Bulletin No. 2023–43

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Bulletin No. 2023–43

October 23, 2023

These synopses are intended only as aids to the reader in

identifying the subject matter covered. They may not be

relied upon as authoritative interpretations.

ADMINISTRATIVE

INCOME TAX

REG-106203-23, page 1143.

REG-113064-23, page 1144.

Tax return preparers must use a preparer tax identification

number (PTIN) on returns they prepare for compensation. The

PTIN must be renewed annually. The IRS charges a user fee

on each PTIN application or application for renewal to recover

costs for issuing and renewing PTINs. The IRS has recalculated the PTIN user fee and determined the full cost for each

application or application for renewal is $11, plus an amount

payable directly to a third-party contractor. These regulations

therefore propose to decrease the current PTIN user fee of

$21 to $11, plus an amount payable directly to the third-party

contractor. REG-106203-23. Published October 4, 2023.

Rev. Proc. 2023-28, page 1092.

General Rules and Specifications for Substitute Forms and

Schedules

This procedure provides guidelines and general requirements for the development, printing, and approval of the

2023 substitute tax forms. This procedure will be reproduced as the next revision of Publication 1167. Rev. Proc.

2022-31 is superseded.

T.D. 9980, page 1087.

Tax return preparers must use a preparer tax identification

number (PTIN) on returns they prepare for compensation. The

PTIN must be renewed annually. The IRS charges a user fee

on each PTIN application or application for renewal to recover

costs for issuing and renewing PTINs. The IRS has recalculated the PTIN user fee and determined the full cost for each

application or application for renewal is $11, plus an amount

payable directly to a third-party contractor. These interim final

regulations therefore decrease the current PTIN user fee of

$21 to $11, plus an amount payable directly to the third-party

contractor. TD 9980. Published October 4, 2023.

Finding Lists begin on page ii.

These proposed regulations would provide guidance for

elections to transfer clean vehicle credits under §§ 30D(g)

and 25E(f), as established by the Inflation Reduction Act of

2022 (IRA). The proposed regulations provide guidance for

taxpayers intending to transfer the previously-owned clean

vehicle credit and the new clean vehicle credit to dealers

who are entities eligible to receive advance payments of

either credit. The proposed regulations also provide guidance for dealers to become eligible entities to receive

advance payments of new or previously-owned clean vehicle

credits. The proposed regulations also provide guidance for

the recapturing of the credit under § 30D and 25E. Finally,

proposed § 1.6213-2 defines the omission of a correct VIN

for purposes of § 6213.

Rev. Proc. 2023-33, page 1135.

This revenue procedure sets forth the procedures under

§§ 30D(g) and 25E(f) of the Code for the transfer of the

clean vehicle credit and previously-owned clean vehicle

credit from the taxpayer to an eligible entity, including the

procedures for dealer registration with the Internal Revenue

Service (IRS), the procedures for the suspension and revocation of that registration, and the establishment of an

advance payments program to registered dealers. This revenue procedure also supersedes sections 5.01 and 6.03

of Rev. Proc. 2022-42, 2022-52 I.R.B. 565, providing new

information for the timing and manner of submission of

seller reports, respectively; as well as sections 6.01 and

6.02 of Rev. Proc. 2022-42, providing updated information

on submission of written agreements by manufacturers to

the IRS to be considered qualified manufacturers, as well as

the method of submission of monthly reports by qualified

manufacturers.

The IRS Mission

Provide America’s taxpayers top-quality service by helping

them understand and meet their tax responsibilities and

enforce the law with integrity and fairness to all.

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application

of the tax laws, including all rulings that supersede, revoke,

modify, or amend any of those previously published in the

Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of

internal practices and procedures that affect the rights and

duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service

on the application of the law to the pivotal facts stated in

the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature are

deleted to prevent unwarranted invasions of privacy and to

comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the

force and effect of Treasury Department Regulations, but they

may be used as precedents. Unpublished rulings will not be

relied on, used, or cited as precedents by Service personnel in

the disposition of other cases. In applying published rulings and

procedures, the effect of subsequent legislation, regulations,

court decisions, rulings, and procedures must be considered,

and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless

the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions and Other Related Items, and Subpart B,

Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to these

subjects are contained in the other Parts and Subparts. Also

included in this part are Bank Secrecy Act Administrative

Rulings. Bank Secrecy Act Administrative Rulings are issued

by the Department of the Treasury’s Office of the Assistant

Secretary (Enforcement).

Part IV.—Items of General Interest.

This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index

for the matters published during the preceding months. These

monthly indexes are cumulated on a semiannual basis, and are

published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

October 23, 2023

Bulletin No. 2023–43

Part I

26 CFR 300.11: Fee for obtaining a preparer tax

identification number

T.D. 9980

DEPARTMENT OF THE

TREASURY

Internal Revenue Service

26 CFR Part 300

Preparer Tax Identification

Number (PTIN) User Fee

Update

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Interim Final Rule.

SUMMARY: This document contains

interim final regulations relating to the

imposition of certain user fees on tax

return preparers. These regulations reduce

the amount of the user fee to apply for or

renew a preparer tax identification number

(PTIN) and affect individuals who apply

for or renew a PTIN. The Independent

Offices Appropriation Act of 1952 authorizes the charging of user fees. The text of

the interim final regulations also serves

as the text of the proposed regulations set

forth in the notice of proposed rulemaking

on this subject in this issue in the Proposed

Rules section of this edition of the Federal

DATES:

Effective date: These regulations are

effective on October 19, 2023.

Applicability date: For date of applicability, see paragraph (d) of these interim

final regulations.

FOR FURTHER INFORMATION

CONTACT: Concerning the interim

final regulations, Jamie Song at (202)

317-6845; concerning cost methodology,

Michael A. Weber at (202) 803-9738 (not

toll-free numbers).

Bulletin No. 2023–43

SUPPLEMENTARY INFORMATION:

This document contains interim final

amendments to 26 CFR part 300 regarding user fees.

other number prescribed by the IRS in

forms, instructions, or other appropriate

guidance. Those regulations require a

tax return preparer who prepares or who

assists in preparing all or substantially all

of a tax return or claim for refund after

December 31, 2010, to have a PTIN.

A. User Fee Authority

C. PTIN User Fee

The Independent Offices Appropriation

Act of 1952 (IOAA), which is codified at

31 U.S.C. 9701, authorizes agencies to

prescribe regulations that establish user

fees for services provided by the agency.

The IOAA provides that regulations implementing user fees are subject to policies

prescribed by the President; these policies

are set forth in the Office of Management

and Budget Circular A-25, 58 FR 38142

(July 15, 1993) (OMB Circular A-25).

Under OMB Circular A-25, Federal

agencies that provide services that confer benefits on identifiable recipients are

to establish user fees that recover the full

cost of providing the service. An agency

that seeks to impose a user fee for government-provided services must calculate

the full cost of providing those services.

In general, a user fee should be set at an

amount that allows the agency to recover

the direct and indirect costs of providing the service, unless the Office of

Management and Budget (OMB) grants

an exception. OMB Circular A-25 provides that agencies are to review user fees

biennially and update them as necessary.

Final regulations (TD 9503) published

in the Federal Register (75 FR 60316) on

September 30, 2010, established a $50

user fee to apply for or renew a PTIN,

based on a 2010 Cost Model. In addition,

a $14.25 fee for a new application and a

$13 fee for an application for renewal was

payable directly to a third-party contractor.

In 2013, the IRS conducted a biennial

review of the PTIN user fee and issued a

new Cost Model that estimated an increase

of the PTIN user fee, to $54. However, the

IRS determined to keep the fee at $50 for

the next two years.

In 2015, the IRS conducted a biennial

review of the PTIN user fee and issued a

new Cost Model, which determined that

the full cost of administering the PTIN

program going forward was reduced from

$50 to $33 per application or application

for renewal, plus a $17 fee per application

or application for renewal payable directly

to a third-party contractor. Final regulations (TD 9781) published in the Federal

2016, superseded and adopted temporary regulations (TD 9742) published in

the Federal Register (80 FR 66792) on

October 30, 2015, and established the $33

annual user fee to apply for or renew a

PTIN, plus $17 per application or application for renewal payable directly to a

third-party contractor.

In 2017, the IRS again conducted a

biennial review of the PTIN user fee and

issued a new Cost Model, which determined that the amount of the fee going

forward should be reduced to $31 per

application or application for renewal,

plus an amount payable directly to a thirdparty contractor. However, on June 1,

2017, before a notice of proposed rulemaking proposing to reduce the amount of the

PTIN user fee was issued, the IRS was

enjoined from charging a PTIN user fee.

Background

B. PTIN Requirement

Section 6109(a)(4) of the Internal

Revenue Code (Code) authorizes the

Secretary of the Treasury or her delegate

to prescribe regulations for the inclusion

of a tax return preparer’s identifying number on a return, statement, or other document required to be filed with the IRS.

On September 30, 2010, the Treasury

Department and the IRS published final

regulations (TD 9501) under section 6109

in the Federal Register (75 FR 60309)

to provide that, for returns or claims for

refund filed after December 31, 2010, the

identifying number of a tax return preparer is the individual’s PTIN or such

1087

October 23, 2023

In Steele v. United States, 260 F. Supp.

3d 52 (D.D.C. 2017), the United States

District Court for the District of Columbia

concluded that the Treasury Department

and the IRS lacked the statutory authority to charge a PTIN user fee and enjoined

the IRS from charging a PTIN user fee.

See Steele, 2017 WL 3621747 (D.D.C.

July 10, 2017) (final judgment and permanent injunction). The government filed an

appeal and on March 1, 2019, the United

States Court of Appeals for the District

of Columbia Circuit reversed the district

court’s decision and lifted the injunction

against charging the PTIN user fee. See

Montrois v. United States, 916 F.3d 1056

(D.C. Cir. 2019) (holding that a PTIN provides tax return preparers a specific benefit

by allowing them to provide an identifying number that is not a social security

number on returns they prepare and stating that the permissible amount of the fee

would be the same regardless of whether

the specific benefit was instead the ability

to prepare tax returns for compensation).

The case was remanded to the United

States District Court for the District of

Columbia to determine whether the fee

amounts were excessive. Id. at 1068.

In 2019, the IRS again conducted a

biennial review of the PTIN user fee and

issued a new Cost Model, which determined that the amount of the fee going

forward should be reduced to $21 per

application or application for renewal, plus

a $14.95 fee per application or application

for renewal payable directly to a thirdparty contractor. Final regulations (TD

9903) published in the Federal Register

(85 FR 43433) on July 17, 2020, adopted

the proposed regulations (REG-11713817) published in the Federal Register (85

FR 21126) on April 16, 2020, and established the $21 annual user fee to apply for

or renew a PTIN, plus $14.95 per application or application for renewal payable

directly to a third-party contractor.

In Steele v. United States, No.

1:14-cv-1523-RCL, --- F. Supp. 3d ----,

2023 WL 2139722 (Feb. 21, 2023),

the United States District Court for the

District of Columbia on remand considered whether the fee amounts were

excessive under the IOAA. Explaining

that while an agency may charge only

the reasonable cost incurred to provide a

service, or the value of the service to the

recipient, whichever is less, the district

court allowed that the activities charged

for need only be “reasonably related” to

the cost to the agency and the value to the

recipient, and the amount may include

both “direct and indirect costs” associated with the service provided. 2023 WL

2139722, at *7. The court further noted

that where an activity produces an independent public benefit, the fee that would

otherwise be charged must be reduced by

that portion of the costs attributable to the

public benefit. Id.

The district court concluded that the

PTIN fees for fiscal years (FYs) 2011

through 2017 were excessive to the extent

they were based on: (1) the activities

already conceded by the government in the

case;1 (2) any compliance activities other

than direct and indirect costs of investigating ghost preparers who do not list their

PTINs on returns they prepared for compensation as required by law, handling

complaints regarding improper use of a

PTIN, use of a compromised PTIN, or use

of a PTIN obtained through identity theft,

and composing the data to refer to those

specific types of complaints to other IRS

business units; (3) any suitability activities;

(4) any support activities, other than those

for the provision of PTINs and maintenance of the PTIN database, that facilitated

provision of an independent benefit to the

agency and the public; and (5) any activities of the third-party contractor, other

than those related to the issuance, renewal,

and maintenance of PTINs, that facilitated

provision of an independent benefit to the

agency and the public. Id. at *19.

In accordance with the biennial review

requirement in OMB Circular A-25 and

taking into account the district court’s

February 2023 memorandum opinion

in Steele, the IRS has issued a new Cost

Model that re-determines costs that the

government continues to incur for providing PTINs and administering the PTIN

program, and re-calculates the amount

of the user fee as $11 per application or

application for renewal, plus a $8.75 fee

per application or application for renewal

payable directly to a third-party contractor.

The amount payable directly to the thirdparty contractor also takes into account

certain costs that were addressed by the

district court’s February 2023 memorandum opinion in Steele. Subsequently, the

IRS entered into a modified contract that

allows the government to pay those costs

rather than the individuals who apply for

or renew a PTIN.

The government is authorized to charge

a PTIN user fee under the IOAA because,

in exchange for the fee, it provides a service by issuing and maintaining PTINs,

which provide tax return preparers a specific benefit by allowing them to provide

an identifying number that is not a social

security number on returns and claims

for refund and to prepare returns and

claims for refund for compensation. OMB

Circular A-25 states that user fees should

be collected in advance of or simultaneously with the provision of a service. The

PTIN user fee is collected when tax return

preparers apply for or renew their PTINs

during the application season, which

begins annually in October.

Explanation of Provisions

The IRS follows generally accepted

accounting principles (GAAP) in calculating the full cost of administering PTIN

applications and renewals. The Federal

Accounting Standards Advisory Board

(FASAB) is the body that establishes

GAAP that apply for Federal reporting entities, such as the IRS. FASAB

publishes the FASAB Handbook of

The government previously conceded $26,576,661, $26,623,420, and $25,685,247 for amounts collected in FY 2011, FY 2012, and FY 2013, respectively, which related to certain communications, compliance, Office of Professional Responsibility (OPR), and operations support activities; $8,737,123 and $9,010,458 for amounts collected in FY 2014 and FY 2015, respectively,

which related to certain communications, Office of the Director, Strategy and Finance, suitability, compliance and complaint referrals, competency and standards, continuing education, OPR,

enrolled agent and enrolled retirement plan agent department, and contractor processing activities; and $6,904,345 and $6,784,762 for amounts collected in FY 2016 and FY 2017, respectively, which related to certain communications, Office of the Director, Strategy and Finance, suitability, compliance and complaint referrals, OPR, enrolled agent and enrolled retirement plan

agent department, and contractor processing activities.

October 23, 2023

1088

Bulletin No. 2023–43

2. Overhead

The IRS used projections for FYs 2024

through 2026 to determine the direct and

indirect costs associated with the PTIN

program that are includible in the PTIN

user fee calculation taking into account

the district court’s February 2023 memorandum opinion in Steele. Direct costs are

incurred by the Return Preparer Office and

include staffing and contract-related costs

for activities, processes, and procedures

related to administering the PTIN program. Staffing costs included in the PTIN

user fee calculation relate to the compliance activities of investigating ghost preparers; handling complaints regarding the

improper use of a PTIN, use of a compromised PTIN, or use of a PTIN obtained

through identity theft; and composing the

data to refer those specific types of complaints to other IRS business units. The

PTIN user fee also takes into account indirect costs for support activities related to

the provision of PTINs and maintenance

of the PTIN database. In accordance with

Steele, the PTIN user fee calculation does

not take into account compliance costs

other than those described in this paragraph, costs incurred by the Suitability

Department, support costs other than those

described in this paragraph, and costs previously conceded by the government in

Steele, as detailed earlier in this preamble.

