3.10.8  Information Returns Processing

Manual Transmittal

November 05, 2013

Purpose

(1) This transmits revised IRM 3.10.8, Campus Mail and Work Control, Information Returns Processing.

Material Changes

(1) IPU 13U1135 issued 06-24-2013

  • IRM 3.10.8.2.1(1) Changed form listing for SCRIPS processable returns to a table.

  • IRM 3.10.8.2.1(1) IRM 2.0.73 reference was replaced.

  • IRM 3.10.8.3.2(3) Rephrased scannable determinations due to the amount of non conforming returns forwarded to the SCRIPS area for processing.

  • IRM 3.10.8.4.1(9)a, b The word payer was added to make the instruction clearer for the sort team.

  • IRM 3.10.8.6(1)d Instruction added to enter a batch identifier (Batch ID) on each batch of ISRP IRP created for processing through the pipeline.

(2) IRM 3.10.8.2.6(1) Misdirected taxpayer submissions received at the Service which should be filed with Social Security Administration (SSA) for processing must be keep intact prior to forwarding.

(3) IRM 3.10.8.3(4)b Tax years for which counts must be maintained were updated to reflect the new tax year and valid delinquent processed years.

(4) IRM 3.10.8.3.7(4) Box numbers for Form W-2G were updated to reflect form changes.

(5) IRM 3.10.8.4.2(5)a The following form types received payment amount field updates to reflect form changes: Form 1097-BTC, Form 1098, Form 1099-MISC, Form 1099-OID, Form 5498 and Form W-2G.

(6) IRM 3.10.8.6(1)b All reference to Account Type Codes J and T for batching of foreign information returns was deleted.

Effect on Other Documents

IRM 3.10.8 dated October 26, 2012 (effective January 1, 2013) is superseded.

Audience

Receipt and Control Employees

Effective Date

(01-01-2014)


Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.10.8.1  (01-01-2014)
Purpose

  1. These instructions cover receipt and control processing of the following domestic information returns:

    • Form 1096 , Annual Summary and Transmittal of U.S. Information Returns

      Note:

      Current and Delinquent processed to the Payer Master File (PMF)

    • Form 1097-BTC, Bond Tax Credit;

    • Form 1098, Mortgage Interest Statement;

    • Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes;

    • Form 1098-E, Student Loan Interest Statement;

    • Form 1098-T, Tuition Statement;

    • Form 1099-A,Acquisition or Abandonment of Secured Property;

    • Form 1099-B, Proceeds From Broker and Barter Exchange Transactions;

    • Form 1099-C, Cancellation of Debt;

    • Form 1099-CAP, Changes in Corporate Control and Capital Structure;

    • Form 1099-DIV, Dividends and Distributions;

    • Form 1099-G, Certain Government Payments;

    • Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments;

    • Form 1099-INT, Interest Income;

    • Form 1099-K, Merchant Card and Third Party Payments;

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

    • Form 1099-MISC, Miscellaneous Income;

    • Form 1099-OID, Original Issue Discount;

    • Form 1099-PATR, Taxable Distributions Received From Cooperatives;

    • Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 & 530);

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

    • Form 1099-S, Proceeds From Real Estate Transaction;

    • Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA;

    • Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b);

    • Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c);

    • Form 5498, IRA Contribution Information;

    • Form 5498-ESA, Coverdell ESA Contribution Information;

    • Form 5498-SA, Medical Savings Account Information;

    • Form W-2G, Certain Gambling Winnings;

  2. The instructions for processing Form W-2, Wage and Tax Statement, Form W-2 C, Corrected Wage and Tax Statement, Form W-3, Transmittal of Wage and Tax Statements, and Form W-3 C, Transmittal of Corrected Wage and Tax Statements, consist solely of procedures for routing and disposal of these forms.

  3. Instructions in IRM 3.10.72, Receiving, Extracting, and Sorting and IRM 3.10.73 Batching and Numbering should be used as a source of general guidelines not found in this IRM.

3.10.8.1.1  (01-01-2014)
Scope

  1. These instructions apply to any campus that will process Information Return Programs listed in the purpose above.

3.10.8.1.2  (01-01-2014)
Program Codes

  1. Use the following program codes as appropriate:

    Exception:

    Form 1098-MA, Mortgage Assistance Payments will not be processed by Information Return Processing (IRP) Sort Unit or Information Return Processing. Ship all Form 1098-MA, Mortgage Assistance Payments to Stop 6728 Austin Submission Processing Center (AUSPC) for retention.

    Note:

    Form 1099-H will not be routed for processing. Refer any Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments, submissions to the Submission Processing Planning and Analysis Staff.

    Returns Processed by:
    Integrated Submission and Remittance Processing (ISRP)
    Program
    Code
    • Form 1096, Annual Summary and Transmittal of U.S. Information Returns

      Note:

      Current year transmitting ISRP processed returns and prior year submissions meeting selection criteria.

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

    44310
    Form 1097-BTC, Bond Tax Credit 44307
    • Form 1098, Mortgage Interest Statement

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

    • Form 1098-E, Student Loan Interest Statement

    • Form 1098-T, Tuition Statement

    44312
    Form 1099-A, Acquisition or Abandonment of Secured Property 44309
    Form 1099-B, Proceeds From Broker and Barter Exchange Transactions 44301
    • Form 1099-C, Cancellation of Debt

    • Form 1099-CAP, Changes in Corporate Control and Capital Structure

    • Form 1099-G, Certain Government Payments

    44303
    Form 1099-DIV, Dividends and Distributions 44302
    • Form 1099-INT, Interest Income

    • Form 1099-K, Merchant Card and Third Party Payments

    • Form 1099-LTC, Long-Term Care and Accelerated Death Benefits

    • Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

    44300
    Form 1099-MISC, Miscellaneous Income 44305
    Form 1099-OID, Original Issue Discount 44304
    Form 1099-PATR, Taxable Distributions Received From Cooperatives 44307
    Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 & 530)
    Form 1099-S, Proceeds From Real Estate Transaction
    44308
    Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc 44306
    Form 5498, IRA Contribution Information
    Form 5498-ESA, Coverdell ESA Contribution Information
    44313
    Form 5498-SA, Medical Savings Account Information 44315
    Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b) 44317
    Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) 44318
    Form W-2G, Certain Gambling Winnings 44314

    Returns Processed by:
    Service Center Recognition/Imaging Processing System (SCRIPS)
    Program
    Code
    Service Center Recognition/Image Processing System (SCRIPS)
    • Form 1096, Annual Summary and Transmittal of U.S. Information Returns

      Note:

      Current year being processed only.

    • Form 1097-BTC, Bond Tax Credit

    • Form 1098, Mortgage Interest Statement

    • Form 1098-E, Student/Loan Interest Statement

    • Form 1098-T, Tuition Payments Statement

    • Form 1099-A, Acquisition or Abandonment of Secured Property

    • Form 1099-B, Proceeds from Broker and Barter Exchange Transactions

    • Form 1099-C, Cancellation of Debt

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-G, Certain Government Payments

    • Form 1099-INT, Interest Income

    • Form 1099-K, Merchant Card and Third Party Network Payment

    • Form 1099-MISC, Miscellaneous Income

    • Form 1099-OID, Original Issue Discount

    • Form 1099-PATR, Taxable Distributions Received from Cooperatives

    • Form 1099-Q, Qualified Tuition Program Payments

    • Form 1099-R, Total Distributions from Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, etc.

    • Form 1099-S, Proceeds from Real Estate Transactions

    • Form 5498, Individual Retirement Arrangement Information

    44340

3.10.8.1.3  (01-01-2014)
Definitions

  1. Account Type Code—a code in the Block Header Record (Form 1332, Block and Selection Record, or Form 3893, Re-Entry Document Control) distinguishing the entity or selection category of the return(s) in that block.

  2. Change of Payer—any point in a block of returns at which any part of the payer filer entity changes.

  3. Copy A — Form 1097, Bond Tax Credit, Form 1098 (Series), Form 1099 (Series), Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b, Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), and Form 5498 (Series) should be in the correct scannable format, ink color, and tax year being processed. Copy A is the copy of the form which is submitted to the Service for processing. These forms can be separated into four categories:

    Category Definition
    Scannable The scanner can read all or most of the information printed on the forms.
    Non-Scannable The scanner cannot read any information on the forms, but the forms can be passed through the scanner's transport for the generation and imprinting of Document Locator Numbers (DLN)s on the forms.
    Non-Transportable The scanner cannot accept these forms because they are cut, torn, or mutilated.
    Unprocessable These documents cannot be processed at all because the information is unclear, indecipherable, or the utility of the document is minimized or eliminated. Refer to Pub 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns, and IRM 3.41.269, Information Returns Processing on SCRIPS, for reference.

