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Rev. Proc. 2012-49 [United States Internal Revenue Bulletin](United States Internal Revenue Bulletin Via Acquire Media NewsEdge) TABLE OF CONTENTS Part A. General Section 1. Purpose ....................682 Section 2. What's New for Tax Year 2012.................... 683 Section 3. Where to File and How to Contact the IRS, Information Returns Branch (IRB).................... 683 Section 4. Form 4419, Application for Filing Information Returns Electronically (FIRE).................... 683 Section 5. Filing Requirements.................... 684 Section 6. Filing of Information Returns for Federal Contracts.................... 685 Section 7. Filing Dates.................... 685 Section 8. How to File Corrected Returns.................... 686 Section 9. Taxpayer Identification Numbers.................... 688 Section 10. State Abbreviations ....................688 Part B. Electronic Filing Specifications Section 1. General.................... 689 Section 2. Electronic Filing Approval Procedure.................... 689 Section 3. Electronic Submissions.................... 690 Section 4. PIN Requirements.................... 690 Section 5. Electronic Filing Specifications ....................690 Section 6. Connecting to the FIRE System.................... 691 Section 7. Common Problems and Questions Associated with Electronic Filing ....................693 Part C. Record Format Specifications and Record Layouts Section 1. File Layout Diagram.................... 694 Section 2. General.................... 695 Section 3. Transmitter "T" Record - General Field Descriptions.................... 695 Section 4. Transmitter "T" Record - Record Layout.................... 696 Section 5. Payer "A" Record - General Field Descriptions.................... 697 Section 6. Payer "A" Record - Record Layout.................... 698 Section 7. Payee "B" Record - General Field Descriptions.................... 699 Section 8. Payee "B" Record - Record Layout.................... 705 Section 9. End of Payer "C" Record - General Field Descriptions.................... 706 Section 10. End of Payer "C" Record - Record Layout.................... 707 Section 11. End of Transmission "F' Record - General Field Descriptions.................... 707 Section 12. End of Transmission "F' Record - Record Layout.................... 708 Part A. General Sec. 1. Purpose .01 Section 6050M of the Internal Revenue Code, which was added by section 1522 of the Tax Reform Act of 1986 (Public Law 99-514) and amended by section 1015(f) of the Technical and Miscellaneous Revenue Act of 1988 (Public Law 100-647), requires federal executive agencies to file an information return with the Internal Revenue Service (IRS) reporting the name, address and Taxpayer Identification Number (TIN) of each person and/or corporation with whom the agency enters into a contract, together with any other information required by treasury regulations. Such reporting is required when the contract amount equals or exceeds $25,000.00 including any amendments to the original contract. .02 The purpose of this revenue procedure is to provide the specifications for filing Form 8596, Information Return for Federal Contracts, and Form 8596-A, Quarterly Transmittal of Information Returns for Federal Contracts, with the IRS electronically through the Filing Information Returns Electronically (FIRE) system. .03 This revenue procedure applies to federal executive agencies, United States Postal Service, and the Postal Rate Commission, with respect to reporting their contracts and contract amendments where the net value of the contract exceeds $25,000.00. Federal executive agencies generally must report contracts in excess of $25,000.00 to the Federal Procurement Data Center (FPDC) and therefore are permitted to make an election to have the FPDC file with the IRS on their behalf. If the election is made by the federal executive agency, it must be made by the head of the Agency (or his or her delegate). The agency must not file directly with the IRS. See Part A, Section 5. Please read this Revenue Procedure carefully. .04 This Revenue Procedure supersedes Rev. Proc. 2010-38 published as Publication 1516 (Rev. 12-20 10), Specifications for Filing Forms 8596, Information Returns for Federal Contracts, Electronically. Sec. 2. What's New for Tax Year 2012 .01 Payment Year must be updated with the four-digit reporting year (2012 to 2013), unless reporting prior year data. .02 " Nature of Changes" has been changed to "What's New for Tax Year 2012." .03 A User Note area has been added between Part A and Part B. .04 The File Layout Diagram has been moved to the beginning of Part C, Record Format Specifications and Record Layouts. .05 The Name Control validation process has been updated in the Payee "B" Record. Reminder In this publication, all pertinent changes for Tax Year 2012 and names of forms and publications are emphasized by the use of italics. Portions of text that require special attention are in boldface text. Filers are always encouraged to read the publication in its entirety. Sec. 3. Where to File and How to Contact the Information Returns Branch .01 All information returns filed electronically are processed at the IRS. General inquiries concerning the filing of information returns should be sent to the following address: Internal Revenue Service Information Returns Branch 230 Murali Drive, Mail Stop 4360 Kearneysville, WV 