us-irs-announcements-irb-2008-23-pdf•Internal Revenue Bulletin 2008-23 (PDF rendition): IRS Announcements
Internal Revenue Bulletin 2008-23 (PDF rendition): IRS Announcements
us-irs-announcements-irb-2008-23-pdfInternal Revenue Bulletin 2008-23 (PDF rendition): IRS AnnouncementsGuidance
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Bulletin No. 200 8-23 June 9, 2008 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. INCOME TAX REG–100798–06, page 1135. Proposed regulations under section 704(c) of the Code provide that the section 704(c) anti-abuse rule takes into account the tax liabilities of both the partners in a partnership and certain direct and indirect owners of such partners. The regulations further provide that a section 704(c) allocation method cannot be used to achieve tax results inconsistent with the intent of subchapter K of the Code. Rev. Proc. 2008–28, page 1054. This procedure describes the conditions under which changes to certain residential mortgage loans will not cause the Service to challenge the tax status of certain securitization vehicles holding the loans or to assert that those modifications create a liability for tax on a prohibited transaction. ADMINISTRATIVE Rev. Proc. 2008–30, page 1056. Electronic filing; 2008 form specifications.This proce- dure contains updates and changes to Publication 1220,Spec- ifications for Filing Forms 1098, 1099, 5498 and W–2G Elec- tronically(revised 5–2008). Rev. Proc. 2007–51 superseded. Rev. Proc. 2008–31, page 1133. This procedure modifies Rev. Proc. 2006–9, 2006–1 C.B. 278, which informs taxpayers how to secure an advance pric- ing agreement (APA) from the APA Program within the Office of Associate Chief Counsel (International). The procedure modi- fies Rev. Proc. 2006–9 to describe further the types of issues that may be resolved in the APA process. Rev. Proc. 2006–9 modified. Announcement 2008–53, page 1137. This document contains corrections to proposed regulations (REG–143397–05, 2007–41 I.R.B. 790) relating to rules on the application of sections 704(c)(1)(B) and 737 of the Code to distributions of property after two partnerships engage in an assets-over merger. Finding Lists begin on page ii. The IRS Mission Provide Americ a’s taxpayers top quality service by helping them understand an d meet their tax responsibilities and by applying the tax law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conven- tions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis. It is the policy of the Service to publish in the Bulletin all sub- stantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, mod- ify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indi- cated. Procedures relating solely to matters of internal man- agement are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—19 86 Code. This part i ncludes rulings and decisions based on provisions of the Intern al Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Leg- islation and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rul- ings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secre- tary (Enforcement). Part IV .—Items of General Interest. This par t includes notices of proposed rulemakings, disbar- ment an d suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The c ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402. June 9, 20082008–23 I.R.B. Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 860G. —Other Definitions a nd Special Rules This revenue procedure describes the conditions under which changes to certain residential mortgage loans will not cause the Internal Revenue Service to challenge the tax status of certain securitization vehi- cles holding the loans or to assert that those modifi- cations create a liability for tax on a prohibited trans- action. See Rev. Proc. 2008-28, page 1054. Section 1001. —Determi- nation of Amou nt of and Recognition o fGainorLoss 26 CFR 1.1001– 3: Modifications of debt instruments. This revenue p rocedure describes the conditions under which c hanges to certain residential mortgage loans will no t cause the Internal Revenue Service to challenge th e tax status of certain securitization vehi- cles holding the loans or to assert that those modifi- cations crea te a liability for tax on a prohibited trans- action. See R ev. Proc. 2008-28, page 1054. Section 7701. —Definitions 26 CFR 301.770 1–4: Trusts. This revenue p rocedure describes the conditions under which ch anges to certain residential mortgage loans will not cause the Internal Revenue Service to challenge th e tax status of certain securitization vehi- cles holding the loans or to assert that those modifi- cations crea te a liability for tax on a prohibited trans- action. See R ev. Proc. 2008-28, page 1054. 2008–23 I.R.B.1053June 9, 2008 Part III. Administrative, Procedural, and Miscellaneous 26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determination of cor- rect tax liability. (Also Part I, §§ 860D, 860F, 860G, 1001; 1.860G–2, 1.1001–3, 301.7701–2, 301.7701–3, 301.7701–4.) Rev. Proc. 2008–28 SECTION 1. PURPOSE This revenue procedure describes con- ditions under which modifications of cer- tain mortgage loans will not cause the In- ternal Revenue Service (the Service) either to challenge the tax status of certain secu- ritization vehicles that hold the loans or to assert that those modifications create a lia- bility for tax on a prohibited transaction. No inference should be drawn about whether similar consequences obtain if a loan modification falls outside the scope of this revenue procedure. Furthermore, there should be no inference that, in the ab- sence of this revenue procedure, transac- tions within its scope would have impaired the tax status of securitization vehicles or would have created liability for tax on a prohibited transaction. SECTION 2. BACKGROUND—FORECLOSURE PREVENTION PROGRAMS .01 Many servicers of mortgage loans have developed, and are implementing, foreclosure prevention programs. These programs are particularly useful in the cur- rent economic environment where there are an increasingly large number of bor- rowers who are not able to afford their current mortgage payments and are at risk of losing their homes. These servicers apply the programs both to loans that investors hold directly and to those that are held through securitization vehicles such as investment trusts and real estate mortgage investment conduits (REMICs). Typically, these sophisticated programs establish guidelines to streamline modifi- cations of troubled mortgage loans. The guidelines take into account a broad range ofinformationinanefforttoidentifybor- rowers whose loans are likely to go into foreclosure if the terms of the loans remain unmodified but who may be able to make timely payments on a modified loan with more favorable terms. The programs also indicate the type and extent of a modi- fication that may allow the borrower to make timely payments under the modi- fied terms and so avoid foreclosure. The modifications that are effected under these programs may include interest rate reduc- tions, principal forgiveness, extensions of maturity, and alterations in the timing of changes in an interest rate. .02 The terms of many residential mort- gage loans provide that, if a borrower fails to make a scheduled payment on the date the payment is due, the borrower is in “de- fault” on the mortgage but that transient lateness may not have any adverse conse- quences for the borrower. Most such loans provide for a “grace period” (typically, 15 days) during which an underpayment can be cured without the borrower being liable for a late fee. .03 Servicers have concluded that fore- closure prevention programs such as those describedinSection2.01ofthisrevenue procedure can assess with a high degree of accuracy whether a borrower presents an unacceptably high risk of eventual foreclo- sure, even when some desired information is unavailable for a particular borrower and the borrower has not yet missed any pay- ments due under the loan. SECTION 3. BACKGROUND—REMICS .01 REMICs are widely used securiti- zation vehicles for mortgages and are gov- erned by sections 860A through 860G of the Internal Revenue Code. .02 Section 860D(a)(4) of the Code pro- vides that an entity qualifies as a REMIC only if, among other things, as of the close of the third month beginning after the startup day and at all times thereafter, sub- stantially all of its assets consist of quali- fied mortgages and permitted investments. This asset test is satisfied if the entity owns no more than ade minimisamount of other assets.See§ 1.860D–1(b)(3)(i) of the Income Tax Regulations. As a safe harbor, the amount of assets other than qualified mortgages and permitted invest- ments isde minimisif the aggregate of the adjusted bases of those assets is less than one percent of the aggregate of the adjusted bases of all of the entity’s assets. § 1.860D–1(b)(3)(ii). .03 With limited exceptions, a mort- gage loan is not a qualified mortgage unless it is transferred to the REMIC on the startup day in exchange for regular or residual interests in the REMIC.See section 860G(a)(3)(A)(i). .04 The legislative history of the REMIC provisions indicates that Congress intended the provisions to apply only to an entity that holds a substantially fixed pool of real estate mortgages and related assets and that “has no powers to vary the composition of its mortgage assets.” S. Rep. No. 99–313, 99 th Cong., 2 d Sess. 791–92; 1986–3 (Vol. 3) C.B. 791–92. .05 Section 1.1001–3(c)(1)(i) defines a “modification” of a debt instrument as any alteration, including any deletion or addi- tion, in whole or in part, of a legal right or obligation of the issuer or holder of a debt instrument, whether the alteration is evi- denced by an express agreement (oral or written), conduct of the parties, or other- wise. Section 1.1001–3(e) governs which modifications of debt instruments are “sig- nificant.” Under § 1.1001–3(b), for most federal income tax purposes, a significant modification produces a deemed exchange of the original debt instrument for a new debt instrument. .06 Under § 1.860G–2(b), related rules apply to determine REMIC qualifica- tion. Except as specifically provided in § 1.860G–2(b)(3), if there is a significant modification of an obligation that is held by a REMIC, then the modified obligation is treated as one that was newly issued in exchange for the unmodified obligation that it replaced.See§ 1.860G–2(b)(1). For this purpose, the rules in § 1.1001–3(e) determine whether a modification is “sig- nificant.”See§ 1.860G–2(b)(2). Thus, even if an entity initially qualifies as a REMIC, one or more significant modifi- cations of the loans held by the entity may terminate the qualification if the modifica- tions cause less than substantially all of the entity’s assets to be qualified mortgages. .07 Certain loan modifications, how- ever, are not significant for purposes of § 1.860G–2(b)(1), even if the modifi- cations are significant under the rules in § 1.1001–3 and thus cause section 1001 to apply. In particular, under June 9, 200810542008–23 I.R.B. § 1.860G–2(b)(3)(i), if a change in the terms of an obligation is “occasioned by default or a reasonably foreseeable de- fault,” the change is not a significant mod- ification for purposes of § 1.860G–2(b)(1), regardless of the modification’s status un- der § 1.1001–3. .08 Section 860F(a)(1) imposes a tax on a REMIC equal to 100 percent of the net income derived from “prohibited transac- tions.” The disposition of a qualified mort- gage is a prohibited transaction unless the disposition is pursuant to (i) the substitu- tion of a qualified replacement mortgage for a qualified mortgage; (ii) a disposition incident to the foreclosure, default, or im- minent default of the mortgage; (iii) the bankruptcy or insolvency of the REMIC; or (iv) a qualified liquidation. Section 860F(a)(2)(A). SECTION 4. BACKGROUND—TRUSTS .01 Section 301.7701–2(a) of the Pro- cedure and Administration Regulations defines a “business entity” as any entity recognized for federal tax purposes (in- cluding an entity with a single owner that may be disregarded as an entity separate from its owner under § 301.7701–3) that is not properly classified as a trust under § 301.7701–4 or otherwise subject to spe- cial treatment under the Code. .02 Section 301.7701–4(a) provides that an arrangement is treated as a trust if the purpose of the arrangement is to vest in trustees responsibility for the protection and conservation of property for benefi- ciaries who cannot share in the discharge of this responsibilityand, therefore, are not associates in a joint enterprise for the conduct of business for profit. .03 Section 301.7701–4(c) provides that an “investment” trust is not classified as a trust if there is a power under the trust agreement to vary the investment of the certificate holders. SECTION 5. SCOPE This revenue procedure applies to a modification of a mortgage loan that is heldbyaREMIC,orbyaninvestment trust, if all of the following conditions are satisfied: .01 The real property securing the mort- gage loan is a residence that contains fewer than five dwelling units. .02 The real property securing the mort- gage loan is owner-occupied. .03 (1) If a REMIC holds the mortgage loan, then as of either the startup day or the end of the 3-month period beginning on the startup day, no more than ten percent of the stated principal of the total assets of the REMIC was represented by loans the payments on which were then overdue by 30 days or more; or (2) If an investment trust holds the mortgage loan, then as of all dates when assets were contributed to the trust, no more than ten percent of the stated princi- pal of all the debt instruments then held by the trust was represented by instruments the payments on which were then overdue by 30 days or more. .04 The holder or servicer reasonably believes that there is a significant risk of foreclosure of the original loan. This rea- sonable belief may be based on guidelines developed as part of a foreclosure preven- tion program similar to that described in Section 2 of this revenue procedure or may be based on any other credible systematic determination. .05 The terms of the modified loan are less favorable to the holder than were the unmodified terms of the original mortgage loan. .06 The holder or servicer reasonably believes that the modified loan presents a substantially reduced risk of foreclosure, as compared with the original loan. SECTION 6. APPLICATION If one or more modifications of mort- gage loans are described in Section 5 of this revenue procedure— .01 The Service will not challenge a securitization vehicle’s qualification as a REMIC on the grounds that the modifica- tions are not among the exceptions listed in § 1.860G–2(b)(3); .02 The Service will not contend that the modifications are prohibited trans- actions under section 860F(a)(2) on the grounds that the modifications resulted in one or more dispositions of qualified mortgages and that the dispositions are not among the exceptions listed in section 860F(a)(2)(A)(i)–(iv); .03 The Service will not challenge a securitization vehicle’s classification as a trust under section 301.7701–4(c) on the grounds that the modifications manifest a power to vary the investment of the certifi- cate holders; and .04 The Service will not challenge a securitization vehicle’s qualification as a REMIC on the grounds that the modifica- tions resulted in a deemed reissuance of the REMIC regular interests. SECTION 7. EXAMPLE The following example illustrates the application of this revenue procedure: .01Facts. As part of its business,Sservices mort- gage loans that are held byR,aREMICthatisde- scribed in Section 5.03(1) of this revenue procedure. Shas developed a foreclosure prevention program to guide it in determining the risk of a foreclosure even- tually becoming necessary on a loan that it is servic- ing. For each loan that the program identifies as pre- senting an undesirable risk of foreclosure, the pro- gram also attempts to determine whether a modifica- tion to the terms of the loan might materially reduce the risk of foreclosure and, if so, what modification strikes the best balance between minimizing the sac- rifice of some required cash flows under the loan and maximizing the reduction in foreclosure risk. The factors that the program generally takes into account include the borrower’s payment history on the loan; the borrower’s payment history (as reported by a credit bureau) on the borrower’s other indebted- ness; the borrower’s FICO score; the loan-to-value ratio of the loan when it was originated; changes in property values in the neighborhood where the property securing the loan is located; an estimate of the current loan-to-value ratio; whether the monthly debt service under the loan has recently changed or will soon change; and, where available, any addi- tional data obtained from the borrower (for example, changes in employment and other income sources, family medical status, uninsured losses, adverse court judgments, inheritances, etc.). BecauseS’s program takes into account statistical models that were developed using extensive amounts of data involving diverse information from very many bor- rowers,Shas found the program to be generally reliable at assessing with a high degree of accuracy whether a borrower presents an unacceptably high risk of eventual foreclosure, even when some desired information is unavailable for a particular borrower. BorrowerBis the issuer of one of the mortgage loansthatisheldbyR. The real property securing B’s mortgage loan is described in Section 5.01 and 5.02 of this revenue procedure. None ofB’s pay- ments on the mortgage loan has been late in the few years that the loan has been outstanding. On the other hand, a very large increase inB’s monthly debt ser- vice is scheduled in the near future; the loan had a high loan-to-value ratio when it was originated; home values in the neighborhood of the collateral have de- clined significantly;B’s FICO score has dropped; and a credit bureau reports thatBis developing a pattern of increasingly late payment on rising levels of con- 2008–23 I.R.B.1055June 9, 2008 sumer debt. AlthoughStried several times to contact B,bothbyphoneandbymail,Bdid not answer any of the phone calls and did not respond to any of the letters or any of the phone messages that were left. Even without the benefit of individual informa- tion thatScould have obtained from a conversation withB,S’s model determines that, if the loan toB is not modified, there is a significant risk of even- tual foreclosure. The model also indicates, however, that reducing both the principal amount of, and the interest rate on, the loan would substantially reduce the risk of foreclosure. The anticipated benefit of re- ducing the risk of foreclosure outweighs the lower payments that would be required under the modified terms of the loan. UnderS’s foreclosure prevention program, therefore, the loan is modified by reducing both the principal amount and the interest rate. .02Analysis. The modified terms ofB’s loan are less favorable toRthan were the unmodified terms of the original loan. Moreover, the modification was undertaken because ofS’s reasonable beliefs that the unmodified loan presented a significant risk of fore- closure and that the modification would substantially reduce that risk. Accordingly, the modification is within the scope of this revenue procedure. SECTION 8. EFFECTIVE DATE This revenue procedure governs deter- minations made by the Service on or after May 16, 2008, with respect to loan modi- fications that are effected on or before De- cember 31, 2010. SECTION 9. REQUEST FOR COMMENTS The Service invites public comment on this revenue procedure. In particular, the Service invites comments on whether this revenue procedure should be extended to loan modifications that are effected after 2010, whether the Service should consider changing other provisions of this rev- enue procedure, and whether the Service should consider issuing any additional guidance regarding Federal tax issues that are raised by modifications of mortgage loans to reduce the risk of foreclosure. Comments should be submitted no later than July 15, 2008, to the Internal Rev- enue Service, CC:PA:LPD:RU (Rev. Proc. 2008–28), room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Comments may be hand delivered between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:RU (Rev. Proc. 2008–28), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Wash- ington, DC 20224. Alternatively, com- ments may be submitted via the Internet at Notice.Comments@irscounsel.treas.gov (Rev. Proc. 2008–28). All comments will be available for public inspection and copying in their entirety. There- fore, comments received by the IRS and Treasury should not include taxpayer-spe- cific information of a confidential nature. Comments should include the name and telephone number of a person to contact. SECTION 10. DRAFTING INFORMATION The principal author of this revenue procedure is Diana Imholtz of the Office of Associate Chief Counsel (Financial Institutions and Products). For further information, contactMs. Imholtz at (202) 622–3930 (not a toll-free call). Use this Revenue Procedure to prepare Tax Year2008and prior year information returns for submission to Internal Revenue Service (IRS) using electronic filing. Caution to filers: Please read this publication carefully. Persons or businesses required to file information returns electronically or magnetically may be subject to penalties for failure to file or include correct information if they do not follow the instructions in this Revenue Procedure. IMPORTANT NOTES: IRS/ECC-MTB now offers an Internet connection at h ttp://fire.irs.govfor electronic filing. The Filing Information Returns Electronically (FIRE) System will be down from 2 p.m. EST Dec. 22, 2008, through Jan. 4, 2009 for upgrading. It is not operational during this time for submissions. The FIRE System does not provide fill-in forms for information returns. After December 1, 2008, electronic filing will be the ONLY acceptable method to file information returns to IRS/ECC-MTB. Rev. Proc. 2008–30 TABLE OF CONTENTS Part A. General SEC. 1. PURPOSE................................................................................................ 1058 SEC. 2. NATURE OF CHANGES—CURRENT YEAR (TAX YEAR2008)................................................. 1059 SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, ENTERPRISE COMPUTING CENTER — MARTINSBURG ...................................................................................... 1060 June 9, 200810562008–23 I.R.B. SEC. 4. FILING REQUIREMENTS................................................................................. 1061 SEC. 5. VENDOR LIST............................................................................................ 1062 SEC. 6. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS ELECTRONICALLY....................... 1062 SEC. 7. RETENTION REQUIREMENTS AND DUE DATES............................................................ 1063 SEC. 8. CORRECTED RETURNS................................................................................... 1064 SEC. 9. EFFECT ON PAPER RETURNS AND STATEMENTS TO RECIPIENTS.......................................... 1068 SEC. 10. COMBINED FEDERAL/STATE FILING PROGRAM.......................................................... 1068 SEC. 11. PENALTIES ASSOCIATED WITH INFORMATION RETURNS................................................. 1070 SEC. 12. STATE ABBREVIATIONS................................................................................. 1070 Part B. Electronic Filing Specifications SEC. 1. GENERAL............................................................................................... 1071 SEC. 2. ELECTRONIC FILING APPROVAL PROCEDURE............................................................ 1072 SEC. 3. TEST FILES.............................................................................................. 1072 SEC. 4. ELECTRONIC SUBMISSIONS.............................................................................. 1073 SEC. 5. PIN REQUIREMENTS..................................................................................... 1073 SEC. 6. ELECTRONIC FILING SPECIFICATIONS................................................................... 1073 SEC. 7. CONNECTING TO THE FIRE SYSTEM...................................................................... 1074 SEC. 8. COMMON PROBLEMS AND QUESTIONS................................................................... 1075 Part C. Record Format Specifications and Record Layouts SEC. 1. GENERAL................................................................................................ 1077 SEC. 2. TRANSMITTER “T” RECORD — GENERAL FIELD DESCRIPTIONS........................................... 1077 SEC. 3. TRANSMITTER “T” RECORD — RECORD LAYOUT......................................................... 1080 SEC. 4. PAYER “A” RECORD — GENERAL FIELD DESCRIPTIONS................................................... 1081 SEC. 5. PAYER “A” RECORD — RECORD LAYOUT................................................................. 1090 SEC. 6. PAYEE “B” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUTS........................... 1090 (1)Payee“B”Record—RecordLayoutPositions544–750forForm1098.......................................... 1098 (2)Payee“B”Record—RecordLayoutPositions544–750forForm1098-C........................................ 1098 (3)Payee“B”Record—RecordLayoutPositions544–750forForm1098-E........................................ 1099 (4)Payee“B”Record—RecordLayoutPositions544–750forForm1098-T........................................ 1100 (5)Payee“B”Record—RecordLayoutPositions544–750forForm1099-A........................................ 1101 (6)Payee“B”Record—RecordLayoutPositions544–750forForm1099-B........................................ 1102 (7)Payee“B”Record—RecordLayoutPositions544–750forForm1099-C........................................ 1103 (8)Payee“B”Record—RecordLayoutPositions544–750forForm1099-CAP..................................... 1104 (9)Payee“B”Record—RecordLayoutPositions544–750forForm1099-DIV ..................................... 1105 (10)Payee“B”Record—RecordLayoutPositions544–750forForm1099-G........................................ 1106 (11)Payee“B”Record—RecordLayoutPositions544–750forForm1099-H........................................ 1107 (12)Payee“B”Record—RecordLayoutPositions544–750forForm1099-INT...................................... 1108 (13)Payee“B”Record—RecordLayoutPositions544–750forForm1099-LTC ..................................... 1109 (14)Payee“B”Record—RecordLayoutPositions544–750forForm1099-MISC.................................... 1110 (15)Payee“B”Record—RecordLayoutPositions544–750forForm1099-OID ..................................... 1112 2008–23 I.R.B.1057June 9, 2008 (16)Payee“B”Record—RecordLayoutPositions544–750forForm1099-PATR.................................... 1113 (17)Payee“B”Record—RecordLayoutPositions544–750forForm1099-Q........................................ 1113 (18)Payee“B”Record—RecordLayoutPositions544–750forForm1099-R........................................ 1114 (19)Payee“B”Record—RecordLayoutPositions544–750forForm1099-S........................................ 1118 (20)Payee“B”Record—RecordLayoutPositions544–750forForm1099-SA....................................... 1119 (21)Payee“B”Record—RecordLayoutPositions544–750forForm5498.......................................... 1120 (22)Payee“B”Record—RecordLayoutPositions544–750forForm5498-ESA..................................... 1121 (23)Payee“B”Record—RecordLayoutPositions544–750forForm5498-SA....................................... 1122 (24)Payee“B”Record—RecordLayoutPositions544–750forFormW-2G......................................... 1123 SEC. 7. END OF PAYER “C” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT................... 1124 SEC. 8. STATE TOTALS “K” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT.................... 1126 SEC. 9. END OF TRANSMISSION “F” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT ............................................................................................ 1128 SEC. 10. FILE LAYOUT DIAGRAM................................................................................. 1129 Part D. Extensions of Time and Waivers SEC. 1. GENERAL — EXTENSIONS................................................................................ 1129 SEC. 2. SPECIFICATIONS FOR FILING EXTENSIONS OF TIME ELECTRONICALLY.................................. 1130 SEC. 3. RECORD LAYOUT — EXTENSION OF TIME................................................................ 1131 SEC. 4. EXTENSION OF TIME FOR RECIPIENT COPIES OF INFORMATION RETURNS................................ 1132 SEC. 5. FORM 8508, REQUEST FOR WAIVERFROM FILING INFORMATION RETURNS ELECTRONICALLY .................................................................................. 