The labor and benefits for the work

performed related to the PTIN program is

projected to be $16,536,827 in total over

FYs 2024 through 2026. In addition to

labor and benefits and overhead expenses,

the IRS projects incurring travel, training,

and supplies costs of $115,000 in each of

FYs 2024 through 2026. The total labor

and benefits, travel, training, and supplies,

and overhead expenses projected are

shown below:

Expense

Labor and benefits

Travel, training, and supplies

Overhead (62.5 percent)

FY 2024

$5,364,566

$115,000

$3,424,729

FY 2026

$5,661,322

$115,000

$3,610,201

The total cost for FYs 2024 through

2026 are therefore projected to be

$27,432,969. The number of users is

based on FY 2022 numbers adjusted by a

projected increase in applications over the

next three FYs. Dividing this total cost by

the projected population of users for FYs

2024 through 2026 results in a cost per

application of $11 as shown below:

Federal Accounting Standards and Other

Pronouncements, as Amended (Current

Handbook), available at https://files.fasab.

gov/pdffiles/2022_%20FASAB_%20

Handbook.pdf. The Current Handbook

includes the Statement of Federal

Financial Accounting Standards (SFFAS)

No. 4: Managerial Cost Accounting

Standards and Concepts. SFFAS No. 4

establishes internal costing standards to

accurately measure and manage the full

cost of Federal programs, and the methodology below is in accordance with SFFAS

No. 4.

1. Cost Estimation of Direct Labor

The IRS uses various cost-measurement techniques to estimate the cost

attributable to the program. These techniques include using various timekeeping systems to measure the time required

to accomplish activities, or using information provided by subject-matter

experts on the time devoted to a program. To determine the labor and benefits cost incurred to provide the service

of providing a PTIN, the IRS estimated

the number of full-time employees

required to conduct activities related to

the costs of issuing and renewing PTINs.

The number of full-time employees is

based on both current employment numbers and future hiring estimates. When

the indirect cost of a service or activity is

not specifically identified from the cost

accounting system, an overhead rate is

added to the identifiable direct cost to

arrive at full cost.

Bulletin No. 2023–43

Overhead is an indirect cost of operating an organization that is not specifically

identifiable with an activity. Overhead

includes costs of resources that are jointly

or commonly consumed by one or more

organizational unit’s activities but are not

specifically identifiable to a single activity. These costs can include:

• Financial, human resources, information technology, and general management and administrative.

• Rent and building.

• Procurement, other services, and

consulting.

• Property, plant, and equipment.

• Publication services.

• Research, analytical, statistical,

library and legal services.

To calculate the overhead allocable to

a service, the IRS applies an overhead rate

to the identified direct labor and benefits

and other direct costs. The overhead rate

is the ratio of the IRS’s indirect labor, benefits, and non-labor costs of business divisions that do not interact with taxpayers

to the labor and benefits costs of business

divisions that interact with taxpayers. The

IRS calculates an overhead rate annually.

For the FY 2023 user fee review, an overhead rate of 62.5 percent was used.

3. Calculation of PTIN User Fee

FY 2025

$5,510,939

$115,000

$3,516,212

Total Costs

Number of Applications ÷

Cost Per Application

1089

$27,432,969

2,542,665

$10.79

Total

$16,536,827

$345,000

$10,551,142

Taking into account the full amount

of these costs, the amount of the PTIN

user fee per application or application for

renewal is $11.

Costs related to a third-party contractor’s activities for the issuance, renewal,

and maintenance of PTINs, such as

October 23, 2023

processing applications and operating

a call center, are included in the PTIN

user fee calculation, in accordance with

Steele, which will be set at $8.75 per

application or application for renewal,

in addition to the amount charged by the

government. The third-party contractor

was chosen through a competitive bidding process. The amount of the thirdparty contractor portion may change in

2026 when the contract expires and will

be re-computed.

Special Analyses

I. Regulatory Planning and Review

The OMB’s Office of Information and

Regulatory Analysis has determined that

these regulations are not significant and

are not subject to review under section

6(b) of Executive Order 12866.

II. Regulatory Flexibility Act

Pursuant

the

Regulatory

Flexibility Act (5 U.S.C. chapter 6), it

is hereby certified that these interim

final regulations will not have a significant economic impact on a substantial

number of small entities. These regulations affect all individuals who prepare

or assist in preparing all or substantially

all of a tax return or claim for refund

for compensation. Only individuals, not

businesses, can have a PTIN. Thus, the

economic impact of these regulations

on any small entity generally will be a

result of an individual tax return preparer who is required to have a PTIN

owning a small business or a small business otherwise employing an individual

tax return preparer who is required to

have a PTIN. The Treasury Department

and the IRS estimate that approximately

847,555 individuals will apply annually

for an initial or renewal PTIN. Although

these regulations will likely affect a

substantial number of small entities,

the economic impact on those entities

is not significant. These regulations

will establish an $11 fee per application or application for renewal (plus

$8.75 payable directly to the third-party

October 23, 2023

contractor), which is a reduction from

the previously established fee and will

not have a significant economic impact

on a small entity. Accordingly, the rule

is not expected to have a significant

economic impact on a substantial number of small entities, and a regulatory

flexibility analysis is not required.

III. Unfunded Mandates Reform Act

Section 202 of the Unfunded Mandates

Reform Act of 1995 (UMRA) requires

that agencies assess anticipated costs and

benefits and take certain other actions

before issuing a final rule that includes

any Federal mandate that may result in

expenditures in any one year by a State,

local, or Tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for

inflation. This rule does not include any

Federal mandate that may result in expenditures by State, local, or Tribal governments, or by the private sector in excess of

that threshold.

IV. Executive Order 13132: Federalism

Executive Order 13132 (Federalism)

prohibits an agency from publishing any

rule that has federalism implications if

the rule either imposes substantial, direct

compliance costs on State and local governments, and is not required by statute,

or preempts State law, unless the agency

meets the consultation and funding

requirements of section 6 of the Executive

order. These interim final regulations do

not have federalism implications and do

not impose substantial direct compliance

costs on State and local governments or

preempt State law within the meaning of

the Executive order.

V. Good Cause

The annual PTIN application and

renewal period for the 2024 filing season

will begin shortly. It would be unnecessary and contrary to the public interest for

the IRS to continue to charge the current,

higher user fee pending public comment

after the IRS has determined pursuant

1090

to the biennial review conducted under

OMB Circular A-25 that the PTIN user

fee should be reduced going forward. To

enable the reduced fee amount to be in

effect for PTINs issued or renewed by

tax return preparers preparing returns or

claims for refund in 2024, the Treasury

Department and the IRS find that there

is good cause to dispense with (1) notice

and public comment pursuant to 5 U.S.C.

553(b) and (c) and (2) a delayed effective

date pursuant to 5 U.S.C. 553(d). The

Treasury Department and the IRS will

consider public comments submitted in

response to the cross-referenced notice

of proposed rulemaking published in the

Proposed Rules section of this issue of

the Federal Register and will promulgate a final rule after considering those

comments.

VI. Submission to Small Business

Administration

Pursuant to section 7805(f) of the

Code, this Treasury decision has been

submitted to the Chief Counsel for the

Office of Advocacy of the Small Business

Administration for comment on its impact

on small business.

VII. Congressional Review Act

Pursuant to the Congressional Review

Act (5 U.S.C. 801 et seq.), the Office of

Information and Regulatory Affairs designated this rule as not a major rule, as

defined by 5 U.S.C. 804(2).

Drafting Information

The principal author of these regulations is Jamie Song, Office of the

Associate Chief Counsel (Procedure and

Administration). Other personnel from

the Treasury Department and the IRS

participated in the development of the

regulations.

List of Subjects in 26 CFR Part 300

Estate taxes, Excise taxes, Fees, Gift

taxes, Income taxes, Reporting and

recordkeeping requirements.

Bulletin No. 2023–43

Adoption of Amendments to the

Regulations

§300.11 Fee for obtaining a preparer

tax identification number.

Accordingly, 26 CFR part 300 is

amended as follows:

*****

(b) Fee. The fee to apply for or renew

a preparer tax identification number is

$11 per year and is in addition to the fee

charged by the contractor.

*****

(d) Applicability date. This section

applies to applications for or renewal of a

preparer tax identification number filed on

or after October 19, 2023.

PART 300—USER FEES

Paragraph 1. The authority citation for

part 300 continues to read in part as follows:

Authority: 31 U.S.C. 9701.

Par. 2. Section 300.11 is amended by

revising paragraphs (b) and (d) to read as

follows:

Bulletin No. 2023–43

1091

Douglas W. O’Donnell,

Deputy Commissioner for Services and

Enforcement.

Approved: September 25, 2023.

Lily Batchelder,

Assistant Secretary of the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register

September 29, 2023, 4:15 p.m., and published in the

issue of the Federal Register for October 4, 2023, 88

FR 68456)

October 23, 2023

Part III

NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1167, General Rules and Specifications for Substitute Forms and Schedules.

Rev. Proc. 2023-28

TABLE OF CONTENTS

Part 1 – INTRODUCTION TO SUBSTITUTE FORMS

Section 1.1 – Overview of Revenue Procedure 2023-28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1093

Section 1.2 – IRS Contacts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1094

Section 1.3 – What’s New. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1095

Section 1.4 – Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1095

Section 1.5 – Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1097

Part 2 – GENERAL GUIDELINES FOR SUBMISSIONS AND APPROVALS

Section 2.1 – General Specifications for Approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1098

Section 2.2 – Highlights of Permitted Changes and Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1100

Section 2.3 – Vouchers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1100

Section 2.4 – Restrictions on Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1103

Section 2.5 – Guidelines for Obtaining IRS Approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1103

Section 2.6 – Office of Management and Budget (OMB) Requirements for All Substitute Forms. . . . . . . . . . . . . . . . . . . . 1106

Part 3 – PHYSICAL ASPECTS AND REQUIREMENTS

Section 3.1 – General Guidelines for Substitute Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1107

Section 3.2 – Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1109

Section 3.3 – Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1110

Section 3.4 – Margins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1112

Section 3.5 – Miscellaneous Information for Substitute Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1112

Part 4 – ADDITIONAL RESOURCES

Section 4.1 – Guidance From Other Revenue Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1113

Section 4.2 – Electronic Tax Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1113

Part 5 – REQUIREMENTS FOR SPECIFIC TAX RETURNS

Section 5.1 – Tax Returns (Forms 1040, 1040-SR, 1120, etc.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1114

Section 5.2 – Changes Permitted to Graphics (Form 1040 or 1040-SR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1115

Part 6 – FORMAT AND CONTENT OF SUBSTITUTE RETURNS

Section 6.1 – Acceptable Formats for Substitute Forms and Schedules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1117

Section 6.2 – Additional Instructions for All Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1118

Part 7 – MISCELLANEOUS FORMS AND PROGRAMS

Section 7.1 – Specifications for Substitute Schedules K-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1120

Section 7.2 – Guidelines for Substitute Forms 8655. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1125

Section 7.3 – Guidelines for Substitute Image Character Recognition (ICR) Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1126

Part 8 – ADDITIONAL INFORMATION

Section 8.1 – Forms for Electronically Filed Returns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1127

Section 8.2 – Effect on Other Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1128

Section 8.3 – Exhibits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1128

October 23, 2023

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Bulletin No. 2023–43

Part 1

Introduction to Substitute Forms

Section 1.1 – Overview of Revenue Procedure 2023-28

1.1.1

Purpose

The purpose of this revenue procedure is to provide guidelines and general requirements for the

development, printing, and approval of the 2023 substitute tax forms. Approval will be based on

these guidelines. After review and approval, submitted forms will be accepted as substitutes for

official IRS forms.

1.1.2

Unique Forms

Certain unique specialized forms require the use of other publications that supplement this

publication. See Part 4.

1.1.3

Scope

The IRS accepts quality substitute tax forms that are consistent with the official forms and have no

adverse impact on processing. The IRS Substitute Forms Program (the Program) administers the

formal acceptance and processing of these forms nationwide. While this Program deals with paper

documents, it also reviews for approval other processing and filing forms used in electronic filing.

Only those substitute forms that fully comply with these requirements are acceptable. This revenue

procedure is updated as required to reflect pertinent tax year form changes and to meet processing

and/or legislative requirements.

1.1.4

Forms Covered by This

Revenue Procedure

1.1.5

Forms Not Covered by This

Revenue Procedure

Bulletin No. 2023–43

The following types of forms are covered by this revenue procedure.

•

IRS tax forms and their related schedules.

•

Worksheets as they appear in the instructions.

•

Applications for permission to file returns electronically and forms used as required

documentation for electronically filed returns.

•

Powers of Attorney.

•

Over-the-counter estimated tax payment vouchers.

•

Forms and schedules relating to partnerships, exempt organizations, and employee plans.

The following types of forms are not covered by this revenue procedure. Refer to the publication

for questions.

•

W-2 and W-3. See Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

•

W-2c and W-3c. See Pub. 1223, General Rules and Specifications for Substitute Forms W-2c

and W-3c.

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October 23, 2023

1.1.6

Other Information Not

Covered by This Revenue

Procedure

•

941 and attached schedules. See Pub. 4436, General Rules and Specifications for Substitute

Form 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and

Form 8974.

•

1096, 1097-BTC, 1098 series, 1099 series, 3921, 3922, 5498 series, W-2G, and 1042-S. See

Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498,

and Certain Other Information Returns.

•

1095-A, 1094-B, 1095-B, 1094-C, and 1095-C. See Pub. 5223, General Rules and

Specifications for Affordable Care Act Substitute Forms 1095-A, 1094-B, 1095-B, 1094-C,

and 1095-C.

•

8027. See Pub. 1239, Specifications for Electronic Filing of Form 8027, Employer’s Annual

Information Return of Tip Income and Allocated Tips.

•

Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced.

•

Form 5500 series (for more information on these forms, go to the Department of Labor website

at www.efast.dol.gov).

•

Form 8717 bar-coded form requiring separate approval.

•

Forms used internally by the IRS.

•

State tax forms.

•

Forms developed outside the IRS.

The following information is not covered by this revenue procedure.

•

Requests for information or documentation initiated by the IRS.

•

General Instructions and Specific Instructions (these are not reviewed by the Program).

Section 1.2 – IRS Contacts

1.2.1

Where To Send Substitute

Forms

Send your substitute forms for approval to the following offices. Do not send forms with taxpayer

data.

Form

5500

October 23, 2023

8717

Software developer vouchers (see

Sections 2.3.7–2.3.9)

Office and Address

Check EFAST2 information at the Department of

Labor website at www.efast.dol.gov.

Robin.M.Joecken@irs.gov

Internal Revenue Service

Attn: Jason Lane

3211 S. Northpointe Dr.

Santa Fe Bldg. Rm 3018

Fresno, CA 93725

Jason.L.Lane@irs.gov

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Form

ACA Forms 1094-B, 1095-B, 1094-C, and

1095-C (for more information, see Pub.

5223), and Schedule K-1 forms must be

emailed for scannability testing.

Schedule K-1 2-D bar-coded forms

All others covered by this publication (see

Section 1.1.4)

Office and Address

scrips@irs.gov

For mailing addresses for sending Schedule K-1

2-D bar-coded forms for testing, see Section 7.1.6.

Internal Revenue Service

Attn: Substitute Forms Program

SE:W:CAR:MP:P:TP:TP

5000 Ellin Road, Mail Stop C6-110

Lanham, MD 20706

substituteforms@irs.gov

Section 1.3 – What’s New

1.3.1

What’s New

The following changes have been made to this year’s revenue procedure.

•

.01 Editorial changes. We made editorial changes as needed and eliminated repetitive

information.

•

.02 Forms 5300 and 5307 can no longer be submitted as substitute forms. Forms 5300

and 5307 must be submitted electronically through Pay.gov. For more information about

electronically submitting Forms 5300 and 5307, go to IRS.gov/Form5300 and IRS.gov/

Form5307.

•

.03 Form 8905 is discontinued. Form 8905 is discontinued and can no longer be filed with

Forms 5300 and 5307.

•

.04 Section 7.3 – Guidelines for Substitute Image Character Recognition Forms added.

We added suggestions that may be used as a guideline for creating easily scanned substitute

tax forms. If you choose to participate, please use the Form 1040 format provided in the new

Exhibit C and Exhibit D.

Section 1.4 – Definitions

1.4.1

Substitute Form

A tax form (or related schedule) that differs in any way from the official version and is intended to

replace the form that is printed and distributed by the IRS. This term also covers those approved

substitute forms exhibited in this revenue procedure.

1.4.2

Printed/ Preprinted Form

A form produced using conventional printing processes or a printed form which has been

reproduced by photocopying or a similar process.

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October 23, 2023

1.4.3

Preprinted Pin- Fed Form

A printed form that has marginal perforations for use with automated and high-speed printing

equipment.

