# Bulletin No. 1999–49

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Internal Revenue

bulletin

Bulletin No. 1999–49
December 6, 1999

HIGHLIGHTS
OF THIS ISSUE

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.

INCOME TAX
Rev. Rul. 99–48, page 600.
Federal rates; adjusted federal rates; adjusted federal
long-term rate, and the long-term exempt rate. For
purposes of sections 1274, 1288, 382, and other sections
of the Code, tables set forth the rates for December 1999.

EMPLOYEE PLANS
Rev. Proc. 99–45, page 603.
Minimum funding standards; change in funding
method. This procedure provides approval to change the
funding method used to determine the minimum funding
standard for defined benefits plans for plan years beginning
on or after January 1, 1999, to any one of the specific methods contained therein. Rev. Proc. 95–51, as clarified and
modified by Rev. Proc. 98–10, modified.

Notice 99–55, page 638.
Retirement plans; 2000 section 415(d) limitations.
Cost-of-living adjustments effective January 1, 2000, applicable to the dollar limits on benefits under qualified defined
benefit pensions plans and to other provisions affecting (1)
certain plans of deferred compensation and (2) “control employees,” are set forth.

ESTATE TAX
REG–103841–99, page 639.
Proposed regulations under section 2601 of the Code relate
to the retention of a trust’s exempt status for generation-skipping transfer tax purposes in the case of modifications, etc.,
to a trust. A public hearing is scheduled for March 15, 2000.

GIFT TAX
REG–103841–99, page 639.
Proposed regulations under section 2601 of the Code relate

Finding Lists begin on page ii.
Index for July through November begins on page iv.

Department of the Treasury
Internal Revenue Service

to the retention of a trust’s exempt status for generationskipping transfer tax purposes in the case of modifications,
etc., to a trust. A public hearing is scheduled for March 15,
2000.

EMPLOYMENT TAX
Rev. Proc. 99–46, page 605.
Electronic filing; magnetic media. Specifications are set
forth for filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, magnetically or electronically. The form may be filed with the Service using
1⁄ inch magnetic tape; IBM 3480/3490 or AS400 compati2
ble tape cartridges; or 5 1⁄4-, 3 1⁄2-inch diskettes.

Rev. Proc. 99–47, page 624.
Specifications are set forth for filing Form W-4, Employee’s
Withholding Allowance Certificate, magnetically or electronically.

ADMINISTRATIVE
REG–104939–99, page 643.
Proposed regulations under section 6212 of the Code relate
to a taxpayer’s last known address.

Announcement 99–112, page 649.
This document corrects certain errors in Rev. Proc. 99–29,
1999–31 I.R.B. 138, which provides specifications for filing
Forms 1098, 1099, 5498, and W-2G. Rev. Proc. 99–29 was
reprinted as Publication 1220, Specifications for Filing Forms
1098, 1099, 5498, and W-2G Magnetically or Electronically.
Corrections to the forms are also included. Rev. Proc. 99–29
corrected.

The IRS Mission
Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities

and by applying the tax 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 and may be obtained
from the Superintendent of Documents on a subscription
basis. Bulletin contents are consolidated semiannually into
Cumulative Bulletins, which are sold on a single-copy basis.
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 proce-

dures 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 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 first 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 first Bulletin of the succeeding semiannual period, respectively.

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.
For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

INS
ER
T
PH
OT
O
HE
RE

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 42.—Low-Income
Housing Credit
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of December 1999.
See Rev. Rul. 99–48 on this page.

Section 382.—Limitation on Net
Operating Loss Carryforwards
and Certain Built-In Losses
Following Ownership Change

Section 468.—Special Rules for
Mining and Solid Waste
Reclamation and Closing Costs
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

Section 482.—Allocation of
Income and Deductions Among
Taxpayers
Federal short-term, mid-term, and long-term
rates are set forth for the month of December 1999.
See Rev. Rul. 99–48 on this page.

Section 483.—Interest on
Certain Deferred Payments

The adjusted applicable federal long-term rate is
set forth for the month of December 1999. See Rev.
Rul. 99–48 on this page.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

Section 412.—Minimum Funding
Standards

Section 642.—Special Rules for
Credits and Deductions

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

Federal short-term, mid-term, and long-term
rates are set forth for the month of December 1999.
See Rev. Rul. 99–48 on this page.

A revenue procedure describes certain changes to
the funding method used to determine the minimum
funding standard for defined benefit plans for plan
years beginning on or after January 1, 1999. See
Rev. Proc. 99–45, page 603.

Section 807.—Rules for Certain
Reserves
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

Section 467.—Certain Payments
for the Use of Property or
Services

Section 846.—Discounted
Unpaid Losses Defined

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48 on this
page.

December 6, 1999

600

Section 1274.—Determination
of Issue Price in the Case of
Certain Debt Instruments Issued
for Property
(Also sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)

Federal rates; adjusted federal rates;
adjusted federal long-term rate, and
the long-term exempt rate. For purposes
of sections 1274, 1288, 382, and other
sections of the Code, tables set forth the
rates for December 1999.

Rev. Rul. 99–48
This revenue ruling provides various
prescribed rates for federal income tax
purposes for December 1999 (the current
month.) Table 1 contains the short-term,
mid-term, and long-term applicable federal rates (AFR) for the current month for
purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term adjusted applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the appropriate percentages for determining the
low-income housing credit described in
section 42(b)(2) for buildings placed in
service during the current month. Table 5
contains the federal rate for determining
the present value of an annuity, an interest
for life or for a term of years, or a remainder or a reversionary interest for purposes
of section 7520. Finally, Table 6 contains
the 2000 interest rate for purposes of sections 846 and 807.

1999–49 I.R.B.

REV. RUL. 99–48 TABLE 1
Applicable Federal Rates (AFR) for December 1999
Period for Compounding
Annual

Semiannual

Quarterly

Monthly

Short-Term
AFR
110% AFR
120% AFR
130% AFR

5.74%
6.33%
6.91%
7.50%

5.66%
6.23%
6.79%
7.36%

5.62%
6.18%
6.73%
7.29%

5.59%
6.15%
6.70%
7.25%

Mid-Term
AFR
110% AFR
120% AFR
130% AFR
150% AFR
175% AFR

6.20%
6.83%
7.46%
8.10%
9.38%
10.98%

6.11%
6.72%
7.33%
7.94%
9.17%
10.69%

6.06%
6.66%
7.26%
7.86%
9.07%
10.55%

6.03%
6.63%
7.22%
7.81%
9.00%
10.46%

Long-Term
AFR
110% AFR
120% AFR
130% AFR

6.47%
7.13%
7.79%
8.45%

6.37%
7.01%
7.64%
8.28%

6.32%
6.95%
7.57%
8.20%

6.29%
6.91%
7.52%
8.14%

REV. RUL. 99–48 TABLE 2
Adjusted AFR for December 1999
Period for Compounding
Annual

Semiannual

Quarterly

Monthly

Short-term
adjusted AFR

4.02%

3.98%

3.96%

3.95%

Mid-term
adjusted AFR

4.76%

4.70%

4.67%

4.65%

Long-term
adjusted AFR

5.72%

5.64%

5.60%

5.57%

REV. RUL. 99–48 TABLE 3
Rates Under Section 382 for December 1999
Adjusted federal long-term rate for the current month

5.72%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the
adjusted federal long-term rates for the current month and the prior two months.)

5.72%

REV. RUL. 99–48 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for December 1999
Appropriate percentage for the 70% present value low-income housing credit

8.49%

Appropriate percentage for the 30% present value low-income housing credit

3.64%

1999–49 I.R.B.

601

December 6, 1999

REV. RUL. 99–48 TABLE 5
Rate Under Section 7520 for December 1999
Applicable federal rate for determining the present value of an annuity, an interest for life or a
term of years, or a remainder or reversionary interest

7.4%

REV. RUL. 99–48 TABLE 6
Rate under Sections 846 and 807
Applicable rate of interest for 2000 for purposes of sections 846 and 807

Section 1288.—Treatment of
Original Issue Discount on
Tax-Exempt Obligations
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48, page 600.

Section 7520.—Valuation Tables
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48, page 600.

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p
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in

December 6, 1999

602

6.09%

Section 7872.—Treatment of
Loans With Below-Market
Interest Rates
The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month
of December 1999. See Rev. Rul. 99–48, page 600.

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1999–49 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.201: Rulings and determination
letters.
(Also, Part I, section 412.)

Rev. Proc. 99–45
Section 1. Purpose and Scope
This revenue procedure modifies Rev.
Proc. 95–51, 1995–2 C.B. 431, which
provides approval to change the funding
method (including the asset valuation
method) used for a defined benefit pension plan. This revenue procedure modifies Rev. Proc. 95–51 to provide approval
for a change in funding method in connection with certain mergers; to clarify
that the prohibition of a change in method
where there is a negative unfunded liability applies only in certain circumstances
with respect to a change in funding
method involving a spread gain method;
to provide that the comparison of the results of new valuation software to the results of old valuation software may be
made on the basis of the prior year; and to
provide, in certain situations, that the requirement that the plan administrator approve of the change in funding method
will be satisfied if the plan administrator
is made aware of the change.
Section 2. Background
.01 Section 412(c)(5)(A) of the Internal Revenue Code (“the Code”), as
amended, and section 302(c)(5)(A) of the
Employee Retirement Income Security
Act of 1974 (ERISA), Pub. L. 93-406,
1974–3 C.B. 1, 40, as amended, state that
if the funding method of a plan is
changed, the new funding method shall
become effective only if the change is approved by the Secretary.
.02 Section 1.412(c)(2)–1 of the Income Tax Regulations generally provides
that a change in the actuarial valuation
method used to value the assets of a plan
is a change in funding method that requires approval under § 412(c)(5) of the
Code.
.03 Rev. Proc. 95–51 provides approval for certain changes in funding
method. Section 3 of Rev. Proc. 95–51
provides approval for changes to certain
specific methods including certain asset
valuation methods. Section 4 of Rev.
Proc. 95–51 provides various special ap-

1999–49 I.R.B.

provals for changes. Section 5 of Rev.
Proc. 95–51 provides rules relating to the
establishment and maintenance of amortization bases upon changing methods.
Section 6 of Rev. Proc. 95–51 provides
restrictions under the revenue procedure.
.04 Rev. Proc. 98–10, 1998–2 I.R.B.
35, modified Rev. Proc. 95–51 to provide
approval for additional changes in asset
valuation method and for certain changes
in valuation software. Rev. Proc. 98–10
also clarified and modified other provisions of Rev. Proc. 95–51.
Section 3. Additional Approvals under
Rev. Proc. 95–51
.01 Section 4 of Rev. Proc. 95–51 (Special Approvals) is modified to add a new
section 4.06 as follows:
.06 Approval for De Minimis Mergers
(1) Approval is granted for a change
in method in connection with a
merger described in paragraph (2)
where the procedures set forth in
paragraphs (3) through (5) below are
followed.
(2) The merger involves the merger
of a smaller plan (within the meaning of § 1.414(l)–1(h)(1)) and a
larger plan (within the meaning of
§ 1.414(l)–1(h)(1)). For purposes of
this paragraph (2), the rules of
§§ 1.414(l)–1(h)(2), 1.414(l)–
1(h)(3), and 1.414(l)– 1(h)(4) apply
in determining whether a merger is
de minimis.
(3) For the period from the beginning of the plan year of the smaller
plan to the date of the merger, the
charges and credits to the funding
standard account for the smaller plan
are determined without regard to the
merger. If that period is less than a
full 12-month plan year, the charges
and credits to the funding standard
account for the smaller plan for this
period are ratably adjusted using the
principles of Rev. Rul. 79–237,
1979–2 C.B. 190, in the same manner as if the date of the merger was
the date of plan termination of the
smaller plan. The deductible limit
under § 404 for contributions to the
smaller plan is determined by treating the period from the beginning of