1133 Part A. General Revenue Procedures are generally revised annually to reflect legislative and form changes. Comments concerning this Revenue Procedure, or suggestions for making it more helpful, can be addressed to: Internal Revenue Service Enterprise Computing Center — Martinsburg Attn: Information Reporting Program 230 Murall Drive Kearneysville, WV 25430 Sec. 1. Purpose .01The purpose of this Revenue Procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W-2G with IRS electronically through the IRS FIRE System. This RevenueProcedure must be used for the preparation of Tax Year2008information returns and information returns for tax years prior to2008filed beginning January 1, 2009.Specifications for filing the following forms are contained in this Revenue Procedure. (a)Form 1098, Mortgage Interest Statement (b)Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (c)Form 1098-E, Student Loan Interest Statement (d)Form 1098-T, Tuition Statement (e)Form 1099-A, Acquisition or Abandonment of Secured Property (f)Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (g)Form 1099-C, Cancellation of Debt (h)Form 1099-CAP, Changes in Corporate Control and Capital Structure (i)Form 1099-DIV, Dividends and Distributions (j)Form 1099-G, Certain Government Payments (k)Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments (l)Form 1099-INT, Interest Income June 9, 200810582008–23 I.R.B. (m)Form 1099-LTC, Long-Term Care and Accelerated Death Benefits (n)Form 1099-MISC, Miscellaneous Income (o)Form 1099-OID, Original Issue Discount (p)Form 1099-PATR, Taxable Distributions Received From Cooperatives (q)Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530) (r)Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (s)Form 1099-S, Proceeds From Real Estate Transactions (t)Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA (u)Form 5498, IRA Contribution Information (v)Form 5498-ESA, Coverdell ESA Contribution Information (w)Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information (x)Form W-2G, Certain Gambling Winnings .02All data received at IRS/ECC-MTB for processing will be given the same protection as individual income tax returns (Form 1040). IRS/ECC-MTB will process the data and determine if the records are formatted and coded according to this Revenue Procedure. .03Specifications for filing Forms W-2, Wageand Tax Statement, electronically areonlyavailable from the Social Security Ad- ministration (SSA). Filers can call 1–800-SSA–6270 to obtain the telephone number of the SSA Employer Service Liaison Officer for their area. .04IRS/ECC-MTB doesnotprocess Forms W-2. Paperand/orelectronic filing of Forms W-2 must be sent to SSA. IRS/ECC- MTB does, however, process waiver requests (Form 8508) and extension of time to file requests (Form 8809) for Forms W-2 as well as requests for an extension of time to provide the employee copies of Forms W-2. .05Generally, the box numbers on the paper forms correspond with the amount codes used to file electronically; however, if discrepancies occur, the instructions in this Revenue Procedure must be followed. .06This Revenue Procedure also provides the requirements and specifications for electronic filing under the Combined Fed- eral/State Filing Program. .07The following Revenue Procedures and publications provide moredetailed filing procedures for certain information returns: (a)2008 General Instructions for Forms 1099, 1098, 5498, and W-2Gand individual form instructions. (b)Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S. (c)Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Electronically. (d)Publication 1187, Specifications for Filing Forms 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, Electronically. .08This Revenue Procedure supersedes Rev. Proc. 2007–51 published as Publication 1220 (Rev. 6–2007), Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically or Magnetically. Sec. 2. Nature of Changes—Current Year (Tax Year2008) .01In this publication, all pertinent changes for Tax Year2008are emphasized by the use ofitalics. Portions of text that require special attention are in boldface text. Filers are always encouraged to read the publication in its entirety. a. General (1)IRS/ECC-MTB no longer accepts any form of magnetic media. Electronic filing through theFIRE System is the only method to report information returns to IRS/ECC-MTB. (2)Form 4804, Transmittal of Information Returns Reported Magnetically, is obsolete. This form was only required for mag- netic media reporting which is no longer a valid method of reporting information returns. (3)Several sections have been deleted due to the elimination of magnetic media filing and others combined for greater clarity. Please review the entire Publication for all relevant changes. (4)A toll-free fax number, 877–477–0572, was added to Part A, Sec. 03. b. Programming Changes (1)For all Forms, Payment Year, Field Positions 2–5, for the Transmitter “T” Record, Payer “A” Record and Payee “B” Record must be incremented to update the four-digit reportingyear (2007 to 2008), unless reporting prior year data. (2)In the Transmitter “T” Record, two fields, Cartridge Tape File Indicator, positions 409–410 and Transmitter’s Media Num- ber, positions 411–416, were deleted. These positions are now blank. (3)In the Payee “B” Record for Form 1099-CAP, Shareholder Indicator, position 627 was deleted. (4)For Form 1099-R, the distribution code H was added and new distribution code combinationsare allowed. See Form 1099-R Distribution Code Chart 2008for acceptable combinations. 2008–23 I.R.B.1059June 9, 2008 (5)The requirement for filing Form 8809, Application for Extension of Time To File Information Returns, electronically was reduced from 50 payers to 10 payers. See Part D. Sec. 3. Where To File and How to Contact the IRS, Enterprise Computing Center — Martinsburg .01All information returns filed electronically are processed at IRS/ECC-MTB. General inquiries concerning the filing of infor- mation returns should be sent to the following address: IRS-Enterprise Computing Center — Martinsburg Information Reporting Program 230 Murall Drive Kearneysville, WV 25430 .02All requests for an extension of time to file information returns with IRS/ECC-MTB filed on Form 8809 or request for an extension to provide recipient copies, and requests for undue hardship waivers filed on Form 8508 should be sent to the following address: IRS-Enterprise Computing Center — Martinsburg Information Reporting Program Attn: Extension of Time Coordinator 240 Murall Drive Kearneysville, WV 25430 .03The telephone numbers and web addresses for questionsabout specifications for electronic submissions are: Information Reporting Program Customer Service Section TOLL-FREE 1–866–455–7438 or outside the U.S. 1–304–263–8700 e-mail at m ccirp@irs.gov 304–267–3367 — TDD (Telecommunication Device for the Deaf) Fax Machine Toll-free within the U.S. —877–477–0572 Outside the U.S. — 304–264–5602 Electronic Filing — FIRE System h ttp://fire.irs.gov TO OBTAIN FORMS: 1–800–TAX–FORM (1–800–829–3676) w ww.irs.gov— IRS website access to forms (See Note.) Note: Because paper forms are scanned during processing, youcannot use forms printed from the IRS website to file Form 1096, and Copy A of Forms 1098, 1099, or 5498 with the IRS. .04The2008 General Instructions for Forms 1099, 1098, 5498, and W-2Gare included in the Publication 1220 for your conve- nience. Form 1096 is used only to transmit Copy A ofpaperForms 1099, 1098, 5498, and W-2G. If filing paper returns, follow the mailing instructions on Form 1096 and submit the paper returns to the appropriate IRS Service Center. .05Make requests for paper Forms 1096, 1098, 1099, 5498, and W-2G, and publications related to electronic filing by calling the IRS toll-free number1–800–TAX–FORM (1–800–829–3676) or ordering online from the IRS website at w ww.irs.gov. .06Questions pertaining to electronic filing of Forms W-2mustbe directed to the Social Security Administration (SSA). Filers can call 1–800–772–6270 to obtain the telephone number of theSSA Employer Service Liaison Officer for their area. .07Payersshould notcontact IRS/ECC-MTB if they have received a penaltynotice and need additional information or are re- questing an abatement of the penalty. A penalty notice contains an IRS representative’s name and/or telephone number for contact June 9, 200810602008–23 I.R.B. purposes; or the payer may be instructed to respond inwriting to the address provided. IRS/ECC-MTB doesnotissue penalty no- tices and doesnothave the authority to abate penalties. For penaltyinformation, refer to the Penalties section of the2008 General Instructions for Forms 1099, 1098, 5498, and W-2G. .08A taxpayer or authorized representative may request a copy of a taxreturn, including Form W-2 filed with a return, by submitting Form 4506, Request for Copy of Tax Return, to IRS. This form may be obtained by calling1–800–TAX–FORM (1–800–829–3676). For questions regarding this form, call 1–800–829–1040. .09Electronic Products and Services Support,Information Reporting Branch, Customer Service Section (IRB/CSS), answers elec- tronic, paper filing, and tax law questions from the payer community relating to the correct preparation and filing of business informa- tion returns (Forms 1096, 1098, 1099, 5498, 8027, and W-2G). IRB/CSS also answers questions about the electronic filing of Forms 1042-S and the tax law and paper filing instructions for Forms W-2 and W-3. Inquiries pertaining to Notices CP2100 and 972CG, backup withholding and reasonable cause requirements due to missing and incorrect taxpayer identification numbers (TINS) are also addressed by IRB/CSS. Assistance is available year-round to payers, transmitters, and employers nationwide, Monday through Fri- day, 8:30 a.m. to 4:30 p.m. Eastern Standard Time, by calling toll-free1–866–455–7438.IRB/CSS also offers an e-mail address for transmitters and electronic filers ofinformation returns. The address is m ccirp@irs.gov. When sending e-mails concerning specific file information, you must include the company name and theelectronic filename or Transmitter Control Code. Please donotsubmit TINS or attachments, because electronic mail is not secure and the information maybe compromised. The Telecommunications De- vice for the Deaf(TDD)toll number is304–267–3367.Call as soon as questions arise to avoid the busy filing seasons at the end of January and February. Recipients of information returns (payees) should continue to contact 1–800–829–1040 with any questions on how to report the information returns data on their tax returns. .10IRB/CSS cannot advise filers where to send state copies of paper forms. Filers must contact the Tax Department in the state where the recipient resides to obtain thecorrect address and filing requirements. .11Form 4419, Application for Filing Information Returns Electronically, Form 8809, Application for Extension of Time To File Information Returns, and Form 8508, Request for Waiver From Filing Information Returns Electronically, may be faxed to IRS/ECC- MTB toll-free at877–477–0572. 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 250or more information returns must file such returns electronically. The 250* or more requirement applies separately for each typeof return and separately to each type of corrected return. *Even though filers may submit up to 249 information returns onpaper, IRS encourages filers to transmit those information returns electronically. .02All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identification Number (TIN), which may be either a Social Security Number (SSN),Employer Identification Number (EIN), or Individual Taxpayer Identification Number (ITIN). For example, if a corporation with several branches or locations usesthe same EIN, the corporation must aggregate the total volume of returns to be filed for that EIN and apply the filing requirements to each type of return accordingly. .03The following requirements apply separately to both originals and corrections filed electronically: 2008–23 I.R.B.1061June 9, 2008 1098 1098-C 1098-E 1098-T 1099-A 1099-B 1099-C 1099-CAP 1099-DIV 1099-G 1099-H 1099-INT 1099-LTC 1099-MISC 1099-OID 1099-PATR 1099-Q 1099-R 1099-S 1099-SA 5498 5498-ESA 5498-SA W-2G 250ormoreofanyof these forms require electronic filing with IRS. These are stand-alone documents and may not be aggregated for purposes of determining the 250 threshold. For example, if you must file 100 Forms 1099-B and 300 Forms 1099-INT, Forms 1099-B need not be filed electronically since they do not meet the threshold of 250. However, Forms 1099-INT must be filed electronically since they meet the threshold of 250. .04The above requirements do not apply if the payer establishes undue hardship (See Part D, Sec. 5). Sec. 5. Vendor List .01IRS/ECC-MTB prepares a list of vendors who support electronic filing. The Vendor List (Pub. 1582) contains the names of service bureaus that will produce or submit files for electronic filing. It also contains the names of vendors who provide software packages for payers who wish to produce electronic files on their own computer systems. This list is compiled as a courtesy and in no way implies IRS/ECC-MTB approval or endorsement. .02If filers engage a service bureau to prepare files on their behalf, the filers must not also report this data, as it will create a duplicate filing situation which may cause penalty notices to be generated. .03The Vendor List, Publication 1582, is updated periodically. The most recent revision is available on the IRS website at w ww.irs.gov. For an additional list of software providers, log on to www.irs.govandgototheApprovedIRSe-fileforBusiness Providerslink. .04A vendor, who offers a software package, or has the capability to electronically file information returns for customers, and who would like to be included in Publication 1582 must submit a letter or e-mail to IRS/ECC-MTB. The request should include: (a)Company name (b)Address (include city, state, and ZIP code) (c)Telephone and FAX number (include area code) (d)E-mail address (e)Contact person (f)Website (g)Type(s) of service provided (e.g.,service bureau and/or software) (h)Method of filing (only electronic filing is acceptable) (i)Type(s) of return(s) Sec. 6. Form 4419, Application for FilingInformation Returns Electronically .01Transmitters are required to submit Form 4419, Application forFiling Information Returns Electronically, to request autho- rization to file information returns with IRS/ECC-MTB. A single Form 4419 should be filed no matter how many types of returns the transmitter will be submitting electronically. For example, if a transmitter plans to file Forms 1099-INT, one Form 4419 should be submitted. If, at a later date, another type ofform (Forms 1098, 1099, 5498 and W-2G) will befiled, the transmitter should not submit a new Form 4419. June 9, 200810622008–23 I.R.B. Note: EXCEPTIONS — An additional Form 4419 is required for filing each of the following types of returns: Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, and Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. See the back of Form 4419 for detailed instructions. .02Electronically filed returns may not be submitted to IRS/ECC-MTB until the application has been approved. Please read the instructions on the back of Form 4419 carefully. Form 4419 is included in the Publication 1220 for the filer’s use. This form may be photocopied. Additional forms may be obtained by calling1–800–TAX–FORM (1–800–829–3676). The form is also available on the IRS website atw ww.irs.gov. .03Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval letter. The TCCmustbe coded in the Transmitter “T” Record. IRS/ECC-MTB uses the TCC to identify payers/transmitters and to track their files through the processing system. .04IRS/ECC-MTB encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC for all payers. While not encouraged, multiple TCCs can be issued to payers with multiple TINs. Transmitters cannot use more than one TCC in a file. Each TCC must be reported in separate transmissions. .05If 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/ECC-MTB for the payer. Other service bureaus will prepare the file and return the file to the payer for submission to IRS/ECC-MTB. These service bureaus may require the payer to obtain a TCC, which is coded in the Transmitter “T” Record. Payers should contact their service bureau for further information. .06Form 4419 may be submitted anytime during the year; however, itmustbe submitted to IRS/ECC-MTB at least 15 days before the due date of the return(s) for current year processing. This allows IRS/ECC-MTB the time necessary to process and respond to applications. Form 4419 may be faxed to IRS/ECC-MTB toll-free at877–477–0572. In the event that computer equipment or software is not compatible with IRS/ECC-MTB, a waiver may be requested to file returns on paper documents (See Part D, Sec. 5). .07Once a transmitter is approved to file electronically, it is not necessary to reapplyunless: (a)The payer has discontinued filing electronically for two consecutive years. The payer’s TCC may have been reassigned by IRS/ECC-MTB. Payers who know that the assigned TCC will no longer be used, are requested to notify IRS/ECC-MTB so these numbers may be reassigned. (b)The payer’s files were transmitted in the past by a service bureau using the service bureau’s TCC, but now the payer has computer equipment compatible with that of IRS/ECC-MTB and wishes to prepare his or her own files. The payer must request a TCC by filing Form 4419. .08In accordance with Regulations section 1.6041–7(b), payments by separate departments of a health carecarrier to providers of medical and health care services may be reported on separate returns filed electronically. In this case, the headquarters will be considered the transmitter, and the individual departments of thecompany filing reports will be considered payers. A single Form 4419 covering all departments filingelectronically should be submitted. One TCC may be used for all departments. .09Copies of Publication 1220 can be obtained by downloading from the IRS website atw ww.irs.gov. .10Ifanyof the information (name, TIN or address) on Form 4419changes, please notify IRS/ECC-MTB in writing so the IRS/ECC-MTB database can be updated. The e-mail address, m ccirp@irs.gov, may be used for these changes. The transmitter should include the TCC in all correspondence. .11Approval to file does not imply endorsementby IRS/ECC-MTB of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor. Sec. 7. Retention Requirements and Due Dates .01 Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at least 3 years from the reporting due date, except: (a)Retain for 4 years all information returns when backup withholding is imposed. (b)A financial entity must retain a copy of Form 1099-C, Cancellation of Debt, or have the ability to reconstruct the data required to be included on the return, for at least 4 years from the date such return is required to be filed. .02Filing of information returns is on a calendar year basis, except for Forms 5498 and 5498-ESA, which are used to report amounts contributed during or after the calendar year (but no later than April 15). The following due dates will apply to Tax Year2008: 2008–23 I.R.B.1063June 9, 2008 Due Dates Forms 1098, 1099, and W-2G Recipient Copy — February 2, 2009 IRS Copy — March 31, 2009 Forms 5498*, 5498-SA and 5498-ESA IRS Copy — June 1, 2009 Forms 5498 and 5498-SA Participant Copy — June 1, 2009 Form 5498-ESA Participant Copy — April 30, 2009 * Participants’ copies of Forms 5498 to furnish fair market value information — February 2, 2009 .03If 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. Sec. 8. Corrected Returns •Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit- ted to and successfully processed by IRS/ECC-MTB, but contained erroneous information. •While we encourage you to file your corrections electronically, you may file up to 249 paper corrections even though your originals were filed electronically. •DONOTSENDYOURENTIREFILEAGAIN. Only correct the information returns which were erroneous. •Information returns omitted from the original filemust notbe coded as corrections. Submit these returns under a separate Payer “A” Record asoriginal returns. •Be sure to use the same payee account number that was used onthe original submission. The account number is used to match a correction record to the original information return. •Before creating your correction file, review the correction guidelines chart carefully. .01The electronic filing requirement of information returns of 250 or more applies separately to both original and corrected returns. E X A M P L E If a payer has 100 Forms 1099-A to be corrected, they can be filed on paper because they fall under the 250 threshold. However, if the payer has 300 Forms 1099-B to be corrected, they must be filed electronically because they meet the 250 threshold. If for some reasona payer cannot file the 300 corrections electronically, to avoid penalties, a request for a waiver must be submitted before filing on paper. If a waiver is approved for original documents, any corrections for the same type of return will be covered under this waiver. .02Corrections should be filedas soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of $50 per return. Corrections filed by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalties section of the2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.) However, if payers discover errors after August 1, they should file corrections, as prompt correction is a factor considered in determining whether the intentional disregard penalty should be assessed or whether a waiver of the penalty for reasonable cause may be granted. All fields must be completed with the correct information, not just the data fieldsneeding correction. Submit corrections only for the returns filed in error, not the entire file. Furnish corrected statementsto recipients as soon as possible. Note: Do NOT resubmit your entire file as corrections. This willresult in duplicate filing and erroneous notices may be sent to payees. Submit only those returns which require correction. .03There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error. If the original return was filed as an aggregate, the filers must consider this in filing corrected returns. .04The payee’s account number should be included onallcorrection records. This is especially important when more than one information return of the same type is reported for a payee. Theaccount number is used to determine which information return is being corrected. It is vital that each information return reported for a payee have a unique account number. See Part C, Sec. 6, Payer’s Account Number For Payee. June 9, 200810642008–23 I.R.B. .05Corrected returns may be included on the same transmission as original returns; however, separate “A” Records are required. If filers discover that certain information returns were omitted on their original file, they mustnotcode these documents as corrections. The file must be coded and submitted as originals. .06If a payer realizes duplicate reporting has occurred, IRS/ECC-MTB should be contactedimmediatelyfor instructions on how to avoid notices. The standard correction process will not resolve duplicate reporting. .07If a payer discovers errors that affect a large number of payees, in addition to sending IRS the corrected returns and notifying the payees, IRS/ECC-MTB underreporter section should be contacted toll-free 1–866–455–7438 for additional requirements. Corrections must be submitted on actual information return documents or filed electronically. .08Prior year data, original and corrected,mustbe filed according to the requirementsof this Revenue Procedure. When submit- ting prior year data, use the record format for the current year. Eachtax year must be electronically filed in separate transmissions. However, use the actual year designation of the data in Field Positions 2–5 of the “T”, “A”, and “B” Records. Field position 6, Prior Year Data Indicator, in the Transmitter “T” Record must contain a “P”. If filing electronically, a separate transmission must be made for each tax year. .09In general, filers should submit corrections for returns filed within the last 3 calendar years (4 years if the payment is a reportable payment subject to backup withholding under section 3406 of the Code and also for Form 1099-C, Cancellation of Debt). .10All paper returns, whether original or corrected, must be filed with the appropriate service center.IRS/ECC-MTB does not process paper returns. .11If a payer discovers an error(s) in reporting thepayer (not recipient)name and/or TIN, write a letter to IRS/ECC-MTB (See Part A, Sec. 3) containing the following information: (a)Name and address of payer (b)Type of error (please include the incorrect payer name/TIN that was reported) (c)Tax year (d)Payer TIN (e)TCC (f)Type of return (g)Number of payees (h)Filing method, paper or electronic .12The “B” Record provides a 20-position field for a unique Payer’s Account Number for Payee.If a payee has more than one reporting of the same document type, it is vital that each reporting is assigned a unique accountnumber. This number will help identify the appropriate incorrect return if morethan one return is filed for a particular payee.Do not enter a TIN in this field.A payer’s account number for the payee may be a checking account number, savings account number, serial number, or any other number assigned to the payee by the payer that will distinguish the specific account. This numbershould appear on the initial return and on the corrected return in order to identify and process the correction properly. .13The record sequence for filing correctionsisthesameasfororiginalreturns. .14Review the chart that follows. Errors normally fall under oneof the two categories listed. Next to each type of error is a list of instructions on how to file the corrected return. 2008–23 I.R.B.1065June 9, 2008 Guidelines for Filing Corrected Returns Electronically One transaction is required to make the following corrections properly. (See Note 5.) Error Made on the Original ReturnHow To File the Corrected Return ERRORTYPE1CORRECTION 1. Original return was filed with one or more of the following errors: A. Prepare a new file. The first record on the file will be the Transmitter “T” Record. B.Make a separate “A” Record for each type of return and each payer being reported. Payer information in the “A” Record must be the same as it was in the original submission. C. The Payee “B” Records must show the correct record information as well as a Corrected Return Indicator Code of “G” in Field Position 6. D.Corrected returns using“G” coded “B” Records may be on the same file as those returns submitted without the “G” coded “B” Records; however, separate “A” Records are required. E.Prepare a separate “C” Record for each type of return and each payer being reported. F.The last record on the file will be the End of Transmission “F” Record. (a)Incorrect payment amount codes in the Payer “A” Record (b)Incorrect payment amounts in the Payee “B” Record (c)Incorrect code in the distribution code field in Payee “B” Record (d)Incorrect payee address(See Note 3.) (e)Incorrect payee indicator(See Note 1.) (f)Incorrect payee name(See Notes 2 & 3.) (g)Return should not have been filed Note 1: Payee indicators are non-money amount indicator fields located in the specific form record layouts of the Payee “B” Record between field positions 544–748. Note 2: For information on errors to the payer’s name and TIN (See Part A, Sec. 8, .11). Note 3: To correct a TIN and/or payee name and address follow the instructions under Error Type 2. File layoutonestep corrections Transmitter “T” Record Payer “A” Record “G” coded Payee “B” Record “G” coded Payee “B” Record End of Payer “C” Record End of Transmission “F” Record June 9, 200810662008–23 I.R.B. Guidelines for Filing Corrected Returns Electronically (Continued) Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both Transactions 1 and 2. (See Note 5.) DO NOT use the two step correction process to correct money amounts. Error Made on the Original ReturnHow To File the Corrected Return ERRORTYPE2CORRECTION 1. Original return was filed with one or more of the following errors: Transaction 1:Identify incorrect returns. A. Prepare a new file. The first record on the file will be the Transmitter “T” Record. B.Make a separate “A” Record for each type of return and each payer being reported. The information in the “A” Record will beexactlythe same as it was in the original submission.(See Note 4.) (a)No payee TIN (SSN, EIN, ITIN, QI-EIN) (b)Incorrect payee TIN (c)Incorrect payee name and address (d)Wrong type of return indicator Note 4: The Record Sequence Number will be different since this is a counter number and is unique to each file. For 1099-R corrections, if the corrected amounts are zeros, certain indicators will not be used. C. The Payee “B” Records must containexactly the sameinformation as submitted previously,except, insert a Corrected Return Indicator Code of “G” in Field Position 6 of the “B” Records, and enter “0” (zeros) in all payment amounts.(See Note 4.) D.Corrected returns using“G” coded “B” Records may be on the same file as those returns submitted with a“C”code;however, separate “A” Records are required. E.Prepare a separate “C” Record for each type of return and each payer being reported. F.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. B.The Payee “B” Records must show the correct information as well as a Corrected Return Indicator Code of “C” in Field Position 6. C. Corrected returns submitted to IRS/ECC-MTB using “C” coded “B” Records may be on the same file as those returns submitted with “G” codes;however, separate “A” Records are required. D.Prepare a separate “C” Record for each type of return and each payer being reported. E.The last record on the file will be the End of Transmission “F” Record. Note 5: See the2008 General Instructions for Forms 1099, 1098, 5498, and W-2Gfor additional information on regulations affecting corrections and related penalties. 