3.10.8 Information Returns Processing

Manual Transmittal

November 20, 2020

Purpose

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

Material Changes

(1) IRM 3.10.8.1.2 Added Protecting America from Tax Hikes Act to the authority statement drove updates to returns impacting instruction changes.

(2) IRM 3.10.8.2.1 (1) Added new Form 1099-NEC, Nonemployee Compensation, to the instruction to reflect development and inclusion to the program.

(3) IRM 3.10.8.2.2 (1) Added Form 1099-NEC, Nonemployee Compensation, and updated prior year Form 1094 series no longer selected for processing due to a new form creation and exclusion of excessive prior year from the program.

(4) IRM 3.10.8.3 (2) Removed exception statement on indefinitely holding items not selected for sample with concurrence from Submission Processing management. Rescinds IPU 18U0804 issued 05-11-2018. IPU 19U1076 issued 10-01-2019. Reissued under IPU 20U0010 issued 01-02-2020.

(5) IRM 3.10.8.3.2 (6) Updated prior tax years to not correspond for documents not selected for processing to reduce taxpayer burden.

(6) IRM 3.10.8.3.3 (1) c Added statement to existing 45-day acceptable response period for correspondence to the instruction to cover building shutdowns. IPU 20U0635 issued 05-22-2020

(7) IRM 3.10.8.3.3.1

  • (1) a Removed condition to not date stamp certain form types and replaced by the condition previously stated in listed IRM 3.10.8.3.3.1 (2). IPU 20U0010 issued 01-02-2020.

  • (2) Moved instruction to IRM 3.10.8.3.3.1 (1) a and all subsequent instruction renumbered. IPU 20U0010 issued 01-02-2020.

(8) IRM 3.10.8.4

  • (3) Specified Form 1094 series in instruction to sort Service Center Recognition/Image Processing System (SCRIPS) processed returns by type and year. IPU 20U0635 issued 05-22-2020

  • (6) Removed exception statement for NEC expedite sort removed. Obsolete as of February 2020. IPU 20U0635 issued 05-22-2020

  • (7) Removed obsolete expedite instructions for Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with box 7 marked and all subsequent instruction and related cross references renumbered. IPU 20U0635 issued 05-22-2020

  • (11) e Changed Form 1099-MISC, Miscellaneous Income, box 9 instruction to box 7 due to tax year 2020 form changes.

(9) IRM 3.10.8.5.2.1

  • (5) Removed instruction to place unidentified money amounts on Form 1099-MISC, Miscellaneous Income, in obsolete nonemployee compensation box removed from the instruction to match tax year 2020 form changes. All subsequent instruction renumbered. All cross references to this subsection updated.

  • (7) b Changed Form 1099-MISC, Miscellaneous Income, box 9 instruction to box 7 due to tax year 2020 form changes.

  • (8) Updated significant payment locations for the following form types to reflect tax year 2020 form changes: Form 1099-MISC, Miscellaneous Income, Form 1099-NEC, Nonemployee Compensation, and Form 1099-PATR, Taxable Distributions Received From Cooperatives.

  • (9) Added cross reference to IRM 3.10.8.5.2.1 (7) exception list to the instruction.

(10) IRM 3.10.8.5.3

  • (1) Added an example to explain instruction to keep separate counts by program. IPU 20U0635 issued 05-22-2020

  • (5) Added an exception to account for site (Campus) closures when addressing correspondence due to unprocessable submissions referred to as no replies. IPU 20U0635 issued 05-22-2020

(11) IRM 3.10.8.5.4 (4) Deleted instruction to use both digits when entering correspondence codes because only code 99 is used. All subsequent instruction renumbered.

(12) IRM 3.10.8.8.6

  • (2) Added instruction to circle-out entries on money fields with only cents entered to reflect current programming. All subsequent instruction renumbered.

  • (22) Updated edit field instructions for Form 1099-MISC, Miscellaneous Income, to reflect the tax year 2020 version of the form.

  • (23) Added edit field instructions for new Form 1099-NEC, Nonemployee Compensation to reflect form changes.

  • (25) Updated Form 1099-PATR, Taxable Distributions Received From Cooperatives, field edit instructions to reflect the new form revision.

  • (28) Added box 13 date field for Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., instruction to reflect form changes.

(13) IRM 3.10.8.8.7 (2) Corrected valid combination for distribution codes corrected to match published instruction.

(14) IRM 3.10.8.9.6

  • (1) Added new Form 1099-NEC, Nonemployee Compensation, to instruction to reflect the tax year 2020 form revisions.

  • (2) Added payment codes for new Form 1099-NEC, Nonemployee Compensation to reflect new form revisions.

(15) IRM 3.10.8.9.7

  • (3) Changed and added subject to penalty criteria for the following form types to reflect tax year 2020 form revisions: Form 1099-DIV, Dividends and Distributions, Form 1099-INT, Interest Income, Form 1099-MISC, Miscellaneous Income, Form 1099-NEC, Nonemployee compensation, Form 1099-OID, Original Issue Discount, and Form 1099-PATR, Taxable Distributions Received From Cooperatives.

  • (4) Added instruction with examples on coding subject to penalty number to help complete tasks.

(16) Exhibit 3.10.8-2 Added document and return code for new Form 1099-NEC, Nonemployee Compensation, to the existing table reflecting the tax year 2020 form changes.

(17) Exhibit 3.10.8-3 Federal Tax Withholding (FTWH) Report with no reply submissions or unprocessable resubmissions routing moved to the table entry without threshold criteria. IPU 19U1240 issued 12-02-2019. Reissued under IPU 20U0010 issued 01-02-2020.

(18) Exhibit 3.10.8-4

  • Updated tax years for processable sorts and the expedite nonemployee compensation sort added to the instruction.

  • Change expedite sort name for Income IRP to "Expedite NEC IRP" .

(19) Exhibit 3.10.8-6 Added new Form 1099-NEC, Nonemployee Compensation, to the existing table reflecting the tax year 2020 form changes.

(20) Exhibit 3.10.8-8 Added Form 1099-NEC, Nonemployee Compensation to January 31 due date listing reflecting the tax year 2020 form changes.

(21) Editorial correction, consistency changes, and cross reference updates due to location changes of existing instruction, addresses and tax years for processing made throughout the instruction.

Effect on Other Documents

IRM 3.10.8 dated November 15, 2019 (effective January 1, 2020), is superseded. IRM Procedural Updates (IPUs), incorporated into this IRM: IPU 19U1076 issued 10-01-2019, 19U1240 issued 12-02-2019, IPU 20U0010 issued 01-02-2020 and IPU 20U0635 issued 05-22-2020.

Audience

Receipt and Control Employees

Effective Date

(01-01-2021)


James L. Fish
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Prepare paper filed information returns received from the taxpayers for data capture for use by the IRS.

  2. Purpose: The purpose is to provide instruction to prepare the needed sorts for paper filed information returns received from the extracting function for data capture.

  3. Audience: Submission Processing clerks in the Receipt and Control Operation who process information return programs listed in this IRM.

  4. Policy Owner: Director, Submission Processing.

  5. Program Owner: Submission Processing, Mail Management Data Conversion Section, Paper Processing Branch.

  6. Primary Stakeholders: Small Business/Self Employed (SB/SE), Examination Operations, and Headquarters Examinations.

  7. Program Goals: The goal of this program is to create sorts of paper submissions (returns) for various paper intake systems and to identify all unprocessable conditions to determine the disposition of each taxpayer submission.

Background

  1. Filers send paper information returns to the IRS to fulfill their requirement to file information returns. IRS must convert processable returns selected for sample to an electronic data record. Receipt and Control Operation sorts and prepares these returns for the data capture systems to convert to electronic data records.

Authority

  1. Authority is Title 26 of the United States Code (USC) or more commonly known as the Internal Revenue Code, IRC 6721, and corresponding Treasury Regulations. The IRC is amended by acts, public laws, treasury determinations, rules, and regulations such as the following:

    • Information Reporting on Health Coverage by Insurers IRC 6055

    • Information Reporting on Health Coverage by Employers IRC 6056

    • Failure to File a Correct Information Return IRC 6721

    • IRC 6693

    • Protecting Americans from Tax Hikes Act

    • Tax Cuts and Jobs Act of 2017

    Note:

    The above list is not all inclusive of the various updates to the IRC.

Roles and Responsibilities

  1. The Director of Submission Processing approves and authorizes the policy presented in this IRM.

  2. The Operations manager secures, assigns and provides training for the staff to perform the tasks throughout this instruction.

  3. The Planning and Analysis Staff provides feedback and support to local management to achieve and effectively monitor scheduled goals.

  4. The Department and Team manager assign, monitor and control the workflow to accomplish accurate completion of the tasks in this IRM.

  5. The clerk accurately completes and prepares sorts of paper information submissions for release to paper intake for data capture.

Program Management and Review

  1. Program Reports: Below is a list of official reports to use to show receipts, production and inventory for the program covered by this IRM. Reports have daily and weekly status of the program to completion.

    • PCC 2240, Daily Production Report - Program Sequence

    • PCC 6040, SC WP&C Performance and Cost Report

    • PCC 6240, SC WP&C Program Analysis Report

    • PCB 0440, Daily Workload and Staff Hours Schedule

    • PCB 0540, Weekly Workload and Staffing Schedule

  2. Program Effectiveness: Measure goals by using standard managerial reports in documents processed per hour and actual to scheduled rates. Each function must meet or exceed schedule prior to the program completion date stated in IRM 3.30.123, Work Planning and Control Processing Timeliness: Cycles, Criteria, and Critical Dates. Local management conducts and monitors quality reviews taking corrective action to ensure quality products arrive to the next function.

  3. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration.

Program Controls

  1. Management uses unit production cards (UPCs) entered daily to measure and record activity in each function of this program. Use IRM 3.10.5, Campus Mail and Work Control, Batch/Block Tracking System (BBTS), to record receipts and production.

  2. Use any local reports to establish information for supporting daily program control. Local reports do not replace the established official reports and production reporting.

Terms/Definitions

  1. The following paragraphs define terms used in this IRM. See definitions for other terms in Exhibit 3.10.8-1, Term Definitions Information Returns.

  2. Affordable Care Act (ACA) Information Return Processing (IRP) — Form 1094 series and Form 1095 series "B" and "C" documents.

  3. Change of Payer — Any point in a block of returns when any part of the payer/filer entity changes.

  4. Copy A — The copy of the income information document submitted to the IRS for processing. Forms fall 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 information on the forms, but the forms can physically pass through the scanner's transport for assignment of Document Locator Numbers (DLN)s.
    Non-Transportable Severely cut, torn, or mutilated forms.

    Note:

    Consider scannable forms with minor cuts, tears or other physical defects.

    Unprocessable Documents that cannot enter processing because the information is unclear, indecipherable, or the utility of the document is minimized or eliminated.

  5. General Purpose Programming (GPP) — Returns processed and sent to the modernized information return intake system (IRI).

  6. Income Information Return Processing (IRP) — Returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  7. Information Return Intake (IRI) — A modernized intake system establish to accept certain paper document electronic data records as of January 01, 2015.

  8. Parent Return — The return transmittal related detail information returns.

    Parent Return Detail Information Return
    Form 1094-B Form 1095-B
    Form 1094-C Form 1095-C
    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. Corrected standalone (CSA) — A Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, with both a corrected box and line 19 marked and no transmitting documents.

  10. Submission — A filing consisting of a transmittal document and supporting detail documents.

    Exception:

    Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, CSA defined above.

  11. Correspondence indicator — A two-digit number coded on the transmittal to generate letters to filers.

  12. Prior year return — A return reporting information pertaining to the calendar year minus more than one.

  13. Late filing indicator — A character placed in the first box under the title "For Official Use Only" on the transmittal to designate a late-filing.

Related Resources

  1. The following lists resources to use in conjunction with the instructions found in this IRM.

    • IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting

    • IRM 3.10.73, Campus Mail and Work Control, Batching and Numbering

    • IRM 3.13.62, Campus Document Services, Media Transport and Control

    • IRM 3.41.267, Optical Character Recognition (OCR) Scanning Operations, Affordable Care Act Information Return Processing on Service Center Recognition/Image System (SCRIPS)

    • IRM 3.41.269, Optical Character Recognition (OCR) Scanning Operations, Information Returns Processing (IRP) on Service Center Recognition Image Process System (SCRIPS)

    • IRM 10.5.1, Privacy and Information Protection - Privacy Policy

    • Document 7475, State and Address Abbreviations, Major City Codes (MCCs), Countries and ZIP Codes

    • Document 12990, Records and Information Management Records Control Schedules

    • Document 13056, Employee Toolkit: Shopping for Personally Identifiable Information (PII)

    • Document 13144, Proper PII Shipping Procedures

    • Pub 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns

    • Pub 5223, General Rules and Specifications for Affordable Care Act Substitute Forms 1095-A, 1094-B, 1095-B, 1094-C and 1095-C

  2. Locate IRMs on Servicewide Electronic Research Program (SERP) at the following site: http://serp.enterprise.irs.gov/homepage.html. Use Receipt and Control Research Portals located at http://serp.enterprise.irs.gov/databases/portals/sp/imf/receipt-and-control/receipt-and-control.html and http://serp.enterprise.irs.gov/databases/portals/sp/bmf/receipt-and-control/receipt-and-control.html.

