3.10.8 Information Returns Processing

Manual Transmittal

November 16, 2018

Purpose

(1) This transmits interim procedural guidance for IRM 3.10.8, Campus Mail and Work Control, Information Returns Processing.

Material Changes

(1) Editorial changes were made throughout this instruction.

(2) IRM 3.10.8.1.2(1) Tax Cuts and Jobs Act of 2017 and IRC 6693 was added to the listing of authority statements.

(3) IRM 3.10.8.2.1

  • (1) New form types Form 1099-LS, Reportable Life Insurance Sale, and Form 1099-SB, Seller's Investment in Life Insurance Contract, were added to the instruction.

  • (4) Austin stop 6722 was updated to 6723 to reflect a change in the stop number at the site. IPU 18U1003 issued 06-27-2018

  • (7) Ogden was added as a site processing information return documents.

(4) IRM 3.10.8.2.2 New form types were added to program 44300.

(5) IRM 3.10.8.3(2) An exception was added for prior year details destruction per Document 12990, Records and Information Management Records Control Schedules, Record Control Schedule (RCS) 29, Item 85. Instruction added to hold all documents until further notice. IPU 18U0804 issued 05-11-2018

(6) IRM 3.10.8.3.1(6) Acronym for Business Master File Automated Underreporter program changed from "BMF AUR" to Business Master File Underreporter "BUR" .

(7) IRM 3.10.8.3.1.2

  • (1) Removed due to no longer receive tax year 2007 issued notices and subsequent paragraphs were renumbered accordingly.

  • (2) Removed the beginning obsolete date stated in the instruction

(8) IRM 3.10.8.3.3.1(4) Updates to the box numbers for Form 1099-DIV, Dividends and Distributions, were made to reflect form changes for tax year 2018.

(9) IRM 3.10.8.4

  • (5) b) Tax year of documents which require volume counts were updated to reflect the new processing year.

  • (11) a) Exceptions and examples of unprocessables which should not be sent forward for processing and a reference to the unprocessable instruction reference.

  • (12) Clarification of the existing instruction was added by inserting the phrase "equal to or greater than" .

  • (12) g) Form 1098-T, Tuition Statement, was added to the exception listing of documents considered processable when no money amount is present.

(10) IRM 3.10.8.4.1

  • (1) Updated the wording in the instruction to better convey the instruction.

  • (2) Tax years to be consider as Service Center Recognition/Imaging Processing System (SCRIPS) processables were added to the instruction for Form 1095 series documents.

  • (4) New forms add to the instruction: Form 1099-LS, Reportable Life Insurance Sale, and Form 1099-SB, Seller's Investment in Life Insurance Contract.

(11) IRM 3.10.8.4.1.1(3) Reminder was added to the instruction to not forward for processing unprocessables and a reference to the instruction on unprocessable conditions was cited.

(12) IRM 3.10.8.4.2 The word only was added to the instruction to the instruction to convey a copy of the taxpayer document is preferred.

(13) IRM 3.10.8.5.1

  • (5) Line 19 marked was added to the existing exception statement addressing corrected Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, stand alone returns. IPU 18U0396 issued 03-06-2018

  • (8) Form types were added to the instruction to make clear which submissions are acceptable to perfect taxpayer data to create a processable submission. IPU 18U0396 issued 03-06-2018

  • (11) Statements added to instruct the documents being transmitted must be the same tax year as the transmittal to be considered processable.

(14) IRM 3.10.8.5.2.1

  • (6) Box 9 was changed to box 10 in the instruction to reflect tax year 2018 tax reform form changes for Form 1099-DIV, Dividends and Distributions.

  • (7) d) and e) Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc. and Form 1098-T, Tuition Statement, were added to the instruction of returns which can be sent forward for processing without a dollar amount present.

  • (8) Two new form types were added to the table. Form 1098-T, Tuition Statement, was removed. The following form types payment amount fields were edited to reflect form changes: Form 1099-BProceeds From Broker and Barter Exchange Transactions, and Form 1099-DIV, Dividends and Distributions.

(15) IRM 3.10.8.5.3(6) Reference to additional instruction located at IRM 3.10.8.5.2 (1)b) was added to clarify what should be done when the retention period for temporarily unprocessable suspense hold ends. IPU 18U0396 issued 03-06-2018

(16) IRM 3.10.8.8.2(2) Reworded the instruction present to clearly identify the term "NO TIN" or "No-TIN" will be present in the payee taxpayer identification area on the payee returns where the address will be circled out. IPU 18U0396 issued 03-06-2018

(17) IRM 3.10.8.8.6 (6) Added instruction to circle out filer error when a future year is present for date of sale and if a current year being processed is present in "Box 1" of Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes. IPU 18U0577 issued 04-03-2018 Location of instruction has changed since the date issued due to subsequent IRM updates.

(18) IRM 3.10.8.8

  • (2) Form 1094 series returns were added to the instruction.

  • (3) Instruction it was local site discretion to use red pen instead of pencil on information documents other than the transmittal was removed. Red pen editing is no longer acceptable on any income returns.

(19) IRM 3.10.8.8.6

  • (8) Form 1098-T, Tuition Statement, box 2, Amounts billed was removed due to tax year 2018 form changes.

  • (14) Form 1099-DIV, Dividends and Distributions, boxes updated to reflect tax year 2018 form changes.

  • (18) New Form 1099-LS, Reportable Life Insurance Sale, was added to the instruction and all subsequent paragraphs in the subsection renumbered accordingly.

  • (28) New Form 1099-SB, Seller's Investment in Life Insurance Contract, was added to the instruction and all subsequent paragraphs in the subsection renumbered accordingly.

(20) IRM 3.10.8.8.7(2) Additional valid distribution codes "C" and "M" were added to the instruction and the valid combination table.

(21) IRM 3.10.8.9.7(3) Subject to penalty box 1 was changed to box 1a for Form 1099-DIV, Dividends and Distributions. IPU 18U1003 issued 06-27-2018 Form 1099-DIV, Dividends and Distributions, instruction added as an exception for box 7 entries. New form types Form 1099-LS, Reportable Life Insurance Sale, and Form 1099-SB, Seller's Investment in Life Insurance Contract, were added to the table.

(22) IRM 3.10.8.10(4) Reference was added to the instruction to not follow Document 12990, Records and Information Management Records Control Schedules, when applying final disposition to prior year detail income documents.

(23) Exhibit 3.10.8-2 New form types Form 1099-LS, Reportable Life Insurance Sale, and Form 1099-SB, Seller's Investment in Life Insurance Contract, were added to the table.

(24) Exhibit 3.10.8-3 Existing reference to forwarding no reply packages to Civil Penalty Unit was removed from the reminder and placed in the instruction proceeding the reminder.

(25) Exhibit 3.10.8-4 Tax year 2018 was added throughout the instruction.

(26) Exhibit 3.10.8-5 New form types Form 1099-LS, Reportable Life Insurance Sale, and Form 1099-SB, Seller's Investment in Life Insurance Contract, were added to the table.

(27) Exhibit 3.10.8-6Form 1096, Annual Summary and Transmittal of U.S. Information Returns, was added to the listing due to the rewording to provide clarification of instruction in IRM 3.10.8.4.1 (1).

