Internal Revenue Bulletin 2005-31 (PDF rendition): IRS Revenue Rulings

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 200
5-31
August 1, 2005
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2005–51, page 163.
Mathematical or clerical error summary assessment
procedures.This ruling clarifies whether the mathematical
or clerical error assessment procedures of section 6213(b)
of the Code apply when a taxpayer files an income tax return
that reports income in an amount different from that reported
on a W-2.
T.D. 9209
, page 153.
Final regu
lations under section 179 of the Code provide rules
for makin
g and revoking elections to expense the cost of cer-
tain depr
eciable business property. The regulations apply for
property
placed in service in taxable years beginning after
2002 and b
efore 2008.
Announcement 2005–53, page 258.
This document contains corrections to temporary regulations
(T.D. 9186, 2005–13 I.R.B. 790) modifying the rules relat-
ing to qualified amended returns by providing additional cir-
cumstances that end the period when a taxpayer may file an
amended return that constitutes a qualified amended return.
ESTATE T
AX
T.D. 92
08, page 157.
Final re
gulations under section 2632(c)(5)(A)(i) of the Code pro-
vide gu
idance for making the election to not have the deemed
alloca
tion of unused generation-skipping transfer (GST) tax ex-
emptio
n under section 2632(c)(1) apply with regard to certain
transf
ers to a GST trust, as defined in section 2632(c)(3)(B).
The reg
ulations also provide guidance for making the election
under
section 2632(c)(5)(A)(ii) to treat a trust as a GST trust.
ADMINISTRATIVE
Rev. Rul. 2005–51, page 163.
Mathematical or clerical error summary assessment
procedures.This ruling clarifies whether the mathematical
or clerical error assessment procedures of section 6213(b)
of the Code apply when a taxpayer files an income tax return
that reports income in an amount different from that reported
on a W-2.
Rev. Proc
. 2005–49, page 165.
Electroni
c filing; magnetic media; 2005 form specifica-
tions.Th
is procedure contains updates and changes to Pub-
lication
1220,Specifications for Filing Forms 1098, 1099,
5498 and W
-2G Electronically or Magnetically.Rev.Proc.
2004–50 s
uperseded.
Announcement 2005–52, page 257.
This document contains corrections to T.D. 9207, 2005–26
I.R.B. 1344, relating to the definition of liabilities.
Announcements of Disbarments and Suspensions begin on page 249.
Fi
nding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top quality service by helping
them understand and meet their tax responsibilities and by
applying the tax law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement 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.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al 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, Leg-
islation 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 Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Sec-
retary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
August 1, 20052005–31 I.R.B.

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 179.—Election
to Expense Certain
Depreciable Business
Assets
26 CFR 1.179–2: Limitations on amount subject to
section 179 election.
T.D. 9209
DEPARTMENT OF
THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
Section 179 Elections
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains fi-
nal regulations relating to the election to
expense the cost of property subject to
section 179 of the Internal Revenue Code
(Code). The regulations reflect changes to
the law made by section 202 of the Jobs
and Growth Tax Relief Reconciliation Act
of 2003 and section 201 of the American
Jobs Creation Act of 2004.
DATES:Effective Date:These regulations
are effective July 13, 2005.
Applicability Dates:For dates of appli-
cability, see §1.179–6.
FOR FURTHER INFORMATION
CONTACT: Winston H. Douglas, (202)
622–3110 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information con-
tained in these final regulations have been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act of
1995 (44 U.S.C. 3507(d)) under control
number 1545–1201. The collections of
information in these final regulations are
in §§1.179–2 and 1.179–5. This informa-
tion is required by §1.179–2 to ensure that
married individuals filing separate returns
properly allocate the cost of section 179
property elected to be expensed in a tax-
able year and that the dollar limitation is
properly allocatedamong the component
members of a controlled group. Also, this
informationisrequiredby§1.179–5to
ensure the specific identification of each
piece of acquired section 179 property and
reflect how and from whom such property
was placed in service.This information
will be used for audit and examination
purposes.
Estimated total annual reporting and/or
recordkeeping burden: 3,015,000 hours.
The estimated annual burden per re-
spondent/recordkeeper varies from .50 to
1 hour, depending on individual circum-
stances, with an estimated average of .75
hour.
Estimated number of respondents
and/or recordkeepers: 4,025,000
Estimated frequency of responses: An-
nually
Comments on the collection of infor-
mation should be sent to theOffice of
Management and Budget,Attn: Desk
Officer for the Department of the Trea-
sury, Office of Information and Regula-
tory Affairs, Washington, DC 20503, with
copies to theInternal Revenue Service,
Attn: IRS Reports Clearance Officer,
SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments are specifically re-
quested concerning how the burden of
complying with the collection of informa-
tion may be minimized, including through
the application of automated collection
techniques or other forms of information
technology.
An agency may not conduct or sponsor,
and a person is not required to respond to, a
collection of information unless it displays
a valid control number assigned by the Of-
fice of Management and Budget.
Books or records relating to a collection
of information must be retained as long
as their contents might become material in
the administration of any internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
Background
This document contains amendments
to 26 CFR parts 1 and 602. On August 4,
2004, the IRS and Treasury Department
published temporary regulations (T.D.
9146, 2004–36 I.R.B. 408) in theFederal
Register(69 FR 46982) relating to the
election to expense the cost of property
subject to section 179 of the Code. The
temporary regulations reflected changes
to the law made by section 202 of the Jobs
and Growth Tax Relief Reconciliation Act
of 2003 (JGTRRA), Public Law 108–27
(117 Stat. 752). On the same date, the IRS
published a notice of proposed rulemak-
ing (REG–152549–03, 2004–36 I.R.B.
451) cross-referencing the temporary reg-
ulations in theFederal Register(69 FR
47043). No comments were received
from the public in response to the notice
of proposed rulemaking and no public
hearing was requested or held. However,
section 201 of the American Jobs Creation
Act of 2004, Public Law 108–357 (118
Stat. 1418), extended the changes that
were made by JGTRRA for an additional
two years. The proposed regulations are
adopted as amended by this Treasury de-
cision, and the corresponding temporary
regulations are removed. The revisions
are discussed below.
Explanation of Provisions
Scope
The changes made to section 179 by
section 202 of JGTTRA were applicable
for section 179 property placed in service
by a taxpayer in taxable years beginning
after 2002 and before 2006. Section 202 of
JGTRRA expanded the definition of sec-
tion 179 property to include off-the-shelf
computer software (a category of intangi-
ble property) and increased the $25,000
and $200,000 limitation amounts of sec-
tion 179(b)(1) and (b)(2), respectively,
to $100,000 and $400,000, respectively.
In addition, the $100,000 and $400,000
amounts were indexed annually for infla-
tion for taxable years beginning after 2003
and before 2006. JGTRRA also modified
section 179 to provide that any election
2005–31 I.R.B.153August 1, 2005

or specification for taxable years begin-
ning after 2002 and before 2006 may be
revoked by the taxpayer with respect to
any section 179 property, and that such re-
vocation, once made, shall be irrevocable.
With respect to a taxable year beginning
after 2002 and before 2006, the confer-
ence agreement permitted taxpayers to
make or revoke an expensing election on
an amended Federal tax return without the
consent of the Commissioner. The tem-
porary regulations reflected the changes
to section 179 made by section 202 of
JGTTRA.
Subsequent to the issuance of the pro-
posed regulations andthetemporaryregu-
lations, the American Jobs Creation Act of
2004 (AJCA) was enacted. Section 201 of
AJCA extends the changes that were made
by JGTTRA for an additional two years.
The final regulations retain the rules relat-
ing to the JGTTRA changes contained in
the temporary regulations. The final reg-
ulations also apply the AJCA’s two-year
extension of the JGTTRA changes to sec-
tion 179 property placed in service by a
taxpayer in a taxable year beginning after
2002 and before 2008.
MannerofMakinganElectionor
Revoking an Election Under Section 179
The final regulations provide that for
any taxable year beginning after 2002 and
before 2008, a section 179 election or a re-
vocation of a section 179 election may be
made on an amended Federal tax return for
that taxable year to which the election or
revocation applies. For any taxable year
beginning before 2003, a late section 179
election or a revocation of a section 179
election generally is made by a taxpayer
submitting a request for a letter ruling. Ac-
cordingly, the final regulations clarify that
a section 179 election or a revocation of a
section 179 election generally must not be
made in any other manner (for example, a
section 179 election or revocation of a sec-
tion 179 election cannot be made through a
request under section 446(e) to change the
taxpayer’s method of accounting).
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It also has been deter-
mined that section 553(b) of the Admin-
istrative Procedure Act (5 U.S.C. chapter
5) does not apply to these regulations. It is
hereby certified that the collection of infor-
mation in these regulations will not have
a significant economic impact on a sub-
stantial number of small entities. This cer-
tification is based upon the fact that the
amount of time necessary to record and re-
tain the required information will be mini-
mal for those taxpayers electing to expense
the cost of section 179 property. The es-
timated annual burden for each such tax-
payer varies from .50 to 1 hour, depend-
ing on individual circumstances, with an
estimated average of .75 hour. Therefore,
a regulatory flexibility analysis under the
Regulatory Flexibility Act (5 U.S.C. chap-
ter 6) is not required. Pursuant to section
7805(f) of the Code, the notice of proposed
rulemaking preceding these final regula-
tions was submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on its impact on
small business.
Drafting Information
The principal author of these regula-
tions is Winston H. Douglas, Office of the
Associate Chief Counsel (Passthroughs
and Special Industries). However, other
personnel from the IRS and Treasury
Department participated in their develop-
ment.
*****.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 602
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read, in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.179–0 is amended as
follows:
1. The entries for §1.179–2(b)(1) and
(b)(2), §1.179–4(a), and §1.179–5(c) are
revised.
2. The entries for §1.179–5(d) and
§1.179–6(a), (b), and (c) are added.
3. Sections 1.179–2T, 1.179–4T,
1.179–5T, and 1.179–6T are removed.
The revisions and additions read as fol-
lows:
§1.179–0 Table of contents for section
179 expensing rules.
*****
§1.179–2 Limitations on amount subject
to section 179 election.
*****
(b) * * *
(1) In general.
(2) Excess section 179 property.
*****
§1.179–4 Definitions.
(a) Section 179 property.
*****
§1.179–5 Time and manner of making
election.
*****
(c) Section 179 property placed in ser-
vice by the taxpayer in a taxable year be-
ginning after 2002 and before 2008.
(d) Election or revocation must not be
made in any other manner.
§1.179–6 Effective dates.
(a) In general.
(b) Section 179 property placed in ser-
vice by the taxpayer in a taxable year be-
ginning after 2002 and before 2008.
(c) Application of §1.179–5(d).
§1.179–2 [Amended]
Par. 3. Section 1.179–2 is amended by
revising paragraphs (b)(1) and (b)(2)(ii) to
read as follows:
§1.179–2 Limitations on amount subject
to section 179 election.
*****
(b)Dollar limitation—(1)In general.
The aggregate cost of section 179 prop-
erty that a taxpayer may elect to expense
under section 179 for any taxable year be-
ginning in 2003 and thereafter is $25,000
($100,000 in the case of taxable years be-
ginning after 2002 and before 2008 un-
der section 179(b)(1), indexed annually for
inflation under section 179(b)(5) for tax-
able years beginning after 2003 and before
August 1, 20051542005–31 I.R.B.

2008), reduced (but not below zero) by the
amount of any excess section 179 property
(described in paragraph (b)(2) of this sec-
tion) placed in service during the taxable
year.
(b) * * *
(2) * * *
(ii) $200,000 ($400,000 in the case of
taxable years beginning after 2002 and
before 2008 under section 179(b)(2), in-
dexed annually for inflation under section
179(b)(5) for taxable years beginning after
2003 and before 2008).
*****
§1.179–2T [Removed]
Par. 4. Section 1.179–2T is removed.
§1.179–4 [Amended]
Par. 5. Section 1.179–4 is amended
by revising the introductory text and para-
graph (a) to read as follows:
§1.179–4 Definitions.
The following definitions apply for
purposes of section 179 and §§1.179–1
through 1.179–6:
(a)Section 179 property.Thetermsec-
tion 179 propertymeans any tangible prop-
erty described in section 179(d)(1) that is
acquired by purchase for use in the active
conduct of the taxpayer’s trade or business
(as described in §1.179–2(c)(6)). For tax-
able years beginning after 2002 and be-
fore 2008, the termsection 179 property
includes computer software described in
section 179(d)(1) that is placed in service
by the taxpayer in a taxable year begin-
ning after 2002 and before 2008 and is ac-
quired by purchase for use in the active
conduct of the taxpayer’s trade or business
(as described in §1.179–2(c)(6)). For pur-
poses of this paragraph (a), the termtrade
or businesshas the same meaning as in sec-
tion 162 and the regulations under section
162.
*****
§1.179–4T [Removed]
Par. 6. Section 1.179–4T is removed.
§1.179–5 [Amended]
Par. 7. Section 1.179–5 is amended
by revising paragraph (c) and adding para-
graph (d) to read as follows:
§1.179–5 Time and manner of making
election.
*****
(c)Section 179 property placed in ser-
vice by the taxpayer in a taxable year be-
ginning after 2002 and before 2008—(1)
In general. For any taxable year begin-
ning after 2002 and before 2008, a tax-
payer is permitted to make or revoke an
election under section 179 without the con-
sent of the Commissioner on an amended
Federal tax return for that taxable year.
This amended return must be filed within
the time prescribed by law for filing an
amended return for such taxable year.
(2)Election—(i)In general.Forany
taxable year beginning after 2002 and
before 2008, a taxpayer is permitted to
make an election under section 179 on an
amended Federal tax return for that taxable
year without the consent of the Commis-
sioner. Thus, the election under section
179 and §1.179–1 to claim a section 179
expense deduction for section 179 prop-
erty may be made on an amended Federal
tax return for the taxable year to which the
election applies. The amended Federal tax
return must include the adjustment to tax-
able income for the section 179 election
and any collateral adjustments to taxable
income or to the tax liability (for example,
the amount of depreciation allowed or al-
lowable in that taxable year for the item of
section 179 property to which the election
pertains). Such adjustments must also be
made on amended Federal tax returns for
any affected succeeding taxable years.
(ii)Specifications of elections.Any
election under section 179 must specify
the items of section 179 property and the
portion of the cost of each such item to be
taken into account under section 179(a).
Any election under section 179 must com-
ply with the specification requirements
of section 179(c)(1)(A), §1.179–1(b), and
§1.179–5(a). If a taxpayer elects to ex-
pense only a portion of the cost basis
of an item of section 179 property for
a taxable year beginning after 2002 and
before 2008 (or did not elect to expense
any portion of the cost basis of the item
of section 179 property), the taxpayer is
permitted to file an amended Federal tax
return for that particular taxable year and
increase the portion of the cost of the item
of section 179 property to be taken into
account under section 179(a) (or elect to
expense any portion of the cost basis of
the item of section 179 property if no prior
election was made) without the consent of
the Commissioner. Any such increase in
the amount expensed under section 179 is
not deemed to be a revocation of the prior
election for that particular taxable year.
(3)Revocation—(i)In general. Section
179(c)(2) permits the revocation of an en-
tire election or specification, or a portion
of the selected dollar amount of a specifi-
cation. The termspecificationin section
179(c)(2) refers to both the selected spe-
cific item of section 179 property subject
to a section 179 election and the selected
dollar amount allocable to the specific item
of section 179 property. Any portion of the
cost basis of an item of section 179 prop-
erty subject to an election under section
179 for a taxable year beginning after 2002
and before 2008 may be revoked by the
taxpayer without the consent of the Com-
missioner by filing an amended Federal tax
return for that particular taxable year. The
amended Federal tax return must include
the adjustment to taxable income for the
section 179 revocation and any collateral
adjustments to taxable income or to the tax
liability (for example, allowable depreci-
ation in that taxable year for the item of
section 179 property to which the revoca-
tion pertains). Such adjustments must also
be made on amended Federal tax returns
for any affected succeeding taxable years.
Reducing or eliminating a specified dollar
amount for any item of section 179 prop-
erty with respect to any taxable year begin-
ning after 2002 and before 2008 results in a
revocation of that specified dollar amount.
(ii)Effect of revocation. Such revoca-
tion, once made, shall be irrevocable. If
the selected dollar amount reflects the en-
tire cost of the item of section 179 property
subject to the section179 election, a revo-
cation of the entire selected dollar amount
is treated as a revocation of the section 179
election for that item of section 179 prop-
erty and the taxpayer is unable to make a
new section 179 election with respect to
that item of property. If the selected dol-
laramountisaportionofthecostofthe
item of section 179 property, revocation of
a selected dollar amount shall be treated
as a revocation of only that selected dol-
lar amount. The revoked dollars cannot be
the subject of a new section 179 election
forthesameitemofproperty.
2005–31 I.R.B.155August 1, 2005

(4)Examples. The following examples
illustrate the rules of this paragraph (c):
Example 1. Taxpayer, a sole proprietor, owns
and operates a jewelry store. During 2003, Taxpayer
purchased and placed in service two items of sec-
tion 179 property — a cash register costing $4,000
(5-year MACRS property) andoffice furniture cost-
ing $10,000 (7-year MACRS property). On his 2003
Federal tax return filed on April 15, 2004, Taxpayer
elected to expense under section 179 the full cost of
the cash register and, with respect to the office furni-
ture, claimed the depreciation allowable. In Novem-
ber 2004, Taxpayer determines it would have been
more advantageous to have made an election under
section 179 to expense the full cost of the office fur-
niture rather than the cash register. Pursuant to para-
graph (c)(1) of this section, Taxpayer is permitted to
file an amended Federal tax return for 2003 revoking
the section 179 election for the cash register, claiming
the depreciation allowable in 2003 for the cash regis-
ter, and making an election to expense under section
179 the cost of the office furniture. The amended re-
turn must include an adjustment for the depreciation
previously claimed in 2003 for the office furniture,
an adjustment for the depreciation allowable in 2003
for the cash register, and any other collateral adjust-
ments to taxable income or to the tax liability. In addi-
tion, once Taxpayer revokes the section 179 election
for the entire cost basis of the cash register, Taxpayer
can no longer expense under section 179 any portion
of the cost of the cash register.
Example 2. Taxpayer, a sole proprietor, owns
and operates a machine shop that does specialized
repair work on industrial equipment. During 2003,
Taxpayer purchased and placed in service one item
of section 179 property — a milling machine cost-
ing $135,000. On Taxpayer’s 2003 Federal tax return
filed on April 15, 2004, Taxpayer elected to expense
under section 179 $5,000 of the cost of the milling
machine and claimed allowable depreciation on the
remaining cost. Subsequently, Taxpayer determines
it would have been to Taxpayer’s advantage to have
elected to expense $100,000 of the cost of the milling
machine on Taxpayer’s 2003 Federal tax return. In
November 2004, Taxpayer files an amended Federal
tax return for 2003, increasing the amount of the cost
of the milling machine that is to be taken into account
under section 179(a) to $100,000, decreasing the de-
preciation allowable in 2003 for the milling machine,
and making any other collateral adjustments to tax-
able income or to the tax liability. Pursuant to para-
graph (c)(2)(ii) of this section, increasing the amount
of the cost of the milling machine to be taken into ac-
count under section 179(a) supplements the portion of
the cost of the milling machine that was already taken
into account by the original section 179 election made
on the 2003 Federal tax return and no revocation of
any specification with respect to the milling machine
has occurred.
Example 3. Taxpayer, a sole proprietor, owns and
operates a real estate brokerage business located in
a rented storefront office. During 2003, Taxpayer
purchases and places in service two items of section
179 property — a laptop computer costing $2,500
and a desktop computer costing $1,500. On Tax-
payer’s 2003 Federal tax return filed on April 15,
2004, Taxpayer elected to expense under section 179
the full cost of the laptop computer and the full cost
of the desktop computer. Subsequently, Taxpayer de-
termines it would have been to Taxpayer’s advantage
to have originally elected to expense under section
179 only $1,500 of the cost of the laptop computer
on Taxpayer’s 2003 Federal tax return. In November
2004, Taxpayer files an amended Federal tax return
for 2003 reducing the amount of the cost of the laptop
computer that was taken into account under section
179(a) to $1,500, claiming the depreciation allowable
in 2003 on the remaining cost of $1,000 for that item,
and making any other collateral adjustments to tax-
able income or to the tax liability. Pursuant to para-
graph (c)(3)(ii) of this section, the $1,000 reduction
represents a revocation of a portion of the selected
dollar amount and no portion of those revoked dol-
lars may be the subject of a new section 179 election
for the laptop computer.
Example 4. Taxpayer, a sole proprietor, owns and
operates a furniture making business. During 2003,
Taxpayer purchases and places in service one item
of section 179 property — an industrial-grade cabi-
net table saw costing $5,000. On Taxpayer’s 2003
Federal tax return filed on April 15, 2004, Taxpayer
elected to expense under section 179 $3,000 of the
cost of the saw and, with respect to the remaining
$2,000 of the cost of the saw, claimed the depreci-
ation allowable. In November 2004, Taxpayer files
an amended Federal tax return for 2003 revoking the
selected $3,000 amount for the saw, claiming the de-
preciation allowable in 2003 on the $3,000 cost of the
saw, and making any other collateral adjustments to
taxable income or to the tax liability. Subsequently,
in December 2004, Taxpayer files a second amended
Federal tax return for 2003 selecting a new dollar
amount of $2,000 for the saw, including an adjust-
ment for the depreciation previously claimed in 2003
on the $2,000, and making any other collateral adjust-
ments to taxable income or to the tax liability. Pur-
suant to paragraph (c)(2)(ii) of this section, Taxpayer
is permitted to select a new selected dollar amount to
expense under section 179 encompassing all or a part
of the initially non-elected portion of the cost of the
elected item of section 179 property. However, no
portion of the revoked $3,000 may be the subject of a
new section 179 dollar amount selection for the saw.
In December 2005, Taxpayer files a third amended
Federal tax return for 2003 revoking the entire se-
lected $2,000 amount with respect to the saw, claim-
ing the depreciation allowable in 2003 for the $2,000,
and making any other collateral adjustments to tax-
able income or to the tax liability. Because Taxpayer
elected to expense, and subsequently revoke, the en-
tire cost basis of the saw, the section 179 election for
the saw has been revoked and Taxpayer is unable to
make a new section 179 election with respect to the
saw.
(d)Election or revocation must not be
made in any other manner. Any elec-
tion or revocation specified in this section
must be made in the manner prescribed in
paragraphs (a), (b), and (c) of this section.
Thus, this election or revocation must not
be made by the taxpayer in any other man-
ner(forexample,anelectionorarevoca-
tion of an election cannot be made through
a request under section 446(e) to change
the taxpayer’s method of accounting), ex-
cept as otherwise expressly provided by
the Internal Revenue Code, the regulations
under the Code, or other guidance pub-
lished in the Internal Revenue Bulletin.
§1.179–5T [Removed]
Par. 8. Section 1.179–5T is removed.
§1.179–6 [Removed]
Par. 9. Section 1.179–6 is removed.
§1.179–6T [Amended]
Par. 10. Section 1.179–6T is redes-
ignated as §1.179–6 and amended as fol-
lows:
1. The first sentence of paragraph (a) is
revised.
2. Paragraph (b) is revised.
3. Paragraph (c) is added.
The revisions and addition read as fol-
lows:
§1.179–6 Effective dates.
(a) * * * Except as provided in para-
graphs(b)and(c)ofthissection,theprovi-
sions of §§1.179–1 through 1.179–5 apply
for property placed in service by the tax-
payer in taxable years ending after January
25, 1993. * * *
(b)Section 179 property placed in
service by the taxpayer in a taxable
year beginning after 2002 and before
2008. The provisions of §1.179–2(b)(1)
and (b)(2)(ii), the second sentence of
§1.179–4(a), and the provisions of
§1.179–5(c), reflecting changes made
to section 179 by the Jobs and Growth Tax
Relief Reconciliation Act of 2003 (117
Stat. 752) and the American Jobs Creation
Act of 2004 (118 Stat. 1418), apply for
property placed in service in taxable years
beginning after 2002 and before 2008.
(c)Application of §1.179–5(d). Sec-
tion 1.179–5(d) applies on or after July 12,
2005.
PART 602—OMB CONTROL
NUMBERS UNDER THE PAPERWORK
REDUCTION ACT
Par. 11. The authority citation for part
602 continues to read, in part, as follows:
Authority: 26 U.S.C. 7805.
Par. 12. In §602.101, paragraph (b)
is amended by removing the entries for
“1.179–2T” and “1.179–5T” and adding
August 1, 20051562005–31 I.R.B.

a new entry for “1.179–5” in numerical
order to the table to read as follows:
§602.101 OMB Control numbers.
*****
(b) * * *
CFR part or section where
identified and described
Current OMB
control No.
*****
1.179–5........................................................... 1545–1201
*****
Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.
Approved June 23, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on July
12, 2005,
8:45 a.m., and published in the issue of the Federal Register
for July 13, 2005, 70 F.R. 40189)
Section 2632.—Special
Rules for Allocation of
GST Exemption
26 CFR 26.2632–1: Allocation of GST exemption.
T.D. 9208
DEPARTMENT OF
THE TREASURY
Internal Revenue Service
26 CFR Parts 26 and 602
Election Out of GST Deemed
Allocations
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulation.
SUMMARY: This document contains final
regulations providing guidance for making
the election under section 2632(c)(5)(A)(i)
of the Internal Revenue Code to not have
the deemed allocation of unused genera-
tion-skipping transfer (GST) tax exemp-
tion under section 2632(c)(1) apply with
regard to certain transfers to a GST trust,
as defined in section 2632(c)(3)(B). The
final regulations also provide guidance
for making the election under section
2632(c)(5)(A)(ii) to treat a trust as a GST
trust. The regulations primarily affect in-
dividuals.
DATES:Effective Date:The regulations
areeffectiveJune29,2005.
Applicability Date:For dates of appli-
cability, see §26.2632–1(e).
FOR FURTHER INFORMATION
CONTACT: Mayer R. Samuels, (202)
622–3090 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in these final regulations has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)) under control number
1545–1892.
The collection of information
in these final regulations is in
§26.2632–1(b)(2)(iii) and (b)(3). This
information is required by the IRS for
taxpayers who elect to have the automatic
allocation rules not apply to the current
transfer and/or to future transfers to the
trust or to terminate such election. This
information is also required by the IRS
for taxpayers who elect to treat trusts
described in section 2632(c)(3)(B)(i)
through (vi) as GST trusts or to terminate
such election.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
control number.
Books or records relating to this col-
lection of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and tax
return information are confidential, as re-
quired by 26 U.S.C. 6103.
Background
This document contains amendments
to 26 CFR Part 26 under section 2632–1
pertaining to the election under section
2632(c)(5)(A)(i) of the Internal Revenue
Code to not have the deemed alloca-
tion of unused generation-skipping trans-
fer (GST) tax exemption under section
2632(c)(1) apply with regard to certain
transfers to a GST trust, as defined in sec-
tion 2632(c)(3)(B) and the election under
section 2632(c)(5)(A)(ii) to treat a trust as
a GST trust.
On July 13, 2004, the IRS published
(REG–153841–02, 2004–31 I.R.B. 145)
in theFederal Registeranoticeofpro-
posed rulemaking (69 FR 42000). The
IRS received written and oral comments
responding to the notice of proposed rule-
making. No public hearing was requested
or held. After consideration of all the
comments, the proposed regulations are
adoptedasamendedbythisTreasurydeci-
sion, and the corresponding proposed reg-
ulations are removed. The comments and
revisions to the proposed regulations are
discussed below.
Summary of Comments
The proposed regulations generally
permitted transferors only two options for
electing out of the automatic allocation
rules. Transferors could elect out with
respect to a current transfer only, or with
respect to a current-year transfer and all
future transfers to the same trust. Sev-
eral commentators suggested that the final
regulations provide transferors additional
options. In response to these comments,
the final regulations include the options
2005–31 I.R.B.157August 1, 2005

provided in the proposed regulations and,
in addition, give transferors the option
of electing out with respect to (1) only
certain designated future transfers to a
trust, or (2) all future transfers made by
the transferor to any trust (regardless of
whether the trust exists at the time of the
election out). Under the final regulations,
the transferor may elect out with respect
to future transfers even if the transferor
has not made a current-year transfer and
is not otherwise required to file a Federal
gift tax return. Examples have been added
illustrating language that may be used in
the election out statement to satisfy the
requirements for the various election out
options.
One commentator suggested that the
statements required by the regulations to
elect out of the automatic GST allocation
or to treat a trust as a GST trust should not
require a citation to thespecific regulation
section that authorizes the election. The
final regulations adopt this suggestion.
In response to comments, the final reg-
ulations have been clarified to specifically
confirm that an election out of the auto-
matic allocation rules for future years is
limited to automatic allocations under sec-
tion 2632(c) (automatic allocations to in-
direct skips made during the transferor’s
lifetime) and has no effect on the automatic
allocation rules that apply after the trans-
feror’s death under section 2632(e).
One commentator recommended that
the IRS clarify whether the effective date
of an automatic allocation is changed if
the transfer is reported on a late filed
Federal gift tax return. For indirect skips
made after December 31, 2000, to which
section 2642(f) does not apply, the trans-
feror’s unused GST exemption is automat-
ically allocated to the property transferred.
Section 26.2632–1(b)(1)(ii) generally pro-
vides that in the case of direct skips, unless
the transferor elects out of the automatic
allocation rules, the automatic allocation
becomes irrevocable on the due date for
filing the Federal gift tax return, and the
allocation is effective as of the date of the
transfer. Thus, even if the Federal gift tax
return reporting the transfer is filed late,
or no Federal gift tax return is filed, the
automatic allocation nevertheless is irre-
vocable on the due date of that return and
takes effect as of the date of the transfer.
The final regulations clarify that the same
rules apply in the case of an automatic
allocationtoanindirect skip under section
2632(c). The automatic allocation is ef-
fective as of the date of the transfer, and
becomes irrevocable on the due date for
filing the Form 709 for the calendar year
in which the transfer is made, whether or
not a gift tax return is filed reporting the
transfer.
Commentators suggested that, if a
transferor makes an indirect skip and af-
firmatively allocates GST exemption in
an amount that is less than the value of
the property transferred, the transaction
should be treated as an allocation of the
amount that was affirmatively allocated
and an election out of the automatic allo-
cation rules for the value of the property
not covered by the exemption amount af-
firmatively allocated. Treasury and the
IRS agree with the commentators that
this treatment would give effect to the
transferor’s most likely intent to limit the
allocation of exemption to the amount that
was affirmatively allocated. Accordingly,
under the final regulations, an affirmative
partial allocation of GST exemption is
treated as an election out of the automatic
allocation rules with regard to the balance
of that specific transfer.
In response to comments, the rules re-
gardingtheautomaticallocationtoanindi-
rect skip subject to an estate tax inclusion
period (ETIP) have been revised in con-
formance with section 2632(c)(4) to pro-
vide that the automatic allocation to a di-
rect skip or an indirect skip is deemed to
be made at the close of the ETIP. There-
fore, under the final regulations, a trans-
feror may elect out of the automatic alloca-
tion rules for transfers subject to an ETIP
that are either direct skips or indirect skips
at any time prior to the due date of the Fed-
eral gift tax return for the calendar year
during which the ETIP closes. Thus, trans-
ferors may elect out of the automatic allo-
cation rules on the gift tax return report-
ing the transfer to the trust, or on a gift
tax return filed for any calendar year sub-
sequent to the year of the transfer up to
and including the calendar year in which
the ETIP closes. It should be noted that
an election out of the automatic allocation
for “all current transfers” or for “all trans-
fers in the current year” includes an elec-
tion out for a transfer subject to an ETIP
that was made during that year, but an elec-
tion out of the automatic allocation rules
for“allfuturetransfers”toatrustwillnot
apply with respect to any previous trans-
fer to a trust subject to an ETIP that is
to close in the future. To apply the elec-
tion out to prior-year transfers that are sub-
ject to an ETIP, the election out statement
must specifically describe the prior-year
transfers to be covered by the election out,
state that those transfers are subject to an
ETIP, and state that the transferor wishes
to elect out of the automatic allocation to
those prior-year transfers. Except in that
limited circumstance, the final regulations
provide that an election out does not apply
to any prior-year transfer to a trust, includ-
ing a transfer subject to an ETIP, even if
the ETIP closes after the election has been
made. It should be noted also that, once
an affirmative allocation of GST exemp-
tion has been made (including to a transfer
subject to an ETIP), the allocation may not
be revoked.
One commentator recommended that
transferors who made indirect skips after
December 31, 2000, and before the pro-
posed regulations become final, should
be allowed to elect out of the automatic
allocation rules on orbefore April 15th of
the calendar year after the year in which
the final regulations are published. The
Treasury Department and the IRS believe,
however, that this extension of the time to
elect out of the automatic allocation rules
is unnecessary. Notice 2001–50, 2001–2
C.B. 189, (see §601.601(d)(2)(ii)(b)of
this chapter) alerted transferors that reg-
ulations would provide that an election
under section 2632(c)(5) is to be made on
a timely filed Federal gift tax return re-
porting the transfer. Further, the preamble
to the proposed regulations provided that
any election made on or before the date
of publication of the proposed regulations
will be recognized if the election was made
on a timely filed Federal gift tax return in
a manner that provided adequate notice to
the Commissioner that the transferor made
the election. Accordingly, this suggestion
was not adopted.
Commentators suggested that the reg-
ulations include an example addressing
the application of the automatic allocation
rules for indirect skips in a situation in
which a trust subject to an ETIP termi-
nates upon the expiration of the ETIP, at
which time the trust assets are distributed
to other trusts that may be GST trusts. The
Treasury Department and the IRS believe,
however, that this issue is outside the
August 1, 20051582005–31 I.R.B.