25430 .02 To address concerns about specifications for electronic submissions, contact: Internal Revenue Service 1-866-^55-7438 Outside the U.S. 1-304-263-8700 Telecommunication Device for the Deaf (TDD) 1-304-579^1827 Fax Within the U.S. - 1-877^177-0572 Outside the U.S. - 1-304-579^1105 Electronic Filing - FIRE system Production URL - http://fire.irs.gov Test URL- http ://fire.test jrs.gov To Obtain Publications, Forms and Instructions 1-800-TAX-FORM (1-800-829-3676) or http://www.irs.gov Sec. 4. Form 4419, Application for Filing Information Returns Electronically (FIRE) .01 Transmitters are required to submit Form 4419, Application for Filing Information Returns Electronically, to request authorization to file information returns with the IRS. In Block 7, check the box next to the returns you will file electronically with the IRS. Upon approval, a five-character alphanumeric Transmitter Control Code (TCC) will be assigned. An approval letter will be issued to the payer advising of the TCC. A separate TCC will be assigned for each box checked in Block 7. Note: An additional Form 4419, Application for Filing Information Returns Electronically (FIRE), must be submitted for a subsequent request to electronically file a form that was not selected on Block 7 on the original application. .02 Electronically filed returns may not be submitted to the IRS until the application has been approved. .03 The TCC must be coded in the Transmitter 'T" Record. The IRS uses the TCC to identify payers/transmitters and to track files through the processing system. .04 Form 4419, Application for Filing Information Returns Electronically (FIRE), may be submitted anytime during the year; however, it must be submitted to the IRS at least 45 days before the due date of the return(s) for current year processing. .05 Once a filer/transmitter is approved to file electronically, it is not necessary to reapply with the following exceptions: (a) If filers/transmitters do not use a TCC for two consecutive years. (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 the IRS and wishes to prepare the files. The payer must request a TCC. .06 Approval to file does not imply endorsement by the IRS of any computer software or of the quality of tax preparation services provided by a service bureau or software vendor. Sec. 5. Filing Requirements .01 The requirements for Federal contracts are governed by section 60 1 1 (e)(2)(A) and section 6050M of the Internal Revenue Code and Regulation section 1.605 0M-1. The term federal executive agency means: (1) any executive agency (as defined in Section 105 of title 5, United States Code) other than the Government Accountability Office; (2) any military department (as defined in section 102 of such title); and (3) the United States Postal Service and the Postal Rate Commission. A federal executive agency that files 250 or more reportable contracts during a one year period, must file Form 8596, Information Return for Federal Contracts, in an electronic file for each quarter of that one year period. .02 The information returns required by this section with respect to contracts of a federal executive agency entered into on or after January 1, 1989, must be filed on a quarterly basis for the calendar quarters ending on the last day of March, June, September, and December, on or before the last day of the month following the quarter for which the returns are being made. .03 The information returns required by this section may be made in one submission or in multiple submissions. .04 Except for the U.S. Postal Service and the Postal Rate Commission, a federal executive agency may elect to have the Director of the Federal Procurement Data Center (FPDC) file the required returns with the IRS on behalf of the agency. The agency must comply with the requirements of the Federal Procurement Data System (FPDS) in submitting the information and must not file with the IRS. .05 In order to make this election, the head of a federal executive agency (or his or her delegate) shall attach a signed statement to its submission to the FPDC for that quarter stating the following: (a) The Director of the FPDC (or his or her delegate) is authorized to submit the required returns on behalf of the agency for contracts for that quarter in accordance with an election under 26 CFR, section 1.6050M-l(d)(5). (b) Under the penalties of perjury, the official has examined the information submitted by the agency to the FPDC for use in creating returns to be submitted to the IRS and the official certifies that information to be, to the best of his or her knowledge and belief, an accurate compilation of agency records maintained in the normal course of business for the purpose of making true, correct, and complete returns as required by section 6050M. .06 An agency that elects to have the FPDC file its returns must not submit those same returns to the IRS. .07 If a contract is increased by more than $25,000.00 under one action, the action should be treated as a new contract and reported to the IRS for the calendar quarter in which the increase occurs. This could occur through the exercise of an option contained in a basic or initial contract or under any other rale of contract law, expressed or implied, when the amount of money or other property obligated under the contract is increased by $25,000.00. .08 Special rules to filing requirements are as follows: (a) If a subcontract is entered into by the Small