3.11.8  Information Return Processing

Manual Transmittal

November 05, 2013

Purpose

(1) This transmits revised IRM 3.11.8, Returns and Documents Analysis, Information Return Processing.

Material Changes

(1) IRM 3.11.8.1(1) Added an exception and instruction for paper Form 1099-H submissions which are no longer a valid paper submission unless cleared by Headquarters.

(2) IRM 3.11.8.1.3(5) Account Type Code "T" was removed due to program funding and the reference to computer punch cards was removed due as the need for the procedure is obsolete.

(3) IRM 3.11.8.1.4(1) Account type codes "T" and "J" deleted due to program funding.

(4) IRM 3.11.8.2.5(4) Form 1098-T removed as a possible valid negative money amount return.

(5) IRM 3.11.8.2.6 Fields requiring Code and Edit intervention were added and or removed for each document listed to reflect only fields where intervention is possible.

(6) IRM 3.11.8.2.6(4) Box 4 was added to edit fields for Form 1098, Mortgage Interest Statement, IPU 13U0179 issued 01-22-2013 .

(7) IRM 3.11.8.2.6(5) Corrected the order of box items listed on Form 1098-C Contributions of Motor Vehicles, Boat, and Airplanes, IPU 13U1136 issued 06-24-2013.

(8) IRM 3.11.8.2.6(5) Form 1098-C fields 2a, 2b, 2c, 3, 4a, 4c, 5a, 5b, 6a, 6c and 7 were removed as requiring edit fields and box 6b was added.

(9) IRM 3.11.8.2.6(6) Form 1098-E Removed required edits to box 2.

(10) IRM 3.11.8.2.6(7) Box 7, 8 and 9 for Form 1098-T were removed from the required editing list.

(11) IRM 3.11.8.2.6(8) Form 1099-A box 5 was removed as requiring edit.

(12) IRM 3.11.8.2.6(9) Form 1099-B boxes added are: 1b, 2a, and 7. The following boxes for Form 1099-B were removed from the required edit: 1c, 1d, 6, CUSIP, 13, 14 and 15.

(13) IRM 3.11.8.2.6(10) Form 1099-C Removed instruction for edit of box es 5 and 6.

(14) IRM 3.11.8.2.6(11) Boxes 3 and 4 were removed from required edit list for Form 1099-CAP.

(15) IRM 3.11.8.2.6(12) Corrected title of box 4 for Form 1099-DIV.

(16) IRM 3.11.8.2.6(13) Requirement to edit box 8 of form 1099-G was removed.

(17) IRM 3.11.8.2.6(15) Changed the year digits for Series E bonds present on Form 1099-INT and removed edit requirement for boxes 7 and 10.

(18) IRM 3.11.8.2.6(16) Form 1099-K Edit requirement for entity type were removed and new box 4 was added.

(19) IRM 3.11.8.2.6(17) Box 3 and 4 were removed from requiring edit on Form 1099-LTC.

(20) IRM 3.11.8.2.6(18) A note was added to box 9 on Form 1099-MISC for clarification on non-selects.

(21) IRM 3.11.8.2.6(19) Form 1099-OID Box 5 was added as requiring edit and existing box numbers were corrected to reflect form changes.

(22) IRM 3.11.8.2.6(20) Box titles were updated to reflect Form 1099-PATR.

(23) IRM 3.11.8.2.6(21) Boxes 4, 5 and 6 for Form 1099-Q were removed from the edit requirement.

(24) IRM 3.11.8.2.6(22) Form 1099-R edit required field instruction added box 10 and removed box 2b.

(25) IRM 3.11.8.2.6(23) Form 1099-S edit requirements removed box 3 and 4 and a caution statement was added to edit instruction for box 1.

(26) IRM 3.11.8.2.6(24) Box 3 was removed as a required edit for Form 1099-SA.

(27) IRM 3.11.8.2.6(25) Boxes 12b, 13b and 14a were added to the require edit instruction for Form 5498.

(28) IRM 3.11.8.2.6(28) New box 2 was added to Form W2-G. Federal tax withheld was changed from box 2 to box 4 and box 9 was deleted from the edit requirement.

(29) IRM 3.11.8.2.7(2) "D" was added as a valid Pension/IRA Indicator and the table was updated to reflect the valid combinations as published in the instruction currently.

(30) IRM 3.11.8.4(1) Instruction was reworded to alleviate the need to change the tax years received to the edit process each year.

(31) IRM 3.11.8.4.7(2)(a) Updated box number stated for Form W2-G to reflect form updates.

(32) IRM 3.11.8.4.7(3) Updated the subject to penalty chart to reflect form changes.

(33) IRM 3.11.8.4.7(3) Penalty determination table was updated to reflect new Box 4, Mortgage insurance premiums, on Form 1098, Mortgage Interest Statement, IPU 13U0179 issued 01-22-2013.

Effect on Other Documents

IRM 3.11.8 dated November 23, 2012 (effective January 01, 2013) is superseded. The following IRM Procedural Updates (IPUs) were incorporated into this revision: 13U0179 (issued 01-22-2013) and 13U1136 (issued 06-24-2013).

Audience

Small Business/Self Employed and Wage and Investment - Code and Edit Tax Examiners

Effective Date

(01-01-2014)

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

3.11.8.1  (01-01-2014)
Purpose

  1. These instructions apply to any campuses performing edit functions on the following paper information returns.

    • Form 1096, Annual Summary and Transmittal of U.S. Information Returns, processed to the Payer Master File (PMF)

      Note:

      Current and Delinquent processed to the Payer Master File

    • 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

      Exception:

      Any Form 1099-H submission should be returned to the IRP Sort Unit for proper disposition. DO NOT process unless documents are notated "Cleared for processing by Headquarters."