scope of this regulation, and will consider
whether to address the issue in separate
guidance.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It has also been deter-
mined that section 553(b) of the Admin-
istrative Procedure Act (5 U.S.C. chapter
5) does not apply to these regulations, and,
because these regulations do not impose
on small entities, a collection of informa-
tion requirement, the Regulatory Flexibil-
ity Act (5 U.S.C. chapter 6), does not ap-
ply. Therefore, a Regulatory Flexibility
Analysis is not required. Pursuant to sec-
tion 7805(f) of the Internal Revenue Code,
the Notice of Proposed Rulemaking pre-
ceding these regulations was submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on their impact on small business.
Drafting Information
The principal author of these final regu-
lations is Mayer R. Samuels, Office of the
Associate Chief Counsel (Passthroughs
and Special Industries). However, other
personnel from the IRS and the Treasury
Department also participated in their de-
velopment.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 26 and 602
are amended as follows:
PART 26—GENERATION-SKIPPING
TRANSFER TAX REGULATIONS
UNDER THE TAX REFORM ACT OF
1986
Paragraph 1. The authority citation for
part 26 continues to read, in part, as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. In §26.2600–1, the entries for
§26.2632–1 are amended by revising the
entry for paragraph (b)(2) and adding en-
tries for paragraphs (b)(3), (b)(4) and (e)
to read as follows:
§26.2600–1 Table of contents.
*****
§26.2632–1 Allocation of GST exemption.
*****
(b) * * *
(2) Automatic allocation to indirect
skips made after December 31, 2000.
(3) Election to treat trust as GST trust.
(4) Allocation to other transfers.
*****
(e) Effective date.
*****
Par. 3. Section 26.2632–1 is amended
as follows:
1. Paragraph (b)(2) is redesignated as
paragraph (b)(4).
2. Paragraphs (b)(2) and (b)(3) are
added.
3. In newly designated paragraph
(b)(4)(i), the third sentence is revised.
4. In newly designated paragraph
(b)(4)(ii)(A)(1), the fourth sentence is re-
vised.
5. In newly designated paragraph
(b)(4)(ii)(B):
a.All references to paragraph
“(b)(2)(ii)(A)(1)(i)” are removed and
“(b)(4)(ii)(A)(1)(i)” is added in its place.
b.All references to paragraph
“(b)(2)(ii)(A)(1)(ii)” are removed and
“(b)(4)(ii)(A)(1)(ii)” is added in its place.
c.All references to paragraph
“(b)(2)(ii)(A)(1)(iii)” are removed and
“(b)(4)(ii)(A)(1)(iii)” is added in its place.
6.Examples 1through5in newly des-
ignated paragraph (b)(4)(iii) are revised.
7.Example 6in newly designated para-
graph (b)(4)(iii) is added.
8. Paragraph (b)(4)(iv) is added.
9. Paragraph (c)(1) is redesignated as
paragraph (c)(1)(i) and revised.
10. Paragraphs (c)(1)(ii) and (c)(1)(iii)
are added.
11.Example 5in paragraph (c)(5) is
added.
12. In paragraph (d)(1), the fourth sen-
tence is revised.
13. Paragraph (e) is added.
The additions and revisions read as fol-
lows:
§26.2632–1 Allocation of GST exemption.
*****
(b) * * *
(2)Automatic allocation to indirect
skips made after December 31, 2000—(i)
In general. An indirect skip is a transfer
of property to a GST trust as defined in
section 2632(c)(3)(B) provided that the
transfer is subject to gift tax and does
not qualify as a direct skip. In the case
of an indirect skip made after December
31, 2000, to which section 2642(f) (re-
lating to transfers subject to an estate tax
inclusion period (ETIP)) does not apply,
the transferor’s unused GST exemption
is automatically allocated to the property
transferred (but not in excess of the fair
market value of the property on the date
of the transfer). The automatic alloca-
tion pursuant to this paragraph is effective
whether or not a Form 709 is filed report-
ing the transfer, and is effective as of the
date of the transfer to which it relates. An
automatic allocation is irrevocable after
the due date of the Form 709 for the calen-
dar year in which the transfer is made. In
the case of an indirect skip to which sec-
tion 2642(f) does apply, the indirect skip
is deemed to be made at the close of the
ETIP and the GST exemption is deemed
to be allocated at that time. In either case,
except as otherwise provided in paragraph
(b)(2)(ii) of this section, the automatic
allocation of exemption applies even if
an allocation of exemption is made to the
indirect skip in accordance with section
2632(a).
(ii)Prevention of automatic allocation.
Except as otherwise provided in forms or
other guidance published by the Service,
the transferor may prevent the automatic
allocation of GST exemption with regard
to an indirect skip (including indirect skips
to which section 2642(f) may apply) by
making an election, as provided in para-
graph (b)(2)(iii) of this section. Notwith-
standing paragraph (b)(2)(iii)(B) of this
section, the transferor may also prevent
the automatic allocation of GST exemp-
tion with regard to an indirect skip by
making an affirmative allocation of GST
exemption on a Form 709 filed at any
time on or before the due date for timely
filing (within the meaning of paragraph
(b)(1)(ii) of this section) of an amount that
is less than (but not equal to) the value of
the property transferred as reported on that
return, in accordance with the provisions
of paragraph (b)(4) of this section. See
2005–31 I.R.B.159August 1, 2005

paragraph (b)(4)(iii)Example 6of this
section. Any election out of the automatic
allocation rules under this section has no
effect on the application of the automatic
allocation rules applicable after the trans-
feror’s death under section 2632(e) and
paragraph (d) of this section.
(iii)Election to have automatic alloca-
tion rules not apply—(A)In general.A
transferor may prevent the automatic allo-
cation of GST exemption (elect out) with
respect to any transfer or transfers consti-
tuting an indirect skip made to a trust or to
one or more separate shares that are treated
as separate trusts under §26.2654–1(a)(1)
(collectively referred to hereinafter as a
trust). In the case of a transfer treated
under section 2513 as made one-half by
the transferor and one-half by the trans-
feror’s spouse, each spouse shall be treated
as a separate transferor who must satisfy
separately the requirements of paragraph
(b)(2)(iii)(B) to elect out with respect to
the transfer. A transferor may elect out
with respect to—
(1) One or more prior-year transfers
subject to section 2642(f) (regarding
ETIPs) made by the transferor to a speci-
fied trust or trusts;
(2) One or more (or all) current-year
transfers made by thetransferor to a spec-
ified trust or trusts;
(3) One or more (or all) future transfers
made by the transferor to a specified trust
or trusts;
(4) All future transfers made by the
transferor to all trusts (whether or not in
existence at the time of the election out);
or
(5) Any combination of paragraphs
(b)(2)(iii)(A)(1) through (4)ofthissec-
tion.
(B)Manner of making an election out.
Except as otherwise provided in forms or
other guidance published by the IRS, an
election out is made as described in this
paragraph (b)(2)(iii)(B). To elect out, the
transferor must attacha statement (election
out statement) to a Form 709 filed within
thetimeperiodprovidedinparagraph
(b)(2)(iii)(C) of this section (whether or
not any transfer was made in the calendar
year for which the Form 709 was filed,
and whether or not a Form 709 otherwise
would be required to be filed for that year).
See paragraph (b)(4)(iv)Example 1of this
section. The election out statement must
identify the trust (except for an election
out under paragraph (b)(2)(iii)(A)(4)of
this section), and specifically must pro-
vide that the transferor is electing out of
the automatic allocation of GST exemp-
tion with respect to the described transfer
or transfers. Prior-year transfers that are
subject to section 2642(f), and to which
the election out is to apply, must be specif-
ically described or otherwise identified in
the election out statement. Further, unless
the election out is made for all transfers
made to the trust in the current year and/or
in all future years, the current-year trans-
fers and/or future transfers to which the
election out is to apply must be specifi-
cally described or otherwise identified in
the election out statement.
(C)Time for making an election out.To
elect out, the Form 709 with the attached
election out statement must be filed on or
before the due date for timely filing (within
the meaning of paragraph (b)(1)(ii) of this
section) of the Form 709 for the calendar
year in which—
(1) For a transfer subject to section
2642(f), the ETIP closes; or
(2) For all other elections out, the first
transfer to be covered by the election out
was made.
(D)Effect of election out. An election
out does not affect the automatic allocation
of GST exemption to any transfer not cov-
ered by the electionout statement. Except
for elections out for transfers described in
paragraph (b)(2)(iii)(A)(1) of this section
that are specifically described in an elec-
tion out statement, an election out does
not apply to any prior-year transfer to a
trust, including anytransfer subject to an
ETIP (even if the ETIP closes after the
election is made). An election out does
not prevent the transferor from allocating
the transferor’s available GST exemption
to any transfer covered by the election out,
either on a timely filed Form 709 reporting
the transfer or at a later date in accordance
with the provisions of paragraph (b)(4) of
this section. An election out with respect
to future transfers remains in effect unless
and until terminated. Once an election out
with respect to future transfers is made, a
transferor need not fileaForm709infu-
ture years solely to prevent the automatic
allocation of the GST exemption to any fu-
ture transfer covered by the election out.
(E)Termination of election out. Except
as otherwise provided in forms or other
guidance published by the IRS, an elec-
tion out may be terminated as described
in this paragraph (b)(2)(iii)(E). Pursuant to
this section, a transferor may terminate an
election out made on a Form 709 for a prior
year, to the extent that election out applied
to future transfers or to a transfer subject to
section 2642(f). To terminate an election
out, the transferor must attach a statement
(termination statement) to a Form 709 filed
on or before the due date of the Form 709
for the calendar year in which is made the
first transfer to which the election out is
not to apply (whether or not any transfer
was made in the calendar year for which
the Form 709 was filed, and whether or
not a Form 709 otherwise would be re-
quired to be filed for that year). The termi-
nation statement must identify the trust (if
applicable), describe the prior election out
that is being terminated, specifically pro-
vide that the prior election out is being ter-
minated, and either describe the extent to
which the prior election out is being ter-
minated or describe any current-year trans-
fers to which the election out is not to ap-
ply. Consequently, the automatic alloca-
tion rules contained in section 2632(c)(1)
will apply to any current-year transfer de-
scribed on the termination statement and,
except as otherwise provided in this para-
graph, to all future transfers that otherwise
would have been covered by the election
out. The termination of an election out
does not affect any transfer, or any elec-
tion out, that is not described in the ter-
mination statement. The termination of
an election out will not revoke the elec-
tion out for any prior-year transfer, except
for a prior-year transfer subject to section
2642(f) for which the election out is re-
voked on a timely filed Form 709 for the
calendar year in which the ETIP closes or
for any prior calendar year. The termina-
tion of an election out does not preclude
the transferor from making another elec-
tion out in the same or any subsequent year.
(3)ElectiontotreattrustasaGST
trust—(i)In general. A transferor may
elect to treat any trust as a GST trust (GST
trust election), without regard to whether
the trust is subject to section 2642(f), with
respect to—
(A) Any current-year transfer (or any or
all current-year transfers) by the electing
transferor to the trust;
(B) Any selected future transfers by the
electing transferor to the trust;
August 1, 20051602005–31 I.R.B.

(C) All future transfers by the electing
transferor to the trust; or
(D) Any combination of paragraphs
(b)(3)(i)(A) through (C) of this section.
(ii)Time and Manner of making GST
trust election. Except as otherwise pro-
vided in forms or other guidance published
by the Internal Revenue Service, a GST
trust election is made as described in this
paragraph (b)(3)(ii). To make a GST trust
election, the transferor must attach a state-
ment (GST trust election statement) to a
Form 709 filed on or before the due date
for timely filing (within the meaning of
paragraph (b)(1)(ii) of this section) of the
Form 709 for the calendar year in which
the first transfer to be covered by the GST
trust election is made (whether or not any
transfer was made in the calendar year for
which the Form 709 was filed, and whether
or not a Form 709 otherwise would be
required to be filed for that year). The
GST trust election statement must identify
the trust, specifically describe or otherwise
clearly identify the transfers to be covered
by the election, and specifically provide
that the transferor is electing to have the
trust treated as a GST trust with respect to
the covered transfers.
(iii)Effect of GST trust election. Except
as otherwise provided in this paragraph,
a GST trust election will cause all trans-
fers made by the electing transferor to
the trust that are subject to the election to
be deemed to be made to a GST trust as
defined in section 2632(c)(3)(B). Thus,
the electing transferor’s unused GST ex-
emption may be allocated automatically
to such transfers in accordance with para-
graph (b)(2) of this section. A transferor
may prevent the automatic allocation of
GST exemption to future transfers to the
trust either by terminating the GST trust
election in accordance with paragraph
(b)(3)(iv) of this section (in the case of
trusts that would not otherwise be treated
as GST trusts) or by electing out of the
automatic allocation of GST exemption in
accordance with paragraph (b)(2) of this
section.
(iv)Termination of GST trust election.
Except as otherwise provided in forms or
other guidance published by the Service,
a GST trust election may be terminated as
described in this paragraph (b)(3)(iv). A
transferor may terminate a GST trust elec-
tion made on a Form 709 for a prior year,
to the extent that election applied to future
transfers or to a transfer subject to section
2642(f). To terminate a GST trust elec-
tion, the transferor must attach a statement
(termination statement) to a Form 709 filed
on or before the due date for timely filing
(within the meaning of paragraph (b)(1)(ii)
of this section) a Form 709 for the calendar
year: in which is made the electing trans-
feror’s first transfer to which the GST trust
election is not to apply; or that is the first
calendar year for which the GST trust elec-
tion is not to apply, even if no transfer is
made to the trust during that year. The ter-
mination statement must identify the trust,
describe the current-year transfer (if any),
and provide that the prior GST trust elec-
tion is terminated. Accordingly, if the trust
otherwise does not satisfy the definition of
a GST trust, the automatic allocation rules
contained in section 2632(c)(1) will not
apply to the described current-year trans-
fer or to any future transfers made by the
transferor to the trust, unless and until an-
other election under this paragraph (b)(3)
is made.
(4) * * *(i) * * * See paragraph (b)(4)(ii)
of this section. * * *
(ii)***(A)***(1) * * * For purposes
of this paragraph (b)(4)(ii), the Form 709 is
deemed filed on the date it is postmarked
to the Internal Revenue Service address as
directed in forms or other guidance pub-
lished by the Service. * * *
*****
(iii)Examples. The following examples
illustrate the provisions of this paragraph
(b):
Example 1.Modification of allocation of GST
exemption. On December 1, 2003, T transfers
$100,000 to an irrevocable GST trust described in
section 2632(c)(3)(B). The transfer to the trust is
not a direct skip. The date prescribed for filing the
gift tax return reporting the taxable gift is April 15,
2004. On February 10, 2004, T files a Form 709
on which T properly elects out of the automatic
allocation rules contained in section 2632(c)(1) with
respect to the transfer in accordance with paragraph
(b)(2)(iii) of this section, and allocates $50,000 of
GST exemption to the trust. On April 13th of the
same year, T files an additional Form 709 on which T
confirms the election out of the automatic allocation
rules contained in section 2632(c)(1) and allocates
$100,000 of GST exemption to the trust in a manner
that clearly indicates the intention to modify and su-
persede the prior allocation with respect to the 2003
transfer. The allocation made on the April 13 return
supersedes the prior allocation because it is made on
a timely-filed Form 709 that clearly identifies the
trust and the nature and extent of the modification
of GST exemption allocation. The allocation of
$100,000 of GST exemption to the trust is effective
as of December 1, 2003. The result would be the
same if the amended Form 709 decreased the amount
of the GST exemption allocated to the trust.
Example 2.Modification of allocation of GST ex-
emption. The facts are the same as inExample 1ex-
cept, on July 8, 2004, T files a Form 709 attempting to
reduce the earlier allocation. The return filed on July
8, 2004, is not a timely filed return. The $100,000
GST exemption allocated to the trust, as amended on
April 13, 2004, remains in effect because an alloca-
tion, once made, is irrevocable and may not be mod-
ified after the last date on which a timely filed Form
709 may be filed.
Example 3.Effective date of late allocation of
GST exemption. On November 15, 2003, T trans-
fers $100,000 to an irrevocable GST trust described
in section 2632(c)(3)(B). The transfer to the trust is
not a direct skip. The date prescribed for filing the
gift tax return reporting the taxable gift is April 15,
2004. On February 10, 2004, T files a Form 709 on
which T properly elects out of the automatic alloca-
tion rules contained in section 2632(c)(1) in accor-
dance with paragraph (b)(2)(iii) of this section with
respect to that transfer. On December 1, 2004, T files
a Form 709 and allocates $50,000 to the trust. The
allocation is effective as of December 1, 2004.
Example 4.Effective date of late allocation of
GST exemption. T transfers $100,000 to an irrevoca-
ble GST trust on December 1, 2003, in a transfer that
is not a direct skip. On April 15, 2004, T files a Form
709 on which T properly elects out of the automatic
allocation rules contained in section 2632(c)(1) with
respect to the entire transfer in accordance with para-
graph (b)(2)(iii) of this section and T does not make
an allocation of any GST exemption on the Form 709.
On September 1, 2004, the trustee makes a taxable
distribution from the trust to T’s grandchild in the
amount of $30,000. Immediately prior to the distri-
bution, the value of the trust assets was $150,000. On
the same date, T allocates GST exemption to the trust
in the amount of $50,000. The allocation of GST ex-
emption on the date of the transfer is treated as pre-
ceding in point of time the taxable distribution. At
the time of the GST, the trust has an inclusion ratio of
.6667 (1 - (50,000/150,000)).
Example 5.Automatic allocation to split-gift.On
December 1, 2003, T transfers $50,000 to an irrevo-
cable GST Trust described in section 2632(c)(3)(B).
The transfer to the trust is not a direct skip. On April
30, 2004, T and T’s spouse, S, each files an initial gift
tax return for 2003, on which they consent, pursuant
to section 2513, to have the gift treated as if one-half
had been made by each. In spite of being made on a
late-filed gift tax return for 2003, the election under
section 2513 is valid because neither spouse had filed
a timely gift tax return for that year. Previously, nei-
ther T nor S filed a timely gift tax return electing out
of the automatic allocation rules contained in section
2632(c)(1). As a result of the election under section
2513, which is retroactive to the date of T’s transfer,
T and S are each treated as the transferor of one-half
of the property transferred in the indirect skip. Thus,
$25,000 of T’s unused GST exemption and $25,000
of S’s unused GST exemption is automatically allo-
cated to the trust. Both allocations are effective on
andafterthedatethatTmadethetransfer. There-
sult would be the same if T’s transfer constituted a
direct skip subject to the automatic allocation rules
contained in section 2632(b).
2005–31 I.R.B.161August 1, 2005

Example 6.Partial allocation of GST exemp-
tion. On December 1, 2003, T transfers $100,000
to an irrevocable GST trust described in section
2632(c)(3)(B). The transfer to the trust is not a direct
skip. The date prescribed for filing the gift tax return
reporting the taxable gift is April 15, 2004. On
February 10, 2004, T files a Form 709 on which T
allocates $40,000 of GST exemption to the trust. By
filing a timely Form 709 on which a partial allocation
is made of $40,000, T effectively elected out of the
automatic allocation rules for the remaining value
of the transfer for which T did not allocate GST
exemption.
(iv)Example. The following exam-
ple illustrates language that may be used
in the statement required under paragraph
(b)(2)(iii) of this section to elect out of
the automatic allocation rules under vari-
ous scenarios:
Example 1. On March 1, 2006, T transfers
$100,000 to Trust B, a GST trust described in sec-
tion 2632(c)(3)(B). Subsequently, on September 15,
2006, T transfers an additional $75,000 to Trust B.
No other transfers are made to Trust B in 2006. T
attaches an election out statement to a timely filed
Form 709 for calendar year 2006. Except with re-
gard to paragraph (v) of thisExample 1, the election
out statement identifies Trust B as required under
paragraph (b)(2)(iii)(B) of this section, and contains
the following alternative election statements:
(i) “T hereby elects that the automatic allocation
rules will not apply to the $100,000 transferred to
Trust B on March 1, 2006.” The election out of the
automatic allocation rules will be effective only for
T’s March 1, 2006, transfer and will not apply to T’s
$75,000 transfer made on September 15, 2006.
(ii) “T hereby elects that the automatic alloca-
tion rules will not apply to any transfers to Trust B
in 2006.” The election out of the automatic alloca-
tion rules will be effective for T’s transfers to Trust B
made on March 1, 2006, and September 15, 2006.
(iii) “T hereby elects that the automatic allocation
rules will not apply to any transfers to Trust B made
by T in 2006 or to any additional transfers T may
make to Trust B in subsequent years.” The election
out of the automatic allocation rules will be effective
for T’s transfers to Trust B in 2006 and for all future
transfers to be made by T to Trust B, unless and until
T terminates the election out of the automatic alloca-
tion rules.
(iv) “T hereby elects that the automatic allocation
rules will not apply to any transfers T has made or will
make to Trust B in the years 2006 through 2008.” The
election out of the automatic allocation rules will be
effective for T’s transfers to Trust B in 2006 through
2008. T’s transfers to Trust B after 2008 will be sub-
ject to the automatic allocation rules, unless T elects
out of those rules for one or more years after 2008.
T may terminate the election out of the automatic al-
location rules for 2007, 2008, or both in accordance
with the termination rules of paragraph (b)(2)(iii)(E)
of this section. T may terminate the election out for
one or more of the transfers made in 2006 only on a
later but still timely filed Form 709 for calendar year
2006.
(v) “T hereby elects that the automatic allocation
rules will not apply to any current or future transfer
that T may make to any trust.” The election out of the
automatic allocation rules will be effective for all of
T’s transfers (current-year and future) to Trust B and
to any and all other trusts (whether such trusts exist in
2006 or are created in a lateryear), unless and until T
terminates the election out of the automatic allocation
rules. T may terminate the election out with regard to
one or more (or all) of the transfers covered by the
election out in accordance with the termination rules
of paragraph (b)(2)(iii)(E) of this section.
(c)Special rules during an estate tax
inclusion period—(1)In general—(i)Au-
tomatic allocations with respect to direct
skips and indirect skips. A direct skip or an
indirect skip that is subject to an estate tax
inclusion period (ETIP) is deemed to have
been made only at the close of the ETIP.
The transferor may prevent the automatic
allocation of GST exemption to a direct
skip or an indirect skip by electing out of
the automatic allocation rules at any time
prior to the due date of the Form 709 for
the calendar year in which the close of the
ETIP occurs (whether or not any transfer
was made in the calendar year for which
the Form 709 was filed, and whether or not
a Form 709 otherwise would be required
to be filed for that year). See paragraph
(b)(2)(i) of this section regarding the auto-
matic allocation of GST exemption to an
indirect skip subject to an ETIP.
(ii)Other allocations. An affirmative
allocation of GST exemption cannot be re-
voked, but becomes effective as of (and no
earlier than) the date of the close of the
ETIP with respect to the trust. If an allo-
cation has not been made prior to the close
of the ETIP, an allocation of exemption is
effective as of the close of the ETIP dur-
ing the transferor’s lifetime if made by the
due date for filing the Form 709 for the cal-
endar year in which the close of the ETIP
occurs (timely ETIP return). An allocation
of exemption is effective in the case of the
close of the ETIP by reason of the death of
the transferor as provided in paragraph (d)
of this section.
(iii)Portion of trust subject to ETIP.If
any part of a trust is subject to an ETIP,
the entire trust is subject to the ETIP. See
§26.2642–1(b)(2) for rules determining
the inclusion ratio applicable in the case
of GSTs during an ETIP.
*****
(5) * * *
Example 5.Election out of automatic allocation
of GST exemption for trust subject to an ETIP.OnDe-
cember 1, 2003, T transfers $100,000 to Trust A, an
irrevocable GST trust described in section 2632(c)(3)
that is subject to an estate tax inclusion period (ETIP).
T made no other gifts in 2003. The ETIP terminates
on December 31, 2008. T timely files a gift tax return
(Form 709) reporting the gift on April 15, 2004. On
May 15, 2006, T files a Form 709 on which T properly
elects out of the automatic allocation rules contained
in section 2632(c)(1) with respect to the December
1, 2003, transfer to Trust A in accordance with para-
graph (b)(2)(iii) of this section. Because the indirect
skip is not deemed to occur until December 31, 2008,
T’s election out of automatic GST allocation filed on
May 15, 2006, is timely, and will be effective as of
December 31, 2008 (unless revoked on a Form 709
filed on or before the due date of a Form 709 for cal-
endar year 2008).
(d)***(1)***Alateallocationof
GST exemption by an executor, other than
an allocation that is deemed to be made
under section 2632(b)(1) or (c)(1), with
respect to a lifetime transfer of property is
made on Form 706, Form 706NA, or Form
709 (filed on or before the due date of the
transferor’s estate tax return) and applies
as of the date the allocation is filed. * * *
*****
(e)Effective dates. Thissectionisap-
plicable as provided in §26.2601–1(c),
with the following exceptions:
(1) Paragraphs (b)(2) and (b)(3), the
third sentence of paragraph (b)(4)(i),
the fourth sentence of paragraph
(b)(4)(ii)(A)(1), paragraphs (b)(4)(iii)
and (b)(4)(iv), and the fourth sentence of
paragraph (d)(1) of this section, which will
apply to elections made on or after July
13, 2004; and
(2) Paragraph (c)(1), andExample 5of
paragraph (c)(5), which will apply to elec-
tions made on or after June 29, 2005.
PART 602—OMB CONTROL
NUMBERS UNDER THE PAPERWORK
REDUCTION ACT
Par. 4. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 5. In §602.101, paragraph (b) is
amended by adding an entry in numerical
order to the table to read as follows:
§602.101 OMB Control numbers.
*****
(b) * * *
August 1, 20051622005–31 I.R.B.

CFR part or section where
identified and described
Current OMB
control No.
*****
26.2632–1........................................................... 1545–1892
*****
Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.
Approved June 21, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary
for Tax Policy.
(Filed by the Office of the Federal Register on June 28, 2005,
8:45 a.m., and published in the issue of the Federal Register
for June 29, 2005, 70 F.R. 37258)
Section 6213.—Restrictions
Applicable to Deficiencies;
Petition to Tax Court
Mathematical or clerical error sum-
mary assessment procedures.This rul-
ing clarifies whether the mathematical or
clerical error assessment procedures of
section 6213(b) of the Code apply when a
taxpayer files an income tax return that re-
ports income in an amount different from
that reported on a W-2.
Rev. Rul. 2005–51
ISSUE
Whether the mathematical or clerical
error summary assessment procedures of
section 6213(b) of the Internal Revenue
Code apply when a taxpayer files an in-
come tax return that reports income in an
amount different from that reported on a
Form W–2,Wage and Tax Statement,at-
tached to the return.
FACTS
Situation 1.
T, a single individual, filed a Form
1040,U.S. Individual Income Tax Return,
for 2003. The return reported wages of
$18,000 on the appropriate line. No other
income was reported. The only deductions
claimed by T were the standard deduction
under section 63 of $4,750 and the deduc-
tion for personal exemption under section
151 of $3,050. The return reported tax-
able income of $10,200 and a tax liability
of $1,184. T claimed federal income tax
withheld in the amount of $2,000 and a
refund due of $816.
T attached to the Form 1040 return a
Form W–2,Wage and Tax Statement,is-
sued by T’s employer. The Form W–2 re-
ported wages of $25,000 and federal in-
come tax withheld of $2,000. T also at-
tached a statement saying that he received
only $18,000 in wages during 2003, not
the $25,000 reported on the Form W–2.
If T’s correct wage income was the entire
$25,000 during 2003, T’s correct income
tax liability was $2,234 and, after taking
into account the federal income tax with-
held, $234 of tax was unpaid.
Situation 2.
T, a single individual, filed a Form
1040,U.S. Individual Income Tax Return,
for 2003. The return reported wages of
$50,000 on the appropriate line. No other
income was reported. The only deductions
claimed by T were the standard deduction
of $4,750 and the deduction for personal
exemption of $3,050. The return reported
taxable income of $42,200 and a tax lia-
bility of $7,366. T claimed federal income
tax withheld in the amount of $8,000 and
a refund due of $634.
T attached to the return three Forms
W–2,Wage and Tax Statement, issued by
T’s employers. The Forms W–2 reported
wages totaling $55,000 and federal income
tax withheld totaling $8,000. One of the
Forms W–2 reported wages of $5,000 and
federal income tax withheld of $500; T
did not attach a statement to the return ex-
plaining the discrepancy between the to-
tal wages reported on T’s Form 1040 re-
turn and the total wages reported on the
attached Forms W–2. If T’s correct wage
income for 2003 was $55,000, T’s correct
income tax liability was $8,616 and, after
taking into account the federal income tax
withheld, $616 of tax was unpaid.
LAW AND ANALYSIS
Section 6201(a)(1) authorizes the Sec-
retary to assess all taxes determined by
a taxpayer for which a return was made.
In both Situation 1 and Situation 2, there
is a discrepancy between the amounts re-
ported on the face of the Form 1040 returns
and the amounts reported on the attached
Forms W–2. If the Forms W–2 are correct,
the correct tax exceeds the tax shown on
the returns, and there is a deficiency.See
I.R.C. § 6211. If the Secretary determines
a deficiency based on the information on
the Forms W–2 and sends a notice of defi-
ciency to T pursuant to section 6212, sec-
tion 6213(a) prohibits the Secretary from
assessing the deficiency until the period to
petition that notice to the Tax Court expires
or, if T files a petition, until the Tax Court’s
decision becomes final. The restrictions of
section 6213(a) do not apply, however, in
the case of mathematical or clerical errors
appearing on the return, when the Secre-
tary may summarily assess the additional
tax due without mailing a notice of defi-
ciency. I.R.C. § 6213(b)(1).
Section 6213(g)(2) defines “mathemat-
ical or clerical error” by reference to 13
enumerated situations. Those situations
include “an entry on a return of an item
which is inconsistent with another entry
of the same or another item on such re-
turn.” I.R.C. § 6213(g)(2)(C). The Tax Re-
form Act of 1976, Pub. L. No. 94–455,
§ 1206, 90 Stat. 1520 (1976) (the Act),
clarified the situations in which the Secre-
tary may use the summary assessment au-
thority of section 6213(b) for mathemati-
cal or clerical errors arising from inconsis-
tencies. The legislative history of the Act
states that the exception for inconsistent
entries applies only “where it is apparent
which of the inconsistent entries is correct
and which is incorrect.” S. Rep. No. 938,
94th Cong., 2d Sess., 376 (1976), 1976–3
(Vol. 3) C.B. 49, 414.
2005–31 I.R.B.163August 1, 2005

Under the facts described in Situation 1
and Situation 2, it is not apparent whether
the amount reported by the taxpayer on
the face of the return or the amount re-
ported on the Form W–2 is correct. In Sit-
uation 1, T’s attachment explains the dis-
crepancy between the return and the Form
W–2, thereby making clear that T disputes
the correctness of the Form W–2. In Sit-
uation 2, no attachment or comment ex-
plains the discrepancy between the return
and the Forms W–2; while it is possible
that T made a mathematical or clerical er-
ror by failing to include information from
one of the three attached Forms W–2, it is
also possible that T disputes the informa-
tion on that form.
In the case of a discrepancy between the
income reported by a taxpayer on an in-
come tax return and the income reported
on a Form W–2 attached to the return, it is
not apparent which entry is correct. There-
fore, the Internal Revenue Service may not
use the summary assessment procedures
of section 6213(b). Instead, the Service
must follow the deficiency procedures pre-
scribed by sections 6212 and 6213(a).
HOLDING(S)
Situation 1.
The Service may not use the summary
assessment proceduresof section 6213(b)
if T filed a Form 1040 return reporting an
amount of wages and a tax liability, but
attached a Form W–2 reflecting payment
of a different amount of wages. In the
circumstances described, the Service must
issue a notice of deficiency under section
6212(a).
Situation 2.
The Service may not use the summary
assessment proceduresof section 6213(b)
if the taxpayer filed a Form 1040 return
reporting wages from several Forms W–2
and a tax liability, but also attaches a Form
W–2 reflecting payment of wages that ap-
pear not to be reported on the Form 1040
return. In the circumstances described, the
Service must issue a notice of deficiency
under section 6212(a) if it determines a de-
ficiency in T’s income tax for 2003.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Blaise G. Dusenberry of the Office
of Associate Chief Counsel (Procedure
& Administration). For further informa-
tion regarding this revenue ruling, contact
Blaise G. Dusenberry at (202) 622–7800
(not a toll-free call).
August 1, 20051642005–31 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
NOTE:
Following is a list of related instructions and forms for filing Information Returns Electronically/Magnetically:
• General Instructions for Forms 1099, 1098, 5498, and W–2G
• Specific Instructions for Individual Information Returns
• Form 4419 — Application for Filing Information Returns Electronically/Magnetically
• Form 4804 — Transmittal of Information Returns Reported Magnetically
• Form 8508 — Request for Waiver From Filing Information Returns Magnetically
• Form 8809 — Application for Extension of Time to File Information Returns
• Notice 210 — Preparation Instructions for Media Labels
The Internal Revenue Service, Enterprise Computing Center — Martinsburg (IRS/ECC-MTB) encourages filers to make copies of
the blank forms for future use. These forms can be obtained by calling 1–800–829–3676 or on the IRS website atw
ww.irs.gov.
Use this Revenue Procedure to prepare Tax Year 2005 and prior yearinformation returns for submission to Internal Revenue Service
(IRS) using any of the following:
- Electronic Filing
- Tape Cartridge
-3
1
/2-Inch Diskettes
Caution to filers:
Please read this publication carefully. Persons or businesses required to file information returns electronically or
magnetically may be subject to penalties for failure to file or include correct information if they do not follow the
instructions in this Revenue Procedure.
IMPORTANT NOTES:
IRS/ECC-MTB now offers an Internet connection at h
ttp://fire.irs.govfor electronic filing. The Filing Information
Returns Electronically (FIRE) System will be down from Dec. 23, 2005, through Jan. 3, 2006 for upgrading. It is not
operational during thistime for submissions.
Beginning in Tax Year 2006, processing year 2007, IRS/ECC-MTB will no longer accept 3
1
/2-inch diskettes for filing
information returns.
Rev. Proc. 2005–49
TABLE OF CONTENTS
Part A. General
SEC. 1. PURPOSE................................................................................................. 167
Sec. 2. Nature of Changes — Current Year (Tax Year2005)............................................................... 168
SEC. 3. WHERE TO FILE AND HOW TO CONTACT THE IRS, ENTERPRISE COMPUTING CENTER —
MARTINSBURG
....................................................................................... 169
SEC. 4. FILING REQUIREMENTS.................................................................................. 171
2005–31 I.R.B.165August 1, 2005

SEC. 5. VENDOR LIST............................................................................................. 171
SEC. 6. FORM 4419, APPLICATION FOR FILING INFORMATION RETURNS
ELECTRONICALLY/MAGNETICALLY
.................................................................. 172
SEC. 7. TEST FILES............................................................................................... 173
SEC. 8. FILING OF INFORMATION RETURNS MAGNETICALLY AND RETENTION REQUIR
EMENTS
..
.................. 173
SEC. 9. DUE DATES............................................................................................... 174
SEC. 10. REPLACEMENT MAGNETIC MEDIA....................................................................... 175
SEC. 11. CORRECTED RETURNS................................................................................... 175
SEC. 12. EFFECT ON PAPER RETURNS AND STATEMENTS TO RECIPIENTS.......................................... 179
SEC. 13. COMBINED FEDERAL/STATE FILING PROGRAM........................................................... 179
SEC. 14. PENALTIES ASSOCIATED WITH INFORMATION RETURNS.................................................. 181
SEC. 15. STATE ABBREVIATIONS.................................................................................. 182
SEC. 16. MAJOR PROBLEMS ENCOUNTERED...................................................................... 183
Part B. Electronic Filing Specifications
SEC. 1. GENERAL................................................................................................ 184
SEC. 2. ADVANTAGES OF FILING ELECTRONICALLY............................................................... 184
SEC. 3. ELECTRONIC FILING APPROVAL PROCEDURE............................................................. 185
SEC. 4. TEST FILES............................................................................................... 185
SEC. 5. ELECTRONIC SUBMISSIONS............................................................................... 185
SEC. 6. PIN REQUIREMENTS...................................................................................... 186
SEC. 7. ELECTRONIC FILING SPECIFICATIONS.................................................................... 186
SEC. 8. CONNECTING TO THE FIRE SYSTEM....................................................................... 186
SEC. 9. COMMON PROBLEMS AND QUESTIONS ASSOCIATED WITH ELECTRONIC FILING........................... 188
Part C. Magnetic Media Specifications
SEC. 1. TAPE CARTRIDGE SPECIFICATIONS....................................................................... 189
SEC. 2. 3
1
/2-INCH DISKETTE SPECIFICATIONS..................................................................... 189
Part D. Record Format Specifications and Record Layouts
SEC. 1. GENERAL................................................................................................. 190
SEC. 2. TRANSMITTER “T” RECORD — GENERAL FIELD DESCRIPTIONS............................................ 190
SEC. 3. TRANSMITTER “T” RECORD — RECORD LAYOUT.......................................................... 193
SEC. 4. PAYER “A” RECORD — GENERAL FIELD DESCRIPTIONS.................................................... 194
SEC. 5. PAYER “A” RECORD — RECORD LAYOUT.................................................................. 203
SEC. 6. PAYEE “B” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUTS............................ 204
(1)Payee“B”Record—RecordLayoutPositions544-750forForm1098............................................. 211
(2) Payee “B” Record — Record Layout Positions 544–750 for Form 1098–C.......................................... 212
August 1, 20051662005–31 I.R.B.