603

the plan year to the date of merger as
a short plan year and following the
procedure set forth in section 5 of
Rev. Proc. 87–27, 1987–1 C.B. 769.
Schedule B of Form 5500 is filed for
the smaller plan for the period from
the beginning of the plan year of the
smaller plan to the date of the
merger. Any contributions made for
the smaller plan after the date of the
merger, but not later than 81⁄2 months
after the date of the merger, are credited to the funding standard account
of the smaller plan for this period.
For purposes of applying § 4971(b)
(but not § 4971(a)) with respect to
the smaller plan, any funding deficiency that existed for the smaller
plan is considered corrected as of the
date of merger.
(4) If the valuation date for the larger
plan for the plan year in which the
merger occurs precedes the date of
the merger, the charges and credits to
the funding standard account for the
larger plan for that plan year are determined without regard to the
merger. Consequently, Schedule B
of Form 5500 for the plan year of the
larger plan in which the merger occurs is filed without regard to the
merger in such a case. Similarly, the
deductible limit determined under
§ 404 with respect to the plan year of
the larger plan in which the merger
occurs is determined without regard
to the merger.
(5) For the actuarial valuation of the
larger plan as of the valuation date
coincident with or next following the
date of the merger, the funding
method (including asset valuation
method) used is that for the larger
plan, and the funding method (including asset valuation method) used
for the smaller plan is disregarded.
The charges and credits to the funding standard account for the larger
plan are determined by treating the
net effect of the change in assets and
liabilities due to the merger in the
same manner as any other gain or
loss experienced by the larger plan.
Consequently, any amortization
bases, credit balances, or funding de-

December 6, 1999

ficiencies with respect to the smaller
plan are disregarded for purposes of
applying § 412 and § 4971 with respect to the larger plan.
.02 Section 4 of Rev. Proc. 95–51 (Special Approvals) is modified to add a new
section 4.07 as follows:
.07 Approval for Mergers Other Than
De Minimis Mergers
(1) Approval is granted for a change
in method that results from a merger
of one plan with another plan in a
given plan year where all the conditions set forth in paragraphs (2)
through (6) are satisfied, and the procedures set forth in paragraphs (7)
through (13) are followed.
(2) The merger is not a de minimis
merger within the meaning of
§ 1.414(l)–(h).
(3) The funding method (without regard to the asset valuation method)
used for each of the plans is a
method described in section 3.
(4) Both plans have the same plan
year and a valuation date that is either the first or last day of the plan
year.
(5) The date of the merger is either
the first day of the plan year or the
last day of the plan year of the two
plans.
(6) In a case in which the date of the
merger is the first day of the plan
year, neither plan has a funding deficiency for the prior plan year. In a
case in which the date of the merger
is the last day of the plan year, neither plan has a funding deficiency
for the plan year of the merger (after
taking into account contributions
made after the date of the merger as
provided in paragraph (13) below).
(7) If the date of the merger is the
first day of the plan year, the minimum funding standard of § 412 and
the deductible limit of § 404 are determined for the merged plan for the
entire plan year in which the merger
occurs in the manner provided in
paragraphs (8), (9), (10), (11), and
(12) below. Consequently, for the
plan year in which the merger occurs, only one Schedule B of Form
5500 is filed for the merged plan in
such a case.
(8) If the same asset valuation
method (in all respects) is used for

December 6, 1999

each of the two plans, the asset valuation method of the merged plan is
that method. If the same asset valuation method (in all respects) is not
used for each of the two plans (for
example, the smoothing period is
three years for one of the plans, and
five years for the other plan), the
asset valuation method used for the
merged plan must be an asset valuation method described in section 3.
(9) If the funding method (without
regard to the asset valuation method)
used for each of the two plans is the
same, that funding method is continued for the plan after the merger. If
the funding method (without regard
to the asset valuation method) used
for each of the two plans is not the
same, then the funding method used
for the ongoing plan is continued
after the merger. For this purpose,
the ongoing plan is the plan as designated by the plan administrator
(within the meaning of § 414(g)),
whose name and plan number will
continue to be reported on Schedule
B of Form 5500 for years after the
merger. The funding method used
for the plan which is not the ongoing
plan is disregarded.
(10) An experience gain or loss is determined separately for each of the
two plans, for the period prior to the
date of the merger, without regard to
the merger and any associated
change in funding method. The preceding sentence applies only to the
extent that an experience gain or loss
would have been determined under
the methods used for the plans prior
to the merger.
(11) All amortization bases that were
maintained for the two plans continue to be maintained for the
merged plan to the extent they would
be maintained under the funding
method used for the merged plan.
The credit balances, if any, of each
of the two plans from the prior year
are carried forward to the current
plan year, and combined.
(12) If an unfunded liability is determined under the funding method
used for the ongoing plan, it must be
determined after any change in actuarial assumptions and methods (including a change in asset valuation

604

method pursuant to paragraph (8)).
In the case of such a funding method
that is a spread gain method, the unfunded liability is redetermined in
the same manner that the unfunded
liability was originally determined
for the ongoing plan. Therefore, the
amortization base established pursuant to the rules of section 5.01(2)
will reflect any change of actuarial
assumptions and methods. For purposes of this paragraph, a spread
gain method is any method that does
not directly calculate an accrued liability. See Rev. Rul. 81–13, 1981–1
C.B. 229, for whether a funding
method directly calculates an accrued liability.
(13) If the date of the merger is the
last day of the plan year, the minimum funding standard under § 412
and the deductible limit under § 404
for each of the plans for the plan year
in which the merger occurs are determined without regard to the merger.
Consequently, separate Schedules B
of Form 5500 are filed for the plans
for the plan year in which the merger
occurs without regard to the merger
in such a case. Any contribution for
the plan year that is made to the trust
after the date of the merger may be
credited on either of the Schedules B
provided that the contribution is
made for such plan within the period
described in § 412(c)(10). For the
plan year following the plan year in
which the merger occurs, the minimum funding standard and the deductible limit are determined for the
plan after the merger by following
the procedures set forth in paragraphs (8), (9), (10), (11) and (12)
above as if the merger occurred on
the first day of such following plan
year.
Section 4. Clarification and
Modification of Rev. Proc. 95–51
.01 Section 4.05(5) of Rev. Proc. 95–51
(Approval for Change in Valuation Software) is modified to read as follows:
(5) The net charge to the funding
standard account for the year (or for
the prior year) determined using the
new software does not differ from
the net charge to the funding standard determined using the old soft-

1999–49 I.R.B.

ware (all other factors being held
constant) by more than two percent
(2%).
.02 Section 6.01(2) of Rev. Proc. 95–51
is modified to read as follows:
(2) This revenue procedure does not
apply unless the plan administrator
(within the meaning of § 414(g)) or
an authorized representative of the
plan sponsor indicates as part of the
series Form 5500 for the plan year
for which the change is effective that
the plan administrator or plan sponsor agrees to the change in funding
method. In the case of a special approval for a change in funding
method described in § 4, other than
the approval described in § 4.03
(Approval for Change in Funding
Method for Fully Funded Terminated Plans), the requirement that
the plan administrator or authorized
representative of the plan sponsor
agree to the change will be satisfied
if the plan administrator or an authorized representative of the plan sponsor is made aware of the change before the Schedule B is filed.

.03 Section 6.02(6) of Rev. Proc. 95–51
(Non-Applicability if Negative Normal
Cost or Negative Unfunded Liability Results From the Change) is modified to
read as follows:
Approval to change to a method described in section 3 does not apply if,
after the change in method, a negative
normal cost exists. Also, approval to
change to a method described in section 3 does not apply if, after the
change in method, a negative unfunded
liability exists, and the method (a) is a
spread gain method, and (b) uses an unfunded liability in determining the normal cost. For purposes of the preceding sentence, a spread gain method is
any method that does not directly calculate an accrued liability. See Rev.
Rul. 81-13 for whether a funding
method directly calculates an accrued
liability.
.04 Section 6.02(7) of Rev. Proc. 95–51
(Non-Applicability if Change in Method
is Being Made Pursuant to a Spin-off or
Merger) is modified to read as follows:
Approval to change to a method described in section 3 does not apply if

the funding method for a plan year is
being changed in connection with a
plan spin-off or merger, unless the
change is made as provided in § 4.06 or
§ 4.07.
Section 5. Effective Date
This revenue procedure is effective for
plan years commencing on or after January 1, 1999.
Section 6. Effect on Other Revenue
Procedures
Rev. Proc. 95–51, as clarified and modified by Rev. Proc. 98–10, is modified.
Section 7. Drafting Information
The principal author of this revenue
procedure is James E. Holland, Jr. of the
Employee Plans Division. For further information regarding this revenue procedure, call (202) 622-6076 between 2:30
and 3:30 Eastern time (not a toll free
number) Monday through Thursday. Mr.
Holland’s number is (202) 622-6730 (also
not a toll free number).

Publication 1239 (Rev. 8–99)
Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips Magnetically/Electronically

Rev. Proc. 99–46
Reprinted from IR Bulletin l999–49
dated December 6, 1999
(Contains copies of Forms 4419, 4804, 4802, 8508 and 8809 for taxpayers’ use.)
NOTE: Use this revenue procedure to prepare Form 8027, Employer’s Annual Information Return of Tip Income and Allocated
Tips, for submission to Internal Revenue Service (IRS) using any of the following:
– Magnetic Tape
– 3 1⁄2-inch Diskette
– Tape Cartridges
– 8mm, 4mm and Quarter Inch Cartridges (QIC)
– Electronic Filing
Please read this publication carefully. Persons required to file may be subject to penalties if they do not follow the instructions in
this revenue procedure.

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TABLE OF CONTENTS
PART A. GENERAL
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5.
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.
SECTION 10.
SECTION 11.
SECTION 12.
SECTION 13.
SECTION 14.

PURPOSE
NATURE OF CHANGES
WHERE TO FILE AND HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER
FILING REQUIREMENTS
REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA
APPLICATION FOR MAGNETIC/ELECTRONIC REPORTING
FILING OF FORM 8027 MAGNETICALLY/ELECTRONICALLY
FILING DATES
EXTENSIONS OF TIME TO FILE
PROCESSING OF MAGNETIC/ELECTRONIC RETURNS
PENALTIES
CORRECTED RETURNS, SUBSTITUTE FORMS, AND COMPUTER-GENERATED FORMS
EFFECT ON PAPER RETURNS
DEFINITIONS

PART B. MAGNETIC/ELECTRONIC SPECIFICATIONS
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5.
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.

GENERAL
TAPE SPECIFICATIONS
DISKETTE SPECIFICATIONS
TAPE CARTRIDGE SPECIFICATIONS
8MM, 4MM, AND QUARTER INCH CARTRIDGE SPECIFICATIONS
ELECTRONIC FILING SPECIFICATIONS
RECORD FORMAT AND LAYOUT
EFFECT ON OTHER DOCUMENTS
EFFECTIVE DATE

26 CFR 601.602: Tax forms and instructions.

PART A. GENERAL
SEC. 1. PURPOSE
.01 Form 8027 is used by large food or beverage establishments when the employer is required to make annual reports to the IRS
on receipts from food or beverage operations and tips reported by employees.
Note: All employees receiving $20.00 or more a month in tips must report 100% of their tips to their employer
.02 The Internal Revenue Service Martinsburg Computing Center (IRS/MCC) has the responsibility of processing Forms 8027
submitted magnetically/electronically. The purpose of this revenue procedure is to provide the specifications for filing Form 8027,
Employer’s Annual Information Return of Tip Income and Allocated Tips, magnetically or electronically. This revenue procedure is
updated when legislative changes occur or reporting procedures are modified. Major changes have been emphasized by italics.
.03 This revenue procedure supersedes the following: Rev. Proc. 98–52 published as Publication 1239 (9–98), Specifications for
Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips, Magnetically or Electronically.

SEC. 2. NATURE OF CHANGES
.01 Numerous editorial changes have been made to the revenue procedure. Please read the publication carefully and in its entirety
before attempting to prepare your magnetic/electronic file for submission. Major changes have been emphasized by using italics.
The changes are as follows:
(a) Updated information on IRS/MCC’s mailing addresses, telephone numbers and the Call Site is provided in Part A, Sec. 3.
(b) Part A, Sec. 7 Test Files has been deleted.
(c) The due date for Forms 8027 filed electronically has been changed to March 31.
(d) Copies of approved extension letters should be sent with paper filings to Andover Service Center. See Part A, Sec. 9 for
complete instructions.

