HIGHLIGHTS OF THIS ISSUE ADMINISTRATIVE EMPLOYEE PLANS INCOME TAX The IRS Mission Introduction Part I Rev. Rul. 2022-12 Part III Rev. Proc. 2022-25 Rev. Proc. 2022-28 Definition of Terms Abbreviations Numerical Finding List1 Numerical Finding List Finding List of Current Actions on Previously Published Items1 How to get the Internal Revenue Bulletin INTERNAL REVENUE BULLETIN We Welcome Comments About the Internal Revenue Bulletin Internal Revenue Bulletin: 2022-27 July 5, 2022 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. ADMINISTRATIVE Rev. Proc. 2022-25, page 3. This procedure provides specifications for the private printing of red-ink substitutes for the 2022 revisions of certain information returns. This procedure will be reproduced as the next revision of Publication 1179. Revenue Procedure 2021-325 is superseded. NOTE. This revenue procedure will be reproduced as the next revision of IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns. Forms and instructions. (Also, Part 1, Sections 101, 162(f), 170, 199A, 220, 223, 401(a), 403(a), 403(b), 408, 408A, 457(b), 529, 529A, 530, 853A, 892, 1400Z-1, 1400Z–2, 1441, 6041, 6041A, 6042, 6043, 6044, 6045, 6047, 6049, 6050A, 6050B, 6050D, 6050E, 6050H, 6050J, 6050N, 6050P, 6050Q, 6050R, 6050S, 6050U, 6050W, 6050X, 6050Y, 6071, 1.402A-2, 1.408-5, 1.408-7, 1.408-8, 1.408A-7, 1.1441-1 through 1.1441-5, 1.1471-4, 1.6041-1, 1.6042-2, 1.6042-4, 1.6043-4, 1.6044-2, 1.6044-5, 1.6045-1, 1.6045-2, 1.6045-4, 1.6047-1, 1.6047-2, 1.6049-4, 1.6049-6, 1.6049-7, 1.6050A-1, 1.6050B-1, 1.6050D-1, 1.6050E-1, 1.6050H-1, 1.6050H-2, 1.6050J-1T, 1.6050N-1, 1.6050P-1, 1. 6050S-1, 1.6050S-3, 1.6050W-1, 1.6050W-2, 1.6050X-1, 1.6050Y-1, 1.6050Y-2, 1.6050Y-3.) EMPLOYEE PLANS Rev. Proc. 2022-28, page 65. The IRS will not issue letter rulings on whether a spin-off/termination transaction that involves excess assets results in an employer reversion under section 4980(c)(2) of the Code. Rev. Proc. 2022-3 is amplified. INCOME TAX Rev. Rul. 2022-12, page 1. Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term tax exempt rate. For purposes of sections 382, 1274, 1288, 7872 and other sections of the Code, tables set forth the rates for July 2022. (Also Sections 42, 280G, 382, 467, 468, 482, 483, 1288, 7520, 7872.) The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. Part I Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property Rev. Rul. 2022-12 This revenue ruling provides various prescribed rates for federal income tax purposes for July 2022 (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)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. 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 blended annual rate for 2022 for purposes of section 7872. REV. RUL. 2022-12 TABLE 1 Applicable Federal Rates (AFR) for July 2022 Period for Compounding Annual Semiannual Quarterly Monthly Short-term AFR 2.37% 2.36% 2.35% 2.35% 110% AFR 2.62% 2.60% 2.59% 2.59% 120% AFR 2.85% 2.83% 2.82% 2.81% 130% AFR 3.09% 3.07% 3.06% 3.05% Mid-term AFR 2.99% 2.97% 2.96% 2.95% 110% AFR 3.30% 3.27% 3.26% 3.25% 120% AFR 3.59% 3.56% 3.54% 3.53% 130% AFR 3.90% 3.86% 3.84% 3.83% 150% AFR 4.51% 4.46% 4.44% 4.42% 175% AFR 5.27% 5.20% 5.17% 5.14% Long-term AFR 3.22% 3.19% 3.18% 3.17% 110% AFR 3.54% 3.51% 3.49% 3.48% 120% AFR 3.87% 3.83% 3.81% 3.80% 130% AFR 4.19% 4.15% 4.13% 4.11% REV. RUL. 2022-12 TABLE 2 Adjusted AFR for July 2022 Period for Compounding Annual Semiannual Quarterly Monthly Short-term adjusted AFR 1.80% 1.79% 1.79% 1.78% Mid-term adjusted AFR 2.27% 2.26% 2.25% 2.25% Long-term adjusted AFR 2.43% 2.42% 2.41% 2.41% REV. RUL. 2022-12 TABLE 3 Rates Under Section 382 for July 2022 Adjusted federal long-term rate for the current month 2.43% 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.) 2.43% REV. RUL. 2022-12 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for July 2022 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit 7.72% Appropriate percentage for the 30% present value low-income housing credit 3.31% REV. RUL. 2022-12 TABLE 5 Rate Under Section 7520 for July 2022 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 3.60% REV. RUL. 2022-12 TABLE 6 Blended Annual Rate for 2022 Section 7872(e)(2) blended annual rate for 2022 1.40% Section 42.—Low-Income Housing Credit The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 280G.—Golden Parachute Payments The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12 page 1. Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change The adjusted applicable federal long-term rate is set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 467.—Certain Payments for the Use of Property or Services The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs The applicable federal short-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 482.—Allocation of Income and Deductions Among Taxpayers The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 483.—Interest on Certain Deferred Payments The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 7520.—Valuation Tables The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Section 7872.—Treatment of Loans With Below-Market Interest Rates The applicable federal short-term, mid-term, and long-term rates are set forth for the month of July 2022. See Rev. Rul. 2022-12, page 1. Part III Rev. Proc. 2022-25 TABLE OF CONTENTS Part 1 – GENERAL INFORMATION Section 1.1 – Overview of Revenue Procedure 2022-25 /What’s New 4 Section 1.2 – Definitions 8 Section 1.3 – General Requirements for Acceptable Substitute Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S 9 Part 2 – SPECIFICATIONS FOR SUBSTITUTE FORMS 1096 AND COPIES A OF FORMS 1098, 1099, 3921, 3922, AND 5498 (ALL FILED WITH THE IRS) Section 2.1 – Specifications 12 Section 2.2 – Instructions for Preparing Paper Forms That Will Be Filed With the IRS 17 Part 3 – SPECIFICATIONS FOR SUBSTITUTE FORM W-2G (FILED WITH THE IRS) Section 3.1 – General 19 Section 3.2 – Specifications for Copy A of Form W-2G 19 Part 4 – SUBSTITUTE STATEMENTS TO FORM RECIPIENTS AND FORM RECIPIENT COPIES Section 4.1 – Specifications 20 Section 4.2 – Composite Statements 24 Section 4.3 – Additional Information for Substitute and Composite Forms 1099-B 26 Section 4.4 – Required Legends 26 Section 4.5 – Miscellaneous Instructions for Copies B, C, D, E, 1, and 2 28 Section 4.6 – Electronic Delivery of Recipient Statements 30 Part 5 – ADDITIONAL INSTRUCTIONS FOR SUBSTITUTE FORMS 1097- BTC, 1098, 1099, 5498, W-2G, AND 1042-S Section 5.1 – Paper Substitutes for Form 1042-S 31 Section 5.2 – OMB Requirements for All Forms in This Revenue Procedure 33 Section 5.3 – Ordering Forms and Instructions 34 Section 5.4 – Effect on Other Revenue Procedures 34 Part 6 – EXHIBITS Section 6.1 – Exhibits of Forms in This Revenue Procedure 35 Part 1 General Information Section 1.1 – Overview of Revenue Procedure 2022-25 /What’s New 1.1.1 Purpose The purpose of this revenue procedure is to set forth the 2022 requirements for: Using official Internal Revenue Service (IRS) forms to file information returns with the IRS, Preparing acceptable substitutes of the official IRS forms to file information returns with the IRS, and Using official or acceptable substitute forms to furnish information to recipients. 1.1.2 Which Forms Are Covered? This revenue procedure contains specifications for these information returns: * Form Title 1096 Annual Summary and Transmittal of U.S. Information Returns 1097-BTC Bond Tax Credit 1098 Mortgage Interest Statement 1098-C Contributions of Motor Vehicles, Boats, and Airplanes 1098-E Student Loan Interest Statement 1098-F Fines, Penalties, and Other Amounts 1098-MA Mortgage Assistance Payments 1098-Q Qualifying Longevity Annuity Contract Information 1098-T Tuition Statement 1099-A Acquisition or Abandonment of Secured Property 1099-B Proceeds From Broker and Barter Exchange Transactions 1099-C Cancellation of Debt 1099-CAP Changes in Corporate Control and Capital Structure 1099-DIV Dividends and Distributions 1099-G Certain Government Payments 1099-H Health Coverage Tax Credit (HCTC) Advance Payments 1099-INT Interest Income 1099-K Payment Card and Third Party Network Transactions 1099-LS Reportable Life Insurance Sale 1099-LTC Long-Term Care and Accelerated Death Benefits 1099-MISC Miscellaneous Information 1099-NEC Nonemployee Compensation 1099-OID Original Issue Discount 1099-PATR Taxable Distributions Received From Cooperatives 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) 1099-QA Distributions From ABLE Accounts 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1099-S Proceeds From Real Estate Transactions 1099-SA Distributions From an HSA, Archer MSA, or Medicare Advantage MSA 1099-SB Seller's Investment in Life Insurance Contract 3921 Exercise of an Incentive Stock Option Under Section 422(b) 3922 Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under Section 423(c) 5498 IRA Contribution Information 5498-ESA Coverdell ESA Contribution Information 5498-QA ABLE Account Contribution Information 5498-SA HSA, Archer MSA, or Medicare Advantage MSA Information W-2G Certain Gambling Winnings 1042-S Foreign Person’s U.S. Source Income Subject to Withholding 1.1.3 Scope For purposes of this revenue procedure, a substitute form or statement is one that is not published by the IRS. For a substitute form or statement to be acceptable to the IRS, it must conform to the official form or the specifications outlined in this revenue procedure. Do not submit any substitute forms or statements listed above to the IRS for approval. Privately published forms may not state, “This is an IRS approved form.” Filers making payments to certain recipients during a calendar year are required by the Internal Revenue Code (the Code) to file information returns with the IRS for these payments. These filers must also provide this information to their recipients. In some cases, this also applies to payments received. See Part 4 for specifications that apply to recipient statements (generally Copy B). In general, section 6011 of the Code authorizes the Secretary of Treasury to publish regulations that require filers to file information returns according to those regulations and the corresponding forms and instructions. A filer who is required to file 250 or more information returns of any one type during a calendar year must file those returns electronically. Caution. Financial institutions that are required to report payments made under chapter 3 or 4 must file Forms 1042-S electronically, regardless of the number of returns required to be filed. Note. If you file electronically, do not file the same returns on paper. Filers required to file fewer than 250 returns of any one type during a calendar year are encouraged to file the information returns electronically. See the requirements for filing information returns (and providing a copy to a payee) in the 2022 General Instructions for Certain Information Returns and the 2022 Instructions for Form 1042-S. In addition, see the current revision of Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, for electronic filing through the IRS FIRE system. 