  3. The IRS adopted the Taxpayer Bill of Rights in June 2014. Become familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), and the following site for information about the Taxpayer Bill of Rights: https://www.irs.gov/taxpayer-bill-of-rights.

  4. IRM 21.5.1, Account Resolution, General Adjustments, for guidance on handling classified waste to prevent inadvertent and unlawful destruction of records.

Introduction

  1. This IRM section instructs on the tasks necessary in the preparing the following paper taxpayer submissions for processing: Income Information Returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns and Affordable Care Act information returns transmitted by Form 1094 series.

  2. Submit IRM deviations in writing following instructions from IRM 1.11.2.2, Internal Management Documents System - Internal Revenue Manual (IRM) Process, IRM Standards, and elevated through proper channels for executive approval.

Information Returns List

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

    • Form 1094-B, Transmittal of Health Coverage Information Returns, and transmitted Form 1095-B, Health Coverage

      Caution:

      Processed as one unit of work - Never separate the submission for processing.

    • Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, with a corrected box and line 19 both marked and no transmitting detail documents

    • Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and transmitted Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

      Caution:

      Processed as one unit of work - Never separate the submission for processing.

    • 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-F, Fines, Penalties, and Other Amounts

    • Form 1098-Q, Qualifying Longevity Annuity Contract Information

    • 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-INT, Interest Income

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

    • Form 1099-LS, Reportable Life Insurance Sale

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

    • Form 1099-MISC, Miscellaneous Income

    • Form 1099-NEC, Nonemployee Compensation

    • 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-QA, Distributions from ABLE Accounts

      Caution:

      Processed as one unit of work - Never separate the submission for processing.

    • 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 1099-SB, Seller's Investment in Life Insurance Contract

    • Form 3921, Exercise of an 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-QA, ABLE Account Contribution Information

      Caution:

      Processed as one unit of work - Never separate the submission for processing.

    • Form 5498-SA, HSA, Archer, or Medicare Advantage MSA Information

    • Form W-2G, Certain Gambling Winnings

  2. The following require exceptional processing. Process as one unit of work. DO NOT separate the submission (transmittals from the detail documents being transmitted).

    1. Form 1099-QA, Distributions from ABLE Accounts

    2. Form 5498-QA, ABLE Account Contribution Information

    3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns transmitting the returns directly above.

  3. 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.

  4. Do not process Form 1098-MA, Mortgage Assistance Payments, in Information Return Processing (IRP) Sort Unit or information return processing. Ship all Form 1098-MA, Mortgage Assistance Payments to Stop 6723 Austin Submission Processing Center (AUSPC) for retention.

  5. Do not process Form 8966, FATCA Report, in IRP Sort Unit. Return these forms to Stop 6052, Austin Submission Processing Center (AUSPC), Receipt and Control batching function for proper routing.

  6. Use instructions in IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting, and IRM 3.10.73, Campus Mail and Work Control, Batching and Numbering, as a source of general guidelines not found in this IRM.

  7. See IRM 3.10.72.15, Information Return Processing Sorts (Austin, Kansas City, and Ogden Only), for sorts received from the extraction area.

Program Codes

  1. Use the following program codes for Integrated Submission and Remittance Processing (ISRP):

    ISRP
    Form
    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 1098-Q, Qualifying Longevity Annuity Contract Information 44311
    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 1098-F, Fines, Penalties, and Other Amounts

    • Form 1099-INT, Interest Income

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

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

    • Form 1099-LS, Reportable Life Insurance Sale

    • Form 1099-NEC, Nonemployee Compensation

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

    • Form 1099-SB, Seller's Investment in Life Insurance Contract

    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 and 530)

    • Form 1099-S, Proceeds From Real Estate Transaction

    44308
    Form 1099-QA, Distributions from ABLE Accounts,
    "AND" transmitting Form 1096, Annual Summary and Transmittal of U.S. Information Returns
    44351
    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, HSA, Archer, or Medicare Advantage MSA Information 44315
    Form 5498-QA, ABLE Account Contribution Information
    "AND" transmitting Form 1096, Annual Summary and Transmittal of U.S. Information Returns
    44352
    Form 3921, Exercise of an 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

  2. Use the following program codes for Service Center Recognition/Imaging Processing System (SCRIPS):

    SCRIPS
    Form
    SCRIPS
    Program
    Code

    Caution:

    DO NOT separate the submission for processing.

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

      Note:

      Current year minus one 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, Payment Card and Third Party Network Transactions

    • Form 1099-MISC, Miscellaneous Income

    • Form 1099-NEC, Nonemployee Compensation

    • Form 1099-OID, Original Issue Discount

    • Form 1099-PATR, Taxable Distributions Received from Cooperatives

    • Form 1099-Q, Payments From Qualified Education Programs (Under Section 529 and 530)

    • 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, IRA Contribution Information

    44340

    Note:

    Destroy tax years prior to 2017.

    • Form 1094-B, Transmittal of Health Coverage Information Returns, "AND" transmitted Form 1095-B, Health Coverage

    • Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, "AND" transmitted Form 1095-C, Employer-Provided Health Insurance Offer and Coverage

    • Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns marked corrected "AND" line 19 check box, authoritative transmittal is checked

      Reminder:

      Do not consider box 18 entries or lack of entries when making the determination to forward the return for processing.

    44320

Inspection of Contents

  1. Dispose of all information returns not mentioned in IRM 3.10.8.2.1, Information Returns List, and IRM 3.10.8.4, Detailed Sorting. Management must review all original forms (not copies) before disposal.

  2. Process information returns per Document 12990, Records and Information Management Records Control Schedules, Record Control Schedule (RCS) 29, Item 85. Apply the disposition instructions for these form types.

  3. Process all form types per instructions for each type of return.

  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 to 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 if disassociated from their respective information returns during IRP processing, process through ISRP. Code box 3, Total number of forms, to zero on these submissions.

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

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

  9. Route Form 8210, Self-Assessed Penalties Return, to the IRP penalties unit.

  10. Route correspondence received attached to information returns as follows:

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

      Taxpayer type Description of Correspondence
      From Payer Send to IRP correspondence unit Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., attached to a taxpayer’s response.
      From the Payee Route to Accounts Management Branch for analysis and disposition.

    2. Forward to IRP Correspondence unit corrected information returns attached to the correspondence. IRP Correspondence unit determine if the information returns require processing. If it is determined the information returns require processing, detached from the correspondence and forwarded for processing. Notate on the correspondence any information returns detached and sent for processing.

  11. Respond to filers attach correspondence explaining blank TINs on some or all their information returns with an Integrated Data Retrieval System (IDRS) Correspondex Letter. After a response is sent, dispose of the incoming correspondence.

General Correspondence Received

  1. Route correspondence meeting Taxpayer Advocate Service (TAS) criteria listed in IRM 13.1.7.2, TAS Case Criteria, to the local TAS office.

  2. Route correspondence concerning anything other than information returns to Accounts Management.

  3. Disregard notations on the face of the return and continue processing if the return is processable.

  4. Route correspondence concerning 50 or more recipient accounts in error to the payer coordinator in the Underreporter Branch in Ogden. See Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, for complete mailing address.

  5. Route correspondence concerning a CP 2000, Request for Verification of Unreported Income, Payments, or Credits, notice per the following instructions. Go to Servicewide Electronic Research Program (SERP) located at http://serp.enterprise.irs.gov/homepage.html under the Who/Where tab. Choose Automated Under Reporter (AUR) Addresses (Open Cases) to find the address.

  6. Forward correspondence concerning a Letter 2030, Request Verification for Underreported Income, Deductions Payments and/or Credits on BMF Income Tax Returns, routed to IRP Sort unit in error from Extraction to Business Underreporter (BUR) using the following instruction. Go to Servicewide Electronic Research Program (SERP) located at http://serp.enterprise.irs.gov/homepage.html and under the Who/Where tab choose BUR Program to find the address. Include the provided stop number on the transmittal.

  7. Route documents received with correspondence concerning a Letter 3939-A, Delinquent Information Returns - Government Entities Compliance Unit, or with Form 14232, Response Form for Letter 3939-A, routed to IRP Sort unit in error from Extraction to Government Entities Compliance Unit (GECU) in Ogden at M/S 7700.

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

  9. Route "letters or notices" from the CAWR Reconciliation Function from the taxpayer, as well as any forms or information submitted 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 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, when routing information to Combined Annual Wage Reporting (CAWR).

Computer Paragraph (CP) 15, Civil Penalties Notice, or Computer Paragraph (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 processable information returns, do the following:

    1. Code delinquent return indicator "≡ ≡ ≡" on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Do not code a ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡.

    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 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, Campus Mail and Work Control, Receiving, Extracting, and Sorting, Exhibit 3.10.72-3, Computer Paragraph (CP) Notices - Routing Guide, for proper routing based on the PRN (three-digit - Penalty Reference Number) printed on the notice.

Prior Year Forms

  1. Date stamp all prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, upon receipt.

  2. Process through ISRP prior year Form 1096.

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. Route prior year Form 1096 to SCRIPS for imaging after ISRP processing is complete.

    2. Forward prior year Form 1096 with criteria in Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, to the IRP Penalty unit in Philadelphia.

    3. Destroy prior year processed Form 1096 imaged by SCRIPS not forwarded to IRP Penalty unit.

    .

  3. Process prior year Form 1096 marked "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡" as ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ returns.

  4. Process 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, as follows:

    1. Forward prior year Form W-2G and Form 1099-R and the transmitting Form 1096with correspondence to the CAWR Reconciliation function with the original Form 1096 prior to processing.

    2. Destroy all prior year Form W-2G and Form 1099-R if they do not have correspondence after the original Form 1096 is edited for processing.

  5. Process Form 3921, Exercise of an Incentive Stock Option Under Section 442(b), and Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), as current year returns.

  6. Consider tax years prior to 2017 for Form 1094 series and Form 1095 series unprocessable. Do not correspond with the filer on returns prior to tax year 2017.

  7. Date stamped on receipt prior year Form 1094 series transmitting Form 1095 series beginning with tax year 2017.

Date Stamping Late Filed Transmittals

  1. Date stamp all current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, received after due date grace period upon receipt. Date stamp all current year and processable prior year Form 1094 series, received after due date grace period upon receipt. Follow guidelines found in IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting, for date stamping late-filed returns.

    1. Date stamp current year transmittals, 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 Form 1096.

    3. When a taxpayer replies within the 45-day timeframe to the Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., use the date stamp, if present, on the original return to ensure the correct received date is captured. Do not date stamp a return when the original is unprocessable, but timely filed.

      Example:

      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.

  2. Do not date stamp transmittals incorrectly sent to state taxing agencies or the Social Security Administration (SSA) where the envelopes show the returns mailed timely.

    Exception:

    However, if the original receiving location either stamps a received date indicating a late filing or forwards the original mailing envelope indicating a late filing, accept the transmittal as late filed and follow the instructions in IRM 3.10.8.3.3 (1) above.

  3. If a payer sent in a letter explaining late returns, date stamp the transmittal and forward to the IRP Unit for processing through SCRIPS or ISRP.

  4. Date stamp late filed Form W-3, Transmittal of Wage and Tax Statements, transmitting Form W-2, Wage and Tax Statement. Date stamp the first Form W-2, Wage and Tax Statement, if a Form W-3, Transmittal of Wage and Tax Statements, is not present in the submission. See IRM 3.10.8.3.2, Prior Year Forms.

Date Stamping Form 1096, Annual Summary and Transmittal of U.S. Information Returns
  1. Do not date stamp late Form 1096 if they meet the conditions below.

    1. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, coded with a delinquent indicator of "≡ ≡ ≡" ≡ ≡"≡ ≡" ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡"≡" or has the words or similar notation of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in the top center of the form or along the left margin.

    2. Form 1096 forwarded to the IRS incorrectly sent to state taxing agencies or the Social Security Administration (SSA) where the envelopes show a state agency or SSA.

      Note:

      If the original receiving location either stamped a received date or forwarded from original mailing envelope indicating late filing then accept the transmittal as late filed and follow the instructions in IRM 3.10.8.3.3 (1) above.

    3. Form 1096 received with no supporting detail documents.

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

  2. Hold for the next year delinquent current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, received too late for current processing year for ISRP "start-up" .

  3. Form 1099-DIV, Dividends and Distributions, submissions received late and only have information reported in box 6 and/or box 7, "DO NOT" place a late filing indicator or received date on Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

Date Stamping Form 1094-B, Transmittal of Health Coverage Information Returns and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns
  1. Do not date stamp future year Form 1094-B, Transmittal of Health Coverage Information Returns, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns

  2. Do not date stamp Form 1094, Transmittal of Health Coverage Information Returns, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, coded with a delinquent indicator of "≡ ≡ ≡" ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡"≡ ≡ ≡ ≡" or has the words or similar notation of ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ in the top center of the form or along the left margin.