    Note:

    Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has only one copy. They should be in the correct scannable format, ink color and tax year being processed. However, photocopies of Form 1096, Annual Summary and Transmittal of U.S. Information Returns, are considered processable. Current tax year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting prior year information returns may require correspondence if the tax year to which the information pertains is not clear.

  4. Corrected Return — return with "X" marked in the corrected box at the top of the form or the word "Corrected" or "Amended" is written on the information return.

  5. Domestic Payer Return — any information return submitted on an official IRS information return or an approved substitute not meeting the definition for a Foreign Treaty Information Return.

  6. Foreign Payer — any payer filing Foreign Treaty Information Returns.

  7. Foreign Treaty Information Return — any information return furnished by foreign governments, businesses, or individuals to the Internal Revenue Service to report amounts paid to businesses or individuals claiming U.S. residency. These returns will not be submitted on official IRS information return forms that are processed in the normal domestic Information Return Program (IRP).

  8. Parent Return — the return which transmits the related information returns. The payer entity on the parent return must agree with the payer entity on the forms they transmit (abbreviations of names are considered the same, but the taxpayer identification number (TIN) must be an exact match).

    Parent Return Information Return
    Form 1096 Form W-2G, Form 1097 (Series), Form 1098 (Series), Form 1099 (Series), Form 5498 (Series), Form 3921, Form 3922
    Form W-3 Form W-2
    Form W-3 C Form W-2 C

  9. Payer—generally, payer information is found in the upper portion of Information Return Processing (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

    • Borrower

    Note:

    For Form 1098, Borrower / Payer means Payee.

  10. 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

    • Lender

    1. Form 1098, Mortgage Interest Statement, Recipient/Lender means Payer

    2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, does not contain payee information.

  11. Payer identifier—a gummed label or other identifier (such as highlighting) placed on the information return to signify a change of payer. It is used to alert ISRP to a change of payer and to accurately determine payer counts. Payer identifiers may be attached by Receipt and Control or Document Perfection at the discretion of campus management. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be used in lieu of a gummed label for scannable forms.

  12. Single Return Payer—any payer for whom only one return is selected through the detail sort. All single return payers should be combined and batched separately to eliminate the need for payer identifiers for ISRP processing. This does not apply to scannable returns.

  13. TIN - (taxpayer identification number), either SSN - (social security number) or EIN - (employer identification number).

  14. Correspondence indicators — a two digit number which, if applicable, is coded on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to generate letters to filers who did not file correctly. These indicators post to the Payer Master File (PMF) to establish a history of the filer.

  15. Prior year return — a return which reports information that does not pertain to the tax year currently being processed (calendar year minus one or more). The Service does not process prior year Form 1097 (Series), Form 1098 (Series), Form 1099 (Series) and Form 5498 (Series) , however, the Service does process certain prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    Note:

    Form 3921 and Form 3922 will be processed as current year returns.

  16. Late filing indicator—a character placed in the first box under the title "For Official Use Only" on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns . This indicator will post to the PMF for use in generating a late-filing notice to the payer.

3.10.8.2  (01-01-2014)
Inspection Of Contents

  1. Dispose of all information returns not mentioned in IRM 3.10.8.2, Inspection of Contents, and IRM 3.10.8.3, Detailed Sorting. Management must review all original forms (not copies) before disposal.

  2. Form 1099 (Series) are to be processed in accordance with Records Control Schedule 206, Campuses, of IRM 1.15.2 Types of Records and Their Life Cycles. Apply the disposition instructions for Form 1099.

  3. Process Form 1097 (Series), Form 1098 (Series), Form 1099 (Series), Form 3921, Form 3922, Form 5498 (Series), Form W-2G , Certain Gambling Winnings, and Form 1096, Annual Summary and Transmittal of U.S. Information Returns, according to instructions for each type of return in IRM 3.10.8.3.

  4. If the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has a money amount entered in box 5, and did not come with detail documents correspond or call the taxpayer requesting the Information Returns that should have been attached to the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the correct box to mark in the type of form section.

  5. If there is no money amount entered in box 5, mark the "Miscellaneous" box in the type of form section and process.

  6. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, submitted individually, without payee returns or were disassociated from their respective information returns during IRP processing, must be processed through ISRP. Box 3, Total Number of Documents, should be coded zero on these submissions.

  7. Attempt to associate transmittals with disassociated payee forms before sending to ISRP.

  8. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting only voided information returns will not be processed.

  9. Route any Form 8210, Self-Assessed Penalties Return, to the unit that assesses and abates IRP penalties.

  10. Correspondence received attached to information returns should be routed as follows:

    1. Correspondence concerning an incorrect information return(s):

      Taxpayer type Description of Correspondence
      From Payer Correspond using Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc. Use fill-in paragraph that instructs the payer to file corrected return(s).
      From the Payee Route to Accounts Management Branch for analysis and disposition.

    2. When corrected information returns are attached to the correspondence, forward to IRP Correspondence unit to determine if the information returns require processing. If it is determined the information returns require processing, they will be detached from the correspondence and forwarded for processing. Notate on the correspondence that the information returns were detached and sent to be processed.

  11. Filers of information returns may attach correspondence with their submissions to explain why taxpayer identification numbers were not provided on some or all of their information returns. When this type of correspondence is identified, respond to the filer on Integrated Data Retrieval System (IDRS) Correspondex Letter. After a response has been issued, dispose of the incoming correspondence.

3.10.8.2.1  (01-01-2014)
General Correspondence

  1. Correspondence meeting Taxpayer Advocate Service (TAS) criteria listed in IRM 13.1.7.2, TAS Case Criteria, will be routed to the local TAS office.

  2. Correspondence concerning anything other than information returns will be routed to the Accounts Management for review to determine appropriate action.

  3. Correspondence concerning 50 or more recipient accounts being in error will be routed to the payor coordinator in the Underreporter Branch in Ogden. See Exhibit 3.10.8-2 for complete mailing address.

  4. Correspondence concerning a CP 2000, Request for Verification of Unreported Income, Payments, or Credits, notice. See Servicewide Electronic Research Program (SERP) under the Who/Where tab choose AUR Addresses (Open Cases) and determine the appropriate site. Include the provided stop number on each transmittal.

  5. Correspondence concerning current year Form W-2, Wage and Tax Statement and Form W-3, Transmittal of Wage and Tax Statements, will be forwarded to SSA. "Correspondence" concerning prior year Form W-2, Wage and Tax Statement and Form W-3, Transmittal of Wage and Tax Statements, should be forwarded to the Combined Annual Wage Reporting (CAWR) function. See Exhibit 3.10.8-2, Mail Stops and Addresses for Disposition of Informational Return Program, for the appropriate mailing addresses.

  6. When a " letter or notice" from the CAWR Reconciliation Function is received from the taxpayer, the correspondence, as well as any forms or information submitted with it, should be sent to the CAWR Function. "Do not remove any of the information or forms" (Form 94x, Schedule H, Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form W-2G, Certain Gambling Winnings, Form W-2, Wage and Tax Statement, or Form W-3, Transmittal of Wage and Tax Statements) submitted with the CAWR letter or notice received from the taxpayer. Use the complete street address and mail stops found in Exhibit 3.10.8-2 when routing information to CAWR.

3.10.8.2.2  (01-01-2014)
CP 15, Civil Penalties Notice, or CP 215, Civil Penalty - 500 and 600 Series

  1. If information returns have a CP 15, Civil Penalties Notice, or CP 215, Civil Penalty - 500 and 600 Series, attached and the information returns are processable, do the following:

    1. Code Delinquent Return Indicator "N" on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Do not code a received date.

    2. Remove the information returns and send for regular processing.

    3. Notate on the CP 15 or CP 215"Processable returns submitted" , the date received and the number of processable documents.

    4. Send the CP 15 or CP 215 to the appropriate area for further action on any returns (Form 94x, Schedule H, Form W-2, Wage and Tax Statement, or Form W-3, Transmittal of Wage and Tax Statements) remaining with the notice.