(3)Payee“B”Record—RecordLayoutPositions544-750forForm1098–E.......................................... 213
(4)Payee“B”Record—RecordLayoutPositions544-750forForm1098–T.......................................... 213
(5)Payee“B”Record—RecordLayoutPositions544-750forForm1099–A.......................................... 214
(6)Payee“B”Record—RecordLayoutPositions544-750forForm1099–B.......................................... 215
(7)Payee“B”Record—RecordLayoutPositions544-750forForm1099–C.......................................... 217
(8)Payee“B”Record—RecordLayoutPositions544-750forForm1099–CAP....................................... 217
(9)Payee“B”Record—RecordLayoutPositions544-750forForm1099–DIV........................................ 218
(10)Payee“B”Record—RecordLayoutPositions544-750forForm1099–G......................................... 219
(11)Payee“B”Record—RecordLayoutPositions544-750forForm1099–H......................................... 221
(12)Payee“B”Record—RecordLayoutPositions544-750forForm1099–INT....................................... 221
(13)Payee“B”Record—RecordLayoutPositions544–750forForm1099–LTC...................................... 222
(14)Payee“B”Record—RecordLayoutPositions544–750forForm1099–MISC..................................... 224
(15)Payee“B”Record—RecordLayoutPositions544–750forForm1099–OID...................................... 225
(16)Payee“B”Record—RecordLayoutPositions544–750forForm1099–PATR..................................... 226
(17)Payee“B”Record—RecordLayoutPositions544–750forForm1099–Q ........................................ 227
(18)Payee“B”Record—RecordLayoutPositions544–750forForm1099–R......................................... 228
(19)Payee“B”Record—RecordLayoutPositions544–750forForm1099–S......................................... 232
(20)Payee“B”Record—RecordLayoutPositions544–750forForm1099–SA....................................... 234
(21)Payee“B”Record—RecordLayoutPositions544–750forForm5498........................................... 235
(22)Payee“B”Record—RecordLayoutPositions544–750forForm5498–ESA ..................................... 236
(23)Payee“B”Record—RecordLayoutPositions544–750forForm5498–SA....................................... 236
(24)Payee“B”Record—RecordLayoutPositions544–750forFormW–2G.......................................... 237
SEC. 7. END OF PAYER “C” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT.................... 239
SEC. 8. STATE TOTALS “K” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD LAYOUT..................... 240
SEC. 9. END OF TRANSMISSION “F” RECORD — GENERAL FIELD DESCRIPTIONS AND RECORD
LAYOUT
............................................................................................. 242
SEC. 10. FILE LAYOUT DIAGRAM.................................................................................. 244
Part E. Extensions of Time and Waivers
SEC. 1. GENERAL — EXTENSIONS................................................................................. 244
SEC. 2. SPECIFICATIONS FOR ELECTRONIC FILING OR MAGNETIC MEDIA EXTENSIONS OF TIME.................. 245
SEC. 3. RECORD LAYOUT — EXTENSION OF TIME................................................................. 246
SEC. 4. EXTENSION OF TIME FOR RECIPIENT COPIES OF INFORMATION RETURNS................................. 247
SEC. 5. FORM 8508, REQUEST FOR WAIVER FROM FILING INFORMATION RETURNS
MAGNETICALLY
..................................................................................... 248
Part A. General
Revenue Procedures are generally revised annually to reflect legislative and form changes. Comments concerning this Revenue
Procedure, or suggestions for making it more helpful, can be addressed to:
Internal Revenue Service
Enterprise Computing Center — Martinsburg
Attn: Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
Sec. 1. Purpose
.01The purpose of this Revenue Procedure is to provide the specifications for filing Forms 1098, 1099, 5498, and W–2G with
IRS electronically through the IRS FIRE System or magnetically, using IBM 3480, 3490, 3490E, 3590, or 3590E tape cartridges or
3
1
/2-inch diskettes. This Revenue Procedure must be used for the preparation of Tax Year2005information returns and information
2005–31 I.R.B.167August 1, 2005

returns for tax years prior to2005filed beginning January 1, 2006,and postmarked by December 1, 2006.Specifications for filing
the following forms are contained in this Revenue Procedure.
(a)Form 1098, Mortgage Interest Statement
(b)Form 1098–C, Contributions of Motor Vehicles, Boats, and Airplanes
(c)Form 1098–E, Student Loan Interest Statement
(d)Form 1098–T, Tuition Statement
(e)Form 1099–A, Acquisition or Abandonment of Secured Property
(f)Form 1099–B, Proceeds From Broker and Barter Exchange Transactions
(g)Form 1099–C, Cancellation of Debt
(h)Form 1099–CAP, Changes in Corporate Control and Capital Structure
(i)Form 1099–DIV, Dividends and Distributions
(j)Form 1099–G, Certain Government Payments
(k)Form 1099–H, Health Coverage Tax Credit (HCTC) Advance Payments
(l)Form 1099–INT, Interest Income
(m)Form 1099–LTC, Long-Term Care and Accelerated Death Benefits
(n)Form 1099–MISC, Miscellaneous Income
(o)Form 1099–OID, Original Issue Discount
(p)Form 1099–PATR, Taxable Distributions Received From Cooperatives
(q)Form 1099–Q, Payments From Qualified Education Programs (Under Sections 529 and 530)
(r)Form 1099–R, Distributions From Pensions, Annuities, Retirement or Profit–SharingPlans, IRAs, Insurance Contracts, etc.
(s)Form 1099–S, Proceeds From Real Estate Transactions
(t)Form 1099–SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
(u)Form 5498, IRA Contribution Information
(v)Form 5498–ESA, Coverdell ESA Contribution Information
(w)Form 5498–SA, HSA, Archer MSA, or Medicare Advantage MSA Information
(x)Form W–2G, Certain Gambling Winnings
.02All data received at IRS/ECC-MTB for processing will be given the same protection as individual income tax returns (Form
1040). IRS/ECC-MTB will process the data and determine if the records are formatted and coded according to this Revenue Procedure.
.03Specifications for filing Forms W–2, Wage and Tax Statements, magnetically/electronically areonlyavailable from the Social
Security Administration (SSA). Filers cancall 1–800–SSA–6270 to obtain the telephone number of the SSA Employer Service Liaison
Officer for their area.
.04IRS/ECC-MTB doesnotprocess Forms W–2. Paperand/or magnetic media for Forms W–2 must be sent to SSA. IRS/ECC-
MTB does, however, process waiver requests (Form 8508) and extension of time to file requests (Form 8809) for Forms W–2 as well
as requests for an extension of time to provide the employee copies of Forms W–2.
.05Generally, the box numbers on the paper forms correspond withthe amount codes used to file electronically/magnetically;
however, if discrepancies occur, the instructions in this Revenue Procedure govern.
.06This Revenue Procedure also provides the requirements and specifications for electronic or magnetic media filing under the
Combined Federal/State Filing Program.
.07The following Revenue Procedures and publications provide moredetailed filing procedures for certain information returns:
(a)2005 General Instructions for Forms 1099, 1098, 5498, and W–2Gand individual form instructions.
(b)Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W–2G, and 1042–S.
(c)Publication 1239, Specifications for Filing Form 8027, Employer’s Annual Information Return of Tip Income and Allocated
Tips, Magnetically/Electronically
(d)Publication 1187, Specifications for Filing Forms 1042–S, Foreign Person’s U.S. Source Income Subject to Withholding,
Electronically or Magnetically
.08This Revenue Procedure supersedes Rev. Proc. 2004–50 published as Publication 1220 (Rev. 9–2004), Specifications for
Filing Forms 1098, 1099, 5498, and W–2G Electronically or Magnetically.
Sec. 2. Nature of Changes — Current Year (Tax Year2005)
.01In this publication, all pertinent changes for Tax Year2005are emphasized by the use ofitalics. Portions of text that require
special attention are in boldface text. Filers are always encouraged to read the publication in its entirety.
August 1, 20051682005–31 I.R.B.

.02 Programming Changes
a. General
(1)The Martinsburg Computing Center was renamed the Enterprise Computing Center — Martinsburg (ECC-MTB).
(2)Corrections involving only the payee name are now a one step correction. See Part A, Sec. 11 for more information.
(3)The titles of Form 1099–SA and 5498–SA, were changed toDistributions from an HSA, Archer MSA, or Medicare Ad-
vantage MSA and HSA, Archer MSA, or Medicare AdvantageMSA Information respectively. Name of corresponding
indicators in the Payee “B” Record have also been changed.
b. Programming Changes — Transmitter “T” Record
(1)For all forms, Payment Year, Field Positions 2–5, must be incremented to update the four-digit report year (2004 to 2005),
unless reporting prior year data.
c. Programming Changes — Payer “A” Record
(1)For all forms, Payment Year, Field Positions 2–5, must be incremented to update the four-digit report year (2004 to 2005),
unless reporting prior year data.
(2)New Form 1098–C, Contributions of Motor Vehicles, Boats,and Airplanes, was added. TheTypeofReturninposition
27 is X. Amount Code 4 in position 28 is for reporting GrossProceeds From Sales. See Instructions for Form 1098–C for
details on how to report information.
(3)For Form 1099–G, Certain Government Payments, Amount Code 5, ATAA Payments was added.
(4)For Form 1099–MISC, Miscellaneous Income, Amount CodesD, Section 409A Deferrals and E, Section 409A Income,
were added.
(5)For Form 1099–PATR, Taxable Distributions Received From Cooperatives, Amount Code 6 was changed to Deduction for
Qualified Production Activities Income. Amount Code A is for reporting For Filer’s Use for Pass-Through Credits.
d. Programming Changes — Payee “B” Record
(1)For all forms, Payment Year, Field Positions 2–5, must be incremented to update the four-digit report year (2004 to 2005),
unless reporting prior year data.
(2)For Form 1098–C, Contributions of Motor Vehicles, Boats, and Airplanes, the following fields were added:
(a)Field position 546, Transaction Indicator
(b)Field position 547, Transfer After Improvements Indicator
(c)Field position 548, Transfer Below Fair Market Value Indicator
(d)Field positions 549–587, Make, Model and Year
(e)Field positions 588–612, Vehicle or Other Identification Number
(f)Field positions 613–651, Vehicle Description
(g)Field positions 652–659, Date of Contribution
(h)Field positions 663–722, Special Data Entries
(i)Field positions 723–730, Date of Sale
Sec. 3. Where To File and How to Contact the IRS, Enterprise Computing Center — Martinsburg
.01All information returns filed electronically or magnetically are processed at IRS/ECC-MTB. Files containing information re-
turns and requests for IRS electronic and magnetic media filing information should be sent to the following address:
IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430
.02All requests for an extension of time to file information returns with IRS/ECC-MTB or to the recipients, and requests for undue
hardship waivers filed on Form 8508 should be sent to the following address:
2005–31 I.R.B.169August 1, 2005

IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
.03The telephone numbers for magnetic media inquiries or electronic submissions are:
Information Reporting Program Customer Service Section
TOLL-FREE 1–866–455–7438 or outside the U.S. 1–304–263–8700
email at m
ccirp@irs.gov
304–267–3367 — TDD
(Telecommunication Device for the Deaf)
304–264–5602 — Fax Machine
Electronic Filing — FIRE system
http://fire.irs.gov
TO OBTAIN FORMS:
1–800–TAX–FORM (1–800–829–3676)
www.irs.gov — IRS Website access to forms (See Note.)
Note: Because paper forms are scanned during processing, you cannot file with the IRS Form 1096, and Copy A of Forms
1098, 1099, or 5498 that you download and print from the IRS website.
.04The2005 General Instructions for Forms 1099, 1098, 5498, and W–2Ghas been included in the Publication 1220 for your
convenience. Form 1096 is used only to transmit Copy A ofpaperForms 1099, 1098, 5498, and W–2G. If filing paper returns, follow
the mailing instructions on Form 1096 and submit the paper returns to the appropriate IRS Service Center.
.05Make requests for paper Forms 1096, 1098, 1099, 5498, and W–2G,and publications related to electronic/magnetic filing by
calling the IRS toll-free number1–800–TAX–FORM (1–800–829–3676) or on the IRS website at www.irs.gov.
.06Questions pertaining to magnetic media or internet filing of Forms W–2mustbe directed to the Social Security Administration
(SSA). Filers can call 1–800–772–6270 to obtain the phone number of the SSA Employer Service Liaison Officer for their area.
.07Payersshould notcontact IRS/ECC-MTB if they have received a penaltynotice and need additional information or are re-
questing an abatement of the penalty. A penalty notice contains an IRS representative’s name and/or telephone number for contact
purposes; or, the payer may be instructed to respond inwriting to the address provided. IRS/ECC-MTB doesnotissue penalty no-
tices and doesnothave the authority to abate penalties. For penaltyinformation, refer to the Penalties section of the2005 General
Instructions for Forms 1099, 1098, 5498, and W–2G.
.08A taxpayer or authorized representative may request a copy of a tax return, including Form W–2 filed with a return, by submitting
Form 4506, Request for Copy of Tax Return, to IRS. This form may be obtained by calling1–800–TAX–FORM (1–800–829–3676).
For any questions regarding this form, call 1–800–829–1040.
.09The Information Reporting Program Customer Service Section (IRP/CSS), located at IRS/ECC-MTB, answers electronic/mag-
netic media, paper filing, and tax law questions from the payer community relating to the correct preparation and filing of business
information returns (Forms 1096, 1098, 1099, 5498, 8027, and W–2G). IRP/CSS also answers questionsrelating to the electronic/mag-
netic media filing of Forms 1042–S and to the tax law criteria and paper filing instructions for Forms W–2 and W–3. Inquiries dealing
with backup withholding and reasonable cause requirements due to missing and incorrect taxpayer identification numbers are also
addressed by IRP/CSS. Assistance is available year-round to payers, transmitters, and employers nationwide, Monday through Friday,
8:30 a.m. to 4:30 p.m. Eastern time, by calling toll-free1–866–455–7438or via email at m
ccirp@irs.gov.Do not include SSNs or
EINs on emails since this is not a secure line.The Telecommunications Device for the Deaf(TDD)toll number is304–267–3367.
Call as soon as questions arise to avoid the busy filing seasons at the end of January and February. Recipients of information returns
(payees) should continue to contact 1–800–829–1040 with any questions on how to report the information returns data on their tax
returns.
.10IRP/CSS cannot advise filers where to send state copies of paper forms.Filers must contact the Tax Department in the state
where the recipient resides to obtain the correct address.
August 1, 20051702005–31 I.R.B.

.11Form 4419, Application for Filing Information Returns Electronically/Magnetically, Form 8809, Application for Extension of
Time to File Information Returns, and Form8508, Request for Waiver From Filing Information Returns Magnetically, may be faxed
to IRS/ECC-MTB at 304–264–5602. Form 4804, Transmittal of Information Returns Filed Magnetically,mustalways be included
with media shipments.
Sec. 4. Filing Requirements
.01The regulations under section 6011(e)(2)(A) of the Internal Revenue Code provide that any person, including a corporation,
partnership, individual, estate, and trust, who is required to file250 or more information returns must file such returns electroni-
cally/magnetically.The 250* or more requirement applies separately foreach type of return and separately to each type of
corrected return.
*Even though filers may submit up to 249 information returns onpaper, IRS encourages filers to transmit those information
returns electronically or magnetically.
.02All filing requirements that follow apply individually to each reporting entity as defined by its separate Taxpayer Identification
Number (TIN), Social Security Number (SSN),Employer Identification Number (EIN), or Individual Taxpayer Identification Number
(ITIN). For example, if a corporation with several branches or locations uses the same EIN, the corporation must aggregate the total
volume of returns to be filed for that EIN and apply thefiling requirements to eachtype of return accordingly.
.03Payers who are required to submit their information returns on magnetic media may choose to submit their documents by
electronic filing. Payers, who submit their information returns electronically by March 31,2006, are considered to have satisfied the
magnetic media filing requirements.
.04IRS/ECC-MTB has one method for filing information returns electronically; see Part B.
.05The following requirements apply separately to both originals and corrections filed electronically/magnetically:
1098
1098–C
1098–E
1098–T
1099–A
1099–B
1099–C
1099–CAP
1099–DIV
1099–G
1099–H
1099–INT
1099–LTC
1099–MISC
1099–OID
1099–PATR
1099–Q
1099–R
1099–S
1099–SA
5498
5498–ESA
5498–SA
W–2G
250ormoreofanyof these forms require magnetic media filing with IRS. Filing electronically will
also meet this requirement. These are stand–alonedocuments and are not to be aggregated for purposes
of determining the 250 threshold. For example, if you must file 100 Forms 1099–B and 300 Forms
1099–INT, Forms 1099–B need not be filed electronically or magnetically since they do not meet the
threshold of 250. However, Forms 1099–INT must be filed electronically or magnetically since they
meet the threshold of 250.
.06The above requirements do not apply if the payer establishes undue hardship (See Part E, Sec. 5).
Sec. 5. Vendor List
.01IRS/ECC-MTB prepares a list of vendors who support electronic or magnetic media filing. The Vendor List (Pub. 1582)
contains the names of service bureaus that will produce or submit files for electronic filing or on theprescribed types of magnetic
media. It also contains the names of vendors who provide software packages for payers who wishto produce electronic files or
magnetic media on their own computer systems. This list is compiled as a courtesy and in no way implies IRS/ECC-MTB approval
or endorsement.
.02If filers meeting the filing requirementsengage a service bureau to prepare media ontheir behalf, the filers should be careful
not to report duplicate data, which may cause penalty notices to be generated.
2005–31 I.R.B.171August 1, 2005

.03The Vendor List, Publication 1582, is updated periodically. Themost recent revision will be available on the IRS website at
www.irs.gov.
.04A vendor, who offers a software package, orhas the capability to electronically file information returns, or has the ability to
produce magnetic media for customers, and who would like to be included on the list must submit a letter or email to IRS/ECC-MTB.
The request should include:
(a)Company name
(b)Address (include city, state, and ZIP code)
(c)Telephone and FAX number (include area code)
(d)Email address
(e)Contact person
(f)Type(s) of service provided (e.g.,service bureau and/or software)
(g)Type(s) of media offered (e.g., tape cartridge, 3
1
/2-inch diskette, or electronic filing)
(h)Type(s) of return(s)
Sec. 6. Form 4419, Application for Filing Information Returns Elec
tronically/Magnetically
.01Transmitters are required to submit Form 4419, Application forFiling Information Returns Electronically/Magnetically, to
request authorization to file information returns with IRS/ECC-MTB. A single Form 4419 should be filed no matter how many types
of returns the transmitter will be submitting electronically/magnetically. For example, if a transmitter plans to file Forms 1099–INT,
one Form 4419 should be submitted. If, at a later date, another type of form (Forms 1098, 1099, 5498 and W–2G) is to be filed, the
transmitter does not need to submit a new Form 4419.
Note: EXCEPTIONS — An additional Form 4419 is required for filing each of the following types of returns: Form 1042–S,
Foreign Person’s U.S. Source Income Subject to Withholding and Form 8027, Employer’s Annual Information Return of Tip
Income and Allocated Tips. See the back of Form 4419 for detailed instructions.
.02Tape cartridge, diskette, and electronically filed returns may not be submitted to IRS/ECC-MTB until the application has been
approved. Please read the instructions on the back of Form 4419 carefully. Form 4419 is included in the Publication 1220 for the
filer’s use. This form may be photocopied. Additional forms may be obtained by calling1–800–TAX–FORM (1–800–829–3676).
The form is also available on the IRS website atwww.irs.gov.
.03Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned and included in an approval
letter. The TCCmustbe coded in the Transmitter “T” Record. IRS/ECC-MTB uses the TCC to identify payer/transmitters and to
track their files through the processing system. The same TCC canbe used regardless of the method of filing. For example, a payer
may send their production data on a tape cartridge and then later file a correction file electronically. The same TCC can be used for
each filing.
.04IRS/ECC-MTB encourages transmitters who file for multiple payers to submit one application and to use the assigned TCC
for all payers. While not encouraged, multiple TCCs can be issued to payers with multiple TINs. If a transmitter uses more than one
TCC to file, each TCC must be reported in separate transmissions if filing electronically or on separatemedia if filing magnetically.
.05If a payer’s files are prepared by a service bureau, the payer may not need to submit an applicationtoobtainaTCC.Some
service bureaus will produce files, code their own TCC in the file, and send it to IRS/ECC-MTB for the payer. Other service bureaus
will prepare the file and return the file to the payer for submission to IRS/ECC-MTB. These service bureaus may require the payer to
obtain a TCC, which is coded in the Transmitter “T” Record. Payers should contact their service bureaus for further information.
.06Form 4419 may be submitted anytime during the year; however, itmustbe submitted to IRS/ECC-MTB at least 30 days before
the due date of the return(s) for current year processing. This will allow IRS/ECC-MTB the minimum amount of time necessary
to process and respond to applications. In the event that computerequipment or software is not compatible with IRS/ECC-MTB, a
waiver may be requested to file returns on paper documents (See Part E, Sec. 5).
.07Once a transmitter is approved to file electronically/magnetically, it is not necessary to reapplyunless:
(a)The payer has discontinued filing electronically or magnetically for two consecutive years. The payer’s TCC may have
been reassigned by IRS/ECC-MTB. Payers who are aware the TCC assigned will no longer be used are requested to notify
IRS/ECC-MTB so these numbers may be reassigned.
(b)The payer’s files were transmitted in the past by a service bureau using the service bureau’s TCC, but now the payer has
computer equipment compatible with that of IRS/ECC-MTB and wishes to prepare his or her own files. The payer must
request a TCC by filing Form 4419.
.08In accordance with Regulations section 1.6041–7(b), payments by separate departments of a health care carrier to providers of
medical and health care services may be reported on separate returns filed electronically or magnetically. In this case, the headquarters
will be considered the transmitter, and the individual departments of the company filing reports will be considered payers. A single
Form 4419 covering all departments filing electronically/magnetically should be submitted. One TCC may be used for all departments.
.09Copies of Publication 1220 can be obtained by downloading from the IRS website atwww.irs.gov.
August 1, 20051722005–31 I.R.B.

.10Ifanyof the information (name, TIN or address) on Form 4419changes, please notify IRS/ECC-MTB in writing so the
IRS/ECC-MTB database can be updated. You may use our email address, m
ccirp@irs.gov, for basic name and address changes.
IRS/ECC-MTB can not accept TIN information via email. A change inthe method by which information returns are submitted is not
information that needs to be updated (e.g.,diskette to electronic). The transmitter should include the TCC in all correspondence.
.11Approval to file does not imply endorsementby IRS/ECC-MTB of any computer software or of the quality of tax preparation
services provided by a service bureau or software vendor.
Sec. 7. Test Files
.01IRS/ECC-MTB encourages first time electronic or magnetic media filers to submit a test. Test files arerequiredfor filers
wishing to participate in the Combined Federal/State Filing Program. See Part A, Sec. 13, for further information on the Combined
Federal/State Filing Program.
.02The test filemustconsist of a sample of each type of record:
(a)Transmitter “T” Record (all fields marked required must include transmitter information)
(b)Payer “A” Record (must not be fictitious data)
(c)Multiple Payee “B” Records(at least 11 “B” Records per each “A” Record)
(d)End of Payer “C” Record
(e)State Totals “K” Record, if participating in the Combined Federal/State Filing Program
(f)End of Transmission “F” Record (See Part D for record formats.)
.03Use the Test Indicator “T” in Field Position 28 of the “T” Record to show this is a test file.
.04IRS/ECC-MTB will check the file to ensure it meets the specifications of this Revenue Procedure. For current filers, sending
a test file will provide the opportunity to ensure their software reflects any programming changes.
.05Electronic tests may be submittedNovember 1, 2005, through February 15, 2006. See Part B, Sec. 4.03, for information on
electronic test results.
.06Tests submitted on magnetic media should bepostmarkedno earlier thanOctober 1, 2005, and no later than December 1,
2005.Testsmustbereceivedat ECC-MTB by December 15 in order to be processed. Test processing will not begin until November
1. For tests filed on tape cartridge, and 3
1
/2-inch diskette, the transmitter must include the signed Form 4804 in the same package with
the corresponding magnetic media. The “TEST” box in Block 1 on Form 4804 must be marked and the external media label must
denote “TEST”.
.07IRS/ECC-MTB will send a letter of acknowledgment to indicate the magnetic media test results. Unacceptable magnetic media
test filers will receive a letter and/or documentation identifying the errors. Resubmission of magnetic media test files must bereceived
by IRS/ECC-MTB no later thanDecember 15, 2005.
TESTING PERIODS
MAGNETIC MEDIAELECTRONIC FILES
November 1, 2005, through December 15, 2005*November 1, 2005, through February 15, 2006
* Postmark media by Dec. 1 in order for media to be
receivedat ECC-MTB by December 15
Sec. 8. Filing of Information Returns Magnetically and Retention Requirements
.01Form 4804, Transmittal of Information Returns Reported Magnetically, or a computer-generated substitute, must accompany
allmagnetic media shipments except for replacements, when Form 4804 is not always necessary (See Part A, Sec. 10).
.02IRS/ECC-MTB allows for the use of computer-generated substitutes for Form 4804. The substitutes must contain all infor-
mation requested on the original forms including the affidavit and signature line. Photocopies areacceptable, however, an original
signature is required. When using computer-generated forms, be sure to clearly mark the tax year being reported. This will eliminate
a telephone communication from IRS/ECC-MTB to question the tax year.
.03Form 4804 may be signed by the payer or the transmitter, servicebureau, paying agent, or disbursingagent (all hereafter referred
to as agent) on behalf of the payer. Failure to sign the affidavit onForm 4804 may delay processing or could result in the files being
unprocessed. An agent may sign Form 4804 if the agent has the authority to sign the affidavit under an agency agreement (either oral,
written, or implied) that is valid under state law and adds the caption “FOR: (name of payer).”
.04Although an authorized agent may sign the affidavit, the payer is responsible for the accuracyof Form 4804 and the returns
filed. The payer will be liable for penalties for failure to comply with filing requirements.
.05Multiple types of media may be submitted in a shipment. However, a separate Form 4804 must be submitted for each type of
media.
2005–31 I.R.B.173August 1, 2005

.06Current and prior year data may be submitted in the same shipment; however, each tax year must be on separate media, and a
separate Form 4804 must be prepared to clearly indicate each tax year.
.07Filers who have prepared their information returns in advance of the due date are encouraged to submit this information to
IRS/ECC-MTB no earlier than January 1 of the year the returns are due. Filers may submit multiple original files by the due date as
long as duplicate information is not sent in the files.
.08 Do not report duplicate information. If a filer submits returns electronically/magnetically, identical paper documents
must not be filed. This may result in erroneous penalty notices being sent to the recipients.
.09A self-adhesive external media label, created by the filer, must be affixed to each piece of magnetic media. For instructions on
how to prepare an external media label, refer to Notice 210 in the forms section of this publication. If diskettes are used, be certain that
only MS-DOS compatible operating systems were used to prepare the diskettes.Non MS-DOS diskettes are no longer acceptable
at IRS/ECC-MTB.
.10When submitting files include the following:
(a)AsignedForm 4804
(b)External media label (created byfiler) affixed to magnetic media
(c)IRB Box
oflabeled on outside of each package
.11IRS/ECC-MTB will not return media after successful processing. Therefore, if the transmitter wants proof that IRS/ECC-MTB
received a shipment, the transmitter should select a service with tracking capabilities orone that will provide proof of delivery. Do
not use special shipping containers for mailing media to IRS/ECC-MTB. Shipping containers will not be returned.
.12IRS/ECC-MTB will not pay for or accept “Cash-on-Delivery” or “Charge to IRS” shipments of tax information that an indi-
vidual or organization is legally required to submit.
.13 Payers should retain a copy of the information returns filed with IRS or have the ability to reconstruct the data for at
least 3 years from the reporting due date, with the exception of:
(a)A 4-year retention period is required for all information returns when backup withholding is imposed.
(b)A financial entity must retain a copy of Form 1099–C, Cancellation of Debt, or have the ability to reconstruct the data
required to be included on the return, for at least 4 years from the date such return is required to be filed.
Sec. 9. Due Dates
.01The due dates for filing paper returns with IRS also apply to
magnetic media. Filing of information returns is on a calendar
year basis, except for Forms 5498 and 5498–SA, which are used t
o report amounts contributed during or after the calendar year (but
not later than April 15). The following due dates will apply to
Tax Year2005:
Due Dates
Electronic FilingMagnetic Filing (See Note.)
Forms 1098, 1099, and W–2G
Recipient Copy – January 31, 2006
IRS Copy – March 31, 2006
Forms 1098, 1099, and W–2G
Recipient Copy – January 31, 2006
IRS Copy – February 28, 2006
Electronic/Magnetic Filing
Forms 5498*, 5498–SA* and 5498–ESA
IRS Copy — May 31, 2006
Forms 5498 and 5498–SA Participant Copy — May 31, 2006
Form 5498–ESA Participant Copy — May 1, 2006
*Participants’ copies of Forms 5498 and 5498–SA to furnish fair market value information — January 31, 2006
.02If any due date falls on a Saturday, Sunday, or legal holiday, the return or statement is considered timely if filed or furnished
on the next day that is not a Saturday, Sunday, or legal holiday.
.03Magnetic media returns postmarked by the United States Postal Service (USPS) on or before March 1, 2006, and delivered
by United States mail to the IRS/ECC-MTB after the due date, are treated as timely under the “timely mailing as timely filing” rule.
Refer to the2005 General Instructions for Forms 1099, 1098, 5498, and W–2G, When to File, located in the back of this publication
for more detailed information. Notice 97–26, 1997–1 C.B. 413, provides rules for determining the date that is treated as the postmark
date. For items delivered by a non-designated Private Delivery Service (PDS), the actual date of receipt by IRS/ECC-MTB will be
used as the filing date. For items delivered by a designated PDS, but through a type of service not designated in Notice 2004–83, the
August 1, 20051742005–31 I.R.B.

actual date of receipt by IRS/ECC-MTB will be used as the filing date.The timely mailing rule also applies to furnishing statements
to recipients and participants.
Note: Due to security regulations at ECC-MTB, the I
nternal Revenue police officers will only accept media from PDSs or
couriers from7:30 a.m. to 3:00 p.m., Monday throug
hFriday.
.04Use this Revenue Procedure to prepare informat
ion returns filed electronically or magnetically beginningJanuary 1, 2006,and
postmarked no later thanDecember 1, 2006.
.05Media postmarked December 2, 2006 or latermust
have the Prior Year Data Indicator coded with a “P” in position 6 of the
Transmitter “T” Record.
Sec. 10. Replacement Magnetic Media
Note: Replacement Electronic files are detailed in Part B, Sec. 5.
.01A replacement is an information return file sent by the filerat the request of IRS/ECC-MTBbecause of errors encountered
while processing the filer’s original file or correction file. After the necessary changes have been made, the entire file must be returned
for processing along with the Media Tracking Slip (Form 9267) which was included in the correspondence from IRS/ECC-MTB.(See
Note.)
Note: Filers should never send anything to IRS/ECC-MTB marked “Replacement” unless IRS/ECC-MTB has requested a
replacement file in writing or via the FIRE System.
.02Magnetic Media filers will receive a Media Tracking Slip (Form 9267), listing, and letter detailing the reason(s) their media
could not be processed. It is imperative that filers maintain backupcopies and/or recreate capabilities for their information return
files. Open all correspondence from IRS/ECC-MTB immediately.
.03When possible, sample records identifying errors encountered will be provided with the returned information. It is the respon-
sibility of the transmitter to check the entire file for similar errors.
.04Before sending replacement media, makecertain the following items are in place:
(a)Make the required changes noted in the enclosed correspondence and check entire file for other errors.
(b)Code Transmitter “T” record, in positions 21–22 for replacement. See Part D, Sec. 3.
(c)Code Payer “A” record in position 49 with “1” for replacement file. See Part D, Sec. 4.
(d)Enclose Form 9267, Media Tracking Slip, with your replacement media.
(e)Label your Media“Replacement Data”and indicate the appropriate Tax Year.
(f)CompleteanewForm4804if any of your information has changed.
.05Replacement files must be corrected and returned to IRS/ECC-MTB within 45 days from the date of the letter. Refer to Part B,
Sec. 5 .05, for procedures for files submitted electronically. A penalty for failure toreturn a replacement file will be assessed if the
files are not corrected and returned within the 45 daysor if filers are notified by IRS/ECC-MTB of the need for a replacement file
more than two times.A penalty for intentional disregard of filing requirements will be assessed if a replacement file is not received.
(For penalty information, refer to the Penalty section of the2005 General Instructions for Forms 1099, 1098, 5498, and W–2G.)
Sec. 11. Corrected Returns
•Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit-
ted to and successfully processed by IRS/ECC-MTB, but contained erroneous information.
•While we encourage you to file your corrections electronically/magnetically, you may file upto 249 paper corrections even
though your originals were filedelectronically or magnetically.
•DO NOT SEND YOUR ENTIRE FILE AGAIN.Onlysendtheinformationreturns in need of correction.
•Information returns omitted from the original filemust notbe coded as corrections. Submit them under a separate Payer “A”
Record as original returns.
•Be sure to use the same payee account number that was used onthe original submission. The account number is used to match
a correction record to the original information return.
•Before creating your correction file, reviewthe following guidelines chart carefully.
.01The magnetic media filing requirement of information returns of 250 or more applies separately to both original and corrected
returns.
2005–31 I.R.B.175August 1, 2005

E
X
A
M
P
L
E
If a payer has 100 Forms 1099–A to be corrected, theycan be filed on paper because they fall under the 250
threshold. However, if the payer has 300 Forms 1099–B to be corrected, they must be filed electronically or
magnetically because they meet the 250 threshold. Iffor some reason a payer cannot file the 300 corrections
electronically or magnetically, to avoid penalties, a request for a waiver must be submitted before filing
on paper. If a waiver is approved for original documents, any correction for the same type of return will
be covered under this waiver.
.02Corrections should be filedas soon as possible. Corrections filed after August 1 may be subject to the maximum penalty of
$50 per return. Corrections filed by August 1 may be subject to a lesser penalty. (For information on penalties, refer to the Penalties
section of the2005 General Instructions for Forms 1099, 1098, 5498, and W–2G.) However, if payers discover errors after August
1, they should file corrections, as prompt correction is a factor considered in determining whether the intentional disregard penalty
should be assessed or whether a waiver of the penalty for reasonable cause may be granted. All fields must be completed with the
correct information, not just the data fieldsneeding correction. Submit corrections only for the returns filed in error, not the entire
file. Furnish corrected statementsto recipients as soon as possible.
Note: Do NOT resubmit your entire file as corrections. This willresult in duplicate filing and erroneous notices may be sent
to payees. Submit only those returns which need to be corrected.
.03There are numerous types of errors, and in some cases, more than one transaction may be required to correct the initial error.
If the original return was filed as an aggregate, the filers must consider this in filing corrected returns.
.04The payee’s account number must be included onallcorrection records. This is especially important when more than one
information return of the same type is reported for a payee. Theaccount number is used to determine which information return is
being corrected. It is vital that each information return reported for a payee have a unique account number. See Part D, Sec. 6, Payer’s
Account Number For Payee.
.05Corrected returns may be included on the same media as original returns; however, separate “A”Records are required. Cor-
rected returns must be identified on Form 4804 and the external medialabel by indicating “Correction.” If filers discover that certain
information returns were omitted on their original file, they must not code these documents as corrections. The file must be coded
and submitted as originals.
.06If a payer realizes duplicate reporting has occurred, IRS/ECC-MTB should be contactedimmediatelyfor instructions on how
to avoid notices. The standard correction process will not resolve duplicate reporting.
.07If a payer discovers errors that affect a large number of payees, in addition to sending IRS the corrected returns and notifying the
payees, IRS/ECC-MTB underreporter section should be contacted toll-free 1–866–455–7438 for additional requirements. Corrections
must be submitted on actual information return documents or filed electronically/magnetically. Form 4804 must be submitted with
corrected files submitted magnetically. If filing magnetically, provide the correct tax year in Block 2 of Form 4804 and on the external
media label. All references to Form 4804 in the guidelines apply only to files submitted magnetically. Form 4804 is not required for
electronic filing.
.08Prior year data, original and corrected,mustbe filed according to the requirements of this Revenue Procedure. If submitting
prior year corrections, use the record format for the current year and submit on separate media. However, use the actual year desig-
nation of the correction in Field Positions 2–5 of the “T”, “A”, and “B” Records. If filing electronically, a separate transmission must
be made for each tax year.
.09In general, filers should submit corrections for returns filed within the last 3 calendar years (4 years if the payment is a reportable
payment subject to backup withholding under section 3406 of the Code and also for Form 1099–C, Cancellation of Debt).
.10All paper returns, whether original or corrected, must be filed with the appropriate service center.IRS/ECC-MTB does not
process paper returns.
.11If a payer discovers an error(s) in reporting the payer nameand/or TIN, write a letter to IRS/ECC-MTB (See Part A, Sec. 3)
containing the following information:
(a)Name and address of payer
(b)Type of error (please include the incorrect payer name/TIN that was reported)
(c)Tax year
(d)Payer TIN
(e)TCC
(f)Type of return
(g)Number of payees
(h)Filing method, paper, electronic, or magnetic media
August 1, 20051762005–31 I.R.B.