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(e) The Information Reporting Program-Bulletin Board System (IRP-BBS) is no longer in use. The information in Part B, Sec.
6 Asynchronous (IRP-BBS) electronic filing specifications has been completely revised to provide instructions on the new
electronic filing system known as the Filing Information Returns Electronically (FIRE) system.
(f) The new number for the electronic filing system is 304-262-2400
(g) The following types of media are no longer acceptable by IRS/MCC:
(1) 5 1⁄4 inch diskettes
(2) 3 1⁄2 inch diskettes created on a non-MS-DOS systems
(3) 3 1⁄2 inch diskettes created on a System 36 or AS400.
(h) The following QIC (quarter inch cartridge) sizes has been deleted from Part B, Section 5:
Size

Tracks

Density

Capacity

QIC-11
QIC-320
QIC-1350

4/5
26
30

4 (8000 BPI)
17 (16000 BPI)
18 (51667 BPI)

22Mb or 30Mb
320Mb
1.3Gb

SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS MARTINSBURG COMPUTING CENTER
.01 All Forms 8027 filed magnetically or electronically are processed at IRS/MCC and are to be sent to the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
230 Murall Dr
Kearneysville WV 25430
.02 Requests for paper forms and publications should be requested by calling the “Forms Only Number” listed in your local telephone directory or by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).
.03 Questions pertaining to magnetic media filing of Forms W-2 must be directed to the Social Security Administration (SSA).
Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Services Liaison Officers for their area.
.04 A taxpayer or authorized representative may request a copy of a tax return or a Form W-2 filed with a return by submitting
Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800829-3676).
.05 The Information Reporting Program (IRP) Call Site, located at the Martinsburg Computing Center, provides service to the
payer/employer community (financial institutions, employers, and other transmitters of information returns). The IRP Call Site answers questions concerning tax law and magnetic/electronic filing of Forms 8027 and other information returns (Forms 1096, 1098,
1099, 5498, W-2G, W-3, 1042-S), questionable Forms W-4, inquiries dealing with backup withholding due to missing and incorrect
taxpayer identification numbers and questions concerning paper filing of Forms W-2. Recipients of information returns (payees)
should continue to contact 1-800-829-1040 or other numbers specified in the tax return instructions with any questions on how to report tax returns.
The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700 or Telecommunications Device for
the Deaf (TDD) 304-267-3367. These are toll calls. Hours of operation for the Call Site are Monday through Friday, 8:30 a.m. to
4:30 p.m. Eastern Time. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high demand for assistance at the end of January and February, it is advisable to call as soon as possible to avoid
these peak filing seasons.
.06 The telephone numbers for magnetic media inquiries or electronic submissions are:
304-263-8700 - Call Site
304-262-2400 - Electronic Filing
304-267-3367 - TDD (Telecommunication Device for the Deaf)
304-264-5602 - Fax Machine
(These are not toll-free telephone numbers.)
TO OBTAIN FORMS & PUBLICATIONS, CALL:
1-800-TAX-FORM(1-800-829-3676)
TO OBTAIN FORMS & PUBLICATIONS VIA THE INTERNET:
www.irs.gov

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SEC. 4. FILING REQUIREMENTS
.01 Section 6011(e)(2)(A) of the Internal Revenue Code requires that any person, including corporations, partnerships, individuals, estates, and trusts, required to file 250 or more information returns must file such returns on magnetic media.
.02 The filing requirements apply separately to both original and corrected returns.
.03 Filing electronically through the FIRE system with IRS/MCC fulfills the magnetic media filing requirement.
.04 The above requirements do not apply if you establish undue hardship (see Part A, Sec. 5).

SEC. 5. REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS ON MAGNETIC MEDIA
.01 If an employer is required to file on magnetic media but fails to do so (or fails to file electronically, in lieu of magnetic media
filing) and does not have an approved waiver on record, the employer will be subject to a penalty of $50 per return in excess of 250.
.02 If employers are required to file original or corrected returns on magnetic media, but such filing would create a hardship, they
may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Information Returns
on Magnetic Media, to IRS/MCC.
.03 Even though an employer may submit as many as 250 corrections on paper, IRS encourages magnetically or electronically
submitted corrections. Once the 250 threshold has been met, filers are required to submit any additional returns magnetically or
electronically. However, if a waiver for an original filing is approved, any corrections for the same type of returns will be covered
under this waiver.
.04 Generally, only the employer may sign the Form 8508. A transmitter may sign if given power of attorney; however, a letter
signed by the employer stating this fact must be attached to the Form 8508.
.05 A transmitter must submit a separate Form 8508 for each employer. Do not submit a list of employers.
.06 All information requested on the Form 8508 must be provided to IRS for the request to be processed.
.07 The waiver, if approved, will provide exemption from magnetic media filing for the current tax year only. Employers may not
apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.
.08 Form 8508 may be photocopied or computer-generated as long as it contains all the information requested on the original
form.
.09 Filers are encouraged to submit Form 8508 to IRS/MCC at least 45 days before the due date of the returns.
.10 File Form 8508 for Forms W-2 with IRS/MCC, not SSA.
.11 Waivers are evaluated on a casebycase basis and are approved or denied based on criteria set forth under section 6011(e) of
the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/MCC to respond to a waiver request.
.12 If a waiver request is approved, the transmitter should keep the approval letter on file.
.13 An approved waiver from filing Forms 8027 on magnetic media does not provide exemption from all filing. The employer
must timely file Form 8027 on acceptable paper forms with the Andover Service Center. The transmitter should also send a copy of
the approved waiver to the Andover Service Center where the paper returns are filed.

SEC. 6. APPLICATION FOR MAGNETIC/ELECTRONIC REPORTING
.01 For the purposes of this revenue procedure, the EMPLOYER is the organization supplying the information and the TRANSMITTER is the organization preparing the magnetic/electronic file and/or sending the file to IRS/MCC. The employer and the transmitter may be the same entity. Employers or their transmitters are required to complete Form 4419, Application for Filing Information Returns Magnetically/Electronically.
.02 Form 4419 can be submitted at any time during the year; however, it should be submitted to IRS/MCC at least 30 days before
the due date of the return(s). IRS will act on an application and notify the applicant, in writing, of authorization to file. A fivecharacter alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an acknowledgment letter within 15 to 45
days of receipt of the application. Magnetic/electronic returns may not be filed with IRS until the application has been approved and
a TCC assigned. Include your TCC in any correspondence with IRS/MCC.
.03 If you file information returns other than Form 8027 on magnetic media, you must obtain a separate TCC for those types of returns. The TCC assigned for Forms 8027 is to be used for the processing of these forms only.
.04 Upon approval, a magnetic media reporting package containing the current revenue procedure, forms, and instructions will be
sent to the attention of the contact person indicated on Form 4419. Annually, thereafter, IRS/MCC will send the transmitter a package containing the current revenue procedure and forms. This package will continue to be sent to the contact person indicated on the
Form 4419 unless IRS/MCC has been notified in writing of any changes or updates. After you have received approval to file magnetically/electronically, you do not need to reapply each year; however, notify IRS in writing if:
(a) You change your name or the name of your organization, so that your files may be updated to reflect the proper name;
(b) You discontinue filing on magnetic media for two years (your TCC may have been reassigned).
.05 For filers who plan to submit for multiple employers, IRS encourages transmitters to submit one application and to use one
TCC for all employers.

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.06 Only employers or transmitters using equipment compatible with IRS equipment will have their application approved.
.07 If your magnetic media files have been prepared for you in the past by a transmitter, and you now have computer equipment
compatible with that of IRS and wish to prepare your own files, you must request your own five-character alpha/numeric TCC by filing an application, Form 4419, as described in Sec. 6.02.

SEC. 7. FILING OF FORM 8027 MAGNETICALLY/ELECTRONICALLY
.01 Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, must accompany all magnetic media
shipments. If you file for multiple employers and have the authority to sign the affidavit on Form 4804, you should also submit
Form 4802, Transmittal of Information Returns Reported Magnetically/Electronically (Continuation). For electronic transmissions,
the Form 4804 and Form 4802, if applicable, must be mailed or faxed the same day as the electronic transmission.
.02 The employer MUST sign Form 4804; however, an agent (transmitter, service bureau, paying agent, or disbursing agent) may
sign Form 4804 for the employer. To do this, the agent must have the authority to sign for the employer under an agency agreement
(either oral, written, or implied) that is valid under the state law and must add to his or her signature the caption “For: (name of employer)”.
NOTE: Failure to sign the Form 4804 may delay processing or will result in your file being returned to you unprocessed.
.03 Although a duly authorized agent may sign the Form 4804, the employer is responsible for the accuracy of the Form 4804 and
the returns filed. The employer will be liable for penalties for failure to comply with filing requirements.
.04 Be sure to include Form 4804, 4802 or computer-generated substitutes with your magnetic media shipment. DO NOT MAIL
YOUR MAGNETIC MEDIA AND THE TRANSMITTAL DOCUMENTS SEPARATELY.
.05 Indicate on Form 4804, in the block captioned “Combined Total Payee Records,” the total number of establishments being reported in this shipment. This figure should match the total number of records in your magnetic/electronic file.
.06 DO NOT SUBMIT THE SAME INFORMATION ON PAPER FORMS THAT YOU SUBMIT MAGNETICALLY/
ELECTRONICALLY. This does not mean that corrected documents are not to be filed. If a return has been prepared and submitted improperly, you must file a corrected return as soon as possible. Refer to Part A, Sec. 12 for requirements and instructions for filing corrected returns.
.07 If an allocation of tips is based on a good faith agreement, a copy of this agreement must accompany the submission.
.08 If, under Rev. Proc. 86–21, 1986–1 C.B. 560, the District Director granted the establishment a percentage of gross receipts of
less than 8%, a copy of the determination letter must be sent with the submission. Employers with more than one establishment can
receive approval from one district in each Internal Revenue Service region where the establishments are located (See sec.
31.6053–3(h)(4) of the Employment Tax Regulations).
.09 Before submitting your magnetic/electronic file, include the following:
(a) A signed Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically, along with a Form 4802,
Transmittal of Information Returns Reported Magnetically/Electronically(Continuation), if you submit data for multiple employers. These forms must be mailed or faxed the same day electronic files are submitted.
(b) Your media (tape, diskette, or cartridge) with an external identifying label. Notice 210 describes the information which
should be included on this self-prepared label.
(c) On the outside of the shipping container, affix the label, IRB Special Projects. This label is included in this publication.
Note: See Part B, Sec. 6 for electronic submission requirements.
.10 IRS/MCC will not pay or accept “Collect on Delivery” or “Charged to IRS” shipments of reportable tax information that an
individual or organization is legally required to submit.

SEC. 8. FILING DATES
.01 Magnetic/electronic reporting to IRS for Form 8027 must be on a calendar year basis. The due date of either paper or magnetically reported Forms 8027 is the last day of February. However, Forms 8027 filed electronically are due March 31.
.02 If the due date falls on a Saturday, Sunday, or legal holiday, filing Form 8027 on the next day that is not a Saturday, Sunday, or
legal holiday will be considered timely.

SEC. 9. EXTENSIONS OF TIME TO FILE
.01 An extension of time to file may be requested for Forms 8027, 1099, 1098, 5498, W-2G, W-2, and 1042-S.
.02 Form 8809, Request for Extension of Time To File Information Returns, should be submitted to IRS/MCC. This form may be
used to request an extension of time to file information returns submitted on paper, magnetically or electronically.
.03 Requesting an extension of time for multiple employers may be done by submitting Form 8809 and attaching a list of the employer names and their TINs (EIN or SSN). The listing must be attached to ensure the extension is recorded for all employers.
Form 8809 may be computer-generated or photocopied. Be sure that all the pertinent information is included.