    5. Refer to IRM 3.10.72, Receiving, Extracting, and Sorting, Exhibit 3.10.72-2, "Correspondex C Letters - Routing Guide" for proper routing based on the PRN (3 digit - Penalty Reference Number) printed on the notice.

3.10.8.2.3  (01-01-2014)
CP 2100, Please Check Your Backup Withholding List ("Large" payers), or CP 2100A, Please Check Your Backup Withholding List ("Small" payers)

  1. If dated before 09/30/2007, return to the issuing campus. The issuing campus name will be listed in the upper left hand corner of the notice.

  2. If dated 10/01/2007 or after, send to the Philadelphia Campus Back Up Withholding (BUWH) unit. See Exhibit 3.10.8-2 for the Stop numbers.

3.10.8.2.4  (01-01-2014)
Prior Year Forms

  1. All prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be date stamped upon receipt.

  2. Prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be processed through ISRP. Refer to IRM 3.10.8.3.5. Once processing of Prior Year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is complete, the forms will be routed to SCRIPS for imaging before routing to the IRP Penalty unit in Philadelphia. See Exhibit 3.10.8-2.

  3. Forward all prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, marked "PENALTY CONSIDERED" to the IRP Code and Edit function. Do not code the Delinquent Indicator or received date on these Form 1096, Annual Summary and Transmittal of U.S. Information Returns; a penalty assessment has already been considered.

  4. Process prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, marked "Reasonable cause or due diligence was exercised" or "Information Returns were unprocessable—PMF only" as timely filed returns.

  5. Prior year Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, and Form W-2G, Certain Gambling Winnings, will be processed as follows:

    1. Prior year Form W-2G and Form 1099-R and the transmitting Form 1096"with correspondence" will be routed to the CAWR Reconciliation function with the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns, prior to processing.

    2. Destroy all prior year Form W-2G and Form 1099-R that do not have correspondence after the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is edited for processing according to IRM 3.11.8.4.7, Information Return Processing, Editing Other Items.

3.10.8.2.5  (01-01-2014)
Date Stamping Late Filed Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. All current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting Form 1097, Bond Tax Credit, Form 1098 (Series), Form 1099 (Series) with the exception or type "G" and type "R" or Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b), Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), and Form W-2G received after March 15 must be date stamped upon receipt. Do not date stamp Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting Form 5498, Form 5498-SA, Form 1099-G, Certain Gambling Winnings, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc . Follow general guidelines found in IRM 3.10.72 , Receiving, Extracting, and Sorting for date stamping late-filed returns.

    1. Date stamp current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in the blank area above the wording "For Official Use Only" . The date stamp must not cover the fill-in boxes.

    2. In the first box under the wording "For Official Use Only " , code an "X" with a #2 pencil.

      Note:

      Do Not use red ink to edit IRP documents.

    3. When a reply is received from the taxpayer to the Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc., use date stamp, if present, on the original return to ensure the appropriate received date is captured when the new forms are processed.

      Note:

      If a reply is received after the no reply case is forwarded for penalty assessment, process the new complete submission with the actual received date of the response.

    4. Do not date stamp a return when the original was unprocessable, but timely filed.

  2. Some Form 1096, Annual Summary and Transmittal of U.S. Information Returns, even though received late, should not be date stamped or coded. The conditions for which a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will not be date stamped or coded are given below:

    1. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting Form 5498, IRA Contribution Information, Form 5498-SA, Medical Savings Account Information, Form 1099-G, Certain Government Payments, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.

    2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, that were incorrectly sent to state taxing agencies or the Social Security Administration (SSA) where the envelopes show that a state agency or SSA are forwarding forms to the Service.

      Note:

      However, if the original receiving location either stamped a received date indicating a late filing, or forwarded the original mailing envelope which indicated a late filing, accept the transmittal as late filed and follow the instructions in IRM 3.10.8.2.5(1) above.

    3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, that have been coded "A" , "C" , "N" or "E" in the top center of the form, or the Delinquent Indicator box.

    4. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, received with no supporting detail documents.

    5. See IRM 3.10.72.5.8.1, "Tax Returns/Extensions Forwarded to IRS from a State" or IRM 3.10.72.6.1, "IRS Received Date" for additional guidelines on determining timeliness.

  3. If a payer sent in a letter explaining why the returns are late, date stamp the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and forward to the IRP Unit for processing through SCRIPS or ISRP.

  4. Delinquent current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, received too late to be processed in the current processing year will be held until ISRP "start-up" for the next year IRP program.

  5. Late filed Form W-3, Transmittal of Wage and Tax Statements, transmitting Form W-2, Wage and Tax Statement, must also be date stamped. If Form W-2, Wage and Tax Statement, are received with a Form W-3, Transmittal of Wage and Tax Statements, date stamp the first Form W-2, Wage and Tax Statement, in the submissions. See IRM 3.10.8.2.2.

  6. For Form 1099-DIV, Dividends and Distributions, submissions that are received late and only have information reported in box 5 and/or box 6, "DO NOT" place a late filing indicator or received date on Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

3.10.8.2.6  (01-01-2014)
Form W-2, Wage and Tax Statement, Form W-2 C, Corrected Wage and Tax Statement, Form W-3, Transmittal of Wage and Tax Statements and Form W-3 C, Transmittal of Corrected Wage and Tax Statements

  1. Form W-2, Wage and Tax Statement, Form W-2 C, Corrected Wage and Tax Statement, Form W-3, Transmittal of Wage and Tax Statements and Form W-3 C, Transmittal of Corrected Wage and Tax Statements, will not be separated (submissions will be held intact) and will be processed as follows:

    1. Any current tax year copy received will be sent to the SSA address listed below.

    2. All future tax year returns will be sent to the SSA address listed below.

    3. Any prior year returns that are received "with correspondence or Combined Annual Wage Reporting (CAWR) related correspondence " will be routed to the CAWR Reconciliation Function. Cases should be routed in accordance with the Campus Program Locator Guide. The guide can be found on Servicewide Electronic Research Program (SERP) under the Who/Where tab http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/27_cawr_futa.htm. Select, 2009 IRS-CAWR and 2008 SSA-CAWR Programs, under the heading SBSE Compliance Services.

  2. SSA Address- Send Copy A of Form W-2, Wage and Tax Statement, Form W-2 C, and Form W-3, Transmittal of Wage and Tax Statements, from payers to:

    Social Security Administration
    Wilkes-Barre Data Operations Center
    Wilkes-Barre, PA 18769

  3. Copies A of Form W-2 GU, Guam Wage and Tax Statement and Form W-2 VI, U.S. Virgin Islands Wage and Tax Statement, are not for IRS use. Form W-3 SS, Transmittal of Wage and Tax Statements, will transmit these form types. Send to:

    Social Security Administration
    Wilkes-Barre Data Operations Center
    Wilkes-Barre, PA 18769

  4. Copies A of Form W-2 AS, American Samoa Wage and Tax Statement, transmitted by Form W-3 SS , Transmittal of Wage and Tax Statements. Send to:

    American Samoan Tax Office
    Government of American Samoa
    Pago Pago, AS 96799

  5. Ensure that the payer's submission remains intact (Form W-3, Transmittal of Wage and Tax Statements, with related Form W-2, Wage and Tax Statement, (Copy A)), whether the submission is sent to SSA or the CAWR Reconciliation Function (as outlined in IRM 3.10.8.2 ). Do not staple Form W-3, Transmittal of Wage and Tax Statements, to related Form W-2, Wage and Tax Statement. Put the payer submission back into the original envelope/container that the records were received in.

  6. Ship documents in accordance with IRM 3.13.62, Media Transport and Control, following Personally Identifiable Information (PII) guidelines. Prepare Transmittal Form W-2, Wage and Tax Statement. Ship documents on a weekly basis. SSA is required to acknowledge receipt.

  7. Separate late-filed Form W-3, Transmittal of Wage and Tax Statements, and Form W-2, Wage and Tax Statement, from those that were timely filed. Annotate on the Form 3210, Document Transmittal, "Delinquent Returns" . They can be mailed in the same shipment.

  8. Form W-3, Transmittal of Wage and Tax Statements and Form W-2, Wage and Tax Statement, received for subsequent tax years will be forwarded to SSA. Send to:

    Social Security Administration
    Wilkes-Barre Data Operations Center
    Wilkes-Barre, PA 18769

3.10.8.3  (01-01-2014)
Detailed Sorting

  1. Returns must be reviewed within "30 days of receipt" to allow timely correspondence with the filer of unprocessable returns. This will allow the filer time to obtain and prepare the proper forms to re-file.