1.1.4 For More Information The IRS prints and provides the forms on which various payments must be reported. See Section 5.3, later, for ordering forms and instructions. Alternately, filers may prepare substitute copies of these IRS forms and use such forms to report payments to the IRS. The Internal Revenue Service/Information Returns Branch (IRS/IRB) maintains a centralized customer service call site to answer questions related to information returns (Forms W-2, W-3, W-2c, W-3c, 1099 series, 1096, etc.). You can reach the call site at 866-455-7438 (toll-free) or outside the United States 304-263-8700 (not a toll-free number). Persons with a hearing or speech disability with access to TTY/TDD equipment can call 304-579-4827 (not a toll-free number). You may also send questions to the call site via the Internet at mccirp@irs.gov. IRS/IRB does not process information returns which are filed on paper forms. See Publication 1220 for information on waivers and extensions of time. For other tax information related to business returns or accounts, call 800-829-4933. Persons with hearing or speech disabilities with access to TTY/TDD equipment can call 800-829-4059 to ask tax account questions or to order forms and publications. Further information impacting Publication 1179, such as issues arising after its final release, will be posted on IRS.gov at IRS.gov/pub1179. 1.1.5 What’s New The following changes have been made to this year’s revenue procedure. For further information about each form listed below, see the separate reporting instructions. Electronic filing of returns. The Taxpayer First Act of 2019, enacted July 1, 2019, authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250-return requirement for 2022 tax returns. If final regulations are issued and effective for 2022 tax returns required to be filed in 2023, we will post an article at IRS.gov explaining the change. Until final regulations are issued, however, the number remains at 250, as reflected in these instructions. Electronic filing of Forms 1099. Under Section 2102 of the Taxpayer First Act the IRS is developing an Internet portal that will allow taxpayers to electronically file Forms 1099 after December 31, 2022 , as an alternative to using the Filing Information Returns Electronically (FIRE) system. See Part F in the General Instructions for Certain Information Returns for 2022 or go to IRS.gov for additional information and updates. Form 1099-H. The Health Coverage Tax Credit expired on December 31, 2021. The form is listed for reference purposes only. New Form 1098-F filing requirement. File Form 1098-F, Fines, Penalties and Other Amounts, to report payments made under suits and agreement which arebinding on or after January 1, 2022. See T.D. 9946, available at IRS.gov/ TD9946. For the latest filing information, see IRS.gov/Form1098F. Continuous use conversion. Forms 1098, 1099-A, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-NEC, and 1099-S and their instructions have been converted from annual updates to continuous use. The form and its instructions will be updated as needed. Form 1099-DIV new box 11. The “FATCA filing requirement” checkbox has been assigned box number 11. Subsequently, box numbers 11 through 15 have been renumbered 12 through 16, respectively. Form 1099-MISC new box 13. The “FATCA filing requirement” checkbox has been assigned box number 13. Subsequently, box numbers 13 through 17 have been renumbered 14 through 18 respectively. Exhibits. All of the exhibits in this publication were updated to include all of the 2022 revisions of those forms that have been revised. Editorial changes. We made editorial changes throughout, including updated references. Redundancies were eliminated as much as possible. Available Instructions In addition to the general instructions, which contain general information concerning Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, specific form instructions are provided separately. Use the instructions to prepare acceptable substitutes of the official IRS forms to file information returns with the IRS. Instructions for Form 1097-BTC. Instructions for Form 1098. Instructions for Form 1098-C. Instructions for Forms 1098-E and 1098-T. Instructions for Form 1098-F. Instructions for Form 1098-Q. Instructions for Forms 1099-A and 1099-C. Instructions for Form 1099-B. Instructions for Form 1099-CAP. Instructions for Form 1099-DIV. Instructions for Form 1099-G. Instructions for Form 1099-H. Instructions for Forms 1099-INT and 1099-OID. Instructions for Form 1099-K. Instructions for Form 1099-LS. Instructions for Form 1099-LTC. Instructions for Forms 1099-MISC and 1099-NEC. Instructions for Form 1099-PATR. Instructions for Form 1099-Q. Instructions for Forms 1099-QA and 5498-QA. Instructions for Forms 1099-R and 5498. Instructions for Form 1099-S. Instructions for Form 1099-SB. Instructions for Forms 3921 and 3922. Instructions for Form 5498-ESA. Instructions for Forms W-2G and 5754. You can also obtain the latest developments for each of the forms and instructions listed here by visiting their information pages at IRS.gov. See the separate instructions for each form on the webpage via the link. Section 1.2 – Definitions 1.2.1 Form Recipient Form recipient means the person to whom you are required by law to furnish a copy of the official form or information statement. The form recipient may be referred to by different names on various Forms 1099 and related forms (beneficiary, borrower, debtor, donor, employee, filer, homeowner, insured, participant, payee, payer, payer/borrower, payment recipient, policyholder, seller, shareholder, student, transferor, or, in the case of Form W-2G, the winner). See Section 1.3.4. 1.2.2 Filer Filer means the person or organization required by law to file with the IRS a form listed in Section 1.1.2 with the IRS. A filer may be a payer, creditor, payment settlement entity, recipient of mortgage or student loan interest payments, educational institution, broker, barter exchange, person reporting real estate transactions; a trustee or issuer of any educational or ABLE Act savings account, individual retirement arrangement, or medical savings account; a lender who acquires an interest in secured property or who has reason to know that the property has been abandoned; a corporation reporting a change in control and capital structure or transfer of stock to an employee; certain donees of motor vehicles, boats, and airplanes; or an acquirer or issuer of a life insurance contract. 1.2.3 Substitute Form Substitute form means a paper substitute of Copy A of an official form listed in Section 1.1.2 that completely conforms to the provisions in this revenue procedure. 1.2.4 Substitute Form Recipient Statement (recipient statement) Substitute form recipient statement means a paper or electronic statement of the information reported on a form listed in Section 1.1.2. For the remainder of this revenue procedure, we will refer to this as a recipient statement. This statement must be furnished to a person (form recipient), as defined under the applicable provisions of the Code and the applicable regulations. 1.2.5 Composite Substitute Statement Composite substitute statement means one in which two or more required statements (for example, Forms 1099-INT and 1099-DIV) are furnished to the recipient on one document. However, each statement must be designated separately and must contain all the requisite Form 1099 information except as provided under Section 4.2. A composite statement may not be filed with the IRS. Section 1.3 – General Requirements for Acceptable Substitute Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S 1.3.1 Introduction Paper substitutes for Form 1096 and Copy A of Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S that completely conform to the specifications listed in this revenue procedure may be privately printed and filed as returns with the IRS. The reference to the Department of the Treasury– Internal Revenue Service should be included on all such forms. If you are uncertain of any specification and want it clarified, you may submit a letter citing the specification, stating your understanding and interpretation of the specification, and enclosing an example of the form (if appropriate) to: Internal Revenue Service Attn: Substitute Forms Program SE:W:CAR:MP:P:TP 1111 Constitution Ave. NW Room 6554 Washington, DC 20224 Note. Allow at least 30 days for the IRS to respond. You may also contact the Substitute Forms Program via email at substituteforms@irs.gov. Please enter “Substitute Forms” on the Subject Line. Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S are subject to annual review and possible change. Therefore, filers are cautioned against overstocking supplies of privately printed substitutes. 1.3.2 Logos, Slogans, and Advertisements Some Forms 1097-BTC, 1098, 1099, 3921, 3922, 5498, W-2G, and 1042-S that include logos, slogans, and advertisements may not be recognized as important tax documents. A payee may not recognize the importance of the payee copy for tax reporting purposes due to the use of logos, slogans, and advertisements. Accordingly, the IRS has determined that logos, slogans, and advertising are not allowed on the payee copies of the above forms, on Copy A filed with the IRS, or on Form 1096, with the following exceptions: The exact name of the payer, broker, or agent, primary trade name, trademark, service mark, or symbol of the payer, broker, or agent, an embossment or watermark on the information return and payee copies that is a representation of the name, a primary trade name, trademark, service mark, or symbol of the payer, broker, or agent, that is; Presented in any typeface, font, stylized fashion, or print color normally used by the payer, broker, or agent, and used in a non-intrusive manner; and As long as these items do not materially interfere with the ability of the recipient to recognize, understand, and use the tax information on the payee copies. The IRS e-file logo on the IRS official payee copies may be included, but it is not required, on any of the substitute form copies. The information return and payee copies must clearly identify the payer’s name associated with its employer identification number. Logos and slogans may be used on permissible enclosures, such as a check or account statement, other than information returns and payee copies. If you have comments about the restrictions on including logos, slogans, and advertising on information returns and payee copies, send your comments to: Internal Revenue Service Attn: Substitute Forms Program SE:W:CAR:MP:P:TP 1111 Constitution Ave. NW Room 6554 Washington, DC 20224 or email them to substituteforms@irs.gov. 1.3.3 Copy A Specifications Proposed substitutes of Copy A must be exact replicas of the official IRS form with respect to layout and content. Proposed substitutes for Copy A that do not conform to the specifications in this revenue procedure are not acceptable. Further, if you file such forms with the IRS, you may be subject to a penalty for failure to file a correct information return under section 6721 of the Code. The amount of the penalty is based on when you file the correct information return. Penalties. The amounts of the penalty for returns required to be filed in 2023 is shown in Part OPenalties in the 2022 General Instructions for Certain Information Returns. 1.3.4 Copy B and Copy C Specifications Copy B and Copy C of the following forms must contain the information in Part 4 to be considered a “statement” or “official form” under the applicable provisions of the Code. The format of this information is at the discretion of the filer with the exception of the location of the tax year, form number, form name, and the information for composite Form 1099 statements as outlined under Section 4.2. Copy B, of the forms below, is for the following recipients. Form Recipient 1098 For Payer/Borrower 1098-C For Donor 1098-E; 1099-A For Borrower 1098-F For Payer 1098-MA For Homeowner 1098-Q For Participant 1098-T For Student 1099-C For Debtor 1099-CAP For Shareholder 1099-K For Payee 1099-LS For Payment Recipient 1099-LTC For Policyholder 1099-R; W-2G Copy B may be required to be attached to the filer's federal income tax return. 