Internal Revenue Bulletin: 2004-44 |
November 1, 2004 |
Table of Contents
- Part 1 Introduction to Substitute Forms
- Section 1.1 - Overview of Revenue Procedure 2004-62
- Section 1.2 - IRS Contacts
- Section 1.3 - What's New
- Section 1.4 - Definitions
- 1.4.1 Substitute Form
- 1.4.2 Printed/Preprinted Form
- 1.4.3 Preprinted Pin-Fed Form
- 1.4.4 Computer Prepared Substitute Form
- 1.4.5 Computer Generated Substitute Tax Return or Form
- 1.4.6 Manually Prepared Form
- 1.4.7 Graphics
- 1.4.8 Acceptable Reproduced Form
- 1.4.9 Supporting Statement (Supplemental Schedule)
- 1.4.10 Specific Form Terms
- 1.4.11 Format
- 1.4.12 Sequence
- 1.4.13 Line Reference
- 1.4.14 Item Caption
- 1.4.15 Data Entry Field
- 1.4.16 Advance Draft
- Section 1.5 - Agreement
- Part 2 General Guidelines for Submissions and Approvals
- Section 2.1 - General Specifications for Approval
- Section 2.2 - Highlights of Permitted Changes and Requirements
- Section 2.3 - Vouchers
- Section 2.4 - Restrictions on Changes
- Section 2.5 - Guidelines for Obtaining IRS Approval
- 2.5.1 Basic Requirements
- 2.5.2 Conditional Approval Based on Advanced Drafts
- 2.5.3 Submission Procedures
- 2.5.4 Approving Offices
- 2.5.5 IRS Review of Software Programs, etc.
- 2.5.6 When To Send Proposed Substitutes
- 2.5.7 Accompanying Statement
- 2.5.8 Approval/Non- Approval Notice
- 2.5.9 Duration of Approval
- 2.5.10 Limited Continued Use of an Approved Change
- 2.5.11 When Approval Is Not Required
- 2.5.12 Continuous Use Forms
- 2.5.13 Internet Program Chart
- 2.5.14 Required Copies
- 2.5.15 Requestor's Responsibility
- 2.5.16 Source Code
- Section 2.6 - Office of Management and Budget (OMB) Requirements for All Substitute Forms
- Part 3 Physical Aspects and Requirements
- Section 3.1 - General Guidelines for Substitute Forms
- Section 3.2 - Paper
- Section 3.3 - Printing
- 3.3.1 Printing Medium
- 3.3.2 Legibility
- 3.3.3 Type Font
- 3.3.4 Print Spacing
- 3.3.5 Image Size
- 3.3.6 Title Area Changes
- 3.3.7 Remove Government Printing Office Symbol and IRS Catalog Number
- 3.3.8 Printing on One Side of Paper
- 3.3.9 Photocopy Equipment
- 3.3.10 Reproductions
- 3.3.11 Removal of Instructions
- Section 3.4 - Margins
- Section 3.5 - Examples of Approved Formats
- Section 3.6 - Miscellaneous Information for Substitute Forms
- Part 4 Additional Resources
- Section 4.1 - Guidance From Other Revenue Procedures
- Section 4.2 - Ordering Publications
- Section 4.3 - Electronic Tax Products
- Section 4.4 - Federal Tax Forms on CD-ROM
- Part 5 Requirements for Specific Tax Returns
- Section 5.1 - Tax Returns (Form 1040, 1040A, 1120, etc.)
- Section 5.2 - Changes Permitted to Graphics (Forms 1040A and 1040)
- Section 5.3 - Changes Permitted to Form 1040A Graphics
- Section 5.4 - Changes Permitted to Form 1040 Graphics
- Part 6 Format and Content of Substitute Returns
- Section 6.1 - Acceptable Formats for Substitute Forms and Schedules
- Section 6.2 - Additional Instructions for All Forms
- Part 7 Miscellaneous Forms and Programs
- Section 7.1 - Specifications for Substitute Schedules
K-1
- 7.1.1 Requirements for Schedules K-1 That Accompany Forms 1041, 1065, 1065-B, and 1120S
- 7.1.2 Special Requirements for Recipient Copies of Schedules K-1
- 7.1.3 Requirements for Schedules K-1 with Two-Dimensional (2-D) Bar Codes
- 7.1.4 Approval Process for Bar-Coded Schedules K-1
- 7.1.5 Procedures for Reducing Testing Time
- Section 7.2 - Procedures for Printing IRS Envelopes
- Section 7.3 - Procedures for Substitute Forms 5471 and 5472
- Part 8 Alternative Methods of Filing
- Section 8.1 - Forms for Electronically Filed Returns
- Section 8.2 - Effect on Other Documents
- Exhibits A-F. Samples of Preferred Formats for Substitute Forms
- Exhibit G - Checklist of IRS Substitute Forms
- Exhibit H - List of Forms Referred to in the Revenue Procedure
The purpose of this revenue procedure is to provide guidelines and general
requirements for the development, printing, and approval of substitute tax
forms. Approval will be based on these guidelines. After review and approval,
submitted forms will be accepted as substitutes for official IRS forms.
Certain unique specialized forms require the use of other additional
publications to supplement this publication. See Part 4.
The IRS accepts quality substitute tax forms that are consistent with the official forms and do not have an adverse impact on our processing. The IRS Substitute Forms Unit administers the formal acceptance and processing of these forms nationwide. While this program deals primarily with paper documents, it also reviews for approval other processing and filing forms such as those used in electronic filing.
Only those substitute forms that comply fully with the requirements
set forth are acceptable. Exhibit H lists the forms mentioned in this document,
their titles, and where their references are made. This revenue procedure
is updated as required to reflect pertinent tax year form changes and to meet
processing and/or legislative requirements.
The following types of forms are covered by this revenue procedure:
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IRS tax forms and their related schedules.
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Worksheets as they appear in instruction packages.
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Applications for permission to file returns electronically and forms used as required documentation for electronically filed returns.
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Powers of Attorney.
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Over-the-counter estimated tax payment vouchers.
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Forms and schedules relating to partnerships, exempt organizations, and employee plans.
The following types of forms are not covered by this revenue procedure:
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W-2 and W-3 (see Publication 1141 for information on these forms).
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W-2c and W-3c (see Publication 1223 for information on these forms).
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1096, 1098 series, 1099 series, 5498 series, W-2G, and 1042-S (see Publication 1179 for information on these forms).
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Federal Tax Deposit (FTD) coupons, which may not be reproduced.
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Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced.
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Forms 5500, 5500-EZ, and associated schedules (see the Department of Labor website (www.dol.gov) for information on these forms).
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Requests for information or documentation initiated by the IRS.
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Forms used internally by the IRS.
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State tax forms.
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Forms developed outside the IRS.
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General and Specific Instructions are not reviewed by the Substitute Forms Program Unit.
Send your substitute forms for approval to the following offices (Do not send forms with taxpayer data):
Form | Office and Address |
---|---|
FINCEN Form 101, FINCEN Form 102, FINCEN Form 103, FINCEN Form 103-N, FINCEN Form 104, 8300, TD F 90-22.1, TD F 90-22.47, TD F 90-22.53, TD F 90-22.55, TD F 90-22.56 | IRS Computing Center BSA Compliance Branch P.O. Box 32063 Detroit, MI 48232-0063 |
5500, 5500-EZ, and Schedules A through E, G, H, I, P, R, SSA, and T for Form 5500 | Check EFAST information at the Department of Labor’s website at www.efast.dol.gov |
All others (except W-2, W-2c, W-3, W-3c, 1096, 1098, 1099, 5498, W-2G, and 1042-S) | Internal Revenue Service Attn: Substitute Forms Program SE:W:CAR:MP:T:T:SP 1111 Constitution Avenue, NW Room 6406 Washington, DC 20224 |
In addition, the Substitute Forms Program Unit can be contacted via email at *taxforms@irs.gov . Please enter “Substitute Forms” on the subject line. Use this email address only to inquire about forms covered by this revenue procedure. Do not attach graphic files for approval with email.
For questions about Forms W-2 and W-3, refer to IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3. For Forms W-2c and W-3c, refer to IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c. For Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S, refer to IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S.
The following changes have been made to the Revenue Procedure for 2004:
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The Substitute Forms Program is now accepting substitute forms submissions via email. The email address is *taxforms@irs.gov . See Section 2.1.2.
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The Substitute Forms Program office symbols have changed to SE:W:CAR:MP:T:T:SP. The room number has changed to 6406.
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Exhibits D through G have been rearranged.
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The formats for Schedules K-1 of Forms 1065 and 1120S have significantly changed for 2004. Because Publication 1167 is printed before the forms become finalized, draft copies are provided in the exhibits (see Exhibits D, E, and F). Before releasing their substitute forms, software vendors are responsible for making any subsequent changes made to the final official IRS forms after the draft forms have been posted.