  2. Sort Integrated Submission and Remittance Processing (ISRP) processed returns by return type and tax year. Service Center Recognition/Image Processing System (SCRIPS) processed returns will not require return type sorting. The Form 1096, Annual Summary and Transmittal of U.S. Information Returns, should remain with the returns it is transmitting.

  3. DO NOT forward ISRP processed only IRP returns to Service Center Recognition/Image Processing System (SCRIPS).

  4. Succeeding year returns must be held for inclusion with returns received for that succeeding year, including Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    1. Some regulations allow filers to file information returns on a transactional basis.

    2. Volume counts of receipts of Information Returns received in processing year 2014 must be maintained for the tax years 2010 through 2013.

  5. Each return type must have its own transmittal document.

  6. The following forms are processed through Service Center Recognition/Image Processing System(SCRIPS):

    • Form 1096, Annual Summary and Transmittal of U.S. Information Returns

      Note:

      Current year transmitting the returns below.

    • Form 1097-BTC, Bond Tax Credit

    • Form 1098, Mortgage Interest Statement

    • Form 1098-E , Student/Loan Interest Statement

    • Form 1098-T, Tuition Payments Statement

    • Form 1099-A, Acquisition or Abandonment of Secured Property

    • Form 1099-B, Proceeds from Broker and Barter Exchange Transactions

    • Form 1099-C, Cancellation of Debt

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-G, Certain Government Payments

    • Form 1099-INT, Interest Income

    • Form 1099-K, Merchant Card and Third Party Network Payment

    • Form 1099-MISC, Miscellaneous Income

    • Form 1099-OID, Original Issue Discount

    • Form 1099-PATR, Taxable Distributions Received from Cooperatives

    • Form 1099-Q, Qualified Tuition Program Payments

    • Form 1099-R, Total Distributions from Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, etc.

    • Form 1099-S, Proceeds from Real Estate Transactions

    • Form 5498, Individual Retirement Arrangement Information

  7. The following forms require ISRP processing:

    • Prior Year Form 1096, Annual Summary and Transmittal of U.S. Information Returns

    • Form 1096 , Annual Summary and Transmittal of U.S. Information Returns, transmitting detail documents processed on ISRP.

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

    • Form 1099-CAP, Changes in Corporate Control and Capital Structure

    • Form 1099-LTC, Long Term Care and Accelerated Death Benefits

    • Form 1099-SA, Distribution from Medical Savings Account

    • Form 5498-ESA, Coverdell ESA Contribution Information

    • Form 5498-SA, Medical Savings Account Information

    • Form W-2G, Certain Gambling Winnings

    • Form 3921, Exercise of Incentive Stock Options

    • Form 3922, Transfer of Stock Acquired Through Employee Stock Purchase

  8. It is not necessary to separate returns with payee TINs from returns without payee TINs.

  9. Copy "B" and Copy "C" of any information return listed in IRM 3.10.8.1.2 received in the campus with a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be treated as Copy "A" .

    1. Process the returns as you would Copy "A" .

    2. If Copy "B" and/or Copy "C" are received reporting the same information, dispose of one of the copies.

    3. Code the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, using the appropriate correspondence indicator.

    4. Dispose of all Copies "B" and "C" received without a Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If other than Copies "A" are received without a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, but with correspondence indicating that it is an intended submission, prepare a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, (see IRM 3.10.8.4.1) and process the forms as Copies A.

    5. If Copy "A" is received with a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and a state transmittal, process the submission and destroy the state transmittal.

    6. Destroy all copies "B" , copies "C" , Copy "1" or Copy "2" , or any copy designated for a state received without a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or a state transmittal.

    7. Process as Copy "A" all forms designated for the state (e.g., Copy "2" , Copy "S" ) received with a Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    8. Forward to the appropriate state office all copies designated as state copies received with a state transmittal, per instructions in IRM 3.13.62"Media Transport and Control" ensuring Form 3210, Document Transmittal, is included and PII guidelines are followed.

  10. Void all information returns which do not have a money amount greater than $1.00 by placing an "X" with a #2 pencil in the void box at the top of the return. This procedure does not apply to:

    1. Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, with "cents only" in box 4,

    2. Form 1099-MISC, Miscellaneous Income, with a mark in box 9, and

    3. Corrected returns

  11. Dispose of all submissions that contain only voided documents. This includes submissions voided by IRS based on instructions in IRM 3.10.8.4.3. Managerial review is required prior to disposing of a voided submission.

  12. See IRM 3.10.8.2.5 for processing returns received after March 15.

3.10.8.3.1  (01-01-2014)
Sorting for Service Center Recognition/Image Processing System (SCRIPS) Processing

  1. Only the following current year forms will be processed by SCRIPS:

    Form Number and Title Maximum Number of Forms Per Page
    Form 1096, Annual Summary and Transmittal of U.S. Information Returns

    Note:

    Current year transmitting the returns below.

    1-UP
    Form 1097-BTC, Bond Tax Credit 2-UP
    Form 1098, Mortgage Interest Statement 3-UP
    Form 1098-E , Student/Loan Interest Statement 3-UP
    Form 1098-T, Tuition Payments Statement 3-UP
    Form 1099-A, Acquisition or Abandonment of Secured Property 3-UP
    Form 1099-B, Proceeds from Broker and Barter Exchange Transactions 2-UP
    Form 1099-C, Cancellation of Deb 3-UP
    Form 1099-DIV, Dividends and Distributions 2-UP
    Form 1099-G, Certain Government Payments 3-UP
    Form 1099-INT, Interest Income 3-UP
    Form 1099-K, Merchant Card and Third Party Network Payment 2-UP
    Form 1099-MISC, Miscellaneous Income 2-UP
    Form 1099-OID, Original Issue Discount 3-UP
    Form 1099-PATR, Taxable Distributions Received from Cooperatives 3-UP
    Form 1099-Q, Qualified Tuition Program Payments 3-UP
    Form 1099-R, Total Distributions from Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, etc. 2-UP
    Form 1099-S, Proceeds from Real Estate Transactions 3-UP
    Form 5498, Individual Retirement Arrangement Information 2-UP

    .

    Note:

    The following forms will not be processed on SCRIPS and will not be released to SCRIPS: Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes, Form 1099-CAP, Changes in Corporate Control and Capital Structure, Form 1099-LTC, Long-Term Care and Accelerated Death Benefits, Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, Form 5498-ESA, Coverdell ESA Contribution Information, Form 5498-SA, Medical Savings Account Information, Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b), Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), Form W-2G, Certain Gambling Winnings, and prior year returns including Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, are processed through SCRIPS and must remain with the returns they transmit.

3.10.8.3.2  (01-01-2014)
Scannable Payer Submissions

  1. Official IRS forms are used or an identical substitute.

  2. The information is typewritten or machine-printed within the parameters of any given field. Some returns may be received with all data typed or printed, except the payer data is stamped or handwritten. This will not make the returns non-scannable.

  3. Ensure there are the appropriate number or less of information documents on a single page. See IRM 3.10.8.3.1 for the appropriate returns per page.

  4. If the returns meet the above criteria, disregard and or correct the following conditions:

    1. Burst and strip all returns, if still attached.

    2. Returns with typographical errors which have or have not been corrected in scan lines or those with handwritten money amounts will be treated as scannable.

    3. One of the documents on the page is in error and the payer has crossed the document out rather than using the void box with a #2 pencil. Do not mark the form in any other manner.

    4. Returns which have been stapled. Carefully remove all staples and be sure not to tear or rip the information returns. Never staple information returns.

    5. Returns which have asterisks or other indicators in the money amounts are scannable.

3.10.8.3.3  (01-01-2014)
Non-scannable

  1. The information is printed legibly but cannot be read by the scanner.

  2. Consult the SCRIPS unit to clarify what can be read by the scanner.

  3. All non-scannable forms which are not torn, cut or separated may be physically fed through the scanner for processing.

  4. Refer to IRM 3.41.269.3.4, Unprocessable Conditions, for specifics.

3.10.8.3.4  (01-01-2014)
Non-transportable

  1. Non-transportable documents are those that are torn, cut or separated, or for any other reason will not be acceptable for processing by the scanner.

