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Part 3. Submission Processing

Chapter 11. Returns and Documents Analysis

Section 8. Information Return Processing

3.11.8  Information Return Processing

3.11.8.1  (01-01-2008)
Purpose

  1. These instructions cover editing the following domestic paper information returns:

    • Forms 1096, Annual Summary and Transmittal of U.S. Information Returns, processed to the Payer Master File;

    • Forms 1098, Mortgage Interest Statement;

    • Forms 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes.

    • Forms 1098–E, Student Loan Interest Statement;

    • Forms 1098–T, Tuition Payments Statement;

    • Forms 1099–A, Acquisition or Abandonment of Secured Property;

    • Forms 1099–B, Proceeds From Broker and Barter Exchange Transactions;

    • Forms 1099–C, Cancellation of Debt;

    • Forms 1099–CAP, Changes in Corporate Control and Capital Structure;

    • Forms 1099–DIV, Dividends and Distributions;

    • Forms 1099–G, Certain Government Payments;

    • Forms 1099–H, Health Insurance Advance Payments;

    • Forms 1099–INT, Interest Income;

    • Forms 1099–LTC, Long-Term Care and Accelerated Death Benefits;

    • Forms 1099–MISC, Miscellaneous Income;

    • Forms 1099–OID, Original Issue Discount;

    • Forms 1099–PATR, Taxable Distributions Received From Cooperatives;

    • Forms 1099–Q, Qualified Tuition Program Payments

    • Forms 1099–R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.;

    • Forms 1099–S, Proceeds From Real Estate Transaction;

    • Forms 1099–SA, Distribution From Medical Savings Account;

    • Forms W–2G, Certain Gambling Winnings;

    • Forms 5498, Individual Retirement Arrangement Information;

    • Forms 5498–ESA, Coverdell ESA Contributing Information;

    • Forms 5498–SA, Medical Savings Account Information;

    • Delinquent Forms 1096;

  2. Electronic Filing and Magnetic Media Processing is done at Enterprise Computing Center - Martinsburg.

  3. IRM 3.11.95, Foreign Information Returns Processing contains Foreign processing

3.11.8.1.1  (01-01-2008)
Scope

  1. These instructions apply to all campuses.

3.11.8.1.2  (01-01-2008)
Program Codes

  1. Use the following program codes as appropriate

    Return Type
    ISRP ENTERED FORMS (DOMESTIC)     		Program Code
    1099–H, 1099–INT, 1099–LTC, 1099–SA, 44300
    Forms 1096 44310
    Forms 1098, Form 1098-C, Form 1098–E, Forms 1098–T 44312
    Forms 1099–A 44309
    Forms 1099–B 44301
    Forms 1099–C, Forms 1099–CAP, Forms 1099–G 44303
    Forms 1099–DIV 44302
    Forms 1099–MISC 44305
    Forms 1099–OID 44304
    Forms 1099–PATR 44307
    Forms 1099–Q, Forms 1099–S 44308
    Forms 1099–R 44306
    Forms 5498, Forms 5498–ESA 44313
    Form 5498–SA 44315
    Forms W-2G 44314
    FOREIGN INFORMATION RETURNS 44320
    SCRIPS 1096, 1099 (SERIES) 5498, 1098 (SERIES) 44340
    Form 8487 44620

3.11.8.2  (01-01-2008)
Paper Information Return Conversion

  1. All forms received must have been determined to be non-scannable. Therefore, all procedures in this IRM refer to non-scannable forms. Forms 8487 Payer Master File (PMF) Entity Change Entry, should not be received. If it is, send to ISRP for input.

  2. Information Returns are sorted and batched according to criteria in IRM 3.10.8, Campus Mail and Work Control, and IRM 3.10.72 Extracting, Sorting and Numbering. Returns are batched by:

    • Account Type Code

    • Type of Return

    • Tax Year

    • Single or Multiple Return Payers

  3. Forms 1098, 1099s, 5498 and Forms W–2G may already be numbered. Make sure the block DLN on the returns agrees with the DLN on Form 1332 Block and Selection Record. If unnumbered, return the documents to the numbering function.

