Internal Revenue Bulletin 2001-21 (PDF rendition): IRS Revenue Procedures

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INCOME TAX
Ct. D. 2069, page 1191.
Pass-thru of items to shareholders. The Supreme Court
has concluded that excluded discharge of indebtedness is an
“item of income” and is therefore subject to pass-through to
shareholders under section 1366 of the Code. Gitlitz et al.
v. Commissioner of Internal Revenue.
EXEMPT ORGANIZATIONS
Announcement 2001–60, page 1287.
A list is given of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Rev. Proc. 2001–32, page 1197.
Magnetic media; electronic filing; 2001 form specifi-
cations. Specifications are set forth for the magnetic or
electronic filing of 2001 Forms 1098, 1099, 5498, and
W-2G. Rev. Proc. 2000–25 superseded.
Announcement 2001–54, page 1284.
The Service announces that an updated edition of Publication
538, Accounting Periods and Methods(revised April 2001),
is now available.
Announcement 2001–55, page 1284.
This document contains corrections to final regulations (T.D.
8881, 2000–23 I.R.B. 1158) relating to withholding of tax
on certain U.S. source income paid to foreign persons and
related requirements governing the collection, deposit,
refunds, and credits of withheld amounts under sections
1461 through 1463 of the Code.
Announcement 2001–56, page 1286.
This document contains corrections to final regulations (T.D.
8929, 2001–10 I.R.B. 756) providing guidance on methods
of accounting for long-term contracts.
Internal Revenue
bbuulllleettiinn
Bulletin No. 2001–21
May 21, 2001
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page ii.

May 21, 20012001–21 I.R.B.
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Section 1366.—Pass-Thru of
Items to Shareholders
Ct. D. 2069
SUPREME COURT OF THE UNITED
STATES
No. 99–1295
GITLITZ ET AL. v. COMMISSIONER
OF INTERNAL REVENUE
CERTIORARI TO THE UNITED
STATES COURT OF APPEALS FOR
THE TENTH CIRCUIT
January 9, 2001
Syllabus
Shareholders of a corporation taxed
under Subchapter S of the Internal Revenue
Code may elect a “pass-through” taxation
system, under which the corporation’s prof-
its pass through directly to its shareholders
on a pro ratabasis and are reported on the
shareholders’ individual tax returns. 26
U.S.C. section 1366(a)(1)(A). To prevent
double taxation of distributed income,
shareholders may increase their corporate
bases by certain items of income. Section
1367(a)(1)(A). Corporate losses and deduc-
tions are passed through in a similar manner,
section 1366(a)(1)(A), and the shareholders’
bases in the S corporation’s stock and debt
are decreased accordingly, sections
1367(a)(2)(B), 1367(b)(2)(A). However, to
the extent that such losses and deductions
exceed a shareholder’s basis in the S corpo-
ration’s stock and debt, the excess is “sus-
pended” until that basis becomes large
enough to permit the deduction. Sections
1366(d)(1)–(2). In 1991, an insolvent S cor-
poration in which petitioners David Gitlitz
and Philip Winn were shareholders exclud-
ed its entire discharge of indebtedness
amount from gross income. On their tax
returns, petitioners used their pro ratashare
of the discharge amount to increase their
bases in the corporation’s stock on the theo-
ry that it was an “item of income” subject to
pass-through. They used their increased
bases to deduct corporate losses and deduc-
tions, including suspended ones from previ-
ous years. With the upward basis adjust-
ments, they were each able to deduct the full
amount of their pro ratashare of the corpo-
ration’s losses. The Commissioner deter-
mined that they could not use the corpora-
tion’s discharge of indebtedness to increase
their bases in the stock, and denied their loss
deductions. The Tax Court ultimately
agreed. In affirming, the Tenth Circuit
assumed that excluded discharge of indebt-
edness is an item of income subject to pass-
through, but held that the discharge amount
first had to be used to reduce certain tax
attributes of the S corporation under section
108(b), and that only the leftover amount
could be used to increase basis. Because the
tax attribute to be reduced here (the corpo-
ration’s net operating loss) equaled the dis-
charged debt amount, that entire amount
was absorbed by the reduction at the corpo-
rate level, and nothing remained to be
passed through to the shareholders.
Held:
1. The statute’s plain language establishes
that excluded discharged debt is an “item of
income,” which passes through to share-
holders and increases their bases in an S cor-
poration’s stock. Section 61(a)(12) states
that discharge of indebtedness is included in
gross income. And section 108(a) provides
only that the discharge ceases to be included
in gross income when the S corporation is
insolvent, not that it ceases to be an item of
income, as the Commissioner contends. Not
all items of income are included in gross
income, see section 1366(a)(1), so an item’s
mere exclusion from gross income does not
imply that the amount ceases to be an item
of income. Moreover, sections 101 through
136 employ the same construction to
exclude various items from gross income,
but not even the Commissioner encourages
a reading that would exempt all such items
from pass-through. Instead, the
Commissioner asserts that discharge of
indebtedness is unique because it requires
no economic outlay on the taxpayer’s part,
but can identify no statutory language that
makes this distinction relevant. On the con-
trary, the statute makes clear that section
108(a)’s exclusion does not alter the charac-
ter of discharge of indebtedness as an item
of income. Specifically, Sec. 108(e) pre-
sumes that such discharge is always
“income,” and that the only question for
Sec. 108 purposes is whether it is includible
in gross income. The Commissioner’s con-
tentions that, notwithstanding the statute’s
plain language, excluded discharge of
indebtedness is not income and, specifically,
that it is not “tax-exempt income” under
Sec. 1366(a)(1)(A), do not alter the conclu-
sion reached here. Pp. 5-9.
2. Pass-through is performed before the
reduction of an S corporation’s tax attribut-
es under section 108(b). The sequencing
question presented here is important. If
attribute reduction is performed before the
discharge of indebtedness is passed
through to the shareholders, the sharehold-
ers’ losses that exceed basis are treated as
the corporation’s net operating loss, and
are then reduced by the amount of the dis-
charged debt; in this case, no suspended
losses would remain that would permit
petitioners to take deductions. However, if
it is performed afterthe discharged debt
income is passed through, then the share-
holders would be able to deduct their loss-
es (up to the amount of the increase in basis
caused by the discharged debt). Any sus-
pended losses remaining then will be treat-
ed as the S corporation’s net operating loss,
and reduced by the discharged debt
amount. Section 108(b)(4)(A) expressly
addresses the sequencing question, direct-
ing that the attribute reductions “shall be
made afterthe determination of the tax
imposed. . . for the taxable year of the dis-
charge.” (Emphases added.) In order to
determine the “tax imposed,” a sharehold-
er must adjust his basis in S corporation
stock and pass through all items of income
and loss. Consequently the attribute reduc-
tion must be made after the basis adjust-
ment and pass-through. Petitioners must
pass through the discharged debt, increase
corporate bases, and then deduct their loss-
es, all before any attribute reduction could
occur. Because their basis increase is equal
to their losses, they have no suspended
losses remaining, and thus have no net
operating losses to reduce. The primary
arguments made in Courts of Appeals
against this reading of the sequencing pro-
vision are rejected. Pp. 9-13.
182 F. 3d 1143 reversed.
THOMAS, J., delivered the opinion of
the Court, in which REHNQUIST, C.J.,
and STEVENS, O’CONNOR, SCALIA,
KENNEDY, SOUTER, and GINSBURG,
JJ., joined. BREYER, J., filed a dissent-
ing opinion.
2001–21 I.R.B.1191May 21, 2001
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

SUPREME COURT OF THE UNITED
STATES
No. 99–1295
DAVID A. GITLITZ, ET UX., ET AL.,
PETITIONERS v. COMMISSIONER OF
INTERNAL REVENUE
ON WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF
APPEALS FOR THE TENTH CIRCUIT
[January 9, 2001]
JUSTICE THOMAS delivered the opinion
of the Court.
The Commissioner of Internal Revenue
assessed tax deficiencies against petitioners
David and Louise Gitlitz and Philip and
Eleanor Winn because they used nontaxed
discharge of indebtedness to increase their
bases in S corporation stock and to deduct
suspended losses. In this case, we must
answer two questions. First, we must decide
whether the Internal Revenue Code (Code)
permits taxpayers to increase bases in their
S corporation stock by the amount of an S
corporation’s discharge of indebtedness
excluded from gross income. And second,
if the Code permits such an increase, we
must decide whether the increase occurs
before or after taxpayers are required to
reduce the S corporation’s tax attributes.
I
David Gitlitz and Philip Winn
1
were
shareholders of P. D. W. & A., Inc., a corpo-
ration that had elected to be taxed under sub-
chapter S of the Code, 26 U.S.C. Sec. 1361-
1379 (1994 ed. and Supp. III). Subchapter S
allows shareholders of qualified corporations
to elect a “pass-through” taxation system
under which income is subjected to only one
level of taxation. See Bufferd v.
Commissioner, 506 U. S. 523, 525 (1993).
The corporation’s profits pass through
directly to its shareholders on a pro rata
basis, and are reported on the shareholders’
individual tax returns. See section
1366(a)(1)(A).
2
To prevent double taxation
of income upon distribution from the corpo-
ration to the shareholders, section
1367(a)(1)(A) permits shareholders to
increase their corporate bases by items of
income identified in section 1366(a) (1994
ed. and Supp. III). Corporate losses and
deductions are passed through in a similar
manner, see section 1366(a)(1)(A), and the
shareholders’ bases in the S corporation’s
stock and debt are decreased accordingly, see
sections 1367(a)(2)(B), 1367(b)(2)(A).
However, a shareholder cannot take corpo-
rate losses and deductions into account on
his personal tax return to the extent that such
items exceed his basis in the stock and debt
of the S corporation. See section 1366(d)(1)
(Supp. III). If those items exceed the basis,
the excess is “suspended” until the share-
holder’s basis becomes large enough to per-
mit the deduction. See sections
1366(d)(1)(2) (1994 ed. and Supp. III).
In 1991, P. D. W. & A. realized
$2,021,296 of discharged indebtedness.
At the time, the corporation was insolvent
in the amount of $2,181,748. Because it
was insolvent even after the discharge of
indebtedness was added to its balance
sheet, P. D. W. & A. excluded the entire
discharge of indebtedness amount from
gross income under 26 U.S.C. section
108(a) and 108(d)(7)(A). On their tax
returns, Gitlitz and Winn increased their
bases in P. D. W. & A. stock by their pro
ratashare (50 percent each) of the amount
of the corporation’s discharge of indebt-
edness. Petitioners’ theory was that the
discharge of indebtedness was an “item of
income” subject to pass-through under
section 1366(a)(1)(A). They used their
increased bases to deduct on their person-
al tax returns corporate losses and deduc-
tions, including losses and deductions
from previous years that had been sus-
pended under section 1366(d). Gitlitz and
Winn each had losses (including suspend-
ed losses and operating losses) that totaled
$1,010,648. With the upward basis
adjustments of $1,010,648 each, Gitlitz
and Winn were each able to deduct the
full amount of their pro rata share of P. D.
W. & A.’s losses.
The Commissioner determined that
petitioners could not use P. D. W. & A.’s
discharge of indebtedness to increase their
bases in the stock, and denied petitioners’
loss deductions. Petitioners petitioned the
Tax Court to review the deficiency deter-
minations. The Tax Court, in its initial
opinion, granted relief to petitioners and
held that the discharge of indebtedness
was an “item of income,” and therefore
could support a basis increase. See Winn
v. Commissioner, 73 TCM 3167 (1997),
Par. 97,286 RIA Memo withdrawn and
reissued, 75 TCM 1840 (1998), Par.
98,071 RIA Memo TC. In light of the Tax
Court’s decision in Nelson v.
Commissioner, 110 T.C. 114 (1998),
aff’d, 182 F. 3d 1152 (CA10 1999),
3
how-
ever, the Tax Court granted the
Commissioner’s motion for reconsidera-
tion and held that shareholders may not
use an S corporation’s untaxed discharge
of indebtedness to increase their bases in
corporate stock. See Winn v.
Commissioner, 75 TCM 1840 (1998), Par.
98,071 RIA Memo TC.
The Court of Appeals affirmed. See
182 F. 3d 1143 (CA10 1999). It assumed
that excluded discharge of indebtedness is
an item of income subject to pass-through
to shareholders pursuant to section
1366(a)(1)(A), id.at 1148, 1151, n. 7, but
held that the discharge of indebtedness
amount first had to be used to reduce cer-
tain tax attributes of the S corporation
under section 108(b), and that only the
leftover amount could be used to increase
basis.
4
The Court of Appeals explained
that, because the tax attribute to be
reduced (in this case the corporation’s net
operating loss) was equal to the amount of
discharged debt, the entire amount of dis-
charged debt was absorbed by the reduc-
tion at the corporate level, and nothing
remained of the discharge of indebtedness
to be passed through to the shareholders
under section 1366(a)(1)(A). Id. at 1151.
Because Courts of Appeals have disagreed
on how to treat discharge of indebtedness
of an insolvent S corporation, compare
Gaudiano v. Commissioner, 216 F. 3d 524,
535 (CA6 2000) (holding that tax attribut-
May 21, 200111922001–21 I.R.B.
1
Each man filed a joint tax return with his wife.
2
Section 1366(a)(1) provides:
“In determining the tax under this chapter of a share-
holder for the shareholder’s taxable year in which
the taxable year of the S corporation ends . . . , there
shall be taken into account the shareholder’s pro
ratashare of the corporation’s —
“(A) items of income (including tax-exempt
income), loss, deduction, or credit the separate
treatment of which could affect the liability for tax
of any shareholder . . . .”
3
In Nelson, the Tax Court held that excluded discharge
of indebtedness does not pass through to an S corpora-
tion’s shareholders because section 108 is an exception
to normal S corporation pass-through rules.
Specifically, the court held that, because section
108(d)(7)(A) requires that “subsections (a) [and (b) of
section 108] shall be applied at the corporate level” in
the case of an S corporation, it precludes any pass-
through of the discharge of indebtedness to the share-
holderlevel. See Nelson, 110 T.C. at 121-124.
4
Section 108(b)(1) reads: “The amount excluded from
gross income under [section 108(a)(1)] shall be applied
to reduce the tax attributes of the taxpayer. . . .”

es are reduced before excluded discharged
debt income is passed through to share-
holders), cert. pending, No. 00–459, Witzel
v. Commissioner, 200 F. 3d 496, 498 (CA7
2000) (same), cert. pending, No. 99–1693,
and 182 F. 3d at 1150 (case below), with
United States v. Farley, 202 F. 3d 198, 206
(CA3 2000) (holding that excluded dis-
charged debt income is passed through to
shareholders before tax attributes are
reduced), cert. pending, No. 99–1675; see
also Pugh v. Commissioner, 213 F. 3d
1324, 1330 (CA11 2000) (holding that
excluded discharged debt income is sub-
ject to pass-through and can increase
basis), cert. pending, No. 00–242, we
granted certiorari. 529 U.S. 1097 (2000).
II
Before we can reach the issue addressed
by the Court of Appeals — whether the
increase in the taxpayers’ corporate bases
occurs before or after the taxpayers are
required to reduce the S corporation’s tax
attributes — we must address the argument
raised by the Commissioner.
5
The
Commissioner argues that the discharge of
indebtedness of an insolvent S corporation
is not an “item of income,” and thus never
passes through to shareholders. Under a
plain reading of the statute, we reject this
argument and conclude that excluded dis-
charged debt is indeed an “item of income”
which passes through to the shareholders
and increases their bases in the stock of the
S corporation.
Section 61(a)(12) states that discharge
of indebtedness generally is included in
gross income. Section 108(a)(1) provides
an express exception to this general rule:
“Gross income does not include any
amount which (but for this subsec-
tion) would be includible in gross in-
come by reason of the discharge . . .
of indebtedness of the taxpayer if –
* * * * *
“(B) the discharge occurs when the
taxpayer is insolvent.”
The Commissioner contends that this
exclusion from gross income alters the
character of the discharge of indebtedness
so that it is no longer an “item of
income.” However, the text and structure
of the statute do not support the
Commissioner’s theory. Section 108(a)
simply does not say that discharge of
indebtedness ceases to be an item of
incomewhen the S corporation is insol-
vent. Instead, it provides only that dis-
charge of indebtedness ceases to be
included in gross income.Not all items
of income are included in gross income,
see section 1366(a)(1) (providing that
“items of income,” including “tax-
exempt” income, are passed through to
shareholders), so mere exclusion of an
amount from gross income does not
imply that the amount ceases to be an
item of income. Moreover, sections 101
through 136 employ the same construc-
tion to exclude various items from gross
income: “Gross income does not include
. . . .” The consequence of reading this
language in the manner suggested by the
Commissioner would be to exempt all
items in these sections from pass-through
under section 1366. However, not even
the Commissioner encourages us to reach
this sweeping conclusion. Instead, the
Commissioner asserts that discharge of
indebtedness is unique among the types
of items excluded from gross income
because no economic outlay is required
of the taxpayer receiving discharge of
indebtedness. But the Commissioner is
unable to identify language in the statute
that makes this distinction relevant, and
we certainly find none.
On the contrary, the statute makes clear
that section 108(a)’s exclusion does not
alter the character of discharge of indebt-
edness as an item of income. Specifically,
section 108(e)(1) reads:
“Except as otherwise provided in this
section, there shall be no insolvency
exception from the general rule that
gross income includes income from
the discharge of indebtedness.”
This provision presumes that discharge of
indebtedness is always “income,” and that
the only question for purposes of section
108 is whether it is includible in gross
income. If discharge of indebtedness of
insolvent entities were not actually
“income,” there would be no need to pro-
vide an exception to its inclusion in gross
income; quite simply, if discharge of
indebtedness of an insolvent entity were
not “income,” it would necessarily not be
included in gross income.
Notwithstanding the plain language of
the statute, the Commissioner argues, gen-
erally, that excluded discharge of indebted-
ness is not income and, specifically, that it
is not “tax-exempt income” under section
1366(a)(1)(A).
6
First, the Commissioner
argues that section 108 merely codified the
“judicial insolvency exception,” and that,
under this exception, discharge of indebted-
ness of an insolvent taxpayer was not con-
sidered income. The insolvency exception
was a rule that the discharge of indebted-
ness of an insolvent taxpayer was not tax-
able income. See, e.g., Dallas Transfer &
Terminal Warehouse Co. v. Commissioner,
70 F. 2d 95 (CA5 1934); Astoria Marine
Construction Co. v. Commissioner, 12 T.C.
798 (1949). But the exception has since
been limited by section 108(e). Section
108(e) precludes us from relying on any
understanding of the judicial insolvency
2001–21 I.R.B.1193May 21, 2001
5
The Commissioner has altered his arguments
throughout the course of this litigation. According
to the Tax Court, during the first iteration of this
case, the Commissioner made several arguments
but then settled on a “final” one — that the dis-
charge of indebtedness of the insolvent S corpora-
tion was not an “item of income,” see 73 TCM
3167 (1997), Par. 97,286 RIA Memo TC. In the
Court of Appeals, the Commissioner argued
instead that, because any pass-through of excluded
discharge of indebtedness to petitioners took place
after any reduction of tax attributes and by then the
income would have been fully absorbed by the tax
attributes, no discharged debt remained to flow
through to petitioners. The Commissioner relegat-
ed to a footnote his argument that discharge of
indebtedness is not an “item of income.” See Brief
for Appellee in Nos. 98-9009 and 98-9010 (CA10),
p. 33, n. 14.
6
The Commissioner also contends, as does the dis-
sent, that because section 108(d)(7)(A) mandates that
the discharged debt amount be determined and
applied to reduce tax attributes “at the corporate
level,” rather than at the shareholder level, the dis-
charged debt, even if it is some type of income, sim-
ply cannot pass through to shareholders. In other
words, the Commissioner contends that section
108(d)(7)(A) excepts excluded discharged debt from
the general pass-through provisions for S corpora-
tions. However, section 108(d)(7)(A) merely directs
that the exclusion from gross income and the tax
attribute reduction be made at the corporate level.
Section 108(d)(7)(A) does not state or imply that the
debt discharge provisions shall apply only “at the cor-
porate level.” The very purpose of Subchapter S is to
tax at the shareholder level, not the corporate level.
Income is determined at the S corporation level, see
section 1363(b) not in order to tax the corporation, see
section 1363(a) (exempting an S corporation from
income tax), but solely to pass through to the S cor-
poration’s shareholders the corporation’s income.
Thus, the controlling provision states that, in deter-
mining a shareholder’s liability, “there shall be taken
into account the shareholder’s pro ratashare of the
corporation’s . . . items of income (including tax-
exempt income). . . .” Section 1366(a)(1). Nothing in
section 108(d)(7)(A) suspends the operation of these
ordinary pass-through rules.

May 21, 200111942001–21 I.R.B.
exception that was not codified in section
108. And, as explained above, the language
and logic of section 108 clearly establish
that, although discharge of indebtedness of
an insolvent taxpayer is not included in
gross income, it is nevertheless income.
The Commissioner also relies on a
Treasury Regulation to support his theory
that no income is realized from the dis-
charge of the debt of an insolvent:
“Proceedings under Bankruptcy Act.
“(1) Income is not realized by a
taxpayer by virtue of the discharge,
under section 14 of the Bankruptcy
Act (11 U.S.C. 32), of his indebted-
ness as the result of an adjudication
in bankruptcy, or by virtue of an
agreement among his creditors not
consummated under any provision of
the Bankruptcy Act, if immediately
thereafter the taxpayer’s liabilities
exceed the value of his assets.” 26
CFR section 1.61–12(b) (2000).
Even if this regulation could be read
(countertextually) to apply outside the
bankruptcy context, it merely states that
“[i]ncome is not realized.” The regulation
says nothing about whether discharge of
indebtedness is income subject to pass-
through under section 1366.
Second, the Commissioner argues that
excluded discharge of indebtedness is not
“tax-exempt” income under section
1366(a)(1)(A), but rather “tax-deferred”
income. According to the Commissioner,
because the taxpayer is required to reduce
tax attributes that could have provided
future tax benefits, the taxpayer will pay
taxes on future income that otherwise
would have been absorbed by the forfeit-
ed tax attributes. Implicit in the
Commissioner’s labeling of such income
as “tax-deferred,” however, is the erro-
neous assumption that section
1366(a)(1)(A) does not include “tax-
deferred” income. Section 1366 applies
to “items of income.” This section
expressly includes “tax-exempt” income,
but this inclusion does not mean that the
statute must therefore exclude “tax-
deferred” income. The section is worded
broadly enough to include any item of
income, even tax-deferred income, that
“could affect the liability for tax of any
shareholder.” Section 1366(a)(1)(A).
Thus, none of the Commissioner’s con-
tentions alters our conclusion that dis-
charge of indebtedness of an insolvent S
corporation is an item of income for pur-
poses of section 1366(a)(1)(A).
III
Having concluded that excluded dis-
charge of indebtedness is an “item of
income” and is therefore subject to pass-
through to shareholders under section
1366, we must resolve the sequencing
question addressed by the Court of
Appeals — whether pass-through is per-
formed before or after the reduction of the
S corporation’s tax attributes under sec-
tion 108(b). Section 108(b)(1) provides
that “[t]he amount excluded from gross
income under [Section 108(a)] shall be
applied to reduce the tax attributes of the
taxpayer as provided [in this section].”
Section 108(b)(2) then lists the various
tax attributes to be reduced in the order of
reduction. The first tax attribute to be
reduced, and the one at issue in this case,
is the net operating loss. See section
108(b)(2)(A). Section 108(d)(7)(B) spec-
ifies that, for purposes of attribute reduc-
tion, the shareholders’ suspended losses
for the taxable year of discharge are to be
treated as the S corporation’s net operat-
ing loss. If tax attribute reduction is per-
formed beforethe discharge of indebted-
ness is passed through to the shareholders
(as the Court of Appeals held), the share-
holders’ losses that exceed basis are treat-
ed as the corporation’s net operating loss
and are then reduced by the amount of the
discharged debt. In this case, no suspend-
ed losses would remain that would permit
petitioners to take deductions.
7
If, how-
ever, attribute reduction is performed
after the discharged debt income is passed
through (as petitioners argue), then the
shareholders would be able to deduct their
losses (up to the amount of the increase in
basis caused by the discharged debt). Any
suspended losses remaining then will be
treated as the S corporation’s net operat-
ing loss and will be reduced by the
amount of the discharged debt. Therefore
the sequence of the steps of pass-through
and attribute reduction determines
whether petitioners here were deficient
when they increased their bases by the
discharged debt amount and deducted
their losses.
The sequencing question is expressly
addressed in the statute. Section
108(b)(4)(A) directs that the attribute
reductions “shall be made afterthe deter-
mination of the tax imposedby this chap-
ter for the taxable year of the discharge.”
(Emphases added.) See also section
1017(a) (applying the same sequencing
when section 108 attribute reduction
affects basis of corporate property). In
order to determine the “tax imposed,” an
S corporation shareholder must adjust his
basis in his corporate stock and pass
through all items of income and loss. See
sections 1366, 1367 (1994 ed. and Supp
III). Consequently, the attribute reduction
must be made afterthe basis adjustment
and pass-through. In the case of petition-
ers, they must pass through the discharged
debt, increase corporate bases, and then
deduct their losses, all before any attribute
reduction could occur. Because their
basis increase is equal to their losses, peti-
tioners have no suspended losses remain-
ing. They therefore, have no net operating
losses to reduce.
Although the Commissioner has now
abandoned the reasoning of the Court of
Appeals below,
8
we address the primary
7
Under this scenario, the shareholders’ losses would
be reduced by the discharge of indebtedness.
However, it is unclear precisely what would happen
to the discharge of indebtedness. The Court of
Appeals below stated that the discharged debt would
be “absorbed” by the reduction to the extent of the
net operating loss and that therefore only the excess
excluded discharged debt would remain to pass
through to the shareholders. 182 F. 3d at 1149. In
contrast, another Court of Appeals suggested, albeit
in dictum, that the full amount of the discharge
might still pass through to the shareholder and be
used to increase basis; the discharged debt amount
would reduce the net operating loss but would not be
absorbed by it. Witzel v. Commissioner, 200 F. 3d
496, 498 (CA7 2000). We need not resolve this
issue, because we conclude that the discharge of
indebtedness passes through before any attribute
reduction takes place.
8
The Commissioner has abandoned his argument
related to the sequencing issue before this Court. This
abandonment is particularly odd given that the
sequencing issue predominated in the
Commissioner’s argument to the Court of Appeals.
Notwithstanding the Commissioner’s attempt at oral
argument to distance himself from the reasoning of
the Court of Appeals on this issue—the
Commissioner represented to us that the Court of
Appeals developed its reading of the statute sua
sponte, Tr. of Oral Arg. 22-24, 27—it is apparent from
the Commissioner’s brief in the Court of Appeals that
the Commissioner suppliedthe very sequencing theo-
ry that the Court of Appeals adopted. Compare, e.g.,
Brief for Appellee in Nos. 98-9009 and 98-9010
(CA10), p. 28 (“First, the discharge of indebtedness
income that is excluded under Section 108(a) at

2001–21 I.R.B.1195May 21, 2001
arguments made in the Courts of Appeals
against petitioners’ reading of the
sequencing provision. First, one court has
expressed the concern that, if the dis-
charge of indebtedness is passed through
to the shareholder beforethe tax attributes
are reduced, then there can never be any
discharge of indebtedness remaining “at
[the] corporate level,” section
108(d)(7)(A), by which to reduce tax
attributes.
9
Gaudiano, 216 F. 3d at 533.
This concern presumes that tax attributes
can be reduced only if the discharge of
indebtedness itself remains at the corpo-
rate level. The statute, however, does not
impose this restriction. Section 108(b)(1)
requires only that the tax attributes be
reduced by “[t]he amountexcluded from
gross income,” (emphasis added), and that
amount is not altered by the mere pass-
through of the income to the shareholder.
Second, courts have discussed the poli-
cy concern that, if shareholders were per-
mitted to pass through the discharge of
indebtedness before reducing any tax
attributes, the shareholders would wrong-
ly experience a “double windfall”: They
would be exempted from paying taxes on
the full amount of the discharge of indebt-
edness, and they would be able to increase
basis and deduct their previously suspend-
ed losses. See, e.g., 182 F. 3d at
1147–1148. Because the Code’s plain text
permits the taxpayers here to receive these
benefits, we need not address this policy
concern.
10
* * * *
The judgment of the Court of Appeals,
accordingly, is reversed.
It is so ordered.
SUPREME COURT OF THE UNITED
STATES
No. 99-1295
DAVID A. GITLITZ,
ET UX., ET AL.,
PETITIONERS v. COMMISSIONER OF
INTERNAL REVENUE
ON WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF
APPEALS FOR THE TENTH CIRCUIT
[January 9, 2001]
JUSTICE BREYER, dissenting.
I agree with the majority’s reasoning
with the exception of footnotes 6 and 10.
The basic statutory provision before us is
26 U.S.C. section 108 — the provision
that excludes from the “gross income” of
any “insolvent” taxpayer, income that
cancellation of a debt (COD) would oth-
erwise generate. As the majority
acknowledges, however, anteat 7, n. 6,
section 108 contains a subsection that sets
forth a special exception. The exception,
entitled “Special rules for S corporation,”
says:
“(A) Certain provisions to be applied
at corporate level.
“In the case of an S corporation, sub-
sections (a), (b), (c), and (g) shall be
applied at the corporate level.” 26
U.S.C. section 108(d)(7)(A).
If one reads this language literally as
exclusive, both the COD exclusion
(Section 108(a)) and the tax attribute
reduction (Section 108(b)) would apply
only “at the corporate level.” Hence the
COD income would not flow through to S
corporation shareholders. Consequently,
the insolvent S corporation’s COD
income would not increase the sharehold-
er’s basis, and would not help the share-
holder take otherwise unavailable deduc-
tions for suspended losses.
The Commissioner argues that we
should read the language in this way as
preventing the flow-through of the corpo-
ration’s COD income. Brief for United
States 27. He points to the language of a
House Committee, which apparently
thought, when Congress passed an
amendment to section 108, that the
Commissioner’s reading is correct. H. R.
Rep. No. 103–111, pp. 624–625 (1993)
(“[T]he exclusion and basis reduction are
both made at the S corporation level (sec-
tion 108(d)(7)). The shareholders’ basis
in their stock is not adjusted by the
amount of debt discharge income that is
excluded at the corporate level”). At least
one commentator believes the same. See
Loebl, Does the Excluded COD Income of
an Insolvent S Corporation Increase the
Basis of the Shareholders’ Stock?, 52
U. Fla. L. Rev. 957, 981–988 (2000). But
see Lockhart & Duffy, Tax Court Rules in
Nelsonthat S Corporation Excluded COD
Income Does Not Increase Shareholder
Stock Basis, 25 Wm. Mitchell L. Rev. 287
(1999).
The Commissioner finds support for his
literal, exclusive reading of section
108(d)(7)(A)’s language in the fact that
his reading would close a significant tax
loophole. That loophole — preserved by
the majority — would grant a solvent
shareholder of an insolvent S corporation
a tax benefit in the form of permission to
10
The benefit at issue in this case arises in part
because section 108(d)(7)(A) permits the exclusion
of discharge of indebtedness income from gross
income for an insolvent S corporation even when the
S corporation shareholder is personally solvent. We
are aware of no other instance in which section 108
directly benefits a solvent entity. However, the
result is required by statute. Between 1982 and
1984, section 108 provided that the exclusion from
gross income and the reduction in tax attributes
occurred at the shareholder level. See Subchapter S
Revision Act of 1982, Pub. L. No. 97-354, section
3(e), 96 Stat. 1689. This provision, which paralleled
the current taxation of partnerships at the partner
level, see 26 U.S.C. section 108(d)(6), prevented
solvent shareholders from benefiting as a result of
their S corporation’s insolvency. In 1984, however,
Congress amended the Code to provide that section
108 be applied “at the corporate level.” Tax Reform
Act of 1984, Pub. L. No. 98-369, section 721(b), 98
Stat. 966. It is as a direct result of this amendment
that the solvent petitioners in this case are able to
benefit from section 108’s exclusion.
the corporate level is temporarily set aside and has no
tax consequences .... Second, PDW & A computes its
tax attributes, i.e., taxpayers’ suspended losses. Third,
the excluded discharge of indebtedness income is
applied against and eliminates the suspended losses.
Because the excluded income is applied against —
and offset by — the suspended losses, no item of
income flows through to taxpayers under Section
1366(a), and no upward basis adjustment is made
under Section 1367(a)” (citations omitted)), with, e.g.,
182 F. 3d at 1151 (“PDW & A first must compute its
discharge of indebtedness income and set this figure
aside temporarily. The corporation then must calcu-
late its net operating loss tax attribute. . . . Finally, the
corporation must apply the excluded discharged debt
to reduce its tax attributes. In this case, the net oper-
ating loss tax attribute fully absorbs the corporation’s
excluded discharge of indebtedness income. Thus,
there are no items of income to pass through to Gitlitz
and Winn”).
9
Similar to this argument is the contention that, in
cases such as this one in which the shareholders’ sus-
pended losses are fully deducted before attribute
reduction could take place, no net operating loss
remains and no attribute reduction can occur, thus ren-
dering section 108(b) inoperative. However, there will
be other cases in which section 108(b) will be inoper-
ative. In particular, if a taxpayer has no tax attributes
at all, there will be no reduction. Certainly the statute
does not condition the exclusion under section 108(a)
on the ability of the taxpayer to reduce attributes under
section 108(b). Likewise, in the case of shareholders
similarly situated to petitioners in this case, there is
also the possibility that other attributes, see sections
108(b)(2)(B)-(G), could be reduced.

May 21, 200111962001–21 I.R.B.
take an otherwise unavailable deduction,
thereby sheltering other, unrelated income
from tax. See Witzel v. Commissioner,
200 F. 3d 496, 497 (CA7 2000) (Posner,
C. J.) (“It is hard to understand the ratio-
nale for using a tax exemption to avoid
taxation not only on the income covered
by the exemption but also on unrelated
income that is not tax exempt”).
Moreover, the benefit often would
increase in value as the amount of COD
income increases, a result inconsistent
with congressional intent to impose a
“price” (attribute reduction), see Lipton,
Different Courts Adopt Different
Approaches to the Impact of COD Income
on S Corporations, 92 J. Tax. 207 (2000),
on excluded COD. Further, this deduc-
tion-related tax benefit would have very
different tax consequences for identically
situated taxpayers, depending only upon
whether a single debt can be split into seg-
ments, each of which is canceled in a dif-
ferent year. For example, under the
majority’s interpretation, a $1 million
debt canceled in one year would permit
Taxpayer A to deduct $1 million of sus-
pended losses in that year, thereby permit-
ting A to shelter $1 million of unrelated
income in that year. But because section
108 reduces tax attributes after the first
year, five annual cancellations of
$200,000 will not create a $1 million shel-
ter. Timing is all-important.
The majority acknowledges some of
these policy concerns and confesses igno-
rance of any “other instance in which sec-
tion 108 directly benefits a solvent entity,”
but claims that its reading is mandated by
the plain text of section 108(d)(7)(A), and
therefore that the Court may disregard the
policy consequences. Ante at 13 and
n. 10. It is difficult, however, to see why
we should interpret that language as treat-
ing different solvent shareholders differ-
ently, given that the words “at the corporate
level” were added “[i]n order to treat all
shareholders in the same manner.” H. R.
Rep. No. 98–432, pt. 2, p. 1640 (1984).
And it is more difficult to see why, given
the fact that the “plain language” admits
either interpretation, we should ignore the
policy consequences. See Commissioner v.
Gillette Motor Transport, Inc., 364 U. S.
130, 134–135 (1960) (abandoning literal
meaning of 26 U. S .C. section 1221 (1958
ed.) for a reading more consistent with con-
gressional intent). Accord, Commissioner
v. P. G. Lake, Inc., 356 U. S. 260, 264–267
(1958); Corn Products Refining Co. v.
Commissioner, 350 U. S. 46, 51–52
(1955); Hort v. Commissioner, 313 U. S.
28, 30–31 (1941).
The arguments from plain text on both
sides here produce ambiguity, not certain-
ty. And other things being equal, we
should read ambiguous statutes as clos-
ing, not maintaining, tax loopholes. Such
is an appropriate understanding of
Congress’ likely intent. Here, other things
are equal, for, as far as I am aware, the
Commissioner’s literal interpretation of
section 108(d)(7)(A) as exclusive would
neither cause any tax-related harm nor
create any statutory anomaly. Petitioners
argue that it would create a linguistic
inconsistency, for they point to a Treasury
Regulation that says that the
Commissioner will apply hobby loss lim-
itations under section 183 “at the corpo-
rate level in determining” allowable
deductions, while, presumably, nonethe-
less permitting the deduction so limited to
flow through to the shareholder. Treas.
Reg. section 1.183–1(f), 26 CFR section
1.183–1(f) (2000). But we are concerned
here with the “application” of an exclu-
sion, not with “determining” the amount
of a deduction. Regardless, the regula-
tion’s use of the words “at the corporate
level,” like the three other appearances of
the formulation “applied” or “deter-
mined” “at the corporate level” in the
Code, occur in contexts that are so very
different from this one that nothing we say
here need affect their interpretation. See
26 U. S. C. section 49(a)(1)(E)(ii)(I)
(determining whether financing is
recourse financing); 26 U. S. C. section
264(f)(5)(B) (1994 ed., Supp. IV) (deter-
mining how to allocate interest expense to
portions of insurance policies); 26
U. S. C. section. 302(e)(1)(A) (determin-
ing whether a stock distribution shall be
treated as a partial liquidation). If there
are other arguments militating in favor of
the majority’s interpretation, I have not
found them.
The majority, in footnote 6, says that
the words “at the corporate level” in sec-
tion 108(d)(7)(A) apply to the exclusion
of COD income from corporate income
and to “tax attribute reduction” but do not
“suspen[d] the operation of . . . ordinary
pass-through rules” because section
108(d)(7)(A) “does not state or imply that
the debt discharge provisions shall apply
only‘at the corporate level.’” It is the
majority, however, that should explain
why it reads the provision as nonexclusive
(where, as here, its interpretation of the
Code results in the “practical equivalent
of [a] double deduction,” Charles Ilfeld
Co. v. Hernandez, 292 U. S. 62, 68
(1934)). See United States v. Skelly Oil
Co., 394 U. S. 678, 684 (1969) (requiring
“clear declaration of intent by Congress”
in such circumstances). I do not contend
that section 108(d)(7)(A) mustbe read as
having exclusive effect, only that, given
the alternative, this interpretation pro-
vides the best reading of section 108 as a
whole. And I can find no “clear declara-
tion of intent by Congress” to support the
majority’s contrary conclusion regarding
section 108(d)(7)(A)’s effect. It is that
conclusion from which, for the reasons
stated, I respectfully dissent.