.12The “B” Record provides a 20-position field for a unique Payer’s Account Number for Payee. If a payee has more than one
reporting of the same document type, it is vital that each reporting have a unique account number. This number will help identify the
appropriate incorrect return if more than one return is filed for a particular payee.Do not enter a TIN in this field.A payer’s account
number for the payee may be a checking account number, savingsaccount number, serial number, orany other number assigned to
the payee by the payer that will distinguish the specific account. This number should appear on the initial return and on the corrected
return in order to identify and process the correction properly.
.13The record sequence for filing correctionsisthesameasfororiginalreturns.
.14Review the chart that follows. Errors normally fall under oneof the two categories listed. Next to each type of error is a list of
instructions on how to file the corrected return.
Guidelines for Filing Corrected Returns Electronically/Magnetically
Error Made on the Original ReturnHow To File the Corrected Return
Note: References to Form 4804 apply to magnetically filed media only. Form 4804 is not required for files submitted
electronically through the FIRE System. One transaction is required to make the following corrections properly. (See
Note 3.)
ERRORTYPE1CORRECTION
1.Original return was filed with one or more of the
following errors:
A.Prepare a new Form 4804 that includes information
relating to this new file.
B.Mark “Correction” in Block 1 of Form 4804.
C.Prepare a new file. The first record on the file will be
the Transmitter “T” Record.
D.Make a separate “A” Record for each type of return
and each payer being reported. Information in the
“A” Record must be the same as it was in the original
submission. However, remove the “1” (one) in Field
Position 48 and set the Correction File Indicator (Field
Position 50), to “1” (one).
E.The Payee “B” Records must show the correct record
information as well as a Corrected Return Indicator
Code of “G” in Field Position 6.
F.Corrected returns submitted to IRS/ECC-MTB using
“G” coded “B” Records may be on the same file
as those returns submitted without the “G” coded
“B” Records; however,separate “A” Records are
required.
G.Prepare a separate “C” Record for each type of return
and each payer being reported.
H.The last record on the file will be the End of
Transmission “F” Record.
(a)Incorrect payment amount codes in the Payer “A”
Record
(b)Incorrect payment amounts in the Payee “B”
Record.
(c)Incorrect code in the distribution code field in
Payee “B” Record
(d)Incorrect payee address
(e)Incorrect payee indicator (See Note 1.)
(f)Incorrect payee name (See Note 2.)
Note 1:Payee indicators are non-money amount
indicator fields located in the specific form record
layouts of the Payee “B” Record between field
positions 544–748.
Note 2:For information on correcting errors to the
payer’s name and TIN. See Part A, Sec. 11.11.
I.Indicate “Correction” on the external media label.
File layoutonestep corrections
Transmitter
“T”
Record
Payer
“A”
Record
“G”
coded
Payee “B”
Record
“G”
coded
Payee “B”
Record
End of Payer
“C”
Record
End of
Transmission
“F” Record
2005–31 I.R.B.177August 1, 2005

Guidelines for Filing Corrected Returns Electronically/Magnetically
Error Made on the Original ReturnHow To File the Corrected Return
Two (2) separate transactions are required to make the following corrections properly. Follow the directions for both
Transactions 1 and 2. (See Note 2.) DO NOT use the two step correction process to correct money amounts.
ERRORTYPE2CORRECTION
1.Original return was filed with one or more of the
following errors:
Transaction 1:Identify incorrect returns.
A.Prepare a new Form 4804 that includes information
related to this new file.
B.Mark “Correction” in Block 1 of Form 4804.
C.Prepare a new file. The first record on the file will be
the Transmitter “T” Record.
(a)No payee TIN (SSN, EIN, ITIN, QI-EIN)
(b)Incorrect payee TIN
(c)Incorrect payee nameand address
(d)Wrong type of return indicator
D.Make a separate “A” Record for each type of return
and each payer being reported. The information in
the “A” Record will beexactlythe same as it was in
the original submission with one exception; remove
the “1” from Field Position 48, and set the Correction
File Indicator (Field Position 50) to “1” (one).(See
Note 1.)
E.The Payee “B” Records must containexactly the
sameinformation as submitted previously,except,
insert a Corrected Return Indicator Code of “G” in
Field Position 6 of the “B” Records, and enter “0”
(zeros) in all payment amounts.(See Note 1.)
F.Corrected returns submitted to IRS/ECC-MTB using
“G” coded “B” Records may be on the same file as
those returns submitted with a “C” code;however,
separate “A” Records are required.
G.Prepare a separate “C” Record for each type of return
and each payer being reported.
H.Continue with Transaction 2 to complete the
correction.
Transaction 2:Report the correct information.
A.Make a separate “A” Record for each type of return
and each payer being reported. Remove the “1”
(one) in Field Position 48 and set the Correction File
Indicator (Field Position 50), to “1” (one).
B.The Payee “B” Records must show the correct
information as well as a Corrected Return Indicator
Code of “C” in Field Position 6.
C.Corrected returns submitted to IRS/ECC-MTB using
“C” coded “B” Records may be on the same file as
those returns submitted with “G” codes;however,
separate “A” Records are required.
D.Prepare a separate “C” Record for each type of return
and each payer being reported.
August 1, 20051782005–31 I.R.B.

Guidelines for Filing Corrected Returns Electronically/Magnetically (Continued)
CORRECTION
E.The last record on the file will be the End of
Transmission “F” Record. Indicate “Correction” on
the external media label.
Note 1: The Record Sequence Number will be different since this is a counter number and is unique to each file. For
1099–R corrections, if the corrected amounts arezeros, certain indicators will not be used.
Note 2: See th
e2005 General Instructions for Forms 1099, 1098, 5498, and W–2Gfor additional information on regulations
affecting co
rrections and related penalties.
File layouttwostep corrections
Transmitter
“T”
Record
Payer
“A”
Record
“G”
coded
Payee “B”
Record
“G”
coded
Payee “B”
Record
End of Payer
“C”
Record
Payer
“A”
Record
“C”
coded
Payee “B”
Record
“C”
coded
Payee “B”
Record
End of Paye
r
“C”
Record
End of
Transmiss
ion
“F” Record
Note 3: If a filer is correcting the name and/or TIN in addition to any errors listed in item 2 of the chart, two transactions
will be required. If a filer is reporting “G” coded, “C” coded, and/or “Non-coded” (original) returns on the same media, each
category must be reported under separate “A” Records.
Sec. 12. Effect on Paper Returns and Statements to Recipients
.01Electronic/Magnetic reporting of information returns eliminates the need to submit paper documents to the IRS.CAUTION:
Do not send Copy A of the paper forms to IRS/ECC-MTB for any forms filed electronically or magnetically.This will result in
duplicate filing; therefore, erroneous notices could be generated.
.02Payers are responsible for providing statements to the payees as outlined in the2005 General Instructions for Forms 1099,
1098, 5498, and W–2G. Refer to those instructions for filing information returns on paper with the IRS and furnishing statements to
recipients.
.03Statements to recipients should be clear and legible. If the official IRS form is not used, the filer must adhere to the specifications
and guidelines in Publication 1179, Rules and Specifications for Private Printing of Substitute Forms 1096, 1098, 1099, 5498, and
W–2G.
Sec. 13. Combined Federal/State Filing Program
•Through the Combined Federal/State Filing (CF/SF) Program, IRS/ECC-MTB will forward original and corrected information
returns filed electronically or magnetically toparticipating states for approved filers.
•For approval, the filer must submit a test file coded for this program. See Part A, Sec. 7, Test Files.
•For magnetic media test files, attach a letter to Form 4804 requesting approval to participate in the CF/SF Program. Form 4804
or letter is not required fortests sent electronically.
•Approved filers are sent Form 6847, Consent for Internal Revenue Service to Release Tax Information, which must be com-
pleted and returned to IRS/ECC-MTB. A separate form is required for each payer.
2005–31 I.R.B.179August 1, 2005

.01The Combined Federal/State Filing (CF/SF) Program was established to simplify information returns filing for the taxpayer.
IRS/ECC-MTB will forward this information to participating states free of charge for approved filers. Separate reporting to those
states is not necessary. The following information returns may be filed under the Combined Federal/State Filing Program:
Form 1099–DIV—Dividends and Distributions
Form 1099–G—Certain Government Payments
Form 1099–INT—Interest Income
Form 1099–MISC—Miscellaneous Income
Form 1099–OID—Original Issue Discount
Form 1099–P
ATR—
Taxable Dis
tributions Received From Cooperatives
Form 1099–R—Distributions From Pensions, Annuities, Retirement or Profit–Sharing Plans, IRAs,
Insurance Contracts, etc.
Form 5498—IRA Contribution Information
.02To request approval to participate, a magnetic media test file coded for this programmustbe submitted to IRS/ECC-MTB be-
tweenNovember l, 2005, and December 15, 2005. Media must bepostmarkedno later than December 1, 2005 in order to be received
at ECC-MTB by December 15 for processing. Electronic test files coded for this program must be submitted betweenNovember 1,
2005,andFebruary 15, 2006.
.03Attach a letter to Form 4804 submitted with the test file to indicate a desire to participate in the Combined Federal/State Filing
Program. Test files sent electronically do not require Form 4804 or letter. If the test file is coded for the Combined Federal/State Filing
Program and is acceptable, an approval letter and Form 6847, Consent For Internal Revenue Service to Release Tax Information, will
be sent to the filer.
.04While a test file is only required for the first year when you apply to participate in the Program, it is highly recommended that
a test be sent every year you participate in the Combined Federal State Filing program. Each record, both in the test and the actual
data file, must conform to this Revenue Procedure.
.05If the test file is acceptable, IRS/ECC-MTB will send the filer an approval letter, and Form 6847, Consent for Internal Revenue
Service to Release Tax Information, which the payermustcomplete, sign, and return to IRS/ECC-MTB before any tax information
can be released to the state. Filers must write their TCC on Form 6847.
.06If the test file is not acceptable, IRS/ECC-MTB will send magnetic media filers information indicating the problems. Electronic
filers must log on to the FIRE System within two business days to check the acceptability of their test file. The new test file must be
postmarked no later than December 1, 2005 for magnetic media, or February 15, 2006 for an electronically filed test.
.07A separate Form 6847 isrequiredfor each payer. A transmitter may not combine payers on one Form 6847 even if acting
as Attorney-in-Fact for several payers. Form 6847 may be computer-generated as long asit includes all information that is on the
original form or it may be photocopied. If Form 6847 is signed by an Attorney-in-Fact, the written consent from the payer must clearly
indicate that the Attorney-in-Fact is empowered to authorize release of the information.
.08Only code the records for participating states and for those payers who have submitted Form 6847.
.09If a payee has a reporting requirement for more than one state,separate “B” records must be created for each state. Pro-rate
the reporting, allocating what should be reported to each state. Donotreport the total amount to each state. This will cause duplicate
reporting.
.10Some participating states require separate notification thatthepayerisfilinginthismanner. SinceIRS/ECC-MTBactsasa
forwarding agent only, it is the payer’sresponsibility to contact the appropriate states for further information.
.11All corrections properly coded for the Combined Federal/State Filing Program will be forwarded to the participating states.
Only send corrections which affect the Federal reporting. Errors which apply only to the state filing requirement should be sent directly
to the state.
.12Participating states and corresponding valid state codes are listed inTable 1of this section. The appropriate state codemust
be entered for those documents that meet the state filing requirements;do not use state abbreviations.
.13Each state’s filing requirements are subject to change by the state. It is the payer’s responsibility to contact the participating
states to verify their criteria.
.14Upon submission of the actual files, the transmittermustbe sure of the following:
(a)All records are coded exactly as required by this Revenue Procedure.
(b)A State Total “K” Record(s) for each state(s)being reported follows the “C” Record.
(c)Payment amount totals and the valid participating statecode are included in the State Totals “K” Record(s).
(d)The last “K” Record is followed by an “A” Record or an End of Transmission “F” Record (if this is the last record of the
entire file).
August 1, 20051802005–31 I.R.B.

Table 1. Participating States and Their Codes*
StateCodeStateCodeStateCode
Alabama01Indiana18Nebraska31
Arizona04Iowa19NewJersey34
Arkansas05Kansas20New Mexico35
California06Louisiana22North Caroli
na
37
Colorado07Maine23North Dakota38
Connecticut08Maryland24Ohio39
Delaware10Massachusetts25South Carolina45
District of Columbia11Minnesota27Virginia51
Georgia13Mississippi28Wisconsin55
Hawaii15Missouri29
Idaho16Montana30
* The codes listed above are correct for the IRS Combined Federal/State Filing Program and may not correspond to the
state codes of other Agencies or programs.
Sample File Layout for Combined Federal/State Filer
Transmitter
“T”
Record
Payer
“A”
Record coded
with 1 in
position 26
Payee “B”
Record with
statecode15
in position
747–748
Payee “B”
Record with
statecode06
in position
747–748
Payee “B”
Record, no
state code
End of Payer
“C” Record
State Total “K” Record
for “B” records coded 15.
“K” record coded 15 in positions
747–748.
State Total “K” Record
for “B” records coded 06.
“K” record coded 06 in positions
747–748.
End of Transmission “F”
Record
Sec. 14. Penalties Associated With Information Returns
.01The following penalties generally apply to the person required to file information returns. The penalties apply to electronic/mag-
netic media filers as well as to paper filers.
.02 Failure To File Correct Information Returns by the Due Date (Section 6721).If you fail to file a correct information return
by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely,
you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also
applies if you file on paper when you were required to file on magnetic media, you report an incorrect TIN or fail to report a TIN, or
you fail to file paper forms that are machine readable.
The amount of the penalty is based on when you file the correct information return. The penalty is:
•$15per information return if you correctly file within 30 days of the due date of the return (See Part A, Sec. 9 .01); maximum
penalty $75,000 per year ($25,000 for small businesses).
•$30per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $150,000
per year ($50,000 for small businesses).
•$50per information return if you file after August 1 or you do not file required information returns; maximum penalty $250,000
per year ($100,000 for small businesses).
.03A late filing penalty may be assessed for a replacement file which is not returned by the required date. Files which require
replacement more than two times will also be subject to penalty.See Part A, Sec. 10, for more information on replacement files.
2005–31 I.R.B.181August 1, 2005

.04 Intentional disregard of filing requirements.If any failure to file a correct information return is due to intentional disregard
of the filing or correct information requirements, the penalty is at least $100 per information return with no maximum penalty.
.05 Failure To Furnish Correct Payee Statements (Section 6722).For information regarding penalties which may apply to
failure to furnish correct payee statements, see2005 General Instructions for Forms 1099, 1098, 5498, and W–2G.
Sec. 15. State Abbreviations
.01The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. This
table provides state and territory abbreviations only, and does not represent those states participating in the Combined Federal/State
Filing Program.
StateCodeStateCodeStateCode
AlabamaALKentuckyKYNo. Mariana IslandsMP
AlaskaAKLouisianaLAOhioOH
American SamoaASMaineMEOklahomaOK
ArizonaAZMarshall IslandsMHOregonOR
ArkansasARMarylandMDPennsylvaniaPA
CaliforniaCAMassachusettsMAPuerto RicoPR
ColoradoCOMichiganMIRhode IslandRI
Connectic
ut
CTMinnesotaMNSouth Caro
lina
SC
DelawareDEMississippiMSSouth DakotaSD
District of ColumbiaDCMissouriMOTennesseeTN
Federated States of Micronesia FMMontanaMTTexasTX
FloridaFLNebraskaNEUtahUT
GeorgiaGANevadaNVVermontVT
GuamGUNew Hamp
shire
NHVirgini
a
VA
HawaiiHINew JerseyNJ(U.S.) Virgin IslandsVI
IdahoIDNew MexicoNMWashingtonWA
IllinoisILNew YorkNYWest VirginiaWV
IndianaINNorth CarolinaNCWisconsinWI
IowaIANorth DakotaNDWyomingWY
Kansa
s
KS
.02Filers must adhere to the city, state, and ZIP Code format for U.S. addresses in the “B” Record. This also includes American
Samoa, Federated States of Micronesia, Guam, Marshall Islands, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
.03For foreign country addresses, filers may use a 51 position free format which should include city, province or state, postal code,
and name of country in this order. This is allowable only if a “1” (one) appears in the Foreign Country Indicator, Field Position 247,
of the “B” Record.
.04When reporting APO/FPO addresses, use the following format:
EXAMPLE:
Payee NamePVT Willard J. Doe
Mailing AddressCompany F, PSC Box 100
167 Infantry REGT
Pay
ee City
APO
(or FPO)
Payee StateAE, AA, or AP*
Payee ZIP Code098010100
*A
E is the designation for ZIPs beginning with 090–098, AA for ZIP 340, and AP for ZIPs 962–966.
August 1, 20051822005–31 I.R.B.

Sec. 16. Major Problems Encountered
IRS/ECC-MTB encourages filers to verify the format and content of each type of record to ensure the accuracy of the data. This
may eliminate the need for IRS/ECC-MTB to request replacement files. This may be important for those payers who have either had
their files prepared by a service bureau or who have purchased preprogrammed software packages.
Filers who engage a service bureau to prepare media on their behalf should be careful not to report duplicate data, which
may generate penalty notices.
The Major Problems Encountered lists some of the most frequently encountered problems with electronic/magnetic files submitted
to IRS/ECC-MTB. These problems may result in IRS/ECC-MTB requesting replacement files. Some of the problems resulted from
not referring to this publication for instructions.
1. Incorrect Format
•Multiple Files on diskettes — Each diskette must contain onlyONEfile, namedIRSTAX. A file consists of one
Transmitter “T” Record followed by a Payer “A” Record, Payee “B” Records, End of Payer “C” Record, State Totals “K”
Record (if applicable for CF/SF Program), and the End of Transmission “F” Record. A file cancontain multiple Payer “A”
Records, but o
nlyoneTransmitter“T”Record. See Part D, Sec. 10, for file layout diagram.
•Invalid record length —A
LLRecords must be 750 Positions in length.
•Prior tax year datamustbe formatted in thecurrenttax year format. Be sure to use thecurrent Revenue Procedure
(Publication 1220)for formatting prior tax year data.
2. Unable to read tape cartridge.
Please review all tape cartridge specifications carefully (See Part C, Sections 1 and 2.)
3. No Form 4804, Transmittal of Information Returns Reported Magnetically
Each shipment of media sent to IRS/ECC-MTB must include a signed Form 4804. More than one type of media may be sent in
the same shipment, (i.e., diskette, and tape cartridge) but must have a separate Form 4804 to accompanyeach type of media.
4. Discrepancy Between IRS/ECC-MTB Totals and Totals in Payer “C” Records
The “C” Record is a summary record for a type of return for agiven payer. IRS compares the total number of payees and
payment amounts in the “B” records with totals in the “C” Records. The two totalsmustagree. DoNOTenter negative
amounts except when reporting Forms 1099–B or 1099–Q. Money amounts must be all numeric, right-justified and zero (0)
filled.Do Not Use Blanks.
5. The Payment Amount Fields in the “B” Record Do Not Correspond to the Amount Codes in the “A” Record
The Amount Codes used in the “A” recordMUSTcorrespond with the payment amount fields used in the “B” records. The amount
codes must be left-justified, in ascendingorder with the unused positions blank. For Example: If the “B” records show payment
amounts in payment amount fields 2, 4, and 7, then the “A” record must correspond with 2, 4, and 7 in the amount codes field.
6. Incorrect TIN in Payer “A” Record
The Payer’s TIN reported in positions 12–20 of the “A” record must be nine numeric characters only.(Do Not Enter Hyphen.)
The TIN and the First Payer Name Line provided in the “A” record must correspond.
7. Incorrect Tax Year in the Transmitter “T” Record, Payer “A” Record and the Payee “B” Records
The tax year in the transmitter, payer and payee records should reflect the tax year of the information return being reported. For
prior tax year data, there must be a “P” in position 6 of the Transmitter “T” record. Media postmarked December 2, 2005 or
latermusthave the Prior Year Data Indicator coded with a “P” in position 6 of the Transmitter “T” Record. This position must
be blank for current tax year data.
8. Incorrect use of Test Indicator
When sending a test file, position 28 of the Transmitter“T” record must contain a “T”, otherwise blank fill.
2005–31 I.R.B.183August 1, 2005

9. Incorrect Format for TINs in the Payee “B” Record
TINs entered in position 12–20 of the Payee “B” record must consist of nine numerics only.(Do Not Enter Hyphens.)Incorrect
formatting of TINs may result in a penalty.
10. Distribution Codes for Form1099–R Reported Incorrectly
For Forms 1099–R, there must be valid Distribution Code(s) inposition 545–546 of the Payee “B” record. For valid codes (and
combinations), see Guide to Distribution Codes in Part D. If only one distribution code is required, it must be entered in position
545 and position 546 must be blank. A blank in position 545 is not acceptable.
11. Incorrect Record Totals Listed on Form 4804
The Combined Total Payee Records listed on Form 4804 (Block 6) are used in the verification process of information returns.
The figure in this blockmustbe the total number of payee “B” records contained on each individual piece of media submitted.
A separate Form 4804 should be sent foreach piece of media that contains a file.
12. Missing Correction Indicator in Payee “B” Record
When a file is submitted as a correction file, there must be acorrection indicator, “G” or “C” in position 6 of the Payee “B”
record. See Part A, Sec. 11.
Part B. Electronic Filing Specifications
Note: The FIRE System is now on the Internet at http://fire.irs.gov. It is no longer a dial-up connection. The FIRE System
DOES NOT provide fill-in forms. Filers must program files according to the Record Layout Specifications contained in this
publication. For a list of software providers, log on to w
ww.irs.govandgototheApprovedIRSe-fileforBusinessProviders
link.
Sec. 1. General
.01Electronic filing of Forms 1098,1099, 5498, and W–2G information returns, originals, corrections, and replacements is of-
fered as an alternative to magnetic media (tape cartridge or diskette) or paper filing. Filing electronically will fulfill the magnetic
media requirements for those payers who are required to file magnetically. Payers who are under the filing threshold requirement, are
encouraged to file electronically. If the original file was sent magnetically, but IRS/ECC-MTB has requested a replacement file, the
replacement may be transmitted electronically. Also, if the original file was submitted via magnetic media, any corrections may be
transmitted electronically.
.02All electronic filing of information returns are received at IRS/ECC-MTB via the FIRE (Filing Information Returns Elec-
tronically) System. To connect to the FIRE System, point your browser to h
ttp://fire.irs.gov. The system is designed to support the
electronic filing of information returns only.
.03The electronic filing of information returns is not affiliated with any other IRS electronic filing programs. Filers must obtain
separate approval to participate in each of them. Only inquiries concerning electronic filing of information returns should be directed
to IRS/ECC-MTB.
.04Files submitted to IRS/ECC-MTB electronically must be in standard ASCII code. Do not send magnetic media or paper forms
with the same information as electronicallysubmitted files. This would create duplicate reporting resulting in penalty notices.
.05The record formats of the “T”, “A”, “B”, “C”, “K”, and “F” records are the same for both electronically or magnetically filed
records. See Part D, Record FormatSpecifications and Record Layouts.
Sec. 2. Advantages of Filing Electronically
Some of the advantages of filing electronically are:
(1)Paperless, no Form 4804 requirements.
(2)Security — Secure Socket Layer (SSL) 128-bit encryption.
(3)Results available within 1–2 workdays regarding the acceptability of the data transmitted. It is the filer’s responsibility to
log into the system and check results.
(4)Later due date than magnetic media or paper for electronically filed Forms 1098, 1099, and W–2G (refer to Part A, Sec.
9.01).
(5)Allows more attempts than magnetic media filing to replace bad files within a specific time frame before imposing penalties
(refer to Part B, Sec. 5.05).
(6)Better customer service due to on-line availability of transmitter’s files for research purposes.
August 1, 20051842005–31 I.R.B.

(7)Extended period to test electronic files: November 1, 2005 to February 15, 2006.
Sec. 3. Electronic Filing Approval Procedure
.01Filers must obtain a Transmitter Control Code (TCC) prio
r to submitting files electronically. Filers who currently have a TCC
for magnetic media filing may use their assigned TCC for elec
tronic filing. Refer to Part A, Sec. 6,for information on how to obtain
a TCC.
.02Once a TCC is obtained, electronic filers assign their ow
n user ID, password and PIN (Personal Identification Number) and do
not need prior or special approval. See Part B, Sec. 6, for mor
e information on the PIN.
.03If a filer is submitting files for more than one TCC, it is
not necessary to create a separate logon and password for each TCC.
.04For all passwords, it is the user’s responsibility to re
member the password and not allow the password to be compromised.
Passwords are user assigned at first logon and must be 8 alph
a/numerics containing at least 1 uppercase, 1 lowercase, and 1 numeric.
However, filers who forget their password or PIN, can call t
oll-free1–866–455–7438for assistance. The FIRE System may require
users to change their passwords on a yearly basis.
Sec. 4. Test Files
.01Filers are not required to submit a test file; however, the submission of a test file is encouraged for all new electronic filers to
test hardware and software. If filers wish to submit an electronic test file for Tax Year2005(returns to be filed in2006), itmustbe
submitted to IRS/ECC-MTBno earlier thanNovember 1, 2005, andno later thanFebruary 15, 2006.
.02Filers who encounter problems while transmitting the electronic test file can contact IRS/ECC-MTBtoll-free 1–866–455–7438
for assistance.
.03Filers must verify the status of the transmitted test data by going to h
ttp://fire.irs.govand verifying the status of their file by
clicking on CHECK FILE STATUS. This information will be available within 1–2 workdays after the transmission is received by
IRS/ECC-MTB.If your results indicate:
(a)“Good, Federal Reporting”—Your test file is good for federal reporting only. Click on the filename for additional details.
(b)“Good, Federal/State Reporting”—Your file is good for the Combined Federal and State Filing Program (see Part A,
Section 13 for further details). Click on the filename for additional details.
(c)“Bad”—This means that your test file contained errors. Click on the filename for a list of the errors. If you want to send
another test file, send it as another test (not a replacement, original or correction).
(d)“Not Yet Processed”—The file has been received, but we do not have results available yet. Please allow another day for
results.
.04Form 4804 is not required for test files submitted electronically. See Part B, Sec. 6.
.05 A test file is required from filers who want approval forthe Combined Federal/State Filing Program. See Part A, Sec.
13, for further details.
Sec. 5. Electronic Submissions
.01Electronically filed information may be submitted to IRS/ECC-MTB 24 hours a day, 7 days a week. Technical assistance will
be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern time by callingtoll-free 1–866–455–7438.
.02 The FIRE System will be down from December 23, 2005, through January 3, 2006.This allows IRS/ECC-MTB to update
its system to reflect current year changes.
Note: If you are sending a TY2004 file electronically, do not enter a ‘P’ in position 6 of the ‘T’ record (for prior year) unless
you are sending the file after 12/22/2005. After 12/22/2005, any file submitted electronically for TY2004 or earlier will need to
be coded with a ‘P’ in position 6 of the ‘T’ record.
.03If you are sending files larger than 10,000 records electronically, data compression is encouraged. If you are considering
sending files larger than 5 million records, please contact IRS/ECC-MTB for specifics. WinZip and PKZip are the only acceptable
compression packages. IRS/ECC-MTB cannot accept self-extracting zip files or compressed files containing multiple files. The time
required to transmit information returns electronically will vary depending upon the type of connection to the internet and if data
compression is used.The time required to transmit a file can be reduced by as much as 95 percent by using compression.
.04Transmitters may create files using self assigned file name(s). Files submitted electronically will be assigned a new unique file
name by the FIRE System. The filename assigned by the FIRE System will consist of submission type (TEST, ORIG [original], CORR
[correction], and REPL [replacement]), the filer’s TCC and a fourdigit number sequence. The sequence number will be incremented
for every file sent. For example, if it is your first original file for the calendar year and your TCC is 44444, the IRS assigned filename
would be ORIG.44444.0001.Record the filename.This information will be needed by ECC-MTB to identify the file, if assistance
is required.
2005–31 I.R.B.185August 1, 2005

.05If a file was submitted timely and is bad, the filer will have up to 60 days from the day the file was transmitted to transmit an
acceptable file. If an acceptable file is not received within 60 days, the payer could be subject to late filingpenalties. This only applies
to files originally submitted electronically.
.06The following definitions have been provided to help distinguish between a correction and a replacement:
•Acorrectionis an information return submitted by the transmitter to correct an information return that was previously submit-
ted to and processed by IRS/ECC-MTB, but contained erroneous information.(See Note.)
Note: Corrections should only be made to records that have been submitted incorrectly, not the entire file.
•Areplacementis an information return file sent by the filer because the CHECK FILE STATUS option on the FIRE System
indicated the original file was bad. After the necessary changes have been made, the file must be transmitted through the FIRE
System.(See Note.)
Note: Filers should never transmit anything to IRS/ECC-MTB as a “Replacement” file unless the CHECK FILE STATUS
option on the FIRE System indicates the file is bad.
.07The TCC in the Transmitter “T” Record must be the TCC used to transmit the file; otherwise, the file will be considered an
error.
Sec. 6. PIN Requirements
.01Form 4804 is not required for electronic files. Instead, the user will be prompted to create a PIN consisting of 10 numerics
when establishing their initial logon name and password.
.02The PIN is required each time an ORIGINAL, CORRECTION, or REPLACEMENT file is sent electronically and is permission
to release the file. It is not needed for a TEST file. An authorized agent may enter their PIN, however, the payer is responsible for the
accuracy of the returns. The payer will be liable for penalties for failure to comply with filing requirements. If you forget your PIN,
please calltoll-free 1–866–455–7438for assistance.
.03If the file is good, it is released for mainline processing after 10 calendar days from receipt. Contact ustoll-free 1–866–455–7438
within this 10-day period if there is a reason the file should not be released for further processing. If the file is bad, follow normal
replacement procedures.
Sec. 7. Electronic Filing Specifications
.01The FIRE System is designed exclusively for the filing of Forms 1042–S, 1098, 1099, 5498, 8027, and W–2G.
.02A transmitter must have a TCC (see Part A, Sec. 6) before a filecan be transmitted. A TCC assigned for magnetic media filing
should also be used for electronic filing.
.03The results of the electronic transmission will be available in the Check File Status area of the FIRE System within 1–2 business
days. It is the filer’s responsibility to verify the acceptability of files submitted by selecting the CHECK FILE STATUS option. Forms
1042–S, and 8027 require a longer processing time.
Sec. 8. Connecting to the FIRE System
.01Point your browser to http://fire.irs.govto connect to the FIRE System.
.02Filers should turn off their pop-up blockingsoftware before transmitting their files.
.03Before connecting, have your TCC and EIN available.
.04Your browser must support SSL 128-bit encryption.
.05Your browser must be set to receive “cookies”. Cookies are used to preserve your User ID status.
F
irsttimeconnectiontoTheFIRESystem(If you have logged on previously, skip to Subsequent Connections to the FIRE
System.)
Click“Create New Account”.
Fill out the registration form and click“Submit”.
Enter yourUser ID(most users logon with their first and last name).
Enter and verify yourpassword(the password is user assigned and must be 8 alpha/numerics,
containing at least 1 uppercase, 1 lowercase and1numeric).FIREmayrequireyoutochange
the password once a year.
Click“Create”.
If you receive the message“Account Created”,click“OK”.
Enter and verify your 10-digit self-assigned PIN (Personal Identification Number).
August 1, 20051862005–31 I.R.B.

