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

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

Policy Statements for Submission Processing located in IRM 1.2.1.4, Policy Statements for Submission Processing Activities.

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

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

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

The Department and Team manager assigns, monitors, and controls the workflow to accomplish accurate completion of the tasks in this IRM.

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

Program Reports: Use this list of official reports to show receipts, production and inventory for the program covered by this IRM below. Reports display daily and weekly status of the program to completion.

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

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

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

Use any local reports to establish information for supporting daily program control. Local reports never replace the established official reports and production reporting.

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

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

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

Copy A — The copy of the income information document submitted to the IRS for processing. Forms fall into four categories:

General Purpose Programming (GPP) — Returns processed and sent to the modernized Information Return Intake system (IRI).

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

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

Parent Return — The return transmittal related to the detail information returns.

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

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

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

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

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

Resources to use in conjunction with the instructions found in this IRM below.

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

The Taxpayer Bill of Rights (TBOR) lists rights that already existed in the tax code, putting them in simple language and grouping them into 10 fundamental rights. Employees are responsible for being familiar with and acting in accord with taxpayer rights. See IRC 7803(a)(3), Execution of Duties in Accord with Taxpayer Rights, and additional information on the Taxpayer Bill of Rights site located at the following location: https://www.irs.gov/taxpayer-bill-of-rights.

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

These instructions cover Receipt and Control processing of the following domestic information returns sorts:

The following require exception processing. Process on ISRP as one unit of work. DO NOT separate the submission (transmittals and the detail documents transmitted).

The instructions for processing Form W-2, Wage and Tax Statement, Form W-2 C, Corrected Wage and Tax Statement, Form W-3, Transmittal of Wage and Tax Statements, and Form W-3 C, Transmittal of Corrected Wage and Tax Statements, consist solely of procedures for routing and disposal of these forms.

Don’t process Form 1098-MA, Mortgage Assistance Payments, in Information Return Processing (IRP) Sort Unit or information return processing. Ship these forms to Stop 6723 Austin Submission Processing Center (AUSPC) for retention.

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

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

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

With the Taxpayer First Act (TFA) Provision 2102 processing of IRP documents has changed. All IRP forms will be processed through SCRIPS as of processing year 2023.

Use the following program codes for ISRP:

Use the following program codes for SCRIPS:

Use the following program for SCRIPS processing of ACA IRP forms:

Route correspondence meeting Taxpayer Advocate Service (TAS) criteria listed in IRM 13.1.7.3, TAS Case Criteria, to the local TAS office.

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

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

Route correspondence concerning 50 or more recipient accounts in error to the payer coordinator in the Underreporter Branch in Ogden. See Exhibit 3.10.8-2, Mail Stops and Addresses for Disposition of Information Return Program, for complete mailing address.

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

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

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

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

Route "letters or notices" from the CAWR Reconciliation Function from the taxpayer, as well as any forms or information submitted to the CAWR Function. "Don’t remove any of the information or forms" (Form 94x, Schedule H, Form 1096, Form W-2G, Form W-2, or Form W-3) submitted with the CAWR letter or notice received from the taxpayer. Use the complete street address and mail stops found in Exhibit 3.10.8-2, Mail Stops and Addresses for Disposition of Information Return Program, when routing information to CAWR.

Route correspondence concerning letters:

Date stamp all prior year Form 1096 upon receipt.

Process through ISRP prior year Form 1096.

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

Process prior year Form 1099-R, and Form W-2G, as follows:

Process Form 3921 and Form 3922 as current year returns.

Consider tax years prior to 2020 for Form 1094 series and Form 1095 series unprocessable. Don’t correspond with the filer on returns prior to tax year 2020.

Date stamped on receipt prior year Form 1094 series transmitting Form 1095 series beginning with tax year 2020.

Date stamp all current year Form 1096, received after due date grace period listed in Exhibit 3.10.8-6 upon receipt. Date stamp all current year and processable prior year Form 1094 series, received after due date grace period upon receipt. Follow guidelines found in IRM 3.10.72, Campus Mail and Work Control, Receiving, Extracting, and Sorting, for date stamping late-filed returns.

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

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

Date stamp late filed Form W-3, transmitting Form W-2. Date stamp the first Form W-2, if a Form W-3 isn’t present in the submission. See IRM 3.10.8.3.2, Prior Year Forms.