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The requirements for Schedules K-1 of Forms 1041, 1065, 1065-B and 1120S have changed. Among other changes, all lines must now be included on the substitute schedules. (See Section 7.1 and Exhibits D, E and F).
A tax form (or related schedule) that differs in any way from the official
version and is intended to replace the form that is printed and distributed
by the IRS. This term also covers those approved substitute forms exhibited
in this revenue procedure.
A form produced using conventional printing processes, or a printed
form which has been reproduced by photocopying or a similar process.
A printed form that has marginal perforations for use with automated
and high speed printing equipment.
A preprinted form in which the taxpayer's tax entry information has
been inserted by a computer, computer printer, or other computer type equipment
such as word processing equipment.
A tax return or form that is entirely designed and printed using a computer printer such as a laser printer, etc., on plain white paper. This return or form must conform to the physical layout of the corresponding IRS form, although the typeface may differ. The text should match the text on the officially printed form as closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.
Exception. All jurat (perjury statements)
must be reproduced verbatim.
A preprinted reproduced form in which the taxpayer's tax entry information
is entered by an individual using a pen, pencil, typewriter, or other non-automated
equipment.
Parts of a printed tax form that are not tax amount entries or required
information. Examples of graphics are line numbers, captions, shadings, special
indicators, borders, rules, and strokes created by typesetting, photographics,
photocomposition, etc.
A document providing detailed information to support a line entry on an official or approved substitute form and filed with (attached to) a tax return.
Note. A supporting statement is not
a tax form and does not take the place of an official form unless specifically
permitted elsewhere in this procedure.
The following specific terms are used throughout this revenue procedure
in reference to all substitute forms: format, sequence, line reference, item
caption, and data entry field.
Sequence is an integral part of the total format requirement. The substitute
form should show the same numeric and logical placement order of data, as
shown on the official form.
The line numbers, letters, or alphanumerics used to identify each captioned
line on an official form. These line references are printed to the immediate
left of each caption or data entry field.
Designated areas for the entry of data such as dollar amounts, quantities,
responses and checkboxes, etc.
A draft version of a new or revised form may be posted to the IRS website for information purposes. Substitute forms may be submitted based on these advance drafts, but any company that receives forms approval based on these early drafts is responsible for monitoring and revising forms to mirror any revisions in the final forms provided by the IRS.
Any person or company who uses substitute forms and makes all or part of the changes specified in this revenue procedure agrees to the following stipulations:
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The IRS presumes the changes are made in accordance with these procedures and will not be disruptive to the processing of the tax return.
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Should any of the changes prove to be not exactly as described, and as a result become disruptive to the IRS’s processing of the tax return, the person or company agrees to accept the determination of the IRS as to whether or not the form may continue to be used during the filing season.
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The person or company agrees to work with the IRS in correcting noted deficiencies. Notification of deficiencies may be made by any combination of fax, letter, email, or phone contact and may include the return of unacceptable forms for re-submission of acceptable forms.
If you produce any tax forms using IRS guidelines on permitted changes, you can generate your own substitutes without further approval. If your changes are more extensive, you must get IRS approval before using substitute forms. These changes include the use of typefaces and sizes other than those found on the official form and the condensing of line item descriptions to save space.
The Substitute Forms Program is now accepting substitute forms submissions via email. The email address is *taxforms@irs.gov . Please include “PDF Submissions” on the subject line.
Follow these guidelines:
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Your submission should include all the forms you wish to submit in one attached pdf file. Do not email each form individually.
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Emailing pdf submissions will not expedite review and approval. The pdf submissions will be assigned a control number and put in queue along with mailed-in paper submissions.
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Small (fewer than 15 forms), rather than large submissions should expedite processing.
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Optimize pdf files before submitting.
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The maximum allowable email attachment is 2.5 megabytes.
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The Substitute Forms Unit will accept zip files.
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An approval checklist listing the forms you are submitting should always be included in the pdf file along with the forms.
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To alleviate delays during the peak time of
September through December, submit advance draft forms as early as possible.
If the guidelines are not followed, you may need to resubmit.
In addition to submitting forms via email, you may continue to send your submissions to:
Internal Revenue Service
SE:W:CAR:MP:T:T:SP
Attn: Substitute Forms Program
1111 Constitution Avenue, NW
Room 6406
Washington, DC 20224
Schedules are considered to be an integral part of a complete tax return.
A schedule may be included as part of a form or printed separately.
Form 706, United States Estate (and Generation-Skipping Transfer)
Tax Return, is an example of this situation. Its Schedules A through
U have pages numbered as part of the basic return. For Form 706 to be approved,
the entire form including Schedules A through U must be submitted.
However, Schedules 1, 2, and 3 of Form 1040A are examples of schedules
that can be submitted separately. Although printed by the IRS as a supplement
to Form 1040A, none of these schedules are required to be filed with Form
1040A. These schedules may be separated from Form 1040A and submitted as substitute
forms.
The IRS is continuing a program to identify and contact tax return preparers,
forms developers, and software publishers who use or distribute unapproved
forms that do not conform to this revenue procedure. The use of unapproved
forms hinders the processing of the returns.
Official IRS tax forms are supplied by the IRS. These forms may be provided in the taxpayer’s tax package or over-the-counter. Forms can also be picked up at many IRS offices, post offices, or libraries, and are available on CD-ROM and on-line via the Internet.
There are methods of reproducing IRS printed tax forms suitable for use as substitutes without prior approval.
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You can photocopy most tax forms and use them instead of the official ones. The entire substitute form, including entries, must be legible.
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You can reproduce any current tax form as cut sheets, snap sets, and marginally punched, pin-fed forms as long as you use an official IRS version as the master copy.
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You can reproduce a “signature form” as a valid substitute form. Many tax forms (including returns) have a taxpayer signature requirement as part of the form layout. The jurat/perjury statement/signature line areas must be retained and worded exactly as on the official form. The requirement for a signature by itself does not prohibit a tax form from being properly computer-generated.
All payment vouchers (Forms 940-V, 940-EZ(V), 941-V, 943-V, 945-V, 1040-V,
and 2290-V) must be reproduced in conjunction with their forms. Substitute
vouchers must be the same size as the officially printed vouchers. Vouchers
that are prepared for printing on a laser printer may include a scan line.
NNNNNNNNN | AA | AAAA | NN | N | NNNNNN | NNN | |
Item: | A | B | C | D | E | F | G |
A. | Social Security Number/Employer Identification Number (SSN/EIN) has 9 numeric spaces. | ||||||
B. | Check Digits have 2 alpha spaces. | ||||||
C. | Name Control has 4 alphanumeric spaces. | ||||||
D. | Master File Tax (MFT) Code has 2 numeric spaces (see below). | ||||||
E. | Taxpayer Identification Number (TIN) Type has 1 numeric space (see below) | ||||||
F. | Tax Period has six numeric spaces in year/month format (YYYYMM). | ||||||
G. | Transaction Code has 3 numeric spaces. |
Code Number for Forms:
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1040 family - 30;
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940/940-EZ - 10;
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941 - 01;
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943 - 11;
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945 - 16; and
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2290 - 60.
Type Number for:
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Form 1040 family - 0; and
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Forms 940, 940-EZ, 941, 943, 945, and 2290 - 2.
The voucher size must be exactly 8.0′′ x 3.25′′
(Forms 1040-ES and 1041-ES must be 7.625′′ x 3.0′′).
The document scan line must be vertically positioned 0.25 inches from the
bottom of the scan line to the bottom of the voucher. The last character on
the right of the scan line must be placed 3.5 inches from the right leading
edge of the document. The minimum required horizontal clear space between
characters is .014 inches. The line to be scanned must have a clear band 0.25
inches in height from top to bottom of the scan line, and from border to border
of the document. “Clear band” means no printing except for dropout
ink.
You cannot, without prior IRS approval, change any IRS tax form or use your own (non-approved) versions including graphics, unless specifically permitted by this revenue procedure.
You cannot adjust any of the graphics on Forms 1040, 1040A, and 1040EZ (except in those areas specified in Part 5 of this revenue procedure) without prior approval from the IRS Substitute Forms Unit.
You cannot use your own preprinted label on tax returns filed with the IRS unless you fully comply with the criteria specified in the section in this revenue procedure on the use of pre-addressed IRS labels.
Preparers who submit substitute privately designed, privately printed,
computer generated, or computer prepared tax forms must develop these substitutes
using the guidelines established in this part. These forms, unless excepted
by the revenue procedure, must be approved by the IRS before being filed.