Effect on Other Documents

IRM 3.10.8 dated November 14, 2017 (effective January 1, 2018) is superseded. The following IRM Procedural Updates (IPUs), issued have been incorporated into this IRM: IPU 18U0396 issued 03-06-2018, IPU 18U0577 issued 04-03-2018, IPU 18U0804 issued 05-11-2018, and IPU 18U1003 issued 06-27-2018.

Audience

Receipt and Control Employees

Effective Date

(01-01-2019)


Linda J. Brown
Director, Submission Processing
Wage and Investment Division

Program Scope and Objectives

  1. Paper filed information returns received from the taxpayers must be prepared for data capture for use by the Service.

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

  3. Audience: The users of this IRM are Submission Processing clerks in the Receipt and Control Operation. These instructions apply to any campus which process information return programs listed in this IRM.

  4. Policy Owner: Who owns the policies contained herein. Normally the executive of the operation. For example: Chief Financial Officer; Director, Accounts Management; Chief Information Officer; Director, Submission Processing.

  5. Program Owner: Mail Management Data Conversion Section, Paper Processing Branch (an organization within Submission Processing).

  6. Primary Stakeholders: Small Business/Self Employed (SB/SE), Examination Operations, Headquarters Examinations are affected by the completion of these actions to facilitate processable data records to good tape status.

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

Background

  1. Paper information returns are sent to the Service by filers to fulfill their requirement to file an information return with the Service and must be converted to an electronic data record for use by the Service. Returns must be sorted and prepared for the data capture systems which will convert these returns to electronic data records for use by the Service.

Authority

  1. Authority for these procedures are present in 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 has been amended by acts, public laws, treasury determinations, rules, and regulations such as the following:

    • Information Reporting on Health Coverage by Insurers (Section 6055)

    • Information Reporting on Health Coverage by Employers (Section 6056)

    • Failure to File a Correct Information Return (Section 6721)

    • IRC 6693

    • Tax Cuts and Jobs Act of 2017

    Note:

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

Responsibilities

  1. The Operations manager is responsible for securing, assigning and providing training for the staff needed to perform the task required throughout this instruction.

  2. The Planning and Analysis Staff is responsible for providing feedback and support to local management to achieve and effectively monitor scheduled goals.

  3. The Department and Team manager are responsible for and assigning, monitoring and controlling the work flow to accomplish accurate completion of the tasks required in this IRM.

  4. The clerk is responsible for applying the instruction present to the assigned task on the documents received to accurately complete and prepare sorts of paper information submissions for release to paper intake (electronic conversion) systems for data capture.

Program Management and Review

  1. Program Reports: Below are a list of official reports to use to show receipts, production and inventory for the paper returns moving through the instructions in this IRM. These reports will be utilized to report and monitor daily and weekly status of the program to completeness.

    • 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: Goals will be measured utilizing standard managerial reports by documents processed per hour and completion of each function compared to the established schedule for completion each week. Each functionality is expected to retain 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. Quality reviews are expected to be conducted and monitored by local management and corrective action taken to ensure quality products are released to the next function for processing.

  3. Annual Review: Review the processes included in this manual annually to ensure accuracy and promote consistent tax administration. This may be included under responsibilities for a manager.

Program Controls

  1. Unit production cards (UPCs) are dropped daily to record activity in each functionality of this program. IRM 3.10.5, Campus Mail and Work Control, Batch/Block Tracking System (BBTS), will be followed to drop receipts and production.

  2. Local reports may be utilized to establish additional information for maintaining daily program control. Local reports do not replace the established official reports and required production reporting.

Terms/Definitions

  1. Key terms are defined in the paragraphs below. Definitions for additional terms are located 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 at which any part of the payer/filer entity changes.

  4. Copy A — Copy A is the copy of the income information form which is submitted to the Service for processing. These forms can be separated into four categories:

    Category Definition
    Scannable The scanner can read all or most of the information printed on the forms.
    Non-Scannable The scanner cannot read any information on the forms, but the forms can be passed through the scanner's transport for the generation and imprinting of Document Locator Numbers (DLN)s on the forms.
    Non-Transportable The scanner cannot accept these forms because they are severely cut, torn, or mutilated.

    Note:

    Forms with minor cuts, tears or other physical defects can be considered scannable.

    Unprocessable These documents cannot be processed at all because the information is unclear, indecipherable, or the utility of the document is minimized or eliminated. Refer to the following for reference:
    1. Pub 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns

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

    3. IRM 3.41.267, OCR Scanning Operations, Affordable Care Act Information Return Processing on Service Center Recognition Image Process System (SCRIPS)

    4. IRM 3.41.269, OCR Scanning Operations, Information Returns Processing on Service Center Recognition Image Process System (SCRIPS)

    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 may require correspondence if the tax year to which the information pertains is not clear.

  5. General Purpose Programming (GPP) — Returns processed and sent to the new information return intake system (IRI). These returns will not be separated from their transmittals during processing.

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

    Exception:

    Form 1094-B, Transmittal of Health Coverage Information Returns, filer entity in certain submissions may not agree with the employer or issuer entities listed on transmitted Form 1095-B, Health Coverage, and still be processable. This submission type is the only exception to this rule.

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

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

  11. 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 is a standalone submission (CSA).

    Reminder:

    Box 18 entries or lack of entries are not to be considered when making the determination to forward the return for processing.

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

    Exception:

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

  13. TIN — (taxpayer identification number) — Either a social security number (SSN) or employer identification number (EIN).

  14. Correspondence indicator — A two-digit number which, if applicable, is coded on the transmittal to generate letters to filers who did not file correctly. These indicators post to the Payer Master File (PMF) to establish a history of the filer.

  15. Prior year return — A return which reports information pertaining to the calendar year minus more than one. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ certain prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

    Exception:

    Prior year 2015 Form 1094 series and Form 1095 series will be processed. Form 3921, Exercise of a Qualified Incentive Stock Option Under Section 442(b), and Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), will be processed as current year returns.

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

Related Resources

  1. The following lists additional resources to be used 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 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

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

  3. The IRS adopted the Taxpayer Bill of Rights in June 2014. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), and the following site for additional information about the Taxpayer Bill of Rights: http://irweb.irs.gov/AboutIRS/tbor/default.aspx.

  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.

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

    • 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 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

    • 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-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-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 a Qualified Incentive Stock Option Under Section 442(b)

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

    • Form 5498, IRA Contribution Information

    • Form 5498-ESA, Coverdell ESA Contribution Information

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

    • Form 5498-QA, ABLE Account Contribution Information

      Caution:

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

    • Form W-2G, Certain Gambling Winnings

  2. The following require exceptional processing. Submissions will be processed as one unit of work. DO NOT separate the submission (transmittals from the 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. Form 1098-MA, Mortgage Assistance Payments, will not be processed by Information Return Processing (IRP) Sort Unit or information return processing. Ship all Form 1098-MA, Mortgage Assistance Payments to Stop 6723 Austin Submission Processing Center (AUSPC) for retention.

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

  6. 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, should be used as a source of general guidelines not found in this IRM.

  7. The sorts received from the extraction area can be found in IRM 3.10.72.15, Information Return Processing Sorts (Austin, Kansas City, and Ogden Only).

Program Codes

  1. Use the following program codes as appropriate 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 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-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 a Qualified Incentive Stock Option Under Section 442(b) 44317
    Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) 44318
    Form W-2G, Certain Gambling Winnings 44314
  2. Use the following program codes as appropriate 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-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:

    Tax year 2014 is classified waste.