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. Do not separate 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, and route as follows:

    1. Send any current tax year copy received to the Social Security Administration (SSA) address listed below.

    2. Send all future tax year returns to the SSA address listed below.

    3. Route prior year returns received "with correspondence or Combined Annual Wage Reporting (CAWR) related correspondence" to the CAWR Reconciliation Function per the Campus Program Locator Guide. Find the guide on Servicewide Electronic Research Program (SERP) under the Who/Where tab http://serp.enterprise.irs.gov/tabs/who-where/cplg/irs-cawr.html, and http://serp.enterprise.irs.gov/tabs/who-where/cplg/irs-cawr-and-ssa-cawr.html, under the heading Campus Program Locator Guide, Small Business/Self-Employed (SB/SE) Exam BMF Document Matching CAWR.

  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, transmitted by Form W-3 SS, Transmittal of Wage and Tax Statements. 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 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 3.10.8.3). 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 it came in.

  6. Ship documents per IRM 3.13.62, Campus Document Services, Media Transport and Control, or IRM 10.5.1, Privacy and Information Protection - Privacy Policy, following Personally Identifiable Information (PII) guidelines located at http://publish.no.irs.gov/mailtran/pii.html, titled Postal and Transport Policy. Prepare Form 3210, Document Transmittal, and ship documents on a weekly basis.

  7. Separate late-filed Form W-3, Transmittal of Wage and Tax Statement, and Form W-2, Wage and Tax Statement, from timely filed. Annotate on the Form 3210, Document Transmittal, "Delinquent Returns" .

  8. Forward Form W-3, Transmittal of Wage and Tax Statement, and Form W-2, Wage and Tax Statement, received for subsequent tax years to SSA at the following address.

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

Detailed Sorting

  1. Review returns within "30 days of receipt" to allow timely correspondence with the filer of unprocessable returns giving 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.

  3. Sort Service Center Recognition/Image Processing System (SCRIPS) processed returns transmitted by Form 1094 by the transmittal type "C" or "B" and tax year. See IRM 3.10.8.4 (7) below.

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

  5. Hold succeeding year returns including the transmittal for processing with returns received for the succeeding year in Receipt and Control.

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

    2. Maintain volume counts of receipts of information returns received in processing year 2021 for the tax years 2017 through 2020. See listed manual count requirements in IRM 3.30.123, Processing Timeliness: Cycles, Criteria and Critical Dates, for information return processing (IRP) program completion date (PCD) definition.

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

  7. See Exhibit 3.10.8-4, Sorts for Service Center Recognition/Imaging Processing System (SCRIPS), for form sorts processed through SCRIPS.

    Caution:

    Process as one unit of work submissions (transmittal and supporting detail documents) from the filer. Never separate the submission for SCRIPS processing.

  8. See Exhibit 3.10.8-5, Sorts for Integrated Submission and Remittance Processing (ISRP), for form sorts processed through ISRP.

  9. Do not separate returns with payee TINs from returns without payee TINs.

  10. Treat as copy "A" any copy "B" and copy "C" of any information return listed in IRM 3.10.8.2.2, Program Codes, received in the campus from a payer/filer with a valid transmittal: Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form 1094-B, Transmittal of Health Coverage Information Returns, or Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns.

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

      Exception:

      Do not send forward for processing unprocessable formats requiring correspondence. See IRM 3.10.8.5.2(1) b) listing.

      Example:

      Do not send for processing Form 1099-MISC, Miscellaneous Income, recipient copies where the entire form measures three inches across and/or multiple forms to a page. Send correspondence requesting processable returns.

    2. If copy "B" and/or copy "C" report the same information, dispose of one of the copies.

    3. Dispose of all copies "B" and "C" received without a corresponding transmittal.

      Exception:

      If copies other than "A" do not have a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, but have "correspondence indicating" it is an intended submission then, prepare a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, (see IRM 3.10.8.5.1 (11), Review of Parent Document) and process the forms as copies "A" .

    4. 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.

    5. Destroy all copies "B" , copies "C" , copy "1" or copy "2" , or any copy designated for a state received without a transmittal, or a state transmittal.

    6. 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.

    7. Forward to the correct state office all copies designated as state copies received with a state transmittal, per instructions in IRM 3.13.62, Campus Document Services, Media Transport and Control, ensuring Form 3210, Document Transmittal, is included and follow PII guidelines per IRM 10.5.1, Privacy and Information Protection - Privacy Policy.

  11. Void all information returns if they do not have a money amount equal to or 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. Corrected returns.

    2. Form 1094 series.

    3. Form 1095 series.

    4. Form 1099 series with a mark in the FATCA box.

    5. Form 1099-MISC, Miscellaneous Income, with a mark in box 7.

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

    7. Form 1098-T, Tuition Statement.

  12. Dispose of all submissions (transmittal and supporting detail documents) with only voided documents. This includes submissions voided by IRS based on instructions in IRM 3.10.8.5.2.1 (8), Review Information Returns Transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

  13. Conduct managerial review prior to disposing of documents not selected for processing: This includes:

    • Submissions or a page of documents voided by IRS based on instructions in IRM 3.10.8.5.2.1 (8), Review Information Returns Transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    • Documents considered unprocessable and/or not selected for processing.

    • Duplicates of documents already sent to for processing.

    • Any instance in this instruction calling for classified waste.

  14. See IRM 3.10.8.3.3, Date Stamping Late Filed Transmittals, for processing returns received after the due date for the form type.

Sorting for Service Center Recognition/Image Processing System (SCRIPS) Processing

  1. Send to SCRIPS only current year forms being transmitted by current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, listed in Exhibit 3.10.8-6, Number of Returns Per Page Allowed on Service Center Recognition/Imaging Processing System (SCRIPS) Income Returns. Exhibit 3.10.8-6 lists the maximum number of returns allowed on one page for SCRIPS processing.

  2. Send to SCRIPS current year being processed (2020) or first three prior year (2019, 2018, and 2017) Form 1095 series being transmitted by corresponding year Form 1094 series. Below is the maximum number of pages per form type for the series.

    SCRIPS Processed
    Form Number and Title
    Maximum Number of Pages Per Form
    Form 1094-B, Transmittal of Health Coverage Information Returns 1- only
    Form 1095-B, Health Coverage 1 to many
    Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns 1 to many
    Form 1095-C, Employer-Provided Health Insurance Offer and Coverage 1 to many

  3. Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, with a corrected box marked and line 19 marked transmitting no documents.

  4. Do not release to SCRIPS the following forms types processed exclusively on ISRP:

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

      Note:

      Do not forwarded to SCRIPS prior year, transmitting ISRP processed return types or submitted without transmitting documents.

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

    • Form 1098-F, Fines, Penalties, and Other Amounts

    • Form 1098-Q, Qualifying Longevity Annuity Contract Information

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

    • Form 1099-LS, Reportable Life Insurance Sale

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

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

    • Form 1099-SB, Seller's Investment in Life Insurance Contract

    • Form 1099-QA, Distributions from ABLE Accounts

    • Form 5498-ESA, Coverdell ESA Contribution Information

    • Form 5498-QA, ABLE Account Contribution Information

    • Form 5498-SA, HSA, Archer, or Medicare Advantage MSA Information

    • Form 3921, Exercise of an 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

    • Any forms exceeding the maximum page count in the instruction present in Exhibit 3.10.8-6, Number of Returns Per Page Allowed on Service Center Recognition/Imaging Processing System (SCRIPS) Income Returns, referred to in IRM 3.10.8.4.1 (1) above if the entries remain readable.

Scannable Submissions
  1. Official IRS forms or an identical substitute.

    Example:

    Identical substitute means the substitute form is landscape if a Form 1094 series or Form 1095 series and the same size print proportions.

  2. The information is typewritten or machine-printed within the parameters of any given field. Consider scannable returns with data typed or printed and the payer data is stamped or handwritten.

  3. Ensure the correct number or less of information documents on a single page for forms that come as multiples on each page. See Exhibit 3.10.8-6, Number of Returns Per Page Allowed on Service Center Recognition/Imaging Processing System (SCRIPS) Income Returns, for the correct number of returns per page. Send to ISRP or batched for non-transportable SCRIPS processing forms exceeding the maximum number of documents per page.

    Reminder:

    Do not forward unprocessable copies other than copy A to ISRP if they do not meet the instruction in IRM 3.10.8.4 (10).

  4. Ensure the correct number of pages for forms that come as multiple pages per form. See IRM 3.10.8.4.1 (2) for the correct pages per form. Consider unprocessable forms exceeding the maximum number of pages listed above.

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

    1. Burst and strip all returns, if the perforated edge is still attached.

    2. Consider scannable returns with typographical errors not corrected or with handwritten money amounts.

    3. Do not mark the form in any other manner if the payer has crossed the document out rather than using the void box with a #2 pencil.

    4. Remove all staples from stapled returns and do not to tear or rip the information returns.

    5. Consider scannable returns with asterisks or other indicators in the money amounts.

Non-scannable
  1. Forms transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, where the taxpayer entered the data in red ink or the ink is to light for the scanner to read.

  2. Form 1094 series and Form 1095 series returns received in portrait instead of landscape.

  3. Form 1094 series and Form 1095 series returns received without a form identifier (Form ID) in the upper right-hand corner of the pages.

  4. Consult the SCRIPS unit to clarify the scanner read capability.

  5. Refer to IRM 3.41.269.2.4, Unprocessable Conditions, and IRM 3.41.267.4, Unprocessable Unit of Work, for specifics.

Non-transportable
  1. Non-transportable documents severely torn, cut or separated, or for any other reason cannot pass through the scanner.

    1. Release to SCRIPS as hand drop submissions or batched as non-transportable for SCRIPS processing. The option to photocopy a non-transportable for the scanner is allowable at site management discretion.

    2. Campuses may elect to process non-transportable information returns through ISRP if programming is available.

      Reminder:

      Form 1094 series and Form 1095 series returns processed exclusively on SCRIPS.

Detailed Sorting for Service Center Recognition/Image Processing System (SCRIPS) Processing

  1. Send to SCRIPS only current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the SCRIPS processable returns they transmit listed in IRM 3.10.8.4 (7), Detailed Sorting.

  2. Transmittals processed through SCRIPS must remain with the returns they transmit.

  3. Each type of return within each submission must have a Form 1096. If a Form 1096 is not present for each type of return being transmitted do the following so each return type has a transmittal.

    1. Preferred action is to copy the taxpayer provided Form 1096 and use the copy for the other form type.

    2. Only if a copy machine is not available create another Form 1096. Use the original Form 1096 as a source for information. Annotate Prepared by IRS on the signature line of any Form 1096 created by the IRS and assign the correspondence indicator "99" .

    Note:

    This does not apply to the form series 1094 submissions.

  4. Sort returns by the categories of transportable and non-transportable. Sort the submissions by transmittal form type not transmitted form type for release to SCRIPS. See Exhibit 3.10.8-4, Sorts for Service Center Recognition/Imaging Processing System (SCRIPS), for a listing of each SCRIPS sort.

  5. Do the following for Transportable returns not severely torn, cut, or separated.

    1. Burst and strip continuous roll/printed returns.

    2. Carefully remove staples; never staple documents together.

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

  6. A non-transportable return is one severely torn, cut, separated, inappropriate size, or for any other reason cannot go through the scanner.

  7. Photocopy non-transportable Form 1096 making it transportable even if transmitting ISRP processed only returns. The scanner images all ISRP Form 1096 the scanner after ISRP processing for retention.

Form 1094 (Series) Transmitted Forms Detail Sort
  1. Do not process prior year submissions proceeding tax year 2017.

  2. Keep Form 1095 series returns with the Form 1094 series transmittal throughout processing as a single return.

  3. Sort Form 1094-B, Transmittal of Health Coverage Information Returns, by tax year for processing. See Exhibit 3.10.8-4, Sorts for Service Center Recognition/Imaging Processing System (SCRIPS).

  4. Sort Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, submissions by tax year for processing. See Exhibit 3.10.8-4, Sorts for Service Center Recognition/Imaging Processing System (SCRIPS).

  5. Send forward for processing Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, without supporting detail documents when the corrected box and line 19 both checked.

    Caution:

    Ensure both check boxes have marks to avoid unnecessary processing actions.

  6. Do not process Form 1094-B, Transmittal of Health Coverage Information Returns, and the transmitted documents with no name or no EIN, partial EIN, repeating numbers as the EIN or to many numbers for EIN.

Detailed Sorting of Integrated Submission and Remittance Processing (ISRP) processed Form 1096, Annual Summary and Transmittal of U.S. Information Returns and Transmitted Returns

  1. 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.

  2. 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.

  3. Sort current year returns by type of return. Ensure sure the first return for each payer has the correct payer name and TIN.

Form 1096 Transmitted Forms Detail Sort
  1. Send for ISRP processing prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, (current year being processed minus one, two, or three) transmitting actual returns and do not have fraudulent criteria.

  2. Do not dispose of the current year Form 1097-BTC, Form 1098 (series), Form 1099 (series), Form 5498 (series) transmitted by Form 1096.

  3. Batch and number any information return processed through ISRP.

  4. Each page of the current year information return must have the Document Locator Number (DLN) of the Form 1096 (parent return) it is transmitted with.

  5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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. Process for CAWR Reconciliation 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.