    • 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 and 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, HSA, Archer MSA, or Medicare Advantage MSA Information

    • Form W-2G, Certain Gambling Winnings

3.11.8.1.1  (01-01-2014)
Scope

  1. These instructions apply to any site performing edit functions on paper information returns for processing on Integrated Submission and Remittance Processing (ISRP).

3.11.8.1.2  (01-01-2014)
Program Codes

  1. Use the following program codes as appropriate:

    Note:

    Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments, will not be sent for processing. Supply any Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments, submission to local Planning and Analysis Staff for disposition.

    Program Codes
    Return Type(Domestic) ISRP or SCRIPS Process Program Code
    Form 1099-INT, Form 1099-K, Form 1099-LTC, Form 1099-SA ISRP 44300
    Form 1096
    (Current and Delinquent)
    ISRP 44310
    Form 1097-BTC ISRP 44307
    Form 1098, Form 1098-C, Form 1098-E, Form 1098-T ISRP 44312
    Form 1099-A ISRP 44309
    Form 1099-B ISRP 44301
    Form 1099-C, Form 1099-CAP, Form 1099-G ISRP 44303
    Form 1099-DIV ISRP 44302
    Form 1099-MISC ISRP 44305
    Form 1099-OID ISRP 44304
    Form 1099-PATR ISRP 44307
    Form 1099-Q, Form 1099-S ISRP 44308
    Form 1099-R ISRP 44306
    Form 3921 ISRP 44317
    Form 3922 ISRP 44318
    Form 5498, Form 5498-ESA ISRP 44313
    Form 5498-SA ISRP 44315
    Form W-2G ISRP 44314
    FOREIGN INFORMATION RETURNS ISRP 44320
    Service Center Recognition Image Processing System (SCRIPS)
    • Form 1096

    • Form 1097-BTC

    • Form 1098

    • Form 1098-E

    • Form 1098-T

    • Form 1099-A

    • Form 1099-B

    • Form 1099-C

    • Form 1099-DIV

    • Form 1099-G

    • Form 1099-INT

    • Form 1099-K

    • Form 1099-MISC

    • Form 1099-OID

    • Form 1099-PATR

    • Form 1099-Q

    • Form 1099-R

    • Form 1099-S

    • Form 5498

    SCRIPS 44340

  2. Document Perfection should not receive any program 44340 scannable returns. Scannable means returns are:

    • one of the form types listed under for program 44340 above,

    • in the proper format,

    • not torn or mutilated, and

    • not divergent from the Internal Revenue Service format for the current processing year.

    Note:

    Refer any mis-routed scannable returns to your supervisor for correct disposition.

    Exception:

    At the beginning of each season SCRIPS scannable documents may be processed through ISRP as part of annual hub testing.

  3. SCRIPS processable information returns are determined non-scannable for reasons such as ripped, torn, mutilated or cut forms, etc.

  4. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, attached to non-scannable information return submissions will also be considered non-scannable and processed by Document Perfection.

3.11.8.1.3  (01-01-2014)
Paper Information Return Conversion

  1. All information return form types received must have been determined to be non-scannable. All procedures in this IRM refer to non-scannable forms.

  2. Information returns are sorted and batched according to criteria in IRM 3.10.8, Information Return Processing and IRM 3.10.73.17, Information Returns Processing. Returns are batched by:

    • Account Type Code

    • Type of Return

    • Tax Year

    • Single or Multiple Return Payers

  3. The information returns may already be numbered. Make sure the block document locator number (DLN) on the returns agree 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 batch identifier. A batch identifier is a 5 position code and each position is defined as follows:

    Batch Identifier 5 Position Code Definition
    Position Position Code Description
    Position 1 Account Type Code:
    • "B"

    • "C"

    • "P"

    Note:

    The Account Type Code will appear on the batch, on the outside of the batch holder. This code will determine the type of editing needed for the returns in the batch.

    Position 2 Record Identification - Always use "F" .
    Position 3 Hyphen (-)
    Position 4 and Position 5 Return Code(s) - See Exhibit 3.11.8-1 for Return Codes.

3.11.8.1.4  (01-01-2014)
Account Type Code

  1. Each block of information returns other than Form 1096 , Annual Summary and Transmittal of U.S. Information Returns, will have an Account Type Code of "P" .

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, are assigned different Account Type Codes than other information returns. Account Type Codes "B" and "C" are used for Form 1096, Annual Summary and Transmittal of U.S. Information Returns. See Exhibit 3.11.8-3. These codes will only be present on Form 1332, Block and Selection Record.

    1. "B" - the payer furnished the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. This code should be used even if the Receipt and Control Function had to perfect the entity.

    2. "C" - the payer did not furnish the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and/or a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, was created by the Receipt and Control function because the "Payer provided transmittal" was not readable, or otherwise usable.

3.11.8.2  (01-01-2014)
Coding and Editing Information Returns

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

  2. Code all Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in pencil only.

  3. Other Information return types may be coded with red pen or pencil, at the discretion of the site.

3.11.8.2.1  (01-01-2014)
Payer/Payee Business Master File (BMF) Name Line

  1. Trust name must appear on the first name line. Arrow the trust name to the first name line for Trust entities.

  2. Estate names must be included in the first name line. Arrow the estate name to the first name line for Estate entities.

  3. Form 5498, IRA Contribution Information, may list the issuing organization as the custodian for the taxpayer. Circle out the issuing organization if this is the case.

  4. 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 edit the phrase "ET AL PTR" .

3.11.8.2.2  (01-01-2014)
Payer Name, Taxpayer Identification Number (TIN) on Payee Returns

  1. In accordance with instructions in IRM 3.10.8, Information Return Processing, a payer identifier has been attached to the first return of each batch and to each subsequent return in which a change in payer occurs. Edit the payer area of each information return attached to a payer identifier in the following manner (treat single return payer batches as if a payer identifier were attached to each return).