2008–23 I.R.B.1067June 9, 2008 File layouttwostep corrections Transmitter “T” Record Payer “A” Record “G” coded Payee “B” Record “G” coded Payee “B” Record End of Payer “C” Record Payer “A” Record “C” coded Payee “B” Record “C” coded Payee “B” Record End of Payer “C” Record End of Transmission “F” Record Note 6: If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns onthe same file, each category must be reported under separate “A” Records. Sec. 9. Effect on Paper Returns and Statements to Recipients .01Electronic reporting of information returns eliminates the need to submit paper documents to the IRS.CAUTION: Do not send Copy A of the paper forms to IRS/ECC-MTB for any forms filed electronically.This will result in duplicate filing; therefore, erroneous notices could be generated. .02Payers are responsible for providing statements to the payees as outlined in the2008 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 specifications and guidelines in Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G and 1042-S. Sec. 10. Combined Federal/State Filing Program •Through the Combined Federal/State Filing (CF/SF) Program, IRS/ECC-MTB will forward original and corrected information returns filed electronically to participating states for approved filers. •For approval, the filer must submit a test file coded for this program. See Part B, Sec. 3, Test Files. •Approved filers are sent Form 6847, Consent for Internal Revenue Service to Release Tax Information, which must be com- pleted and returned to IRS/ECC-MTB. A separate form is required for each payer. This form does not have to be filed every year, only when payer information changes. .01The Combined Federal/State Filing (CF/SF) Program was established to simplify information returns filing for the taxpayer. IRS/ECC-MTB will forward this information to participating states free of charge for approved filers. Separate reporting to those states is not required. The following information returns may be filed under theCombined Federal/State Filing Program: Form 1099-DIVDividends and Distributions Form 1099-GCertain Government Payments Form 1099-INTInterest Income Form 1099-MISCMiscellaneous Income Form 1099-OIDOriginal Issue Discount Form 1099-PATRTaxable Distributions Received From Cooperatives Form 1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Form 5498 IRA Contribution Information .02To request approval to participate, an electronic test file coded for this programmustbe submitted to IRS/ECC-MTB between November 1, 2008,andFebruary 15, 2009. June 9, 200810682008–23 I.R.B. .03If the test file is coded for the Combined Federal/State Filing Program and is acceptable, anapproval letter and Form 6847, Consent for Internal Revenue Service to Release Tax Information, will be sent to the filer. .04Form 6847, Consent for Internal Revenue Service to Release Tax Information,mustbe completed and signed by the payer, and returned to IRS/ECC-MTB before any tax information can be released to the state. Filers must write their TCC on Form 6847. .05While a test file is only required for the first year when a filer applies to participate in the Program, it is highly recommended that a test be sent every year you participate in the Combined Federal/State Filing program. Each record, both in the test and the actual data file, must conform to the current Revenue Procedure. .06Within 1–2 days after your file has been sent, you will be notified via e-mail as to the acceptability of your file if you provide a valid e-mail address on the “Verify Your FilingInformation” screen. If you are using e-mailfiltering software, configure your software to accept e-mail from f ire@irs.govand irs.e-helpmail@irs.gov. If the file is bad, the filer must return to http://fire.irs.govto determine what the errors are in the file by clickingon CHECK FILE STATUS. If the test file was unacceptable a new file can be transmitted up to February 15, 2009. .07A separate Form 6847 isrequiredfor each payer. A transmitter may not combine payers on one Form 6847 even if acting as Attorney-in-Fact for several payers. Form6847 may be computer-generated as long as it includes all information on the original form, or it may be photocopied. If Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must clearly indicate that the Attorney-in-Fact is empowered to authorize release of the information. .08Only code the records for participating states and for those payers who have submitted Form 6847. .09If a payee has a reporting requirement for more than one state,separate “B” records must be created for each state. Payers must pro-rate the amounts to determine what should be reported to each state. Donotreport the total amount to each state. This will cause duplicate reporting. .10Some participating states require separate notification thatthepayerisfilinginthismanner. SinceIRS/ECC-MTBactsasa forwarding agent only, it is the payer’s responsibility tocontact the appropriate states for further information. .11All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states. Only send corrections which affect the Federal reporting. Errors which apply only to the state filing requirement should be sent directly to the state. .12Participating states and corresponding valid state codes are listed inTable 1of this section. The appropriate state codemust be entered for those documents that meet the state filing requirements;do not use state abbreviations. .13Each state’s filing requirements are subject to change by the state. It is the payer’s responsibility to contact the participating states to verify their criteria. .14Upon submission of the actual files, the transmittermustbe sure of the following: (a)All records are coded exactly as required by this Revenue Procedure. (b)A State Total “K” Record(s) for each state(s)being reported follows the “C” Record. (c)Payment amount totals and the valid participating statecode are included in the State Totals “K” Record(s). (d)The last “K” Record is followed by an “A” Record or an End of Transmission “F” Record (if this is the last record of the entire file). Table 1. Participating States and Their Codes * StateCodeStateCodeStateCode Alabama01Indiana18Nebraska31 Arizona04Iowa19NewJersey34 Arkansas 05 Kansas20New Mexico 35 California06Louisiana22North Carolina37 Colorado07Maine23North Dakota38 Connecticu t 08Maryland24Ohio39 Delaware10Massachusetts 25 South Carolina 45 District of Columbia11Minnesota27Utah49 Georgia13Mississippi28Virginia 51 Hawaii 15 Missouri29Wisconsin 55 Idaho16Montana30 * The codes listed above are correct for the IRS Combined Federal/State Filing Program and may not correspond to the state codes of other agencies or programs. 2008–23 I.R.B.1069June 9, 2008 Sample File Layout for Combined Federal/State Filer Transmitter “T” Record Payer “A” Record coded with 1 in position 26 Payee “B” Record with statecode15 in positions 747–748 Payee “B” Record with statecode06 in positions 747–748 Payee “B” Record, no state code End of Payer “C” Record State Total “K” Record for “B” records coded 15. “K” record coded 15 in positions 747–748. State Total “K” Record for “B” records coded 06. “K” record coded 06 in positions 747–748. End of Transmission “F” Record Sec. 11. Penalties Associated With Information Returns .01The following penalties generally apply to the person requiredto file information returns. The penalties apply to electronic filers as well as to paper filers. .02 Failure To File Correct Information Returns by the Due Date (Section 6721).If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable. The amount of the penalty is based on when you file the correct information return. The penalty is: •$15per information return if you correctly file within 30 daysof the due date of the return (See Part A, Sec. 7.02); maximum penalty $75,000 per year ($25,000 for small businesses). •$30per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $150,000 per year ($50,000 for small businesses). •$50per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000 per year ($100,000 for small businesses). .03A late filing penalty may be assessed for areplacement file which is not transmitted by the required date. See Part B, Sec. 4 .06, for more information on replacement files. .04 Intentional disregard of filing requirements.If failure to file a correct information return is due to intentional disregard of the filing or correct information requirements, the penalty isat least $100 per information return with no maximum penalty. .05 Failure To Furnish Correct Payee Statements (Section 6722).For information regarding penalties which may apply to failure to furnish correct payee statements, see2008 General Instructions for Forms 1099, 1098, 5498, and W-2G. Sec. 12. 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. June 9, 200810702008–23 I.R.B. StateCodeStateCodeStateCode AlabamaALKentuckyKYNo. Mariana IslandsMP AlaskaAKLouisianaLAOhioOH American SamoaASMaineMEOklahomaOK ArizonaAZMarshall IslandsMHOregonOR ArkansasARMarylandMDPennsylvaniaPA CaliforniaCAMassachusettsMAPuerto RicoPR ColoradoCOMichiganMIRhode IslandRI ConnecticutCTMinnesotaMNSouth Caroli na SC DelawareDEMississippiMSSouth DakotaSD District of ColumbiaDCMissouriMOTennesseeTN Federated States of Micronesia FMMontanaMTTexasTX FloridaFLNebraskaNEUtahUT GeorgiaGANevadaNVVermontVT GuamGUNew Hampsh ire NHVirginiaVA HawaiiHINew JerseyNJ(U.S.) Virgin IslandsVI IdahoIDNew MexicoNMWashingtonWA IllinoisILNew YorkNYWest VirginiaWV IndianaINNorth CarolinaNCWisconsinWI IowaIANorth DakotaNDWyomingWY KansasKS .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 Code098010100 *AE is the designation for ZIPs beginning with 090–098, AA for ZIP 340, and AP for ZIPs 962–966. Part B. Electronic Filing Specifications Note:The FIRE System DOES NOT provide fill-in forms, except for Form 8809, Application for Extension of Time To File Infor- mation Returns.Filers must program files according to the Record Layout Specifications contained in this publication. For a list of software providers, log on to w ww.irs.govandgototheApprovedIRSe-fileforBusinessProviderslink. Also, see Part A, Sec. 5 .03. Sec. 1. General .01Electronic filing of Forms 1098,1099, 5498, and W-2G information returns, originals, corrections, and replacements is the method of filing for payers who meet the 250 returns filing requirement. Payers who are under the filing threshold requirement, are encouraged to file electronically. .02All electronic filing of information returns are received at IRS/ECC-MTB via the FIRE (Filing Information Returns Elec- tronically) System. To connect to the FIRE System, point your browser to h ttp://fire.irs.gov. The system is designed to support the electronic filing of information returns only. 2008–23 I.R.B.1071June 9, 2008 .03The electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain separate approval to participate in each program. Only inquiries concerning electronic filing of information returns should be directed to IRS/ECC-MTB. .04Files submitted to IRS/ECC-MTB electronically must be in standard ASCII code. Do not send paper forms with the same information as electronically submittedfiles. This would create duplicate reporting resulting in penalty notices. .05See Part C, Record Format Specifications and Record Layouts. .06Form 8809, Application for Extension of Time To File Information Returns, is available as a fill-in form via the FIRE System. If you do not already have a User ID and password refer to Section 7. At the Main Menu, click “Extension of Time Request” and then click “Fill-in Extension Form”. This option is only used to request an automatic 30-day extension and must be completed by the due date of the return for each payer requesting an extension. Print the approval page for your records. Refer to Part D for additional details. Sec. 2. Electronic Filing Approval Procedure .01Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Refer to Part A, Sec. 6, for information on how to obtain a TCC. .02Once a TCC is obtained, electronic filers assign their own userID, password and PIN (Personal Identification Number) and do not need prior or special approval. See Part B, Sec. 5, for more information on the PIN. .03If a filer is submitting files for more than one TCC, it is notnecessary to create a separate logon and password for each TCC. .04For all passwords, it is the user’s responsibility to rememberthe password and not allow the password to be compromised. Passwords are user assigned at first logon and must be 8 alpha/numerics containing at least 1 uppercase, 1 lowercase, and 1 numeric. However, filers who forget their password or PIN, can calltoll-free 1–866–455–7438for assistance. The FIRE System may require users to change their passwords on a yearly basis. However, users can change their passwords at any time from the Main Menu. Sec. 3. 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 Year2008(returns to be filed in2009), itmustbe submitted to IRS/ECC-MTBno earlier thanNovember 1, 2008, andno later thanFebruary 15, 2009. .02IRS/ECC-MTB encourages first time electronic filers to submit a test. Test files arerequiredfor filers wishing to participate in the Combined Federal/State Filing Program. See Part A, Sec. 10,for further information on the Combined Federal/State Filing Program. .03The test filemustconsist of a sample of each type of record: (a)Transmitter “T” Record (all fields marked required must include transmitter information) (b)Payer “A” Record (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 C for record formats.) .04Use the Test Indicator “T” in Field Position 28 of the “T” Record to show this is a test file. .05IRS/ECC-MTB will check the file to ensure it meets the specifications of this Revenue Procedure. For current filers, sending a test file will provide the opportunity to ensure their software reflects any programming changes. .06Filers who encounter problems while transmitting the electronic test file can contact IRS/ECC-MTBtoll-free 1–866–455–7438 for assistance. .07Within 1–2 days after your file has been sent, you will be notified via e-mail as to the acceptability of your file if you provide a valid e-mail address on the “Verify Your FilingInformation” screen. If you are using e-mailfiltering software, configure your software to accept e-mail from f ire@irs.govand irs.e-helpmail@irs.gov. If the file is bad, the filer must return to http://fire.irs.govto determine what the errors are in the file by clicking on CHECK FILE STATUS. If your results indicate: (a)“Good, Federal Reporting” — Your test file is good for federal reporting only. Click on the filename for additional details. (b)“Good, Federal/State Reporting” — Your file is good for the Combined Federal and State Filing Program (see Part A, Section 10, for further details). Click on the filename for additional details. (c)“Bad” — This means that your test file contained errors. Click on the filename for a list of the errors. If you want to send another test file, send it as a test (not a replacement, original or correction). (d)“Not Yet Processed” — The file has been received, but we do not have results available yet. Please allow another day for results. June 9, 200810722008–23 I.R.B. Sec. 4. Electronic Submissions .01Electronically filed information may be submitted to IRS/ECC-MTB 24 hours a day, 7 days a week. Technical assistance is available Monday through Friday between 8:30 a.m. and 4:30 p.m. EST by callingtoll-free 1–866–455–7438. .02 The FIRE System will be down from 2 p.m. EST December 22, 2008, through January 4, 2009.This allows IRS/ECC- MTB to update its system to reflect current year changes. .03If you are sending files larger than 10,000 records electronically, data compression is encouraged. When transmitting files larger than 5 million records, please contact IRS/ECC-MTB for additional information. WinZipand PKZIP are the only acceptable compression packages. IRS/ECC-MTB cannot accept self-extracting zip files or compressed files containing multiple files. The time required to transmit information returns electronically will vary depending upon the type of connection to the Internet and if data compression is used.The time required to transmit a file can be reduced up to 95 percent by using compression. .04The FIRE System can accept multiple files forthe same type of return providing duplicate data is not transmitted. For example, if your company has several branches issuing 1099-INT forms, it is not necessary to consolidate all the forms into one transmission. Each file may be sent separately,providing duplicate data is not transmitted. .05Transmitters may create files using self assigned file name(s). Files submitted electronically will be assigned a new unique file name by the FIRE System. The filename assigned by the FIRE System will consist of submission type (TEST, ORIG [original], CORR [correction], and REPL [replacement]), the filer’s TCC and a four-digit number sequence. The sequence number will be incremented for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename would be ORIG.44444.0001.Record the filename.This information will be neededby IRS/ECC-MTB to identify the file, if assistance is required. .06If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was transmitted to transmit an acceptable file. If an acceptable file is not received within 60 days, the payer could be subject to late filingpenalties. This only applies to files originally submitted electronically. .07The following definitions have been provided to help distinguish between a correction and a replacement: •Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit- ted to and processed by IRS/ECC-MTB, but contained erroneous information.(See Note.) Note:Corrections should only be made torecords that have been submitted incorrectly, not the entire file. •Areplacementis an information return file sent by the filer because the CHECK FILE STATUS option on the FIRE System indicated the original/correction file 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/ECC-MTB as a “Replacement” file unless the CHECK FILE STATUS option on the FIRE System indicates the file is bad. .08The TCC in the Transmitter “T” Record must be the TCC used to transmit the file; otherwise, the file will be considered an error. Sec. 5. PIN Requirements .01The user will be prompted to create a PIN consisting of 10 numeric s when establishing their initial logon name and password. .02The PIN is required each time an ORIGINAL, CORRECTION, or REPLAC EMENT file is sent electronically and is permission to release the file. It is not needed for a TEST file. An authorized ag ent may enter their PIN, however, the payer is responsible for the accuracy of the returns. The payer will be liable for penalties for f ailure to comply with filing requirements. If you forget your PIN, please calltoll-free 1–866–455–7438for assistance. .03If the file is good, it is released for mainline processing after 10 calendar days from receipt. Contact ustoll-free 1–866–455–7438 within this 10-day period if there is a reason the file should not be r eleased for further processing. If the file is bad, follow normal replacement procedures. Sec. 6. Electronic Filing Specifications .01The FIRE System is designed exclusively for the filing of Forms 1042-S, 1098, 1099, 5498, 8027, and W-2G. .02A transmitter must have a TCC (see Part A,Sec. 6) before a file can be transmitted. .03After 1–2 business days, the results of the electronic transmission will be e-mailed to you providing you provide an accurate e-mail address on the “Verify Your Filing Information” screen. If you are using e-mail filtering software, configure your software to accept e-mail from f ire@irs.govand irs.e-helpmail@irs.gov. If after receiving the e-mail it indicates that your file is bad, you must logintotheFIRESystemandgototheCHECKFILESTATUSareaofthe FIRE System to determine what the errors are in your file. 2008–23 I.R.B.1073June 9, 2008 Sec. 7. Connecting to the FIRE System .01Point your browser to http://fire.irs.govto connect to the FIRE System. .02Filers should turn off their pop-up blockingsoftware before transmitting their files. .03Before connecting, have your TCC and TIN available. .04Your browser must support SSL 128-bit encryption. .05Your browser must be set to receive “cookies”. Cookies are used to preserve your User ID status. F irsttimeconnectiontoTheFIRESystem(If you have logged on previously, skip to Subsequent Connections to the FIRE System.) Click“Create New Account”. Fill out the registration form and click“Submit”. Enter yourUser ID(most users logon with their first and last name). Enter and veri fy yourpassword(the password is user assigned and must be 8 alpha/numerics, containing at least 1 uppercase, 1 lowercase and 1 numeric). FIRE may require you to change the password o nce a year. Click“Create”. If you receive the message“Account Created”,click“OK”. Enter and verify your 10-digit self-assigned PIN (Personal Identification Number). Click“Submit”. If you recei ve the message“Your PIN has been successfully created!”,click“OK”. Read the bulletin(s) and/or“Click here to continue”. S ubsequentconnectionstoTheFIRESystem Click“Log O n”. Enter yourUser ID(most users logon with their first and last name). Enter yourpassword(the password is user assigned and is case sensitive). Read the bulletin(s) and/or “Click here to continue”. U ploadingyourfiletotheFIRESystem At Menu Options: Click“Se nd Information Returns” Enter yourTCC: Enter yourTIN: Click“Submit”. The system will then display the company name, address, city, state, ZIP Code, telephone number, contact and e-mail address. This information will be used to e-mail the transmitter regarding their transmission. Update as appropriate and/or Click“Accept”. Note: Please ensure that the e-mail is accurate so that the correct person receives the e-mail and it does not return to us undeliverable. If you are using SPAM filtering software, please configure it to allow an e-mail from f ire@irs.govand irs.e-helpmail@irs.gov. Click one of the following: Original File Correction File Test File(This option will only be available from 11/1/2008 — 02/15/2009.) Rep lacement File(Click on the file to be replaced.) •Electronic Replacement(file was originally transmitted on this system) Click the file to be replaced. June 9, 200810742008–23 I.R.B. Uploadingyourf iletotheFIRESystem •Mag Media Replacement(file was originally sent on some type of mag- netic media) Enter the alpha character from the letter (L–2494) that was returned. It is located on the top right on the letter under “Refer Reply To:” For example, if the letter indicates TCC 44444A, the alpha code that would be entered is “A”. Click“Submit”. Enter your 10- digit PIN (not prompted for this if a test is being sent). Click“Submit”. Click“Browse”to locate the file and open it. Click“Upload”. When the upload is complete, the screenwill display the total bytes received and tell you the name of the file you just uploaded. If you have more files to upload for that TCC: Click“File Another?”;otherwise, Click“Main Menu”. It is your responsibility to check the acceptability of your file; therefore, be sure to check back into the system in 1–2 business days using the CHECK FILE STATUS option. CheckingyourFILESTATUS If the correct e-mail address was provided on the “Verify Your Filing Information” screen when the file was sent, an e-mail will be sent regarding your FILE STATUS. If the results in the e-mail indicate “Good, not Released” and you agree with the “Count of Payees”, then you are finished with this file. If you have any other results, please follow the instructions below. At the Main Menu: Click“Check File Status”. Enter yourTCC: Enter yourTIN: Click“Search”. If “Results” indicate: “Good, Not Released”and you agree with the “Count of Payees”, you are finished with this file. The file will automatically be released after 10 calendar days unless you contact us within this timeframe. “Good, Released”– File has been released to our mainline processing. “Bad”– Correct the errors and timely resubmit the file as a “replacement”. “Not yet processed”– File has been received, but we do not have results available yet. Please check back in a few days. Click on the desired file for a detailed report of your transmission. When you are finished, click onMain Menu. Click“Log Out”. Close your Web Browser. Sec. 8. Common Problems and Questions IRS/ECC-MTB encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This may eliminate the need for IRS/ECC-MTB to request replacement files. This may be important for those payers who have either had their files prepared by a service bureau orwho have purchased software packages. 2008–23 I.R.B.1075June 9, 2008 Filers who engage a service bureau to transmit their files on their behalf should be careful not to report duplicate data, which may generate penalty notices. This section lists some of the problems most frequently encountered with electronic files submitted to IRS/ECC-MTB. These problems may result in IRS/ECC-MTB requesting replacement files. 1. Discrepancy Between IRS/ECC-MTB Totals and Totals in Payer “C” Records The “C” Record is a summary record for a type of return for agiven payer. IRS compares the total number of payees and payment amounts in the “B” records with totals in the “C” Records. The two totalsmustagree. DoNOTenter negative amounts except when reporting Forms 1099-B or 1099-Q. Money amounts must be all numeric, right-justified and zero (0) fill unused positions.Do Not Use Blanks. 2. The Payment A mount Fields in the “B” Record Do Not Correspond to the Amount Codes in the “A” Record. The Amount Codes used in the “A” recordMUSTcorrespond with the payment amount fields used in the “B” records. The amount codes must be left-justified, in ascendingorder with the unused positions blank. For Example: If the “B” records show payment amounts in payment amount fields 2, 4, and 7, then the “A” record must correspond with 2, 4, and 7 in the amount codes field. 3. Incorrect TIN in Payer “A” Record. The Payer’s TIN reported in positions 12–20 of the “A” record must be a nine-digit number.(Do Not Enter Hyphens.)The TINandtheFirstPayerNameLineprovided in the “A” record must correspond. 4. Incorrect T ax Year in the Transmitter “T” Record, Payer “A” Record and the Payee “B” Records. The tax year in the transmitter, payer and payee records should reflect the tax year of the information return being reported. For prior tax year data, there must be a “P” in position 6 of the Transmitter “T” record. This position must be blank for current tax year data. 5. Incorrect use of Test Indicator. When sending a test file, position 28 of the Transmitter “T” record should contain a “T”, otherwise blank fill. Do not populate this Field with a “ T” if sending an original, replacement or correction file. 6. Incorrect Format for TINs in the Payee “B” Record. TINs entered in positions 12–20 of the Payee “B” record must consist of nine numerics only.(Do Not Enter Hyphens.) Incorrect formatting of TINs may result in a penalty. 7. Distribution Codes for Form 1099-R Reported Incorrectly. For Form 109 9-R, there must be valid Distribution Code(s) in positions 545–546 of the Payee “B” record. For valid codes (and combinatio ns), see Guide to Distribution Codes in Part C. If only one distribution code is required, it must be entered in position 545 and posi tion 546 must be blank. A blank in position 545 is not acceptable. 8. Missing Correction Indicator in Payee “B” Record. When a file is submitted as a correction file, there must be acorrection indicator, “G” or “C” in position 6 of the Payee “B” record. See Part A, Sec. 8. N ON-FORMATERRORS 1. SPAM filters are not set to receive e-mail from fire@irs.govand irs.e-helpmail@irs.gov. If you want to receive e-mails concerning your files, processing results, reminders and notices, set your SPAM filter to receive e-mail fro mf ire@irs.govand irs.e-helpmail@irs.gov. 2. Incorrect e-mail provided. When the “Verify Your Filing Information” screen is displayed, make sure your correct e-mail address is listed. If not, please update with the correct e-mail address. June 9, 200810762008–23 I.R.B. 3. Transmitter does not check the FIRE Systemtodeterminewhythefileisbad. The results of your file transfer are posted to the FIRE System within two business days. If the correct e-mail address was provided on the “Verify Your Filing Information” screen when the file was sent, an e-mail will be sent regarding your FILE STATUS. If the results in the e-mail indicate “Good, not Released” and you agreewith the “Count of Payees”, then you are finished with this file. If you have any other results, please follow the instructions in the Check File Status option.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/ECC-MTB within 10 calendar days from the transmission of your file. 4.Incorrect file is not replaced timely. If your file is bad, correct the file and timely resubmit as a replacement. 5. 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. 6. Transmitte r sends a file and CHECK FILE STATUS indicates thatthe file is good, but the transmitter wants to send a replacement o r correction file to replace the original/correction/replacement file. Once a file has been transmitted, you cannot send a replacement file unless CHECK FILE STATUS indicates the file is bad (1–2 business days after file was transmitted). If you do not want us to process the file, you must first contact ustoll-free 1–866–455–7438to see if this is a possibility. 7. Transmitter sends an original file that is good, and then sends a correction file for the entire file even though there are only a few changes. The correcti on file, containing the proper coding, should only contain the records needing correction, not the entire file. 8. File is formatted as EBCDIC. All files submitted electronicallymust be in standard ASCII code. 9. Transmitter has one TCC number, but is filing for multiple companies, which TIN should be used when logging into the system to send the file? When sending the file electronically, you will need to enter theTIN of the company assigned to the TCC. When you upload the file, it will contain the TINs of the other companies for which you are filing. This is the information that will be passed forward. 