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

  3. See IRM 3.10.8.3.3 (1) for processing Form 1096 and Form W-2G filed after March 16.

  4. Sort Form 1096 and Form W-2G as follows:

    1. If the Date Won (box 2) on a current Form W-2G reflects a prior tax year's winnings, pull those documents. Annotate on the back of the related Form 1096 the number of Form W-2G documents pulled from the payer's submission. Forward the pulled Form W-2G to the CAWR Reconciliation Function. Notate prior year to Reconciliation as an explanation for the documents pulled from the payer's submission. See CAWR addresses and stop numbers in Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program.

    2. If the Date Won (box 2) on a current Form W-2G 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 pulled from the payer's submission. Hold those pulled Form W-2G for the correct processing year (creating a "Dummy" Form 1096 in the correct processing year). Forward the Form 1096 and remaining Form W-2G for ISRP processing.

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. Remove all staples, paper clips, etc., from the information returns.

  4. Form 1094 series remain with the Form 1095 series being transmitted throughout processing.

  5. Treat as unprocessable Form 1095 series received with no Form 1094 series (transmittal).

  6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡"≡ ≡" ≡ ≡ ≡"≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Review of Parent Document

  1. Cross check the detail information returns in the submission against the parent transmittal return (Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns) to determine if all necessary information is present and matches the parent return (transmittal).

    Exception:

    Form 1094-B, Transmittal of Health Coverage Information Returns, does not follow this rule. Form 1096 marked Information returns were unprocessable—PMF only do not have supporting detail documents.

  2. For payer/filer taxpayer identification number (TIN):

    1. Only one payer TIN is allowed

    2. If more than one TIN is present, see IRM 3.10.8.5.1 (7) below.

  3. For payer name:

    1. Only one payer name is allowed

    2. If more than one name is present, see IRM 3.10.8.5.1 (8) below.

  4. If all necessary information is not on the return, determine from the parent return, other returns from the same payer or any attached correspondence, if the necessary information is available. Edit the necessary information on the return and forward for processing.

  5. If Form 1094 series is received without attached Form 1095 series documents, consider the form unprocessable.

    Exception:

    Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, with the corrected box checked or a notation of amended, corrected or changed on the face of form continue processing and ensure the corrected box is checked if line 19 is marked.

  6. If only the payer TIN is missing and is not found by cross checking other documents, follow research procedures to obtain a TIN.

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

    2. If the payer TIN is not found for a Form 1096 leave blank and continue normal processing.

    3. If the payer TIN is not found for a Form 1094 series within the actual submission (supporting Form 1095 series returns) consider the submission unprocessable. Do not research IDRS to obtain the TIN. See IRM 3.10.8.5.3, Unprocessable Information Returns, for further information.

  7. If the payer name is missing, and is not found by cross checking supporting detail documents:

    1. Follow research procedures to obtain a name for Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    2. If a payer name is found, edit it to the transmittal document and the first detail document being transmitted.

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

      Exception:

      ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡"≡ ≡ ≡ ≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. If the return is transmitted by Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, consider the submission unprocessable. See IRM 3.10.8.5.3, Unprocessable Information Returns, for further information.

    5. If the return is a Form 1094-B, Transmittal of Health Coverage Information Returns, the filer name is not present correspond using the address. If there is no return address, dispose of the information returns and transmittals.

  8. If multiple payer names and/or payer TINs appear on Form 1094-C or Form 1096, check attachments to determine the payer name and/or TIN to use. If the correct payer name and/or TIN is not determined from the attachments, follow research procedures to determine the correct name for the TIN for Form 1096 only. Underline the first payer name and TIN listed on the first return for the payer and its parent transmittal. Issue Letter 586-C, Information Returns Corrected; Taxpayer Advised, advising of the name and number used.

    Exception:

    This rule does not apply to Form 1094-B, Transmittal of Health Coverage Information Returns, submissions. You cannot determine the TIN, treat the submission as a non-processable.

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

    1. Compare the "Filer's" name on the Form 1096 to the "Recipient's/Lender's" on the Form 1098.

    2. Compare the "Filer's" TIN on the Form 1096 to the "Recipient's/Lender's" on the Form 1098.

  10. Do the following to ensure the information return submissions is processable:

    1. Compare the "Filer's" (payer) name on the transmittal, to the payee (responsible individual) 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 transmittal to the payee (responsible individual) listed on the information return being transmitted. If they match remove the submission from processing and alert the manager.

  11. The information processed on the transmittal is as follows:

    Field Form Requirements
    Name of Payer/ Filer Form 1096
    Form 1094-C
    Verify the payer name being used for the detail form being transmitted and the transmittal is the same.
    Payer/ Filer TIN Form 1096
    Form 1094-C
    Verify the payer TIN used for the detail form transmitted and the transmittal match.
    Address of Payer/ Filer Form 1096
    Form 1094-C
    Verify the payer address is present. If not present, copy it to the transmittal from the forms being transmitted.
    Type of form being transmitted Form 1094-C Can transmit Form 1095-C of the same year or can standalone if both the corrected box and line 19 have marks.
    Type of form being transmitted Form 1094-B Can transmit Form 1095-B of the same year.
    Type of form being transmitted, box 6 Form 1096 Ensure the form type checked on the Form 1096 matches the form type being transmitted.
    Form 1096 submitted transmitting multiple form types Form 1096 If the Form 1096 transmitted more than one type of form, then create another submission so one Form 1096 (transmittal) exists for each type of information return.
    1. Copy the taxpayer provided Form 1096 and use the copy.

    2. Create a Form 1096.

    IRS Created Form 1096 Form 1096 Create only when:
    • correspondence is present from the payer declaring a submission

    • the forms do not meet fraud criteria

    • or, an existing submission with multiple form types and a copy machine is not available to copy the original Form 1096


    Centers may use the standard abbreviation provided in exhibits in Processing Reference Guide when creating Form 1096. Do not use these abbreviations when the name control is affected. Use major city codes as shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), Countries and ZIP Codes.
    Assign correspondence indicator "99" for IRS created Form 1096. Note on each Form 1096 created "Prepared by IRS" on the signature line and enter correspondence code 99.
    Make legible entries.

    Caution:

    DO NOT create a transmittal for returns withg fraudulent criteria or where the payer and payee match.

    Box 3, Total number of documents Form 1096 All Form 1096 transmitting Form W-2G, all prior year Form 1096, and all Form 1096 processed through ISRP must have an entry in box 3.
    See IRM 3.10.8.9.7, Editing Other Items.
    Do not verify box 3 on Form 1096 on SCRIPS processed documents. The SCRIPS system computes the number of documents transmitted and places the count in the field.

Review of Information Returns

  1. Ensure returns follow a valid, processable format, by reviewing each payer's return for necessary information. If any conditions cited below apply to the returns and the information is not found on the returns or from the transmittal, consider the returns temporarily unprocessable. The following conditions make a return temporarily unprocessable and require correspondence

    Exception:

    Considered unprocessable not temporarily unprocessable information returns transmitted by Form 1094 series.

    • Cannot determine the type of return.

    • Titles of the forms differ from the official IRS form of the same number.

    • Cannot determine the kind of amount.

    • Data entered throughout the submission is illegible.

    • Cannot determine the amount of money in an amount field (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).

      Example:

      Documents resembling a postcard, exceed three documents per page, or do not resemble the official form.

    • Cannot determine the tax year of the information present.

      Note:

      Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has only one copy. Current tax year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting prior year information returns require correspondence if the tax year for the information is not clear.

    • Tax year on the return is a year prior to the form’s existence.

    • The information is printed in such a manner the returns you cannot separate them for processing (e.g., a computer listing, multiple information return data on one form, font too small to decipher).

    • Form 1095 series received without a Form 1094 series transmittal "from a filer or employer" . Filers and employers send a group of Form 1095 series returns "not individual returns" .

      Reminder:

      A single responsible individual sending in the 1095 series return they received from their employer or health care provider is not from a filer or employer. Do not send Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., when a single Form 1095 series return is received.

    • Real estate transactions reported on a form or document 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.

    • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, where Part III check box is marked at least one name of a covered individual in Part III.

      Note:

      If there is no response and less than fifty percent of the details have this error send the submission forward for processing. If fifty percent or more have this error destroy the submission and do not send forward for processing.

  2. Pull from processing if the following criteria is present in a submission:

    Signs of Fraud

    If Then
    The following all exist in a submission:
    • payer listed on Form 1096 and the payee listed on the detail documents match

    • payer on the detail documents differ on each document and consist of debtors such as mortgage companies, credit card accounts, gas stations or departments of revenue

    Place the submission in the funny box do not process.

    Note:

    Forwarded to the Frivolous Filer unit Form 1099-OID meeting these criteria. See Exhibit 3.10.8-3 for the address.

    • The Form 1096 and or any forms transmitted have federal tax withheld equal or close to equaling stated income

    • The payer marks out or alters in any manner including adding verbiage, the penalty or perjury statement (i.e., the jurat) in the signature area

      Example:

      Taxpayer adds under the signature line "all liberties reserved."

    • The payer has federal tax withheld totaled on the transmittal meeting or exceeding 33 percent of stated income

    Forward to the Frivolous Filer unit. See Exhibit 3.10.8-3 for the address. Do not process.
    The payer listed is or implies an Internal Revenue Official, Revenue Officer or business operation Place the submission in the funny box. Do not process.
    The submission has a payer ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ on Form 1096, or listed in the payer section of any form transmitted by Form 1096remove the entire submission from the IRP Sort Unit immediately Forward to SE:W:CAS:SP:PPB:MMDC through your local planning and analyst staff. Do not process.
    The submission appears in any way fraudulent for any other reason than listed above Place the submission in the funny box for review to receive clearance to process.
     

Review Information Returns Transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns
  1. If the payment type is identified as belonging on a Form W-2, Wage and Tax Statement, rather than Form 1099 series return (see examples below), correspond and instruct they should file with SSA as Form W-2, Wage and Tax Statement. Reported on Form W-2, Wage and Tax Statement:

    • Christmas bonuses

    • Reimbursements for travel and car expenses (valid entry in Form 1099-NEC, Nonemployee Compensation, box 1,)

    • 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.

  2. If a payer sends in Form 1099 (series) with various kinds of income listed on a single form (i.e., dividends, interest, rents, royalties, and so on), pull the return and contact the payer using Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc.

  3. A return should have a payer name, a payer TIN and/or a mailable address. Do not process unknown payer names.

    Exception:

    Process Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., and Form W-2G, Certain Gambling Winnings if any income item is present.

    1. Perform research on Form 1096 to perfect the payer entity prior to correspondence by using the following IDRS command codes (CC): CC INOLE, CC PMFOL.

    2. Do not perform IDRS research on Form 1094 series returns.

  4. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, boxes 1d, 1g, 8, 9, 10, 11 can have positive or negative amounts.

    If Then
    A positive and negative amount appear in one box Use the positive amount to determine if the form is selected for processing.

  5. Form 1099-DIV, Dividends and Distributions, only, if box 10, Noncash liquidation distribution, with negative and positive amounts and the net total of the amounts is positive, use the positive amount as the basis for selection. If the net total is negative, edit it to zero.

  6. If fifty percent or more of the payee Taxpayer Identification Numbers (TINs) missing or partially masked on Form 1099-QA, Distributions from ABLE Accounts, or Form 5498-QA, ABLE Account Contribution Information, makes the submission unprocessable. Correspond with the payer to request a replacement submission with complete payee TINs.

  7. Returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, selected for processing must have an amount of at least one dollar in at least one specified payment field or place "X" with a #2 pencil in the void box. Exceptions listed below.

    1. Corrected/amended returns.

    2. Form 1099-MISC, Miscellaneous Income, with a mark in box 7.

    3. The FATCA checkbox on the form is marked.

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

    5. Form 1098-T, Tuition Statement

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

    Reminder:

    Minimal dollar amount does not apply to Form 1094 series or Form 1095 series determination (select ability) for processing.

  8. 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, 4, 5, 6 1.00
    Form 1098-C 4c, 6b 1.00
    Form 1098-E 1 1.00
    Form 1098-F 1, 2, 3 1.00
    Form 1098-Q 1a, 3, 4, 5a- 5l 1.00
    Form 1099-A 2, 4 1.00
    Form 1099-B

    Exception:

    Positive or negative amounts on boxes 1d, 1g, 8, 9, 10, 11 allowed.

    1d, 1e, 1g, 4, 8, 9, 10, 11, 13 1.00
    Form 1099-C 2, 3, 7 1.00
    Form 1099-CAP 2 1.00
    Form 1099-DIV

    Exception:

    Positive or negative amount on box 2a allowed.

    1a, 1b, 2a, 2b, 2c, 2d, 3, 4, 5, 6, 7, 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, 10, 11, 13 1.00
    Form 1099-K 1a, 1b, 4, 5a- 5l 1.00
    Form 1099-LS 1 1.00
    Form 1099-LTC 1, 2 1.00
    Form 1099-MISC

    Exception:

    Process all Form 1099-MISC with box 7 checked, regardless of money amounts in other boxes.