    • 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:

      Box 18 entries or lack of entries are not to be considered 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. Information returns are to be processed in accordance with Document 12990, Records and Information Management Records Control Schedules, Record Control Schedule (RCS) 29, Item 85.

    Exception:

    Prior year detail records (non-selected documents) will be held until further notice per Submission Processing management. Prior year details will not be destroyed after June 30 as instructed in the 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 that should have been attached to the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the correct box to mark in the type of form section.

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

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

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

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

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

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

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

      Taxpayer type Description of Correspondence
      From Payer Correspondence Letter 1865 C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., attached to a taxpayer’s response will be sent to IRP Correspondence unit.
      From the Payee Route to Accounts Management Branch for analysis and disposition.
    2. When corrected information returns are attached to the correspondence, forward to IRP Correspondence unit to determine if the information returns require processing. If it is determined the information returns require processing, they will be detached from the correspondence and forwarded for processing. Notate on the correspondence that the information returns were detached and sent to be processed.

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

General Correspondence Received

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

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

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

  4. Correspondence concerning 50 or more recipient accounts being in error will be routed 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. Correspondence concerning a CP 2000, Request for Verification of Unreported Income, Payments, or Credits, notice. See Servicewide Electronic Research Program (SERP) under the Who/Where tab choose Automated Under Reporter (AUR) Addresses (Open Cases) and determine the appropriate site. Include the provided stop number on each transmittal.

  6. 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 will be forwarded to Business Underreporter (BUR). See Servicewide Electronic Research Program (SERP) under the Who/Where tab choose BUR. Include the provided stop number on the transmittal.

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

  8. When a "letter or notice" from the CAWR Reconciliation Function is received from the taxpayer, the correspondence, as well as any forms or information submitted with it, should be sent to the CAWR Function. "Do not remove any of the information or forms" (Form 94x, Schedule H, Form 1096, Annual Summary and Transmittal of U.S. Information Returns, Form W-2G, Certain Gambling Winnings, Form W-2, Wage and Tax Statement, or Form W-3, Transmittal of Wage and Tax Statements) submitted with the CAWR letter or notice received from the taxpayer. Use the complete street address and mail stops found in Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, when routing information to 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 information returns are processable, 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 215Processable returns submitted, the date received and the number of processable documents.

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

    5. Refer to IRM 3.10.72, 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.

Computer Paragraph (CP) 2100, Please Check Your Backup Withholding List ("Large" payers), or Computer Paragraph (CP) 2100A, Please Check Your Backup Withholding List ("Small" payers)
  1. Send to the Philadelphia Campus Back Up Withholding (BUWH) unit. See Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, for the stop numbers.

Prior Year Forms

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

  2. Prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be processed through ISRP. Once processing of prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is complete, the forms will be routed to SCRIPS for imaging before routing to the IRP Penalty unit in Philadelphia. See Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program.

  3. Process prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, marked "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " as ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ returns.

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

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

    2. Destroy all prior year Form W-2G and Form 1099-R that do not have correspondence after the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is edited for processing.

  5. All tax years prior to 2015 for Form 1094 series and Form 1095 series are considered unprocessables.

  6. Prior year Form 1094 series and Form 1095 series are considered processables beginning with tax year 2015 and must be date stamped upon receipt.

Date Stamping Late Filed Transmittals

  1. All current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, received after due date grace period must be date stamped upon receipt. All current year and prior year Form 1094 series, received after due date grace period must be date stamped 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, Annual Summary and Transmittal of U.S. Information Returns.

    3. When a reply is received from the taxpayer 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 appropriate received date is captured when the new forms are processed. Do not date stamp a return when the original was 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. Transmittals which were incorrectly sent to state taxing agencies or the Social Security Administration (SSA) where the envelopes show a state agency or SSA are forwarding forms to the Service should not be date stamped or coded.

    Exception:

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

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

  4. Late filed Form W-3, Transmittal of Wage and Tax Statements, transmitting Form W-2, Wage and Tax Statement, must also be date stamped. If Form W-2, Wage and Tax Statement, are received with a Form W-3, Transmittal of Wage and Tax Statements, date stamp the first Form W-2, Wage and Tax Statement, in the submissions. See IRM 3.10.8.3.2, Prior Year Forms.

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

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

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

      Note:

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

    3. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, 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, IRS Received Date, for additional guidelines on determining timeliness.

  2. 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 will not be date stamped.

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

  4. For 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. Some Form 1094-B, Transmittal of Health Coverage Information Returns, and Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, even though received late, should not be date stamped or coded. The conditions when not to date stamped or coded are given below:

    1. Any submissions for tax year prior to 2015.

    2. Any future year submissions will not be date stamped.

  2. 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 will not be date stamped.

Form W-2, Wage and Tax Statement, Form W-2 C, Corrected Wage and Tax Statement, Form W-3, Transmittal of Wage and Tax Statements and Form W-3 C, Transmittal of Corrected Wage and Tax Statements

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

    1. Any current tax year copy received will be sent to the Social Security Administration (SSA) address listed below.

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

    3. Any prior year returns received "with correspondence or Combined Annual Wage Reporting (CAWR) related correspondence" will be routed to the CAWR Reconciliation Function. Cases should be routed in accordance with the Campus Program Locator Guide. The guide can be found on Servicewide Electronic Research Program (SERP) under the Who/Where tab http://serp.enterprise.irs.gov/databases/who-where.dr/transshipment.dr/campus_locator_guide/CAWR_IRS-CAWR_and_SSA-CAWR.htm, under the heading Small Business/Self-Employed (SB/SE) Compliance Services.

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

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

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

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

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

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

  5. Ensure 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 which the records were received in.

  6. Ship documents in accordance with 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. SSA is required to acknowledge receipt.

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

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

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

Detailed Sorting

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

  2. Sort Integrated Submission and Remittance Processing (ISRP) processed returns by return type and tax year.

  3. Service Center Recognition/Image Processing System (SCRIPS) processed returns will be sorted by the transmittal type and tax year. See IRM 3.10.8.4 (8) below.

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

  5. Succeeding year returns must be held for inclusion with returns received for that succeeding year, including the transmittal in Receipt and Control.

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

    2. Volume counts of receipts of information return received in processing year 2019 must be maintained for the tax years 2015 through 2018. 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.

    Exception:

    Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting Form 1099-MISC, Miscellaneous Income, with box 7, Nonemployee compensation, present and Form 1099-MISC, Miscellaneous Income, without entries in box 7, Nonemployee compensation, must each have their own transmittal.

  7. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, with a mark in box 7 will be released to SCRIPS with in three work days of receipt. The released work will be marked with a notation of content and will contain the notation of expedite.

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

    Caution:

    Submissions (transmittal and supporting documents) from the filer are processed as one unit of work. Never separate the submission for SCRIPS processing.

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

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

  11. Copy "B" and copy "C" of any information return listed in IRM 3.10.8.2.2, Program Codes, received in the campus 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, from a payer/filer will be treated as copy "A" .

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

      Exception:

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

      Example:

      Form 1099-MISC, Miscellaneous Income, recipient copies where the entire form measures three inches across and/or are multiple forms to a page, or contain instructions. These are unprocessable and correspondence should be sent requesting processable returns.