    1. If a payer TIN is not present, research. If still unable to locate after researching Corporate Files On-line (CFOL) command codes, contact the payer to determine the correct TIN. If it cannot be determined from other returns for that payer, edit "9-" . ISRP will convert this to 999999999.

    2. If the payer name is not present or cannot be determined from other returns for that payer, route to Receipt and Control IRP Sort Unit for correspondence.

      Exception:

      Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, and Form W-2G, Certain Gambling Winnings where IRP sort unit has edited the payer as "Unknown."

  2. Circle out "NO TIN" foreign payer addresses present on payee documents.

  3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and related payee forms must:.

    1. have the same payer name and TIN, and

    2. if different or blank, use the information from the payee form to make them the same payer.

3.11.8.2.3  (01-01-2014)
Payee Taxpayer Identification Number (TIN)

  1. If the payee Taxpayer Identification Number (TIN) is not in the proper box, draw an arrow from the TIN to the box provided for the payee's identification number.

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

3.11.8.2.4  (01-01-2014)
Payee Address

  1. Street Address:

    1. If both a street address and a Post Office Box appear, circle the street address.

    2. 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.

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

  2. If address is Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO), arrow APO, FPO or DPO and the literal "AA" , "AE" , or "AP" to the beginning of the City, State, ZIP Code line in the city field.

  3. If the city is not present (for other than APO, DPO, FPO), 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. State is not present when using APO, DPO, and FPO addresses.

  5. If a ZIP Code is present, a state must be edited, except for APO, DPO, and FPO addresses. 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 ZIP Code for the state as shown in Exhibit 3.11.8-5 or Exhibit 3.11.8-6.

    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 ZIP Code for the state (or "AA" , "AE" , or "AP" ) as shown in Exhibit 3.11.8-4.

  8. If the ZIP Code is missing and the state is present, edit the 5 digit ZIP Code for the state 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 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.

    3. Code a dollar sign "$" in the first position of the state-field to identify the address as foreign.

3.11.8.2.5  (01-01-2014)
Payment Amount Fields

  1. Make a cursory review to ensure that the amount field boxes (lines) are numbered consistently with the official IRS information returns issued. 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 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, IRP Sort Unit.

    2. 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 taxpayer intent as a basis for re-titling the return and re-numbering payment amount fields on the return.

      Example:

      Form 1099-MISC, Miscellaneous Income, with payments identified as other than what would normally be reported on a MISC return (e.g., Dividends, Wages, etc.), BUT NOT A RE-TITLED RETURN, should now be changed to the correct return.

    3. 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 pre-printed payment amount field number and enter the number from the official form which identifies that type of income).

      Example:

      The payer sends in a Form 1099-MISC, Miscellaneous Income, crosses out "MISC" and enters "DIV" , places an amount in Box 1 and identifies it as dividends; edit the return in the following manner: underline Form 1099-DIV, Dividends and Distributions, circle out the "1" , if present, and enter a "1a" above it.

    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. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, contains two amount fields.

    1. Money Amount from Box 4, "Amount of Federal income tax withheld" , and must be equal to or greater than zero.

    2. Money Amount from Box 5, "Total amount reported with this Form 1096" , and must be equal to or greater than zero.

  4. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, (Box 2a, Box 9, Box 10, Box 11 and Box 12 only) may contain negative money amounts.

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

    2. For all other form types if a positive and negative amount appear in one box, use the positive amount.

    3. For all other form types if a negative amount appears in any box, edit it to zero.

3.11.8.2.6  (01-01-2014)
Payment Amount Fields and Edited Fields

  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. Edit the amounts field specified below for each form.

  3. Form 1097-BTC, Bond Tax Credit: Edit boxes 1, 5a through 5l.

    • Box 1, Total

    • Box 5a, January

    • Box 5b, February

    • Box 5c, March

    • Box 5d, April

    • Box 5e, May

    • Box 5f, June

    • Box 5g, July

    • Box 5h, August

    • Box 5i, September

    • Box 5j, October

    • Box 5k, November

    • Box 5l, December

  4. Form 1098, Mortgage Interest Statement: Edit amount fields in boxes 1, 2, 3 and 4.

    • Box 1, Mortgage interest received from payer(s)/borrower(s)

    • Box 2, Points paid on purchase of principal residence

    • Box 3, Refund of overpaid interest

    • Box 4, Mortgage insurance premiums

  5. Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes: Edit boxes 1, 4b, and 6b.

    • Box 1, Date of contribution

      Caution:

      "YY" must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed return to IRP Sort Unit.

    • Box 4b, Date of sale

      Caution:

      "YY" must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed return to IRP Sort Unit.

    • Box 4c, Gross proceeds from sale

    • Box 6b, Value of good provided

  6. Form 1098-E, Student Loan Interest Statement: Edit box 1.

    • Box 1, Student loan interest received

  7. Form 1098-T, Tuition Statement: Edit boxes 1, 2, 4, 5, 6 and 10.

    • Box 1, Payments received for ...

    • Box 2, Amounts billed for ...

    • Box 4, Adjustments made for...

    • Box 5, Scholarships or grants

    • Box 6, Adjustments to scholarships or grants...

    • Box 10, Ins. contract reimb./refund

  8. Form 1099-A, Acquisition or Abandonment of Secured Property: Edit boxes 2 and 4.

    • Box 2, Balance of principal outstanding

    • Box 4, Fair market value of property

  9. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions: Edit boxes 1a, 1b, 2a, 3, 4, 5, 7, 9, 10, 11 and 12.

    • Box 1a, Date of sale or 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.