    1, 2, 3, 4, 5, 6, 8, 9, 10, 12, 13, 14 1.00
    Form 1099-NEC 1, 4 1.00
    Form 1099-OID

    Exception:

    Positive or negative amount on box 10 allowed.

    1, 2, 3, 4, 5, 6, 8, 9, 10, 11 1.00
    Form 1099-PATR 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 1.00
    Form 1099-Q 1, 2, 3 1.00
    Form 1099-QA 1, 2, 3 1.00
    Form 1099-R

    Exception:

    Form 1099-R with cents only in box 4 and no other money amounts.

    1, 2a, 3, 4, 6, 10 1.00
    Form 1099-S 2, 6 1.00
    Form 1099-SA 1, 2, 4 1.00
    Form 1099-SB 1, 2 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-QA 1, 2, 3, 4 1.00
    Form 5498-SA 1, 2, 3, 4, 5 1.00
    Form W-2G 1, 4, 7 1.00

  9. If zero returns remain after applying the money amount checks above and the exceptions listed in IRM 3.10.8.5.2.1 (7), then destroy the submission and add the volume to the classified waste totals.

Review Information Returns Transmitted by Form 1094 Series
  1. Make the following checks to determine if the submission is processable:

    Form Number Required Data Perfect Missing or Incomplete Required Data from: Comment
    Form 1094-B Name and
    Address and
    Nine-digit "legible" EIN
    1. Not able to perfect from Form 1095-B

    2. Filer contact telephone number

    3. Filer contact written correspond

    Complete name and address required for written correspondence
    Form 1094-C Name and
    Address and
    Nine-digit "legible" EIN
    1. Form 1095-C, Part I, Applicable Large Employer Member

    2. Filer contact telephone number

    3. Filer contact written correspond

    Complete name and address required for written correspondence
    Form 1095-B Significant entries in Part I    
    Form 1095-C Significant entries in Part I    
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡"≡ ≡ ≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. . Correspond for a replacement processable submission when social security numbers (SSN) show only the last four digits of the SSNs. Retain only the Form 1094 series return in response retention and do not retain the unprocessable Form 1095 series returns. If fifty percent or more of the payee Taxpayer Identification Numbers (TINs) missing or partially masked on Form 1099-QA, Distributions from ABLE Accounts, or Form 5498-QA, ABLE Account Contribution Information, makes the submission unprocessable. Correspond with the payer to request a replacement submission with complete payee TINs.

Unprocessable Information Returns - Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc.

  1. Keep a separate count of the number of Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., issued and the total number of information returns, by program, considered temporarily unprocessable.

    Example:

    ACA IRP processed under program 44320 and IRP processed under program 44340 have separate counts.

  2. Identify unprocessable information returns within "10 days of receipt" .

    Note:

    Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., is used to correspond with filers of unprocessable IRP forms.

  3. Issue the Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., with the correct paragraph to filers of unprocessable information returns to request a processable submission. Check the Power of Attorney (POA)/Taxpayer Information Authorization (TIA) file using command code (CC) CFINQ before corresponding. Enclose with each letter:

    • A copy of the letter

    • Photocopies of the returns if describing the issue alone is not adequate or clear

    If Then
    Less than 10 returns submitted. Photocopy each return
    More than 10 returns submitted Photocopy 3 returns best representing the problem

    Note:

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

  4. Do whatever you must to reduce the need to send photocopies of the unprocessable returns. If the existing language in the Letter 1865-C or fill-in language can completely explain the unprocessable condition do not send photocopies of the unprocessable returns. See suggested phrases in Exhibit 3.10.8-7, Correspondence Fill-In Paragraph Options.

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

    Exception:

    If a site closure happens during the 45-day period then extended the period until the mail of the due date is opened in extracting.

  6. Do not keep in suspense each original unprocessable return in the Form 1095 series due to space limitations. Record as classified waste records not retained.

    1. Maintain only the Form 1094 series return present or one of the unprocessable Form 1095 series returns if no transmittal is present.

    2. Notate on the individual return kept in suspense the total number of unprocessable returns recorded as classified waste.

    Exception:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ See instruction IRM 3.10.8.5.2 (1)b) on what action to take after a filer reply or no reply.

  7. Dispose of the original unprocessable returns and process the new processable ones. Also, purge the letter from the suspense file for disposal.

  8. If you cannot determine the name and address for a filer of unprocessable real estate transactions destroy the entire submission.

  9. If no reply is received, route the entire case file and the retention copy of the correspondence to the IRP Penalty Unit for manual penalty determination. See Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, for disposition address in Philadelphia and mail stop number.

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

    1. If a yellow sticker with 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 is present, then research through Integrated Data Retrieval System (IDRS) to determine if a more current address is 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.

  11. If the re-submission has both unprocessable and processable information returns, separate the unprocessable returns from the processable returns.

    1. Route the processable returns for Income IRP processing. Adjust the number in box 3, Total number of forms, for processing Form 1096, Annual Summary and Transmittal of U.S. Information Returns. See IRM 3.10.8.9.7, Editing Other Items.

    2. Destroy 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, HSA, Archer, or Medicare Advantage MSA Information.

Processable Returns Requiring Correspondence

  1. Use only correspondence code "99" until further notice.

  2. Check the Power of Attorney (POA) /Tax Information Authorization (TIA) file before corresponding if an in care of name is present on Form 1096 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. Code indicator "99" on every Form 1096 created by IRS. Code "99" denotes IRS prepared.

Corresponding for Only Federal Tax Withheld

  1. A report identifying payers with federal income tax withheld (FTWH) only listed on the return is created by SCRIPS. If information returns report only federal income tax withheld then considered them unprocessable.

  2. Issue Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., to payer(s) identified on the FTWH report. Use as the unprocessable criteria, federal income tax withheld is the only money amount reported on the information return(s).

  3. Each page of the report reflects one payer's filing of information returns reporting only federal income tax withheld. Photocopy and consolidate all pages reporting one payer's returns. Use the photocopy as an enclosure to the Letter 1865-C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc.

  4. 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. Look 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.

  5. If the filer resubmits incorrectly or does not 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 retention 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 manual penalty consideration. See Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, for the address and mail stop.

Preparing Documents for Service Center Recognition/Image Processing System (SCRIPS)

  1. The first document in a batch is Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form 1094-B, Transmittal of Health Coverage Information Returns or Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns. It is used as the payer identifier for all SCRIPS returns.

    Reminder:

    Exhibit 3.10.8-4, Sorts for Service Center Recognition/Imaging Processing System (SCRIPS), lists SCRIPS processable sorts.

  2. Do not staple the information returns. Remove items not related to processing of the documents.

    • Staples

    • Paper clips

  3. Do not verify the entry in "Total number of documents" on the transmittals. The SCRIPS software generates this entry.

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

  5. Send for ISRP processing all prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting prior year information returns.

  6. SCRIPS processed Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form 1094-B, Transmittal of Health Coverage Information Returns, or Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, remain with the information returns they transmit.

  7. Communicate with the SCRIPS unit to determine additional ways to improve sorted and batched returns.

  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.

Non-Transportable Information Returns Preparation for Service Center Recognition/Image Processing System (SCRIPS) Original Entry Paper

  1. Submissions severely cut, torn, or mutilated cannot physically pass through the scanner. Follow this exception process for SCRIPS processing to reduces documents sent through ISRP.

    1. Secure blank forms of the same form type and quantity to replace the non-transportable forms.

    2. Reference the corresponding non-transportable forms for key-entry of the information.

    3. Consider photocopies as processable documents.

  2. Create blocks of 99 information returns.

    Exception:

    Create blocks of 98 for Form 1099-R.

    1. Count each page of documents as the number of documents on the official IRS form. See Exhibit 3.10.8-6, Number of Returns Per Page Allowed on Service Center Recognition/Imaging Processing System (SCRIPS) Income Returns, for the number to use.

    2. Distinguish a single form from a single page. A single page has as many as three forms.

    3. If an information return is cut from a page of two or three forms count the return as specified below:

      If Then
      The single form is the only return in the submission, or it is the last return remaining in the submission. Count the return as two or three using Exhibit 3.10.8-6.
      The single form is one of only two returns in a submission, or the remaining two in the submission. Count the two returns as three for maximum page count as three returns and two for maximum amount page count as two returns.
      The submission is made up of many single forms. Count each return as one.

    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 have 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 or as a maximum of two returns per page in using Exhibit 3.10.8-6, "Number of Returns Per Page Allowed on Service Center Recognition/Imaging Processing System (SCRIPS) Income Returns" .

    2. Use blank forms corresponding to the form type.

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

  4. Do not split a filers submission unless necessary.

    1. If a split of the payer's submission is needed, have the blocks follow in sequence.

    2. A submission of different form types requires a split.

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

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

  7. Less than 30 blocks in a batch is allowed.

  8. It is not recommended to assign batch and block numbers to SCRIPS releases.

Paper Income Information Return Conversion

  1. Sort as non-scannable return form types sent to ISRP. All procedures relating to batching, blocking and editing in this instruction refer to non-scannable ISRP processed forms.

  2. Sort and batch information returns according to criteria in IRM 3.10.73.17, Information Returns Processing.

  3. Batch returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, by:

    • Account Type Code

    • Type of Return

    • Tax Year

    • Single or Multiple Return Payers

    Exception:

    Batch Form 1096, Annual Summary and Transmittal of U.S. Information Returns transmitting Form 1099-QA, Distributions from ABLE Accounts or Form 5498-QA, ABLE Account Contribution Information as regular blocks for processing. These blocks do not have the items listed above.

  4. Make sure the block document locator number (DLN) on the returns agree with the DLN on Form 1332, Block and Selection Record if numbered. If unnumbered, return the documents to the numbering function.

  5. Attach payer identifiers to each return when any part of the payer entity has changes for multiple return payer batches on form types transmitted by Form 1096. Do not attach payer identifiers on 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.

  6. Place information returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in batches and send 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 defined as follows:

    Position Position Code Description
    Position 1 Account Type Code:
    • "B"

    • "C"

    • "P"

    Note:

    The Account Type Code is on the batch, on the outside of the batch holder. This code determines the type of editing 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 3.10.8-2, Income Information Return Document Codes, for return codes.

    Note:

    Numbering enters the payer count within the block in positions 3, 4, and 5 in the Trans Code box. See IRM 3.10.73.17.4 (7) for this instruction. Failure to make the subsequent changes during the final numbering process results in Block Out of Balance errors.

Account Type Code

  1. Each block of information returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has an Account Type Code of "P" .

  2. Assign Form 1096, Annual Summary and Transmittal of U.S. Information Returns, different Account Type Codes than other information returns. Use Account Type Codes "B" and "C" for Form 1096, Annual Summary and Transmittal of U.S. Information Returns. See Exhibit 3.10.8-9, Account Type Codes. Place codes on the Form 1332, Block and Selection Record.

    1. "B" - The payer furnished the Form 1096. Use this code even if the Receipt and Control Function had to perfect the entity.

    2. "C" - The payer did not furnish the Form 1096 and/or a Form 1096 is created by the Receipt and Control function because the "Payer provided transmittal" unreadable, or otherwise usable.

Coding and Editing Income 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, and Form 1094 series in pencil only.

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. Include estate names 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 may include 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" .

Payer Name, Taxpayer Identification Number (TIN) on Payee Returns

  1. Attach payer identifiers to the first return of each batch and to each subsequent return reflecting a change in payer. 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 is attached to each return).

    1. If a payer TIN is not present on information returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, research. If still unable to locate after researching Corporate Files On-line (CFOL) command codes, contact the payer to determine the correct TIN. If you cannot determine from other returns for the payer, edit "9-" . ISRP converts this to 999999999.

      Exception:

      Do not research a mismatched or missing payer TIN or name on Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting Form 1099-QA, Distributions from ABLE Accounts, or Form 5498-QA, ABLE Account Contribution Information, is unprocessable. Correspond with the payer requesting a replacement submission with the payer TIN.

    2. Destroy the returns if the payer name and a full address is not present and is not found on other returns.

      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 foreign payer addresses present on payee documents where "NO TIN" or "No-TIN" is designated in the payer TIN area.

  3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and related payee forms must have the same payer name and TIN. If different or blank, use the information from the payee form to make them the same payer.

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 or research. Continue processing as normal.

    Exception:

    See IRM 3.10.8.5.2.1 (6) for unprocessable instruction for missing or partially masked payee TINs on Form 1099-QA, Distributions from ABLE Accounts, or Form 5498-QA, ABLE Account Contribution Information.

Payee Address

  1. Street address:

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

    2. Arrow to address area an apartment number or other location designations (e.g., building, room, N.W., etc.) present but not in 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 or town, state or province, country, Zone Improvement Plan (ZIP) or foreign postal 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 you can determine a missing state from city or ZIP code, edit state abbreviation to "city or town, state or province, country, ZIP or foreign postal code" line.

    Exception:

    State is not present when using APO, DPO, and FPO addresses.

  5. If a ZIP code is present, edit a state. If you cannot determine the missing state from the city or ZIP code, edit city only.

    Exception:

    State is not present when using APO, DPO, and FPO addresses.

  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 3.10.8-11, Zone Improvement Plan (ZIP) Code, State and State Abbreviation Exceptions, or Exhibit 3.10.8-12, Military Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO) State Codes and ZIP Codes.