The IRS cannot grant final approval of your substitute form until the official form has been published. However, the IRS has established a location on the Internet for posting advance draft forms. This site can be reached in the “Tax Professionals” area at:
www.irs.gov/taxpros/lists/0,,id=97782,00.html
We encourage submission of proposed substitutes of these advance draft forms, and will grant conditional approval based solely on these early drafts. These advance drafts are subject to significant change before forms are finalized. If these advance drafts are used as the basis for your substitute forms, you will be responsible for subsequently updating your final forms to agree with the final official version. These revisions need not be submitted for further approval.
Note. Approval of forms based on advance
drafts will not be granted after the final version of an official form is
published.
Please follow these general guidelines when submitting substitute forms for approval:
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Any alteration of forms must be within the limits acceptable to the IRS. It is possible that, from one filing period to another, a change in law or a change in internal need (processing, audit, compliance, etc.) may change the allowable limits for the alteration of the official form.
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When specific approval of any substitute form (other than those specified in Part 1, Section 1.2 - IRS Contacts) is desired, a sample of the proposed substitute form should be forwarded for consideration by letter to the Substitute Forms Unit at the address shown in Section 1.2.
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To expedite multiple forms approval, we prefer that your proposed forms be submitted in separate sets by return. For example, Forms 1040 and their normally related schedules or attachments should be submitted separately from Forms 1120 and 1065 if possible. Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more than one type of return (for example, 1040, 1041, 1120, etc.) should be submitted only once for approval, regardless of the number of different tax returns with which they may be associated. Also, all pages of multi-page forms or returns should be submitted in the same package.
Because only the Substitute Forms Unit is authorized to approve substitute
forms, unnecessary delays may occur if forms are sent to the wrong office.
The Substitute Forms Unit may then coordinate the response with the initiator
responsible for revising that particular form. Such coordination may include
allowing the initiator to officially approve the form. No IRS office is authorized
to allow deviations from this revenue procedure.
The IRS does not review or approve the logic of specific software programs, nor does the IRS confirm the calculations on the forms produced by these programs. The accuracy of the program remains the responsibility of the software package developer, distributor, or user.
The Substitute Forms Unit is primarily concerned with the pre-filing
quality review of the final forms, produced by whatever means, that are expected
to be processed by IRS field offices. For these, you should submit forms without
including any taxpayer information such as names, addresses, monetary amounts,
etc.
Proposed substitutes, which are required to be submitted per this revenue
procedure, should be sent as much in advance of the filing period as possible.
This is to allow adequate time for analysis and response.
When submitting sample substitutes, you should include an accompanying statement that lists each form number and its changes from the official form (position, arrangement, appearance, line numbers, additions, deletions, etc.). With each of the items you should include a detailed reason for the change.
When requesting approval, please include a checklist. Checklists expedite
the approval process. The checklist may look like the example in Exhibit G
displayed in the back of this procedure or may be one of your own design.
Please include your fax number on the checklist.
The Substitute Forms Unit will fax the checklist or an approval letter to the originator if a fax number has been provided, unless:
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The requester has asked for a formal letter; or
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Significant corrections to the submitted forms are required.
Notice of approval may contain qualifications for use of the substitutes.
Notices of unapproved letters may specify the changes required for approval,
and may also require re-submission of the form(s) in question. Telephone contact
is used when possible.
Most signature tax returns and many of their schedules and related forms have the tax (liability) year printed in the upper right corner. Approvals for these forms are usually good for one calendar year (January through December of the year of filing). Quarterly tax forms in the 940 series and Form 720 require approval for any quarter in which the form has been revised.
Because changes are made to a form every year, each new filing season
generally requires a new submission of a form. Very rarely is updating the
preprinted year the only change made to a form.
Limited changes approved for one tax year may be allowed for the same form in the following tax year. Examples of such limitations and requirements are the use of abbreviated words, revised form spacing, compressed text lines, and shortened captions, etc., which do not change the consistency of lines or text on the official forms.
If substantial changes are made to the form, new substitutes must be
submitted for approval. If only minor editorial changes are made to the form,
it is not subject to review. It is the responsibility of each vendor who has
been granted permission to use substitute forms to monitor and revise forms
to mirror any revisions to official forms made by the Service. If there are
any questions, please contact the Substitute Forms Unit.
If you received written approval for a specific change on a form last year, such as deleting the vertical lines used to separate dollars and cents, you may make the same change this year if the item is still present on the official form.
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The new substitute form does not have to be sent to the IRS and written approval is not required.
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However, the new substitute form must conform to the official current year IRS form in other respects: date, Office of Management and Budget (OMB) approval number, attachment sequence number, Paperwork Reduction Act Notice statement, arrangement, item caption, line number, line reference, data sequence, etc.
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The new substitute must also comply with this revenue procedure. The procedure may have eliminated, added to, or otherwise changed the guideline(s) that affected the change approved last year.
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An approved change is authorized only for the period from a prior tax year substitute form to a current tax year substitute form.
Exception. Forms with temporary, limited,
or interim approvals (or with approvals that state a change is not allowed
in any other tax year) are subject to review in subsequent years.
Forms without preprinted tax years are called “continuous use”
forms. Continuous use forms are revised when a legislative change affects
the form or a change will facilitate processing. These forms may have revision
dates that are valid for longer than one year.
A chart of print dates (for annual and quarterly forms) and most current
revision dates (for continuous use forms) will be maintained on the Internet.
For further details, see Section 4.3.1 on access for the Internet and the
Official Forms Release Schedule.
Generally, you must send us one copy of each form being submitted for
approval. However, if you are producing forms for different computer systems
(for example, IBM compatible vs. Macintosh) or different types of printers
(for example, laser vs. inkjet), and these forms differ significantly in appearance,
submit one copy for each type of system or printer.
Following receipt of an initial approval for a substitute forms package or a software output program to print substitute forms, it is the responsibility of the originator (designer or distributor) to provide client firms or individuals with forms that meet the IRS’s requirements for continuing acceptability. Examples of this responsibility include:
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Using the prescribed print paper, font size, legibility, state tax data deletion, etc.
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Informing all users of substitute forms of the legal requirements of the Paperwork Reduction Act Notice, which is generally found in the instructions for the official IRS forms.
The Substitute Forms Unit, SE:W:CAR:MP:T:T:SP, will assign a unique source code to each firm that submits substitute paper forms for approval. This source code will be a permanent identifier that should be used on every submission by a particular firm.
The source code:
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Consists of three alpha characters.
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Should be printed at the bottom left margin area on the first page of every approved substitute form.
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Should not be used on optically scanned (OCR) forms.
There are legal requirements of the Paperwork Reduction Act of 1995 (The Act). Public Law 104-13 requires that:
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OMB approve all IRS tax forms that are subject to the Act,
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Each IRS form contains (in the upper right corner) the OMB number, if any, and
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Each IRS form (or its instructions) states why the IRS needs the information, how it will be used, and whether or not the information is required to be furnished.
This information must be provided to every user of official or substitute
tax forms.
On forms that have been assigned OMB numbers:
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All substitute forms must contain in the upper right corner the OMB number that is on the official form.
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The required format is: OMB No. 1545-XXXX (Preferred) or OMB # 1545-XXXX (Acceptable).
You must inform the users of your substitute forms of the IRS use and collection requirements stated in the instructions for official IRS forms.
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If you provide your users or customers with the official IRS instructions, each form must retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the lower left corner of the forms).
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This notice reads, in part, “We ask for the information on this form to carry out the Internal Revenue laws of the United States...”
Note. If the IRS instructions are not
provided to users of your forms, the exact text of the Paperwork Reduction
Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice)
must be furnished separately or on the form.
The OMB number and the Paperwork Reduction Act Notice, or references
to it, may be found printed on an official form (or its instructions). The
number and the notice are included on the official paper format and in other
formats produced by the IRS (for example, compact disc (CD) or Internet download).
The official form is the standard. Because a substitute form is a variation
from the official form, you should know the requirements of the official form
for the year of use before you modify it to meet your needs. The IRS provides
several means of obtaining the most frequently used tax forms. These include
the Internet, fax-on-demand, and CD-ROM (see Part 4).
Each form must follow the design of the official form as to format arrangement,
item caption, line numbers, line references, and sequence.
State tax information must not appear on the federal tax return, associated
form, or schedule that is filed with the IRS. Exceptions occur when amounts
are claimed on, or required by, the federal return (for example, state and
local income taxes, on Schedule A of Form 1040).
