Internal Revenue Bulletin:  2010-42 

October 18, 2010 

Announcement 2010-82

Updates to Publication 1220, Specifications for Filing Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, 8935 and W-2G, Electronically, revised August 2010.


Table of Contents

This announcement updates and clarifies changes to Publication 1220 (Rev. Proc. 2010-26), Specifications for Filing Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. The following are changes or clarifications to Publication 1220 effective for tax year 2010:

  • Publication 1220 went to print before Public Law 111-240, Small Business Jobs Act of 2010 (H.R. 5297), was signed by the President. P.L. 111-240 increases penalties for failure to timely file information returns to the IRS. The first-tier penalty is increased from $15 to $30, and the calendar year maximum is increased from $75,000 to $250,000. The second-tier penalty is increased from $30 to $60, and the calendar year maximum is increased from $150,000 to $500,000. The third-tier penalty is increased from $50 to $100, and the calendar year maximum is increased from $250,000 to $1.5 million. For small filers, the calendar year maximum is increased from $25,000 to $75,000 for the first-tier penalty, from $50,000 to $200,000 for the second-tier penalty, and from $100,000 to $500,000 for the third-tier penalty. The minimum penalty for each failure due to intentional disregard is increased from $100 to $250. The penalty amounts are to be adjusted every five years for inflation. Penalties for failure to file information returns to payees are similarly increased. The changes apply to information returns required to be filed on or after January 1, 2011. (2010 information returns).

  • For Form 1099-INT, additional instructions for Payee B record field positions 587-599 (CUSIP number). For single bonds or accounts containing a single bond, enter the CUSIP number in field positions 587-599. If the tax-exempt interest is reported in the aggregate for multiple bonds or accounts, enter: VARIOUS in field positions 587-599.

  • For Form 1099-R, change to the instructions for Payee B record field positions 545-546 Distribution Code. Distribution Codes 3, 5, 9, E, F, N, Q, R, S and T cannot be used with any other codes. Code 6 can be used with Code W as stated in the FORM 1099-R DISTRIBUTION CODE CHART 2010 which appears on page 81 of the 2010 Publication 1220.

If you have any questions, contact the Internal Revenue Service, Information Reporting Program, toll-free 866-455-7438.


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