.g., for Van Elm, the name control would be
VANE. For a sole proprietorship, use the name of the owner to create
the name control and report the owner’s name in positions 248–287,
First Payee Name Line.
Note: Imbedded blanks, extraneous words, titles, and specialcharacters (i.e., Mr., Mrs., Dr., period [.], apostrophe [’])
should be removed from the Payee Name Lines. This information may be dropped during subsequent processing at
IRS/ECC-MTB. A dash (-) and an ampersand (&) are the only acceptable special characters.
The following examples may be helpful to filers in developing the Name Control:
NameNameControl
Individuals:
JaneB
rownBROW
John A.L
eeLEE*
James P.E
n,Sr.EN*
John
O
’Neil
ONEI
MaryV
anBurenVANB
JuanD
eJesusDEJE
Gloria A.E
l-RoyEL-R
Mr. JohnS
mithSMIT
JoeM
cCarthyMCCA
Pe
droT
orres-Lopes**
TO
RR
MariaL
opez Moreno**LOPE
Binh ToL
aLA*
Nhat ThiP
hamPHAM
August 7, 20061792006–32 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Corporations:
TheFirstNationalBankFIRS
T
heHideawayTHEH
A
&BCafeA&BC
1
1THStreet Inc.11TH
Sole Proprietor:
MarkH
emlock
DBA The Sunshine Club
HEML
MarkD’AllesandroDALL
Partnership:
RobertA
sp
en
and Bess Wi
llow
ASPE
HaroldF
ir,BruceElm,
and Joyce Spruce et al Ptr
FIR*
Estate:
FrankW
hiteEstateWHIT
Estate of SheilaB
lueBLUE
Trusts and Fiduciaries:
D
aisy Corporation Employee
Benefit Trust
DAIS
Trust FBO The
C
herryblossom
Society
CHER
Exempt Organizations:
L
aborer’s Union, AFL-CIOLABO
S
t.Be
rnard’s Methodist
Churc
hBldg.Fund
STBE
*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.
11Type of TIN1This field is used to identify the Taxpayer Identification Number
(TIN) in positions 12–20 as eitheran 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:
CodeTypeofTINTypeofAccount
1EINA business, organization, some
sole proprietors, or other entity
2SS
N
An
individual, including some sole
pr
oprietors
2ITINAn individual required to have a
taxpayer identification number,
but who is not eligible to obtain an
SSN
2006–32 I.R.B.180August 7, 2006

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
2ATINAn adopted individual prior to the
assignment of a social security
number
BlankN/AIf the type of TIN is not deter-
minable, enter a blank
12–20Payee’s
Taxpayer
Identification
Number (TIN)
9Required.Enter the nine-digit Taxpayer Identification Number of
the payee (SSN, ITIN, ATIN, or EIN). If an identification number
has been applied for but not received, enter blanks.Do not enter
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.
Note: If you are required to report payments made through Foreign Intermediaries and Foreign Flow-Through Entities on
Form 1099, see the2006 General Instructions for Forms 1099, 1098, 5498 and W–2Gfor reporting requirements.
21–40Payer’s
Account
Number For
Payee
20Required if submitting more than one information return of the
same type for the same payee.Enter any number assigned by the
payer to the payee that can be used by the IRS to distinguish between
information returns. This number must be unique for each informa-
tion return of the same type for the same payee. If a payee has more
than one reporting of the same document type, it is vital that each re-
porting have a unique account number. For example, if a payer has
3 separate pension distributionsfor the same payee and 3 separate
Forms 1099–R are filed, 3 separate unique account numbers are re-
quired. A payee’s account number may be given a unique sequencing
number, such as 01, 02 or A, B, etc., to differentiate each reported in-
formation return. Do not use the payee’s TIN since this will not make
each record unique. This information is critical when corrections are
filed. This number will be provided with the backup withholding no-
tification and may be helpful in identifying the branch or subsidiary
reporting the transaction. The account number can be any combi-
nation of alpha, numeric or special characters. If fewer than twenty
characters are used, filers may either left or right-justify, filling the
remaining positions with blanks.
41–44Payer’s Office
Code
4Enter office code of payer; otherwise, enter blanks. For payers with
multiple locations, this field may be used to identify the location of
the office submitting the information return. This code will also ap-
pear on backup withholding notices.
45–54Blank10Enter blanks.
Payment
Amount Fields
(Must be
numeric)
Required. Filers should allow for all payment amounts. For
those not used, enter zeros.Each payment field must contain 12
numeric characters. Each payment amount must contain U.S. dollars
and cents. The right-most two positions represent cents in the pay-
ment amount fields.Do not enter dollar signs, commas, decimal
points, or negative payments, except those items that reflect a loss
on Form 1099–B or 1099–Q.Positive and negative amounts are in-
dicated by placing a “+” (plus) or “-” (minus) sign in the left-most
position of the payment amount field. A negative over punch in the
unit’s position may be used, instead of a minus sign, to indicate a
negative amount. If a plus sign, minus sign, or negative over punch
is not used, the number is assumed to be positive. Negative over
punch cannot be used in PC created files. Payment amounts must be
right-justified and unused positions must be zero filled.
August 7, 20061812006–32 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
55–66Payment
Amount 1*
12The amount reported in this field represents payments for Amount
Code 1 in the “A” Record.
67–78Payment
Amount 2*
12The amount reported in this field represents payments for Amount
Code 2 in the “A” Record.
79–90Payment
Amount 3*
12The amount reported in this field represents payments for Amount
Code 3 in the “A” Record.
91–102Payment
Amount 4*
12The amount reported in this field represents payments for Amount
Code 4 in the “A” Record.
103–114 Payment
Amount 5*
12The amount reported in this field represents payments for Amount
Code 5 in the “A” Record.
115–126 Payment
Amount 6*
12The amount reported in this field represents payments for Amount
Code 6 in the “A” Record.
127–138 Payment
Amount 7*
12The amount reported in this field represents payments for Amount
Code 7 in the “A” Record.
139–150 Payment
Amount 8*
12The amount reported in this field represents payments for Amount
Code 8 in the “A” Record.
151–162 Payment
Amount 9*
12The amount reported in this field represents payments for Amount
Code 9 in the “A” Record.
163–174 Payment
Amount A*
12The amount reported in this field represents payments for Amount
Code A in the “A” Record.
175–186 Payment
Amount B*
12The amount reported in this field represents payments for Amount
Code B in the “A” Record.
187–198 Payment
Amount C*
12The amount reported in this field represents payments for Amount
Code C in the “A” Record.
199–210 Payment
Amount D*
12The amount reported in this field represents payments for Amount
Code D in the “A” Record.
211–222 Payment
Amount E*
12The amount reported in this field represents payments for Amount
Code E in the “A” Record.
*If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this
Revenue Procedure must be followed for electronic/magnetic filing.
223–246 Reserved24Enter blanks.
247Foreign
Country
Indicator
1If the address of the payee is in a foreign country, enter a “1”
(one) in this field;otherwise, enter blank. When filers use this in-
dicator, they may use a free format for the payee city, state, and ZIP
Code. Enter information in the following order: city, province or
state, postal code, and the name of the country. Address information
must not appear in the First or Second Payee Name Line.
2006–32 I.R.B.182August 7, 2006

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
248–287 First Payee
Name Line
40Required.Enter the name of the payee (preferably surname first)
whose Taxpayer Identification Number (TIN) was provided in posi-
tions 12–20 of the Payee “B” Record. Left-justify and fill unused
positions with blanks. If more space is required for the name, use
theSecondPayeeNameLineField. If reporting information for a
sole proprietor, the individual’s name must always be present on the
First Payee Name Line. The use of the business name is optional in
the Second Payee Name Line Field. End the First Payee Name Line
with a full word. Use appropriatespacing. Extraneous words, titles,
and special characters (i.e., Mr., Mrs., Dr., period, apostrophe) should
be removed from the Payee Name Lines. This information may be
dropped during subsequent processing at IRS/ECC-MTB. A dash (-)
and an ampersand (&) are the only acceptable special characters for
First and Second Payee Name Lines.
Note: If you are required to report payments made through Foreign Intermediaries and Foreign Flow-Through Entities on
Form 1099, see the2006 General Instruction for Forms 1099, 1098, 5498, and W–2Gfor reporting requirements.
288–327 Second Payee
Name Line
40If there are multiple payees (e.g.,partners, joint owners, or spouses),
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
provided in the First Payee Name Line, continue the name in this
field. Left-justify information and fill unused positions with blanks.
Do not enter address information.It is important that filers provide
as much payee information to IRS/ECC-MTB as possible to identify
the payee associated with the TIN. Left-justify and fill unused posi-
tions with blanks.See Note above in First Payee Name Line.
328–367 Blank40Enter blanks.
368–407 Payee Mailing
Address
40Required.Enter mailing address of payee. Street address should
include number, street, apartment or suite number, or PO Box if mail
is not delivered to street address. This fieldmust notcontain any
data other than the payee’s mailing address.
408–447 Blank40Enter blanks.
448–487 Payee City40Required.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 State2Required. 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. 15.
490–498 Payee ZIP
Code
9Required.Enter the valid ZIP Code (nine or five-digit) assigned
by the U.S. Postal Service. If only the first five-digits are known,
left-justify information and fill the unused positions with blanks. For
foreign countries, alpha characters are acceptable as long as the filer
has entered a “1” (one) in the Foreign Country Indicator, located in
position 247 of the “B” Record.
499Blank1Enter blank.
August 7, 20061832006–32 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
500–507 Record
Sequence
Number
8Required.Enter the number of the record as it appears within your
file. The record sequence number for the “T” record will always be
“1” (one), since it is the first record on your file and you can have
only one “T” record in a file. Each record, thereafter, must be in-
cremented by one in ascending numerical sequence, i.e., 2, 3, 4, etc.
Right-justify numbers with leading zeros in the field. For example,
the “T” record sequence numberwould appear as “00000001” in the
field, the first “A” record would be “00000002”, the first “B” record,
“00000003”, the second “B” record, “00000004” and so on until you
reach the final record of the file, the “F” record.
508–543 Blank36Enter blanks.
Standard Payee “B” Record Format For All Types of Returns, Positions 1–543
Record
Type
Payment
Year
Corrected
Return
Indicator
Name
Control
Type of
TIN
Payee’s
TIN
Payer’s
Account
Number For
Payee
12–567–101112–2021–40
Payer’s
Office Code
BlankPayment
Amount
1
Payment
Amount
2
Payment
Amount
3
Payment
Amount
4
Payment
Amount
5
41–4445–5455–6667–7879–9091–102103–114
Payment Amount
6
Payment Amount
7
Payment Amount
8
Payment Amount
9
Payment Amount
A
Payment Amount
B
115–126127–138139–150151–162163–174175–186
Payment
Amount C
Payment
Amount D
Payment
Amount E
ReservedForeign
Country
Indicator
First
Payee
Name
Line
Second
Payee
Name
Line
Blank
187–198199–210211–222223–246247248–287288–327328–367
Payee
Mailing
Address
BlankPayee
City
Payee
State
Payee
ZIP Code
BlankRecord
Sequence
Number
Blank
368–407408–447448–487488–489490–498499500–507508–543
2006–32 I.R.B.184August 7, 2006