IF a form is to be... | THEN... | |
---|---|---|
Manually prepared | 1. | The column must have a vertical line or some type of indicator in the amount field to separate dollars from cents if the official form has a vertical line. |
2. | The cents column must be at least 3/10′′ wide. | |
Computer generated | 1. | Vertically align the amount entry fields where possible. |
2. | Use one of the following amount formats: | |
a) 0,000,000. | ||
b) 0,000,000.00 | ||
Computer prepared | 1. | You may remove the vertical line in the amount field that separates dollars from cents. |
2. | Use one of the following amount formats: | |
a) 0,000,000. | ||
b) 0,000,000.00 |
Many individual income tax forms have a required “attachment sequence number” located just below the year designation in the upper right corner of the form. The IRS uses this number to indicate the order in which forms are to be attached to the tax return for processing. Some of the attachment sequence numbers may change from year to year.
On computer prepared forms:
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The sequence number may be printed in no less than 12-point boldface type and centered below the form’s year designation.
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The sequence number may also be placed following the year designation for the tax form and separated with an asterisk.
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The actual number may be printed without labeling it the “Attachment Sequence Number.”
On Forms 1040EZ, 1040A, 1040, and 1120, etc., the “Paid Preparer's
Use Only” area may not be rearranged or relocated. You may, however,
add three extra lines to the paid preparer’s address area without prior
approval. This applies to other tax forms as well.
If developing software or forms for use by others, please inform your customers/clients that the order in which the forms are arranged may affect the processing of the package. A return must be arranged in the order indicated below.
IF the form is... | THEN the sequence is... | |
---|---|---|
1040 | • Form 1040. • Schedules and forms in attachment sequence number order. | |
Any other tax return (Form 1120, 1120S, 1065, 1041, etc.) | • The tax returns. • Directly associated schedules (Schedule D, etc.). • Directly associated forms. • Additional schedules in alphabetical order. • Additional forms in numerical order. |
Supporting statements should then follow in the same sequence as the forms they support. Additional information required should be attached last.
In this way, the forms are received in the order in which they must be processed. If you do not send returns to us in order, processing may be delayed.
The paper must be:
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Chemical wood writing paper that is equal to or better than the quality used for the official form,
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At least 18 pound (17′′ x 22′′, 500 sheets), or
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At least 50 pound offset book (25′′ x 38′′, 500 sheets).
There are several kinds of paper prohibited for substitute forms. These are:
1. | Carbon-bonded paper | |
2. | Chemical transfer paper except when the following specifications are met: | |
a. | Each ply within the chemical transfer set of forms must be labeled. | |
b. | Only the top ply (ply one and white in color), the one that contains chemical on the back only (coated back), may be filed with the IRS. |
A set containing three plies would be constructed as follows: ply one (coated back), “Federal Return, File with IRS”; ply two (coated front and back), “Taxpayer's copy”; and ply three (coated front), “Preparer’s copy.”
The file designation, “Federal Return, File with IRS” for ply one, must be printed in the bottom right margin (just below the last line of the form) in 12- point boldface type.
It is not mandatory, but recommended, that the file designation “Federal
Return, File with IRS” be printed in a contrasting ink for visual emphasis.
We prefer that the color and opacity of paper substantially duplicates
that of the original form. This means that your substitute must be printed
in black ink and may be on white or on the colored paper the IRS form is printed
on. Forms 1040A and 1040 substitute reproductions may be in black ink without
the colored shading. The only exception to this rule is Form 1041-ES, which
should always be printed with a very light gray shading in the color screened
area. This is necessary to assist us in expeditiously separating this form
from the very similar Form 1040-ES.
The private printing of all substitute tax forms must be by conventional
printing processes, photocopying, computer graphics, or similar reproduction
processes.
All forms must have a high standard of legibility as to printing, reproduction,
and fill-in matter. Entries of taxpayer data may be no smaller than eight
points. The IRS reserves the right to reject those with poor legibility. The
ink and printing method used must ensure that no part of a form (including
text, graphics, data entries, etc.) develops “smears” or similar
quality deterioration. This includes any subsequent copies or reproductions
made from an approved master substitute form, either during preparation or
during IRS processing.
Many federal tax forms are printed using “Helvetica” as
the basic type font. We request that you use this type font when composing
substitute forms.
Substitute forms should be printed using a 6 lines/inch vertical print
option. They should also be printed horizontally in 10 pitch pica (that is,
10 print characters per inch) or 12 pitch elite (that is, 12 print positions
per inch).
The image size of a printed substitute form should be as close as possible
to that of the official form. You may omit any text on both computer prepared
and computer generated forms that is solely instructional.
To allow a large top margin for marginal printing and more lines per
page, the title line(s) for all substitute forms (not including the form’s
year designation and sequence number, when present), may be photographically
reduced by 40 percent or reset as one line of type. When reset as one line,
the type size may be no smaller than 14-point. You may omit “Department
of the Treasury, Internal Revenue Service” and all reference to instructions
in the form’s title area.
When privately printing substitute tax forms, the Government Printing
Office (GPO) symbol and/or jacket number must be removed. In the same place,
using the same type size print the Employer Identification Number (EIN), the
Social Security Number (SSN) of the printer or designer, or the IRS assigned
source code. (We prefer this last number be printed in the lower left area
of the first page of each form.) Also, remove the IRS Catalog Number (Cat.
No.) if one is present in the bottom center margin, and the recycle symbol
if the substitute is not produced on recycled paper.
While it is preferred that both sides of the paper be used for substitutes
and reproduced forms, resulting in the same page arrangement as that of the
official form or schedule, the IRS will not reject your forms if only one
side of the paper is used.
The IRS does not undertake to approve or disapprove the specific equipment
or process used in reproducing official forms. Photocopies of forms must be
entirely legible and satisfy the conditions stated in this and other revenue
procedures.
Reproductions of official forms and substitute forms that do not meet
the requirements of this revenue procedure may not be filed instead of the
official forms. Illegible photocopies are subject to being returned to the
filer for re-submission of legible copies.
You may remove references to instructions. No prior approval is needed.
Exception. The words “For Paperwork
Reduction Act Notice, see instructions” must be retained or a similar
statement provided on each form. Some forms refer the taxpayer to a page number
in the instructions for information on the Paperwork Reduction Act Notice.
The format of a reproduced tax form when printed on the page must have margins on all sides at least as large as the margins on the official form. This allows room for IRS employees to make necessary entries on the form during processing.
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A 1/2-inch to 1/4-inch margin must be maintained across the top, bottom, and both sides of all substitute forms.
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The marginal, perforated strips containing pin-fed holes must be removed from all forms prior to filing with the IRS.
Prior approval is not required for the marginal printing allowed when printed on an official form or on a photocopy of an official form.
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With the exception of the actual tax forms (for example, Forms 1040, 1040A, 1040EZ, 1120, 940, 941, etc.), you may print in the left vertical margin and in the left half of the bottom margin.
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Printing is never allowed in the top right margin of the tax form (for example, Forms 1040, 1040A, 1040EZ, 1120, 940, 941, etc.). The Service uses this area to imprint a Document Locator Number for each return. There are no exceptions to this requirement.
Three sets of exhibits (Exhibits A-1, 2; B-1, 2; and C-1, 2) are at the end of this revenue procedure as examples of how these guidelines may be used. Vertical spacing is six (6) lines to the inch. A combination of upper-case and lower-case print font is acceptable in producing substitute forms.
The same logic may be applied to any IRS form that is normally reproducible as a substitute form, with the exception of the tax return forms as discussed elsewhere. These exhibits may be from a prior year and are not to be used as current substitute forms.
To be acceptable for filing, a substitute form must print out in a format
that will allow the filer to follow the same instructions as for filing official
forms. These instructions are in the taxpayer’s tax package or in the
related form instructions. The form must be on the appropriately sized paper,
legible, and include a jurat, where one appears on the published form.
The IRS has received returns produced by software packages with approved output where either the form heading was altered or the lines were spaced irregularly. This produces an illegible or unrecognizable return or a return with the wrong number of pages. We realize that many of these problems are caused by individual printer differences but they may delay input of return data and, in some cases, generate correspondence to the taxpayer. Therefore, in the instructions to the purchasers of your product, both individual and professional, please stress that their returns will be processed more efficiently if they are properly formatted. This includes:
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Having the correct form numbers and titles at the top of the return, and
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Submitting the same number of pages as if the form were an official IRS form with the line items on the proper pages.
If you are a practitioner filling out a return for a client or a software
publisher who prints instruction manuals, stress the use of the pre-addressed
label provided in the tax package the IRS sent to the taxpayer, when available.
The use of this label (or its precisely duplicated label information) is extremely
important for the efficient, accurate, and economical processing of a taxpayer's
return. Labeled returns indicate that a taxpayer is an established filer and
permits the IRS to automatically accelerate processing of those returns. This
results in quicker refunds, less manual review by IRS functions, and greater
accuracy in names, addresses, and postal deliveries.
If you are producing a software package that generates name and address
data onto the tax return, do not under any circumstances program either the
IRS preprinted check digits or a practitioner derived name control to appear
on any return prepared and filed with the IRS.