10. Transmitter sent the wrong file, what should be done? Call us as soon as possible toll-free at1–866–455–7438.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. Part C. Record Format Specifications and Record Layouts Sec. 1. General .01The specifications contained in this part of the Revenue Procedure define the required formation and contents of the records to be included in the electronic files. .02A provision is made in the “B” Records for entries which are optional. If the field is not used, enter blanks to maintain a fixed record length of 750 positions. Each field descriptionexplains the intended use of specific field positions. Sec. 2. Transmitter “T” Record — General Field Descriptions .01The Transmitter “T” Record identifies the entity transmitting the electronic file and contains information which is critical if it is necessary for IRS/ECC-MTB to contact the filer. .02The Transmitter “T” Record is the first record on each file and is followed by a Payer “A” Record. A file format diagram is located at the end of Part C. A replacement file will be requested by IRS/ECC-MTB if the “T” Record is not present. .03For all fields marked“Required”, the transmitter must provide the information described under Description and Remarks. For those fields not marked“Required”, a transmitter must allow for the field but may be instructed to enter blanks or zeros in the indicated field positions and for the indicated length. .04All records must be a fixed length of 750 positions. 2008–23 I.R.B.1077June 9, 2008 .05All alpha characters entered in the “T” Record must be upper-case, except e-mail addresses which may be case sensitive.Do notuse punctuation in the name and address fields. Record Name: Transmitter “T” Record Field Position Field Title Length Description and Remarks 1Record Type1 Required.Enter “T”. 2–5 Payment Year4 Required.Enter “2008”. If reporting prior year data, report the year which applies (2006, 2007, etc.) and set the Prior Year Data Indicator in field position 6. 6Prior Year Data Indicator 1 Required.Enter “P”onlyif reporting prior year data; otherwise, enter blank. Do not enter a “P” if tax year is2008.(See Note.) Note: Electronic files SENT December 21 or later must be coded with a “P”. Current year processing ends in December and programs are converted for the next processing year. 7–15 Transmitter’s TIN9 Required.Enter the transmitter’s nine-digit Taxpayer Identification Number (TIN). May be an EIN or SSN. 16–20Transmitter Control Code 5Required.Enter the five-character alpha/numeric Transmitter Control Code (TCC) assigned by IRS/ECC-MTB. A TCCmust be obtained to file data with this program. 21–27Blank7Enter blanks. 28Test File Indicator 1 Required for test files only. Enter a “T” if this is a test file; otherwise, enter a blank. 29Foreign Entity Indicator 1Enter a “1” (one) if the transmitter is a foreign entity. If the transmitter is not a foreign entity, enter a blank. 30–69Transmitter Name40 Required.Enter the name of the transmitter in the manner in which it is used in normal business. Left-justify and fill unused positions with blanks. 70–109Transmitter Name (Continuation) 40 Required.Enter any additional information that may be part of the name. Left-justify information and fill unused positions with blanks. 110–149Company Name40 Required.Enter the name of the company to be associated with the address where correspondence should be sent. 150–189 Company Name (Continuation) 40Enter any additional information that may be part of the name of the company where correspondence should be sent. 190–229Company Mailing Address 40 Required.Enter the mailing address where correspondence should be sent. Note: Any correspondence relating to problem electronic files will be sent to this address. For U.S. addresses,the payer city, state, and ZIP Code must be reported as a 40, 2, and 9-position field, respectively.Filers must adhere to the correct format for the payer city, state, and ZIP Code. For foreign addresses,filers may use the payer city, state, and ZIP Code as acontinuous 51-position field. Enter information inthefollowingorder:city,provinceorstate,postalcode,and the name of the country. When reporting a foreign address, the Foreign Entity Indicator in position 29 must contain a “1” (one). 230–269Company City 40 Required.Enter the city, town, or post office where correspondence should be sent. 270–271Company State 2 Required.Enter the valid U.S. Postal Service state abbreviation. Refer to the chart for valid state codes in Part A, Sec. 12. 272–280Company ZIP Code 9 Required.Enter the valid nine-digit ZIP assigned by the U.S. Postal Service. If only the first five-digits are known, left-justify information and fill unused positions with blanks. June 9, 200810782008–23 I.R.B. Record Name: Transmitter“T” Record (Continued) Field Position Field Title Length Description and Remarks 281–295 Blank 15 Enter blanks. 296–303Total Number of Payees 8Enter the total number of Payee “B” Records reported in the file. Right-justify information and fill unused positions with zeros. 304–343Contact Name40 Required.Enter the name of the person to be contacted if IRS/ECC-MTB encounters problems with the file or transmission. 344–358 Contact Phone Number & Extension 15Required.Enter the telephone number of the person to contact regarding electronic files. Omit hyphens. If no extension is available, left-justify information and fill unused positions with blanks. For example, the IRS/ECC-MTB Customer Service Section phone number of866–455–7438with an extension of52345would be866455743852345. 359–408 Contact e-mail Address 50Required if available.Enter the e-mail address of the person to contact regarding electronic files. Left-justify information. If no e-mail address is available, enter blanks. 409–499Blank91Enter blanks. 500–507 Record Sequence Number 8 Required.Enter the number of the record as it appears within your file. The record sequence number for the “T” record will always be “1” (one), since it is the first record on your file and you can have only one “T” record in a file. Each record, thereafter, must be incremented by one in ascending numerical sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” record sequence number would appear as “00000001” in the field, the first “A” record would be “00000002”, the first “B” record, “00000003”, the second “B” record, “00000004” and so on until you reach the final record of the file, the “F” record. 508–517 Blank10Enter blanks. 518 Vendor Indicator1 Required.Enter the appropriate code from the table below to indicate if your software was provided by a vendor or produced in-house. Indicator Usage VYour software was purchased from a vendor or other source. IYour software was produced by in-house programmers. Note: In-house programmer is defined as an employee or a hired contract programmer. If your software is produced in-house, the following Vendor information fields are not required. 519–558 Vendor Name40 Required.Enter the name of the company from whom you purchased your software. 559–598 Vendor Mailing Address 40 Required.Enter the mailing address. ForU.S.addresses, the vendor city, state, and ZIP Code must be reported as a 40, 2, and 9-position field, respectively.Filers must adhere to the correct format for the payer city, state, and ZIP Code. For foreign addresses,filers may use the payer city, state, and ZIP Code as a continuous 51-position field. Enter information in the following order: city, province or state, postal code, and the name of the country. 599–638 Vendor City40 Required.Enter the city, town, or post office. 639–640Vendor State2 Required.Enter the valid U.S. Postal Service state abbreviation. Refer to the chart of valid state codes in Part A, Sec. 12. 2008–23 I.R.B.1079June 9, 2008 Record Name: Transmitter“T” Record (Continued) Field Position Field Title Length Description and Remarks 641–649Vendor ZIP Code9 Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal Service. If only the first five-digits are known, left-justify information and fill unused positions with blanks. 650–689 Vendor Contact Name40 Required.Enter the name of the person whocan be contacted concerning any software questions. 690–704Vendor Contact Phone Number & Extension 15Required.Enter the telephone number of the person to contact concerning software questions. Omit hyphens. If no extension is available, left-justify information and fill unused positions with blanks. 705–739 Blank 35 Enter Blanks. 740Vendor Foreign Entity Indicator 1Enter a “1” (one) if the vendor is a foreign entity. Otherwise, enter a blank. 741–748Blank8Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed characters (CR/LF). Sec. 3. Transmitter “T” Record — Record Layout Record Type Payment Year Prior Year Data Indicator Transmitter’s TIN Transmitter Control Code Blank 1 2–5 6 7–15 16–2021–27 Test File Indicator Foreign Entity Indicator Transmitter Name Transmitter Name (Continuation) Company Name Company Name (Continuation) 282930–6970–109110–149 150–189 Company Mailing Address Company City Company State Company ZIP Code BlankTotal Number of Payees Contact Name 190–229230–269270–271272–280 281–295 296–303304–343 Contact Phone Number & Extension Contact e-mail Address BlankRecord Sequence Number BlankVendor Indicator 344–358359–408 409–499 500–507508–517518 Vendor Name Vendor Mailing Address Vendor City Vendor State Vendor ZIP Code Vendor Contact Name 519–558559–598599–638 639–640641–649 650–689 June 9, 200810802008–23 I.R.B. Vendor Contact Phone Number & Extension BlankVendor Foreign Entity Indicator BlankBlank or CR/LF 690–704 705–739 740741–748 749–750 Sec. 4. Payer “A” Record — General Field Descriptions .01The Payer “A” Record identifies the person making payments, a recipient of mortgage or student loan interest payments, an educational institution, a broker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee or issuer of any IRA or MSA plan, and a lender who acquires an interest in secured property or who has a reason to know that the property has been abandoned. The payer will be held responsible for the completeness, accuracy, andtimely submission of electronic files. .02The second record on the file must be an “A” Record. A transmitter may include Payee “B” records for more than one payer in a file. However,each groupof “B” records must be preceded by an “A” Record and followed by an End of Payer “C” Record. A single file may contain different types of returns but the types of returnsmust notbe intermingled. A separate “A” Record is required for each payer and each type of return being reported. .03The number of “A” Records depends on the number of payers and the different types of returns being reported. Do not submit separate “A” Records for each payment amount being reported. For example, if a payer is 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. .04The maximum number of “A” Records allowed on a file is 90,000. .05All records must be a fixed length of 750 positions. .06All alpha characters entered inthe “A” Record must be upper case. .07For all fields marked“Required”, the transmitter must provide the information described under Description and Remarks. For those fields not marked“Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s)and for the indicated length. Record Name: Payer “A” Record Field Position Field Title Length Description and Remarks 1Record Type1 Required.Enter an “A”. 2–5 Payment Year4 Required.Enter “2008”. If reporting prior year data, report the year which applies (2006, 2007, etc.). 6–11Blank6Enter blanks. 12–20Payer’s Taxpayer Identification Number (TIN) 9 Required.Must be the valid nine-digit Taxpayer Identification Number assigned to the payer.Do not enter blanks, hyphens, or alpha characters.All zeros, ones, twos, etc., will have the effect of an incorrect TIN. Note: For foreign entities that are not required to have a TIN, this field must be blank. However, the Foreign Entity Indicator, position 52 of the “A”Record, must be set to “1” (one). 21–24Payer Name Control 4The Payer Name Control can be obtained only from the mail label on the Package 1096 that is mailed to most payers eachDecember. If a Package 1096 has not been received, you can determine your name control using the following simple rules or you can leave the field blank. For a business,use the first four significant characters of the business name. Disregard the word “the” when it is the first word of the name, unless there are only two words in the name. A dash (-) and an ampersand (&) are the only acceptable special characters. Names of less than four (4) characters should be left-justified, filling the unused positions with blanks. 25 Last Filing Indicator 1Enter a “1” (one) if this is thelast yearthis payer name and TIN will file information returns electronically or on paper; otherwise, enter blank. 2008–23 I.R.B.1081June 9, 2008 Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks 26Combined Federal/State Filer 1 Required for the Combined Federal/State Filing Program.Enter“1”(one)if approved or submitting a test to participate in the Combined Federal/State Filing Program; otherwise, enter a blank. Note 1: If the Payer “A” Record is coded for Combined Federal/State Filing Program there must be coding in the Payee “B” Records and the State Totals “K” Records. Note 2: If you entered “1” (one) in this field position, be sure to code the Payee “B” Records with the appropriate state code. Refer to Part A, Sec. 10,for further information. 27Type of Return1 Required.Enter the appropriate code from the table below: TypeofReturnCode 10983 1098-CX 1098-E2 1098-T8 1099-A4 1099-BB 1099-C 5 1099-CAPP 1099-DIV1 1099-GF 1099-HJ 1099-INT6 1099-LTCT 1099-MISCA 1099-OIDD 1099-P ATR 7 1099-QQ 1099-R9 1099-SS 1099-SAM 5498 L 5498-ESA V 5498-SA K W-2GW 28–41Amount Codes (See Note.) 14 Required.Enter the appropriate amount codes for the type of return being reported. In most cases, the box numbers on paper information returns correspond with the amount codes used to file electronically. However, if discrepancies occur, this Revenue Procedure governs for filing electronically. Enter the amount codes in ascending sequence; numeric characters followed by alphas. Left-justify, and fill unused positions with blanks. No te: A type of return and an amount code must be present in every Payer “A” Record even if no money amounts are be ing reported. For a detailed explanation of the information to be reported in each amount code, refer to the appropriate pa per instructions for each form. Amount CodesForm 1098—Mortgage Interest Statement Fo r Reporting Mortgage Interest Received From Payers/Borrowers (Payer of Re cord) on Form 1098: AmountCodeAmountType 1Mortgage interest received from payer(s)/borrower(s) June 9, 200810822008–23 I.R.B. Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks AmountCodeAmountType 2Points paid on purchase of principal residence 3Refund (or credit) of overpaid interest 4Mortgage Insurance Premiums 5 Blank (Filer’s use) Amount CodesForm 1098-C— Contributions of Motor Vehicles, Boats, and Airplanes For Reporting Gross Proceeds From Sales on Form 1098-C: A mountCodeAmountType 4Gross proceeds from sales 6Value of goods or services in exchange for vehicle Amount CodeForm 1098-E—Student Loan Interest Statement For Reporting Interest on Student Loans on Form 1098-E: A mountCodeAmountType 1Student loan interest received by lender Amount CodesForm 1098-T— Tuition Statement For Reporting Tuition Payments on Form 1098-T: A mountCodeAmountType 1Payments received forqualified tuition and related expenses 2Amounts billed for qualified tuition and related expenses 3Adjustments made for prior year 4Scholars hips or grants 5 Adjustmentstoscholarshipsorgrantsfor a prior year 7Reimbursements or refunds of qualified tuition and related expenses from an insurance contract Note 1: F or Amount Codes 1 and 2 enter either payments received OR amounts billed. DO NOT report both. Note 2: Amount Codes 3 and 5 are assumed to be negative. It is not necessary to code with an over punch or dash to indicate a negative reporting. Amount CodesForm 1099-A— Acquisition or Abandonment of Secured Property For Reporting the Acquisition or Abandonment of Secured Property on Form 1099-A: A mountCodeAmountType 2Balance of principal outstanding 4Fairma rket value of property 2008–23 I.R.B.1083June 9, 2008 Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks For Reporting Payments on Form 1099-B: Amount CodesForm 1099-B— Proceeds From Broker and Barter Exchange TransactionsA mountCodeAmountType 2Stocks, bonds, etc. (For forward contracts, See Note 1.) 3Bartering (Do not report negative amounts.) 4Federal income tax withheld (backup withholding) (Do not report negative amounts.) 6 Profit (or lo ss) realized in2008(See Note 2.) 7Unrealized profit (or loss) on open contracts —12/31/2007(See Note 2.) 8Unrealized profit (or loss) on open contracts —12/31/2008(See Note 2.) 9 Aggregate profit (or loss)(See Note 2.) Note 1: The payment amount field associated with Amount Code 2 may be used to 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 regulatedfutures or foreign currency contracts. For Reporting Payments on Form 1099-C: Amount CodesForm 1099-C — Cancellation of Debt A mountCodeAmountType 2Amount of debt canceled 3Interest, if included in Amount Code 2 7 Fair market value of property(See Note.) Note: Use Amount Code 7 only if a combined Form 1099-A and 1099-C is being filed. For Reporting Payments on Form 1099-CAP: Amount CodeForm 1099-CAP— Changes in Corporate Control and Capital StructureA mountCodeAmountType 2Aggregate amount received For Reporting Payments on Form 1099-DIV: Amount CodesForm 1099-DIV— Dividends and Distributions A mountCodeAmountType 1Total ordinary dividends 2Qualified dividends 3Total capital gain distribution 6 Unreca ptured Section 1250 gain 7Section 1202 gain 8Colle ctibles (28%) rate gain 9Nondividend distributions AFederal income tax withheld BInvestment expenses CForeign tax paid DCash liquidation distributions ENon -cash liquidation distributions June 9, 200810842008–23 I.R.B. Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks For Reporting Payments on Form 1099-G: Amount CodesForm 1099-G— Certain Government Payments A mountCodeAmountType 1Unemployment compensation 2State or local income tax refunds, credits, or offsets 4Federal income tax withheld (backup withholding or voluntary withholding on unemploymen t compensation or Commodity Cre dit Corporation Loans, or certain crop d isaster payments) 5 Alternative Trade Adjustment Assistance (ATAA) Payments 6Taxable grants 7Agriculture payments For Reporting Payments on Form 1099-H: Amount CodesForm 1099-H— Health Coverage Tax Credit (HCTC) Advance PaymentsA mountCodeAmountType 1Gross amount of health insurance advance payments 2Amount of advance payment for January 3Amount of advance payment for February 4Amount of advance payment for March 5 Amount of advance payment for April 6Amount of advance payment for May 7Amount of advance payment for June 8Amount of advance payment for July 9Amount of advance payment for August AAmount of advance payment for September BAmount of advance payment for October CAmount of advance payment for November DAmount of advance payment for December For Reporting Payments on Form 1099-INT: Amount CodesForm 1099-INT— Interest Income A mountCodeAmountType 1Interest income not included in Amount Code 3 2Early withdrawal penalty 3Interest on U.S. Savings Bonds and Treasury obligations 4Federa l income tax withheld (backup withho lding) 5 Investment expenses 6Foreign tax paid 8Tax-exempt interest 9Speci fied Private Activity Bond Interest For Re porting Payments on Form 1099-LTC: Amount CodesForm 1099-LTC— Long-Term Care and Accelerated Death BenefitsA mountCodeAmountType 1Gross long-term care benefits paid 2Accelerated death benefits paid 2008–23 I.R.B.1085June 9, 2008 Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks For Reporting Payments on Form 1099-MISC: Amount CodesForm 1099-MISC— Miscellaneous Income (See Note 1.)A mountCodeAmountType 1Rents 2 Royalties(See Note 2.) 3Other income 4Federal income tax withheld (backup withholding or withholding on Indian gaming profits) 5 Fishing boat proceeds 6Medical and health care payments 7Nonemployee compensation 8Substitute payments in lieu of dividends or interest ACrop insurance proceeds BExcess golden parachute payments CGross proceeds paid to an attorney in connection with legal services DSection 409A Deferrals ESection 409A Income Note 1: If reporting a direct sales indicatoronly, use Type of Return “A” in Field Position 27, and Amount Code 1 in Field Position 28 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros. Note 2: Do not report timber royalties under a “pay-as-cut” contract; these must be reported on Form 1099-S. Amount CodesForm 1099-OID— Original Issue Discount For Reporting Payments on Form 1099-OID: A mountCodeAmountType 1Original issue discount for2008 2Other periodic interest 3Early withdrawal penalty 4Federal income tax withheld (backup withholding) 6Original issue discount on U.S. Treasury Obligations 7Investment expenses For Reporting Payments on Form 1099-PATR: Amou nt CodesForm 1099-PATR— Taxa ble Distributions Received From Coop eratives A mou ntCode Amou ntType 1Patr onage dividends 2Nonpatronage distributions 3Per-unit retain allocations 4Federal income tax withheld (backup withholding) 5 Red emption of nonqualified notices and ret ain allocations 6Deduction for qualified production activities income June 9, 200810862008–23 I.R.B. Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks Pass-Through Credits 7Investment credit 8Work opportunity credit 9Patron’s alternative minimum tax (AMT) adjustment AForfiler’sus e for pass-through credits and deductions For Reporting Payments on a Form 1099-Q: Amount CodesForm 1099-Q— Payments From Qualified Education Programs (Under Sections 529 and 530)A mountCodeAmountType 1Gross distribution 2Earnings 3Basis For Reporting Payments on Form 1099-R: A mountCodeAmountType 1Gross distribution 2 Taxable amo unt(See Note 1.) 3Capital gain (included in Amount Code 2) 4Federal in come tax withheld 5 Employee contributions or insurance premiums 6Net unrealized appreciation in employer’s securities 8Other 9Total employee contributions Amount Code sForm 1099-R— Distributi ons From Pensions, Annuities, Retirement or Profit–Sharing Plans, IRAs, Insurance C ontracts, etc. ATraditional IRA/SEP/SIMPLE distribution or Roth conversion(See Note 2.) Note 1: If the taxable amount cannot be determined, enter a “1” (one) in position 547 of the “B” Record. Payment Amount 2 must contain zeros. 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 orRoth 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 to “1” (one) in Field Position 548 of the Payee “B” Record. For Reporting Payments on Form 1099-S: Amount CodesForm 1099-S— Proceeds From Real Estate Transactions A mountCodeAmountType 2 Gross proceeds(See Note.) 5 Buyer’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. For Reporting Distributions on Form 1099-SA: Amount CodesForm 1099-SA— Distributions From an HSA, Archer MSA, or Medicare Advantage MSAA mountCodeAmountType 1Gross distribution 2Earnings on excess contributions 4Fair market value of the account on date of de ath 2008–23 I.R.B.1087June 9, 2008 Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks For Reporting Information on Form 5498:Amount CodesForm 5498—IRA Contribution Information A mountCodeAmountType 1IRA contributions (other than amounts in Amount Codes 2, 3, 4, 8, 9, and A)(See Notes 1 and 2.) 2Rollover contributions 3Roth conversion amount 4Recharacterized contributions 5 Fair market value of account 6Life insuran ce cost included in Amount Code 1 8SEP contributions 9SIMPLE contributions ARoth IRA contributions Note 1: If reporting IRA contributions fora participant in a military operation, see2008 Instructions for Forms 1099-R and 5498. Note 2: Also include employee contributions to an IRA under a SEP plan but not salary reduction contributions. D O NOTincludeEMPLOYERcontributions; these are included in Amount Code 8. For Reporting Information on Form 5498-ESA:Amount CodesForm 5498-ESA— Coverdell ESA Contribution Information A mountCodeAmountType 1Coverdell ESA contributions 2Rollover contributions For Report ing Information on Form 5498-SA: Amount Cod esForm 5498-SA—HSA, Archer MS A, or Medicare Advantage MSA Infor mation A mountCo de AmountTy pe 1Employee or self-employed person’s Archer MS A contributions made in 2008 and 2009 f or 2008 2Total contributions made in 2008 (See current 2008 Instructions.) 3Total HSA/MSA contributions made in 2009 for 2008 4 Rollover contributions(See Note.) 5 Fair market value of HSA, Archer MSA or Medicare Advantage MSA Note:ThisistheamountofanyrollovermadetothisMSAin2008after a distribution from another MSA. For detailed information on reporting, see the2008 Instructions for Forms 1099-SA and 5498-SA. Amount CodesForm W-2G—Certain Gambling Winnings For Reporting Payments on Form W-2G: A mountCodeAmountType 1Grosswinnings 2Federal income tax withheld 7Winnings from identical wagers 42–51 Blank10 Enter blanks. 52 Foreig nEntity Indica tor 1Entera “1” (one) if the payer is a foreign entityandincomeispaidbytheforeign entity to a U.S. resident. Otherwise, enter a blank. June 9, 200810882008–23 I.R.B. Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks 53–92 First Payer Name Line 40 Required.Enter the name of the payer whose TIN appears in positions 12–20 of the “A” Record. Any extraneous information must be deleted. Left-justify information, and fill unused positions with blanks. (Filers should not enter a transfer agent’s name in this field. Any transfer agent’s name should appear in the Second Payer Name Line Field.) 93–132Second Payer Name Line 40 If the Transfer (or Paying) Agent Indicator (position 133) contains a “1” (one), this field must contain the name of the transfer (or paying) agent. If the indicator contains a “0” (zero), this field may contain either a continuation of the First Payer Name Line or blanks. Left-justify information and fill unused positions with blanks. 133Transfer Agent Indicator 1 Required.Identifies the entity in the Second Payer Name Line Field. CodeMeaning 1The entity in the Second Payer Name Line Field is the transfer (or paying) agent. 0 (zero)The entity shown isnotthe transfer (or paying) agent (i.e., the Second Payer Name Line Field contains either a continuation of the First Payer Name Line Field or blanks). 134–173Payer Shipping Address 40 Required.If the Transfer Agent Indicator in position 133 is a “1” (one), enter the shipping address of the transfer (or paying) agent. Otherwise, enter theactual shipping address of the payer. The street address should include number, street, apartment or suite number, or PO Box if mail is not delivered to a street address. Left-justify information, and fill unused positions with blanks. For U.S. addresses, the payer city, state, and ZIP Code must be reported as a 40, 2, and 9-position field, respectively.Filers must adhere to the correct format for the payer city, state, and ZIP Code. For foreign addresses,filers may use the payer city, state, and ZIP Code as acontinuous 51-position field. Enter information 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). 174–213Payer City40 Required.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. 214–215 Payer State2 Required. Enter the valid U.S. Postal Service state abbreviations. Refer to the chart of valid state abbreviations in Part A, Sec. 12. 216–224Payer ZIP Code 9 Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal Service. If only the first five-digits are known, left-justify information and fill the unused positions with blanks. For foreign countries, alpha characters are acceptable as long as the filer has entered a “1” (one) in the Foreign Entity Indicator, located in Field Position 52 of the “A” Record. 225–239 Payer’s Phone Number & Extension 15 Enter the payer’s phone number and extension. Omit hyphens. Left-justify information and fill unused positions with blanks. 240–499Blank260Enter blanks. 2008–23 I.R.B.1089June 9, 2008 Record Name: Payer “A” Record (Continued) Field Position Field Title Length Description and Remarks 500–507 Record Sequence Number 8 Required.Enter the number of the record as it appears within your file. The record sequence number for the “T” record will always be “1” (one), since it is the first record on your file and you can have onlyone “T” record in a file. Each record, thereafter, must be incremented by one inascending numerical sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” record sequence number would appear as “00000001” in the field, the first “A” record would be “00000002”, the first “B” record, “00000003”, the second “B” record, “00000004” and so on until you reach the final record of the file, the “F” record. 