      Caution:

      YY must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed Return to IRP Sort Unit.

    • Box 1b, Date of acquisition
      — this date must be in numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payers entry and entering in the correct date format.

      Note:

      This field can be blank.

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

    • Box 3, Cost or other basis

    • Box 4, Federal income tax withheld

    • Box 5, Wash sales loss disallowed

    • Box 7, Bartering

    • Box 9, Profit or (loss) realized in yyty (current tax year being processed) on closed contracts (Bracket negative amounts)

    • Box 10, Unrealized profit or (loss) on open contracts - 12/31/yyty-1 (Bracket negative amounts)

    • Box 11, Unrealized profit or (loss) on open contracts - 12/31/yyty (Bracket negative amounts)

    • Box 12, Aggregate profit or (loss) (Bracket negative amounts)

  10. Form 1099-C, Cancellation of Debt: Edit boxes 1, 2, 3 and 7.

    • Box 1, Date of identifiable event
      —The date must be in numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payer's entry and entering in the correct date format.

      Caution:

      "YY" must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed Return to IRP Sort Unit.

    • Box 2, Amount of debt discharged

    • Box 3, Interest if included in box 2

    • Box 7, Fair market value of property

  11. Form 1099-CAP, Changes in Corporate Control and Capital Structure: Edit boxes 1, and 2.

    • Box 1, Date of sale or exchange
      — The date must be in numeric MMDDYY format. Edit the date to MMDDYY format by circling the payers entry and entering the correct date format.

      Caution:

      "YY" must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed Return to IRP Sort Unit.

    • Box 2, Aggregate amount rec'd*

  12. Form 1099-DIV, Dividends and Distributions: Edit boxes 1a, 1b, 2a, 2b, 2c, 2d, 3, 4, 5, 6, 8, 9, 10 and 11.

    • 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% gain

    • Box 3, Nondividend distributions

    • Box 4, Federal income tax withheld

    • Box 5, Investment expenses

    • Box 6, Foreign tax paid

    • Box 8, Cash liquidation distribution

    • Box 9, Noncash liquidation distribution

    • Box 10, Exempt - interest dividends

    • Box 11, Specified private activity dividend

  13. Form 1099-G, Certain Government Payments: Edit boxes 1, 2, 3, 4, 5, 6, 7 and 9.

    • Box 1, Unemployment compensation

    • Box 2, State or local income tax refunds or offsets
      — The entry should only contain 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 the" X" to box 8. If any other non-numeric characters are present, edit to an "X" .

    • Box 3, Box 2 amount is for tax year
      — If an amount is in box 2 and box 3 is blank, edit current year minus one (current year being processed).

    • Box 4, Federal income tax withheld

    • Box 5, RTAA payments
      — All money amounts must be positive and be $600 or more. If the amount is under $600, circle out the amount.

    • Box 6, Taxable grants

    • Box 7, Agriculture payments

    • Box 9, Market gain

  14. Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments: Until further notice this form will not be processed. Any Form 1099-H submission should be returned to the IRP Sort Unit for proper disposition. Do not process unless documents are notated as "Cleared for processing by Headquarters" and batched as a "walk thru" .

  15. Form 1099-INT, Interest Income: Edit boxes 1, 2, 3, 4, 5, 6, 8 and 9.

    • Box 1, Interest income

      Note:

      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 2014 to Receipt and Control to be held for processing in 2015. 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 U.S. Savings Bonds and Treas. obligations

    • Box 4, Federal income tax withheld

    • Box 5, Investment expenses

    • Box 6, Foreign tax paid

    • Box 8, Tax-exempt Interest

    • Box 9, Specified private activity bond interest

  16. Form 1099-K, Merchant Card and Third Party Payments: Edit 1, 2, 4, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k and 5l.

    • Box 1, Gross amount of payment card/third party network transactions

    • Box 2, Merchant category code
      — four digits only, if three digits edit a zero as the first digit

    • Box 3, Number of payment transactions

    • Box 4, Federal income tax withheld

    • Box 5a, January

    • Box 5b, February

    • Box 5c, March

    • Box 5d, April

    • Box 5e, May

    • Box 5f, June

    • Box 5g, July

    • Box 5h, August

    • Box 5i, September

    • Box 5j, October

    • Box 5k, November

    • Box 5l, December

  17. Form 1099-LTC, Long-Term Care and Accelerated Death Benefits: Edit boxes 1, 2 and 5.

    • Box 1, Gross long-term care benefits paid

    • Box 2, Accelerated death benefits paid

    • Box 5, Date certified

      Note:

      The year must be equal to yyty or yyty minus one.

  18. Form 1099-MISC, Miscellaneous Income: Edit boxes 1-10, boxes 13, 14, 15a and 15b. If there is an unidentified money amount on the form and the payer did not refile correctly, 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

    • Box 9, Direct Sales indicator

      Note:

      Forms with an entry only on Box 9 will be sent forward for processing.

    • 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

  19. Form 1099-OID, Original Issue Discount : Edit boxes 1, 2, 3, 4, 5, 8 and 9.

    • Box 1, Original issue discount for yyty

    • Box 2, Other periodic interest

    • Box 3, Early withdrawal penalty

    • Box 4, Federal income tax withheld

    • Box 5, Foreign tax paid

    • Box 8, Original issue discount on U.S. Treasury obligations

    • Box 9, Investment expenses

  20. Form 1099-PATR, Taxable Distributions Received From Cooperatives: Edit boxes 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10.

    • Box 1, Patronage dividends

    • Box 2, Nonpatronage distributions

    • Box 3, Per-unit retain allocations

    • Box 4, Federal income tax withheld

    • Box 5, Redemption of non-qualified notices...