1.4.4

Computer- Prepared

Substitute Form

A preprinted form in which the taxpayer’s tax entry information has been inserted by a computer,

computer printer, or other computer-type equipment.

1.4.5

Computer- Generated

Substitute Tax Return or

Form

A tax return or form that is entirely designed and printed using a computer printer on plain white

paper. This return or form must conform to the physical layout of the corresponding IRS form,

although the typeface may differ. The text should match the text on the officially printed form as

closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.

Exception. All jurats (perjury statements) must be reproduced verbatim.

1.4.6

Manually Prepared Form

A preprinted reproduced form in which the taxpayer’s tax entry information is entered by an

individual using a pen, a pencil, or other nonautomated equipment.

1.4.7

Graphics

Parts of a printed tax form that are not tax amount entries or required text. Examples of graphics

are line numbers, captions, shadings, special indicators, borders, rules, and strokes created by

typesetting, photographics, photocomposition, etc.

1.4.8

Acceptable Reproduced

Form

A legible photocopy or an exact replica of an original form.

1.4.9

Supporting Statement

(Supplemental Schedule)

A document providing detailed information to support a line entry on an official or approved

substitute form and filed with (attached to) a tax return.

1.4.10

Specific Form Terms

The following specific terms are used throughout this revenue procedure in reference to all

substitute forms: format, sequence, line reference, item caption, and data entry field.

1.4.11

Format

The overall physical arrangement and general layout of a substitute form.

1.4.12

Sequence

Sequence is an integral part of the total format requirement. The substitute form should show the

same numeric and logical placement order of data as shown on the official form.

October 23, 2023

Note. A supporting statement is not a tax form and does not take the place of an official form.

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Bulletin No. 2023–43

1.4.13

Line Reference

The line numbers, letters, or alphanumerics used to identify each captioned line on an official

form. These line references are printed to the immediate left of each caption and/or data entry

field.

1.4.14

Item Caption

The text on each line of a form, which identifies the data required.

1.4.15

Data Entry Field

Designated areas for the entry of data such as dollar amounts, quantities, responses, and checkboxes.

1.4.16

Advance Draft

A draft version of a new or revised form may be posted to the IRS website (IRS.gov/DraftForms)

for information purposes. Substitute forms may be submitted based on these advance drafts, but

any submitter that receives forms approval based on these early drafts is responsible for monitoring

and revising forms to reflect any revisions in the final forms provided by the IRS.

1.4.17

Approval

Generally, approval could be in writing or assumed after 20 business days from our receipt for

forms that have not been substantially changed by the IRS. This does not apply to newly created

or substantially revised IRS forms. However, the Program reserves the right to notify vendors of

any inaccuracies even after 20 business days have lapsed.

1.4.18

National Association

of Computerized Tax

Processors (NACTP)

The National Association of Computerized Tax Processors (NACTP) is a nonprofit association

that represents tax processing software and hardware developers, electronic filing processors, tax

form publishers, tax processing service bureaus, and payroll processors. The association promotes

standards in tax processing to advance efficient and effective tax filing. For more information, see

NACTP.org.

Section 1.5 – Agreement

1.5.1

Important Stipulation of

This Revenue Procedure

Bulletin No. 2023–43

Any person or company who uses substitute forms and makes all or part of the changes specified

in this revenue procedure agrees to the following stipulations.

•

The IRS presumes that any required changes are made in accordance with these procedures

and will not be disruptive to the processing of the tax return.

•

Should any of the changes be disruptive to the IRS’s processing of the tax return, the person or

company agrees to accept the determination of the IRS as to whether the form may continue

to be filed.

•

The person or company agrees to work with the IRS in correcting noted deficiencies.

Notification of deficiencies may be made by any combination of letter, email, or phone contact

and may include the request for the resubmission of unacceptable forms.

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October 23, 2023

1.5.2

Response Policy and

Stipulations

The Program will email confirmation of receipt of your forms submission, if possible. Even if

you do not receive emailed confirmation of receipt, you will receive an emailed “submission

receipt,” which will provide feedback on your submission. If the Program anticipates problems

in completing the review of your submission within the 20-business-day period, the Program will

send an interim email notifying you of the extended period for review.

Once the substitute forms have been approved by the Program, you can release them after the final

versions of the forms have been issued by the IRS. Before releasing the forms, you are responsible

for updating forms approved as draft and for making form changes requested.

The policy has the following stipulations.

•

This 20-business-day policy applies to electronic submissions only. It does not apply to

substitute submissions mailed to the Program.

•

The policy applies to submissions of 15 (optimal) or fewer items and submissions containing

75 pages or less. Submissions of more than 15 items may require additional review time.

•

If you send a large number of submissions within a short period of time, processing may be

delayed.

•

Delays in processing could occur if the Program finds significant errors in your submission or

has experienced an increase in submissions. The Program will send you an interim email in

this case.

•

Any anticipated problems in processing your submission within the 20-business-day period

will generate an interim email on or about the 15th business day.

•

If any significant inaccuracies are discovered after the 20-business-day period, the Program

reserves the right to inform you and will require that changes be made to correct the

inaccuracies.

•

The policy does not apply to substantially revised forms or to new forms created by the IRS

for which you have already made an initial submission.

Part 2

General Guidelines for Submissions and Approvals

Section 2.1 – General Specifications for Approval

2.1.1

Overview

October 23, 2023

If you produce any substitute tax forms that fully comply or follow the changes specifically

outlined by the Program, then you can generate your own substitute forms without further

approval. Also, if your substitutes have received approval in the past, and there are no substantial

formatting or text changes for the tax year, then changes can be made without additional approval.

If your changes are more extensive, you must get IRS approval before using substitute forms. More

extensive changes include different font style, decreasing or increasing the font size of caption

titles, adjusting or omitting format/layout elements, changing page orientation, and repositioning

line items, tables, and legends.

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Bulletin No. 2023–43

2.1.2

Email Submissions

The Program accepts submissions of substitute forms for review and approval via email. The

email address is substituteforms@irs.gov. Include the term “PDF Submissions” on the subject

line.

Follow these guidelines.

•

The emailed submission should include all the forms you wish to submit in one Portable

Document Format (PDF) file. Do not email or attach each form individually.

•

The emailed submission should include a maximum of 3 PDF files to include a checksheet,

a cover letter or accompanying statement, and a single PDF file that includes all of the forms

listed on your checksheet, cover letter, or accompanying statement.

•

A submission should contain a maximum of 15 forms.

•

An approval checksheet listing the forms you are submitting should always be included in

the PDF file along with the forms. Excluding the checksheet can slow the reviewing process

down, which can result in a delayed response to your submission. See a sample checksheet in

Exhibit B.

•

Optimize PDF files before submitting.

•

The maximum allowable email attachment is 2.5 megabytes.

•

The Program accepts zip files.

•

To alleviate delays during the peak time of September through December, submit advance

draft forms as early as possible.

If the guidelines are not followed, you may need to resubmit.

Emailing PDF submissions will not expedite review and approval. Submitting your substitute

forms package via email is the preferred and suggested method for submitting forms for review.

If, for some reason, you are not able to email your submission(s), you can mail your submission(s)

to:

Internal Revenue Service

Attn: Substitute Forms Program

SE:W:CAR:MP:P:TP:TP

5000 Ellin Road, Mail Stop C6-110

Lanham, MD 20706

2.1.3

Expediting the Process

Bulletin No. 2023–43

Follow these basic guidelines for expediting the process.

•

Always include a checksheet for the Program’s response.

•

Include an accompanying statement identifying most, if not all, of the deviations your

substitute forms may have from the official IRS versions.

•

Follow the guidance in this publication for general substitute form guidelines. Follow the

guidance in specialized publications produced by the Program for other specific forms.

•

To spread out the workload, send in draft versions of substitute forms when they are posted.

Note. Be sure to make any changes to approved drafts before releasing final versions.

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October 23, 2023

2.1.4

Schedules

Some schedules are considered to be an integral part of a complete tax return and must be submitted

as part of the form. Other schedules may be submitted separately and do not need to be included

with the tax form.

2.1.5

Examples of Schedules That

Must Be Submitted With

the Return

Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is an example

of this situation. Its Schedules A through U have pages numbered as part of the basic return. For

Form 706 to be considered for approval, the entire form, including Schedules A through U, as well

as Schedule PC, must be submitted.

2.1.6

Examples of Schedules

That Can Be Submitted

Separately

Schedules C, D, and E for Form 1040 or 1040-SR are examples of schedules that can be submitted

separately. Although printed by the IRS as a supplement to Form 1040 or 1040-SR, these schedules

are not required to be submitted for approval with Form 1040 or 1040-SR. These schedules may

be separated from Form 1040 or 1040-SR and submitted as substitute forms.

2.1.7

Use and Distribution of

Unapproved Forms

The IRS is continuing a program to identify and contact tax return preparers, forms developers,

and software publishers who use or distribute unapproved forms that do not conform to this

revenue procedure. The use of unapproved forms hinders the processing of the returns.

Section 2.2 – Highlights of Permitted Changes and Requirements

2.2.1

Methods of Reproducing

IRS Forms

There are methods of reproducing IRS printed tax forms suitable for use as substitutes without

prior approval.

•

You can photocopy most tax forms and use them instead of the official ones. The entire

substitute form, including entries, must be legible.

•

You can reproduce any current tax form as cut sheets, snap sets, and marginally punched, pinfed forms as long as you use an official IRS version as the master copy.

•

You can reproduce a form that requires a signature as a valid substitute form. Many tax forms

(including returns) have a taxpayer signature requirement as part of the form layout. The jurat/

perjury statement/ signature line areas must be retained and worded exactly as on the official

form. The requirement for a signature, by itself, does not prohibit a tax form from being

properly computer generated.

Section 2.3 – Vouchers

2.3.1

Overview

October 23, 2023

All payment vouchers (Forms 940-V, 941-V, 943-V, 944-V, 945-V, 1040-ES, 1040-V, 1041-V,

and 2290-V) must be reproduced in conjunction with their forms. Substitute vouchers must be

the same size as the officially printed vouchers. Vouchers that are prepared for printing on a laser

printer may include a scan line.

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Bulletin No. 2023–43

2.3.2

Scan Line Specifications

NNNNNNNNN

XXXX

NNNNNN

NNN

Item: A

Social Security Number/Employer Identification Number/Individual Taxpayer

Identification Number/Adoption Taxpayer Identification Number (SSN/EIN/ ITIN/ATIN)

has 9 numeric (N) spaces.

Check Digits have 2 alpha (A) spaces.

Name Control has 4 alphanumeric (X) spaces.

Master File Tax (MFT) Code has 2 numeric (N) spaces (see Section 2.3.3).

Taxpayer Identification Number (TIN) Type has 1 numeric (N) space (see Section 2.3.4).

Tax Period has 6 numeric (N) spaces in year/month format (YYYYMM).

Transaction Code has 3 numeric (N) spaces.

2.3.3

MFT Code

Code Number for Forms:

2.3.4

TIN Type

2.3.5

Voucher Size

Bulletin No. 2023–43

•

1040 (family) – 30,

•

940 – 10,

•

941 – 01,

•

943 – 11,

•

944 – 14,

•

945 – 16,

•

1041-V – 05,

•

2290 – 60, and

•

4868 – 30.

Type Number for:

•

Form 1040 (family) and Form 4868 – 0; and

•

Forms 940, 941, 943, 944, 945, 1041-V, and 2290 – 2.

The voucher size must be exactly 8.0″ x 3.25″ (Forms 1040-ES and 1041-ES must be 7.625″ x

3.0″). The document scan line must be vertically positioned 0.25 inch from the bottom of the scan

line to the bottom of the voucher. The last character on the right of the scan line must be placed

3.5 inches from the right leading edge of the document. The minimum required horizontal clear

space between characters is 0.014 inch. The line to be scanned must have a clear band 0.25 inch

in height from top to bottom of the scan line, and from border to border of the document. “Clear

band” means no printing except for dropout ink.

1101

October 23, 2023

2.3.6

Print and Paper Weight

Vouchers must be imaged in black ink using OCR A, OCR B, or Courier 10. These fonts may not

be mixed in the scan line. The horizontal character pitch is 10 CPI. The preferred paper weight is

20 to 24 pound OCR bond.

2.3.7

Specifications for Software

Developers

Certain vouchers may be reproduced for use in the IRS lockbox system. These include the 1040V, 1040-ES, 1041-V, the 94X family, and 2290 vouchers. Software developers must follow these

specific guidelines to produce scannable vouchers strictly for lockbox purposes. Also see Exhibit A.

•

The total depth must be 3.25 inches.

•

The scan line must be 0.5 inch from the bottom edge and 1.75 inches from the left edge of the

voucher and left justified.

•

Software developers’ vouchers must be 8.5 inches wide (instead of 8 inches with a cut line).

Therefore, no vertical cut line is required.

•

Scan line positioning must be exact.

•

Do not use the over-the-counter format voucher and add the scan line to it.

•

All scanned data must be in 12-point OCR A font.

•

The 4-digit NACTP ID code or IRS source code should be placed under the payment indicator arrow.

•

Windowed envelopes must not display the scan line in order to avoid disclosure and privacy issues.

Note. All software developers must ensure that their software uses OCR A font so taxpayers will

be able to print the vouchers in the correct font.

2.3.8

Specific Line Positions

Follow these line specifications for entering taxpayer data in the lockbox vouchers.

Start Row Start Column Width End Column

Line Specifications for Taxpayer Data:

Taxpayer Name

Taxpayer Address, Apt.

Taxpayer City, State, ZIP

Foreign Country Name

Foreign Province/County

Foreign Postal Code

Mail Name

Mail Address

Mail City, State, ZIP

Line Specifications for:

Scan Line

n/a

Line Specifications for Mail To Data:

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2.3.9

How To Get Approval

Send an approval sheet with each form type for IRS signature to Jason Lane at Jason.L.Lane@irs.

gov. You should include in the email an example of each type of voucher the site will be testing.

Note. Do not mail any test vouchers to Jason Lane.

You are required to send 25 voucher samples of each form in PDF format by December 8, 2023.

You should email the test vouchers to raul.t.mariduena@jpmorgan.com. You can also print the

vouchers and send them to his mailing address at:

JP Morgan Chase

Attn: Raul Mariduena

830 Tyvola Road, Suite 114

Charlotte, NC 28217

For further information, contact Jason Lane at Jason.L.Lane@irs.gov, or at 559-550-8740 (not

toll free).

Section 2.4 – Restrictions on Changes

2.4.1

What You Cannot Do

to Forms Suitable for

Substitute Tax Forms

You cannot, without prior IRS approval, change any IRS tax form or use your own (nonapproved)

versions including graphics, unless specifically permitted by this revenue procedure. See Sections

2.5.7 through 2.5.11.

You cannot adjust any of the graphics on Form 1040 or 1040-SR (except in those areas specified

in Part 5 of this revenue procedure) without prior approval from the Program.

You cannot rearrange or redistribute data entry fields, and/or allow data entry fields to flow from

one page onto the next (that is, each page of a substitute form must contain the exact number of

data entry fields as there are on the official IRS form). The order of information on the substitute

form must be identical to the IRS version of the form. Publications for specific substitute forms

will state allowances for those respective forms.

Note. The 20-business-day turnaround policy may not apply to extensive changes.

Section 2.5 – Guidelines for Obtaining IRS Approval

2.5.1

Basic Requirements

Preparers who submit substitute privately designed, privately printed, computer-generated, or

computer-prepared tax forms must develop these substitutes using the guidelines established in

this part. These forms, unless there is an exception outlined by this revenue procedure, must be

approved by the IRS before being filed.

2.5.2

Conditional Approval

Based on Advance Drafts

The IRS cannot grant final approval of your substitute form until the official form has been

published. However, the IRS posts advance draft forms on its website at IRS.gov/DraftForms.

Bulletin No. 2023–43

Submission of proposed substitutes of these advance draft forms is encouraged, and conditional

approval will be granted based solely on these early drafts. These advance drafts are subject to

significant change before forms are finalized. If these advance drafts are used as the basis for your

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October 23, 2023

substitute forms, you will be responsible for subsequently updating your final forms to agree with

the final official version. These revisions need not be resubmitted for further approval.

Note. Approval of forms based on advance drafts will not be granted after the final version of an

official form is published.