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

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

      Exception:

      If other than copies "A" are received without a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, but "with correspondence indicating" that it is an intended submission 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 appropriate 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 PII guidelines are followed in accordance with IRM 10.5.1, Privacy and Information Protection - Privacy Policy.

  12. Void all information returns which 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 9.

    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

  13. Dispose of all submissions (transmittal and supporting documents) containing 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. Managerial review is required prior to disposing of a voided submission.

  14. Managerial review is required 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 which are 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

  15. 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. 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, are processed through SCRIPS. The maximum number of returns allowed on one page for SCRIPS processing are listed in the exhibit.

  2. Current year being processed (2018) or first three prior year (2017, 2016, and 2015) Form 1095 series being transmitted by corresponding year Form 1094 series are considered processable by SCRIPS. 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. The following forms types are processed on ISRP exclusively and will not be released to SCRIPS:

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

      Note:

      Prior year, transmitting ISRP processed return types or submitted with out transmitting documents will not be forwarded to SCRIPS.

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

    • 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 a Qualified Incentive Stock Option Under Section 442(b)

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

    • Form W-2G, Certain Gambling Winnings, and prior year returns including

    • 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 and the entries are still readable.

Scannable Submissions
  1. Official Internal Revenue Service (IRS) forms are used or an identical substitute.

    Example:

    Identical substitute means the substitute form must be in 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. Some returns may be received with all data typed or printed, except the payer data is stamped or handwritten. This will not make the returns non-scannable.

  3. Ensure there are the appropriate number or less of information documents on a single page 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 appropriate returns per page. Forms exceeding the maximum number of documents per page listed above must be processed on ISRP or batched for non-transportable SCRIPS processing.

    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 (11).

  4. Ensure there are the appropriate number of pages for forms that come as multiple pages per form. See IRM 3.10.8.4.1 (2) for the appropriate pages per form. Forms exceeding the maximum number of pages listed above must be considered unprocessable.

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

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

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

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

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

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

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 to be read by the scanner.

  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 what can be read by the scanner.

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

  6. Refer to IRM 3.41.269.3.4, Unprocessable Conditions, and IRM 3.41.267.4, Unprocessable Unit of Work, for specifics.

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

    1. Non-transportable forms must be, released to SCRIPS as hand drop submissions or batched as non-transportable for SCRIPS processing. The option to photocopy to be processed through the scanner is allowable.

    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 are processed exclusively on SCRIPS and cannot be released to ISRP for processing.

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

  1. Only current year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the SCRIPS processable returns listed in IRM 3.10.8.4 (8), Detailed Sorting, will be processed through SCRIPS.

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

  3. A Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be present for each type of return within each submission. If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is not present for each type of return being transmitted do the following so that each return type has a transmittal.

    1. Preferred action is to copy the taxpayer provided Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and use the copy for the additional form type.

    2. Only if a copy machine is not available create an additional Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Use the original Form 1096, Annual Summary and Transmittal of U.S. Information Returns, as a source for information. Annotate Prepared by IRS on the signature line of any Form 1096, Annual Summary and Transmittal of U.S. Information Returns, created by the Service and assign the correspondence indicator "99" .

    Note:

    This does not apply to the form series 1094 submissions.

  4. Sort returns by the categories of transportable and non-transportable. Centers are required to 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. Transportable returns are not severely torn, cut, or separated and can be physically sent through the scanner.

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

    2. Carefully remove staples; never staple documents together.

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

  6. A non-transportable return is one that is severely torn, cut, separated, inappropriate size, or for any other reason will not be acceptable for processing through the scanner.

  7. Non-transportable Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be photocopied and made transportable even if transmitting ISRP processed only returns. The photocopies will be imaged through the scanner after ISRP processing and the transmittal image archived.

Form 1094 (Series) Transmitted Forms Detail Sort
  1. Prior year submissions (i.e., proceeding tax year 2015) are unprocessable.

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

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

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

  5. Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, without supporting forms are accepted for processing if the corrected box and line 19 are both checked.

    Caution:

    Ensure both check boxes are marked to avoid unnecessary processing actions.

  6. 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 are not processable.

Detailed Sorting of 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 making sure that the first return for each payer contains the correct payer name and TIN.

Form 1096 Transmitted Forms Detail Sort
  1. Prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, that are the current year being processed minus one, two or three, transmitting actual returns and do not contain fraudulent criteria, will be processed through ISRP.

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

  3. Any information return to be processed through ISRP must be batched and numbered.

  4. Each current year information return must contain the Document Locator Number (DLN) of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, (parent return) it was 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. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting prior year Form W-2G, Certain Gambling Winnings, and Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., will be processed for CAWR Reconciliation.

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

  3. See IRM 3.10.8.3.3 (1) for processing Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and Form W-2G, Certain Gambling Winnings, filed after March 16.

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

    1. If the Date Won (box 2) on a current Form W-2G, Certain Gambling Winnings, reflects a prior tax year's winnings, pull those documents. Annotate on the back of the related Form 1096, Annual Summary and Transmittal of U.S. Information Returns, the number of Form W-2G, Certain Gambling Winnings, that have been pulled from the payer's submission. Forward the pulled Form W-2G, Certain Gambling Winnings, to the CAWR Reconciliation Function. Provide Reconciliation an explanation as to why these documents were pulled from the payer's submission. See CAWR addresses and stop numbers in Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program.

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

Review General

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

  2. Burst and strip the returns, if necessary.

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

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

  5. Form 1095 series received with no Form 1094 series (transmittal) will be treated as unprocessables.

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

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

    1. Only one payer TIN should be present

    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 should be present

    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, but can be determined from the parent return, other returns from the same payer or any attached correspondence, edit the necessary information on the return and forward for processing.

  5. If 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 cannot be determined 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, Annual Summary and Transmittal of U.S. Information Returns, 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. Only if the payer name is missing, and cannot be determined 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 cannot be obtained from the supporting documents or research. 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 which payer name and/or TIN should be used. If the correct payer name and/or TIN cannot be determined from the attachments, follow research procedures to determine the correct name to be used for the TIN for Form 1096 only. Underline the first payer name and TIN listed on the first return for that payer and its parent transmittal. Issue Letter 586 C, Information Returns Corrected; Taxpayer Advised, advising which name and number was used.

    Exception:

    This rule does not apply to Form 1094-B, Transmittal of Health Coverage Information Returns, submissions. The TIN cannot be determined, 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, Annual Summary and Transmittal of U.S. Information Returns, to the "Recipient's/Lender's" on the Form 1098, Mortgage Interest Statement.

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

  10. To ensure only valid information return submissions are processed, do the following:

    1. Compare the "Filer's" (payer) name on the transmittal, to that of 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 that of 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 being used for the detail form being transmitted and the transmittal are the same.
    Address of Payer/ Filer Form 1096
    Form 1094-C
    Verify the payer address is present. If not present, it must be copied 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 the corrected box and line 19 both are marked.
    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. Can transmit only one type information return per submission. Types of forms transmitted are listed on the face of Form 1096. If the entry does not match correct the Form 1096.
    Form 1096 submitted transmitting multiple form types Form 1096 If the Form 1096 transmitted more than one type of form then create an additional 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 an additional Form 1096.