    • Box 6, Domestic production activities deduction

    • Box 7, Investment credit

    • Box 8, Work opportunity credit

    • Box 9, Patron's AMT adjustment

    • Box 10, Other credits and deductions

  21. Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530): Edit boxes 1, 2, and 3.

    • Box 1, Gross distribution

    • Box 2, Earnings

    • Box 3, Basis

  22. Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc: Edit boxes 1, 2a, 3, 4, 6 and 10 for dollar amounts, and the code(s) in box 7 including the IRA/SEP/SIMPLE check box.

    • Box 1, Gross distribution

    • Box 2a, Taxable amount

    • Box 3, Capital gain

    • Box 4, Federal income tax withheld

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

    • Box 7, Distribution codes and IRA/SEP/SIMPLE indicator
      —See IRM 3.11.8.2.7 for allowable entries and entry combinations.

    • Box 10, Amount allocable to IRR within 5 years

    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, Records Control Schedule for Submissions Processing Campus Records. Ensure that the document count on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns is adjusted.

  23. Form 1099-S, Proceeds From Real Estate Transaction: Edit boxes 1 and 2.

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

      Caution:

      "YY" must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed Return to IRP Sort Unit.

    • Box 2, Gross proceeds

  24. Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA: Edit boxes 1, 2 and 4.

    • Box 1, Gross distribution

    • Box 2, Earnings on excess cont.

    • Box 4, FMV on date of death

  25. Form 5498, IRA Contribution Information: Edit boxes 1, 2, 3, 4, 5, 6, 8, 9, 10, 12b, 13b and 14a.

    • 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 8, SEP Contributions

    • Box 9, SIMPLE contributions

    • Box 10, Roth IRA contributions

    • Box 12b, RMD amount

    • Box 13b, Postponed Contribution

    • Box 14a, Repayments

  26. Form 5498-ESA, Coverdell ESA Contribution Information: Edit boxes 1 and 2.

    • Box 1, Coverdell ESA contribution

    • Box 2, Rollover contribution

  27. Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information: Edit boxes 1, 2, 3, 4 and 5.

    • Box 1, Employee MSA contributions made in "yyty" and "yypy" for "yyty"

    • Box 2, Total MSA contributions made in" yyty"

    • Box 3, Total MSA contributions made in "yypy" for "yyty"

    • Box 4, MSA rollover contributions not included in boxes 1, 2, or 3

    • Box 5, Fair market value of account

  28. Form W-2G, Certain Gambling Winnings: Edit boxes 1, 2, 4 and 7.

    • Box 1, Gross winnings
      — If the payer enters multiple amounts in a box, circle and place the total of the amounts above the circled out amount.

    • Box 2, Date won, this date must be in numeric MMDDYY format.

      Caution:

      "YY" must equal TY currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal TY currently being processed Return to IRP Sort Unit.

    • Box 4, Federal income tax withheld

    • Box 7, Winnings from identical wagers
      — If the Form W-2G, Certain Gambling Winnings, contains an amount titled "Net Winnings" , circle out this amount.

  29. Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b): Edit boxes 1 through 5.

    Caution:

    Returns selected for processing "must have at least" one money amount of one dollar or greater. If after editing there are no money amounts void the return unless it is marked corrected.

    • Box 1, Date Option Granted

    • Box 2, Date Option Exercised

    • Box 3, Exercise Price per share
      — if the amount present does not round to one dollar circle the amount

    • Box 4, FMV/Share on Exercise Date
      — if the amount present does not round to one dollar circle the amount

    • Box 5, Numbers of shares transferred
      — the number present should be a whole number. If only a fraction is present circle out do not round up, if a whole number and a fraction is present circle out the fraction.

  30. Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c): Edit boxes 1 through 8.

    Caution:

    Returns selected for processing" must have at least" one money amount of one dollar or greater. If after editing there are no money amounts void the return unless it is marked corrected.

    • Box 1, Date Option Granted to Transferor

    • Box 2, Date Option Exercised by Transferor

    • Box 3, FMV per Share on Grant Date
      — if the amount present does not round to one dollar circle the amount

    • Box 4, Per Share on Exercise Date
      — if the amount present does not round to one dollar circle the amount

    • Box 5, Numbers of Shares Transferred
      — number must equal a whole number

    • Box 6, Exercise Price Per Share
      — if the amount present does not round to one dollar circle the amount

    • Box 7, Number of Shares Transferred
      — the number present should be a whole number. If only a fraction is present circle out do not round up, if a whole number and a fraction is present circle out the fraction

    • Box 8, Date Legal Title Transferred by Transferor

3.11.8.2.7  (01-01-2014)
Pension Indicator/Individual Retirement Account (IRA) Indicator Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc

  1. Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc, may reflect a type of distribution indicator or distribution code, category of distribution, in Box 7.

  2. The valid indicators for Box 7 are 1 through 9, A, B, D, E, F, G, H, J, L, N, P, Q, R, S, T, U, W or blank, along with valid combination determinations are listed in the table below.