  4. For multiple return payer batches, Payer Identifiers are attached to each return when any part of the payer entity has changes. Payer Identifiers will not be present for single return payer batches because each return is for a different payer. At the discretion of campus management—document perfection may attach the payer identifier rather than Receipt and Control.

  5. Information returns are placed in batches and sent to the Document Perfection function from batching or numbering. Each batch is identified by a 5 position code as follows:

    Position 1 Account Type Code "B" , "C" , "P" , "T" or "J" . Note: The Account Type Code will appear on the batch, on the outside of the computer punch card box (or other batch holder). This code will determine the type of editing needed for the returns in the batch. Account Type Codes are defined in IRM 3.11.8.2.2. Account Type Code "T" or "J" is for use in PSC only. They are for Foreign Payer Information Returns processed according to IRM 3.11.95
    Position 2 Record Identification, always use "F"
    Position 3 Hyphen
    Position 4 and 5 Return Code (See Exhibit 3.11.8-1 for Return Codes)

3.11.8.2.1  (01-01-2008)
Definitions

  1. Account Type Code—identifies the various entity or selection categories for returns in a particular block. This code is entered in the Block Header Record for all Information Return blocks. All returns in a block must be the same Account Type Code.

  2. Corrected (Amended) Information Return—return with "X" marked in the corrected box at the top of the form or the word Corrected/Amended is written on the Information return.

  3. Domestic Payer—Any information return submitted on an official IRS information return or approved substitute for an official IRS information return. Domestic Payer Information Returns include all information returns that do not meet the definition of a Foreign Treaty Information Return.

  4. "Dummy" Form—Form 1096 prepared by IRS when an employer or payer submits Forms W–2G, Forms 5498, 1098 or Forms 1099 without a transmittal document or the Service had to create a Form 1096 because the payer provided a Form 1096 that could not be used or was used for another purpose (e.g., multiple returns).

  5. Foreign Treaty Information Return—Any information return furnished by foreign governments, businesses, or individuals to the IRS that reports amounts paid to businesses or individuals with U.S. addresses. These returns may be filed by the foreign payer or by the U.S. recipient. They will not be submitted on the normal information returns processed in domestic IRP.

  6. Payer—Generally, payer information is found in the upper portion of IRP documents. A payer may be identified on forms as one or more of the following: Fiduciary, Estate, Trust, Partnership, Corporation, Employer, Payer, Trustee, Issuer, Filer, Lender or Borrower . For Form 1098, Borrower and Payer mean Payee

  7. Payee—Generally, payee information is found in the lower portion of IRP documents. A payee may be identified on forms as one or more of the following: Beneficiary, Partner, Shareholder, Employee, Recipient, Participant, Winner, Transferor or Lender.

    • Form 1098, Recipient and Lender mean Payer

    • Form 1096 does not contain payee information

  8. Payer Identifiers—a label placed on the information return to be input through ISRP to signify a change of Payer. At the discretion of campus management, the label may be sequentially numbered and placed over the top of the return. It is used to alert Transcription to a change of payer and to accurately determine payer counts.

  9. Single Return Payer—any Payer for whom only one information return is processed through ISRP for each category. All Single Return Payers should be batched separately to eliminate the need for Payer Identifiers.

  10. TIN—Taxpayer Identification Number.

3.11.8.2.2  (01-01-2008)
Account Type Code

  1. Each block will have an Account Type Code as follows:

    J electronically filed returns from Foreign Treaty Countries, and are processable in IRP. This code is for use only at PSC in accordance with IRM 3.11.95.
    P the returns are from domestic payers, and are processable in IRP.
    T paper filed returns from Foreign Treaty countries, and are processable in IRP. This code is for use only at PSC in accordance with IRM 3.11.95.

  2. Form 1096 will use "B" and "C" .

    B Form 1096 was prepared and submitted by the payer
    C Form 1096 is a "Dummy" prepared by IRS because the payer did not submit a Form 1096.