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.04 Requests for extensions of time for multiple employers will be responded to with one approval letter, accompanied by a list of
employers covered under that approval.
.05 As soon as it is apparent that an extension of time to file is needed, Form 8809 may be submitted. When granted, the extension will be for 30 days. It will take a minimum of 30 days for IRS/MCC to respond to an extension request. Under certain circumstances, a request for an extension of time could be denied. When a denial letter is received, any additional or necessary information
may be resubmitted within 20 days. When requesting an extension of time, do not hold your files waiting for a response.
.06 While very difficult to obtain, if an additional extension of time is needed, a second Form 8809 must be submitted before the
end of the initial extension period. Line 7 on the form should be checked to indicate that an additional extension is being requested.
A second 30-day extension will be approved only in cases of extreme hardship or catastrophic events.
.07 Form 8809 must be postmarked no later than the due date of the return for which an extension is requested. If requesting an
extension of time to file several types of forms, use one Form 8809, but the Form 8809 must be postmarked no later than the earliest
due date. For example, if requesting an extension of time to file both Forms 8027 and 5498, submit Form 8809 postmarked on or before the last day of February.
.08 If an extension request is approved, the approval letter should be kept on file. The approval letter or copy of the approval letter for extension of time should not be sent to IRS/MCC with the magnetic/electronic file. When submitting Form 8027 on paper
only to the Andover Service Center, attach a copy of the approval letter. If an approval letter has not been received, send a copy of
the timely filed Form 8809.
.09 Request an extension for only one tax year.
.10 The extension request must be signed by the employer or a person who is duly authorized to sign a return, statement or other
document for the employer.
.11 Failure to properly complete and sign the Form 8809 may cause delays in processing the request or result in a denial. Carefully read and follow the instructions on the back of the Form 8809.
.12 Form 8809 may be obtained by calling 1-800-TAX-FORM (1-800-829-3676).
Note: AN EXTENSION OF TIME TO FILE IS NOT AN EXTENSION TO ISSUE FORM W-2 COPY “A” TO THE
EMPLOYEE.
.13 Request an extension of time to furnish the statements to recipients of Forms W-2 by submitting a letter to IRS/MCC containing the following information:
(a) Employer name
(b) TIN
(c) Address
(d) Type of return (W-2)
(e) Specify that the extension request is to provide W-2 statements to recipients.
(f) Reason for delay
(g) Signature of employer or person duly authorized.
Requests for an extension of time to furnish the statements for Forms W-2 to recipients are not automatically approved; however, if
approved, generally an extension will allow a maximum of 30 additional days from the due date to furnish the statements to the recipients. The request must be postmarked no later than the date on which the statements are due to the recipients.

SEC. 10. PROCESSING OF MAGNETIC/ELECTRONIC RETURNS
.01 All data received at IRS/MCC for processing will be given the same protection as individual returns (Form 1040). IRS/MCC
will process your magnetic/electronic files to ensure the records were formatted and coded according to this revenue procedure.
.02 If the data is formatted incorrectly, the file will be returned for replacement accompanied by a letter of explanation along with
a Media Tracking Slip (Form 9267). When media is returned, it is because IRS/MCC encountered errors (not limited to format) and
was unable to process the media; therefore, requiring a replacement. Open all packages immediately.
.03 Files must be corrected and returned with the Media Tracking Slip (Form 9267) to IRS/MCC within 45 days from the date of
the letter IRS/MCC included with the returned media. A penalty for failure to file correct information returns by the due date will be
assessed if the file is not corrected and returned within the 45 days or if the incorrect file is returned by IRS/MCC for replacement more than two times. A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received.
.04 Files will not be returned to you after successful processing. Therefore, if you want proof that IRS/MCC received your shipment, you may use a carrier that provides proof of delivery.
.05 To distinguish between a correction and a replacement, the following definitions are provided:
(a) A correction is a record submitted by the employer/transmitter to correct a record that was successfully processed by IRS,
but contained erroneous information.

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(b) A replacement is a file that IRS has returned because of format errors or data discrepancies encountered during processing.
After necessary changes have been made, the file must be returned to IRS/MCC for processing.

SEC. 11. PENALTIES
.01 The Revenue Reconciliation Act of 1989 changed the penalty provisions for any documents, including corrections, which are
filed after the original filing date for the return. The penalty for failure to file correct information returns is “time sensitive,” in that
prompt correction of failures to file, or prompt correction of errors on returns that were filed, can lead to reduced penalties.
— The penalty generally is $50 for each information return that is not filed, or is not filed correctly, by the prescribed filing
date, with a maximum penalty of $250,000 per year ($100,000 for certain small businesses with average annual gross receipts, over the most recent 3-year period, not in excess of $5,000,000). The penalty generally is reduced to:
— $30 for each failure to comply if the failure is corrected more than 30 days after the return was due, but on or before August
1 of the calendar year in which the return was due, with a maximum penalty of $150,000 per year ($50,000 for certain small
businesses with average annual gross receipts, over the most recent 3-year period, not in excess of $5,000,000).
— $15 for each failure to comply if the failure is corrected within 30 days after the date the return was due, with a maximum
penalty of $75,000 per year ($25,000 for certain small businesses with average annual gross receipts, over the most recent
3-year period, not in excess of $5,000,000).
.02 Penalties can be waived if failures were due to reasonable cause and not to willful neglect. In addition, section 6721(c) of the
Code provides a de minimis rule that if:
(a) information returns have been filed but were filed with incomplete or incorrect information, and
(b) the failures are corrected on or before August 1 of the calendar year in which the returns were due, then the penalty for
filing incorrect returns (but not the penalty for filing late) will not apply to the greater of 10 returns or one-half of 1 percent
of the total number of information returns you are required to file for the calendar year.
.03 Intentional Disregard of Filing Requirements — If any failure to file a correct information return is due to intentional disregard of the filing and correct information requirements, the penalty is at least $100 per information return with no maximum
penalty.

SEC. 12. CORRECTED RETURNS, SUBSTITUTE FORMS, AND COMPUTERGENERATED FORMS
.01 If returns must be corrected, approved magnetic/electronic filers must provide such corrections magnetically/electronically if
you have 250 or more. If your information is filed magnetically/electronically, corrected returns are identified by using the “Corrected 8027 Indicator” in field position 370 of the employer record. Form 4804 must accompany the shipment, and the box for correction should be marked in Block 1 of the form. (See Part A, Sec. 10.05 for the definition of corrections.)
.02 If corrections are not submitted on magnetic media, employers must submit them on official Forms 8027. Substitute forms
that have been previously approved by IRS, or computergenerated forms that are exact facsimiles of the official form (except for
minor page size or print style deviations), may be submitted without obtaining IRS approval before using the form.
.03 Employers/establishments may send corrected paper Forms 8027 to IRS at the address shown in Part A, Sec. 13.01. Corrected
paper returns are identified by marking the “AMENDED” check box on Form 8027.

SEC. 13. EFFECT ON PAPER RETURNS
.01 If you are filing more than one paper Form 8027, you must attach a completed Form 8027T, Transmittal of Employer’s Annual
Information Return of Tip Income and Allocated Tips, to the Forms 8027 and send to:
Internal Revenue Service Center
Andover, MA 05501
IRS/MCC processes Forms 8027 submitted magnetically/electronically only. Do not send paper Forms 8027 to IRS/MCC.
.02 If part of a submission is filed magnetically/electronically and the rest of the submission is filed on paper Forms 8027, send
the paper forms to the Andover Service Center. For example, you filed your Forms 8027 magnetically/electronically with
IRS/MCC, and later you found that some of the forms you filed need correcting. Because of the low volume of corrections, you submit the corrections on paper Forms 8027. You must send these corrected Forms 8027 along with Form 8027-T to the Andover
Service Center.

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SEC. 14. DEFINITIONS
ELEMENT

DESCRIPTION

EIN

A nine-digit Employer Identification Number which has been assigned by IRS to the reporting entity.

Employer

The organization supplying their information.

Establishment

A large food or beverage establishment that provides food or beverage for consumption on the
premises; where tipping is a customary practice; and where there are normally more than 10 employees who work more than 80 hours on a typical business day during the preceding calendar year.

More than 10
employees

An employer is considered to have more than 10 employees on a typical business day during the
calendar year if half the sum of: the average number of employee hours worked per business day in the
calendar month in which the aggregate gross receipts from food and beverage operations were greatest, plus the average number of employee hours worked per business day in the calendar month in
which the total aggregate gross receipts from food and beverage operations were the least, equals
more than 80 hours.

Employees hours
worked

The average number of employee hours worked per business day during a month is figured by
dividing the total hours worked during the month by all your employees who are employed in a food
or beverage operation by the average number of days in the month that each food or beverage operation at which these employees worked was open for business.

File

For the purpose of this revenue procedure, a file consists of all magnetic/electronic records submitted
by an Employer or Transmitter.

Transmitter

Person or organization preparing magnetic/electronic file(s). May be Employer or agent of Employer.

Transmitter
Control
Code (TCC)

A five-character alpha/numeric code assigned by IRS to the transmitter prior to actual filing magnetically/electronically. This number is inserted in the record and must be present. An application (Form
4419) must be filed with IRS to receive this number.

Replacement

A replacement is an information return that IRS/MCC has returned to the transmitter due to errors encountered during processing.

Correction

A correction is an information return submitted by the transmitter to correct an information return that
was previously submitted to and processed by IRS/MCC, but contained erroneous information.

PART B. MAGNETIC/ELECTRONIC SPECIFICATIONS
SEC. 1. GENERAL
.01 The magnetic/electronic specifications contained in this part of the revenue procedure define the required format and contents
of the records to be included in the file.
.02 A self-prepared media label must be affixed to each piece of media submitted for processing. Notice 210 provides instructions
on how to complete a self-prepared media label.
.03 The record format in Part B, Sec. 7, applies to both magnetic and electronic files.

SEC. 2. TAPE SPECIFICATIONS
.01 In most instances, IRS/MCC can process any compatible tape files. Compatible tape files must meet any one set of the following:
(a) 9-track EBCDIC (Extended Binary Coded Decimal Interchange Code) with;
(1) Odd Parity and
(2) A density of 1600 or 6250 BPI.
(3) If you use Unisys Series 1100, you must submit an interchange tape.
(b) 9-track ASCII (American Standard Coded Information Interchange) with;
(1) Odd Parity and
(2) A density of 1600 or 6250 BPI.

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Please be consistent in the use of recording codes and density on your files. If files are generated in more than one recording code
and/or density, multiple shipments would be appreciated.
.02 All compatible tape files must have the following characteristics:
(a) 1⁄2 inch mylar base, oxide coated; computer grade magnetic tape on reels up to 2400 feet (731.52 m) within the following
specifications:
(1) Tape thickness: 1.0 or 1.5 mils
(2) Reel diameter: 10.5 inch (26.67 cm), 8.5 inch (21.59 cm), or 7 inch (17.78 cm).
.03 All records have a fixed record length of 372 positions.
.04 The tape record defined in this revenue procedure may be blocked or unblocked, subject to the following:
(a) All records except the header and trailer labels may be blocked.
(b) If records are blocked, the block can not exceed 32,736 tape positions. The block length must be evenly divisible by 372
(c) If the use of blocked records would result in a short block, all remaining positions of the block MUST be filled with 9’s.
DO NOT PAD A BLOCK WITH BLANKS. Padding a block with blanks will result in a short record, which will cause
math computation errors. Your tape will then be returned for replacement.
.05 For the purposes of this revenue procedure, the following conventions must be used:
Header label:
(a) Transmitters may use standard headers provided they begin with 1HDR, HDR1, VOL1, or VOL2.
(b) Consists of a maximum of 80 positions.
(c) Header and trailer labels are optional unless more than one reel is being submitted. If more than one reel is being submitted,
header and trailer labels are required. IRS/MCC PREFERS STANDARD OR ANSI LABELED TAPES. IF YOU SUBMIT
AN UNLABELED TAPE, THIS MUST BE INDICATED ON THE EXTERNAL LABEL AND ON THE FORM 4804 OR
COMPUTERGENERATED SUBSTITUTE.
Trailer label:
(a) Standard trailer labels may be used provided that they begin with 1EOR, 1EOF, EOV1, or EOV2.
(b) Consists of a maximum of 80 positions.
(c) Header and trailer labels are optional unless more than one reel is being submitted. If more than one reel is being submitted, header and trailer labels are required.
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) May follow the header label and precede and/or follow the trailer label.