    Distr.
    Code
    Type of Distribution May be used with Distr. Code
    1 Early distribution, no known exception 8, B, L P
    2 Early distribution; exception (other than codes 1, 3 or 4) 8, B, P
    3 Disability None
    4 Death 8, A, B, G, H, L, P
    5 Prohibited transaction None
    6 Section 1035 exchange W
    7 Normal distribution A, B
    8 Excess contributions plus earnings; excess deferrals 1, 2, 4, B, J
    9 Cost of current life insurance protection None
    A May be eligible for 10 year averaging 4, 7
    B Designated Roth Account distribution 1, 2, 4, 7, 8, G, L, P, U
    D Distribution from any plan or arrangement not described in sections 401(a), 403(a), 403(b), 408, 408A, or 457(b) None
    E Distributions under Employee Plans Compliance Resolution System (EPCRS) None
    F Charitable gift annuity None
    G Direct rollover and rollover contribution from a qualified plan, section 403(b) plan or a governmental section 457(b) plan to an eligible retirement plan (another qualified plan, a section 403(b) plan, a governmental section 457(b) plan, or an IRA). 4, B
    H Direct rollover of a designated Roth account distribution to a Roth IRA 4
    J Early distribution from a ROTH IRA 8, P
    L Loans treated as deemed distributions under section 72(p) 1, 4, B
    N Recharacterized IRA contribution None
    P Excess contributions plus earnings/excess deferrals taxable 1, 2, 4, B, J
    Q Qualified distribution from a Roth IRA None
    R Recharacterized IRA contribution made None
    S Early distribution from a SIMPLE IRA in first 2 years, no exception None
    T Roth IRA distribution, exception applies

    Note:

    If a code, 8 or P is present, circle out the entry and enter Code J.

    None
    U Dividends distributed from an ESOP under section 404(k) B
    W Charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements 6

  3. Box 7 can contain up to two (2) entries. If more than two (2) entries are made in Box 7, edit the first valid combination present for input.

3.11.8.2.8  (01-01-2014)
Payer's Account Number for Payee

  1. The payee account number should appear in the account number (optional) box. If the account number is not in the account number box but can be identified anywhere else on the return, edit the number to the account number box.

  2. The number may be any combination of alpha and/or numeric characters, but is limited to 20 positions. If the number is more than 20 positions in length, edit 20 positions, usually the 20 left most positions. If an account number is in social security number (SSN) format, use it. Omit any special characters and leading zeroes.

  3. Edit the 20 left-most positions. Whenever the account numbers in a group of returns start with the same prefix digits, edit the 20 digits following the prefix digits.

  4. If more than one account number is present, try to determine which number belongs to the person being edited as the payee. If unable to do so, use the 1st number that appears on the return.

3.11.8.3  (01-01-2014)
Numbered and Blocked Returns

  1. Forward each completed batch of returns to the ISRP function for transcription in accordance with IRM 3.24.8, Information Returns Processing.

  2. Adjust controls when releasing each batch.

3.11.8.3.1  (01-01-2014)
Unnumbered Returns

  1. Forward each completed batch of returns to the numbering function for Numbering and Blocking in accordance with IRM 3.10.8, Information Returns Processing.

  2. Adjust controls when releasing each batch.

3.11.8.4  (01-01-2014)
Receiving Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. Receive current tax year being processed and three years back. Subsequent tax year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, should be returned to Receipt and Control function.

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, should already be sorted by "IRS prepared" /"Filer prepared" and by tax year.

  3. If a batch of Form 1096 have been mis-sorted, return the batch to Receipt and Control for correction.

3.11.8.4.1  (01-01-2014)
Editing Prior Year Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. All prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, are processed through ISRP. These forms are coded as current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns. In addition, code the two numeric digits in the bottom right hand corner of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to indicate which tax year has been filed.

  2. Only one type of return should have been transmitted on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If more than one type of return was transmitted by the payer, create an additional Form 1096, Annual Summary and Transmittal of U.S. Information Returns, so one Form 1096, Annual Summary and Transmittal of U.S. Information Returns, exists for each type of return transmitted.

3.11.8.4.2  (01-01-2014)
Editing Payer Taxpayer Identification Number (TIN) and Type of Entity

  1. If the payer taxpayer identification number (TIN) is not in the proper box, draw an arrow from the TIN to the proper box provided for the payer identification number.

  2. Edit "9-" when a TIN cannot be found. Since Form 1096, Annual Summary and Transmittal of U.S. Information Returns, uses the payer name and TIN assigned to the supporting documents being transmitted by the payer, if a payer TIN has been edited by Receipt and Control, it should be used.

  3. For Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in addition to editing the payer TIN, edit a numeric "1" (when payer TIN is an EIN) or "2" (when payer TIN is an SSN) to identify the type of entity of the payer. Edit this numeric in front of the numeric Return Code in the box that identifies the type of returns are being transmitted. See IRM 3.11.8.4.4.

  4. This editing is used for posting to the Payer Master File. Edit according to how the overall payer entity appears.

    Note:

    It may be helpful to remember that most large volume payers are truly BMF entities; small volume payers can be either BMF or IMF depending on the type of payer.

  5. If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, contains both an EIN and a SSN choose the EIN, unless Receipt and Control has indicated the SSN number should be used.

3.11.8.4.3  (01-01-2014)
Editing Payer Addresses

  1. Edit the payer's address according to the normal payee address editing rules. See IRM 3.11.8.2.4.

  2. The requirement for mailable addresses for No TIN record does not apply. See IRM 3.11.8.2.2 (2).

3.11.8.4.4  (01-01-2014)
Editing Type of Return Transmitted

  1. For Form 1096, Annual Summary and Transmittal of U.S. Information Returns, the following apply:

    1. Only one type of return should have been transmitted; if more than one type of return was checked by the payer, create an additional Form 1096, Annual Summary and Transmittal of U.S. Information Returns, so that one Form 1096, Annual Summary and Transmittal of U.S. Information Returns, exists for each type of supporting return being transmitted.

    2. Make sure that the type of return transmitted can be clearly identified by ISRP.

    3. The type of entity (or TIN type) from IRM 3.11.8.4.2 must appear immediately before the numeric return code.

3.11.8.4.5  (01-01-2014)
Return Codes

  1. Return Codes for information returns should be pre-printed on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Return Codes are the same as Document Codes. Make sure it is correct.

  2. Only one type of return can be transmitted on a Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  3. If two or more Return Codes are checked code the correct Return Code. See Exhibit 3.11.8-1, Return Type and Document Code/Return Code.