2.5.3

Submission Procedures

Follow these general guidelines when submitting substitute forms for approval.

•

Any alteration of forms must be within the limits acceptable to the IRS. It is possible that,

from one filing period to another, a change in law or a change in internal need (processing,

audit, compliance, etc.) may change the allowable limits for the alteration of the official form.

•

When approval of any substitute form (other than those exceptions specified in Part 1, Section

1.2) is requested, a sample of the proposed substitute form should be emailed for consideration

to the Program at the address shown in Section 1.2.1.

•

Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more than

one type of return (for example, Forms 1040, 1040-SR, 1041, 1120, etc.) should be submitted

only once for approval, without regard to the number of different tax returns with which they

may be associated. Also, all pages of multi-page forms or returns should be submitted in the

same package.

2.5.4

Approving Offices

Because only the Program is authorized to approve substitute forms, unnecessary delays may

occur if forms are sent to the wrong office. You may receive an interim letter about the delay.

The Program may then coordinate the response with the originator responsible for revising that

particular form. Such coordination may include allowing the originator to officially approve the

form. No IRS office is authorized to allow deviations from this revenue procedure.

2.5.5

IRS Review of Software

Programs, etc.

The IRS does not review or approve the logic of specific software programs, nor does the IRS

confirm the calculations on the forms produced by these programs. The accuracy of the program

remains the responsibility of the software package developer, distributor, or user.

The Program is primarily concerned with the pre-filing quality review of the final forms that are

expected to be processed by IRS field offices. For this purpose, you should submit forms without

including any taxpayer information such as names, addresses, monetary amounts, etc.

If the software used is programmed to produce copies with populated fields, then you must use

dummy information. This will allow the Program to review and provide feedback or approval.

Vendors should use “0” for all number values and “X” for any information that requires alpha

characters.

2.5.6

When To Send Proposed

Substitutes

Proposed substitutes, which are required to be submitted per this revenue procedure, should be

sent as much in advance of the filing period as possible. This is to allow adequate time for analysis

and response.

2.5.7

Accompanying Statement

When submitting sample substitutes, you should include an accompanying statement that lists

each form number and its changes from the official form (position, arrangement, appearance, line

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Bulletin No. 2023–43

numbers, additions, deletions, etc.). With each of the items, you should include a detailed reason

for the change.

When requesting approval, include a checksheet. Checksheets expedite the approval process. The

checksheet may look like the example in Exhibit B displayed in the back of this procedure or may

be one of your own design. Include your email address on the checksheet.

2.5.8

Approval/ Nonapproval

Notice

The Program will email the checksheet or an approval letter to the originator, unless:

•

The requester has asked for a formal letter, or

•

Significant corrections to the submitted forms are required.

Notice of approval may impose qualifications before using the substitutes. Notices of unapproved

forms may specify the changes required for approval and require resubmission of the form(s) in

question. When appropriate, you will be contacted by telephone.

2.5.9

Duration of Approval

Most signature tax returns and many of their schedules and related forms have the tax year printed

in the upper right corner. Approvals for these annual forms are usually good for 1 calendar year

(January through December of the year of filing). Quarterly tax forms in the 94X series and Form

720 require approval for any quarter in which the form has been revised.

Because changes are usually made to an annual form every year, each new filing season generally

requires a new submission of a substitute form. Very rarely is updating the preprinted year the

only change made to an annual form. However, if no significant content, formatting, or layout

changes were made to a tax form, then review and approval received for the prior tax year can be

carried over into the current tax year.

2.5.10

Limited Continued Use of

an Approved Change

Limited changes approved for one tax year may be allowed for the same form in the following

tax year. Examples are the use of abbreviated words, revised form spacing, compressed text lines,

shortened captions, etc., which do not change the integrity of lines or text on the official forms.

If the vendor or filer makes substantial changes to the form, new substitutes must be submitted

for approval. If the vendor or filer makes only minor editorial changes to the form, or makes any

changes that mirror changes the IRS makes to the form’s official version, the new substitute does

not need to be submitted for approval. It is the responsibility of each vendor who has been granted

permission to produce substitute forms to monitor and revise forms to mirror any revisions to the

official forms made by the IRS. If there are any questions, contact the Program.

2.5.11

When Approval Is Not

Required

Bulletin No. 2023–43

If you received approval for a specific change on a form last year, you may make the same change

this year if the item is still present on the official form.

•

The new substitute form does not have to be submitted to the IRS and approval based on that

change is not required.

•

However, the new substitute form must conform to the official current year IRS form in

other respects, such as date, Office of Management and Budget (OMB) approval number,

attachment sequence number, Paperwork Reduction Act Notice statement, arrangement, item

caption, line number, line reference, data sequence, etc.

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October 23, 2023

•

The new substitute form must also comply with changes to the guidelines in this revenue

procedure. This procedure may have eliminated, added to, or otherwise changed the

guideline(s) that affected the change approved in the prior year.

•

An approved change is authorized only for the period from a prior tax year substitute form to

a current tax year substitute form.

Exception. Forms with temporary, limited, or interim approvals (or with approvals that state a

change is not allowed in any other tax year) are subject to review in subsequent years.

2.5.12

Required Copies

Generally, you must send us one copy of each form being submitted for approval. However, if

you are producing forms for different computer platforms (for example, Microsoft vs. Apple),

different tax preparation software (for example, TurboTax® vs. TaxSlayer®), or different types

of printers (for example, inkjet vs. impact), and these forms differ significantly in appearance,

submit one copy for each type of platform, tax preparation software, or printer.

2.5.13

Requestor’s Responsibility

Following receipt of an initial approval for a substitute forms package or a software output

program to print substitute forms, it is the responsibility of the originator (designer or distributor)

to provide client firms or individuals with forms that meet the IRS’s requirements for continuing

acceptability. Examples of this responsibility include:

2.5.14

Source Code

•

Using the prescribed print paper, font size, legibility, state tax data deletion, etc.; and

•

Informing all users of substitute forms of the legal requirements of the Paperwork Reduction

Act Notice, which is generally found in the instructions for the official IRS forms.

The Program will assign a unique source code to each firm that submits substitute forms for

approval. This source code will be a permanent identifier that must be used on every submission

by a particular firm.

The source code consists of three alpha characters and should generally be printed under or to the

left of the “Paperwork Reduction Act” statement. Vendors must ensure that the source code is not

printed too close to or within the left or bottom 0.5 inch margin to avoid the source code from

being cut off during printing.

Section 2.6 – Office of Management and Budget (OMB) Requirements for All Substitute Forms

2.6.1

OMB Requirements for All

Substitute Forms

October 23, 2023

There are legal requirements of the Paperwork Reduction Act of 1995 (the Act). Public Law 10413 requires the following.

•

OMB approves all IRS tax forms that are subject to the Act.

•

Each IRS form contains (in the upper right corner) the OMB number, if assigned.

•

Each IRS form (or its instructions) states why the IRS needs the information, how it will be

used, and whether or not the information is required to be furnished to the IRS.

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Bulletin No. 2023–43

This information must be provided to every user of official or substitute IRS forms or instructions.

2.6.2

Application of the

Paperwork Reduction Act

2.6.3

Required Explanation to

Users

On forms that have been assigned OMB numbers:

•

All substitute forms must contain in the upper right corner the OMB number that is on the

official form, and

•

The required format is: OMB No. 1545-XXXX (preferred) or OMB # 1545-XXXX

(acceptable).

You must inform the users of your substitute forms of the IRS use and collection requirements

stated in the instructions for official IRS forms.

•

If you provide your users or customers with the official IRS instructions, each form must

retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork

Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the

lower left corner of the forms).

•

This notice reads, in part, “We ask for tax return information to carry out the tax laws of the

United States. . . .”

Note. If no IRS instructions are provided to users of your forms, the exact text of the Paperwork

Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice) must be

furnished separately or on the form.

2.6.4

Finding the OMB Number

and Paperwork Reduction

Act Notice

The OMB number and the Paperwork Reduction Act Notice, or references to it, may be found

printed on an official form (or its instructions). The number and the notice are included on the

official paper format and in other formats produced by the IRS.

Part 3

Physical Aspects and Requirements

Section 3.1 – General Guidelines for Substitute Forms

3.1.1

General Information

The official form is the standard. Because a substitute form is a variation from the official form,

you should know the requirements of the official form for the year of use before you modify it to

meet your needs. To obtain the most frequently used tax forms, go to IRS.gov/Forms.

3.1.2

Design

Each form must follow the design of the official form as to format arrangement, item caption, line

numbers, line references, and sequence.

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October 23, 2023

3.1.3

State Tax Information

Prohibited

Generally, state tax information must not appear on the federal tax return, associated form, or

schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or required

by, the federal return (for example, state and local income taxes on Schedule A (Form 1040)).

3.1.4

Vertical Alignment of

Amount Fields

IF a form is to be...

THEN...

manually prepared and the official

IRS form still has a separate cents

entry field

computer generated

computer prepared

3.1.5

Attachment Sequence

Number

the entry column must have a vertical line or some

type of indicator in the amount field to separate

dollars from cents, and

the cents column must be at least 0.3 inch wide.

vertically align the amount entry fields where

possible, and

use one of the following amount formats.

a) 0,000,000.

b) 0,000,000.00.

you may remove the vertical line in the amount field

that separates dollars from cents, and

use one of the following amount formats.

a) 0,000,000.

b) 0,000,000.00.

Many individual income tax forms have a required “attachment sequence number” located just

below the year designation in the upper right corner of the form. The IRS uses this number to

indicate the order in which forms are to be attached to the tax return for processing. Some of the

attachment sequence numbers may change from year to year.

The following apply to computer-prepared forms.

3.1.6

Assembly of Forms

•

The sequence number may be printed in no less than 12-point boldface type and centered

below the form’s year designation.

•

The sequence number may also be placed following the year designation for the tax form and

separated with an asterisk.

•

The actual number may be printed without labeling it the “Attachment Sequence Number.”

When developing software or forms for use by others, inform your customers/clients that the

order in which the forms are arranged may affect the processing of the package. A return must be

arranged in the order indicated below.

IF the form is...

1040 or 1040-SR

any other tax return

(Form 1120, 1120-S,

1065, 1041,

etc.)

October 23, 2023

THEN the sequence is...

• Form 1040 or 1040-SR, and schedules and forms in attachment

sequence number order.

• the tax returns, directly associated schedules (Schedule D, etc.),

directly associated forms, additional schedules in alphabetical

order, and additional forms in numerical order.

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Bulletin No. 2023–43

Supporting statements should then follow in the same sequence as the forms they support.

Additional information required should be attached last.

In this way, the forms are received in the order in which they must be processed. If you do not send

returns to the IRS in order, processing may be delayed.

3.1.7

Paid Preparer’s

Information and Signature

Area

On Forms 1040, 1040-SR, and 1120, and any other applicable tax forms, the “Paid Preparer Use

Only” area may not be rearranged or relocated. You may, however, add three extra lines to the

paid preparer’s address area, and remove the horizontal rules in that area without prior approval.

3.1.8

Some Common Reasons

for Requiring Changes to

Substitute Forms

Some reasons that substitute form submissions may require changes include the following.

•

Shading areas incorrectly.

•

Failing to include a reference to the location of the Paperwork Reduction Act Notice.

•

Not including parentheses for losses.

•

Not including “Attach Statement” when appropriate.

•

Including line references or entry spaces that do not match the official form.

•

Printing text that is different from the official form.

•

Altering the jurat (perjury statement).

•

Having an incorrect OMB number.

•

Including the IRS catalog number (Cat. No.) on the form.

•

Failing to include preprinted amounts in entry fields.

•

Missing IRS source code or NACTP software ID.

•

Missing 3-letter FFF code on paper Form 1040 from tax software companies that participate

in the IRS Free File Program.

•

Incorrect dimensions.

Section 3.2 – Paper

3.2.1

Paper Content

Bulletin No. 2023–43

The paper must be:

•

Chemical wood writing paper that is equal to or better than the quality used for the official

form,

•

At least 18 pound (17″ x 22″, 500 sheets), or

•

At least 50 pound offset book (25″ x 38″, 500 sheets).

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October 23, 2023

3.2.2

Paper With Chemical

Transfer Properties

There are several kinds of paper prohibited for substitute forms. These are:

Carbon-bonded paper, and

Chemical transfer paper except when the following specifications are met.

Each ply within the chemical transfer set of forms must be labeled.

Only the top ply (ply one and white in color), the one that contains chemical on the back

only (coated back), may be filed with the IRS.

Example. A set containing three plies would be constructed as follows: ply one (coated back),

“Federal Return, File with IRS”; ply two (coated front and back), “Taxpayer’s copy”; and ply

three (coated front), “Preparer’s copy.”

The file designation, “Federal Return, File with IRS” for ply one, must be printed in the bottom

right margin (just below the last line of the form) in 12-point boldface type.

It is not mandatory, but recommended, that the file designation “Federal Return, File with IRS” be

printed in a contrasting ink for visual emphasis.

3.2.3

Paper and Ink Color

It is preferred that the color and opacity of paper substantially duplicate that of the original form.

This means that your substitute must be printed in black ink and may be on white paper or on the

colored paper the IRS form is printed on. Form 1040 or 1040-SR substitute reproductions may be

in black ink without the colored shading. The only exception to this rule is Form 1041-ES, which

should be printed with a PMS 100 yellow shading in the color-screened area. This is necessary to

assist us in expeditiously separating this form from the very similar Form 1040-ES.

3.2.4

Page Size

Substitute or reproduced forms and computer-prepared/-generated substitutes may be the same

size as the official form or they may be the standard commercial size (8.5″ x 11″). The thickness

of the stock cannot be less than 0.003 inch.

Section 3.3 – Printing

3.3.1

Printing Medium

The private printing of all substitute tax forms must be by conventional printing processes,

photocopying, computer graphics, or similar reproduction processes.

3.3.2

Legibility

All forms must have a high standard of legibility as to printing, reproduction, and fill-in matter.

Entries of taxpayer data may be no smaller than 8 points. The IRS reserves the right to reject those

with poor legibility. The ink and printing method used must ensure that no part of a form (including

text, graphics, data entries, etc.) develops “smears” or similar quality deterioration. This standard

must be followed for any subsequent copies or reproductions made from an approved master

substitute form, either during preparation or during IRS processing.

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3.3.3

Type Font

Many federal tax forms are printed using Helvetica as the basic type font. It is preferred that you

use this type font when composing substitute forms.

3.3.4

Print Spacing

Substitute forms should be printed using a 6 lines/inch vertical print option. They should also be

printed horizontally in 10-pitch pica (that is, 10 print characters per inch) or 12-pitch elite (that is,

12 print positions per inch).

3.3.5

Image Size

The image size of a printed substitute form should be as close as possible to that of the official

form. You may omit any text on both computer-prepared and computer-generated forms that is

solely instructional.

3.3.6

Title Area Changes

To allow a large top margin for marginal printing and more lines per page, the title line(s) for all

substitute forms (not including the form’s year designation and sequence number, when present)

may be photographically reduced by 40% or reset as one line of type. When reset as one line, the

type size may be no smaller than 14 points. You may omit “Department of the Treasury—Internal

Revenue Service” and all references to instructions in the form’s title area.

3.3.7

Remove Government

Publishing Office Symbol

and IRS Catalog Number

When privately printing substitute tax forms, the Government Publishing Office (GPO) symbol

and/or jacket number must be removed. In the same place using the same type size, print the EIN

of the printer or designer, or the IRS-assigned source code. (Preferably, this last number should be

printed in the lower left area of the first page of each form.) Also, remove the IRS catalog number

(Cat. No.) and the recycle symbol if the substitute is not produced on recycled paper.

3.3.8

Printing Single- Page

Forms

Substitute single-page forms should be reproduced the same as IRS single-page forms. Other

forms or schedules should not be printed on the back or on blank portions of a single-page form.

However, printing instructions on the back or on blank portions of a single-page form is acceptable.

3.3.9

Photocopy Equipment

The IRS does not undertake to approve or disapprove the specific equipment or process used in

reproducing official forms. Photocopies of forms must be entirely legible and satisfy the conditions

stated in this and other revenue procedures.