2001–21 I.R.B.1197May 21, 2001
Rev. Proc. 2001–32
NOTE: Following is a list of related instructions and forms for filing Information Returns Magnetically/Electronically pro-
vided in the back of this publication:
•General Instructions for Forms 1099, 1098, 5498, and W-2G
•Specific Instructions for Individual Information Returns
•Form 4419 - Application for Filing Information Returns Magnetically/Electronically
•Form 4804 - Transmittal of Information Returns Reported Magnetically
•Form 8508 - Request for Waiver From Filing Information Returns on Magnetic Media (Forms W-2, W-2G, 1042-S, 1098,
1099, 5498, and 8027)
•Form 8809 - Request for Extension of Time To File Information Returns (Forms W-2, W-2G, 1042-S, 1098, 1099, 5498,
and 8027)
•Notice 210 - Preparation Instructions for Media Labels
The Internal Revenue Service, Martinsburg Computing Center encourages filers to make copies of the blank forms in the back of
this publication for future use. These forms can also be obtained by calling 1-800-829-3676 or via the Internet at www.irs.gov.
Use this Revenue Procedure to prepare Tax Year 2001 and prior year information returns for submission to Internal Revenue
Service (IRS) using any of the following:
- Magnetic Tape
- Tape Cartridge
- 8mm, 4mm, and Quarter
Inch Cartridges (QIC)
- 3 1/2-Inch Diskette
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Caution to filers:
Please read this publication carefully. Persons or businesses required to file information returns magnetically or electroni-
cally may be subject to penalties for failure to file or include correct information if they do not follow the instructions in this
Revenue Procedure.
IMPORTANTNOTES:
IRS/MCC is no longer returning problem media in need of replacement. See Part A,
Sec. 2, .03, c, for details.
Beginning in calendar year 2003 for Tax Year 2002, 9 track magnetic tape will no
longer be an acceptable type of media for submitting Information Returns to
IRS/MCC. See Part A, Sec. 2, .02, a. (4) and Part B.
Table of Contents
Part A. General
Section 1. Purpose
Section 2. Nature of Changes - Current Year (Tax Year2001)
Section 3. Where to File and How to Contact the IRS, Martinsburg Computing Center
Section 4. Filing Requirements
Section 5. Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media
Section 6. Vendor List
Section 7. Form 4419, Application for Filing Information Returns Magnetically/Electronically
Section 8. Test Files
Section 9. Filing of Information Returns Magnetically and Retention Requirements
Part III. Administrative, Procedural, and Miscellanous

May 21, 200111982001–21 I.R.B.
Section 10. Due Dates
Section 11. Extensions of Time
Section 12. Processing of Information Returns Magnetically
Section 13. Corrected Returns
Section 14. Taxpayer Identification Number (TIN)
Section 15. Effect on Paper Returns and Statements to Recipients
Section 16. Combined Federal/State Filing Program
Section 17. Definition of Terms
Section 18. State Abbreviations
Section 19. Major Problems Encountered
Part B. Magnetic Media Specifications
Section 1. General
Section 2. Tape Specifications
Section 3. Tape Cartridge Specifications
Section 4. 8mm, 4mm, and Quarter-Inch Cartridge Specifications
Section 5. 3 1/2-Inch Diskette Specifications
Section 6. Transmitter “T” Record - General Field Descriptions
Section 7. Transmitter “T” Record - Record Layout
Section 8. Payer “A” Record - General Field Descriptions
Section 9. Payer “A” Record - Record Layout
Section 10. Payee “B” Record - General Field Descriptions and Record Layouts
(l)Payee “B” Record - Record Layout Positions 544-750 for Forms 1098
(2)Payee “B” Record - Record Layout Positions 544-750 for Form 1098-E
(3)Payee “B” Record - Record Layout Positions 544-750 for Form 1098-T
(4)Payee “B” Record - Record Layout Positions 544-750 for Form 1099-A
(5) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-B
(6)Payee “B” Record - Record Layout Positions 544-750 for Form 1099-C
(7)Payee “B” Record - Record Layout Positions 544-750 for Form 1099-DIV
(8)Payee “B” Record - Record Layout Positions 544-750 for Form 1099-G
(9)Payee “B” Record - Record Layout Positions 544-750 for Form 1099-INT
(10) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-LTC
(11) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MISC
(12) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MSA
(13) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-OID
(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-PATR
(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R
(16) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-S
(17) Payee “B” Record - Record Layout Positions 544-750 for Form 5498
(18) Payee “B” Record - Record Layout Positions 544-750 for Form 5498-MSA
(19) Payee “B” Record - Record Layout Positions 544-750 for Form W-2G
Section 11. End of Payer “C” Record - General Field Descriptions and Record Layout
Section 12. State Totals “K” Record - General Field Descriptions and Record Layout
Section 13. End of Transmission “F” Record - General Field Descriptions and Record Layout
Part C. Electronic Filing Specifications
Section 1. Background
Section 2. Advantages of Filing Electronically
Section 3. General
Section 4. Electronic Filing Approval Procedure
Section 5. Test Files
Section 6. Electronic Submissions
Section 7. PIN Requirements
Section 8. Electronic Filing Specifications

2001–21 I.R.B.1199May 21, 2001
Section 9. Dial-up Network/Browser Specifications (Web Interface)
Section 10. Communication Software Specifications (Text Interface)
Section 11. Modem Configuration
Section 12. Common Problems Associated with Electronic Filing
Part D. Magnetic/Electronic Specifications for Extensions of Time
Section 1. General
Section 2. Magnetic Tape, Tape Cartridge, 8mm, 4mm, and QIC (Quarter Inch Cartridge), 3 1/2-inch Diskette, and Electronic
Specifications
Section 3. Record Layout – Extension of Time
Part E. Miscellaneous Information
Section 1. Addresses for Martinsburg Computing Center
Section 2. Telephone Numbers for Contacting IRS/MCC

May 21, 200112002001–21 I.R.B.
Part A. General
Revenue Procedures are generally revised annually to reflect legislative and form changes. Comments concerning this Revenue
Procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Martinsburg Computing Center
Attn: Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
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 magnetically or electronically, using 1/2 -inch 9 track tape, IBM 3480, 3490, 3490E, 3590, 3590E, or AS400 compatible tape
cartridges (including 4mm, 8mm & QIC), or 3 1/2-inch diskettes or electronically through the IRS FIRE System. Beginning in cal-
endar year 2003 for tax year 2002, IRS/MCC will no longer process 1/2 -inch 9 track magnetic tape.This Revenue Procedure
must be used for the preparation of Tax Year 2001information returns and information returns for tax years prior to 2001that are
required to be filed. This Revenue Procedure must be used to prepare current and prior year information returns filed beginning
January 1, 2002, and received by IRS/MCC or postmarked by December 15, 2002.Specifications for filing the following forms
are contained in this Revenue Procedure.
(a)Form 1098, Mortgage Interest Statement
(b)Form 1098-E, Student Loan Interest Statement
(c)Form 1098-T, Tuition Payments Statement
(d)Form 1099-A, Acquisition or Abandonment of Secured Property
(e)Form 1099-B, Proceeds From Broker and Barter Exchange Transactions
(f)Form 1099-C, Cancellation of Debt
(g)Form 1099-DIV, Dividends and Distributions
(h)Form 1099-G, Certain Government and Qualified State Tuition Program Payments
(i)Form 1099-INT, Interest Income
(j)Form 1099-LTC, Long-Term Care and Accelerated Death Benefits
(k)Form 1099-MISC, Miscellaneous Income
(l)Form 1099-MSA, Distributions From an MSA or Medicare+Choice MSA
(m)Form 1099-OID, Original Issue Discount
(n)Form 1099-PATR, Taxable Distributions Received From Cooperatives
(o)Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
(p)Form 1099-S, Proceeds From Real Estate Transactions
(q)Form 5498, IRA Contribution Information
(r)Form 5498-MSA, MSA or Medicare+Choice MSA Information
(s)Form W-2G, Certain Gambling Winnings
.02Specifications for filing Forms W-2, Wage and Tax Statements, magnetically/electronically are available from the Social
Security Administration (SSA) only. Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Service
Liaison Officer for their area.
.03IRS/MCC does notprocess Forms W-2. Paper and/ormagnetic media for Forms W-2 must be sent to SSA. IRS/MCC does,
however, process waiver requests (Form 8508) and extension of time to file requests (Form 8809) for Forms W-2 and requests for
an extension of time to provide the employee copies of Forms W-2.
.04Generally, the box numbers on the paper forms correspond with the amount codes used to file magnetically/electronically;
however, if discrepancies occur, the instructions in this Revenue Procedure govern.
.05This Revenue Procedure also provides the requirements and specifications for magnetic media or electronic filing under the
Combined Federal/State Filing Program.
.06The following Revenue Procedures and publications provide more detailed filing procedures for certain information returns:
(a)2001 “General Instructions for Forms 1099, 1098, 5498, and W-2G” and individual form instructions.
(b)Publication 1179, Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, and W-2G
(c)Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated
Tips, Magnetically or Electronically
(d)Publication 1187, Specifications for Filing Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding,
Magnetically or Electronically
(e)Publication 1245, Specifications for Filing Form W-4, Employee’s Withholding Allowance Certificate, Magnetically or Electronically.
.07This Revenue Procedure supersedes Rev. Proc. 2000–25 published as Publication 1220 (Rev. 7–2000), Specifications for
Filing Forms 1098, 1099, 5498, and W-2G Magnetically or Electronically.

.08Refer to Part A, Sec. 17, for definitions of terms used in this publication.
Sec. 2. Nature of Changes—Current Year (Tax Year2001)
.01 In this publication, all pertinent changes for Tax Year 2001are emphasized by the use of italics. Portions of text that require
special attention have been bolded.Filers are always encouraged to read the publication in its entirety.
.02 Programming Changes
a. General
(1)The state of Connecticut has been added to the Combined Federal State Filing Program. See Part A, Sec. 16, Table 1 for a
list of all participating states and their filing codes.
(2)The state of Tennessee has withdrawn from the Combined Federal State Filing Program.
(3)IRS/MCC is accepting 3590 and 3590E tape cartridges for the filing of information returns.
(4)Beginning in calendar year 2003 for Tax Year 2002, 9 track magnetic tape will no longer be an acceptable type of media
for submitting Information Returns to IRS/MCC.
b. Programming Changes - Transmitter “T” Record
(1) For all forms, Payment Year, Field Positions 2-5, must be incremented to update the four-digit report year (2000 to 2001),
unless reporting prior year data.
(2)A Vendor Indicator was added in Field Position 376 to indicate whether software was purchased from an outside source or
produced in-house.
(3)A Vendor Name field was added to Field Positions 377-416.
(4)A Vendor Mailing Address field was added to Field Positions 417-456.
(5)A Vendor City field was added to Field Positions 457-496.
(6)A Vendor State field was added to positions 497-498.
(7)A Vendor ZIP Code field was added to Field Positions 499-507.
(8)A Vendor Contact Name field was added to Field Positions 508-547.
(9)A Vendor Contact Phone Number and Extension field was added to Field Positions 548-562
(10)A Vendor Contact Email Address was added to Field Positions 563-582.
c. Programming Changes - Payer “A” Record
(1) For all forms, Payment Year, Field Positions 2-5, must be incremented to update the four-digit report year (2000 to 2001),
unless reporting prior year data.
(2) Form 1098-T – Tuition Payments Statement, Field Positions 28-39: Amount Code 1 has been renamed Qualified tuition and
related expenses.
(3) Form 1098-T – Tuition Payments Statement, Field Positions 28-39: Amount Code 2 has been renamed Reimbursements or
refunds.
(4) Form 1098-T – Tuition Payments Statement, Field Positions 28-39: Amount Code 3 was added for Scholarships and grants.
(5)Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code 4 was changed to Qualified 5-year gain.
(6) Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code 5 was changed to Unrecaptured section
1250 gain.
(7)Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code 6 was changed to Section 1202 gain.
(8) Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code 7 was changed to Nontaxable distributions.
(9)Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code 8 was changed to Federal income tax
withheld.
(10)Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code 9 was changed to Investment expenses.
(11) Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code A was changed to Foreign tax paid.
(12)Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code B was changed to Cash liquidation dis-
tribution.
(13)Form 1099-DIV – Dividends and Distributions, Field Positions 28-39: Amount Code C was added for Noncash liquidation
distribution.
(14) Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code 4 was changed to Recharacterized contri-
butions.
(15 Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code 5 was changed to Fair market value of
account.
(16)Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code 6 was changed to Life insurance cost
included in Amount Code 1.
2001–21 I.R.B.1201May 21, 2001

(17)Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code 8 was changed to SEP contributions.
(18)Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code 9 was changed to SIMPLE contributions.
(19)Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code A was changed to Roth IRA contributions.
(20)Form 5498 – IRA Contribution Information, Field Positions 28-39: Amount Code B added for Education IRA contributions.
d. Programming Changes — Payee “B” Record
(1) For all forms, Payment Year, Field Positions 2-5, must be incremented to update the four-digit report year (2000 to 2001),
unless reporting prior year data.
(2) Form 1098-E – Student Loan Interest – Field Position 547 was added to indicate if Amount Code 1 includes loan origination
fees and/or capitalized interest.
(3) Form 1099-LTC – Long-Term Care and Accelerated Death Benefits – Field Position 697 was added to indicate whether ben-
efits were from a qualified long-term care insurance contract.
(4) Form 1099-R – Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
– Field Positions 545-546 – The following codes have been added:
(a) Code N – Recharacterized IRA contribution made for 2001.
(b)Code T – Roth IRA distribution, exception applies.
The following codes have been changed:
(a)Code J – Early distribution from a Roth IRA, no known exception.
(b)Code R - Recharacterized IRA contribution made for 2000.
.03 Editorial Changes
a. Form 4804, Transmittal of Information Returns Reported Magnetically, has undergone a major revision. Due to the revision,
Form 4802, the continuation form, is no longer needed and is now obsolete.
b.The Form 4804 is not required for Electronicfiling. Electronic filers will be prompted to create a PIN when they first logon
to transmit their information returns. See Part C, Sec. 7, for additional details. Form 4804 is still required for magnetic media
filers (tape, tape cartridge and diskette). F
ILERS OF MAGNETIC MEDIA MUST SEND THE
FORM4804 WITH THEIR MEDIA.
c.IRS/MCC no longer returns media in need of replacement. All references to returning media for replacement were deleted. Revised
language informs filers that IRS/MCC will send correspondence requesting replacement files. The correspondence includes Form
9267, Media Tracking Slip, a listing of sample errors and a letter detailing the problem(s) encountered during processing.
d.The MCC Information Reporting Program (IRP) Call Site now has email service. Filers can email technical tax law questions
relative to information returns and magnetic media/electronic filing and receive written responses. (Do not submit confiden-
tial information, such as employer identification numbers, in your correspondence.) This service is accessed through
mccirp@irs.gov. For more information, contact the MCC/IRP Call Site at 304-263-8700.
e.Additional common problems were added to Part C, Sec. 12, .03 and .04. The items detail some of the more frequently asked
technical questions concerning dialing into the FIRE System. Filers are urged to refer to this area, if they experience difficul-
ties before calling IRS/MCC.
f.Forms 1099-MSA and 5498-MSA were affected by Public Law 106-554, enacted on December 21, 2000, which changed the
name of medical savings accounts to Archer MSAs. The 2001 forms and instructions do not reflect this change. These prod-
ucts were released for print prior to enactment of the new law.
g. For special rules for reporting payments made through foreign intermediaries and foreign flow-through entities on Form 1099,
see 2001 “General Instructions for Forms 1099, 1098, 5498, and W-2G” page GEN-12.
Sec. 3. Where To File and How to Contact the IRS, Martinsburg Computing Center
.01All information returns filed magnetically or electronically are processed at IRS/MCC. Files containing information returns
and requests for IRS magnetic media and electronic filing information should be sent to the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
.02 Allrequests for an extension of time to file information returns with IRS/MCC or to the recipients, and requests for undue
hardship waivers filed on Form 8508 should be sent to the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
May 21, 200112022001–21 I.R.B.

.03The telephone numbers for magnetic media inquiries or electronic submissions are:
&
304-263-8700 - Call Site or email at mccirp@irs.gov
304-267-3367 - TDD
(Telecommunication Device for the Deaf)
304-264-5602 - Fax Machine
Electronic Filing – FIRE system
304-262-2400
********(These are not toll-free telephone numbers.)********
TO OBTAIN FORMS:
1-800-TAX-FORM (1-800-829-3676)
www.irs.gov- INTERNET access to forms (See Note.)
*Note: Because the IRS processes paper forms by machine (optical character recognition equipment), you cannot file the
IRS Form 1096 or Copy A of Forms 1098, 1099, or 5498 printed from the Internet.
.04 The 2001 “ General Instructions for Forms 1099, 1098, 5498, and W-2G” and the individual forms instructionshave been
included in the Publication 1220 for your convenience. The Form 1096 is used only to transmit Copy A of paperForms 1099, 1098,
5498, and W-2G. If filing paper returns, follow the mailing instructions on Form 1096 and submit the paper returns to the appro-
priate IRS Service Center.
.05 Requests for paper Forms 1096, 1098, 1099, 5498, and W-2G, and publications related to magnetic media/electronic filing
should be made by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676) or via the Internet at www.irs.gov.
.06 Questions pertaining to magnetic media filing of Forms W-2 mustbe directed to the Social Security Administration (SSA).
Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.
.07 Payers should notcontact IRS/MCC if they have received a penalty notice and need additional information or are requesting
an abatement of the penalty. A penalty notice contains an IRS representative’s name and/or phone number for contact purposes; or,
the payer may be instructed to respond in writing to the address provided. IRS/MCC does notissue penalty notices and does not
have the authority to abate penalties. For penalty information, refer to the Penalty section of the 2001 “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 sub-
mitting Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM
(1-800-829-3676). For any questions regarding this form, call 1-800-829-1040.
.09The Information Reporting Program Call Site answers both magnetic media and tax law questions relating to the filing of infor-
mation returns (Forms 1096, 1098, 1099, 5498, 8027, W-2G, and W-4). The Call Site also answers magnetic media questions relat-
ed to Forms 1042-S, and tax law and paper filing related questions about Forms W-2 and W-3, as well as handling inquiries dealing
with backup withholding and reasonable cause requirements due to missing and incorrect taxpayer identification numbers. The Call
Site is located at IRS/MCC and operates in conjunction with the Information Reporting Program. The Call Site provides service to
the payer community (financial institutions, employers, and other transmitters of information returns). Recipients of information
returns (payees) should continue to contact 1-800-829-1040 or other numbers specified in the tax return instructions with any ques-
tions on how to report information on their tax returns. The Call Site accepts calls from all areas of the country. The number to call
is304-263-8700or Telecommunications Device for the Deaf (TDD) 304-267-3367.These are toll calls. The Call Site can also be
reached via email at mccirp@irs.gov
.Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to 4:30 p.m. Eastern
time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high
demand for assistance at the end of January and February, it is advisable to call as soon as possible to avoid these peak filing seasons.
Sec. 4. Filing Requirements
.01The regulations under section 6011(e)(2)(A) of the Internal Revenue Code provide that any person, including a corporation,
partnership, individual, estate, and trust, who is required to file 250 or more information returns must file such returns magnetical-
ly/electronically. The 250* or more requirement applies separately for each type of return and separately to each type of cor-
rected return.
*Even though filers may submit up to 249 information returns on paper, IRS encourages filers to transmit those informa-
tion returns magnetically or electronically.
.02 All filing requirements that follow apply individually to each reporting entity as defined by its separate taxpayer identification
number (TIN), social security number (SSN), employer identification number (EIN), individual taxpayer identification number
(ITIN) or adoption taxpayer identification number (ATIN). For example, if a corporation with several branches or locations uses the
same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to
each type of return accordingly.
2001–21 I.R.B.1203May 21, 2001

.03Payers who are required to submit their information returns on magnetic media may choose to submit their documents by elec-
tronic filing. Payers who submit their information returns electronically by April 1, 2002, are considered to have satisfied the mag-
netic media filing requirements.
.04 IRS/MCC has one method for filing information returns electronically; see Part C.
.05The following requirements apply separately to both originals and corrections filed magnetically/electronically:
1098 250 or more of anyof these forms require magnetic media
1098-E*or electronic filing with IRS. These are stand alone documents
1098-T*and are not to be aggregated for purposes of determining the
1099-A250 threshold. For example, if you must file 100 Forms 1099-B
1099-B and 300 Forms 1099-INT, Forms 1099-B need not be filed
1099-C magnetically or electronically since they do not meet the threshold
1099-DIVof 250. However, Forms 1099-INT must be filed magnetically or
1099-G electronically since they meet the threshold of 250.
1099-INT
1099-LTC
1099-MISC
1099-MSA
1099-OID
1099-PATR
1099-R
1099-S
5498
5498-MSA
W-2G
*For Tax Year 2001, Forms 1098-E and 1098-T may be reported on paper regardless of the 250 threshold.
.06The above requirements do not apply if the payer establishes hardship (see Part A, Sec. 5).
Sec. 5. Form 8508, Request for Waiver From Filing Information Returns on Magnetic Media
.01 If a payer is required to file on magnetic media but fails to do so (or fails to file electronically in lieu of magnetic media fil-
ing) and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For
penalty information, refer to the Penalty section of the2001 “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 a hardship, they
may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns
on Magnetic Media, to IRS/MCC. A Form 8508 is included in Publication 1220 for the filer’s use.
.03Even though a payer may submit as many as 249 corrections on paper, IRS encourages magnetically or electronically sub-
mitted corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more magnetically or
electronically. However, if a waiver for original documents is approved, any corrections for the same type of returns will be cov-
ered under this waiver.
.04Generally, only the payer may sign the Form 8508. A transmitter may sign if given power of attorney; however, a letter signed
by the payer stating this fact must be attached to the Form 8508.
.05 A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers.
.06All information requested on the Form 8508 must be provided to IRS for the request to be processed.
.07 The 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 it contains all the information requested on the original form.
.09Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns.
.10 File Form 8508 for the W-2 series of forms with IRS/MCC, not SSA.
.11Waivers are evaluated on a case-by-case basis and are approved or denied based on criteria set forth in the regulations under section
6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.
.12If a waiver request is approved, the transmitter should keep the approval letter on file. The transmitter should not send a copy
of the approved waiver to the service center where the paper returns are filed.
.13An approved waiver from filing information returns on magnetic media does not provide exemption from all filing. The payer
must timely file information returns on Copy A of acceptable paper forms with the appropriate service center.
Sec. 6. Vendor List
.01IRS/MCC prepares a list of vendors who support magnetic media or electronic filing. The Vendor List (Pub. 1582) contains
the names of service bureaus that will produce files on the prescribed types of magnetic media or via electronic filing. It also con-
May 21, 200112042001–21 I.R.B.

tains the names of vendors who provide software packages for payers who wish to produce magnetic media or electronic files on
their own computer systems. This list is compiled as a courtesy and in no way implies IRS/MCC approval or endorsement.
.02 If filers meeting the filing requirements engage a service bureau to prepare media on their behalf, the filers should be careful
not to report duplicate data, which may cause penalty notices to be generated.
.03The Vendor List, Publication 1582, may be updated in print every other year. The most recently printed copy will be avail-
able by contacting IRS/MCC at 304-263-8700 or by letter (see Part A, Sec. 3). The Vendor List is also available on the Internet at
www.irs.gov.
.04A vendor, who offers a software package, or has the ability to produce magnetic media for customers, or has the capability to
electronically file information returns, and who would like to be included on the list must submit a written request to IRS/MCC. The
request should include:
(a)Company name
(b)Address (include city, state, and ZIP code)
(c)Telephone number (include area code)
(d)Contact person
(e)Type(s) of service provided (e.g., service bureau and/or software)
(f)Type(s) of media offered (e.g., magnetic tape, tape cartridge, 3 1/2-inch diskette, or electronic filing)
(g)Type(s) of return(s)
Sec. 7. Form 4419, Application for Filing Information Returns Magnetically/Electronically
.01Transmitters are required to submit Form 4419, Application for Filing Information Returns Magnetically/ Electronically, to
request authorization to file information returns with IRS/MCC. A single Form 4419 should be filed no matter how many types of
returns the transmitter will be submitting magnetically/electronically. For example, if a transmitter plans to file Forms 1099-INT,
one Form 4419 should be submitted. If, at a later date, another type of form (Forms 1098, 1099, 5498 and W-2G) is to be filed, the
transmitter does not need to submit a new Form 4419.
EXCEPTIONS
An additional Form 4419 is required for filing each of the following types of returns:
Forms 1042-S, 8027, and W-4.
FORMTITLEEXPLANATION
1042-SForeign Person’s U.S. Reports payments
Source Income Subjectsubject to withholding
to Withholdingunder Chapter 3 of the
Code, including
interest, dividends,
royalties, pensions
and annuities.
8027 Employer’s AnnualReports receipts from
Information Returnoperations
of Tip Income andwhere tipping is
Allocated Tipscustomary. Used by
the employers to
report employees’ tips
or allocated tips.
W-4Employee’s WithholdingReports forms received
(See Note) Allowance Certificateduring the quarter
from employees still
employed at the end
of the quarter who
claim the following:
(a)More than 10 withholding
allowances or
(b)Exempt status and
wages normally
would be more
than $200 a week.
*Note: Employers are not required to send other Forms W-4 unless notified to do so by the IRS.
2001–21 I.R.B.1205May 21, 2001

.02Magnetic tape, tape cartridge, diskette, and electronically-filed returns may not be submitted to IRS/MCC until the applica-
tion has been approved. Please read the instructions on the back of Form 4419 carefully. A Form 4419 is included in the Publication
1220 for the filer’s use. This form may be photocopied. Additional forms may be obtained by calling 1-800-TAX-FORM (1-800-
829-3676). The form is also available on the Internet at www.irs.gov.
.03Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval
letter. The TCC mustbe coded in the Transmitter “T” Record. If a transmitter uses more than one TCC to file, each TCC must be
reported on separate media or in separate transmissions if filing electronically.
.04 Annually, a Publication 1220 containing the current Revenue Procedure, forms, and instructions will be sent to the attention
of the contact person indicated on Form 4419.
.05 If anyof the information (name, TIN or address) on the Form 4419 changes, please notify IRS/MCC in writing so the
IRS/MCC database can be updated. However, a change in the method by which information returns are being submitted is not infor-
mation which needs to be updated (e.g., tape to disk). The transmitter should include the TCC in all correspondence.
.06Form 4419 may be submitted anytime during the year; however, it must be submitted to IRS/MCC at least 30 days before
the due date of the return(s) for current year processing. This will allow IRS/MCC the minimum amount of time necessary to process
and respond to applications. In the event that computer equipment or software is not compatible with IRS/MCC, a waiver may be
requested to file returns on paper documents.
.07IRS/MCC encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all
payers.
.08If a payer’s files are prepared by a service bureau, the payer may not need to submit an application to obtain a TCC. Some
service bureaus will produce files, code their own TCC in the file, and send it to IRS/MCC for the payer. Other service bureaus will
prepare the file and return the file to the payer for submission to IRS/MCC. These service bureaus may require the payer to obtain
a TCC to be coded in the Transmitter “T” Record. Payers should contact their service bureaus for further information.
.09Once a transmitter is approved to file magnetically or electronically, it is not necessary to reapply unless:
(a) The payer has discontinued filing magnetically or electronically for two consecutive years; the payer’s TCC may have been
reassigned by IRS/MCC. Payers who are aware the TCC assigned will no longer be used are requested to notify IRS/MCC
so these numbers may be reassigned; or
(b) The payer’s magnetic media files were transmitted in the past by a service bureau using the service bureau’s TCC, but now
the payer has computer equipment compatible with that of IRS/MCC and wishes to prepare his or her own files. The payer
must request a TCC by filing Form 4419.
.10One Form 4419 may be submitted regardless of how many types of media or methods are used to file the return. While not
encouraged, multiple TCCs can be issued to payers with multiple TINs. Only one TCC will be issued per TIN unless the filer has
checked the application for the following forms in addition to the Forms 1098, 1099, 5498 or W-2G: Forms 1042–S, 8027, and/or
W-4. A separate TCC will be assigned for each of these forms.
.11In accordance with Regulations section 1.6041–7(b), payments by separate departments of a health care carrier to providers
of medical and health care services may be reported on separate returns filed magnetically or electronically. In this case, the head-
quarters 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 magnetically/electronically should be submitted. One TCC may be used for all
departments.
.12Approval to file does not imply endorsement by IRS/MCC of any computer software or of the quality of tax preparation ser-
vices provided by a service bureau or software vendor.
Sec. 8. Test Files
.01IRS/MCC does not require test files, exceptfor filers wishing to participate in the Combined Federal/State Filing Program.
See Part A, Sec. 16, for further information concerning the Combined Federal/State Filing Program.
.02IRS/MCC encourages first-time magnetic media or electronic filers to submit a test. The test file must consist of a sample of
each type of record:
(a)Transmitter “T” Record (all fields marked required must include transmitter information)
(b)Payer “A” Record (must not be fictitious data)
(c)Multiple Payee “B” Records (at least 11 “B” Records per each “A” Record)
(d)End of Payer “C” Record
(e)State Totals “K” Record, if participating in the Combined Federal/State Filing Program
(f)End of Transmission “F” Record
(See Part B for record formats.)
.03Use the Test Indicator “T” in Field Position 28 of the “T” Record to show this is a test file.
.04IRS/MCC will check the file to ensure it meets the specifications of this Revenue Procedure. For current filers, sending a test
file will provide the opportunity to ensure their software reflects any programming changes.
.05 Electronic tests may be submitted November 1, 2001, through February 15, 2002. See Part C, Sec. 5.03 for information on
electronic test results.
May 21, 200112062001–21 I.R.B.

.06Tests submitted on magnetic media should be sent to IRS/MCC between November 1 and December 17. Tests must be
received at MCC by December 17in order to be processed. Magnetic media filers may begin submitting test tapes and diskettes
after October 1; however, the data will not be processed until on or after November 1. For tests filed on magnetic tape, tape car-
tridge, 8mm, 4mm, and quarter inch cartridge,and 3 1/2-inch diskette, the transmitter must include the signed Form 4804 in the same
package with the corresponding magnetic media. Mark the “TEST” box in Block 1 on the form. Also, mark “TEST” on the exter-
nal media label.
.07IRS/MCC will send a letter of acknowledgment to indicate the magnetic media test results. Unacceptable magnetic media
files, along with documentation identifying the errors, will be returned. Resubmission of magnetic media test files must be received
by IRS/MCC no later than December 17.
.08Successfully processed media will not be returned to filers.
Sec. 9. Filing of Information Returns Magnetically and Retention Requirements
.01Form 4804, Transmittal of Information Returns Reported Magnetically, or a computer-generated substitute, must accompany
allmagnetic media shipments.
.02IRS/MCC allows for the use of computer-generated substitutes for Form 4804. The substitutes must contain all information
requested on the original forms including the affidavit and signature line. Photocopies are acceptable but an original signature is
required. When using computer-generated forms, be sure to mark very clearly which tax year is being reported. This will eliminate
a phone communication from IRS/MCC to question the tax year.
.03A transmitter may report for any combination of payers and/or documents in a submission. Each file must begin with a “T”
Record and end with an “F” Record for the end of a transmission. For example, if reporting Forms 1099–INT for Bank A, Forms
1099–DIV for Bank B, and Forms 1098 for Bank C, three separate tapes or diskettes need not be created. All three banks and all
types of documents can be coded within a single file on one tape or diskette as long as each bank or type of return has a separate
“A” Record. Multiple tapes or diskettes can be sent in one package. For each separate type of media, the first record on the file
must be the Transmitter “T” Record. A Form 4804, Transmittal of Information Returns Reported Magnetically, must be submitted
for every Transmitter “T” Record. Filers must include Form 4804, or computer-generated substitute with their shipment.
.04Multiple types of media may be submitted in a shipment. However, submit a separate Form 4804 for each type of media.
.05Current and prior year data may be submitted in the same shipment; however, each tax year must be on separate media, and
a separate Form 4804 must be prepared to clearly indicate each tax year.
.06Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to
IRS/MCC no earlier than January 1 of the year the return is due.
.07 Do not report duplicate information. If a filer submits returns magnetically/electronically, identical paper documents
must not be filed. This may result in erroneous penalty notices.
.08Form 4804 may be signed by the payer or the transmitter, service bureau, paying agent, or disbursing agent (all hereafter
referred to as agent) on behalf of the payer. Failure to sign the affidavit on Form 4804 may delay processing or could result in the
files being unprocessed. An agent may sign the Form 4804 if the agent has the authority to sign the affidavit under an agency agree-
ment (either oral, written, or implied) that is valid under state law and adds the caption “FOR: (name of payer).”
.09Although an authorized agent may sign the affidavit, the payer is responsible for the accuracy of the Form 4804 and the returns
filed. The payer will be liable for penalties for failure to comply with filing requirements.
.10A self-adhesive external media label, created by the filer, must be affixed to each piece of magnetic media. For instructions
on how to prepare an external media label, refer to Notice 210 in the forms section of this publication. If diskettes are used, be cer-
tain that only MS-DOS compatible operating systems were used to prepare the diskettes. Non-MS-DOS diskettes are no longer
acceptable at IRS/MCC.
.11On the outside of the shipping container, affix or attach a label which reads “IRB Box ___of___” reflecting the number of
containers in the shipment. (Filers can create a label with this information or cut out one of the labels on the special label page pro-
vided in this publication.) If there is only one container, mark the outside as Box 1
of 1. For multiple containers, include the
sequence (for example, Box 1 of 3, 2 of 3, 3 of 3).
.12When submitting files include the following:
(a)A signed Form 4804;
(b)External media label (created by filer) affixed to magnetic media;
(c)IRB Box _____ of ______ outside label.
*Note: See Part C for Electronic Filing Specifications. Form 4804 is no longer needed for electronic filing.
.13 Do not use special shipping containers for mailing media to IRS/MCC. Shipping containers will not be returned.
.14If returns from different locations (using the same name and TIN) are submitted on the same file, IRS encourages the filer to
consolidate each type of information return under one “A” Record. For example, all “B” Records for the same type of return should
be together under one “A” Record and followed by the End of Payer “C” Record.
.15IRS/MCC will not pay for or accept “Cash-on-Delivery” or “Charge to IRS” shipments of tax information that an individual
or organization is legally required to submit.
2001–21 I.R.B.1207May 21, 2001

.16Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at least 3
years from the reporting due date, with the exception of Form 1099–C. A financial entity must retain a copy of Form 1099–C,
Cancellation of Debt, or have the ability to reconstruct the data required to be included on the return, for at least 4 years from the
date such return is required to be filed. Whenever backup withholding is imposed, a 4-year retention is required.
Sec. 10. Due Dates
.01The due dates for filing paper returns with IRS also apply to magnetic media. Filing of information returns is on a calendar
year basis, except for Forms 5498 and 5498–MSA, which are used to report amounts contributed during or after the calendar year
(but not later than April 15). The following due dates will apply to Tax Year 2001:
Due Dates
May 21, 200112082001–21 I.R.B.
Electronic Filing (See Note)Magnetic Filing
Forms 1098, 1099, and W-2GForms 1098, 1099, and W-2G
Recipient Copy - January 31, 2002Recipient Copy - January 31, 2002
IRS Copy - - - - - - - April 1, 2002*IRS Copy - - - - - - February 28, 2002
*Normal due date of March 31, 2002
falls on a Sunday.
Electronic/Magnetic Filing
Forms 5498 and 5498–MSA
Participant Copy - May 31, 2002*
IRS Copy - - - - - - - May 31, 2002
* Participants’ copy of Form 5498 for education IRA and all other
Forms 5498 to furnish fair market value information -
January 31, 2002
*Note: Electronicallyfiled Forms 1099, 1098, or W-2G are due to the IRS by April 1, 2002. The due date for magneti-
callyfiled Forms 1099, 1098, and W-2G remains unchanged (February 28, 2002).
Legislation amending Internal Revenue Code section 6071(b), eliminates the necessity for electronic filers of Forms 1098, 1099, and
W-2G to request an extension of the filing date from February 28 to March 31, effective for returns required to be filed after
December 31, 1999.
.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.
.03Information returns filed magnetically for Forms 1098, 1099, and W-2G must be submitted to IRS/MCC postmarked on or
before February 28, 2002.
.04Electronically filed information returns for Forms 1098, 1099 and W-2G must be submitted to IRS/MCC no later than April
1, 2002, and will be considered timely filed if submitted by that date. Electronically filed information returns submitted after April
1, 2002, will be considered late unless an extension has been applied for and approved.
.05Magnetic media returns postmarked by the United States Postal Service (USPS) on or before February 28, 2002, and deliv-
ered by United States mail to the IRS/MCC after the due date, are treated as timely under the “timely mailing as timely filing” rule.
A similar rule applies to items delivered by private delivery services (PDSs) designated by the IRS. A PDS must be designated by
the IRS before it will qualify for the timely mailing rule. (See Note.) Notice 99–41, 1999–2 C.B. 325, provides the list of desig-
nated PDSs. Designation is effective until the IRS issues a revised list. Notice 97–26 1997–1 C.B. 413, provides rules for deter-
mining the date that is treated as the postmark date. For items delivered by a non-designated PDS, the actual date of receipt by
IRS/MCC will be used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in
Notice 99–41, the actual date of receipt by IRS/MCC will be used as the filing date. The timely mailing rule also applies to fur-
nishing statements to recipients and participants.
*Note: Due to security regulations at MCC, the Internal Revenue police officers will not accept media from PDSs or
couriers from 3:00 p.m. to 11:00 p.m., seven days a week, and 11:00 p.m. to 7:00 a.m., Saturday and Sunday.
.06 Statements to recipients must be furnished on or before January 31, 2002, for TY 2001. Form 5498 statements to the participants
must be furnished on or beforeJanuary 31, 2002, for TY 2001 for the fair market value of the account and for contributions to an edu-
cation IRA and by May 31, 2002,for TY 2001 for contributions made to all other types of IRAs for the prior calendar year.
.07 Forms 5498 and 5498–MSA filed magnetically or electronically must be filed with IRS/MCC on or beforeMay 31, 2002,for
TY 2001.