3.11.8.3  (01-01-2008)
Coding & Editing Information Returns

  1. Code all return types identically unless otherwise instructed by this manual.

  2. All forms in the 1099 family are now in a machine-readable format with 3 returns on an 8″ × 11″ page (except Form 1096 is 1 to an 8″ × 11″ page and Forms 1099–B, Forms 1099–DIV, Forms 1099–MISC, and Form 1099–R are 2 to an 8″ × 11″ page). They are printed in red and black ink.

  3. All forms in the 1099 family are scanned via SCRIPS (Service Center Recognition Image Processing System at the Submission Processing sites.

    1. Document Perfection should not receive any scannable returns. Refer any misrouted scannable returns to your supervisor for correct disposition.

    2. Some Forms 1099 are determined non-scannable for reasons such as ripped, torn or cut forms, etc.

    3. These returns are identified as Account Type Code P and processed by Document Perfection.

    4. Form 1096 attached to non-scannable Forms 1099 will also be considered non-scannable and processed by Document Perfection.

  4. Instructions for special edit of foreign payee addresses are provided in IRM 3.11.8.3.7.

3.11.8.3.1  (01-01-2008)
IMF—Payee Name Lines

  1. The first and second name lines for IMF/BMF payees are transcribed exactly as shown on the returns. Generally, only one name will appear as the payee on a return. However, if more than one full payee name appears on a return, underline the name(s) to be entered into the Second Name Line. The first full name in the payee name block (or the name which is asterisked or otherwise indicated by the Payer as the recipient) must not be underlined. It is entered by Transcription into the First Name Line field as it appears. See Exhibit 3.11.8-2 for examples of name line editing.

    1. Enter only one name into the First Name Line-Payee. Enter as many of the remaining names as possible into the Second Name Line-Payee.

      Note:

      Each name line has a maximum of 40 positions.

    2. If all of the names to be entered in the Second-Name-Line-Payee will not fit, use initials for first and middle names.

    3. If all of the names do not fit and a husband and wife appear jointly underline the second person's first initial and circle any connecting word(s). Use this method only for husband/wife combinations.

    4. If all of the names still will not fit, circle the remaining data and edit "& C" above the circled data.

    5. When editing more than one Payee Name to the Second Name Line-Payee, separate the names with "OR" unless "AND" or "C/O" (%) is already present.

  2. Forms 5498 may list the issuing organization as the custodian for the taxpayer, circle out the issuing organization.

3.11.8.3.2  (01-01-2008)
IMF—Payee or Recipient Name Control

  1. The name control consists of the first four alpha characters of a taxpayer's last name (surname). Refer to Document 7071 Name Control Job Aid on IMF name controlling.

  2. Prefixes in true names are omitted. Example of prefixes to be deleted are: Mr., Rev., Dr., Capt., Sgt., Hon., Gov., Miss., etc. Also omit "Mrs." if the woman's given name is present; do not omit "Mrs." when shown with the husband's name.

    1. Examples: Dr. John Smith
      Code As: John Smith

    2. Examples: Mr. John and Mrs. Mary Smith
      Code As: John and Mary Smith

    3. Examples: Mr. and Mrs. John Smith
      Code As: John and Mrs. John Smith

  3. The name control can have less than four characters. However, it will not have any more than four characters.

3.11.8.3.3  (01-01-2008)
IMF Payee SSN

  1. If the payee SSN is not in the proper box, draw an arrow from the SSN to the box provided for the payees (payers) identification number.

  2. For Forms 1096 Payer TIN, edit according to instructions in IRM 3.11.8.3.12.

  3. If the payee SSN is missing, do not code the field.

3.11.8.3.4  (01-01-2008)
BMF—Payer Name lines

  1. Delete prefixes from true names or surnames. Examples of prefixes to be deleted are: Mr., Rev., Dr., Capt., Hon., Gov., Miss., Mrs., (Note: DO NOT delete "Mrs." when shown with the full name of the husband (e.g., Mrs. Richard Green) or a name of indeterminate gender (e.g., Mrs. Chris Blue).