    Service Created Form 1096 Form 1096 Create only when:
    • correspondence is present from the payer stating the returns being filed are a submission

    • the forms do not meet fraud criteria

    • or, an existing submission contains 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. These abbreviations should not be used when the name control would be affected. Major city codes as shown in Document 7475, State and Address Abbreviations, Major City Codes (MCCs), Countries and ZIP Codes, may also be used.
    Assign correspondence indicator "99" for all IRS created Form 1096. Annotate on each Form 1096 that is created by the Service with "Prepared by IRS" on the signature line and correspondence code 99.
    All forms created by the Service must be legible.

    Caution:

    DO NOT create a transmittal for returns that meet 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 to be 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 if the document is to be processed through SCRIPS. The scanner system will compute the number of documents the Form 1096 transmitted and will place that count in the respective field.

Review of Information Returns

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

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

      Exception:

      Information returns transmitted by Form 1094 series will be considered unprocessable not temporarily unprocessable.

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

    • Type of return cannot be determined.

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

    • Kind of amount cannot be determined.

    • Data entered throughout the submission is illegible.

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

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

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

    • Tax year on the return is a year prior to the forms existence.

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

    • Form 1095 series are 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 are reported on a form other than the official Form 1099-S, Proceeds From Real Estate Transaction, or the filers name is inconsistent throughout the submission, and/or the filers name on Form 1096, Annual Summary and Transmittal of U.S. Information Returns, does not match the filers name on Form 1099-S, Proceeds From Real Estate Transaction.

    • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, where Part III check box is marked there must be 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 contain this error send the submission forward for processing. If fifty percent or more contain this error destroy the submission and do not send forward for processing.

  2. The following criteria present in a submission denotes a fraudulent filing and will be pulled from processing:

    Signs of Fraud

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

    Form 1099-OID meeting this criteria will be forwarded to the Frivolous Filer unit. See Exhibit 3.10.8-3 for the address.

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

    • The payer marks out or alters in any manner including adding additional 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 that meets or exceeds 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 to be 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 can be identified as belonging on a Form W-2, Wage and Tax Statement, rather than Form 1099 series return (see examples below), send the documents back to the payer using Letter 1306 C, Information Returns Forwarded to SSA/Returned to Employer. They should be filed with SSA as Form W-2, Wage and Tax Statement. The following items should be reported on Form W-2, Wage and Tax Statement:

    • Christmas bonuses

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

    • Wages

    • Other employee compensation

    • Tips

    • Vacation allowances

    • Severance Pay

    • Moving Expense payments

    • Third party payments for sick leave

    • Advanced Earned Income Credit (AEIC) payments

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

    • Withheld FICA tax

      Note:

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

  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, etc. on the same form), 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., or Letter 1865 SC, Request for Resubmission of Paper Information Returns.

  3. A return should contain a payer name, a payer TIN and/or a mailable address. Unknown payer names are not processable or considered an acceptable filing.

    Exception:

    Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc., and Form W-2G, Certain Gambling Winnings will be processed if any income items are present.

    1. Form 1096, Annual Summary and Transmittal of U.S. Information Returns requires research to perfect the payer entity prior to correspondence by utilizing the following IDRS command codes (CC) to assist in research: CC INOLE, CC PMFOL.

    2. Form 1094 series returns will not be perfected using IDRS research.

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

    If Then
    A positive and negative amount appear in one box Use the positive amount to determine selectability.
  5. Form 1099-MISC, Miscellaneous Income, only—If there is an unidentified money amount on the form, select it and move the money amount to box 7, Nonemployee compensation. If the form is to be processed through SCRIPS, write the money amount in box 7 using a #2 pencil and "X" out the original money value entry.

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

  7. Returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, selected for IRP processing must contain 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 with the exception of the following:

    1. Corrected/amended returns.

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

    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-Q 1a, 3, 4, 5a- 5l 1.00
    Form 1099-A 2, 4 1.00
    Form 1099-B

    Exception:

    Boxes 1d, 8, 9, 10, 11 on Form 1099-B may be positive or negative.

    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 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 9 checked, regardless of money amounts in other boxes.

    1, 2, 3, 4, 5, 6, 7, 8, 10, 13, 14, 15a, 15b 1.00
    Form 1099-OID 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 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 there are no selectable information returns after applying the money amount checks above, then destroy the submission and add the volume to the classified waste totals.

Review Information Returns Transmitted By Form 1094 Series
  1. The following checks will be made to determine if the submission will be forwarded for processing:

    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 must be present 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 must be present for written correspondence
    Form 1095-B Part I must have significant entries    
    Form 1095-C Part I must have significant entries    
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡   ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
  2. Submissions where the social security numbers (SSN) are redacted showing only the last four digits of the SSNs are not processable. Correspond for a new processable submission. Retain only the Form 1094 series return in response retention and do not retain the unprocessable Form 1095 series returns.

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

  1. Keep a 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 document type, considered temporarily unprocessable.

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

    Note:

    Letter 1865 C, Information Return (Paper) Incomplete 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 appropriate paragraph to filers of unprocessable information returns. 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
    If less than 10 returns were submitted. Photocopy each return
    If more than 10 returns were submitted Photocopy 3 returns that best represent the problem

    Note:

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

  4. The phrases in Exhibit 3.10.8-7, Correspondence Fill-In Paragraph Options, can be used as fill in paragraph statements to better explain the unprocessable conditions. If the existing language in the Letter 1865 C, Information Return (Paper) Incomplete or Rejected for Processing/Instructions Enclosed: Form 1095, 1098, 1099, etc., and or the suggested fill-in language below completely explains the unprocessable condition photocopies of the unprocessable returns are not required. It is advisable to do whatever is required to reduce the need to send photocopies of the unprocessable returns.

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

  6. The original unprocessable returns in the Form 1095 series will not be maintained in suspense due to space limitations but will be weighed and recorded as classified waste.

    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 being maintained in suspense the total number of unprocessable returns recorded as classified waste.

    3. No reply packages for tax year 2015 will be treated as classified waste.

    4. No reply packages for tax year 2016 and greater will be forwarded and will contain a copy of the correspondence and the one unprocessable return held with notations in retention.

    Exception:

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

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

  8. If the name and address for a filer of unprocessable real estate transactions cannot be determined, 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 penalty determination. See Exhibit 3.10.8-3, Mail Stops and Addresses for Disposition of Information Return Program, for the address in Philadelphia and mail stop number.

    Exception:

    Form 1095 series forwarded as no reply will contain only a single return. See IRM 3.10.8.5.3 (6) for instruction on the retention package. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

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

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

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

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

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

    1. Route the processable returns for 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. 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, may be destroyed.

Processable Returns Requiring Correspondence

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

    Note:

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

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

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

  4. Use both digits when coding a correspondence indicator.

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

Corresponding for Only Federal Tax Withheld

  1. The SCRIPS system will create a report identifying payers who reported only federal income tax withheld (FTWH) on SCRIPS processable returns listed in IRM 3.10.8.2.2 (2). This report may be generated on a daily basis.

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

  3. Issue Letter 1865 C, Information Return (Paper) Incomplete 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 was the only money amount reported on the information return(s).

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

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

    Note:

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

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

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

    2. For all other form types, forward the FTWH Report, the photocopied Form 1096, Annual Summary and Transmittal of U.S. Information Returns, and the information returns (if resubmitted, or if not resubmitted) to the IRP Civil Penalty Unit in Philadelphia for penalty consideration. See Exhibit 3.10.8-3, 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. 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 must be the first document in a batch. It will be used as the payer identifier for all SCRIPS returns.