1099-S For Transferor 1099-SB For Seller All remaining Forms 1099; 1097-BTC;1042-S For Recipient 3921; 3922 For Employee 5498; 5498-SA For Participant 5498-QA; 5498-ESA For Beneficiary Copy C of the following forms is for the following recipients. Form Recipient 1097-BTC For Payer 1098 For Recipient/Lender 1098-C For Donor’s Records 1042-S; 1098-E For Recipient 1098-F; 1098-MA; 1098-T; 1099-K For Filer 1098-Q For Issuer 1099-CAP; 3921; 3922 For Corporation 1099-LTC For Insured 1099-QA For Payer 1099-R For Recipient’s Records All other Forms 1099 See Section 4.5.2 5498 For Trustee or Issuer 5498-ESA; 5498-SA For Trustee 5498-QA For Issuer W-2G For Winner’s Records Note. On Copy C, Form 1099-LTC, you may reverse the locations of the policyholder’s and the insured’s name, street address, city, state, and ZIP code for easier mailing. Part 2 Specifications for Substitute Forms 1096 and Copies A of Forms 1098, 1099, 3921, 3922, and 5498 (All Filed With the IRS) Section 2.1 – Specifications 2.1.1 Online Fillable Forms Due to the very low volume of paper Forms 1097-BTC, 1098-C, 1098–F, 1098-MA, 1099-A, 1099-CAP, 1099-LTC, 1099-Q, 1099-QA, 1099-SA, 3922, 5498-ESA, 5498-QA, and 5498-SA received and processed by the IRS each year, these forms have been converted to fillable online PDFs. Note. The instructions for substitute Forms 1042-S, also a fillable online format, are found separately in Part 5. These forms in their fillable format can be found at IRS.gov/formspubs. All the instructions regarding the substitute forms found in Part 1, and Sections 2.1.2, 2.1.7, 2.1.9, and 2.1.10, and the remainder of this publication, unless specified differently immediately below, remain in effect if you are going to produce the online fillable forms as paper or online substitute forms. Copy A of privately printed substitutes of the forms listed above must be exact replicas of the official forms with respect to layout and content. Use the official form, found on IRS.gov, printed actual size on an 8½ inches by 11 inches sheet of paper. The forms will print one to a page. All printing must be in high quality nongloss black ink. Paper for Copy A must be white chemical wood bond, or equivalent, 20 pounds (basis 17 x 22-500), plus or minus 5% (0.05); or offset book paper, 50 pounds (basis 25 x 38-500). No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached chemical wood pulp or recycled printed paper. It must also be suitably sized to accept ink without feathering. Note. If you want to print the forms as they formerly appeared to save paper, with the exception of Forms 1097-BTC (printed 2-to-a-page) and 1098-C (single form page), they are all printed 3-to-a-page. Follow the 3-to-a-page measurements in Section 6. Form 1098-C can be found at IRS.gov/Form1098C. Print the form to actual size, no scaling. 2.1.2 General Requirements Form identifying numbers (for example, 9191 for Form 1099-DIV) must be printed in nonreflective black carbon-based ink in print positions 15 through 19 using an optical character recognition (OCR) A font. The checkboxes to the right of the form identifying numbers must be 10-point boxes. The “VOID” checkbox is in print position 25 (1.9 inches from left vertical line of the form). The “CORRECTED” checkbox is in print position 33 (2.7 inches from left vertical line of the form). Measurements are generally from the left edge of the paper, not including the perforated strip. The substitute form Copy A must be an exact replica of the official IRS form with respect to layout and content. To determine the correct form measurements, see Exhibits A through CC at the end of this publication. Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply. Use of chemical transfer paper for Copy A is acceptable. The Government Printing Office (GPO) symbol must be deleted. 2.1.3 Color and Paper Quality Color and paper quality for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 0-25, dated November 29, 1978, must be white 100% bleached chemical wood, OCR bond produced in accordance with the following specifications. Note. Reclaimed fiber in any percentage is permitted provided the requirements of this standard are met. Acidity: Ph value, average, not less than 4.5 Basis Weight: 17 x 22-500 cut sheets 18-20 Metric equivalent–g/m2 75 A tolerance of ±5 pct. is allowed. Stiffness: Average, each direction, not less than-milligrams 50 Tearing strength: Average, each direction, not less than-grams 40 Opacity: Average, not less than-percent 82 Thickness: Average-inch 0.0038 Metric equivalent-mm 0.097 A tolerance of +0.0005 inch (0.0127 mm) is allowed. Paper cannot vary more than 0.0004 inch (0.0102 mm) from one edge to the other. Porosity: Average, not less than-seconds 10 Finish (smoothness): Average, each side-seconds 20-55 For information only, the Sheffield equivalent-units 170-100 Dirt: Average, each side, not to exceed-parts per million 8 2.1.4 Chemical Transfer Paper Chemical transfer paper is permitted for Copy A only if the following standards are met. Only chemically backed paper is acceptable for Copy A. Front and back chemically treated paper cannot be processed properly by machine. Carbon-coated forms are not permitted. Chemically transferred images must be black. All copies must be clearly legible. Fading must be minimized to assure legibility. 2.1.5 Printing All print on Copy A of Forms 1097-BTC, 1098, 1098-C, 1098-E, 1098-F, 1098-MA, 1098-Q, 1098-T, 1099-A, 1099-B, 1099-C, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-LS, 1099-MISC, 1099-NEC, 1099-OID, 1099-PATR, 1099-Q, 1099-R, 1099-S, 1099-SB, 3921, 3922, 5498, and the print on Form 1096 above the statement, “Return this entire page to the Internal Revenue Service. Photocopies are not acceptable.” must be in Flint J-6983 red OCR dropout ink or an exact match. However, the 4-digit form identifying number must be in nonreflective carbon-based black ink in OCR A font. The shaded areas of any substitute form should generally correspond to the format of the official form. The printing for the Form 1096 jurat statement and the text that follows may be in any shade or tone of black ink. Black ink should only appear on the lower part of the reverse side of Form 1096, where it will not bleed through and interfere with scanning. Note. The instructions on the front and back of Form 1096, which include filing addresses, must be printed. Separation between fields must be 0.1 inch. Other printing requirements are discussed in Sections 2.1.5 through 2.1.9. 2.1.6 OCR Specifications You must initiate, or have, a quality control program to assure OCR ink density. Readings will be made when printed on approved 20 lb. white OCR bond with a reflectance of not less than 80% (0.80). Black ink must not have a reflectance greater than 15% (0.15). These readings are based on requirements of the “BancTec IntelliScan XDS” Optical Scanner using Flint J-6983 red OCR dropout ink or an exact match. The following testers and ranges are acceptable: Important information: The forms produced under these specifications must be guaranteed to function properly when processed through High Speed Scan-Optics 9000 mm scanners. Forms require precision spacing, printing, and trimming. Density readings on the solid J-6983 (red) must be between the ranges of 0.95 to 0.90. The optimal scanning range is 0.93. Density readings on the solid black must be between the ranges of 112 to 108. The optimal scanning range is 110. Note. The readings are taken using an Ex-Rite 500 series densitometer, in Status T with Absolute or – paper setting under an Illuminate 5000 Kelvin Watt Light. You must maintain print contrast specification of ink and densitometer reflectivity reading throughout the entire production run. MacBeth PCM-II. The tested Print Contrast Signal (PCS) values when using the MacBeth PCM-II tester on the “C” scale must range from .01 minimum to .06 maximum. Kidder 082A. The tested PCS values when using the Kidder 082A tester on the Infra Red (IR) scale must range from .12 minimum to .21 maximum. White calibration disc must be 100%. Sensitivity must be set at one (1). Alternative testers must be approved by the IRS to establish tested PCS values. You may obtain approval by writing to the following address: Commissioner of Internal Revenue Attn: SE:W:CAR:MP:P:TP Business Publishing – Tax Products 1111 Constitution Ave. NW Room 6554 Washington, DC 20224 2.1.7 Typography Type must be substantially identical in size and shape to the official form. All rules are either 1/2-point or 3/4-point. Rules must be identical to those on the official IRS form. Note. The form identifying number must be nonreflective carbon-based black ink in OCR A font. 2.1.8 Dimensions Generally, three Copies A of Forms 1098, 1099, 3921, and 3922 are contained on a single page (3-to-a-page), 8 inches wide (without any snap-stubs and/or pinfeed holes) by 11 inches deep. Exceptions. Forms 1097-BTC, 1098, 1098-Q, 1099-B, 1099-DIV, 1099-INT, 1099-K, 1099-MISC, 1099-OID, 1099-R, and 5498 contain two copies on a single page (2-to-a-page). Forms 1098-C and 1042-S are single-page documents. There is a 0.33 inch top margin from the top of the corrected box, and a 0.2 to 0.25 inch right margin, with a +/- 1/20 (0.05) inch tolerance for the right margin. If the right and top margins are properly aligned, the left margin for all forms will be correct. All margins must be free of print. See Exhibits A through CC in Part 6 for correct form measurements. These measurements are constant for certain Forms 1098, 1099, and 5498. These measurements are shown only once in this publication, on Form 1097-BTC (Exhibit B) 2-to-a-page and on Form 1098-E (Exhibit E) 3-to-a-page. Exceptions to these measurements, and form-specific measurements are shown on the rest of the exhibits. The depth of the individual trim size of each 3-to-a-page form must be 3 2/3 inches, the same depth as the official form, unless otherwise indicated. The depth of the individual trim size of each 2-to-a-page form is 5 1/2 inches. 2.1.9 Perforation Copy A (3-to-a-page and 2-to-a-page) of privately printed continuous substitute forms must be perforated at each 11 inches page depth. No perforations are allowed between forms on the Copy A page. Exception. Copy A of Form W-2G may be perforated. The words “Do Not Cut or Separate Forms on This Page” must be printed using Flint J-6983 red OCR dropout ink or an exact match (see section 2.1.5, earlier) between the 3-to-a-page or 2-to-a-page. This statement should not be included after the last form on the page. Separations are required between all the other individual copies (Copies B and C, and Copies 1 and 2 of Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-K, 1099-MISC, 1099-NEC, 1099-OID, 1099-R, and Copy D for Forms 1099–LS, 1099-LTC, 1099-R, and 1042-S) in the set. Any recipient copies printed on a single sheet of paper must be easily separated. The best method of separation is to provide perforations between the individual copies. Each copy should be easily distinguished, whatever method of separation is used. Note. Perforation does not apply to printouts of copies that are furnished electronically to recipients (as described in Regulations section 31.6051-1(j)). However, these recipients should be cautioned to carefully separate any copies. See Section 4.6.1, later, for information on electronically furnishing statements to recipients. 