Guidance for the substitute tax forms not covered in this revenue procedure and the revenue procedures that govern their use are as follows:
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Revenue Procedure 2004-54, IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.
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Revenue Procedure 2004-58, IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G and 1042-S.
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Revenue Procedure 2004-63, IRS Publication 1187, Specifications for Filing Forms 1042S, Foreign Person's U.S. Source Income Subject to Withholding, Electronically or Magnetically.
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Revenue Procedure 2004-50, IRS Publication 1220, Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically or Magnetically.
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Revenue Procedure 2003-31, IRS Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.
The publications listed below are available either on the IRS website or may be ordered by calling 1-800-TAX-FORM (1-800-829-3676). Identify the requested document by IRS publication number:
-
Publication 1141, the revenue procedure on specifications for private printing of Forms W-2 and W-3.
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Publication 1167, the revenue procedure on substitute printed, computer-prepared, and computer-generated tax forms and schedules.
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Publication 1179, the revenue procedure on paper substitute information returns (Forms 1096, 1098, 1099, 5498, W-2G and 1042-S).
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Publication 1220, the revenue procedure on electronic or magnetic reporting for information returns (Forms 1098, 1099 series, 5498, and W-2G).
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Publication 1223, the revenue procedure on substitute Forms W-2c and W-3c.
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Publication 1239, Specifications for Filing Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, Magnetically/Electronically.
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Publication 1245, electronic and magnetic reporting for Forms W-4.
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Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns. (This is an annual publication; tax year is subject to change).
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Publication 1345-A, Filing Season Supplement For Authorized IRS e-file Providers. This publication, printed in the late fall, supplements Publication 1345.
If you are mailing your order, the address to use is determined by your location.
IF you live in the... | THEN mail your order to... |
---|---|
Western United States | Western Area Distribution Center Rancho Cordova, CA 95743-0001 |
Central United States | Central Area Distribution Center P.O. Box 8903 Bloomington, IL 61702-8903 |
Eastern United States or a foreign country | Eastern Area Distribution Center P.O. Box 85074 Richmond, VA 23261-5074 |
Copies of tax forms with instructions, publications, and other tax-related materials may be obtained via the Internet at www.irs.gov.
The most frequently requested tax forms, instructions, and other information
are available through IRS Tax Fax at 703-368-9694. Call from your fax machine
and follow the voice prompts. Your request will be transmitted directly back
to you. Each call is limited to requesting three items. Users pay the telephone
line charges.
The IRS website provides an Official Forms Release Schedule for the official forms released for use by taxpayers. The schedule has three parts:
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Anticipated print dates of annual returns,
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Anticipated print dates of quarterly returns, and
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Last revision dates for continuous-use only forms.
The site address is www.irs.gov/formspubs/article/0,,id=103641,00.html. The site will be updated weekly during peak printing periods and as necessary at other times. The planned dates are subject to change.
The CD-ROM contains over 3,000 tax forms and publications for small businesses, return preparers, and others who frequently need current or prior year tax products. Most current tax forms on the CD-ROM may be filled in electronically, then printed out for submission and saved for recordkeeping. Other products on the CD-ROM include the Internal Revenue Bulletins, Tax Supplements, and Internet resources for the tax professional with links to the World Wide Web.
All necessary software to view the files must be installed from the
CD-ROM. Software for Adobe Acrobat Reader is included on the disk. The software
will run under Windows 95/98/NT and Macintosh System 7.5 and later versions
of these programs. All products are presented in Adobe's Portable Document
Format (PDF). In addition, tax publications are provided in the Hyper Text
Markup Language (HTML).
For system requirements, contact the National Technical Information Service (NTIS) help desk at 703-487-4608. Prices are subject to change.
The cost of the CD if purchased via the Internet at http://www.irs.gov/cdorders from NTIS, is $22 (with no handling fee).
If purchased using the following methods, the cost for each CD is $22 (plus a $5 handling fee). These methods are:
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By phone - 1-877-CDFORMS (1-877-233-6767)
-
By fax - 703-605-6900
-
By mail using the order form contained in IRS Publication 1045 (Tax Professionals Program)
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By mail to:
-
National Technical Information Service
-
5285 Port Royal Road
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Springfield, VA 22161
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Tax forms (such as Forms 1040, 1040A, and 1120) require a signature and establish tax liability. Computer generated versions are acceptable under the following conditions:
-
These substitute forms must be printed on plain white paper.
-
Substitute forms must conform to the physical layout of the corresponding IRS form although the typeface may differ. The text should match the text on the officially published form as closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.
Caution. All jurat (perjury statements) must be reproduced verbatim. No text can be added, deleted, or changed in meaning. -
Various computer graphic print media such as laser printing, inkjet printing, etc., may be used to produce the substitute forms.
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The substitute form must be the same number of pages and contain the same line text as the official form.
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All substitute forms must be submitted for approval prior to their original use. You do not need approval for a substitute form if its only change is the preprinted year and you had received a prior year approval letter.
Exception. If the approval letter specifies a one time exception for your form, the next year's form must be approved.
The following are prohibited:
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Computer generated tax forms (for example, Form 1040, etc.) on lined or color barred paper.
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Tax forms that differ from the official IRS forms in a manner that makes them not standard or unable to process.
Certain changes (listed in Sections 5.2 through 5.4) are permitted to
the graphics of the form without prior approval, but these changes apply to
only acceptable preprinted forms. Changes not requiring prior approval are
good only for the annual filing period, which is the current tax year. Such
changes are valid in subsequent years only if the official form does not change.
You may make minor vertical and horizontal spacing adjustments to allow
for computer or word processing printing. This includes widening the amount
columns or tax entry areas if the adjustments comply with other provisions
stated in revenue procedures. No prior approval is needed for these changes.
The horizontal rules and instructions within the name and address area
may be removed and the entire area left blank. No line or instruction can
remain in the area. However, the statement regarding use of the IRS label
should be retained. The heavy ruled border (when present) that outlines the
name, address area, and social security number must not be removed, relocated,
expanded, or contracted.
When the name and address area is left blank, the following format must be used when printing the taxpayer's name and address. Otherwise, unless the taxpayer's preprinted label is affixed over the information entered in this area, the lines must be filled in as shown:
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1st name line (35 characters maximum).
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2nd name line (35 characters maximum).
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In-care-of name line (35 characters maximum).
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City, state (25 characters maximum), one blank character, & ZIP code.
When there is no in-care-of name line, the name and address will consist of only three lines (single filer) or four lines (joint filer). Name and address (joint filer) with no in-care-of name line:
JOHN Z. JONES
MARY I. JONES
1234
ANYWHERE ST., APT. 111
ANYTOWN, STATE 12321
Name and address (single filer) with in-care-of name line:
JOHN Z. JONES
C/O THOMAS A. JONES
4311 SOMEWHERE AVE.
SAMETOWN, STATE 54345
The vertical lines separating the format arrangement of the SSN/EIN
may be removed. When the vertical lines are removed, the SSN and EIN formats
must be 000-00-0000 or 00-0000000, respectively.
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You may remove the vertical rule that separates the dollars from the cents.
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All entries in the amount column should have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present.
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You may omit printing the cents, but all amounts entered on the form must follow a consistent format. You are strongly urged to round off the figures to whole dollar amounts, following the official form instructions.
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When several amounts are summed together, the total should be rounded off after addition (that is, individual amounts should not be rounded off for computation purposes).
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When printing money amounts, you must use one of the following formats: (a) 0,000,000.; (b) 0,000,000.00
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When there is no entry for a line, leave the line blank.
No prior approval is needed for the following changes (for use with
computer prepared forms only).
This line may be compressed horizontally (to allow for same line entry
for the name of the qualifying child) by using the following caption: “Head
of household; child’s name” (name field).
Any line with text that takes up two or more vertical lines may be compressed
to one line by using contractions, etc., and by removing instructional references.
All lines must be present and numbered in the order shown on the official
form. These lines may also be compressed.
It is not necessary to duplicate the color screening used on the official form. A substitute Form 1040A may be printed in black and white only with no color screening.
No prior approval is needed for the following changes (for use with
computer prepared forms only). Specific line numbers in the following headings
may have changed due to tax law changes.
This line may be compressed horizontally (to allow for a larger entry
area for the name of the qualifying child) by using the following caption:
“Head of household; child’s name” (name field).
The vertical lines separating columns (1) through (4) may be removed.
The captions may be shortened to allow a one line caption for each column.
Any other line with text that takes up two or more vertical lines may
be compressed to one line by using contractions, etc., and by removing instructional
references.
The fill-in portion of this line may be expanded vertically to three
lines. The amount entry box must remain a single entry.
You may change the line caption to read “Tax” and computer
print the words “Total includes tax from” and either “Form(s)
8814” or “Form 4972.” If both forms are used, print both
form numbers. This specific line number may have changed.