Click“Submit”.
If you receive t
he message“Your PIN has been successfully created!”,click“OK”.
Read the bulletin(s) and/or click“Start the FIRE application”.
S
ubsequentconnectionstoTheFIRESystem
Click“Log On
”.
Enter yourUser ID(most users logon with their first and last name).
Enter yourpassword(the password is user assigned and is case sensitive).
U
ploadingyourfiletotheFIRESystem
At Menu Options:
Click“Sen
d Information Returns”
Enter yourTCC:
Enter yourEIN:
Click“Submit”.
The system will then display the company name, address, city, state, ZIP code, phone number,
contact and email address. This information will be used to contact or send correspondence (if
necessary) regarding this transmission. Update as appropriate and/or Click“Accept”.
Click one of the following:
Original File
Correction File
Test File
Replacement File(if you select this option, select one of the following):
NEW FIRE Replacement(file was originally transmitted on this system)
Cli
ck the file to be replaced.
Magnetic Media Replacement
Enter the alpha character from Form9267, Media Tracking Slip, that was
sent with the request for replacement file. Click“Submit”.
Enter your 10-digit PIN.
Click“Submit”.
C
lick“Browse”to locate the file and open it.
Click“Upload”.
When the upload is complete, the screenwill display the total bytes received and tell you the name of the file you just
uploaded.
If you have more files to upload for that TCC:
Click“File Another?”;otherwise,
Click“Main Menu”.
It is your responsibility to check the acceptability of your file; therefore, be sure to check back into the system in 1–2
business days using the CHECK FILE STATUS option.
2005–31 I.R.B.187August 1, 2005

CheckingyourFILESTATUS
At the Main Menu:
Click“Check F
ile Status”.
Enter yourTCC:
Enter yourEIN:
Click“Search”.
If “Results” indicate:
“Good, Not
Released”and you agree with the “Count of Payees”, you
are finish
ed with this file. The file will automatically be released after 10
calendar d
ays unless you contact us within this timeframe.
“Good, Released”— File has been released to our mainline processing.
“Bad”— Correct the errors and timely resubmit the file as a “replacement”.
“Not yet processed”— File has been received, but we do not have results
available yet. Please check back in a few days.
Click on the desired file for a detailed report of your transmission.
When you are finished, click onMain Menu.
Click“Log Out”.
Close your Web Browser.
Sec. 9. Common Problems and Questions Associated with Electronic Filing
.01Refer to Part A, Sec. 16, for common format errors associated with electronic/magnetic files.
.02The following are the major errors associated with electronic filing:
N
ON-FORMATERRORS
1. Transmitter does not check the FIRE System to determine file acceptability.
The results of your file transfer are posted to the FIRE System within two business days. It is your responsibility to verify file
acceptability and, if the file contains errors, you can get an online listing of the errors. Date received and number of payee records
are also displayed. If the file is good, but you do not wantthe file processed, you must contact IRS/ECC-MTB within 10
calendar days from the transmission of your file.
2. Incorrect file is not replaced timely.
If your file is bad, correct the file and timely resubmit as a replacement.
3. Transmitter compresses several files into one.
Only compress one file at a time. For example, if you have 10 uncompressed files to send, compress each file separately and
send 10 separate compressed files.
4. Transmitter sends a file and CHECK FILE STATUS indicates that the file is good, but the transmitter wants to send a
replacement or correction file to replace the original/correction/replacement file.
Once a file has been transmitted, you cannot send a replacement fileunless Check File Status indicates the file is bad (1–2 business
days after file was transmitted). If you do not wantus to process the file, you must first contact ustoll-free 1–866–455–7438to
see if this is a possibility.
5. Transmitter sends an original file that is good, and then sends a correction file for the entire file even though there are
only a few changes.
The correction file, containing the proper coding, should only contain the records needing correction, not the entire file.
6. File is formatted as EBCDIC.
All files submitted electronicallymust be in standard ASCII code.
August 1, 20051882005–31 I.R.B.

7. Transmitter has one TCC number, but is filing for multiple companies, which EIN should be used when logging
into the system to send the file?
When sending the file electronically, you will need to enter theEIN of the company assigned to the TCC. When you upload the
file, it will contain the EIN’s for the other companies that you are filing for. This is the information that will be passed forward.
8. Transmitter sent the wrong file, what should be done?
Call us as soon as possibletoll-free 1–866–455–7438. We may be able to stop the file before it has been processed.Please do not
send a replacement for a file that is marked as a good file.
Part C. Magnetic Media Specifications
.01Transmitters should be consistent in theuse of recording codes and density on files. If the media does not meet these spec-
ifications, IRS/ECC-MTB will request a replacement file. Filers are encouraged to submit a test prior to submitting the actual file.
Contact IRS/ECC-MTBtoll-free 1–866–455–7438, extension 5for further information. Transmitters should also check media for
viruses before submitting to IRS/ECC-MTB.
Sec. 1. Tape Cartridge Specifications
.01In most instances, IRS/ECC-MTB can process tape cartridges that meet the following specifications:
(a)Must be IBM 3480, 3490, 3490E, 3590, or 3590E.
(b)Must meet American National Standard Institute (ANSI)standards, and have the following characteristics:
(1)Tape cartridges must be
1
/2-inch tape contained in plastic cartridges that areapproximately 4-inches by 5-inches by 1-inch
in dimension.
(2)Magnetic tape must be chromium dioxide particle based
1
/2-inch tape.
(3)Cartridges must be 18-track, 36-track, 128-track or 256-track parallel(See Note.)
(4)Cartridges will contain 37,871 CPI, 75,742 CPI, or 3590 CPI (characters per inch).
(5)Mode will be full function.
(6)The data may be compressed using EDRC (Memorex) or IDRC (IBM) compression.
(7)Either EBCDIC (Extended Binary Coded Decimal Interchange Code) or ASCII (American Standard Coded Information
Interchange) may be used.
.02The tape cartridge records definedin this Revenue Procedure may be blocked subject to the following:
(a)Ablockmust notexceed 32,250 tape positions.
(b)If the use of blocked records would result in a short block, all remaining positions of the block must be filled with 9s;
however, the last block of the file may be filled with 9s or truncated.Do not pad a block with blanks.
(c)All records, except the header and trailer labels, may be blocked or unblocked. A record may not contain any control fields
or block descriptor fields, which describe the length of the block or the logical records within the block. The number of
logical records within a block (the blocking factor) must be constant in every block with the exception of the last block,
which may be shorter (see item (b) above). Theblock length must be evenly divisible by 750.
(d)Records may not span blocks.
.03Tape cartridges may be labeled or unlabeled.
.04For the purposes of this Revenue Procedure, the following must be used:
Tape Mark:
(a)Signifies the physical end of the recording on tape.
(b)For even parity, use BCD configuration 001111 (8421).
(c)May follow the header label and precede and/or follow the trailer label.
Note: Filers should indicate on the external media label whether the cartridge is 18-track, 36-track, 128-track or 256-track.
Sec. 2. 3
1
/2-Inch Diskette Specifications
.01To be compatible, a diskette file mustmeet the following specifications:
(a)3
1
/2-inches in diameter.
(b)Datamustbe recorded in standard ASCII code.
(c)Records must be a fixed length of 750 bytes per record.
(d)Delimiter character commas (,) must not be used.
(e)Positions 749 and 750 of each record have been reserved for use as carriage return/line feed (cr/lf) characters, if applicable.
2005–31 I.R.B.189August 1, 2005

(f)Filename of IRSTAX must be used. Do not enter any other data in this field. If a file will consist of more than one diskette,
the filename IRSTAX will contain a three-digit extension. This extension will indicate the sequence of the diskettes within
the file. For example, if the file consists of three diskettes, the first diskette will be named IRSTAX.001, the second will
be IRSTAX.002, and the third will be IRSTAX.003. The first diskette, IRSTAX.001 will begin with a “T” Record and the
third diskette, IRSTAX.003 will have an “F” Record at the end of the file.
(g)A diskette cannot contain multiple files. A file can have onlyONETransmitter “T” Record.
(h)Failure to comply with instructions will resultin IRS/ECC-MTB requesting a replacement file.
(i)Diskettes must meet one of the following specifications:
CapacityTracksSides/DensitySector Size
1.44 mb96tpihd512
1.44 mb135tpihd512
.02IRS/ECC-MTB encourages transmitters to use blank or currently formatted diskettes when preparing files. If extraneous data
follows the End of Transmission “F” Record, IRS/ECC-MTB will request a replacement file.
.03IRS/ECC-MTB willonlyaccept 3
1
/2-inch diskettes created using MS-DOS.
.04 3
1
/2-inch diskettes created on a System 36 or iSeries(AS400) are notacceptable.
Part D. Record Format Specifications and Record Layouts
Sec. 1. General
.01The specifications contained in this part of the Revenue Procedure define the required formation and contents of the records to
be included in the electronic or magnetic media files.
.02A provision is made in the “B” Records for entries which are optional. If the field is not used, enter blanks to maintain a fixed
record length of 750 positions. Each field descriptionexplains the intended use of specific field positions.
Sec. 2. Transmitter “T” Record — General Field Descriptions
.01The Transmitter “T” Record identifies the entity transmitting the electronic/magnetic media file and contains information which
is critical if it is necessary for IRS/ECC-MTB to contact the filer.
.02The Transmitter “T” Record is the first record on each file and is followed by a Payer “A” Record. A file format diagram is
located at the end of Part D. A replacement file will be requested byIRS/ECC-MTB if the “T” Record is not present. For transmitters
with multiple diskettes, refer to Part C, Sec. 2, 3
1
/2-Inch Diskette Specifications.
.03For all fields marked“Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked“Required”, a transmitter must allow for the field but may be instructed to enter blanks or zeros in the
indicated field positions and for the indicated length.
.04All records must be a fixed length of 750 positions.
.05All alpha characters entered in the “T”Record must be upper-case, except emailaddresses which may be case sensitive.Do
notuse punctuation in the name and address fields.
Record Name: Transmitter “T” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “T”.
2–5Payment Year4Required.Enter “2005” (unless reporting prior year data; report the year which
applies [2003, 2004, etc.] and set the PriorYear Data Indicator in field position
6).
6Prior Year Data
Indicator
1Required.Enter “P”onlyif reporting prior year data; otherwise, enter blank.
Do not enter a “P” if tax year is2005. (See Note.)
Note: Current year data MAILED December 2 or later or electronic files SENT December 23 or later must be coded with
a “P”. Current year processing ends in December and programs are converted for the next processing year.
August 1, 20051902005–31 I.R.B.

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
7–15Transmitter’s TIN9Required.Enter the transmitter’s nine-digitTaxpayer Identification Number
(TIN). May be an EIN or SSN.
16–20Transmitter Control
Code
5Required.Enter the five-character alpha/numeric Transmitter Control Code
(TCC) assigned by IRS/ECC-MTB. A TCCmust be obtained to file data with
this program.
21–22Replacement
Alpha Character
2Required for magnetic media replacement files only.Enter the alpha/numeric
character which appears immediately following the TCC number on the Media
Tracking Slip (Form 9267). Form 9267accompanies correspondence sent by
IRS/ECC-MTB when files cannot be processed. This field must be blank unless
a replacement file has been requested. If the file is being replaced magnetically,
information is required in this field. If the file was originally sent magnetically,
but the replacement is being sent electronically, the information is required in this
field. Otherwise, leave blank for electronic files. Left-justify information and fill
unused positions with blanks.If this is not a replacement file, enter blanks.
23–27Blank5Enter blanks.
28Test File
Indicator
1Required for test files only.Enter a “T” if this is a test file; otherwise, enter
a blank.
29Foreign Entity
Indicator
1Enter a “1” (one) if the transmitter is a foreign entity. If the transmitter is not a
foreign entity, enter a blank.
30–69Transmitter
Name
40Required.Enter the name of the transmitter in the manner in which it is used in
normal business. Left-justify and fill unused positions with blanks.
70–109Transmitter
Name
(Continuation)
40Required.Enter any additional information that may be part of the name.
Left-justify information and fill unused positions with blanks.
110–149Company
Name
40Required.Enter the name of the company to be associated with the address
where correspondence should be sent.
150–189Company
Name
(Continuation)
40Enter any additional information that may be part of the name of the company
where correspondence should be sent.
190–229Company Mailing
Address
40Required.Enter the mailing address where correspondence should be sent.
Note: Any correspondence relating to problem media or electronic files will be sent to this address. This should be the
same address as in box 5 of Form 4804. For U.S. addresses,the payer city, state, and ZIP Code must be reported as a 40, 2,
and 9-position field, respectively.Filers must adhere to the correct format for the payer city, state, and ZIP Code. For
foreign addresses,filers may use the payer city, state, and ZIP Code as a continuous 51-position field. Enter information in
the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the
Foreign Entity Indicator in position 29 must contain a “1” (one).
230–269Company
City
40Required.Enter the city, town, or post office where correspondence should
be sent.
270–271Company
State
2Required.Enter the valid U.S. Postal Service state abbreviation. Refer to the
chart for valid state codes in Part A, Sec. 15.
272–280Company
ZIP Code
9Required.Enter the valid nine-digit ZIP assigned by the U.S. Postal Service.
If only the first five digits are known, left-justify information and fill unused
positions with blanks.
281–295Blank15Enter blanks.
296–303Total Number
of Payees
8Enter the total number of Payee “B” Records reported in the file. Right-justify
information and fill unused positions with zeros.
2005–31 I.R.B.191August 1, 2005

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
304–343Contact Name40Required.Enter the name of the person to be contacted if IRS/ECC-MTB
encounters problems with the file or transmission.
344–358Contact Phone
Number &
Extension
15Required.Enter the telephone number of the person to contact regarding
electronic or magnetic files. Omit hyphens. If no extension is available,
left-justify information and fill unused positions with blanks. For example, the
IRS/ECC-MTB Customer Service Section phone number of866–455–7438with
an extension of52345would be866455743852345
359–393Contact Email
Address
35Required if available.Enter the email address of the person to contact regarding
electronic or magnetic files. Left-justify information. If no email address is
available, enter blanks.
394–395Cartridge Tape
File Indicator
2Required for tape cartridge filers only.Enter the letters “LS” (in uppercase
only). Use of this field by filers using other types of media will be acceptable
but is not required.
396–410Electronic File
Name For a
Replacement File
15Required.Use for an electronic file which “FILE STATUS” has indicated was
rejected. Enter the ORIGINAL or CORRECTION electronic file name assigned
by the IRS electronic FIRE System. If you are sending an original, correction, or
test file, enter blanks.
EXAMPLE:Ifyouhavesentanoriginalfile,theTCCis44444anditisyourfirstoriginalfile,thenthefilenamewouldbe
ORIG.44444.0001.
411–416Transmitter’s Media
Number
6For magnetic media filers only. If your organization uses an in-house numbering
system to identify media, enter thatnumber; otherwise, enter blanks.
417–499Blank83Enter blanks.
500–507Record Sequence
Number
8Required.Enter the number of the record as it appears within your file. The
record sequence number for the “T” record will always be “1” (one), since it is
the first record on your file and you can have only one “T” record in a file.
Each record, thereafter, must be incremented by one in ascending numerical
sequence, i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in the field.
For example, the “T” record sequence number would appear as “00000001”
in the field, the first “A” record would be “00000002”, the first “B” record,
“00000003”, the second “B” record, “00000004” and so on until you reach the
final record of the file, the “F” record.
508–517Blank10Enter blanks.
518Vendor Indicator1Required.Enter the appropriate code from the table below to indicate if your
software was provided by a vendor or produced in-house.
IndicatorUsage
VYour software was purchased from a
vendor or other source.
IYour software was produced by
in-house programmers.
Note: In-house programmer is defined as an employee or a hired contract programmer. If your software is produced
in-house, the following Vendor information fields are not required.
519–558Vendor Name40Required.Enter the name of the company from whom you purchased your
software.
August 1, 20051922005–31 I.R.B.

Record Name: Transmitter“T” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
559–598Vendor Mailing
Address
40Required.Enter the mailing address.
ForU.S.addresses,thevendorcity,state,andZIPCodemustbereported as a 40, 2, and 9-position field, respectively.Filers
must adhere to the correct format for the payer city, state, and ZIP Code. For foreign addresses,filers may use the
payer city, state, and ZIP Code as a continuous 51-position field. Enter information in the following order: city, province or
state, postal code, and the name of the country.
599–638Vendor City40Required.Enter the city, town, or post office.
639–640Vendor State2Required.Enter the valid U.S. Postal Service state abbreviation. Refer to the
chart of valid state codes in Part A, Sec. 15.
641–649Vendor ZIP Code9Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal
Service. If only the first five-digits are known, left-justify information and fill
unused positions with blanks.
650–689Vendor Contact Name40Required.Enter the name of the person whocan be contacted concerning any
software questions.
690–704Vendor Contact
Phone Number
& Extension
15Required.Enter the telephone number of the person to contact concerning
software questions. Omit hyphens. If no extension is available, left-justify
information and fill unused positions with blanks.
705–739Vendor Contact
Email Address
35Required.Enter the email address of the person to contact concerning software
questions. Left-justify information and fill unused positions with blanks.
740Vendor Foreign
Entity Indicator
1Enter a “1” (one) if the vendor is a foreign entity. Otherwise, enter a blank.
741–748Blank8Enter blanks.
749–750Blank2Enter blanks or carriage return/line feed characters (CR/LF).
Sec. 3. Transmitter “T” Record — Record Layout
Record
Type
Payment
Year
Prior Year
Data
Indicator
Transmitter’s
TIN
Transmitter
Control
Code
Replacement
Alpha
Character
Blank
12–567–1516–2021–2223–27
Test File
Indicator
Foreign
Entity
Indicator
Transmitter
Name
Transmitter
Name
(Continuation)
Company
Name
Company
Name
(Continuation)
282930–6970–109110–149150–189
Company
Mailing
Address
Company
City
Company
State
Company
ZIP
Code
BlankTotal
Number
of Payees
Contact
Name
190–229230–269270–271272–280281–295296–303304–343
2005–31 I.R.B.193August 1, 2005

Contact
Phone
Number &
Extension
Contact
Email
Address
Cartridge
Tape File
Indicator
Electronic File
Name For a
Replacement
File
Transmitter’s
Media Number
BlankRecord
Sequence
Number
344–358359–393394–395396–410411–416417–499500–507
BlankVendor
Indicator
Vendor
Name
Vendor
Mailing
Address
Vendor
City
Vendor
State
508–517518519–558559–598599–638639–640
Vendor ZIP
Code
Vendor
Contact
Name
Vendor
Contact
Phone
Number &
Extension
Vendor
Contact
Email
Address
Vendor
Foreign
Entity
Indicator
BlankBlank or
CR/LF
641–649650–689690–704705–739740741–748749–750
Sec. 4. Payer “A” Record — General Field Descriptions
.01The Payer “A” Record identifies the person making payments, a recipient of mortgage or student loan interest payments, an
educational institution, a broker, a person reporting a real estate transaction, a barter exchange, a creditor, a trustee or issuer of any
IRA or MSA plan, and a lender who acquires an interest in secured property or who has a reason to know that the property has been
abandoned. The payer will be held responsible for the completeness, accuracy, and timelysubmission of electronic/magnetic files.
.02The second record on the file must be an “A” Record. A transmitter may include Payee “B” records for more than one payer
in a file. However,each groupof “B” records must be preceded by an “A” Record and followed by an End of Payer “C” Record. A
single file may contain different types of returns but the types of returnsmust notbe intermingled. A separate “A” Record is required
for each payer and each type of return being reported.
.03The number of “A” Records depends on the number of payers and the different types of returns being reported. Do not submit
separate “A” Records for each payment amount being reported. For example, if a payer is filingForm 1099–DIV to report Amount
Codes 1, 2, and 3, all three amount codes should be reported under one “A” Record, not three separate “A” Records.
.04The maximum number of “A” Records allowed on a file is 90,000.
.05All records must be a fixed length of 750 positions.
.06All alpha characters entered inthe “A” Record must be upper case.
.07For all fields marked“Required”, the transmitter must provide the information described under Description and Remarks.
For those fields not marked“Required”, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the
indicated media position(s) and for the indicated length.
Record Name: Payer “A” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter an “A”.
2–5Payment Year4Required.Enter “2005” (unless reporting prior year data; report the year which
applies [2003, 2004, etc.]).
6–11Blank6Enter blanks.
August 1, 20051942005–31 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
12–20Payer’s
Taxpayer
Identification
Number (TIN)
9Required.Must be the valid nine-digit Taxpayer Identification Number assigned to
the payer.Do not enter blanks, hyphens, or alpha characters.All zeros, ones,
twos, etc., will have the effect of an incorrect TIN.
Note: For foreign entities that are not required to have a TIN, this field must be blank. However, the Foreign Entity
Indicator, position 52 of the “A” Record, must be set to “1” (one).
21–24Payer Name
Control
4The Payer Name Control can be obtained only from the mail label on the Package
1099 that is mailed to most payers each December. Package 1099 contains Form
7018–C, Order Blank for Forms, and themail label on the package contains a
four (4) character name control. If a Package 1099 has not been received, you can
determine your name control using the following simple rules or you can leave the
field blank. For a business, use the first four significant characters of the business
name. Disregard the word “the” when it is the first word of the name, unless there
are only two words in the name. A dash (-) and an ampersand (&) are the only
acceptable special characters. Names of less than four (4) characters should be
left-justified, filling the unused positions with blanks.
25Last Filing
Indicator
1Enter a “1” (one) if this is thelast yearthis payer name and TIN will file information
returns electronically, magnetically or on paper; otherwise, enter blank.
26Combined
Federal/State
Filer
1Required for the Combined Federal/State Filing Program.Enter“1”(one)if
approved or submitting a test to participate in the Combined Federal/State Filing
Program; otherwise, enter blank.
Note: If you entered one in this field position, be sure to codethe Payee “B” Records with the appropriate state code. Refer
to Part A, Sec. 13, for further information.
27Type of Return1Required.Enter the appropriate code from the table below:
TypeofReturnCode
10983
1098–CX
1098–E2
1098–
T
8
1099–A4
1099–BB
1099–C5
1099–CAPP
1099–DIV1
109
9–G
F
1099–HJ
1099–INT6
1099–LTCT
1099–MISCA
1099–OIDD
1
099–PATR
7
1099–QQ
1099–R9
1099–SS
1099–SAM
5498L
5498–ESAV
5498–SAK
W–2GW
2005–31 I.R.B.195August 1, 2005

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
28–41Amount Codes
(See Note.)
14Required.Enter the appropriate amount codes for the type of return being reported.
In most cases, the box numbers on paper information returns correspond with the
amount codes used to file electronically or magnetically. However, if discrepancies
occur, this Revenue Procedure governs for filing electronically/magnetically. Enter
the amount codes in ascending sequence numeric characters followed by alphas,
left-justify, and fill unused positions with blanks.
Note: A type of return and an amount code must be presentin every Payer “A” Record even if no money amounts are
being reported. For a detailed explanation of the information to be reported in each amount code, refer to the appropriate
paper instructions for each form.
Amount CodesForm 1098—Mortgage
Interest Statement
For Reporting Mortgage Interest Received From Payers/Borrowers (Payer of
Record) on Form 1098:
AmountCodeAmountType
1Mortgage interest received from
payer(s)/borrower(s)
2Points paid on purchase of principal
residence
3Refund (or credit) of overpaid interest
4Blank(Fi
ler’s use)
Amount CodeForm 1098–C—
Contributions of Motor Vehicles, Boats,
and Airplanes
For Reporting Gross Proceeds From Sales on Form 1098–C:
A
mountC
ode
AmountT
ype
4Gross proceeds from sales
Amount CodeForm 1098–E— Student
Loan Interest
For Reporting Interest on Student Loans on Form 1098–E:
A
mount
Code
Amount
Type
1Student loan interest received by lender
Amount CodesForm 1098–T— Tuition
Statement
For Reporting Tuition Payments on Form 1098–T:
A
moun
tCode
Amoun
tType
1Payments received forqualified tuition and
related expenses
2Amounts billed for qualified tuition and
related expenses
3Adjustments made for prior year
4Scholarships or grants
5Ad
justmentstoscholarshipsorgrantsfor
ap
rior year
Note:
Amount codes 3 and 5 are
assu
med to be negative. It is not
nece
ssary to code with an over punch
or da
sh to indicate a negative reporting.
See t
he2005 Instructions for Forms
1098
–E and Tfor further Information.
7Reimbursements or refunds of qualified
tuition and related expenses from an
insurance contract
Note: For Amount Codes 1 and 2, enter either payments received OR amounts billed. DO NOT report both.
August 1, 20051962005–31 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Amount CodesForm 1099–A—
Acquisition or Abandonment of Secured
Property
For Reporting the Acquisition or Abandonment of Secured Property on Form
1099–A:
AmountCodeAmountType
2Balance of principal outstanding
See the2005 Instructions for Forms
1099–A and 1099–Cfor further
information on coordination with Form
1099–C
4Fair market value of property
For Reporti
ng Payments on Form 1099–B:
Amount Code
sForm 1099–B— Proceeds
From Broker
and Barter Exchange
Transactio
ns
A
mountCodeAmountType
2Stocks, bonds, etc. (For forward contracts,
See Note 1.)
3Bartering (Do not report negative amounts.)
4Federal income tax withheld (backup
withholding) (Do not report negative
amounts.)
6Profit (or loss) realized in2005
7Unrealized profit (or loss) on open contracts
—12/31/2004(See Note 2.)
8Unrealized profit (or loss) on open contracts
—12/31/2005(See Note 2.)
9Aggregate profit (or loss)(See Note 2.)
Note 1:
The payment amount field associated with Amount Code 2may be used to report a loss from a closing transaction
on a for
ward contract. Refer to the “B” Record — General FieldDescriptions and Record Layouts, Payment Amount
Fields
, for instructions on reporting negative amounts.
Note 2: Payment Amount Fields 6, 7, 8, and 9 are to be used for the reporting of regulatedfutures or foreign currency
contracts.
For Reporting Payments on Form 1099–C:Amount Codes Form1099–C—
Cancellation of Debt
A
moun
tCode
Amoun
tType
2Amount of debt canceled
3Interest, if included in Amount Code 2
7Fair
market value of property(See Note.)
Note: Use Amount Code 7 only if a combined Form 1099–A and 1099–C is being filed.
For Reporting Payments on Form 1099–CAP:Amount CodesForm 1099–CAP—
Changes in Corporate Control and Capital
StructureA
mountCodeAmountType
2Ag
gregate amount received
For Reporting Payments on Form 1099–DIV:Amount CodesForm 1099–DIV—
Dividends and Distributions
A
mountCodeAmountType
1To
tal ordinary dividends
2Qualified dividends
3Total capital gain distribution
6Unrecaptured Section 1250 gain
7Section 1202 gain
8Collectibles (28%) rate gain
9Nondividend distributions
AFederal income tax withheld
2005–31 I.R.B.197August 1, 2005

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
AmountCodeAmountType
BInvestment expenses
CForeign tax paid
DCash liquidation distributions
ENon-cash liquidation distributions
For Reporting Payments on Form 1099–G:Amount CodesForm 1099–G—Certain
Government Payments
A
mountCodeAmountType
1Unemployment compensation
2State or loc
al income tax refunds, credits,
or offsets
4Federal income tax withheld (backup
withholding or voluntary withholding
on unemployment compensation or
Commodity Credit Corporation Loans, or
certain crop disaster payments)
5Alternative Trade Adjustment Assistance
(ATAA) Payments
6Taxable grants
7Agriculture payments
For Reporting Payments on Form 1099–H:Amount CodesForm 1099–H— Health
Coverage Tax Credit (HCTC) Advance
PaymentsA
mountCodeAmountType
1Gross amount of health insurance advance
payments
2Amount of advance payment for January
3Amount of advance payment for February
4Amount
of advance payment for March
5Amount of advance payment for April
6Amount of advance payment for May
7Amoun
t of advance payment for June
8Amount of advance payment for July
9Amount of advance payment for August
AAmou
nt of advance payment for September
BAmount of advance payment for October
CAmount of advance payment for November
DAmo
unt of advance payment for December
For Reporting Payments on Form 1099–INT:Amount CodesForm 1099–INT—
Interest Income
A
mountCodeAmountType
1In
terest income not included in Amount
Co
de 3
2Early withdrawal penalty
3Interest on U.S. Savings Bonds and
Treasury obligations
4Federal income tax withheld (backup
withholding)
5Investment expenses
6Foreign tax paid
August 1, 20051982005–31 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
For Reporting Payments on Form 1099–LTC:Amount CodesForm 1099–LTC—
Long-Term Care and Accelerated Death
BenefitsA
mountCodeAmountType
1Gross long-term care benefits paid
2Accelerated
death benefits paid
For Reporting Payments on Form 1099–MISC:Amount CodesForm 1099–MISC—
Miscellaneous Income
(See Note 1.)A
mountCodeAmountType
1Rents
2Royalties(See Note 2.)
3Other income
4Federal income tax withheld (backup
withholding or withholding on Indian
gaming profits)
5Fishing boat proceeds
6Medical and health care payments
7Nonemplo
yee compensation
8Substitute payments in lieu of dividends or
interest
ACrop insurance proceeds
BExcess golden parachute payments
CGrossp
roceeds paid to an attorney in
connec
tion with legal services
DSection 409A Deferrals
ESection 409A Income
Note 1: When using the Direct Sales Indicator in position 547 of the Payee “B” Record, use Type of Return Code A and
Amount Code 1 in the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros.
Note 2
: Do not report timber royalties under a “pay-as-cut” contract; these must be reported on Form 1099–S.
Amount CodesForm 1099–OID—
Original Issue Discount
For Reporting Payments on Form 1099–OID:
A
mountCodeAmountType
1Orig
inal issue discount for 2005
2Other periodic interest
3Early withdrawal penalty
4Federal income tax withheld (backup
withholding)
6Or
iginal issue discount on U.S. Treasury
Ob
ligations
See the2005 Instructions for Forms
1099–INT and 1099–OIDfor further
reporting information
7Investment expenses
For Reporting Payments on Form 1099–PATR:Amount CodesForm 1099–PATR—
Taxable Distributions Received From
CooperativesA
mountCodeAmountType
1Patronage dividends
2Nonpatronage distributions
3Per-unit retain allocations
2005–31 I.R.B.199August 1, 2005

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
AmountCodeAmountType
4Federal income tax withheld (backup
withholding)
5Redemption of nonqualified notices and
retain allocations
6Deduction for qualified production
activities income
Pass-Through Credits
7Investment credit
8Work opportunity credit
9Patron’s alternative minimum tax (AMT)
adjustment
AFor filer’s use for pass-through credits
For Repor
ting Payments on a Form 1099–Q:
Amount Co
desForm 1099–Q—
Payments
From Qualified Education
Programs
(Under Sections 529 and 530)
A
mountCo
de
AmountTy
pe
1Gross distribution
2Earnings
3Basis
For Reporting Payments on Form 1099–R:
A
mountCodeAmountType
1Gross distribution
2Taxable amount(See Note 1.)
3Capital gain (included in Amount Code 2)
4Fede
ral income tax withheld
5Employee contributions or insurance
premiums
6Net unrealized appreciation in employer’s
securities
8Other
9Total employee contributions
Amount CodesForm 1099–R—
Distributions From Pensions, Annuities,
Retirement or Profit–Sharing Plans, IRAs,
Insurance Contracts, etc.
ATraditional IRA/SEP/SIMPLE distribution
or Roth conversion(See Note 2.)
Note 1: If the taxable amount cannot be determined, enter a “1” (one) in position 547 of the “B” Record. Payment
Amount 2 must contain zeros.
Note 2: For Form 1099–R, report the Roth conversion or total amount distributed from an IRA, SEP, or SIMPLE in
Payment Amount Field A (IRA/SEP/SIMPLE distribution orRoth conversion) of the Payee “B” Record, and generally,
the same amount in Payment Amount Field 1 (Gross Distribution). The IRA/SEP/SIMPLE indicator should be set to
“1” (one) in Field Position 548 of the Payee “B” Record.
For Reporting Payments on Form 1099–S:Amount CodesForm 1099–S— Proceeds
From Real Estate Transactions
A
mountCodeAmountType
2Gross proceeds(See Note.)
5Buyer’s part of real estate tax
August 1, 20052002005–31 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Note: Include payments of timber royalties made under a “pay-as-cut” contract, reportable under IRC section 6050N. If
timber royalties are being reported, enter “TIMBER” in the description field of the “B” Record.
For Reporting Distributions on Form 1099–SA:Amount CodesForm 1099–SA—
Distributions From an HSA, Archer MSA
or Medicare Advantage MSAA
mountCodeAmountType
1Gross distribution
2Earnings on excess contributions
4Fair market value of the account on date
of death
For Reporting Information on Form 5498:Amount CodesForm 5498—IRA
Contribution Information
A
mountCodeAmountType
1IRA contributions (other than amounts in
Amount Codes 2, 3, 4, 8, 9, and A)(See
Notes 1 and 2.)
2Rollover contributions
3Roth conversion amount
4Recharac
terized contributions
5Fair market value of account
6Life insurance cost included in Amount
Code 1
8SEP contributions
9SIMPLE
contributions
ARoth IRA contributions
Note 1: If reporting IRA contributions fora participant in a military operation, see2005 Instructions for Forms 1099–R
and 5498.
Note 2
: Also include employee contributions to an IRA under a SEP plan but not salary reduction contributions. D
O
NOTin
cludeEMPLOYERcontributions; these are included inAmount Code 8.
For Reporting Information on Form 5498–ESA:Amount CodesForm 5498–ESA—
Coverdell ESA Contribution Information
A
mountCodeAmountType
1Cove
rdell ESA contributions
2Rollover contributions
For Reporting Information on Form 5498–SA:Amount CodesForm 5498–SA—HSA,
Archer MSA, or Medicare Advantage
MSA InformationA
mountCodeAmountType
1Employee or self-employed person’s
Archer MSA contributions made in 2005
and 2006 for 2005
2Total contributions made in 2005 (See
current 2005 Instructions.)
3Total HSA/MSA contributions made in
2006 for 2005
4Rollover contributions(See Note.)
5Fair market value of HSA, Archer MSA
or Medicare Advantage MSA account on
Dec. 31, 2005
Note:ThisistheamountofanyrollovermadetothisMSAin2005after a distribution from another MSA. For detailed
information on reporting, see the2005 Instructions for Forms 1099–SA and 5498–SA.
2005–31 I.R.B.201August 1, 2005

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Amount CodesForm W–2G—Certain
Gambling Winnings
For Reporting Payments on Form W–2G:
AmountCodeAmountType
1Grosswinnings
2Federal income tax withheld
7Winnings from identical wagers
42–47Blank6Enter blanks.
48Original File
Indicator
1Required for original files only.Enter “1” (one) if the information is original data.
Otherwise, enter a blank.
49Replacement
File Indicator
1Required for replacement files only.Enter“1”(one)ifthisfileistoreplaceafile
that IRS/ECC-MTB has informed you in writing cannot be processed or the FIRE
System indicated a FILE STATUS of bad. Otherwise, enter a blank.
Note: If selecting the Replacement File Indicator in Position 49, Field Positions 48 and 50 must be blank. Onlyone
indicator may be selected in positions 48, 49, and 50 for each Payer “A” Record.
50Correction File
Indicator
1Required for correction files only.Enter “1” (one) if this file is to correct
information which was previously submitted to IRS/ECC-MTB, was processed, but
contained erroneous information. Any information return which was inadvertently
omitted from a file must be submitted as original. Otherwise, enter a blank.
51Blank1Enter blank.
52Foreign Entity
Indicator
1Enter a “1” (one) if the payer is a foreign entity and income is paid by the foreign
entity to a U.S. resident. Otherwise, enter a blank.
53–92First Payer
Name Line
40Required.Enter the name of the payer whose TIN appears in positions 12-20 of the
“A” Record. Any extraneous information must be deleted. Left-justify information,
and fill unused positions with blanks. (Filers should not enter a transfer agent’s
name in this field. Any transfer agent’s name should appear in the Second Payer
Name Line Field.)
93–132Second Payer
Name Line
40If the Transfer (or Paying) Agent Indicator (position 133) contains a “1” (one),
this field must contain the name of the transfer (or paying) agent. If the indicator
contains a “0” (zero), this field may contain either a continuation of the First Payer
Name Line or blanks. Left-justify information and fill unused positions with blanks.
133Transfer
Agent Indicator
1Required.Identifies the entity in the Second Payer Name Line Field.
CodeMeaning
1The entity in the Second Payer Name Line
Field is the transfer (or paying) agent.
0 (zero)The entity shown isnotthe transfer (or
paying) agent (i.e., the Second Payer Name
Line Field contains either a continuation of
the First Payer Name Line Field or blanks).
134–173Payer
Shipping
Address
40Required.If the Transfer Agent Indicator in position 133 is a “1” (one), enter the
shipping address of the transfer (or paying) agent. Otherwise, enter theactual
shipping address of the payer. The street address should include number, street,
apartment or suite number, or PO Box if mail is not delivered to street address.
Left-justify information, and fill unused positions with blanks.
August 1, 20052022005–31 I.R.B.