508–748 Blank241Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Sec. 5. Payer “A” Record — Record Layout Record Type Payment Year BlankPayer TIN Payer Name Control Last Filing Indicator 1 2–5 6–1112–2021–24 25 Combined Federal/State Filer Type of Return Amount Codes BlankForeign Entity Indicator First Payer Name Line 262728–41 42–515253–92 Second Payer Name Line Transfer Agent Indicator Payer Shipping Address Payer City Payer State Payer ZIP Code 93–132133134–173174–213 214–215 216–224 Payer’s Phone Number and Extension BlankRecord Sequence Number BlankBlank or CR/LF 225–239 240–499 500–507508–748749–750 Sec. 6. Payee “B” Record — General Field Descriptions and Record Layouts .01The “B” Record contains the payment information from the information returns. The record layout for field positions 1 through 543 is the same for all types of returns. Field positions 544 through 750 vary for each type of return toaccommodate special fields for individual forms. In the “B” Record, the filermustallow for allfourteenPaymentAmountFields.For those fields not used, enter “0s” (zeros). .02The following specifications include a field in the payee records called “NameControl” in which the first four characters of the payee’s surname are to be entered by the filer: (a)If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Com- pliance with the following will facilitate IRS computer programs in identifying the correct name control: (1)The surname of the payee whose TIN is shown in the “B” Recordshould 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. June 9, 200810902008–23 I.R.B. (2)In the case of multiple payees, the surname of the payee whose TIN (SSN, EIN, ITIN, or ATIN) is shown in the “B” Record must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second Payee Name Line. .03For all fields marked“Required”, the transmitter must provide the information described under “Description and Remarks”. For those fields not marked“Required”, the transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s)and for the indicated length. .04All records must be a fixed length of 750 positions. .05A field is also provided in these specifications for Special DataEntries. This field may be used torecord information required by state or local governments, or for the personal use of the filer. IRS does not use the data provided in the Special Data Entries Field; therefore, the IRS program does not check the content or format ofthe data entered in this field. Itis the filer’s option to use the Special Data Entry Field. .06Following the Special Data Entries Field in the “B” Record, payment fields have been allocatedfor State Income Tax Withheld and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by IRS/ECC- MTB. .07Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A, Sec. 10, to participate in this program. .08All alpha characters in the “B” Record must be uppercase. .09 Do notuse decimal points (.) to indicate dollars and cents. Payment Amount Fields must be all numeric characters. Record Name: Payee “B” Record Field Position Field Title Length Description and Remarks 1Record Type1 Required.Enter “B”. 2–5 Payment Year4 Required.Enter “2008”. If reporting prior year data, report the year which applies (2006, 2007, etc.). 6Corrected Return Indicator (See Note.) 1 Required for corrections only.Indicates a corrected return. CodeDefinition GIf this is a one-transactioncorrectionorthefirstof a two-transaction correction CIf this is the second transaction of a two-transaction correction BlankIf this is not a return being submitted to correct information already processed by IRS Note: C, G, and non-coded records must be reported using separate Payer “A” Records. Refer to Part A, Sec. 8, for specific instructions on how to file corrected returns. 7–10Name Control4If determinable, enter the first four characters of the surname of the person whose TIN is being reported in positions 12-20 of the “B” Record; otherwise,enter blanks. This usually is the payee. If the name that corresponds to the TIN is not included in the first or sec- ond payee name line and the correctname control is not provided, a backup withholding notice may be generated for the record. Sur- names of less than four characters should be left-justified, filling the unused positions with blanks. Special characters and imbedded blanks should be removed. In the case of a business, other than a sole proprietorship, use the first four significant characters of the busi- ness name. Disregard the word “the” when it is the first word of the name, unless there are only two words in the name. A dash (-) and an ampersand (&) are the only acceptable special characters. Surname prefixes are considered, e.g., for Van Elm, the name control would be VANE. For a sole proprietorship, use the name of the owner to create the name control and report the owner’s name in positions 248–287, First Payee Name Line. 2008–23 I.R.B.1091June 9, 2008 Record Name: Payee “B” Record (Continued) Field Position Field Title Length Description and Remarks Note: Imbedded blanks, extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period [.], apostrophe [’]) should be removed from the Payee Name Lines. A dash(-) and an ampersand (&) are the only acceptable special characters. The following examples may be helpful to filers in developing the Name Control: Name NameControl Individuals: JaneB rownBROW John A.L eeLEE* James P.E n,Sr.EN* JohnO ’Neil ONEI MaryV anBurenVANB JuanD eJesusDEJE Gloria A.E l-RoyEL-R Mr. JohnS mi th SMIT JoeM cCarthy MCCA PedroT orre s-Lopes** TORR MariaL opez Moreno**LOPE Binh ToL aLA* Nhat ThiP hamPHAM Corporations: TheF irstNationalBank FIRS T heHideawayTHEH A &BCafe A&BC 1 1THStreet Inc. 11TH Sole Proprietor: MarkH emlock DBA The Sunshine Club HEML MarkD ’Allesandro DALL Partnership: RobertA spen and Bess Willow ASPE HaroldF ir,BruceElm, and Joyce Spruce et al Ptr FIR* Estat e: FrankW hiteEstate WHIT Estate of SheilaB lueBLUE Trusts and Fiduciaries: D aisy Corporation Employee Benefit Trust DAIS Trust FBO The C herryblossom Society CHER June 9, 200810922008–23 I.R.B. Record Name: Payee “B” Record (Continued) Field Position Field Title Length Description and Remarks Name NameControl Exempt Organizations: L aborer’s Union, AFL-CIOLABO S t.Bernard’s Methodist Church Bldg. Fund STBE *Name Controls of less than four significant characters must be left-justified and blank-filled. **For Hispanic names, when two last names are shown for an individual, derive the name control from the first last name. 11Type of TIN1This field is used to identify the Taxpayer Identification Number (TIN) in posi tions 12–20 as either an Employer Identification Num- ber (EIN), a S ocial Security Number (SSN), an Individual Taxpayer Identificat ion Number (ITIN) or an Adoption Taxpayer Identification Number (ATI N). Enter the appropriate code from the following table: CodeTypeofTINTypeofAccount 1EINA business, organization, some sole proprietors, or other entity 2SSNAn individual, including some sole proprietors 2ITINAn individual required to have a taxpayer identification number, but who is not eligible to obtain an SSN 2ATINAn adopted individual prior to the assignment of a social security number BlankN/AIf the type of TIN is not deter- minable, enter a blank 12–20Payee’s Taxpayer Identification Number (TIN) 9 Required .Enter the nine-digit Taxpayer Identification Number of the payee (SSN, ITIN, ATIN, or EIN). If an identification number has been a pplied for but not received, enter blanks.Do not enter hyphens o r alpha characters.All zeros, ones, twos, etc., will have the effe ct of an incorrect TIN. If the TIN is not available, enter blanks. Note: If you are required to report payments made through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099, see the2008 General Instructions for Forms 1099, 1098, 5498 and W-2Gfor reporting requirements. 2008–23 I.R.B.1093June 9, 2008 Record Name: Payee “B” Record (Continued) Field Position Field Title Length Description and Remarks 21–40Payer’s Account Number For Payee 20 Required if submitting more than one information return of the same type for the same payee.Enter any number assigned by the payer to the payee that can be used by the IRS to distinguish between information returns. This number must be unique for each informa- tion return of the same type for the same payee. If a payee has more than one reporting of the same document type, it is vital that each re- porting have a unique account number. For example, if a payer has 3 separate pension distributionsfor the same payee and 3 separate Forms 1099-R are filed, 3 separate unique account numbers are re- quired. A payee’s account number may be given a unique sequencing number, such as 01, 02 or A, B, etc., to differentiate each reported in- formation return. Do not use the payee’s TIN since this will not make each record unique. This information is critical when corrections are filed. This number will be provided with the backup withholding no- tification and may be helpful in identifying the branch or subsidiary reporting the transaction. The account number can be any combi- nation of alpha, numeric or special characters. If fewer than twenty characters are used, filers may either left or right-justify, filling the remaining positions with blanks. 41–44Payer’s Office Code 4Enter office code of payer; otherwise, enter blanks. For payers with multiple locations, this field may be used to identify the location of the office submitting the information return. This code will also ap- pear on backup withholding notices. 45–54 Blank10Enter blanks. Payment Amount Fields (Must be numeric) Required. Filers should allow for all payment amounts. For those not used, enter zeros.Each payment field must contain 12 numeric characters. Each payment amount must contain U.S. dollars and cents. The right-most two positions represent cents in the pay- ment amount fields.Do not enter dollar signs, commas, decimal points, or negative payments, except those items that reflect a loss on Form 1099-B or 1099-Q.Positive and negative amounts are in- dicated by placing a “+” (plus) or “-” (minus) sign in the left-most position of the payment amount field. A negative over punch in the unit’s position may be used, instead of a minus sign, to indicate a negative amount. If a plus sign, minus sign, or negative over punch is not used, the number is assumed to be positive. Negative over punch cannot be used in PC created files. Payment amounts must be right-justified and unused positions must be zero filled. 55–66 Payment Amount 1* 12The amount reported in this field represents payments for Amount Code 1 in the “A” Record. 67–78Payment Amount 2* 12The amount reported in this field represents payments for Amount Code 2 in the “A” Record. 79–90Payment Amount 3* 12The amount reported in this field represents payments for Amount Code 3 in the “A” Record. 91–102Payment Amount 4* 12The amount reported in this field represents payments for Amount Code 4 in the “A” Record. 103–114 Payment Amount 5* 12The amount reported in this field represents payments for Amount Code 5 in the “A” Record. 115–126 Payment Amount 6* 12The amount reported in this field represents payments for Amount Code 6 in the “A” Record. June 9, 200810942008–23 I.R.B. Record Name: Payee “B” Record (Continued) Field Position Field Title Length Description and Remarks 127–138 Payment Amount 7* 12The amount reported in this field represents payments for Amount Code 7 in the “A” Record. 139–150 Payment Amount 8* 12The amount reported in this field represents payments for Amount Code 8 in the “A” Record. 151–162 Payment Amount 9* 12The amount reported in this field represents payments for Amount Code 9 in the “A” Record. 163–174 Payment Amount A* 12The amount reported in this field represents payments for Amount Code A in the “A” Record. 175–186 Payment Amount B* 12The amount reported in this field represents payments for Amount Code B in the “A” Record. 187–198 Payment Amount C* 12The amount reported in this field represents payments for Amount Code C in the “A” Record. 199–210 Payment Amount D* 12The amount reported in this field represents payments for Amount Code D in the “A” Record. 211–222 Payment Amount E* 12The amount reported in this field represents payments for Amount Code E in the “A” Record. *If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this Revenue Procedure must be followed for electronic filing. 223–246 Reserved24Enter blanks. 247Foreign Country Indicator 1 If the address of the payee is in a foreign country, enter a “1” (one) in this field; otherwise, enter blank. When filers use this in- dicator, they may use a free format for the payee city, state, and ZIP Code. Enter information in the following order: city, province or state, postal code, and the name of the country. Address information must not appear in the First or Second Payee Name Line. 248–287 First Payee Name Line 40 Required.Enter the name of the payee (preferably surname first) whose Taxpayer Identification Number (TIN) was provided in posi- tions 12–20 of the Payee “B” Record. Left-justify and fill unused positions with blanks. If more space is required for the name, use the Second Payee Name Line Field. If reporting information for a sole proprietor, the individual’s name must always be present on the First Payee Name Line. The use of the business name is optional in the Second Payee Name Line Field. End the First Payee Name Line with a full word. Use appropriate spacing. Extraneous words, titles, and special characters (i.e., Mr., Mrs., Dr., period, apostrophe) should be removed from the Payee Name Lines. A dash (-) and an ampersand (&) are the only acceptable special characters for First and Second PayeeNameLines. Note: If you are required to report payments made through Foreign Intermediaries and Foreign Flow-Through Entities on Form 1099, see the2008 General Instruction for Forms 1099, 1098, 5498, and W-2Gfor reporting requirements. 2008–23 I.R.B.1095June 9, 2008 Record Name: Payee “B” Record (Continued) Field Position Field Title Length Description and Remarks 288–327 Second Payee Name Line 40If there are multiple payees (e.g.,partners, joint owners, or spouses), use this field for those names not associated with the TIN provided in positions 12–20 of the “B” Record, or if not enough space was pro- vided in the First Payee Name Line, continue the name in this field. Left-justify information and fill unused positions with blanks.Do not enter address information.It is important that filers provide as much payee information to IRS/ECC-MTB as possible to identify the payee associated with the TIN. Left-justify and fill unused positions with blanks.SeeNoteaboveinFirstPayeeNameLine. 328–367 Blank40Enter blanks. 368–407 Payee Mailing Address 40 Required.Enter mailing address of payee. Street address should include number, street, apartment or suite number, or PO Box if mail is not delivered to street address. This fieldmust notcontain any data other than the payee’s mailing address. 408–447 Blank40Enter blanks. 448–487 Payee 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 State2 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. 12. 490–498 Payee ZIP Code 9 Required.Enter the valid ZIP Code (nine or five-digit) assigned by the U.S. Postal Service. If only the first five-digits are known, left-justify information and fill the unused positions with blanks. For foreign countries, alpha characters are acceptable as long as the filer has entered a “1” (one) in the Foreign Country Indicator, located in position 247 of the “B” Record. 499Blank1Enter blank. 500–507 Record Sequence Number 8 Required.Enter the number of the record as it appears within your file. The record sequence number for the “T” record will always be “1” (one), since it is the first record on your file and you can have only one “T” record in a file. Each record, thereafter, must be in- cremented by one in ascending numerical sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” record sequence numberwould appear as “00000001” in the field, the first “A” record would be “00000002”, the first “B” record, “00000003”, the second “B” record, “00000004” and so on until you reach the final record of the file, the “F” record. 508–543 Blank36Enter blanks. June 9, 200810962008–23 I.R.B. Standard Payee “B” Record Format For All Types of Returns, Positions 1–543 Record Type Payment Year Corrected Return Indicator Name Control Type of TIN Payee’s TIN Payer’s Account Number For Payee 1 2–5 67–101112–2021–40 Payer’s Office Code BlankPayment Amount 1 Payment Amount 2 Payment Amount 3 Payment Amount 4 Payment Amount 5 41–44 45–5455–66 67–7879–9091–102103–114 Payment Amount 6 Payment Amount 7 Payment Amount 8 Payment Amount 9 Payment Amount A Payment Amount B 115–126 127–138 139–150151–162 163–174 175–186 Payment Amount C Payment Amount D Payment Amount E ReservedForeign Country Indicator First Payee Name Line Second Payee Name Line Blank 187–198199–210211–222223–246247248–287288–327328–367 Payee Mailing Address BlankPayee City Payee State Payee ZIP Code BlankRecord Sequence Number Blank 368–407408–447448–487488–489490–498499 500–507508–543 The following sections define the field positions for the different types of returns in the Payee “B” Record (positions 544–750): (1) Form 1098 (2) Form 1098-C (3) Form 1098-E (4) Form 1098-T (5) Form 1099-A (6) Form 1099-B (7) Form 1099-C (8) Form 1099-CAP (9) Form 1099-DIV* (10) Form 1099-G* (11) Form 1099-H (12) Form 1099-INT* (13) Form 1099-LTC (14) Form 1099-MISC* (15) Form 1099-OID* (16) Form 1099-PATR* (17) Form 1099-Q (18) Form 1099-R* (19) Form 1099-S 2008–23 I.R.B.1097June 9, 2008 (20) Form 1099-SA (21) Form 5498* (22) Form 5498-ESA (23) Form 5498-SA (24) Form W-2G * These forms may be filed through the Combined Federal/State Filing Program. IRS/ECC-MTB will forward these records to participating states for filers who have been approved for theprogram. See Part A, Sec. 10, for information about the program, including specific codesfor the record layouts. (1) Payee “B” Record — Record LayoutPositions 544–750 for Form 1098 Field Position Field Title Length Description and Remarks 544–662 Blank119Enter blanks. 663–722 Special Data Entries60This portion of the “B” Record may be used to record information for state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record LayoutPositions 544–750 for Form 1098 BlankSpecial Data Entries BlankBlank or CR/LF 544–662 663–722723–748 749–750 (2) Payee “B” Record — Record Layout Positions 544–750 for Form 1098-C Field Position Field Title Length Description and Remarks 544–545 Blank2Enter blanks. 546 Transaction Indicator1Enter “1” (one) ifthe amount reported in Payment Amount Field 4 is an arm’s length transaction to an unrelated party. Otherwise, enter a blank. 547 Transfer After Improvements Indicator 1Enter “1” (one) if the vehicle will not be transferred for money, other property, or services before completion of material improvements or significant intervening use. Otherwise, enter a blank. 548 Transfer Below Fair Market Value Indicator 1Enter “1” (one) if the vehicle is transferred to a needy individual for significantly below fair market value. Otherwise, enter a blank. 549–587 Make, Model, Year39Enter the make, model and year of vehicle. Left-justify and fill un- used positions with blanks. 588–612 Vehicle or Other Identification Number 25 Enter the vehicle or other identification number of the donated vehi- cle. Left-justify and fill unused positions with blanks. 613–651 Vehicle Description39Enter a description of material improvements or significant interven- ing use and duration of use. Left-justify and fill unused positions with blanks. June 9, 200810982008–23 I.R.B. (2) Payee “B” Record — Record Layout Positions 544–750 for Form 1098-C (Continued) Field Position Field Title Length Description and Remarks 652–659 Date of Contribution8Enter the date the contribution was made to an organization, in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105). Do not enter hyphens or slashes. 660Donee Indicator1Enter the appropriate indicator from the following table to report if the donee of the vehicle providesgoods or services in exchange for the vehicle. Indicator Usage 1Donee provided goods or services 2Donee did not provide goods or services 661Intangible Religious Benefits Indicator 1Enter a “1” (one) if only intangible religious benefits were provided in exchange for the vehicle;otherwise, leave blank. 662 Deduction $500 or Less Indicator 1Enter a “1” (one) if under law donor cannot claim a deduction of more than $500 for the vehicle; otherwise, leave blank. 663–722 Special Data Entries60This portion of the “B” Record may be used to record information for state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for the filing requirements. If this field is not utilized, enter blanks. 723–730 Date of Sale8 Enter the date of sale, in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes. 731–748 Goods and Services18Enter adescription of any goods and services received for the vehicle; otherwise, leave blank. Left-justify and fill unused positions with blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1098-C BlankTransaction Indicator Transfer After Improvements Indicator Transfer Below Fair Market Value Indicator Make, Model, Year Vehicle or Other Identification Number Vehicle Description 544–545546547548549–587588–612613–651 Date of Contribution Donee Indicator Intangible Religious Benefits Indicator Deduction $500 or Less Indicator Special Data Entries Date of Sale Goods and Services Blank or CR/LF 652–659 660661662663–722723–730731–748 749–750 (3) Payee “B” Record — Record Layout Positions 544–750 for Form 1098-E Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 2008–23 I.R.B.1099June 9, 2008 (3) Payee “B” Record — Record Layout Positions 544–750 for Form 1098-E (Continued) Field Position Field Title Length Description and Remarks 547 Origination Fees/Capitalized Interest Indicator 1Enter “1” (one) if the amount reported in Payment Amount Field 1 includes loan origination fees and/or capitalized interest. Otherwise, enter a blank. 548–662 Blank 115 Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for the filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1098-E BlankOrigination Fees/Capitalized Interest Indicator BlankSpecial Data Entries BlankBlank or CR/LF 544–546547548–662 663–722723–748 749–750 (4) Payee “B” Record — Record Layout Positions 544–750 for Form 1098-T Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Half-time Student Indicator 1Enter “1” (one) if the student was at least a half-time student during any academic period that began in 2008. Otherwise, enter a blank. 548 Graduate Student Indicator 1Enter “1” (one) if the student is enrolled exclusively in a graduate level program. Otherwise, enter a blank. 549 Academic Period Indicator 1Enter “1” (one) if the amount in Payment Amount Field 1 or Payment Amount Field 2 includes amounts for an academic period beginning January through March2009. Otherwise, enter a blank. 550 Method of Reporting 2007 Amounts Indicator 1 Required.Enter “1” (one) if the method of reporting has changed from the previous year. Otherwise, enter a blank. 551–662 Blank112Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for the filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. June 9, 200811002008–23 I.R.B. Payee “B” Record — Record Layout Positions 544–750 for Form 1098-T BlankHalf-time Student Indicator Graduate Student Indicator Academic Period Indicator Method of Reporting 2007 Amounts Indicator 544–546547548549550 BlankSpecial Data EntriesBlankBlank or CR/LF 551–662 663–722723–748 749–750 (5) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-A Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Personal Liability Indicator 1Enter the appropriate indicator from the table below: Indicator Usage 1Borrower was personally liable for repayment of the debt. BlankBorrower was not personally liable for repayment of the debt. 548–555 Date of Lender’s Acquisition or Knowledge of Abandonment 8Enter the acquisition date of thesecured property or the date the lender first knew or had reason to know the property was abandoned, in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes. 556–594 Description of Property 39Enter a brief description of the property. For real property, enter the address, or, if the address does not sufficiently identify the property, enter the section, lot and block. For personal property, enter the type, make and model (e.g., Car-1999 Buick Regal or Office Equipment). Enter “CCC” for crops forfeited on Commodity Credit Corporation loans. If fewer than 39 positions are required, left-justify information and fill unused positions with blanks. 595–662 Blank68Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for the filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks, or carriage return/line feed (CR/LF) characters. 2008–23 I.R.B.1101June 9, 2008 Payee “B” Record — Record Layout Positions 544–750 for Form 1099-A BlankPersonal Liability Indicator Date of Lender’s Acquisition or Knowledge of Abandonment Description of Property Blank 544–546547548–555556–594595–662 Special Data Entries BlankBlank or CR/LF 663–722723–748 749–750 (6) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-B Field Position Field Title Length Description and Remarks 544 Second TIN Notice (Optional) 1Enter “2” (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank. 545–546 Blank2Enter blanks. 547 Gross Proceeds Indicator 1Enter the appropriate indicator from the following table, to identify the amount reported in Amount Code 2; otherwise, enter a blank. IndicatorUsage 1Gross proceeds 2Gross proceeds less commissions and options premiums 548–555 Date of Sale or Exchange 8For broker transactions, enter the trade date of the transaction. For barter exchanges, enter the date when cash, property, a credit, or scrip is actually or constructively received in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105). Enter blanks if this is an aggregate transaction.Do not enter hyphens or slashes. 556–568 CUSIP Number13For broker transactions only, enter the CUSIP (Committee on Uniform Security Identification Procedures)numberoftheitem reported for Amount Code 2 (stocks, bonds, etc.). Enter blanks if this is an aggregate transaction.Enter“0s”(zeros)ifthenumberis not available. Right-justify information and fill unused positions with blanks. 569–607 Description39For 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. If fewer than 39 characters are required, left-justify information and fill unused positions with blanks. 608–615 Number of Shares Exchanged 8Enter the number of shares of the corporation’s stock which were exchanged in the transaction. Report whole number only. Right-justify information and fill unused positions with zeros. June 9, 200811022008–23 I.R.B. (6) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-B (Continued) Field Position Field Title Length Description and Remarks 616–625 Classes of Stock Exchanged 10Enter the class of stock that was exchanged. Left-justify the information and fill unused positions with blanks. 626Recipient Indicator 1Enter a “1” (one) if recipient is unable to claim a loss on their tax return. Otherwise, enter a blank. 627–662 Blank36Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record may be used to record information for state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.(See Note.) 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries field. 747–748 Blank2Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Note: Report the Corporation’s Name, Address, City, State, and ZIP in the Special Data Entry field. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-B Second TIN Notice (Optional) BlankGross Proceeds Indicator Date of Sale or Exchange CUSIP Number DescriptionNumber of Shares Exchanged 544545–546547548–555556–568569–607608–615 Classes of Stock Exchanged Recipient Indicator BlankSpecial Data Entries State Income Tax Withheld Local Income Tax Withheld BlankBlank or CR/LF 616–625 626627–662663–722723–734 735–746 747–748 749–750 (7) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-C Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 2008–23 I.R.B.1103June 9, 2008 (7) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-C (Continued) Field Position Field Title Length Description and Remarks 547 Bankruptcy Indicator 1Enter “1” (one) to indicate the debt was discharged in bankruptcy, if known. Otherwise, enter a blank. 548–555 Date Canceled8Enter the date the debt was canceled in the format of YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes. 556–594 Debt Description 39Enter a description of the origin of the debt, such as student loan, mortgage, or credit card expenditure. If a combined Form 1099-C and 1099-A is being filed, also enter a description of the property. 595–662 Blank68Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-C BlankBankruptcy Indicator Date Canceled Debt Description BlankSpecial Data Entries 544–546547548–555556–594595–662 663–722 BlankBlank or CR/LF 723–748 749–750 (8) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-CAP Field Position Field Title Length Description and Remarks 544–547 Blank4Enter blanks. 548–555 Date of Sale or Exchange 8Enter the date the stock was exchanged for cash, stock in the successor corporation, or otherproperty received in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes. 556–607 Blank 52 Enter blanks. 608–615 Number of Shares Exchanged 8Enter the number of shares of the corporation’s stock which were exchanged in the transaction. Report whole number only. Right-justify information and fill unused positions with zeros. 616–625 Classes of Stock Exchanged 10Enter the class of stock that was exchanged. Left-justify the information and fill unused positions with blanks. 626–662 Blank37Enter blanks. June 9, 200811042008–23 I.R.B. (8) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-CAP (Continued) Field Position Field Title Length Description and Remarks 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-CAP BlankDate of Sale or Exchange BlankNumber of Shares Exchanged Classes of Stock Exchanged 544–547548–555556–607608–615616–625 BlankSpecial Data EntriesBlankBlank or CR/LF 626–662663–722723–748 749–750 (9) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-DIV Field Position Field Title Length Description and Remarks 544 Second TIN Notice (Optional) 1Enter “2” (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank. 545–546 Blank2Enter blanks. 