.08 Use this Revenue Procedure to prepare information returns filed magnetically or electronically beginning January 1, 2002,
and received by IRS/MCC no later than December 15, 2002.
Sec. 11. Extensions of Time
.01An extension of time to file may be requested for Forms 1098, 1099, 5498, 5498–MSA, W-2G, W-2 series, 8027 and 1042–S.
.02Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC at the address list-
ed in .06 of this section. This form may be used to request an extension of time to file information returns submitted on paper, mag-
netically or electronically to the IRS
.03Requesting an extension of time for multiple payers (50 or less) may be done by submitting Form 8809 and attaching a list
of the payer names and associated TINs (EIN or SSN). The listing must be attached to ensure an extension is recorded for all
payers. Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included. For Forms
1098, 1099 and W-2G that will be filed electronically, Form 8809 must be submitted on or before April 1, 2002.
.04Requests for an extension of time to file for more than 50 payers are required to be submitted magnetically or electronically.
Requests for an extension of time for 10 to 50 payers are encouraged to be filed magnetically or electronically. (See Part D, Sec. 3,
for the record format.) The request may be filed on tape, tape cartridge, 3 1/2-inch diskette, or electronically.
.05If a filer does not have an IRS/MCC assigned Transmitter Control Code (TCC), a Form 4419, Application for Filing
Information Returns Magnetically/Electronically, mustbe submitted to obtain a TCC. This number must be used to submit an exten-
sion request magnetically/electronically.
.06All requests for an extension of time filed on Form 8809 or filed magnetically on tape, tape cartridge, 8mm, 4mm, Quarter
Inch Cartridges (QIC) or 3 1/2 inch diskette should be sent using the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
.07Transmitters requesting an extension of time for multiple payers will receive one approval letter, accompanied by a list of
payers covered under that approval.
.08 As soon as it is apparentthat a 30-day extension of time to file is needed, Form 8809 should be submitted. It will take a
minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of
time could be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days.
.09Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an
extension of time to file several types of forms, use one Form 8809; however, the Form 8809 must be postmarked no later than the
earliest due date. For example, if requesting an extension of time to file both Forms 1099–INT and 5498, submit Form 8809 post-
marked on or before February 28, 2002. (See Note.) Complete more than one Form 8809 to avoid this problem.
*Note: For Tax Year 2001, if you will be filing Forms 1098, 1099, or W-2G electronically, the Form 8809 is not required
unless an extension is needed beyond April 1, 2002.
.10If an additional extension of time is needed, a second Form 8809 must be filed by the initial extended due date. Check line
7 on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases
of extreme hardship or catastrophic event. If requesting a second 30-day extension of time, submit the information return files
as soon as prepared. Do not wait for MCC’s response to your second extension request.
.11If an extension request is approved, the approval letter should be kept on file. The approval letter, or copy of the approval
letter, for an extension of time should not be sent to IRS/MCC with the magnetic media file or to the service center where the paper
returns are filed.
.12Request an extension for only one tax year.
.13The extension request must be signed by the payer or a person who is duly authorized to sign a return, statement or other doc-
ument for the payer.
.14Failure to properly complete and sign 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.
.15Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).The form is also available on the Internet at
www.irs.gov. A copy of Form 8809 is also provided in the back of Publication 1220.
.16 Request an extension of time to furnish the statements to recipientsof Forms 1098, 1099, 5498, W-2G, W-2 series, and
1042-S by submitting a letter to IRS/MCC at the address listed in .06 of this section. The letter should contain the following information:
(a)Payer name
(b)TIN
(c)Address
(d)Type of return
2001–21 I.R.B.1209May 21, 2001

(e)Specify that the extension request is to provide statements to recipients
(f)Reason for delay
(g)Signature of payer or duly authorized person.
Requests for an extension of time to furnish the statements to recipients for Forms 1098, 1099, 5498, W-2G, W-2 series, and
1042-S are not automatically approved; however, if approved, generally an extension will allow a maximum of 30 additional days
from the due date to furnish the statements to the recipients. The request must be postmarked by the date on which the statements
are due to the recipients.
Sec. 12. Processing of Information Returns Magnetically
.01All data received at IRS/MCC for processing will be given the same protection as individual income tax returns (Form 1040).
IRS/MCC will process the data and determine if the records are formatted and coded according to this Revenue Procedure.
.02 If media is received with data formatted incorrectly, IRS/MCC will request a replacement file in writing. When IRS/MCC
requests a replacement file, it is because we encountered errors (not limited to format) and were unable to process the media.
Filers will receive a Media Tracking Slip (Form 9267), listing, and letter detailing the 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/MCC immediately.
.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of
the letter. Refer to Part C, Section 6, for procedures for files submitted electronically. A penalty for failure to file correct informa-
tion returns by the due date will be assessed if the files are not corrected and returned within the 45 days or if filers are notified by
IRS/MCC 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 the 2001“General
Instructions for Forms 1099, 1098, 5498, and W-2G.”)
.04Sample records identifying errors encountered will be provided with the returned information. It is the responsibility of the
transmitter to check the entire file for similar errors.
.05The following definitions have been provided to help distinguish between a correction and a replacement:
•Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submitted
to and processed by IRS/MCC, but contained erroneous information.
*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 at the request of IRS/MCCbecause of errors encountered while pro-
cessing the filer’s original submission. After the necessary changes have been made, the file must be returned for processing
along with the Media Tracking Slip (Form 9267) which was included in the correspondence from IRS/MCC. (See Note 1).
*Note 1: Filers should never send anything to IRS/MCC marked “Replacement” unless IRS/MCC has requested a
replacement file in writing or via the FIRE System.
*Note 2: IRS/MCC no longer returns problem media in need of replacement. Filers will receive a tracking slip, listing and
letter detailing the reason(s) their media could not be processed. Filers will be expected to send a replacement file within the
prescribed time frame. This makes it imperativethat filers maintain backup copies and/or recreate capabilities for their
information return files.
.06IRS/MCC will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/MCC received
a shipment, the transmitter should select a service with tracking capabilities or one that will provide proof of delivery. Do not use
special shipping containers for transmitting data to IRS/MCC. Shipping containers will not be returned.
.07IRS/MCC will work with filers as much as possible to assist with processing problems. If the filer is contacted by IRS/MCC,
a prompt response is important. IRS/MCC may have information that the filer needs to correct his or her file.
.08IRS/MCC contacts payers who have submitted payee data with missing TINs in an attempt to prevent errors that could result
in penalties. Payers who submit data with missing TINs and have taken the required steps to obtain this information are encouraged
to send a letter of explanation. If you are filing magnetically, this letter may be included with your media and Form 4804. This will
prevent unnecessary contact from IRS/MCC. This letter, however, will not prevent backup withholding notices (CP2100 or
CP2100A Notices) or penalties for missing or incorrect TINs.
Sec. 13. Corrected Returns
.01The magnetic media filing requirement of information returns of 250 or more applies separately to both original and correct-
ed returns.
May 21, 200112102001–21 I.R.B.

If a payer has 100 Forms 1099-A to be corrected, they can be
Efiled on paper because they fall under the 250 threshold. However,
Xif the payer has 300 Forms 1099-B to be corrected, they must be
Afiled magnetically or electronically because they meet the 250 threshold.
MIf for some reason a payer cannot file the 300 corrections on magnetic
Pmedia, to avoid penalties, a request for a waiver must be submitted before
Lfiling on paper. If a waiver is approved for original documents, any corrections
Efor the same type of return will be covered under this waiver.
.02Corrections should be filed as soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of
$50 per return. Corrections filed by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalty
section of the 2001“General Instructions for Forms 1099, 1098, 5498, and W-2G.”) However, if payers discover errors after August
1, they are still required to file corrections so they will not be subject to a penalty for intentional disregard of the filing requirements.
Failure to correct information returns may result in penalties for failure to provide correct information. All fields must be com-
pleted with the correct information, not just the data fields needing correction.Submit corrections only for the returns filed in
error, not the entire file. Furnish corrected statements to recipients as soon as possible.
.03There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error.
If the original return was filed as an aggregate, the filers must consider this in filing corrected returns.
.04Corrected returns may be included on the same medium as original returns; however, separate “A” Records are required.
Corrected returns must be identified on the Form 4804 and the external media label by indicating “Correction.” If filers discover
that certain information returns were omitted on their original file, they must not code these documents as corrections. The file must
be coded and submitted as originals.
.05If a payer discovers errors for prior years that affect a large number of payees, in addition to sending IRS the corrected returns
and notifying the payees, a letter containing the following information should be sent to IRS/MCC:
(a)Name and address of payer
(b)Type of error (please explain clearly)
(c)Tax year
(d)Payer TIN
(e)TCC
(f)Type of Return
(g)Number of Payees
This information will be forwarded to the appropriate office in an attempt to prevent erroneous notices from being sent to the pay-
ees. The corrections must be submitted on actual information return documents or filed magnetically/electronically. If filing mag-
netically, provide the correct tax year in Block 2 of the Form 4804 and on the external media label. Form 4804 is not needed for
electronic filing.
.06Prior year data, original and corrected, mustbe filed according to the requirements of this Revenue Procedure. If submitting
prior year corrections, use the record format for the current year and submit on separate media. However, use the actual year des-
ignation of the correction 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.
.07In 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).
.08All paper returns, whether original or corrected, must be filed with the appropriate service center.
.09Form 4804 must be submitted with corrected files submitted magnetically. All references to the Form 4804 in the guidelines
instructions apply only to files submitted magnetically. The Form 4804 is no longer required for electronic filing through the FIRE
System.
.10The “B” Record provides a 20-position field for the Payer’s Account Number for the Payee. This number will help identify
the appropriate incorrect return if more than one return is filed for a particular payee. Do not enter a TIN in this field. A payer’s
account number for the payee may be a checking account number, savings account number, serial number, or any other number
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.
.11The record sequence for filing corrections is the same as for original returns.
.12Review the chart that follows. Errors normally fall under one of the two categories listed. Next to each type of error made
is a list of instructions on how to file the corrected return.
2001–21 I.R.B.1211May 21, 2001

Guidelines for Filing Corrected Returns Magnetically/Electronically
Error Made on the Original Return How To File the Corrected Return
*Note: References to Form 4804 apply to magnetically filed media only. Form 4804 is no longer required for files submitted
electronically through the FIRE System.
Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both
Transactions 1 and 2. (See Note 1.)
1. Original return was filedTransaction 1:Identify incorrect returns
with one or more of the
following errors:
A.Prepare a new Form 4804 that includes
information related to this new file.
(a)No payee TIN (SSN, ITIN, ATIN or EIN)B.Mark “Correction” in Block 1 of Form 4804.
(b)Incorrect payee TINC.Prepare a new file. The first record on the file
(c)Incorrect payee name will be the Transmitter “T” Record.
(d)Wrong type of return indicator D. Make a separate “A” Record for each type of
return and each payer being reported. The infor-
mation in the “A” Record will be exactlythe
same as it was in the original submission with
one exception; the Correction File Indicator
(Field Position 50) must be set to “1” .
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 for all payment amounts, enter “0” (zeros).
F. Corrected returns submitted to IRS/MCC using
“G” coded “B” Records may be on the same file
as those returns submitted with a “C” code; how-
ever, separate “A” Records are required.
G.Prepare a separate “C” Record for each type of
return and each payer being reported.
H.Continue with Transaction 2 to complete the
correction.
Transaction 2:Report the correct information
A.Make a separate “A” Record for each type of
return and each payer being reported. The
Correction File Indicator (Field Position 50),
must be set 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/MCC using
“C” coded “B” Records may be on the same file
as those returns submitted with “G” codes;how-
ever, separate “A” Records are required.
D.Prepare a separate “C” Record for each type of
return and each payer being reported.
E.The last record on the file will be the End of
Transmission “F” Record.
F. Indicate “Correction” on the external media
label.
*Note 1: See the 2001 “General Instructions for Forms 1099, 1098, 5498, and W-2G.” for additional information on
regulations affecting corrections and related penalties.
May 21, 200112122001–21 I.R.B.

Guidelines for Filing Corrected Returns Magnetically/Electronically (continued)
Error Made on the Original Return How To File the Corrected Return
One transaction is required to make the following corrections properly (See Note 2).
2. Original return was filedA.Prepare a new Form 4804 that includes
with one or more of theInformation relating to this new file.
following errors:B.Mark “Correction” in Block 1 of Form 4804.
(a) Incorrect paymentC.Prepare a new file. The first record on the file
amount codes in thewill be the Transmitter “T” Record.
Payer “A” RecordD.Make a separate “A” Record for each type of
(b)Incorrect paymentreturn and each payer being reported.
amounts in the PayeeInformation in the “A” Record may be the same
“B” Recordas it was in the original submission. However,
(c)Incorrect code in thethe Correction File Indicator (Field Position 50)
distribution code field in must be set to “1” (one).
the Payee “B” RecordE.The Payee “B” Records must show the correct
(d)Incorrect payee addressrecord information as well as a Corrected
(e)Incorrect Direct sales indicatorReturn Indicator Code of “G” in Field Position 6.
F. Corrected returns submitted to IRS/MCC
using “G” coded “B” Records may be on the
same file as those returns submitted without
the “G” coded “B” Records; however, sepa-
rate “A” Records are required.
G.Prepare a separate “C” Record for each type of
return and each payer being reported.
H.The last record on the file will be the End of
Transmission “F” Record.
I.Indicate “Correction” on the external media
label.
*Note 2: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, two
transactions will be required. If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns on the
same media, each category must be reported under separate “A” Records.
Sec. 14. Taxpayer Identification Number (TIN)
.01Section 6109 of the Internal Revenue Code requires a person to furnish his/her TIN to the person obligated to file the infor-
mation return.
.02The payees’ TIN and name combinations are used to associate information returns reported to IRS/MCC with corresponding
information on payees’ tax returns. It is imperative that correctTaxpayer Identification Numbers (TINs) for payees be provided to
IRS/MCC. Do not enter hyphens or alpha characters.Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN.
.03The payer and payee names, with associated TINs, should be consistent with the names and TINs used on other tax returns.
Also, the name and TIN provided must belong to the owner of the account. If the account is recorded in more than one name, fur-
nish the name and TIN of one of the owners of the account. The TIN provided mustbe associated with the name of the payee pro-
vided in the first name line of the “B” Record. For individuals, the payee TIN is generally the payee’s Social Security Number
(SSN). For other entities, the payee TIN is the payee’s Employer Identification Number (EIN). The payee TIN may also refer to an
Individual Taxpayer Identification Number (ITIN) or Adoption Taxpayer Identification Number (ATIN). For sole proprietors, the
payee TIN may be either an SSN or EIN but the sole proprietor’s name(not the business name) must be used on the first name
line and the SSN is preferred.
.04Failure to provide the correct name and corresponding TIN could result in a proposed penalty notice 972CG and/or backup
withholding notice CP 2100 (sometimes referred to as a “B” Notice).
.05The following charts will help payers determine the TIN to be furnished to IRS/MCC for those persons (payees) for whom
they are reporting information.
2001–21 I.R.B.1213May 21, 2001

Chart 1. Guidelines for Social Security Numbers
In the Taxpayer
Identification
Number Field ofIn the First Payee
the Payee “B”Name Line of the
For this type of Record, enter the Payee “B” Record,
account- SSN of-enter the name of-
1. IndividualThe individualThe individual
2. Joint account (Two The actual ownerThe individual
or more individuals, of the account or, whose SSN is
including husband and if combined funds,entered
wife) the first indivi-
dual on the account
3. Custodian account The minorThe minor
of a minor (Uniform
Gift, or Transfers,
to Minors Act)
4. The usual revocable The grantor-trusteeThe grantor-trustee
savings trust account
(grantor is also trustee)
5. A so-called trust The actual ownerThe actual owner
account that is not a
legal or valid trust
under state law
6. SoleThe business ownerThe owner, not the business
proprietorship(An SSN or EIN)name (The filer may enter the
business name on
the second name line.)
Chart 2. Guidelines for Employer Identification Numbers
In the Taxpayer
Identification
Number Field of In the First Payee
the Payee “B” Name Line of the
For this type Record, enter thePayee “B” Record,
of account- EIN of-enter the name of-
1.A valid trust, estate, The legal entityThe legal trust, estate,
or pension trust or pension trust
2.Corporate The corporationThe corporation
3.Association, club, The organizationThe organization
religious, charitable,
educational, or other
tax-exempt organization
4.Partnership account The partnershipThe partnership
held in the name of the
business
5.A broker orThe broker orThe broker or
registered nominee/ nominee/middlemannominee/middleman
middleman
6.Account with The public entityThe public entity
Department of Agriculture
May 21, 200112142001–21 I.R.B.

Chart 2. Guidelines for Employer Identification Numbers (Continued)
In the Taxpayer
Identification
Number Field of In the First Payee
the Payee “B” Name Line of the
For this type Record, enter thePayee “B” Record,
of account- EIN of-enter the name of-
in the name of a public
entity (such as a state
or local government,
school district, or
prison) that receives
agricultural program
payments
7.Sole proprietorshipThe business ownerThe owner, not the
(An EIN or SSN)business name (The filer may enter the
business name on the second name line.)
Sec. 15. Effect on Paper Returns and Statements to Recipients
.01Magnetic/electronic reporting of information returns eliminates the need to submit paper documents to the IRS. CAUTION:
Do not send Copy A of the paper forms to IRS/MCC for any forms filed on magnetic media or electronically.This will result
in duplicate filing; therefore, erroneous notices could be generated.
.02Payers are responsible for providing statements to the payees as outlined in the 2001 “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 specifi-
cations and guidelines in Publication 1179, “Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099,
5498, and W-2G.”
Sec. 16. Combined Federal/State Filing Program
.01 The Combined Federal/State Filing (CF/SF) Program was established to simplify information returns filing for the taxpayer.
IRS/MCC will forward this information to participating states free of charge for approved filers. Separate reporting to those states is
not necessary. The following information returns may be filed under the Combined Federal/State Filing Program:
Form 1099-DIV --------------Dividends and Distributions
Form 1099-G -----------------Certain Government and Qualified State Tuition Program Payments
Form 1099-INT --------------Interest Income
Form 1099-MISC ------------Miscellaneous Income
Form 1099-OID --------------Original Issue Discount
Form 1099-PATR ------------Taxable Distributions Received From Cooperatives
Form 1099-R -----------------Distributions From Pensions, Annuities, Retirement or Profit-Sharing
Plans, IRAs, Insurance Contracts, etc.
Form 5498 --------------------IRA Contribution Information
The following information returns may notbe filed under this program:
Form 1098 --------------------Mortgage Interest Statement
Form 1098-E------------------Student Loan Interest Statement
Form 1098-T------------------Tuition Payments Statement
Form 1099-A -----------------Acquisition or Abandonment of Secured Property
Form 1099-B -----------------Proceeds From Broker and Barter Exchange Transactions
Form 1099-C -----------------Cancellation of Debt
Form 1099-LTC --------------Long-Term Care and Accelerated Death Benefits
Form 1099-MSA ------------- Distributions From an MSA or Medicare+Choice MSA
Form 1099-S------------------Proceeds From Real Estate Transactions
Form 5498-MSA- ------------MSA or Medicare+Choice MSA Information
Form W-2G ------------------Certain Gambling Winnings
2001–21 I.R.B.1215May 21, 2001

.02To request approval to participate, a magnetic media test file coded for this program mustbe submitted to IRS/MCC between
November l, 2001, and December 17, 2001. Electronic test files coded for this program must be submitted between November 1,
2001, and February 15, 2002.
.03 Attach a letter to the Form 4804 submitted with the test file to indicate a desire to participate in the Combined Federal/State
Filing Program. Test files sent electronically do not require the 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 will be sent to the filer.
.04A test file is only required for the first year. Each record, both in the test and the actual data file, must conform to this Revenue Procedure.
.05If the test file is acceptable, IRS/MCC will send the filer an approval letter, and a Form 6847, Consent for Internal Revenue
Service to Release Tax Information, which the payer mustcomplete, sign, and return to IRS/MCC before any tax information can
be released to the state. Filers must write their TCC on Form 6847.
.06If the test file is not acceptable, IRS/MCC will return the media with a letter indicating the problems. Electronic filers must
dial back within two days to the FIRE System to check the acceptability of their test file. The new test file must be returned to
IRS/MCC no later than December 17 for magnetic media, or February 15 for an electronically filed test.
.07A separate Form 6847 is requiredfor each payer. A transmitter may not combine payers on one Form 6847 even if acting as
Attorney-in-Fact for several payers. Form 6847 may be computer-generated as long as it includes all information that is on the orig-
inal form or it may be photocopied. If the Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must
clearly indicate that the Attorney-in-Fact is empowered to authorize release of the information.
.08Only code the records for participating states and for those payers who have submitted Form 6847.
.09Some participating states require separate notification that the payer is filing in this manner. Since IRS/MCC acts as a for-
warding agent only, it is the payer’s responsibility to contact the appropriate states for further information.
.10All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states.
.11Participating states and corresponding valid state codes are listed in Table 1of this section. The appropriate state code must
be entered for those documents that meet the state filing requirements;do not use state abbreviations.
.12To simplify filing, some of the participating states have provided their information return reporting requirements (see Table
2). Each state’s filing requirements are subject to change by the state. It is the payer’s responsibility to contact the participating
states to verify the criteria provided in this table.
.13Upon submission of the actual files, the transmitter must be sure of the following:
(a)All records must be coded exactly as required by this Revenue Procedure.
(b)The “C” Record must befollowed by a State Totals “K” Record for each state being reported.
(c)Payment amount totals and the valid participating state code must be included in the State Totals “K” Record.
(d)The last “K” Record must befollowed by an “A” Record or an End of Transmission “F” Record (if this is the last record of
the entire file).
Table 1. Participating States and Their Codes
StateCode State Code StateCode
Alabama 01 Hawaii 15 Mississippi 28
Arizona 04 Idaho 16 Missouri29
Arkansas 05 Indiana 18Montana 30
California 06 Iowa 19New Jersey 34
Connecticut08Kansas 20New Mexico 35
Delaware 10 Maine 23North Dakota 38
District of Columbia 11 Massachusetts 25South Carolina45
Georgia 13Minnesota27Wisconsin 55
Table 2. Dollar Criteria for State Reporting
1099-1099-1099-1099- 1099- 1099-1099-
STATEDIVGINTMISC OID PATR R5498
Alabama $1500$ NR $1500$1500$1500 $1500 $1500 NR
Arkansas100 2500 100 25002500 25002500
a
Connecticut NRNRNR
a
NRNR
a
NR
District of
Columbia
b
10 10 10 6001010 600NR
Hawaii 10
a
1060010 10 600 NR
Idaho NR NR NR 600NR NR
a a
Iowa 10 10 10600 101010
a
Minnesota101010600 1010600
a
Mississippi 600600600600600600600NR
May 21, 200112162001–21 I.R.B.

Table 2. Dollar Criteria for State Reporting (Continued)
1099-1099-1099-1099- 1099- 1099-1099-
STATEDIVGINTMISC OID PATR R5498
Missouri NRNR NR1200
c
NRNRNR NR
Montana 10 10 10 600 1010 600
a
New Jersey 100010001000 10001000 1000 1000 NR
Wisconsin NR NR NR 600 NR NR600NR
The preceding list is for information purposes only. The state filing requirements are subject to change by the states. For com-
plete information on state filing requirements, contact the appropriate state tax agencies.
Filing requirements for states in TABLE 1 not shown in TABLE 2 may be the same as the federal requirement.
NR = No filing requirement.
Footnotes:
a All amounts are to be reported.
b Amounts are for aggregates of several types of income from the same payer.
c Missouri would prefer those returns filed with respect to non-Missouri residents to be sent directly to its state agency.
Sec. 17. Definition of Terms
ElementDescription
Asynchronous Protocols This type of data transmission is most often used by microcomputers, PCs and some
minicomputers.
Asynchronous transmissions transfer data at arbitrary time intervals using the start-
stop method. Each character transmitted has its own start bit and stop bit.
ATINA temporary taxpayer identification number assigned to a child who has been
placed by an authorized placement agency in the household of a prospective adop-
tive parent prior to adoption. When the adoption becomes final, the adoptive par-
ent must apply for a social security number for the child.
b/Denotes a blank position. Enter blank(s) when this symbol is used (do not enter the
letter “b”). This appears in numerous areas throughout the record descriptions.
CorrectionA correction is an information return submitted by the transmitter to correct an
information return that was previously submitted to and processed by IRS/MCC,
but contained erroneous information.
CUSIP NumberA number developed by the Committee on Uniform Security Identification
Procedures to serve as a common denominator in communications among users for
security transactions and security information.
Employer Identification A nine-digit number assigned by IRS for Federal tax reporting purposes.
Number (EIN)
Electronic Filing Submission of information returns using switched telecommunications network cir-
cuits. These transmissions use modems, dial-up phone lines, and asynchronous pro-
tocols. See Parts A and C of this publication for specific information on electronic
filing.
FileFor purposes of this Revenue Procedure, a file consists of one Transmitter “T”
Record at the beginning of the file, followed by a Payer “A” Record, Payee “B”
Records, and an End of Payer “C” Record after each set of “B” Records. The last
record on the file will be the End of Transmission “F” Record. Nothing should be
reported after the End of Transmission “F” Record. A file format diagram is locat-
ed at the end of Part E, Miscellaneous Information just before the mail labels.
FilerPerson (may be payer and/or transmitter) submitting information returns to IRS.
Filing YearThe actual year in which the information returns are being submitted to IRS.
Golden Parachute PaymentA payment made by a corporation to a certain officer, shareholder, or highly com-
pensated individual when a change in the ownership or control of the corporation
2001–21 I.R.B.1217May 21, 2001

ElementDescription
occurs or when a change in the ownership of a substantial part of the corporate
assets occurs.
Incorrect TaxpayerA TIN may be incorrect for several reasons:
Identification Number(a) The payee provided a wrong number or name (e.g., the payee is listed as the
(Incorrect TIN) only owner of an account but provided someone else’s TIN).
(b) A processing error (e.g., the number or name was typed incorrectly).
(c) The payee’s status changed (e.g., a payee name change was not reported to the
IRS or SSA).
Individual TaxpayerA nine-digit number issued by IRS to individuals who are required to have a U.S.
Identification Numbertaxpayer identification number but are not eligible to obtain a social security number
(ITIN)(SSN).
Information ReturnThe vehicle for submitting required information about another person to IRS.
Information returns are filed by financial institutions and by others who make certain
types of payments as part of their trade or business. The information required to be
reported on an information return includes interest, dividends, pensions, nonemployee
compensation for personal services, stock transactions, sales of real estate, mortgage
interest, and other types of information. For this Revenue Procedure, an information
return is a Form 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-DIV, 1099-G,
1099-INT, 1099-LTC, 1099-MISC, 1099-MSA, 1099-OID, 1099-PATR, 1099-R,
1099-S, 5498, 5498-MSA or W-2G.
ISDN - Integrated Services ISDN’s basic service is Basic Rate Interface (BRI) which is made up of two 64Kbps B
Digital Networkchannels and one 16Kbps D Channel. If both channels are combined into one,
called bonding, the total data rate becomes 128KPBS and is 4 1/2 times the band-
width of a 28.8 modem.
Magnetic Media For this Revenue Procedure, the term “magnetic media” refers to 1/2 inch magnet-
ic tape, IBM 3480, 3490, 3490E, 3590, 3590E, AS400 compatible tape cartridge
(including 8mm, 4mm, and QIC), or 3 1/2-inch diskette.
*Note: Beginning in calendar year 2003 for Tax Year 2002, 9 track magnetic tape will no longer be an acceptable type of
media for submitting Information Returns to IRS/MCC.
Media Tracking SlipForm 9267 accompanies correspondence sent by IRS/MCC requesting a replace-
(Form 9267)ment file due to incorrect format or errors encountered when trying to process the
media. This must be returned with the replacement file.
Missing TaxpayerThe payee TIN on an information return is missing if:
Identification Number(a) there is no entry in the TIN field, (Missing TIN)
(b) it includes one or more alpha characters (a character or symbol other than an
Arabic number) as one of the nine digits, OR
(c) the payee TIN has less than nine digits.
PS 58 Costs The current cost of life insurance under a qualified plan taxable under section 72(m)
and Regulations section 1.72-16(b). (See Part B, Sec.10(15) Payee “B” Record,
Distribution Code, Category of Distribution, Code 9.)
PayeePerson or organization receiving payments from the payer, or for whom an infor-
mation return must be filed. The payee also includes a student (Form 1098-T), bor-
rower (Forms 1098, 1098-E, and 1099-A), a debtor (Form 1099-C), a policyholder
or insured (Form 1099-LTC), any IRA plan participant (Form 5498) or MSA or
Medicare+Choice MSA participant (Form 5498-MSA), and a gambling winner
(Form W-2G). For Form 1099-S, the payee is the seller or other transferor.
PayerIncludes the person making payments, a recipient of mortgage or student loan inter-
est 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 reason
to know that the property has been abandoned. The payer will be held responsible
for the completeness, accuracy, and timely submission of magnetic/electronic files.
May 21, 200112182001–21 I.R.B.

ElementDescription
PIN - Personal IdentificationThis number is assigned by the user when the logon name and password is established.
NumberEach time the file is sent, the user will be prompted to enter the PIN. The PIN will
allow IRS/MCC to release the file for processing and replaces the Form 4804.
ReplacementA replacement is an information return file sent by the filer at the request of IRS/MCC
because of errors encountered while processing the filer’s original submission.
*Note 1: Filers should never submit media to IRS/MCC marked “Replacement” unless IRS/MCC has requested a
replacement file in writing or via the FIRE System. When sending a magnetic media “Replacement” file, be sure to include
the Media Tracking Slip (Form 9267). Media that has been incorrectly marked as Replacement may result in duplicate
filing.
*Note 2: IRS/MCC is no longer returning problem media in need of replacement.
Service BureauPerson or organization with whom the payer has a contract to prepare and/or sub-
mit information return files to IRS/MCC. A parent company submitting data for a
subsidiary is not considered a service bureau.
Social Security Number A nine-digit number assigned by SSA to an individual for wage and tax reporting
(SSN)purposes.
Special CharacterAny character that is nota numeric, an alpha, or a blank.
SSASocial Security Administration.
Taxpayer Identification Refers to either an Employer Identification Number (EIN), Social Security Number
Number (TIN) (SSN), Individual Taxpayer Identification Number (ITIN), or Adoption Taxpayer
Identification Number (ATIN).
Tax YearGenerally, the year in which payments were made by a payer to a payee.
Transfer AgentThe transfer agent, or paying agent, is the entity who has been contracted or autho-
rized by the payer to perform the services of paying and reporting backup with-
holding (Form 945).
Transmitter Refers to the person or organization submitting file(s) magnetically/electronically.
The transmitter may be the payer or agent of the payer.
Transmitter Control Code Afive character alpha/numeric number assigned by IRS/MCC to the transmitter prior to
(TCC)actually filing magnetically or electronically. This number is inserted in the
Transmitter “T” Record of the file and must be present before the file can be
processed. An application Form 4419 must be filed with IRS/MCC to receive this
number.
VendorVendors include service bureaus that produce information return files on the pre-
scribed types of magnetic media or via electronic filing for payers. Vendors also
include companies who provide software for payers who wish to produce their own
media or electronic files.
Sec. 18. State Abbreviations
.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.
State CodeState Code State Code
Alabama ALKentucky KYOhioOH
Alaska AK LouisianaLAOklahomaOK
American Samoa AS Maine ME OregonOR
Arizona AZMarshall IslandsMHPennsylvaniaPA
ArkansasAR MarylandMDPuerto RicoPR
CaliforniaCAMassachusettsMARhode IslandRI
2001–21 I.R.B.1219May 21, 2001

State CodeState Code State Code
ColoradoCOMichiganMISouth CarolinaSC
Connecticut CTMinnesota MN South Dakota SD
Delaware DE Mississippi MS TennesseeTN
District of Columbia DC Missouri MO Texas TX
Federated States ofMontana MTUtah UT
MicronesiaFMNebraska NE VermontVT
Florida FLNevada NVVirginia VA
Georgia GANew HampshireNH (U.S.) Virgin Islands VI
Guam GU New Jersey NJ WashingtonWA
Hawaii HI New MexicoNM West Virginia WV
Idaho ID New York NYWisconsinWI
Illinois ILNorth Carolina NC Wyoming WY
Indiana IN North DakotaND
Iowa IANorthern
Kansas KS Mariana Islands MP
.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
Payee CityAPO (or FPO)
Payee StateAE, AA, or AP*
Payee ZIP Code 098010100
*AE is the designation for ZIPs beginning with 090-098, AA for ZIP 340, and AP for ZIPs 962-966.
Sec. 19. Major Problems Encountered
IRS/MCC encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This may
eliminate the need for IRS/MCC to request replacement files. This may be important for those payers who have either had their files
prepared by a service bureau or who have purchased preprogrammed software packages.
Filers who engage a service bureau to prepare media on their behalf should be careful not to report duplicate data which
may generate penalty notices.
The Major Problems Encountered lists some of the most frequently encountered problems with magnetic/electronic files submit-
ted to IRS/MCC. These problems may result in IRS/MCC requesting replacement files. Some of the problems resulted from not
referring to this publication for instructions.
1. Incorrect Format
•No Transmitter “T” Record - These files began with a Payer “A” Record. All files mustbegin with a Transmitter “T” Record.
•Invalid record length - Records not 750 Positions in length.
•Multiple Files on diskettes - Filers sending multiple files on diskettes. Please refer to Part B, Section 5. A file consists
of one Transmitter “T” Record followed by a Payer “A” Record, Payee “B” Records, End of Payer “C” Record, State
Totals “K” Record (if applicable for CF/SF Program), and the End of Transmission “F” Record. A file can contain mul-
tiple Payer “A” Records, but, only one Transmitter “T” Record. A file format diagram is located at the end of Part E,
Miscellaneous Information just before the mail labels.
IRS/MCC continues to receive prior year data in prior year format instead of current year format. Never send prior year data in prior
year format. Be sure to use the current Revenue Procedure (Publication 1220)for formatting data for prior years.
May 21, 200112202001–21 I.R.B.