3.3.10

Reproductions

Reproductions of official forms and substitute forms that do not meet the requirements of this

revenue procedure may not be filed instead of the official forms. Illegible photocopies are subject

to being returned to the filer for resubmission of legible copies.

3.3.11

Removal of Instructions

Generally, you may remove references to instructions. No prior approval is needed. However, in

some instances, you may be requested to include references to instructions.

Exception. The words “For Paperwork Reduction Act Notice, see instructions” must be retained,

or a similar statement indicating the location of the Notice must be provided on each form.

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October 23, 2023

Section 3.4 – Margins

3.4.1

Margin Size

3.4.2

Marginal Printing

The format of a reproduced tax form when printed on the page must have margins on all sides at

least as large as the margins on the official form. This allows room for IRS employees to make

necessary entries on the form during processing.

•

A 0.5 inch to 0.25 inch margin must be maintained across the top, bottom, and both sides of

all substitute forms.

•

The marginal, perforated strips containing pin-fed holes must be removed from all forms prior

to filing with the IRS.

Prior approval is not required for the marginal printing allowed when printed on an official form

or on a photocopy of an official form.

•

With the exception of the actual tax return forms (for example, Forms 1040, 1040-SR, 1120,

940, 941, etc.), you may print in the left vertical margin and in the left half of the bottom

margin.

•

Printing is never allowed in the top right margin of the tax return form (for example, Forms

1040, 1040-SR, 1120, 940, 941, etc.). The IRS uses this area to imprint a Document Locator

Number for each return. There are no exceptions to this requirement.

Section 3.5 – Miscellaneous Information for Substitute Forms

3.5.1

Filing Substitute Forms

To be acceptable for filing, a substitute form must print out in a format that will allow the filer to

follow the same instructions that accompany official forms. The form must be legible, must be on

the appropriately sized paper, and must include a jurat (perjury statement) where one appears on

the published form.

3.5.2

Caution to Software

Publishers

The IRS has received returns produced by software packages with approved output where either

the form heading was altered or the lines were spaced irregularly. This produces an illegible or

unrecognizable return or a return with the wrong number of pages. While many of these problems

are caused by individual printer differences, they may delay input of return data and, in some

cases, generate correspondence to the taxpayer. Therefore, in the instructions to the purchasers

of your product, both individual and professional, stress that their returns will be processed more

efficiently if they are properly formatted. This includes:

October 23, 2023

•

Having the correct form numbers, six-digit form identifying numbers, and titles at the top of

the return; and

•

Submitting the same number of pages as if the form were an official IRS form with the line

items on the proper pages.

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3.5.3

Caution to Producers of

Software Packages

If you are producing a software package that generates name and address data onto the tax return,

do not, under any circumstances, program either the IRS preprinted check digits or a practitionerderived name control to appear on any return prepared and filed with the IRS.

3.5.4

Programming to Print

Forms

Whenever applicable:

•

Use only the following label information format for single filers: JOHN Q. DOE 000 OAK

DRIVE HOMETOWN, STATE 00000;

•

Use only the following label information format for joint filers: JOHN Q. DOE MARY Q.

DOE 000 OAK DRIVE HOMETOWN, STATE 00000; and

•

Use “0” for number values and “X” for alpha characters entered in data entry fields as dummy

copy.

Part 4

Additional Resources

Section 4.1 – Guidance From Other Revenue Procedures

4.1.1

General

The IRS publications listed below provide guidance for substitute tax forms not covered in this

revenue procedure. These publications are available on the IRS website. Use the publication

number listed below to search for the requested document.

•

Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

•

Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498,

and Certain Other Information Returns.

•

Pub. 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.

•

Pub. 4436, General Rules and Specifications for Substitute Form 941, Schedule B (Form 941),

Schedule D (Form 941), Schedule R (Form 941), and Form 8974.

•

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

Section 4.2 – Electronic Tax Products

4.2.1

The IRS Website

Copies of tax forms and their instructions, publications, fillable forms, and prior year forms and

publications may be found on the IRS website at IRS.gov/Forms.

Draft forms and instructions may be found at IRS.gov/DraftForms.

Other tax-related information may be found at IRS.gov.

Bulletin No. 2023–43

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October 23, 2023

4.2.2

System Requirements

and Ordering Forms and

Instructions

For system requirements, contact the National Technical Information Service (NTIS) at NTIS.

gov. Prices are subject to change.

You can order IRS forms and other tax material at IRS.gov/OrderForms.

Part 5

Requirements for Specific Tax Returns

Section 5.1 – Tax Returns (Forms 1040, 1040-SR, 1120, etc.)

5.1.1

Acceptable Forms

5.1.2

Prohibited Forms

Tax return forms (such as Forms 1040, 1040-SR, and 1120) require a signature and establish tax

liability. Computer-generated versions are acceptable under the following conditions.

•

These substitute forms must be printed on plain white paper.

•

Substitute forms must conform to the physical layout of the corresponding IRS form although

the typeface may differ. The text should match the text on the officially published form as

closely as possible. Condensed text and abbreviations will be considered on a case-by-case

basis. Caution. All jurats (perjury statements) must be reproduced verbatim. No text can be

added, deleted, or changed in meaning.

•

Various computer graphic print media such as laser printing, inkjet printing, etc., may be used

to produce the substitute forms.

•

The substitute form must be the same number of pages and contain the same text on the lines

as the official form.

•

All substitute forms must be submitted for approval prior to their original use. You do not

need approval for a substitute form if its only change is the preprinted year and you had

received a prior year approval letter. Exception. If the approval letter specifies a one-time

exception for your form, the next year’s form must be approved.

The following are prohibited.

•

Computer-generated tax forms (for example, Form 1040, 1040-SR, etc.) on lined or colorbarred paper.

•

Tax forms that differ from the official IRS forms in a manner that makes them nonstandard or

unable to process.

5.1.3

Changes Permitted to Form

1040

Certain changes (listed in Section 5.2) are permitted to the graphics of the form without prior

approval, but these changes apply to only acceptable preprinted forms. Changes not requiring

prior approval are good only for the annual filing period, which is the current tax year. Such

changes are valid in subsequent years only if the official form does not change.

5.1.4

Other Changes Not Listed

All changes not listed in Section 5.2 require approval from the IRS before the form can be filed.

October 23, 2023

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Bulletin No. 2023–43

Section 5.2 – Changes Permitted to Graphics (Form 1040 or 1040-SR)

5.2.1

Adjustments

You may make minor vertical and horizontal spacing adjustments to allow for computer or

word processing printing. This includes widening the amount columns or tax entry areas if the

adjustments comply with other provisions stated in revenue procedures. No prior approval is

needed for these changes.

Schedules 1–3 cannot be combined for filing purposes. For the client copy of the return, the

numbered schedules may be printed two to a page (for example, Schedule 3 below Schedule 2, if

both are completed as part of the return). If numbered schedules are combined on the client copy,

it must include a statement that it is “Not for Filing.”

5.2.2

Name and Address Area

The horizontal rules and instructions within the name and address area may be removed and the

entire area left blank. No line or instruction can remain in the area. The heavy-ruled border (when

present) that outlines the name, address area, and SSN must not be removed, relocated, expanded,

or contracted.

5.2.3

Required Format

When the name and address area is left blank, the following format must be used when printing

the taxpayer’s name and address.

5.2.4

Conventional Name and

Address Data

•

1st name line (35 characters maximum).

•

2nd name line (35 characters maximum).

•

In-care-of name line (35 characters maximum).

•

City, state (25 characters maximum), one blank character, and ZIP code.

When there is no in-care-of name line, the name and address will consist of only three lines (single

filer) or four lines (joint filer).

Example of joint filer. Name and address (joint filer) with no in-care-of name line:

JOHN Q. DOE

MARY Q. DOE

000 ANYWHERE ST., APT. 000

ANYTOWN, STATE 00000

Example of in-care-of name line. Name and address (single filer) with in-care-of name line:

JOHN Q. DOE

C/O JOHN R. DOE

0000 SOMEWHERE AVE.

SAMETOWN, STATE 00000

Bulletin No. 2023–43

1115

October 23, 2023

5.2.5

SSN and EIN Area

The broken vertical lines separating the format arrangement of the SSN/EIN may be removed.

When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 or

00-0000000, respectively.

5.2.6

Entering Cents

•

You may remove the vertical rule that separates the dollars from the cents if it is still included

on the official IRS form.

•

All entries in the amount column should have a decimal point following the whole dollar

amounts whether or not the vertical line that separates the dollars from the cents is present.

•

You may omit printing the cents, but all amounts entered on the form must follow a consistent

format. You are strongly urged to round off the figures to whole dollar amounts, following the

official form instructions.

•

When several amounts are added together, the total should be rounded off after addition (that

is, individual amounts should not be rounded off for computation purposes).

•

When printing money amounts, you must use one of the following formats: (a) 0,000,000; or

(b) 0,000,000.00.

•

When there is no entry for a line, leave the line blank.

5.2.7

Changes to Lines

No prior approval is needed for the following changes (for use with computer-prepared forms

only). Specific line numbers in the following headings may have changed due to tax law changes.

5.2.8

Dependents on Form 1040

The vertical lines separating columns (1) through (4) may be removed. The captions may be

shortened to allow a one-line caption for each column.

5.2.9

Other Lines

Any other line with text that takes up two or more vertical lines may be compressed to one line by

using contractions, etc., and by removing instructional references.

5.2.10

Form 1040 – Tax

You may change the line caption to read “Tax” and computer print the words “Total includes tax

from” and either “Form(s) 8814” or “Form 4972” or “962 election.” If both forms are used, print

both form numbers. This specific line number may have changed.

5.2.11

Color Screening

It is not necessary to duplicate the color screening used on the official form. A substitute Form

1040 or 1040-SR may be printed in black and white only with no color screening.

5.2.12

Other Changes Prohibited

No other changes to the Form 1040 or 1040-SR graphics are permitted without prior approval

except for the removal of instructions and references to instructions.

October 23, 2023

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Bulletin No. 2023–43

Part 6

Format and Content of Substitute Returns

Section 6.1 – Acceptable Formats for Substitute Forms and Schedules

6.1.1

Exhibits and Use of

Acceptable Formats

Exhibit A is an acceptable format for Form 1040-ES.

•

If your computer-generated Form 1040-ES appears exactly like Exhibit A, no prior authorization

is needed.

•

You may computer-generate forms not shown here, but you must design them by following

the manner and style discussed in Part 3.

•

Take care to observe the other requirements and conditions in this revenue procedure. The

IRS encourages the submission of all proposed forms covered by this revenue procedure.

6.1.2

Instructions

The format of each substitute form or schedule must follow the format of the official form or

schedule as to item captions, line references, line numbers, sequence, form arrangement and format,

etc. Basically, try to make the form look like the official one, with readability and consistency

being primary factors. You may use periods and/or other similar special characters to separate the

various parts and sections of the form. Do not use alpha or numeric characters for these purposes.

All line numbers and items must be printed even though an amount is not entered on the line.

6.1.3

Line Numbers

When a line on an official form is designated by a number or a letter, that designation (reference

code) must be used on a substitute form. The reference code must be printed to the left of the text

of each line and immediately preceding the data entry field, even if no reference code precedes

the data entry field on the official form. If an entry field contains multiple lines and shows the line

references once on the left and right side of the form, use the same number of line references on

the substitute form.

In addition, the reference code that is immediately before the data field must either be followed

by a period or enclosed in parentheses. There must also be at least two blank spaces between the

period or the right parenthesis and the first digit of the data field. (See Section 6.1.4.)

6.1.4

Decimal Points

A decimal point (a period) should be used for each money amount regardless of whether the

amount is reported in dollars and cents or in whole dollars, or whether or not the vertical line that

separates the dollars from the cents is present. The decimal points must be vertically aligned when

possible.

Example.

5 State and local taxes

a State and local income taxes.....................

b State and local real estate taxes................

c State and local personal property taxes....

Bulletin No. 2023–43

1117

5a.

5b.

5c.

000.00

October 23, 2023

a State and local income taxes.....................

b State and local real estate taxes................

c State and local personal property taxes....

6.1.5

Multi-Page Forms

(5a)

(5b)

(5c)

000.00

When submitting a multi-page form, send all its pages in the same package. If you will not be

producing certain pages, note that in your cover letter.

Section 6.2 – Additional Instructions for All Forms

6.2.1

Use of Your Own Internal

Control Numbers and

Identifying Symbols

You may show the computer-prepared internal control numbers and identifying symbols on the

substitute if using such numbers or symbols is acceptable to the taxpayer and the taxpayer’s

representative. Such information must not be printed in the top 0.5 inch clear area of any form or

schedule requiring a signature. Except for the actual tax return form (Forms 1040, 1040-SR, 1120,

940, 941, etc.), you may print in the left vertical and bottom left margins. The bottom left margin

you may use extends 3.5 inches from the left edge of the form. You may print internal control

numbers in place of the removed IRS catalog number.

6.2.2

Required Software ID

Number (Source Code)

on Computer- Prepared

Substitutes

In the February 2009 Government Accountability Office (GAO) report, “Many Taxpayers

Rely on Tax Software and IRS Needs to Assess Associated Risks” (GAO-09-297), the GAO

recommended that the IRS require a software identification number on all individual returns to

specifically identify the software package used to prepare each tax return. The IRS already has

this capability for all e-filed returns. In addition, many tax preparation software firms already

print an IRS-issued 3-letter source code on paper returns that are generated by their individual tax

software. This source code was assigned when the firms were seeking substitute forms approval

under this current publication.

In order to follow this GAO recommendation, the IRS will require that all tax preparation software

firms include the 3-letter source code on all paper tax returns created by their individual tax

preparation software. The many firms that currently have and display their source code on paper

returns generated from their software should continue to do so, and no change is necessary.

We have reviewed all software companies that passed Assurance Testing System (ATS) testing

last filing season and have determined that some firms do not currently have a source code. To

save you the burden of contacting us and for your convenience, we have assigned source codes

to those firms.

You should program your source code to be placed in the bottom left-hand corner of page one of

each paper form that will be generated by your individual tax return package. You do not need to

apply for a new source code annually.

If you already use a 3-letter source code and we have issued you one in error, you are unsure if

you were ever issued one, or you have other questions or concerns, you may contact Tax Forms

and Publications Special Services Section at substituteforms@irs.gov.

The IRS requires tax preparation software firms that participate in the IRS Free File Program

include the 3-letter FFF code on all paper Form 1040 returns created by their individual tax

preparation software.

October 23, 2023

1118

Bulletin No. 2023–43

If you participate in the IRS Free File Program, you should program the 3-letter FFF code to

be placed in the bottom left-hand corner of the first page of each paper Form 1040 that will be

generated by your individual tax return package. The 3-letter FFF code and the 3-letter source

code should be placed next to each other for consistency. If placing the 3-letter FFF code and the

3-letter source code next to each other is not possible, then above or below will be acceptable.

Example. The 3-letter FFF code and the 3-letter source code could be BCA-FFF or BCA FFF. A

dash or a space is needed to separate the 3-letter FFF code and the 3-letter source code.

6.2.3

Descriptions for Captions,

Lines, etc.

Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one print

line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However,

sufficient keywords must be retained to permit ready identification of the caption, line, or item.

6.2.4

Determining Final Totals

Explanatory detail and/or intermediate calculations for determining final line totals may be

included on the substitute. Preferably, such calculations should be submitted in the form of a

supporting statement. If intermediate calculations are included on the substitute, the line on which

they appear may not be numbered or lettered. Intermediate calculations may not be printed in the

right column.This column is reserved only for official numbered and lettered lines that correspond

to the ones on the official form. Generally, you may choose the format for intermediate calculations

or subtotals on supporting statements to be submitted.

6.2.5

Instructional Text on the

Official Form

Text on the official form, which is solely instructional (for example, “See instructions,” etc.), may

generally be omitted from the substitute form.

6.2.6

Intermingling Is Prohibited

Showing more than one form or schedule on the same printout page is prohibited. Both sides of

the paper may be used for multi-page forms, but it is unacceptable to intermingle forms.

For instance, Schedule E can be printed on both sides of the paper because the official form is

multi-page, with page 2 continued on the back. However, do not print Schedule E on the front

page and Schedule SE on the back page, or Schedule A on the front and Form 8615 on the back,

etc. Both pages of a substitute form must match the official form. The back page may be left blank

if the back page of the official form contains only the instructions.