547–586 Foreign Country or U.S. Possession 40Enter the name of the foreign country or U.S. possession to which the withheld foreign tax (Amount Code C) applies. Otherwise, enter blanks. 587–662 Blank76Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 2008–23 I.R.B.1105June 9, 2008 (9) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-DIV (Continued) Field Position Field Title Length Description and Remarks 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-DIV Second TIN Notice (Optional) BlankForeign Country or U.S. Possession BlankSpecial Data Entries 544545–546547–586587–662 663–722 State Income Tax Withheld Local Income Tax Withheld Combined Federal/State Code Blank or CR/LF 723–734 735–746 747–748 749–750 (10) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-G Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Trade or Business Indicator 1Enter “1” (one) to indicate the state or local income tax refund, credit, or offset (Amount Code 2) is attributable to income tax that applies exclusively to income from a trade or business. IndicatorUsage 1Income tax refund applies exclusively to a trade or business. BlankIncome tax refundis a general tax refund. 548–551 Tax Year of Refund 4Enter the tax year for which the refund, credit, or offset (Amount Code 2) was issued.The tax year must reflect the tax year for which the payment was made, not the tax year of Form 1099-G. The tax year must be in the four-position format of YYYY (e.g., 2008).The valid range of years for the refund is 1998 through 2007. Note: This data is not considered prior year data since it is required to be reported in the current tax year. Do NOT enter “P” in field position 6 of theTransmitter “T” Record. 552–662 Blank111Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. You may enter your routing and transit number (RTN) here. If this field is not utilized, enter blanks. June 9, 200811062008–23 I.R.B. (10) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-G (Continued) Field Position Field Title Length Description and Remarks 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-G BlankTrade or Business Indicator Tax Year of Refund BlankSpecial Data Entries State Income Tax Withheld 544–546547548–551552–662 663–722723–734 Local Income Tax Withheld Combined Federal/State Code Blank or CR/LF 735–746 747–748 749–750 (11) Payee “B” Re cord — Record Layout Positions 544–750 for Form 1099-H Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547–548 Number of Months Eligible 2 Required.Enter the total number of months recipient is eligible for health insuran ce advance payments. Right-justify and blank fill any remaining p osition. 549–662 Blank114Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. 2008–23 I.R.B.1107June 9, 2008 Payee “B” Record — Record Layout Positions 544–750 for Form 1099-H BlankNumber of Months Eligible BlankSpecial Data Entries BlankBlank or CR/LF 544–546547–548549–662 663–722723–748 749–750 (12) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-INT Field Position Field Title Length Description and Remarks 544 Second TIN Notice (Optional) 1Enter “2” (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank. 545–546 Blank2Enter blanks. 547–586 Foreign Country or U.S. Possession 40Enter the name of the foreign country or U.S. possession to which the withheld foreign tax (Amount Code 6) applies. Otherwise, enter blanks. 587–662 Blank76Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. You may enter your routing and transit number (RTN) here. If this field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-INT Second TIN Notice (Optional) BlankForeign Country or U.S. Possession BlankSpecial Data Entries State Income Tax Withheld 544545–546547–586587–662 663–722723–734 June 9, 200811082008–23 I.R.B. Local Income Tax Withheld Combined Federal/State Code Blank or CR/LF 735–746 747–748 749–750 (13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-LTC Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Type of Payment Indicator 1Enter the appropriate indicator from the following table; otherwise, enter blanks. IndicatorUsage 1Per diem 2Reimbursed amount 548–556 Social Security Number of Insured 9 Required.Enter the Social Security Number of the insured. 557–596 Name of Insured 40 Required.Enter the name of the insured. 597–636 Address of Insured 40 Required.Enter the address of the insured. Street address should include number, street, apartment or suite number (or PO Box if mail is not delivered to street address). Left-justify information and fill unused positions with blanks. This fieldmust notcontain any data other than payee’s address. ForU.S.addresses,the payee city, state, and ZIP Code must be reported as a 40, 2, and 9-position field, respectively.Filers must adhere to the correct format for the insured’s city, state, and ZIP Code. For foreign addresses,filers may use the insured’s city, state, and ZIP Codeas a continuous 51-positionfield. 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). 637–676 City of Insured40 Required.Enter the city, town, or post office. Left-justify information and fill the unused positions with blanks. Enter APO or FPO, if applicable. Do not enter state and ZIP Code information in this field. 677–678 State of Insured2 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. 12. 679–687 ZIP Code of Insured 9 Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal Service. If only the first five-digits are known, left-justify information and fill the unused positions with blanks. For foreign countries, alpha characters areacceptable as long as the filer has entered a “1” (one) in the Foreign Country Indicator, located in position 247 of the “B” Record. 2008–23 I.R.B.1109June 9, 2008 (13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-LTC (Continued) Field Position Field Title Length Description and Remarks 688Status of Illness Indicator (Optional) 1Enter the appropriate code from the table below to indicate the status of the illness of the insured; otherwise, enter blank. IndicatorUsage 1Chronically ill 2Terminally ill 689–696 Date Certified (Optional) 8Enter the latest date of a doctor’scertification of the status of the insured’s illness. The format of the date is YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes. 697Qualified Contract Indicator (Optional) 1Enter a “1” (one) if benefits werefrom a qualified long-term care insurance contract; otherwise, enter a blank. 698–722 Blank 25 Enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. 747–748 Blank2Enter blanks. 749–750 Blank2Enter blank or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-LTC BlankType of Payment Indicator SSN of Insured Name of Insured Address of Insured City of Insured State of Insured ZIP Code of Insured 544–546547548–556557–596597–636 637–676677–678679–687 Status of Illness Indicator (Optional) Date Certified (Optional) Qualified Contract Indicator (Optional) BlankState Income Tax Withheld Local Income Tax Withheld BlankBlank or CR/LF 688689–696697698–722723–734 735–746 747–748 749–750 June 9, 200811102008–23 I.R.B. (14) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-MISC Field Position Field Title Length Description and Remarks 544 Second TIN Notice (Optional) 1Enter “2” (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank. 545–546 Blank2Enter blanks. 547 Direct Sales Indicator (See Note.) 1 Enter a “1” (one) to indicate sales of $5,000 or more of consumer products to a person on a buy-sell, deposit-commission, or any other commission basis for resale anywhere other than in a permanent retail establishment. Otherwise, enter a blank. Note: If reporting a direct sales indicatoronly, use Type of Return “A” in Field Position 27, and Amount Code 1 in Field Position 28 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros. 548–662 Blank 115 Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not used, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-MISC Second TIN Notice (Optional) BlankDirect Sales Indicator BlankSpecial Data Entries State Income Tax Withheld Local Income Tax Withheld 544545–546547548–662 663–722723–734 735–746 Combined Federal/State Code Blank or CR/LF 747–748 749–750 2008–23 I.R.B.1111June 9, 2008 (15) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-OID Field Position Field Title Length Description and Remarks 544 Second TIN Notice (Optional) 1Enter “2” (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank. 545–546 Blank2Enter blanks. 547–585 Description39 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 12/2008). Show the name of the issuer if other than the payer. If fewer than 39 characters are required, left-justify information and fill unused positions with blanks. 586–662 Blank77Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table l. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-OID Second TIN Notice (Optional) BlankDescriptionBlankSpecial Data Entries State Income Tax Withheld 544545–546547–585586–662 663–722723–734 Local Income Tax Withheld Combined Federal/State Code Blank or CR/LF 735–746 747–748 749–750 June 9, 200811122008–23 I.R.B. (16) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-PATR Field Position Field Title Length Description and Remarks 544 Second TIN Notice (Optional) 1Enter “2” (two) to indicate notification by IRS twice within three calendar years that the payee provided an incorrect name and/or TIN combination; otherwise, enter a blank. 545–662 Blank118Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for 1099-PATR Second TIN Notice (Optional) BlankSpecial Data Entries State Income Tax Withheld Local Income Tax Withheld Combined Federal/State Code Blank or CR/LF 544545–662 663–722723–734 735–746 747–748 749–750 (17) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-Q Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Trustee to Trustee Transfer Indicator 1 Required.Enter a “1” (one) if reporting atrustee to trustee transfer; otherwise, enter a blank. 2008–23 I.R.B.1113June 9, 2008 (17) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-Q (Continued) Field Position Field Title Length Description and Remarks 548 Type of Tuition Payment 1 Required.Enter the appropriate code from the table below to indicate the type of tuition payment; otherwise, enter a blank. IndicatorUsage 1Private program payment 2State program payment 3Coverdell ESA contribution 549 Designated Beneficiary 1 Required.Enter a “1” (one) if the recipient is not the designated beneficiary; otherwise, enter a blank. 550–662 Blank113Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-Q BlankTrustee to Trustee Transfer Indicator Type of Tuition Payment Designated Beneficiary BlankSpecial Data Entries BlankBlank or CR/LF 544–546547548549550–662 663–722723–748 749–750 (18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-R Field Position Field Title Length Description and Remarks 544 Blank1Enter a blank. 545–546 Distribution Code (For a detailed explanation of distribution codes, see the2008 Instructions for Forms 1099-R and 5498.) See chart at the end of this record layout for a diagram of valid combinations of Distribution Codes. 2 Required.Enter at least one distribution code from the table below. More than one code may apply. If only one code is necessary, it must be entered in position 545 and position 546 will be blank. When using Code P for an IRA distribution under section 408(d)(4) of the Internal Revenue Code, the filer may also enter Code 1, 2, 4, B, or J if applicable. Only three numeric combinations are acceptable, Codes 8 and 1, 8 and 2, and 8 and 4, on one return. These three combinations can be used only if both codes apply to the distribution being reported. If more than one numeric code is applicable to different parts of a distribution, report two separate “B”Records.DistributionCodes3,5,6,9,E,F,N,Q,R,SandT cannot be used with any other codes. Distribution Code G may be used with Distribution Code 4 only if applicable. June 9, 200811142008–23 I.R.B. (18) 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) taxable in2008 9Cost of current life insurance protection (premiums paid by a trustee or custodian for current insurance protection) AMay be eligible for 10-year tax option BDesignated Roth account distribution D*Excess contributions plus earnings/excess deferrals taxable in2006 E Excess annual additions under section 415/certain excess amounts under section 403(b) plans FCharitable gift annuity GDirect rollover and rollover contribution HDirect rollover of distribution from a designated Roth account to a Roth IRA JEarly distribution from a Roth IRA. (This code may be used with Code 8 or P.) LLoans treated as deemed distributions under section 72(p) NRecharacterized IRA contribution made for2008 P*Excess contributions plus earnings/excess deferrals taxable in2007 QQualified distribution from a Roth IRA. (Distribution from a Roth IRA when the 5-year holding period has been met, and the recipient has reached 59 1 /2, has died, or is disabled.) RRecharacterized IRA contribution made for2007 (See Note.) S*EarlydistributionfromaSIMPLEIRAinfirst2 years, no known exception 2008–23 I.R.B.1115June 9, 2008 (18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-R (Continued) Field Position Field Title Length Description and Remarks CodeCategory TRoth IRA distribution, exception applies because participant has reached 59 1 /2, died or is disabled, but it is unknown if the 5-year period has been met. *If reporting a traditional IRA, SEP, or SIMPLE distribution or a Roth conversion, use the IRA/SEP/SIMPLE Indicator of “1” (one) in position 548 of the Payee “B” Record. Note: The trustee of the first IRA must report the recharacterization as a distribution on Form 1099-R (and the original contribution and its character on Form 5498). 547 Taxable Amount Not Determined Indicator 1Enter “1” (one) only if the taxable amount of the payment entered for Payment Amount Field 1 (Gross distribution) of the “B” Record cannot be computed; otherwise, enter blank. (If Taxable Amount Not Determined Indicator is used, enter “0’s” [zeros] in Payment Amount Field 2 of the Payee “B” Record.) Please make every effort to compute the taxable amount. 548 IRA/SEP/SIMPLE Indicator 1Enter “1” (one) for a traditional IRA, SEP, or SIMPLE distribution or 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 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 the2008 Instructions for Forms 1099-R and 5498forexceptions(Box2ainstructions). 549 Total Distribution Indicator (See Note.) 1Enter a “1” (one) only if the payment shown for Distribution Amount Code 1 is a total distribution that closed out the account; otherwise, enter a blank. Note: A total distribution is one or more distributions within one tax year in which the entire balance of the account is distributed. Any distribution that does not meet this definition is not a total distribution. 550–551 Percentage of Total Distribution 2Use this field when reporting a total distribution to more than one person, such as when a participant is deceased and a payer distributes to two or more beneficiaries. Therefore, if the percentage is 100, leave this field blank. If the percentage is a fraction, round off to the nearest whole number (for example, 10.4 percent will be 10 percent; 10.5 percent will be 11 percent). Enter the percentage received by the person whose TIN is included in positions 12–20 of the “B” Record. This field must be right-justified, and unused positions must be zero-filled. If not applicable, enter blanks. Filers are not required to enter this information for any IRA distribution or for direct rollovers. 552–555 First Year of Designated Roth Contribution 4Enter the first year a designated Roth contribution was made in YYYY format. If the date is unavailable, enter blanks. 556–662 Blank107Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. June 9, 200811162008–23 I.R.B. (18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-R (Continued) Field Position Field Title Length Description and Remarks 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filer. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. FORM 1099-R DISTRIBUTION CODE CHART 2008 2008–23 I.R.B.1117June 9, 2008 Payee “B” Record — Record Layout Positions 544–750 for Form 1099-R BlankDistribution Code Taxable Amount Not Determined Indicator IRA/SEP/SIMPLE Indicator Total Distribution Indicator Percentage of Total Distribution 544545–546547548549550–551 First Year of Designated Roth Contribution BlankSpecial Data Entries State Income Tax Withheld Local Income Tax Withheld Combined Federal/State Code Blank or CR/LF 552–555556–662 663–722723–734 735–746 747–748 749–750 (19) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-S Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Property or Services Indicator 1 Required.Enter “1” (one) if the transferor received or will receive property (other than cash and consideration treated as cash in computing gross proceeds) or services as part of the consideration for the property transferred. Otherwise, enter a blank. 548–555 Date of Closing8 Required.Enter the closing date in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes. 556–594 Address or Legal Description 39 Required.Enter the address of the property transferred (including city, state, and ZIP Code). If the address does not sufficiently identify the property, also enter alegal description, such as section, lot, and block. For timber royalties, enter “TIMBER.” If fewer than 39 positions are required, left-justify information and fill unused positions with blanks. 595–662 Blank68Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Blank2Enter blanks. June 9, 200811182008–23 I.R.B. (19) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-S (Continued) Field Position Field Title Length Description and Remarks 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-S BlankProperty or Services Indicator Date of Closing Address or Legal Description BlankSpecial Data Entries 544–546547548–555556–594595–662 663–722 State Income Tax Withheld Local Income Tax Withheld BlankBlank or CR/LF 723–734 735–746 747–748 749–750 (20) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-SA Field Position Field Title Length Description and Remarks 544 Blank1Enter a blank. 545 Distribution Code 1 Required.Enter the applicable code to indicate the type of payment. CodeCategory 1Normal distribution 2Excess contribution 3Disability 4Death distribution otherthan code 6 (This includes distributions to a spouse, nonspouse, or estate beneficiary in the year of death and to an estate after the year of death.) 5 Prohibited transaction 6 Death distributionafteryearofdeathto a nonspouse beneficiary. (Do not use for distribution to an estate.) 546 Blank1Enter a blank. 547 Medicare Advantage MSA Indicator 1Enter “1” (one) if distributions are from a Medicare Advantage MSA. Otherwise, enter a blank. 548 HSA Indicator1Enter “1” (one) if distributions are from a HSA.Otherwise, enter a blank. 549 Archer MSA Indicator 1Enter “1” (one) if distributions are from an Archer MSA. Otherwise, enter a blank. 550–662 Blank113Enter blanks. 2008–23 I.R.B.1119June 9, 2008 (20) Payee “B” Record — Record Layout Positions 544–750 for Form 1099-SA (Continued) Field Position Field Title Length Description and Remarks 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting statetax withheld, this field may be used as a continuation of the Special Data Entries Field. 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries Field. 747–748 Blank2Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 1099-SA BlankDistribution Code BlankMedicare Advantage MSA Indicator HSA Indicator Archer MSA Indicator BlankSpecial Data Entries 544545546547548549550–662 663–722 State Income Tax Withheld Local Income Tax Withheld BlankBlank or CR/LF 723–734 735–746 747–748 749–750 (21) Payee “B” Record — Record Layout Positions 544–750 for Form 5498 Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547IRAIndicator (Individual Retirement Account) 1 Required, if applicable.Enter “1” (one) if reporting a Rollover (Amount Code 2) or Fair Market Value (Amount Code 5) for an IRA. Otherwise, enter a blank. 548SEP Indicator (Simplified Employee Pension) 1 Required, if applicable.Enter “1” (one) if reporting Rollover (Amount Code 2) or Fair Market Value (Amount Code 5) for a SEP. Otherwise, enter a blank. June 9, 200811202008–23 I.R.B. (21) Payee “B” Record — Record Layout Positions 544–750 for Form 5498 (Continued) Field Position Field Title Length Description and Remarks 549SIMPLEIndicator (SavingsIncentive MatchPlan for Employees) 1 Required, if applicable.Enter “1” (one) if reporting a Rollover (Amount Code 2) or Fair Market Value (Amount Code 5) for a SIMPLE. Otherwise, enter a blank. 550Roth IRA Indicator 1 Required, if applicable.Enter “1” (one) if reporting a Rollover (Amount Code 2) or Fair Market Value (Amount Code 5) for a Roth IRA. Otherwise, enter a blank. 551 RMD Indicator1 Required.Enter “1” (one) if reporting RMD for 2009. Otherwise, enter a blank. 552–662 Blank111Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record may be used to record information for state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks.(See Note.) Note: For delayed contributions for U.S. Armed Forces, usethe Special Data Entry field to report the year for which the contribution was made, the amount of the contribution and one of the indicators as outlined in the current Instructions for Forms 1099-R and 5498. 723–746 Blank24Enter blanks. 747–748 Combined Federal/State Code 2If this payee record is to be forwardedtoastateagencyaspartof the Combined Federal/State Filing Program, enter the valid state code from Part A, Sec. 10, Table 1. For those payers or states not participating in this program, enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record LayoutPositions 544–750 for Form 5498 BlankIRA Indicator SEP Indicator SIMPLE Indicator Roth IRA Indicator RMD Indicator 544–546547548549550551 BlankSpecial Data Entries BlankCombined Federal/State Code Blank or CR/LF 552–662 663–722723–746747–748 749–750 (22) Payee “B” Record — Record Layout Positions 544–750 for Form 5498-ESA Field Position Field Title Length Description and Remarks 544–662 Blank119Enter blanks. 2008–23 I.R.B.1121June 9, 2008 (22) Payee “B” Record — Record Layout Positions 544–750 for Form 5498-ESA (Continued) Field Position Field Title Length Description and Remarks 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 5498-ESA BlankSpecial Data Entries BlankBlank or CR/LF 544–662 663–722723–748 749–750 (23) Payee “B” Record — Record Layout Positions 544–750 for Form 5498-SA Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Medicare Advantage MSA Indicator 1Enter “1” (one) for Medicare Advantage MSA. Otherwise, enter a blank. 548 HSA Indicator1Enter “1” (one) for HSA. Otherwise, enter a blank. 549 Archer MSA Indicator 1Enter “1” (one) for Archer MSA. Otherwise, enter a blank. 550–662 Blank113Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–748 Blank26Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form 5498-SA BlankMedicare Advantage MSA Indicator HSA Indicator Archer MSA Indicator BlankSpecial Data Entries BlankBlank or CR/LF 544–546547548549550–662 663–722723–748 749–750 June 9, 200811222008–23 I.R.B. (24) Payee “B” Record — Record Layout Positions 544–750 for Form W-2G Field Position Field Title Length Description and Remarks 544–546 Blank3Enter blanks. 547 Type of Wager Code 1 Required.Enter the applicable type of wager code from the table below. CodeCategory 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 5 Keno 6Bingo 7Slot machines 8Any other type of gambling winnings 548–555 Date Won8 Required.Enter the date of the winning transaction in the format YYYYMMDD (e.g., January 5, 2008, would be 20080105).Do not enter hyphens or slashes.This is not the date the money was paid, if paid after the date of the race (or game). 556–570 Transaction 15Required.For state-conducted lotteries, enter the ticket or other identifying number. For keno, bingo, and slot machines, enter the ticket or card number (and color, if applicable), machine serial number, or any other information that will help identify the winning transaction. For all others, enter blanks. 571–575 Race 5 If applicable, enter the race (or game) relating to the winning ticket; otherwise, enter blanks. 576–580 Cashier 5 If applicable, enter the initials or number of the cashier making the winning payment; otherwise, enter blanks. 581–585 Window 5 If applicable, enter the window number or location of the person paying the winning payment; otherwise, enter blanks. 586–600 First ID 15 For other than state lotteries, enter the first identification number of the person receiving the winnings; 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 Blank47Enter blanks. 663–722 Special Data Entries 60This portion of the “B” Record maybeusedtorecordinformationfor state or local government reporting or for the filer’s own purposes. Payers should contact the state or local revenue departments for filing requirements. If this field is not utilized, enter blanks. 723–734 State Income Tax Withheld 12State income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting state tax withheld, this field may be used as a continuation of the Special Data Entries field. 2008–23 I.R.B.1123June 9, 2008 (24) Payee “B” Record — Record Layout Positions 544–750 for Form W-2G (Continued) Field Position Field Title Length Description and Remarks 735–746 Local Income Tax Withheld 12Local income tax withheld is for the convenience of the filers. This information does not need to be reported to IRS. The payment amount must be right-justified and unused positions must be zero-filled. If not reporting local tax withheld, this field may be used as a continuation of the Special Data Entries field. 747–748 Blank2Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Payee “B” Record — Record Layout Positions 544–750 for Form W-2G BlankType of Wager Code Date Won TransactionRaceCashierWindowFirst ID 544–546547548–555556–570571–575576–580581–585586–600 Second IDBlankSpecial Data Entries State Income Tax Withheld Local Income Tax Withheld BlankBlank or CR/LF 601–615 616–662663–722723–734 735–746 747–748 749–750 Sec. 7. End of Payer “C” Record — General Field Descriptions and Record Layout .01The “C” Record consists of the total number of payees and the totals of the payment amount fields filed for each payer and/or particular type of return. The “C” Record must follow thelast “B” Record for each type of return for each payer. .02For each “A” Record and group of “B” Records on the file, there must be a corresponding “C” Record. .03The End of Payer “C” Record is a fixedlength of 750 positions. The control fields are each 18 positions in length. Record Name: End of Payer “C” Record Field Position Field Title Length Description and Remarks 1Record Type1 Required.Enter “C”. 2–9Number of Payees 8 Required.Enter the total number of “B” Records covered by the preceding “A” Record. Right-justify information and fill unused positions with zeros. 10–15 Blank6Enter blanks. June 9, 200811242008–23 I.R.B. Record Name: End of Payer “C” Record (Continued) Field Position Field Title Length Description and Remarks 16–33Control Total 118 34–51 Control Total 218 52–69 Control Total 318 70–87Control Total 418 88–105Control Total 5 18 106–123 Control Total 618 124–141 Control Total 718 142–159 Control Total 818 160–177 Control Total 918 178–195 Control Total A18 196–213 Control Total B18 214–231 Control Total C18 232–249 Control Total D18 250–267 Control Total E18 Required.Accumulate totals of any payment amount fields in the “B” Records into the appropriate control total fields of the “C” Record.Control totals must be right-justified and unused control total fields zero-filled.All control total fields are 18 positions in length. Each payment amount must contain U.S. dollars and cents. The right-most two positions represent cents in the payment amount fields.Do not enter dollar signs, commas, decimal points, or negative payments, except thoseitems that reflect a loss on Form 1099-B or 1099-Q.Positive and negative amounts are indicated by placing a “+” (plus) or “-” (minus) sign in the left-most position of the payment amount field. 268–499 Blank232Enter blanks. 500–507 Record Sequence Number 8 Required.Enter the number of the record as it appears within your file. The record sequencenumber for the “T” record will always be “1” (one), since it is the first record on your file and you can have only one “T” record in a file. Each record, thereafter, must be incremented by one inascending numerical sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” record sequence number would appear as “00000001” in the field, the first “A” record would be “00000002”, the first “B” record, “00000003”, the second “B” record, “00000004” and so on until you reach the final record of the file, the “F” record. 