The following sections define the field positions for the different types of returns in the Payee “B” Record (positions
544–750):
(1) Form 1098
(2)Form 1098–C
(3) Form 1098–E
(4) Form 1098–T
(5) Form 1099–A
(6) Form 1099–B
(7) Form 1099–C
(8) Form 1099–CAP
(9) Form 1099–DIV*
(10) Form 1099–G*
(11) Form 1099–H
(12) Form 1099–INT*
(13) Form 1099–LTC
(14) Form 1099–MISC*
(15) Form 1099–OID*
(16) Form 1099–PATR*
(17) Form 1099–Q
(18) Form 1099–R*
(19) Form 1099–S
(20) Form 1099–SA
(21) Form 5498*
(22) Form 5498–ESA
(23) Form 5498–SA
(24) Form W–2G
* These forms may be filed through the Combined Federal/State Filing Program. IRS/ECC-MTB will forward these records to
participating states for filers who have been approved for theprogram. See Part A, Sec. 13, for information about the program,
including specific codesfor the record layouts.
(1) Payee “B” Record — Record LayoutPositions 544–750 for Form 1098
Field
Position
Field TitleLength Description and Remarks
544–662 Blank119Enter blanks.
663–722 Special Data Entries60This portion of the “B” Record may be used to record information for
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record LayoutPositions 544–750 for Form 1098
BlankSpecial
Data
Entries
BlankBlank
or CR/LF
544–662663–722723–748749–750
August 7, 20061852006–32 I.R.B.

(2) Payee “B” Record — Record Layout Positions 544–750 for Form 1098–C
Field
Position
Field TitleLength Description and Remarks
544–545 Blank2Enter blanks.
546Transaction Indicator1Enter “1” (one) ifthe amount reported in Payment Amount Field
4 is an arm’s length transaction to an unrelated party. Otherwise,
enter a blank.
547Transfer After Improvements
Indicator
1Enter “1” (one) if the vehicle will not be transferred for money, other
property, or services before completion of material improvements or
significant intervening use. Otherwise, enter a blank.
548Transfer Below Fair Market Value
Indicator
1Enter “1” (one) if the vehicle is transferred to a needy individual for
significantly below fair market value. Otherwise, enter a blank.
549–587 Make, Model, Year39Enter the make, model and year of vehicle. Left-justify and fill un-
used positions with blanks.
588–612 Vehicle or Other Identification
Number
25Enter the vehicle or other identification number of the donated vehi-
cle. Left-justify and fill unused positions with blanks.
613–651 Vehicle Description39Enter a descriptionof material improvements or significant interven-
ing use and duration of use. Left-justify and fill unused positions with
blanks.
652–659 Date of Contribution8Enter the date the contribution was made to an organization, in the
format YYYYMMDD (e.g., January 5, 2006, would be 20060105).
Do not enter hyphens or slashes.
660Donee Indicator1Enter the appropriate indicator from the following table to report if
the donee of the vehicle providesgoods or services in exchange for
the vehicle.
Indicat
or
Usage
1Donee provided goods or services
2Donee did not provide goods or
services
661Intang
ible Religious Benefits
Indic
ator
1Entera
“1”, (one) if only intangible religious benefits were provided
in exc
hange for the vehicle; otherwise, leave blank.
662
Deduction $500 or Less Indicator
1Enter a “1”, (one) if under law donor cannot claim a deduction of
more than $500 for the vehicle; otherwise, leave blank.
663–722 Special Data Entries60This portion of the “B” Record may be used to record information for
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–
730
Date
of Sale
8Ente
r the date of sale, in the format YYYYMMDD (e.g., January 5,
2006
, would be 20060105).Do not enter hyphens or slashes.
731–748 Goods and Services18Enter a description of any goods and services received for the vehicle;
otherwise, leave blank.. Left-justify and fill unused positions with
blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
2006–32 I.R.B.186August 7, 2006

Payee “B” Record — Record Layout Positions 544–750 for Form 1098–C
BlankTransaction
Indicator
Transfer After
Improvements
Indicator
Transfer Below
Fair Market
Value Indicator
Make, Model,
Year
Vehicle or
Other
Identification
Number
Vehicle
Description
544–545546547548549–587588–612613–651
Date of
Contribution
Donee
Indicator
Intangible
Religious
Benefits
Indicator
Deduction
$500 or Less
Indicator
Special Data
Entries
Date of SaleGoods and
Services
Blank
652–659660661662663–722723–730731–748749–750
(3) Payee “B” Record — Record Layout Positions 544–750 for Form 1098–E
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Origination
Fees/Capitalized
Interest Indicator
1Enter “1” (one) if the amount reported in Payment Amount Field 1
includes loan origination fees and/or capitalized interest. Otherwise,
enter a blank.
548–662 Blank115Enter blanks.
663–722 Special
Data Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1098–E
BlankOrigination
Fees/Capitalized
Interest Indicator
BlankSpecial Data
Entries
BlankBlank
or CR/LF
544–546547548–662663–722723–748749–750
(4) Payee “B” Record — Record Layout Positions 544–750 for Form 1098–T
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Half-time Student
Indicator
1Enter “1” (one) if the student was at least a half-time student during
any academic period that began in 2006. Otherwise, enter a blank.
548Graduate Student
Indicator
1Enter “1” (one) if the student is enrolled exclusively in a graduate
level program. Otherwise, enter a blank.
August 7, 20061872006–32 I.R.B.

(4) Payee “B” Record — Record Layout Positions 544–750 for Form 1098–T (Continued)
Field
Position
Field TitleLength Description and Remarks
549Academic Period
Indicator
1Enter “1” (one) if the amount in Payment Amount Field 1 or
Payment Amount Field 2 includes amounts for an academic period
beginning January through March2006. Otherwise, enter a blank.
550Method of Reporting 2005
Amounts Indicator
1
Required.Enter the appropriate indicator from the following
table, to identify the method your institution used to report your
qualified tuition and related expenses for 2005. The indicator must
be consistent for your institution for all recipients.
Indicator
Usage
1Payments received, reported in
Payment Amount 1.
2Amounts billed, reported in
Payment Amount 2.
551–662 Blank112Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1098–T
BlankHalf-time Student
Indicator
Graduate Student
Indicator
Academic Period
Indicator
Method of Reporting
2005 Amounts
Indicator
544–546547548549550
BlankSpecial Data EntriesBlankBlank or CR/LF
551–662663–722723–748749–750
(5) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–A
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Personal Liability
Indicator
1Enter the appropriate indicator from the table below:
IndicatorUsage
1Borrower was personally liable
for repayment of the debt.
BlankBorrower was not personally
liable for repayment of the debt.
2006–32 I.R.B.188August 7, 2006

(5) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–A (Continued)
Field
Position
Field TitleLength Description and Remarks
548–555 Date of Lender’s
Acquisition or
Knowledge of
Abandonment
8Enter the acquisition date of thesecured property or the date the
lender first knew or had reason to know the property was abandoned,
in the format YYYYMMDD (e.g., January 5, 2006, would be
20060105).Do not enter hyphens or slashes.
556–594 Description of
Property
39Enter a brief description of the property. For real property, enter
the address, or, if the address does not sufficiently identify the
property, enter the section, lot and block. For personal property,
enter the type, make and model (e.g., Car-1999 Buick Regal or
Office Equipment). Enter “CCC” for crops forfeited on Commodity
Credit Corporation loans. If fewer than 39 positions are required,
left-justify information and fill unused positions with blanks.
595–662 Blank68Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–A
BlankPersonal Liability
Indicator
Date of Lender’s
Acquisition or
Knowledge of
Abandonment
Description
of
Property
Blank
544–546547548–555556–594595–662
Special
Data
Entries
BlankBlank
or CR/LF
663–722723–748749–750
(6) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–B
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
August 7, 20061892006–32 I.R.B.

