Internal Revenue Bulletin: 2009-41
October 13, 2009
Corrections and Clarifications to Publication 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, Electronically, Revised July 2009
The following announcement clarifies and corrects certain items in Publication 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, Electronically, revised July 2009. Use this announcement along with Publication 1220 when filing information returns for TY2009.
In Part A, Sec. 8, Corrected Returns, there is a change to the 2 step correction process. Item (d) incorrect payee address, under Error Type 2, should be deleted. Only items (a) No payee TIN (SSN, EIN, ITIN, QI-EIN), (b) Incorrect payee TIN, (c) Incorrect payee name, and (e) Wrong type of return indicator, require 2 transactions to properly correct the information. In addition, Sec 2. Nature of Changes-Current Year (Tax Year 2009) .01 a. General (3) states changes in correction procedure are to include incorrect TIN, payee name and/or address requires a two step correction. It should read incorrect TIN or payee name requires a two step correction.
In the Payee ‘B’ Record, two new Payment Amount Fields, F and G were added. These amount fields were added in anticipation of expanded reporting requirements on certain information returns. Currently, there are no corresponding Amount Codes in the Payer ‘A’ Record. Filers must allow for these amount fields in their Payee ‘B’ Records and like any unused amount fields they must be zero filled. In addition, in Part C, Sec. 7, .01 the last two sentences should read: ‘In the “B” Record, the filer must allow for all sixteen Payment Amount Fields. For those fields not used, enter “0s” (zeros).’ These statements also apply to the End of Payer ‘C’ Record and the State Totals ‘K’ Record.
For Form 5498, Payee ’B’ Record, Special Data Entries, positions 663-722, the Note about delayed contributions for U.S. Armed Forces should have been deleted. Form 5498 now has specific fields and codes for many types of reporting for Armed Forces personnel. The Special Data Entry field can still be used for any reporting not covered in the new reporting fields.
If you have any questions regarding the announcement or the information in Publication 1220, Specifications for Filing Forms 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, Electronically, revised July 2009, call toll-free 866-455-7438.
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