Business Administration (SBA) under a prime contract between SBA and a procuring federal agency pursuant to section 8(a) of the Small Business Act, the procuring agency, not the SBA, will be required to file Forms 8596 and 8596-A. (b) A Federal Supply Schedule Contract or an Automated Data Processing Schedule Contract entered into by the General Services Administration (GSA), or a scheduled contract entered into by the Department of Veterans Affairs (VA) on behalf of one or more federal executive agencies, is not to be reported by the GSA or VA at the time of execution. When a federal executive agency, including the GSA or the VA, places an order under a schedule contract, the federal executive agency must file Forms 8596 Information Return for Federal Contracts, and Form 8596-A, Quarterly Transmittal of Information Returns for Federal Contracts. .09 The following are not required to be reported under section 6050M: (a) Any contract action of $25,000.00 or less. (b) Any contract which provides that all amounts payable under the contract by a federal executive agency will be paid on or before the 120th day following the date of the contract action and for which it is reasonable to expect that all amounts will be so paid; (c) A license granted by a federal executive agency. (d) An obligation of a contractor (other than a federal executive agency) to a subcontractor. (e) Debt instruments of the U.S. Government or a federal agency, such as Treasury Notes, Treasury Bonds, Treasury Bills, U.S. Savings Bonds, or similar instruments. (f) An obligation of a federal executive agency to lend money, lease property to someone or sell property. (g) A blanket purchase agreement; however, when an order is placed under a blanket purchase agreement, a contract then exists and Forms 8596, Information Return for Federal Contracts, and Form 8596-A, Quarterly Transmittal of Information Returns for Federal Contracts, must be filed. (h) Any contract with a contractor who, in making the agreement, is acting in his or her capacity as an employee of a federal executive agency (for example, any contract of employment under which the employee is paid wages subject to Federal income tax withholding). (i) Any contract between a federal executive agency and another Federal Governmental unit or any subsidiary agency. (j) Any contract with a foreign government or agency or any subsidiary agency. (k) Any contract with a state or local government or agency or any subsidiary agency. (1) Any contract with a person who is not required to have a Taxpayer Identification Number (TIN), such as a nonresident alien, foreign corporation or foreign partnership, any of which does not have income effectively connected with the conduct of a trade or business in the United States and does not have an office or place of business as a fiscal or paying agent in the United States. (m) Certain confidential or classified contracts that meet the requirements of section 6050M(e). (n) Any contract that provides that all payments made after the 120th day after the date of the contract action will be made by someone other than a federal executive agency or an agent of such an agency. For example, a contract under which the contractor will collect amounts owed to a federal executive agency from the agency's debtor and will remit to the federal executive agency, the money collected less an amount for the contractor's consideration under the contract. (o) Contracts entered into using nonappropriated funds. Sec. 6. Filing of Information Returns For Federal Contracts .01 If a federal executive agency has reasonable expectations to enter into fewer than 250 reportable contracts during a one year period, the agency may file paper Forms 8596, Information Return for Federal Contracts, and Forms 8596-A, Quarterly Transmittal of Information Returns for Federal Contracts. All paper forms for original and corrected returns should be filed with: Department of the Treasury IRS Service Center Kansas City, MO 64999-2222 .02 If a federal executive agency elects to have the FPDC creating returns on its behalf, the FPDC shall mail or fax a copy of that agency's signed statement, making the election, to the IRS for that agency for that quarter (See Part A, Sec. 5). .03 The transmitter must not report the same information on paper forms that is reported electronically. If some of the returns are reported on paper and some electronically, the transmitter must be sure that duplicate information is not included on both. This does not mean that corrected documents should not be filed. If a return has been prepared and submitted improperly, a corrected return must be filed as soon as possible. See Part A, Sec. 8 for requirements and instructions on filing corrected returns. .04 Agencies are required to retain a copy of the information returns filed with the IRS for at least three years or have the ability to reconstruct the data. Sec. 7. Filing Dates .01 The information returns required by this section must be filed on a quarterly basis for the calendar quarters as follows: .02 The director of the FPDC (or his or her delegate) shall submit the required return quarterly to the IRS on or before the earlier date of: (a) 45 days following the date that the contract information is required to be submitted to the FPDC, or (b) 90 days following the end of the calendar quarter for which the election is made, except that, if the calendar quarter ends September 30,105 days