(6) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–B (Continued)
Field
Position
Field TitleLength Description and Remarks
547Gross Proceeds
Indicator
1Enter the appropriate indicator from the following table, to identify
the amount reported in Amount Code 2; otherwise, enter a blank.
IndicatorUsage
1Gross proceeds
2Gross proceeds less commissions and options
premiums
548–555 Date of Sale or
Exchange
8For 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
YYYYMMDD (e.g., January 5, 2006, would be 20060105). Enter
blanks if this is an aggregate transaction.Do not enter hyphens
or slashes.
556–568 CUSIP Number13For broker transactions only, enter the CUSIP (Committee on
Uniform Security Identification Procedures)numberoftheitem
reported for Amount Code 2 (stocks, bonds, etc.). Enter blanks if
this is an aggregate transaction.Enter“0s”(zeros)ifthenumberis
not available. Right-justify information and fill unused positions
with blanks.
569–607 Description39If 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 andforward contracts, enter “RFC” or
other appropriate description. For bartering transactions, show the
services or property provided.
608–615 Number of
Shares
Exchanged
8Enter the number of shares of the corporation’s stock which
were exchanged in the transaction. Report whole number only.
Right-justify information and fill unused positions with zeros.
616–625 Classes of
Stock
Exchanged
10Enter the class of stock that was exchanged. Left-justify the
information and fill unused positions with blanks.
626Recipient
Indicator
1Enter a “1” (one) if recipient is unable to claim a loss on their tax
return. Otherwise, enter a blank.
627–662 Blank36Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record may be used to record information
for state or local government reporting or for the filer’s own
purposes. Payers should contact the state or local revenue
departments for filing requirements. If this field is not utilized, enter
blanks.(See Note.)
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries field.
2006–32 I.R.B.190August 7, 2006

(6) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–B (Continued)
Field
Position
Field TitleLength Description and Remarks
747–748 Blank2Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Note: Report the Corporation’s Name, Address, City, State, and ZIP in the Special Data Entry field.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–B
Second
TIN Notice
(Optional)
BlankGross
Proceeds
Indicator
Date
of Sale
or Exchange
CUSIP
Number
DescriptionNumber of
Shares
Exchanged
544545–546547548–555556–568569–607608–615
Classes of
Stock
Exchanged
Recipient
Indicator
BlankSpecial
Data Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
616–625626627–662663–722723–734735–746747–748749–750
(7) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–C
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Bankruptcy
Indicator
1Enter “1” (one) to indicate the debt was discharged in bankruptcy, if
known. Otherwise, enter a blank.
548–555 Date Canceled8Enter the date the debt was canceled in the format of YYYYMMDD
(e.g., January 5, 2006, would be 20060105).Do not enter hyphens
or slashes.
556–594 Debt
Description
39Enter 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.
595–662 Blank68Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
August 7, 20061912006–32 I.R.B.

Payee “B” Record — Record Layout Positions 544–750 for Form 1099–C
BlankBankruptcy
Indicator
Date
Canceled
Debt
Description
BlankSpecial
Data
Entries
544–546547548–555556–594595–662663–722
BlankBlank
or CR/LF
723–748749–750
(8) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–CAP
Field
Position
Field TitleLength Description and Remarks
544–547 Blank4Enter blanks.
548–555 Date of Sale or
Exchange
8Enter the date the stock was exchanged for cash, stock in the
successor corporation, or otherproperty received in the format
YYYYMMDD (e.g., January 5, 2006, would be 20060105).Do
not enter hyphens or slashes.
556–607 Blank52Enter blanks.
608–615 Number of
Shares
Exchanged
8Enter the number of shares of the corporation’s stock which
were exchanged in the transaction. Report whole number only.
Right-justify information and fill unused positions with zeros.
616–625 Classes of Stock
Exchanged
10Enter the class of stock that was exchanged. Left-justify the
information and fill unused positions with blanks.
626Blank1Enter a blank.
627Shareholder
Indicator
1Enter a “1” (one) if the shareholder cannot take a loss on their tax
return. Otherwise, enter a blank.
628–662 Blank35Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–CAP
BlankDate of Sale or
Exchange
BlankNumber of Shares
Exchanged
Classes of Stock
Exchanged
544–547548–555556–607608–615616–625
2006–32 I.R.B.192August 7, 2006

BlankShareholder
Indicator
BlankSpecial Data
Entries
BlankBlank
or CR/LF
626627628–662663–722723–748749–750
(9) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–DIV
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547–586 Foreign Country
or U.S.
Possession
40Enter the name of the foreign country or U.S. possession to which
the withheld foreign tax (Amount Code C) applies. Otherwise, enter
blanks.
587–662 Blank76Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–DIV
Second
TIN
Notice
(Optional)
BlankForeign
Country
or U.S.
Possession
BlankSpecial
Data Entries
544545–546547–586587–662663–722
State Income Tax
Withheld
Local Income Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
723–734735–746747–748749–750
August 7, 20061932006–32 I.R.B.

(10) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–G
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Trade or
Business
Indicator
1Enter “1” (one) to indicate the state or local income tax refund,
credit, or offset (Amount Code 2) is attributable to income tax that
applies exclusively to income from a trade or business.
IndicatorUsage
1Income tax refund applies exclusively to a trade
or business.
BlankIncome tax refundis a general tax refund.
548–551 Tax Year of
Refund
4Enter the tax year for which the refund, credit, or offset (Amount
Code 2) was issued.The tax year must reflect the tax year for
which the payment was made, not the tax year of Form 1099–G.
The tax year must be in the four-position format of YYYY (e.g.,
2006).The valid range of years for the refund is 1996 through 2005.
Note: This data is not considered prior year data since it is required to be reported in the current tax year. Do NOT enter
“P” in field position 6 of theTransmitter “T” Record.
552–662 Blank111Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. You may enter your routing and transit number
(RTN) here. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–G
BlankTrade or
Business
Indicator
Tax Year
of
Refund
BlankSpecial Data
Entries
State
Income
Tax
Withheld
544–546547548–551552–662663–722723–734
2006–32 I.R.B.194August 7, 2006

Local Income
Tax Withheld
Combined
Federal/State
Code
Blank
or CR/LF
735–746747–748749–750
(11) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–H
Field
Position
Field TitleLength Description
and Remarks
544–546 Blank3Enter blanks.
547–548 Number of
Months Eligible
2Required.Enter the total number of months recipient is eligible for
health insurance advance payments. Right-justify and blank fill
any remaining position.
549–662 Blank114Enter blank
s.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter bla
nks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–H
BlankNumber of
Months Eligible
BlankSpecial Data
Entries
BlankBlank
or CR/LF
544–546547–548549–662663–722723–748749–750
(12) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–INT
Field
Position
Field TitleLength Description and Remarks
544Second
TIN
Notice
(Optio
nal)
1Enter“
2” (two) to indicate notification by IRS twice within three
calend
ar years that the payee provided an incorrect name and/or
TIN com
bination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547–586 Foreign Country
or U.S.
Possession
40Enter the name of the foreign country or U.S. possession to which
the withheld foreign tax (Amount Code 6) applies. Otherwise, enter
blanks.
587–66
2
Blank76Enter b
lanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. You may enter your routing and transit number
(RTN) here. If this field is not utilized, enter blanks.
August 7, 20061952006–32 I.R.B.

(12) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–INT (Continued)
Field
Position
Field TitleLength Description and Remarks
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–INT
Second
TIN
Notice
(Optional)
BlankForeign
Country
or U.S.
Possession
BlankSpecial
Data Entries
State Income
Tax Withheld
544545–546547–586587–662663–722723–734
Local
Income
Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
735–746747–748749–750
(13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Type of
Payment
Indicator
1Enter the appropriate indicator from the following table; otherwise,
enter blanks.
IndicatorUsage
1Per diem
2Reimbursed amount
548–556 Social Security
Number of
Insured
9Required.Enter the Social Security Number of the insured.
2006–32 I.R.B.196August 7, 2006

(13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC (Continued)
Field
Position
Field TitleLength Description and Remarks
557–596 Name of
Insured
40Required.Enter the name of the insured.
597–636 Address of
Insured
40Required.Enter the address of the insured. Street address should
include number, street, apartment or suite number (or PO Box if
mail is not delivered to street address). Left-justify information and
fill unused positions with blanks. This fieldmust notcontain any
data other than payee’s address.
ForU.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 theinsured’s city, state, and ZIP Code.
For foreign addresses,filers may use the insured’s city, state, and ZIP Codeas a continuous 51-position field. Enter information
inthefollowingorder:city,provinceorstate,postalcode,and the name of the country. When reporting a foreign address, the
Foreign Country Indicator in position 247 must contain a “1” (one).
637–676 City of Insured40Required.Enter the city, town, or post office. Left-justify
information and fill the unused positions with blanks. Enter APO
or FPO, if applicable. Do not enter state and ZIP Code information
in this field.
677–678 State of Insured2Required. 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. 15.
679–687 ZIP Code of
Insured
9Required.Enter the valid nine-digit ZIP Code assigned by the U.S.
Postal Service. If only the first five-digits are known, left-justify
information and fill the unused positions with blanks. For foreign
countries, alpha characters areacceptable as long as the filer has
entered a “1” (one) in the Foreign Country Indicator, located in
position 247 of the “B” Record.
688Status of Illness
Indicator
(Optional)
1Enter the appropriate code from the table below to indicate the status
of the illness of the insured; otherwise, enter blank.
IndicatorUsage
1Chronically ill
2Terminally ill
689–696 Date Certified
(Optional)
8Enter the latest date of a doctor’scertification of the status of the
insured’s illness. The format of the date is YYYYMMDD (e.g.,
January 5, 2006, would be 20060105).Do not enter hyphens or
slashes.
697Qualified
Contract
Indicator
(Optional)
1Enter a “1” (one) if benefits werefrom a qualified long-term care
insurance contract; otherwise, enter blank.
698–722 Blank25Enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled.
August 7, 20061972006–32 I.R.B.

(13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC (Continued)
Field
Position
Field TitleLength Description and Remarks
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled.
747–748 Blank2Enter blanks.
749–750 Blank2Enter blank or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC
BlankType of
Payment
Indicator
SSN of
Insured
Name of
Insured
Address
of Insured
City of
Insured
State of
Insured
ZIP Code
of Insured
544–546547548–556557–596597–636637–676677–678679–687
Status of
Illness
Indicator
(Optional)
Date
Certified
(Optional)
Qualified
Contract
Indicator
(Optional)
BlankState
Income
Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
688689–696697698–722723–734735–746747–748749–750
(14) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–MISC
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547Direct Sales
Indicator
(See Note.)
1
Enter a “1” (one) to indicate sales of $5,000 or more of consumer
products to a person on a buy-sell, deposit-commission, or any other
commission basis for resale anywhere other than in a permanent
retail establishment. Otherwise, enter a blank.
Note: If reporting a direct sales indicatoronly,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.
548–66
2
Blank115Enter b
lanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not used, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
2006–32 I.R.B.198August 7, 2006

(14) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–MISC (Continued)
Field
Position
Field TitleLength Description and Remarks
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–MISC
Second
TIN
Notice
(Optional)
BlankDirect
Sales Indicator
BlankSpecial
Data Entries
State Income
Tax
Withheld
Local
Income
Tax
Withheld
544545–546547548–662663–722723–734735–746
Combined
Federal/State
Code
Blank
or CR/LF
747–748749–750
(15) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–OID
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547–585 Description39Required.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 12/2006). 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.
586–662 Blank77Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
August 7, 20061992006–32 I.R.B.