  2. Delete the prefix "The" from the trade name, corporate names, business name and non-profit organization.

    Note:

    If "The" is followed by only one word, then DO NOT delete "The" .

  3. Delete all suffixes from the First Name Line such as: Owner, Agent, Attorney, Proprietor, etc.

  4. Corporate Names can be identified with suffixes such as P.A. (Professional Association), P.C. (Professional Corporation), and Inc. (Incorporated).

  5. Partnership first name line can be a list of partners or the business/trade name. If it is not possible to list all the partners, list the maximum number of names and add the phrase "ET AL PTR" .

  6. Trust Name must appear on the first name line.

  7. Estate Names must be included in the first name line.

  8. Use standard abbreviations (See Exhibit 3.11.8-3) to save on key strokes. DO NOT use the standard abbreviations in a first name line when the names are part of the name control.

  9. If either name line exceeds 40 characters circle the remaining data and edit "& C" above the circled data.

3.11.8.3.5  (01-01-2008)
BMF—Payee Recipient Name Control

  1. The name control consists of four alpha or numeric characters.

    1. The ampersand (&) and a hyphen (-) are the only special characters allowed in the name control.

    2. The name control can have less, but no more than four characters.

  2. The name control for an individual name is the first four significant characters of the last name. When the taxpayer has a true name and a trade name, the name control is derived from the first four characters of the individual's last name.

  3. The name control for a corporation is the first four significant characters of the corporation.

    1. When determining a corporate name control, omit the prefix "The" when followed by more than one word.

    2. Include "The" in the name control when it is followed by only one word.

    3. If an individual name contains the following abbreviations, use corporate name control rules

      PC Professional Corporation
      SC Small Corporation
      PA Professional Association
      PS Profession Service

    4. When the organization name contains the words "Fund" or "Foundation" , corporate rules still apply.

  4. The name control for a partnership is either:

    1. The first four characters of the business (dba), trade, or legal name.

    2. The first four characters of the first partner's last name.

  5. The name control for estates is the first four characters of the last name of the decedent. The last name of the decedent may be followed by the word "Estate" in the first name line.

  6. The name control of a trust is derived by:

    1. The first four characters of an individual's last name.

    2. For corporations, use the first four characters of the corporate name.

  7. Refer to Document 7071 Name Control Job Aid for examples of BMF name controls.

3.11.8.3.6  (01-01-2008)
BMF—Payee EIN

  1. If the payee TIN is not in the proper box, draw an arrow from the TIN to the appropriate box on the return.

  2. If the payee EIN is missing, do not code the field.

  3. Forms 1096 Payer TIN, edit according to instructions in IRM 3.11.8.3.13.

3.11.8.3.7  (01-01-2008)
Payee Address

  1. Street Address:

    1. The only valid characters for the street address field are Alpha (A–Z), Numeric (0–9), hyphen (-), blank () and slash (/). Invalid characters should be circled.

    2. If both a street address and a Post Office Box appear, edit the P.O. Box instead of the street address.

    3. If an apartment number is present or if other location designations (e.g. building, room, N.W., etc.) are present but not in address area arrow to address area.

    4. If the street address contains more than 35 characters, edit it to 35 characters using standard abbreviations. (See Exhibit 3.11.8-3)

    5. If the street address is not present on the document, edit the single character "Z" as the street address.

  2. If address is APO or FPO, edit APO or FPO to the beginning of the City, State, ZIP Code line. See Exhibit 3.11.8-4.

  3. If the city contains more than 22 characters, edit it to 22 characters. The only valid characters for the city field are Alpha (A–Z) and Numeric (0–9). Circled Invalid characters. If the city is not present enter "ZZZ" as the city.

  4. If state is missing but can be determined from city or ZIP Code, edit state abbreviation to City, State, ZIP Code Line.

  5. If a ZIP Code is present a state must be edited. If State is missing and cannot be determined from the city or ZIP code, edit city only.

  6. If a ZIP Code is present and:

    1. It is less than 5 numbers, enter the 3 digit zip code for the state as shown in Exhibit 3.11.8-4, followed by the numerics 01.