Record Name: Payer “A” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
For U.S. addresses,the payer city, state, and ZIP Code must be reported as a 40, 2, and 9-position field, respectively.Filers must
adhere to the correct format for the payer city, state, and ZIP Code.
For foreign addresses,filers may use the payer city, state, and ZIP Code as acontinuous 51-position field. Enter information
in the following order: city, province or state, postal code, and the name of the country. When reporting a foreign address, the
Foreign Entity Indicator in position 52 must contain a “1” (one).
174–213Payer City40Required.If the Transfer Agent Indicator in position 133 is a “1” (one), enter the
city, town, or post office of the transfer agent. Otherwise, enter the city, town, or post
office of the payer. Left-justify information, and fill unused positions with blanks.
Do not enter state and ZIP Code information in this field.
214–215Payer State2Required.Enter the valid U.S. Postal Service state abbreviations. Refer to the chart
of valid state abbreviations in Part A, Sec. 15.
216–224Payer ZIP Code 9Required.Enter the valid nine-digit ZIP Code assigned by the U.S. Postal Service.
If only the first five-digits are known, left-justify information and fill the unused
positions with blanks. For foreign countries, alpha characters are acceptable as long
as the filer has entered a “1” (one) in the Foreign Entity Indicator, located in Field
Position 52 of the “A” Record.
225–239Payer’s Phone
Number &
Extension
15Enter the payer’s phone number and extension. Omit hyphens. Left-justify
information and fill unused positions with blanks.
240–499Blank260Enter blanks.
500–507Record
Sequence
Number
8Required.Enter the number of the record as it appears within your file. The record
sequence number for the “T” record will always be “1” (one), since it is the first
record on your file and you can have onlyone “T” record in a file. Each record,
thereafter, must be incremented by one inascending numerical sequence, i.e., 2, 3,
4, etc. Right-justify numbers with leading zeros in the field. For example, the “T”
record sequence number would appear as “00000001” in the field, the first “A” record
would be “00000002”, the first “B” record, “00000003”, the second “B” record,
“00000004” and so on until you reach the final record of the file, the “F” record.
508–748Blank241Enter blanks.
749–750Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Sec. 5. Payer “A” Record — Record Layout
Record
Type
Payment
Year
BlankPayer
TIN
Payer Name
Control
Last Filing
Indicator
12–56–1112–2021–2425
Combined
Federal/State
Filer
Type
of
Return
Amount
Codes
BlankOriginal
File
Indicator
Replacement
File
Indicator
Correction
File
Indicator
262728–4142–47484950
2005–31 I.R.B.203August 1, 2005

BlankForeign
Entity
Indicator
First
Payer Name
Line
Second Payer
Name
Line
Transfer
Agent
Indicator
Payer
Shipping
Address
515253–9293–132133134–173
Payer
City
Payer
State
Payer
ZIP
Code
Payer’s
Phone
Number and
Extension
BlankRecord
Sequence
Number
BlankBlank or
CR/LF
174–213214–215216–224225–239240–499500–507508–748749–750
Sec. 6. Payee “B” Record — General Field Descriptions and Record Layouts
.01The “B” Record contains the payment information from the information returns. The record layout for field positions 1 through
543 is the same for all types of returns. Field positions 544 through 750 vary for each type of return toaccommodate special fields for
individual forms. In the “B” Record, the filermustallow for allfourteenPaymentAmountFields.For those fields not used, enter
“0s” (zeros).
.02The following specifications include a field in the payee records called “NameControl” in which the first four characters of
the payee’s surname are to be entered by the filer;
(a)If filers are unable to determine the first four characters of the surname, the Name Control Field may be left blank. Com-
pliance with the following will facilitate IRS computer programs in identifying the correct name control:
(1)ThesurnameofthepayeewhoseTINisshown in the “B” Record should always appear first. If, however, the records
have been developed using the first name first, the filer must leave a blank space between the first and last names.
(2)In the case of multiple payees, only the surname of the payee whose TIN (SSN, EIN, ITIN, or ATIN) is shown in the
“B” Record must be present in the First Payee Name Line. Surnames of any other payees may be entered in the Second
Payee Name Line.
.03For all fields marked“Required”, the transmitter must provide the information described under “Description and Remarks”.
For those fields not marked“Required”, the transmitter must allow for the field, but may be instructed to enter blanks or zeros in the
indicated field position(s)and for the indicated length.
.04All records must be a fixed length of 750 positions.
.05A field is also provided in these specifications for Special DataEntries. This field may be used torecord information required
by state or local governments, or for the personal use of the filer. IRS does not use the data provided in the Special Data Entries Field;
therefore, the IRS program does not check the content or format ofthe data entered in this field. It is the filer’s option to use the
Special Data Entry Field.
.06Following the Special Data Entries Field in the “B” Record, payment fields have been allocatedfor State Income Tax Withheld
and Local Income Tax Withheld. These fields are for the convenience of the filers. The information will not be used by IRS/ECC-
MTB.
.07Those payers participating in the Combined Federal/State Filing Program must adhere to all of the specifications in Part A,
Sec. 13, to participate in this program.
.08All alpha characters in the “B” Record must be uppercase.
.09Donotuse decimal points (.) to indicate dollars and cents. Payment Amount Fields must be all numerics.
Record Name: Payee “B” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “B”.
2–5Payment Year4Required.Enter “2005” (unless reporting prior year data; report the
year which applies [2003, 2004, etc.]).
August 1, 20052042005–31 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
6Corrected Return
Indicator
(See Note.)
1Required for corrections only.Indicates a corrected return.
CodeDefinition
GIf this is a one-transactioncorrectionorthefirstof
a two-transaction correction
CIf this is the second transaction of a two-transaction
correction
BlankIf this is not a return being submitted to correct
information already processed by IRS
Note: C, G, and non-coded records must be reported usingseparate Payer “A” Records. Refer to Part A, Sec. 11,
for specific instructions on how to file corrected returns.
7–10Name Control4If determinable, enter the first four characters of the surname of the
person whose TIN is being reported in positions 12–20 of the “B”
Record; otherwise,enter blanks. This usually is the payee. If the
name that corresponds to the TIN is not included in the first or sec-
ond payee name line and the correctname control is not provided,
a backup withholding notice may be generated for the record. Sur-
names of less than four characters should be left-justified, filling
the unused positions with blanks. Special characters and imbedded
blanks should be removed. In the case of a business, other than a sole
proprietorship, use the first four significant characters of the busi-
ness name. Disregard the word “the” when it is the first word of the
name, unless there are only two words in the name. A dash (–) and an
ampersand (&) are the only acceptable special characters. Surname
prefixes are considered, e.g., for Van Elm, the name control would be
VANE. For a sole proprietorship, use the name of the owner to create
the name control and report the owner’s name in positions 248–287,
First Payee Name Line.
Note: Imbedded blanks, extraneous words, titles, and specialcharacters (i.e., Mr., Mrs., Dr., period [.], apostrophe [’])
should be removed from the Payee Name Lines. This information may be dropped during subsequent processing at
IRS/ECC-MTB. A dash (–) and an ampersand (&) are the only acceptable special characters.
The following examples may be helpful to filers in developing the Name Control:
N
ameNameControl
Individuals:
JaneB
rownBROW
John A.L
eeLEE*
James P.E
n,Sr.EN*
John
O
’Neil
ONEI
MaryV
anBurenVANB
JuanD
eJesusDEJE
Gloria A.E
l-RoyEL-R
Mr. JohnS
mithSMIT
JoeM
cCarthyMCCA
P
edroT
orres-Lopes**
T
ORR
MariaL
opez Moreno**LOPE
Binh ToL
aLA*
Nhat ThiP
hamPHAM
2005–31 I.R.B.205August 1, 2005

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
Corporations:
TheFirstNationalBankFIRS
T
heHideawayTHEH
A
&BCafeA&BC
1
1THStreet Inc.11TH
Sole Proprietor:
MarkH
emlock
DBA The Sunshine Club
HEML
MarkD’AllesandroDALL
Partnership:
RobertA
sp
en
and Bess Wi
llow
ASPE
HaroldF
ir,BruceElm,
and Joyce Spruce et al Ptr
FIR*
Estate:
FrankW
hiteEstateWHIT
Estate of SheilaB
lueBLUE
Trusts and Fiduciaries:
D
aisy Corporation Employee
Benefit Trust
DAIS
Trust FBO TheC
herryblossom
Society
CHER
Exempt Organizations:
L
aborer’s Union, AFL-CIOLABO
S
t.Be
rnard’s Methodist
Churc
hBldg.Fund
STBE
*Name Controls of less than four significant characters must be left-justified and blank-filled.
**Fo
r Hispanic names, when two last names are shown for an individual, derive the name control from the first last name.
11Type of TIN1This field is used to identify the Taxpayer Identification Number
(TIN) in positions 12–20 as eitheran Employer Identification Num-
ber (EIN), a Social Security Number (SSN), an Individual Taxpayer
Identification Number (ITIN) or an Adoption Taxpayer Identification
Number (ATIN). Enter the appropriate code from the following table:
CodeTypeofTINTypeofAccount
1EINA business, organization, some
sole proprietors, or other entity
2SS
N
An
individual, including some sole
pr
oprietors
2ITINAn individual required to have a
taxpayer identification number,
but who is not eligible to obtain an
SSN
August 1, 20052062005–31 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
CodeTypeofTINTypeofAccount
2ATINAn adopted individual prior to the
assignment of a social security
number
BlankN/AIf the type of TIN is not deter-
minable, enter a blank
12–20Payee’s
Taxpayer
Identification
Number (TIN)
9Required.Enter the nine-digit Taxpayer Identification Number of
the payee (SSN, ITIN, ATIN, or EIN). If an identification number
has been applied for but not received, enter blanks.Do not enter
hyphens or alpha characters.All zeros, ones, twos, etc., will have
the effect of an incorrect TIN. If the TIN is not available, enter blanks.
Note: If you are required to report payments made through Foreign Intermediaries and Foreign Flow-Through Entities on
Form 1099, see the2005 General Instructions for Forms 1099, 1098, 5498 and W–2Gfor reporting requirements.
21–40Payer’s
Account
Number For
Payee
20Required if submitting more than one information return of the
same type for the same payee.Enter any number assigned by the
payer to the payee that can be used by the IRS to distinguish between
information returns. This number must be unique for each informa-
tion return of the same type for the same payee. If a payee has more
than one reporting of the same document type, it is vital that each re-
porting have a unique account number. For example, if a payer has
3 separate pension distributionsfor the same payee and 3 separate
Forms 1099–R are filed, 3 separate unique account numbers are re-
quired. A payee’s account number may be given a unique sequencing
number, such as 01, 02 or A, B, etc., to differentiate each reported in-
formation return. Do not use the payee’s TIN since this will not make
each record unique. This information is critical when corrections are
filed. This number will be provided with the backup withholding no-
tification and may be helpful in identifying the branch or subsidiary
reporting the transaction. Do not define data in this field in packed
decimal format. If fewer than twenty characters are used, filers may
either left or right-justify, fillingthe remaining positions with blanks.
41–44Payer’s Office
Code
4Enter office code of payer; otherwise, enter blanks. For payers with
multiple locations, this field may be used to identify the location of
the office submitting the information return. This code will also ap-
pear on backup withholding notices.
45–54Blank10Enter blanks.
Payment
Amount Fields
(Must be
numeric)
Required. Filers should allow for all payment amounts. For
those not used, enter zeros.Each payment field must contain 12
numeric characters. Each payment amount must contain U.S. dollars
and cents. The right-most two positions represent cents in the pay-
ment amount fields.Do not enter dollar signs, commas, decimal
points, or negative payments, except those items that reflect a loss
on Form 1099–B or 1099–Q.Positive and negative amounts are in-
dicated by placing a “+” (plus) or “-” (minus) sign in the left-most
position of the payment amount field. A negative over punch in the
unit’s position may be used, instead of a minus sign, to indicate a
negative amount. If a plus sign, minus sign, or negative over punch
is not used, the number is assumed to be positive. Negative over
punch cannot be used in PC created files. Payment amounts must be
right-justified and unused positions must be zero-filled.
2005–31 I.R.B.207August 1, 2005

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
55–66Payment
Amount 1*
12The amount reported in this field represents payments for Amount
Code 1 in the “A” Record.
67–78Payment
Amount 2*
12The amount reported in this field represents payments for Amount
Code 2 in the “A” Record.
79–90Payment
Amount 3*
12The amount reported in this field represents payments for Amount
Code 3 in the “A” Record.
91–102Payment
Amount 4*
12The amount reported in this field represents payments for Amount
Code 4 in the “A” Record.
103-114 Payment
Amount 5*
12The amount reported in this field represents payments for Amount
Code 5 in the “A” Record.
115-126 Payment
Amount 6*
12The amount reported in this field represents payments for Amount
Code 6 in the “A” Record.
127-138 Payment
Amount 7*
12The amount reported in this field represents payments for Amount
Code 7 in the “A” Record.
139-150 Payment
Amount 8*
12The amount reported in this field represents payments for Amount
Code 8 in the “A” Record.
151–162 Payment
Amount 9*
12The amount reported in this field represents payments for Amount
Code 9 in the “A” Record.
163-174 Payment
Amount A*
12The amount reported in this field represents payments for Amount
Code A in the “A” Record.
175-186 Payment
Amount B*
12The amount reported in this field represents payments for Amount
Code B in the “A” Record.
187-198 Payment
Amount C*
12The amount reported in this field represents payments for Amount
Code C in the “A” Record.
199-210 Payment
Amount D*
12The amount reported in this field represents payments for Amount
Code D in the “A” Record.
211-222 Payment
Amount E*
12The amount reported in this field represents payments for Amount
Code E in the “A” Record.
*If there are discrepancies between the payment amount fields and the boxes on the paper forms, the instructions in this
Revenue Procedure must be followed for electronic/magnetic filing.
223–246 Reserved24Enter blanks.
247Foreign
Country
Indicator
1If the address of the payee is in a foreign country, enter a “1”
(one) in this field; otherwise, enter blank. When filers use this in-
dicator, they may use a free format for the payee city, state, and ZIP
Code. Enter information in the following order: city, province or
state, postal code, and the name of the country. Address information
must not appear in the First or Second Payee Name Line.
August 1, 20052082005–31 I.R.B.

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
248–287 First Payee
Name Line
40Required.Enter the name of the payee (preferably surname first)
whose Taxpayer Identification Number (TIN) was provided in posi-
tions 12–20 of the “B” Record. Left-justify and fill unused positions
with blanks. If more space is required for the name, use the Second
Payee Name Line Field. The names of any other payees may be en-
tered in the Second Payee Name Line Field. If reporting information
for a sole proprietor, the individual’s name must always be present on
theFirstPayeeNameLine.Theuseofthebusinessnameisoptional
in the Second Payee Name Line Field. End the First Payee Name
Line with a full word. Use appropriate spacing. Extraneous words,
titles, and special characters (i.e., Mr., Mrs., Dr., period, apostrophe)
should be removed from the Payee Name Lines. This information
may be dropped during subsequent processing at IRS/ECC-MTB. A
dash (-) and an ampersand (&) are the only acceptable special char-
acters for First and Second Payee Name Lines.
Note: If you are required to report payments made through Foreign Intermediaries and Foreign Flow-Through Entities on
Form 1099, see the2005 General Instruction for Forms 1099, 1098, 5498, and W–2Gfor reporting requirements.
288–327 Second Payee
Name Line
40If there are multiple payees (e.g.,partners, joint owners, or spouses),
use this field for those names not associated with the TIN provided
in positions 12–20 of the “B” Record, or if not enough space was
provided in the First Payee Name Line, continue the name in this
field.Do not enter address information.It is important that filers
provide as much payee information to IRS/ECC-MTB as possible
to identify the payee associated with the TIN. Left-justify and fill
unused positions with blanks.SeeNoteaboveinFirstPayeeName
Line.
328–367 Blank40Enter blanks.
368–407 Payee Mailing
Address
40Required.Enter mailing address of payee. Street address should
include number, street, apartment or suite number, or PO Box if mail
is not delivered to street address. Left-justify information and fill
unused positions with blanks. This fieldmust notcontain any data
other than the payee’s mailing address.
408–447 Blank40Enter blanks.
448–487 Payee City40Required.Enter the city, town or post office. Left-justify informa-
tion and fill the unused positions with blanks. Enter APO or FPO if
applicable. Do not enter state and ZIP Code information in this field.
488–489 Payee State2Required.Enter the valid U.S. Postal Service state abbreviations for
states or the appropriate postal identifier (AA, AE, or AP) described
in Part A, Sec. 15.
490–498 Payee ZIP
Code
9Required.Enter the valid ZIP Code (nine or five-digit) assigned
by the U.S. Postal Service. If only the first five-digits are known,
left-justify information and fill the unused positions with blanks. For
foreign countries, alpha characters are acceptable as long as the filer
has entered a “1” (one) in the Foreign Country Indicator, located in
position 247 of the “B” Record.
499Blank1Enter blank.
2005–31 I.R.B.209August 1, 2005

Record Name: Payee “B” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
500–507 Record
Sequence
Number
8Required.Enter the number of the record as it appears within your
file. The record sequence number for the “T” record will always be
“1” (one), since it is the first record on your file and you can have
only one “T” record in a file. Each record, thereafter, must be in-
cremented by one in ascending numerical sequence, i.e., 2, 3, 4, etc.
Right-justify numbers with leading zeros in the field. For example,
the “T” record sequence numberwould appear as “00000001” in the
field, the first “A” record would be “00000002”, the first “B” record,
“00000003”, the second “B” record, “00000004” and so on until you
reach the final record of the file, the “F” record.
508–543 Blank36Enter blanks.
Standard Payee “B” Record Format For All Types of Returns, Positions 1–543
Record
Type
Payment
Year
Corrected
Return
Indicator
Name
Control
Type of
TIN
Payee’s
TIN
Payer’s
Account
Number For
Payee
12–567–101112–2021–40
Payer’s
Office Code
BlankPayment
Amount
1
Payment
Amount
2
Payment
Amount
3
Payment
Amount
4
Payment
Amount
5
41–4445–5455–6667–7879–9091–102103–114
Payment Amount
6
Payment Amount
7
Payment Amount
8
Payment Amount
9
Payment Amount
A
Payment Amount
B
115–126127–138139–150151–162163–174175–186
Payment
Amount C
Payment
Amount D
Payment
Amount E
ReservedForeign
Country
Indicator
First
Payee
Name
Line
Second
Payee
Name
Line
Blank
187–198199–210211–222223–246247248–287288–327328–367
Payee
Mailing
Address
BlankPayee
City
Payee
State
Payee
ZIP Code
BlankRecord
Sequence
Number
Blank
368–407408–447448–487488–489490–498499500–507508–543
August 1, 20052102005–31 I.R.B.

The following sections define the field positions for the different types of returns in the Payee “B” Record (positions
544-750):
(1) Form 1098
(2) Form 1098–C
(3) Form 1098–E
(4) Form 1098–T
(5) Form 1099–A
(6) Form 1099–B
(7) Form 1099–C
(8) Form 1099–CAP
(9) Form 1099–DIV*
(10) Form 1099–G*
(11) Form 1099–H
(12) Form 1099–INT*
(13) Form 1099–LTC
(14) Form 1099–MISC*
(15) Form 1099–OID*
(16) Form 1099–PATR*
(17) Form 1099–Q
(18) Form 1099–R*
(19) Form 1099–S
(20) Form 1099–SA
(21) Form 5498*
(22) Form 5498–ESA
(23) Form 5498–SA
(24) Form W–2G
* These forms may be filed through the Combined Federal/State Filing Program. IRS/ECC-MTB will forward these records to
participating states for filers who have been approved for theprogram. See Part A, Sec. 13, for information about the program,
including specific codesfor the record layouts.
(1) Payee “B” Record — Record Layout Positions 544-750 for Form 1098
Field
Position
Field TitleLength Description and Remarks
544–662 Blank119Enter blanks.
663–722 Special Data Entries60This portion of the “B” Record may be used to record information for
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
2005–31 I.R.B.211August 1, 2005

Payee “B” Record — Record LayoutPositions 544–750 for Form 1098
BlankSpecial
Data
Entries
BlankBlank
or CR/LF
544–662663–722723–748749–750
(2) Payee “B” Record — Record Layout Positions 544–750 for Form 1098–C
Field
Position
Field TitleLength Description and Remarks
544–545 Blank2Enter blanks.
546Transaction
Indicator
1Enter “1” (one) if the amount reported in Payment Amount Field
4 is an arm’s length transaction to an unrelated party. Otherwise,
enter a blank.
547Transfer After
Improvements
Indicator
1Enter “1” (one) if the vehicle will not be transferred for money, other
property, or services before completion of material improvements or
significant intervening use. Otherwise, enter a blank.
548Transfer Below
Fair Market Value
Indicator
1Enter “1” (one) if the vehicle is transferred to a needy individual for
significantly below fair market value. Otherwise, enter a blank.
549–587 Make, Model,
Year
39Enter the make, model and year of vehicle. Left-justify and fill unused
positions with blanks.
588–612 Vehicle or Other
Identification
Number
25Enter the vehicle or other identification number of the donated vehi-
cle. Left-justify and fill unused positions with blanks.
613–651 Vehicle
Description
39Enter a description of material improvements or significant interven-
ing use and duration of use. Left-justify and fill unused positions with
blanks.
652–659 Date of
Contribution
8Enter the date the contribution was made to an organization, in the
format YYYYMMDD (e.g., January 5, 2005, would be 20050105).Do
not enter hyphens or slashes.
660–662 Blank3Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record may be used to record information for
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–730 Date of Sale8Enter the date of sale, in the format YYYYMMDD (e.g., January 5,
2005, would be 20050105).Do not enter hyphens or slashes.
731–748 Blank18Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
August 1, 20052122005–31 I.R.B.

Payee “B” Record — Record Layout Positions 544-750 for Form 1098–C
BlankTransaction
Indicator
Transfer After
Improvements
Indicator
Transfer Below
Fair Market
Value Indicator
Make,
Model, Year
Vehicle or
Other
Identification
Number
544–545546547548549–587588–612
Vehicle
Description
Date of
Contribution
BlankSpecial Data
Entries
Date of SaleBlankBlank
613–651652–659660–662663–722723–730731–748749–750
(3) Payee “B” Record — Record Layout Positions 544-750 for Form 1098–E
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Origination
Fees/Capitalized
Interest Indicator
1Enter “1” (one) if the amount reported in Payment Amount Field 1
includes loan origination fees and/or capitalized interest. Otherwise,
enter a blank.
548-662 Blank115Enter blanks.
663-722 Special
Data Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1098–E
BlankOrigination
Fees/Capitalized
Interest Indicator
BlankSpecial Data
Entries
BlankBlank
or CR/LF
544–546547548–662663–722723–748749–750
(4) Payee “B” Record — Record Layout Positions 544-750 for Form 1098–T
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Half-time Student
Indicator
1Enter “1” (one) if the student was at least a half-time student during
any academic period that began in 2005. Otherwise, enter a blank.
548Graduate Student
Indicator
1Enter “1” (one) if the student is enrolled exclusively in a graduate
level program. Otherwise, enter a blank.
2005–31 I.R.B.213August 1, 2005

(4) Payee “B” Record — Record Layout Positions 544-750 for Form 1098–T (Continued)
Field
Position
Field TitleLength Description and Remarks
549Academic Period
Indicator
1Enter “1” (one) if the amount in Payment Amount Field 1 or
Payment Amount Field 2 includes amounts for an academic period
beginning January through March2006. Otherwise, enter a blank.
550–662 Blank113Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1098–T
BlankHalf-time
Student
Indicator
Graduate
Student
Indicator
Academic
Period
Indicator
BlankSpecial
Data Entries
BlankBlank or
CR/LF
544–546547548549550–662663–722723–748749–750
(5) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–A
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Personal Liability
Indicator
1Enter the appropriate indicator from the table below:
IndicatorUsage
1Borrower was personally liable
for repayment of the debt.
BlankBorrower was not personally
liable for repayment of the debt.
548–555 Date of Lender’s
Acquisition or
Knowledge of
Abandonment
8Enter the acquisition date of thesecured property or the date the
lender first knew or had reason to know the property was abandoned,
in the format YYYYMMDD (e.g., January 5, 2005, would be
20050105).Do not enter hyphens or slashes.
556–594 Description of
Property
39Enter a brief description of the property. For real property, enter
the address, or, if the address does not sufficiently identify the
property, enter the section, lot and block. For personal property,
enter the type, make and model (e.g., Car-1999 Buick Regal or
Office Equipment). Enter “CCC” for crops forfeited on Commodity
Credit Corporation loans. If fewer than 39 positions are required,
left-justify information and fill unused positions with blanks.
595–662 Blank68Enter blanks.
August 1, 20052142005–31 I.R.B.

(5) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–A (Continued)
Field
Position
Field TitleLength Description and Remarks
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for the
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–A
BlankPersonal Liability
Indicator
Date of Lender’s
Acquisition or
Knowledge of
Abandonment
Description
of
Property
Blank
544–546547548–555556–594595–662
Special
Data
Entries
BlankBlank
or CR/LF
663–722723–748749–750
(6) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–B
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547Gross Proceeds
Indicator
1Enter the appropriate indicator from the following table, to identify
the amount reported in Amount Code 2; otherwise, enter a blank.
IndicatorUsage
1Gross proceeds
2Gross proceeds less commissions and options
premiums
548–555 Date of Sale or
Exchange
8For broker transactions, enter the trade date of the transaction.
For barter exchanges, enter the date when cash, property, a
credit, or scrip is actually or constructively received in the format
YYYYMMDD (e.g., January 5, 2005, would be 20050105). Enter
blanks if this is an aggregate transaction.Do not enter hyphens
or slashes.
2005–31 I.R.B.215August 1, 2005

(6) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–B (Continued)
Field
Position
Field TitleLength Description and Remarks
556–568 CUSIP Number13For broker transactions only, enter the CUSIP (Committee on
Uniform Security Identification Procedures)numberoftheitem
reported for Amount Code 2 (stocks, bonds, etc.). Enter blanks if
this is an aggregate transaction.Enter“0s”(zeros)ifthenumberis
not available. Right-justify information and fill unused positions
with blanks.
569–607 Description39If fewer than 39 characters are required, left-justify information and
fill unused positions with blanks. For broker transactions, enter a
brief description of the disposition item (e.g., 100 shares of XYZ
Corp). For regulated futures andforward contracts, enter “RFC” or
other appropriate description. For bartering transactions, show the
services or property provided.
608–615 Number of
Shares
Exchanged
8Enter the number of shares of the corporation’s stock which
were exchanged in the transaction. Report whole number only.
Right-justify information and fill unused positions with zeros.
616–625 Classes of
Stock
Exchanged
10Enter the class of stock that was exchanged. Left-justify the
information and fill unused positions with blanks.
626Recipient
Indicator
1Enter a “1” (one) if recipient is unable to claim a loss on their tax
return. Otherwise, enter a blank.
627–662 Blank36Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries field.
747–748 Blank2Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Note: Report the Corporation’s Name, Address, City, State, and ZIP in the Special Data Entry field.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–B
Second
TIN Notice
(Optional)
BlankGross
Proceeds
Indicator
Date
of Sale
or Exchange
CUSIP
Number
DescriptionNumber of
Shares
Exchanged
544545–546547548–555556–568569–607608–615
August 1, 20052162005–31 I.R.B.

Payee “B” Record — Record Layout Positions 544-750 for Form 1099–B (Continued)
Classes of
Stock
Exchanged
Recipient
Indicator
BlankSpecial
Data Entries
State
Income
Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
616–625626627–662663–722723–734735–746747–748749–750
(7) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–C
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Bankruptcy
Indicator
1Enter “1” (one) to indicate the debt was discharged in bankruptcy, if
known. Otherwise, enter a blank.
548–555 Date Canceled8Enter the date the debt was canceled in the format of YYYYMMDD
(e.g., January 5, 2005, would be 20050105).Do not enter hyphens
or slashes.
556–594 Debt
Description
39Enter a description of the origin of the debt, such as student loan,
mortgage, or credit card expenditure. If a combined Form 1099–C
and 1099–A is being filed, also enter a description of the property.
595–662 Blank68Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–C
BlankBankruptcy
Indicator
Date
Canceled
Debt
Description
BlankSpecial
Data
Entries
544–546547548–555556–594595–662663–722
BlankBlank
or CR/LF
723–748749–750
(8) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–CAP
Field
Position
Field TitleLength Description and Remarks
544–547 Blank4Enter blanks.
2005–31 I.R.B.217August 1, 2005

(8) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–CAP (Continued)
Field
Position
Field TitleLength Description and Remarks
548–555 Date of Sale or
Exchange
8Enter the date the stock was exchanged for cash, stock in the
successor corporation, or otherproperty received in the format
YYYYMMDD (e.g., January 5, 2005, would be 20050105).Do
not enter hyphens or slashes.
556–607 Blank52Enter blanks.
608–615 Number of
Shares
Exchanged
8Enter the number of shares of the corporation’s stock which
were exchanged in the transaction. Report whole number only.
Right-justify information and fill unused positions with zeros.
616–625 Classes of Stock
Exchanged
10Enter the class of stock that was exchanged. Left- justify the
information and fill unused positions with blanks.
626Blank1Enter a blank.
627Shareholder
Indicator
1Enter a “1” (one) if the shareholder cannot take a loss on their tax
return. Otherwise, enter a blank.
628–662 Blank35Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–CAP
BlankDate of Sale or
Exchange
BlankNumber of Shares
Exchanged
Classes of Stock
Exchanged
544–547548–555556–607608–615616–625
BlankShareholder
Indicator
BlankSpecial Data
Entries
BlankBlank
or CR/LF
626627628–662663–722723–748749–750
(9) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–DIV
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547–586 Foreign Country
or U.S.
Possession
40Enter the name of the foreign country or U.S. possession to which
the withheld foreign tax (Amount Code C) applies. Otherwise, enter
blanks.
August 1, 20052182005–31 I.R.B.

(9) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–DIV (Continued)
Field
Position
Field TitleLength Description and Remarks
587–662 Blank76Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–DIV
Second
TIN
Notice
(Optional)
BlankForeign
Country
or U.S.
Possession
BlankSpecial
Data Entries
544545–546547–586587–662663–722
State Income Tax
Withheld
Local Income Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
723–734735–746747–748749–750
(10) Payee “B” Record — Record Layout Positions 544-750 for Form 1099–G
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
2005–31 I.R.B.219August 1, 2005

(10) Payee “B” Record — Record Layout Positions 544-750 for Form1099–G (Continued)
Field
Position
Field TitleLength Description and Remarks
547Trade or
Business
Indicator
1Enter “1” (one) to indicate the state or local income tax refund,
credit, or offset (Amount Code 2) is attributable to income tax that
applies exclusively to income from a trade or business.
IndicatorUsage
1Income tax refund applies exclusively to a trade
or business.
BlankIncome tax refundis a general tax refund.
548–551 Tax Year of
Refund
4Enter the tax year for which the refund, credit, or offset (Amount
Code 2) was issued.The tax year must reflect the tax year for
which the payment was made, not the tax year of Form 1099–G.
The tax year must be in the four-position format of YYYY (e.g.,
2005).The valid range of years for the refund is 1995 through 2004.
Note: This data is not considered prior year data since it is required to be reported in the current tax year. Do NOT enter
“P” in field position 6 of theTransmitter “T” Record.
552–662 Blank111Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. You may enter your routing and transit number
(RTN) here. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–G
BlankTrade or
Business
Indicator
Tax Year
of
Refund
BlankSpecial Data
Entries
State
Income
Tax
Withheld
544–546547548–551552–662663–722723–734
August 1, 20052202005–31 I.R.B.