    1. Non-transportable forms must be photocopied. The photocopies can be processed through the scanner.

    2. Some campuses may elect to process non-transportable information returns through ISRP.

3.10.8.3.5  (01-01-2014)
Detailed Sorting of Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form 1097 (Series), Form 1098 (Series), Form 1099 (Series), Form 3921, Form 3922, Form W-2G, Certain Gambling Winnings, and Form 5498 (Series)

  1. Prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be processed through ISRP.

  2. Do not dispose of the Form 1097 (Series), Form 1098 (Series), Form 1099 (Series), Form 5498 (Series) and the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitted if the Information Returns are current year.

  3. When only one return is received for a payer, place the return in a group of single payer returns. Do this only for current year information returns.

  4. When more than one return is received for a payer place the returns in a group of multiple payer returns. Do this only for current year information returns.

  5. Sort current year returns by type of return making sure that the first return for each payer contains the correct payer name and TIN.

  6. Any information return that is to be processed through ISRP must be batched and numbered.

    1. Each current year information return must contain the DLN of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, (Parent Return) it was transmitted with.

    2. Dispose of prior year information detail returns (except Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, or Form W-2G, Certain Gambling Winnings, with an amount reported in Federal Income Tax Withheld) after the transmitting Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has been properly coded.

3.10.8.3.6  (01-01-2014)
Detailed Sorting for Service Center Recognition/Image Processing System (SCRIPS) Processing

  1. Only current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the SCRIPS processable returns listed in IRM 3.10.8.3(6) will be processed through SCRIPS.

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, processed through SCRIPS and must remain with the returns they transmit.

  3. A Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be present for each type of return within each submission. If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is not present for each of the above conditions, create a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, so that each return type has a Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Use the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or an information return as a source for information. Annotate "Prepared by IRS" on the signature line of any Form 1096, Annual Summary and Transmittal of U.S. Information Returns, created by the Service and assign the correspondence indicator "99" .

  4. Sort returns by the categories of transportable and non-transportable. Centers are not required to sort the documents sent to SCRIPS by form type.

  5. Transportable returns are those that are not torn, cut, or separated and can be physically sent through the scanner.

    1. Burst and strip continuous roll/printed returns, if necessary.

    2. Carefully remove staples; never staple documents together.

    3. Tape a cut/torn document, if it will make it transportable.

  6. A non-transportable return is one that is torn, cut, separated, inappropriate size, or for any other reason will not be acceptable for processing through the scanner. Non-Transportable Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be photocopied and made transportable even if transmitting ISRP processed only returns. The photocopies will be imaged through the scanner after ISRP processing and the transmittal image archived.

3.10.8.3.7  (01-01-2014)
Detailed Sorting Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc and Form W-2G, for Combined Annual Wage Reporting (CAWR) Reconciliation

  1. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting prior year Form W-2G, Certain Gambling Winnings, and Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, will be processed for CAWR Reconciliation.

  2. If the entire payer's submission is for a subsequent tax year, hold the entire submission for the appropriate processing year in Receipt and Controls' inventory.

  3. See IRM 3.10.8.2.5(1) for processing Form 1096 and Form W-2G, Certain Gambling Winnings, filed after March 16.

  4. Form 1096, Annual Summary and Transmittal of U.S. Information Returns and Form W-2G, Certain Gambling Winnings, are sorted as follows:

    1. If the Date Won (box 2) on a current Form W-2G, Certain Gambling Winnings, reflects a prior tax year's winnings, pull those documents. Annotate on the back of the related Form 1096, Annual Summary and Transmittal of U.S. Information Returns, the number of Form W-2G, Certain Gambling Winnings, that have been pulled from the payer's submission. Forward the pulled Form W-2G, Certain Gambling Winnings, to the CAWR Reconciliation Function. Provide Reconciliation an explanation as to why these documents were pulled from the payer's submission. See CAWR addresses and stop numbers in Exhibit 3.10.8-2.

    2. If the Date Won (box 2) on a current Form W-2G, Certain Gambling Winnings, reflects subsequent tax year(s) winnings, pull those documents. Annotate on the back of the related Form 1096, Annual Summary and Transmittal of U.S. Information Returns, the number of Form W-2G, Certain Gambling Winnings, that have been pulled from the payer's submission. Hold those pulled Form W-2G, Certain Gambling Winnings, for the appropriate processing year (creating a "Dummy" Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in the appropriate processing year). Forward the Form 1096, Annual Summary and Transmittal of U.S. Information Returns and remaining Form W-2G, Certain Gambling Winnings, for ISRP processing.

3.10.8.4  (01-01-2014)
Review General

  1. Retain the information returns grouped by payer (Parent) within type of return, within tax year.

  2. Burst and strip the returns, if necessary.

  3. All staples, paper clips, etc., must be removed from the information returns.

  4. Returns secured by Examination or Collection may have an "A" , "C" , "E" , or "N" edited in the top center of the form or in the Delinquent Indicator box on Form 1096, Annual Summary and Transmittal of U.S. Information Returns. These codes are correct and should be left on the returns. Do not code a received date if either of these codes are present.

3.10.8.4.1  (01-01-2014)
Review of Parent Document

  1. Cross check the detail information returns against the parent return (Form 1096, Annual Summary and Transmittal of U.S. Information Returns) to determine if all necessary information is present and matches.

  2. For payer TIN:

    1. Only one payer TIN should be present

    2. If more than one TIN is present, see IRM 3.10.8.4.1(7) below.

  3. For payer name:

    1. Only one payer name should be present

    2. If more than one name is present, see IRM 3.10.8.4.1(7) below.

  4. If all necessary information is not on the returns, but can be determined from the parent return, other returns from the same payer or any attached correspondence, edit the necessary information on the return and forward for processing.

  5. If only the payer TIN is missing and cannot be determined by cross checking other documents, follow research procedures to obtain a TIN.

    1. Only if the payer TIN is found, edit it to the Form 1096, Annual Summary and Transmittal of U.S. Information Returns and the first detail document being transmitted by the Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    2. If the payer TIN is not found, leave blank and continue normal processing.

  6. Only if the payer name is missing, and cannot be determined by cross checking other documents, follow research procedures to obtain a name.

    1. If a payer name is found, edit it to the Form 1096, Annual Summary and Transmittal of U.S. Information Returns and the first and the first detail document being transmitted by the Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    2. If a payer name is not found and there is a return address, try corresponding using the address. If there is no return address, dispose of the information returns and transmittals.

      Note:

      Exceptions are Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, Form W-2G, Certain Gambling Winnings and their transmittal Form 1096, Annual Summary and Transmittal of U.S. Information Returns, use "Unknown" as the payer name, if one cannot be found.

  7. If multiple payer names and/or payer TINs appear, check attachments to determine which payer name and/or TIN should be used. If the correct payer name and/or TIN cannot be determined, follow research procedures to determine the correct name to be used for the TIN. Underline the first payer name and TIN listed on the first return for that payer and also on its parent Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Issue Letter 586 C, Information Returns Corrected; Taxpayer Advised, advising which name and number was used.

  8. To ensure processing of only valid Form 1098, Mortgage Interest Statement, do the following:

    1. Compare the "Filer's" name on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to the "Recipient's/Lender's" on the Form 1098, Mortgage Interest Statement.

    2. Compare the "Filer's" TIN on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to the "Recipient's/Lender's" on the Form 1098, Mortgage Interest Statement.

  9. To ensure only valid Information Return submissions are processed, do the following:

    1. Compare the "Filer's" (payer) name on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to that of the payee listed on the transmitted information return. If they match remove the submission from processing and alert the manager.

    2. Compare the "Filer's" (payer) TIN on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to that of the payee listed on the information return being transmitted. If they match remove the submission from processing and alert the manager.

  10. The information processed on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is as follows:

    Field/Form Requirements
    Name of Payer Verify the payer name being used for the detail form being transmitted and the transmittal (Form 1096) are the same.
    Payer TIN Verify the payer TIN being used for the detail form being transmitted and the transmittal (Form 1096) are the same.
    Address of Payer Verify the payor address is present. If not present, it must be copied to Form 1096 from the forms being transmitted.
    Type of form in each submission A Form 1096 can transmit only one type information return per filing.
    Service Created Form 1096 Centers may use the standard abbreviation provided in Exhibits in Processing Reference Guide when creating Form 1096. These abbreviations should not be used when the name control would be affected. Major City codes as shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), Countries and ZIP Codes, may also be used.
    Assign correspondence indicator 99 for all IRS created the Form 1096. Annotate on each Form 1096 that is created by the Service with "Prepared by IRS" on the signature line and Correspondence code 99.
    All forms created by the Service must be legible.
    Form 1096 submitted for transmitting multiple form types If the Form 1096 transmitted more than one type of Form, create an additional Form 1096 so that one Form 1096 (transmittal) exists for each type of information return.
    Form 1096, Total number of documents, Box 3 All Form 1096 transmitting Form W2-G, all prior year Form 1096, and all Form 1096 to be processed through ISRP must have an entry in Box 3.
    See IRM 3.11.8, Campus Returns and Document Analysis, Information Returns processing,
    Do not verify Box 3 on Form 1096 if the document is to be processed through SCRIPS. The scanner system will compute the number of documents the Form 1096 transmitted and will place that count in the respective field.
    Form 1096 form type box Ensure that the form type checked on the Form 1096 matches the form type being transmitted. If it doesn't, correct the Form 1096.