508–748 Blank241Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. End of Payer “C” Record — Record Layout Record Type Number of Payees BlankControl Total 1 Control Total 2 Control Total 3 Control Total 4 Control Total 5 Control Total 6 12–9 10–15 16–33 34–5152–69 70–87 88–105 106–123 Control Total 7 Control Total 8 Control Total 9 Control Total A Control Total B Control Total C Control Total D Control Total E Blank 124–141 142–159 160–177 178–195 196–213214–231232–249 250–267 268–499 2008–23 I.R.B.1125June 9, 2008 Record Sequence Number BlankBlank or CR/LF 500–507508–748749–750 Sec. 8. State Totals “K” Record — GeneralField Descriptions and Record Layout .01The State Totals “K” Record is a summary for a given payer and agiven state in the Combined Federal/State Filing Program, usedonlywhen state-reporting approval has been granted. .02The “K” Record will contain the total number of payees and thetotal of the payment amount fields filed by a given payer for a given state. The “K” Record(s) must be written after the “C” Record for the related “A”Record. A file format diagram is located at the end of Part C. .03The “K” Record is a fixed length of 750 positions. The control total fields are each18 positions in length. .04In developing the “K” Record, for example, if a payer usedAmount Codes 1, 3, and 6 in the “A” Record, the totals from the “B” Records coded for this statewould appear in Control Totals 1, 3, and 6 of the “K” Record. .05There must be a separate “K” Record foreach statebeing reported. .06Refer to Part A, Sec. 10, for the requirements and conditions thatmustbe met to file via this program. Record Name: State Totals “K” Record — RecordLayout 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”. 2–9Number of Payees 8 Required.Enter the total number of “B” Records being coded for this state. Right-justify information and fill unused positions with zeros. 10–15 Blank6Enter blanks. 16–33Control Total 118 34–51 Control Total 218 52–69 Control Total 318 70–87Control Total 418 88–105Control Total 5 18 106–123 Control Total 618 124–141 Control Total 718 142–159 Control Total 818 160–177 Control Total 918 178–195 Control Total A18 196–213 Control Total B18 214–231 Control Total C18 232–249 Control Total D18 250–267 Control Total E18 Required.Accumulate totals of any payment amount fields in the “B” Records for each state being reported into the appropriate control total fields of the appropriate “K” Record. Each payment amount must contain U.S. dollarsand cents. The right-most two positions represent cents in the payment amount fields.Control totals must be right-justified and unused control total fields zero-filled.All control total fields are 18 positions in length. 268–499 Blank232Enter blanks. June 9, 200811262008–23 I.R.B. Record Name: State Totals “K” Record — RecordLayout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, and 5498 (Continued) Field Position Field Title Length Description and Remarks 500–507 Record Sequence Number 8 Required.Enter the number of the record as it appears within your file. The record sequencenumber for the “T” record will always be “1” (one), since it is the first record on your file and you can have only one “T” record in a file. Each record, thereafter, must be incremented by one inascending numerical sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” record sequence number would appear as “00000001” in the field, the first “A” record would be “00000002”, the first “B” record, “00000003”, the second “B” record, “00000004” and so on until you reach the final record of the file, the “F” record. 508–706 Blank199Enter blanks. 707–724 State Income TaxWithheldTotal 18State income tax withheld total is for the convenience of the filers. Aggregate totals of thestate income tax withheld field in the Payee “B” Records; otherwise, enter blanks. 725–742 Local Income TaxWithheldTotal 18Local income tax withheld total is for the convenience of the filer. Aggregate totals of the local income tax withheld field in the Payee “B” Records; otherwise, enter blanks. 743–746 Blank4Enter blanks. 747–748 Combined Federal/State Code 2 Required.Enter the code assigned to the state which is to receive the information. (Refer to Part A, Sec. 10, Table l.) 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. State Totals “K” Record — Record Layout Forms 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, and 5498 Record Type Number of Payees BlankControl Total 1 Control Total 2 Control Total 3 Control Total 4 Control Total 5 Control Total 6 12–9 10–15 16–33 34–5152–69 70–87 88–105 106–123 Control Total 7 Control Total 8 Control Total 9 Control Total A Control Total B Control Total C Control Total D Control Total E Blank 124–141 142–159 160–177 178–195 196–213214–231232–249 250–267 268–499 Record Sequence Number BlankState Income Tax Withheld Total Local Income Tax Withheld Total BlankCombined Federal/State Code Blank or CR/LF 500–507508–706 707–724 725–742 743–746747–748 749–750 2008–23 I.R.B.1127June 9, 2008 Sec. 9. End of Transmission “F” Record — General Field Descriptions and Record Layout .01The End of Transmission “F” Record is a summary ofthe number of payers/payees in the entire file. .02The “F” Record is a fixed record length of 750 positions. .03This record must be written after the last “C” Record (or last “K” Record, when applicable) of the entire file. Record Name: End of Transmission “F” Record Field Position Field Title Length Description and Remarks 1Record Type1 Required.Enter “F”. 2–9Number of “A” Records8Enter the total number of Payer “A” Records in the entire file (right-justify and zero-fill) or enter all zeros. 10–30Zero21Enter zeros. 31–49Blank19Enter blanks. 50–57 Total Number of Payees 8Enter the total number of Payee “B” Records reported in the file. Right-justify information and fill unused positions with zeros. If you have entered this total in the “T” Record, you may leave this field blank. 58–499 Blank442Enter blanks. 500–507 Record Sequence Number8 Required.Enter the number of the record as it appears within your file. The record sequencenumber for the “T” record will always be “1” (one), since it is the first record on your file and you can have only one “T” record in a file. Each record, thereafter, must be incremented by one inascending numerical sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field. For example, the “T” record sequence number would appear as “00000001” in the field, the first “A” record would be “00000002”, the first “B” record, “00000003”, the second “B” record, “00000004” and so on until you reach the final record of the file, the “F” record. 508–748 Blank241Enter blanks. 749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. End of Transmission “F” Record — Record Layout Record Type Number of “A” Records ZeroBlankTotal Number of Payees BlankRecord Sequence Number BlankBlank or CR/LF 12–910–3031–49 50–5758–499500–507508–748749–750 June 9, 200811282008–23 I.R.B. Sec. 10. File Layout Diagram Part D. Extensions of Time and Waivers Sec. 1. General — Extensions .01An extension of time to file may be requested for Forms 1098, 1099, 5498, 5498-SA, 5498-ESA, W-2G, W-2 series, 8027 and 1042-S. .02A paper Form 8809, Application for Extension of Time To File Information Returns, should be submitted to IRS/ECC-MTB at the address listed in .09 of this section. This form may be used to request an extension of time to file information returns submitted on paper or electronically to the IRS. Use a separate Form 8809 for each method of filing information returns you intend to use, i.e., electronically or paper. .03The fill-in Form 8809 may be completed online via the FIRE System. (See Part B, Sec. 7, for instructions on connecting to the FIRE System.) At the Main Menu, click “Extension of Time Request” and then click “Fill-in Extension Form”. This option is only used to request an automatic 30-day extension. Extension requestscompleted online via the FIRE System receive an instant response. If you are requesting an additional extension, you must submit a paper Form 8809. Requests for an additional extension of time to file information returns are not automatically granted. Requestsfor additional time are granted only in cases of extreme hardship or catastrophic event. The IRS will only send a letter of explanation approving or denying your additional extension request. (Refer to .12 of this Section.) .04To be considered, an extension request must be postmarked, transmitted or completed online by the due date of the returns; otherwise, the request will be denied. (See Part A, Sec. 7, for due dates.)Ifrequestinganextensionof time to file several types of forms, use one Form 8809; however, Form 8809 or file must be submitted 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 on or before February 28, 2009. .05 As soon as it is apparentthat a 30-day extension of time to file is needed, an extension request should be submitted. It may take up to 30 days for IRS/ECC-MTB to respond to an extension request.IRS/ECC-MTB does not begin processing extension requests until January.Extensions completed online via the FIRE System receive instant results. .06Under certain circumstances, a request for an extension of time may be denied. When a denial letter is received, any additional or necessary information may be resubmitted within 20 days. 2008–23 I.R.B.1129June 9, 2008 .07Requesting an extension of time for multiple payers (10 or less) may be done by completing the online fill-in form via the FIRE System or mailing Form 8809 and attaching a list of the payer names and associated TINs (EIN or SSN). Each payer must be completed online or included in the listing to ensure an extensionis recorded for all payers. Form 8809 may be computer-generated or photocopied. Be sure to use the most recently updated version and include all the pertinent information. Note: IRS encourages the payer/transmitter community to utilize the online fill-in form in lieu of the paper Form 8809. .08Payers/transmitters requesting an extension of time to file formore than 10payers arerequiredto submit the extensions online via the fill-in form or in a file electronically (see Sec. 3, for the record layout). .09All requests for an extension of time filed on Form 8809 must be sent using the following address: IRS-Enterprise Computing Center — Martinsburg Information Reporting Program Attn: Extension of Time Coordinator 240 Murall Drive Kearneysville, WV 25430 Note: Due to the large volume of mail received by IRS/ECC-MTB and the time factor involved in processing Extension of Time (EOT) requests, it is imperative that the attention line be present on all envelopes or packages containing Form 8809. .10Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns, and delivered by United States mail to IRS/ECC-MTB after the due date, are treated astimely under the “timely mailing as timely filing” rule. A similar rule applies to designated private delivery services (PDSs). Notice 97–26, 1997–17 I.R.B. 6, provides rules for determining the date that is treated as the postmark date. For itemsdelivered by a non-designated Private Delivery Service (PDS), the actual date of receipt by IRS/ECC-MTB will be used as the filing date. For items delivered bya designated PDS, but through a type of service not designated in Notice 2004–83, 2004–2 C.B. 1030, the actual date of receipt by IRS/ECC-MTB will be used as the filing date. The timely mailing rule also applies to furnishing statements to recipients and participants. .11Transmitters requesting an extension oftime via an electronic file will receive anapproval or denial letter, accompanied by a list of payers covered under that approval/denial. .12If an additional extension of time is needed, a second Form 8809 or file must be filed by the initial extended due date. Check line 7 on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in cases of extreme hardship or catastrophic event.If requesting a second 30-day extension of time, submit the information return files as soon as prepared. Do not wait for IRS/ECC-MTB’s response to your second extension request. .13If an extension request is approved, the approval notification should be kept on file.DO NOTsend the approval notification or copy of the approval notification to IRS/ECC-MTB or to the service center where the paper returns are filed. .14Request an extension for only one tax year. .15A signature is not required when requesting a 30-day extension. If a second 30-day extension is requested, the Form 8809 MUSTbe signed. Failure to properly complete and sign Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of Form 8809. .16Form 8809 may be obtained by calling1–800–TAX–FORM (1–800–829–3676). The form is also available atw ww.irs.gov. A copy of Form 8809 is also provided in the back of Publication 1220. Sec. 2. Specifications for Filing Extensions of Time Electronically .01The specifications in Sec. 3 include the required 200-byte record layout for extensions of time to file requests submitted elec- tronically. Also included are the instructions forthe information that is to be entered in the record.Filers are advised to read this section in its entirety to ensure proper filing. .02If a filer does not have an IRS/ECC-MTB assigned Transmitter Control Code (TCC), Form 4419, Application for Filing In- formation Returns Electronically,mustbe submitted to obtain a TCC. This numbermustbe used to submit an extension request electronically. (See Part A, Sec. 6.) .03For extension requests filed via an electronic file, the transmitter must fax Form 8809 or send an e-mail though the FIRE System (f ire@irs.govand irs.e-helpmail@irs.gov) the same day as the transmission. The e-mail should contain the same information as the Form 8809 in order to mail a response, check the record count and form types in the file. The e-mail option is only used to request the automatic 30-day extension. If you are requesting an additional extension, you must fax a signed Form 8809 the same day as the transmission. Be sure to include the reason an additional extension is needed. .04 Transmitters submitting an extension of time via an electronic file should not submit a list of payer names and TINs with Form 8809 or e-mail this information since this information is included on the electronic file. However, Line 6 of Form 8809 June 9, 200811302008–23 I.R.B. must be completed or the total number of records on the extension file must be included within the e-mail. The fill-in Form 8809 c annotbe used in lieu of the paper Form 8809 for electronic files. .05Do not submit tax year 2008 extension requests filed electronically beforeJanuary 5, 2009. Sec. 3. Record Layout — Extension of Time .01Positions 6 through 188 of the following record should contain information about thepayerfor whom the extension of time to file is being requested. Do not enter transmitter information in these fields.OnlyoneTCCmaybepresentinafile. Record Layout for Extension of Time Field Position Field Title Length Description and Remarks 1–5 Transmitter Control Code 5Required. Enter the five-character alpha/numeric Transmitter Control Code (TCC) issued by IRS.Only one TCC per file is acceptable. 6–14Payer TIN9 Required. Must be the valid nine-digit EIN/SSN assigned to the payer.Do not enter blanks, hyphens or alpha characters.All zeros, ones, twos, etc., will have the effect of an incorrect TIN. For foreign entities that are not requiredtohaveaTIN,thisfieldmay be blank; however, the Foreign Entity Indicator, position 187,must be set to “X”. 15–54 Payer Name40 Required. Enter the name of the payer whose TIN appears in positions 6–14. Left-justify information and fill unused positions with blanks. 55–94 Second Payer Name 40If additional space is needed, this field may be used to continue name line information (e.g., c/o First National Bank); otherwise; enter blanks. 95–134 Payer Address40 Required. Enter the payer’s address. Street address should include number, street, apartment or suite number (or PO Box if mail is not delivered to a street address). 135–174 Payer City40 Required. Enter the payer’s city, town, or post office. 175–176 Payer State2 Required. Enter the payer’s valid U.S. Postal Service state abbreviation. (Refer to Part A, Sec. 12.) 177–185 Payer ZIP Code9 Required. Enter the payer’s ZIP Code. If using a five-digit ZIP Code, left-justify information and fill unused positions with blanks. 186Document Indicator (See Note.) 1 Required. Enter the appropriate document code that indicates the form for which you are requesting an extension of time. CodeDocument 1W-2 21098, 1098-C, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-H, 1099-INT, 1099-LTC, 1099-MISC, 1099-OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, 1099-SA, or W-2G 3 5498 41042-S 5 REMIC Documents (1099-INT or 1099-OID) 6 5498-SA 7 5498-ESA 2008–23 I.R.B.1131June 9, 2008 Record Layout for Extension of Time (Continued) Field Position Field Title Length Description and Remarks Note: Do not enter any other values in this field. Submit aseparate record for each document. For example, if you are requesting an extension for Form 1099-INT and Form 5498 for the same 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. 187Foreign Entity Indicator 1Enter “X” if the payer is a foreign entity. 188Recipient Request Indicator1Enter “X” if the extension request is to furnish statements to the recipients of the information return. Note: A separate file is required for this type of extension request. A file must either contain all blanks or all X’s in this field. 189–198 Blank10Enter blanks. 199–200 Blank2Enter blanks or carriage return/line feed (CR/LF) characters. Extension of Time Record Layout Transmitter Control Code Payer TIN Payer Name Second Payer Name Payer Address Payer City Payer State 1–5 6–14 15–5455–9495–134135–174175–176 Payer ZIP Code Document Indicator Foreign Entity Indicator Recipient Request Indicator BlankBlank or CR/LF 177–185 186187188189–198199–200 Sec. 4. Extension of Time for Recipient Copies of Information Returns .01Request anextension of time to furnish the statements to recipientsof Forms 1098, 1099 series, 5498 series, W-2G, W-2 series, and 1042-S by submitting a letter to IRS/ECC-MTB at the address listed in Part D, Sec. 1.09. The letter should contain the following information: (a)Payer name (b)TIN (c)Address (d)Type of return (e)Specify that the extension request isto provide statements to recipients (f)Reason for delay (g)Signature of payer or duly authorized person .02Requests for an extension of time to furnish statements to recipients of Forms 1098, 1099 series, 5498 series, W-2G, W-2 series, and 1042-S are not automatically approved; however, if approved, generally an extension will allow aMAXIMUMof 30 additional days from the due date. The request must be postmarked by the date on which the statements are due to the recipients. .03Generally, only the payer may sign the letter requesting the extension for recipient copies. A transmitter must have a contractual agreement with the filers to submit extension requests on their behalf. This should be stated in your letter of request for recipient copy extensions. .04Requests for arecipientextension of time to file for more than10 payersarerequiredto be submitted electronically. (See Sec. 3, for the record layout.) .05 The fill-in Form 8809 extension option cannot be used to request an extension to furnish statements to recipients. June 9, 200811322008–23 I.R.B. Sec. 5. Form 8508, Request for Waiver From Filing Information Returns Electronically .01If a payer is required to file electronically but fails to do so 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. (Forpenalty information, refer to the Penalty Section of the2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.) .02If payers are required to file original or corrected returns electronically, but such filing would create an undue hardship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns Elec- tronically, to IRS/ECC-MTB. Form 8508 can be obtained on the IRS website at w ww.irs.govor by calling toll-free 1–800–829–3676. .03Even though a payer may submit as many as 249 corrections on paper, IRS encourages electronic filing of corrections. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more electronically. However, if a waiver for original documents is approved, any corrections for the sametype of returns will be covered under that waiver. .04Generally, only the payer may sign Form 8508. A transmitter may sign if given power of attorney; however, a letter signed by the payer stating this fact must be attached to Form 8508. .05A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers. .06All information requested on Form 8508 must be provided to IRS/ECC-MTB for the request to be processed. .07The waiver, if approved, will provide exemption from the electronic filing requirement for the current tax year only. Payers may not apply for a waiver for more than one tax year at a time. .08Form 8508 may be photocopied or computer-generated as long as itcontains all the information requested on the original form. .09Filers are encouraged to submit Form 8508 to IRS/ECC-MTB at least 45 days before the due date of the returns. IRS/ECC-MTB does not process waiver requests until January. Waiver requests received prior to January are processed on a first come, first serve basis. .10All requests for a waiver should be sent using the following address: IRS-Enterprise Computing Center — Martinsburg Information Reporting Program Attn: Extension of Time Coordinator 240 Murall Drive Kearneysville, WV 25430 .11 File Form 8508 for the W-2 series offorms with IRS/ECC-MTB, not SSA. .12Waivers are evaluated on a case-by-case basis and are approved ordenied based on criteria set forth in the regulations under section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/ECC-MTB to respond to a waiver request. .13If a waiver request is approved, keep the approval letter on file.DO NOTsend a copy of the approved waiver to the service center where the paper returns are filed. .14An approved waiver only applies to the requirement for filing information returns electronically. The payer must still timely file information returns on the official IRS paper forms or anacceptable substitute form with the appropriate service center. 26 CFR 1.482–1: Allocation of income and deduc- tions among taxpayers. Rev. Proc. 2008–31 SECTION 1. PURPOSE T his revenue procedure modifies Rev. P roc. 2006–9, 2006–1 C.B. 278, which informs taxpayers how to secure an ad- vance pricing agreement (“APA”) from the APA Program within the Office of Asso- ciate Chief Counsel (International). This revenue procedure modifies Rev. Proc. 2006–9 to describe further the types of issues that may be resolved in the APA process. SECTION 2. BACKGROUND Since 1991, with the issuance of Rev. Proc. 91–22, 1991–1 C.B. 526, the In- ternal Revenue Service (“Service”) has offered taxpayers, through the APA Pro- gram, the opportunity to reach agreement inadvanceoffilingataxreturnonthe appropriate transfer pricing method to be applied to related party transactions. In 1996, the Service updated and superseded Rev. Proc. 91–22 with the release of Rev. Proc. 96–53, 1996–2 C.B. 375. On July 1, 2004, the Service updated and superseded Rev. Proc. 96–53 by issuing Rev. Proc. 2004–40, 2004–2 C.B. 50. On Decem- ber 19, 2005, the Service again updated the procedural rules for processing and administering APAs with the release of Rev. Proc. 2006–9, 2006–1 C.B. 278, superseding Rev. Proc. 2004–40. SECTION 3. MODIFICATION OF REV. PROC. 2006–9 Section 2.01 of Rev. Proc. 2006–9 is modified to read as follows: The APA Program provides a volun- tary process whereby the Internal Revenue Service (“Service”) and taxpayers may resolve transfer pricing issues under Sec- tion 482 of the Internal Revenue Code (“Code”), the Income Tax Regulations under Section 482, and relevant income tax treaties to which the United States is a party in a principled and coopera- tive manner on a prospective basis. The APA program also provides a process whereby the Service and taxpayers may resolve other issues arising under certain 2008–23 I.R.B.1133June 9, 2008 income tax treaties, the Code, or the In- come Tax Regulations, for which transfer pricing principles may be relevant, such as attribution of profits to a permanent establishment under an income tax treaty, determining the amount of income ef- fectively connected with the conduct by the taxpayer of a trade or business within the United States, and determining the amounts of income derived from sources partly within and partly without the United States, as well as related subsidiary issues. The APA process increases the efficiency of tax administration by encouraging tax- payers to come forward and present to the Service all the facts relevant to a proper transfer pricing analysis and to work to- wards a mutual agreement in a spirit of openness and cooperation. The prospec- tive nature of APAs lessens the burden of compliance by giving taxpayers greater certainty regarding their transfer pricing methods, and promotes the principled res- olution of these issues by allowing for their discussion and resolution in advance before the consequences of such resolu- tion are fully known to taxpayers and the Service. SECTION 4. EFFECT ON OTHER DOCUMENTS Rev. Proc. 2006–9 is modified. SECTION 5. EFFECTIVE DATE This revenue procedure is effective June 9, 2008, the date this revenue proce- dure was published in Internal Revenue Bulletin 2008–23. SECTION 6. DRAFTING INFORMATION The principal author of this revenue procedure is Per Juvkam-Wold of the Office of Associate Chief Counsel (In- ternational). For further information re- garding this revenue procedure, contact Craig Sharon at (202) 435–5220 (not a toll-free call). June 9, 200811342008–23 I.R.B. Part IV. Items o fGeneralInterest Notice of Prop osed Rulemaking Contributed P roperty REG–100798–06 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of Proposed Rulemak- ing. SUMMARY: These proposed regulations undersection704(c)oftheInternalRev- enue Code (Code) provide that the section 704(c) anti-abuse rule takes into account the tax liabilities of both the partners in a partnership and certain direct and indirect owners of such partners. The proposed regulations further provide that a section 704(c) allocation method cannot be used to achieve tax results inconsistent with the in- tent of subchapter K of the Code. The pro- posed regulations affect partnerships and their partners. DATES: Written or electronic comments and requests for a public hearing must be received by August 18, 2008. ADDRESSES: Send submissions to: CC:PA:LPD:PR(REG–100798–06), Room 5203, Internal Revenue Service, POB 7604, Ben Franklin Station, Wash- ington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG–100798–06), Courier’s Desk, Internal Revenue Ser- vice, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, tax- payers may submit comments elec- tronically via the Federal eRulemak- ing Portal atwww.regulations.gov(IRS REG–100798–06). FOR F URTHER INFORMATION CONT ACT: Concerning the pro- pose d regulations, Laura Fields or St even A. Schmoll at (202) 622– 3050; concerning submissions of comm ents, and hearing requests, e-mail Ric hard.A.Hurst@irscounsel.treas.gov, (20 2) 622–7180 (not toll-free numbers). SUPPLEMENTAL INFORMATION: Background Under section 704(c), a partnership must allocate items of income, gain, loss and deduction attributable to contributed property to ta ke into account any variation between the p roperty’s adjusted tax basis and its fair m arket value at the time of con- tribution. S ection 1.704–3(a) permits the use of any rea sonable allocation method that is consi stent with the purposes of section 704 (c). Section 1.704–3 provides three alloc ation methods that are gener- ally reason able and consistent with the purposes of section 704(c): the traditional method, th e traditional method with cura- tive alloc ations and the remedial method. Section 1. 