    2. It is six, seven, eight or more than nine numbers, circle the extraneous numbers (e.g. ZIP Code is 0012321, circle the two preceding zero's).

  7. If the exact zip code for a state is not known, or you notice an invalid zip code, use the 3 digit zip code for the state as shown in Exhibit 3.11.8-4, followed by the numerics 01.

  8. If the ZIP Code is missing and the state is present, edit the 5-digit ZIP Code for the state as shown in Exhibit 3.11.8-4.

  9. Special Edit of Foreign Payee Addresses:

    1. Code the street address (if present) for entry in the Name Line 2 field.

    2. A maximum of 40 characters are allowed for the remainder of the total address (foreign city or province; postal code; and foreign country). The foreign city or province and postal code should be edited for entry in the Street-Address field. Use abbreviations as necessary to limit this entry to 25 positions. The postal code is separated from the foreign city by a space. Edit the foreign country in the City field. Use abbreviations to limit this entry to 15 positions.

      Note:

      If the foreign country is less than 15 characters, the entry in the Street address field can be expanded by the number of remaining positions up to 15. This method can also be used to expand the foreign country if the foreign city and postal code are less than 25 positions.

    3. Code a dollar sign ($) in the first position of the State-field to identify the address as foreign.

    4. Foreign Payer addresses should not be edited for input. Refer to IRM 3.11.95 for editing of foreign payer data.

  10. For domestic addresses only, if the city contains numerics, code them as alphas. For example, edit "29 Palms" to be "Twentynine Palms" .

3.11.8.3.8  (01-01-2008)
Payment Amount Fields—

  1. Make a cursory review to ensure that the amount field boxes (lines) are numbered consistently with the official IRS forms. Also ensure that the money amounts of each box (line) can be clearly understood (i.e. whether it is dollars and cents or whole dollars if the decimal is missing or misplaced). All payment amount General fields are transcribed as dollars only.

    1. If the preprinted Amount Box (line) numbers are inconsistent, edit the Amount Box (line) numbers to make them consistent. If unable to do so, return the entire submission to Receipt and Control.

    2. If the Payer has crossed out the pre-printed Type of Return and entered another Type of Return, edit the Payment Amount fields to be consistent with the Payer's correction (i.e. circle out the preprinted Payment Amount Field number and enter the number from the official form which identifies that type of income). For example, the Payer sends in a Form 1099–MISC, crosses out MISC and enters DIV, places an amount in Box 1a and identifies it as dividends; edit the return in the following manner: underline 1099–DIV, circle out the "2" , if present, and enter a "1" above it.

    3. In general, if the Payer re-titles Payment Amount fields or otherwise indicates that the Type of Return or Payment Amounts are not the same as on the pre-printed return, use this as a basis for re-titling the return and re-numbering Payment Amount Fields on the return. Forms 1099–MISC with payments identified as other than what would normally be reported on a MISC return (such as Dividends, Wages, etc.), BUT NOT A RE-TITLED RETURN, should now be changed to the correct return.

    4. If the Payer enters more than one amount in a box, circle the amounts and place the total of the amounts above the circled out amounts. If a gross amount and net amount are both present, cross out the net amount.

  2. Payment amount fields to be transcribed must be consistent with the official returns listed in instructions for each type of return below.

  3. Forms 1096 contains two amount fields. See IRM 3.12.8.5.1 for coding instructions.

  4. Form 1099–B (Box 2, Box 6 and Box 9 only) may contain negative money amounts.

    1. For Form 1099–DIV only, if Box 9, Non-cash, contains negative and positive amounts and the net total of the amounts is positive, edit that amount as the Box 9 amount. If the net total is negative edit it to be zero.

    2. For all other forms (except Form 1099–B) (Box 2, Box 6 and Box 9 only).

    3. If a positive and negative amount appear in one box use the positive amount.

    4. If a negative amount appears in any box treat it as zero.

3.11.8.3.9  (01-01-2008)
Payment Amount Fields and Edited Fields—Forms 1098, 1099, and 5498 Series

  1. If a field on any form requires a positive money amount only, and it appears to have a negative money amount entered, circle the amount.