You may change the caption to read: “Other credits from Form”
and computer print only the form(s) that apply.
It is not necessary to duplicate the color screening used on the official
form. A substitute Form 1040 may be printed in black and white only with no
color screening.
Exhibits of acceptable formats for the schedules (A and B) usually attached to the Form 1040 and Form 2106-EZ are shown in the exhibits section of this revenue procedure.
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If your computer generated forms appear exactly like the exhibits, no prior authorization is needed.
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You may computer generate forms not shown here, but you must design them by following the manner and style of those in the exhibits section.
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Take care to observe other requirements and conditions in this revenue procedure. The IRS encourages the submission of all proposed forms covered by this revenue procedure.
The format of each substitute form or schedule must follow the format
of the official form or schedule as to item captions, line references, line
numbers, sequence, form arrangement and format, etc. Basically, try to make
the form look like the official one, with readability and consistency being
primary factors. You may use periods and/or other similar special characters
to separate the various parts and sections of the form. Do not use alpha or
numeric characters for these purposes. With the exceptions described in Section
6.1.3, all line numbers and items must be printed even though an amount is
not entered on the line.
When a line on an official form is designated by a number or a letter, that designation (reference code) must be used on a substitute form. The reference code must be printed to the left of the text of each line and immediately preceding the data entry field, even if no reference code precedes the data entry field on the official form. If an entry field contains multiple lines and shows the line references once on the left and right side of the form, use the same number of line references on the substitute form.
In addition, the reference code that is immediately before the data
field must either be followed by a period or enclosed in parentheses. There
also must be at least two blank spaces between the period or the right parenthesis
and the first digit of the data field. (See example below.)
A decimal point (that is, a period) should be used for each money amount regardless of whether the amount is reported in dollars and cents or in whole dollars, or whether or not the vertical line that separates the dollars from the cents is present. The decimal points must be vertically aligned when possible.
Example: | ||
5 | STATE & LOCAL INC. TAXES............... | 5. 495.00 |
6 | REAL ESTATE TAXES............................ | 6. |
7 | PERSONAL PROPERTY TAXES............ | 7. 198.00 |
or | ||
5 | STATE & LOCAL INC. TAXES............... | (5) 495.00 |
6 | REAL ESTATE TAXES............................. | (6) |
7 | PERSONAL PROPERTY TAXES............. | (7) 198.00 |
You may show the computer prepared internal control numbers and identifying
symbols on the substitute if using such numbers or symbols is acceptable to
the taxpayer and the taxpayer’s representative. Such information must
not be printed in the top 1/2 inch
clear area of any form or schedule requiring a signature. Except for the actual
tax return form (Forms 1040, 1120, 940, 941, etc.), you may print in the left
vertical and bottom left margins. The bottom left margin you may use extends
31/2 inches from the left
edge of the form.
Descriptions for captions, lines, etc., appearing on the substitute
forms may be limited to one print line by using abbreviations and contractions,
and by omitting articles, prepositions, etc. However, sufficient key words
must be retained to permit ready identification of the caption, line, or item.
Explanatory detail and/or intermediate calculations for determining
final line totals may be included on the substitute. We prefer that such calculations
be submitted in the form of a supporting statement. If intermediate calculations
are included on the substitute, the line on which they appear may not be numbered
or lettered. Intermediate calculations may not be printed in the right column.
This column is reserved only for official numbered and lettered lines that
correspond to the ones on the official form. Generally, you may choose the
format for intermediate calculations or subtotals on supporting statements
to be submitted.
Text on the official form, which is solely instructional (for example,
“Attach this schedule to Form 1040,” “See instructions,”
etc.), may generally be omitted from the substitute form.
You may not show more than one form or schedule on the same printout page. Both sides of the paper may be printed for multi-page official forms, but it is unacceptable to intermix single page schedules of forms except for Schedules A and B (Form 1040), which are printed back to back by the IRS.
For instance, Schedule E can be printed on both sides of the paper because
the official form is multi-page, with page 2 continued on the back. However,
do not print Schedule E on the front page and Schedule SE on the back, or
Schedule A on the front and Form 8615 on the back, etc. Both pages of a substitute
form must match the official form. The back page may be left blank if the
official form contains only the instructions.
Identify all computer prepared substitutes clearly. Print the form designation 1/2 inch
from the top margin and 11/2 inches
from the left margin. Print the title centered on the first line of print.
Print the taxable year and, where applicable, the sequence number on the same
line 1/2 inch to 1 inch
from the right margin. Include the taxpayer's name and SSN on all forms and
attachments. Also, print the OMB number as reflected on the official form.
Negative (or loss) amount entries should be enclosed in brackets or
parentheses or include a minus sign. This assists in accurate computation
and input of form data. The IRS pre-prints parentheses in negative data fields
on many official forms. These parentheses should be retained or inserted on
affected substitute forms.
Note. The formats for Schedules K-1 of Forms 1065 and 1120S have significantly changed for 2004. Because Publication 1167 is printed before the forms become finalized, draft copies are provided in the exhibits (see Exhibits D, E, and F). Before releasing their substitute forms, software vendors are responsible for making any subsequent changes that have been made to the final official IRS forms after the draft forms have been posted.
Because of significant changes to the 2004 Schedules K-1 for Forms 1065 and 1120S and to improve processing, prior approval is now required for substitute Schedules K-1 that accompany Form 1041 (for estates and trusts), Form 1065 (for partnerships), Form 1065-B (for electing large partnerships), or Form 1120S (for S corporations). Substitute Schedules K-1 should be as close as possible to exact replicas of copies of the official IRS schedules and follow the same process for submitting other substitute forms and schedules.
If you feel you will suffer a financial hardship in producing the 2004 Schedules K-1 of Forms 1065 and 1120S because of the significant changes to the form and format, the IRS will consider allowing deviations from the official form for tax year 2004 only. However, you must include all information on the form. Only deviations in placement and format will be considered. You may prepare a justification and submit it to the IRS at *taxforms@irs.gov with “Attn: Substitute Forms” on the subject line or:
Internal Revenue Service
Attn: Substitute Forms
Program
SE:W:CAR:MP:T:T:SP
1111 Constitution
Avenue, NW
Room 6406
Washington, D.C. 20224
Schedules K-1 that accompany Forms 1041, 1065, 1065-B, or 1120S must meet all specifications. The specifications include, but are not limited to, the following requirements:
-
You will no longer be able to produce Schedules K-1 that contain only those lines or boxes that taxpayers are required to use. All lines must be included.
-
The words “*See attached statement for additional information.” must be preprinted in the lower right hand side on Schedules K-1 of Forms 1065 and 1120S.
-
All K-1s that are filed with the IRS should be printed on standard 8.5” x 11” paper (the international standard (A4) of 8.27” x 11.69” may be substituted).
-
Each recipient's information must be on a separate sheet of paper. Therefore, you must separate all continuously printed substitutes, by recipient, before filing with the IRS.
-
No carbon copies or pressure-sensitive copies will be accepted.
-
The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (estate, trust, partnership, or S Corporation) and the recipient (beneficiary, partner, or shareholder).
-
The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name in substantially the same position and format as shown on the official IRS schedule.
-
The Schedule K-1 must contain all the line items as shown on the official form, except for the instructions, if any are printed on the back of the official Schedule K-1.
-
The line items or boxes must be in the same order and arrangement as those on the official form.
-
The amount of each recipient's share of each item must be shown. Furnishing a total amount of each item and a percentage (or decimal equivalent) to be applied to such total amount by the recipient does not satisfy the law and the specifications of this revenue procedure.
-
State or local tax-related information may not be included on the Schedules K-1 filed with the IRS.
-
The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not conform to specifications.
-
Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications as not being able to process and may return Forms 1041, 1065, 1065-B, or 1120S to the entity to be filed correctly.
Schedules K-1 that are 2-D bar-coded will continue to require prior
approval from the IRS (see Sections 7.1.3 through 7.1.5).
Standardization for reporting information is required for recipient copies of substitute Schedules K-1 of Forms 1041, 1065, 1065-B, and 1120S. Uniform visual standards are provided to increase compliance by allowing recipients and practitioners to more easily recognize a substitute Schedule K-1. The entity must furnish to each recipient a copy of Schedule K-1 that meets the following requirements:
-
You will no longer be able to produce Schedules K-1 that contain only those lines or boxes that taxpayers are required to use. All lines must be included.
-
Both pages 1 and 2 of Schedules K-1 of Forms 1065 and 1120S must be provided to each recipient.
-
The words “*See attached statement for additional information.” must be preprinted in the lower right hand side on Schedules K-1 of Forms 1065 and 1120S.
-
The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and recipient.