2. No Form 4804, Transmittal of Information Returns Reported Magnetically
Each shipment of media sent to IRS/MCC must include a Form 4804. More than one type of media may be sent in the same ship-
ment, (i.e., a tape, a diskette, or a tape cartridge) but must have a separate Form 4804 to accompany each type of media. In the fol-
lowing example, three separate Forms 4804 would be required in the total shipment. However, multiples of one type of media (i.e.,
6 diskettes) may be covered by one Form 4804.
EXAMPLE:
A & B Company sends in one shipment of the following magnetic media:
2 Diskettes = 1 Form 4804 covers both diskettes
3 Tape Cartridges= 1 Form 4804 covers all three cartridges
Total Number of Forms 4804 for the above shipment = 2 Forms 4804
*Note: Form 4804 is no longer needed for electronic filing.
3. Discrepancy Between IRS/MCC Totals and Totals in Payer “C” Records
The “C” Record is a summary record for a type of return for a given payer as reported in the “B” Records. IRS balances the total
number of payees and payment amounts and compares them with totals in the “C” Records. Filers should verify the accuracy of the
records because imbalances may necessitate a request for replacement files.
4. The Payment Amount Fields in the “B” Record Do Not Correspond to the Amount Codes in the “A” Record
If codes 2, 4, and 7 appear in the Amount Codes Field of the “A” Record, then the “B” Record must show payment amounts in only
Payment Amount Fields 2, 4, and 7, right-justified and unused positions must bezero (0) filled.
EXAMPLE: “A” RECORD247b/b/b/b/b/b/b/b/b/ —-(b/ denotes a blank)
(Pos. 28-39)
“B” RECORD000000867599—-(Payment Amount 2)
(Pos. 67-78)
000000709097—-(Payment Amount 4)
(Pos. 91-102)
000000044985—-(Payment Amount 7)
(Pos. 127-138)
5. Blanks or Invalid Characters Appear in Payment Amount Fields in the “B” Record
Money amounts must be right-justified and zero (0) filled. Do not use blanks.
6. Incorrect TIN in Payer “A” Record
The Payer’s TIN reported in positions 12-20 of the “A” Record must be nine numeric characters (no alphas or special characters) in
order for IRS/MCC to process the media. The TIN provided in the “A” Record must correspond with the name provided in the first
payer name line.
7. Incorrect Tax Year in the Transmitter “T” Record, Payer “A” Record and the Payee “B” Record
The tax year in the transmitter, payer and payee records should reflect the year of the information being reported. Filers need to
check their files to ensure this information is correct.
8. Incorrect Reporting of Form W-2 Information to IRS
Form W-2 information is submitted to SSA, and not to IRS/MCC. SSA has its own magnetic media reporting program and speci-
fications for wage information, and the media containing Forms W-2 is submitted to SSA. Any media received at IRS/MCC that
contains Form W-2 information will be forwarded to SSA. The filer will be notified of this action by letter. To inquire about
filing Form W-2 information magnetically, call 1-800-SSA-6270.
9. Excessive Withholding Credits
Generally, for most information returns, other than Forms 1099-MISC, 1099-R, and W-2G, Federal withholding amounts should not
exceed 31 percent (backup withholding rate) of the income reported. Validate the total reported in the withholding field against the
total income reported.
2001–21 I.R.B.1221May 21, 2001

10. Incorrect Format for TINs in the Payee “B” Record
A check of “B” records should be made to ensure the Taxpayer Identification Numbers (TINs) are formatted correctly. There should
be nine numerics, no alphas, hyphens, commas, or blanks. Incorrect formatting of TINs may result in a penalty.
IRS/MCC contacts filers who have submitted payee data with missing TINs in an attempt to prevent errors that could result in penal-
ties. Payers/transmitters who submit data with missing TINs, and have taken the required steps to obtain this information are encour-
aged to attach a letter of explanation to the required Form 4804. This will prevent unnecessary contact from IRS/MCC. This letter,
however, will not prevent backup withholding notices (CP2100 and CP2100A Notices) or proposed penalties (Notices 972CG) for
missing or incorrect TINs. For penalty information, refer to the Penalty section of the 2001 “General Instructions for Forms 1099,
1098, 5498, and W-2G.”
11. Distribution Codes for Form 1099-R Reported Incorrectly
Distribution codes for Form 1099-R are being reported incorrectly or are not being reported. See valid distribution codes for Form
1099-R in the Payee “B” Record Layout, Field Positions 545-546.
12. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on the Form 4804 (Block 11) are used in the verification process of information returns.
The figure in this block should be the total number of Payee “B” Records contained on the media submitted with the Form 4804.
The figures on the Form 4804 are compared against the total number of Payee “B” Records processed on the media. Imbalances
may necessitate a request for a replacement file.
13. Invalid Use of IRA/SEP/SIMPLE Indicator (Form 1099-R)
The IRA/SEP/SIMPLE indicator for Form 1099-R should be used for the reporting of a distribution from a traditional
IRA/SEP/SIMPLE or a Roth conversion. The total amount distributed from a traditional IRA/SEP/SIMPLE or a Roth conversion
should be reported in Payment Amount Field A as well as Payment Amount Field 1.
14. Failure To Identify the Rollover Contributions and/or Fair Market Value of the Account for Form 5498.
Rollover contributions (Amount Code 2 of the “A” Record) and/or fair market value of the account (Amount Code 5 of the “A”
Record) for Form 5498 must be identified as an IRA (position 547 of the “B” Record), SEP (position 548 of the “B” Record), SIM-
PLE (position 549 of the “B” Record), Roth IRA (position 550 of the “B” Record), or Education IRA (position 552 of the “B”
Record).
15. Media Received Without Data
Transmitters/filers should verify the presence of Form 1099 information returns on the media before sending the shipment to
IRS/MCC.
Part B. Magnetic Media Specifications
Sec. 1. General
.01The specifications contained in this part of the Revenue Procedure define the required format and contents of the records to
be included in the magnetic media/electronic file.
.02A provision is made in the “B” Records for entries which are optional. If the field is not used, enter blanks to maintain a fixed
record length of 750 positions. Each field description explains the intended use of specific field positions.
.03Transmitters should be consistent in the use of recording codes and density on files. If the media does not meet these speci-
fications, IRS/MCC will request a replacement file. Filers are encouraged to submit a test prior to submitting the actual file. Contact
IRS/MCC for further information at 304-263-8700.
Sec. 2. Tape Specifications
*Note: Beginning in calendar year 2003 for Tax Year 2002, 9 track magnetic tape will no longer be an acceptable method
for submitting Information Returns to IRS/MCC.
.01IRS/MCC can process most magnetic tape files if the following specifications are followed:
(a)9 track EBCDIC (Extended Binary Coded Decimal Interchange Code) with:
(1)Odd parity.
May 21, 200112222001–21 I.R.B.

(2) A density of 1600 or 6250 BPI.
(3)If transmitters use UNISYS Series 1100, they must submit an interchange tape.
(b)9 track ASCII (American Standard Coded Information Interchange) with:
(1)Odd parity.
(2)A density of 1600 or 6250 BPI.
.02All compatible tape files must have the following characteristics: Type of tape - 1/2-inch (12.7 mm) wide, computer-grade
magnetic tape on reels of up to 2,400 feet (731.52 m) within the following specifications:
(a)Tape thickness: 1.0 or 1.5 mils and
(b)Reel diameter: 10 1/2-inch (26.67 cm), 8 1/2-inch (21.59 cm), 7-inch (17.78 cm), or 6-inch.
.03The tape records defined in this Revenue Procedure may be blocked subject to the following:
(a)A block must notexceed 32,250 tape positions.
(b)If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; how-
ever, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c)All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of log-
ical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item (b) above). The block length must be evenly divisible by 750.
(d) Records may not span blocks.
.04Labeled or unlabeled tapes may be submitted.
.05For the purposes of this Revenue Procedure the following must be used:
Tape Mark:
(a) Signifies the physical end of the recording on tape.
(b)For even parity, use BCD configuration 001111 (8421).
(c)May follow the header label and precede and/or follow the trailer label.
.06IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-
mark, but mustend with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
Sec. 3. Tape Cartridge Specifications
.01In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a)Must be IBM 3480, 3490, 3490E, 3590, 3590Eor AS400 compatible.
(b)Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1)Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by
1-inch in dimension.
(2)Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3)Cartridges must be 18-track, 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 Informa-
tion Interchange) may be used.
.02The tape cartridge records defined in this Revenue Procedure may be blocked subject to the following:
(a)A block must notexceed 32,250 tape positions.
(b)If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; how-
ever, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c)All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of log-
ical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item (b) above). The block length must be evenly divisible by 750.
(d)Records may not span blocks.
.03Tape cartridges may be labeled or unlabeled.
.04For the purposes of this Revenue Procedure, the following must be used:
Tape Mark:
(a)Signifies the physical end of the recording on tape.
(b)For even parity, use BCD configuration 001111 (8421).
(c)May follow the header label and precede and/or follow the trailer label.
*Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 18-track,
36-track, 128-track or 256-track.
2001–21 I.R.B.1223May 21, 2001

Sec. 4. 8mm, 4mm, and Quarter-Inch Cartridge Specifications
.01In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a)Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1)Created from an AS400 operating system only.
(2)8mm (.315-inch) tape cartridges will be 2 1/2-inch by 3 3/4-inch.
(3)The 8mm tape cartridges must meet the following specifications:
TracksDensityCapacity
120 (43245 BPI)2.3 Gb
121 (45434 BPI)5 Gb
(4) Mode will be full function.
(5)Compressed data is not acceptable.
(6)Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Informa-
tion Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on
the external media label affixed to the cartridge.
(7)A file may consist of more than one cartridge; however, no more than 250,000 documents may be transmitted per file or
per cartridge. The filename, for example, IRSTAX, will contain a three digit extension. The extension will indicate the
sequence of the cartridge within the file (e.g., 1 of 3, 2 of 3, and 3 of 3 will appear in the header label as IRSTAX.001,
IRSTAX.002, and IRSTAX.003 on each cartridge of the file). The Transmitter “T” Record must only appear on the
first cartridge. The End of Transmission “F” Record should be placed only on the last cartridge for files containing mul-
tiple cartridges.
.02The 8mm (.315-inch) tape cartridge records defined in this Revenue Procedure may be blocked subject to the following:
(a) A block must notexceed 32,250 tape positions.
(b)If the use of blocked records would result in a short block, the last block of the file may be filled with 9s or truncated.
(c)All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of log-
ical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item (b) above). The block length must be evenly divisible by 750.
(d) Various COPY commands have been successful; however, the SAVE OBJECT COMMANDis not acceptable.
(e)Extraneous data following the “F” Record will result in IRS/MCC requesting a replacement file.
(f)Records may not span blocks.
(g)No more than 250,000 documents per cartridge and per file.
*Note: Advanced Metal Evaporated (AME) cartridges are not acceptable.
.03For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSTAX may be used as a sug-
gested filename.
.04For the purposes of this Revenue Procedure, the following must be used:
Tape Mark:
(a)Signifies the physical end of the recording on tape.
(b)For even parity, use BCD configuration 001111 (8421).
(c)May follow the header label and precede and/or follow the trailer label.
.05If extraneous data follows the End of Transmission “F” Record, IRS/MCC will request a replacement file. Therefore,
IRS/MCC encourages transmitters to use blank tape cartridges, rather than cartridges previously used, in the preparation of data
when submitting information returns.
.06IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-
mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.074mm (.157-inch) cassettes are now acceptable with the following specifications:
(a)4mm cassettes will be 2 1/4-inch by 3-inch.
(b) The tracks are 1 (one).
(c)The density is 19 (61000 BPI).
(d)The typical capacity is DDS (DAT data storage) at 1.3 Gb (60 meter) or 2 Gb (90 meter), or DDS-2 at 4Gb (120 meter).
(e)The general specifications for 8mm cartridges also apply to the 4mm cassettes.
*Note: 4mm cassettes with a capacity of DDS-3 (125 meter) are not acceptable.
.08Various Quarter-Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(a)QIC cartridges will be 4” by 6”.
(b)QIC cartridges must meet the following specifications:
May 21, 200112242001–21 I.R.B.

SizeTracksDensityCapacity
QIC-248/95 (8000 BPI)45Mb or 60Mb
QIC-1201515 (10000 BPI) 120Mb or 200Mb
QIC-1501816 (10000 BPI) 150Mb or 250Mb
QIC-5252617 (16000 BPI) 525Mb
QIC-10003021 (36000 BPI)1Gb
QIC-2Gb4234 (40640 BPI) 2Gb
(c)The general specifications that apply to 8mm cartridges also apply to QIC cartridges.
Sec. 5. 3 1/2-Inch Diskette Specifications
.01To be compatible, a diskette file must meet the following specifications:
(a)3 1/2-inches in diameter.
(b)Data mustbe recorded in standard ASCII code.
(c)Records must be a fixed length of 750 bytes per record.
(d)Delimiter character commas (,) must not be used.
(e)Positions 749 and 750 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
(f)Filename of IRSTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette,
the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the diskettes within
the file. For example, if the file consists of three diskettes, the first diskette will be named IRSTAX.001, the second will be
IRSTAX.002, and the third will be IRSTAX.003. The first diskette, IRSTAX.001 will begin with a “T” Record and the
third diskette, IRSTAX.003 will have an “F” Record at the end of the file.
(g) A diskette will not contain multiple files as defined in Part A, Section 17. A file may have only ONE Transmitter “T”
Record.
(h)Failure to comply with instructions will result in IRS/MCC requesting a replacement file.
(i)Diskettes must meet one of the following specifications:
CapacityTracksSides/DensitySector Size
1.44 mb96tpihd512
1.44 mb135tpi hd 512
1.2 mb96tpi hd 512
.02IRS/MCC encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data fol-
lows the End of Transmission “F” Record, IRS/MCC will request a replacement file.
.03IRS/MCC will onlyaccept 3 1/2-inch diskettes created using MS-DOS.
.04 3 1/2-inch diskettes created on a System 36 or AS400 are notacceptable.
.05 Transmitters should check media for viruses before submitting it to IRS/MCC.
Sec. 6. Transmitter “T” Record - General Field Descriptions
.01 The Transmitter “T” Record identifies the entity transmitting the magnetic media/electronic file and contains information
which is supplied on the Form 4804, Transmittal of Information Returns Reported Magnetically. The “T” Record has been created
to facilitate current magnetic/electronic processing of information returns at IRS/MCC.
.02The Transmitter “T” Record is the first record on each file and is followed by a Payer “A” Record. See Part A, Sec. 17,
Definition of Terms, for the definition of file. A file format diagram is located at the end of Part E, Miscellaneous Information, just
before the mail labels. A replacement file will be requested by IRS/MCC if the “T” Record is not present. For transmitters with
multiple diskettes, refer to Sec. 5, 3 1/2-Inch Diskette Specifications.
.03No money or payment amounts are reported in the Transmitter “T” Record.
.04For all fields marked “Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked “Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the
indicated field positions and for the indicated length.
.05 All records must be a fixed length of 750 positions.
.06 The Transmitter “T” Record must be followed by the Payer “A” Record, which must be followed with Payee “B” Records;
however, the initial record on each file must be a Transmitter “T” Record.
.07 All alpha characters entered in the “T” Record must be upper-case.
2001–21 I.R.B.1225May 21, 2001

Record Name: Transmitter “T” Record
Field
PositionField TitleLengthDescription and Remarks
1Record Type1Required. Enter “T.”
2-5Payment Year4Required.Enter “2001” (unless reporting prior year data; report
the year which applies [1998, 1999, etc.] and set the Prior Year Data
Indicator in field position 6).
6Prior Year1Required.Enter “P”only if reporting prior year data; otherwise,
Dataenter blank.
IndicatorDo not enter a “P” if tax year is2001.
7-15Transmitter’s9Required. Enter the transmitter’s nine-digit Taxpayer Identification
TINNumber. May be an EIN, SSN, or ITIN.
16-20Transmitter5Required.Enter the five character alpha/numeric Transmitter
Control CodeControl Code (TCC) assigned by IRS/MCC. A TCC must be
obtained to file data within this program.
21-22Replacement Alpha 2Required for replacement files only.Enter the alpha/numeric character
Characterwhich appears immediately following the TCC number on the Media
Tracking Slip (Form 9267). The Form 9267 accompanies corre-
spondence sent by IRS/MCC when files can not be processed. This
field must be blank unless a replacement file has been requested. If
the file is being replaced magnetically, information is required in this
field. If the file was originally sent magnetically, but the replacement
is being sent electronically, the information is required in this field.
Otherwise, leave blank for electronic files. Left-justify information
and fill unused positions with blanks. If this is not a replacement file,
enter blanks.
23-27Blank5Enter blanks.
28Test File Indicator1Required for test files only.Enter a “T” if this is a test file; other-
wise, enter a blank.
29 Foreign Entity Indicator 1Enter a “1” (one) if the transmitter is a foreign entity. If the trans-
mitter is not a foreign entity, enter a blank.
30-69Transmitter Name40Required.Enter the name of the transmitter in the manner in which
it is used in normal business. Left-justify and fill unused positions
with blanks.
70-109Transmitter Name40Enter any additional information that may be part of the name. Left
(Continuation)justify information and fill unused positions with blanks.
110-149 Company Name40Required.Enter the name of the company to be associated with the
address where correspondence should be sent.
150-189Company Name40Enter any additional information that may be part of the name of
(Continuation)the company where correspondence should be sent.
190-229Company Mailing40Required.Enter the mailing address where correspondence should
Addressbe sent.
*Note: Any correspondence relating to problem media or electronic files will be sent to this address.
230-269Company City40Required. Enter the city, town, or post office where correspon-
dence should be sent.
270-271Company State2Required. Enter the valid U. S. Postal Service state abbreviation.
Refer to the chart of valid state codes in Part A, Sec.18.
May 21, 200112262001–21 I.R.B.

Record Name: Transmitter “T” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
272-280Company 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.
281-295Blank15Enter blanks
296-303Total Number 8Enter the total number of Payee “B” Records reported in the file.
of PayeesRight-justify information and fill unused positions with zeros.
304-343Contact Name 40Required.Enter the name of the person to be contacted if IRS/MCC
encounters problems with the file or transmission.
344-358Contact Phone15Required.Enter the telephone number of the person to contact
Number & Extension regarding magnetic/electronic files. Omit hyphens. If no extension
is available, left-justify information and fill unused positions with
blanks. For example, the IRS/MCC Call Site phone number of 304-
263-8700 with an extension of 52345 would be 304263870052345.
359-360Magnetic Tape File2Required for magnetic tape/tape cartridge filers only.Enter the
Indicator letters “LS” (in uppercase only). Use of this field by filers using
other types of media will be acceptable but is not required.
361-375Electronic File Name For15Required.Use for an electronic file which “FILE STATUS” has
a Replacement Fileindicated was rejected. Enter the ORIGINAL or CORRECTION
electronic file name assigned by the IRS electronic FIRE system.
EXAMPLE: If you have sent an original file, the TCC is 44444 and it is your first original file, then the filename would be
ORIG.44444.0001
If you are sending an original, correction, or test file, enter blanks.
376Vendor Indicator1Required. Enter the appropriate code from the table below to indi-
cate if your software was provided by a vendor or produced in-
house.
IndicatorUsage
VYour software was purchased from a vendor or
other outside source.
IYour software was produced by in-house program-
mers.
*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.
377-416Vendor Name40Required. Enter the name of the company from whom you
purchased your software.
417-456Vendor Mailing40Required.Enter the mailing address.
Address
457-496Vendor City40Required.Enter the city, town, or post office.
497-498Vendor State2Required.Enter the valid U.S. Postal Service state abbre-
viation. Refer to the chart of valid state codes in Part A,
Sec. 18.
499-507Vendor 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.
2001–21 I.R.B.1227May 21, 2001

CompanyCompanyCompanyCompanyBlankTotalContact
Mailing City StateZIPNumberName
Address Codeof Payees
Record Name: Transmitter “T” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
508-547Vendor Contact40Required. Enter the name of the person who can be contacted
Nameconcerning any software questions.
548-562Vendor Contact Phone15Required. Enter the telephone number of the person to contact
Number & Extensionconcerning software questions. Omit hyphens. If no extension is
available, left-justify information and fill unused positions with
blanks.
563-582Vendor Contact20Required.Enter the email address of the person to contact
Email Addressconcerning software questions.
583-748Blank186Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Sec. 7. Transmitter “T” Record - Record Layout
May 21, 200112282001–21 I.R.B.
RecordPaymentPrior YearTransmitter’sTransmitterReplacement
TypeYearDataTIN ControlAlphaBlank
IndicatorCode Character
12-567-1516-2021-2223-27
Test FileForeignTransmitterTransmitterCompanyCompany
IndicatorEntityNameNameNameName
Indicator(Continuation)(Continuation)
Contact MagneticElectronic Vendor VendorVendorVendor
PhoneTape FileFileIndicatorNameMailingCity
Number & IndicatorName For a Address
ExtensionReplacement
File
282930-6970-109110-149 150-189
190-229 230-269270-271 272-280 281-295296-303304-343
344-358359-360361-375376377-416417-456457-496
Vendor Vendor VendorVendor Vendor
StateZIPContactContactContactBlankBlank or
CodeNamePhoneEmailCR/LF
Number & Address
Extension
497-498499-507508-547548-562 563-582583-748749-750

Sec. 8. 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 reason to know that the property has been
abandoned. The payer will be held responsible for the completeness, accuracy, and timely submission of magnetic/electronic files.
The Payer “A” Record also provides parameters for the succeeding Payee “B” Records. IRS computer programs rely on the absolute
relationship between the parameters and data fields in the “A” Record and the data fields in the “B” Records to which they apply.
.02The number of “A” Records depends on the number of payers and the different types of returns being reported. The payment
amounts for one payer and for one type of return should be consolidated under one “A” Record if submitted on the same file.
.03Do not submit separate “A” Records for each payment amount being reported. For example, if a payer is filing Form 1099-
DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one “A” Record, not three separate “A”
Records. For “B” Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no pay-
ment to be reported.
.04When reporting Form 1098, Mortgage Interest Statement, and Form 1098-E, Student Loan Interest Statement, the “A” Record
will reflect the name and TIN of the recipient of the interest payment, (recipient/lender). The “B” Record will reflect the individual
paying the interest (the borrower/payer of record) and the amount paid. When reporting Form 1099-LTC, Long-Term Care and
Accelerated Death Benefits, the Payee Name Line of the “B” Record will reflect the policyholder. The name of the insured will be
reported in Field Positions 557-596 of the Payee “B” Record. For Form 1099-S, Proceeds From Real Estate Transactions, the “A”
Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the “B” Record will reflect
the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the “A” Record will reflect the name and TIN of
the educational institution receiving tuition payments. The “B” Record will reflect the name and TIN of the student on whose behalf
the tuition is being paid. Until regulations are adopted, no penalties will be imposed under IRC sections 6721 or 6722 for failure to
file or furnish correct Forms 1098-E or 1098-T, if you made a good faith effort to file and furnish them.
.05The second record on the file must be an “A” Record. A transmitter may include “B” Records for more than one payer on a
tape or diskette. However, each groupof “B” Records must be preceded by an “A” Record and followed by an End of Payer “C”
Record. A single tape or diskette may contain different types of returns but the types of returns must notbe intermingled. A sepa-
rate “A” Record is required for each payer and each type of return being reported.
.06All records must be a fixed length of 750 positions.
.07The initial record on a file must be a “T” Record followed by an “A” Record. IRS/MCC will accept an “A” Record after a
“C” Record to report an additional payer or a different type of return. An “A” Record may be blocked with “B” Records. A file for-
mat diagram is located at the end of Part E, Miscellaneous Information, just before the mail labels.
.08Do not begin any record at the end of a block or diskette and continue the same record into the next block or diskette.
.09All alpha characters entered in the “A” Record must be upper-case.
.10 For all fields marked“Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked“Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the
indicated media position(s) and for the indicated length.
Record Name: Payer “A” Record
Field
PositionField TitleLengthDescription and Remarks
1Record Type1Required. Enter “A.”
2-5Payment Year4Required. Enter “2001” (unless reporting prior year data; report the
year which applies [1999, 2000, etc.]).
6-11Blank6Enter blanks.
12-20Payer’s9Required.Must be the valid nine-digit Taxpayer Identification
TaxpayerNumber assigned to the payer. Do not enter blanks, hyphens, or
Identificationalpha characters.All zeros, ones, twos, etc., will have the effect
Numberof an incorrect TIN.
(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).
21-24 Payer Name 4The Payer Name Control can be obtained only from the mail label
Controlon the Package 1099 that is mailed to most payers each December.
2001–21 I.R.B.1229May 21, 2001

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
Package 1099 contains Form 7018-C, Order Blank for Forms, and
the mail label on the package contains a four (4) character name con-
trol. If a Package 1099 has not been received or the Payer Name
Control is unknown, this field must be blank filled. 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 posi-
tions with blanks.
25Last Filing1Enter a “1” (one) if this is the last yearthe payer will file; otherwise,
Indicatorenter blank. Use this indicator if the payer will not be filing infor-
mation returns under this payer name and TIN in the future either
magnetically, electronically, or on paper.
26Combined1Required for the Combined Federal/State Filing Program.Enter
Federal/State“1” (one) if participating in the Combined Federal/State Filing Program;
Filerotherwise, enter blank. Refer to Part A, Sec. 16, for further informa-
tion.
27Type of1Required. Enter the appropriate code from the table below:
Return
Type of ReturnCode
10983
1098-E2
1098-T8
1099-A4
1099-BB
1099-C5
1099-DIV1
1099-GF
1099-INT6
1099-LTC T
1099-MISCA
1099-MSAM
1099-OID D
1099-PATR7
1099-R 9
1099-SS
5498 L
5498-MSAK
W-2G W
28-39 Amount12Required. Enter the appropriate amount codes for the type of return
Codesbeing reported. Generally, for each amount code entered in this
(See Note)field, a corresponding payment amount mustappear in the Payee
“B” Record. In most cases, the box numbers on paper information
returns correspond with the amount codes used to file magnetical-
ly/electronically. However, if discrepancies occur, this Revenue
Procedure governs.
May 21, 200112302001–21 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
Example of Amount Codes:
If position 27 of the Payer “A” Record is “A” (for 1099-MISC) and positions 28-39 are “1247ACb/b/b/b/b/b/”, this indicates the payer
is reporting any or all six payment amounts (1247AC) in all of the following “B” Records. (In this example, “b/ ” denotes blanks in
the designated positions. Do not enter the letter “b”.)
The first payment amount field (1) will represent rents;
the second payment amount field (2) will represent royalties;
the third payment amount field (3)will be all “0” (zeros);
the fourth payment amount field (4)will represent Federal income tax withheld;
the fifth and sixth payment amount fields (5 and 6) will be all “0” (zeros);
the seventh payment amount field (7) will represent non-employee compensation;
the eighth and ninth payment amount fields (8 and 9) will be all “0” (zeros);
the tenth payment amount field (A) will represent crop insurance proceeds;
the eleventh payment amount field (B) will be all “0” (zeros); and
the twelfth payment amount field (C) will represent gross proceeds paid to an attorney in connection with legal services.
Enter the amount codes in ascending sequence(i.e., 1247ACb/b/b/b/b/b/ ), left-justify information, and fill unused positions with
blanks. For further clarification of the amount codes, contact IRS/MCC.
* Note: A type of return and an amount code must be present in every Payer “A” Record even if no money amounts are
being reported. For a detailed explanation of the information to be reported in each amount code, refer to the appropriate
paper instructions for each form.
Amount Codes Form 1098-For Reporting Mortgage Interest Received From
Mortgage InterestPayers/Borrowers (Payer of Record) on Form 1098:
Statement
Amount
CodeAmount Type
1Mortgage interest received from
payer(s)/borrower(s)
2Points paid on purchase of principal
residence
3Refund (or credit) of overpaid interest
4Blank (Filer’s use)
Amount Codes Form 1098-E -For Reporting Interest on Student Loans on
Student Loan InterestForm 1098-E
Amount
CodeAmount Type
1Student loan interest received by lender
Amount Codes Form 1098-T-For Reporting Tuition Payments on Form 1098-T:
Tuition Payments
StatementAmount
CodeAmount Type
See the 2001 “Instructions for1Qualified tuition and related expenses
Forms 1098-E and 1098-T”2Reimbursements or refunds
for further Information3Scholarships or grants
Amount Codes Form 1099-A- For Reporting the Acquisition or Abandonment
Acquisition or Abandonmentof Secured Property on Form 1099-A:
of Secured Property
2001–21 I.R.B.1231May 21, 2001

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
Amount
See the 2001 “Instructions forCodeAmount Type
Forms 1099-A and 1099-C”2Balance of principal outstanding
for further information on4 Fair market value of property
coordination with Form 1099-C.
Amount Codes Form 1099-B-For Reporting Payments on Form 1099-B:
Proceeds From
Broker andAmount
Barter ExchangeCodeAmount Type
Transactions2Stocks, bonds, etc. (For forward contracts,
see Note 1.)
3Bartering (Do not report negative
amounts.)
4Federal income tax withheld (backup
withholding) (Do not report negative
amounts.)
6Profit (or loss) realized in 2001
7Unrealized profit (or loss) on open con-
tracts-12/31/2000 (See Note 2.)
8Unrealized profit (or loss) on open con-
tracts-12/31/2001 (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
contracts.
Amount Codes Form 1099-C-For Reporting Cancellation of Debt on Form 1099-C:
Cancellation of Debt
Amount
CodeAmount Type
2Amount of debt canceled
3Interest, if included in Amount Code 2
7Fair market value of property (See Note)
*Note: Use Amount Code 7 only if a combined Form 1099-A and 1099-C is being filed.
Amount Codes Form 1099-DIV-For Reporting Payments on Form 1099-DIV:
Dividends and Distributions
Amount
CodeAmount Type
See the 2001 “Instructions for1Ordinary dividends
Form 1099-DIV”for further2Total capital gains distributions
information.328% rate gain
4Qualified 5-year gain
5Unrecaptured section 1250 gain
6Section 1202 gain
7Nontaxable distributions
8Federal income tax withheld (backup
withholding)
9Investment expenses
May 21, 200112322001–21 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
Amount
CodeAmount Type
AForeign tax paid
BCash liquidation distribution
CNoncash liquidation distribution
Amount Codes Form 1099-G- For Reporting Payments on Form 1099-G:
Certain Government and Qualified
State Tuition Program PaymentsAmount
CodeAmount Type
1Unemployment compensation
2State or local income tax refunds, credits,
or offsets
4Federal income tax withheld (backup
withholding or voluntary withholding on
unemployment compensation or Commo-
dity Credit Corporation Loans, or certain
crop disaster payments)
5Qualified state tuition program earnings
6Taxable grants
7Agriculture payments
Amount Codes Form 1099-INT- For Reporting Payments on Form 1099-INT:
Interest Income
Amount
CodeAmount Type
1Interest income not included in Amount
Code 3
2Early withdrawal penalty
3Interest on U.S. Savings Bonds and
Treasury obligations
4Federal income tax withheld (backup
withholding)
5Investment expenses
6Foreign tax paid
Amount Codes Form 1099-LTC -For Reporting Payments on Form 1099-LTC:
Long-Term Care and
Accelerated Death BenefitsAmount
CodeAmount Type
1Gross long-term care benefits paid
2Accelerated death benefits paid
Amount Codes Form 1099-MISC-For Reporting Payments on Form 1099-MISC:
Miscellaneous Income
(See Note 1)Amount
CodeAmount Type
1Rents
2Royalties (See Note 2)
3Other income
4Federal income tax withheld (backup
withholding or withholding on Indian
gaming profits)
5Fishing boat proceeds
2001–21 I.R.B.1233May 21, 2001

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
Amount
CodeAmount Type
6Medical and health care payments
7Nonemployee compensation
8Substitute payments in lieu of dividends
or interest
ACrop insurance proceeds
BExcess golden parachute payments
CGross proceeds paid to an attorney in
connection with legal services
*Note 1: When using the Direct Sales Indicator in position 547 of the Payee “B” Record, use Type of Return Code A and
Amount Code 1 in 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 Codes Form 1099-MSA-For Reporting Distributions from a Medical
Distributions From an MSA orSavings Account or Medicare+Choice MSA
Medicare+Choice MSAon Form 1099-MSA:
Amount
CodeAmount Type
1Gross distribution
2Earnings on excess contributions
4Fair market value of the account on date
of death
Amount Codes Form 1099-OID- For Reporting Payments on Form 1099-OID:
Original Issue Discount
Amount
See the 2001 “Instructions forCodeAmount Type
Forms 1099-INT and 1099-OID” 1Original issue discount for 2001
for further reporting information.2Other periodic interest
3Early withdrawal penalty
4Federal income tax withheld (backup
withholding)
6 Original issue discount on U.S. Treasury
obligations
7Investment expenses
Amount Codes Form 1099-PATR- For Reporting Payments on Form 1099-PATR:
Taxable Distributions Received From
CooperativesAmount
CodeAmount Type
1Patronage dividends
2Nonpatronage distributions
3Per-unit retain allocations
4Federal income tax withheld (backup
withholding)
5Redemption of nonqualified notices and
retain allocations
Pass-Through Credits
6For filer’s use for pass-through credits
7Investment credit
8Work opportunity credit
May 21, 200112342001–21 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
Pass-Through Credits
9Patron’s alternative minimum tax (AMT)
adjustment
Amount Codes Form 1099-R-For Reporting Payments on Form 1099-R:
Distributions From
Pensions, Annuities, Amount
Retirement or Profit- CodeAmount Type
Sharing Plans, IRAs, 1Gross distribution
Insurance Contracts, etc. 2Taxable amount (See Note 1.)
3Capital gain (included in Amount Code 2)
4Federal income tax withheld
5Employee contributions or insurance
premiums
6Net unrealized appreciation in employ-
er’s securities
8Other
9Total employee contributions
ATraditional IRA/SEP/SIMPLE distribu-
tion 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. For a
traditional IRA, SEP, or SIMPLE distribution, generally enter in Payment Amount Field A the same amount entered in
Payment Amount Field 1.
*Note 2: For Form 1099-R, report the Roth conversion or total amount distributed from an IRA, SEP, or SIMPLE in
Payment Amount Field A (IRA/SEP/SIMPLE distribution or Roth conversion) of the Payee “B” Record, and generally, the
same amount in Payment Amount Field 1 (Gross Distribution). The IRA/SEP/SIMPLE indicator should be set in Field
Position 548 of the Payee “B” Record.
Amount Codes Form 1099-S- For Reporting Payments on Form 1099-S:
Proceeds From
Real Estate Amount
Transactions CodeAmount Type
2Gross proceeds (See Note.)
5Buyer’s part of real estate tax
*Note: Include payments of timber royalties made under a “pay-as-cut” contract, reportable under IRC section 6050N.
If timber royalties are being reported, enter “TIMBER” in the description field of the “B” Record.
Amount Codes Form 5498- For Reporting Information on Form 5498:
IRA Contribution Information
Amount
CodeAmount Type
1IRA contributions (other than amounts in
Amount Codes 2, 3, 4, 8, 9, A, and B)
(SeeNotes 1 and 2.)
2Rollover contributions
3Roth conversion amount
4Recharacterized contributions
5Fair market value of account
6Life insurance cost included in Amount
Code 1
8SEP contributions
9SIMPLE contributions
2001–21 I.R.B.1235May 21, 2001