(15) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–OID (Continued)
Field
Position
Field TitleLength Description and Remarks
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table l. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–OID
Second
TIN
Notice
(Optional)
BlankDescriptionBlankSpecial
Data Entries
State
Income
Tax
Withheld
544545–546547–585586–662663–722723–734
Local
Income
Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
735–746747–748749–750
(16) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–PATR
Field
Position
Field TitleLength Description and Remarks
544Second
TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–662 Blank118Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If field is not utilized, enter blanks
2006–32 I.R.B.200August 7, 2006

(16) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–PATR (Continued)
Field
Position
Field TitleLength Description and Remarks
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for 1099–PATR
Second
TIN
Notice
(Optional)
BlankSpecial
Data Entries
State Income
Tax
Withheld
Local
Income Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
544545–662663–722723–734735–746747–748749–750
(17) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–Q
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Trustee to
Trustee
Transfer
Indicator
1Required.Enter a “1” (one) if reporting a trustee to trustee transfer,
otherwise, enter blank.
548Type of
Tuition
Payment
1Required.Enter the appropriate code from the table below to
indicate the type of tuition payment, otherwise, leave blank.
IndicatorUsage
1Private program payment
2State program payment
3Coverdell ESA contribution
549Designated
Beneficiary
1Required.Enter a “1” (one) if the recipient is not the designated
beneficiary, otherwise, enter a blank.
550–662 Blank113Enter blanks.
August 7, 20062012006–32 I.R.B.

(17) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–Q (Continued)
Field
Position
Field TitleLength Description and Remarks
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–Q
BlankTrustee to
Trustee
Transfer
Indicator
Type of
Tuition
Payment
Designated
Beneficiary
BlankSpecial
Data Entries
BlankBlank or
CR/LF
544–546547548549550–662663–722723–748749–750
(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R
Field
Position
Field TitleLength Description and Remarks
544Blank1Enter blank.
545–546 Distribution Code
(For a detailed explanation of
distribution codes, see the2006
Instructions for Forms 1099–R
and 5498.)
See chart at the end of this record
layout for a diagram of valid
combinations of Distribution
Codes.
2Required.Enter at least one distribution code from the table below.
More than one code may apply. If only one code is necessary, it
must be entered in position 545 and position 546 will be blank.
When using Code P for an IRA distribution under section 408(d)(4)
of the Internal Revenue Code, the filer may also enter Code 1, 2, 4,
or J if applicable. Only three numeric combinations are acceptable,
Codes 8 and 1, 8 and 2, and 8 and 4, on one return. These three
combinations can be used only if both codes apply to the distribution
being reported. If more than one numeric code is applicable to
different parts of a distribution,report two separate “B” Records.
Distribution Codes 3, 5, 6, 9, E, F, N, Q, R, S and T cannot be
used with any other codes. Distribution Code G may be used with
Distribution Code 4 only if applicable.
CodeCategory
1*Early distribution, no known exception (in most
cases, under age 59
1
/2)
2*Early distribution, exception applies (Under age
59
1
/2)
3*Disability
4*Death
5*Prohibited transaction
6Section 1035 exchange (a tax-free exchange of life
insurance, annuity, or endowment contracts)
7*Normal distribution
2006–32 I.R.B.202August 7, 2006

(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position
Field TitleLength Description and Remarks
CodeCategory
8*Excess contributions plus earnings/excess
deferrals (and/or earnings) taxable in2006
9Cost of current life insurance protection (premiums
paid by a trustee or custodian for current insurance
protection)
AMay be eligible for 10-year tax option
BDesignated Roth account distribution
D*Excess contributions plus earnings/excess
deferrals taxable in2004
EExcess annual additions under section 415/certain
excess amounts under section 403(b) plans
FCharitable gift annuity
GDirect rollover and rollover contribution
JEarly distribution from a Roth IRA. (This code may
be used with Code 8 or P.)
LLoans treated as deemed distributions under section
72(p)
NRecharacterized IRA contribution made for2006
P*Excess contributions plus earnings/excess
deferrals taxable in2005
QQualified distribution from a Roth IRA.
(Distribution from a Roth IRA when the 5-year
holding period has been met, and the recipient has
reached 59
1
/2, has died, or is disabled.)
RRecharacterized IRA contribution made for2005
(See Note.)
S*EarlydistributionfromaSIMPLEIRAinfirst2
years, no known exception
TRoth IRA distribution, exception applies because
participant has reached 59
1
/2, died or is disabled,
but it is unknown if the 5-year period has been met.
*If reporting a traditional IRA, SEP, or SIMPLE distribution or a Roth conversion, use the IRA/SEP/SIMPLE Indicator
of “1” (one) in position 548 of the Payee “B” Record.
Note: The trustee of the first IRA must report the recharacterization as a distribution on Form 1099–R (and the original
contribution and its character on Form 5498).
547Taxable Amount
Not Determined
Indicator
1Enter “1” (one) only if the taxable amount of the payment entered
for Payment Amount Field 1 (Gross distribution) of the “B” Record
cannot be computed; otherwise, enter blank. (If Taxable Amount
Not Determined Indicator is used, enter “0’s” [zeros] in Payment
Amount Field 2 of the Payee “B” Record.) Please make every effort
to compute the taxable amount.
August 7, 20062032006–32 I.R.B.

(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position
Field TitleLength Description and Remarks
548IRA/SEP/ SIMPLE
Indicator
1Enter “1” (one) for a traditional IRA, SEP, or SIMPLE distribution
or Roth conversion; otherwise, enter a blank. (See Note.)Ifthe
IRA/SEP/SIMPLE Indicator is used, enter the amount of the Roth
conversion or distribution in Payment Amount Field A of the Payee
“B” Record.Do not use the indicator for a distribution from a
Roth or for an IRA recharacterization.
Note: For Form 1099–R, generally, report the Roth conversion or total amount distributed from a traditional IRA, SEP,
or SIMPLE in Payment Amount Field A (traditional IRA/SEP/SIMPLE distribution or Roth conversion), as well as
Payment Amount Field 1 (Gross Distribution) of the “B” Record. Refer to the2006 Instructions for Forms 1099–R and
5498forexceptions(Box2ainstructions).
549Total Distribution
Indicator
(See Note.)
1Enter a “1” (one) only if the payment shown for Distribution
Amount Code 1 is a total distribution that closed out the account;
otherwise, enter a blank.
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.
550–551 Percentage of Total
Distribution
2Use this field when reporting a total distribution to more than
one person, such as when a participant is deceased and a payer
distributes to two or more beneficiaries. Therefore, if the percentage
is 100, leave this field blank. If the percentage is a fraction, round
off to the nearest whole number (for example, 10.4 percent will be
10 percent; 10.5 percent will be 11 percent). Enter the percentage
received by the person whose TIN is included in positions 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
are not required to enter this information for any IRA distribution or
for direct rollovers.
552–559 Date of Designated Roth
Contribution
8Enter the date of the first year a designated Roth contribution was
made.
560–662 Blank103Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record may be used to record information
for state or local government reporting or for the filer’s own
purposes. The state/payer’s statenumber, state distribution, name of
locality, and/or local distributioncan be entered in this field. Payers
should contact the state or local revenue departments for filing
requirements. If this field is not utilized, enter blanks.
723–734 State Income Tax
Withheld
12State income tax withheld is for the convenience of the filer. 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 statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income Tax
Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
2006–32 I.R.B.204August 7, 2006

(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position
Field TitleLength Description and Remarks
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
FORM 1099–R DISTRIBUTION CODE CHART 2006
Payee
“B” Record — Record Layout Positions 544–750 for Form 1099–R
BlankDistribution
Code
Taxable
Amount Not
Determined
Indicator
IRA/SEP/SIMPLE
Indicator
Total
Distribution
Indicator
Percentage
of Total
Distribution
544545–546547548549550–551
August 7, 20062052006–32 I.R.B.

Date of
Designated Roth
Contribution
BlankSpecial
Data Entries
State Income
Tax Withheld
Local Income
Tax Withheld
Combined
Federal/State
Code
Blank
or CR/LF
552–559560–662663–722723–734735–746747–748749–750
(19) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–S
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Property or
Services
Indicator
1Required.Enter “1” (one) if the transferor received or will receive
property (other than cash and consideration treated as cash in
computing gross proceeds) or services as part of the consideration
for the property transferred. Otherwise, enter a blank.
548–555 Date of Closing8Required.Enter the closing date in the format YYYYMMDD (e.g.,
January 5, 2006, would be 20060105).Do not enter hyphens or
slashes.
556–594 Address or Legal
Description
39Required.Enter the address of the property transferred (including
city, state, and ZIP Code). If the address does not sufficiently
identify the property, also enter alegal description, such as section,
lot, and block. For timber royalties, enter “TIMBER.” If fewer than
39 positions are required, left-justify information and fill unused
positions with blanks.
595–662 Blank68Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income Tax
Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax
Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Blank2Enter blank.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–S
BlankProperty
or Services
Indicator
Date of
Closing
Address
or Legal
Description
BlankSpecial
Data Entries
544–546547548–555556–594595–662663–722
2006–32 I.R.B.206August 7, 2006

State Income
Tax Withheld
Local Income
Tax Withheld
BlankBlank
or CR/LF
723–734735–746747–748749–750
(20) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–SA
Field
Position
Field TitleLength Description and Remarks
544Blank1Enter blank.
545Distribution
Code
1Required.Enter the applicable code to indicate the type of payment.
CodeCategory
1Normal distribution
2Excess contribution
3Disability
4Death distribution otherthan code 6 (This includes
distributions to a spouse, nonspouse, or estate
beneficiary in the year of death and to an estate
after the year of death.)
5Prohibited transaction
6Death distributionafteryearofdeathto a
nonspouse beneficiary. (Do not use for distribution
to an estate.)
546Blank1Enter a blank.
547Medicare
Advantage
MSA
Indicator
1Enter “1” (one) if distributions are from a Medicare Advantage
MSA. Otherwise, enter a blank.
548HSA Indicator1Enter “1” (one) if distributions are from a HSA.Otherwise, enter
a blank.
549Archer MSA
Indicator
1Enter “1” (one) if distributions are from an Archer MSA. Otherwise,
enter a blank.
550–662 Blank113Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
August 7, 20062072006–32 I.R.B.