704–3(a)(10) provides that an allocat ion method (or combination of methods) i s not reasonable if the contri- bution of p roperty (or event that results in revers e section 704(c) allocations) and the corre sponding allocation of tax items with resp ect to the property are made with aviewtos hifting the tax consequences of built-in gain or loss among the partners in a mann er that substantially reduces the present value of the partners’ aggregate tax liab ility (the anti-abuse rule). In 2003, the Staff of the Joint Commit- tee on Ta xation (JCT) preparedThe Re- port of I nvestigation of Enron Corporation and Rela ted Entities Regarding Federal Tax and Compensation Issues, and Policy Recomm endations, (JCS–3–03) February 2003 (E nron Report). As part of the Enron Report , the JCT considered a transaction identi fied as “Project Condor.” See Enron Repor t, pgs. 208–221. Responding to the Enron Report, Congress enacted section 755(c ) in the American Jobs Creation Act of 200 4, Public Law 108–357 (118 Stat. 1418) to address the unwarranted tax bene- fits for transactions similar to Project Con- dor. In ad dition to the legislative recom- mend ation, the Enron Report states that the r ules of section 704(c) should not be used by related parties to shift basis among asse ts in the manner attempted in Project Con dor. Although the Enron Report noted tha t the anti-abuse rule of §1.704–3(a)(10) “.. .should apply to preclude the tax ben- efi ts Project Condor purported to gen- erate,” the En ron Report recommended strengthenin g the anti-abuse rule relating to “...partne rship allocations for property contributed t o a partnership, especially in the case of par tners that are members of thesamecons olidated group to ensure that the allocati on rules are not used to obtain unwarranted tax benefits.” See Enron Re- port, pg. 220 . These propos ed regulations address the JCT recom mendation by clarifying certain asp ects of the anti-abuse rule. These clari fications are consistent with the general principles of sections 701 and 704, and make conforming changes to those th at were recently adopted in §1.704–1( b)(2)(iii). Explanatio nofProvisions Under the an ti-abuse rule, an allocation method (or c ombination of methods) is not reason able if the contribution of prop- erty and th e corresponding allocation of tax items w ith respect to the property are made with a view to shifting the tax con- sequences of built-in gain or loss among the partn ers in a manner that substantially reduces t he present valueof the partners’ aggregat e tax liability. Failing to con- sider a su bstantial reduction in the present value of a n indirect partner’s tax liabil- ity when analyzing the reasonableness of an alloc ation method would be inconsis- tent wit h the purposes of section 704(c) because it would allow a partnership to adopt a t ax-advantaged allocation method if the t ax advantages of the method accrued to an in direct partner, rather than a direct partne r. Accordingly, §1.704–3(a)(10) is amende d to provide that, for purposes of applyi ng the anti-abuse rule, the tax effect of an a llocation method (or combination of metho ds) on both direct and indirect part- ners i s considered. The proposed regu- latio ns provide that an indirect partner is any di rect or indirect owner of a partner- ship , S corporation, or controlled foreign corp oration(asdefinedinsection957(a) or 95 3(c)), or direct or indirect beneficiary of a t rust or estate, that is a partner in the part nership, and any consolidated group of wh ich the partner in the partnership is ame mber (within the meaning of section 1.1 502–1(h)). However, an owner of a con trolled foreign corporation is treated as 2008–23 I.R.B.1135June 9, 2008 an indirect partner only with respect to the allocation of items that enter into the com- putation of a United States shareholder’s inclusion under section 951(a) with respect to the controlled foreign corporation, enter into any person’s income attributable to a United States shareholder’s inclusion un- der section 951(a) with respect to the con- trolled foreign corporation, or would en- ter into the computations described in this paragraph if such items were allocated to the controlled foreign corporation. The Treasury Department and IRS be- lieve that this amendment merely confirms the proper application of the anti-abuse rule contained in the existing regula- tions. This clarifying addition is con- sistent with the recent modification to §1.704–1(b)(2)(iii) (substantiality test) confirming that, for purposes of the sub- stantiality test, the tax consequences to an owner of a look-through entity that is a partner in the partnership must be taken into account when evaluating an allocation to such partner. These proposed regulations further pro- vide that the principles of section 704(c), together with the allocation methods de- scribed in §1.704–3, paragraphs (b), (c) and (d), apply only with respect to the contributions of property to the partner- ship. In that regard, the anti-abuse rule of §1.701–2(b) provides that, if a partnership is formed or availed of in connection with a transaction a principal purpose of which is to reduce substantially the present value of the partners’ Federal tax liability in a manner inconsistent with the intent of sub- chapter K, the IRS may recast the transac- tion for federal tax purposes as appropri- ate to achieve tax results that are consistent with the intent of subchapter K. Thus, even though a transaction may satisfy the literal words of the statute or regulations, the IRS may recast a transaction as appropriate to avoid tax results that are inconsistent with the intent of subchapter K, including but not limited to: (i) disregarding purported partnerships, in whole or part, so that part- nership assets are treated as owned by the partner; (ii) disregarding one or more con- tributions or (iii) disregarding one or more purported partners. The proposed regula- tions also provide that, in determining if a purported contribution of property to a partnership should be recast to avoid re- sults that are inconsistent with subchapter K, one factor that may be relevant is the use of the remedial method in which allo- cations of remedial items of income, gain, loss or deduction are made to one part- ner and allocations of offsetting remedial items are made to a related partner. Proposed Effective Date These regulations are proposed to ap- ply for taxable years beginning after the date of publication of the Treasury deci- sion adopting these rules as final regula- tions in theFederal Register.Noinfer- ence should be drawn from this effective date with respect to prior law. Special Analyses It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory as- sessment is not required. It has also been determined that section 553(b) of the Ad- ministrative Procedure Act (5 U.S.C. chap- ter 5) does not apply to these regulations, and because the regulation does not im- pose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, this no- tice of proposed rulemaking has been sub- mitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Comments and Public Hearing Before the proposed regulations are adopted as final regulations, considera- tion will be given to any written (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and Treasury Depart- ment request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing will be sched- uled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in theFederal Register. Drafting Information The principal authors of these pro- posed regulations are Laura Fields and Steven A. Schmoll, Office of the Associate Chief Counsel (Passthroughs and Special Industries), IRS. However, other personnel from the IRS and Treasury Department participated in their development. ***** Proposed Amendments to the Regulations Accordingly, 26 CFR part 1 is proposed to be amended as follows: PART—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read, in part, as follows: Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.704–3 is amended by: 1. Adding five sentences to paragraph (a)(1) at the end of the last sentence and re- vising paragraph (a)(10) to read as follows. The revisions and additions read as fol- lows: §1.704–3 Contributed property. (a)***(1)***Theprinciplesofthis paragraph (a)(1), together with the meth- ods described in paragraphs (b), (c) and (d) of this section, apply only to contributions of property that are otherwise respected. See §1.701–2. Accordingly, even though a partnership’s allocation method may be described in the literal language of para- graphs (b), (c) or (d) of this section, based on the particular facts and circumstances, the Commissioner can recast the contri- bution as appropriate to avoid tax results inconsistent with the intent of subchapter K. One factor that may be considered by the Commissioner is the use the of reme- dial allocation method by related partners in which allocations of remedial items of income, gain, loss or deduction are made to one partner and the allocations of offset- ting remedial items are made to a related partner. The preceding four sentences are effective for taxable years beginning after the date of publication of the Treasury de- cision adopting these rules as final regula- tion in theFederal Register. ***** (10)Anti-abuse rule—(i)In general. An allocation method (or combination of methods) is not reasonable if the contri- bution of property (or event that results in reverse section 704(c) allocations) and the corresponding allocation of tax items June 9, 200811362008–23 I.R.B. with respect to the property are made with a view to shifting the tax consequences of built-in gain or loss among the part- ners in a manner that substantially reduces the present value of the partners’ aggre- gate tax liability. For purposes of this para- graph (a)(10), the tax effect of an alloca- tion method (or combination of methods) on direct and indirect partners is consid- ered. (ii)Definition of indirect partner.An indirect partner is any direct or indirect owner of a partnership, S corporation, or controlled foreign corporation (as defined in section 957(a) or 953(c)), or direct or in- direct beneficiary of atrust or estate, that is a partner in the partnership, and any con- solidated group of which the partner in the partnership is a member (within the mean- ing of §1.1502–1(h)). An owner (whether directly or through tiers of entities) of a controlled foreign corporation is treated as an indirect partner only with respect to al- locations of items of income, gain, loss, or deduction that enter into the computa- tion of a United States shareholder’s in- clusion under section 951(a) with respect to the controlled foreign corporation, enter into any person’s income attributable to a United States shareholder’s inclusion un- der section 951(a) with respect to the con- trolled foreign corporation, or would en- ter into the computations described in this sentence if such items were allocated to the controlled foreign corporation. (iii)Effective/applicability date.The last sentence of paragraph (a)(10)(i), and paragraph (a)(10)(ii)of this section are ef- fective for taxable years beginning after the date of publication of the Treasury de- cision adopting these rules as final regula- tions in theFederal Register. ***** Linda E. Stiff, Deputy Commissioner for Services and Enforcement. (Filed by the Office of the Federal Register on May 16, 2008, 8:45 a.m., and published in the issue of the Federal Register for May 19, 2008, 73 F.R. 28765) Partner’s Distributive Share; Correction Announcement 2008–53 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to notice of pro- posed regulations. SUMMARY: This document contains corrections to the notice of proposed regu- lations (REG–143397–05, 2007–41 I.R.B. 790) that was published in the Federal Register on Wednesday, August 22, 2007 (72 FR 46932) concerning the application of sections 704(c)(1)(B) and 737 to distri- butions of property after two partnerships engage in an assets-over merger. The pro- posed regulations affect partnerships and their partners. FOR FURTHER INFORMATION CONTACT: Jason Smyczek or Laura Fields at (202) 622–3050 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The notice of proposed rulemaking (REG–143397–05) that is the subject of these corrections is under sections 704(c) and 737 of the Internal Revenue Code. Need for Correction As published, this notice of proposed rulemaking (REG–143397–05) contains errors that may prove to be misleading and are in need of clarification. Correction for Publication Accordingly, the notice of proposed rulemaking (REG–143397–05) that was the subject of FR Doc. E7–16189 is cor- rected as follows: 1. On page 46932, column 1, the head- ing, the subject “Partner’s Distributive Share’’ is corrected to read “Rules for Contribution and Subsequent Distribution ofSection704(c)PropertyinConnection with Partnership Mergers’’. 2. On page 46932, column 3, in the preamble under the paragraph heading Background, first full paragraph in the column,line6,thelanguage“describedin § 1.708–1(c)(3). Rev. Rul.’’ is corrected to read “described in§ 1.708–1(c)(3)(i). Rev. Rul.’’. 3. On page 46933, column 3, in the preamble under the paragraph heading “A. Assets-Over Partnership Mergers’’, first full paragraph in the column, line 2, the language “3(c)(4)(iii) provide that tax- payers may’’ is corrected to read “3(a)(9) provide that taxpayers may’’. § 1.704–3 [Corrected] 4.On page 46934, column 2, § 1.704–3(a)(9), line 6, the language “§ 1.708–1(c)(3) (the transferor’’ is cor- rected to read “§ 1.708–1(c)(3)(i) (the transferor’’. § 1.704–4 [Corrected] 5.On page 46935, column 1, § 1.704–4(c)(4), line 3 from the top of the column, the language “§ 1.708–1(c)(3) by a partnership (the’’ is corrected to read “§ 1.708–1(c)(3)(i) by a partnership (the’’. 6.On page 46935, column 2, § 1.704–4(c)(4)(ii)(B), second line from the bottom of the paragraph is corrected to read “See § 1.737–2(b)(1)(ii)(B) for a similar rule in’’. 7.On page 46935, column 3, § 1.704–4(c)(4)(ii)(E) is corrected by adding a sentence at the end of the para- graph to read as follows: § 1.704–4 Distribution of contributed property. ***** (c) * * * (4) * * * (ii) * * * (E)***See§1.737–2(b)(1)(ii)(E)for a similar rule in the context of section 737. ***** 8.On page 46936, column 1, § 1.704–4(c)(4)(ii)(F), Example (2)(i), line 7 from the bottom of the paragraph, the language “fair market value of $400x, and $450x in’’ is corrected to read “fair market value of $400x, and $400x in’’. 9.On page 46936, column 1, § 1.704–4(c)(4)(ii)(F), Example (2)(i), lines 3 and 4 from the bottom of the para- graph, the language “PRS1 as follows: A, 25%; B, 25%; C, 16.67%; D, 16.67% and E, 16.67%. On January 1,’’ is corrected to read “PRS1 as follows: A, 25.76 percent; 2008–23 I.R.B.1137June 9, 2008 B, 25.76 percent; C, 16.16 percent; D, 16.16 percent; and E, 16.16 percent. On January 1,’’. 10. On page 46936, column 2, § 1.704–4(c)(4)(ii)(F), Example (2)(ii), first line of the column, the language “as a result of the merger. C also has $100 of’’ is corrected to read “as a result of the merger. C also has $100x of’’. 11. On page 46936, column 2, § 1.704–4(c)(4)(ii)(F), Example (3)(i), lines 3 and 4 from the bottom of the para- graph, the language “loss interests in PRS1 as follows: A, 27.5%; B, 27.5%; C, 15%; D, 15% and E, 15%. On’’ is corrected to read “loss interests in PRS1 as follows: A, 27.5 percent; B, 27.5 percent; C, 15 percent; D, 15 percent; and E, 15 percent. On’’. 12. On page 46936, column 2, § 1.704–4(c)(4)(ii)(F), Example (3)(i), last line of the paragraph, the language “when its value is still $600.’’ is corrected to read “when its value is still $600x.’’ 13. On page 46936, column 2, § 1.704–4(c)(4)(ii)(F), Example (3)(ii), line 8, the language “($600x (fair market value)—100x (adjusted’’ is corrected to read “($600x (fair market value)—$100x (adjusted’’. 14. On page 46936, column 2, § 1.704–4(c)(4)(ii)(F), Example (3)(ii), line 5 from the bottom of the paragraph, the language “E each succeed to $150 of new section 704(c)’’ is corrected to read “E each succeed to $150x of new section 704(c)’’. 15. On page 46936, column 2, § 1.704–4 paragraph (c)(4)(ii)(F), Exam- ple (3)(ii), last line of the paragraph, the language “recognize $150 of gain.’’ is cor- rected to read “recognize $150x of gain.’’. 16. On page 46936, column 3, § 1.704–4(c)(4)(ii)(F), Example (5)(i), line 5 from the bottom of the paragraph, the language “of the partnerships, A con- tributed the Asset’’ is corrected to read “of the partnerships, A contributed Asset’’. 17. On page 46936, column 3, § 1.704–4(c)(4)(ii)(F), Example (5)(ii), last line of the paragraph, the language “distributes all of Asset X to A.’’ is cor- rected to read “distributes Asset X to A.’’. § 1.737–2 [Corrected] 18. On page 46937, column 1, item 2 in instructional Par. 5. is corrected, and item 3 is added to read as follows: Par. 5. Section 1.737–2 is amended as follows: 1. * * * 2. Paragraph (e) is redesignated as para- graph (f). 3. New paragraph (e) is added. The addition and revision read as fol- lows: § 1.737–2 Exceptionsand special rules. ***** (e) Reverse section 704(c) gain. * * * 19. On page 46938, column 3, § 1.737–2(b)(1)(ii)(F), Example (5)(ii), line 2 from the bottom of the paragraph, the language “liabilities. In 2006, PRS2 distributes all of’’ is corrected to read “li- abilities. In 2006, PRS2 distributes’’. Cynthia Grigsby, Senior Federal Register Liaison Officer, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). (Filed by the Office of the Federal Register on November 5, 2007, 8:45 a.m., and published in the issue of the Federal Register for November 6, 2007, 72 F.R. 62608) June 9, 200811382008–23 I.R.B. Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the ef- fect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is be- ingextendedtoapplytoavariationofthe fact situation set forth therein. Thus, if an earlier ruling held that a principle ap- plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare withmodi- fied,below). Clarifiedis used in those instances where the language in a prior ruling is be- ing made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously pub- lished ruling and points out an essential difference between them. Modifiedis used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare withamplifiedandclarified, above). Obsoleteddescribes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rul- ings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revokeddescribes situations where the position in the previously published ruling is not correct and the correct position is beingstatedinanewruling. Supersededdescribes a situation where the new ruling does nothing more than re- state the substance and situation of a previ- ously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same po- sition published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single rul- ing a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new rul- ing does more than restate the substance of a prior ruling, a combination of terms is used. For example,modifiedandsu- persededdescribes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously pub- lished ruling is first modified and then, as modified, is superseded. Supplementedis used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original rul- ing has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the ad- ditions, and supersedes all prior rulings in the series. Suspendedis used in rare situations to show that the previous published 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 fol lowing abbreviations in current use and for merly used will appear in material publis hedintheBulletin. A—Individual. Acq.—A cquiescence. B—Individual. BE—Beneficiary. BK—Bank . B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cu mulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Coo perative. Ct.D.—Court Decision. CY—County. D—Decede nt. DC—Dummy Corporation. DE—Donee. Del. Order —Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Emp loyer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduc iary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Fo reign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Fed eral Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grante e. GP—General Partner. GR—Grantor. IC—Insura nce Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—No nacquiescence. O—Organization. P—Parent Corporation. PHC—Persona l Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Pa rtnership. PTE—Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Re al Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsi diary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Trans feree. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpay er. TR—Trust. TT—Trustee. U.S.C.—Uni ted States Code. X—Corporation. Y—Corporation. Z—Corporat ion. 2008–23 I.R.B.iJune 9, 2008 Numerical Finding List 1 Bulletins 2008–1 through 2008–23 Announcements: 2008-1, 2008-1 I.R.B.246 2008-2, 2008-3 I.R.B.307 2008-3, 2008-2 I.R.B.269 2008-4, 2008-2 I.R.B.269 2008-5, 2008-4 I.R.B.333 2008-6, 2008-5 I.R.B.378 2008-7, 2008-5 I.R.B.379 2008-8, 2008-6 I.R.B.403 2008-9, 2008-7 I.R.B.444 2008-10, 2008-7 I.R.B.445 2008-11, 2008-7 I.R.B.445 2008-12, 2008-7 I.R.B.446 2008-13, 2008-8 I.R.B.480 2008-14, 2008-8 I.R.B.481 2008-15, 2008-9 I.R.B.511 2008-16, 2008-9 I.R.B.511 2008-17, 2008-9 I.R.B.512 2008-18, 2008-12 I.R.B.667 2008-19, 2008-11 I.R.B.624 2008-20, 2008-11 I.R.B.625 2008-21, 2008-13 I.R.B.691 2008-22, 2008-13 I.R.B.692 2008-23, 2008-14 I.R.B.731 2008-24, 2008-13 I.R.B.692 2008-25, 2008-14 I.R.B.732 2008-26, 2008-13 I.R.B.693 2008-27, 2008-15 I.R.B.751 2008-28, 2008-14 I.R.B.733 2008-29, 2008-15 I.R.B.786 2008-30, 2008-16 I.R.B.825 2008-31, 2008-15 I.R.B.787 2008-32, 2008-16 I.R.B.826 2008-33, 2008-16 I.R.B.826 2008-34, 2008-17 I.R.B.849 2008-35, 2008-17 I.R.B.849 2008-36, 2008-16 I.R.B.827 2008-37, 2008-17 I.R.B.850 2008-38, 2008-17 I.R.B.851 2008-39, 2008-18 I.R.B.867 2008-40, 2008-19 I.R.B.941 2008-41, 2008-19 I.R.B.943 2008-42, 2008-19 I.R.B.943 2008-43, 2008-19 I.R.B.944 2008-44, 2008-20 I.R.B.982 2008-45, 2008-20 I.R.B.982 2008-46, 2008-20 I.R.B.983 2008-47, 2008-20 I.R.B.983 2008-48, 2008-20 I.R.B.983 2008-49, 2008-21 I.R.B.1024 2008-50, 2008-21 I.R.B.1024 2008-51, 2008-22 I.R.B. 1040 2008-52, 2008-22 I.R.B.1040 Announcements— Continued: 2008-53, 2008-23 I.R.B.1137 Court Decisions: 2085, 2008-17 I.R.B.828 2086, 2008-19 I.R.B.905 Notices: 2008-1, 2008-2 I.R.B.251 2008-2, 2008-2 I.R.B.252 2008-3, 2008-2 I.R.B.253 2008-4, 2008-2 I.R.B.253 2008-5, 2008-2 I.R.B.256 2008-6, 2008-3 I.R.B.275 2008-7, 2008-3 I.R.B.276 2008-8, 2008-3 I.R.B.276 2008-9, 2008-3 I.R.B.277 2008-10, 2008-3 I.R.B.277 2008-11, 2008-3 I.R.B.279 2008-12, 2008-3 I.R.B.280 2008-13, 2008-3 I.R.B.282 2008-14, 2008-4 I.R.B.310 2008-15, 2008-4 I.R.B.313 2008-16, 2008-4 I.R.B.315 2008-17, 2008-4 I.R.B.316 2008-18, 2008-5 I.R.B.363 2008-19, 2008-5 I.R.B.366 2008-20, 2008-6 I.R.B.406 2008-21, 2008-7 I.R.B.431 2008-22, 2008-8 I.R.B.465 2008-23, 2008-7 I.R.B.433 2008-24, 2008-8 I.R.B.466 2008-25, 2008-9 I.R.B.484 2008-26, 2008-9 I.R.B.487 2008-27, 2008-10 I.R.B.543 2008-28, 2008-10 I.R.B.546 2008-29, 2008-12 I.R.B.637 2008-30, 2008-12 I.R.B.638 2008-31, 2008-11 I.R.B.592 2008-32, 2008-11 I.R.B.593 2008-33, 2008-12 I.R.B.642 2008-34, 2008-12 I.R.B.645 2008-35, 2008-12 I.R.B.647 2008-36, 2008-12 I.R.B.650 2008-37, 2008-12 I.R.B.654 2008-38, 2008-13 I.R.B.683 2008-39, 2008-13 I.R.B.684 2008-40, 2008-14 I.R.B.725 2008-41, 2008-15 I.R.B.742 2008-42, 2008-15 I.R.B.747 2008-43, 2008-15 I.R.B.748 2008-44, 2008-16 I.R.B.799 2008-45, 2008-17 I.R.B.835 2008-46, 2008-18 I.R.B.868 2008-47, 2008-18 I.R.B.869 2008-48, 2008-21 I.R.B.1008 Notices— Continued: 2008-49, 2008-20 I.R.B.979 2008-50, 2008-21 I.R.B.1010 Proposed Regulations: REG-208199-91, 2008-21 I.R.B.1017 REG-168745-03, 2008-18 I.R.B.871 REG-147290-05, 2008-10 I.R.B.576 REG-100798-06, 2008-23 I.R.B.1135 REG-141998-06, 2008-19 I.R.B.911 REG-147775-06, 2008-19 I.R.B.916 REG-153589-06, 2008-14 I.R.B.730 REG-104713-07, 2008-6 I.R.B.409 REG-104946-07, 2008-11 I.R.B.596 REG-110136-07, 2008-17 I.R.B.838 REG-111583-07, 2008-4 I.R.B.319 REG-112196-07, 2008-21 I.R.B.1021 REG-114126-07, 2008-6 I.R.B.410 REG-114942-07, 2008-18 I.R.B.901 REG-119518-07, 2008-17 I.R.B.844 REG-124590-07, 2008-16 I.R.B.801 REG-127391-07, 2008-13 I.R.B.689 REG-136701-07, 2008-11 I.R.B.616 REG-137573-07, 2008-15 I.R.B.750 REG-139236-07, 2008-9 I.R.B.491 REG-141399-07, 2008-8 I.R.B.470 REG-143468-07, 2008-17 I.R.B.848 REG-147832-07, 2008-8 I.R.B.472 REG-149475-07, 2008-9 I.R.B.510 REG-151135-07, 2008-16 I.R.B.815 REG-108508-08, 2008-19 I.R.B.923 Revenue Procedures: 2008-1, 2008-1 I.R.B.1 2008-2, 2008-1 I.R.B.90 2008-3, 2008-1 I.R.B.110 2008-4, 2008-1 I.R.B.121 2008-5, 2008-1 I.R.B.164 2008-6, 2008-1 I.R.B.192 2008-7, 2008-1 I.R.B.229 2008-8, 2008-1 I.R.B.233 2008-9, 2008-2 I.R.B.258 2008-10, 2008-3 I.R.B.290 2008-11, 2008-3 I.R.B.301 2008-12, 2008-5 I.R.B.368 2008-13, 2008-6 I.R.B.407 2008-14, 2008-7 I.R.B.435 2008-15, 2008-9 I.R.B.489 2008-16, 2008-10 I.R.B.547 2008-17, 2008-10 I.R.B.549 2008-18, 2008-10 I.R.B.573 2008-19, 2008-11 I.R.B.594 2008-20, 2008-20 I.R.B.980 2008-21, 2008-12 I.R.B.657 2008-22, 2008-12 I.R.B.658 2008-23, 2008-12 I.R.B.664 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2007–27 through 2007–52 is in Internal Revenue Bulletin 2007–52, dated December 26, 2007. June 9, 2008ii2008–23 I.R.B. Revenue Procedures— Continued: 2008-24, 2008-13 I.R.B.684 2008-25, 2008-13 I.R.B.686 2008-26, 2008-21 I.R.B.1014 2008-27, 2008-21 I.R.B.1014 2008-28, 2008-23 I.R.B.1054 2008-29, 2008-22 I.R.B.1039 2008-30, 2008-23 I.R.B.1056 2008-31, 2008-23 I.R.B.1133 Revenue Rulings: 2008-1, 2008-2 I.R.B.248 2008-2, 2008-2 I.R.B.247 2008-3, 2008-2 I.R.B.249 2008-4, 2008-3 I.R.B.272 2008-5, 2008-3 I.R.B.271 2008-6, 2008-3 I.R.B.271 2008-7, 2008-7 I.R.B.419 2008-8, 2008-5 I.R.B.340 2008-9, 2008-5 I.R.B.342 2008-10, 2008-13 I.R.B.676 2008-11, 2008-10 I.R.B.541 2008-12, 2008-10 I.R.B.520 2008-13, 2008-10 I.R.B.518 2008-14, 2008-11 I.R.B.578 2008-15, 2008-12 I.R.B.633 2008-16, 2008-11 I.R.B.585 2008-17, 2008-12 I.R.B.626 2008-18, 2008-13 I.R.B.674 2008-19, 2008-13 I.R.B.669 2008-20, 2008-14 I.R.B.716 2008-21, 2008-15 I.R.B.734 2008-22, 2008-16 I.R.B.796 2008-23, 2008-18 I.R.B.852 2008-24, 2008-18 I.R.B.861 2008-25, 2008-21 I.R.B.986 2008-26, 2008-21 I.R.B.985 2008-28, 2008-22 I.R.B.1029 Tax Conventions: 2008-8, 2008-6 I.R.B.403 2008-39, 2008-18 I.R.B.867 Treasury Decisions: 9368, 2008-6 I.R.B.382 9369, 2008-6 I.R.B.394 9370, 2008-7 I.R.B.428 9371, 2008-8 I.R.B.447 9372, 2008-8 I.R.B.462 9373, 2008-8 I.R.B.463 9374, 2008-10 I.R.B.521 9375, 2008-5 I.R.B.344 9376, 2008-11 I.R.B.587 9377, 2008-11 I.R.B.578 9378, 2008-14 I.R.B.720 9379, 2008-14 I.R.B.715 9380, 2008-14 I.R.B.718 9381, 2008-14 I.R.B.694 Treasury Decisions— Continued: 9382, 2008-9 I.R.B.482 9383, 2008-15 I.R.B.738 9384, 2008-16 I.R.B.792 9385, 2008-15 I.R.B.735 9386, 2008-16 I.R.B.788 9387, 2008-16 I.R.B.789 9388, 2008-17 I.R.B.832 9389, 2008-18 I.R.B.863 9390, 2008-18 I.R.B.855 9391, 2008-20 I.R.B.945 9392, 2008-19 I.R.B.903 9393, 2008-20 I.R.B.975 9394, 2008-21 I.R.B.988 9395, 2008-22 I.R.B.1031 9396, 2008-22 I.R.B.1026 9397, 2008-22 I.R.B.1025 2008–23 I.R.B.iiiJune 9, 2008 Finding List of Current Actions on Previously Published Items 1 Bulletins 2008–1 through 2008–23 Announcements: 2006-88 Clarified and superseded by Notice 2008-35, 2008-12 I.R.B.647 Notice 2008-36, 2008-12 I.R.B.650 2008-6 Superseded by Ann. 2008-19, 2008-11 I.R.B.624 Notices: 2001-16 Modified by Notice 2008-20, 2008-6 I.R.B.406 2001-60 Modified and superseded by Notice 2008-31, 2008-11 I.R.B.592 2002-44 Superseded by Notice 2008-39, 2008-13 I.R.B.684 2003-51 Superseded by Rev. Proc. 2008-24, 2008-13 I.R.B.684 2006-27 Clarified and superseded by Notice 2008-35, 2008-12 I.R.B.647 2006-28 Clarified and superseded by Notice 2008-36, 2008-12 I.R.B.650 2006-52 Clarified and amplified by Notice 2008-40, 2008-14 I.R.B.725 2006-77 Clarified and amplified by Notice 2008-25, 2008-9 I.R.B.484 2006-107 Modified by Notice 2008-7, 2008-3 I.R.B.276 2007-30 Modified and superseded by Notice 2008-14, 2008-4 I.R.B.310 2007-45 Modified by Notice 2008-49, 2008-20 I.R.B.979 2007-54 Clarified by Notice 2008-11, 2008-3 I.R.B.279 Notices— Continued: 2008-13 Supplemented by Notice 2008-46, 2008-18 I.R.B.868 2008-27 Clarified, amended, supplemented, and superseded by Notice 2008-41, 2008-15 I.R.B.742 Proposed Regulations: REG-209020-86 Corrected by Ann. 2008-11, 2008-7 I.R.B.445 REG-107592-00 Partial withdrawal by Ann. 2008-25, 2008-14 I.R.B.732 REG-149856-03 Hearing scheduled by Ann. 2008-26, 2008-13 I.R.B.693 REG-143397-05 Corrected by Ann. 2008-53, 2008-23 I.R.B.1137 REG-147290-05 Hearing scheduled by Ann. 2008-43, 2008-19 I.R.B.944 REG-109367-06 Withdrawn by Ann. 2008-41, 2008-19 I.R.B.943 REG-104946-07 Hearing scheduled by Ann. 2008-47, 2008-20 I.R.B.983 REG-113891-07 Hearing scheduled by Ann. 2008-4, 2008-2 I.R.B.269 REG-114126-07 Corrected by Ann. 2008-36, 2008-16 I.R.B.827 REG-127770-07 Hearing scheduled by Ann. 2008-24, 2008-13 I.R.B.692 REG-133300-07 Hearing scheduled by Ann. 2008-34, 2008-17 I.R.B.849 REG-139236-07 Hearing scheduled by Ann. 2008-42, 2008-19 I.R.B.943 REG-141399-07 Hearing cancelled by Ann. 2008-31, 2008-15 I.R.B.787 Revenue Procedures: 97-36 Modified by Rev. Proc. 2008-23, 2008-12 I.R.B.664 2001-23 Modified by Rev. Proc. 2008-23, 2008-12 I.R.B.664 2002-9 Modified by Rev. Proc. 2008-18, 2008-10 I.R.B.573 Modified and amplified by Rev. Proc. 2008-25, 2008-13 I.R.B.686 2006-9 Modified by Rev. Proc. 2008-31, 2008-23 I.R.B.1133 2007-1 Superseded by Rev. Proc. 2008-1, 2008-1 I.R.B.1 2007-2 Superseded by Rev. Proc. 2008-2, 2008-1 I.R.B.90 2007-3 Superseded by Rev. Proc. 2008-3, 2008-1 I.R.B.110 2007-4 Superseded by Rev. Proc. 2008-4, 2008-1 I.R.B.121 2007-5 Superseded by Rev. Proc. 2008-5, 2008-1 I.R.B.164 2007-6 Superseded by Rev. Proc. 2008-6, 2008-1 I.R.B.192 2007-7 Superseded by Rev. Proc. 2008-7, 2008-1 I.R.B.229 2007-8 Superseded by Rev. Proc. 2008-8, 2008-1 I.R.B.233 2007-26 Obsoleted in part by Rev. Proc. 2008-17, 2008-10 I.R.B.549 2007-31 Obsoleted in part by Rev. Proc. 2008-19, 2008-11 I.R.B.594 2007-39 Superseded by Rev. Proc. 2008-3, 2008-1 I.R.B.110 1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2007–27 through 2007–52 is in Internal Revenue Bulletin 2007–52, dated December 26, 2007. June 9, 2008iv2008–23 I.R.B. Revenue Procedures— Continued: 2007-51 Superseded by Rev. Proc. 2008-30, 2008-23 I.R.B.1056 2007-52 Superseded by Rev. Proc. 2008-9, 2008-2 I.R.B.258 2008-13 Corrected by Ann. 2008-15, 2008-9 I.R.B.511 Revenue Rulings: 56-127 Obsoleted by T.D. 9391, 2008-20 I.R.B.945 58-612 Clarified and amplified by Rev. Rul. 2008-15, 2008-12 I.R.B.633 64-250 Amplified by Rev. Rul. 2008-18, 2008-13 I.R.B.674 89-42 Modified and superseded by Rev. Rul. 2008-17, 2008-12 I.R.B.626 92-19 Supplemented in part by Rev. Rul. 2008-19, 2008-13 I.R.B.669 97-31 Modified and superseded by Rev. Rul. 2008-17, 2008-12 I.R.B.626 2001-48 Modified and superseded by Rev. Rul. 2008-17, 2008-12 I.R.B.626 2005-28 Clarified and superseded by Rev. Rul. 2008-26, 2008-21 I.R.B.985 2007-4 Supplemented and superseded by Rev. Rul. 2008-3, 2008-2 I.R.B.249 2008-22 Modified by Ann. 2008-46, 2008-20 I.R.B.983 Treasury Decisions: 8697 Corrected by Ann. 2008-38, 2008-17 I.R.B.851 9273 Corrected by Ann. 2008-33, 2008-16 I.R.B.826 9362 Corrected by Ann. 2008-9, 2008-7 I.R.B.444 Ann. 2008-12, 2008-7 I.R.B.446 Treasury Decisions— Continued: 9363 Corrected by Ann. 2008-10, 2008-7 I.R.B.445 9368 Corrected by Ann. 2008-29, 2008-15 I.R.B.786 Ann. 2008-30, 2008-16 I.R.B.825 9375 Corrected by Ann. 2008-16, 2008-9 I.R.B.511 9386 Corrected by Ann. 2008-35, 2008-17 I.R.B.849 2008–23 I.R.B.vJune 9, 2008 June 9, 20082008–23 I.R.B. INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. 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