3.10.8.4.2  (01-01-2014)
Review of Information Returns

  1. In order to ensure that the returns are correctly transmitted and are in valid, processable formats, review each payer's return.

    1. If any of the conditions cited below apply to the returns (or schedules) and the necessary information cannot be determined from the returns or from the transmittal, consider the returns temporarily unprocessable.

    2. The following conditions make a return temporarily unprocessable and require correspondence .

    • Type of return cannot be determined.

    • Kind of amount cannot be determined.

    • Amount of money within an Amount Field cannot be determined (e.g., the decimal point is incorrectly placed).

    • Return is in a very divergent format (i.e., does not look like the official form and would impede processing).

    • Tax year to which the information pertains cannot be determined.

    • The information is printed in such a manner that the returns cannot be separated for processing (e.g., a computer listing, multiple information return data on one Form, font to small to decipher).

    • Real estate transactions are reported on a form other than the official Form 1099-S, Proceeds From Real Estate Transaction, or the filers name is inconsistent throughout the submission, and/or the filers name on Form 1096, Annual Summary and Transmittal of U.S. Information Returns, does not match the filers name on Form 1099-S, Proceeds From Real Estate Transaction.

  2. If the payment type can be identified as belonging on a Form W-2, Wage and Tax Statement, rather than Form 1099 (see examples below), send the documents back to the payer using Letter 1306 C, Information Returns Forwarded to SSA/Returned to Employer. They should be filed with SSA as Form W-2, Wage and Tax Statement. The following items should be reported on Form W-2, Wage and Tax Statement:

    • Christmas bonuses

    • Reimbursements for travel and car expenses (valid entry in Form 1099-MISC, Miscellaneous Income, Box 7, for Nonemployee Compensation)

    • Wages

    • Other employee compensation

    • Tips

    • Vacation allowances

    • Severance Pay

    • Moving Expense payments

    • Third party payments for sick leave

    • Advanced Earned Income Credit (AEIC) payments

    • Withheld income tax (when included on form with income types listed above)

    • Withheld FICA tax

      Note:

      Do not correspond if the information return is reporting income for a minister, priest, or a person authorized to conduct religious worship.

  3. If a payer sends in Form 1099 (Series) with various kinds of income listed on a single form (i.e., dividends, interest, rents, royalties, etc. on the same form), pull the return and contact the payer using Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc or Letter 1865 SC, Request for Resubmission of Paper Information Returns.

  4. A return should contain a payee name, a payee TIN and/or a mailable address. Unknown payer names are not acceptable (except for Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc and Form W-2G, Certain Gambling Winnings). The following IDRS command codes (CC) may be used to assist in research: CC INOLE, CC PMFOL.

  5. Returns selected for IRP processing must contain an amount in at least one specified payment field with the exception of "corrected" /"amended" returns or Form 1099-MISC with a mark in Box 9. If a return does not meet the criteria specified below, void the return by placing a "X" with a #2 pencil in the void box.

    1. The following chart shows the significant payments fields and minimum amount by type of return.

      Type of Return Payment Amount Fields Minimum Amount
      Domestic
      Form 1097-BTC 1, 5a-5l 1.00
      Form 1098 1, 2, 3, 4 1.00
      Form 1098-C 4c, 6b 1.00
      Form 1098-E 1 1.00
      Form 1098-T 1, 2, 4, 5, 6, 10 1.00
      Form 1099-A 2, 4 1.00
      * Form 1099-B 2a, 3, 4, 5, 7, 9,10, 11, 12 1.00
      Form 1099-C 2, 3, 7 1.00
      Form 1099-CAP 2 1.00
      Form 1099-DIV 1a, 1b, 2a, 2b, 2c, 2d, 3, 4, 5, 6, 8, 9, 10, 11 1.00
      Form 1099-G 1, 2, 4, 5, 6, 7,9 1.00
      Form 1099-INT 1, 2, 3, 4, 5, 6, 8, 9 1.00
      Form 1099-K 1, 5a- 5l 1.00
      Form 1099-LTC 1, 2 1.00
      **Form 1099-MISC 1, 2, 3, 4, 5, 6, 7, 8, 10, 11, 13, 14, 15a. 15b 1.00
      Form 1099-OID 1, 2, 3, 4, 5, 8, 9 1.00
      Form 1099-PATR 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 1.00
      Form 1099-Q 1, 2, 3 1.00
      Form 1099-R 1, 2a, 3, 4, 6, 10 1.00
      Form 1099-S 2 1.00
      Form 1099-SA 1, 2 , 4 1.00
      Form 3921 3, 4 1.00
      Form 3922 3, 4, 5 1.00
      Form 5498 1, 2, 3, 4, 5, 6, 8, 9, 10,12b, 13a, 14a 1.00
      Form 5498-ESA 1, 2 1.00
      Form 5498-SA 1, 2, 3, 4, 5 1.00
      Form W-2G 1, 4, 7, 1.00
      *Boxes 2, 9, 10, 11, 12 on Form 1099-B may be positive or negative.
      **Process all Form 1099-MISC with Box 9 checked, regardless of money amounts in other boxes.
      ***Form 1099-R with "cents only" in box 4 and no other money amounts,

    2. For Form 1099-DIV only, if box 9, Non-cash, contains negative and positive amounts and the net total of the amounts is positive, use that amount as the basis for selection. If the net total is negative, edit it to be zero.

    3. For all other forms (except Form 1099-B) do the following:

      If Then
      A positive and negative amount appear in one box Use the positive amount to determine selectability.

      Note:

      These forms, and forms showing two or more money amounts in the same box (except for Excess Parachute Payment (EPP)) should be processed through ISRP.

    4. For Form 1099-MISC only—If there is an unidentified money amount on the form, select it. Code and Edit will move the money amount to box 7, Nonemployee compensation. If the Form is to be processed through SCRIPS, write the money amount in box 7 using a #2 pencil and "X" out the original entry.

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

3.10.8.4.3  (01-01-2014)
Unprocessable Information Returns - Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc.

  1. Keep a count of the number of Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc., issued and the total number of information returns, by document type, considered temporarily unprocessable.

  2. Unprocessable information returns should be identified within 10 days of receipt.

    Note:

    Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc., is used to correspond with filers of unprocessable IRP forms.

  3. Issue the Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc., with the appropriate paragraph to filers of unprocessable information returns. Check the Power of Attorney (POA)/Taxpayer Information Authorization (TIA) file using CC CFINQ before corresponding. Enclose with each letter:

    • A copy of the letter

    • Instructions for the specific type of form the taxpayer is filing

    • Photocopies of the returns

    If Then
    If less than 10 returns were submitted. photocopy each return
    If more than 10 returns were submitted photocopy 3 returns that best represent the problem

    Note:

    Ensure the copies can be read. If you cannot make a good copy, clearly explain each problem in writing and enclose the explanation with the mail-out.

  4. Maintain the original suspense file until the payer resubmits correctly or for 45 calendar days, whichever comes first.

  5. When the corrected returns are received, dispose of the original returns and process the new ones. Also, purge the letter from the suspense file for disposal.

  6. If the name and address for a filer of unprocessable real estate transactions cannot be determined, destroy the entire submission.

  7. If no reply is received, route the entire submission and the copy of the correspondence to the IRP Penalty Unit for penalty determination. See Exhibit 3.10.8-2 for the address in Philadelphia and mail Stop number.

  8. If an issued letter is returned as undeliverable, do the following:

    1. If a yellow sticker containing the new address is present, forward the submission to the new address listed and resuspend the case.