  2. Form 1098; Edit Boxes 1, 2, and 3.

    • Box 1, Mortgage Interest received from Payer(s) / Borrower(s);

    • Box 2, Points paid directly by Payer(s) / Borrower(s) on purchase of principal residence.

    • Box 3, Refund of overpaid interest

  3. Form 1098-C; Edit Boxes 1, 2, 3, 4a, 4b, 4c, 5a, 5b,5c, 6a, 6b, and 6c.

    • Box 1, Date of contribution;

    • Box 2, Make, model, and year of property

    • Box 3, Vehicle or other identification number

    • Box 4a, Vehicle sold in arms length

    • Box 4b, Date of sale

    • Box 4c, Gross proceeds from sale

    • Box 5a, Vehicle will not be transfered for money

    • Box 5b, Donee Certifies - needy individual

    • Box 5c, Description of improvements or intended use

    • Box 6a, Did you provide goods or services

    • Box 6b, Value of good provided

    • Box 6c, Intangible religious benefit

    • Box 7, Under law cannot claim more than $500.

  4. Forms 1098–E; Edit box 1

    • Box 1, Student Loan interest received

  5. Form 1098–T; Edit boxes 1, 4,8 and 9

    • Box 1, Qualified tuition and related expenses

    • Box 4, Scholarships or grants

    • Box 8, Check if at least half-time student

    • Box 9, Check if a graduate student

  6. Form 1099–A; Edit Boxes 2, 4, 5 and 6.

    • Box 2, Balance of principal outstanding

    • Box 4, Fair market value of property

    • Box 5, Was borrower personally liable for repayment of the debt?

    • Box 6, Description of property (up to 39 characters)

  7. Form 1099–B: Edit boxes 1(a), 1(b), 2, 3, 4, 5, 6, 7, 8, 9, 10, 11

    • Box 1(a), Date of Sale; this date must be in numeric MMDDYY format. Edit the date to MMDDYY format by circling the payers entry and entering the correct date fromat. YY must equal 05

    • Box 1(b), Cusip (Committee on Uniform Security Identification Procedures) Number. This field may be a combination of alpha and numeric, all numeric or blank. If more than 13 characters, circle rightmost in excess of 13.

    • Box 2, Stocks, bonds, etc.;(bracket negative amounts)

    • Box 3, Bartering

    • Box 4, Federal income tax withheld

    • Box 5, No. of shares exchanged

    • Box 6, Classes of stock exchanged

    • Box 7, Description, this field can have up to 39 alpha numeric characters. For descriptions longer than 39 characters, abbreviate where possible, otherwise, delete the rightmost characters in excess of 39.

    • Box 8, Profit or (Loss) realized in 2005; (Bracket negative amounts)

    • Box 9, Unrealized profit or (loss) on open contracts - 12/31/2004 (Bracket negative amounts)

    • Box 10, Unrealized Profit or (Loss) on open contracts - 12/31/2005 (Bracket negative amounts)

    • Box 11, Aggregate profit or (loss) (Bracket negative amounts)

  8. Form 1099–C: Edit Boxes 1,2,3,6,7.

    • Box 1, Date Canceled. This date must be in numeric MMDDYY format. Edit the date to MMDDYY format by circling the payers entry and entering the correct date format. YY myst equal 05.

    • Box 2, Amount of debt canceled

    • Box 3, Interest included in Box 2

    • Box 6, Debt was discharged in bankruptcy

    • Box 7, Fair market value of property

  9. Form 1099-CAP: Edit Boxes 1, 2, 3, 4

    • Box 1, Date of Exchange. This date must be in numeric MMDDYY format. Edit the date to MMDDYY format by circling the payers entry and entering the correct date format. YY must equal 05.