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
ARoth IRA contributions
BEducation IRA contributions
*Note 1: If reporting IRA contributions for a participant in a military operation, see 2001“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. DO
NOT include EMPLOYER contributions; these are included in Amount Code 8.
Amount Codes Form 5498-MSA-For Reporting Information on 5498-MSA:
MSA or Medicare+Choice MSA
InformationAmount
CodeAmount Type
1Employee or self-employed person’s
MSA contributions made in 2001and
2002for 2001
2Total contributions made in 2001
3Total MSA contributions made in 2002
for 2001
4Rollover contributions (See Note.)
5Fair market value of MSA or M+C MSA
account on December 31, 2001
* Note: This is the amount of any rollover made to this MSA in 2001 after a distribution from another MSA. For detailed
information on reporting, see the 2001 “Instructions for Forms 1099-MSA and 5498-MSA.”
Amount Codes Form W-2G- For Reporting Payments on Form W-2G:
Certain Gambling
Winnings Amount
CodeAmountType
1Gross winnings
2Federal income tax withheld
7Winnings from identical wagers
40-47 Blank8Enter blanks.
48Original File1Required for original files only.Enter “1” (one) if the information
Indicatoris original data. Otherwise, enter a blank.
49 Replacement 1 Required for replacement files only.Enter “1” (one) if this file is to
File Indicatorreplace a file that IRS/MCC has informed you in writing can not be
processed. Otherwise, enter a blank.
* Note: If selecting the Replacement File Indicator in Position 49, Field Positions 48 and 50 must be blank. Only one
indicator may be selected for each Payer “A” Record.
50 Correction1Required for correction files only.Enter “1” (one) if the purpose of
File Indicatorthis file is to correct information which was previously submitted to
IRS/MCC, was processed, but contained erroneous information. Do
not submit original information as corrections. Any information
return which was inadvertently omitted from a file must be submit-
ted as original. Otherwise, enter a blank.
51Blank1Enter a blank.
May 21, 200112362001–21 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
52 Foreign1Enter a “1” (one) if the payer is a foreign entity and income is paid
Entity by the foreign entity to a U. S. resident. If the payer is not a foreign
Indicatorentity, enter a blank.
53-92 First 40 Required. Enter the name of the payer whose TIN appears in
Payer Name positions 12-20 of the “A” Record. Any extraneous information
Line 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.)
93-132 Second 40 If the Transfer (or Paying) Agent Indicator (position 133) contains
Payer Namea “1” (one), this field must contain the name of the transfer (or
Line 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 1Required. Identifies the entity in the Second Payer Name Line
AgentField. (See Part A, Sec. 17, for a definition of transfer agent.)
Indicator
CodeMeaning
1The entity in the Second Payer Name
Line Field is the transfer (or paying)
agent.
0 (zero) The entity shown is notthe transfer (or
paying) agent (i.e., the Second Payer
Name Line Field contains either a con-
tinuation of the First Payer Name Line
Field or blanks).
134-173 Payer 40Required. If the Transfer Agent Indicator in position 133 is a “1”
Shipping (one), enter the shipping address of the transfer (or paying) agent.
AddressOtherwise, enter the actualshipping address of the payer. The street
address should include number, street, apartment or suite number (or
P. O. Box if mail is not delivered to street address). Left-justify
information, and fill unused positions with blanks.
For U.S. addresses, the payer city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payer city, state, and ZIP Code.
For foreign addresses, filers may use the payer city, state, and ZIP Code as a continuous 51 position field. Enter information in
the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign
Entity Indicator in position 52 must contain a “1” (one).
174-213 Payer City40Required. If the Transfer Agent Indicator in position
133 is a “1” (one), enter the city, town, or post office of the transfer
agent. 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 State 2Required. Enter the valid U.S. Postal Service state abbreviations.
Refer to the chart of valid state abbreviations in Part A, Sec. 18.
216-224Payer ZIP9Required. Enter the valid nine-digit ZIP Code assigned by the U.S.
CodePostal Service. If only the first five digits are known, left-justify
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.
2001–21 I.R.B.1237May 21, 2001

Record Name: Payer “A” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
225-239Payer Phone15Enter the payer’s phone number and extension.
Number &
Extension
240-748Blank509Enter blanks.
749-750Blank 2Enter blanks or carriage return/line feed (CR/LF) characters.
Sec. 9. Payer “A” Record - Record Layout
May 21, 200112382001–21 I.R.B.
12-56-1112-2021-2425
Combined TypeAmountBlankOriginalReplacementCorrection
Federal/StateofCodesFileFileFile
FilerReturnIndicatorIndicatorIndicator
PayerPayer PayerPayer PhoneBlankBlank or
CityStateZIPNumber andCR/LF
CodeExtension
5152 53-9293-132133134-173
BlankForeignFirstSecondTransferPayer
Entity Payer NamePayer NameAgentShipping
IndicatorLineLineIndicatorAddress
262728-3940-47484950
RecordPaymentBlankPayerPayer NameLast Filing
TypeYearTINControlIndicator
174-213214-215216-224225-239240-748749-750
Sec. 10. Payee “B” Record - General Field Descriptions and Record Layouts
.01The “B” Record contains the payment information from the information returns. When filing information returns, the format
for the “B” Records will remain constant and is a fixed length of 750 positions. The record layout for field positions 1 through 543
is the same for all types of returns. Field positions 544 through 750 vary for each type of return to accommodate special fields for
individual forms. In the “A” Record, the amount codes that appear in field positions 28 through 39 will be left-justified and filled
with blanks. In the “B” Record, the filer mustallow for all twelve Payment Amount Fields. For those fields not used, enter “0s”
(zeros). For example, a payer reporting on Form 1099-MISC should enter “A” in field position 27 of the “A” Record, Type of
Return. If reporting payments for Amount Codes 1, 2, 4, 7, A and C, the payer would report field positions 28 through 39 of the “A”
Record as “1247ACb/b/b/b/b/b/.” (In this example, “b/ ” denotes blanks. Do not enter the letter “b”.) In the “B” Record:
Positions 55 through 66 for Payment Amount 1will represent rents.
Positions 67-78 for Payment Amount 2will represent royalties.
Positions 79-90 for Payment Amount 3will be “0’s” (zeros).
Positions 91-102 for Payment Amount 4will represent Federal income tax withheld.
Positions 103-126 for Payment Amounts 5 and 6will be “0’s” (zeros).
Positions 127-138 for Payment Amount 7 will represent nonemployee compensation.
Positions 139-162 for Payment Amounts 8 and 9will be “0’s” (zeros).
Positions 163-174 for Payment Amount Awill represent crop insurance proceeds.
Positions 175-186 for Payment Amount Bwill be “0’s” (zeros).
Positions 187-198 for Payment Amount Cwill represent gross proceeds paid to an attorney in connection with legal services.

.02The following specifications include a field in the payee records called “Name Control” in which the first four characters of
the payee’s surname are to be entered by the filer;
(a)If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank.
Compliance with the following will facilitate IRS computer programs in identifying the correct name control:
(1)The surname of the payee whose TIN is shown in the “B” Record should always appear first. If, however, the records
have been developed using the first name first, the filer must leave a blank space between the first and last names.
(2) In the case of multiple payees, only the surname of the payee whose TIN (SSN, EIN, ITIN, or ATIN) is shown in the “B”
Record must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second Payee
Name Line.
.03See Part A, Sec. 14, for further information concerning Taxpayer Identification Numbers (TINs).
.04 For all fields marked“Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked“Required”, the transmitter must allow for the field, but may be instructed to enter blanks or zeros in
the indicated field position(s) and for the indicated length.
.05All records must be a fixed length of 750 positions.
.06A field is also provided in these specifications for Special Data Entries. This field may be used to record information required
by state or local governments, or for the personal use of the filer. IRS does not use the data provided in the Special Data Entries
Field; therefore, the IRS program does not check the content or format of the data entered in this field. It is the filer’s option to use
the Special Data Entry Field.
.07Following the Special Data Entries Field in the “B” Record, payment fields have been allocated for 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/MCC.
.08Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A,
Sec. 16, to participate in this program. Filers may not file Forms 1098, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-LTC, 1099-
MSA, 1099-S, 5498-MSA, and W-2G under the Combined Federal/State Filing Program.
.09All alpha characters in the “B” Record must be uppercase.
.10 Do notuse decimal points (.) to indicate dollars and cents. Ten dollars must appear as 000000001000 in the payment amount
field.
.11IRS strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous
notices. Transmitters should be especially careful that the names, TINs, account numbers, types of income, and income amounts are
correct.
.12When reporting Form 1098, Mortgage Interest Statement and Form 1098-E, Student Loan Interest Statement, the “A” Record
will reflect the name and TIN of the recipient of the interest or payment (recipient/lender). The “B” Record will reflect the individ-
ual paying the interest (borrower/payer of record) and the amount paid. When reporting Form 1099-LTC, Long-Term Care and
Accelerated Death Benefits, the Payee Name Line of the “B” Record will reflect the policyholder. The name of the insured will be
reported in Field Positions 557-596 of the Payee “B” Record. For Form 1099-S, Proceeds From Real Estate Transactions, the “A”
Record will reflect the person responsible for reporting the transaction (the filer of the Form 1099-S) and the “B” Record will reflect
the seller/transferor. When reporting Form 1098-T, Tuition Payments Statement, the “A” Record will reflect the name and TIN of
the educational institution receiving tuition payments. The “B” Record will reflect the name and TIN of the student on whose behalf
the tuition is being paid.
Record Name: Payee “B” Record
Field
PositionField TitleLengthDescription and Remarks
1Record Type1 Required. Enter “B”.
2-5Payment Year 4 Required. Enter “2001” (unless reporting prior year data; report the
year which applies [1999, 2000, etc.]).
6Corrected 1Required for corrections only.Indicates a corrected return.
Return
Indicator
(See Note.)CodeDefinition
G If this is a one-transaction correction or
the first of a two-transaction correction
C If this is the second transaction of a two
transaction correction
BlankIf this is not a return being submitted to cor-
rect information already processed by IRS.
2001–21 I.R.B.1239May 21, 2001

Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
*Note: C, G, and non-coded records must be reported using separate Payer “A” Records. Refer to Part A, Sec. 13, for
specific instructions on how to file corrected returns.
7-10 Name Control 4If determinable, enter the first four characters of the surname of the
person whose TIN is being reported in positions 12-20 of the “B”
Record; otherwise, enter blanks. This usually is the payee. If the
name that corresponds to the TIN is not included in the first or sec-
ond payee name line and the correct name control is not provided, a
backup withholding notice may be generated for the record.
Surnames of less than four characters should be left-justified, filling
the unused positions with blanks. Special characters and imbedded
blanks should be removed. In the case of a business, other than a
sole proprietorship, use the first four significant characters of the
business name. Disregard the word “the” when it is the first word of
the name, unless there are only two words in the name. A dash (-)
and an ampersand (&) are the only acceptable special characters.
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 Payer Name Line.
*Note: Imbedded blanks, 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/MCC. A dash (-) and an ampersand (&) are the only acceptable special characters.
The following examples may be helpful to filers in developing the Name Control:
NameName Control
Individuals:
Jane BrownBROW
John A. LeeLEE*
James P. En, Sr. EN*
John O’Neill ONEI
Mary VanBuren VANB
Juan DeJesusDEJE
Gloria A. El-RoyEL-R
Mr. John Smith SMIT
Joe McCarthy MCCA
Pedro Torres-LopesTORR
Maria Lopez Moreno**LOPE
Binh To LaLA*
Nhat Thi PhamPHAM
Mark D’Allesandro DALL
Corporations:
The First National Bank FIRS
TheHideaway THEH
A&BCafeA&BC
11THStreet Inc. 11TH
Sole Proprietor:
Mark Hemlock
DBA The Sunshine Club HEML
May 21, 200112402001–21 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
NameName Control
Partnership:
Robert Aspen
and Bess Willow ASPE
Harold Fir, Bruce Elm,
and Joyce Spruce et al PtrFIR*
Estate:
Frank White EstateWHIT
Estate of Sheila BlueBLUE
Trusts and Fiduciaries:
Daisy Corporation Employee
Benefit TrustDAIS
Trust FBO The Cherryblossom
SocietyCHER
Exempt Organization:
Laborer’s Union, AFL-CIO LABO
St. Bernard’s Methodist
Church Bldg. FundSTBE
*Name Controls of less than four significant characters must be left-justified and blank-filled.
**For Hispanic names, when two last names are shown for an individual, derive the name control from the first last name.
11 Type of 1 This field is used to identify the Taxpayer Identification Number
TIN (TIN) in positions 12-20 as either an Employer Identification Number
(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
1 EIN A business, organization, sole propri-
etor, or other entity
2 SSN An individual, including a sole pro-
prietor
or
2 ITINAn individual required to have a tax-
payer identification number, but who
is not eligible to obtain an SSN
or
2ATINAn adopted individual prior to the
assignment of a social security number
Blank N/AIf the type of TIN is not determinable,
enter a blank.
12-20 Payee’s 9 Required. Enter the nine digit Taxpayer Identification Number of
Taxpayerthe payee (SSN, ITIN, ATIN, or EIN). If an identification number
Identificationhas been applied for but not received, enter blanks. Do not enter
Numberhyphens or alpha characters. All zeros, ones, twos, etc., will have
(TIN)the effect of an incorrect TIN. If the TIN is not available, enter
blanks. Payers who submit data with missing TINs, and have
taken the required steps to obtain this information, should con-
tact IRS/MCC by telephone or mail.
21-40 Payer’s 20 Enter any number assigned by the payer to the payee (e.g., checking
Account Number or savings account number). Filers are encouraged to use this field.
For PayeeThis number helps to distinguish individual payee records and
should be unique for each document. Do not use the payee’s TIN
2001–21 I.R.B.1241May 21, 2001

Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
since this will not make each record unique. This information is par-
ticularly useful when corrections are filed. This number will be pro-
vided with the backup withholding notification and may be helpful
in identifying the branch or subsidiary reporting the transaction. Do
not define data in this field in packed decimal format. If fewer than
twenty characters are used, filers may either left or right-justify, fill-
ing the remaining positions with blanks.
41-44Payer’s Office4Enter office code of payer; otherwise, enter blanks. For payers
Codewith multiple locations, this field may be used to identify the loca-
tion of the office submitting the information return. This code will
also appear on backup withholding notices.
45-54Blank10Enter blanks.
Payment Required. Filers should allow for all payment amounts. For
Amount Fieldsthose not used, enter zeros. See Sec. 10.01 for a detailed example.
(Must be numeric)Each payment field must contain 12 numeric characters. Each payment
(See Note.)amount must contain U.S. dollars and cents. The right-most two
positions represent cents in the payment amount fields. Do not enter
dollar signs, commas, decimal points, or negative payments, except
those items that reflect a loss on Form 1099-B. Positive and nega-
tive amounts are indicated by placing a “+” (plus) or “-” (minus) sign
in the left-most position of the payment amount field. A negative
over punch in the units position may be used, instead of a minus sign,
to indicate a negative amount. If a plus sign, minus sign, or negative
over punch is not used, the number is assumed to be positive.
Negative over punch cannot be used in PC created files. Payment
amounts must be right-justified and unused positions must be zero-
filled. Federal income tax withheld cannot be reported as a neg-
ative amount on any form.
*Note: Filers must enter numeric information in all payment fields when filing magnetically or electronically. However,
when reporting information on the statement to the recipient, the payer may be instructed to leave a box blank. Follow the
guidelines provided in the paper instructions for the statement to the recipient.
55-66 Payment 12 The amount reported in this field represents payments for Amount
Amount 1*Code 1 in the “A” Record.
67-78 Payment 12The amount reported in this field represents payments for
Amount 2*Amount Code 2 in the “A” Record.
79-90 Payment 12 The amount reported in this field represents payments for
Amount 3*Amount Code 3 in the “A” Record.
91-102 Payment 12 The amount reported in this field represents payments for
Amount 4*Amount Code 4 in the “A” Record.
103-114 Payment 12 The amount reported in this field represents payments for
Amount 5*Amount Code 5 in the “A” Record.
115-126 Payment 12 The amount reported in this field represents payments for
Amount 6*Amount Code 6 in the “A” Record.
127-138 Payment 12 The amount reported in this field represents payments for
Amount 7*Amount Code 7 in the “A” Record.
139-150 Payment 12 The amount reported in this field represents payments for
Amount 8*Amount Code 8 in the “A” Record.
May 21, 200112422001–21 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
151-162 Payment 12 The amount reported in this field represents payments for
Amount 9*Amount Code 9 in the “A” Record.
163-174 Payment 12 The amount reported in this field represents payments for
Amount A*Amount Code A in the “A” Record.
175-186 Payment 12 The amount reported in this field represents payments for
Amount B*Amount Code B in the “A” Record.
187-198 Payment 12 The amount reported in this field represents payments for
Amount C*Amount Code C in the “A” Record.
*If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this
Revenue Procedure govern.
199-246 Reserved 48 Enter blanks.
247 Foreign 1 If the address of the payee is in a foreign country, enter a “1”
Country(one) in this field; otherwise, enter blank. When filers use this
Indicatorindicator, they may use a free format for the payee city, state, and
ZIP Code. Address information must not appear in the First or
Second Payee Name Line.
248-287 First Payee 40 Required. Enter the name of the payee (preferably surname first)
Name Line whose Taxpayer Identification Number (TIN) was provided in
(See Notes.)positions 12-20 of the “B” Record. Left-justify and fill unused posi-
tions with blanks. If more space is required for the name, use the
Second Payee Name Line Field. The names of any other payees may
be entered in the Second Payee Name Line Field. If reporting infor-
mation for a sole proprietor, the individual’s name must always be
present, preferably 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. Do not split words.
*Note 1: 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/MCC. A dash and an
ampersand are the only acceptable special characters.
*Note 2: On Form 5498, for Inherited IRAs, enter the beneficiary’s name followed by the word “beneficiary”, for
example, “Brian Young as beneficiary of Joan Smith”. Filers may abbreviate the word “beneficiary” as, for example,
“benef”. The beneficiary’s TIN must be reported in positions 12-20 of the “B” Record. Refer to the 2001 “Instructions for
Forms 1099-R and 5498”.
288-327 Second Payee 40 If there are multiple payees (e.g., partners, joint owners, or
Name Line 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. Do not enter address information. It is important that
filers provide as much payee information to IRS/MCC as possible to
identify the payee associated with the TIN. Left-justify and fill
unused positions with blanks. Fill with blanks if no entries are pre-
sent for this field.
328-367Blank40Enter blanks.
368-407 Payee Mailing 40 Required. Enter mailing address of payee. Street address should
Address include number, street, apartment or suite number (or P.O. Box if
mail is not delivered to street address). Left-justify information and
2001–21 I.R.B.1243May 21, 2001

Record Name: Payee “B” Record (Continued)
Field
PositionField TitleLengthDescription and Remarks
fill unused positions with blanks. This field must notcontain any
data other than the payee’s mailing address.
For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the payee city, state, and ZIP Code.
For foreign addresses, filers may use the payee city, state, and ZIP Code as a continuous 51 position field. Enter information in
the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the Foreign
Country Indicator in position 247 must contain a “1” (one).
408-447Blank 40Enter blanks.
448-487 Payee City40 Required.Enter the city, town or post office. Left-justify informa-
tion and fill the unused positions with blanks. Enter APO or FPO if
applicable. Do not enter state and ZIP Code information in this field.
488-489 Payee State 2 Required. Enter the valid U.S. Postal Service state abbreviations for
states or the appropriate postal identifier (AA, AE, or AP) described
in Part A, Sec. 18.
490-498 Payee ZIP9 Required.Enter the valid ZIP Code (nine or five digit) assigned
Codeby 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.
499-543Blank45Enter blanks.
Standard Payee “B” Record Format For
All Types of Returns, Positions 1-543
May 21, 200112442001–21 I.R.B.
Record PaymentCorrectedNameType of Payee’sPayer’s
TypeYear ReturnControlTINTIN Account
IndicatorNumber
12-567-101112-2021-40
Payer’s BlankPaymentPaymentPaymentPaymentPayment
Office Amount Amount AmountAmountAmount
Code12345
41-4445-5455-6667-78 79-90 91-102103-114
PaymentPaymentPaymentPaymentPaymentPayment
Amount AmountAmountAmountAmountAmount
6789AB
115-126 127-138 139-150151-162163-174175-186
PaymentReservedForeignFirst PayeeSecond Payee Blank
Amount CountryName LineName Line
CIndicator
187-198199-246247248-287288-327328-367

The following sections define the field positions for the different types of returns in the Payee “B” Record (positions 544-750):
(l)Form 1098
(2)Form 1098-E
(3)Form 1098-T
(4)Form 1099-A
(5)Form 1099-B
(6)Form 1099-C
(7)Form 1099-DIV*
(8)Form 1099-G*
(9)Form 1099-INT*
(10) Form 1099-LTC
(11) Form 1099-MISC*
(12) Form 1099-MSA
(13) Form 1099-OID*
(14) Form 1099-PATR*
(15) Form 1099-R*
(16) Form 1099-S
(17) Form 5498*
(18) Form 5498-MSA
(19) Form W-2G
• These forms may be filed through the Combined Federal/State Filing Program. IRS/MCC will forward these records to partic-
ipating states for filers who have been approved for the program. See Part A, Sec. 16, for information about the program, includ-
ing specific codes for the record layouts.
(1) Payee “B” Record - Record Layout Positions 544-750 for Forms 1098
Field
PositionField Title Length Description and Remarks
544-662 Blank119Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own purpos-
es. Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723-748 Blank26Enter blanks.
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
Forms 1098
2001–21 I.R.B.1245May 21, 2001
PayeeBlankPayeePayeePayeeBlank
MailingCityStateZIP Code
Address
368-407408-447448-487488-489490-498499-543
BlankSpecial BlankBlank
Dataor CR/LF
Entries
544-662663-722723-748749-750

(2) Payee “B” Record - Record Layout Positions 544-750 for Forms 1098-E
Field
PositionField Title Length Description and Remarks
544-546 Blank 3 Enter blanks.
547Origination1Enter “1” (one) if the amount reported in Payment Amount Field
Fees/Capitalized1 includes loan origination fees and/or capitalized interest. Otherwise,
Interest Indicatorenter a blank.
548-662Blank115Enter blanks.
663-722 Special Data 60This portion of the “B” Record may be used to record information for
Entriesstate 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.
723-748Blank 26Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
Forms 1098-E
May 21, 200112462001–21 I.R.B.
Blank OriginationBlankDataBlankBlank
Fees/Entriesor CR/LF
Capitalized Special
Interest
544-546547548-662663-722723-748749-750
(3) Payee “B” Record - Record Layout Positions 544-750 for Forms 1098-T
Field
PositionField Title Length Description and Remarks
544-546 Blank 3 Enter blanks.
547Half-time1Enter “1” (one) if the student was at least a half-time
Studentstudent during any academic period that began in 2001. Otherwise,
Indicatorenter a blank.
548Graduate 1Enter “1” (one) if the student is enrolled exclusively in a graduate
Studentlevel program. Otherwise, enter a blank.
Indicator
549-662Blank114Enter blanks.
663-722 Special Data60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for the filing requirements. If this field is not utilized, enter blanks.
723-748Blank 26Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750
Form 1098-T
2001–21 I.R.B.1247May 21, 2001
BlankHalf-time GraduateBlankSpecial BlankBlank or
StudentStudentData CR/LF
IndicatorIndicatorEntries
544-546547548549-662663-722723-748749-750
(4) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-A
Field
PositionField Title Length Description and Remarks
544-546 Blank3 Enter blanks.
547 Personal1Enter the appropriate indicator from the table below:
Liability
Indicator
Indicator
Usage
1Borrower was personally liable for
repayment of the debt.
BlankBorrower was not personally liable for
repayment of the debt.
548-555Date of8Enter the acquisition date of the secured property or the
Lender’sdate the lender first knew or had reason to know the property was
Acquisition orabandoned, in the format YYYYMMDD (e.g., January 5, 2001, would
Knowledge ofbe 20010105). Do not enter hyphens or slashes.
Abandonment
556-594 Description 39Enter a brief description of the property. For real property, enter
of Propertythe address, or, if the address does not sufficiently identify the prop-
erty, enter the section, lot and block. For personal property, enter the
type, make and model (e.g., Car-1999 Buick Regal or Office
Equipment). Enter “CCC” for crops forfeited on Commodity Credit
Corporation loans. If fewer than 39 positions are required, left-jus-
tify information and fill unused positions with blanks.
595-662 Blank 68 Enter blanks.
663-722 Special Data 60 This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own pur-
poses. Payers should contact the state or local revenue departments
for the filing requirements. If this field is not utilized, enter blanks.
723-748 Blank26Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
Form 1099-A
Blank Personal Date of Lender’sDescriptionBlank
LiabilityAcquisition orof
IndicatorKnowledge ofProperty
Abandonment
544-546547548-555556-594 595-662

SpecialBlank Blank
Data or CR/LF
Entries
May 21, 200112482001–21 I.R.B.
663-722723-748749-750
(5) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-B
Field
PositionField Title Length Description and Remarks
544Second TIN1Enter “2” (two) to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN combination;
(Optional)otherwise, enter a blank.
545-546 Blank 2Enter blanks.
547 Gross 1 Enter the appropriate indicator from the following table, to identify
Proceedsthe amount reported in Amount Code 2; otherwise, enter a blank.
Indicator
Indicator
Usage
1Gross proceeds
2Gross proceeds less commissions and
options premiums
548-555 Date of8 For broker transactions, enter the trade date of the transaction. For
Sale barter exchanges, enter the date when cash, property, a credit, or
scrip is actually or constructively received in the format YYYYM-
MDD (e.g., January 5, 2001, would be 20010105). Enter blanks if
this is an aggregate transaction. Do not enter hyphens or slashes.
556-568 CUSIP Number13 For broker transactions only, enter the CUSIP (Committee on Uniform
Security Identification Procedures) number of the item reported for
Amount Code 2 (stocks, bonds, etc.). Enter blanks if this is an aggre-
gate transaction. Enter “0s” (zeros) if the number is not available.
Right-justify information and fill unused positions with blanks.
569-607 Description 39 If fewer than 39 characters are required, left-justify information and
fill unused positions with blanks. For broker transactions, enter a
brief description of the disposition item (e.g., 100 shares of XYZ
Corp). For regulated futures and forward contracts, enter “RFC” or
other appropriate description. For bartering transactions, show the
services or property provided.
608-662Blank 55Enter blanks.
663-722 Special Data 60 This portion of the “B” Record may be used to record information
Entries for state or local government reporting or for the filer’s own purpos-
es. Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheld information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting state tax withheld, this field may be used as a
continuation of the Special Data Entries Field.
735-746Local Income 12Local income tax withheld is for the convenience of the
Tax Withheld 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.

(5) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-B (Continued)
Field
PositionField Title Length Description and Remarks
747-748 Blank2 Enter blanks.
749-750Blank 2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 1099-B
2001–21 I.R.B.1249May 21, 2001
SecondBlankGrossDate ofCUSIPDescription
TIN NoticeProceedsSaleNumber
(Optional)Indicator
544545-546547548-555556-568569-607
Blank SpecialStateLocalBlankBlank
DataIncomeIncomeor
EntriesTaxTaxCR/LF
WithheldWithheld
608-662663-722723-734735-746747-748749-750
(6) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-C
Field
Position Field Title Length Description and Remarks
544-546 Blank 3 Enter blanks.
547Bankruptcy1Enter “1” (one) to indicate the debt was discharged in bankruptcy,
Indicatorif known. Otherwise, enter a blank.
548-555Date 8Enter the date the debt was canceled in the format of YYYYMMDD
Canceled (e.g., January 5, 2001, would be 20010105). Do not enter hyphens
or slashes.
556-594Debt39Enter a description of the origin of the debt, such as student loan,
Descriptionmortgage, or credit card expenditure. If a combined Form 1099-C
and 1099-A is being filed, also enter a description of the property.
595-662Blank68Enter blanks.
663-722 Special Data 60This portion of the “B” Record may be used to record
Entries 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 Blank 26 Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.

Payee “B” Record - Record Layout Positions 544-750
for Form 1099-C
May 21, 200112502001–21 I.R.B.
Blank BankruptcyDateDebtBlankSpecial
IndicatorCanceledDescriptionData
Entries
(7) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-DIV
Field
Position Field Title Length Description and Remarks
544Second TIN1Enter “2” (two) to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN combination;
(Optional)otherwise, enter a blank.
545-546 Blank2Enter blanks.
547-586Foreign Country40Enter the name of the foreign country or U.S. possession to which
or U.S.the withheld foreign tax (Amount Code A) applies. Otherwise,
Possessionenter blanks.
587-662Blank 76Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record
Entriesinformation 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.
723-734State Income12State income tax withheld is for the convenience of the
Tax Withheldfilers. This information does not need to be reported to IRS. The
payment amount must be right-justified and unused positions must
be zero-filled. If not reporting state tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
735-746Local Income12Local income tax withheld is for the convenience of the
Tax Withheldfilers. 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 2 If this payee record is to be forwarded to a state agency
Federal/as part of the Combined Federal/State Filing Program, enter the valid
State Codestate code from Part A, Sec. 16, Table 1. For those payers or states
not participating in this program, enter blanks.
749-750 Blank2 Enter blanks or carriage return/line feed (CR/LF) characters.
Blank Blank
or CR/LF
544-546547548-555556-594 595-662663-722
723-748749-750

Payee “B” Record - Record Layout Positions 544-750
for Form 1099-DIV
2001–21 I.R.B.1251May 21, 2001
SecondBlankForeignBlankSpecial
TINCountryData Entries
Noticeor U.S.
(Optional)Possession
723-734735-746747-748749-750
State Local CombinedBlank
IncomeIncomeFederal/or CR/LF
TaxTax State
WithheldWithheldCode
544545-546547-586587-662 663-722
(8) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-G
Field
Position Field Title Length Description and Remarks
544-546 Blank3 Enter blanks.
547Trade or1Enter “1” (one) to indicate the state or local income tax refund, credit,
Business or offset (Amount Code 2) is attributable to income tax that applies
Indicatorexclusively to income from a a trade or business.
IndicatorUsage
1Income tax refund applies exclusively to
a trade or business.
BlankIncome tax refund is a general tax
refund.
548-551Tax Year 4Enter the tax year for which the refund, credit, or offset (Amount
of RefundCode 2) was issued. The tax year must reflect the year for which
the payment was made, not the tax year of the Form 1099-G.
The tax year must be in the four position format of YYYY (e.g.,
1999). The valid range of years for the refund is 1991 through 2000.
*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 the Transmitter “T” Record.
552-662Blank 111Enter blanks.
663-722 Special Data 60 This portion of the “B” Record may be used to record information for
Entries state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for fil-
ing requirements. You may enter your routing and transit number
(RTN) here. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting state tax withheld, this field may be used as a
continuation of the Special Data Entries Field.
735-746Local Income 12Local income tax withheld is for the convenience of the filers. This
Tax Withheld information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-

(8) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-G (Continued)
Field
Position Field Title Length Description and Remarks
filled. If not reporting local tax withheld, this field may be used as
a continuation of the Special Data Entries Field.
747-748 Combined2 If this payee record is to be forwarded to a state agency as part of the
Federal/Combined Federal/State Filing Program, enter the valid state code
State Codefrom Part A, Sec. 16, Table 1.For those payers or states not partici-
pating in this program, enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 1099-G
May 21, 200112522001–21 I.R.B.
Blank Trade orTax Year BlankSpecialState
BusinessofDataIncome
IndicatorRefundEntriesTax
Withheld
544-546547548-551552-662663-722723-734
Local CombinedBlank
Income Federal/or CR/LF
Tax State
WithheldCode
735-746747-748749-750
(9) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-INT
Field
Position Field Title Length Description and Remarks
544Second TIN1Enter “2” (two) to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN combination;
(Optional)otherwise, enter a blank.
545-546 Blank2Enter blanks.
547-586Foreign Country40Enter the name of the foreign country or U.S. possession to which
or U.S. the withheld foreign tax (Amount Code 6) applies. Otherwise, enter
Possessionblanks.
587-662Blank 76Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record
Entriesinformation 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. You may enter your routing and
transit number (RTN) here. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the
Tax Withheldfilers. 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.

(9) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-INT (Continued)
Field
Position Field Title Length Description and Remarks
735-746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting local tax withheld, this field may be used as
a continuation of the Special Data Entries Field.
747-748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/ Combined Federal/State Filing Program, enter the valid state code from
State Code Part A, Sec. 16, Table 1. For those payers or states not participating
in this program, enter blanks.
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 1099-INT
2001–21 I.R.B.1253May 21, 2001
SecondBlank ForeignBlankSpecialState
TINCountryDataIncome
Noticeor U.S.EntriesTax
(Optional) PossessionWithheld
544545-546547-586587-662663-722723-734
Local CombinedBlank
IncomeFederal/or CR/LF
TaxState
WithheldCode
735-746747-748749-750
(10) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-LTC
Field
Position Field Title Length Description and Remarks
544-546Blank 3Enter blanks.
547Type of 1Enter the appropriate indicator from the following table; otherwise,
Paymententer blanks.
Indicator
Indicator
Usage
1Per diem
2Reimbursed amount
548-556 Social Security 9Required.Enter the Social Security Number of the insured.
Number of Insured
557-596Name of40Required.Enter the name of the insured.
Insured
597-636Address40Required. Enter the address of the insured. Street address should
of Insured include number, street, apartment or suite number (or P.O. Box if not
delivered to street address). Left-justify information and fill unused
positions with blanks. This field must notcontain any data other
than payee’s address.

(10) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-LTC (Continued)
Field
Position Field Title Length Description and Remarks
For U.S. addresses, the payee city, state, and ZIP Code must be reported as a 40, 2, and 9 position field, respectively. Filers must
adhere to the correct format for the insured’s city, state, and ZIP Code.
For foreign addresses, filers may use the insured’s city, state, and ZIP Code as a continuous 51 position field. Enter information
in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the
Foreign Country Indicator in position 247 must contain a “1” (one).
637-676City of 40Required. Enter the city, town, or post office. Left-justify information
Insuredand fill the unused positions with blanks. Enter APO or FPO, if
applicable. Do not enter state and Zip Code information in this field.
677-678State of2Required.Enter the valid U.S. Postal Service state abbreviations for
Insuredstates or the appropriate postal identifier (AA, AE, or AP) described
in Part A, Sec. 18.
679-687ZIP Code9Required.Enter the valid nine digit ZIP Code assigned by the U.S.
of InsuredPostal 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 posi-
tion 247 of the “B” Record.
688Status of1Enter the appropriate code from the table below to indicate the
Illnessstatus of the illness of the insured; otherwise, enter blank:
Indicator
(Optional)
IndicatorUsage
1Chronically ill
2Terminally ill
689-696Date 8Enter the latest date of a doctor’s certification of the
Certifiedstatus of the insured’s illness. The format of the date is YYYYMMDD
(Optional)(e.g., January 5, 2001, would be 20010105). Do not enter hyphens
or slashes.
697Qualified 1Enter a “1” (one) if benefits were from a qualified long-term
Contract (Optional)care insurance contract; otherwise, enter blank.
698-722Blank25Enter blanks.
723-734State Income12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment amount
must be right-justified and unused positions must be zero-filled.
735-746Local Income12Local income tax withheld is for the convenience of the
Tax Withheldfilers. 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 Blank 2 Enter blanks.
749-750Blank 2Enter blanks or carriage return/line feed (CR/LF) characters.
May 21, 200112542001–21 I.R.B.