    2. It is six, seven, eight, or more than nine numbers, circle the extraneous numbers.

      Example:

      If the ZIP code is 0012321, then circle the two preceding zeros.

  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 3.10.8-10, State Code/Zone Improvement Plan (ZIP) Code Perfection Chart (State Order).

  8. If the ZIP code is missing and the state is present, edit the five-digit ZIP code for the state shown in, Exhibit 3.10.8-10, State Code/Zone Improvement Plan (ZIP) Code Perfection Chart (State Order).

  9. Special edit of foreign payee addresses:

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

    2. Allow a maximum of 40 characters for the remainder of the total address "city or town, state or province, country, ZIP or foreign postal code" . 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.

Payment Amount Fields

  1. Ensure the amount field boxes (lines) match with the official IRS return issued. Ensure the money amounts of each box (line) appear clear understood (i.e., whether it is dollars and cents, or whole dollars if the decimal is missing or misplaced).

    1. Edit the amount box (line) numbers to make them consistent if inconsistent with the preprinted amount box (line) numbers. If unable to do so consider the returns unprocessable and correspond with the payer.

    2. If the payer re-titles payment amount fields or otherwise indicates a difference from 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:

      Change to the correct return Form 1099-MISC, Miscellaneous Income, with payments identified as other than what would normally is reported on a MISC return (e.g., Dividends, Wages, etc.), BUT NOT A RE-TITLED 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 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 identifying the 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. Cross out the net amount if there is both a gross and net amount.

  2. Edit payment amount fields consistent with the official returns listed in instructions for each type of return below.

  3. A processable Form 1096 has two amount fields.

    1. Money amount from box 4, "Federal income tax withheld" , equal to or greater than zero.

    2. Money amount from box 5, "Total amount reported with this Form 1096" , equal to or greater than zero.

  4. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, (box 1d, box 8, box 9, box 10 and box 11 only) may have negative money amounts.

    1. Form 1099-DIV, Dividends and Distributions, only if box 9, Non-cash, has 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 zero.

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

Edited Payment Amount Fields and Date 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. Circle-out the amount if a field on any form requires a money amount and has only cents.

  3. If two money amounts in one box

    1. Add the money amounts.

    2. Circle-out the two money amounts present.

    3. Enter the total of the two money amounts in the box.

  4. Edit the amounts field specified below for each form.

  5. 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

  6. Form 1098, Mortgage Interest Statement: Edit amount fields in boxes 1, 2, 3, 4, 5, 6 and 11.

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

    • Box 2, Outstanding mortgage

    • Box 3, Mortgage origination date

    • Box 4, Refund of overpaid interest

    • Box 5, Mortgage insurance premium

    • Box 6, Points paid on purchase of principal residence

    • Box 11, Mortgage acquisition date

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

    • Box 1, Date of contribution, YY must equal the current tax year being processed. Follow taxpayer intent. If the taxpayer’s intent is not determined to equal the current tax year being processed correspond.

    • Box 4b, Date of sale, YY must equal the current tax year being processed. Circle-out any date with the current processing year if box 1 has the current year being processed. Follow taxpayer intent. If the taxpayer’s intent is not determined to equal the current tax year being processed correspond.

    • Box 4c, Gross proceeds from sale

    • Box 6b, Value of good provided

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

    • Box 1, Student loan interest received...

  9. Form 1098-F, Fines, Penalties, and Other Amounts: Edit boxes 1, 2, 3, and 4.

    • Box 1, Total amount required to be paid

    • Box 2, Restitution/remediation amount.

    • Box 3, Compliance amount

    • Box 4, Date of order/agreement

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

    • Box 1, Payments received for...

    • Box 4, Adjustments made for...

    • Box 5, Scholarships or grants

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

    • Box 10, Ins. contract reimb./refund

  11. Form 1098-Q, Qualifying Longevity Annuity Contract Information: Edit boxes 1, 3, 4, and 5a through 5l.

    • Box 1a, Annuity amount on start date

    • Box 3, Total premiums

    • Box 4, FMV of QLAC

    • 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

  12. 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

  13. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions: Edit boxes 1b, 1c, 1d, 1e, 1g, 4, 8, 9, 10, 11, and 13.

    • Box 1b, Date acquired — this date is numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payer’s entry and entering the correct date format. "YY" must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayer’s intent is not determined to equal "TY" currently being processed follow previous instruction for prior year or future year returns.

    • Box 1c, Date sold or disposed
      — this date is numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payer’s entry and entering in the correct date format.

      Note:

      Blank is allowed for this field.

    • Box 1d, Proceeds (bracket negative amounts)

    • Box 1e, Cost or other basis

    • Box 1g, Wash sale and loss disallowed

    • Box 4, Federal income tax withheld

    • Box 8, Profit or (loss) realized in yyty (current tax year being processed) on closed contracts (Bracket negative amounts)

    • Box 9, Unrealized profit or (loss) on open contracts - 12/31/yyty-1 (Bracket negative amounts)

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

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

    • Box 13, Bartering

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

    • Box 1, Date of identifiable event
      —The date is numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payer's entry and entering in the correct date format. YY must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayer’s intent is not determined to equal "TY" follow previous instruction for prior year or future year returns.

    • Box 2, Amount of debt discharged

    • Box 3, Interest if included in box 2

    • Box 7, Fair market value of property

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

    • Box 1, Date of sale or exchange
      — The date is numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payer’s entry and entering the correct date format. "YY" must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayer’s intent is not determined to equal "TY" follow previous instruction for prior year or future year returns.

    • Box 2, Aggregate amount rec'd*

  16. Form 1099-DIV, Dividends and Distributions: Edit boxes 1a, 1b, 2a, 2b, 2c, 2d, 3, 4, 5, 6, 7, 9, 10, 11 and 12.

    • Box 1a, Total ordinary dividends

    • Box 1b, Qualified dividends

    • Box 2a, Total capital gain distr.

    • Box 2b, Unrecap. Sec. 1250 gain

    • Box 2c Section 1202 gain

    • Box 2d, Collectible (28%) gain

    • Box 3, Nondividend distributions

    • Box 4, Federal income tax withheld

    • Box 5, Section 199A dividends

    • Box 6, Investment expenses

    • Box 7, Foreign tax paid

    • Box 9, Cash liquidation distributions

    • Box 10, Noncash liquidation distributions

    • Box 11, Exempt-interest dividends

    • Box 12, Specified private activity dividends

  17. 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, credits, or offsets
      — The entry is numerics. The "X" belongs in box 8. If an "X" appears after the numerics in box 2 circle it out and move the "X" to box 8. Circle-out any other non-numeric characters, edit to an "X" in box 8.

    • 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
      — Positive money amounts of $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

  18. Form 1099-INT, Interest Income: Edit boxes 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, and 12.

    • Box 1, Interest income. Edit in box 3, any amounts located in box 1 identified as savings bond interest, but not entered in box 3, as box 3. Circle-out the amount located in box 1.

      Note:

      Interest paid on Series E Savings bonds is reported in box 3. Returns come in year-round because regulations allow reporting when interest is paid.

    • 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

    • Box 10, Market discount

    • Box 11, Bond premium

    • Box 12, Bond premium on Treasury Obligations

  19. Form 1099-K, Payment Card and Third Party Network Transactions: Edit 1a, 1b, 4, and 5a through 5l.

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

    • Box 1b, Card Not Present 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

  20. Form 1099-LS, Reportable Life Insurance Sale: Edit box 1.

    • Box 1, Amount paid to payment recipient

  21. 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 is equal to yyty or yyty minus one.

  22. Form 1099-MISC, Miscellaneous Income: Edit boxes 1 through 11, and boxes 13, and 14.

    • 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, Direct sales indicator

      Note:

      Send for processing forms with an entry only on box 7.

    • Box 8, Substitute payments...

    • Box 9, Crop insurance proceeds

    • Box 10, Gross proceeds paid to an attorney

    • Box 11, Section 409A deferrals

    • Box 13, Excess golden parachute payments

    • Box 14, Nonqualified deferred compensation

  23. Form 1099-NEC, Nonemployee Compensation: Edit boxes 1, and 4.

    • Box 1, Nonemployee Compensation

    • Box 4, Federal income tax withheld

  24. Form 1099-OID, Original Issue Discount: Edit boxes 1, 2, 3, 4, 5, 6, 8, 9, 10, and 11.

    • 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, Market discount

    • Box 6, Acquisition premium

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

    • Box 9, Investment expenses

    • Box 10, Bond premium

    • Box 11, Tax-exempt OID

  25. Form 1099-PATR, Taxable Distributions Received From Cooperatives: Edit boxes 1 through 12.

    • Box 1, Patronage dividends

    • Box 2, Nonpatronage distributions

    • Box 3, Per-unit retain allocations

    • Box 4, Federal income tax withheld

    • Box 5, Redeemed nonqualified notices

    • Box 6, Section 1099A9g) deduction

    • Box 7, Qual. payments (Sec. 1099(A)(b)(7))

    • Box 8, Section 199A(a) qual. items

    • Box 9, Section 199A(a) SSTB items

    • Box 10, Investment credit

    • Box 11, Work opportunity credit

    • Box 12, Other credits and deductions

  26. 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

  27. Form 1099-QA, Distributions from ABLE Accounts: Edit boxes 1, 2, and 3.

    • Box 1, Gross distribution

    • Box 2, Earnings

    • Box 3, Basis

  28. 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 3.10.8.8.7 for allowable entries and entry combinations.

    • Box 10, Amount allocable to IRR within 5 years

    • Box 13, Date of payment

    Note:

    Pull the return and dispose of the document if all the money fields on the return equal zero or blank or the only amount is in box 5 and/or box 8, and it is an original return, per Document 12990, Records and Information Management Records Control Schedules. Ensure the document count on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns is adjusted.

  29. Form 1099-S, Proceeds From Real Estate Transaction: Edit boxes 1, 2, and 6.

    • Box 1, Date of closing, this date is numeric "MMDDYY" format.

      Caution:

      "YY" must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayer’s intent is not determined to equal "TY" follow previous instruction for prior year or future year returns.

    • Box 2, Gross proceeds

    • Box 6, Buyer’s part of real estate tax

  30. 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

  31. Form 1099-SB, Seller's Investment in Life Insurance Contract: Edit boxes 1 and 2.

    • Box 1, Seller’s investment in contract

    • Box 2, Surrender amount

  32. Form 5498, IRA Contribution Information: Edit boxes 1, 2, 3, 4, 5, 6, 8, 9, 10, 12b, 13a, 14a, and 15a.

    • Box 1, IRA contributions

    • Box 2, Rollover contribution

    • Box 3, Roth IRA conversion amount

    • 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 13a, Postponed Contribution

    • Box 14a, Repayments

    • Box 15a, FMV of certain specified assets

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

    • Box 1, Coverdell ESA contributions

    • Box 2, Rollover contributions

  34. Form 5498-QA, ABLE Account Contribution Information: Edit boxes 1, 2, 3, and 4.

    • Box 1, ABLE contributions

    • Box 2, Rollover contributions

    • Box 3, Cumulative contributions

    • Box 4, Fair market value

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

    • Box 1, Employee or self-employed person’s Archer MSA contributions made in yyty and yypy for yyty

    • Box 2, Total contributions made in "yyty"

    • Box 3, Total HSA or Archer HSA contributions made in yyty for yyty

    • Box 4, Rollover contributions

    • Box 5, Fair market value of HSA, Archer MSA, or MA MSA

  36. 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 is in numeric "MMDDYY" format.

      Caution:

      "YY" must equal "TY" currently being processed. Follow taxpayer intent. If the intent is not determined to equal "TY" follow previous instruction for prior year or future year returns.

    • Box 4, Federal income tax withheld

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

  37. Form 3921, Exercise of an 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. Void the return unless it is marked corrected if no money amounts remain after editing.

    • Box 1, Date option granted

    • Box 2, Date option exercised

    • Box 3, Exercise price per share
      — if the amount present is below one dollar, circle the amount

    • Box 4, FMV/Share on Exercise Date
      — if the amount present is below one dollar, circle the amount

    • Box 5, Numbers of shares transferred
      — the number present is 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.

  38. 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. Void the return unless it is marked corrected if no money amounts remain after editing.

    • Box 1, Date option granted

    • Box 2, Date option exercised

    • Box 3, Fair market value per share on grant date
      — if the amount present is below one dollar, circle the amount

    • Box 4, Fair market value per share on exercise date
      — if the amount present is below one dollar, circle the amount

    • Box 5, Exercise price paid per share
      — if the amount present is below one dollar, circle the amount

    • Box 6, No. of shares transferred
      — the number present is a whole number. If only a fraction is present circle-out and do not round up. If a whole number and a fraction is present circle-out the fraction

    • Box 7, Date legal title transferred
      — the number present is 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, Exercise price per share determined as if the option was exercised on the date shown in box 1.
      — if the amount present is below one dollar, circle the amount.

Pension Indicator/Individual Retirement Account (IRA) Indicator

  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. Check for valid indicators in box 7: 1 through 9, A, B, C, D, E, F, G, H, J, K, L, M, N, P, Q, R, S, T, U, W, or blank. See valid combinations below.