    • Box 2, Aggregate amount received

    • Box 3, No. of shares exchanged

    • Box 4, Classes of Stock exchanged

    • Box 6, Checkbox. A mark may be present in this box, no edit of this field is required

  10. Form 1099–DIV: Edit Boxes 1a, 1b, 2a, 2b, 2c, 2d, 3, 4, 5, 8 and 9.

    • Box 1a, Total Ordinary dividends

    • Box 1b, Qualified Dividends

    • Box 2a, Total Capital Gain Distr

    • Box 2b, Unrecap, Section 1250 gain

    • Box 2c Section 1202 gain

    • Box 2d, Collectible 28% Rate Gain

    • Box 3, Nondividend distribution

    • Box 4, Federal income tax

    • Box 5, Investment expenses

    • Box 6, Foreign Tax Paid

    • Box 8, Cash liquidation distribution

    • Box 9, Noncash liquidation distribution

  11. Form 1099–G: Edit boxes 1, 2, 3, 4, 5, 6, 7 and 8.

    • Box 1, Unemployment compensation

    • Box 2, State or Local Income tax refunds; this should only be numerics, The X must not be in Box 8. If an "X" appears after the numerics in Box 2, Income Tax Refunds, circle it out and move it to Box 8. If any other non-numeric character appears— edit it to an "X" as stated in 2 above.

    • Box 3, Refund is for tax year; if an amount is in Box 2 and Box 3 is blank, edit 05.

    • Box 4, Federal Income Tax Withheld

    • Box 5, ATAA Payments; all money amounts must be positive and be $600 or more.

    • Box 6, Taxable Grants

    • Box 7, Agriculture Payments

    • Box 8, The amount in Box 2 applies to income from a trade or business. A mark may be present in this box, no edit of this field is required.

  12. Form 1099–H:Edit boxes 1,2. Entries are not required for all boxes, but all entries should equal the gross amount in Box 1.

    • Box 1, Gross Amount of HCTC advance payments

    • Box 2, No. of mos. HCTC advance payments received

    • Box 3, advanced payment for January

    • Box 4, advanced payment for February

    • Box 5, advanced payment for March

    • Box 6, advanced payment for April

    • Box 7, advanced payment for May

    • Box 8, advanced payment for June

    • Box 9, advanced payment for July

    • Box 10, advanced payment for August

    • Box 11, advanced payment for September

    • Box 12, advanced payment for October

    • Box 13, advanced payment for November

    • Box 14, advanced payment for December

  13. Form 1099–INT: Edit boxes 1, 2, 3, 4 and 5.

    • Box 1, interest income not included in box 3. Interest paid on Series E Savings bonds is now reported in box 3. Because regulations allow reporting of this interest when it is paid, these returns may be received year-round. Forward any return marked 2004 to Receipt and Control to be held for processing in 2005. Edit any amounts identified as savings bond interest, but not entered in Box 3, as Box 3.

    • Box 2, Early withdrawal penalty

    • Box 3, Interest on US Savings bonds, etc

    • Box 4, Federal income tax withheld

    • Box 5, Investment expenses

  14. Form 1099–LTC: Edit boxes 1, 2, 3, and Box 4

    • Box 1, Gross long-term care benefits paid

    • Box 2, Accelerated death benefits paid

    • Box 3, Check one (Per diem/reimbursed amount check boxes) Insured's Social Security Number; Insured's Name

    • Box 4, Qualified contract checkbox

    • Box 5, Chronically Ill or Terminally Ill checkboxes; Date certified

  15. Form 1099–MISC: Edit boxes 1–10, box 13 and box 14. If there is an unidentified money amount on the form and the payer did not refile correctly (in accordance with the instructions in IRM 3.10.84.4) code the money amount to Box 7, Nonemployee compensation.