    2. If no yellow sticker with an address change, then research through Integrated Data Retrieval System (IDRS) to determine if a more current address has been entered on ENMOD. If a new address is found, reissue the letter, update the file, and resuspend the case.

    3. If a more current address is not found through IDRS research, dispose of the letter and the suspended submissions.

  9. If the re-submission contains both unprocessable and processable information returns, separate the unprocessable returns from the processable returns.

    1. Route the processable returns for IRP processing. Adjust the number in box 3, Total Number of Documents, for processing Form 1096, Annual Summary and Transmittal of U.S. Information Returns, (see IRM 3.11.8).

    2. Unprocessable Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, Form 5498-ESA, Coverdell ESA Contribution Information and Form 5498-SA, Medical Savings Account Information, may be destroyed.

3.10.8.4.4  (01-01-2014)
Processable Returns Requiring Correspondence

  1. The Service advises these filers of the proper way to prepare and file information returns. Improper filing impedes the workflow.

    Note:

    Until further notice the only correspondence code utilized is code "99" .

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be coded to generate correspondence letters. Check the Power of Attorney (POA) /Tax Information Authorization (TIA) file before corresponding using CC CFINQ.

  3. Code the indicator in the two right most boxes under the title "For Official Use Only" on Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Use a #2 pencil. Write the indicator legibly and within the boundaries of the boxes.

  4. Use both digits when coding a correspondence indicator.

  5. Code indicator 99 on every Form 1096, Annual Summary and Transmittal of U.S. Information Returns, which was created by IRS. Code "99" denotes IRS prepared the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, but no correspondence will be generated.

3.10.8.4.5  (01-01-2014)
Corresponding for Only Federal Tax Withheld

  1. The SCRIPS system will create a report identifying payers who reported only Federal Income Tax Withheld (FTWH) on SCRIPS processable returns listed in IRM 3.10.8.3(6). This report may be generated on a daily basis.

  2. Information returns reporting only federal income tax withheld are considered unprocessable.

  3. Issue Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc., to payer(s) identified on the FTWH report. Use as the unprocessable criteria the fact that Federal Income Tax Withheld was the only money amount reported on the information return(s).

  4. Each page of the report will reflect one payer's filing of information returns which reported only Federal Income Tax Withheld. Photocopy and consolidate all pages reporting one payer's returns. The photocopy will be used as an enclosure to the Letter 1865 C, Information Return (Paper) Incomplete for Processing/Instructions Enclosed: Form 1098, 1099, etc.

  5. When the re-submission is received, check the upper right corner of the suspended copy of the FTWH report for a delinquent indicator and received date. If present, they will appear after an asterisk to the right of name line "1" in the format "MMDDYY" where "1" is the delinquent indicator and "MMDDYY" is the received date. Code the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with this delinquent indicator and received date.

    Note:

    Dispose of the FTWH report and forward the re-submission for processing.

  6. If the filer resubmits incorrectly or fails to respond, follow procedures below:

    1. Form 1099-G, Certain Government Payments, and Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, destroy the FTWH report, the photocopied Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the information returns (if resubmitted).

    2. For all other form types, forward the FTWH Report, the photocopied Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the information returns (if resubmitted, or if not resubmitted) to the IRP Civil Penalty Unit in Philadelphia for penalty consideration. See Exhibit 3.10.8-2 for the address and mail stop.

3.10.8.5  (01-01-2014)
Separation of Parent Return from Information Return

  1. These instructions apply only to ISRP processed Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  2. Separate current processing year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmittals from the information returns they are transmitting (Form 1099 etc.) only after the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has been numbered and this number has been edited to the lower middle margin of the first of the returns being transmitted in the payer's submission. Make sure the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is complete. Perform any necessary editing.

    1. All Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be processed to the IRP Payer Master File (PMF). If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is not present for a submission of Form 1099 etc., one must be created.

    2. Each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must contain the same payer name and TIN as the forms for which it is a transmittal. If the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, does not agree with its transmitted returns, correspond for correct information. If no reply is received, code the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with the Form 1099 etc. information.

    3. Each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must contain the number of returns it transmitted in box 3. Verify the number of documents by counting the information returns. If there is a discrepancy, enter the number of documents counted. If the number of returns is missing, count the number of documents and enter the total in box 3. See IRM 3.11.8.

    4. Each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be coded with the appropriate return type information regarding the type of return(s) transmitted. Only one type of return should be coded per submission. If necessary, photocopy the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to make as many as needed to cover each type of return submitted with the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, does not agree with the return type being submitted, correct the Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    5. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must also contain coding to reflect the types of payments reported by the payer for Form 1099-DIV, Form 1099-G, and Form 1099-MISC. See IRM 3.11.8 for more details.

  3. Make sure the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, contains a complete address. Check the transmitted forms to verify the complete address. Use the payer address on the returns being transmitted when Form 1096, Annual Summary and Transmittal of U.S. Information Returns, address and the returns being transmitted address do not agree.

  4. A Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be present for each type of return within each submission. If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is not present for each of the above conditions, create a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, so that each return type has a Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Use the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or an information return as a source for information. Annotate "Prepared by IRS" on the signature line of any Form 1096, Annual Summary and Transmittal of U.S. Information Returns, created by the Service and assign the correspondence indicator "99" .

  5. Forward ISRP processed IRP forms for processing only after the DLN of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has been edited to the lower middle margin of the first detail document in the payer's submission.

  6. Dispose of information returns attached to prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, reporting prior tax year information after performing the following:

    1. Verify the entry in "Total number of documents" on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Correct the entry on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, if it is in error. See IRM 3.11.8.

    2. Code the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to show the payments being reported on the information returns, if applicable.

3.10.8.6  (01-01-2014)
Batching Information Returns for Integrated Submission and Remittance Processing (ISRP) Input

  1. Batch sorted information returns and previously mis-batched information returns (received from Code and Edit, Error Resolution or the Block out of Balance (BOB) Function) according to the following:

    1. Maintain payers of the same account type code (this does not apply to scannable returns) and the same type of payer in batches.

    2. The Information Return Program (IRP) account type codes are:

      Account Type Code Definition
      P An information return from a domestic payer.
      M An information return that was originally input through SCRIPS but is being reinput through ISRP.

    3. Do not mix returns with different account type codes. Only one type of return (e.g., Form 1099-DIV) may be placed in a batch.

    4. Enter a batch identifier (Batch ID) equal to the form type on each batch.

      Note:

      Single or Multi batches can be identified by placing a "S" or a "M" before or after the form type in the batch ID.

    5. Batch single return payers separately and notate as such on the Block (box).

    6. When batching multiple return payers place a payer identifier on the first return for each payer. A payer name change (same EIN) should be considered a new payer. At the discretion of campus management, payer identifiers may be attached by Document Perfection.

      If Then
      The first return for a payer does not contain both a payer name and TIN Edit this information (as determined from preliminary batch transmittal) to the appropriate location on the first return for the payer (i.e., the return to which the payer identifier has been attached).
      Payer's information returns are placed in more than one batch. A payer identifier must be attached to the first return for the payer in each batch. Ensure that the first information return for every payer within a block has the DLN of its respective parent Form 1096.

      Dispose of previously prepared preliminary batch transmittals.

    7. On each batch, indicate the following: account type code, original indicator "F" , and return code.

    8. Return Codes are shown in Exhibit 3.10.8-1.

    9. Use the following format when marking the batch:

      Position Definition
      Position 1 Account Type Code
      Position 2 Original Indicator
      Position 3 Hyphen
      Position 4 Return Code

    10. An example of this coding is PF-91, which indicates that the batch contains Form 1099-DIV, Dividends and Distributions, received from a domestic filer.

    11. See IRM 3.10.8.8 for the preparation of forms for SCRIPS processing.

  2. Instructions for the batching Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for ISRP processing can be found in IRM 3.10.8.9.1.

  3. Assign batch numbers, prepare batch control cards, etc. and forward to the Document Perfection Function for processing. At the discretion of Service Center Management, returns may be numbered before Document Perfection.

  4. Unnumbered batches sent to Document Perfection will be sent to numbering after being edited.

3.10.8.7  (01-01-2014)
Blocking Form 1097-BTC, Bond Tax Credit, Form 1098 (Series), Form 1099 (Series), Form 5498 (Series), Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b), Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) and Form W-2G, Certain Gambling Winnings

  1. For all blocks which require the attachment of a payer identifier to the first return and editing for transcription of a payer TIN, DLN, address and name, perform the following:

    1. Attach a payer identifier to the first return of the block in the same manner as done by Batching.

    2. Edit the information return (to which the payer identifier has been attached) in the same manner as the first return for that payer in the batch. The first return for the payer in the batch can be secured by pulling the return attached to the immediate preceding payer identifier in the batch. After editing the payer TIN, name, address and DLN on the information return, replace the payer identifier and return assemblies back in their appropriate places in the batch.