SEC. 3. DISKETTE SPECIFICATIONS
IRS/MCC has discontinued processing 5 1⁄4 inch diskettes. Filers who use 5 1⁄4 inch diskettes must now use another method
of submitting information returns magnetically/electronically.
.01 To be compatible, a diskette file must meet the following specifications:
(a) 3 1⁄2 inches in diameter.
(b) Data must be recorded in standard ASCII code.
(c) Records must be fixed length of 372 bytes.
(d) Delimiter character commas (,) must not be used.
(e) Positions 371 and 372 of each record have been reserved for carriage return/line feed (cr/lf) characters.
(f) Filename of ATMTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette,
the filename will contain a 3-digit extension. This extension will indicate the sequence of the diskette within the file. For
example, the first diskette will be named ATMTAX.001, the second diskette will be ATMTAX.002, etc.
(g) A file may contain more than one diskette as long as the filename conventions are adhered to.
(h) Diskettes must meet one of the following specifications:
Capacity

Tracks

Sides/Density

Sector Size

1.44 mb
1.44 mb
1.2 mb

96tpi
135tpi
96tpi

hd
hd
hd

512
512
512

.02 IRS requires that 3 1⁄2 inch diskettes be created using MS/DOS. Diskettes created using other operating systems are not acceptable.
.03 Deviations from the prescribed format are not acceptable.

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SEC. 4. TAPE CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a) Must be IBM 3480, 3490, 3490E, or AS400 compatible.
(b) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Tape cartridges must be 1⁄2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by
1-inch in dimension.
(2) Magnetic tape must be chromium dioxide particle based 1⁄2-inch tape.
(3) Cartridges must be 18-track or 36-track parallel (See Note).
(4) Cartridges must contain 37,871 CPI or 75,742 CPI (characters per inch).
(5) Mode must be full function.
(6) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information
Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,736 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item b above). The block length must be evenly divisible by 372.
(d) Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
Note: Filers should indicate on the external media label and transmittal Form 4804 whether the cartridge is 36-track or
8-track.

SEC. 5. 8MM, 4MM, AND QUARTER INCH CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics.
(b) Created from an AS400 operating system only.
(c) 8mm (.315-inch) tape cartridges must be 2 1⁄2-inch by 3 3⁄4-inch.
(d) The 8mm tape cartridges must meet the following specifications:
Tracks

Density

Capacity

1
1

20 (43245 BPI)
21 (45434 BPI)

2.5 Gb
5 Gb

(e) Mode must be full function.
(f) Compressed data is not acceptable.
(g) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge.
(h) A file may consist of more than one cartridge, however, no more than 250,000 documents may be transmitted per file or per
cartridge. The filename, for example; ATMTAX, will contain a three digit extension. The extension will indicate the sequence of the cartridge within the file 1 of 3, 2 of 3, and 3 of 3 and would appear in the header label ATMTAX.001, ATMTAX.002, and ATMTAX.003 on each cartridge of the file.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,736 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9’s; however, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks.

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1999–49 I.R.B.

(c) All records, except the header and trailer labels, may be blocked or unblocked. A record must not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical
records within a block (the blocking factor) must be constant in every block with the exception of the last block which may be
shorter (see item (b) above). The block length must be evenly divisible by 372.
(d) Records must not span blocks.
(e) No more than 250,000 documents per cartridge and per file.
.03 Various COPY commands have been successful; however, the SAVE OBJECT COMMAND is not acceptable.
.04 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. ATMTAX may be used as a suggested filename.
.05 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111 (8421).
(c) May follow the header label and precede and/or follow the trailer label.
.06 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or may not begin with a tapemark,
but must end with a trailer label. Any data beyond the trailer label cannot be read by IRS programs.
.07 4mm (.157-inch) cassettes are now acceptable with the following specifications:
(a) 4mm cassettes must be 2 1⁄4-inch by 3-inch.
(b) The tracks are 1 (one).
(c) The density is 19 (61000 BPI).
(d) The typical capacity is DDS (DAT data storage) at 1.3 Gb or 2 Gb, or DDS-2 at 4 Gb.
(e) The general specifications for 8mm cartridges will also apply to the 4mm cassettes.
.08 Various Quarter Inch Cartridges (QIC) (1⁄4-inch) are also acceptable.
(a) QIC cartridges must be 4⬙ by 6⬙.
(b) QIC cartridges must meet the following specifications:
Size

Tracks

Density

Capacity

QIC-24
QIC-120
QIC-150
QIC-525
QIC-1000
QIC-2Gb

8/9
15
18
26
30
42

5 (8000 BPI)
15 (10000 BPI)
16 (10000 BPI)
17 (16000 BPI)
21 (36000 BPI)
34 (40640 BPI)

45Mb or 60Mb
120Mb or 200Mb
150Mb or 250Mb
525Mb
1Gb
2Gb

(c) The general specifications that apply to 8mm cartridges will also apply to QIC cartridges.

SEC. 6. ELECTRONIC FILING SPECIFICATIONS
01. IRS/MCC is in the process of updating all of its hardware and software for electronic filing. As a result, effective October 31,
1999, the Information Reporting Program Bulletin Board System (IRP-BBS) and 3780 bisynchronous electronic filing systems will
be discontinued. Starting November 1, 1999, users will be able to access the new electronic system via analog and ISDN BRI connections. Bisynchronous electronic filing will no longer be supported. The new system is designed to support the electronic filing of
information returns only. The new telephone number for electronic filing is 1-304-262-2400. Publications and forms will no longer
be electronically available from MCC. Users needing the publications and forms that were formerly available on the IRP-BBS will
need to download them from the IRS website at www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
.02 Electronic filing of Forms 8027, originals’ replacements and corrections, is offered as an alternative to magnetic media (tape,
tape cartridge, or diskette) or paper filing, but is not a requirement. Transmitters filing electronically will fulfill the magnetic media
requirements for those payers who are required to file magnetically. It may also be used by payers who are under the filing threshold
requirement, but would prefer to file their information returns this way. If the original file was sent magnetically, but was returned
for replacement, the replacement may be transmitted electronically.
.03 The electronic filing of Forms 8027 is not affiliated with the Form 1040 electronic filing program. These two programs are
totally independent, and filers must obtain separate approval to participate in each of them. All inquiries concerning the electronic
filing of information returns should be directed to IRS/MCC. IRS/MCC personnel cannot answer questions or assist taxpayers in the
filing of Form 1040 tax returns. Filers with questions of this nature will be directed to the Customer Service toll-free number (1-800829-1040) for assistance.
.04 Filers participating in the electronic filing program for Forms 8027 will submit their returns to IRS/MCC electronically and
not through magnetic media or paper filing. Files submitted in this manner must be in standard ASCII code.

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December 6, 1999

.05 The format of the record is the same for electronically filed records as they are for 3 1⁄2-inch diskettes, tapes, and tape cartridges and must be in standard ASCII code.
.06 Filers must obtain, or already have, a Transmitter Control Code (TCC) assigned to them prior to submitting their files electronically. (Filers who currently have a TCC for magnetic media filing do not have to request a second TCC for electronic filing.)
Refer to Part A, Sec. 6, for information on how to obtain a TCC.
.07 Once a TCC is obtained, electronic filers assign their own passwords and do not need prior or special approval.
.08 With all passwords, it is the user’s responsibility to remember the password and not allow the password to be compromised.
Passwords are user assigned at first logon and are up to 8 alpha/numerics, which are case sensitive. However, if filers do forget
their password, call 304-263-8700 for assistance.
Note: Passwords are case sensitive.
.09 Electronically filed Forms 8027 may be submitted to IRS/MCC 24 hours a day, 7 days a week. Technical assistance will be
available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time by calling 304-263-8700.
.10 Do not transmit data electronically from January 1 through January 5. This will allow time for IRS/MCC to update its system
to reflect current year changes.
.11 Data compression is encouraged when submitting Forms 8027 electronically. MCC has the ability to decompress files created
using several popular software compression programs such as ARC, COMPRESS, LHARC, and PKZIP. The time required to transmit Forms 8027 electronically will vary depending on the modem speed and the type of data compression used, if any. The time required to transmit a file can be reduced by as much as 85 percent by using software compression and hardware compression.
The following are actual transmission rates for Forms 1099 achieved in test uploads at MCC using compressed files. The actual
transmission rates will vary depending on the modem speeds.
Transmission Speed
in bps

1000 Records

10,000 Records

100,000 Records

19.2K

34 Sec.

6 Min.

60 Min.

56K

20 Sec.

3 1⁄2 Min.

33 Min.

128K (ISDN)

8 Sec.

1 Min.

10 Min.

.12 Files submitted electronically will be assigned a unique filename by the FIRE system ( users may name the file anything they
choose from their end). The IRS assigned filename will consist of submission type [ORIG (original), CORR (correction), and REPL
(replacement)], the filer’s TCC, and a four digit number sequence. The sequence number will be incremented for every file sent.
For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename would be
ORIG.44444.0001. Record the filename. This information will be needed by MCC in order to identify the file if assistance is required and to complete Form 4804.
.13 Filers are advised not to resubmit an entire file if records were omitted from the original transmission. This will result in
duplicate filing. A new file should be sent consisting of the records that had not previously been submitted.
.14 The results of the electronic transmission will be available in the (F)ile Status area of the electronic system within 2 weeks;
however, no further processing will occur until the signed Form 4804 is received. The transmitter must mail or fax the signed Form
4804 the same day the electronic transmission is made. No return is considered filed until a Form 4804 is received by IRS/MCC.
.15 Form 4804 can be ordered by calling the IRS toll-free forms and publication order number 1-800-TAX-FORM, (1-800-8293676), or it may be computer-generated. It may also be obtained from the Internet at www.irs.gov. If a filer chooses to computergenerate Form 4804, all of the information contained on the original form, including the affidavit, must also be contained on the
computer-generated form. This form is also contained in the back of this publication.
.16 Forms 4804 may be mailed to the following address:
If by Postal Service, air or truck freight:
IRS-Martinsburg Computing Center
Information Reporting Program
Attn: Electronic Filing Coordinator
230 Murall Drive
Kearneysville, WV 25430
Please indicate on the envelope the following message:
CONTAINS FORM 4804 INFORMATION – NO MAGNETIC MEDIA

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1999–49 I.R.B.

.17 Contact the Electronic Filing System by dialing 304-262-2400. This number supports analog connections from 1200bps to
56Kbps or ISDN BRI 128Kbps connections. The system can be accessed via Dial-up network/web browser or a communications
software package such as Hyperterminal, Procomm, PCAnywhere, etc. The Dial-up network/web browser will provide an Internetlike look without going through the Internet (point to point). If you do not have this capability, a text interface will be provided that
can be accessed via typical communications software and will perform similar to the former IRP-BBS.
.18 Due to the large number of communication products available, it is impossible to provide specific information on a particular
software package or hardware configuration. Filers should contact their software or hardware supplier for assistance. Your
browser will need to be capable of file uploads (i.e., Internet Explorer 4.0, Netscape Navigator 2.0 or higher). The following are
some general instructions (many of these settings may already be set by default in your software):
(a) Dial-up network settings:
(1) Set dial-up server type to PPP
(2) Set network protocol to TCP/IP
(3) Enable software compression
(4) Enable PPP LCP extensions
(b) Browser settings:
(1) Set to receive “cookies”
(2) Enable JavaScript or Jscript
(3) Browser must be capable of file uploads (i.e. Internet Explorer 4.0, Netscape 2.0 or higher)
(4) Enter the URL Address of http://10.225.224.2
(c) Communications software settings should be:
– No parity
– Eight data bits
– One stop bit
– Full duplex
(d) Hardware features
(1) Enable hardware flow control
(2) Enable modem error control
(3) Enable modem compression
.19 The first time you log on to the electronic system, you will need to create a new account. After completing the registration information, you will be prompted for a user name and password. Passwords are assigned by the user at first logon and are up to 8
alpha/numerics which are case sensitive. Remember your exact logon name and password for future reference. If you forget your
logon name and/or password, call IRS/MCC at 304-263-8700 for assistance.
.20 Once you are an established user, select the logon option and then you will be prompted for your logon name and password.
Once you have entered this information, you will be at the Main Menu. Select one of the following options:
(a) Electronic Filing - this option will allow you to send your files and provide us with current mailing address information in
case we need to send any correspondence.
(b) File Status - this option will display the results of your file transfer and will be posted in this area.
Common Problems Associated with Electronic Filing
1. No Form 4804, Transmittal of Information Returns Reported Magnetically/Electronically.
Even though you have sent your Forms 8027 electronically, you still need to fax or mail the Form 4804. See Part B, Sec. 6.16 for the
mailing address. The fax number is 304-264-5602.
2. Transmitter does not dial back to the electronic system to determine file acceptability.
Within 2 weeks the results of your file transmission will be posted under the option called File Status. It is very important that you
check this option because if your file is bad we must receive a replacement within 45 days.
3. Transmitter compresses several files into one.
Only compress one file at a time. For example, if you have 10 uncompressed files to send, compress each file separately and send 10
separate compressed files.