Payee “B” Record - Record Layout Positions 544-750
for Form 1099-LTC
2001–21 I.R.B.1255May 21, 2001
BlankType of SSN ofName ofAddressCity ofState ofZIP Code
PaymentInsuredInsuredofInsuredInsuredof Insured
IndicatorInsured
688689-696 697698-722723-734735-746
Status ofDateQualifiedBlankStateLocal
IllnessCertifiedContractIncomeIncome
Indicator(Optional)IndicatorTaxTax
(Optional)(Optional)WithheldWithheld
544-546547548-556557-596597-636637-676677-678679-687
BlankBlank
or
CR/LF
747-748749-750
(11) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MISC
Field
Position Field Title Length Description and Remarks
544Second TIN1Enter “2” to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN
(Optional)combination; otherwise, enter a blank.
545-546 Blank 2Enter blanks.
547Direct Sales1Enter a “1” (one) to indicate sales of $5,000 or more of consumer
Indicatorproducts to a person on a buy-sell, deposit-commission,
(See Note.)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 indicator only, use Type of Return “A” in Field Position 27, and Amount Code 1 in Field
Position 28 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros.
548-662Blank115Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record
Entriesinformation 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 used, enter
blanks.
723-734State Income 12State income tax withheld is for the convenience of the
Tax Withheldfilers. This information does not need to be reported to IRS. The
payment amount must be right-justified and unused positions must
be zero-filled. If not reporting state tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
735-746Local Income12Local income tax withheld is for the convenience of the
Tax Withheldfilers. 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.

(11) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MISC (Continued)
Field
Position Field Title Length Description and Remarks
747-748 Combined 2 If this payee record is to be forwarded to a state agency as part of
Federal/the Combined Federal/State Filing Program, enter the valid state code
State Codefrom Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 1099-MISC
May 21, 200112562001–21 I.R.B.
SecondBlankDirectBlankSpecialStateLocal
TINSalesDataIncomeIncome
NoticeIndicatorEntriesTaxTax
(Optional)WithheldWithheld
747-748749-750
CombinedBlank
Federal/or CR/LF
State
Code
544545-546547548-662663-722723-734735-746
(12) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MSA
Field
Position Field Title Length Description and Remarks
544Blank 1Enter blank.
545Distribution1Required.Enter the applicable code to indicate the type of
Code payment:
CodeCategory
1Normal distribution
2Excess contribution
3Disability
4Death distribution other than 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 distributionafter year of deathto
a nonspouse beneficiary (Do not use for
distribution to an estate.)
546Blank1Enter a blank.
547Medicare+Choice 1Enter “1” (one) if distributions are from a Medicare+Choice MSA.
MSAIndicatorOtherwise, enter a blank.
548-662Blank115Enter blanks.

(12) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-MSA (Continued)
Field
Position Field Title Length Description and Remarks
663-722Special Data 60This portion of the “B” Record may be used to record
Entriesinformation 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.
723-734State Income 12State income tax withheld is for the convenience of the
Tax Withheldfilers. This information does not need to be reported to IRS. The
payment amount must be right-justified and unused positions must
be zero-filled. If not reporting state tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
735-746Local Income12Local income tax withheld is for the convenience of the
Tax Withheldfilers. 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 Blank 2 Enter blanks.
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 1099-MSA
2001–21 I.R.B.1257May 21, 2001
BlankDistributionBlankMedicare+ BlankSpecial Data
CodeChoice MSAEntries
Indicator
State Local BlankBlank
Income TaxIncome Tax or
WithheldWithheldCR/LF
(13) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-OID
Field
Position Field Title Length Description and Remarks
544Second TIN1Enter “2” (two) to indicate notification by IRS twice within three calendar
Noticeyears that the payee provided an incorrect name and/or TIN combination;
(Optional)otherwise, enter a blank.
545-546 Blank 2Enter blanks.
547-585 Description 39 Required.Enter the CUSIP number, if any. If there is no CUSIP
number, enter the abbreviation for the stock exchange and issuer, the
coupon rate, and year (must be 4 digit year) of maturity (e.g., NYSE
XYZ 12 1/ 2001). 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.
544545546547548-662663-722
723-734735-746747-748749-750

(13) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-OID (Continued)
Field
Position Field Title Length Description and Remarks
586-662Blank77Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information for
Entriesstate or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for fil-
ing requirements. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting state tax withheld, this field may be used as a
continuation of the Special Data Entries Field.
735-746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting local tax withheld, this field may be used as
a continuation of the Special Data Entries Field.
747-748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/Combined Federal/State Filing Program, enter the valid state code
State Code from Part A, Sec. 16, Table l. For those payers or states not partici-
pating in this program, enter blanks.
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750 for Form 1099-OID
May 21, 200112582001–21 I.R.B.
SecondBlankDescriptionBlankSpecialState
TIN DataIncome
NoticeEntriesTax
(Optional)Withheld
544545-546547-585586-662663-722723-734
Local CombinedBlank
Income Federal/or CR/LF
TaxState
WithheldCode
735-746747-748749-750
(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-PATR
Field
Position Field Title Length Description and Remarks
544Second TIN1Enter “2” (two) to indicate notification by IRS twice within three
Noticecalendar years that the payee provided an incorrect name and/or TIN
(Optional)combination; otherwise, enter a blank.
545-662 Blank 118Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information for
Entriesstate or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for fil-

(14) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-PATR (Continued)
Field
Position Field Title Length Description and Remarks
ing requirements. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting state tax withheld, this field may be used as a
continuation of the Special Data Entries Field.
735-746Local Income12Local income tax withheld is for the convenience of the filers.
Tax WithheldThis information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting local tax withheld, this field may be used as
a continuation of the Special Data Entries Field.
747-748 Combined 2 If this payee record is to be forwarded to a state agency as part of the
Federal/Combined Federal/State Filing Program, enter the valid state code from
State CodePart A, Sec. 16, Table 1. For those payers or states not participating
in this program, enter blanks.
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for 1099-PATR
2001–21 I.R.B.1259May 21, 2001
SecondBlankSpecialState Local CombinedBlank
TIN DataIncomeIncome Federal/or CR/LF
NoticeEntriesTaxTaxState
(Optional)WithheldWithheldCode
544545-662663-722723-734735-746747-748749-750
(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R
Field
Position Field Title Length Description and Remarks
544Blank1Enter blank.
545-546Distribution Code2Required.Enter at least one distribution code from the table below.
More than one code may apply. If only one code is required, it must
be entered in position 545 and position 546 must be blank. A blank in
(For a detailedposition 545 is not acceptable. Position 545 must contain a numeric
explanation ofcode except when using Code D, E, F, G, H, J, L, M, N, P, R, S, or T.
distribution codes, Distribution Code A, when applicable, must be entered in position
see the 2001“Instruc-546 with the applicable numeric code in position 545. When using Code
tions for Forms P for an IRA distribution under section 408(d)(4) of the Internal
1099-R and 5498.”)Revenue Code, the filer may also enter Code 1, 2, or 4, 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 dis-
tribution, report two separate “B” Records. Distribution Codes E, F,
H, N, R, and S cannot be used with any other codes. Distribution
Code G may be used with Distribution Code 4 only if applicable.

(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R (Continued)
Field
Position Field Title Length Description and Remarks
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
6 Section 1035 exchange (a tax-free
exchange of life insurance, annuity, or
endowment contracts)
7*Normal distribution
8*Excess contributions plus earnings/
excess deferrals (and/or earnings) tax-
able in 2001
9PS 58 costs (premiums paid by a trustee
or custodian for current insurance protec-
tion)
AMay be eligible for 10-year tax option
D *Excess contributions plus earnings/
excess deferrals taxable in 1999
E Excess annual additions under section 415
F Charitable gift annuity
GDirect rollover to IRA
H *Direct rollover to qualified plan or tax-
sheltered annuity or a transfer from a
conduit IRA to a qualified plan
JEarly distribution from a Roth IRA, no
known exception. (This code may be
used with Code 5, 8, or P.)
LLoans treated as deemed distributions
under section 72(p)
MDistribution from an education IRA (Ed
IRA)
NRecharacterized IRA contribution made
for 2001
P*Excess contributions plus earnings/
excess deferrals taxable in 2000
RRecharacterized IRA contribution made
for 2000 (See Note.)
S*Early distribution from a SIMPLE IRA in
first 2 years, no known exception
TRoth IRA distribution, exception applies.
(This code may be used with Code 5, 8,
or P.)
*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).
May 21, 200112602001–21 I.R.B.

(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R (Continued)
Field
Position Field Title Length Description and Remarks
547Taxable Amount1Enter “1” (one) only if the taxable amount of the payment entered
Not Determinedfor Payment Amount Field 1 (Gross distribution) of the “B” Record
Indicatorcannot be computed; otherwise, enter blank.(If Taxable Amount
Not Determined Indicator is used, enter “0’s” [zeros] in Payment
Amount Field 2 of the Payee “B” Record.) Please make every effort
to compute the taxable amount.
548IRA/SEP/1Enter “1” (one) for a traditional IRA, SEP, or SIMPLE distribution or
SIMPLE Indicator Roth conversion; otherwise, enter a blank. (See Note.) If the
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 education IRA 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 the 2001“Instructions for Forms 1099-R and
5498” for exceptions (Box 2a instructions).
549Total 1Enter a “1” (one) only if the payment shown for Amount Code 1
Distribution is a total distribution that closed out the account; otherwise, enter a blank.
Indicator
(See Note.)
*Note: A total distribution is one or more distributions within one tax year in which the entire balance of the account is
distributed. Any distribution that does not meet this definition is not a total distribution.
550-551Percentage 2Use this field when reporting a total distribution to more than one
of Total person, such as when a participant is deceased and a payer distributes
Distribution 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.
552-662Blank111Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information
Entriesfor state or local government reporting or for the filer’s own purpos-
es. The state/payer’s state number, state distribution, name of local-
ity, and/or local distribution can 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.
723-734State Income 12State income tax withheld is for the convenience of the
Tax Withheld 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.
735-746Local Income12Local income tax withheld is for the convenience of the filers.
Tax WithheldThis information does not need to be reported to IRS. The payment
2001–21 I.R.B.1261May 21, 2001

(15) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-R (Continued)
Field
Position Field Title Length Description and Remarks
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.
747-748Combined 2If this payee record is to be forwarded to a state agency as part
Federal/Stateof the Combined Federal/State Filing Program, enter the valid state
Codecode from Part A, Sec. 16, Table 1. For those payers or states not par-
ticipating in this program, enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record—Record Layout Positions 544-750
for Form 1099-R
May 21, 200112622001–21 I.R.B.
BlankDistributionTaxableIRA/SEP/SIMPLETotal
CodeAmount Not IndicatorDistribution
DeterminedIndicator
Indicator
544545-546547548549
PercentageBlankSpecialStateLocalCombinedBlank
of TotalDataIncomeIncomeFederal/or CR/LF
DistributionEntriesTax TaxState
WithheldWithheldCode
550-551552-662663-722723-734735-746747-748749-750
(16) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-S
Field
Position Field Title Length Description and Remarks
544-546Blank3Enter blanks.
547 Property or 1 Required.Enter “1” (one) if the transferor received or will receive
Servicesproperty (other than cash and consideration treated as cash in
Indicatorcomputing gross proceeds) or services as part of the consideration
for the property transferred. Otherwise, enter a blank.
548-555 Date of 8 Required. Enter the closing date in the format YYYYMMDD
Closing(e.g., January 5, 2001, would be 20010105). Do not enter hyphens
or slashes.
556-594 Address or 39 Required. Enter the address of the property transferred
Legal (including city, state, and ZIP Code). If the address does not sufficiently
Descriptionidentify the property, also enter a legal description, such as section,
lot, and block. For timber royalties, enter “TIMBER.” If fewer than
39 positions are required, left-justify information and fill unused
positions with blanks.
595-662Blank68Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information for
Entriesstate or local government reporting or for the filer’s own purposes.

(16) Payee “B” Record - Record Layout Positions 544-750 for Form 1099-S (Continued)
Field
Position Field Title Length Description and Remarks
Payers should contact the state or local revenue departments for fil-
ing requirements. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the
Tax Withheld 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.
735-746Local Income12Local income tax withheld is for the convenience of the
Tax Withheldfilers. 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.
747-748Blank2Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 1099-S
2001–21 I.R.B.1263May 21, 2001
BlankPropertyDate ofAddressBlankSpecial
or ServicesClosingor LegalData
IndicatorDescriptionEntries
544-546547548-555556-594595-662663-722
State LocalBlankBlank
IncomeIncomeor CR/LF
TaxTax
WithheldWithheld
723-734735-746747-748749-750
(17) Payee “B” Record - Record Layout Positions 544-750 for Form 5498
Field
Position Field Title Length Description and Remarks
544-546Blank 3 Enter blanks.
547IRAIndicator1Required, if applicable.Enter “1” (one) if reporting a rollover
(Individual(Amount Code 2) or Fair Market Value (Amount Code 5) for an IRA.
RetirementOtherwise, enter a blank.
Account)
548SEPIndicator1Required, if applicable.Enter “1” (one) if reporting rollover
(Simplified(Amount Code 2) or Fair Market Value (Amount Code 5) for a SEP.
Employee Pension)Otherwise, enter a blank.
549SIMPLE Indicator1Required, if applicable. Enter “1” (one) if reporting a rollover
(Savings Incentive(Amount Code 2) or Fair Market Value (Amount Code 5) for a
Match Plan forSIMPLE. Otherwise, enter a blank.
Employees)

(17) Payee “B” Record - Record Layout Positions 544-750 for Form 5498 (Continued)
Field
Position Field Title Length Description and Remarks
550Roth1Required, if applicable.Enter “1” (one) if reporting a rollover
IRA(Amount Code 2) or Fair Market Value (Amount Code 5) for a Roth
IndicatorIRA. Otherwise, enter a blank.
551Blank1Enter blank.
552Education1Required, if applicable.Enter “1” (one) if reporting a rollover
IRA(Amount Code 2) or Fair Market Value (Amount Code 5) for an
IndicatorEducation IRA. Otherwise, enter a blank.
553-662Blank 110Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information for
Entriesstate or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for fil-
ing requirements. If this field is not utilized, enter blanks.
723-746Blank24Enter blanks.
747-748Combined 2If this payee record is to be forwarded to a state agency as part of the
Federal/StateCombined Federal/State Filing Program, enter the valid state code
Codefrom Part A, Sec. 16, Table 1. For those payers or states not partici-
pating in this program, enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 5498
May 21, 200112642001–21 I.R.B.
Blank IRASEPSIMPLERothBlankEducation
IndicatorIndicatorIndicatorIRAIRA
IndicatorIndicator
544-546547548549550551552
BlankSpecialBlankCombinedBlank
DataFederal/or CR/LF
EntriesState
Code
553-662663-722723-746 747-748749-750
(18) Payee “B” Record - Record Layout Positions 544-750 for Form 5498-MSA
Field
Position Field Title Length Description and Remarks
544-546Blank3Enter blanks.
547Medicare+1Enter “1” (one) for Medicare+Choice MSA.
Choice MSA
Indicator
548-662Blank115Enter blanks.

(18) Payee “B” Record - Record Layout Positions 544-750 for Form 5498-MSA (Continued)
Field
Position Field Title Length Description and Remarks
663-722Special60This portion of the “B” Record may be used to record information
Datafor state or local government reporting or for the filer’s own purposes.
EntriesPayers should contact the state or local revenue departments for fil-
ing requirements. If this field is not utilized, enter blanks.
723-748Blank26Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form 5498-MSA
2001–21 I.R.B.1265May 21, 2001
BlankMedicare +BlankSpecial DataBlankBlank or
Choice MSAEntriesCR/LF
Indicator
544-546547548-662663-722723-748749-750
(19) Payee “B” Record - Record Layout Positions 544-750 for Form W-2G
Field
Position Field Title Length Description and Remarks
544-546Blank 3 Enter blanks.
547 Type of1Required.Enter the applicable type of wager code from the table
Wager Codebelow:
CodeCategor
y
1Horse race track (or off-track betting of a
horse track nature)
2Dog race track (or off-track betting
of a dog track nature)
3Jai-alai
4State-conducted lottery
5Keno
6Bingo
7Slot machines
8 Any other type of gambling winnings
548-555Date Won 8Required.Enter the date of the winning transaction in the format
YYYYMMDD (e.g., January 5, 2001, would be 20010105). Do not
enter hyphens or slashes. This is not the date the money was paid,
if paid after the date of the race (or game).
556-570Transaction 15 Required.For state-conducted lotteries, enter the ticket or other
identifying number. For keno, bingo, and slot machines, enter the
ticket or card number (and color, if applicable), machine serial num-
ber, or any other information that will help identify the winning
transaction. For all others, enter blanks.
571-575 Race 5 If applicable, enter the race (or game) relating to the winning ticket;
otherwise, enter blanks.
576-580 Cashier5 If applicable, enter the initials or number of the cashier making the
winning payment; otherwise, enter blanks.

(19) Payee “B” Record - Record Layout Positions 544-750 for Form W-2G (Continued)
Field
Position Field Title Length Description and Remarks
581-585 Window 5If applicable, enter the window number or location of the person
paying the winning payment; otherwise, enter blanks.
586-600 First ID 15 For other than state lotteries, enter the first identification number of
the person receiving the winning payment; otherwise, enter blanks.
601-615 Second ID 15 For other than state lotteries, enter the second identification number
of the person receiving the winnings; otherwise, enter blanks.
616-662 Blank 47Enter blanks.
663-722Special Data 60This portion of the “B” Record may be used to record information for
Entriesstate or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for fil-
ing requirements. If this field is not utilized, enter blanks.
723-734State Income 12State income tax withheld is for the convenience of the filers. This
Tax Withheld information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting state tax withheld, this field may be used as a
continuation of the Special Data Entries Field.
735-746Local Income12Local income tax withheld is for the convenience of the filers. This
Tax Withheldinformation does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be zero-
filled. If not reporting local tax withheld, this field may be used as
a continuation of the Special Data Entries Field.
747-748Blank2Enter blanks.
749-750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record - Record Layout Positions 544-750
for Form W-2G
May 21, 200112662001–21 I.R.B.
BlankType ofDateTransactionRaceCashierWindowFirst ID
WagerWon
Code
544-546547548-555556-570571-575576-580581-585586-600
601-615616-662663-722723-734735-746747-748749-750
Second IDBlankSpecialStateLocalBlankBlank
DataIncomeIncomeor CR/LF
EntriesTaxTax
Withheld Withheld
Sec. 11. End of Payer “C” Record - General Field Descriptions and Record Layout
.01The End of Payer “C” Record is a fixed record length of 750 positions. The control total fields are each 18 positions in length.
.02The “C” Record consists of the total number of payees and the totals of the payment amount fields filed by a given payer
and/or a particular type of return. The “C” Record must be written after the last “B” Record for each type of return for a given payer.
For each “A” Record and group of “B” Records on the file, there must be a corresponding “C” Record. A file format diagram is
located at the end of Part E, Miscellaneous Information, just before the mail labels.

.03In developing the “C” Record, for example, if a payer used Amount Codes 1, 3, and 6 in the “A” Record, the totals from the
“B” Records would appear in Control Totals 1 (positions 16-33), 3 (positions 52-69), and 6 (positions 106-123) of the “C” Record.
In this example, positions 34-51, 70-105, and 124-231 would be zero-filled. Positions 232-748 would be blank filled.
.04Payers/Transmitters should verify the accuracy of the totals. IRS/MCC will request a replacement file for files with missing
or incorrect “C” Records.
Record Name: End of Payer “C” Record
Field
Position Field Title Length Description and Remarks
1 Record Type 1 Required.Enter “C.”
2-9 Number of 8 Required.Enter the total number of “B” Records covered by the
Payees preceding “A” Record. Right-justify information and fill unused
positions with zeros.
10-15 Blank 6 Enter blanks.
16-33 Control 18 Required.Accumulate totals of any payment amount fields in the
Total 1 “B” Records into the appropriate control total fields of the “C” Record.
34-51 Control 18 Control totals must be right-justified and unused control total fields
Total 2zero-filled.All control total fields are 18 positions in length.
52-69 Control 18
Total 3
70-87 Control 18
Total 4
88-105 Control 18
Total 5
106-123 Control 18
Total 6
124-141 Control 18
Total 7
142-159 Control 18
Total 8
160-177 Control 18
Total 9
178-195 Control 18
Total A
196-213Control 18
Total B
214-231 Control 18
Total C
232-748Blank 517Enter blanks.
749-750Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
End of Payer “C” Record - Record Layout
2001–21 I.R.B.1267May 21, 2001
RecordNumberBlankControlControlControlControlControlControl
TypeofTotalTotalTotalTotalTotalTotal
Payees123456
12-910-1516-3334-5152-6970-8788-105106-123
ControlControlControlControlControlControlBlankBlank
TotalTotalTotalTotalTotalTotalor CR/LF
78 9 A B C
124-141142-159160-177178-195196-213214-231232-748749-750

Sec. 12. State Totals “K” Record - General Field Descriptions and Record Layout
.01The State Totals “K” Record is a fixed record length of 750 positions. The control total fields are each 18 positions in length.
.02The “K” Record is a summary for a given payer and a given state in the Combined Federal/State Filing Program, used only
when state reporting approval has been granted.
.03The “K” Record will contain the total number of payees and the totals of the payment amount fields filed by a given payer
for a given state. The “K” Record(s) must be written after the “C” Record for the related “A” Record. A file format diagram is
located at the end of Part E, Miscellaneous Information, just before the mail labels.
.04In developing the “K” Record, for example, if a payer used Amount Codes 1, 3, and 6 in the “A” Record, the totals from the
“B” Records coded for this state would appear in Control Totals 1, 3, and 6 of the “K” Record.
.05There mustbe a separate “K” Record for each statebeing reported.
.06Refer to Part A, Sec. 16, for the requirements and conditions that mustbe met to file via this program.
(1) State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID,
1099-PATR, 1099-R, and 5498
Field
Position Field Title Length Description and Remarks
1Record Type 1 Required.Enter “K.”
2-9 Number of 8 Required.Enter the total number of “B” Records being coded for
Payeesthis state. Right-justify information and fill unused positions with
zeros.
10-15 Blank 6 Enter blanks.
16-33 Control 18Required.Accumulate totals of any payment amount fields in the
Total 1 “B” Records for each state being reported into the appropriate control
34-51Control 18 total fields of the appropriate “K” Record. Control totals must be
Total 2right-justified and unused control total fields zero-filled. All
52-69Control18control total fields are 18 positions in length.
Total 3
70-87 Control 18
Total 4
88-105 Control 18
Total 5
106-123 Control 18
Total 6
124-141 Control 18
Total 7
142-159 Control 18
Total 8
160-177 Control 18
Total 9
178-195 Control 18
Total A
196-213 Control 18
Total B
214-231 Control 18
Total C
232-706 Blank 475Enter blanks.
707-724State Income18State income tax withheld total is for the convenience of the filers.
Tax Withheld Aggregate totals of the state income tax withheld field in the Payee “B”
TotalRecords; otherwise, enter blanks.
725-742Local Income18Local income tax withheld total is for the convenience of the filers.
Tax WithheldAggregate totals of the local income tax withheld field in the Payee “B”
TotalRecords; otherwise, enter blanks.
May 21, 200112682001–21 I.R.B.

(1) State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID,
1099-PATR, 1099-R, and 5498 (Continued)
Field
Position Field Title Length Description and Remarks
743-746Blank4Enter blanks.
747-748 Combined Federal/ 2 Required. Enter the code assigned to the state which is to receive
State Codethe information. (Refer to Part A, Sec. 16, Table l.)
749-750 Blank 2 Enter blanks or carriage return/line feed (CR/LF) characters.
State Totals “K” Record - Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC,
1099-OID, 1099-PATR, 1099-R, and 5498
2001–21 I.R.B.1269May 21, 2001
RecordNumberBlankControlControlControlControlControlControl
TypeofTotal Total Total Total Total Total
Payees123456
ControlControlControlControlControlControlBlankStateLocal
Total TotalTotalTotalTotalTotalIncomeIncome
78 9 A B CTax Tax
WithheldWithheld
TotalTotal
BlankCombinedBlank or
Federal/StateCR/LF
Code
Sec. 13. End of Transmission “F” Record - General Field Descriptions and Record Layout
.01The End of Transmission “F” Record is a fixed record length of 750 positions. The “F” Record is a summary of the number
of payers in the entire file.
.02This record should be written after the last “C” Record (or last “K” Record, when applicable) of the entire file.
Record Name: End of Transmission “F” Record
Field
Position Field Title Length Description and Remarks
1 Record Type 1 Required.Enter “F.”
2-9 Number of 8 Enter the total number of Payer “A” Records in the entire file
“A” Records (right-justify and zero-fill) or enter all zeros.
10-30 Zero 21 Enter zeros.
31-748 Blank 718Enter blanks.
749-750Blank 2Enter blanks or carriage return/line feed (CR/LF) characters.
12-910-1516-3334-5152-6970-8788-105106-123
124-141142-159160-177178-195196-213214-231232-706707-724725-742
743-746747-748749-750

End of Transmission “F” Record - Record Layout
May 21, 200112702001–21 I.R.B.
RecordNumber ofZeroBlankBlank
Type“A” Recordsor CR/LF
12-910-3031-748749-750
Part C. Electronic Filing Specifications
Sec. 1. Background
1. All electronic filing of information returns are received at IRS/MCC via the FIRE (Filing Information Returns Electronically)
System. The FIRE System can be accessed via analog and ISDN BRI connections. The system is designed to support the electronic
filing of information returns only. The telephone number for electronic filing is (304-262-2400).
Sec. 2. Advantages of Filing Electronically
Some of the advantages of filing electronically are as follows:
(1)Results available within 1-2 workdays regarding the acceptability of the data transmitted. It is the filer’s responsibility to dial
back in and check results.
(2) Later due date than magnetic media or paper for electronically filed Forms 1098, 1099, and W-2G (refer to Part A, Section
10.01).
(3)Allows more attempts than magnetic media filing to correct bad files within a specific time frame before imposing penalties
(refer to Part C, Section 6.05).
(4)Better customer service due to on-line availability of transmitter’s files for research purposes.
(5)Extended period to test electronic files: November 1, 2001, to February 15, 2002.
Sec. 3. General
.01Electronic filing of Forms 1098, 1099, 5498, and W-2G, originals, corrections, and replacements of information returns is
offered as an alternative to magnetic media (tape, tape cartridge, or diskette) or paper filing, but is not a requirement. Transmitters
filing electronically will fulfill the magnetic media requirements for those payers who are required to file magnetically. It may also
be used by payers who are under the filing threshold requirement, but would prefer to file their information returns electronically.
If the original file was sent magnetically, but IRS/MCC has requested a replacement file, the replacement may be transmitted elec-
tronically. Also, if the original file was submitted via magnetic media, any corrections may be transmitted electronically.
.02The electronic filing of information returns is not affiliated with the Form 1040 electronic filing program. These two pro-
grams are totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the
electronic filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist tax-
payers in the filing of Form 1040 and will direct taxpayers, to the Customer Service toll-free number (1-800-829-1040).
.03Files submitted to IRS/MCC electronically must be in standard ASCII code. No magnetic media or paper forms are to be
submitted with the same information as the electronically submitted file.
.04 If a request for extension is approved, transmitters who file electronically will be granted an extension of time to file. Part
A, Sec. 11, explains procedures for requesting extensions of time. Filers are encouraged to file their data as soon as possible.
.05The formats of the “T”, “A”, “B”, “C”, “K”, and “F” records are the same for electronically filed records as they are for mag-
netic media, and must be in standard ASCII code. For electronically filed documents, each transmission is considered a separate
file; therefore, each transmission mustbegin with a Transmitter “T” Record and end with an End of Transmission (EOT) “F” Record.
Sec. 4. Electronic Filing Approval Procedure
.01Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned prior to submitting files electronically. (Filers
who currently have a TCC for magnetic media filing will not be assigned a second TCC for electronic filing.) Refer to Part A, Sec.
7, for information on how to obtain a TCC.
.02Once a TCC is obtained, electronic filers assign their own logon name, password and PIN (Personal Identification Number)
and do not need prior or special approval. See Sec. 7, for more information on the PIN.
.03If a filer is submitting files for more than one TCC, it is not necessary 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 are up to 8 alpha/numerics, which are case sensitive. However, if filers forget their
password or PIN, call 304-263-8700for assistance. The FIRE System will require users to change their passwords on a yearly basis.

Sec. 5. 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 Year 2001(returns to be filed in 2002), it must
be submitted to IRS/MCC no earlier thanNovember 1, 2001, and no later thanFebruary 15, 2002.
.02If a filer encounters problems while transmitting the electronic test file, contact IRS/MCC for assistance at 304-263-8700.
.03Filers can verify the status of the transmitted test data by connecting to the FIRE System at 304-262-2400. This information
will be available within 1-2 workdays after the transmission is received by IRS/MCC.
.04Form 4804 is no longer required for test files submitted electronically.See Part C, Sec.7.
.05 A test file is required from filers who want approval for the Combined Federal/State Filing Program. See Part A, Sec.
16, for further details.
Sec. 6. Electronic Submissions
.01Electronically filed information may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be
available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern time by calling 304-263-8700.
.02 The FIRE System will be down from December 27, 2001, through January 6, 2002. This allows IRS/MCC to update its
system to reflect current year changes.
.03Data compression is encouraged when submitting information returns electronically. WinZip and PKZip are acceptable com-
pression packages. UNIX COMPRESS may be acceptable; however, a test file is recommended to verify compatibility. IRS/MCC
cannot accept self-extracting zip files or compressed files containing multiple files.
The time required to transmit information returns electronically will vary depending on the modem speed and the type of data
compression used, if any. The time required to transmit a file can be reduced by as much as 95 percent by using compres-
sion.
The following are transmission rates achieved in test uploads at MCC using compressed files. The transmission rates will vary
depending on the modem speeds.
2001–21 I.R.B.1271May 21, 2001
Transmission
Speed in bps1000 Records10,000 Records100,000 Records
19.2K34 Sec.6 Min.60 Min.
56K20 Sec.3 1/2 Min.33 Min.
128K (ISDN)8 Sec.1 Min.10 Min.
.04Files submitted electronically will be assigned a unique filename by the FIRE System (the users may name files anything
they choose from their end). 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 MCC to identify the file,
if assistance is required.
.05If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was transmitted or 4 replace-
ment attempts within that 60 day period, whichever comes first, to transmit an acceptable file. If an acceptable file is not received
within 60 days or within 4 replacement attempts, then the payer could be subject to late filing penalties. This only applies to files
originally sent electronically.
.06The following definitions have been provided to help distinguish between a correction and a replacement:
• Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit-
ted to and processed by IRS/MCC, but contained erroneous information.
*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 FILE STATUS on the FIRE System indicated the original
file was bad. After the necessary changes have been made, the file must be transmitted through the FIRE System. (See Note ).
*Note: Filers should never transmit anything to IRS/MCC as a “Replacement” file unless FILE STATUS on the FIRE
System indicates the file is bad.
.07The TCC in the Transmitter “T” Record must be the TCC used to transmit the file; otherwise, the file will be considered an
error.

Sec. 7. PIN Requirements
.01The Form 4804 is not required for electronic files. Effective 1/1/2002 all new users will be prompted to create a PIN con-
sisting of 10 numerics when establishing their initial logon name and password. All users having existing accounts will be prompt-
ed for a PIN assignment at the first logon after 12/31/2001.
.02Filers must provide some on line information, such as, TCC, EIN, Company name, contact person and telephone number,
before establishing their PIN number.
.03The PIN is required each time a file is sent electronically and is permission to release the file. If you forget your PIN, please
call 304-263-8700 for assistance.
.04 If the file is good, it is released for mainline processing 10 calendar days from receipt. Contact us at 304-263-8700 within
this 10 day period if there is a reason the file should not be released for further processing. If the file is bad, normal replacement
procedures are followed.
Sec. 8. Electronic Filing Specifications
.01The FIRE System is designed exclusively for the filing of Forms 1042-S, 1098, 1099, 5498, 8027, W-2G and W-4.
.02A transmitter must have a TCC before a file can 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 File Status area of the FIRE System within 1-2 business days.
It is the filer’s responsibility to dial back to verify the acceptability of files submitted by checking the file status area of the system.
Forms 1042-S, 8027 and W-4 require a longer processing time.
.04Connect to the FIRE System by dialing 304-262-2400.This number supports analog connections from 1200bps to 56Kbps
or ISDN BRI 128Kbps. The system can be accessed via Dial-up network/web browser (see Part C, Sec. 9)or communications soft-
ware such as Hyperterminal, Procomm, PCAnywhere or other VT100 emulation products (see Part C, Sec.10). The Dial-up net-
work/web browser (point-to-point) will provide an Internet-like look, however, it is not the Internet.
Sec. 9. Dial-up Network/Browser Specifications (Web Interface)
.01 The following are some general instructions (many of these may already be set by default in your software):
Dial-up network settings:
(a) Set dial-up server type to PPP
(b)Set network protocol to TCP/IP
(c)Disable software compression
(d)Disable PPP-LCP extensions (NT and 2000)
Browser settings:
(a) Browser must be capable of file uploads (i.e., Internet Explorer 4.0, Netscape 2.0 or higher)
(b)Enter the URL address of http://10.225.224.2
after you have connected via dial-up. (Remember, this is a point-to-point
connection, not the Internet.)
.02Due to the large number of communication products available, it is impossible to provide specific information on all soft-
ware/hardware configurations. However, since most filers use Windows 95, 98, NT, 2000 or ME software (more current versions are
similar), the following instructions are geared toward those products:
UPLOADING FILES WITH DIAL-UP NETWORKING/WEB
BROWSER IN WINDOWS 95/98/NT/2000/ME
Tips
(1) This is a point-to-point connection – not the Internet.
(2) Your browser must be capable of file uploads, i.e., Internet Explorer 4.0 or Netscape Navigator 2.0 or higher.
(3) If you currently access the Internet via a LAN or a PROXY server, you will need to disable those options in your browser and
enable ‘Connect to the Internet using a modem’.
(4) These instructions will vary slightly depending upon your version of Windows.
(5) Before dialing have your TCC and EIN available.
Select Programs
Accessories
Communications (Windows 98)
Dial-Up Networking
May 21, 200112722001–21 I.R.B.

First time connecting with Dial-Up Network(If you have logged on previously, skip to Subsequent Dial-up Network
Connections.)
The first time you dial-in, you will need to configure your Dial-Up Networking.
Select ‘Make new connection’.
Type a descriptive name for the system you are calling.
Select your modem.
Click ‘Next’.
Enter area code 304 and telephone number262-2400.
Click ‘Next’.
When you receive a message that you have successfully created a new Dial-Up Networking connection, click‘Finish’.
Click ‘Connect’ to dial. If you are prompted for a user name and password, leave blank unless needed by your system, click ‘OK’.
When you receive the message that you have connected to our system, click on your Web Browser (remember, it is not via
the Internet – this is a point-to-point connection).
In the URL Address enter http://10.225.224.2and press ENTER.
Subsequent Dial-Up Network connections
Click ‘Connect’.
If prompted for user name and password, leave blank unless needed by your system, click ‘OK’.
When you receive ‘Connection Complete’, click ‘OK’.
Click on your Web Browser (remember, you are not connecting via the Internet).
In the URL Address enter http://10.225.224.2and press ENTER.
First time connection to the FIRE System(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 ‘Create’.
Enter your logon name(most users logon with their first and last name).
Enter your password(the password is user assigned and is case sensitive).
Click ‘Create’.
If you receive the message ‘account created’, click ‘OK’.
Click ‘Start the Fire Application’
Subsequent connections to the FIRE System
Click ‘Log On’.
Enter yourlogon name(most users logon with their first and last name).
Enter your password(the password is user assigned and is case sensitive).
At Menu Options:
Click ‘Information Returns’
Enter your TCC:
Enter your EIN:
Click ‘Submit’.
The system will then display the company name, address, city, state, ZIP code, contact and phone number. This information
will be used to contact or send any correspondence regarding this transmission. Update as appropriate and/or click ‘Accept’.
Click one of the following:
Original File
Correction File
Test File
Replacement File(if you select this option, select one of the following):
FIRE Replacement (file was originally transmitted on this system)
Click file to be replaced
or
2001–21 I.R.B.1273May 21, 2001

Magnetic Media Replacement File
Enter the alpha character from Form 9267, Media Tracking Slip, that was returned with your correspondence requesting
a replacement file.
Click ‘Submit’.
Enter the drive/path/filename of the file you want to upload or click ‘Browse’to locate the file.
Click ‘Upload’.
When the upload is complete, the screen will display the total bytes received
and the IRS assigned file name.
If you have more files to upload for that TCC:
Click ‘File Another’; otherwise,
Click ‘Back to Main Menu’.
It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 1-2 business days.
To check the acceptability of a previously submitted file:
At the Main Menu:
Click ‘File Stats’
Enter your TCC:
Enter your EIN:
Click on the appropriate filename to get results.
If ‘Results’ indicate:
‘File Good’and you agree with the ‘Count of Payees’ you are finished with this file. (If you do not want the file processed,
you must contact IRS/MCC within 10 days from the transmission of your file.)
‘File Bad’- Correct the errors and resubmit the file as a ‘replacement’.
‘Not Yet Processed’- File has been received, but results are not available. Please recheck in several days.
Click on the desired file for a detailed report of your transmission.
When finished viewing your files, click on ‘Main Menu’.
Click ‘Log Off’.
Close your Web Browser.
IMPOR
T
ANT
Go back into your Dial-Up Network and click ‘hang-up’; otherwise, you may remain connected and incur unnecessary
phone charges.
Sec. 10. Communication Software Specifications (Text Interface)
.01Communications software settings must be:
- No parity
- Eight data bits
- One stop bit
.02 Terminal Emulation must be VT100.
.03Due to the large number of communication products available, it is impossible to provide specific information on all soft-
ware/hardware configurations. However, since most filers use Windows 95, 98, NT, 2000 or ME software, the following
instructions are most compatible with those products (Procomm, PCAnywhere and VT100 emulation products are also
acceptable.)
.04 Before dialing in, have your TCC and EIN available.
Uploading Files Using Hyperterminal in Windows 95, 98, NT, 2000 or ME
(These instructions will vary slightly depending upon your version of Windows.)
Select Programs
Accessories
Communications (Windows 98)
Hyperterminal
May 21, 200112742001–21 I.R.B.