(20) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–SA (Continued)
Field
Position
Field TitleLength Description and Remarks
747–748 Blank2Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–SA
BlankDistribution
Code
BlankMedicare
Advantage
MSA
Indicator
HSA
Indicator
Archer
MSA
Indicator
BlankSpecial
Data Entries
544545546547548549550–662663–722
State
Income Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
723–734735–746747–748749–750
(21) Payee “B” Record — Record Layout Positions 544–750 for Form 5498
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547IRAIndicator
(Individual
Retirement
Account)
1Required, if applicable.Enter “1” (one) if reporting a rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for an
IRA. Otherwise, enter a blank.
548SEP
Indicator
(Simplified
Employee
Pension)
1Required, if applicable.Enter “1” (one) if reporting rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for a SEP.
Otherwise, enter a blank.
549SIMPLEIndicator
(SavingsIncentive
MatchPlan for
Employees)
1Required, if applicable.Enter “1” (one) if reporting a rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for a
SIMPLE. Otherwise, enter a blank.
550Roth IRA
Indicator
1Required, if applicable.Enter “1” (one) if reporting a rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for a Roth
IRA. Otherwise, enter a blank.
551RMD Indicator1Required.Enter “1” (one) if reporting RMD for 2006. Otherwise,
enter a blank.
552–662 Blank111Enter blanks.
2006–32 I.R.B.208August 7, 2006

(21) Payee “B” Record — Record Layout Positions 544–750 for Form 5498 (Continued)
Field
Position
Field TitleLength Description and Remarks
663–722 Special Data
Entries
60This portion of the “B” Record may be used to record information
for state or local government reporting or for the filer’s own
purposes. Payers should contact the state or local revenue
departments for filing requirements. If this field is not utilized, enter
blanks.(See Note.)
Note: For delayed contributions for U.S. Armed Forces, usethe Special Data Entry field to report the year for which the
contribution was made, the amount of the contribution and one of the indicators as outlined in the current Instructions for
Forms 1099–R and 5498.
723–746 Blank24Enter blanks.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record LayoutPositions 544–750 for Form 5498
BlankIRA
Indicator
SEP
Indicator
SIMPLE
Indicator
Roth
IRA
Indicator
RMD
Indicator
544–546547548549550551
BlankSpecial
Data
Entries
BlankCombined
Federal/State
Code
Blank
or CR/LF
552–662663–722723–746747–748749–750
(22) Payee “B” Record — Record Layout Positions 544–750 for Form 5498–ESA
Field
Position
Field TitleLength Description and Remarks
544–662 Blank119Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
August 7, 20062092006–32 I.R.B.

Payee “B” Record — Record Layout Positions 544–750 for Form 5498–ESA (Continued)
BlankSpecial Data
Entries
BlankBlank
or CR/LF
544–662663–722723–748749–750
(23) Payee “B” Record — Record Layout Positions 544–750 for Form 5498–SA
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Medicare
Advantage
MSA
Indicator
1Enter “1” (one) for Medicare Advantage MSA. Otherwise, enter
a blank.
548HSA Indicator1Enter “1” (one) for HSA. Otherwise, enter a blank.
549Archer MSA
Indicator
1Enter “1” (one) for Archer MSA. Otherwise, enter a blank.
550–662 Blank113Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 5498–SA
BlankMedicare
Advantage
MSA
Indicator
HSA
Indicator
Archer
MSA
Indicator
BlankSpecial
Data Entries
BlankBlank
or CR/LF
544–546547548549550–662663–722723–748749–750
(24) Payee “B” Record — Record Layout Positions 544–750 for Form W–2G
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Type of Wager
Code
1Required.Enter the applicable type of wager code from the table
below.
CodeCategory
1Horse race track (or off-track betting of a horse
track nature)
2006–32 I.R.B.210August 7, 2006

(24) Payee “B” Record — Record Layout Positions 544–750 for Form W–2G (Continued)
Field
Position
Field TitleLength Description and Remarks
CodeCategory
2Dog race track (or off-track betting of a dog track
nature)
3Jai-alai
4State-conducted lottery
5Keno
6Bingo
7Slot machines
8Any other type of gambling winnings
548–555 Date Won8Required.Enter the date of the winning transaction in the format
YYYYMMDD (e.g., January 5, 2006, would be 20060105).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).
556–570 Transaction15Required.For state-conducted lotteries, enter the ticket or other
identifying number. For keno, bingo, and slot machines, enter the
ticket or card number (and color, if applicable), machine serial
number, or any other information that will help identify the winning
transaction. For all others, enter blanks.
571–575 Race5If applicable, enter the race (or game) relating to the winning ticket;
otherwise, enter blanks.
576–580 Cashier5If applicable, enter the initials or number of the cashier making the
winning payment; otherwise, enter blanks.
581–585 Window5If applicable, enter the window number or location of the person
paying the winning payment; otherwise, enter blanks.
586–600 First ID15For other than state lotteries, enter the first identification number of
the person receiving the winnings; otherwise, enter blanks.
601–615 Second ID15For other than state lotteries, enter the second identification number
of the person receiving the winnings; otherwise, enter blanks.
616–662 Blank47Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting state tax withheld, this field may be used
as a continuation of the Special Data Entries field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be used
as a continuation of the Special Data Entries field.
747–748 Blank2Enter blanks.
August 7, 20062112006–32 I.R.B.

(24) Payee “B” Record — Record Layout Positions 544–750 for Form W–2G (Continued)
Field
Position
Field TitleLength Description and Remarks
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record LayoutPositions 544–750 for Form W–2G
BlankType of
Wager
Code
Date
Won
TransactionRaceCashierWindowFirst ID
544–546547548–555556–570571–575576–580581–585586–600
Second IDBlankSpecial Data
Entries
State Income
Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
601–615616–662663–722723–734735–746747–748749–750
Sec. 7. End of Payer “C” Record — General Field Descriptions and Record Layout
.01The “C” Record consists of the total number of payees and the totals of the payment amount fields filed for each payer and/or
particular type of return. The “C” Record must follow thelast “B” Record for each type of return for each payer.
.02For each “A” Record and group of “B” Records on the file, there must be a corresponding “C” Record.
.03The End of Payer “C” Record is a fixedlength of 750 positions. The control fields are each 18 positions in length.
Record Name: End of Payer “C” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “C.”
2–9Number of
Payees
8Required.Enter the total number of “B” Records covered by the
preceding “A” Record. Right-justify information and fill unused
positions with zeros.
10–15Blank6Enter blanks.
2006–32 I.R.B.212August 7, 2006

Record Name: End of Payer “C” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
16–33Control Total 118
34–51Control Total 218
52–69Control Total 318
70–87Control Total 418
88–105Control Total 518
106–123 Control Total 618
124–141 Control Total 718
142–159 Control Total 818
160–177 Control Total 918
178–195 Control Total A18
196–213 Control Total B18
214–231 Control Total C18
232–249 Control Total D18
250–267 Control Total E18
Required.Accumulate totals of any payment amount fields in the
“B” Records into the appropriate control total fields of the “C”
Record.Control totals must be right-justified and unused control
total fields zero-filled.All control total fields are 18 positions in
length. Each payment amount must contain U.S. dollars and cents.
The right-most two positions represent cents in the payment amount
fields.
268–499 Blank232Enter blanks.
500–507 Record Se
quence
Number
8Required
.Enter the number of the record as it appears within
your file
. The record sequence number for the “T” record will
always be
“1” (one), since it is the first record on your file and you
can have
only one “T” record in a file.Each record, thereafter,
must be i
ncremented by one in ascending numerical sequence,
i.e., 2,
3, 4, etc. Right-justify numbers with leading zeros in
the fiel
d. For example, the “T” record sequence number would
appear
as “00000001” in the field, the first “A” record would be
“00000
002”, the first “B” record, “00000003”, the second “B”
record
, “00000004” and so on until youreach the final record of
the fil
e, the “F” record.
508–748 Blank241Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
End of
Payer “C” Record — Record Layout
Record
Type
Number of
Payees
BlankControl
Total
1
Control
Total
2
Control
Total
3
Control
Total
4
Control
Total
5
Control
Total
6
12–910–1516–3334–5152–6970–8788–105106–123
Cont
rol
Tota
l
7
Cont
rol
Tota
l
8
Cont
rol
Tota
l
9
Cont
rol
Tota
l
A
Cont
rol
Tota
l
B
Cont
rol
Tota
l
C
Cont
rol
Tota
l
D
Cont
rol
Tota
l
E
Blan
k
124–141142–159160–177178–195196–213214–231232–249250–267268–499
August 7, 20062132006–32 I.R.B.