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4. Transmitter sends a file and File Status indicates that the file is good, but the transmitter wants to send a replacement or correction file to replace the original/correction/replacement file.
Once a file has been transmitted, you cannot send a replacement file unless File Status indicates the file is bad. If you do not want
us to process the file, you must first contact us at 304-263-8700 to see if this is a possibility.
5. Transmitter sends an original file that is good, then sends a correction file for the entire file even though there are only a few
changes.
The correction file, containing the proper coding, should only contain the records needing correction, not the entire file.
6. File format is formatted as EBCDIC.
File must be standard ASCII code. All files submitted electronically must be in standard ASCII Code.

SEC. 7. RECORD FORMAT AND LAYOUT
FORM 8027 RECORD FORMAT
Field
Position

Field Title

Length

Description and Remarks

1

Establishment
Type

1

REQUIRED. This digit identifies the kind of establishment. Enter the number
which describes the type of establishment, as shown below:
1 for an establishment that serves evening meals only (with or without alcoholic
beverages).
2 for an establishment that serves evening meals and other meals (with or without
alcoholic beverages).
3 for an establishment that serves only meals other than evening meals (with or
without alcoholic beverages).
4 for an establishment that serves food, if at all, only as an incidental part of the
business of serving alcoholic beverages.

2–6

Establishment
Serial Numbers

5

REQUIRED. These five digit Serial Numbers are for identifying individual
establishments of an employer reporting under the same EIN. The employer shall
assign each establishment a unique number. NUMERICS ONLY.

7–46

Establishment
Name

40

REQUIRED. Enter the name of the establishment. Left justify and fill unused
positions with blanks. ALLOWABLE CHARACTERS ARE ALPHAS, NUMERICS, BLANKS, HYPHENS, AMPERSANDS, AND SLASHES.

47–86

Establishment
Street Address

40

REQUIRED. Enter the mailing address of the establishment. Street address should
include number, street, apartment or suite number (or P O Box if mail is not delivered to street address). Left justify and blank fill.

Note: The only allowable characters are alphas, blanks, numerics, ampersands, hyphens and slashes. Punctuation such as
periods and commas are not allowed and will cause your file to be returned. For example, the address 210 N. Queen St.,
Suite #300 must be entered as 210 N Queen St Suite 300.
87–111

Establishment
City

25

REQUIRED. Enter the city, town, or post office. Left justify and blank fill.

Note: The only allowable characters are alphas, blanks, numerics, ampersands, hyphens and slashes. Punctuation such as
periods and commas are not allowed and will cause your file to be returned. For example, the city St. Louis must be entered
as St Louis.

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1999–49 I.R.B.

FORM 8027 RECORD FORMAT
Field
Position
112–113

Field Title
Establishment
State

Length
2

Description and Remarks
REQUIRED. Enter state code of the establishment; must be one of the following:

STATE

CODE

STATE

CODE

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri

AL
AK
AZ
AR
CA
CO
CT
DE
DC
FL
GA
HI
ID
IL
IN
IA
KS
KY
LA
ME
MD
MA
MI
MN
MS
MO

Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

MT
NE
NV
NH
NJ
NM
NY
NC
ND
OH
OK
OR
PA
RI
SC
SD
TN
TX
UT
VT
VA
WA
WV
WI
WY

114–122

Establishment
ZIP Code

9

REQUIRED. Enter the complete nine-digit ZIP Code of the establishment. If using
a five-digit ZIP Code, left justify the five-digit ZIP Code and fill the remaining four
positions with blanks.

Note: MUST BE NINE NUMERICS OR FIVE NUMERICS AND FOUR BLANKS. DO NOT ENTER THE DASH.
123–131

Employer
Identification
Number

9

REQUIRED. Enter the nine-digit number assigned to the employer by IRS. DO
NOT ENTER HYPHENS, ALPHAS, ALL 9’s, OR ALL ZEROS.

132–171

Employer
Name

40

REQUIRED. Enter the name of the employer as it appears on your tax forms (e.g.,
Form 941). Any extraneous information must be deleted. Left justify and blank fill.
ALLOWABLE CHARACTERS ARE ALPHAS, BLANKS, NUMERICS, AMPERSANDS, HYPHENS, AND SLASHES.

172–211

Employer
Street Address

40

REQUIRED. Enter mailing address of employer. Street address should include
number, street, apartment or suite number (or P O Box if mail is not delivered to
street address). Left justify and blank fill.

Note: The only allowable characters are alphas, blanks, numerics, ampersands, hyphens and slashes. Punctuation such as
periods and commas are not allowed and will cause your file to be returned. For example, the address 210 N. Queen St.,
Suite #300 must be entered as 210 N Queen St Suite 300.

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December 6, 1999

FORM 8027 RECORD FORMAT
Field
Position

Field Title

Length

Description and Remarks

212–236

Employer City

25

REQUIRED. Enter the city, town, or post office. Left justify and blank fill.

Note: The only allowable characters are alphas, blanks, numerics, ampersands, hyphens and slashes. Punctuation such as
periods and commas are not allowed and will cause your file to be returned. For example, the city St. Louis must be entered
as St Louis.
237–238

Employer State

2

REQUIRED. Enter state code of employer. Must be one of the abbreviations
shown in the state abbreviation table for Establishment State (field positions
112–113).

239–247

Employer ZIP
Code

9

REQUIRED. Enter the complete nine-digit ZIP Code of the employer. If using a
five-digit ZIP Code, left justify the five-digit ZIP Code and fill the remaining four
positions with blanks.

Note: MUST BE NINE NUMERICS OR FIVE NUMERICS AND FOUR BLANKS. DO NOT ENTER THE DASH.
248–259

Charged Tips

12

REQUIRED. Enter the total amount of tips that are shown on charge receipts for
the calendar year. Amount must be entered in U.S. dollars and cents. The right most
two positions represent cents. Right justify and zero fill. If no entry, zero fill. NUMERICS ONLY. DO NOT ENTER DECIMAL POINTS, DOLLAR SIGNS,
OR COMMAS.

260–271

Charged Receipts

12

REQUIRED. Enter the total sales for the calendar year other than carry-out sales
or sales with an added service charge of 10 percent or more, that are on charge receipts with a charged tip shown. This includes credit card charges, other credit
arrangements, and charges to a hotel room unless the employer’s normal accounting
practice consistently excludes charges to a hotel room. Do not include any state or
local taxes in the amount reported. Amount must be entered in U.S. dollars and
cents. The right-most two positions represent cents. Right justify and zero fill. If no
entry, zero fill. NUMERICS ONLY. DO NOT INCLUDE DOLLAR SIGNS,
DECIMAL POINTS, OR COMMAS.

272–283

Service Charge
Less Than 10
Percent

12

REQUIRED. Enter the total amount of service charges less than 10 percent added
to customer’s bills and were distributed to your employees for the calendar year. In
general, service charges added to the bill are year. In general, service charges added
to the bill are not tips since the customer does not have a choice. These service
charges are treated as wages and are included on Form W-2. For a more detailed explanation, see Rev. Rul. 1928, 19691 C.B. 270. Amount must be entered in U.S.
dollars and cents. The right-most two positions represent cents. Right justify and
zero fill. If no entry, zero fill. NUMERICS ONLY. DO NOT ENTER DOLLAR
SIGNS, DECIMAL POINTS, OR COMMAS.

284–295

Indirect Tips
Reported

12

REQUIRED. Enter the total amount of tips reported by indirectly tipped employees (e.g., busboys, service bartenders, cooks) for the calendar year. Do not include
tips received by employees in December of the prior tax year but not reported until
January. Include tips received by employees in December of the tax year being reported, but not reported until January of the subsequent year. Amount must be entered in U.S. dollars and cents. The right-most two positions represent cents. Right
justify and zero fill. If no entry, zero fill. NUMERICS ONLY. DO NOT ENTER
DOLLAR SIGNS, DECIMAL POINTS, OR COMMAS.

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1999–49 I.R.B.

FORM 8027 RECORD FORMAT
Field
Position

Field Title

Length

Description and Remarks

296–307

Direct Tips
Reported

12

REQUIRED. Enter the total amount of tips reported by directly tipped employees
(e.g., waiters, waitresses, bartenders) for the calendar year. Do not include tips received by employees in December of the prior tax year but not reported until January. Include tips received by employees in December of the tax year being reported,
but not reported until January of the subsequent year. Amount must be entered in
U.S. dollars and cents. The right-most two positions represent cents. Right justify
and zero fill. If no entry, zero fill. NUMERICS ONLY. DO NOT ENTER DOLLAR SIGNS, DECIMAL POINTS, OR COMMAS.

308–319

Total Tips
Reported

12

REQUIRED. Enter the total amount of tips reported by all employees (both
indirectly tipped and directly tipped) for the calendar year. Do not include tips received in December of the prior tax year but not reported until January. Include tips
received in December of the tax year being reported, but not reported until January
of the subsequent year. Amount must be entered in U.S. dollars and cents. The rightmost two positions represent cents. Right justify and zero fill. If no entry, zero fill.
NUMERICS ONLY. DO NOT ENTER DOLLAR SIGNS, DECIMAL
POINTS, OR COMMAS.

320–331

Gross Receipts

12

REQUIRED. Enter the total gross receipts from the provision of food and/or beverages for this establishment for the calendar year. Do not include receipts for
carry-out sales or sales with an added service charge of 10 percent or more. Do not
include in gross receipts charged tips (field positions 248–259) shown on charge receipts unless you have reduced the cash sales amount because you have paid cash to
tipped employees for tips they earned that were charged. Do not include state or
local taxes in gross receipts. If you do not charge separately for food or beverages
along with other services (such as a package deal for food and lodging), make a
good faith estimate of the gross receipts attributable to the food or beverages. This
estimate must reflect the cost of providing the food or beverages plus a reasonable
profit factor. Include the retail value of complimentary food or beverages served to
customers if tipping for them is customary and they are provided in connection with
an activity engaged in for profit whose receipts would not be included as gross receipts from the provision of food or beverages (e.g., complimentary drinks served to
customers at a gambling casino). Amount must be entered in U.S. dollars and cents.
The right-most two positions represent cents. Right justify and zero fill. If no entry,
zero fill. NUMERICS ONLY. DO NOT ENTER DOLLAR SIGNS, DECIMAL
POINTS, OR COMMAS.

332–343

Tip Percentage
Rate Times

12

REQUIRED. Enter the amount determined by multiplying Gross Receipts for the
year (field positions 320–331) by the Tip Percentage Rate (field positions 344–347).
For example, if the value of Gross Receipts is “000045678900” and Tip Percentage
Rate is “0800”, multiply $456,789.00 by .0800 to get $36,543.12 and enter
“000003654312”. If tips are allocated using other than the calendar year, enter
zeros; this may occur if you allocated tips based on the time period for which wages
were paid or allocated on a quarterly basis. Amount must be entered in U.S. dollars
and cents. The right-most two positions represent cents. Right justify and zero fill.
NUMERICS ONLY. DO NOT ENTER DOLLAR SIGNS, DECIMAL
POINTS, OR COMMAS.

344–347

Tip Percentage
Rate

4

REQUIRED. Enter 8 percent (0800) unless a lower rate has been granted by the
District Director. The determination letter must accompany the magnetic/electronic
submission. NUMERICS ONLY. DO NOT ENTER DECIMAL POINT.