Payee “B” Record — Record Layout Positions 544-750 for Form 1099–G (Continued)
Local Income
Tax Withheld
Combined
Federal/State
Code
Blank
or CR/LF
735–746747–748749–750
(11) Payee “B
” Record — Record Layout Positions 544-750 for Form 1099–H
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547–548 Number of
Months Elig
ible
2Required.E
nter the total number of months recipient is eligible for
health ins
urance advance payments. Right-justify and blank fill
any remain
ing position.
549–662 Blank114Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter bla
nks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544-750 for Form 1099–H
BlankNumber
of
Months
Eligible
BlankSpecia
lData
Entrie
s
BlankBlank
or CR/L
F
544–546547–548549–662663–722723–748749–750
(12) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–INT
Field
Posit
ion
Field
Title
Lengt
h
Descr
iption and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547–5
86
Forei
gn Country
or U.S
.
Posse
ssion
40Enter
the name of the foreign country or U.S. possession to which
the w
ithheld foreign tax (Amount Code 6) applies. Otherwise, enter
blan
ks.
587–662 Blank76Enter blanks.
2005–31 I.R.B.221August 1, 2005

(12) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–INT (Continued)
Field
Position
Field TitleLength Description and Remarks
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. You may enter your routing and transit number
(RTN) here. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–INT
Second
TIN
Notice
(Optional)
BlankForeign
Country
or U.S.
Possession
BlankSpecial
Data Entries
State Income
Tax Withheld
544545–546547–586587–662663–722723–734
Local
Income
Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
735–746747–748749–750
(13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
August 1, 20052222005–31 I.R.B.

(13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC (Continued)
Field
Position
Field TitleLength Description and Remarks
547Type of
Payment
Indicator
1Enter the appropriate indicator from the following table; otherwise,
enter blanks.
IndicatorUsage
1Per diem
2Reimbursed amount
548–556 Social Security
Number of
Insured
9Required.Enter the Social Security Number of the insured.
557–596 Name of
Insured
40Required.Enter the name of the insured.
597–636 Address of
Insured
40Required.Enter the address of the insured. Street address should
include number, street, apartment or suite number (or PO Box if
mail is not delivered to street address). Left-justify information and
fill unused positions with blanks. This fieldmust notcontain any
data other than payee’s address.
ForU.S.addresses,the payee city, state, and ZIP Code must be reported as a 40, 2, and 9-position field, respectively.Filers
must adhere to the correct format for the insured’s city, state, and ZIP Code. For foreign addresses,filers may use the
insured’s city, state, and ZIP Code as a continuous 51-position field. Enter information in the following order: city, province or
state, postal code, and the name of the country. When reporting a foreign address, the Foreign Country Indicator in position 247
must contain a “1” (one).
637–676 City of Insured40Required.Enter the city, town, or post office. Left-justify
information and fill the unused positions with blanks. Enter APO
or FPO, if applicable. Do not enter state and ZIP Code information
in this field.
677–678 State of Insured2Required.Enter the valid U.S. Postal Service state abbreviations
for states or the appropriate postal identifier (AA, AE, or AP)
described in Part A, Sec. 15.
679–687 ZIP Code of
Insured
9Required.Enter the valid nine-digit ZIP Code assigned by the U.S.
Postal Service. If only the first five-digits are known, left-justify
information and fill the unused positions with blanks. For foreign
countries, alpha characters areacceptable as long as the filer has
entered a “1” (one) in the Foreign Country Indicator, located in
position 247 of the “B” Record.
688Status of Illness
Indicator
(Optional)
1Enter the appropriate code from the table below to indicate the status
of the illness of the insured; otherwise, enter blank.
IndicatorUsage
1Chronically ill
2Terminally ill
689–696 Date Certified
(Optional)
8Enter the latest date of a doctor’scertification of the status of the
insured’s illness. The format of the date is YYYYMMDD (e.g.,
January 5, 2005, would be 20050105).Do not enter hyphens or
slashes.
2005–31 I.R.B.223August 1, 2005

(13) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC (Continued)
Field
Position
Field TitleLength Description and Remarks
697Qualified
Contract
Indicator
(Optional)
1Enter a “1” (one) if benefits werefrom a qualified long-term care
insurance contract; otherwise, enter blank.
698–722 Blank25Enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled.
747–748 Blank2Enter blanks.
749–750 Blank2Enter blank or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–LTC
BlankType of
Payment
Indicator
SSN of
Insured
Name of
Insured
Address
of Insured
City of
Insured
State of
Insured
ZIP Code
of Insured
544–546547548–556557–596597–636637–676677–678679–687
Status of
Illness
Indicator
(Optional)
Date
Certified
(Optional)
Qualified
Contract
Indicator
(Optional)
BlankState
Income
Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
688689–696697698–722723–734735–746747–748749–750
(14) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–MISC
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
547Direct Sales
Indicator
(See Note.)
1
Enter a “1” (one) to indicate sales of $5,000 or more of consumer
products to a person on a buy-sell, deposit-commission, or any other
commission basis for resale anywhere other than in a permanent
retail establishment. Otherwise, enter a blank.
Note: If reporting a direct sales indicator only, use Type ofReturn“A”inFieldPosition27,andAmountCode1inField
Position 28 of the Payer “A” Record. All payment amount fields in the Payee “B” Record will contain zeros.
548–662 Blank115Enter blanks.
August 1, 20052242005–31 I.R.B.

(14) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–MISC (Continued)
Field
Position
Field TitleLength Description and Remarks
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not used, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–MISC
Second
TIN
Notice
(Optional)
BlankDirect
Sales Indicator
BlankSpecial
Data Entries
State Income
Tax
Withheld
Local
Income
Tax
Withheld
544545–546547548–662663–722723–734735–746
Combined
Federal/State
Code
Blank
or CR/LF
747–748749–750
(15) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–OID
Field
Position
Field TitleLength Description and Remarks
544Second TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–546 Blank2Enter blanks.
2005–31 I.R.B.225August 1, 2005

(15) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–OID (Continued)
Field
Position
Field TitleLength Description and Remarks
547–585 Description39Required.Enter the CUSIP number, if any. If there is no CUSIP
number, enter the abbreviation for the stock exchange and issuer,
the coupon rate, and year (must be 4-digit year) of maturity (e.g.,
NYSE XYZ 12/2005). Show the name of the issuer if other than
the payer. If fewer than 39 characters are required, left-justify
information and fill unused positions with blanks.
586–662 Blank77Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table l. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–OID
Second
TIN
Notice
(Optional)
BlankDescriptionBlankSpecial
Data Entries
State
Income
Tax
Withheld
544545–546547–585586–662663–722723–734
Local
Income
Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
735–746747–748749–750
August 1, 20052262005–31 I.R.B.

(16) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–PATR
Field
Position
Field TitleLength Description and Remarks
544Second
TIN
Notice
(Optional)
1Enter “2” (two) to indicate notification by IRS twice within three
calendar years that the payee provided an incorrect name and/or
TIN combination; otherwise, enter a blank.
545–662 Blank118Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If field is not utilized, enter blanks
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for 1099–PATR
Second
TIN
Notice
(Optional)
BlankSpecial
Data Entries
State Income
Tax
Withheld
Local
Income Tax
Withheld
Combined
Federal/State
Code
Blank
or CR/LF
544545–662663–722723–734735–746747–748749–750
(17) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–Q
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Trustee to
Trustee
Transfer
Indicator
1Required.Enter a “1” (one) if reporting a trustee to trustee transfer,
otherwise, enter blank.
2005–31 I.R.B.227August 1, 2005

(17) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–Q (Continued)
Field
Position
Field TitleLength Description and Remarks
548Type of
Tuition
Payment
1Required.Enter the appropriate code from the table below to
indicate the type of tuition payment, otherwise, leave blank.
IndicatorUsage
1Private program payment
2State program payment
3Coverdell ESA contribution
549Designated
Beneficiary
1Required.Enter a “1” (one) if the recipient is not the designated
beneficiary otherwise, enter a blank.
550–662 Blank113Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–Q
BlankTrustee to
Trustee
Rollover
Indicator
Type of
Tuition
Payment
Designated
Beneficiary
BlankSpecial
Data Entries
BlankBlank or
CR/LF
544–546547548549550–662663–722723–748749–750
(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R
Field
Position
Field TitleLength Description and Remarks
544Blank1Enter blank.
August 1, 20052282005–31 I.R.B.

(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position
Field TitleLength Description and Remarks
545–546 Distribution Code
(For a detailed explanation of
distribution codes, see the2005
Instructions for Forms 1099–R
and 5498.)
See chart at the end of this record
layout for a diagram of valid
combinations of Distribution
Codes.
2Required.Enter at least one distribution code from the table below.
More than one code may apply. If only one code is necessary, it
must be entered in position 545 and position 546 will be blank.
When using Code P for an IRA distribution under section 408(d)(4)
of the Internal Revenue Code, the filer may also enter Code 1, 2, 4,
or J if applicable. Only three numeric combinations are acceptable,
Codes 8 and 1, 8 and 2, and 8 and 4, on one return. These three
combinations can be used only if both codes apply to the distribution
being reported. If more than one numeric code is applicable to
different parts of a distribution,report two separate “B” Records.
Distribution Codes 3, 5, 6, 9, E, F, N, Q, R, S and T cannot be
used with any other codes. Distribution Code G may be used with
Distribution Code 4 only if applicable.
CodeCategory
1*Early distribution, no known exception (in most
cases, under age 59
1
/2)
2*Early distribution, exception applies (Under age
59
1
/2)
3*Disability
4*Death
5*Prohibited transaction
6Section 1035 exchange (a tax-free exchange of life
insurance, annuity, or endowment contracts)
7*Normal distribution
8*Excess contributions plus earnings/excess
deferrals (and/or earnings) taxable in2005
9Cost of current life insurance protection (premiums
paid by a trustee or custodian for current insurance
protection)
AMay be eligible for 10-year tax option
D*Excess contributions plus earnings/excess
deferrals taxable in2003
EExcess annual additions under section 415/certain
excess amounts under section 403(b) plans
FCharitable gift annuity
GDirect rollover and rollover contribution
JEarly distribution from a Roth IRA. (This code may
be used with Code 8 or P.)
LLoans treated as deemed distributions under section
72(p)
NRecharacterized IRA contribution made for2005
P*Excess contributions plus earnings/excess
deferrals taxable in2004
2005–31 I.R.B.229August 1, 2005

(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position
Field TitleLength Description and Remarks
CodeCategory
QQualified distribution from a Roth IRA.
(Distribution from a Roth IRA when the 5-year
holding period has been met, and the recipient has
reached 59
1
/2, has died, or is disabled.)
RRecharacterized IRA contribution made for2004
(See Note.)
S*EarlydistributionfromaSIMPLEIRAinfirst2
years, no known exception
TRoth IRA distribution, exception applies if
participant has reached 59
1
/2, died or is disabled.
*If reporting a traditional IRA, SEP, or SIMPLE distribution or a Roth conversion, use the IRA/SEP/SIMPLE Indicator
of “1” (one) in position 548 of the Payee “B” Record.
Note: The trustee of the first IRA must report the recharacterization as a distribution on Form 1099–R (and the original
contribution and its character on Form 5498).
547Taxable Amount
Not Determined
Indicator
1Enter “1” (one) only if the taxable amount of the payment entered
for Payment Amount Field 1 (Gross distribution) of the “B” Record
cannot be computed; otherwise, enter blank. (If Taxable Amount
Not Determined Indicator is used, enter “0’s” [zeros] in Payment
Amount Field 2 of the Payee “B” Record.) Please make every effort
to compute the taxable amount.
548IRA/SEP/ SIMPLE
Indicator
1Enter “1” (one) for a traditional IRA, SEP, or SIMPLE distribution
or Roth conversion; otherwise, enter a blank.(See Note.)If the
IRA/SEP/SIMPLE Indicator is used, enter the amount of the Roth
conversion or distribution in Payment Amount Field A of the Payee
“B” Record.Do not use the indicator for a distribution from a
Roth or for an IRA recharacterization.
Note: For Form 1099–R, generally, report the Roth conversion or total amount distributed from a traditional IRA, SEP,
or SIMPLE in Payment Amount Field A (traditional IRA/SEP/SIMPLE distribution or Roth conversion), as well as
Payment Amount Field 1 (Gross Distribution) of the “B” Record. Refer to the2005 Instructions for Forms 1099–R and
5498forexceptions(Box2ainstructions).
549Total Distribution
Indicator
(See Note.)
1Enter a “1” (one) only if the payment shown for Distribution
Amount Code 1 is a total distribution that closed out the account;
otherwise, enter a blank.
Note: A total distribution is one or more distributions within one tax year in which the entire balance of the account is
distributed. Any distribution that does not meet this definition is not a total distribution.
550–551 Percentage of Total
Distribution
2Use this field when reporting a total distribution to more than
one person, such as when a participant is deceased and a payer
distributes to two or more beneficiaries. Therefore, if the percentage
is 100, leave this field blank. If the percentage is a fraction, round
off to the nearest whole number (for example, 10.4 percent will be
10 percent; 10.5 percent will be 11 percent). Enter the percentage
received by the person whose TIN is included in positions 12–20
of the “B” Record. This field must be right-justified, and unused
positions must be zero-filled. If not applicable, enter blanks. Filers
are not required to enter this information for any IRA distribution or
for direct rollovers.
August 1, 20052302005–31 I.R.B.

(18) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R (Continued)
Field
Position
Field TitleLength Description and Remarks
552–662 Blank111Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record may be used to record information
for state or local government reporting or for the filer’s own
purposes. The state/payer’s statenumber, state distribution, name of
locality, and/or local distributioncan be entered in this field. Payers
should contact the state or local revenue departments for filing
requirements. If this field is not utilized, enter blanks.
723–734 State Income Tax
Withheld
12State income tax withheld is for the convenience of the filer. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income Tax
Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
2005–31 I.R.B.231August 1, 2005

FORM 1099–R DISTRIBUTION CHART 2005
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–R
BlankDistribution
Code
Taxable
Amount Not
Determined
Indicator
IRA/SEP/SIMPLE
Indicator
Total
Distribution
Indicator
Percentage
of Total
Distribution
544545–546547548549550–551
BlankSpecial
Data Entries
State Income Tax
Withheld
Local Income
Tax Withheld
Combined
Federal/State
Code
Blank
or CR/LF
552–662663–722723–734735–746747–748749–750
(19) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–S
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
August 1, 20052322005–31 I.R.B.

(19) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–S (Continued)
Field
Position
Field TitleLength Description and Remarks
547Property or
Services
Indicator
1Required.Enter “1” (one) if the transferor received or will receive
property (other than cash and consideration treated as cash in
computing gross proceeds) or services as part of the consideration
for the property transferred. Otherwise, enter a blank.
548–555 Date of Closing8Required.Enter the closing date in the format YYYYMMDD (e.g.,
January 5, 2005, would be 20050105).Do not enter hyphens or
slashes.
556–594 Address or Legal
Description
39Required.Enter the address of the property transferred (including
city, state, and ZIP Code). If the address does not sufficiently
identify the property, also enter alegal description, such as section,
lot, and block. For timber royalties, enter “TIMBER.” If fewer than
39 positions are required, left-justify information and fill unused
positions with blanks.
595–662 Blank68Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income Tax
Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax
Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Blank2Enter blank.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 1099–S
BlankProperty
or Services
Indicator
Date of
Closing
Address
or Legal
Description
BlankSpecial
Data Entries
544–546547548–555556–594595–662663–722
State Income
Tax Withheld
Local Income
Tax Withheld
BlankBlank
or CR/LF
723–734735–746747–748749–750
2005–31 I.R.B.233August 1, 2005

(20) Payee “B” Record — Record Layout Positions 544–750 for Form 1099–SA
Field
Position
Field TitleLength Description and Remarks
544Blank1Enter blank.
545Distribution
Code
1Required.Enter the applicable code to indicate the type of payment.
CodeCategory
1Normal distribution
2Excess contribution
3Disability
4Death distribution otherthan code 6 (This includes
distributions to a spouse, nonspouse, or estate
beneficiary in the year of death and to an estate
after the year of death.)
5Prohibited transaction
6Death distributionafteryearofdeathto a
nonspouse beneficiary. (Do not use for distribution
to an estate.)
546Blank1Enter a blank.
547Medicare
Advantage
MSA
Indicator
1Enter “1” (one) if distributions are from a Medicare Advantage
MSA. Otherwise, enter a blank.
548HSA Indicator1Enter “1” (one) if distributions are from a HSA.Otherwise, enter
a blank.
549Archer MSA
Indicator
1Enter “1” (one) if distributions are from an Archer MSA. Otherwise,
enter a blank.
550–662 Blank113Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting statetax withheld, this field may be used
as a continuation of the Special Data Entries Field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be
used as a continuation of the Special Data Entries Field.
747–748 Blank2Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
August 1, 20052342005–31 I.R.B.

Payee “B” Record — Record Layout Positions 544–750 for Form 1099–SA
BlankDistribution
Code
BlankMedicare
Advantage
MSA
Indicator
HSA
Indicator
Archer
MSA
Indicator
BlankSpecial
Data Entries
544545546547548549550–662663–722
State
Income Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
723–734735–746747–748749–750
(21) Payee “B” Record — Record Layout Positions 544–750 for Form 5498
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547IRAIndicator
(Individual
Retirement
Account)
1Required, if applicable.Enter “1” (one) if reporting a rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for an
IRA. Otherwise, enter a blank.
548SEP
Indicator
(Simplified
Employee
Pension)
1Required, if applicable.Enter “1” (one) if reporting rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for a SEP.
Otherwise, enter a blank.
549SIMPLEIndicator
(SavingsIncentive
MatchPlan for
Employees)
1Required, if applicable.Enter “1” (one) if reporting a rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for a
SIMPLE. Otherwise, enter a blank
550Roth IRA
Indicator
1Required, if applicable.Enter “1” (one) if reporting a rollover
(Amount Code 2) or Fair Market Value (Amount Code 5) for a Roth
IRA. Otherwise, enter a blank.
551RMD Indicator1Required.Enter “1” (one) if reporting RMD for 2006. Otherwise,
enter a blank.
552–662 Blank111Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record may be used to record information
for state or local government reporting or for the filer’s own
purposes. Payers should contact the state or local revenue
departments for filing requirements. If this field is not utilized, enter
blanks.(See Note.)
723–746 Blank24Enter blanks.
747–748 Combined
Federal/State
Code
2If this payee record is to be forwardedtoastateagencyaspartof
the Combined Federal/State Filing Program, enter the valid state
code from Part A, Sec. 13, Table 1. For those payers or states not
participating in this program, enter blanks.
2005–31 I.R.B.235August 1, 2005

(21) Payee “B” Record — Record Layout Positions 544–750 for Form 5498 (Continued)
Field
Position
Field TitleLength Description and Remarks
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Note: For delayed contributions for U.S. Armed Forces, usethe Special Data Entry field to report the year for which the
contribution was made, the amount of the contribution and one of the indicators as outlined in the current Instructions for
Forms 1099–R and 5498.
Payee “B” Record — Record LayoutPositions 544–750 for Form 5498
BlankIRA
Indicator
SEP
Indicator
SIMPLE
Indicator
Roth
IRA
Indicator
RMD
Indicator
544–546547548549550551
BlankSpecial
Data
Entries
BlankCombined
Federal/State
Code
Blank
or CR/LF
552–662663–722723–746747–748749–750
(22) Payee “B” Record — Record Layout Positions 544–750 for Form 5498–ESA
Field
Position
Field TitleLength Description and Remarks
544–662 Blank119Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 5498–ESA
BlankSpecial Data
Entries
BlankBlank
or CR/LF
544–662663–722723–748749–750
(23) Payee “B” Record — Record Layout Positions 544–750 for Form 5498–SA
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
August 1, 20052362005–31 I.R.B.

(23) Payee “B” Record — Record Layout Positions 544–750 for Form 5498–SA (Continued)
Field
Position
Field TitleLength Description and Remarks
547Medicare
Advantage
MSA
Indicator
1Enter “1” (one) for Medicare Advantage MSA. Otherwise enter
a blank.
548HSA Indicator1Enter “1” (one)for HSA. Otherwise enter a blank.
549Archer MSA
Indicator
1Enter “1” (one) for Archer MSA. Otherwise enter a blank.
550–662 Blank113Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–748 Blank26Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record Layout Positions 544–750 for Form 5498–SA
BlankMedicare
Advantage
MSA
Indicator
HSA
Indicator
Archer
MSA
Indicator
BlankSpecial
Data Entries
BlankBlank
or CR/LF
544–546547548549550–662663–722723–748749–750
(24) Payee “B” Record — Record Layout Positions 544–750 for Form W–2G
Field
Position
Field TitleLength Description and Remarks
544–546 Blank3Enter blanks.
547Type of Wager
Code
1Required.Enter the applicable type of wager code from the table
below.
CodeCategory
1Horse race track (or off-track betting of a horse
track nature)
2Dog race track (or off-track betting of a dog track
nature)
3Jai-alai
4State-conducted lottery
5Keno
6Bingo
7Slot machines
8Any other type of gambling winnings
2005–31 I.R.B.237August 1, 2005

(24) Payee “B” Record — Record Layout Positions 544–750 for Form W–2G (Continued)
Field
Position
Field TitleLength Description and Remarks
548–555 Date Won8Required.Enter the date of the winning transaction in the format
YYYYMMDD (e.g., January 5, 2005, .would be 20050105).Do not
enter hyphens or slashes.This is not the date the money was paid,
if paid after the date of the race (or game).
556–570 Transaction15Required.For state-conducted lotteries, enter the ticket or other
identifying number. For keno, bingo, and slot machines, enter the
ticket or card number (and color, if applicable), machine serial
number, or any other information that will help identify the winning
transaction. For all others, enter blanks.
571–575 Race5If applicable, enter the race (or game) relating to the winning ticket;
otherwise, enter blanks.
576–580 Cashier5If applicable, enter the initials or number of the cashier making the
winning payment; otherwise, enter blanks.
581–585 Window5If applicable, enter the window number or location of the person
paying the winning payment; otherwise, enter blanks.
586–600 First ID15For other than state lotteries, enter the first identification number of
the person receiving the winning payment; otherwise, enter blanks.
601–615 Second ID15For other than state lotteries, enter the second identification number
of the person receiving the winnings; otherwise, enter blanks.
616–662 Blank47Enter blanks.
663–722 Special Data
Entries
60This portion of the “B” Record maybeusedtorecordinformationfor
state or local government reporting or for the filer’s own purposes.
Payers should contact the state or local revenue departments for
filing requirements. If this field is not utilized, enter blanks.
723–734 State Income
Tax Withheld
12State income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting state tax withheld, this field may be used
as a continuation of the Special Data Entries field.
735–746 Local Income
Tax Withheld
12Local income tax withheld is for the convenience of the filers. This
information does not need to be reported to IRS. The payment
amount must be right-justified and unused positions must be
zero-filled. If not reporting local tax withheld, this field may be used
as a continuation of the Special Data Entries field.
747–748 Blank2Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Payee “B” Record — Record LayoutPositions 544–750 for Form W–2G
BlankType of
Wager
Code
Date
Won
TransactionRaceCashierWindowFirst ID
544–546547548–555556–570571–575576–580581–585586–600
August 1, 20052382005–31 I.R.B.

Payee “B” Record — Record Layout Positions 544–750 for Form W–2G (Continued)
Second IDBlankSpecial Data
Entries
State Income
Tax
Withheld
Local
Income
Tax
Withheld
BlankBlank
or CR/LF
601–615616–662663–722723–734735–746747–748749–750
Sec. 7. End of Payer “C” Record — General Field Descriptions and Record Layout
.01The “C” Record consists of the total number of payees and the totals of the payment amount fields filed for each payer and/or
particular type of return. The “C” Record must follow thelast “B” Record for each type of return for each payer.
.02For each “A” Record and group of “B” Records on the file, there must be a corresponding “C” Record.
.03The End of Payer “C” Record is a fixedlength of 750 positions. The control fields are each 18 positions in length.
Record Name: End of Payer “C” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “C.”
2–9Number of
Payees
8Required.Enter the total number of “B” Records covered by the
preceding “A” Record. Right-justify information and fill unused
positions with zeros.
10–15Blank6Enter blanks.
16–33Control Total 118
34–51Control Total 218
52–69Control Total 318
70–87Control Total 418
88–105Control Total 518
106–123 Control Total 618
124–141 Control Total 718
142–159 Control Total 818
160–177 Control Total 918
178–195 Control Total A18
196–213 Control Total B18
214–231 Control Total C18
232–249 Control Total D18
250–267 Control Total E18
Required.Accumulate totals of any payment amount fields in the
“B” Records into the appropriate control total fields of the “C”
Record.Control totals must be right-justified and unused control
total fields zero-filled. All control total fields are 18 positions in
length. Each payment amount must contain U.S. dollars and cents.
The right-most two positions represent cents in the payment amount
fields.
268–499 Blank232Enter blanks.
2005–31 I.R.B.239August 1, 2005

Record Name: End of Payer “C” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
500–507 Record Sequence
Number
8Required.Enter the number of the record as it appears within
your file. The record sequencenumber for the “T” record will
always be “1” (one), since it is the first record on your file and you
can have only one “T” record in a file. Each record, thereafter,
must be incremented by one inascending numerical sequence,
i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” record sequence number would
appear as “00000001” in the field, the first “A” record would be
“00000002”, the first “B” record, “00000003”, the second “B”
record, “00000004” and so on until you reach the final record of
the file, the “F” record.
508–748 Blank241Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
End of Payer “C” Record — Record Layout
Record
Type
Number of
Payees
BlankControl
Total
1
Control
Total
2
Control
Total
3
Control
Total
4
Control
Total
5
Control
Total
6
12–910–1516–3334–5152–6970–8788–105106–123
Control
Total
7
Control
Total
8
Control
Total
9
Control
Total
A
Control
Total
B
Control
Total
C
Control
Total
D
Control
Total
E
Blank
124–141142–159160–177178–195196–213214–231232–249250–267268–499
Record
Sequence
Number
BlankBlank
or CR/LF
500–507508–748749–750
Sec. 8. State Totals “K” Record — GeneralField Descriptions and Record Layout
.01The State Totals “K” Record is a summary for a given payer and agiven state in the Combined Federal/State Filing Program,
usedonlywhen state-reporting approval has been granted.
.02The “K” Record will contain the total number of payees and thetotal of the payment amount fields filed by a given payer for
a given state. The “K” Record(s) must be written after the “C” Record for the related “A”Record. A file format diagram is located
at the end of Part D.
.03The “K” Record is a fixed length of 750 positions. The control total fields are each18 positions in length.
.04In developing the “K” Record, for example, if a payer usedAmount Codes 1, 3, and 6 in the “A” Record, the totals from the
“B” Records coded for this statewould appear in Control Totals 1, 3, and 6 of the “K” Record.
.05There must be a separate “K” Record foreach statebeing reported.
.06Refer to Part A, Sec. 13, for the requirements and conditions thatmustbe met to file via this program.
August 1, 20052402005–31 I.R.B.

Record Name: State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT,
1099–MISC, 1099–OID, 1099–PATR, 1099–R, and 5498
Field
Position
Field TitleLength Description and Remarks
1Record
Type
1Required.Enter “K.”
2–9Number of
Payees
8Required.Enter the total number of “B” Records being coded for
this state. Right-justify information and fill unused positions with
zeros.
10–15Blank6Enter blanks.
16–33Control Total 118
34–51Control Total 218
52–69Control Total 318
70–87Control Total 418
88–105Control Total 518
106–123 Control Total 618
124–141 Control Total 718
142–159 Control Total 818
160–177 Control Total 918
178–195 Control Total A18
196–213 Control Total B18
214–231 Control Total C18
232–249 Control Total D18
250–267 Control Total E18
Required.Accumulate totals of any payment amount fields in
the “B” Records for each state being reported into the appropriate
control total fields of the appropriate “K” Record. Each payment
amount must contain U.S. dollarsand cents. The right-most two
positions represent cents in the payment amount fields.Control
totals must be right-justified and unused control total fields
zero-filled.All control total fields are 18 positions in length.
268–499 Blank232Enter blanks.
500–507 Record Sequence
Number
8Required.Enter the number of the record as it appears within
your file. The record sequencenumber for the “T” record will
always be “1” (one), since it is the first record on your file and you
can have only one “T” record in a file. Each record, thereafter,
must be incremented by one inascending numerical sequence,
i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” record sequence number would
appear as “00000001” in the field, the first “A” record would be
“00000002”, the first “B” record, “00000003”, the second “B”
record, “00000004” and so on until you reach the final record of
the file, the “F” record.
508–706 Blank199Enter blanks.
707–724 State Income
TaxWithheldTotal
18State income tax withheld total is for the convenience of the filers.
Aggregate totals of thestate income tax withheld field in the Payee
“B” Records; otherwise, enter blanks.
725–742 Local Income
TaxWithheldTotal
18Local income tax withheld total is for the convenience of the filer.
Aggregate totals of the local income tax withheld field in the Payee
“B” Records; otherwise, enter blanks.
743–746 Blank4Enter blanks.
2005–31 I.R.B.241August 1, 2005

Record Name: State Totals “K” Record — RecordLayout Forms 1099–DIV, 1099–G, 1099–INT,
1099–MISC, 1099–OID, 1099–PATR, 1099–R, and 5498 (Continued)
Field
Position
Field TitleLength Description and Remarks
747–748 Combined
Federal/State
Code
2Required.Enter the code assigned to the state which is to receive
the information. (Refer to Part A, Sec. 13, Table l.)
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
State Totals “K” Record — Record Layout Forms 1099–DIV, 1099–G, 1099–INT, 1099–MISC,
1099–OID, 1099–PATR, 1099–R, and 5498
Record
Type
Number of
Payees
BlankControl
Total
1
Control
Total
2
Control
Total
3
Control
Total
4
Control
Total
5
Control
Total
6
12–910–1516–3334–5152–6970–8788–105106–123
Control
Total
7
Control
Total
8
Control
Total
9
Control
Total
A
Control
Total
B
Control
Total
C
Control
Total
D
Control
Total
E
Blank
124–141142–159160–177178–195196–213214–231232–249250–267268–499
Record
Sequence
Number
BlanksState Income
Tax
Withheld
Total
Local
Income
Tax
Withheld
Total
BlankCombined
Federal/State
Code
Blank
or CR/LF
500–507508–706707–724725–742743–746747–748749–750
Sec. 9. End of Transmission “F” Record — General Field Descriptions and Record Layout
.01The End of Transmission “F” Record is a summary of the number of payers in the entire file.
.02The “F” Record is a fixed record length of 750 positions.
.03This record must be written after the last “C” Record (or last “K” Record, when applicable) of the entire file.
Record Name: End of Transmission “F” Record
Field
Position
Field TitleLength Description and Remarks
1Record Type1Required.Enter “F.”
2–9Number “A” Records8Enter the total number of Payer “A” Records in the entire file
(right-justify and zero-fill) or enter all zeros.
10–30Zero21Enter zeros.
31–49Blank19Enter blanks.
50–57Total Number of
Payees
8Enter the total number of Payee “B” Records reported in the file.
Right-justify information and fill unused positions with zeros. If
you have entered this total in the “T” Record, you may leave this
field blank.
August 1, 20052422005–31 I.R.B.

Record Name: End of Transmission “F” Record (Continued)
Field
Position
Field TitleLength Description and Remarks
58–499Blank442Enter blanks.
500–507 Record Sequence Number8Required.Enter the number of the record as it appears within
your file. The record sequencenumber for the “T” record will
always be “1” (one), since it is the first record on your file and you
can have only one “T” record in a file. Each record, thereafter,
must be incremented by one inascending numerical sequence,
i.e., 2, 3, 4, etc. Right-justify numbers with leading zeros in
the field. For example, the “T” record sequence number would
appear as “00000001” in the field, the first “A” record would be
“00000002”, the first “B” record, “00000003”, the second “B”
record, “00000004” and so on until you reach the final record of
the file, the “F” record.
508–748 Blank241Enter blanks.
749–750 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
End of Transmission “F” Record — Record Layout
Record
Type
Number of
“A”
Records
ZeroBlankTotal
Number
of Payees
BlankRecord
Sequence
Number
BlankBlank
or CR/LF
12–910–3031–4950–5758–499500–507508–748749–750
2005–31 I.R.B.243August 1, 2005

Sec. 10. File Layout Diagram
Part E. Extensions of Time and Waivers
Sec. 1. General — Extensions
.01An extension of time to file may be requested for Forms 1098, 1099, 5498, 5498–SA, 5498–ESA, W–2G, W–2 series, 8027
and 1042–S.
.02Form 8809, Application for Extension of Time To File Information Returns, should be submitted to IRS/ECC-MTB at the
address listed in .08 of this section. This form may be used to request an extension of time to file information returns submitted on
paper, electronically or magnetically to the IRS. Use a separate Form 8809 for each method of filing information returns you intend
to use, i.e., electronically and/or magnetically.
.03To be considered, an extension request must be postmarked or transmitted by the due date of the returns; otherwise, the request
will be denied. (See Part A, Sec. 9, for due dates.) If requesting an extension of time to file several types of forms, use one Form
8809; however, Form 8809 or file must be postmarked no later than the earliest due date. For example, if requesting an extension of
time to file both Forms 1099–INT and 5498, submit Form 8809 on or before February 28, 2006.
.04Assoonasitisapparentthat a 30-day extension of time to file is needed, an extension request should be submitted. It will take
a minimum of 30 days for IRS/ECC-MTB to respond to an extension request. Generally, IRS/ECC-MTB does not begin processing
extension requests until January. Extension requests received prior to January are input on a first come, first serve basis.
.05Under certain circumstances, a request for an extension of time may be denied. When a denial letter is received, any additional
or necessary information may be resubmitted within 20 days.
.06Requesting an extension of time for multiple payers (50 or less) may be done by submitting Form 8809 and attaching a list
of the payer names and associated TINs (EIN or SSN).The listing must be attached to ensure an extension is recorded for all
payers.Form 8809 may be computer-generated or photocopied. Be sureto use the most recently updated version and include all the
pertinent information.
.07Requests for an extension of timeto file for more than 50 payers arerequiredto be submitted electronically or magnetically.
IRS encourages requests for 10 to 50 payers to be filed electronically or magnetically. (See Sec. 3, for the record layout.) The request
may be filed electronically, on tape cartridges, or 3
1
/2-inch diskettes.
August 1, 20052442005–31 I.R.B.