Record
Sequence
Number
BlankBlank
or CR/LF
500–507508–748749–750
Sec. 8. State Totals “K” Record — GeneralField Descriptions and Record Layout
.01The State Totals “K” Record is a summary for a given payer and agiven state in the Combined Federal/State Filing Program,
usedonlywhen state-reporting approval has been granted.
.02The “K” Record will contain the total number of payees and thetotal 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. A file format diagram is located
at the end of Part D.
.03The “K” Record is a fixed length of 750 positions. The control total fields are each18 positions in length.
.04In developing the “K” Record, for example, if a payer usedAmount Codes 1, 3, and 6 in the “A” Record, the totals from the
“B” Records coded for this statewould appear in Control Totals 1, 3, and 6 of the “K” Record.
.05There must be a separate “K” Record foreach statebeing reported.
.06Refer to Part A, Sec. 13, for the requirements and conditions thatmustbe met to file via this program.
Record Name: 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 TitleLength Description and Remarks
1Record
Type
1Required.Enter “K.”
2–9Number of
Payees
8Required.Enter the total number of “B” Records being coded for
this state. Right-justify information and fill unused positions with
zeros.
10–15Blank6Enter blanks.
16–33Control Total 118
34–51Control Total 218
52–69Control Total 318
70–87Control Total 418
88–105Control Total 518
106–123 Control Total 618
124–141 Control Total 718
142–159 Control Total 818
160–177 Control Total 918
178–195 Control Total A18
196–213 Control Total B18
214–231 Control Total C18
232–249 Control Total D18
250–267 Control Total E18
Required.Accumulate totals of any payment amount fields in
the “B” Records for each state being reported into the appropriate
control total fields of the appropriate “K” Record. Each payment
amount must contain U.S. dollarsand cents. The right-most two
positions represent cents in the payment amount fields.Control
totals must be right-justified and unused control total fields
zero-filled.All control total fields are 18 positions in length.
268–499 Blank232Enter blanks.
2006–32 I.R.B.214August 7, 2006

Record Name: State Totals “K” Record — RecordLayout Forms 1099–DIV, 1099–G, 1099–INT,
1099–MISC, 1099–OID, 1099–PATR, 1099–R, and 5498 (Continued)
Field
Position
Field TitleLength Description and Remarks
500–507 Record Sequence
Number
8Required.Enter the number of the record as it appears within
your file. The record sequencenumber for the “T” record will
always be “1” (one), since it is the first record on your file and you
can have only one “T” record in a file. Each record, thereafter,
must be incremented by one inascending numerical sequence,
i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” record sequence number would
appear as “00000001” in the field, the first “A” record would be
“00000002”, the first “B” record, “00000003”, the second “B”
record, “00000004” and so on until you reach the final record of
the file, the “F” record.
508–706 Blank199Enter blanks.
707–724 State Income
TaxWithheldTotal
18State income tax withheld total is for the convenience of the filers.
Aggregate totals of thestate income tax withheld field in the Payee
“B” Records; otherwise, enter blanks.
725–742 Local Income
TaxWithheldTotal
18Local income tax withheld total is for the convenience of the filer.
Aggregate totals of the local income tax withheld field in the Payee
“B” Records; otherwise, enter blanks.
743–746 Blank4Enter blanks.
747–748 Combined
Federal/State
Code
2Required.Enter the code assigned to the state which is to receive
the information. (Refer to Part A, Sec. 13, Table l.)
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC,
1099–OID, 1099–PATR, 1099–R, and 5498
Record
Type
Number of
Payees
BlankControl
Total
1
Control
Total
2
Control
Total
3
Control
Total
4
Control
Total
5
Control
Total
6
12–910–1516–3334–5152–6970–8788–105106–123
Control
Total
7
Control
Total
8
Control
Total
9
Control
Total
A
Control
Total
B
Control
Total
C
Control
Total
D
Control
Total
E
Blank
124–141142–159160–177178–195196–213214–231232–249250–267268–499
Record
Sequence
Number
BlankState Income
Tax
Withheld
Total
Local
Income
Tax
Withheld
Total
BlankCombined
Federal/State
Code
Blank
or CR/LF
500–507508–706707–724725–742743–746747–748749–750
August 7, 20062152006–32 I.R.B.

Sec. 9. End of Transmission “F” Record — General Field Descriptions and Record Layout
.01The End of Transmission “F” Record is a summary of the number of payers in the entire file.
.02The “F” Record is a fixed record length of 750 positions.
.03This record must 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 TitleLength Description and Remarks
1Record Type1Required.Enter “F.”
2–9Number of “A” Records8Enter the total number of Payer “A” Records in the entire file
(right-justify and zero-fill) or enter all zeros.
10–30Zero21Enter zeros.
31–49Blank19Enter blanks.
50–57Total Number of
Payees
8Enter the total number of Payee “B” Records reported in the file.
Right-justify information and fill unused positions with zeros. If
you have entered this total in the “T” Record, you may leave this
field blank.
58–499Blank442Enter blanks.
500–507 Record Sequence Number8Required.Enter the number of the record as it appears within
your file. The record sequencenumber for the “T” record will
always be “1” (one), since it is the first record on your file and you
can have only one “T” record in a file. Each record, thereafter,
must be incremented by one inascending numerical sequence,
i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” record sequence number would
appear as “00000001” in the field, the first “A” record would be
“00000002”, the first “B” record, “00000003”, the second “B”
record, “00000004” and so on until you reach the final record of
the file, the “F” record.
508–748 Blank241Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
End of Transmission “F” Record — Record Layout
Record
Type
Number of
“A”
Records
ZeroBlankTotal
Number
of Payees
BlankRecord
Sequence
Number
BlankBlank
or CR/LF
12–910–3031–4950–5758–499500–507508–748749–750
2006–32 I.R.B.216August 7, 2006

Sec. 10. File Layout Diagram
Part E. E
xtensions of Time and Waivers
Sec. 1.
General — Extensions
.01An e
xtension of time to file may be requested for Forms 1098,1099, 5498, 5498–SA, 5498–ESA, W–2G, W–2 series, 8027
and 104
2–S.
.02For
m 8809, Application for Extension of Time To File Information Returns, should be submitted to IRS/ECC-MTB at the
addres
s listed in .08 of this section. This form may be used to request an extension of time to file information returns submitted on
paper,
electronically or magnetically tothe IRS. Use a separate Form 8809 for each methodof filing information returns you intend
to use,
i.e., electronically, magnetically or paper.
.03To b
e considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the request
will be
denied. (See Part A, Sec. 9, for due dates.) If requesting an extension of time to file several types of forms, use one Form
8809; h
owever, Form 8809 or file must be postmarked no later than theearliest due date. For example, if requesting an extension of
time t
o file both Forms 1099–INT and 5498, submit Form 8809 on or before February 28, 2006.
.04 As s
oonasitisapparentthat a 30-day extension of time to file is needed, an extension request should be submitted. It will take
amini
mum of 30 days for IRS/ECC-MTB to respond to an extension request. Generally, IRS/ECC-MTB does not begin processing
exten
sion requests until January. Extension requests received prior to January are input on a first come, first serve basis.
.05Un
der certain circumstances, a request for an extension of time may be denied. When a denial letter is received, any additional
or nec
essary information may be resubmitted within 20 days.
.06Re
questing 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 associated TINs (EIN or SSN).The listing must be attached to ensure an extension is recorded for all
payer
s.Form 8809 may be computer-generated or photocopied. Be sureto use the most recently updated version and include all the
perti
nent information.
.07Re
quests for an extension of time tofile for more than 50 payers arerequiredto be submitted electronically or magnetically.
IRS en
courages requests for 10 to 50 payers to be filed electronicallyor magnetically. (See Sec. 3, for the record layout.) The request
may be
filed electronically or on tape cartridges.
August 7, 20062172006–32 I.R.B.

.08All requests for an extension of time filed on Form 8809 or tape cartridge should be sent using the following address:
IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
Note: Due to the large volume of mail received by IRS/ECC-MTB and the time factor involved in processing Extension of
Time (EOT) requests, it is imperative that the attention line be present on all envelopes or packages containing Form 8809.
.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 IRS/ECC-MTB after the due date, are treated astimely under the “timely mailing as timely
filing” rule. A similar rule applies to designated private delivery services (PDSs). See Part A, Sec. 9, 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/ECC-MTB will
be used as the filing date.
.10Transmitters requesting an extension of time for multiple payers will receive one approval letter, accompanied by a list of payers
covered under that approval.
.11If an additional extension of time is needed, a second Form 8809 or file 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
filesassoonasprepared.DonotwaitforECC-MTB’s response to your second extension request.
.12If an extension request is approved, the approval letter should be kept on file.DO NOTsend the approval letter or copy of the
approval letter to IRS/ECC-MTB with the tape cartridge file or to the service center where the paper returns are filed.
.13Request an extension for only one tax year.
.14A signature is not required when requesting a 30-day extension. If a second 30-day extension is requested, the Form 8809
MUSTbe signed.
.15Failure to properly complete and sign Form 8809 may cause delays in processing the request or result in a denial. Carefully
read and follow the instructions on the back of Form 8809.
.16Form 8809 may be obtained by calling1–800–TAX–FORM (1–800–829–3676). The form is also available on theIRS website
at www.irs.gov. A copy of Form 8809 is also provided in the back of Publication 1220.
Sec. 2. Specifications for Electronic Filing or Tape Cartridge Extensions of Time
.01The specifications in Sec. 3 include the required 200-byte record layout for extensions of time to file requests submitted elec-
tronically or magnetically. Also included are the instructions for the information that is to be entered in the record.Filers are advised
to read this section in its entirety to ensure proper filing.
.02If a filer does not have an IRS/ECC-MTB assigned Transmitter Control Code (TCC), Form 4419, Application for Filing Infor-
mation Returns Electronically/Magnetically,mustbe submitted to obtain a TCC. This numbermustbe used to submit an extension
request electronically/magnetically. (See Part A, Sec. 6.)
.03For extension requests filed on tape cartridges, the transmitter must mail the completed Form 8809, Application for Extension
of Time To File Information Returns, in the same package as the corresponding media or fax it to 304–264–5602. For extension
requests filed electronically, the transmitter must fax Form 8809 the same day the transmission is made. Due to security concerns,
extension requests maynotbe emailed with the Form 8809 as an attachment.
.04 Transmitters submitting an extension of time electronically or magnetically shouldnotsubmitalistofpayernamesand
TINs with Form 8809 since this information is included on the electronicormagneticfile.However,Line6ofForm8809must
be completed with the total number of records included on the electronic or tape cartridge file.
.05Do not submit tax year 2006 extension requests filed on tape cartridges beforeJanuary 1, 2007,or electronically beforeJanuary
5, 2007.
.06Each tape cartridgemusthave 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
.07Electronic filing, and tape cartridge specifications for extensions are the same as the specifications for filing of information
returns. (See Part B or C for specific technical information.)
2006–32 I.R.B.218August 7, 2006