Don’t separate Form W-2, Form W-2 C, Form W-3, and Form W-3 C route as follows:

SSA Address - Send copy A of Form W-2, Form W-2 C, and Form W-3 from payers to:

Copies A of Form W-2 GU, Guam Wage and Tax Statement and Form W-2 VI, U.S. Virgin Islands Wage and Tax Statement, transmitted by Form W-3 SS, Transmittal of Wage and Tax Statements. Send to:

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

Ensure the payer submission remains intact (Form W-3 with related Form W-2 (copy A)), whether the submission is sent to SSA or the CAWR Reconciliation Function (as outlined in IRM 3.10.8.3). Don’t staple Form W-3 to related Form W-2. Put the payer submission back into the original envelope/container it came in.

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

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

Forward Form W-3 and Form W-2 received for subsequent tax years to SSA at the following address:

Send to SCRIPS only current year forms transmitted by current year Form 1096, listed in IRM 3.10.8.2.2 (3), Forms/Document Codes/Program Codes.

Send to SCRIPS current year processed (2023) or first three prior year (2022, 2021, and 2020) Form 1095 series transmitted by corresponding year Form 1094 series. Below is the maximum number of pages per form type for the series.

Form 1094-C with a corrected box marked and line 19 marked transmitting no documents.

Don’t release to SCRIPS the following forms types processed exclusively on ISRP:

Send to SCRIPS only current year Form 1096 and the SCRIPS processable returns they transmit listed in IRM 3.10.8.4 (7), Detailed Sorting.

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

Each type of return within each submission requires a Form 1096. If each type of return doesn’t have it’s own Form 1096 do the following:

Sort returns by the categories of transportable and non-transportable. Sort the submissions by transmittal form type not transmitted form type for release to SCRIPS. See Exhibit 3.10.8-3, Sorts for Service Center Recognition/Imaging Processing System (SCRIPS), for a listing of each SCRIPS sort.

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

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

Photocopy non-transportable Form 1096 to make it transportable (scannable) even if transmitting ISRP processed only returns. The scanner images all ISRP Form 1096 after ISRP processing for retention.

When only one return is received for a payer, place the return in a group of single payer returns. Do this only for current year information returns.

When more than one return is received for a payer place the returns in a group of multiple payer returns. Do this only for current year information returns.

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

Process for CAWR Reconciliation Form 1096, transmitting prior year Form W-2G and Form 1099-R.

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

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

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

Cross check the detail information returns in the submission against the parent transmittal return (Form 1096 and Form 1094-C) to determine if all necessary information is present and matches the parent return (transmittal).

For payer/filer taxpayer identification number (TIN):

For payer name:

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

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

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

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

If multiple payer names and/or payer TINs appear on Form 1094-C or Form 1096, check attachments to determine the payer name and/or TIN to use. If the correct payer name and/or TIN isn’t determined from the attachments, follow research procedures to determine the correct name for the TIN for Form 1096 only. Underline the first payer name and TIN listed on the first return for the payer and its parent transmittal.

To ensure processing of only valid Form 1098 do the following:

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

The information processed on the transmittal is as follows:

Ensure returns follow a valid, processable format, by reviewing each payer's return for necessary information. If any conditions cited below apply to the returns and you don’t find the information on the returns or from the transmittal, consider the returns temporarily unprocessable. The following conditions require correspondence:

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

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

Identify unprocessable information returns within 10 days of receipt.

Issue the Letter 1865-C with the correct paragraph to filers of unprocessable information returns to request a processable submission. Check the Power of Attorney (POA)/Taxpayer Information Authorization (TIA) file using command code (CC) CFINQ before corresponding. Enclose with each letter:

Insert the exact number of unprocessable returns including the transmittal on each Letter 1865-C sent.

Do whatever you must to reduce the need to send photocopies of the unprocessable returns. If the existing language in the Letter 1865-C or fill-in language can completely explain the unprocessable condition do not send photocopies of the unprocessable returns. See suggested phrases in Exhibit 3.10.8-5, Correspondence Fill-In Paragraph Options.

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

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

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

If you can’t determine the name and address for a filer of unprocessable real estate transactions destroy the entire submission.

If no reply is received, route the entire case file and the retention copy of the correspondence to the IRP Penalty Unit for manual penalty determination. See Exhibit 3.10.8-2, Mail Stops and Addresses for Disposition of Information Return Program, for disposition address in Philadelphia and mail stop number.

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

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

Use only correspondence indicator "99" until further notice.