6.2.7

Identifying Substitutes

Identify all computer-prepared substitutes clearly. Print the form designation 0.5 inch from the top

margin and 1.5 inches from the left margin. Print the title centered on the first line of print. Print

the tax year and, where applicable, the sequence number on the same line 0.5 inch to 1 inch from

the right margin. Include the taxpayer’s name and SSN on all forms and attachments. Also, print

the OMB number as reflected on the official form.

6.2.8

Negative Amounts

Negative (or loss) amount entries should be enclosed in brackets or parentheses or include a minus

sign. This assists in accurate computation and input of form data. The IRS preprints parentheses

in negative data fields on many official forms. These parentheses should be retained or inserted on

printouts of affected substitute forms.

Bulletin No. 2023–43

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October 23, 2023

Part 7

Miscellaneous Forms and Programs

Section 7.1 – Specifications for Substitute Schedules K-1

7.1.1

Requirements for Schedules

K-1 That Accompany

Forms 1041, 1065, and

1120-S

Because of significant changes to improve processing, prior approval is now required for substitute

Schedules K-1 that accompany Form 1041 (for estates and trusts), Form 1065 (for partnerships), or

Form 1120-S (for S corporations). Substitute Schedules K-1 should be as close as possible to exact

replicas of the official IRS schedules and follow the same process for submitting other substitute

forms and schedules. Before releasing their substitute forms, software vendors are responsible for

making any subsequent changes that have been made to the final official IRS forms after the draft

forms have been posted.

Submit substitute Schedule K-1 forms, in PDF format, to scrips@irs.gov for scannability

acceptance. Schedule K-1 forms that require testing do not need to be mailed to the Program. You

must include information on the substitute that can be tested. This information should be dummy

information. Use an “X” for alpha characters and “0” for numbers. The IRS will review and

provide feedback of any changes needed so that your forms can be recognized correctly.

Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and

1120-S. Allow at least 0.25 inch of white space around the 6-digit code.

•

661117 for Form 1041.

•

651123 for Form 1065.

•

671121 for Form 1120-S.

Schedules K-1 that accompany Forms 1041, 1065, or 1120-S must meet all specifications. The

specifications include, but are not limited to, the following requirements.

October 23, 2023

•

You will no longer be able to produce Schedules K-1 that contain only those lines or boxes

that taxpayers are required to use. All lines must be included.

•

The words “* See attached statement for additional information.” must be preprinted in the

lower right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120-S.

•

All Schedules K-1 that are filed with the IRS should be printed on commercial standard size

(8.5″ x 11″) paper (the international standard (A4) of 8.27″ x 11.69″ may be substituted).

•

10-point Helvetica Light Standard is preferred for all entries that are typed or made using a

computer.

•

Submissions should include the IRS source code or NACTP vendor ID code printed on the

lower left corner of the form or in place of the IRS catalog number.

•

Each recipient’s information must be on a separate sheet of paper. Therefore, you must

separate all continuously printed substitutes, by recipient, before filing with the IRS.

•

No carbon copies or pressure-sensitive copies will be accepted.

•

The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (estate,

trust, partnership, or S corporation) and the recipient (beneficiary, partner, or shareholder).

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Bulletin No. 2023–43

•

The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the

related form number (1041, 1065, or 1120-S), and the official schedule name in substantially

the same position and format as shown on the official IRS schedule.

•

The Schedule K-1 must contain all the line items as shown on the official form, except for the

instructions, if any are printed on the back of the official Schedule K-1.

•

The line items or boxes must be in the same order and arrangement as those on the official

form.

•

The amount of each recipient’s share of each item must be shown. A partial percent should be

reflected as a decimal (for example, 501/2% should be 50.5%). Furnishing a total amount of

each item and a percentage (or decimal equivalent) to be applied to such total amount by the

recipient does not satisfy the law and the specifications of this revenue procedure.

•

State or local tax-related information may not be included on the Schedules K-1 filed with the

IRS.

•

The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not conform

to specifications.

•

Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications

as not being able to be processed and may return Form 1041, 1065, or 1120-S to the filer to be

filed correctly.

Schedules K-1 that are 2-D bar-coded will continue to require prior approval from the IRS. (See

Sections 7.1.3 through 7.1.5.)

7.1.2

Special Requirements

for Recipient Copies of

Schedules K-1

Standardization for reporting information is required for recipient copies of substitute Schedules

K-1 of Forms 1041, 1065, and 1120-S. Uniform visual standards are provided to increase

compliance by allowing recipients and practitioners to more easily recognize a substitute Schedule

K-1. The entity must furnish to each recipient a copy of Schedule K-1 that meets the following

requirements.

•

Bulletin No. 2023–43

Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and

1120-S. Allow white space around the 6-digit code.

–

661117 for Form 1041.

–

651123 for Form 1065.

–

671121 for Form 1120-S.

•

You will no longer be able to produce Schedules K-1 that contain only those lines or boxes

that taxpayers are required to use. All lines must be included.

•

The words “* See attached statement for additional information.” must be preprinted in the

lower right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120-S.

•

The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and

recipient.

•

The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the

related form number (1041, 1065, or 1120-S), and the official schedule name in substantially

the same position and format as shown on the official IRS schedule.

1121

October 23, 2023

7.1.3

Requirements for Schedules

K-1 With Two- Dimensional

(2- D) Bar Codes

•

All applicable amounts and information required to be reported must be titled and numbered

in the same manner as shown on the official IRS schedule. The line items or boxes must be in

the same order and arrangement and must be numbered like those on the official IRS schedule.

•

The Schedule K-1 must contain all items required for use by the recipient. The instructions for

the schedule must identify the line or box number and code, if any, for each item as shown in

the official IRS schedule.

•

The amount of each recipient’s share of each item must be shown. A partial percent should be

reflected as a decimal (for example, 501/2% should be 50.5%). Furnishing a total amount of

each line item and a percentage (or decimal equivalent) to be applied to such total amount by

the recipient does not satisfy the law and the specifications of this revenue procedure.

•

Instructions to the recipient that are substantially similar to those on or accompanying the

official IRS schedule must be provided to aid in the proper reporting of the items on the

recipient’s income tax return. Where items are not reported to a recipient because they do not

apply, the related instructions may be omitted.

•

The quality of the ink or other material used to generate recipients’ schedules must produce

clearly legible documents. In general, black chemical transfer inks are preferred.

•

In order to assure uniformity of substitute Schedules K-1, the paper size should be standard

commercial (8.5″ x 11″) (the international standard (A4) of 8.27″ x 11.69″ may be substituted).

•

The paper weight, paper color, font type, font size, font color, and page layout must be such

that the average recipient can easily decipher the information on each page. The preferred font

is Helvetica and a minimum of 10-point font.

•

State or local tax-related information may be included on recipient copies of substitute

Schedules K-1. All non-tax-related information should be separated from the tax information

on the substitute schedule to avoid confusion for the recipient.

•

The legend “Important Tax Return Document Enclosed” must appear in a bold and conspicuous

manner on the outside of the envelope that contains the substitute recipient copy of Schedule

K-1.

•

The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient

does not conform to the specifications of this revenue procedure and results in impeding

processing.

Electronic filing is the preferred method of filing; however, 2-D bar code is the best alternative

method for paper processing.

In an effort to improve efficiency and increase data accuracy, the IRS partnered with the tax

software development community on a 2-D bar code project in 2003. Certain tax software

packages have been modified to generate 2-D bar codes on Schedules K-1. As a result, when

Schedules K-1 are printed using these programs, a bar code will print on the page.

Rather than manually transcribe information from the Schedule K-1, the IRS will scan the bar

code and electronically upload the information from the Schedule K-1. This will result in more

efficient operations within the IRS and fewer transcription errors for your clients.

Note. If software vendors do not want to produce bar-coded Schedules K-1, they may produce

the official IRS Schedules K-1 but cannot use the expedited process for approving bar-coded

Schedules K-1 and their parent returns as outlined in Section 7.1.6.

October 23, 2023

1122

Bulletin No. 2023–43

In addition to the requirements in Sections 7.1.1 and 7.1.2, the bar-coded Schedules K-1 must

meet the following specifications.

7.1.4

2-D Bar Code Specifications

for Schedules K-1

Bulletin No. 2023–43

•

The bar code should print in the space labeled “For IRS Use Only” on each Schedule K-1. The

entire bar code must print within the “For IRS Use Only” box surrounded by a white space of

at least 0.25 inch.

•

Bar codes must print in PDF417 format.

•

The bar codes must always be in the specified format with every field represented by at least a

field delimiter (carriage return). Leaving out a field in a bar code will cause every subsequent

field to be misread.

•

Be sure to include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041,

1065, and 1120-S. Allow white space around the 6-digit code.

–

661117 for Form 1041.

–

651123 for Form 1065.

–

671121 for Form 1120-S.

Follow these general specifications for preparing all 2-D bar-coded Schedules K-1.

•

Numeric fields.

–

Do not include leading zeros (except TINs, ZIP codes, and percentages).

–

If negative value, the minus sign “–” must be present immediately to the left of the

number and part of the 12-position field.

–

Do not use non-numeric characters except that the literal “STMT” can be put in money

fields.

–

All money fields should be rounded to the nearest whole dollar amount—if a money

amount ends in 00 to 49 cents, drop the cents; if it ends in 50 to 99 cents, truncate the

cents and increment the dollar amount by one. Use the same rounding technique for the

bar-coded and the printed Schedules K-1.

–

All numeric-only fields are right justified (except TINs and ZIP codes).

•

All field lengths are expressed as maximum lengths. If the value in the field has fewer positions

or the software program does not support that many positions, put in the bar code only those

positions actually used.

•

Alpha fields.

–

Do not include leading blanks (left justified).

–

Do not include trailing blanks.

–

Use uppercase alpha characters only.

1123

October 23, 2023

•

7.1.5

Approval Process for BarCoded Schedules K-1

October 23, 2023

Variable fields.

–

Do not include leading blanks (left justified).

–

Do not include trailing blanks.

–

Use uppercase alpha characters, numerics, and special characters as defined in each field.

•

Delimit each field with a carriage return.

•

Express percentages as 6-digit numbers without the percent sign. Left justify with a leading

zero(s) (for percentages less than 100%) and no decimal point (decimal point is assumed

between 3rd and 4th positions). Examples: 25.32% expressed as “025320”; 105% expressed

as “105000”; 8.275% expressed as “008275”; 10.24674% expressed as “010247.”

•

It is vital that the print routine reinitialize the bar code prior to printing each succeeding

Schedule K-1. Failure to do this will result in each Schedule K-1 for a parent return having the

same bar code as the document before it.

Prior to releasing commercially available tax software that creates bar-coded Schedules K-1, the

printed schedule and the bar code must both be tested. If your company is creating bar-coded

Schedules K-1, you must receive certification for both the printed Schedule K-1, as well as the bar

code, before offering your product for sale. Bar-code testing must be done using the final official

IRS Schedule K-1. Bar-code approval requests must be resubmitted for any subsequent changes

to the official IRS form that would affect the bar code. Below are instructions and a sequence of

events that will comprise the testing process.

•

The IRS has released the final Schedule K-1 bar-code specifications by publishing them on the

IRS.gov website (see IRS.gov/E-file-Providers/K-1-Bar-Code-Certification-Process).

•

The IRS will publish a set of test documents that will be used to test the ability of tax

preparation software to create bar codes in the correct format.

•

Software developers will submit two identical copies of the test documents—one to the IRS

and one to a contracted testing vendor.

•

The IRS will use one set to ensure the printed schedules comply with standard substitute

forms specifications.

•

If the printed forms fail to meet the substitute forms criteria, the IRS will inform the software

developer of the reason for noncompliance.

•

The software developer must resubmit the Schedule(s) K-1 until it passes the substitute forms

criteria.

•

The testing vendor will review the bar codes to ensure they meet the published bar-code

specifications.

•

If the bar code(s) does not meet published specifications, the testing vendor will contact the

software developer directly, informing them of the reason for noncompliance.

•

Software developers must submit new bar-coded schedules until they pass the bar-code test.

•

When the bar code passes, the testing vendor will inform the IRS that the developer has passed

the bar-code test and the IRS will issue an overall approval for both the substitute form and the

bar code.

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Bulletin No. 2023–43

7.1.6

Procedures for Reducing

Testing Time

•

After receiving this consolidated response, the software vendor is free to release software for

tax preparation as long as any subsequent revisions to the schedules do not change the fields.

•

Find the mailing address for the testing vendor below. Separate and simultaneous mailings to

the IRS and the vendor will reduce testing time.

In order to help provide incentives to the software development community to participate in the

Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded Schedules

K-1 and their associated parent returns. To receive this expedited service, follow the instructions

below.

•

Mail the parent returns (Forms 1041, 1065, 1120-S) and associated bar-coded Schedule(s)

K-1 to the appropriate address below in a separate package from all other approval requests.

Internal Revenue Service

Attn: K-1 Substitute Forms Analyst

SE:W:CAR:MP:T:T:SP

Room 6411

1111 Constitution Ave. NW

Washington, DC 20224

•

Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to the

testing vendor at the address below.

Leidos-IRS Paper and Remittance

Processing Support (PRPS II)

Attn: Dane Hawkins

9737 Washingtonian Blvd.

Gaithersburg, MD 20878

•

Include multiple email and phone contact points in the packages.

•

While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns, it

cannot expedite the approval of nonassociated tax returns.

•

Vendors are encouraged to go to NACTP.org for compliance guidelines in regards to file size

and error-correction level.

•

Submissions should include the IRS source code or NACTP vendor ID code printed on the

lower left corner of the form or in place of the IRS catalog number.

•

If a change is made to the bar code after approval, be sure to increment the version number.

Section 7.2 – Guidelines for Substitute Forms 8655

7.2.1

Increased Standardization

for Forms 8655

Bulletin No. 2023–43

Increased standardization for reporting information on substitute Forms 8655 is now required to

aid in processing and for compliance purposes. Follow the guidelines in Section 7.2.2.

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October 23, 2023

7.2.2

Requirements for

Substitute Forms 8655

7.2.3

Exception for Form 8655

Follow these specific requirements when producing substitute Forms 8655.

•

The first line of the title must be “Reporting Agent Authorization.”

•

If you want to include a reference to “State Limited Power of Attorney,” it can be in parentheses

under the title. “State” must be the first word within the parentheses.

•

You must include “Form 8655” on the form.

•

While the line numbers do not have to match the official form, the sequence of the information

must be in the same order.

•

The size of any variable data must be printed in a font no smaller than 10 points.

•

For adequate disclosure checks, the following must be included for each taxpayer.

–

Name.

–

EIN.

–

Address.

•

At this time, Form 944 will not be required if Form 941 is checked. Only those forms that the

reporting agent company supports need to be listed.

•

The jurat (perjury statement) must be identical with the exception of references to line

numbers.

•

A contact name and number for the reporting agent is not required.

•

Any state information included should be contained in a separate section of the substitute

form. Preferably, this information will be in the same area as line 19 of the official form.

•

All substitute Forms 8655 must be approved by the Program as outlined in the Form 8655

specifications in this current publication.

•

If you have not already been assigned a 3-letter source code, you will be given one when your

substitute form is submitted for approval. This source code should be included in the lower

left corner of the form.

•

The 20-business-day assumed approval policy does not apply to Form 8655 approvals.

Because of how Form 8655 is processed and distributed to recipients, vendors are allowed to affix

their logo onto the substitute version of the form. This exception is for Form 8655 only.

Section 7.3 – Guidelines for Substitute Image Character Recognition (ICR) Forms

7.3.1

Overview

October 23, 2023

The following suggestions may be used as a guideline for creating easily scanned substitute tax

forms. If you choose to participate, please use the Form 1040 format provided in Exhibit C and

Exhibit D. The grid view is for user ease of understanding only and should be removed before

printing forms for submission.

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Bulletin No. 2023–43

Note. The exhibits are to show formatting only, and are not a current copy of the form. Please use

the most current version of any form to create the substitute tax form.

7.3.2

Automated Processing of

Certain Forms

Certain forms have been redesigned for automated processing via ICR technology. As a result,

these forms have different requirements for reproduction. These specific requirements apply to

both the form image as well as the format of the variable data.