2.1.10 Required Inclusions/ Exclusions You must include the OMB Number on Copies A and Form 1096 in the same location as on the official form. The following Privacy Act and Paperwork Reduction Act Notice phrases must be printed on Copy A of the forms as follows. It must also be printed on the Copy C, D, or E of the form retained by the filer. “For Privacy Act and Paperwork Reduction Act Notice, see the current version of the General Instructions for Certain Information Returns” on Forms 3921 and 3922. “For more information and the Privacy Act and Paperwork Reduction Act Notice, see the 2022 General Instructions for Certain Information Returns” on Form 1096. “For Privacy Act and Paperwork Reduction Act Notice, see instructions” on Form 1042-S. “For Privacy Act and Paperwork Reduction Act Notice, see the 2022 General Instructions for Certain Information Returns” must be printed on all other forms listed in Section 1.1.2. A postal indicia may be used if it meets the following criteria. It is printed in the OCR ink color prescribed for the form. No part of the indicia is within one print position of the scannable area. The printer’s symbol (GPO) must not be printed on substitute Copy A. Instead, the employer identification number (EIN) or the vendor code of the form’s printer must be entered in place of the Catalog Number (Cat. No.). The 4-digit vendor code, preceded by four zeros and a slash, for example, 0000/9876, must appear in 12-point Arial font, or a close approximation, on Copy A only of Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, and W-2G. The vendor code is used to identify the forms producer. Vendor codes can be obtained free of charge from the National Association of Computerized Tax Processors (NACTP) via email at president@nactp.org. The use of a vendor code is recommended. Note. Vendor codes from the NACTP are required by those companies producing the 1099 family of forms (Forms 1096, 1097-BTC, 1098, 1099, 3921, 3922, 5498, and W-2G) as part of a product for resale to be used by multiple issuers. Issuers developing 1099 family forms to be used only for their individual company do not require a vendor code. The Cat. No. shown on the forms is used for IRS distribution purposes and should not be printed on any substitute forms. The form must not contain the statement “IRS approved” or any similar statement. Section 2.2 – Instructions for Preparing Paper Forms That Will Be Filed With the IRS 2.2.1 Recipient Information The form recipient’s name, street address, city, state, ZIP code, and telephone number (if required) should be typed or machine printed in black ink in the same format as shown on the official IRS form. The city, state, and ZIP code must be on the same line. The following rules apply to the form recipient’s name(s). The name of the appropriate form recipient must be shown on the first or second name line in the area provided for the form recipient’s name. No descriptive information or other name may precede the form recipient’s name. Only one form recipient’s name may appear on the first name line of the form. If multiple recipients’ names are required on the form, enter on the first name line the recipient name that corresponds to the recipient taxpayer identification number (TIN) shown on the form. Place the other form recipients’ names on the second name line (only 2 name lines are allowable). Because certain states require that trust accounts be provided in a different format, filers should generally provide information returns reflecting payments to trust accounts with the: Trust’s employer identification number (EIN) in the recipient’s TIN area, Trust’s name on the recipient’s first name line, and Name of the trustee on the recipient’s second name line. Although handwritten forms will be accepted, the IRS prefers that filers type or machine print data entries. Also, filers should insert data as directed by shading, or in the middle of blocks, well separated from other printing and guidelines, and take measures to guarantee clear, dark black, sharp images. Photocopies are not acceptable. Truncating payee identification number on payee statements. Where permitted, filers may truncate a payee’s identification number (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on the payee statement (including substitute and composite substitute statements) furnished to the payee in paper form or electronically. Generally, the payee statement is that copy of an information return designated “Copy B” on the form. To truncate where allowed, replace the first 5 digits of the 9-digit number with asterisks (*) or Xs (for example, an SSN xxx-xx-xxxx would appear on the paper payee statement as ***-**-xxxx or XXX-XX-xxxx). See Treasury Decision 9675, 2014-31 I.R.B. 242, available at IRS.gov/irb/2014-31_IRB#TD-9675. Caution. Recipient TINs must not be truncated on Copy A filed with the IRS. 2.2.2 Account Number Box Use the account number box on all Forms 1098, 1099, 3921, 3922, 5498, and W-2G for an account number designation when required by the official IRS form. The account number is required if you have multiple accounts for a recipient for whom you are filing more than one information return of the same type. Additionally, the IRS encourages you to include the recipients’ account numbers on paper forms if your system of records uses the account number rather than the name or TIN for identification purposes. Also, the IRS will include the account number in future notices to you about backup withholding. If you are using window envelopes to mail statements to recipients and using reduced rate mail, be sure the account number does not appear in the window. The Postal Service may not accept these for reduced rate mail. Exception. Form 1098-T can have third-party provider information. 2.2.3 Specifications and Restrictions Machine-printed forms should be printed using a 6 lines/inch option, and should be printed in 10 pitch pica (10 print positions per inch) or 12 pitch elite (12 print positions per inch). Proportional spaced fonts are unacceptable. Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single sheet before they are filed with the IRS. The size specified does not include pin feed holes. Pin feed holes must not be present on forms filed with the IRS. Do not use a felt tip marker. The machine used to “read” paper forms generally cannot read this ink type. Do not use dollar signs ($), ampersands (&), asterisks (*), commas (,), or other special characters in the numbered money boxes. Exception. Use decimal points to indicate dollars and cents (for example, 2000.00 is acceptable). Do not use apostrophes (’), asterisks (*), or other special characters on the payee name line. Do not fold Forms 1097-BTC, 1098, 1099, 3921, 3922, or 5498 mailed to the IRS. Mail these forms flat in an appropriately sized envelope or box. Folded documents cannot be readily moved through the machine used in IRS processing. Do not staple Forms 1096 to the transmitted returns. Any staple holes near the return code number may impair the IRS’s ability to machine scan the type of documents. Do not type other information on Copy A. Do not cut or separate the individual forms on the sheet of forms of Copy A (except Forms W-2G). 2.2.4 Where To File Mail completed paper forms to the IRS service center shown in the Instructions for Form 1096 and in the 2022 General Instructions for Certain Information Returns. Specific information needed to complete the forms mentioned in this revenue procedure are given in the specific form instructions. A chart showing which form must be filed to report a particular payment is included in the 2022 General Instructions for Certain Information Returns. Part 3 Specifications for Substitute Form W-2G (Filed With the IRS) Section 3.1 – General 3.1.1 Purpose The following specifications give the format requirements for substitute Form W-2G (Copy A only), which is filed with the IRS. A filer may use a substitute Form W-2G to file with the IRS (referred to as “substitute Copy A”). The substitute form must be an exact replica of the official form with respect to layout and content. Section 3.2 – Specifications for Copy A of Form W-2G 3.2.1 Substitute Form W-2G (Copy A) You must follow these specifications when printing substitute Copy A of the Form W-2G. Caution. The payee’s TIN (SSN, ITIN, ATIN, or EIN) must not be truncated on Copy A of Form W2-G. Item Substitute Form W-2G (Copy A) Paper Color and Quality Paper for Copy A must be white chemical wood bond, or equivalent, 20 pounds (basis 17 x 22-500), plus or minus 5% (0.05). The paper must consist substantially of bleached chemical wood pulp. It must be free from unbleached or ground wood pulp or post-consumer recycled paper. It must also be suitably sized to accept ink without feathering. Ink Color and Quality All printing must be in a high quality nongloss black ink. Typography The type must be substantially identical in size and shape to the official form. All rules on the document are either 1/2 point (0.007 inch), 1 point (0.015 inch), or 3 point (0.045). Vertical rules must be parallel to the left edge of the document; horizontal rules to the top edge. Dimensions The official form is 8 inches wide x 51/2 inches deep, exclusive of a snap stub. Any substitute Copy A can be between 8 inches and 81/2 inches wide by 5 inches deep. The snap feature is not required on substitutes. All margins must be free of print. There is a 0.33 inch top margin from the top of the corrected box, and a 1/2 inch left margin. If the top and left margins are properly aligned, the right margin for all forms will be correct. If the substitute forms are in continuous or strip form, they must be burst and stripped to conform to the size specified for a single form. Hot Wax and Cold Carbon Spots Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply. Printer’s Symbol The Government Printing Office (GPO) symbol must not be printed on substitute Forms W-2G. Instead, the employer identification number (EIN) of the form’s printer must be printed in the bottom margin on the face of each individual Copy A on a sheet. The form must not contain the statement “IRS approved” or any similar statement. Catalog Number The Catalog Number (Cat. No.) shown on Form W-2G is used for IRS distribution purposes and should not be printed on any substitute forms. Part 4 Substitute Statements to Form Recipients and Form Recipient Copies Section 4.1 – Specifications 4.1.1 Introduction If you do not use the official IRS form to furnish statements to recipients, you must furnish an acceptable substitute statement. Information presented in substitute statements should be in a point size large enough to be easily read by recipients. To be acceptable, your substitute statement must comply with the rules in this Part. If you are furnishing a substitute form, see Regulations sections 1.6042-4, 1.6044-5, 1.6049-6, and 1.6050N-1 to determine how the following statements must be provided to recipients for most Forms 1099-DIV and 1099-INT, all Forms 1099-OID and 1099-PATR, and Form 1099-MISC, or 1099-S for royalties. Generally, information returns may be furnished electronically with the consent of the recipient. See Section 4.6.1. Note. A trustee of a grantor-type trust may choose to file Forms 1099 and furnish a statement to the grantor under Regulations sections 1.671-4(b)(2)(iii) and (b)(3)(ii). The statement required by those regulations is not subject to the requirements outlined in this section. 