    • Box 1, Rents

    • Box 2, Royalties

    • Box 3, Other Income

    • Box 4, Federal income tax withheld

    • Box 5, Fishing Boat Proceeds

    • Box 6, Medical and health care payments

    • Box 7, Nonemployee compensation

    • Box 8, Substitute payments in lieu of dividends or interest

    • Box 9, Direct Sales check box

    • Box 10, Crop Insurance proceeds

    • Box 13, Excess golden parachute payments

    • Box 14, Gross proceeds paid to an attorney

    • Box 15a, Section 409A deferrals

    • Box 15b, Section 409A income

  16. Form 1099–OID: Edit boxes 1, 2, 3, 4, 5, 6 and 7

    • Box 1, Total Original Issue Discount for 2005

    • Box 2, Other periodic interest

    • Box 3, Early withdrawal penalty

    • Box 4, Federal income tax withheld

    • Box 5, Description, 39 alpha/numeric characters maximum. If the description is longer than 39 characters, abbreviate where possible, otherwise delete the rightmost characters.

    • Box 6, Original issues discount on U.S. Treas. Obligation

    • Box 7, Investment expenses

  17. Form 1099–PATR: Edit boxes 1, 2, 3, 4 and 5

    • Box 1, Patronage dividends

    • Box 2, Non-patronage distributions

    • Box 3, Per-unit retain allocations

    • Box 4, Federal income tax withheld

    • Box 5, Redemption of non-qualified notices

    • Box 6, Deduction for Qualified Production Activities Income

  18. Form 1099Q, Edit boxes 1, 2, 3, 4, 5 and 6.

    • Box 1, Gross distribution

    • Box 2, Earnings

    • Box 3, Basis

    • Box 4, Trust-to-Trust Rollover Checkbox

    • Box 5, Qualified Tuition Program Checkbox

    • Box 6, Designated Beneficiary checkbox

  19. Form 1099R, Edit boxes 1, 2a, 2b, 3, 4, 6 and 7 for dollar, and the code(s) in box 7 including the IRA/SEP/SIMPLE check box.

    • Box 1, Gross distribution

    • Box 2a, Taxable amount

    • Box 2b, Taxable amount not determined/Total distribution. (Two checkboxes)

    • Box 3, Capital gain

    • Box 4, Federal income tax withheld

    • Box 6, Net unrealized appreciation on employer's securities

    • Box 7, Category of distribution (See IRM 3.11.8.3.11 for allowable entries) IRA?SEP indicator.

    Note:

    If all the money fields on the return are zero or blank or the only amount is in Box 5 and/or Box 8, and it is an original return, pull the return and dispose of these documents in accordance with IRM 1.15.29. Ensure that the document count on the 1096 is adjusted.

  20. Form 1099–S: Edit boxes 1, 2, 3 and 4

    • Box 1, Date of closing, this date must be in numeric MMDDYY format. YY must equal 00

    • Box 2, Gross proceeds

    • Box 3, Description, 39 alpha/numeric characters maximum. If the description is longer than 39 characters, abbreviate where possible, otherwise delete the rightmost characters.

    • Box 4, Transferor Indicator

  21. Form 1099–SA: Edit boxes 1, 2, 3, 4 and 5

    • Box 1, Gross distribution

    • Box 2, Earnings on excess contributions

    • Box 3, Distribution Code

    • Box 4, FMV on date of death

    • Box 5, HSA, Archer MSA or MA + MSA checkboxes

  22. Form 5498: Edit boxes 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 and 11

    • Box 1, IRA contributions

    • Box 2, Rollover contribution

    • Box 3, Roth conversion

    • Box 4, Recharacterized contributions

    • Box 5, Fair market value of account

    • Box 6, Life insurance cost included in Box 1

    • Box 7, Check for IRA/SEP/SIMPLE/Roth IRA/Ed IRA

    • Box 8, SEP Contributions

    • Box 9, SIMPLE contributions

    • Box 10, Roth IRA contributions

    • Box 11, Checkbox for RMD 2006

    Note:

    Treat as zero any amount designated as "DS" , "Desert Storm" , or any variation of "Desert Storm" , if it appears in a transcription box. Ignore the amount if it appears in any of the six unused boxes under Box 5, Fair market value of account. This designation may appear through the Total 2003 processing year.

  23. Form 5498–ESA

    • Box 1, Coverdell ESA Contribution

    • Box 2, Rollover Contribution

  24. Form 5498–SA: Edit boxes 1, 2, 3, 4, 5 and 6

    • Box 1, E