7.3.3

Form Design Requirements

•

Forms should have a 0.5-inch margin on all sides.

•

Nothing should be printed within the 0.5-inch margins.

•

Vertical and horizontal lines should be replicated as they are on the IRS form.

•

Printing should be in black ink on white paper. No color or shading should be used.

•

Reproduce the exact text on each line as it appears on the IRS form. Do not abbreviate or leave

out text.

•

See Section 3.3.

•

Rows 1–3 and 64–66, and columns 1–5 and 81–85 should be left blank.

•

SSN and EIN fields should have dashes (for example, 999-99-9999 or 99-9999999).

•

Do not use real data unless specifically directed (for example, printing 12345678912 vs.

XXXXXXXXXXX for bank routing number as required by Pub. 1345).

•

Dollar value fields should be printed with commas and no decimals (for example, 999,999,999).

•

Data placement should match defined areas on form. Variable data should not be printed

outside defined areas (for example, first, middle, last, and suffix fields should be printed where

they appear on the IRS form, not combined).

•

Do not populate blank value fields with a zero. If there is no value for a field, leave it blank.

Exceptions include calculated fields with valid inputs that result in a value of zero.

•

Vendor codes and company-specific printing information should only appear in the spaces

designated on the form.

7.3.4

Data Format Requirements

Part 8

Additional Information

Section 8.1 – Forms for Electronically Filed Returns

Bulletin No. 2023–43

1127

October 23, 2023

8.1.1

Electronic Filing Program

Electronic filing is a method by which authorized providers transmit tax return information to

an IRS Service Center in the format of the official IRS forms. The IRS accepts both refund and

balance due forms that are filed electronically.

8.1.2

Applying To Participate in

IRS e-file

Anyone wishing to participate in IRS e-file of tax returns must submit an e-file application. The

application can be completed and submitted electronically on the IRS website at IRS.gov after

first registering for e-services on the website.

8.1.3

Obtaining the Taxpayer

Signature/ Submission of

Required Paper Documents

Taxpayers choosing to electronically prepare and file their returns will be required to use the SelfSelect PIN method as their signatures.

Electronic return originators (EROs) can e-file individual income tax returns only if the returns are

signed electronically using either the Self-Select or Practitioner PIN method.

Taxpayers must use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file Return,

to send supporting documents that are required to be submitted to the IRS.

For specific information about electronic filing, refer to Pub. 1345, Handbook for Authorized IRS

e-file Providers of Individual Income Tax Returns.

8.1.4

Guidelines for Preparing

Substitute Forms in the

Electronic Filing Program

A participant in the electronic filing program who wants to develop a substitute form should

follow the guidelines throughout this publication and send a sample form for approval to the

Program at substituteforms@irs.gov. If you do not prepare substitute Form 8453 using a font in

which all IRS wording fits on a single page, the form will not be accepted.

Note. Use of unapproved forms could result in suspension of the participant from the electronic

filing program.

Section 8.2 – Effect on Other Documents

8.2.1

Effect on Other Documents

This revenue procedure supersedes Revenue Procedure 2022-31, 2022-43 I.R.B. 339.

Section 8.3 – Exhibits

Exhibit A — Form 1040-ES Voucher 20XX

Exhibit B — Substitute Form Checksheet

Exhibit C — Form 1040 With Grid

Exhibit D — Form 1040 Without Grid

October 23, 2023

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Software Developers Voucher

Bulletin No. 2023–43

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October 23, 2023

IRS Checksheet

October 23, 2023

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Form 1040 With Grid

Bulletin No. 2023–43

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October 23, 2023

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Form 1040 Without Grid

Bulletin No. 2023–43

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October 23, 2023

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Bulletin No. 2023–43

Transfer of Credit under Sections 30D and 25E

from Taxpayer to Eligible Entity and Updated

Requirements for Qualified Manufacturers and

Sellers.

Rev. Proc. 2023-33

SECTION 1. PURPOSE

This revenue procedure sets forth the

procedures under §§ 30D(g) and 25E(f)

of the Internal Revenue Code (Code)1 for

the transfer of the clean vehicle credit or

previously-owned clean vehicle credit

from the taxpayer who elects to transfer such credit to an eligible entity.

These procedures will apply to transfers of credits after December 31, 2023.

These procedures include registration

procedures with the Internal Revenue

Service (IRS) for qualified manufacturers and sellers, as well as procedures for

dealer registration and the suspension

and revocation of that registration. This

revenue procedure also establishes a

program to make advance payments of

credit amounts to registered dealers. In

addition, this revenue procedure supersedes sections 5.01 and 6.03 of Rev.

Proc. 2022-42, 2022-52 I.R.B. 565,

providing new information for the timing and manner of submission of seller

reports, respectively. Finally, this revenue procedure supersedes sections 6.01

and 6.02 of Rev. Proc. 2022-42, providing updated information on submission

of written agreements by manufacturers

to the IRS to be considered qualified

manufacturers, as well as the method of

submission of monthly reports by qualified manufacturers.

SECTION 2. BACKGROUND

.01 Section 30D, Clean Vehicle Credit

(1) Section 30D was enacted by

§ 205(a) of the Energy Improvement

and Extension Act of 2008, Division B

of Public Law 110-343, 122 Stat. 3765,

3835 (October 3, 2008), to provide a

credit for purchasing and placing in service new qualified plug-in electric drive

motor vehicles. Section 30D has been

amended several times since its enactment, most recently by § 13401 of Public

Law 117-169, 136 Stat. 1818 (August 16,

2022), commonly known as the Inflation

Reduction Act of 2022 (IRA). In general,

the amendments made by § 13401 of the

IRA to § 30D apply to vehicles placed in

service after December 31, 2022, except

as provided in § 13401(k)(2) through (5)

of the IRA.

(2) Section 30D(a) allows a credit

for the taxable year with respect to each

new clean vehicle placed in service by a

taxpayer during the taxable year (§ 30D

credit). Section 30D(b) provides a maximum credit of $7,500 per vehicle, consisting of $3,750 if certain critical minerals

requirements are met and $3,750 if certain battery components requirements are

met. These requirements are described in

§ 30D(e)(1) and (2), respectively.

(3) Section 30D(g) allows the taxpayer

to elect to transfer the § 30D credit in certain situations. Specifically, § 30D(g)(1)

provides that, subject to such regulations

or other guidance as the Secretary of the

Treasury or her delegate (Secretary) determines necessary, a taxpayer may elect to

transfer a § 30D credit with respect to a

new clean vehicle to an eligible entity

(transfer election). If the taxpayer who

acquires a new clean vehicle makes a

transfer election with respect to such vehicle, the § 30D(a) credit that would otherwise be allowed to such taxpayer with

respect to such vehicle is allowed to the

eligible entity specified in such election

(and not the taxpayer). Section 30D(g)(2)

defines an “eligible entity” with respect to

the vehicle for which the § 30D credit is

allowed as the dealer that sold such vehicle to the taxpayer and that satisfies the

following four requirements of § 30D(g)

(2)(A) through (D) set forth in section

2.01(3)(a) through (d) of this revenue

procedure:

(a) The dealer, subject to § 30D(g)(4),

must be registered with the IRS for purposes of § 30D(g)(2), at such time, and in

such form and manner, as the Secretary

prescribes.

(b) The dealer, prior to the transfer

election and not later than at the time of

sale, must have disclosed to the taxpayer

purchasing such vehicle:

(i) The manufacturer’s suggested retail

price,

(ii) The value of the § 30D credit

allowed and any other incentive available

for the purchase of such vehicle, and

(iii) The amount provided by the dealer

to such taxpayer as a condition of the

transfer election.

time of sale, must have paid the taxpayer

(whether in cash or in the form of a partial

payment or down payment for the purchase of such vehicle) an amount equal

to the § 30D credit otherwise allowable to

such taxpayer.

(d) The dealer, with respect to any

incentive otherwise available for the purchase of a vehicle for which a § 30D credit

is allowed under § 30D(a), including any

incentive in the form of a rebate or discount provided by the dealer or manufacturer, must have ensured that:

(i) The availability or use of such incentive does not limit the ability of a taxpayer

to make a transfer election, and

(ii) Such election does not limit the

value or use of such incentive.

(4) Section 30D(g)(3) addresses the

timing of the election and provides that

any transfer election cannot be made by

the taxpayer any later than the date on

which the vehicle for which the § 30D

credit is allowed is purchased.

(5) Section 30D(g)(4) provides that,

upon determination that a dealer has failed

to comply with the requirements described

in § 30D(g)(2), the dealer’s registration

may be revoked.

(6) Section 30D(g)(5) provides that,

with respect to any payment described

in § 30D(g)(2)(C), such payment is not

includible in the gross income of the taxpayer and is not deductible with respect to

the dealer.

(7) Section 30D(g)(6) addresses the

application of certain other requirements

to the transfer election and provides that

in the case of any transfer election with

respect to any vehicle: (A) the basis reduction and no double benefit requirements of

§ 30D(f)(1) and (2) apply to the taxpayer

who acquired the vehicle in the same manner as if the § 30D credit determined with

respect to such vehicle were allowed to

such taxpayer; (B) the election in § 30D(f)

(6) to not take the § 30D credit does not

apply; and (C) the vehicle identification

Unless otherwise specified, all “Section” or “§” references are to sections of the Code.

Bulletin No. 2023–43

1135

October 23, 2023

number (VIN) requirement of § 30D(f)(9)

is treated as satisfied if the eligible entity

provides the VIN of such vehicle to the

IRS in such manner as the Secretary may

provide.

(8) Section 30D(g)(7)(A) authorizes the

Secretary to establish a program to make

advance payments to registered dealers

in an amount equal to the cumulative

amount of the § 30D credits allowed under

§ 30D(a) with respect to any vehicles sold

by such entity for which a transfer election has been made. Section 30D(g)(7)

(B) details that rules similar to the rules

of § 6417(d)(6) apply for purposes of any

excessive payments, and § 30D(g)(7)(C)

provides that, for purposes of 31 U.S.C.

1324, the payments under § 30D(g)(7)(A)

are treated in the same manner as a refund

due from a credit provision referred to in

31 U.S.C. 1324(b)(2).

(9) Section 30D(g)(8) defines the term

“dealer” as a person licensed by a State, the

District of Columbia, the Commonwealth

of Puerto Rico, any other territory or possession of the United States, an Indian

tribal government, or any Alaska Native

Corporation (as defined in § 3 of the

Alaska Native Claims Settlement Act (43

U.S.C. 1602(m)) to engage in the sale of

vehicles. Section 30D(g)(9) defines the

term “Indian tribal government” as the

recognized governing body of any Indian

or Alaska Native tribe, band, nation,

pueblo, village, community, component

band, or component reservation, individually identified (including parenthetically)

in the list published most recently as of

the date of enactment of § 30D(g) (that is,

August 16, 2022) pursuant to § 104 of the

Federally Recognized Indian Tribe List

Act of 1994 (25 U.S.C. 5131).

(10) Section 30D(g)(10) provides that,

in the case of any taxpayer who has made

a transfer election with respect to a new

clean vehicle and received a payment

from an eligible entity, if the § 30D credit

would otherwise (but for § 30D(g)) not

be allowable to such taxpayer pursuant

to the application of the limitation based

on modified adjusted gross income in

§ 30D(f)(10), the income tax imposed on

such taxpayer under chapter 1 of the Code

for the taxable year in which such vehicle

was placed in service must be increased

by the amount of the payment received by

such taxpayer.

October 23, 2023

(11) Section 13401(k)(4) of the IRA

provides that the ability for a taxpayer

to elect to transfer a § 30D credit under

§ 30D(g) applies to vehicles placed in service after December 31, 2023.

.02 Section 25E, Previously-Owned

Clean Vehicles Credit

(1) Section 13402 of the IRA added

§ 25E to the Code. Section 25E(a) provides that, in the case of a qualified buyer

who during a taxable year places in service a previously-owned clean vehicle, an

income tax credit is allowed for the taxable year equal to the lesser of: (1) $4,000,

or (2) the amount equal to 30 percent of

the sale price with respect to such vehicle

(§ 25E credit).

(2) Section 25E(c)(1) defines “previously-owned clean vehicle”, with respect

to a taxpayer, as a motor vehicle that satisfies the following requirements:

(a) The model year of the motor vehicle is at least 2 years earlier than the calendar year in which the taxpayer acquires

such vehicle.

(b) The original use of the motor vehicle commences with a person other than

the taxpayer.

the taxpayer in a qualified sale.

(d) The motor vehicle:

(i) Meets the requirements of § 30D(d)

(1)(C), (D), (E), (F), and (H) (except for

§ 30D(d)(1)(H)(iv)), or

(ii) Is a motor vehicle that (I) satisfies the requirements under § 30B(b)(3)

(A) and (B), and (II) has a gross vehicle

weight rating of less than 14,000 pounds.

(3) Section 25E(c)(2) defines a “qualified sale” as a sale of a motor vehicle:

(i) By a dealer (as defined in § 30D(g)

(8)),

(ii) For a sale price that does not exceed

$25,000, and

(iii) That is the first transfer since the

date of enactment to a qualified buyer

other than the person with whom the original use of such vehicle commenced.

(4) Section 25E(c)(3) defines the term

“qualified buyer” for purposes of § 25E as

a taxpayer:

(a) Who is an individual,

(b) Who purchases such vehicle for use

and not for resale,

is allowable with respect to another taxpayer under § 151, and

1136

(d) Who has not been allowed a § 25E

credit for any sale of a motor vehicle

during the 3-year period ending on the

date of the sale of the previously-owned

clean vehicle.

(5) Section 25E(c)(4) defines “motor

vehicle” and “capacity” to have the meaning given such terms in § 30D(d)(2) and

(4), respectively.

(6) Section 25E(d) provides that no

credit is allowed under § 25(a) with

respect to any vehicle unless the taxpayer

includes the vehicle identification number

of such vehicle on the return of tax for the

taxable year.

(7) Section 25E(f) provides that rules

similar to § 30D(g) apply to the transfer

of a § 25E credit for previously-owned

vehicles (thus, a taxpayer also may elect

to transfer a § 25E credit). For purposes

of this revenue procedure, the program

established under §§ 30D(g)(7)(A) and

25E(f) to make advance payments of

amounts of § 30D credits and § 25E credits to registered dealers with respect to

eligible clean vehicles sold by such dealers for which a taxpayer makes a transfer

election is referred to as the “advance payment program.”

(8) Section 13402(e)(2) of the IRA

provides that the ability of a taxpayer

to elect to transfer a § 25E credit under

§ 25E(f) applies to vehicles acquired after

December 31, 2023.

.03 Revenue Procedure 2022-42.

(1) Revenue Procedure 2022-42, in

relevant part, established procedures for

qualified manufacturers to enter into written agreements with the IRS in accordance

with §§ 30D(d)(1)(C) and 30D(d)(3), and

procedures for persons selling vehicles to

submit seller reports to the IRS.

(2) Sections 4.01 and 4.03 of Rev.

Proc. 2022-42 provide, respectively, that

a manufacturer must enter into a written

agreement with the IRS to become a qualified manufacturer and must submit written reports to the IRS containing required

information.

(3) Section 5.01 of Rev. Proc. 2022-42

provides, in relevant part, that the seller

of a clean vehicle must submit to the

Secretary a seller report containing certain information within fifteen (15) days

of the end of the calendar year in which

the sale occurs. Section 6.03 of Rev. Proc.

2022-42 provides that, beginning January

Bulletin No. 2023–43

15, 2024, seller reports must be filed with

the IRS within fifteen days after the end of

the calendar year in which the sale occurs

in a format and method that the Secretary

provides.

(4) Section 6.01 of Rev. Proc. 2022-42

provides that manufacturers must send

their signed written agreements pursuant

to section 4.01 of Rev. Proc. 2022-42 to

IRS.Clean.Vehicle.Manufacturers@irs.

gov. Section 6.02 of Rev. Proc. 2022-42

provides, in relevant part, that qualified

manufacturers must file written monthly

reports with the IRS by the fifteenth of

the month. Qualified manufacturers must

send an email to IRS.Clean.Vehicles.

QM.Reporting@irs.gov indicating their

intent to submit monthly reports and the

IRS will respond with instructions on how

to submit their reporting information.