Sec. 3. Record Layout — Extension of Time
.01Positions 6 through 188 of the following record should contain information about thepayerfor whom the extension of time to
file is being requested. Do not enter transmitter information in these fields.OnlyoneTCCmaybepresentinafile.
Record Layout for Extension of Time
Field
Position
Field TitleLength Description and Remarks
1–5Transmitter
Control Code
5Required. Enter the five-character alpha/numeric Transmitter
Control Code (TCC) issued by IRS.Only one TCC per file is
acceptable.
6–14Payer 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 requiredtohaveaTIN,thisfieldmay
be blank; however, the Foreign Entity Indicator, position 187,must
be set to “X.”
15–54Payer Name40Required. Enter the name of the payer whose TIN appears in
positions 6–14. Left-justify information and fill unused positions
with blanks.
55–94Second Payer
Name
40If additional space is needed, this field may be used to continue
name line information (e.g., c/o First National Bank); otherwise,
enter blanks.
95–134Payer Address40Required. Enter the payer’s address. Street address should include
number, street, apartment or suite number (or PO Box if mail is
not delivered to a street address).
135–174 Payer City40Required. Enter payer city, town, or post office.
175–176 Payer State2Required. Enter the payer valid U.S. Postal Service state
abbreviation. (Refer to Part A, Sec. 15.)
177–185 Payer ZIP Code9Required. Enter payer ZIP Code. If using a five-digit ZIP Code,
left-justify information and fillunused positions with blanks.
186Document
Indicator
(See Note.)
1Required. Enter the appropriate document code that indicates the
form for which you are requesting an extension of time.
CodeDocument
1W–2
21098, 1098–C, 1098–E, 1098–T, 1099–A, 1099–B,
1099–C, 1099–CAP, 1099–DIV, 1099–G, 1099–H,
1099–INT, 1099–LTC, 1099–MISC, 1099–OID,
1099–PATR, 1099–Q, 1099–R, 1099–S, 1099–SA,
or W–2G
35498
41042–S
5REMIC Documents (1099–INT or 1099–OID)
65498–SA
75498–ESA
Note: Do not enter any other values in this field. Submit aseparate record for each document. For example, if you are
requesting an extension for Form 1099–INT and Form 5498 for the same payee, submit one record with “2” coded in this
field and another record with “3” codedin 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.
August 7, 20062192006–32 I.R.B.

Record Layout for Extension of Time (Continued)
Field
Position
Field TitleLength Description and Remarks
187Foreign
Entity
Indicator
1Enter “X” if the payer is a foreign entity.
188Recipient Request Indicator1Enter “X” if the extension request is to furnish statements to the
recipients of the information return.
Note: A separate file is required for this type of extension request. A file must either contain all blanks or all X’s in this field.
189–198 Blank10Enter blanks.
199–200 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Extension of Time Record Layout
Transmitter
Control
Code
Payer
TIN
Payer
Name
Second
Payer
Name
Payer
Address
Payer
City
Payer
State
1–56–1415–5455–9495–134135–174175–176
Payer
ZIP
Code
Document
Indicator
Foreign
Entity
Indicator
Recipient
Request
Indicator
BlankBlank
or CR/LF
177–185186187188189–198199–200
Sec. 4. Extension of Time for Recipient Copies of Information Returns
.01Request anextension of time to furnish the statements to recipientsof Forms 1098, 1099 series, 5498 series, W–2G,
W–2 series, and 1042–S by submitting a letterto IRS/ECC-MTB at the address listed in Part E, Sec. 1.08. The letter should contain
the following information:
(a)Payer name
(b)TIN
(c)Address
(d)Type of return
(e)Specify that the extension request isto provide statements to recipients
(f)Reason for delay
(g)Signature of payer or duly authorized person
.02Requests for an extension of time to furnishstatements to recipients ofForms 1098, 1099 series, 5498 series, W–2G, W–2 series,
and 1042–S are not automatically approved; however, if approved, generally an extension will allow aMAXIMUMof 30 additional
days from the due date. The request must be postmarked by the date on which the statements are due to the recipients.
.03Generally, only the payer may sign the letter requesting the extension for recipient copies. A transmitter must have a contractual
agreement with the filers to submit extension requests on their behalf. This should be stated in your letter of request for recipient copy
extensions. If you are requesting an extension for multiple payers electronically or magnetically, you must use the format specifica-
tions in Sec. 4 (See Sec. 1.07).
.04Requests for arecipientextension of time to file for more than 50 payers arerequiredto be submitted electronically or mag-
netically. IRS encourages requests for 10 to 50 payers to be filed electronically or magnetically. (See Sec. 3, for the record layout.)
The request may be filed electronically or on tape cartridges.
2006–32 I.R.B.220August 7, 2006

Sec. 5. Form 8508, Request for Waiver From Filing Information Returns
Electronically/Magnetically
.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 filing)
and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For penalty
information, refer to the Penalty Section of the2006 General 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 an undue hardship,
they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information
Returns Electronically/Magnetically, to IRS/ECC-MTB. Form 8508 can be obtained on the IRS website atw
ww.irs.govor by calling
toll-free 1–800–829–3676.
.03Even though a payer may submit as many as 249 corrections on paper, IRS encourages electronic or magnetic filing of correc-
tions. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more electronically or magnetically.
However, if a waiver for original documents is approved, any corrections for the same type of returns will be covered under that
waiver.
.04Generally, only the payer may sign 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 Form 8508.
.05A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers.
.06All information requested on Form 8508 must beprovided to IRS for the request to be processed.
.07The waiver, if approved, will provide exemption from the magnetic media filing requirement 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.
.08Form 8508 may be photocopied or computer-generated as long as itcontains all the information requested on the original form.
.09Filers are encouraged to submit Form 8508 to IRS/ECC-MTB at least 45 days before the due date of the returns. Generally,
IRS/ECC-MTB does not process waiver requests until January. Waiver requests received prior to January are processed on a first
come, first serve basis.
.10All requests for a waiver should be sent using the following address:
IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
.11 File Form 8508 for the W–2 series of forms with IRS/ECC-MTB, not SSA.
.12Waivers are evaluated on a case-by-case basis and are approved ordenied 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/ECC-MTB to respond to a
waiver request.
.13If a waiver request is approved, keep the approval letter on file.DO NOTsend a copy of the approved waiver to the service
center where the paper returns are filed.
.14An approved waiver only applies to the requirement for filing information returns electronically/magnetically. The payer must
still timely file information returns on the official IRS paper formsor an acceptable substitute form with the appropriate service center.
August 7, 20062212006–32 I.R.B.

Part IV. Items of General Interest
Foundations Status of Certain
Organizations
Announcement 2006–51
The following organizations have failed
to establish or have been unable to main-
tain their status as public charities or as op-
erating foundations. Accordingly, grantors
and contributors may not, after this date,
rely on previous rulings or designations
in the Cumulative List of Organizations
(Publication 78), or on the presumption
arising from the filing of notices under sec-
tion 508(b) of the Code. This listing does
notindicate that the organizations have lost
their status as organizations described in
section 501(c)(3), eligible to receive de-
ductible contributions.
Former Public Charities.The follow-
ing organizations (which have been treated
as organizations thatare not private foun-
dations described in section 509(a) of the
Code) are now classified as private foun-
dations:
29 11 Student Ministries, Mars Hill, NC
Agape Community Development Corp.,
Ft. Lauderdale, FL
Alice Hawthorne Educational &
Development Fund, Inc., Sarasota, FL
Another Day, Inc., Charlotte, NC
B L Trevathan Hatler E Morgan Elderly
Housing, Inc., Benton, KY
Bailey Booster Club, Inc., Arlington, TX
Bainbridge High School Instrumental
Music Boosters, Bainbridge Island, WA
Barnabas International, Longview, TX
Bentonville Parent Teacher Organization,
Bentonville, AR
Better Living Centers, West Hills, CA
Born Magazine, Portland, OR
Break Through in Life Center,
Memphis, TN
C L Brown World Deliverance Evangelical
Christian Society, Inc., Decatur, GA
Call of The Wild Alliance,
Grand Junction, CO
Candor Foundation, Inc.,
Rolling Hills, CA
Carrollton Empty Stocking Fund, Inc.,
Carrollton, GA
Centinela Valley Education Foundation,
Lawndale, CA
Chariot Foundation, Saratoga, CA
Chinese Helping Hand, Honolulu, HI
City Soccer, Phoenix, AZ
Collierville Citizens Police Association,
Collierville, TN
Community Outreach Ministries, Inc.,
Safford, AZ
Compton Construction, Inc.,
Compton, CA
Computer Education for the Elderly, Inc.,
Freehold, NJ
Crime Prevention Network Corporation,
Brooklyn, NY
Defenders of the Gospel Ministries, Inc.,
Plantation, FL
Destiny Big Cat Sanctuary, Inc.,
Southwest Ranches, FL
Divine Change, Inc., Philadelphia, PA
Drepung Gomang Institute,
Louisville, KY
Economic Empowerment for All People,
Kansas City, MO
Evening Praise Gospel Productions
Ministries, Houston, TX
Families First Charitable Foundation,
Inc., Celebration, FL
Farvan Cultural and Educational Initiative,
Inc., Charlotte, NC
Feed the Hungry for Christ Ministries,
Inc., Gardena, CA
Flood Gates of Faith Christian Ministry,
Compton, CA
Florida Jets Wrestling Club, Inc.,
Oviedo, FL
Foundation for the Advancement of the
Haitian People, Inc., Binghamton, NY
Freedom Within Ministries, Houma, LA
Friends of James Lick High School,
Soquel, CA
Friends of Princess Royal Trust for Carers,
Inc., Boston, MA
Gilead Foundation, Inc., Marietta, GA
Go Driving School, Inc., Sanford, FL
God is Total Dress for Success,
Colton, CA
Good Samaritan Ministry, Inc.,
Forest Hills, NY
Good Samaritan Training Center,
Decatur, GA
Greater Gowensville Association,
Campobello, SC
Griffin Foundation for Childrens Issues,
Cupertino, CA
Guillory Family Toy Drive,
Opelousas, LA
Havjazz, Inc., Fishers, NY
Headington Institute, Pasadena, CA
Heaven Sent Transportation, Chicago, IL
Helping Others Pursue Excellence
Ministries Community Dev. Corp., Inc.,
Decatur, GA
Housing Opportunities Arizona One, Inc.,
Northridge, CA
Hudson Valley Technology & Commerce,
Inc., Woodstock, NY
Immanuel Childrens Development Centre,
Seattle, WA
Jacobs Ladder Transitional Home,
Kittrell, NC
Jersey Central Theatre Company, Inc.,
North Plainfield, NJ
Kids Count Too, Twin Falls, ID
Kidz Eyes Foundation, Los Angeles, CA
Kirkland Firefighters Benevolent
Association, Kirkland, WA
Latinos Por La Gente, San Jose, CA
Laupahoehoe Alumni Community,
Laupahoehoe, HI
Learning Spring Foundation, Inc.,
New York, NY
Light City Community Development
Corporation, New Orleans, LA
Light of the Word A Chaplains Ministry,
Inc., Absecon, NJ
Louisville Neighborhood Initiative, Inc.,
Louisville, KY
Maine Challenged Sailors, Cape Eliz, ME
Marat Daukayev Ballet Theatre, Inc.,
Los Angeles, CA
McHenry County Latino Coalition,
Woodstock, IL
Metropolitan Alliance, Inc.,
Washington, DC
Missions Senior Community, Inc.,
Socorro, TX
Mohave Valley Community Response
Team-cert, Mohave Valley, AZ
Money Management Advocacy Council
ICON, New Orleans, LA
Mozaic Cultural Encounter, Inc.,
Cypress, CA
Murray Arts Council, Sandy, UT
Museum Center of Childrens Books, Inc.,
Los Angeles, CA
Museums at Mitchel, Garden City, NY
National Foundation for Public Safety,
Chicago, IL
National Veterans Hall of Honor,
Norfolk, NE
Nebraska Center for Faith Based and
Community Initiatives, Inc., Omaha, NE
2006–32 I.R.B.222August 7, 2006