    Reminder:

    SCRIPS processable sorts are listed in Exhibit 3.10.8-4, Sorts For Service Center Recognition/Imaging Processing System (SCRIPS).

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

    • Staples

    • Paper clips

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

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

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

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

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

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

Non-Transportable Information Returns Preparation for SCRIPS Original Entry Paper

  1. A non-transportable form is an information return that cannot be physically processed through the scanner. Severely cut, torn, or mutilated submissions are considered to be non-transportable forms/returns. This is an exceptional process and will be rarely utilized.

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

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

    3. Photocopies will be considered as processable documents.

  2. Create blocks of 99 information returns (98 for Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.).

    1. Each page of documents will count 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. A single form must be distinguished from a single page. A single page has as many as three forms.

    3. If an information return has been 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 filers submission, or it is the last return remaining in the filer's 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 filers submission, or the returns are the remaining two in the filers 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 filers 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 be less than 99 information returns.

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

    1. Represent three information returns, or a count of three, with a single page of blank forms 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 that correspond to the form type.

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

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

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

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

    3. A submission of different due dates must be split.

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

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

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

  8. Batch and block numbers need not be assigned for SCRIPS releases.

Paper Income Information Return Conversion

  1. All information return form types sent to ISRP must have been determined to be non-scannable. All procedures relating to batching, blocking and editing in this instruction refer to non-scannable forms.

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

  3. Returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns are always batched by:

    • Account Type Code

    • Type of Return

    • Tax Year

    • Single or Multiple Return Payers

    Exception:

    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 will be batched as regular blocks for processing and will not have the items listed above.

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

  5. For multiple return payer batches on form types transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, payer identifiers are attached to each return when any part of the payer entity has changes. Payer identifiers will not be present for single return payer batches because each return is for a different payer. At the discretion of campus management, Document Perfection may attach the payer identifier rather than Receipt and Control.

  6. Information returns transmitted by Form 1096, Annual Summary and Transmittal of U.S. Information Returns, are placed in batches and sent to the Document Perfection function from Batching or Numbering. Each batch is identified by a batch identifier. A batch identifier is a 5 position code and each position is defined as follows:

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

    • "C"

    • "P"

    Note:

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

    Position 2 Record Identification - Always use "F" .
    Position 3 Hyphen (-)
    Position 4 and Position 5 Return Code(s) - See Exhibit 3.10.8-2, Income Information Return Document Codes, for return codes.

Account Type Code

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

  2. Form 1096, Annual Summary and Transmittal of U.S. Information Returns, are assigned different Account Type Codes than other information returns. Account Type Codes "B" and "C" are used for Form 1096, Annual Summary and Transmittal of U.S. Information Returns. See Exhibit 3.10.8-9, Account Type Codes. These codes will only be present on Form 1332, Block and Selection Record.

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

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

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

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

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

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

  1. A payer identifier will be attached to the first return of each batch and to each subsequent return in which a change in payer occurs. Edit the payer area of each information return attached to a payer identifier in the following manner (treat single return payer batches as if a payer identifier were attached to each return).

    1. If a payer TIN is not present 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 it cannot be determined from other returns for that payer, edit "9-" . ISRP will convert this to 999999999.

      Exception:

      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 and will not be researched. Correspond with the payer requesting a new submission with the payer TIN.

    2. If the payer name and a full address is not present or cannot be determined from other returns destroy the 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 they are 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.

Payee Address

  1. Street address:

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

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

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

  2. If address is Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO), arrow APO, FPO or DPO and the literal "AA" , "AE" , or "AP" to the beginning of the "city 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 state is missing but can be determined 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, a state must be edited. If the state is missing and cannot be determined 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 zero's.

  7. If the exact ZIP code for a state is not known, or you notice an invalid ZIP code, use the ZIP code for the state (or "AA" , "AE" , or "AP" ) as shown in Exhibit 3.10.8-10, 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 5 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. A maximum of 40 characters are allowed 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. Make a cursory review to ensure the amount field boxes (lines) are numbered consistently with the official IRS information returns issued. Ensure the money amounts of each box (line) can be clearly understood (i.e., whether it is dollars and cents, or whole dollars if the decimal is missing or misplaced). All payment amount fields are transcribed as dollars only.

    1. If the preprinted amount box (line) numbers are inconsistent, edit the amount box (line) numbers to make them consistent. If unable to do so the returns are unprocessable. Correspond with the payer.

    2. If the payer re-titles payment amount fields or otherwise indicates the type of return or payment amounts are not the same as on the pre-printed return, use taxpayer intent as a basis for re-titling the return and re-numbering payment amount fields on the return.

      Example:

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

    3. If the payer has crossed out the pre-printed type of return and entered another type of return, edit the payment amount fields to be consistent with the payer's correction (i.e., circle out the pre-printed payment amount field number and enter the number from the official form which identifies that type of income).

      Example:

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

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

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

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

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

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

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

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

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

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. If there are two money amounts in one box add the money amounts circle out the two money amounts and enter the total of the two money amounts on the box.

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

  4. 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

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

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

    • Box 2, Outstanding mortgage principal as of 1/1/yyty

    • 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

  6. 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 taxpayers 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 to be processable. Circle out any date containing the current processing year if Box 1 contains the current year being processed. Follow taxpayer intent. If the taxpayers 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

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

    • Box 1, Student loan interest received

  8. 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

  9. 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

  10. 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

  11. 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 must be in numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payers entry and entering the correct date format. "YY" must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayers 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 must be in numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payers entry and entering in the correct date format.

      Note:

      This field can be blank.

    • Box 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

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

    • Box 1, Date of identifiable event
      —The date must be in numeric "MMDDYY" format. Edit the date to "MMDDYY" format by circling the payer's entry and entering in the correct date format. YY must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayers 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

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

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

    • Box 2, Aggregate amount rec'd*

  14. 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, Section 1250 gain

    • Box 2c Section 1202 gain

    • Box 2d, Collectible 28% gain

    • Box 3, Nondividend distributions

    • Box 4, Federal income tax withheld

    • Box 5, 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 dividend

  15. 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 should only contain numerics. The "X" must be in box 8. If an "X" appears after the numerics in box 2 circle it out and move the "X" to box 8. If any other non-numeric characters are present circle it out, 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
      — All money amounts must be positive and be $600 or more. If the amount is under $600, circle out the amount.

    • Box 6, Taxable grants

    • Box 7, Agriculture payments

    • Box 9, Market gain

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

    • Box 1, Interest income

      Note:

      Interest paid on Series E Savings bonds is now reported in box 3. Because regulations allow reporting of this interest when it is paid, these returns may be received year-round. Future returns marked 2018 will be held for processing in 2018. Edit any amounts identified as savings bond interest, but not entered in box 3, as box 3.

    • Box 2, Early withdrawal penalty

    • Box 3, Interest on U.S. Savings Bonds and Treas. obligations

    • Box 4, Federal income tax withheld

    • Box 5, Investment expenses

    • Box 6, Foreign tax paid

    • Box 8, Tax-exempt Interest

    • Box 9, Specified private activity bond interest

    • Box 10, Market discount

    • Box 11, Bond premium

    • Box 12, Bond premium on Treasury Obligations

  17. 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

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

    • Box 1, Amount paid to payment recipient

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

    • Box 1, Gross long-term care benefits paid

    • Box 2, Accelerated death benefits paid

    • Box 5, Date certified

      Note:

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

  20. Form 1099-MISC, Miscellaneous Income: Edit boxes 1 through 10, and boxes 13, 14, 15a, and 15b. If there is an unidentified money amount on the form and the payer did not refile correctly, code the money amount to box 7, Nonemployee compensation.