Check the Power of Attorney (POA)/Tax Information Authorization (TIA) file before corresponding if an in care of name is present on Form 1096 using CC CFINQ.

Write the indicator in the two right most boxes under the title "For Official Use Only" on Form 1096. Using a #2 pencil, write the indicator legibly and within the boundaries of the boxes.

Write correspondence indicator "99" on every Form 1096 created by IRS. Code "99" denotes IRS prepared.

SCRIPS creates a report identifying payers with federal income tax withheld (FTWH) only listed on the return. If information returns report only federal income tax withheld then considered them unprocessable.

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

Each page of the report reflects one payer's filing of information returns reporting only federal income tax withheld. Photocopy and consolidate all pages reporting one payer's returns. Use the photocopy as an enclosure to the Letter 1865-C.

When you receive the re-submission check the upper right corner of the suspended copy of the FTWH report for a delinquent indicator and received date. Look after an asterisk to the right of name line "1" in the format "MMDDYY" where "1" is the delinquent indicator and "MMDDYY" is the received date. Code the Form 1096 with this delinquent indicator and received date.

If the filer resubmits incorrectly or does not respond, follow procedures below:

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

Create blocks of 99 information returns.

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

Do not split a filer’s submission unless necessary.

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

Group no more than 30 blocks in a batch.

Less than 30 blocks in a batch is allowed.

It isn’t recommended to assign batch and block numbers to SCRIPS releases.

Each block of information returns transmitted by Form 1096 has an Account Type Code of "P" .

Assign Form 1096 different Account Type Codes than other information returns. Use Account Type Codes "B" and "C" for Form 1096. See Exhibit 3.10.8-7, Account Type Codes. Place codes on the Form 1332, Block and Selection Record.

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

Include estate names in the first name line. Arrow the estate name to the first name line for estate entities.

Form 5498 may list the issuing organization as the custodian for the taxpayer. Circle-out the issuing organization if this is the case.

Partnership first name line may include a list of partners or the business/trade name. If it isn’t possible to list all the partners, list the maximum number of names and edit the phrase "ET AL PTR."

Attach payer identifiers to the first return of each batch and to each subsequent return reflecting a change in payer. Edit the payer area of each information return attached to a payer identifier in the following manner (treat single return payer batches as if a payer identifier is attached to each return).

Circle-out foreign payer addresses present on payee documents with "NO TIN" or "No-TIN" located in the payer TIN area.

Form 1096 and related payee forms must require the same payer name and TIN. If different or blank, use the information from the payee form.

If the payee taxpayer identification number (TIN) isn’t in the proper box, draw an arrow from the TIN to the box provided for the payee's identification number.

If the payee TIN is missing, don’t code the field or research. Continue processing as normal.

Street address:

For Army Post Office (APO), Diplomatic Post Office (DPO) and Fleet Post Office (FPO), arrow APO, FPO or DPO and the literal "AA, AE, or AP" to the beginning of the "city or town, state or province, country, ZIPor foreign postal code" line in the city field.

If missing the city (for other than APO, DPO or FPO), enter "ZZZ" as the city.

If you can determine a missing state from city or ZIP Code, edit state abbreviation to "city or town, state or province, country, ZIP or foreign postal code" line.

If a ZIP Code is present, edit a state. If you can’t determine the missing state from the city or ZIP Code, edit city only.

If a ZIP Code is present and:

If the exact ZIP Code for a state isn’t known, or you notice an invalid ZIP Code, use the ZIP Code for the state (or "AA, AE, or AP" ) as shown in Exhibit 3.10.8-8, State Code/ZIP Code Perfection Chart (State Order).

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

Special edit of foreign payee addresses:

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

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

A processable Form 1096 has two amount fields.

Form 1099-B (boxes 1d, 8, 9, 10, and 11 only) allows positive or negative money amounts.

If a field on any form requires a positive money amount only, and it appears to contain a negative money amount, circle the amount.

Circle-out the amount if a field on any form requires a money amount and has only cents.

If two money amounts in one box

For ISRP, edit an "X" over the entire form if the information return does not have a money amount equal to or greater than $1.00.

Edit the amounts field specified below for each form.

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

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

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

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

Form 1098-F, Fines, Penalties, and Other Amounts: Edit boxes 1, 2, 3, 4 and 5.

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

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

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

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

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

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

Form 1099-DIV, Dividends and Distributions: Edit boxes 1a, 1b, 2a, 2b, 2c, 2d, 2e, 2f, 3, 4, 5, 6, 7, 9, 10, 12, 13 and 16.