3.10.8.8  (01-01-2014)
Preparing Documents For Service Center Recognition/Image Processing System (SCRIPS)

  1. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be the first document in a batch. It will be used as the payer identifier for all SCRIPS returns.

  2. Do not staple the information returns. Remove any items which will impede the processing of the documents through SCRIPS.

    • Staples

    • Paper clips

  3. Do not verify the entry in "Total number of documents" on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. The SCRIPS software will generate this entry.

  4. Do not edit payment codes on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. The SCRIPS software will generate the payment codes.

  5. All prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting prior year information returns will be processed through ISRP.

  6. SCRIPS processed Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will remain with the information returns they transmit.

  7. Communicate with the SCRIPS unit to determine if the manner in which the information returns are being sorted and batched can be improved.

  8. Ensure each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has only one type of information return in each submission prior to releasing to SCRIPS.

3.10.8.8.1  (01-01-2014)
Non-Transportable Information Returns

  1. A non-transportable form is an information return that cannot be physically processed through the scanner. Cut, torn, or mutilated submissions are considered to be non-transportable forms/returns.

    1. Blank forms of the appropriate form type and quantity will be processed through the scanner to replace the non-transportable forms.

    2. The corresponding non-transportable forms will then be referenced for key-entry of the information.

    3. Photocopies will be considered as processable documents.

  2. Create blocks of 99 information returns (98 for Form 1099-R).

    1. Each page of documents will count as three forms (two for Form 1097-BTC, Form 1099-B, Form 1099-DIV, Form 1099-R and Form 1099-MISC).

    2. A single form must be distinguished from a single page. A single page has as many as three forms (two for Form 1099-B, Form 1099-DIV, Form 1099-R and Form 1099-MISC).

    3. If an information return has been cut from a page of three (two for those forms listed in paragraph b), count the return as specified below:

      If Then
      The single form is the only return in the filers submission, or it is the last return remaining in the Filer's submission. count that return as three ( two for Form 1097-BTC, Form 1099-B, Form 1099-DIV, Form 1099-R and Form 1099-MISC).
      The single form is one of only two returns in a filers submission, or the returns are the remaining two in the filers submission. count the two returns as three (Except for 2 for Form 1099-B, Form 1099-DIV, Form 1099-R and Form 1099-MISC).
      The filers submission is made up of many single forms. count each return as one. If applicable, refer to 1 and 2 above.

    4. Do not count the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, as an information return.

    5. Do not mix form types.

    6. Blocks can be less than 99 information returns.

  3. For each block, create a duplicate of the actual block using blank forms.

    1. Represent three information returns, or a count of three, with a single page of blank forms (two for Form 1097-BTC, Form 1099-B, Form 1099-DIV, Form 1099-R and Form 1099-MISC.

    2. Use blank forms that correspond to the form type.

    3. Do not cut or separate the forms on the blank page.

  4. Do not split a filers submission unless absolutely necessary.

    1. If a split of the payer's submission cannot be avoided, have the blocks follow in sequence.

    2. A submission of different form types must be split.

  5. Maintain the actual block with the duplicate block in one folder.

  6. Group no more than 30 blocks in a batch.

  7. If appropriate, batches can be less than 30 blocks.

  8. Batch and block numbers need not be assigned at this time.

3.10.8.9  (01-01-2014)
General

  1. All Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be processed to the Payer Master File (PMF). If a transmittal Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is not present for a submission of information returns, one must be created.

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to be processed through ISRP must be numbered prior to separating them from the IRP documents they transmit so that the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, DLN may be edited to the lower middle margin of the first form being transmitted for that payer.

  3. Supporting information returns will not be attached to Form 1096, Annual Summary and Transmittal of U.S. Information Returns, marked "Information returns were unprocessable—PMF only."

3.10.8.9.1  (01-01-2014)
Batching for Integrated Submission and Remittance Processing (ISRP) Processing

  1. Batch Form 1096, Annual Summary and Transmittal of U.S. Information Returns, according to the following:

    1. Batch Form 1096, Annual Summary and Transmittal of U.S. Information Returns, according to the following account type code (B or C).

      Account Type Code Definition
      B Used to identify those prepared by the payer.
      C Returns can be identified by the presence of "Prepared by IRS" stamped or written on the signature line of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

      Note:

      Used to identify those created by the Service because a form was not present, or not usable.

    2. Batch each account type code separately. Do not mix account type codes or tax years.

    3. It is not necessary to keep each type of transmittal Form 1096, Annual Summary and Transmittal of U.S. Information Returns, separately. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting different types of returns may be mixed.

    4. As each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will most likely be for a different payer (by name or TIN), it is not necessary to batch single versus multiple return payers uniquely, nor is it necessary to batch TIN and No-TIN Form 1096, Annual Summary and Transmittal of U.S. Information Returns, separately.

  2. Batch the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in convenient groups and forward for IRP Code and Edit. Annotate on the batch holder that these are Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for Payer Master File processing.

    Place the following coding on the outside of the batch holder:

    Position Description
    Position "1" Account Type Code "B" or "C"
    Position "2" Original or Corrected/Amended indicator always use "F"
    Position "3" Hyphen (-)
    Position "4 and 5" Return Code "69"

Exhibit 3.10.8-1 
Information Return Document Codes

Return Form Document Code
Form 1096 69
Form 1097-BTC 50
Form 1098 81
Form 1098-C 78
Form 1098-E 84
Form 1098-T 83
Form 1099-A 80
Form 1099-B 79
Form 1099-C 85
Form 1099-CAP 73
Form 1099-DIV 91
Form 1099-G 86
Form 1099-INT 92
Form 1099-K 10
Form 1099-LTC 93
Form 1099-MISC 95
Form 1099-OID 96
Form 1099-PATR 97
Form 1099-Q 31
Form 1099-R 98
Form 1099-S 75
Form 1099-SA 94
Form 5498 28
Form 5498-ESA 72
Form 5498-SA 27
Form 3921 25
Form 3922 26
Form W-2G 32

Exhibit 3.10.8-2 
Mail Stops and Addresses for Disposition of Informational Return Program

Disposition Situation Address or Mail Stop

Note:

Do not use overnight delivery for regular mailings. Observe protection of PII data. All mailing will be UPS Ground service, which still allows you the appropriate tracking capability.

CAWR issued correspondence "with all submission documents and/or forms" Internal Revenue Service
CAWR Memphis- Stop 814
5333 Getwell Rd.
Memphis, TN 38118

CAWR Philadelphia- Stop 4-G08.151
2970 Market St.
Philadelphia, PA 19104-5016
Correspondence concerning 50 or more recipient accounts being in error Internal Revenue Service
Attn: Underreporter Branch, Payor Coordinator, M/S 6650
1973 N. Rulon White Blvd.
Ogden, UT 84404
CP 2100 and CP 2100A Internal Revenue Service -
Stop 4-G08.151
2970 Market St.
Philadelphia, PA 19104-5016
  • Letter 1865 C no replies and the unprocessable submission

  • FTWH Report with no reply submissions or unprocessable resubmissions

  • Prior year Form 1096 processed through ISRP and imaged by SCRIPS with 50 or greater returns transmitted

Note:

DO NOT mix these submissions during mail out.

IRP Civil Penalty Philadelphia
Internal Revenue Service
Stop 4-G08.151
2970 Market St.
Philadelphia, PA 19104-5016
Form W-2, Form W-3,
Form W-2 C, Form W-3 C, Form W-2 GU (Guam), Form W-2 VI (Virgin Islands), Form W-3 SS
"Current/Past and Future processing years without CAWR issued correspondence."
Social Security Administration
Wilkes-Barre Data Operations Center
Wilkes-Barre, PA 18769

Note:

Street address below:


SSA Wilkes-Barre Data Operation Center
ATTN: W-2 Process
1150 E. Mountain Dr.
Wilkes-Barre, PA 18702-7997
Form W-2 AS (American Samoa), Form W-3 SS. "Current/Past and Future processing years without CAWR issued correspondence." American Samoan Tax Office
Government of American Samoa
Pago Pago, AS 96799

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