    Distr.
    Code
    Type of Distribution Valid with Distr. Code
    1 Early distribution, no known exception. 8, B, D, K, L, M, or P
    2 Early distribution; exception applies. 8, B, D, K, L, M, or P
    3 Disability. D
    4 Death. 8, A, B, D, G, H, K, L, M, or P
    5 Prohibited transaction. None
    6 Section 1035 exchange. W
    7 Normal distribution. A, B, D, K, L, or M
    8 Excess contributions plus earnings/excess deferrals. 1, 2, 4, B, J, or K
    9 Cost of current life insurance protection. None
    A May be eligible for 10-year tax option. 4 or 7
    B Designated Roth account distribution. 1, 2, 4, 7, 8, G, L, M, P, or U
    C Reportable death benefits under section 6050Y. D
    D Annuity payments from nonqualifying annuities and distributions from life insurance contracts. 1, 2, 3, 4, 7, or C
    E Distributions under Employee Plans Compliance Resolution System (EPCRS). None
    F Charitable gift annuity. None
    G Direct rollover and direct payment. 4, B, or K
    H Direct rollover of a designated Roth account distribution to a Roth IRA. 4
    J Early distribution from a Roth IRA. 8 or P
    K Distributions of IRA assets not having a readily available FMV. 1, 2, 4, 7, 8, or G
    L Loans treated as deemed distributions. 1, 2, 4, 7, or B
    M Qualified plan loan offset. 1, 2, 4, 7, or B
    N Recharacterized IRA contribution. None
    P Excess contributions plus earnings/excess deferrals taxable. 1, 2, 4, B, or J
    Q Qualified distribution from a Roth IRA. None
    R Recharacterized IRA contribution. None
    S Early distribution from a SIMPLE IRA in first 2 years, no known exception. None
    T Roth IRA distribution, exception applies.

    Note:

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

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

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

Payer's Account Number for Payee

  1. The payee account number should appear in the account number (optional) box. If you can identify the account number and it is not in the account number box edit the number to the account number box.

  2. The number is 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 the number belonging to the payee. If unable to do so, use the first account number on the return.

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

  1. Receive current tax year being processed and three years back.

  2. Sort Form 1096 by "IRS prepared" /"Filer prepared" and tax year.

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

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

  1. Send to ISRP all prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Code these as current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Also code the two numeric digits in the bottom right-hand corner of the Form 1096 indicating the tax year filed.

  2. Only one type of return is transmitted on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If more than one type of return is transmitted by the payer, create a 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.

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 is not found on the returns being transmitted or by research.

    Exception:

    Do not research the payer TIN for submissions transmitting Form 1099-QA, Distributions from ABLE Accounts or Form 5498-QA, ABLE Account Contribution Information.

  3. Since Form 1096, Annual Summary and Transmittal of U.S. Information Returns, uses the payer name and TIN assigned to the supporting detail documents being transmitted by the payer, if a payer TIN has is edited by Receipt and Control, it is used.

  4. 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 identifying the type of returns transmitted. See IRM 3.10.8.9.4, Editing Type of Return Transmitted.

  5. This editing is used for posting to the Payer Master File. Edit per the overall payer entity appearance.

  6. If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has both an EIN and an SSN choose the EIN, unless specific notation from IDRS research indicates to use the SSN.

Editing Payer Addresses

  1. Edit the payer's address per the normal payee address editing rules. See IRM 3.10.8.8.4, Payee Address.

  2. The requirement for mailable addresses for No TIN record does not apply. See IRM 3.10.8.8.2 (2), Payer Name, Taxpayer Identification Number (TIN) on Payee Returns.

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 is transmitted; if more than one type of return is present, create another 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 supporting detail document transmitted.

    2. Make sure the type of return transmitted is clearly identifiable by ISRP.

    3. The type of entity (or TIN type) from IRM 3.10.8.9.2, Editing Payer Taxpayer Identification Number (TIN) and Type of Entity On Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must appear immediately before the numeric return code.

Return Codes on Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  1. Make sure return codes for information returns pre-printed on the Form 1096 and marked equal the document codes transmitted.

  2. Form 1096 transmits only one type of return.

  3. Use the type of return being transmitted if two or more return codes have marks. See Exhibit 3.10.8-2, Income Information Return Codes.

Editing Type of Payment Transmitted

  1. The simplification of the Form 1099 (series) reduced the number of different returns and 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, transmitting the following form types:

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-G, Certain Government Payments

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

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

    • Form 1099-MISC, Miscellaneous Income

    • Form 1099-NEC, Nonemployee Compensation

    • Form 1099-QA, Distributions from ABLE Accounts

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

    • Form 5498-QA, ABLE Account Contribution Information

    • 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. See the table below for the payment codes for each of the form types. If the return transmits only "Amended" or "Corrected" documents with all zero (0) money amounts, edit a payment code of "Z" .

    Form Type Box Number Corresponding Payment Code
    Form 1099-DIV 1a A
    Form 1099-DIV 1b B
    Form 1099-DIV 2a C
    Form 1099-DIV 2b D
    Form 1099-DIV 2c E
    Form 1099-DIV 2d F
    Form 1099-DIV 3 G
    Form 1099-DIV 4 H
    Form 1099-DIV 5 J
    Form 1099-DIV 6 K
    Form 1099-DIV 8 M
    Form 1099-DIV 9 N
    Form 1099-DIV 10 O
    Form 1099-DIV 11 P
    Form 1099-G 1 A
    Form 1099-G 2 B
    Form 1099-G 4 D
    Form 1099-G 5 E
    Form 1099-G 6 F
    Form 1099-G 7 G
    Form 1099-G 9 I
    Form 1099-K 1a C
    Form 1099-K 1b D
    Form 1099-K 4 G
    Form 1099-K 5a H
    Form 1099-K 5b I
    Form 1099-K 5c J
    Form 1099-K 5d K
    Form 1099-K 5e L
    Form 1099-K 5f M
    Form 1099-K 5g N
    Form 1099-K 5h O
    Form 1099-K 5i P
    Form 1099-K 5j Q
    Form 1099-K 5k R
    Form 1099-K 5l S
    Form 1099-LTC 1 A
    Form 1099-LTC 2 B
    Form 1099-MISC 1 A
    Form 1099-MISC 2 B
    Form 1099-MISC 3 C
    Form 1099-MISC 4 D
    Form 1099-MISC 5 E
    Form 1099-MISC 6 F
    Form 1099-MISC 7 G
    Form 1099-MISC 8 H
    Form 1099-MISC 10 J
    Form 1099-MISC 13 M
    Form 1099-MISC 14 N
    Form 1099-MISC 15a O
    Form 1099-MISC 15b P
    Form 1099-NEC 1 A
    Form 1099-NEC 4 D
    Form 1099-QA 1 A
    Form 1099-QA 2 B
    Form 1099-QA 3 C
    Form 1099-SA 1 A
    Form 1099-SA 2 B
    Form 1099-SA 4 D
    Form 5498-QA 1 A
    Form 5498-QA 2 B
    Form 5498-QA 3 C
    Form 5498-QA 4 D
    Form 5498-SA 1 A
    Form 5498-SA 2 B
    Form 5498-SA 3 C
    Form 5498-SA 4 D
    Form 5498-SA 5 E

  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 have a "≡" ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ 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. Edit an "A" as the payment code on Form 1096, Annual Summary and Transmittal of U.S. Information Returns transmitting Form 1099-DIV, Form 1099-G, Form 1099-MISC,or, Form 1099-NEC with no money amounts (or all zero amounts) if:

    • Not transmitting amended documents,

    • Or is no longer associated with the documents they transmit.

Editing Other Items

  1. In addition to the items edited above, review each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, 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 enters 100 payee documents but attached only 3 sheets then count the documents, edit the total on the transmittal and circle-out the 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 does not 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) transmitting Form W-2G, Certain Gambling Winnings, 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 the amount in box 4 of Form 1096.

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

  3. Determine the number of returns subject to penalty on ISRP processed Form 1096 within a submission using the criteria listed below. Do not count voided information returns.

    If Then
    Form 1098, Mortgage Interest Statement Boxes 1, 4, 5, and 6 combined total $600 or greater.
    Form 1098-Q, Qualifying Longevity Annuity Contract Information Box 1a, 3, 4 or 5a through 5l total $1 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 $1000 or greater.
    Form 1099-DIV, Dividends and Distributions Box 1a, 2a, or 11 is $10 or greater.
    or
    Box 9 or 10 is $600 or greater.
    Form 1099-INT, Interest Income Box 1, 3, 8, 9, 10 or 11 is $10 or greater.
    Form 1099-K, Payment Card and Third Party Network Transactions Third party network check box is not marked "AND" box 1a or box 1b is greater than $1.
    or
    Third party network check box is marked "AND" box 3 is greater than 200 "AND" 1a or box 1b is greater than $20,000 dollars.
    Form 1099-LS, Reportable Life Insurance Sale Box 1 amount is $1 or greater.
    Form 1099-MISC, Miscellaneous Income Box 1, 3, 5, 6, 9, 10, 12 or 13 is $600 or greater.
    or
    Box 2 or 8 is $10 or greater.
    or
    Box 14 is $1 or greater.
    Form 1099-NEC, Nonemployee compensation Box 1 is $600 or greater.
    Form 1099-OID, Original Issue Discount Box 1, or 5 is $10 or greater.
    Form 1099-PATR, Taxable Distributions Received From Cooperatives Box 1, 2, 3 or 5 is $10 or greater.
    or
    Box 4 amount is $1 or greater.
    Form 1099-QA, Distributions from ABLE Accounts Box 1, 2 or 3 is $1 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 1099-SB, Seller's Investment in Life Insurance Contract Box 1 or 2 is $1 or greater.
    Form 5498-QA, ABLE Account Contribution Information Box 1, 2 or 3 is $1 or greater.
    Form W-2G, Certain Gambling Winnings Boxes 1 and 7 combined total $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 is 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.

    1. Edit the number of original returns subject to penalty by the Form 1096 followed by a slash (/).

      Example:

      Enter 50/ on the bottom left hand corner when 50 original Form 1099-NEC documents with $600 or more in box 1.

    2. Edit the number of "Corrected" or "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).

      Example:

      Enter /20 on the bottom left hand corner when 20 corrected Form 1099-LS documents with $1 or more in box 1.

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, is edited, return them together with the supporting detail documents to the numbering function for numbering.

  2. Numbering forwards 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 per IRM 3.24.8, ISRP System, Information Return Processing. Destroy prior year detail information returns being transmitted after the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is properly coded.

Separation of Form 1096, Parent Return from Information Return

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

    Exception:

    Do not separate Form 1096 transmitting Form 1099-QA, Distributions from ABLE Accounts, and Form 5498-QA, ABLE Account Contribution Information, for processing. These form types remain together for processing through ISRP. A copy of the Form 1096 is placed at the beginning of each batch of 100 documents.

  2. A Form 1096 is present for each type of return within each submission. Process all Form 1096 to the IRP Payer Master File (PMF).

  3. Number Form 1096 processed through ISRP prior to separating the form from the IRP documents they transmit. Edit the Form 1096 DLN to the lower middle margin of the detail forms transmitted for the payer. Verify each page of the remaining documents transmitted shows the DLN of the Form 1096 present. See IRM 3.10.8.4.3.1 (4).

    1. Ensure only one type of return is coded per submission. If necessary, photocopy the Form 1096 to make as many as needed to cover each type of return submitted with the original Form 1096. If the Form 1096 does not agree with the return type being submitted, correct the Form 1096.

    2. Make sure the Form 1096 is complete. Perform any necessary editing.

    3. Check the Form 1096 to ensure it has a complete address. Check the transmitted forms to verify the complete address. Use the payer address on the returns being transmitted when Form 1096 address and the returns being transmitted address do not agree.

    4. 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 3.10.8.9.7, Editing Other Items.

    5. Code Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to reflect the types of payments reported by the payer for Form 1099-DIV, Dividends and Distributions, Form 1099-G, Certain Government Payments, and Form 1099-MISC, Miscellaneous Income. See IRM 3.10.8.9.6, Editing Type of Payment Transmitted, for more details.

    6. Separate current processing year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmittals from the information returns they transmit (Form 1099 etc.) only after the Form 1096, is numbered and this DLN is edited to the lower middle margin of the returns transmitted.

      Note:

      Each Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must have the same payer name and TIN as the forms transmitted. If the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, does not agree with its transmitted returns, return for correspondence for correct information.

  4. Dispose of information returns attached to prior year Form 1096 reporting prior tax year information after performing the following and see IRM 3.10.8.3 (2) for more actions:

    1. Verify the entry in "Total number of forms" 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 3.10.8.9.7, Editing Other Items.

    2. Code the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to show the payments reported on the information returns, if applicable. See IRM 3.10.8.9.6, Editing Type of Payment Transmitted, for instruction on payment codes and when to edit them.

  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, is edited to the lower middle margin of the first detail document and each page of the remaining documents in the payer's submission.

Batching Information Returns Transmitted by Form 1096 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. See Information Return Program (IRP) account type codes below:

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

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

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

      Note:

      Identify single or multi batches 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) is considered a new payer. Campus management determines if Document Perfection Operation attaches payer identifiers.