4.1.2 Substitute Statements to Recipients for Certain Forms 1099-B, 1099- DIV, 1099-INT, 1099-OID, and 1099-PATR The rules in this section apply to Form 1099-B, 1099-DIV (except for section 404(k) dividends), 1099-INT (except for interest reportable under section 6041), 1099-OID, and 1099-PATR only. You may furnish form recipients with Copy B of the official Form 1099 or a substitute Form 1099 (recipient statement) if it contains the same information as the official IRS form (such as aggregate amounts paid to the form recipient, any backup withholding, the name, address, and TIN of the person making the return, and any other information required by the official form). Information not required by the official form should not be included on the substitute form except for state income tax withholding information. But see Section 4.3 regarding additional information that may be included on substitute and composite Forms 1099-B, such as basis for noncovered securities. Note. Many of the information returns now include boxes for providing state withholding information as part of the official form, with additional copies for convenience. Payers may, however, provide the state withholding information separately (such as on a separate page or section) in order to assist the payee with completing a state income tax return that requires the attachment of any information return that includes state withholding amounts and payer numbers. Exception for supplementary information. The substitute form may include supplementary information that will assist the payee with completing his or her tax return. Such information could include expense and cost basis factors related to the reporting for widely held fixed investment trusts (WHFITs), as required under Regulations section 1.671-5. The substitute statement should disclose to the payee that such supplementary information is not furnished to the IRS. See Section 4.3 for additional requirements when providing supplemental information with the Form 1099-B that is not furnished to the IRS. Form 1099-B. For transactions reportable on Form 8949, brokers that use substitute statements should segregate dispositions of noncovered securities from covered securities, and further segregate long-term and short-term dispositions of covered securities. They may also segregate long-term from short-term dispositions of noncovered securities, to the extent that date acquired is known. For 2022 dispositions, the substitute Forms 1099-B may have up to five separate sections, each with a heading identifying which securities are included in the list, and each separately totaled. Each section, after totaling or within the heading for the section, should indicate how to report the transactions on Form 8949, as indicated. Short-term transactions for which basis is reported to the IRS—Report on Form 8949, Part I, with Box A checked. Short-term transactions for which basis is not reported to the IRS—Report on Form 8949, Part I, with Box B checked. Long-term transactions for which basis is reported to the IRS—Report on Form 8949, Part II, with Box D checked. Long-term transactions for which basis is not reported to the IRS—Report on Form 8949, Part II, with Box E checked. Transactions for which basis is not reported to the IRS and for which short-term or long-term determination is unknown (to Broker). You must determine short-term or long-term based on your records and report on Form 8949, Part I, with Box B checked, or on Form 8949, Part II, with Box E checked, as appropriate. For each section, each transaction may include information not reported to the IRS, such as basis, date acquired, and gain or loss. Therefore, for short-term dispositions where basis was not reported to the IRS, basis and date acquired may be shown just as it would be shown for short-term dispositions where basis was reported to the IRS. For 2022 dispositions, each of the applicable sections must have Sales Price and Cost or Other Basis (if known) separately totaled. Net gain or loss, if included for any of the sections, may also be totaled. Brokers may also use substitute Form 1099-B for transactions that are not directly reported on Form 8949. Examples include transactions involving regulated futures contracts, foreign currency contracts, and section 1256 option contracts. Any additional sections created for this purpose should be segregated from those transactions directly reportable on Form 8949. The substitute form requirements in the following paragraphs also apply to Form 1099-B. Form 1099-INT, 1099-DIV, 1099-OID, or 1099-PATR. A substitute recipient statement for Forms 1099-INT, 1099-DIV, 1099-OID, or 1099-PATR must comply with the following requirements. Box captions and numbers that are applicable must be clearly identified, using the same wording and numbering as on the official form. The recipient statement (Copy B) must contain all applicable recipient instructions as provided on the front and back of the official IRS form. You may provide those instructions on a separate sheet of paper. The box caption “Federal income tax withheld” must be in boldface type or otherwise highlighted on the recipient statement. The recipient statement must contain the Office of Management and Budget (OMB) number as shown on the official IRS form. See Section 5.2. The recipient statement must contain the tax year (for example, 2022), form number (for example, Form 1099-INT), and form name (for example, Interest Income) of the official IRS Form 1099. This information must be displayed prominently together in one area of the statement. For example, the tax year, form number, and form name could be shown in the upper right part of the statement. Each copy must be appropriately labeled (such as Copy B, For Recipient). See Section 4.5.2 for applicable labels and arrangement of assembly of forms. Note. Do not include the words “Substitute for” or “In lieu of” on the recipient statement. Layout and format of the statement is at the discretion of the filer. However, the IRS encourages the use of boxes so that the statement has the appearance of a form and can be easily distinguished from other nontax statements. Each recipient statement of Form 1099-B, 1099-DIV, 1099-INT, 1099-OID, or 1099-PATR must include the direct access telephone number of an individual who can answer questions about the statement. Include that telephone number conspicuously anywhere on the recipient statement. A mutual fund family may furnish one statement (for example, one piece of paper) on which it reports the dividend income earned by a recipient from multiple funds within the family of mutual funds, as required by Form 1099-DIV. However, each fund and its earnings must be stated separately. The statement must contain an instruction to the recipient that each fund’s dividends and name, not the name of the mutual fund family, must be reported on the recipient’s tax return. The statement cannot contain an aggregate total of all funds. In addition, a mutual fund family may furnish a single statement (as a single filer) for Form 1099-INT, 1099-DIV, or 1099-OID information (see Section 4.2.1, later). Each fund and its earnings must be stated separately. The statement must contain an instruction to the recipient that each fund’s earnings and name, not the name of the mutual fund family, must be reported on the recipient’s tax return. The statement cannot contain an aggregate total of all funds. You may enter a total of the individual accounts listed on the statement only if they have been paid by the same payer. For example, if you are listing interest paid on several accounts by one financial institution on Form 1099-INT, you may also enter the total interest amount. You may also enter a date next to the corrected box if that box is checked. 4.1.3 Substitute Statements to Recipients for Certain Forms 1098, 1099, 5498, and W-2G Statements to form recipients for Forms 1097-BTC, 1098, 1098-C, 1098-E, 1098-F, 1098-MA, 1098-Q, 1098-T, 1099-A, 1099-C, 1099-CAP, 1099-G, 1099-K, 1099-LS, 1099-LTC, 1099-MISC, 1099-NEC, 1099-Q, 1099-QA, 1099-R, 1099-S, 1099-SA, 1099-SB, 3921, 3922, 5498, 5498-ESA, 5498-QA, 5498-SA, W-2G, 1099-DIV (only for section 404(k) dividends reportable under section 6047), and 1099-INT (only for interest of $600 or more made in the course of a trade or business reportable under section 6041) can be copies of the official forms or an acceptable substitute. Caution. The IRS does not require a donee to use Form 1098-C as the written acknowledgment for contributions of motor vehicles, boats, and airplanes. However, if you choose to use copies of Form 1098-C or an acceptable substitute as the written acknowledgment, then you must follow the requirements of this section. To be acceptable, a substitute recipient statement must meet the following requirements. The tax year, form number, and form name must be the same as the official form and must be displayed prominently together in one area on the statement. For example, they may be shown in the upper right part of the statement. The statement must contain the same information as the official IRS form, such as aggregate amounts paid to the form recipient, any backup withholding, the name, address, and TIN of the filer and of the recipient, and any other information required by the official form. Each substitute recipient statement for Forms W-2G, 1097-BTC, 1098, 1098-C, 1098-E, 1098-F, 1098-T, 1099-A, 1099-C, 1099-CAP, 1099-DIV, 1099-G (excluding state and local income tax refunds), 1099-K, 1099-INT, 1099-LS, 1099-LTC, 1099-MISC (excluding fishing boat proceeds), 1099-NEC, 1099-Q, 1099-R (for qualified long-term care insurance contracts under combined arrangements only), 1099-S, 1099-SA, 1099-SB, and 5498-SA must include the direct access telephone number of an individual who can answer questions about the statement. Include the telephone number conspicuously anywhere on the recipient statement. Although not required, payers reporting on Forms 1099-QA, 1099-R (payments other than qualified long-term care insurance contracts under combined arrangements), 3921, 3922, 5498, 5498-ESA, and 5498-QA are encouraged to furnish telephone numbers at which recipients of the form(s) can reach a person familiar with the information reported. All applicable money amounts and information, including box numbers required to be reported to the form recipient, must be titled on the recipient statement in substantially the same manner as those on the official IRS form. The box caption “Federal income tax withheld” must be in boldface type on the recipient statement. Exception. If you are reporting a payment as “Other income” in box 3 of Form 1099-MISC, you may substitute appropriate language for the box title. For example, for payments of accrued wages and leave to a beneficiary of a deceased employee, you might change the title of box 3 to “Beneficiary payments” or something similar. Note. You cannot make this change on Copy A. If federal income tax is withheld and shown on Form 1099-R or W-2G, Copy B and Copy C must be furnished to the recipient. If federal income tax is not withheld, only Copy C of Forms 1099-R and W-2G must be furnished. However, for Form 1099-R, instructions similar to those on the back of the official Copy B and Copy C of Form 1099-R must be furnished to the recipient. For convenience, you may choose to provide both Copies B and C of Form 1099-R to the recipient. You must provide appropriate instructions to the form recipient similar to those on the official IRS form, to aid in the proper reporting on the form recipient’s income tax return. For payments reported on Forms 1099-B and 1099-CAP, the requirement to include instructions substantially similar to those on the official IRS form, may be satisfied by providing form recipients with a single set of instructions for all Forms 1099-B and 1099-CAP statements required to be furnished in a calendar year. If you use carbonless sets to produce recipient statements, the quality of each copy in the set must meet the following standards. 