.04 Transfer Election and Advance

Payment

Program

Procedural

Requirements. The procedural rules

described in this Revenue Procedure

are designed in part to ensure program

integrity. In particular, advance payment

of the § 30D and § 25E credits poses

unique compliance challenges, since such

advance payments are not subject to the

same tax administration procedures that

apply to claiming a credit via return filing.

Furthermore, participation in the credit

transfer and advance payment program is

optional. The transfer of § 30D and § 25E

credits is elective on the part of the taxpayer, and the eligible entity can decide

whether to offer to the taxpayer the ability to transfer the § 30D and § 25E credits

(thereby participating in the advance payment program). Taxpayers instead may

choose to wait and claim a § 30D or § 25E

credit on the taxpayer’s return. Section

30D(g)(1) provides that a taxpayer election to transfer the § 30D credit is subject to the regulations or other guidance

that the Secretary determines necessary.

Section 30D(g)(7) instructs the Secretary

to establish a program for making advance

payments to eligible entities – that is, a

program to make payments to the eligible

entity before the eligible entity files its

Federal income tax return for the relevant

taxable year. Section 25E(f) provides that,

for purposes of § 25E, rules similar to the

rules of § 30D(g) apply. Taken together,

these provisions provide authority for the

Secretary to establish the parameters and

Bulletin No. 2023–43

conditions of the transfer election and the

accompanying advance payment program

for those taxpayers and eligible entities

that choose to participate, in furtherance

of sound tax administration.

SECTION 3. DEFINITIONS

.01 In General. Terms used in this revenue procedure and not defined in section

3 of this revenue procedure have the same

meaning as provided in §§ 30D and 25E,

the proposed regulations thereunder, and

the final regulations thereunder (once

issued).

.02 IRS Energy Credits Online Portal.

For purposes of this revenue procedure,

the “IRS Energy Credits Online Portal”

refers to the registration portal that manufacturers and sellers must use to register as a qualified manufacturer, seller, or

registered dealer. A link to the site will be

made available on the IRS website. Any

successor portal or successor site address

will be announced and made available on

the IRS website.

.03 Seller. For purposes of this revenue

procedure, “seller” means, for purposes of

§ 30D, the person who sells any new clean

vehicle to the taxpayer, or, for purposes of

§ 25E, the dealer (as defined in § 30D(g)

(8)) who sells any previously-owned clean

vehicle to the taxpayer.

SECTION 4. REGISTRATION

THROUGH THE ENERGY CREDITS

ONLINE PORTAL

.01

Overview

Registration

Requirements. This section 4 sets out the

registration requirements “IRS Energy

Credit Portal” with the IRS for various

aspects of the Energy Credits Online Portal

for manufacturers, sellers, and dealers. As

a preliminary matter, manufacturers, sellers, and dealers must all register through

the IRS Energy Credits Online Portal, as

detailed in section 4.02 of this revenue

procedure. Manufacturers who wish to

become qualified manufacturers must follow the registration procedures in sections

4.02(1) of this revenue procedure. Sellers

who are required to submit seller reports

must follow the registration procedures in

section 4.02(2) of this revenue procedure.

Sellers who wish to become registered

dealers and participate in the advance

1137

payment program must follow the registration procedures in section 4.02(3)

of this revenue procedure. A dealer, as

defined is § 30D(g)(8) and the regulations thereunder, must follow the registration requirements in sections 4.02(2)

and 4.02(3) of this revenue procedure to

become a registered dealer and participate

in the advance payment program.

.02 Registration through the IRS

Energy Credits Online Portal

(1)

Qualified

Manufacturer

Registration through the IRS Energy

Credits Online Portal. An individual

representative of the manufacturer must

Online Portal and provide the required

information to request to become a qualified manufacturer, consistent with section

4.01(1) of Revenue Procedure 2022-42.

The manufacturer’s representative will

need to sign in or create an account on

irs.gov in order to verify the manufacturer’s business tax information and register.

Help related to the IRS identity verification process can be found on the sign-in

page or at www.irs.gov/registerhelp. This

individual representative of the manufacturer must be currently authorized to

legally bind the manufacturer in these

matters. Starting December 2023, a manufacturer will be able to authorize more

than one employee to make representations on its behalf through the IRS Energy

Credits Online Portal.

(2) Seller Registration through the IRS

Energy Credits Online Portal. An individual representative of the seller must register through the IRS Energy Credits Online

Portal and provide the required information. The seller’s representative will need

to sign in or create an account on irs.gov

to verify the seller’s business tax information and register. Help related to the IRS

identity verification process can be found

on the sign-in page or at www.irs.gov/registerhelp. This individual representative

of the seller must be currently authorized

to legally bind the seller in these matters.

Starting December 2023, a seller will be

able to authorize more than one employee

to make representations on its behalf

through the IRS Energy Credits Online

Portal. At the time of registration through

the IRS Energy Credits Online Portal, a

seller must provide the information listed

in section 4.02(2)(a) through (c) and (f) of

October 23, 2023

this revenue procedure and make certifications listed in section 4.02(d) and (e) of

this revenue procedure:

(a) Seller name, business address,

phone number, and email address.

(b) Seller Taxpayer Identification

Number (TIN) or Employer Identification

Number (EIN).

Columbia, Indian tribal government, or

Alaska Native Corporation issued license

to sell vehicles (for § 25E sellers).

(d) Certification that, in the event a

buyer returns a vehicle within 30 days of

the time of sale, the seller will update the

seller report.

(e) In the case of a previously-owned

clean vehicle, certification that the seller

will provide each taxpayer with the following information:

(i) That the model year of the vehicle

is at least two years prior to the calendar

year of sale; and

(ii) That the transfer is the first transfer

of the vehicle since August 16, 2022, to a

person other than the person with whom

the original use of such vehicle commenced, excluding transfers to or between

dealers.

(f) Such other information as may be

required by the IRS Energy Credits Online

Portal.

(3) Dealer Registration through the IRS

Energy Credits Online Portal. An individual representative of the dealer must

Online Portal to become an eligible entity

that can participate in the advance payment program. The dealer’s representative

will need to sign in or create an account

on irs.gov to verify the dealer’s business

tax information and register. Help related

to the IRS identity verification process can

be found on the sign-in page or at www.

irs.gov/registerhelp. The registration and

each certification must be completed by

an individual representative of the dealer

who is currently authorized to legally

bind the dealer in these matters. Starting

December 2023, a dealer will be able to

authorize more than one employee to

make representations on its behalf through

the IRS Energy Credits Online Portal. A

dealer must register at least 15 days prior

to being able to receive any advance payments described in section 8 of this revenue procedure. A dealer may register

October 23, 2023

through the IRS Energy Credits Online

Portal at any time after the publication

of this revenue procedure, but will not

become an eligible entity until January 1,

2024. The required information and certifications may be updated in guidance published in the Internal Revenue Bulletin or

via the IRS Energy Credits Online Portal.

At the time of registration, a dealer must

provide the information listed in section

4.02(3)(a), (b) and (g) of this revenue procedure and make each certification listed

in section 4.02(3)(c) through (f) of this

revenue procedure:

(a) The information listed in section

4.02(2)(a) through (f) of this revenue

procedure.

(b) Bank account information of the

dealer, for purposes of receiving electronic payments, as described in section

8.03 of this revenue procedure. Use of a

foreign bank account is not permitted.

provide each taxpayer with the following

information:

(i) For purposes of the § 30D credit,

the manufacturer’s suggested retail price

(MSRP) of the new clean vehicle, or, for

purposes of the § 25E credit, the sale price

of the previously-owned clean vehicle;

(ii) The maximum amount of the credit

allowable and any other incentive available for the purchase of such vehicle;

(iii) The amount provided by the dealer

to such taxpayer as a condition of the

taxpayer making the transfer election.

This amount must equal the amount of

the credit potentially allowable as to the

purchase of the vehicle and such amount

may be provided in the form of cash or a

down payment or partial payment for the

purchase of the vehicle;

(iv) The modified adjusted gross

income (modified AGI) limitations provided in §§ 30D(f)(10) (in the case of the

§ 30D credit) or 25E(b)(2) (in the case of

the § 25E credit), as applicable; and

(d) Certification that, no later than

the time of sale of the vehicle, the dealer

will make the payment to the taxpayer

(whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) in an amount equal

to the credit otherwise allowable to such

taxpayer.

(e) Certification that the dealer,

with respect to any incentive otherwise

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available for the purchase of a vehicle for

which a § 30D credit or § 25E credit is

allowed, including any incentive in the

form of a rebate or discount provided by

the dealer or manufacturer, ensured that:

(i) The availability or use of such incentive does not limit the ability of a taxpayer

to make a transfer election, and

(ii) Such election does not limit the

value or use of such incentive.

(f) Certification that, in the event a

buyer returns a vehicle within 30 days

of the time of sale, and the dealer fails to

report such return through the IRS Energy

Credits Online Portal, the dealer will have

an excessive payment of any advance payment amount received for the sale of such

vehicle.

(g) Such other information as may be

required by the IRS Energy Credits Online

Portal.

.03 Reliance. For purposes of the

advance payment program, taxpayers

and sellers may rely on information and

certifications of a qualified manufacturer

(as defined in § 30D(d)(3)) described in

section 4 of Rev. Proc. 2022-42 providing

that a vehicle is eligible for a § 30D credit

or a § 25E credit, as applicable. Section

4.03 of this revenue procedure allows reliance solely with respect to information

regarding the vehicle’s eligibility for the

§ 30D credit or § 25E credit. For example,

such reliance does not apply to information regarding the taxpayer’s use of such

vehicle, whether the taxpayer satisfies the

modified AGI limitations, or whether the

taxpayer is a qualified buyer as defined in

§ 25E(c)(3).

.04 IRS Verifications.

(1) At the time of seller registration

through the IRS Energy Credits Online

Portal described in section 4.02(2) of this

revenue procedure, the IRS will validate

the seller’s business tax information,

including the North American Industry

Classification System (NAICS) Code. In

the event the seller fails the validation process, the seller will be notified by the IRS.

(2) At the time of dealer registration

through the IRS Energy Credits Online

Portal described in section 4.02(3) of

this revenue procedure, the IRS will

confirm dealer tax compliance as well as

validate the dealer’s business tax information, including the NAICS Code and

the dealer’s bank account information. In

Bulletin No. 2023–43

the event the dealer fails the validation

process, the dealer will be notified by the

IRS.

.05 IRS Notification Regarding Dealer

Registration. The IRS will notify the

dealer if its registration is accepted or

rejected after considering the information submitted by the dealer under section

4.02(3) and the verification checks under

section 4.05(2) of this revenue procedure.

If the dealer’s registration is accepted, the

IRS will issue a unique dealer identification number to the dealer, which will be

available through the IRS Energy Credits

Online Portal.

.06 Right to Administrative Review if

Dealer Registration is Rejected. If a dealer’s registration is rejected, the dealer will

have the opportunity to request administrative review of the IRS’s determination

to the IRS. During the period that the issue

is pending, the dealer cannot participate in

the advance payment program.

SECTION 5. TRANSFER ELECTION

DISCLOSURE OBLIGATIONS

BETWEEN THE DEALER AND

TAXPAYER

.01 Disclosure to Taxpayer Electing

to Transfer the Credit. Not later than the

time of sale, the registered dealer must

provide the taxpayer electing to transfer a credit under § 30D(g) or § 25E(f)

a written disclosure containing the information described in sections 4.02(2)(e)

and 4.02(3)(c) of this revenue procedure,

signed under penalty of perjury by a person currently authorized to bind the dealer

in these matters, and a copy of the seller

report described in section 7.03 of this

revenue procedure.

.02 Disclosure Obligation of Taxpayer

Electing to Transfer the Credit. Not later

than the time of sale, the taxpayer electing to transfer the credit under § 30D(g)

or § 25E(f) must furnish the information

listed in sections 5.02(1) through 5.02(3)

and 5.02(11) of this revenue procedure

to the registered dealer and make the

attestations in sections 5.02(4) through

5.02(10) through the IRS Energy Credits

Online Portal under penalty of perjury.

Not later than the time of sale, the registered dealer must upload the information

provided by the electing taxpayer in sections 5.02(1) through 5.02(3) and 5.02(11)

Bulletin No. 2023–43

of this revenue procedure through the IRS

Energy Credits Online Portal. The information the electing taxpayer must furnish

is as follows:

(1) Date of the taxpayer’s transfer

election;

(2) The taxpayer’s TIN;

(3) A photocopy of the taxpayer’s

valid, government-issued photo identification document;

(4) An attestation, that either:

(a) The taxpayer’s prior year modified

AGI did not exceed the modified AGI limitations, provided in §§ 30D(f)(10) (in the

case of the § 30D credit) or 25E(b)(2) (in

the case of the § 25E credit), as applicable,

or, if not known, to the best of the taxpayer’s knowledge and belief, the taxpayer’s

prior year modified AGI did not exceed

such limitation, or

(b) To the extent of the taxpayer’s

knowledge and belief, the taxpayer’s current year modified AGI will not exceed the

modified AGI limitation;

(5) In the case of the § 30D credit, an

attestation that the vehicle will be used

predominantly for personal use;

(6) In the case of the § 25E credit, an

attestation that the taxpayer is a “qualified

buyer” as defined § 25E(c)(3);

(7) An attestation that the taxpayer will

file an income tax return for the taxable

year in which the vehicle is placed in

service on or before the due date of the

return (including extensions), reporting

the taxpayer’s eligibility for the § 30D or

§ 25E credit, as applicable, including the

vehicle’s VIN, and the taxpayer’s election

to transfer the credit to the eligible entity,

and repaying any credit amounts subject

to recapture, if applicable;

(8) An attestation that the taxpayer is

making this election prior to placing the

vehicle in service and that the taxpayer

has made no more than two transfer elections (including the election for which the

attestation is being made) during the taxable year;

(9) An attestation that in the event

the taxpayer’s modified AGI exceeds the

applicable modified AGI limitations, they

will repay the amount received as an addition to tax for the tax year the vehicle was

placed in service.

(10) An attestation that the taxpayer

has voluntarily elected to transfer the

credit; and

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(11) Such other information as may be

required by the IRS Energy Credits Online

Portal.

SECTION 6. TAXPAYER ELECTION

TO TRANSFER CREDIT

.01 Taxpayer Election. A taxpayer may

make an election to transfer the credit

under § 30D or § 25E to a registered dealer

no later than the time of sale. A transfer

election will be considered made by a

taxpayer upon providing the information

described in section 5.02 of this revenue

procedure to the registered dealer.

.02 Two Transfer Elections per year.

A taxpayer may make no more than two

transfer elections per taxable year, consisting of either two § 30D credits or one

§ 30D credit and one § 25E credit. In the

case of a joint return, each individual taxpayer may make no more than two transfer elections per taxable year.

.03 Amount of Transferred Credit. A

taxpayer making a transfer election must

transfer the entire amount of the credit

allowable to the taxpayer to the registered

dealer.

SECTION 7. QUALIFIED

MANUFACTURER WRITTEN

AGREEMENT AND REPORTS AND

SELLER REPORTS

.01 Qualified Manufacturer Written

Agreement. Beginning January 1, 2024,

to be considered a qualified manufacturer, manufacturers must have entered

into a written agreement pursuant to section 4.01 of Rev. Proc. 2022-42 through

the IRS Energy Credits Online Portal.

The required attestation must be completed by a person currently authorized

to bind the manufacturer in these matters.

Manufacturers will not be considered

qualified manufacturers until they have

entered into written agreements with the

IRS. Manufacturers who previously registered and filed written agreements under

the procedures in section 6.01 of Rev.

Proc. 2022-42 must enter into new written agreements through the IRS Energy

Credits Online Portal. The procedures for

manufacturers to enter into written agreements prior to January 1, 2024 will remain

as described in section 6.01 of Rev. Proc.

2022-42.

October 23, 2023

.02 Written Reports by Qualified

Manufacturers. Beginning January 1,

2024, qualified manufacturers must file the

monthly written reports described in section 4.02 of Rev. Proc. 2022-42 through

the IRS Energy Credits Online Portal by

the fifteenth of the month following the

month to which each monthly written

report relates. Qualified manufacturers

may file reports more frequently than once

a month. Beginning January 1, 2024, manufacturers who previously regist

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