3.11.8.4.6  (01-01-2014)
Editing Type of Return Transmitted

  1. The simplification of the Form 1099 (series) that reduced the number of different returns has created the need to identify the types of payments reported by a payer. Because of this, you must edit the amount box numbers in alpha order for those Form 1096, Annual Summary and Transmittal of U.S. Information Returns, that transmit the following form types:

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-G, Certain Government Payments

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

    • Form 5498-SA, Medical Savings Account Information

  2. For Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting the form types above, you must edit the allowable Payment Codes as indicated below, for each form type. Edit the Payment Code(s) in the space next to the word Instructions on Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If the return transmits only "Amended" or "Corrected" documents with all zero (0) money amounts, edit a Payment Code of "Z" .

    1. Form 1099-DIV, Dividends and Distributions - the allowable codes are "A" (Box 1a), "E" (Box 5), and "F" (Box 6). A maximum of 3 alphas can appear but no alpha can be repeated (i.e., "A" , "E" , "F" are allowed, but not "A" , "A" , "E" , "F" ).

      Note:

      If amounts are present in boxes other than 1, 5, or 6, code an "A" as the Payment Code.

    2. Form 1099-G, Certain Government Payments - the allowable codes are "A" (Box 1), "B" (Box 2), "F" (Box 6), and "G" (Box 7). A maximum of 5 alphas can appear but no alpha can be repeated.

    3. Form 1099-K, Merchant Card and Third Party Payments - the allowable codes are "A" (Box 1) and "E" through "P" for Boxes 5a through 5l respectively.

    4. Form 1099-LTC, Long-Term Care and Accelerated Death Benefits - the allowable codes are "A" (Box 1) and "B" (Box 2)

    5. Form 1099-MISC, Miscellaneous Income - the allowable codes are "A" (Box 1), "B" (Box 2), "C" (Box 3), "D" (Box 4), "E" (Box 5), "F" (Box 6), "G" (Box 7), "H" (Box 8), "J" (Box 10), "K" (Box 13), "L" (Box 14), "M" (Box 15a) and "N" (Box 15b).

    6. Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA - the allowable codes are "A" (Box 1), and "B" (Box 2)

    7. Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information - the allowable codes are "A" (Box 1), "B" (Box 2), "C" (Box 3), "D" (Box 4) and "E" (Box 5).

  3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting information returns received from the IRP Penalty unit, edit an "A" as the Payment Code.

    Note:

    Penalty Unit submitted returns will have a "P" in the first box under "For Official Use Only" located in the upper right hand corner of Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  4. Form 1096, Annual Summary and Transmittal of U.S. Information Returns that transmit Form 1099-DIV, Dividends and Distributions, Form 1099-G, Certain Government Payments or Form 1099-MISC, Miscellaneous Income and appear to have no money amounts (or all zero amounts) and were not transmitting amended documents or are no longer with the documents they transmit, edit an "A" as the Payment Code.

3.11.8.4.7  (01-01-2014)
Editing Other Items

  1. In addition to the items edited above, each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be reviewed to make sure the number of returns transmitted is present in Box 3.

    1. Make sure the count present in Box 3 appears reasonable.

      Example:

      The payer states there are 100 payee documents, but only 3 sheets are attached. You must accurately count the documents, edit the total on the transmittal and circle the payer's incorrect entry.

    2. If the count is not present, count the payee documents, and edit the total in the correct box.

    3. Edit the number of original returns transmitted by the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, followed by a slash (/) (e.g., 50/).

    4. Edit the number of "Corrected" /"Amended" returns transmitted by the Form 1096, Annual Summary and Transmittal of U.S. Information Returns as a slash (/), followed by the number (e.g., /50).

  2. If the taxpayer has failed to put an amount in Box 4 (Federal income tax withheld) and/or Box 5 (Total amount reported with this Form 1096, Annual Summary and Transmittal of U.S. Information Returns) and the Form W-2G, Certain Gambling Winnings, are attached do the following:

    Note:

    Edit boxes 4 and 5 as dollars. Prior year forms do not require editing for these two boxes.

    1. Add the amount from Box 4 (Federal income tax withheld) of the Form W-2G, Certain Gambling Winnings documents attached and edit that amount in Box 4 of Form 1096Annual Summary and Transmittal of U.S. Information Returns.

    2. Add the amount from Box 1, (Gross winnings) of the Form W-2G, Certain Gambling Winnings, attached and edit that amount in Box 5 of Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  3. On all ISRP processed Form 1096, Annual Summary and Transmittal of U.S. Information Returns, determine how many information returns within a submission could be subject to penalty using the criteria listed below. Do not count voided information returns.

    Information Return Criteria to Determine Subject to Penalty Count
    If Then
    Form 1098, Mortgage Interest Statement Boxes 1, 2, 3 and 4 combined total is $600 or greater
    Form 1099-C, Cancellation of Debt Box 2 is $600 or greater
    Form 1099-CAP, Changes in Corporate Control and Capital Structure Box 2 is $100 million or greater
    Form 1099-DIV, Dividends and Distributions Boxes 1 and 2a combined total $10.00 or greater (except $600 or more for liquidations)
    Form 1099-G, Certain Government Payments Boxes 1 and 2 combined total $10.00 or greater
    or
    $600 or greater for all others
    Form 1099-INT, Interest Income Boxes 1, 3 and 8 net total is greater than $10
    or
    any entry in Box 6
    Form 1099-K, Merchant Card and Third Party Payments Box 1 is $600 or greater
    Form 1099-MISC, Miscellaneous Income Boxes 1, 2, 3, 5, 6, 7, 8, 10, or 14 combined total is $600 or greater
    or
    Box 14 total is $600 or greater
    Form 1099-OID, Original Issue Discount Boxes 1 and 2 net total is $10 or greater
    Form 1099-PATR, Taxable Distributions Received From Cooperatives Boxes 1, 2, 3 or 6 combined total is $10 or greater
    Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc. Box 1 is $10 or greater
    Form 1099-S, Proceeds From Real Estate Transaction Box 2 is $600 or greater
    Form W-2G, Certain Gambling Winnings Boxes 1 and 7 combined total is $600 or greater

  4. Edit the number of information returns subject to penalty in the bottom left hand corner of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, using the criteria above. This count should be less than or equal to the total number of documents reported in Box 3 of Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

3.11.8.4.8  (01-01-2014)
Disposition of Edited Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. After Form 1096, Annual Summary and Transmittal of U.S. Information Returns, have been edited, return them together with the supporting Information returns to the Numbering function for numbering.