1. All copies must be clearly legible. 2. All copies must be able to be photocopied. 3. Fading must not diminish legibility and the ability to photocopy. In general, black chemical transfer inks are preferred, but other colors are permitted if the above standards are met. Hot wax and cold carbon spots are not permitted on any of the internal form plies. The back of a mailer top envelope ply may contain these spots. For reporting state income tax withholding and state payments, you may add an additional box(es) to recipient copies, as appropriate. In addition, the state withholding information may be provided separately and apart from the other information in the event the recipient must attach a copy to the recipient’s tax return. Note. You cannot make this change on Copy A. On Copy C of Form 1099-LTC, you may reverse the location of the policyholder’s and the insured’s name, street address, city, state, and ZIP code for easier mailing. If an institution insurer uses a third-party service provider to file Form 1098-T, then in addition to the institution or insurer’s name, address, and telephone number, the same information may be included for the third-party service provider in the space provided on the form. Forms 1099-A and 1099-C transactions, if related, may be combined on Form 1099-C. 4.1.4 Online Fillable Copies B, C, D, 1, and 2 Copies B, C, D, 1, and 2, as applicable, to be furnished to recipients and kept in the filers’ records, have been made online fillable at IRS.gov/forms-instructions for many forms referenced in these instructions. See the separate instructions for Forms 1098, 1098-E & T, 1098-F, 1098-Q, 1099-A & C, 1099-B, 1099-DIV, 1099-G, 1099-INT & OID, 1099-K, 1099-LS, 1099-MISC, 1099-NEC, 1099-PATR, 1099-R & 5498, 1099-S, 1099-SB, and 3921. Section 4.2 – Composite Statements 4.2.1 Composite Substitute Statements for Certain Forms 1099-B, 1099- DIV, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, and 1099- S A composite recipient statement is permitted for reportable payments consisting of the proceeds of brokerage and barter transactions, dividends, interest, original issue discount, patronage dividends, and royalties. The following forms may be included on a composite substitute statement, when one payer is reporting more than one of these payments during a calendar year to the same form recipient. Form 1099-B. Form 1099-DIV (except for section 404(k) dividends). Form 1099-INT (except for interest reportable under section 6041). Form 1099-MISC (only for royalties or substitute payments in lieu of dividends and interest). Form 1099-OID. Form 1099-PATR. Form 1099-S (only for royalties). Generally, do not include any other Form 1099 information (for example, 1099-A or 1099-C) on a composite statement with the information required on the forms listed in the preceding sentence. Although the composite recipient statement may be on one sheet, the format of the composite recipient statement must satisfy the following requirements in addition to the requirements listed earlier in Sections 4.1.2, 4.3, and 4.4, as applicable. All information pertaining to a particular type of payment must be located and blocked together on the form and separate from any information covering other types of payments included on the form. For example, if you are reporting interest and dividends, the Form 1099-INT information must be presented separately from the Form 1099-DIV information. The composite recipient statement must prominently display the form number and form name of the official IRS form together in one area at the beginning of each appropriate block of information. The tax year must only be placed on each block of information if it is not prominently displayed elsewhere on the page on which the information appears. Any information required by the official IRS forms that would otherwise be repeated in each information block is required to be listed only once in the first information block on the composite form. For example, there is no requirement to report the name of the filer in each information block. This rule does not apply to any money amounts (for example, federal income tax withheld) or to any other information that applies to money amounts. A composite statement is an acceptable substitute only if the type of payment, and the recipient’s tax obligation with respect to the payment, are as clear as if each required statement were furnished separately on an official form. 4.2.2 Composite Substitute Statements to Recipients for Forms Specified in Sections 4.1.2 and 4.1.3 A composite recipient statement for the forms specified in Section 4.1.2 or 4.1.3 is permitted when one filer is reporting more than one type of payment during a calendar year to the same form recipient. A composite statement is not allowed for a combination of forms listed in Sections 4.1.2 and 4.1.3. Exceptions: Substitute payments in lieu of dividends or interest reported in box 8 of Form 1099-MISC may be reported on a composite substitute statement with Form 1099-DIV. Form 1099-B information may be reported on a composite form with the forms specified in Section 4.1.2 as described in Section 4.2.1. Royalties reported on Form 1099-MISC or 1099-S may be reported on a composite form only with the forms specified in Section 4.1.2. Although the composite recipient statement may be on one sheet, the format of the composite recipient statement must satisfy the requirements listed in Section 4.2.1 as well as the requirements in Section 4.1.3. A composite statement of Forms 1098 and 1099-INT (for interest reportable under section 6049) is not allowed. Section 4.3 – Additional Information for Substitute and Composite Forms 1099-B 4.3.1 General Requirements for Presenting Additional Form 1099-B Information A filer may include Form 1099-B information on a composite form with the forms listed in Section 4.1.2. Therefore, supporting, explanatory, or comparable relevant information for covered and noncovered lots on the 1099-B portion of the composite statement can be included. This information includes display on the payee statement of data elements such as basis for noncovered lots, explanatory remarks on permissible basis adjustments for covered lots, descriptions of the type of transaction (merger, buy to close, redemption, etc.), identification of contingent payment debt obligations, and lot relief methods. If you wish to provide additional information to the investor on the same substitute recipient Form 1099-B, the form must follow the rules set forth in this Section 4.3 and should clearly delineate how the information is presented. Any information presented should make reference to its corresponding number on the official form, as appropriate. You should clearly categorize each type of information you are reporting. 4.3.2 Added Legend for Providing Additional 1099- B Information An additional separate legend is required that explains exactly which pieces of information are and which are not reported to the IRS, to the extent, if any, the information is not already identified as not being reported to the IRS, as described in Section 4.1.2. It should clearly explain how the information is presented. You may present this legend in a way that is consistent with your design as long as it clearly indicates which information is being provided to the IRS. Additionally, a reminder to taxpayers that they are ultimately responsible for the accuracy of their tax returns is also required. Section 4.4 – Required Legends 4.4.1 Required Legends for Forms 1098 Form 1098 recipient statements (Copy B) must contain the following legends: Form 1098 1. The information in boxes 1 through 9 and 11 is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for the mortgage interest or for these points, reported in boxes 1 and 6; or because you did not report the refund of interest (box 4); or because you claimed a nondeductible item.” 2. Caution. “The amount shown may not be fully deductible by you. Limits based on the loan amount and the cost and value of the secured property may apply. Also, you may only deduct interest to the extent it was incurred by you, actually paid by you, and not reimbursed by another person.” Form 1098-C: Copy B - “In order to take a deduction of more than $500 for this contribution, you must attach this copy to your federal tax return. Unless box 5a or 5b is checked, your deduction cannot exceed the amount in box 4c.” Copy C - “This information is being furnished to the IRS unless box 7 is checked.” Form 1098-E: “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for student loan interest.” Forms 1098-F and 1098-MA: “This is important tax information and is being furnished to the IRS.” Form 1098-Q: “This information is being furnished to the IRS.” Form 1098-T: “This is important tax information and is being furnished to the IRS. This form must be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return.” 4.4.2 Required Legends for Forms 1099 and W-2G Forms 1099-A, 1099-C, 1099-CAP, and 1099-K: Copy B - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported.” Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-NEC, 1099-OID, 1099-PATR, 1099-Q, and 1099-QA: Copy B -“This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.” Form 1099-LS: Copy B - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.” Copy C - “Copy C is provided to you for information only. Only the payment recipient is required to report this information on a tax return.” Form 1099-LTC: Copy B - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.” Copy C - “Copy C is provided to you for information only. Only the policyholder is required to report this information on a tax return.” Form 1099-R: Copy B - “Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return.” Copy C - “This information is being furnished to the IRS.” Forms 1099-S and 1099-SB: Copy B - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.” Form 1099-SA: Copy B - “This information is being furnished to the IRS.” Form W-2G: Copy B - “This information is being furnished to the IRS. Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return.” Copy C - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.” 