The first time you log on, select Hyperterminal, Hypertermor Hyperterm.exe, whichever is available on your system. With
subsequent connections, select the saved icon.
A box will appear titled ‘Connection Description’.
Enter a name and choose an iconfor the connection:
Country Code: United States of America
Area Code: 304
Phone Number: 262-2400
Connect Using: (default)
(If you need to modify the phone number, select File,then Propertiesto enter defaults for the area code, phone numbers
and/or special access codes.)
Click on Dial.
A ‘Connect’ box will appear to show the status.
Once you have connected to the FIRE System, if you do not get a menu within a few seconds, press the ENTERkey one time.
First Time Logon
When you have connected to the system, enter ‘new’ to create your logon name and password.
Complete the registration information and enter ‘y’ to create account.
Logon Name and Password
Logon Name: Enter a logon name. Most users enter their first and last name as the logon name.
Password: Enter a password of your choosing (1-8 alpha/numerics - case sensitive).
After entering the password, you will go to the Main Menu.
Transferring Your Electronic File
Enter ‘A’for Electronic Filing.
After reading Information Notice, pressENTER.
Enter ‘A’ for Forms 1098, 1099, 5498, W-2G, 1042-S, 8027 and Questionable Forms W-4.
Press the Tab key to advance to TCC box; otherwise, enter ‘E’ to exit.
Enter your TCC:
Enter your EIN:
The system will then display the company name, address, city, state, ZIP code, and phone number. This information will be used
for correspondence regarding this transmission. If you need to update, enter ‘n’ to change information; otherwise, enter ‘y’ to accept.
Select one of the following:
‘A’ for an Original file
‘B’ for a Replacement file
‘C’ for a Correction file
‘D’ for a Test file
If you selected ‘B’ for a replacement file, select one of the following:
‘A’ Replacement Files For This System
This option is to replace an original/correction file that was submitted electronically on this system but was bad and
requires replacement. Select the file to be replaced.
or
‘B’ Magnetic media replacement files
Enter the alpha character from Form 9267, Media Tracking Slip, that was sent with the correspondence requesting a
replacement file.
Choose one of the following protocols (Hyperterminal is normally set to Zmodem by default):
X- Xmodem
Y- Ymodem
Z- Zmodem (Zmodem will normally give you the fastest transfer rate.)
At this point, you must start the upload from your PC.
To send a file:
Go to the hyperterminal menu bar.
2001–21 I.R.B.1275May 21, 2001

Click on Transfer.
Click on Send file.
A box will appear titled ‘Send File’.
Enter the drive/path/filename or click on Browseto locate your file.
Click on Send.
When the upload is complete, the screen will display the total bytes received and
the IRS assigned file name.
Press ENTERto continue.
If you have more files to send for the same TCC/EIN, enter ‘y’; otherwise, enter ‘n’.
It is your responsibility to check the acceptability of your file; therefore, be sure to dial back into the system in 1 - 2 business days.
To check acceptability of a previously submitted file:
At the Main Menu:
Enter ‘B’ for file status.
Press the Tab key to advance to TCC box; otherwise, enter ‘E’ to exit.
Enter your TCC:
Enter your EIN:
Choose the appropriate option.
Tab to appropriate file and press ENTER.
If ‘Results’ indicate:
‘File Good’and you agree with the ‘Count of Payees’, you are finished with this file. (If you do not want the file processed,
you must contact IRS/MCC within 10 days from the transmission of your file.)
‘File Bad’- Correct the errors and resubmit the file as a replacement.
‘Not Yet Processed’- File has been received, but results are not available. Please recheck in several days.
When you are finished, enter ‘E’ from the ‘Main Menu’ to logoff.
Enter ‘2’ to hang-up.
Sec. 11. Modem Configuration
.01Hardware features
(a)Enable hardware flow control
(b)Enable modem error control
(c)Enable modem compression
Sec. 12. Common Problems Associated with Electronic Filing
.01Refer to Part A, Section 19, for common format errors associated with magnetic/electronic files.
.02The following are the major non-format errors associated with electronic filing:
1. Transmitter does not dial back to the electronic 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 acceptabil-
ity 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 want the file processed, you must contact IRS/MCC within 10 daysfrom the transmission of your file.
2. Incorrect file is not replaced timely.
If your file 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.
May 21, 200112762001–21 I.R.B.

4. Transmitter sends a file and 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 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 us at 304-263-8700 to see if this is a pos-
sibility. However, this will count as a replacement. (See Part A, Sec. 17, for the definition of replacement.)
5. Transmitter sends an original file that is good, then sends a correction file for the entire file even though there are only a
few 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 electronically must 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, you will need to enter the EIN of the company assigned to the TCC. When you upload the file,
it will contain the EIN’s for the other companies that you are filing for. This is the information that will be passed forward.
8. Transmitter sent the wrong file, what should be done?
Call us as soon as possible @ (304) 263-8700, ext. 3. We may be able to stop the file before it has been processed. Please do not
send a replacement for a file that is marked as a good file.
.03The following are the most common problems encountered when connecting with dial-up networking/web browser:
1. Transmitter is unable to connect to the FIRE System using dial-up networking.
1.The user name and password should be blank when trying to connect unless it is needed by your system.
2.Windows 95/98: Disable ‘enable software compression’
3.Windows NT/2000: Disable both ‘enable software compression’ and ‘enable PPP/LCP extensions’
4.TCP/IP should be the only network protocol that is enabled.
(Make sure you are using analog lines rather than digital.)
2. Transmitter is connecting using dial-up networking, but is unable to bring up the URL address using the web browser.
1. Proxy server should be disabled for a dial-up connection.
2. ‘Using a modem’ option should be selected.
3. The home page should either display http://10.225.224.2 or be set to ‘about:blank’.
4. The security level should be set at medium.
5. The option ‘enable software compression’ should be disabled under Dial-Up Networking.
3. Transmitter clicks on ‘start the fire application’, but the logon screen is displayed again.
Your browser must be set to receive ‘cookies’.
4. Transmitter is getting a menu when connecting with dial-up networking.
The option ‘pop-up a terminal window’ should be disabled.
2001–21 I.R.B.1277May 21, 2001

5. Transmitter cannot find the browse button to upload file.
If using Internet Explorer, you must have version 4.0 or higher. If using Netscape Navigator, it must be version 2.0 or higher
6. The line is busy when dialed.
We have enough lines available that you should not get this message. Check the phone number being dialed. It should be 304-262-
2400. If you need a number such as an 8 or a 9 to access an outside line, make sure it is present. Also, some companies require an
access code for long distance dialing.
7. I am receiving the error message “Remote PPP Peer Not Responding”
Disable ‘enable PPP/LCP Extensions’ in Dial-Up Networking
.04 The following are the most common problems encountered when connecting with hyperterminal.
1. Transmitter is unable to connect using hyperterminal.
1.If you need a number such as an 8 or a 9 to access an outside line, make sure it is present.
2.Set the terminal emulation to VT100.
3 Try lowering the modem speed.
4. Turn the modem off and then back on to reset it.
Make sure you are using analog lines rather than digital.
2. Transmitter is getting the message ‘annex command line interpreter’.
Disconnect and try again. You may need to lower the modem speed if this happens several times in a row.
3. When trying to logon, the cursor is not in the correct box, or the menus are distorted.
The terminal emulation must be set to VT100. Also, verify that the data bits are set at 8, the stop bit is set at 1 and parity is set at
None.
4. Transmitter was able to connect and the menu is displayed, but is unable to type anything.
Scroll lock cannot be turned on.
5. When transmitter connects, the menus keep scrolling and display garbage characters.
Make sure ‘Use error control’ and ‘Compress data’ are enabled under the Advanced Connection Settings.
6. Transmitter receives message ‘bad data packet’ when the file is transmitting. What does this mean?
Your modem is having problems sending the data, so it is re-trying to send it. Normally, if the transfer does not abort, the file will
be sent successfully.
Part D. Magnetic/Electronic Specifications For Extensions of Time
Sec. 1. General
.01The specifications in Part D include the required 200-byte record format for extensions of time to file requests submitted mag-
netically or electronically. Also included are the instructions for the information that is to be entered in the record. Filers are
advised to read this section in its entirety to ensure proper filing.
.02Only filers who have been assigned a Transmitter Control Code may request an extension of time magnetically or electroni-
cally. If you meet the threshold of more than 50 payers when requesting an extension but are below the 250 documents threshold,
May 21, 200112782001–21 I.R.B.

you must still submit a Form 4419, Application for Filing Information Returns Magnetically/Electronically. Requests for extensions
of time may be made for Forms 1042-S, 1098, 1099, 5498, W-2G, W-2, and 8027.
.03For Tax Year 2001(returns to be filed in 2002), transmitters requesting an extension of time to file for more than 50 payers
(not payees) are required to file the extension request magnetically or electronically. Transmitters requesting an extension of
time for 10 to 50 payers (not payees) are encouraged to file the request magnetically or electronically. The request may be filed on
tape, tape cartridge, 8mm, 4mm, Quarter Inch Cartridges (QIC), 3 1/2-inch diskette, or electronically.
.04 For extension requests filed on magnetic media, the transmitter must mail the completed, signed Form 8809, Request for
Extension of Time To File Information Returns, in the same package as the corresponding media or fax it to 304-264-5602. For
extension requests filed electronically, the transmitter must fax the Form 8809 the same day the transmission is made.
.05 Transmitters submitting an extension of time magnetically or electronically should not submit a list of payer names
and TINs with the Form 8809 since this information is included on the magnetic or electronic file. However, Line 6 of the
Form 8809 must be completed with the total number of filers included on the magnetic media or electronic file.
.06To be considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the request
will be denied.
.07A magnetically filed request for an extension of time should be sent to the following address:
IRS-Martinsburg Computing Center
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/MCC and the time factor involved in processing the Form 8809,
it is imperative that the attention line be present on all envelopes or packages containing Extension of Time (EOT) requests.
.08Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns,
and delivered by United States mail to the IRS/MCC after the due date, are treated as timely under the “timely mailing as timely fil-
ing” rule. A similar rule applies to designated private delivery services (PDSs). See Part A, Sec. 10, for more information on PDSs.
For requests delivered by a designated PDS, but through a non-designated service, the actual date of receipt by IRS/MCC will be
used as the filing date.
.09Transmitters who submit their extension of time requests magnetically or electronically will receive a letter from IRS/MCC
with an attached list of the payers, based on information contained in the file, specifying approval and/or denial.
.10Do not submit tax year 2001 extensions of time to file requests on magnetic media before January 1, 2002or electronically
before January 7, 2002.
.11It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances a request
for an extension of time could be denied, and the transmitter will receive a denial letter. When the denial letter is received, the trans-
mitter has 20 days to provide the additional information and resubmit the extension request to IRS/MCC.
.12Each piece of magnetic media musthave an external media label containing the following information:
(a)Transmitter name
(b)Transmitter Control Code (TCC)
(c) Tax year
(d)The words “Extension of Time”
(e) Record count
.13A request for an extension of time to file is not automatically granted. Approval or denial is dependent on information pro-
vided on the Form 8809. If the Form 8809 is not completed properly, processing may be delayed or the request may be denied.
.14If the first request for an extension of time to file was submitted magnetically or electronically, additional extension requests
should be submitted in the same manner.
.15If an additional extension of time is needed, a second Form 8809 and file may be submitted before the end of the initial exten-
sion period with a postmark reflecting the date mailed. Line 7 on the form should be checked to indicate that the original extension
has been received and the additional extension is being requested.
.16See Part A, Sec. 11, for complete information on requesting an extension of time to file information returns. If there are addi-
tional questions or concerns, contact IRS/MCC.
Sec. 2. Magnetic Tape, Tape Cartridge, 8mm, 4mm and QIC (Quarter-Inch Cartridge), 3 1/2-inch Diskette and Electronic
Specifications
*Note: Beginning in calendar year 2003 for Tax Year 2002, 9 track magnetic tape will no longer be an acceptable method
for submitting Information Returns to IRS/MCC.
.01Tape specifications are as follows:
2001–21 I.R.B.1279May 21, 2001

(a)9 track.
(b)EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information
Interchange) recording mode.
(c)1600 or 6250 BPI.
(d)A block must not exceed 32,600 tape positions and must be a multiple of 200.
(e) Record length of 200 bytes.
(f)Labeled or unlabeled tapes may be submitted.
.02Tape cartridge specifications are as follows:
(a)Must be IBM 3480, 3490, 3590, 3590Eor AS400 compatible.
(b)Must meet American National Standard Institute (ANSI) standards and have the following characteristics:
(1)Tape cartridges will be 1/2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by
1-inch in dimension.
(2)Magnetic tape will be chromium dioxide particle based 1/2-inch tape.
(3)Cartridges will be 18-track, 36-track, 128-track or 256-track parallel. Indicate on the external media label if the tape car-
tridge is 18- or 36- track.
(4)Mode will be full function.
(5)The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(6)Either EBCDIC or ASCII.
(c) A block must not exceed 32,600 tape positions and must be a multiple of 200.
(d)Record length of 200 bytes.
(e)Labeled or unlabeled tape cartridges may be submitted.
.038mm, 4mm, and Quarter Inch Cartridge Specifications
(a)In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(1) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(a)Created from an AS400 operating system only.
(b)8mm (.315-inch) tape cartridges will be 2 1/2-inch by 3 3/4-inch.
(c)The 8mm tape cartridges must meet the following specifications:
TracksDensityCapacity
120 (43245 BPI)2.3 Gb
121 (45434 BPI)5 Gb
(d)Mode will be full function.
(e) Compressed data is not acceptable.
(f)Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded
Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must
appear on the external media label affixed to the cartridge.
(g)A file may consist of more than one cartridge; however, no more than 250,000 documents may be transmitted per file
or per cartridge. The filename, for example; IRSEOT, will contain a three digit extension. The extension will indi-
cate the sequence of the cartridge within the file, 1 of 3, 2 of 3, or 3 of 3, and will appear in the header label
IRSEOT.001, IRSEOT.002, and IRSEOT.003 on each cartridge of the file.
(2)The 8mm (.315-inch) tape cartridge records defined in this Revenue Procedure must be blocked subject to the following:
(a)A block must not exceed 32,600 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9’s;
however, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control
fields or block descriptor fields which describe the length of the block or the logical records within a block. The num-
ber of logical records within a block (the blocking factor) must be constant in every block with the exception of the
last block which may be shorter (see item (b) above). The block length must be evenly divisible by 200.
(d)Various SAVE commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e) Records may not span blocks.
*Note: Advanced Metal Evaporated (AME) cartridges are not acceptable.
(3)For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. IRSEOT may be used as a
suggested filename.
(4)For the purposes of this Revenue Procedure, the following must be used:
Tape Mark:
(a)Signifies the physical end of the recording on tape.
(b)For even parity, use BCD configuration 001111 (8421).
May 21, 200112802001–21 I.R.B.

(c)May follow the header label and precede and/or follow the trailer label.
(5)IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tape-
mark, but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
(b)4mm (.157-inch) cassettes are now acceptable with the following specifications:
(1)4mm cassettes will be 2 1/2-inch by 3-inch.
(2)The tracks are 1 (one).
(3)The density is 19 (61000 BPI).
(4) The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4 Gb.
(5) The general specifications for 8mm cartridges will also apply to the 4mm cassettes.
*Note: 4mm cassettes with a capacity of DDS-3 (125 meter) are not acceptable.
(c)Various Quarter-Inch Cartridges (QIC) (1/4-inch) are also acceptable.
(1) QIC cartridges will be 4” by 6”.
(2)QIC cartridges must meet the following specification:
SizeTracksDensityCapacity
QIC-248/9 5 (8000 BPI)45Mb or 60Mb
QIC-1201515 (10000 BPI) 120Mb or 200Mb
QIC-1501816 (10000 BPI) 150Mb or 250Mb
QIC-5252617 (16000 BPI) 525Mb
QIC-10003021 (36000 BPI) 1Gb
QIC-2Gb4234 (40640 BPI) 2Gb
(3)The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.
.04Diskette specifications are as follows:
(a)3 1/2-inches in diameter.
(b)ASCII recording mode only. Additional specifications may be found in Part B, Sec. 5, of this Revenue Procedure.
(c)Record length of 200 bytes.
(d) Diskettes must be created using the MS-DOS operating system.
(e) Filename of IRSEOT must be used. No other filenames are acceptable. If a file will consist of more than one diskette, the
filename IRSEOT will contain a three-digit extension. This extension will indicate the sequence of the diskettes within the
file. For example, the first diskette will be named IRSEOT.001, the second diskette will be named IRSEOT.002, etc.
(f)Delimiter character commas (,) or quotes (”) must not be used.
(g)Positions 199 and 200 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
.05 Electronic Filing specifications (See Note.)
(a) A transmitter must have a Transmitter Control Code (TCC).
(b)Filers can determine the acceptability of files submitted by checking the file status area of the system. These reports will
be available on the electronic system within 5 business days if the Form 8809 is received timely by IRS/MCC.
*Note: See Part C, Electronic Filing Specifications, for detailed information on filing with IRS/MCC electronically.
Sec. 3. Record Layout – Extension of Time
.01Positions 6 through 185 of the following record should contain information about the payerfor whom the extension of time
to file is being requested. Do not enter transmitter information in these fields. Only one TCC may be present in a file.
Record Layout for Extension of Time
Field
Position Field Title Length Description and Remarks
1-5 Transmitter 5Required. Enter the five digit Transmitter Control Code (TCC) issued
Control Codeby IRS. Only one TCC per file is acceptable.
6-14 Payer9Required. Must be the valid nine-digit EIN/SSN assigned to the
TINpayer. Do not enter blanks, hyphens or alpha characters.All
zeros, ones, twos, etc., will have the effect of an incorrect TIN. For
foreign entities that are not required to have a TIN, this field may be
blank; however, the Foreign Entity Indicator, position 187, mustbe
set to “X.”
2001–21 I.R.B.1281May 21, 2001

Record Layout for Extension of Time
Field
Position Field Title Length Description and Remarks
15-54Payer40Required. Enter the name of the payer whose TIN appears in
Namepositions 6-14. Left-justify information and fill unused positions
with blanks.
55-94Second Payer 40If additional space is needed, this field may be used to
Namecontinue name line information (e.g., c/o First National Bank); oth-
erwise, enter blanks.
95-134Payer 40Required. Enter the payer’s address. Street address should
Addressinclude number, street, apartment or suite number (or P.O. Box if
mail is not delivered to a street address).
135-174Payer City40Required. Enter payer city, town, or post office.
175-176Payer State2Required.Enter the payer valid U.S. Postal Service state abbrevia-
tion. (Refer to Part A, Sec. 18.)
177-185Payer ZIP9Required. Enter payer ZIP Code. If using a five-digit ZIP Code,
Codeleft justify information and fill unused positions with blanks.
186Document1Required. Enter the appropriate code of the document for which
Indicatoryou are requesting an extension of time.
(See Note.)
CodeDocument
1W-2
21098, 1098-E, 1098-T, 1099-A, 1099-B,
1099-C, 1099-DIV, 1099-G, 1099-INT,
1099-LTC, 1099-MISC, 1099-MSA,
1099-OID, 1099-PATR, 1099-R, 1099-S, or
W-2G
35498
41042-S
5REMIC Documents
(1099-INT or 1099-OID)
65498- MSA
* Note: Do not enter any other values in this field. Submit a separate record for each document. For example, if you are
requesting an extension for Form 1099-INT and Form 5498 for the same payer, submit one record with “2” coded in this
field and another record with “3” coded in this field. If you are requesting an extension for Form 1099-DIV and Form
1099-MISC for the same payer, submit one record with “2” coded in this field.
187Foreign1Enter character “X” if the payer is a foreign entity.
Entity Indicator
188-198Blank11Enter blanks.
199-200Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
May 21, 200112822001–21 I.R.B.

Extension of Time Record Layout
2001–21 I.R.B.1283May 21, 2001
TransmitterPayerPayerSecondPayer PayerPayer
Control TINNamePayerAddressCityState
CodeName
177-185186187188-198199-200
Part E. Miscellaneous Information
Sec. 1. Addresses for Martinsburg Computing Center
Send applications to file, correspondence, and magnetic media files, to the following:
IRS—Martinsburg Computing Center
Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
Send all extension requests and waiver requests, to the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
Sec. 2. Telephone Numbers for Contacting IRS/MCC
Between 8:30 a.m. and 4:30 p.m. Eastern Time
Monday through Friday
Information Reporting Program Call Site: 304-263-8700 &
Or email the Call Site at mccirp@irs.gov
Telecommunication Device for the Deaf (TDD): 304-267-3367
HOURS OF OPERATION – FIRE SYSTEM & FAX
24 HOURS A DAY
7 DAYS A WEEK
Electronic Filing via FIRE: 304-262-2400
Information Returns FAX Machine: 304-264-5602
This is the end of Publication 1220 for Tax Year 2001.
PayerDocumentForeignBlankBlank
ZIPIndicatorEntityor CR/LF
CodeIndicator
1-56-1415-5455-9495-134135-174175-176

May 21, 200112842001–21 I.R.B.
New Revision of Publication
538,
Accounting Periods and
Methods
Announcement 2001–54
Publication 538, revised April 2001,
will be available soon from the Internal
Revenue Service. It replaces the April
1999 revision.
This publication provides information
on how to determine the appropriate
accounting year and accounting method
for your business.
You can get a copy of this publication by
calling 1-800-TAX-FORM (1-800-829-
3676). You can also write to the IRS Forms
Distribution Center nearest you. Check
your income tax package for the address.
The publication is also available on the IRS
Internet web site at www.irs.gov.
Revisions to Regulations
Relating to Withholding of Tax
on Certain U.S. Source Income
Paid to Foreign Persons and
Revisions of Information
Reporting Regulations;
Correction
Announcement 2001–55
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correction to final regulations.
SUMMARY: This document contains cor-
rections to final regulations (T.D. 8881,
2000–23 I.R.B. 1158) which were pub-
lished in the Federal Registeron
Monday, May 22, 2000 (65 FR 32152).
The final regulations relate to withholding
of tax on certain U.S. source income paid
to foreign persons and related require-
ments governing the collection, deposit,
refunds, and credits of withheld amounts
under sections 1461 through 1463.
DATES: This correction is effective
January 1, 2001.
FOR FURTHER INFORMATION CON-
TACT: Carl Cooper, Laurie Hatten-Boyd,
or Kate Hwa (202) 622-3840 (not a toll-
free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are subject to
these corrections are under section 1441
of the Internal Revenue Code.
Need for Correction
As published, final regulations (T.D.
8881) contain errors that may prove to be
misleading and are in need of clarifica-
tion.
Correction of Publication
Accordingly, the publication of final
regulations (T.D. 8881), which were the
subject of FR Doc. 00-11937, is corrected
as follows:
§1.1441–1 [Corrected]
1. On page 32174, columns 1 and 2,
§1.1441(b)(3)(ii)(C) is corrected to read
as follows:
§1.1441–1 Requirement for the deduction
and withholding of tax on payments to
foreign persons.
* * * * *
(b) * * *
(3) * * *
(ii) * * *
(C) Documentary evidence furnished
for offshore account. If the withholding
agent receives valid documentary evi-
dence, as described in §1.6049–5(c)(1) or
(4), with respect to an offshore account
from an entity but the documentary evi-
dence does not establish the entity’s clas-
sification as a corporation , trust, estate, or
partnership, the withholding agent may
presume (in the absence of actual knowl-
edge otherwise) that the entity is the type
of person enumerated under §1.6049–4
(c)(1)(ii)(B) through (Q) if it can be so
treated under any one of those paragraphs
without the need to furnish documenta-
tion. If the withholding agent cannot treat
a payee as a person described in
§1.6049–4(c)(1)(ii)(B) through (Q), then
the payee shall be presumed to be a cor-
poration unless the withholding agent
knows, or has reason to know, that the
entity is not classified as a corporation for
U.S. tax purposes. If a payee is, or is pre-
sumed to be, a corporation under this
paragraph (b)(3)(ii)(C) and a foreign per-
son under paragraph (b)(3)(iii) of this sec-
tion, a withholding agent shall not treat
the payee as the beneficial owner of
income if the withholding agent knows, or
has reason to know, that the payee is not
the beneficial owner of the income. For
this purpose, a withholding agent shall
have reason to know that the payee is not
a beneficial owner if the documentary evi-
dence indicates that the payee is a bank,
broker, intermediary, custodian, or other
agent, or is treated under §1.6049–4(c)
(1)(ii)(B) through (Q) as such a person. A
withholding agent may, however, treat
such a person as a beneficial owner if the
foreign person provides a statement, in
writing and signed by a person with
authority to sign the statement, that is
attached to the documentary evidence
stating it is the beneficial owner of the
income.
* * * * *
2. On page 32175, column 2,
§1.1441–1(b)(3)(vi), line 5, the language
“this section that has not agreed to be” is
corrected to read “this section that has
provided a withholding certificate as
described in paragraph (e)(3)(v) of this
section on which it has not agreed to be”.
3. On page 32175, column 2,
§1.1441–1(b)(3)(vii)(B), line 9, the lan-
guage “defined in §1.6059–5(e)) to an off-
shore” is corrected to read “defined in
§1.6049–5(e)) to an offshore”.
4. On page 32176, column 3,
§1.1441–1(c)(14), line 3, the language
“intermediary that is not a qualified” is
corrected to read “intermediary that is not
a U.S. person and not a qualified”.
5. On page 32179, column 1,
§1.1441–1(e)(3)(iii)(D), line 7, the lan-
guage “(e)(3)(iii) or paragraph (e)(3)(iv)
of this” is corrected to read “(e)(3)(iii) or
paragraph (e)(5)(iv) of this”.
6. On page 32180, column 1,
§1.1441–1(e)(3)(iv)(C)(1), line 8, the lan-
guage “intermediary to the withholding
agent” is corrected to read “intermediary
and provided to the withholding agent”.
7. On page 32180, column 2,
§1.1441–1(e)(3)(iv)(C)(2), line 5 from the
top of the column, the language “person),
the withholding certificate” is corrected to
read “person), the withholding statement”.
8. On page 32180, column 3,
§1.1441–1(e)(3)(iv)(D)(2), line 3, the lan-
Part IV. Items of General Interest

2001–21 I.R.B.1285May 21, 2001
guage “(e)(3)(iv)(B)(2) of this section
allocating” is corrected to read
“(e)(3)(iv)(C)(2) of this section allocat-
ing”.
9. On page 32180, column 3,
§1.1441–1(e)(3)(iv)(D)(2), line 11, the
language “(e)(3)(iv)(B) of this section.
Further, each” is corrected to read
“(e)(3)(iv)(C) of this section. Further,
each”.
10. On page 32180, column 3,
§1.1441–1(e)(3)(iv)(D)(2), line 25, the
language “(e)(3)(iv)(B) of this section
(other than” is corrected to read
“(e)(3)(iv)(C) of this section (other than”.
11. On page 32181, column 1,
§1.1441–1(e)(3)(iv)(D)(3), line 6, the lan-
guage “payee (including U.S. non-
exempt” is corrected to read “payee
(including U.S. exempt”.
12. On page 32186, columns 1 and 2,
§1.1441–1(e)(5)(v)(C)(2), is corrected to
read as follows:
§1.1441–1 Requirement for the deduction
and withholding of tax on payments to
foreign persons.
* * * * *
(e) * * *
(5) * * *
(v) * * *
(C) * * *
(2) Alternative procedure for U.S. non-
exempt recipients. If permitted under its
agreement with the IRS, a qualified inter-
mediary may, by mutual agreement with a
withholding agent, establish a single zero
withholding rate pool that includes U.S.
non-exempt recipient account holders for
whom the qualified intermediary has pro-
vided Forms W-9 prior to the withholding
agent paying any reportable payments, as
defined in the qualified intermediary
agreement, and a separate withholding
rate pool (subject to 31-percent withhold-
ing) that includes only U.S. non-exempt
recipient account holders for whom a
qualified intermediary has not provided
Forms W-9 prior to the withholding agent
paying any reportable payments. If a
qualified intermediary chooses the alter-
native procedure of this paragraph
(e)(5)(v)(C)(2), the qualified intermediary
must provide the information required by
its qualified intermediary agreement to
the withholding agent no later than
January 15 of the year following the year
in which the payments are paid. Failure to
provide such information will result in the
application of penalties to the qualified
intermediary under sections 6721 and
6722, as well as any other applicable
penalties, and may result in the termina-
tion of the qualified intermediary’s with-
holding agreement with the IRS. A with-
holding agent shall not be liable for tax,
interest, or penalties for failure to backup
withhold or report information under
chapter 61 of the Internal Revenue Code
due solely to the errors or omissions of the
qualified intermediary. If a qualified
intermediary fails to provide the alloca-
tion information required by this para-
graph (e)(5)(v)(C)(2), with respect to U.S.
non-exempt recipients, the withholding
agent shall report the unallocated amount
paid from the withholding rate pool to an
unknown recipient, or otherwise in accor-
dance with the appropriate Form 1099 and
the instructions accompanying the form.
* * * * *
§1.1441–5 [Corrected]
12a. On page 32193, column 2,
§1.1441–5(e)(5), paragraph (e)(5)(ii) is
correctly designated paragraph (e)(5)(ii).
13. On page 32193, column 3,
§1.1441–5(e)(5)(ii), the last 2 lines of the
paragraph, the language “having to identi-
fy any partner’s distributive share of the
payment.” is corrected to read “having to
identify any beneficiary’s or grantor’s dis-
tributive share of the payment.”.
§1.1441–7 [Corrected]
14. On page 32198, columns 1 and 2,
§1.1441–7(b)(4)(i) is corrected to read as
follows:
§1.1441–7 General provisions relating to
withholding agents.
* * * * *
(b) * * *
(4) * * * (i) In general. A with-
holding agent has reason to know that a
beneficial owner withholding certificate
provided by a direct account holder in con-
nection with a payment of an amount
described in §1.1441–6(c)(2) is unreliable
or incorrect if the withholding certificate is
incomplete with respect to any item on the
certificate that is relevant to the claims
made by the direct account holder, the
withholding certificate contains any infor-
mation that is inconsistent with the direct
account holder’s claim, the withholding
agent has other account information that is
inconsistent with the direct account hold-
er’s claim, or the withholding certificate
lacks information necessary to establish
entitlement to a reduced rate of withhold-
ing. For purposes of establishing a direct
account holder’s status as a foreign person
or resident of a treaty country, a withhold-
ing certificate shall be considered unreli-
able or inconsistent with an account hold-
er’s claims only if it is not reliable under
the rules of paragraphs (b)(5) and (6) of
this section. A withholding agent that
relies on an agent to review and maintain a
withholding certificate is considered to
know or have reason to know the facts
within the knowledge of the agent.
* * * * *
15. On page 32198, column 3,
§1.1441–7(b)(5)(i)(A)(1), lines 4 and 5,
the language “address) that is no more
than three years old, the documentary evi-
dence supports” is corrected to read
“address) that has been provided within
the past three years, was valid at the time
it was provided, the documentary evi-
dence supports”.
16. On page 32201, column 1,
§1.1441–7(b)(10)(ii), line 21, the language
“withholding certificate relates. A” is cor-
rected to read “withholding certificate. A”.
§1.1461–1 [Corrected]
17. On page 32201, column 3,
§1.1461–1, in the section heading “Payment
and returns of tax withhold.” is corrected to
read “Payment and returns of tax withheld.”.
18. On page 32202, column 1,
§1.1461–1(c)(1)(ii)(A)(1), line 2, the lan-
guage “paragraph (c)(6) of this section,” is
corrected to read “§1.1441–1(c)(6),”.
19. On page 32202, column 3,
§1.1461–1(c)(2)(i) is corrected by adding
the language “and” at the end of the last line
of paragraph (c)(2)(i)(L), removing para-
graph (2)(i)(M), and correctly designating
paragraph (c)(2)(i)(N) as paragraph
(c)(2)(i)(M).
20. On page 32203, column 1,
§1.1461–1(c)(2)(ii)(H) is corrected to
read as follows:
§1.1461–1 Payment and returns of tax
withheld.
* * * * *
(c) * * *
(2) * * *

May 21, 200112862001–21 I.R.B.
(ii) * * *
(H) Interest (including original issue
discount) paid with respect to foreign-tar-
geted registered obligations described in
§1.871–14(e)(2) to the extent the docu-
mentation requirements described in
§1.871–14(e)(3) and (4) are required to be
satisfied (taking into account the provi-
sions of §1.871–14(e)(4)(ii), if applicable;
* * * * *
§1.6045–1 [Corrected]
21. On page 32206, column 2,
§1.6045–1(g)(3)(iv), lines 6 and 7, the
language “broker has actual knowledge or
reason to know (within the meaning of” is
corrected to read “broker has actual
knowledge (within the meaning of”.
§1.6049–5 [Corrected]
22. On page 32207, column 3,
§1.6049–5(c)(4) introductory text, lines 2
and 3, the language “modifies the provi-
sions of this paragraph (c) for payments to
offshore” is corrected to read “modifies
the provisions of paragraph (c)(1) of this
section for payments to offshore”.
23. On page 32208, columns 2 and 3,
§1.6049–5(d)(2)(i), is corrected to read as
follows:
§1.6049–5 Interest and original issue
discount subject to reporting after
December 31, 1982.
* * * * *
(d) * * *
(2) * * * (i) In general. Except as
otherwise provided in this paragraph
(d)(2)(i), for purposes of this section
(and other sections of regulations under
this chapter to which this paragraph
(d)(2) applies), the provisions of
§1.1441–1(b)(3)(i) through (ix) and
§1.1441–5(d) and (e)(6) shall apply (by
applying the term payorinstead of the
term withholding agent) to determine the
classification (e.g., individual, corpora-
tion, partnership, trust), status (i.e., a
U.S. or a foreign person), and other rele-
vant characteristics (e.g., beneficial
owner or intermediary) of a payee if a
payment cannot be reliably associated
with valid documentation under
§1.1441–1(b)(2)(vii) irrespective of
whether the payments are subject to
withholding under chapter 3 of the
Internal Revenue Code. The provisions
of §1.1441–1(b)(3)(iii)(D) and (vii)(B)
shall not apply, however, to payments to
amounts that are not subject to withhold-
ing. The rules of §1.1441–1(b)(2)(vii)
shall apply for purposes of determining
when a payment can reliably be associat-
ed with documentation, by applying the
term payorinstead of the term withhold-
ing agent. For this purpose, the docu-
mentary evidence or statement described
in paragraph (c)(4) of this section can be
treated as documentation with which a
payment can be associated.
* * * * *
24. On page 32208, column 3,
§1.6049–5(d)(2)(ii), line 11, the language
“described in §1.1441–6(c)(2) that are” is
corrected to read “described in
§1.1441–6(c)(2) (or credits an account
with broker proceeds from securities
described in §1.1441–6(c)(2)), that are”.
25. On page 32209, column 2,
§1.6049–5(d)(3)(i), line 11 from the top of
the column, the language “determine the
payees status for” is corrected to read
“determine the payee’s status for”.
26. On page 32209, column 2,
§1.6049–5(d)(3)(ii), the last line in the
paragraph, the language “an exempt
recipient.” is corrected to read “an exempt
recipient and has actual knowledge of the
amount allocable to such a person.”.
27. On page 32209, column 2,
§1.6049–5(d)(3)(iii)(A), line 13, the lan-
guage “§1.1441–1(b)(3)(ii)(C) or (v)(A)
shall be” is corrected to read
“§1.1441–1(b)(3)(ii)(C), (v)(A),
§1.1441–5(d) or (e), shall be”.
28. On page 32209, column 3,
§1.6049–5(d)(3)(iii)(B), line 4 from the
top of the column, the language “under
§1.1441–3(b)(ii)(C) or (v)(A) for” is cor-
rected to read “as an intermediary for”.
PART 1 – [Corrected]
29. On page 32212, the table in
amendatory instruction Par. 18. is correct-
ed by adding two entries in numerical
order to read as follows:
SectionRemoveAdd
* * * * *
1.6045–1(g)(1)(i), first sentence . . . . .or presumed to be made to a or presumed to be made to a foreign
foreign payee under §1.6049–payee under §1.6049–
5(d)(2), (3), (4), or (5) . . . . . . . . . . . . . . . .5(d)(2) or (3) . . . . . . . . . . . . . . . .. .
* * * * *
1.6049–5(b)(12), first sentence . . . . . .or presumed to be made to a or presumed to be made to a
foreign payee under paragraphforeign payee under paragraph
(d)(2), (3), (4), or (5) of this section . . . . .(d)(2) or (3) of this section . . . . . . .
* * * * *
Cynthia E. Grigsby,
Chief, Regulations Unit,
Office of Special Counsel
(Modernization & Strategic Planning).
(Filed by the Office of the Federal Register on April
5, 2001, 8:45 a.m., and published in the issue of the
Federal Register for April 6, 2001, 66 F.R. 18187)
Accounting for Long-Term
Contracts; Correction
Announcement 2001–56
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correction to final regulations.
SUMMARY: This document contains
corrections to final regulations (T.D.
8929, 2001–10 I.R.B. 756) which were
published in the Federal Registeron
Thursday, January 11, 2001 (66 FR 2219).
The final regulations provide guidance on
methods of accounting for long-term con-
tracts.