New England Ferret Foster Education &
Rescue, Inc. Westfield, MA
New York Raptors Special Hockey Club,
Inc., Larchmont, NY
Northern Rockies Ethnobotany Center,
Helena, MT
Notes for Hire, Scotts Valley, CA
Odyssey Productions, Marietta, GA
Oikia USA, Inc., Russellville, KY
Oiled Regions of Alaska Foundation,
Anchorage, AK
Open Air City Wide Revival,
Richmond, VA
Ophelias House, Washington, DC
Orchard Hills Charitable Foundation,
Lancaster, MA
Orcutt United Soccer League, Orcutt, CA
Our Gardens Gate, Inc., Fairfield, CA
Outfield Angels, Wichita Falls, TX
Parakletos Ministries, Inc., Atlanta, GA
Pathways International,
New Brighton, MN
Paul Bunyan Foundation, Inc.,
Victorsville, CA
Paws, Adams, WI
Payson Arizona Woofers Society, Inc.,
Payson, AZ
Pebble Hills Citizens Advisory Board,
El Paso, TX
Pennsylvania Avenue Redevelopment
Collaborative, Inc., Baltimore, MD
Pets Second Chance for Life, Inc.,
Chesterfield, MO
Philly Pride Presents, Inc.,
Philadelphia, PA
Potters House Homes for Children, Inc.,
Stone Mountain, GA
Rainbow Montessori Daycare, Inc.,
Jamaica, NY
Randlin Adult Family Care Homes, Inc.,
Wausau, WI
Rappahannock County School Sports
Association, Inc., Washington, VA
Retemp Development Center, Inc.,
Laurel, DE
Richmond Queer Space Project,
Richmond, VA
River Oaks Family Charities,
New Castle, CO
Russiart Com, San Jose, CA
San Diego Psychological Association
Community Services Group,
San Diego, CA
Sapphire Sports, Stone Mountain, GA
Serendipitea, Inc., Kinston, NC
Sharing the Journey, Toledo, OH
Shoqata Atdhetare Dibrane,
Staten Island, NY
S O C Saving Our Community,
Houston, TX
S O C K S, Inc., St. Louis, MO
Spiritual Impact Outreach Ministries,
Mobile, AL
St. Francois Society, St. Louis, MO
Standing on My Own S O M O
Corporation, Houston, TX
Stanislaus Chapter of Mental Health
Consumers, Modesto, CA
State Line Swim League, Inc., Bethel, CT
Texas Indo-American Physician
Society-Central, Killeen, TX
Tiara Ministries, Inc., Lakeland, FL
Tomorrows Kids Today, Inc.,
Grants Pass, OR
Traveling Space Museum, Inc.,
Los Angeles, CA
T R E E, Inc., of Mississippi,
Ocean Springs, MS
Turning Point Ranch Foundation,
Stillwater, OK
Twelve Thirty One, Inc., Hartford, CT
U S Women Help Coalition Faith Based,
Inc., Orlando, FL
University Wits Repertory, Pasadena, CA
V I B E Athletics, New Britain, CT
Visiting Nurse Association of
Schenectady Community Care,
Inc., Schenectady, NY
Voices of Our Nations Foundation,
San Jose, CA
We Care Family Connection Ministry,
Hercules, CA
William Rockwell Foundation,
Santee, CA
Workers Housing Corporation,
San Juan, PR
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as
a private operating foundation, the Inter-
nalRevenueServicewillissuearulingor
determinationletterwiththerevisedclas-
sification as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
videdinsection1.509(a)–7oftheIncome
Tax Regulations. It is not the practice of
the Service to announce such revised clas-
sification of foundation status in the Inter-
nal Revenue Bulletin.
August 7, 20062232006–32 I.R.B.

Definition of Terms
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 ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis 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 applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes 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 rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published 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 pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis 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 rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations
to show that the previous published rul-
ings 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 fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
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—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2006–32 I.R.B.iAugust 7, 2006

Numerical Finding List
1
Bulletins 2006–27 through 2006–32
Announcements:
2006-42, 2006-27 I.R.B.48
2006-43, 2006-27 I.R.B.48
2006-44, 2006-27 I.R.B.49
2006-45, 2006-31 I.R.B.121
2006-46, 2006-28 I.R.B.76
2006-47, 2006-28 I.R.B.78
2006-48, 2006-31 I.R.B.135
2006-49, 2006-29 I.R.B.89
2006-51, 2006-32 I.R.B.222
Notices:
2006-56, 2006-28 I.R.B.58
2006-57, 2006-27 I.R.B.13
2006-58, 2006-28 I.R.B.59
2006-59, 2006-28 I.R.B.60
2006-60, 2006-29 I.R.B.82
2006-61, 2006-29 I.R.B.85
2006-62, 2006-29 I.R.B.86
2006-63, 2006-29 I.R.B.87
2006-64, 2006-29 I.R.B.88
2006-65, 2006-31 I.R.B.102
2006-66, 2006-30 I.R.B.99
2006-68, 2006-31 I.R.B.105
2006-69, 2006-31 I.R.B.107
Proposed Regulations:
REG-135866-02, 2006-27 I.R.B.34
REG-109512-05, 2006-30 I.R.B.100
REG-112994-06, 2006-27 I.R.B.47
REG-118775-06, 2006-28 I.R.B.73
REG-118897-06, 2006-31 I.R.B.120
Revenue Procedures:
2006-29, 2006-27 I.R.B.13
2006-30, 2006-31 I.R.B.110
2006-31, 2006-27 I.R.B.32
2006-32, 2006-28 I.R.B.61
2006-33, 2006-32 I.R.B.140
Revenue Rulings:
2006-35, 2006-28 I.R.B.50
2006-37, 2006-30 I.R.B.91
2006-38, 2006-29 I.R.B.80
2006-39, 2006-32 I.R.B.137
2006-40, 2006-32 I.R.B.136
Treasury Decisions:
9265, 2006-27 I.R.B.1
9266, 2006-28 I.R.B.52
9268, 2006-30 I.R.B.94
9269, 2006-30 I.R.B.92
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2006–1 through 2006–26 is in Internal Revenue Bulletin
2006–26, dated June 26, 2006.
August 7, 2006ii2006–32 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2006–27 through 2006–32
Announcements:
2005-59
Updated and superseded by
Ann. 2006-45, 2006-31 I.R.B.121
Notices:
2006-20
Supplemented and modified by
Notice 2006-56, 2006-28 I.R.B.58
Proposed Regulations:
REG-134317-05
Corrected by
Ann. 2006-47, 2006-28 I.R.B.78
Revenue Procedures:
2005-41
Superseded by
Rev. Proc. 2006-29, 2006-27 I.R.B.13
2005-49
Superseded by
Rev. Proc. 2006-33, 2006-32 I.R.B.140
Revenue Rulings:
2003-43
Amplified by
Notice 2006-69, 2006-31 I.R.B.107
Treasury Decisions:
9254
Corrected by
Ann. 2006-44, 2006-27 I.R.B.49
9258
Corrected by
Ann. 2006-46, 2006-28 I.R.B.76
9264
Corrected by
Ann. 2006-46, 2006-28 I.R.B.76
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2006–1 through 2006–26 is in Internal Revenue Bulletin 2006–26, dated June 26, 2006.
2006–32 I.R.B.iiiAugust 7, 2006

August 7, 20062006–32 I.R.B.

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