4.4.3 Required Legends for Forms 1097-BTC, 3921, 3922, and 5498 Form 1097-BTC: Copy B - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if an amount of tax credit exceeding the amount reported on this form is claimed on your income tax return.” Form 3921: Copy B - “This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.” Copy C - “This copy should be retained by the corporation whose stock has been transferred under Section 422(b).” Form 3922: Copy B - “This is important tax information and is being furnished to the IRS.” Copy C - “This copy should be retained by the corporation.” Form 5498: Copy B - “This information is being furnished to the IRS.” Note. If you do not provide another statement to the participant because no contributions were made for the year, the statement of the fair market value, and any required minimum distribution of the account, must contain this legend and a designation of which information is being provided to the IRS. Forms 5498-ESA, 5498-QA, and 5498-SA: Copy B - “This information is being furnished to the IRS.” Section 4.5 – Miscellaneous Instructions for Copies B, C, D, E, 1, and 2 4.5.1 Copies Copies B, C, and in some cases D, E, 1, and 2 are included in the official assembly for the convenience of the filer. You are not legally required to include all these copies with the privately printed substitute forms. Furnishing Copy B, and in some cases Copy C, will satisfy the legal requirement to provide statements of information to form recipients. Note. If an amount of federal income tax withheld is shown on Form 1099-R or W-2G, Copy B (to be attached to the tax return) and Copy C must be furnished to the recipient. Copy D (Forms 1099-R and W-2G) may be used for payer records. Only Copy A should be filed with the IRS. 4.5.2 Arrangement of Assembly Copy A (“For Internal Revenue Service Center”) of all forms must be on top. The rest of the assembly must be arranged, from top to bottom, as follows. Form Title 1098 Copy B “For Payer/Borrower”; Copy C “For Recipient/Lender.” 1098-C Copy B “For Donor”; Copy C “For Donor’s Records”; Copy D “For Donee.” 1098-E Copy B “For Borrower”; Copy C “For Recipient.” 1098-F Copy B “For Payer”; Copy C “For Filer.” 1098-MA Copy B “For Homeowner”; Copy C “For Filer.” 1098-Q Copy B “For Participant”; Copy C “For Issuer.” 1098-T Copy B “For Student”; Copy C “For Filer.” 1099-A Copy B “For Borrower”; Copy C “For Lender.” 1097-BTC, 1099-PATR, 1099-Q, and 1099-QA Copy B “For Recipient”; Copy C “For Payer.” 1099-C Copy B “For Debtor”; Copy C “For Creditor.” 1099-CAP Copy B “For Shareholder”; Copy C “For Corporation.” 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-NEC, and 1099-OID Copy 1 “For State Tax Department”; Copy B “For Recipient”; Copy 2 “To be filed with recipient's state income tax return, when required”; and Copy C “For Payer.” 1099-K Copy 1 “For State Tax Department”; Copy B “For Payee”; Copy 2 “To be filed with the recipient's state income tax return, when required”; Copy C “For Filer.” 1099-LS Copy B “For Payment Recipient”; Copy C “For Issuer”; Copy D “For Acquirer.” 1099-LTC Copy B “For Policyholder”; Copy C “For Insured”; Copy D “For Payer.” 1099-R Copy 1 “For State, City, or Local Tax Department”; Copy B “Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return”; Copy C “For Recipient’s Records”; Copy 2 “File this copy with your state, city, or local income tax return, when required”; Copy D “For Payer.” 1099-S Copy B “For Transferor”; Copy C “For Filer.” 1099-SA Copy B “For Recipient”; Copy C “For Trustee/Payer.” 1099-SB Copy B “For Seller”; Copy C “For Issuer.” 3921 Copy B “For Employee”; Copy C “For Corporation”; Copy D “For Transferor.” 3922 Copy B “For Employee”; Copy C “For Corporation.” 5498 Copy B “For Participant”; Copy C “For Trustee or Issuer.” 5498-ESA Copy B “For Beneficiary”; Copy C “For Trustee.” 5498-QA Copy B “For Beneficiary”; Copy C “For Issuer.” 5498-SA Copy B “For Participant”; Copy C “For Trustee.” W-2G Copy 1 “For State, City, or Local Tax Department”; Copy B “Report this income on your federal tax return. If this form shows federal income tax withheld in box 2, attach this copy to your return”; Copy C “For Winner’s Records”; Copy 2 “Attach this copy to your state, city, or local income tax return, if required”; Copy D “For Payer.” 1042-S Copy B “For Recipient”; Copy C “For Recipient” and “Attach to any federal tax return you file”; Copy D “For Recipient” and “Attach to any state tax return you file”; Copy E “For Withholding Agent.” 4.5.3 Perforations Instructions for perforation of forms can be found in Section 2.1.9, earlier. Section 4.6 – Electronic Delivery of Recipient Statements 4.6.1 Electronic Recipient Statements If you are required to furnish a written statement (Copy B or an acceptable substitute) to a recipient, then you may furnish the statement electronically instead of on paper. This includes furnishing the statement to recipients of Forms 1098, 1098-E, 1098-F, 1098-MA, 1098-Q, 1098-T, 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-DIV, 1099-G, 1099-H, 1099-INT, 1099-K, 1099-LS, 1099-LTC, 1099-MISC, 1099-NEC, 1099-OID, 1099-PATR, 1099-Q, 1099-QA, 1099-R, 1099-S, 1099-SA, 1099-SB, 1042-S, 3921, 3922, 5498, 5498-ESA, 5498-QA, and 5498-SA. It also includes Form W-2G (except for horse and dog racing, jai alai, sweepstakes, wagering pools, and lotteries). Note. Until further guidance is issued, you cannot furnish Form 1098-C electronically. Perforation (see Section 2.1.9, earlier) does not apply to printouts of copies of forms that are furnished electronically to recipients. However, recipients should be cautioned to carefully separate the copies. If you meet the requirements listed in Sections 4.6.2 and 4.6.3, you are treated as furnishing the statement timely. 4.6.2 Consent The recipient must consent in the affirmative to receiving the statement electronically and not have withdrawn the consent before the statement is furnished. The consent by the recipient must be made electronically in a way that shows that he or she can access the statement in the electronic format in which it will be furnished. You must notify the recipient of any hardware or software changes prior to furnishing the statement. A new consent to receive the statement electronically is required after the new hardware or software is put into service. Prior to furnishing the statements electronically, you must provide the recipient a statement with the following statements prominently displayed. If the recipient does not consent to receive the statement electronically, a paper copy will be provided. The scope and duration of the consent. For example, whether the consent applies to every year the statement is furnished or only for the January 31, 2022 (February 15 for Forms 1099-B, 1099-S, and 1099-MISC with payments reported in box 8 or 10) immediately following the date of the consent. How to obtain a paper copy after giving consent. How to withdraw the consent. The consent may be withdrawn at any time by furnishing the withdrawal in writing (electronically or on paper) to the person whose name appears on the statement. Confirmation of the withdrawal will also be in writing (electronically or on paper). Notice of termination. The notice must state under what conditions the statements will no longer be furnished to the recipient. Procedures to update the recipient’s information. A description of the hardware and software required to access, print, and retain a statement, and a date the statement will no longer be available on the website. 4.6.3 Format, Posting, and Notification Additionally, you must: Ensure the electronic format contains all the required information and complies with the guidelines in this document; Post, on or before the January 31, 2022: (February 15 for Forms 1099-B, 1099-S, and 1099-MISC with payments reported in box 8 or 10) due date, the applicable statement on a website accessible to the recipient through October 17 of that year; and Inform the recipient, electronically or by mail, of the posting and how to access and print the statement. For more information, see Regulations section 31.6051-1(j). For electronic furnishing of: Forms 1098-E and 1098-T, see Regulations sections 1.6050S-2 and 1.6050S-4; Form 1099-K, see Regulations section 1.6050W-2; Forms 1099-QA and 5498-QA; see Regulations sections1.529A-7; Forms 1099-R, 1099-SA, 1099-Q, 5498, 5498-ESA, and 5498-SA, see Notice 2004-10, 2004-1 C.B. 433; and Form 1042-S, see Regulations section 1.1461-1(c)(1)(i). Part 5 Additional Instructions for Substitute Forms 1097- BTC, 1098, 1099, 5498, W-2G, and 1042-S Section 5.1 – Paper Substitutes for Form 1042-S 5.1.1 Paper Substitutes Paper substitutes of Copies A, B, C, and D must be identical to the Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, and may be privately printed without prior approval from the Internal Revenue Service. Caution. On the bottom of Copy B, left align the following text: (keep for your records) and right align the following text: Form 1042-S (2022). Note. Copies A, B, C, and D of Form 1042-S may not contain multiple income types for the same recipient, that is, multiple rows of the top boxes 1–11 of the form. Only Copy E, retained by the withholding agent, can contain multiple income types. 5.1.2 Revisions Form 1042-S is subject to annual review and possible change. Withholding agents and form suppliers are cautioned against overstocking supplies of the privately printed substitutes. 5.1.3 Obtaining Copies Copies of the official form for the reporting year may be obtained from most IRS offices. The IRS provides only cut sheets of these forms. Continuous fan-fold/pin-fed forms are not provided. 5.1.4 Instructions For Withholding Agents Only original forms may be filed with the IRS. Photocopies are not acceptable. The term “Recipient’s U.S. TIN” for an individual means the SSN, ITIN, or ATIN, consisting of nine digits separated by hyphens as follows: 000-00-0000. For all other recipients, the EIN or qualified intermediary employer identification number (QI-EIN). The QI-EIN designation includes a withholding foreign partnership employer identification number (WP-EIN), and a withholding foreign trust employer identification number (WT-EIN). The EIN, QI-EIN, WP-EIN, and WT-EIN consist of nine digits separated by a hyphen as follows: 00-0000000. The TIN must be in one of these formats. Note. Digits must be separated by hyphens on paper statements in the formats listed. The term “Recipient’s GIIN” means the global intermediary identification number assigned to a recipient that is a participating foreign financial institution (FFI) (including a reporting Model 2 FFI), registered deemed-compliant FFI (including a reporting Model 1 FFI), or other entity for chapter 4 purposes. Note. A GIIN consists of nineteen characters as follows: XXXXXX.XXXXX.XX.XXX (6 characters followed by a period, 5 characters followed by a period, 2 characters followed by a period, and 3 final characters). Withholding agents are requested to type or machine print whenever possible, provide quality data entries on the forms (that is, use black ink and insert data in the middle of blocks well separated from other printing and guidelines), and take other measures to guarantee a clear, sharp image. Withholding agents are not required, however, to acquire special equipment solely for the purpose of preparing these forms. The “UNIQUE FORM IDENTIFIER,” “AMENDED,” and “AMENDMENT NO.” boxes must be printed at the top center of the form under the title. Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single form before they are filed with the IRS. The dimensions are found in Section 5.1.5, later. Computer cards are acceptable provided they meet all requirements regarding layout, content, and size. The OMB number must be printed in the format “OMB No. 1545-XXXX.” Use the appropriate OMB number from the most recent revision of the original IRS form. 5.1.5 Substitute Form 1042-S Format Requirements Property Substitute Form 1042-S Format Requirements Printing Privately printed substitute Forms 1042-S must be exact replicas of the official forms with respect to layout and content. The Government Printing Office (GPO) symbol must be deleted. The exact dimensions are found below. The Cat. No. must be removed and replaced with the form printer’s EIN or the vendor code (preferred). See Section 2.1.10. Box Entries Only one type of income may be represented on Copies A, B, C, and D submitted to the IRS or furnished to recipients. Multiple income types may be shown on Copy E retained by withholding agents. All boxes on Copy A filed with the IRS, and Copies B, C, and D furnished to recipients on the substitute form must conform to the official IRS form. Color and Quality of Ink All printing must be in high quality nongloss black ink. Typography Type must be substantially identical in size and shape to corresponding type on the official form. All rules on the document are either 1 point (0.015 inches) or 3 point (0.045 inches). Vertical rules must be parallel to the left edge of the document; horizontal rules must be parallel to the top edge. Assembly If all five parts are present, the parts of the assembly shall be arranged from top to bottom as follows: Copy A (Original) “for Internal Revenue Service,” Copies B, C, and D “for Recipient,” and Copy E “for Withholding Agent.” Color Quality of Paper Paper for Copy A must be white chemical wood bond, or equivalent, 20 pounds (basis 17 x 22–500), plus or minus 5% (0.05); or offset book paper, 50 pounds (basis 25 x 38–500). No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleached chemical wood pulp or recycled printed paper. It must also be suitably sized to accept ink without feathering. Dimensions The dimensions for substitute Copies A, B, C, and D must match the IRS Form 1042-S in size and format. The official form is 8 inches wide x 11 inches deep, exclusive of a 1/2 inch snap stub on the left side of the form. The snap feature is not required on substitutes. Copies A, B, C, and D must conform to the official IRS form. No size variations are permitted. Other Copies Copies B, C, and D must be furnished for the convenience of payees who must send a copy of the form with other federal and state returns they file. Copy E may be used as a withholding agent’s record/copy. Section 5.2 – OMB Requirements for All Forms in This Revenue Procedure 5.2.1 OMB Requirements The Paperwork Reduction Act (the Act) of 1995 (P. L. 104-13) requires that: OMB approves all IRS tax forms that are subject to the Act. Each IRS form contains (in or near the upper right corner) the OMB approval number, if any. (The official OMB numbers may be found on the official IRS printed forms and are also shown on the forms in the exhibits in Part 6.); Each IRS form (or its instructions) states: 1. Why the IRS needs the information, 2. How it will be used, and 3. Whether or not the information is required to be furnished to the IRS. This information must be provided to any users of official or substitute IRS forms or instructions. 5.2.2 Substitute Form Requirements The OMB requirements for substitute IRS forms are: Any substitute form or substitute statement to a recipient must show the OMB number as it appears on the official IRS form, For Copy A, the OMB number must appear exactly as shown on the official IRS form. For any copy other than Copy A, the OMB number must use one of the following formats. OMB No. 1545-xxxx (preferred), or OMB # 1545-xxxx (acceptable). Caution. These requirements do not apply to substitute Forms 1042-S. See Section 5.1.4, earlier. 5.2.3 Required Explanation to Users All substitute forms must state the Privacy Act and Paperwork Reduction Act Notice as listed in Section 2.1.10, earlier. If no instructions are provided to users of your forms, you must furnish them with the exact text of the Privacy Act and Paperwork Reduction Act Notice. Section 5.3 – Ordering Forms and Instructions You can order official IRS Forms (Forms 1096, 1098, 1099, W-2G, 1042-S, and most other forms mentioned in this publication), instructions, and information copies of federal tax material by going to IRS.gov/OrderForms. Note. Some forms on the Internet are intended as information only and may not be submitted as an official IRS form (for example, most Forms 1099, W-2, and W-3). Unless otherwise instructed, Form 1096 and Copy A of 1098 series, 1099 series, 5498 series, and Forms 3921 and 3922 cannot be used for filing with the IRS when printed from a conventional printer. These forms contain drop-out ink requirements as described in Part 2 of this publication. Exception. Forms 1097-BTC, 1098-C, 1098-MA, 1099-CAP, 1099-LTC, 1099-Q, 1099-QA, 1099-SA, 3922, 5498-ESA, 5498-QA, 5498-SA, and 1042-S can be printed in black ink as specified in Sections 2.1.1 and 5.1.5, earlier. Section 5.4 – Effect on Other Revenue Procedures 5.4.1 Other Revenue Procedures Revenue Procedure 2021-27, 2021-26, I.R.B. 1,252, dated June 28, 2021, is superseded by this revenue procedure. Part 6 Exhibits Section 6.1 – Exhibits of Forms in This Revenue Procedure 6.1.1 Purpose Exhibits A through CC illustrate some of the specifications that were discussed earlier in this revenue procedure. The dimensions apply to the actual size forms, but the exhibits have been reduced in size. Generally, the illustrated dimensions apply to all like forms. For example, Exhibit E shows 11.00 inches from the top edge to the bottom edge of Form 1098-E and .85 inches between the bottom rule of the top form and the top rule of the second form on the page. These dimensions apply to all forms that are printed 3-to-a-page. Exhibit B contains the general measurements for forms printed 2-to-a-page. All 2-to-a-page forms, except Form 1099-B, are 4.5 inches in height within the border lines. Form 1099-B is 4.67 inches in height within the border lines. Exhibit E contains the general measurements for forms printed 3-to-a-page. All 3-to-a-page forms are 2.83 inches in height within the border lines. The printed area of all forms is 7.3 inches wide. All of the exhibits in this publication were updated to include all of the 2022 revisions for those forms that have been revised. 6.1.2 Guidelines Keep in mind the following guidelines when printing substitute forms. Closely follow the specifications to avoid delays in processing the forms. Always use the specifications as outlined in this revenue procedure and illustrated in the exhibits. Do not add the text line “Do Not Cut or Separate Forms on This Page” to the bottom form. This will be inconsistent with the specifications. 6.2 Exhibits The following exhibits provide specifications for the forms listed in Section 1.1.2. Exhibits A, B, and E contain the general measurements for all of the forms. The remaining exhibits represent the images and may contain unique measurements as required by the form. Rev. Proc. 2022-28 SECTION 1. PURPOSE This revenue procedure amplifies Rev. Proc. 2022-3, 2022-1 IRB 144, which sets forth areas of the Internal Revenue Code (Code) relating to issues on which the Internal Revenue Service (IRS) will not issue letter rulings or determination letters. This revenue procedure announces that the IRS will not issue letter rulings on whether certain transactions result in an employer reversion within the meaning of § 4980(c)(2) of the Code. SECTION 2. BACKGROUND In the interest of sound tax administration, the IRS answers inquiries from individuals and organizations regarding their status for tax purposes and the tax effects of their acts or transactions. See Rev. Proc. 2022-1, 2022-1 IRB 1. There are, however, areas in which the IRS will not issue rulings or determination letters. The IRS incorporates these no-rule areas annually into the third revenue procedure of the year, currently Rev. Proc. 2022-3. Sections 3, 4, 5 and 6 of Rev. Proc. 2022-3 set forth lists of those areas in which rulings or determination letters (1) will not be issued, (2) will not ordinarily be issued, (3) will temporarily not be issued while the area is under study, and (4) will not be issued because automatic approval procedures apply. In addition, section 2.01 of Rev. Proc. 2022-3 provides that additions or deletions to these lists may be made; changes will be published as they occur throughout the year and will be incorporated annually in a new revenue procedure published as the third revenue procedure of the year. The IRS has determined that it is in the interest of sound tax administration not to issue rulings on the transactions described in section 3 of this revenue procedure. SECTION 3. APPLICATION The IRS will not issue letter rulings on whether an employer reversion from a qualified plan occurs for purposes of § 4980(c)(2) in connection with a spin-off/termination transaction that involves excess assets. For this purpose, a “spin-off/termination transaction that involves excess assets” means a transaction in which: (1) less than 100 percent of the assets of a defined benefit plan are spun off to another defined benefit plan sponsored or maintained by the same employer (or any entity that would be considered to be in a group of employers treated as a single employer with the employer under § 414(b), (c), (m), or (o)); (2) the defined benefit plan receiving the assets that have been spun off is terminated within a short period of time after receiving those assets; and (3) assets remain in the trust of the terminated defined benefit plan after all benefits are distributed to or on behalf of all participants and their beneficiaries. SECTION 4. EFFECT ON OTHER DOCUMENTS Rev. Proc. 2022-3 is amplified. SECTION 5. EFFECTIVE DATE This revenue procedure applies to all ruling requests pending with or received by the IRS on or after June 21, 2022. Any request for a ruling on the issue described in section 3 of this revenue procedure that is pending with the IRS on June 21, 2022 will be closed, and the user fee will be returned in full. SECTION 6. DRAFTING INFORMATION The principal author of this revenue procedure is Gregory Burns of the Office of Associate Chief Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). For further information regarding this revenue procedure, contact Mr. Burns at (202) 317-4545 (not a toll-free number). Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed. Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them. Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above). Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded. Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series. Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The following abbreviations in current use and formerly used will appear in material published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. DC—Dummy Corporation. DE—Donee. Del. Order—Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE—Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. Numerical Finding List1 Numerical Finding List Bulletin 2022–27 Revenue Procedures: Article Issue Link Page 2022-25 2022-27 I.R.B. 2022-27 3 2022-28 2022-27 I.R.B. 2022-27 65 Revenue Rulings: Article Issue Link Page 2022-12 2022-27 I.R.B. 2022-27 1 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2020–27 through 2020–52 is in Internal Revenue Bulletin 2020–52, dated December 27, 2021. Finding List of Current Actions on Previously Published Items1 Bulletin 2022–27 How to get the Internal Revenue Bulletin INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available at www.irs.gov/irb/. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR-6230 Washington, DC 20224.