.08All requests for an extension of time filed on Form 8809 or magnetic media should be sent using the following address:
Internal Revenue Service
Enterprise Computing Center — Martinsburg
Information Reporting Program
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 25430
Note: Due to the large volume of mail received by IRS/ECC-MTB and the time factor involved in processing Extension of
Time (EOT) requests, it is imperative that the attention line be present on all envelopes or packages containing Form 8809.
.09Requests for extensions of time to file postmarked by the United States Postal Service on or before the due date of the returns,
and delivered by United States mail to IRS/ECC-MTB after the due date, are treated astimely under the “timely mailing as timely
filing” rule. A similar rule applies to designated private delivery services (PDSs). See Part A, Sec. 9, for more information on PDSs.
For requests delivered by a designated PDS, but through a non-designated service, the actual date of receipt by IRS/ECC-MTB will
be used as the filing date.
.10Transmitters requesting an extension of time for multiple payers will receive one approval letter, accompanied by a list of payers
covered under that approval.
.11If an additional extension of time is needed, a second Form 8809 or file must be filed by the initial extended due date. Check
line 7 on the form to indicate that an additional extension is being requested. A second 30-day extension will be approved only in
cases of extreme hardship or catastrophic event.If requesting a second 30-day extension of time, submit the information return
filesassoonasprepared.DonotwaitforECC-MTB’s response to your second extension request.
.12If an extension request is approved, the approval letter should be kept on file.DO NOTsend the approval letter or copy of the
approval letter to IRS/ECC-MTB with the magnetic media file or to the service center where the paper returns are filed.
.13Request an extension for only one tax year.
.14A signature is not required when requesting a 30 day extension. If a second 30 day extension is requested, the Form 8809
MUSTbe signed.
.15Failure to properly complete and sign Form 8809 may cause delays in processing the request or result in a denial. Carefully
read and follow the instructions on the back of Form 8809.
.16Form 8809 may be obtained by calling1–800–TAX–FORM (1–800–829–3676).The form is also available on theIRS website
at www.irs.gov.A copy of Form 8809 is also provided in the back of Publication 1220.
Sec. 2. Specifications for Electronic Filing or Magnetic Media Extensions of Time
.01The specifications in Sec. 3 include the required 200-byte record layout for extensions of time to file requests submitted elec-
tronically or magnetically. Also included are the instructions for the information that is to be entered in the record.Filers are advised
to read this section in its entirety to ensure proper filing.
.02If a filer does not have an IRS/ECC-MTB assigned Transmitter Control Code (TCC), Form 4419, Application for Filing Infor-
mation Returns Electronically/Magnetically,mustbe submitted to obtain a TCC. This numbermustbe used to submit an extension
request electronically/magnetically. (See Part A, Sec. 6.)
.03For extension requests filed on magnetic media, the transmitter must mail the completed Form 8809, Application for Extension
of Time To File Information Returns, in the same package as the corresponding media or fax it to 304–264–5602. For extension
requests filed electronically, the transmitter must fax Form 8809 the same day the transmission is made.Due to security concerns,
extension requests maynotbe emailed with the Form 8809 as an attachment.
.04 Transmitters submitting an extension of time electronically or magnetically shouldnotsubmitalistofpayernamesand
TINs with Form 8809 since this information is included on the electronicormagneticfile.However,Line6ofForm8809must
be completed with the total number of records included on the electronic file or magnetic media.
.05Do not submit tax year 2005 extension requests filed on magnetic media beforeJanuary 1, 2006, or electronically before
January 5, 2006.
.06Each piece of magnetic mediamusthave an external media label containing the following information:
(a)Transmitter name
(b)Transmitter Control Code (TCC)
(c)Tax year
(d)The words “Extension of Time”
(e)Record count
.07Electronic Filing, Tape Cartridge, and 3
1
/2-inch Diskette specifications for extensions are the same as the specifications for
filing of information returns. (See Part Bor C for specific technical information.)
2005–31 I.R.B.245August 1, 2005

Sec. 3. Record Layout — Extension of Time
.01Positions 6 through 188 of the following record should contain information about thepayerfor whom the extension of time to
file is being requested. Do not enter transmitter information in these fields.OnlyoneTCCmaybepresentinafile.
Record Layout for Extension of Time
Field
Position
Field TitleLength Description and Remarks
1–5Transmitter
Control Code
5Required.Enter the five-digit Transmitter Control Code (TCC)
issued by IRS.Only one TCC per file is acceptable.
6–14Payer TIN9Required.Must be the valid nine-digit EIN/SSN assigned to the
payer.Do not enter blanks, hyphens or alpha characters.All
zeros, ones, twos, etc., will have the effect of an incorrect TIN. For
foreign entities that are not requiredtohaveaTIN,thisfieldmay
be blank; however, the Foreign Entity Indicator, position 187,must
be set to “X.”
15–54Payer Name40Required.Enter the name of the payer whose TIN appears in
positions 6–14. Left-justify information and fill unused positions
with blanks.
55–94Second Payer
Name
40If additional space is needed, this field may be used to continue
name line information (e.g., c/o First National Bank); otherwise,
enter blanks.
95–134Payer Address40Required.Enter the payer’s address. Street address should include
number, street, apartment or suite number (or PO Box if mail is
not delivered to a street address).
135–174 Payer City40Required.Enter payer city, town, or post office.
175–176 Payer State2Required.Enter the payer valid U.S. Postal Service state
abbreviation. (Refer to Part A, Sec. 15.)
177–185 Payer ZIP Code9Required.Enter payer ZIP Code. If using a five-digit ZIP Code,
left-justify information and fillunused positions with blanks.
186Document
Indicator
(See Note.)
1Required.Enter the appropriate document code that indicates the
form for which you are requesting an extension of time.
CodeDocument
1W–2
21098,1098–C, 1098–E, 1098–T, 1099–A, 1099–B,
1099–C, 1099–CAP, 1099–DIV, 1099–G, 1099–H,
1099–INT, 1099–LTC, 1099–MISC, 1099–OID,
1099–PATR, 1099–Q, 1099–R, 1099–S, 1099–SA,
or W–2G
35498
41042–S
5REMIC Documents (1099–INT or 1099–OID)
65498–SA
75498–ESA
Note: Do not enter any other values in this field. Submit aseparate record for each document. For example, if you are
requesting an extension for Form 1099–INT and Form 5498 for the same payee, submit one record with “2” coded in this
field and another record with “3” codedin this field. If you are requesting an extension for Form 1099–DIV and Form
1099–MISC for the same payer, submit one record with “2” coded in this field.
August 1, 20052462005–31 I.R.B.

Record Layout for Extension of Time (Continued)
Field
Position
Field TitleLength Description and Remarks
187Foreign
Entity
Indicator
1Enter “X” if the payer is a foreign entity.
188Recipient Request Indicator1Enter “X” if the extension request is to furnish statements to the
recipients of the information return.
Note: A separate file is required for this type of extension request. A file must either contain all blanks or all X’s in this field.
189–198 Blank10Enter blanks.
199–200 Blank2Enter blanks or carriage return/line feed (CR/LF) characters.
Extension of Time Record Layout
Transmitter
Control
Code
Payer
TIN
Payer
Name
Second
Payer
Name
Payer
Address
Payer
City
Payer
State
1–56–1415–5455–9495–134135–174175–176
Payer
ZIP
Code
Document
Indicator
Foreign
Entity
Indicator
Recipient
Request
Indicator
BlankBlank
or CR/LF
177–185186187188189–198199–200
Sec. 4. Extension of Time for Recipient Copies of Information Returns
.01Request anextension of time to furnish the statements to recipientsof Forms 1098, 1099 series, 5498 series, W–2G, W–2
series, and 1042–S by submitting a letter to IRS/ECC-MTB at the address listed in Part E, Sec. 1.08. The letter should contain the
following information:
(a)Payer name
(b)TIN
(c)Address
(d)Type of return
(e)Specify that the extension request isto provide statements to recipients
(f)Reason for delay
(g)Signature of payer or duly authorized person
.02Requests for an extension of time to furnish statements to recipients of Forms 1098, 1099 series, 5498 series, W–2G, W–2
series, and 1042–S are not automatically approved; however, if approved, generallyan extension will allow aMAXIMUMof 30
additional days from the due date. The request must be postmarked by the date on which the statements are due to the recipients.
.03Generally, only the payer may sign the letter requesting the extension for recipient copies. A transmitter must have a contractual
agreement with the filers to submit extension requests on their behalf. This should be stated in your letter of request for recipient copy
extensions. If you are requesting an extension for multiple payers electronically or magnetically, you must use the format specifica-
tions in Sec. 4 (See Sec. 1 .07).
.04Requests for arecipientextension of time to file for more than 50 payers arerequiredto be submitted electronically or mag-
netically. IRS encourages requests for 10 to 50 payers to be filed electronically or magnetically. (See Sec. 3, for the record layout.)
The request may be filed electronically, on tape cartridges, or 3
1
/2-inch diskettes.
2005–31 I.R.B.247August 1, 2005

Sec. 5. Form 8508, Request for Waiver From Filing Information Returns Magnetically
.01If a payer is required to file on magnetic media but fails to do so (or fails to file electronically in lieu of magnetic media filing)
and does not have an approved waiver on record, the payer will be subject to a penalty of $50 per return in excess of 250. (For penalty
information, refer to the Penalty Section of the2005 General Instructions for Forms 1099, 1098, 5498, and W–2G.)
.02If payers are required to file original or corrected returns on magnetic media, but such filing would create an undue hard-
ship, they may request a waiver from these filing requirements by submitting Form 8508, Request for Waiver From Filing Informa-
tion Returns Magnetically, to IRS/ECC-MTB.Form 8508 can be obtained on the IRS website atw
ww.irs.govor by calling toll-free
1–800–829–3676.
.03Even though a payer may submit as many as 249 corrections on paper, IRS encourages electronic or magnetic filing of correc-
tions. Once the 250 threshold has been met, filers are required to submit any returns of 250 or more electronically or magnetically.
However, if a waiver for original documents is approved, any corrections for the same type of returns will be covered under that
waiver.
.04Generally, only the payer may sign Form 8508. A transmitter may sign if given power of attorney; however, a letter signed by
the payer stating this fact must be attached to Form 8508.
.05A transmitter must submit a separate Form 8508 for each payer. Do not submit a list of payers.
.06All information requested on Form 8508 must beprovided to IRS for the request to be processed.
.07The waiver, if approved, will provide exemption from the magnetic media filing requirement for the current tax year only.
Payers may not apply for a waiver for more than one tax year at a time; application must be made each year a waiver is necessary.
.08Form 8508 may be photocopied or computer-generated as long as itcontains all the information requested on the original form.
.09Filers are encouraged to submit Form 8508 to IRS/ECC-MTB at least 45 days before the due date of the returns. Generally,
IRS/ECC-MTB does not process waiver requests until January. Waiver requests received prior to January are processed on a first
come, first serve basis.
.10All requests for a waiver should be sent using the following address:
IRS-Enterprise Computing Center — Martinsburg
Information Reporting Program
240 Murall Drive
Kearneysville, WV 25430
.11 File Form 8508 for the W–2 series of forms with IRS/ECC-MTB, not SSA.
.12Waivers are evaluated on a case-by-case basis and are approved ordenied based on criteria set forth in the regulations under
section 6011(e) of the Internal Revenue Code. The transmitter must allow a minimum of 30 days for IRS/ECC-MTB to respond to a
waiver request.
.13If a waiver request is approved, keep the approval letter on file.DO NOTsend a copy of the approved waiver to the service
center where the paper returns are filed.
.14An approved waiver only applies to the requirement for filing information returns electronically/magnetically. The payer must
still timely file information returns on the official IRS paper formsor an acceptable substitute form with the appropriate service center.
August 1, 20052482005–31 I.R.B.

Part IV. Items of General Interest
Announcement of Disciplinary Actions Involving
Attorneys, Certified Public Accountants, Enrolled Agents,
and Enrolled Actuaries — Suspensions, Censures,
Disbarments, and Resignations
Announcement 2005-48
Under Title 31, Code of Federal Regu-
lations, Part 10, attorneys, certified public
accountants, enrolled agents, and enrolled
actuaries may not accept assistance from,
or assist, any person who is under disbar-
ment or suspension from practice before
the Internal Revenue Service if the assis-
tance relates to a matter constituting prac-
tice before the Internal Revenue Service
and may not knowingly aid or abet another
person to practice before the Internal Rev-
enue Service during a period of suspen-
sion, disbarment, or ineligibility of such
other person.
To enable attorneys, certified public
accountants, enrolled agents, and enrolled
actuaries to identify persons to whom
these restrictions apply, the Director, Of-
fice of Professional Responsibility, will
announce in the Internal Revenue Bulletin
their names, their city and state, their pro-
fessional designation, the effective date
of disciplinary action, and the period of
suspension. This announcement will ap-
pear in the weekly Bulletin at the earliest
practicable date after such action and will
continue to appear in the weekly Bulletins
for five successive weeks.
Consent Suspensions From Practice Before the Internal
Revenue Service
Under Title 31, Code of Federal Regu-
lations, Part 10, an attorney, certified pub-
lic accountant, enrolled agent, or enrolled
actuary, in order to avoid institution or con-
clusion of a proceeding for his or her dis-
barment or suspension from practice be-
fore the Internal Revenue Service, may of-
fer his or her consent to suspension from
such practice. The Director, Office of Pro-
fessional Responsibility, in his discretion,
may suspend an attorney, certified public
accountant, enrolled agent or enrolled ac-
tuary in accordance with the consent of-
fered.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue Ser-
vice:
NameAddressDesignationDate of Suspension
Harrison, John S.Oakland, CAAttorneyIndefinite
from
January 25, 2005
Newkirk, StephonWinterville, NCCPAIndefinite
from
February 8, 2005
Goldman, Mark L.East Meadow, NYAttorneyIndefinite
from
February 18, 2005
Johnston, H. JamesKnoxville, TNCPAIndefinite
from
March 16, 2005
Gapp, Edward J.Greenwich, CTCPAIndefinite
from
March 28, 2005
2005–31 I.R.B.249August 1, 2005

NameAddressDesignationDate of Suspension
Rowland, Mark C.Westlake, OHCPAIndefinite
from
April 11, 2005
French Jr., Paul C.Bangor, MICPAIndefinite
from
April 25, 2005
Mynsberge, Richard C.Mishawaka, INCPAIndefinite
from
May 1, 2005
Specht Jr., Henry F.N. Myrtle Beach, SCCPAIndefinite
from
May 1, 2005
Sostarich, Mark E.S. Milwaukee, WIAttorneyIndefinite
from
May 1, 2005
Gasa, William M.Winfield, ILEnrolled AgentIndefinite
from
June 1, 2005
Leisure, Sally R.Portland, ORAttorneyIndefinite
from
June 9, 2005
Tuerk Jr., Carl E.Annapolis, MDAttorneyIndefinite
from
July 1, 2005
Expedited Suspensions From Practice Before the Internal
Revenue Service
Under Title 31, Code of Federal Regu-
lations, Part 10, the Director, Office of Pro-
fessional Responsibility, is authorized to
immediately suspend from practice before
the Internal RevenueService any practi-
tioner who, within five years from the date
the expedited proceeding is instituted (1)
has had a license to practice as an attor-
ney, certified public accountant, or actuary
suspended or revoked for cause or (2) has
been convicted of certain crimes.
The following individuals have been
placed under suspension from practice be-
fore the Internal Revenue Service by virtue
of the expedited proceeding provisions:
NameAddressDesignationDate of Suspension
Hawkins, Nicholas G.Harrods Creek, KYAttorneyIndefinite
from
February 11, 2005
Richey, Michael L.Girardeau, MOAttorneyIndefinite
from
February 11, 2005
Brown, Calvin D.Dallas, TXCPAIndefinite
from
February 16, 2005
August 1, 20052502005–31 I.R.B.

NameAddressDesignationDate of Suspension
Bell, James M.Bandera, TXCPAIndefinite
from
February 23, 2005
Fedynshyn, Michael P.Broomfield, COAttorneyIndefinite
from
February 23, 2005
Harris, RossPikeville, KYAttorneyIndefinite
from
February 23, 2005
Tehin Jr., NikolaiSan Francisco, CAAttorneyIndefinite
from
March 7, 2005
Ballance, Frank W.Warrenton, NCAttorneyIndefinite
from
March 7, 2005
Jacob, Arthur F.Sykesville, MDAttorneyIndefinite
from
March 8, 2005
Hefley, Lee D.Burleson, TXCPAIndefinite
from
March 8, 2005
Beswick, Robert H.Encino, CAAttorneyIndefinite
from
March 8, 2005
Scarpello, Joseph R.Tustin, CACPAIndefinite
from
March 8, 2005
Machado, Lazaro J.Santa Ana, CAAttorneyIndefinite
from
March 8, 2005
McKnew, Donna K.Ashland, KYAttorneyIndefinite
from
March 8, 2005
Yarno Jr., WilliamLafayette, LAAttorneyIndefinite
from
March 8, 2005
Walker, Frank O.Bay City, TXCPAIndefinite
from
March 8, 2005
Kafkas, Demetrios G.Tewksbury, MAAttorneyIndefinite
from
March 8, 2005
Scott, Bertram A.Brooklyn, NYAttorneyIndefinite
from
March 8, 2005
2005–31 I.R.B.251August 1, 2005

NameAddressDesignationDate of Suspension
Templeton, Robert L.Ashland, KYAttorneyIndefinite
from
March 8, 2005
Christopher, Nathan H.Salisbury, MDAttorneyIndefinite
from
March 8, 2005
Willingham, Nathaniel J.Jacksonville, NCAttorneyIndefinite
from
March 8, 2005
Anderson, Brett I.Des Moines, IAAttorneyIndefinite
from
March 8, 2005
Broderick, Thomas F.Somerville, MAAttorneyIndefinite
from
March 14, 2005
Peoples, Brendan K.Ft. Worth, TXCPAIndefinite
from
March 15, 2005
Tidmore, J. ToddAddison, TXCPAIndefinite
from
March 15, 2005
Cox, Patricia A.Victoria, TXCPAIndefinite
from
March 15, 2005
Rogers, FredMansfield, LACPAIndefinite
from
March 15, 2005
Bridgeforth, WyvonniaOak Park, ILAttorneyIndefinite
from
March 15, 2005
Bruce, Donna M.Athens, ALCPAIndefinite
from
March 18, 2005
Teske, David S.Seattle, WAAttorneyIndefinite
from
March 18, 2005
Cobb Jr., Wayne H.Kaufman, TXAttorneyIndefinite
from
March 18, 2005
Swindell IV, Lewis H.Avondale, AZAttorneyIndefinite
from
March 18, 2005
Murr, Mark D.Houston, TXAttorneyIndefinite
from
March 18, 2005
Nip, Raymond A.C.Honolulu, HICPAIndefinite
from
March 18, 2005
August 1, 20052522005–31 I.R.B.

NameAddressDesignationDate of Suspension
Asbury, Lloyd T.Jacksonville, FLAttorneyIndefinite
from
March 18, 2005
Lowell, Melinda E.New York, NYAttorneyIndefinite
from
March 18, 2005
Rub, Lawrence P.Glenwood, MDCPAIndefinite
from
March, 18, 2005
Fagan, Charles G.Severna Park, MDCPAIndefinite
from
March 21, 2005
Lewis, Larry L.Woodbridge, VAAttorneyIndefinite
from
March 28, 2005
Mpi, Afoma M.Peoria, ILAttorneyIndefinite
from
March 30, 2005
Gross, Hyath B.Schenectady, NYAttorneyIndefinite
from
April 1, 2005
Zick, Terry T.Wrightville Beach, NCAttorneyIndefinite
from
April 1, 2005
Atlas, Joan M.Philadelphia, PAAttorneyIndefinite
from
April 4, 2005
Rider, Lawrence C.Boulder, COAttorneyIndefinite
from
April 5, 2005
Eller, Scott D.Frisco, TXCPAIndefinite
from
April 6, 2005
Brenton, Robert O.Overland Park, KSCPAIndefinite
from
April 6, 2005
Folks, Lloyd C.Kinston, NCCPAIndefinite
from
April 6, 2005
Suckling, John R.San Marcos, CACPAIndefinite
from
April 6, 2005
Pulito, James P.Phoenix, AZCPAIndefinite
from
April 6, 2005
Garcia, Felix D.Auroa, COAttorneyIndefinite
from
April 6, 2005
2005–31 I.R.B.253August 1, 2005

NameAddressDesignationDate of Suspension
Wentzel, Gerald L.Bloomingdale, ILCPAIndefinite
from
April 14, 2005
Williams, David W.Simpsonville, KYAttorneyIndefinite
from
April 19, 2005
Sykes III, Bernard G.Riviera Beach, FLAttorneyIndefinite
from
April 19, 2005
Hambrick Jr., J. C.Branson, MOAttorneyIndefinite
from
April 19, 2005
Adams, David M.Charleston, SCAttorneyIndefinite
from
April 19, 2005
Richardson, Jon M.Danville, ILAttorneyIndefinite
from
April 19, 2005
Rose, Shaun H.Baltimore, MDAttorneyIndefinite
from
April 19, 2005
Tanner, Fred L.Bowling Green, KYAttorneyIndefinite
from
April 19, 2005
Perry, David W.Reading, MAAttorneyIndefinite
from
April 19, 2005
Fleming, Bruce D.Council Bluffs, IAAttorneyIndefinite
from
April 19, 2005
Healy, Paul J.Pembroke, MAAttorneyIndefinite
from
April 19, 2005
Kaczynski, Ronald C.Andover, MAAttorneyIndefinite
from
April 19, 2005
Whalley, Lester F.Yorba Linda, CAAttorneyIndefinite
from
April 27, 2005
Tanner, MaxLas Vegas, NVAttorneyIndefinite
from
May 3, 2005
Blackwell, Johnny L.Fayetteville, NCCPAIndefinite
from
May 3, 2005
Szer, StevenFort Mill, SCCPAIndefinite
from
May 3, 2005
August 1, 20052542005–31 I.R.B.

NameAddressDesignationDate of Suspension
Chinn, David P.Louisville, KYAttorneyIndefinite
from
May 9, 2005
Bille, Anthony J.Hopkinton, MAAttorneyIndefinite
from
May 16, 2005
Dotson, Lewis S.Mattoon, ILAttorneyIndefinite
from
May 16, 2005
Palmer, Philip B.Chubbuck, IDAttorneyIndefinite
from
May 16, 2005
Wolterbeek, Mark E.Rindge, NHAttorneyIndefinite
from
May 31, 2005
James III., Charles M.Cheverly, MDAttorneyIndefinite
from
May 31, 2005
Jorgensen, Allen C.Redlands, CAAttorneyIndefinite
from
June 2, 2005
Brisbon, Brenda C.Baltimore, MDAttorneyIndefinite
from
June 7, 2005
Gilroy, John M.Waterloo, NEAttorneyIndefinite
from
June 7, 2005
Relphorde, Colin B.Homewood, ILAttorneyIndefinite
from
June 7, 2005
Pomeroy, John S.Dedham, MAAttorneyIndefinite
from
June 7, 2005
Gonick, Richard S.Ipswich, MAAttorneyIndefinite
from
June 7, 2005
Curran, Martin J.Manchester, NHAttorneyIndefinite
from
June 7, 2005
Koenigsdorf, Keith B.Overland Park, KSAttorneyIndefinite
from
June 7, 2005
Jambor, Daniel F.St. Paul, MNAttorneyIndefinite
from
June 7, 2005
LaFont Jr., Henry J.Lockport, LAAttorneyIndefinite
from
June 7, 2005
2005–31 I.R.B.255August 1, 2005

NameAddressDesignationDate of Suspension
Janosik, Dennis M.Parma, OHCPAIndefinite
from
June 9, 2005
Carter, Evalyn R.Calera, OKCPAIndefinite
from
June 9, 2005
Chasnoff, JoelGaithersburg, MDAttorneyIndefinite
from
June 9, 2005
O’Keefe, Michael E.Oak Park, CAAttorneyIndefinite
from
June 9, 2005
Wilkes, Richard C.Bowbells, NDAttorneyIndefinite
from
June 9, 2005
Rogers, Reginald J.Bowie, MDAttorneyIndefinite
from
June 9, 2005
Hindley, Charles T.Colton, CAAttorneyIndefinite
from
June 9, 2005
Morgan, Wendy B.Scotts Valley, CAAttorneyIndefinite
from
June 9, 2005
Suspensions From Practice Before the Internal Revenue
Service After Notice and an Opportunity for a Proceeding
Under Title 31, Code of Federal Reg-
ulations, Part 10, after notice and an op-
portunity for a proceeding before an ad-
ministrative law judge, the following indi-
viduals have been placed under suspension
from practice before the Internal Revenue
Service:
NameAddressDesignationEffective Date
Cahill, GaryShelton, CTAttorneyJanuary 27, 2005
to
January 26, 2008
Banks, Jean R.Van Nuys, CAEnrolled AgentMarch 8, 2005
to
December 7, 2006
August 1, 20052562005–31 I.R.B.

Censure Issued by Consent
Under Title 31, Code of Federal Reg-
ulations, Part 10, in lieu of a proceeding
being instituted or continued, an attorney,
certified public accountant, enrolled agent,
or enrolled actuary, may offer his or her
consent to the issuance of a censure. Cen-
sure is a public reprimand.
The following individuals have con-
sented to the issuance of a Censure:
NameAddressDesignationDate of Censure
Borden KathleenBluffton, SCAttorneyMay 11, 2005
Williamson, DebraLong Beach, CACPAJune 3, 2005
Assumption of Partner
Liabilities; Correction
Announcement 2005–52
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendment.
SUMMARY: This document corrects fi-
nal regulations (T.D. 9207, 2005–26 I.R.B.
1344) that were published in theFederal
Registeron Thursday, May 26, 2005 (70
FR 30334). The final regulation relates
to the definition of liabilities under section
752 of the Internal Revenue Code.
DATES: This correction is effective on
May 26, 2005.
FOR FURTHER INFORMATION
CONTACT: Laura Fields (202) 622–3050
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (T.D. 9207) that
are the subject of this correction are under
sections 358, 704, 705, 737 and 752 of the
Internal Revenue Code.
Need for Correction
As published, T.D. 9207 contains an er-
ror that may prove to be misleading and is
in need of clarification.
*****
Correction of Publication
Accordingly, 26 CFR Part 1 is cor-
rected by making the following correcting
amendment:
PART 1 — INCOME TAXES
Paragraph 1.The authority citation for
part 1 continues to read, in part, as follows:
Authority:26 U.S.C. 7805 * * *
In §1.752–7(g)(5), paragraph (iii) of the
Example, the table is revised as follows:
§1.752–7 Partnership assumption of
partner’s §1.752–7 liability on or after
June 24, 2003.
*****
(g) * * *
(5)Examples(i) * * *
(iii) * * *
2005–31 I.R.B.257August 1, 2005

B’s Basis in Property 1 after Satisfaction of Liability (in millions)
1.BasisinProperty1afterdistribution$3
2. Plus lesser of remaining built-in loss($2)
or amount paid to satisfy
liability($1)1
3. Basis in Property 1 after satisfaction
of liability
$4
*****
Cynthia Grigsby,
Acting Chief, Publications
and Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on July 8, 2005,
8:45 a.m., and published in the issue of the Federal Register
for July 11, 2005, 70 F.R. 39653)
Qualified Amended Returns;
Correction
Announcement 2005–53
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendment.
SUMMARY: This document contains cor-
rections to temporary regulations (T.D.
9186, 2005–13 I.R.B. 790) which were
published in theFederal Registeron
Wednesday, March 2, 2005 (70 FR 10037).
The temporary regulations modify the
rules relating to qualified amended returns
by providing additional circumstances
that end the period within which a tax-
payer may file an amended return that
constitutes a qualified amended return.
DATES: This correction is effective March
2, 2005.
FOR FURTHER INFORMATION
CONTACT: Nancy M. Galib at (202)
622–4940 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (T.D. 9186)
that are the subject of these corrections are
under section 6227 of the Internal Revenue
Code.
Need for Correction
As published, T.D. 9186 contains errors
that may prove to be misleading and are in
need of clarification.
*****
Correction of Publication
Accordingly, 26 CFR Part 1 is cor-
rected by making the following correcting
amendments:
PART 1 — I
NCOME TAXES
Paragraph 1.The authority citation for
part 1 continues to read in part as follows:
Authority:26 USC 7805 * * *
§1.6664–2T [Corrected]
1. Section 1.6664–2T(c)(3)(i)(B) is
amended by removing “of an activity” and
adding “for an activity” in its place.
2. Section 1.6664–2T(c)(3)(ii)(A)
isamendedbyremoving
“§1.6664–2(c)(3)(i)”andadding
“§1.6664–2T(c)(3)(i)” in its place.
3. Section 1.6664–2T(c)(3)(ii)(C) is
amended by removing “who is a mate-
rial advisor (within the meaning of sec-
tion 6111)” and adding “from any person
who gave the taxpayer material aid, as-
sistance, or advice as described in section
6111(b)(1)(A)(i)” in its place.
4. Section §1.6664–2T(c)(5)Example
3., is redesignated as §1.6664–2T(c)(5)
Example 3(i).
5. Newly designated §1.6664–2T(c)(5)
Example 3. (i) is amended by removing
“2003” and adding “2004” each place it
appears.
6.The undesignated text in
§1.6664–2T(c)(5)Example 3.isdesig-
nated as §1.6664–2T(c)(5)Example 3.
(ii).
7. Section 1.6664–2T(c)(5)Example
4., the first sentence is amended by remov-
ing “2003” and adding“2004” in its place.
8. Section 1.6664–2T(c)(5)Example
7., is redesignated as §1.6664–2T(c)(5)
Example 7.(i).
9.The undesignated text in
§1.6664–2T(c)(5)Example 7.isdesig-
nated as §1.6664–2T(c)(5)Example 7.
(ii).
Cynthia E. Grigsby,
Acting Chief, Publications
and Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on June 22, 2005,
8:45 a.m., and published in the issue of the Federal Register
for June 23, 2005, 70 F.R. 36344)
August 1, 20052582005–31 I.R.B.

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 ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing 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.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis 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
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings 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.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes 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 pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis 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 rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations
to show that the previous published rul-
ings 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 fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
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—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2005–31 I.R.B.iAugust 1, 2005

Numerical Finding List
1
Bulletins 2005–27 through 2005–31
Announcements:
2005-46, 2005-27 I.R.B.63
2005-47, 2005-28 I.R.B.71
2005-48, 2005-29 I.R.B.111
2005-49, 2005-29 I.R.B.119
2005-50, 2005-30 I.R.B.152
2005-52, 2005-31 I.R.B.257
2005-53, 2005-31 I.R.B.258
Notices:
2005-48, 2005-27 I.R.B.9
2005-49, 2005-27 I.R.B.14
2005-50, 2005-27 I.R.B.14
2005-51, 2005-28 I.R.B.74
2005-52, 2005-28 I.R.B.75
2005-54, 2005-30 I.R.B.127
Proposed Regulations:
REG-130241-04, 2005-27 I.R.B.18
Revenue Procedures:
2005-35, 2005-28 I.R.B.76
2005-36, 2005-28 I.R.B.78
2005-37, 2005-28 I.R.B.79
2005-38, 2005-28 I.R.B.81
2005-39, 2005-28 I.R.B.82
2005-40, 2005-28 I.R.B.83
2005-41, 2005-29 I.R.B.90
2005-42, 2005-30 I.R.B.128
2005-43, 2005-29 I.R.B.107
2005-44, 2005-29 I.R.B.110
2005-45, 2005-30 I.R.B.141
2005-46, 2005-30 I.R.B.142
2005-49, 2005-31 I.R.B.165
Revenue Rulings:
2005-38, 2005-27 I.R.B.6
2005-39, 2005-27 I.R.B.1
2005-40, 2005-27 I.R.B.4
2005-41, 2005-28 I.R.B.69
2005-42, 2005-28 I.R.B.67
2005-43, 2005-29 I.R.B.88
2005-44, 2005-29 I.R.B.87
2005-45, 2005-30 I.R.B.123
2005-46, 2005-30 I.R.B.120
2005-49, 2005-30 I.R.B.125
2005-50, 2005-30 I.R.B.124
2005-51, 2005-31 I.R.B.163
Tax Conventions:
2005-47, 2005-28 I.R.B.71
Treasury Decisions:
9208, 2005-31 I.R.B.157
9209, 2005-31 I.R.B.153
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2005–1 through 2005–26 is in Internal Revenue Bulletin
2005–26, dated June 27, 2005.
August 1, 2005ii2005–31 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2005–27 through 2005–31
Revenue Procedures:
64-54
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
66-33
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
69-13
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
70-8
Modified by
Rev. Proc. 2005-46, 2005-30 I.R.B.142
71-1
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
72-22
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
87-8
Obsoleted by
Rev. Proc. 2005-44, 2005-29 I.R.B.110
87-9
Obsoleted by
Rev. Proc. 2005-44, 2005-29 I.R.B.110
90–11
Modified by
Rev. Proc. 2005-40, 2005-28 I.R.B.83
93-22
Obsoleted by
Rev. Proc. 2005-44, 2005-29 I.R.B.110
98-18
Obsoleted by
Rev. Proc. 2005-45, 2005-30 I.R.B.141
2000-49
Superseded by
Rev. Proc. 2005-41, 2005-29 I.R.B.90
2001-16
Superseded by
Rev. Proc. 2005-42, 2005-30 I.R.B.128
2002-9
Modified and amplified by
Rev. Rul. 2005-42, 2005-28 I.R.B.67
Rev. Proc. 2005-35, 2005-28 I.R.B.76
Rev. Proc. 2005-43, 2005-29 I.R.B.107
2004-50
Superseded by
Rev. Proc. 2005-49, 2005-31 I.R.B.165
Revenue Rulings:
65-109
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
68-549
Obsoleted by
Rev. Rul. 2005-43, 2005-29 I.R.B.88
82-29
Modified and clarified by
Rev. Proc. 2005-39, 2005-28 I.R.B.82
2005-41
Corrected by
Ann. 2005-50, 2005-30 I.R.B.152
Treasury Decisions:
9186
Corrected by
Ann. 2005-53, 2005-31 I.R.B.258
9206
Corrected by
Ann. 2005-49, 2005-29 I.R.B.119
9207
Corrected by
Ann. 2005-52, 2005-31 I.R.B.257
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2005–1 through 2005–26 is in Internal Revenue Bulletin 2005–26, dated June 27, 2005.
2005–31 I.R.B.iiiAugust 1, 2005
*U.S. Government Printing Office: 2005—314–048/20016