    • Box 1, Rents

    • Box 2, Royalties

    • Box 3, Other income

    • Box 4, Federal income tax withheld

    • Box 5, Fishing boat proceeds

    • Box 6, Medical and health care payments

    • Box 7, Nonemployee compensation

    • Box 8, Substitute payments...

    • Box 9, Direct sales indicator

      Note:

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

    • Box 10, Crop insurance proceeds

    • Box 13, Excess golden parachute payments

    • Box 14, Gross proceeds paid to an attorney

    • Box 15a, Section 409A deferrals

    • Box 15b, Section 409A income

  21. 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

  22. Form 1099-PATR, Taxable Distributions Received From Cooperatives: Edit boxes 1 through 10.

    • Box 1, Patronage dividends

    • Box 2, Nonpatronage distributions

    • Box 3, Per-unit retain allocations

    • Box 4, Federal income tax withheld

    • Box 5, Redemption of nonqualified notices...

    • Box 6, Domestic production activities deduction

    • Box 7, Investment credit

    • Box 8, Work opportunity credit

    • Box 9, Patron's AMT adjustment

    • Box 10, Other credits and deductions

  23. 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

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

    • Box 1, Gross distribution

    • Box 2, Earnings

    • Box 3, Basis

  25. 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

    Note:

    If all the money fields on the return are zero or blank or the only amount is in box 5 and/or box 8, and it is an original return, pull the return and dispose of these documents in accordance with 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.

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

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

      Caution:

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

    • Box 2, Gross proceeds

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

  27. 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

  28. 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

  29. 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

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

    • Box 1, Coverdell ESA contributions

    • Box 2, Rollover contributions

  31. 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

  32. 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

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

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

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

      Caution:

      "YY" must equal "TY" currently being processed. Follow taxpayer intent. If the taxpayers intent is not determined to equal "TY" 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, contains an amount titled "Net Winnings" , circle out this amount.

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

    Caution:

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

    • Box 1, Date option granted

    • Box 2, Date option exercised

    • Box 3, Exercise price per share
      — if the amount present 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 should be a whole number. If only a fraction is present circle out do not round up, if a whole number and a fraction is present circle out the fraction.

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

    Caution:

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

    • Box 1, Date option granted

    • 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 should be a whole number. If only a fraction is present circle out do not round up, if a whole number and a fraction is present circle out the fraction

    • Box 7, Date legal title transferred
      — the number present should be a whole number. If only a fraction is present circle out do not round up, if a whole number and a fraction is present circle out the fraction

    • Box 8, 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. The valid indicators for box 7 are 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. The valid combination determinations for pension and individual retirement account (IRA) indicators are listed in the table below.

    Distr.
    Code
    Type of Distribution May be used with Distr. Code
    1 Early distribution, no known exception 8, B, K, L, P, or M
    2 Early distribution; exception (other than codes 1, 3 or 4) 8, B, 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 Policy Sale 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, 4, 7, or B
    M 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 made 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 contain up to two (2) entries. If more than two (2) entries are made in box 7, edit the first valid combination present for input.

Payer's Account Number for Payee

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

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

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

  4. If more than one account number is present, try to determine which number belongs to the person being edited as the payee. If unable to do so, use the 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. Subsequent tax year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, should be returned to Receipt and Control function.

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

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

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

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

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

Editing Payer Taxpayer Identification Number (TIN) and Type of Entity

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

  2. Edit "9-" when a TIN cannot be found on the returns being transmitted or by research.

    Exception:

    Payer TIN will not be researched 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 documents being transmitted by the payer, if a payer TIN has been edited by Receipt and Control, it should be 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 that identifies the type of returns are being 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.

    Note:

    It may be helpful to remember most large volume payers are truly BMF entities; small volume payers can be either business master file (BMF) or individual master file (IMF) depending on the type of payer.

  6. If a Form 1096, Annual Summary and Transmittal of U.S. Information Returns, contains both an EIN and a SSN choose the EIN, unless specific notation from IDRS research indicates the SSN number should be used.

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

    2. Make sure the type of return transmitted can be clearly identified 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. Return codes for information returns should be pre-printed on the Form 1096, Annual Summary and Transmittal of U.S. Information Returns. Return codes are the same as document codes. Make sure it is correct.

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

  3. If two or more return codes are checked code the correct return code to the type of return being transmitted. See Exhibit 3.10.8-2, Income Information Return Codes.

Editing Type of Payment Transmitted

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

    • Form 1099-DIV, Dividends and Distributions

    • Form 1099-G, Certain Government Payments

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

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

    • Form 1099-MISC, Miscellaneous Income

    • 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. The payment codes for each of the form types are listed in the table below. 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-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 will 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. Form 1096, Annual Summary and Transmittal of U.S. Information Returns transmitting Form 1099-DIV, Dividends and Distributions, Form 1099-G, Certain Government Payments or Form 1099-MISC, Miscellaneous Income and appear to have no money amounts (or all zero amounts) and were not transmitting amended documents or are no longer with the documents they transmit, edit an "A" as the payment code.

Editing Other Items

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

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

      Example:

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

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

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

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

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

    Note:

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

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

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

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

    If Then
    Form 1098, Mortgage Interest Statement Boxes 1, 4, 5, and 6 combined total is $600 or greater
    Form 1098-Q, Qualifying Longevity Annuity Contract Information Boxes 3, 4 or 5a through 5l total $1 or greater.

    Exception:

    Tax year 2015 should be coded as "0" documents subject to penalty regardless of the dollar amounts present of the supporting forms.

    Form 1099-C, Cancellation of Debt Box 2 is $600 or greater
    Form 1099-CAP, Changes in Corporate Control and Capital Structure Box 2 is $100 million or greater
    Form 1099-DIV, Dividends and Distributions Boxes 1a and 2a combined total $10.00 or greater

    Exception:

    Liquidations (boxes 9 and 10 combined) total $600 or more. Box 7, Foreign tax paid, contains $ 1.00 or more.

    Form 1099-INT, Interest Income Boxes 1, 3, 8, and 13 net total is greater than $10
    or
    any entry in box 6
    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 one dollar.
    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 $1 or greater.
    Form 1099-MISC, Miscellaneous Income Boxes 1, 2, 3, 5, 6, 7, 8, 10, or 13,14 combined total is $600 or greater
    or
    Box 2 total is $10 or greater
    Form 1099-OID, Original Issue Discount Boxes 1, 2, 6, 10, minus 3 net total is $10 or greater
    Form 1099-PATR, Taxable Distributions Received From Cooperatives Boxes 1, 2, 3 or 6 combined total is $10 or greater
    Form 1099-QA, Distributions from ABLE Accounts Boxes 1, 2 or 3 total $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 Boxes 1 or 2 total $1 or greater.
    Form 5498-QA, ABLE Account Contribution Information Boxes 1, 2 or 3 total $1 or greater.
    Form W-2G, Certain Gambling Winnings Boxes 1 and 7 combined total is $600 or greater
  4. Edit the number of information returns subject to penalty in the bottom left hand corner of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, using the criteria above. This count should be less than or equal to the total number of documents reported in box 3 of Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

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

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

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

    Form 1096, Annual Summary and Transmittal of U.S. Information Returns, transmitting Form 1099-QA, Distributions from ABLE Accounts, and Form 5498-QA, ABLE Account Contribution Information, will not be separated for processing and will remain as an individual unit of work for processing through ISRP. A copy of the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be placed at the beginning of each batch of 100 documents.