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FORM 8027 RECORD FORMAT
Field
Position

Field Title

Length

Description and Remarks

348–359

Allocated Tips

12

REQUIRED. If Tip Percentage Rate times Gross Receipts (field positions
332–343) is greater than Total Tips Reported (field positions 308–319), then the difference becomes Allocated Tips. Otherwise, enter all zeros. If tips are allocated
using other than the calendar year, enter the amount of allocated tips from your
records. Amount must be entered in U.S. dollars and cents. The right-most two positions represent cents. Right justify and zero fill. NUMERICS ONLY. DO NOT
ENTER DOLLAR SIGNS, DECIMAL POINTS, OR COMMAS.

360

Allocation
Method

1

REQUIRED. Enter the allocation method used if Allocated Tips (field positions
348–359) are greater than zero as follows:
1) for allocation based on hours worked.
2) for allocation based on gross receipts.
3) for allocation based on a good faith agreement.
The good faith agreement must accompany the magnetic/electronic submission. If
Allocated Tips are equal to zero, enter 0 (zero).

Note: Under Section 1571 of the Tax Reform Act of 1986, the method of allocation of tips based on the number of hours
worked as described in Section 31.6053–3(f)(1)(iv) may be utilized only by an employer that employs less than the equivalent
of 25 fulltime employees at the establishment during the payroll period. Section 31.6053–3(j)(19) provides that an employer
is considered to employ less than the equivalent of 25 fulltime employees at an establishment during a payroll period if the
average number of employee hours worked per business day during the payroll period is less than 200 hours.
361–364

Number of
Directly Tipped
Employees

4

REQUIRED. Enter the total number (must be greater than zero) of directly tipped
employees employed by the establishment for the calendar year. Right justify and
zero fill. NUMERICS ONLY.

365–369

Transmitter
Control Code
(TCC)

5

REQUIRED. Enter the 5-digit Transmitter Control Code assigned by the IRS.

370

Corrected 8027
Indicator

1

REQUIRED. Enter blank for original return. Enter “G” for corrected return. A
corrected return must be a complete new return replacing the original return.

371–372

Blank or cr/lf

2

Magnetic/electronic filers are required to enter blanks. Diskette filers may enter
blanks or the carriage line feed characters (cr/lf).
FORM 8027 RECORD LAYOUT

Establishment
Type

Establishment
Serial Number

Establishment
Name

Establishment
Street Address

1

2–6

7–46

47–86

Establishment
City

Establishment
State

Establishment
ZIP Code

Employer
Identification
Number

87–111

112–113

114–122

123–131

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1999–49 I.R.B.

FORM 8027 RECORD LAYOUT

Employer Name

Employer Street
Address

Employer City

Employer State

132–171

172–211

212–236

237–238

Employer Zip
Code

Charged Tips

Charged Receipts

Service Charge
Less Than 10
Percent

239–247

248–259

260–271

272–283

Indirect Tips
Reported

Direct Tips
Reported

Total Tips
Reported

Gross Receipts

284–295

296–307

308–319

320–331

Tip Percentage
Rate Times Gross
Receipts

Tip Percentage
Rate

Allocated Tips

Allocation Method

332–343

344–347

348–359

360

Number of Directly
Tipped Employees

Transmitter Control
Code (TCC)

Corrected 8027
Indicator

Blank or
cr/lf

361–364

365–369

370

371–372

SEC. 8. EFFECT ON OTHER DOCUMENTS
.01 Rev. Proc. 98–52 is superseded.

SEC. 9. EFFECTIVE DATE
.01 This revenue procedure is effective for Forms 8027 due the last day of February 2000 and any returns filed thereafter.

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26 CFR 601.602: Tax forms and instructions.

Publication 1245 (Rev. 10–99)
Specifications for Filing Form W-4, Employee’s Withholding Allowance Certificate, Magnetically or Electronically

Rev. Proc. 99–47
Reprinted from IR Bulletin l999–49
dated December 6, 1999
(Contains copies of Forms 4419, 6466, 6467, and notice 1027 for taxpayers’ use.)

Rev. Proc. 99–47
TABLE OF CONTENTS
PART A. GENERAL
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5.
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.
SECTION 10.

PURPOSE
NATURE OF CHANGES
WHERE TO FILE AND HOW TO CONTACT THE IRS, MARTINSBURG COMPUTING CENTER
FILING REQUIREMENTS
FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/ELECTRONICALLY
FILING DUE DATES
FILING FORMS W-4 MAGNETICALLY/ELECTRONICALLY
REPLACEMENT FILES
EFFECT ON PAPER DOCUMENTS
DEFINITION OF TERMS

PART B. MAGNETIC MEDIA/ELECTRONIC SPECIFICATIONS
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.

GENERAL
TAPE SPECIFICATIONS
3 1⁄2-INCH DISKETTE SPECIFICATIONS
TAPE CARTRIDGE SPECIFICATIONS
8MM, 4MM and QUARTER INCH CARTRIDGE SPECIFICATIONS
ELECTRONIC FILING SPECIFICATIONS
FORM W-4 RECORD FORMAT AND RECORD LAYOUT
EFFECT ON OTHER DOCUMENTS
EFFECTIVE DATE

PART A. GENERAL
SEC. 1. PURPOSE
.01 The purpose of this revenue procedure is to update Rev. Proc. 98-26, March 30, 1998, (IRS Pub. 1245), which outlines the requirements and conditions for submitting certain Forms W4, Employee’s Withholding Allowance Certificate, magnetically or electronically to the Internal Revenue Service (IRS), Martinsburg Computing Center (MCC).
.02 Revenue procedures are generally revised to reflect legislative and form changes. Comments concerning this revenue procedure or suggestions for making it more helpful can be addressed to Internal Revenue Service, Martinsburg Computing Center,
ATTN: IRB Information Support Section, 230 Murall Dr, Kearneysville, WV 25430.
.03 The following revenue procedures and publications provide more detailed filing procedures for certain information returns
and can be obtained by contacting your local IRS office or by calling 1-800-829-3676:
(a) “Instructions for Forms 1099, 1098, 5498, and W-2G” provides specific instructions on completing and submitting information returns to IRS.
(b) Rev. Proc. 84–33, 1984–1 C.B. 502, regarding the optional method for agents to report and deposit backup withholding.
(c) Publication 1179, Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099 Series, 5498, and
W-2G.

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1999–49 I.R.B.

(d) Publication 1220, Specifications for Filing Form 1098, 1099, 5498, and W-2G Magnetically or Electronically.
(e) Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and
Allocated Tips, Magnetically or Electronically.
(f) Publication 1187, Specifications for Filing Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding,
Magnetically or Electronically
.04 Refer to Part A, Sec. 10, for definitions of terms used in this publication.

SEC. 2. NATURE OF CHANGES
In this publication, major changes have been emphasized by using italics. This has been done to assist filers in identifying new information. Filers are still advised to read the publication in its entirety.
The changes are as follows:
.01 EDITORIAL CHANGES
(a) Under Part A, Sec. 3, “WHERE TO FILE AND HOW TO CONTACT THE IRS, MARTINSBURG COMPUTING CENTER”, the address is now 230 Murall Dr, Kearneysville, WV 24530.
(b) The Information Reporting Program-Bulletin Board System (IRP-BBS) is no longer in use. The information in Part B, Sec.
6 Asynchronous (IRP-BBS) electronic filing specifications has been completely revised to provide instructions for the Filing Information Returns Electronically (FIRE) system.
(c) The new number for the electronic filing system is 304-262-2400.
(d) The following types of media are no longer acceptable by IRS/MCC:
(1) 5 1⁄4 inch diskettes;
(2) 3 1⁄2 inch diskettes created on a non-MS-DOS system;
(3) 3 1⁄2 inch diskettes created on a System 36 or AS400;
(e) The following QIC (quarter inch cartridge) sizes have been deleted from Part B, Sec. 5:
Size

Tracks

Density

Capacity

QIC-11
QIC-320
QIC-1350

4/5
26
30

4(8000BPI)
17(16000 BPI)
18(51667 BPI)

22Mb or 30Mb
320Mb
1.3Gb

.02 PROGRAMMING CHANGES
There are no programming changes for tax year 1999. Corrections to Rev. Proc. 98–26 printed in Internal Revenue Bulletin No.
1998–24, dated June 15, 1998, Announcement 98–48 have been incorporated into this revision.

SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, MARTINSBURG COMPUTING CENTER
.01 All Forms W-4 filed magnetically or electronically are processed at IRS/MCC. Magnetic media containing Forms W-4 is to
be sent to the following address:
IRS-Martinsburg Computing Center
Information Reporting Program
230 Murall Dr
Kearneysville WV 25430
.02 Requests for paper forms and publications can be made by calling the “Forms Only Number” listed in your local telephone directory or by calling the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).
.03 Questions pertaining to magnetic media/electronic filing of Forms W-2 must be directed to the Social Security Administration
(SSA). Filers can call 1-800-SSA-6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.
.04 A taxpayer or authorized representative may request a copy of a tax return or a Form W-2 filed with a return by submitting
Form 4506, Request for Copy or Transcript of Tax Form, to IRS. This form may be obtained by calling 1-800-TAX-FORM (1-800829-3676).
.05 The IRS/MCC Call Site, located in Kearneysville, WV, provides service to the payer/employer community (financial institutions, employers, and other transmitters of information returns). The IRS/MCC Call Site answers questions concerning tax law and
the magnetic/electronic filing of questionable Forms W-4 as well as information returns (Forms 1096, 1098, 1099, 5498, 5498-MSA,
8027, W-2G, W-3, and 1042-S), inquiries dealing with backup withholding due to missing and incorrect taxpayer identification numbers and questions concerning paper filing of Forms W-2. Recipients of information returns (payees) should continue to contact
1-800-829-1040 or other numbers specified in the tax return instructions with any questions on how to report information returns.

1999–49 I.R.B.

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December 6, 1999

The Call Site accepts calls from all areas of the country. The number to call is 304-263-8700 or Telecommunications Device for
the Deaf (TDD) 304-267-3367. These are toll calls. The Call Site is in operation throughout the year to handle the questions of payers, transmitters, and employers. Due to the high demand for assistance at the end of January and February, it is advisable to call as
soon as possible to avoid these peak filing seasons.
.06 Telephone inquiries may be made Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern time. The telephone
numbers for magnetic media/electronic inquiries or electronic submissions are:
304-263-8700 – Call Site
304-262-2400 – Electronic Filing
304-267-3367 – TDD (Telecommunication Device for the Deaf)
304-264-5602 – Fax Machine
(These are not toll-free telephone numbers.)
TO OBTAIN FORMS & PUBLICATIONS CALL:
1-800-TAX-FORM (1-800-829-3676)
TO OBTAIN FORMS & PUBLICATIONS INTERNET:
www.irs.gov

SEC. 4. FILING REQUIREMENTS
.01 Employers are required to send to IRS quarterly, copies of all Forms W-4 received during the quarter from employees still employed at the end of the quarter who claim the following:
(a) More than 10 withholding allowances, or
(b) Exempt status and are expected to earn more than $200 a week.
.02 Employers are not required to send other Forms W-4 unless notified by IRS in writing to do so.
.03 Employers may submit all information magnetically or electronically; or a combination of magnetic/electronic files and paper
documents is acceptable, provided there are no duplications or omissions of documents. However, magnetic/electronic filing is preferred and strongly encouraged.
.04 A Form W-4 with a written statement attached from the employee must be filed on paper, not on magnetic media. If filing
paper Forms W-4, the employer may send them in each quarter with paper Forms 941. If the employer submits the paper Forms W4 at any time other than quarterly, a cover letter must be submitted giving the employer’s name, address, employer identification
number (EIN), and the number of Forms W-4 included.
NOTE: MCC DOES NOT PROCESS PAPER RETURNS. PAPER RETURNS MUST BE FILED WITH THE APPROPRIATE SERVICE CENTER. SEE FORM 941 INSTRUCTIONS FOR THE APPROPRIATE SERVICE CENTER.