2001–21 I.R.B.1287May 21, 2001
DATES: This correction is effective Janu-
ary 11, 2001.
FOR FURTHER INFORMATION CON-
TACT: Leo F. Nolan II (202) 622-4960
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are subject to
these corrections are under section 460 of
the Internal Revenue Code.
Need for Correction
As published, final regulations (T.D.
8929) contain errors that may prove to be
misleading and are in need of clarifica-
tion.
Correction of Publication
Accordingly, the publication of final
regulations (T.D. 8929), which were the
subject of FR Doc. 01-6, is corrected as
follows:
1. On page 2222, column 1, in the pre-
amble under the paragraph heading
“Unique Items”, first paragraph, last 3
lines of the paragraph, the language “tax-
payer must allocate all customization
costs to the first unit manufactured under
the contract.” is corrected to read “tax-
payer must allocate all customization
costs necessary to manufacture the first
unit manufactured under the contract to
that first unit.”.
§1.460–2 [Corrected]
2. On page 2230, column 2,
§1.460–2(b)(2)(ii), second line from the
bottom of the paragraph, the language
“the item must be allocated to the first” is
corrected to read “the first unit of the item
must be allocated to that first”.
3. On page 2230, column 2,
§1.460–2(c)(1), fourth line from the bot-
tom of the column, the language “time
required to design and” is corrected to
read “time normally required to design
and”.
§1.460–4 [Corrected]
4. On page 2232, column 2,
§1.460–4(b)(3), line 9, the language “the
treatment of post-completion costs,” is
corrected to read “the treatment of post-
completion-year costs,”.
5. On page 2235, column 2, §1.460–4(g),
lines 2 through 5, the language “that uses the
PCM, EPCM, CCM, PCCM, or elects the
10-percent method or special AMTI method
(or changes to another method of accounting
with the Commissioner’s consent) must
apply the” is corrected to read “that uses the
PCM, EPCM, CCM, or PCCM, or elects the
10-percent method or special AMTI method
(or changes to another method of accounting
with the Commissioner’s consent) must
apply the”.
Cynthia E. Grigsby,
Chief, Regulations Unit,
Office of Special Counsel
(Modernization & Strategic Planning).
(Filed by the Office of the Federal Register on April
5, 2001, 8:45 a.m., and published in the issue of the
Federal Register for April 6, 2001, 66 F.R. 18190)
Foundations Status of Certain
Organizations
Announcement 2001–60
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The follow-
ing organizations (which have been
treated as organizations that are not pri-
vate foundations described in section
509(a) of the Code) are now classified as
private foundations:
Advisory Board for BHM Health
Associates, Inc., Merrilville, IN
AFC Community Development
Corporation, Chicago, IL
African Institute for Education and
Development, Chicago, IL
Agenda for Black Quad Citians,
Rock Island, IL
Airport Development Zone Commission,
Inc., Gary, IN
All My Children Daycare Center,
Chicago, IL
Alternative Hope for Youth, Inc.,
Chicago, IL
Alternative Sentencing Approach
Program, Chicago, IL
Amer Friends of Tiferes Yehoshua Inc.,
Chicago, IL
American Academy for Cerebral Palsy &
Developmental Medicine, Rosemont, IL
American Organization to Help Needy
Seniors, Chicago, IL
Andre Hunter & Health Associates,
Lincolnwood, IL
Artensa Randolph Biographical
Foundation, Chicago, IL
Austintown Junior Womens League,
Youngstown, OH
Australian Shepherd Rescue of Indiana,
Inc., Greenfield, IN
Ballet Theatre of Chicago, Chicago, IL
Beacon Light Center, Hazel Crest, IL
Bellevue Recreation Youth Track Club,
Omaha, NE
Black Line Productions Inc., Center,
E. St. Louis, IL
Black Metropolis Convention and
Tourism Council, Chicago, IL
Broken Wagon Ranch Incorporated,
Indianapolis, IN
Brownhelm Historical Association,
Vermilion, OH
Care for Children, Oak Lawn, IL
Care & Share of Grant County, Inc.,
Marion, IN
Carver Institute, Tinley Park, IL
Catlin Recreation Complex, Inc.,
Catlin, IL
Center for Equal Justice, Chicago, IL
Center for Hospice Care, Inc.,
Lafayette, IN
Challenged Hearts, Chicago, IL
Charotar Patidar Samaj Midwest,
Hoffman Est, IL
Chicago Land Arts and Sciences Energy
Consortium, Inc., Chicago, IL
Children of Prisoners Enhancement
Services, Chesterton, IN
Children-Parent Center, Inc.,
Burns Harbor, IN
Childrens Learning Center II,
Bellwood, IL
CHOICE Learning Center, Inc.,
Indianapolis, IN
Christian Law Enforcement Association
of Nebraska, Dannebrog, NE
Churchhill Fund, Chicago, IL
Citizens Certificate Awards, Gary, IN
Codi Vespa Foundation for Pediatric
Aids, Davis, IL

May 21, 200112882001–21 I.R.B.
Community Arts Council,
Sugarcreek, OH
Community Home Development, Inc.,
Park Forest, IL
Complementary Health Project, Inc.,
Indianapolis, IN
Comprehensive Community Services,
Inc., Calumet Park, IL
Deby Focus, Chicago, IL
Diamonds Fast Pitch Softball Teams,
Markleville, IN
Die Hanswurste, Chicago, IL
Divine Hope, Chicago, IL
Dubois County Homeless Fund, Inc.,
Jasper, IN
Dunamis Ministries, Chicago, IL
Duneland Friends of the Playground,
Inc., Chesterton, IN
English Learning & Counseling Center,
Inc., Chicago, IL
ESPA, Warrensville Heights, OH
Evansville Welcome Wagon Charities
Corporation, Evansville, IN
Excel Rewards, Inc., Solon, OH
Exchange Foundation, Inc.,
Willoughby, OH
Falls Cities Community Network, Inc.,
Sellersburg, IN
Fayette Township Fire Protection
Association, Inc., W. Terre Haute, IN
Fellowship of Christian Modelers,
Galena, IL
Financial Services Assistance Housing
Exchange, Inc., Chicago, IL
Finnegans Wake Foundation,
Forest Park, IL
Fishers Arts Council, Inc., Fishers, IN
Fondo Franciscano, Ltd., Chicago, IL
Foster Foundation, Inc., Nineveh, IN
Foundation E.A.R.T.H., St. Louis, MO
Foundation for Orthodox Tradition,
Chicago, IL
Foundation for the Evanston Public
Library, Evanston, IL
Founders Resource Artist Fund, Inc.,
Alexandria, IN
Friends of Maayenot Yerushalayim for
Girls, Inc., Chicago, IL
Friends of the Arts of Grant County, Inc.,
Marion, IN
Friends of the Elkhart County Parks, Inc.,
Goshen, IN
Friends of Wesley International
Thelogical Seminary, Inc.,
Greenwood, IN
Full Gospel Day Care Ministry,
South Bend, IN
Gang Outreach, Lake Zurich, IL
Gary Alumni Chapter Kappa Alpha Psi
Community Foundation, Inc., Gary, IN
Global Christian Ministries, Inc.,
Manilla, IN
God Loves Little Children, Hillside, IL
Gonstead Methodology Institute, Inc.,
Rock Island, IL
Gotta Dance Parents Association, Inc.,
Speedway, IN
Great Lakes Youth Academy,
Park Forest, IL
Great Us - Owerri Foundation, Inc.,
Calumet City, IL
Greater Kishwaukee Men of Promise,
Dekalb, IL
Gus Johnson Community Center, Inc.,
Akron, OH
Guttr, Inc., Indianapolis, IN
Hammond Hispanic Community
Committee, Inc., Hammond, IN
Harvard Outreach Program for
Emergencies, Harvard, IL
Have A Heart Save A Heart,
Shaker Heights, OH
Helen Surovek Foundation, Ltd.,
Hammond, IN
Helena Parents Commission,
Helena, MT
Helpful Christian Ministries, Inc.,
Canton, OH
Henry River Front Development Council,
Henry, IL
Highland Rotary Club Scholarship Fund
Tr, Highland, IL
Housing Opportunities Mean
Empowerment, Chicago, IL
Ican Day Camp & Care, Inc., Elkhart, IN
Indiana Association of Nonprofit
Organizations, Inc., Indianapolis, IN
Indiana Sanitary Commission, Inc.,
Unionville, IN
Indiana School of Champions, Inc.,
Indianapolis, IN
Indianapolis Mayors Commission on
Family Violence, Inc., Indianapolis, IN
Indianapolis Minyo Dancers,
Incorporated, Greenwood, IN
Institute of Intra-American Studies,
Dixon, MT
James Ford Bell Natural History Tr,
St. Louis Park, MN
Jefferson County Child Abuse Prevention
Council, Madison, IN
Jesse the Law Torres Boxing Club and
Drop in Youth Center, Naperville, IL
Jewel Tea Historical Foundation,
Barrington, IL
JNCL Researach Fund, Mundelein, IL
JRB Cystic Fibrosis Hope Foundation,
Oak Park, IL
Kankakee Area Transit System,
Bourbonnais, IL
Kelly Park Advisory Council,
Chicago, IL
Kentuckiana Prison Ministries,
Incorporated, Jeffersonville, IN
Kiddie Kottage Day Care Center,
Chicago, IL
Kolbe Fund, Inc., Willoughby, OH
Law School Fund for the Future,
Chicago, IL
Life After Racing-Greyhound Adoption,
Inc., Whitestown, IN
Lift Corporation, Indianapolis, IN
Lift Ministries, Chicago, IL
Lighthouse Academy and Residential
Center, Joliet, IL
Lineage Gallery Project, Inc.,
Chicago, IL
Look at Me Now, Chicago, IL
L.O.S.T. Lifeline Organized Search
Teams, Clyde, OH
L.Z. Incorporated, Fort Wayne, IN
Machine Trades Advisory Council, Inc.,
Chicago, IL
Mack-Swains Share and Care, Inc.,
Chicago, IL
Madison County Child Abuse Prevention
Council, Inc., Anderson, IN
Marcinkowski Amyloidosis Foundation,
Inc., Barrington, IL
Maria Mater Ecclesiae, Gary, IN
Marshall County Christmas in April, Inc.,
Plymouth, IN
Mentoring Foundation, Chicago, IL
Mentors Action Network, Chicago, IL
Mexican American Family Association,
Chicago, IL
MGT Council of Elders, Chicago, IL
Miami-Class County Freedom Bound
Wildlife Rehabilitation Center, Inc.,
Peru, IN
Michiana Academy for Visual &
Performing Arts, South Bend, IN
Midwest Community Development
Corporation, Broadview, IL
Mid-West Symphony Orchestra,
Chicago, IL
Mission Media Production, Inc.,
Scipio, IN
Morse Lake Safety Committee, Inc.,
Noblesville, IN
Multicultural Network, Incorporated,
Indianapolis, IN
Museums of Prophetstown, Inc.,
Battle Ground, IN

2001–21 I.R.B.1289May 21, 2001
National Archery Museum, Inc.,
Fort Wayne, IN
National Coalition of 100 Black Women-
Indianapolis Chapter, Inc.,
Indianapolis, IN
National Raynauds Network, Inc.,
Chicago, IL
New Century Brass and New Century
Concerts, Inc., Lakewood, OH
New Land Castle Foundation, Inc.,
Matteson, IL
New Life Mission, Northbrook, IL
New Music Guild, Inc., Liberty, OH
New Roots, Incorporated, Gary, IN
Nicholas Foundation, Hazelcrest, IL
Northside Youth Center, Inc.,
Indianapolis, IN
NU Alpha, Chicago, IL
Nurses for Better Babies, Inc.,
Ft. Wayne, IN
Oasis of Joy, Vincennes, IN
Old St. Pauls Warming Center,
Chicago, IL
Operation Change, Olympia Fields, IL
Operation Fellowship,
Michigan City, IN
Options Institute, Inc., S. Bend, IN
Orange Township Youth Athletic
Association, Inc., Rome City, IN
Ottawa Area Economic Development
Foundation, Inc., Ottawa, IL
Otter Limits Association, Waterford, CT
Our Blessed Hope Evangelistic Assn.,
Inc., Frankfort, IN
Overflow Ministries, Chicago, IL
Pan-Arts Theatre, Incorporated,
Indianapolis, IN
Perspectives International Educational
Films, Wilmette, IL
Polycystic Kidney Disease Foundation of
Illinois, Inc., Chicago, IL
Porter Memorial Hospital Foundation,
Inc., Valpariso, IN
Potters Will, Inc., River Forest, IL
Prairie Arts Council, Princeton, IL
Prairie Haven Homes, Ltd., Chicago, IL
Preservation Association of Clay Co,
Inc., Brazil, IN
Primal Connection, Chicago, IL
Production Unlimited Multi-Cultural
Organization, Waukegan, IL
Property Remediation and
Redevelopment Foundation,
Chicago, IL
Proviso Infant Academy, Chicago, IL
Runamuck, Chicago, IL
Quad Town Safety Village, Inc.,
Highland, IN
Quilt Literacy to Facilitate Job
Education, Chicago, IL
Raven Brook Corporation,
Indianapolis, IN
Redes, Chicago, IL
Revere Antiques Guild, Bath, OH
Richard Wagner Association of Chicago,
Western Springs, IL
Rock-River-CRI Wildlife Refuge, Ltd.,
E. Moline, IL
Rowe & Gayle Giesen Trust,
Pasadena, CA
RTAA, Matteson, IL
Scholarships for Aggrieved Victims
Education, Inc., Chicago, IL
Seniors Unlimited Adult Day Care, Inc.,
Harvey, IL
Shannon Lutz Foundation, Inc.,
Fort Wayne, IN
Sharona, Inc., Wheaton, IL
Shekinah Global Outreach International,
Inc., South Bend, IN
Showcase Productions, Inc., Skokie, IL
Sioux River Rodeo Club, Flandreau, SD
Sisters Taking Care, Inc., Chicago, IL
Society of Filipino American Youth
Professionals, Brookfield, IL
Southlake Net, Inc., Crown Point, IN
Southside Nondenominational
Fellowship, Inc., Fort Wayne, IN
Speedway Allison Association, Inc.,
Speedway, IN
Spelling Bee Competition, Inc.,
Chicago, IL
Springfield Sun Baseball,
Morrisonville, IL
St. Joseph County 4-H Scholarship Tr,
Cleveland, OH
Step Right Up Productions Company,
Chicago, IL
Steven A. Larue Scholarship Foundation,
Inc., Richwood, OH
Street Films, Oswego, IL
Sycamore Institute, Inc., Indianapolis, IN
Taekwondo Brat Pak, Bargersville, IN
Testimony Ministries, Incorporated,
Indianapolis, IN
Three Little Kittens Adoption Agency,
Inc., Chicago, IL
Townsend Mosby, Inc., Calumet Park, IL
Trinity House of Hope, Inc.,
Fort Wayne, IN
United Together Against Gangs,
Villa Park, IL
Universal Center, Inc., Indianpolis, IN
Visiontek Foundation, Gurnee, IL
Warren Guthrie Memorial Foundation,
Inc., Indianapolis, IN
We Care Development Center, Inc.,
Matteson, IL
We Will Work, Inc., Lawrence, IN
Westside Christmas Fund,
Indianapolis, IN
Whitecaps Water Protection Foundation,
Brookings, SD
Whittington Foundation, Vernon Hills, IL
Wildlife Natural Care Exchange,
Chicago, IL
Window, Inc., Warren, OH
Womens Health Education Project,
Chicago, IL
Work-Based Education Project,
Chicago, IL
Worldwide Fund for Mothers Injured in
Childbirth, Chicago, IL
Z-B Pre High School Youth Football,
Inc., Zion, IL
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 Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classi-
fication as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
vided in section 1.509(a)–7 of the Income
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.

May 21, 2001i2001–21 I.R.B.
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”)
that have an effect on previous rulings
use the following defined terms to de-
scribe the effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to A but not
to B, and the new ruling holds that it ap-
plies to both A and B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified and
clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. A ruling
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, modified
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
seded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security
Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

2001–21 I.R.B.iiMay 21, 2001
Numerical Finding List
1
Bulletins 2001–1 through 2001–20
Announcements:
2001–1, 2001–2 I.R.B. 277
2001–2, 2001–2 I.R.B. 277
2001–3, 2001–2 I.R.B. 278
2001–4, 2001–2 I.R.B. 286
2001–5, 2001–2 I.R.B. 286
2001–6, 2001–3 I.R.B. 357
2001–7, 2001–3 I.R.B. 357
2001–8, 2001–3 I.R.B. 357
2001–9, 2001–3 I.R.B. 357
2001–10, 2001–4 I.R.B. 431
2001–11, 2001–4 I.R.B. 432
2001–12, 2001–6 I.R.B. 526
2001–13, 2001–96 I.R.B. 752
2001–14, 2001–7 I.R.B. 648
2001–15, 2001–8 I.R.B. 715
2001–16, 2001–8 I.R.B. 715
2001–17, 2001–8 I.R.B. 716
2001–18, 2001–10 I.R.B. 791
2001–19, 2001–10 I.R.B. 791
2001–20, 2001–8 I.R.B. 716
2001–21, 2001–9 I.R.B. 752
2001–22, 2001–11 I.R.B. 895
2001–23, 2001–10 I.R.B. 791
2001–24, 2001–10 I.R.B. 793
2001–25, 2001–11 I.R.B. 895
2001–26, 2001–11 I.R.B. 896
2001–27, 2001–11 I.R.B. 897
2001–28, 2001–13 I.R.B. 975
2001–29, 2001–14 I.R.B. 1014
2001–30, 2001–15 I.R.B. 1065
2001–31, 2001–17 I.R.B. 1113
2001–32, 2001–17 I.R.B. 1113
2001–33, 2001–17 I.R.B. 1136
2001–34, 2001–16 I.R.B. 1087
2001–35, 2001–16 I.R.B. 1087
2001–36, 2001–16 I.R.B. 1089
2001–37, 2001–16 I.R.B. 1090
2001–38, 2001–17 I.R.B. 1137
2001–39, 2001–17 I.R.B. 1141
2001–40, 2001–17 I.R.B. 1141
2001–41, 2001–18 I.R.B. 1147
2001–42, 2001–18 I.R.B. 1147
2001–43, 2001–18 I.R.B. 1147
2001–44, 2001–18 I.R.B. 1148
2001–45, 2001–18 I.R.B. 1148
2001–46, 2001–19 I.R.B. 1165
2001–47, 2001–19 I.R.B. 1165
2001–48, 2001–19 I.R.B. 1168
2001–49, 2001–20 I.R.B. 1183
2001–50, 2001–20 I.R.B. 1184
2001–51, 2001–20 I.R.B. 1185
2001–52, 2001–20 I.R.B. 1186
2001–53, 2001–20 I.R.B. 1186
2001–57, 2001–20 I.R.B. 1187
Notices:
2001–1, 2001–2 I.R.B. 261
2001–2, 2001–2 I.R.B. 265
2001–3, 2001–2 I.R.B. 267
2001–4, 2001–2 I.R.B. 267
2001–5, 2001–3 I.R.B. 327
2001–6, 2001–3 I.R.B. 327
2001–7, 2001–4 I.R.B. 374
2001–8, 2001–4 I.R.B. 374
2001–9, 2001–4 I.R.B. 375
2001–10, 2001–5 I.R.B. 459
Notices—Continued:
2001–11, 2001–5 I.R.B. 464
2001–12, 2001–3 I.R.B. 328
2001–13, 2001–6 I.R.B. 514
2001–14, 2001–6 I.R.B. 516
2001–15, 2001–7 I.R.B. 589
2001–16, 2001–9 I.R.B. 730
2001–17, 2001–9 I.R.B. 730
2001–18, 2001–9 I.R.B. 731
2001–19, 2001–10 I.R.B. 784
2001–20, 2001–11 I.R.B. 818
2001–21, 2001–11 I.R.B. 818
2001–22, 2001–12 I.R.B. 911
2001–23, 2001–12 I.R.B. 911
2001–24, 2001–12 I.R.B. 912
2001–25, 2001–13 I.R.B. 941
2001–26, 2001–13 I.R.B. 942
2001–27, 2001–13 I.R.B. 942
2001–28, 2001–13 I.R.B. 944
2001–29, 2001–14 I.R.B. 989
2001–30, 2001–14 I.R.B. 989
2001–31, 2001–17 I.R.B. 1093
2001–32, 2001–18 I.R.B. 1146
2001–33, 2001–19 I.R.B. 1155
Proposed Regulations:
LR–230–76, 2001–13 I.R.B. 945
REG–209461–79, 2001–8 I.R.B. 712
REG–246256–96, 2001–8 I.R.B. 713
REG–251701–96, 2001–4 I.R.B. 396
REG–101520–97, 2001–15 I.R.B. 1057
REG–106030–98, 2001–11 I.R.B. 820
REG–106446–98, 2001–13 I.R.B. 945
REG–106542–98, 2001–5 I.R.B. 473
REG–121928–98, 2001–6 I.R.B. 520
REG–109481–99, 2001–13 I.R.B. 961
REG–111835–99, 2001–11 I.R.B. 834
REG–114998–99, 2001–14 I.R.B. 992
REG–115560–99, 2001–14 I.R.B. 993
REG–101739–00, 2001–14 I.R.B. 996
REG–103320–00, 2001–8 I.R.B. 714
REG–104683–00, 2001–4 I.R.B. 407
REG–104876–00, 2001–14 I.R.B. 998
REG–105801–00, 2001–13 I.R.B. 965
REG–105946–00, 2001–16 I.R.B. 1069
REG–106513–00, 2001–16 I.R.B. 1076
REG–106702–00, 2001–4 I.R.B. 424
REG–106791–00, 2001–6 I.R.B. 521
REG–106892–00, 2001–15 I.R.B. 1060
REG–107047–00, 2001–14 I.R.B. 1002
REG–107101–00, 2001–16 I.R.B. 1083
REG–107175–00, 2001–13 I.R.B. 971
REG–107176–00, 2001–4 I.R.B. 428
REG–107186–00, 2001–13 I.R.B. 973
REG–107566–00, 2001–3 I.R.B. 346
REG–110374–00, 2001–12 I.R.B. 915
REG–110659–00, 2001–12 I.R.B. 917
REG–114082–00, 2001–7 I.R.B. 629
REG–114083–00, 2001–7 I.R.B. 630
REG–114084–00, 2001–7 I.R.B. 633
REG–116468–00, 2001–6 I.R.B. 522
REG–119352–00, 2001–6 I.R.B. 525
REG–121109–00, 2001–15 I.R.B. 1064
REG–125237–00, 2001–12 I.R.B. 919
REG–126100–00, 2001–11 I.R.B. 862
REG–129608–00, 2001–14 I.R.B. 1011
REG–130477–00, 2001–11 I.R.B. 865
REG–130481–00, 2001–11 I.R.B. 865
Railroad Retirement Quarterly Rates:
2001–2, I.R.B. 258
2001–15, I.R.B. 1054
Revenue Procedures:
2001–1, 2001–1 I.R.B. 1
2001–2, 2001–1 I.R.B. 79
2001–3, 2001–1 I.R.B. 111
2001–4, 2001–1 I.R.B. 121
2001–5, 2001–1 I.R.B. 164
2001–6, 2001–1 I.R.B. 194
2001–7, 2001–1 I.R.B. 236
2001–8, 2001–1 I.R.B. 239
2001–9, 2001–3 I.R.B. 328
2001–10, 2001–2 I.R.B. 272
2001–11, 2001–2 I.R.B. 275
2001–12, 2001–3 I.R.B. 335
2001–13, 2001–3 I.R.B. 337
2001–14, 2001–3 I.R.B. 343
2001–15, 2001–5 I.R.B. 465
2001–16, 2001–4 I.R.B. 376
2001–17, 2001–7 I.R.B. 589
2001–18, 2001–8 I.R.B. 708
2001–19, 2001–9 I.R.B. 732
2001–20, 2001–9 I.R.B. 738
2001–21, 2001–9 I.R.B. 742
2001–22, 2001–9 I.R.B. 745
2001–23, 2001–10 I.R.B. 784
2001–24, 2001–10 I.R.B. 788
2001–25, 2001–12 I.R.B. 913
2001–26, 2001–17 I.R.B. 1093
2001–27, 2001–19 I.R.B. 1155
2001–28, 2001–19 I.R.B. 1156
2001–29, 2001–19 I.R.B. 1160
2001–30, 2001–19 I.R.B. 1163
2001–31, 2001–20 I.R.B. 1170
Revenue Rulings:
2001–1, 2001–9 I.R.B. 726
2001–2, 2001–2 I.R.B. 255
2001–3, 2001–3 I.R.B. 319
2001–4, 2001–3 I.R.B. 295
2001–5, 2001–5 I.R.B. 451
2001–6, 2001–6 I.R.B. 491
2001–7, 2001–7 I.R.B. 541
2001–8, 2001–9 I.R.B. 726
2001–9, 2001–8 I.R.B. 652
2001–10, 2001–10 I.R.B. 755
2001–11, 2001–10 I.R.B. 780
2001–12, 2001–11 I.R.B. 811
2001–13, 2001–12 I.R.B. 898
2001–14, 2001–12 I.R.B. 898
2001–15, 2001–13 I.R.B. 922
2001–16, 2001–13 I.R.B. 936
2001–17, 2001–15 I.R.B. 1052
2001–18, 2001–17 I.R.B. 1092
2001–19, 2001–18 I.R.B. 1143
2001–20, 2001–18 I.R.B. 1143
2001–21, 2001–18 I.R.B. 1144
2001–22, 2001–19 I.R.B. 1152
2001–23, 2001–20 I.R.B. 1169
Treasury Decisions:
8910, 2001–2 I.R.B. 258
8911, 2001–3 I.R.B. 321
8912, 2001–5 I.R.B. 452
8913, 2001–3 I.R.B. 300
8914, 2001–8 I.R.B. 653
8915, 2001–4 I.R.B. 359
8916, 2001–4 I.R.B. 360
8917, 2001–7 I.R.B. 538
1
A cumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 2000–27 through
2000–52 is in Internal Revenue Bulletin 2001–1,
dated January 2, 2001.

May 21, 2001iii2001–21 I.R.B.
Treasury Decisions—Continued:
8918, 2001–4 I.R.B. 372
8919, 2001–6 I.R.B. 505
8920, 2001–8 I.R.B. 654
8921, 2001–7 I.R.B. 532
8922, 2001–6 I.R.B. 508
8923, 2001–6 I.R.B. 485
8924, 2001–6 I.R.B. 489
8925, 2001–6 I.R.B. 496
8926, 2001–6 I.R.B. 492
8927, 2001–11 I.R.B. 807
8928, 2001–8 I.R.B. 685
8929, 2001–10 I.R.B. 756
8930, 2001–5 I.R.B. 433
8931, 2001–7 I.R.B. 542
8932, 2001–11 I.R.B. 813
8933, 2001–11 I.R.B. 794
8934, 2001–12 I.R.B. 904
8935, 2001–8 I.R.B. 702
8937, 2001–11 I.R.B. 806
8938, 2001–13 I.R.B. 929
8939, 2001–12 I.R.B. 899
8940, 2001–15 I.R.B. 1016
8941, 2001–14 I.R.B. 977
8942, 2001–13 I.R.B. 929
8943, 2001–15 I.R.B. 1054
8944, 2001–16 I.R.B. 1067

2001–21 I.R.B.ivMay 21, 2001
Finding List of Current Actions on
Previously Published Items
1
Bulletins 2001–1 through 2001–20
Announcements:
98–99
Modified by
Ann. 2001–9, 2001–3 I.R.B. 357
99–79
Superseded by
Ann. 2001–3, 2001–2 I.R.B. 278
2000–78
Obsoleted by
T.D. 8933, 2001–11 I.R.B. 794
2000–97
Corrected by
Ann. 2001–7, 2001–3 I.R.B. 357
Cumulative Bulletin:
1998–2
Corrected by
Ann. 2001–5, 2001–2 I.R.B. 286
Notices:
94–3
Modified by
T.D. 8933, 2001–11 I.R.B. 794
98–39
Modified by
Notice 2001–9, 2001–4 I.R.B. 375
98–40
Modified by
Notice 2001–9, 2001–4 I.R.B. 375
99–53
Modified and superseded by
Notice 2001–7, 2001–4 I.R.B. 374
2000–21
Superseded by
Notice 2001–1, 2001–2 I.R.B. 261
2000–22
Modified and superseded by
Notice 2001–8, 2001–4 I.R.B. 374
2000–26
Modified by
Notice 2001–22, 2001–12 I.R.B. 911
2000–43
Extended by
Notice 2001–13, 2001–6 I.R.B. 514
Proposed Regulations:
EE–130–86
Partially withdrawn by
REG–209461–79, 2001–8 I.R.B. 712
REG–106030–98
Corrected by
Ann. 2001–30, 2001–15 I.R.B. 1065
REG–106542–98
Corrected by
Ann. 2001–24, 2001–13 I.R.B. 793
REG–116733–98
Withdrawn by
Ann. 2001–11, 2001–4 I.R.B. 432
Proposed Regulations—Continued:
REG–105235–99
Corrected by
Ann. 2001–52, 2001–20 I.R.B. 1186
REG–116048–99
Withdrawn by
Ann. 2001–27, 2001–11 I.R.B. 897
REG–116050–99
Corrected by
Ann. 2001–51, 2001–20 I.R.B. 1185
REG–104683–00
Corrected by
Ann. 2001–42, 2001–18 I.R.B. 1147
REG–106702–00
Corrected by
Ann. 2001–28, 2001–13 I.R.B. 975
REG–110374–00
Corrected by
Ann. 2001–44, 2001–18 I.R.B. 1148
REG–126100–00
Corrected by
Ann. 2001–50, 2001–20 I.R.B. 1184
Revenue Procedures:
75–21
Modified and superseded by
Rev. Proc. 2001–28, 2001–19 I.R.B. 1156
75–28
Modified and superseded by
Rev. Proc. 2001–29, 2001–19 I.R.B. 1160
76–30
Modified and superseded by
Rev. Proc. 2001–28, 2001–19 I.R.B. 1156
79–48
Modified and superseded by
Rev. Proc. 2001–28, 2001–19 I.R.B. 1156
Rev. Proc. 2001–29, 2001–19 I.R.B. 1160
83–87
Superseded by
Rev. Proc. 2001–15, 2001–5 I.R.B. 465
90–18
Amplified and superseded by
Rev. Proc. 2001–18, 2001–8 I.R.B. 708
92–19
Superseded by
Rev. Proc. 2001–15, 2001–5 I.R.B. 465
96–15
Modified by
Ann. 2001–22, 2001–11 I.R.B. 895
96–17
Modified by
Rev. Proc. 2001–9, 2001–3 I.R.B. 328
97–25
Superseded by
Rev. Proc. 2001–31, 2001–20 I.R.B. 1170
99–18
Modified and superseded by
Rev. Proc. 2001–21, 2001–9 I.R.B. 742
99–47
Superseded by
Rev. Proc. 2001–16, 2001–4 I.R.B. 376
Revenue Procedures—Continued:
99–49
Modified and amplified by
Notice 2001–23, 2001–12 I.R.B. 911
Rev. Proc. 2001–10, 2001–2 I.R.B. 272
Rev. Proc. 2001–23, 2001–10 I.R.B. 784
Rev. Proc. 2001–24, 2001–10 I.R.B. 788
Rev. Proc. 2001–25, 2001–12 I.R.B. 913
Rev. Rul. 2001–8, 2001–9 I.R.B. 762
2000–1
Superseded by
Rev. Proc. 2001–1, 2001–1 I.R.B. 1
2000–2
Superseded by
Rev. Proc. 2001–2, 2001–1 I.R.B. 79
2000–3
Superseded by
Rev. Proc. 2001–3, 2001–1 I.R.B. 111
2000–4
Superseded by
Rev. Proc. 2001–4, 2001–1 I.R.B. 121
2000–5
Superseded by
Rev. Proc. 2001–5, 2001–1 I.R.B. 164
2000–6
Superseded by
Rev. Proc. 2001–6, 2001–1 I.R.B. 194
2000–7
Superseded by
Rev. Proc. 2001–7, 2001–1 I.R.B. 236
2000–8
Superseded by
Rev. Proc. 2001–8, 2001–1 I.R.B. 239
2000–14
Supplemented by
Rev. Proc. 2001–27, 2001–19 I.R.B. 1155
2000–16
Modified and superseded by
Rev. Proc. 2001–17, 2001–7 I.R.B. 589
2000–22
Modified and superseded by
Rev. Proc. 2001–10, 2001–2 I.R.B. 272
2000–23
Superseded by
Rev. Proc. 2001–26, 2001–17 I.R.B. 1093
2001–3
Corrected by
Ann. 2001–25, 2001–11 I.R.B. 895
Section 5.01 revoked by
Rev. Proc. 2001–30, 2001–19 I.R.B. 1163
2001–13
Clarified by
Notice 2001–12, 2001–3 I.R.B. 328
Revenue Rulings:
64–328
Modified by
Notice 2001–10, 2001–5 I.R.B. 459
66–110
Modified by
Notice 2001–10, 2001–5 I.R.B. 459
1
A cumulative list of current actions on previously
published items in Internal Revenue Bulletins
2000–27 through 2000–52 is in Internal Revenue
Bulletin 2001–1, dated January 2, 2001.

May 21, 2001v2001–21 I.R.B.
Revenue Rulings—Continued:
85–30
Clarified by
Rev. Rul. 2001–8, 2001–9 I.R.B. 762
88–95
Clarified by
Rev. Rul. 2001–8, 2001–9 I.R.B. 762
92–19
Supplemented in part by
Rev. Rul. 2001–11, 2001–10 I.R.B. 780
2000–56
Corrected by
Ann. 2001–19, 2001–10 I.R.B. 791
2001–4
Modified by
Notice 2001–23, 2001–12 I.R.B. 911
Treasury Decisions:
7530
Removed by
T.D. 8938, 2001–13 I.R.B. 929
8757
Revised by
T.D. 8941, 2001–14 I.R.B. 977
8889
Corrected by
Ann. 2001–14, 2001–2 I.R.B. 286
8913
Corrected by
Ann. 2001–26, 2001–11 I.R.B. 896
8916
Corrected by
Ann. 2001–41, 2001–18 I.R.B. 1147
8921
Corrected by
Ann. 2001–43, 2001–18 I.R.B. 1147
8931
Technically amended by
Ann. 2001–37, 2001–16 I.R.B. 1090
8940
Corrected by
Ann. 2001–53, 2001–20 I.R.B. 1186

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