-
The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the related form number (1041, 1065, 1065-B, or 1120S), and the official schedule name in substantially the same position and format as shown on the official IRS schedule.
-
All applicable amounts and information required to be reported must be titled and numbered in the same manner as shown on the official IRS schedule. The line items or boxes must be in the same order and arrangement and must be numbered like those on the official IRS schedule.
-
The Schedule K-1 must contain all items required for use by the recipient. The instructions to the schedule must identify the line or box number and code, if any, for each item as shown in the official IRS schedule.
-
The amount of each recipient’s share of each item must be shown. Furnishing a total amount of each line item and a percentage (or decimal equivalent) to be applied to such total amount by the recipient does not satisfy the law and the specifications of this revenue procedure.
-
Instructions to the recipient that are substantially similar to those on or accompanying the official IRS schedule must be provided to aid in the proper reporting of the items on the recipient’s income tax return. Where items are not reported to a recipient because they do not apply, the related instructions may be omitted.
-
The quality of the ink or other material used to generate recipients’ schedules must produce clearly legible documents. In general, black chemical transfer inks are preferred.
-
In order to assure uniformity of substitute Schedules K-1, the paper size should be standard 8.5” x 11” (the international standard (A4) of 8.27” x 11.69” may be substituted.)
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The paper weight, paper color, font type, font size, font color, and page layout must be such that the average recipient can easily decipher the information on each page.
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State or local tax-related information may be included on recipient copies of substitute Schedules K-1. All non-tax-related information should be separated from the tax information on the substitute schedule to avoid confusion for the recipient.
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The legend “Important Tax Return Document Enclosed” must appear in a bold and conspicuous manner on the outside of the envelope that contains the substitute recipient copy of Schedule K-1.
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The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient does not conform to the specifications of this revenue procedure and results in impeding processing.
In an effort to reduce the burden of manually transcribing tax documents, improve quality, and increase government efficiency, the IRS is pleased to provide specifications for 2-D bar-coded substitute Schedules K-1 for Forms 1041, 1065, and 1120S. The IRS encourages voluntary participation in adding 2-D barcoding. See Exhibits D, E, and F for examples of draft bar-coded Schedules K-1.
Note. If software vendors do not want to produce bar-coded Schedules K-1, they may produce the official IRS Schedules K-1 but cannot use the expedited process for approving bar-coded K-1’s and their parent returns as outlined in Section 7.1.5.
In addition to the above requirements, the bar-coded Schedules K-1 must meet the following specifications.
-
The bar code should print in the space labeled “For IRS Use Only” on each Schedule K-1. The entire bar code must print within the “For IRS Use Only” box surrounded by a white space of at least 1/4-inch.
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Bar codes will print in PDF 417 format.
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The bar codes must always be in the specified format with every field represented by at least a field delimiter (carriage return). Leaving out a field in a bar code will cause every subsequent field to be misread.
Prior to releasing commercially available tax software that creates bar-coded Schedules K-1, the printed schedule and the bar code must both be tested. Bar code testing must be done using the final official IRS Schedule K-1. Bar code approval requests must be resubmitted for any subsequent changes to the official IRS form that would affect the bar-code. Below are instructions and a sequence of events that will comprise the testing process.
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The IRS has released the final Schedule K-1 bar-code specifications by publishing them on the IRS.gov web site (see http://www.irs.gov/efile/article/0,,id=113408,00.html)
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The IRS will publish a set of test documents that will be used to test the ability of tax preparation software to create bar codes in the correct format.
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Software developers will submit two identical copies of the test documents - one to the IRS and one to a contracted testing vendor.
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The IRS will use one set to ensure the printed schedules comply with standard substitute forms specifications.
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If the printed forms fail to meet the substitute form criteria, the IRS will inform the software developer of the reason for noncompliance.
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The software developer must resubmit the Schedule(s) K-1 until they pass the substitute forms criteria.
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The testing vendor will review the bar codes to ensure they meet the published bar-code specifications.
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If the bar code(s) does not meet published specifications, the testing vendor will contact the software developer directly informing them of the reason for noncompliance.
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Software developers must submit new bar-coded schedules until they pass the bar-code test.
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When the bar code passes, the testing vendor will inform the IRS that the developer has passed the bar-code test and the IRS will issue an overall approval for both the substitute form and the bar code.
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After receiving this consolidated response, the software vendor is free to release software for tax preparation as long as any subsequent revisions to the schedules do not change the fields.
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Find the mailing address for the testing vendor below. Separate and simultaneous mailings to the IRS and the vendor will reduce testing time.
In order to help provide incentives to the software development community to participate in the Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded Schedules K-1 and their associated parent returns. To receive this expedited service, closely follow the bullets below.
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Mail the parent returns (Forms 1065, 1120S, 1041) and associated bar-coded Schedule(s) K-1 to the appropriate address below in a separate package from all other approval requests.
Internal Revenue Service
Attn: Bar-Coded K-1
SE:W:CAR:MP:T:T:SP
1111 Constitution Avenue, NW
Room 6406
Washington, D.C. 20224Northrop Grumman Information Tech
Attn: Bill Philpot, Product Assurance Manager
1800 Alexander Bell Drive
Suite 300
Reston, VA 20191
Phone: (703) 453-1200 -
While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns, it cannot expedite the approval of non-associated tax returns.
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Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to the testing vendor.
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Include multiple email and phone contact points in the packages.
Organizations are permitted to produce substitute tax return envelopes. Use of substitute return envelopes that comply with the requirements set forth in this section will assist in delivery of mail by the U.S. Postal Service and facilitate internal sorting at the Internal Revenue Service Centers.
Use the following five-digit ZIP codes when mailing returns to the IRS
Service Centers:
Service Center | ZIP Code |
---|---|
Atlanta, GA | 39901 |
Kansas City, MO | 64999 |
Austin, TX | 73301 |
Philadelphia, PA | 19255 |
Memphis, TN | 37501 |
Andover, MA | 05501 |
Cincinnati, OH | 45999 |
Ogden, UT | 84201 |
Fresno, CA | 93888 |
Sorting returns by form type is accomplished by the preprinted bar codes
on return envelopes included in each specific type of form or package mailed
to the taxpayers. The 32 bit bar code on the left of the address on each envelope
identifies the type of form the taxpayer is filing, and it assists in consolidating
like returns for processing. Failure to use the envelopes furnished by the
IRS results in additional processing time and effort, and possibly delays
the timely deposit of funds, processing of returns, and issuance of refund
checks.
The IRS will not furnish or sell bulk quantities of preprinted tax return envelopes to taxpayers or tax practitioners. A suitable alternative has been developed that will accommodate the sorting needs of both the IRS and the United States Postal Service (USPS). The alternative is based on the use of ZIP + 4, or 9-digit ZIP codes for mailing various types of tax returns to the IRS Service Centers. The IRS uses the last four digits to identify and sort the various form types into separate groups for processing. The list of 4-digit extensions with the related form designations is provided below.
ZIP+FOUR | Package |
---|---|
XXXXX-0002 | 1040 |
XXXXX-0005 | 941 |
XXXXX-0006 | 940 |
XXXXX-0008 | 943 |
XXXXX-0011 | 1065 |
XXXXX-0012 | 1120 |
XXXXX-0013 | 1120S |
XXXXX-0014 | 1040EZ |
XXXXX-0015 | 1040A |
XXXXX-0027 | 990 |
XXXXX-0031 | 2290 |
You may use the preparer’s company names, addresses, and logos
as long as you do not interfere with the clear areas. The government recommends
that the envelope stocks have an average opacity of not less than 89 percent
and contain a minimum of 50 percent waste paper. Use of carbon based ink is
essential for effective address and bar-code reading. Envelope construction
can be of side seam or diagonal seam design. The government recommends that
the size of the envelope should be 53/4 inches
by 9 inches. Continuous pin-fed construction is not desirable, but is permissible,
if the glued edge is at the top. This requirement is firm because mail opening
equipment is designed to open the bottom edge of each envelope.
The above procedures or guidelines are written for the user having envelopes preprinted. Many practitioners may not wish to have large quantities of envelopes with differing ZIP codes/form designations preprinted due to low volume, warehousing, waste, etc. In this case, the practitioner can type or machine print the addresses with the appropriate ZIP codes to accommodate sorting. If the requirements/guidelines outlined in this section cannot be met, then use only the appropriate five-digit service center ZIP code.
This section covers instructions for producing substitutes for:
-
Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, and accompanying Schedules J, M, N, and O.
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Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business.
Substitutes for Form 5471 and the accompanying Schedules J, M, N, and O, and Form 5472 that totally conform to the specifications contained in this procedure may be privately printed, but must have prior approval and are subject to annual review from the IRS.
Copies of the official Forms 5471 and 5472 for the reporting year may be obtained from most IRS offices. The IRS provides only cut sheets of these forms.