      If Then
      The first return for a payer does not have both a payer name and TIN Edit this information (as determined from preliminary batch transmittal) to the correct location on the first return for the payer.
      Payer's information returns require more than one batch. A payer identifier is attached to the first return for the payer in each batch. Ensure 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. See Exhibit 3.10.8-2, Information Return Document Codes for return codes.

    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, indicating the batch has Form 1099-DIV, Dividends and Distributions, received from a domestic filer.

    11. See IRM 3.10.8.6, Preparing Documents for Service Center Recognition/Image Processing System (SCRIPS), for the preparation of forms for SCRIPS processing.

  2. See IRM 3.10.8.13, Batching Form 1096 for Integrated Submission and Remittance Processing (ISRP) Processing instructions to batch Form 1096 for ISRP processing.

  3. Assign batch numbers, prepare batch control cards, etc. and forward to the document perfection function for processing. Service Center management determines if returns get numbered before moving through Document Perfection Operation.

  4. Edit unnumbered ISRP batches and then sent to numbering in Document Perfection Operation.

Blocking Income Information Returns

  1. Take the following action on blocks which require payer identifiers to the first return and editing for transcription of a payer TIN, address and name:

    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 with the payer identifier attached in the same manner as the first return for the payer in the batch. Secure the first return for the payer in the batch by pulling the return attached to the immediately preceding payer identifier in the batch. After editing the payer TIN, name, and address on the information return, replace the payer identifier and return assemblies back in their correct places in the batch.

Batching Form 1096 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 each account type code separately. 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 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 IRS because a form is not provided, or not usable.

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

    3. Place an indication of the prior year present in the batch identifier (ID).

    4. Do not batch Form 1096transmitting different types separately.

    5. Do not batch single versus multiple return because each Form 1096, has a different payer (by name or TIN). Nor is it necessary to batch TIN and No-TIN Form 1096 separately.

  2. Batch the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in convenient groups. Annotate on the batch holder Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for payer master file (PMF) 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"

Numbered/Blocked and Unnumbered Returns

  1. Forward unnumbered returns when complete to the numbering function for numbering and blocking.

  2. Forward each completed numbered batch of returns to the ISRP function for transcription.

  3. Adjust controls when releasing each batch.

Term Definitions Information Returns

Term Definition
Account Type Code An alpha character assigned in the block header record for all information return blocks.
Block Header Form 1332, Block and Selection Record, or Form 3893, Re-Entry Document Control, distinguishing the entity or selection category of the return(s) in the block.
"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.
Detail document/return Documents transmitted by a payer return.
Domestic Payer Any information return submitted on an official IRS information return or approved substitute for an official IRS information return. Domestic payer information returns include all information returns not meeting 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.
Foreign Treaty Information Return Any information return furnished by foreign governments, businesses, or individuals to the IRS reporting amounts paid to businesses or individuals with U.S. addresses.
Payer Payer information is found in the upper part of IRP documents. A payer is identified on forms as one or more of the following:
  • Fiduciary

  • Estate

  • Trust

  • Partnership

  • Corporation

  • Employer

  • Applicable Large Employer (ALE)

  • ALE member

  • Payer

  • Trustee

  • Issuer

  • Filer

  • Lender

  • Borrower

  • Donee

Exception:

For Form 1098, borrower and payer mean payee.

Payee Information found in the lower part on of IRP documents. A payee is identified on forms as one or more of the following:
  • Beneficiary

  • Partner

  • Shareholder

  • Employee

  • Recipient

  • Participant

  • Winner

  • Transferor

  • Lender

  • Responsible Individual

  • Donor

Exception:

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

Payer Identifiers A gummed label or other identifier (such as highlighting or blue tape) placed on the information return to signify a change of payer.
Single Return Payer Any payer for whom only one information return is processed through ISRP for each category.
TIN Taxpayer Identification Number Either a social security number (SSN) or employer identification number (EIN).
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

Information Return Document Codes

Return Type / Form Document / Return Code
Form 1096 69
Form 1096 for Form 1099-QA and Form 5498-QA tax years equal to or greater than 2016 0A
Form 1097-BTC 50
Form 1098 81
Form 1098-C 78
Form 1098-E 84
Form 1098-F 03
Form 1098-T 83
Form 1098-Q 74
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-LS 16
Form 1099-LTC 93
Form 1099-MISC 95
Form 1099-NEC 71
Form 1099-OID 96
Form 1099-PATR 97
Form 1099-Q 31
Form 1099-QA 1A
Form 1099-R 98
Form 1099-S 75
Form 1099-SA 94
Form 1099-SB 43
Form 5498 28
Form 5498-ESA 72
Form 5498-QA 2A
Form 5498-SA 27
Form 3921 25
Form 3922 26
Form W-2G 32

Mail Stops and Addresses for Disposition of Information Return Program

Do not use overnight delivery for regular mailings. Observe protection of Personally Identifiable Information (PII) data. Mail United Postal Service (UPS) ground service allows tracking capability.

Mail Stops and Addresses

Disposition Situation Address and/or Mail Stop
  • Marks out or alters in any manner, the penalty or perjury statement (i.e., the jurat) in the signature area

  • Federal tax withheld meets or exceeds 33 percent of stated income

Internal Revenue Service
Frivolous Return Program Mail Stop 4390
1973 Rulon White Blvd
Ogden, UT 84201
Combined Annual Wage Reporting (CAWR) issued correspondence "with all submission documents and/or forms" Internal Revenue Service
CAWR Cincinnati- Stop 815G
7940 Kentucky Drive
Florence, KY 41042
"OR"
Internal Revenue Service
CAWR Memphis- Stop 814
5333 Getwell Rd.
Memphis, TN 38118
"OR"
Internal Revenue Service
CAWR Philadelphia- Stop 4-G08.151
2970 Market St.
Philadelphia, PA 19104-5016
≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ Internal Revenue Service
Attn: Underreporter Branch, Payer Coordinator, AUR Stop 6653
1973 Rulon White Blvd.
Ogden, UT 84201
Federal Tax Withholding (FTWH) Report with no reply submissions or unprocessable resubmissions IRP Civil Penalty Philadelphia
Internal Revenue Service
Stop 4-G08.151
2970 Market St.
Philadelphia, PA 19104-5016
The following submissions transmitting ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  • Letter 1865-C no replies and the unprocessable submissions transmitted by or with Form 1096, Annual Summary and Transmittal of U.S. Information Returns

  • Letter 1865-C no replies and the Form 1094 series return for tax year 2017 or greater if present for the submission. See IRM 3.10.8.5.3 (9) for detailed instructions.

  • Prior year Form 1096 processed through Integrated Submission and Remittance Processing (ISRP) and imaged by Service Center Recognition/Imaging Processing System (SCRIPS).

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

Sorts for Service Center Recognition/Imaging Processing System (SCRIPS)

SCRIPS
Sort
Tax Year Information Return Processing
(IRP)

Transmittal
Supporting Detail Form Types
ACA IRP B
sort tax years separately
2020
2019
2018
2017
Form 1094-B, Transmittal of Health Coverage Information Returns Form 1095-B, Health Coverage
ACA IRP C
sort tax years separately
2020
2019
2018
2017
Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns Form 1095-C, Employer-Provided Health Insurance Offer and Coverage
ACA IRP CSA
sort tax years separately
2020
2019
2018
2017
Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns Has no supporting form(s) (details) attached but both checks in both the corrected box and line 19
Income
IRP
Processing year -1 Form 1096, Annual Summary and Transmittal of U.S. Information Returns
Stop this sort after February 15th and produce one sort for SCRIPS IRP processable documents.
Transmitting income information returns other than Form 1099-NEC
Expedite
NEC
IRP
Processing year -1 Form 1096, Annual Summary and Transmittal of U.S. Information Returns
transmitting Form 1099-NEC
Stop this sort after February 15th and produce one sort for SCRIPS IRP processable documents.
Form 1099-NEC, Nonemployee Compensation

Note:

Place a notation on the release to SCRIPS to indicate NEC. Work received through February 15th treated and marked as expedite.

Sorts for Integrated Submission and Remittance Processing (ISRP)

ISRP Detail Sorts Transmittal Supporting Detail Form Types
Prior Year Form 1096, Annual Summary and Transmittal of U.S. Information Returns All forms
Form 1096, Annual Summary and Transmittal of U.S. Information Returns
  • Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes

  • Form 1098-F, Fines, Penalties, and Other Amounts

  • Form 1098-Q, Qualifying Longevity Annuity Contract Information

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

  • Form 1099-LS, Reportable Life Insurance Sale

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

  • Form 1099-SA, Distribution from Medical Savings Account

  • Form 1099-SB, Seller's Investment in Life Insurance Contract

  • Form 5498-ESA, Coverdell ESA Contribution Information

  • Form 5498-SA, HSA, Archer, or Medicare Advantage MSA Information

  • Form W-2G, Certain Gambling Winnings

  • Form 3921, Exercise of an Incentive Stock Options

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

Modernized Information Return Intake (IRI) General Purpose Programming (GPP)
Form 1096, Annual Summary and Transmittal of U.S. Information Returns
  • Form 1099-QA, "Distributions from ABLE Accounts"

  • Form 5498-QA, "ABLE Account Contribution Information"

Number of Returns Per Page Allowed on Service Center Recognition/Imaging Processing System (SCRIPS) Income Returns

SCRIPS Processed Forms
Form Number and Title
"Maximum" Number of Forms Per Page
Form 1096, Annual Summary and Transmittal of U.S. Information Returns 1
Form 1097-BTC, Bond Tax Credit 2
Form 1098, Mortgage Interest Statement 2
Form 1098-E, Student/Loan Interest Statement 3
Form 1098-T, Tuition Payments Statement 3
Form 1099-A, Acquisition or Abandonment of Secured Property 3
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions 2
Form 1099-C, Cancellation of Debt 3
Form 1099-DIV, Dividends and Distributions 2
Form 1099-G, Certain Government Payments 3
Form 1099-INT, Interest Income 2
Form 1099-K, Payment Card and Third Party Network Transactions 2
Form 1099-MISC, Miscellaneous Income 2
Form 1099-NEC, Nonemployee Compensation 2
Form 1099-OID, Original Issue Discount 2
Form 1099-PATR, Taxable Distributions Received from Cooperatives 3
Form 1099-Q, Payments From Qualified Education Programs (Under Section 529 and 530) 3
Form 1099-R, Total Distributions from Profit-Sharing, Retirement Plans, Individual Retirement Arrangements, Insurance Contracts, etc. 2
Form 1099-S, Proceeds from Real Estate Transactions 3
Form 5498, Individual Retirement Arrangement Information 2

Correspondence Fill-In Paragraph Options

Paragraph Use Optional Additional Verbiage
C, N Some or all your Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, are unprocessable because the box indicates the employer provided self-insured coverage and Part III is incomplete. Please resubmit.
C, N Please use the full-sized official forms.
C, N You sent non-official forms. Please resubmit using official forms.
C, N You sent forms in portrait. Please resubmit in landscape.
F, P We received a Form 1094-B, Transmittal of Health Coverage Information Returns, and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. This combination of forms is not processable. Processable combinations include Form 1094-BTransmittal of Health Coverage Information Returns, and Form 1095-B, Health Coverage, or Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns and Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. Please resubmit.
F, P We received a Form 1094-C and Form 1095-B. This combination of forms is not processable. Acceptable combinations include a Form 1094-B and Form 1095-B or Form 1094-C and Form 1095-C. Please resubmit.
C, 0 and 1 We cannot process your Form 1095 returns because the corresponding Form 1094 is not present. Resubmit your filing (Form 1094 transmittal and corresponding Form 1095) for processing.
C, 0 and 1 We cannot process your Form 1095 returns because the corresponding Form 1094 is not present. Prepare the Form 1094 transmittal and return it to us with a copy of this letter.

Due Dates and Date Stamping

Form Type Due Date Date Stamp Begins
includes grace period
Tax year is prior to the current processing year minus one Past year January 01
Form 1096 transmitting
Form 1098-F or
Form 1099-NEC
Tax year is equal to current processing year minus one
January 31 ≡ ≡ ≡ ≡ ≡ ≡
Form 1096 and Form 1094
Tax year is equal to current processing year minus one

Exception:

Form 1096 transmitting Form 1099-NEC,Form 1098-F above and Form 5498 series below.

February 28 ≡ ≡ ≡ ≡ ≡ ≡ ≡
Form 1096 transmitting Form 5498 series
Tax year is equal to current processing year minus one
May 31 ≡ ≡ ≡ ≡ ≡ ≡
Subsequent years (futures)
Tax year equals or is greater than current processing year
Not yet due
  • No date stamp

  • Hold in IRP Sort Unit

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 Processable returns from domestic payers.

State Code/Zone Improvement Plan (ZIP) Code Perfection Chart (State Order)

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

Zone Improvement Plan (ZIP) Code, State and State Abbreviation Exceptions

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      

Military Army Post Office (APO), Diplomatic Post Office (DPO), and Fleet Post Office (FPO) State Codes and Zone Improvement Plan (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]