Form 1099-G, Certain Government Payments: Edit boxes 1, 2, 3, 4, 5, 6, 7, 9 and 11.

Form 1099-INT, Interest Income: Edit boxes 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13 and 17.

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

Form 1099-LS, Reportable Life Insurance Sale: Edit box 1 and 2.

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

Form 1099-MISC, Miscellaneous Information: Edit boxes 1 through 12, and boxes 14, 15, 16 and 18.

Form 1099-NEC, Nonemployee Compensation: Edit boxes 1, 4, 5 and 7.

Form 1099-OID, Original Issue Discount: Edit boxes 1, 2, 3, 4, 5, 6, 8, 9, 10, 11 and 14.

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

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

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

Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.: Edit boxes 1, 2a, 3, 4, 6 , 8, 9b, 10, 14, 16, 17, and 19 for dollar amounts, the code(s) in box 7 including the IRA/SEP/SIMPLE check box, and the date in box 13.

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

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

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

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

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

Form 5498-QA, ABLE Account Contribution Information: Edit boxes 1 through 4.

Form 5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information: Edit boxes 1 through 5.

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

Form 3921, Exercise of an Incentive Stock Option Under Section 422(b): Edit boxes 1 through 5.

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

Form 1099-R may reflect a type of distribution indicator or distribution code, category of distribution, in box 7.

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

Allow up to two entries in box 7. If more than two entries edit the first valid combination present for input.

The payee account number should appear in the account number (optional) box. If you can identify the account number and it isn’t in the account number box edit the number to the account number box.

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

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

If more than one account number is present, try to determine the number belonging to the payee. If unable to do so, use the first account number on the return.

Send to ISRP all prior year Form 1096 and code them as current year. Also code the two numeric digits in the bottom right-hand corner of the Form 1096 indicating the tax year filed.

If more than one type of return is transmitted by the payer, create a Form 1096 for each type of return transmitted.

If the payer taxpayer identification number (TIN) isn’t in the proper box, draw an arrow from the TIN to the proper box provided for the payer identification number.

Edit "9-" when a TIN isn’t found on the returns transmitted or by research.

Use the payer TIN edited by Receipt and Control since Form 1096 uses the payer name and TIN assigned to the supporting detail documents.

Edit a numeric "1" (when payer TIN is an EIN) or "2" (when payer TIN is an SSN) to identify the type of entity of the payer. Edit this numeric in front of the numeric return code in the box identifying the type of returns transmitted. See IRM 3.10.8.9.4, Editing Type of Return Transmitted.

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

If a Form 1096 has both an EIN and an SSN choose the EIN, unless specific notation from IDRS research indicates to use the SSN.

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

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

For Form 1096 the following apply:

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

Form 1096 transmits only one type of return.

Use the type of return transmitted if two or more return code boxes contain marks. See IRM 3.10.8.2.2.

The simplification of the Form 1099 (series) reduced the number of different returns and created the need to identify the types of payments reported by a payer. Because of this, you must edit the amount box numbers in alpha order for those Form 1096 transmitting the following form types:

For Form 1096 transmitting the form types above when going through ISRP, you must edit the allowable payment codes as indicated below, for each form type. Edit the payment code(s) in the space next to the word instructions on Form 1096. See the table below for the payment codes for each of the form types. If the return transmits only "Amended" or "Corrected" documents with all zero money amounts, edit a payment code of "Z" .

Form 1096 transmitting information returns received from the IRP Penalty Unit, edit an "A" as the payment code.

Edit an "A" as the payment code on Form 1096 transmitting Form 1099-DIV, Form 1099-G, Form 1099-MISC, or, Form 1099-NEC with no money amounts (or all zero amounts) if:

Review each Form 1096 for the number of returns transmitted present in box 3.

If the taxpayer did not to put an amount in box 4 (Federal income tax withheld) and/or box 5 (Total amount reported with this Form 1096) transmitting Form W-2G do the following:

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

Edit the number of information returns subject to penalty in the bottom left-hand corner of the Form 1096 using the criteria above. This count is less than or equal to the total number of documents reported in box 3 of Form 1096.

Return transmittals together with the supporting detail documents to the numbering function for numbering after editing.

Numbering forwards prior and current year Form 1096 and current year information returns to ISRP for transcription per IRM 3.24.8, ISRP System, Information Return Processing. Properly coded the Form 1096 then destroy the prior year detail information returns transmitted.