  2. Numbering will forward prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and current year information returns to ISRP for transcription in accordance with IRM 3.24.8Information Return Processing. Prior year information returns are destroyed after the Form 1096, Annual Summary and Transmittal of U.S. Information Returns has been properly coded.

Exhibit 3.11.8-1 
Return Type and Document Code/Return Code

Return Type Document Code (Return 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-R 98
Form 1099-S 75
Form 1099-SA 94
Form 3921 25
Form 3922 26
Form 5498 28
Form 5498-ESA 72
Form 5498-SA 27
Form W-2G 32

Exhibit 3.11.8-2 
Term Definitions Information Return Editing

Term Definitions Information Return Editing
Term Definition
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.
"Corrected" or "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.
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.
Domestic Payer Any information return submitted on an official Internal Revenue Service (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.
"Dummy" Form Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or transmittal, prepared by IRS when an employer or payer submits information returns, 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 return types).
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 Information Return Program (IRP). All Foreign Treaty Information Returns will be processed in AUSPC.
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

  • Borrower

Exception:

For Form 1098, borrower and payer mean payee.

Payee Information 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

Exception:

For Form 1098, Recipient and Lender mean payer, and Form 1096, does not contain payee data.

Payer Identifiers Labels 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.
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.
TIN Taxpayer Identification Number
yyty Current tax year being processed with century
yyty-1 Current tax year being processed minus one with century
yypy Current year being processing with century
TY Tax Year
PY Processing Year

Exhibit 3.11.8-3 
Account Type Codes

Account Type Definition
B Form 1096 , Annual Summary and Transmittal of U.S. Information Returns, is prepared and submitted by the payer.
C Form 1096 , Annual Summary and Transmittal of U.S. Information Returns, is a "Dummy" prepared by IRS because the payer did not submit a Form 1096 , Annual Summary and Transmittal of U.S. Information Returns.
P Returns from domestic payers, and are processable in IRP.

Exhibit 3.11.8-4 
State Code/ZIP Code Perfection Chart (State Order)

State Code/ZIP Code Perfection Chart
2–Ltr. Code State Name ZIP Code 2–Ltr. Code State Name ZIP Code
AA America-Atlantic 34001 MS Mississippi 38601
AE America-Europe 09001 MO Missouri 63001
AP America-Pacific 96201 MT Montana 59001
AL Alabama 35001 NE Nebraska 68001
AK Alaska 99501 NV Nevada 88901
AZ Arizona 85001 NH New Hampshire 03001
AR Arkansas 71601 NJ New Jersey 07001
CA California 90001 NM New Mexico 87001
CO Colorado 80001 NY New York 00401
CT Connecticut 06001 NC North Carolina 27001
DC District of Columbia 20001 ND North Dakota 58001
DE Delaware 19701 OH Ohio 43001
FL Florida 32001 OK Oklahoma 73001
GA Georgia 30001 OR Oregon 97001
HI Hawaii 96701 PA Pennsylvania 15001
ID Idaho 83201 RI Rhode Island 02801
IL Illinois 60001 SC South Carolina 29001
IN Indiana 46001 SD South Dakota 57001
IA Iowa 50001 TN Tennessee 37001
KS Kansas 66001 TX Texas 75001
KY Kentucky 40001 UT Utah 84001
LA Louisiana 70001 VT Vermont 05001
ME Maine 03901 VA Virginia 20101
MD Maryland 20601 WA Washington 98001
MA Massachusetts 01001 WV West Virginia 24701
MI Michigan 48001 WI Wisconsin 53001
MN Minnesota 55001 WY Wyoming 82001

Exhibit 3.11.8-5 
ZIP Code, State and State Abbreviation Exceptions

Exception to Zip with State
The following are unique ZIP Codes to these locations.
City ZIP State City ZIP State
Airport 45275 KY Naval Base 03801 ME
Alvin 49936 WI Navy Annex 20370 VA
Andrews AFB 20331 MD Pentagon 20301 VA
Dulles Int'l Airport 20041 VA Texarkana 75502 AR
Fishers Island 06390 NY Texhoma 73949 TX
Junction City 71749 LA      

Exhibit 3.11.8-6 
Military Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO) State Codes and ZIP Codes

Military City, State and ZIP Codes
ZIP Code Address Country APO/FPO/DPO Address
966XX and
98760 - 98799
FPO Pacific FPO AP [ZIP Code]
962XX - 966XX DPO Pacific DPO AP [ZIP Code]
34000-34049 APO Americas APO AA [ZIP Code]
34050-34099 FPO Americas FPO AA [ZIP Code]
340XX-340XX DPO Americas DPO AA [ZIP Code]
090XX - 094XX
096XX - 098XX
APO Europe APO AE [ZIP Code]
095XX FPO Europe FPO AE [ZIP Code]
090XX - 098XX DPO Europe DPO AE [ZIP Code]
962XX - 965XX
98700 - 98759
APO Pacific APO AP [ZIP Code]

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