  2. A Form 1096, Annual Summary and Transmittal of U.S. Information Returns, must be present for each type of return within each submission. All Form 1096, Annual Summary and Transmittal of U.S. Information Returns, will be processed to the IRP Payer Master File (PMF).

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

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

    2. Make sure the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, is complete. Perform any necessary editing.

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

    4. 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 are transmitting (Form 1099 etc.) only after the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, has been numbered and this number has been edited to the lower middle margin of the first of the returns being transmitted in the payer's submission.

      Note:

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

  4. Dispose of information returns attached to prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, reporting prior tax year information after performing the following and also see IRM 3.10.8.3 (2):

    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 being reported on the information returns, if applicable.

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

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

      Account Type Code Definition
      P An information return from a domestic payer.
      M An information return that was originally input through SCRIPS but is being reinput through ISRP.
    3. Do not mix returns with different account type codes. Only one type of return (e.g., Form 1099-DIV) may be placed in a batch.

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

      Note:

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

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

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

      If Then
      The first return for a payer does not contain both a payer name and TIN Edit this information (as determined from preliminary batch transmittal) to the appropriate location on the first return for the payer (i.e., the return to which the payer identifier has been attached).
      Payer's information returns are placed in more than one batch. A payer identifier must be attached to the first return for the payer in each batch. Ensure the first information return for every payer within a block has the DLN of its respective parent Form 1096.
      Dispose of previously prepared preliminary batch transmittals.
    7. On each batch, indicate the following: account type code, original indicator "F" , and return code.

    8. Return codes are shown in Exhibit 3.10.8-2, Information Return Document 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, which indicates that the batch contains 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. Instructions for the batching Form 1096, Annual Summary and Transmittal of U.S. Information Returns, for ISRP processing can be found in IRM 3.10.8.13, Batching Form 1096 Transmitted Integrated Submission and Remittance Processing (ISRP) Processing.

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

  4. Unnumbered ISRP batches will be edited and then sent to numbering in Document Perfection Operation.

Blocking Income Information Returns

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

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

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

Batching Form 1096 Transmitted 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. According to the following account type code (B or C).

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

      Note:

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

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

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

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

  2. Batch the Form 1096, Annual Summary and Transmittal of U.S. Information Returns, in convenient groups. 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. Unnumbered returns will be forwarded 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 Identifies the various entity or selection categories for returns in a particular block. This code is entered in the block header record for all information return blocks. All returns in a block must be the same Account Type Code.
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 that 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.
Domestic Payer Any information return submitted on an official Internal Revenue Service (IRS) information return or approved substitute for an official IRS information return. Domestic payer information returns include all information returns that do not meet the definition of a Foreign Treaty Information Return.
"Dummy" Form Form 1096, Annual Summary and Transmittal of U.S. Information Returns, or transmittal, prepared by IRS when an employer or payer submits information returns, without a transmittal document or the Service had to create a Form 1096 because the payer provided a Form 1096 that could not be used or was used for another purpose (e.g., multiple return types).
Foreign Treaty Information Return Any information return furnished by foreign governments, businesses, or individuals to the IRS that reports amounts paid to businesses or individuals with U.S. addresses. These returns may be filed by the foreign payer or by the U.S. recipient. They will not be submitted on the normal information returns processed in domestic Information Return Program (IRP). All Foreign Treaty Information Returns will be processed in AUSPC.
Payer Generally, payer information is found in the upper portion of IRP documents. A payer may be identified on forms as one or more of the following:
  • Fiduciary

  • Estate

  • Trust

  • Partnership

  • Corporation

  • Employer

  • 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 portion of IRP documents. A payee may be identified on forms as one or more of the following:
  • Beneficiary

  • Partner

  • Shareholder

  • Employee

  • Recipient

  • Participant

  • Winner

  • Transferor

  • Lender

  • Responsible Individual

  • Donor

Exception:

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

Payer Identifiers Labels placed on the information return to be input through ISRP to signify a change of payer. At the discretion of campus management, the label may be sequentially numbered and placed over the top of the return. It is used to alert transcription to a change of payer and to accurately determine payer counts.
Single Return Payer Any payer for whom only one information return is processed through ISRP for each category. All Single Return payers should be batched separately to eliminate the need for payer identifiers.
TIN Taxpayer Identification Number
yyty Current tax year being processed with century
yyty-1 Current tax year being processed minus one with century
yypy Current year being processing with century
TY Tax Year
PY Processing Year

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-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-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. All mailing will be United Postal Service (UPS) ground service, which still allows the appropriate 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 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
CP 2100 and CP 2100A Internal Revenue Service
Stop 4-G08.151
2970 Market St.
Philadelphia, PA 19104-5016
•Letter 1865 C no replies and the unprocessable submissions transmitted by or containing 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 2016 or greater if present for the submission. See IRM 3.10.8.5.3 (9) for detailed instructions.

Reminder:

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


•Federal Tax Withholding (FTWH) Report with no reply submissions or unprocessable resubmissions
•Prior year Form 1096, Annual Summary and Transmittal of U.S. Information Returns, 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 Form Types
ACA IRP B
sort tax years separately
2018
2017
2016
2015
Form 1094-B, Transmittal of Health Coverage Information Returns Form 1095-B, Health Coverage
ACA IRP C
sort tax years separately
2018
2017
2016
2015
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
2018
2017
2016
2015
Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns Has no supporting form(s) attached but the corrected box and line 19 are both checked
Income
IRP
Processing year -1 Form 1096, Annual Summary and Transmittal of U.S. Information Returns
AND
"box 7 is NOT MARKED"
Transmitting income information returns
Expedite
Income
IRP
Processing year -1 Form 1096, Annual Summary and Transmittal of U.S. Information Returns
AND
"box 7 IS MARKED"
Form 1099-MISC, Miscellaneous Income

Note:

Place a notation on the release to SCRIPS to indicate box 7 is marked. Work received through February 15th treated and marked as expedite.

Sorts For Integrated Submission and Remittance Processing (ISRP)

ISRP Detail Sorts Transmittal Supporting 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-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 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-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 of 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. Half sheets are unprocessable
C, N The forms you sent are on non-official forms. Please resubmit using official forms.
C, N The forms you sent are 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. It should be a 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. It should be a Form 1094-B and Form 1095-B or Form 1094-C and Form 1095-C. Please resubmit.
C, 0 and 1 We were unable to process all of your Form 1095 returns because the corresponding required Form 1094 was not present. Resubmit all of your filing (Form 1094 transmittal and corresponding Form 1095) for processing.
C, 0 and 1 We were unable to process all of your Form 1095 returns because the corresponding required Form 1094 was 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 marked on box 7 as 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:

NEC above and Form 5498 series below.

February 28 ≡ ≡ ≡ ≡ ≡ ≡
Form 1096 transmitting Form 5498
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 Returns from domestic payers, and are processable in IRP.

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]