The IRS will accept quality substitute tax forms that are consistent
with the official forms they represent and that do not have an adverse impact
on processing. Therefore, only those substitute forms that conform to, and
do not deviate from, the corresponding official forms are acceptable.
If the substitute returns and schedules meet the guidelines in this
revenue procedure, the IRS will (for filing purposes) accept computer prepared
Forms 5471 and 5472 filled in by a computer, word processor, or similar automated
equipment. The IRS will also accept a combination of computer prepared/generated
and filled-in information. They may be filed separately or attached to individual
or business income tax returns.
The specifications for Forms 5471 and 5472 are as follows:
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The substitute must follow the design of the official form as to format, arrangement, item caption, line numbers, line references, and sequence. It must be an exact textual and graphic mirror image of the official form.
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The filer must use one of the official ten character amount formats. All entries in the amount column should have a decimal point following the whole dollar amounts whether or not the vertical line that separates the dollars from the cents is present. It must follow a consistent format.
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The reference code must be printed to the left of the corresponding captioned line and also immediately preceding the data entry field even if there is no reference code preceding the data entry field on the official form. The reference code that is immediately before the data field must either be followed by a period or enclosed in parentheses. There also must be at least two blank spaces between the period or the right parenthesis and the first digit of the data field.
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The size of the page must be the same as the official form (81/2′′ x 11′′).
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The acceptable type is Helvetica.
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The spacing of the type must be 6 lines per inch vertically, 10 or 12 print characters per inch horizontally.
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A 1/4 inch to 1/2 inch margin must be maintained across the top, bottom, and both sides.
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The substitute form must be the same number of pages as the official one.
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The preprinted parentheses in the money fields should be retained.
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The filer must completely fill in all the specified numbers or referenced lines as they appear on the official form (not just totals) before attaching any supporting statement.
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Supporting statements are never to be used until the required official form they support are completely filled in. A blank or incomplete form that refers to a supporting statement, in lieu of completing a tax return, is unacceptable.
-
Descriptions for captions, lines, etc., appearing in the substitute forms may be limited to one print line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However, sufficient key words must be retained to permit ready identification of the caption, line, or item.
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Text prescribed for the official form, which is solely instructional (for example , “Attach this schedule to Form 1120,” “See instructions”, etc.) may be omitted from the form.
Electronic filing is a method by which qualified filers transmit tax
return information directly to an IRS Service Center over telephone lines
in the format of the official IRS forms. The IRS accepts both refund and balance
due individual tax returns that are filed electronically.
Anyone wishing to participate in the IRS e-file program for individual income tax returns must submit a Form 8633, Application to Participate in the IRS e-file Program.
IF Form 8633 is used for... | THEN mail it to... |
---|---|
Individual income taxes (regular mail) | Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 P.O. Box 4099 Woburn, MA 01888-4099 |
Individual income taxes (overnight mail) | Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 310 Lowell Street Andover, MA 05501-0001 |
Forms 940, 941, and 1065 | Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 P.O. Box 4099 Woburn, MA 01888-4099 |
Forms 1041 | Internal Revenue Service Andover Submission Processing Center Attn: EFU Acceptance - Testing Stop 983 P.O. Box 4099 Woburn, MA 01888-4099 |
Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return,
is the signature document for an electronically filed 1040, 1040A, or 1040EZ
return not filed with an electronic signature. Form 8453, which serves as
a transmittal for associated nonelectronic (paper) documents such as Forms
3115, 5713, 8283, 8332, and 8609, is a one page form and can only be approved
through the Substitute Forms Program in that format. Forms 8453-OL and 8453-NR
serve the same purpose for taxpayers filing through online services and Form
1040-NR filers, respectively. For specific information about electronic filing,
refer to Publication 1345, Handbook for Authorized IRS e-file Providers
of Individual Income Tax Returns.
A participant in the electronic filing program, who wants to develop a substitute form should follow the guidelines throughout this publication and send a sample form for approval to the Substitute Forms Unit at the address in Part 1. If you do not prepare Substitute Form 8453 using a font in which all IRS wording fits on a single page, the form will not be accepted.
Note. Use of unapproved forms could result in suspension of the participant from the electronic filing program.
Exhibit G | |
---|---|
Checklist of IRS Substitute Forms Submitted on | 20: |
Company: | |
Contact: | |
Phone: | |
Fax: | |
Source Code: |
Form Number | Approved With Corrections | Must Be Resubmitted | Approved | Comments |
---|---|---|---|---|
Authorized Name:________________________________________________ |
Title:________________________________________________________________________ |
Reviewer's Name:________________________________________________ |
Telephone:____________________________________________________________ |
Date:________________________________________________________________________ |
Form | Title | Section |
---|---|---|
706 | United States Estate (and Generation-Skipping Transfer) Tax Return | 2.1 |
720 | Quarterly Federal Excise Tax Return | 2.5 |
940-EZ | Employer’s Annual Federal Unemployment (FUTA) Tax Return | 2.3 |
941 | Employer’s Quarterly Federal Tax Return | 2.3; 3.4; 6.2; 7.2 |
943 | Employer’s Annual Tax Return for Agricultural Employees | 2.3 |
945 | Annual Return of Withheld Federal Income Tax | 2.3 |
1040 | U.S. Individual Income Tax Return | 2.3; 2.4; 2.5; 3.1; 3.2; 3.4; 5.1; 5.2; 5.4; 6.1; 6.2; 7.2; 8.1 |
1040-ES | Estimated Tax for Individuals | 1.1; 2.3; 3.2; 4.2 |
1040A | U.S. Individual Income Tax Return | 2.1; 2.4; 3.1; 3.2; 3.4; 5.1; 5.2; 5.3; 7.2; 8.1 |
1040EZ | Income Tax Return for Single and Joint Filers with No Dependents | 2.4; 3.1; 3.4; 7.2; 8.1 |
1040-NR | U.S. Nonresident Alien Income Tax Return | 8.1 |
1040-V | Form 1040-V Payment Voucher | 2.3 |
1041 | U.S. Income Tax Return for Estates and Trusts | 2.5; 3.1; 7.1; 8.1 |
1041-ES | Estimated Income Tax for Estates and Trusts | 2.3; 3.2 |
1042-S | Foreign Person’s U.S. Source Income Subject to Withholding | 1.2; 4.1; 4.2 |
1065 | U.S. Return of Partnership Income | 2.5; 3.1; 7.1; 8.1 |
1065-B | U.S. Return of Income for Electing Large Partnerships | 7.1 |
1096 | Annual Summary and Transmittal of U.S. Information Returns | 1.1; 1.2; 4.1; 4.2 |
1098 | Mortgage Interest Statement | 1.1; 1.2; 4.1; 4.2 |
1099 | Series | 1.1; 1.2; 4.1; 4.2 |
1120 | U.S. Corporation Income Tax Return | 2.5; 3.1; 3.4; 5.1; 6.2; 7.2; 7.3 |
1120-S | U.S. Income Tax Return for an S Corporation | 3.1; 7.1; 7.2 |
2106-EZ | Unreimbursed Employee Business Expenses | 6.1 |
2290 | Heavy Highway Vehicle Use Tax Return | 2.3; 7.2 |
3468 | Investment Credit | 2.5 |
4136 | Credit for Federal Tax Paid on Fuels | 2.5 |
4972 | Tax on Lump-Sum Distributions | 5.4 |
5471 | Information Return of U.S. Persons With Respect to Certain Foreign Corporations | 7.3 |
5472 | Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business | 7.3 |
5498 | IRA Contribution Information | 1.1; 1.2; 4.1; 4.2 |
5500 | Annual Return/Report of Employee Benefit Plan | 1.1; 1.2 |
5500-EZ | Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan | 1.1; 1.2 |
8453 | U.S. Individual Income Tax Declaration for an IRS e-file Return | 8.1 |
8453-OL | U.S. Individual Income Tax Declaration for an IRS e-file Online Return | 8.1 |
8633 | Application to Participate in the IRS e-file Program | 8.1 |
8814 | Parents’ Election To Report Child’s Interest and Dividends | 5.4 |
W-2 | Wage and Tax Statement | 1.1; 1.2; 4.1; 4.2 |
W-2c | Corrected Wage and Tax Statement | 1.1; 1.2; 4.1; 4.2 |
W-2G | Certain Gambling Winnings | 1.1; 1.2; 4.1; 4.2 |
W-3 | Transmittal of Wage and Tax Statements | 1.1; 1.2; 4.1; 4.2 |
W-3c | Transmittal of Corrected Wage and Tax Statements | 1.1; 1.2; 4.1; 4.2 |
W-4 | Employee’s Withholding Allowance Certificate | 4.2 |
More Internal Revenue Bulletins |