SEC. 5. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS MAGNETICALLY/
ELECTRONICALLY
.01 Employers, or their transmitters, who wish to file magnetically or electronically, must submit a Form 4419, Application for
Filing Information Returns Magnetically/Electronically. Instructions for its completion are on the reverse of the form.
.02 Magnetic/electronic files may not be filed with IRS/MCC until authorization to file is received. Requests will be approved or
disapproved within 30 days of receipt.
.03 Only applications of employers or transmitters whose equipment meets the specifications in Part B, Sec. 2, 3, 4, 5 or 6 will be
approved.
.04 Once authorization to file has been granted, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned.
Approval will continue in effect in succeeding years provided the requirements of the current revenue procedure are met and there
are no equipment changes by the employer or transmitter. Although a TCC may have already been assigned to a transmitter for the
filing of information returns, the Form W-4 requires a separate TCC of its own. This TCC must appear on all transmittal forms submitted with magnetic/electronic files, as well as other correspondence. The TCC must also be coded into positions 319-323 of the
Form W-4 record. (See Part B, Sec. 7.)
.05 New applications (Forms 4419) are required whenever
(a) You discontinue filing magnetically/electronically for two years, in which case your TCC may have been reassigned. You
may call IRS/MCC to verify if your TCC is still valid.
(b) You have used a service agency in the past, and they had their own TCC, to prepare your files but you now have computer
equipment compatible with that of IRS, in which case you must request your own TCC.

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1999–49 I.R.B.

SEC. 6. FILING DUE DATES
.01 Magnetic/electronic reporting of Forms W-4 to IRS must be at least quarterly (monthly reporting is encouraged). The following are the quarter end dates:
Period Covered

Due Date

January 1 thru March 31
April 1 thru June 30
July 1 thru September 30
October 1 thru December 31

April 30
July 31
October 31
January 31

.02 If any due date falls on a Saturday, Sunday, or legal holiday, the Forms W-4 are considered timely if they are filed on the next
day that is not a Saturday, Sunday, or legal holiday.

SEC. 7. FILING FORMS W-4 MAGNETICALLY/ELECTRONICALLY
.01 A Magnetic Media/Electronic Reporting Package which includes the current revenue procedure and the necessary transmittal
forms will be mailed to approved filers each year.
.02 If the employer chooses to file magnetically/electronically, then a Form 6466, Transmittal of Forms W-4 Reported Magnetically/Electronically, must be sent to the IRS/MCC as prescribed in Part A, Sec. 3.
.03 Form 6466 MUST be signed by the employer or the transmitter, service bureau, paying agent, or disbursing agent (all hereafter referred to as agent), on behalf of the employer if the agent has the authority to sign the affidavit under an agency agreement
(either oral, written, or implied) that is valid under state law and adds the caption “FOR: (name of employer).”
.04 Although a duly authorized agent signs the affidavit, the employer(s) is held responsible for the accuracy of the Forms W-4
filed magnetically or electronically.
.05 DO NOT REPORT THE SAME INFORMATION ON PAPER DOCUMENTS THAT YOU REPORT MAGNETICALLY/ELECTRONICALLY. If you report part of your returns on paper and part magnetically or electronically, be sure that duplicate returns are not included on both.
.06 Before submitting your magnetic/electronic file, include the following:
(a) A signed Form 6466, Transmittal of Forms W-4 Reported Magnetically/Electronically along with a Form 6467, Transmittal
of Forms W-4 Reported Magnetically/Electronically(Continuation), if you submit data for multiple employers. These
forms must be mailed or faxed the same day electronic files are submitted.
(b) Your media (tape, diskette, or cartridge) with an external identifying label. Notice 1027 describes the information which
should be included on this self-prepared label.
(c) On the outside of the shipping container, affix the label IRB Special Projects. This label is included in the publication.
.07 IRS/MCC will not return filers’ magnetic media after it has been successfully processed. Should filers wish to know if their
media was received by IRS/MCC, a delivery service that provides certification of delivery is recommended.
.08 IRS cannot accept any Cash-On-Delivery (COD) or Charged-to-IRS shipments of reportable tax information that an individual or organization is legally required to file. Because of the high volume of data received and shipping cost involved, special shipping containers will not be returned.
.09 Use this record format and processing capabilities to file Forms W-4 submitted for the quarter ending March 31, 2000 and for
all subsequent filings.

SEC. 8. REPLACEMENT FILES
THE MAGNETIC MEDIA/ELECTRONIC SPECIFICATIONS CONTAINED IN PART B OF THIS REVENUE PROCEDURE MUST BE STRICTLY ADHERED TO. If files are not processable, they will be returned to you for replacement and
resubmission, or submission of paper Forms W-4. Replacement files must be resubmitted to IRS/MCC within 45 days of the date of
the enclosed letter. The media should be identified as replacement data by writing, typing or printing “Magnetic Media Replacement” on the external label used on the magnetic media and marking the replacement box on the Form 6466. If filing electronically,
you should choose replacement when asked for the type of submission to identify a replacement file before transmission begins.

SEC. 9. EFFECT ON PAPER DOCUMENTS
.01 Magnetic/electronic reporting to IRS eliminates the need to submit copies of paper Forms W-4.
.02 If part of the Forms W-4 are reported magnetically/electronically and the remainder are reported on paper forms, the paper
Forms W-4 must be mailed to the appropriate service center.

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SEC. 10. DEFINITION OF TERMS
Employer

Generally, an employer is a person or organization for whom a worker performs a service as an employee.
The employer has the right to direct and control the worker. A person or organization paying wages to a
former employee after the work ends is also considered an employer.

Employee

One who performs services for an employer.

EIN

Employer Identification Number that has been assigned by IRS.

File

For purposes of this procedure, a file consists of all magnetic/electronic records submitted by an employer or transmitter.

Special Character

Any character that is not a numeric, an alpha or a blank.

Taxpayer
Identification
Number (TIN)

May be either an Employer Identification Number (EIN); a Social Security Number (SSN); an IRS
Individual Taxpayer Identification Number (ITIN) issued to an alien individual; or an IRS Adoption
Taxpayer Identification Number(ATIN) assigned to children who are in the process of being adopted.

Transmitter

Person or organization preparing and/or submitting magnetic/electronic file(s).

Transmitter
Control Code
(TCC)

A five-character alpha/numeric number assigned by IRS to the transmitter prior to actual filing magnetically/electronically. This number is inserted in Positions 319–323 of your files and must be present before
the file can be processed. An application Form 4419 must be filed with IRS to receive this number.

PART B. MAGNETIC MEDIA/ELECTRONIC SPECIFICATIONS
SEC. 1. GENERAL
.01 The specifications contained in this part of the revenue procedure define the required format and content of the records to be
included in the magnetic/electronic file. Use this revenue procedure to file Forms W-4 submitted for the quarter ending March 31,
2000 and all subsequent filings.
.02 An external label must appear on each tape, tape cartridge and diskette submitted. Notice 1027 details what information must
be on the label. The diskettes used must be MS/DOS compatible.

SEC. 2. TAPE SPECIFICATIONS
.01 IRS/MCC can process most magnetic tape files if the following specifications are followed:
(a) 9-track EBCDIC (Extended Binary Coded Decimal Interchange Code) with
(1) Odd parity
(2) Recording density—1600 or 6250 BPI
(3) If you use UNISYS Series 1100, you must submit an interchange tape.
(b) 9-track ASCII (American Standard Coded Information Interchange) with:
(1) Odd parity
(2) Recording density—1600 or 6250 BPI
.02 All tape files must have the following characteristics:
(a) 0.5 inch (12.7 mm) wide computer grade magnetic tape,
(b) Tape thickness: 1.0 or 1.5 mils,
(c) Reel diameter: 10.5 inch (26.67 cm), 8.5 inch (21.59 cm), or 7 inch (17.78 cm) and
(d) Reel of tape up to 2400 feet (731.52 m).
.03 All records, including Header and Trailer Labels (if used) must be transmitted using the same density.
.04 The tape records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,550 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9’s; however, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of log-

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1999–49 I.R.B.

ical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item (b) above). The block length must be evenly divisible by 350.
(d) All data records are a fixed record length of 350 positions and may not span blocks.
.05 Labeled or unlabeled tapes may be submitted.
.06 For the purposes of this revenue procedure the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111(8421).
(c) May follow the header label and precede and/or follow the trailer label.
.07 Do not submit an employee Form W-4 record without the required employer identification information. Every record must
contain both employee and employer data.

SEC. 3. 3 1⁄2-INCH DISKETTE SPECIFICATIONS
.01 To be compatible, a diskette file must meet the following specifications:
(a) 3 1⁄2-inches in diameter.
(b) Data must be recorded in standard ASCII code.
(c) Records must be a fixed length of 350 bytes per record.
(d) Delimiter character commas (,) must not be used.
(e) Positions 349 and 350 of each record have been reserved for carriage return/line feed (cr/lf) characters.
(f) Filename of QWFTAX must be used. Do not enter any other data in this field. The extension will indicate the sequence of
the diskettes within the file. For example, the first diskette will be named QWFTAX.001, the second diskette will be
QWFTAX.002, etc.
(g) A diskette file may consist of multiple diskettes as long as the file naming conventions are adhered to.
(h) Diskettes must meet one of the following specifications:
Capacity

Tracks

Sides/Density

Sector Size

1.44 mb
1.44 mb
1.2 mb

96tpi
135tpi
96tpi

hd
hd
hd

512
512
512

.02 3 1⁄2-inch diskettes are only acceptable if they were created using MS/DOS.

SEC. 4. TAPE CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process tape cartridges that meet the following specifications:
(a) Must be IBM 3480, 3490, 3490E, or AS400 compatible.
(b) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Tape cartridges will be 1⁄2-inch tape contained in plastic cartridges which are approximately 4-inches by 5-inches by
1-inch in dimension.
(2) Magnetic tape will be chromium dioxide particle based 1⁄2-inch tape.
(3) Cartridges must be 18-track or 36-track parallel (See Note).
(4) Cartridges will contain 37,871 CPI (characters per inch ) or 75,742 CPI.
(5) Mode will be full function.
(6) The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information
Interchange) may be used.
.02 The tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,550 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s; however, the last block of the file may be filled with 9s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last block which
may be shorter (see item (b) above). The block length must be evenly divisible by 350.
(d) Records may not span blocks.
.03 Tape cartridges may be labeled or unlabeled.
.04 For the purposes of this revenue procedure, the following must be used:

1999–49 I.R.B.

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December 6, 1999

Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111(8421).
(c) May follow the header label and precede and/or follow the trailer label.
Note: Filers should indicate on the external media label and transmittal Form 6466 whether the cartridge is 36-track or
18-track.

SEC. 5. 8MM, 4MM, AND QUARTER INCH CARTRIDGE SPECIFICATIONS
.01 In most instances, IRS/MCC can process 8mm tape cartridges that meet the following specifications:
(a) Must meet American National Standard Institute (ANSI) standards, and have the following characteristics:
(1) Created from an AS400 operating system only.
(2) 8mm (.315-inch) tape cartridges will be 2 1⁄2-inch by 3 3⁄4-inch.
(3) The 8mm tape cartridges must meet the following specifications:
Tracks

Density

Capacity

1
1

20 (43245 BPI)
21 (45434 BPI)

2.3 Gb
5 Gb

(4) Mode will be full function.
(5) Compressed data is not acceptable.
(6) Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information Interchange) may be used. However, IRS/MCC encourages the use of EBCDIC. This information must appear on the external media label affixed to the cartridge.
.02 The 8mm (.315-inch) tape cartridge records defined in this revenue procedure may be blocked subject to the following:
(a) A block must not exceed 32,550 tape positions.
(b) If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9’s;
however, the last block of the file may be filled with 9’s or truncated. Do not pad a block with blanks.
(c) All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control
fields or block descriptor fields which describe the length of the block or the logical records within the block. The number of logical records within a block (the blocking factor) must be constant in every block with the exception of the last
block which may be shorter (see item (b) above). The block length must be evenly divisible by 350.
(d) Various COPY commands have been successful, however, the SAVE OBJECT COMMAND is not acceptable.
(e) Records may not span blocks.
.03 For faster processing, IRS/MCC encourages transmitters to use header labeled cartridges. QWFTAX may be used as a suggested filename.
.04 For the purposes of this revenue procedure, the following must be used:
Tape Mark:
(a) Used to signify the physical end of the recording on tape.
(b) For even parity, use BCD configuration 001111(8421).
(c) May follow the header label and precede and/or follow the trailer label.
.05 IRS/MCC can only read one data file on a tape. A data file is a group of records which may or

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A85e5c88b8c3d7470. Public record. Not legal advice.