following the end ofthat quarter. .03 If any due date falls on a Saturday, Sunday or legal holiday, the filing deadline is extended to the next day that is not a Saturday, Sunday, or legal holiday. Sec. 8. How to File Corrected Returns * A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and processed by the IRS, but contained erroneous information. * Do not send your entire file again. Only send the information returns in need of correction. * Information returns omitted from the original file must not be coded as corrections. Submit them under a separate Payer "A" Record as original returns. * Before creating your correction file, review the following guidelines chart carefully. .01 When corrections are necessary, they must be filed in the next filing quarter. If the entire file submitted electronically was in error, the IRS should be contacted immediately (See Part A, Sec. 3) .02 Corrections should be filed as soon as possible. All fields must be completed with the correct information, not just the data fields needing correction. Submit corrections only for the returns filed in error, not the entire file. Furnish corrected statements to recipients as soon as possible. Note: Do not resubmit your entire file as corrections. This may result in duplicate filing and erroneous notices may be sent to payees. Submit only those returns which need to be corrected. .03 There 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. .04 Corrected returns may be included on the same file as original returns; however, separate "A" Records are required. 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. .05 Review the chart that follows. Errors normally fall under one of the two categories listed. Next to each type of error is a list of instructions on how to file the corrected return. Sec. 9. Taxpayer Identification Numbers .01 Contractors are required to furnish Taxpayer Identification Numbers (TINs) to the agency under section 6109 of the Internal Revenue Code. .02 The contractor's TIN and name combination is used to associate information returns reported to the IRS with corresponding information on tax returns. It is imperative that correct social security numbers (SSN) or employer identification numbers (EIN) for contractors be provided to the IRS. Do not enter hyphens or alpha characters. Entering all zeros, ones, twos, etc., will have the effect of an incorrect TIN. .03 The IRS validates the SSN by using the Name Control of the surname of the individual who has been assigned this number. For this reason, the surname should be provided in the Payee Name Line and/or the Name Control in positions 7-10 of the Payee "B" Record. It is imperative to provide correct information for the IRS to validate the SSN. The IRS validates an EIN by using the name control of the business to which the EIN has been assigned. If an EIN is reported for a contractor, the correct business name should be provided in the First Payee Name Line and/or Name Control in positions 7-10 of the Payee "B" Record. .04 For sole proprietors, the owner's name (not the doing business as (DBA) name) must appear in the Payee Name Line. The for a sole proprietor may be either an EIN or SSN. .05 The TIN to be furnished to the IRS depends primarily upon the manner in which the account is maintained or set up on the agency's record. The payer and payee names and TINs should be consistent with the names and numbers used on other tax returns. The TIN must be that of the contractor. If the contract is recorded in more than one name, the transmitter must furnish the TIN and name of one of the contractors. The TIN provided must be associated with the name of the contractor provided in the First Payee Name Line of the Payee "B" Record. Sec. 10. State Abbreviations .01 The following state and U.S. territory abbreviations are to be used when developing the state code portion of address fields. .02 Filers must adhere to the city, state, and zip code format for U.S. addresses in the "B" Record. This also includes American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. .03 For foreign country addresses, filers may use a 5 1 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. .04 When reporting APO/FPO addresses use the following format: EXAMPLE: Payee Name PVT Willard J. Doe Mailing Address Company F, PSC Box 100 Payee City 167 Infantry REGT Payee State APO (or FPO) Payee ZIP Code AE, AA, or AP* 098010100 *AE is the designation for zip codes beginning with 090-098, AA for zip code 340, and AP for zip codes 962-966. Part B. Electronic Filing Specifications Sec. 1. General .01 Electronic filing of Form 8596 returns, originals, corrections, and replacements is offered as an alternative to paper filing. There is no minimum number of forms filing requirement; therefore, any number of forms may be filed electronically (See Part A. Sec 5.01 for filing thresholds). Payers who are under the filing threshold requirement are encouraged to file electronically. .02 All electronic filing of information returns are received at the IRS via the FIRE (Filing Information Returns Electronically) system. To connect to the FIRE system, point your browser to http://fire.irs.gov. The system is designed to support the electronic filing of information returns only. .03 The 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. .04 Files submitted to IRS electronically must be in standard ASCII code. Do not send paper forms with the same information as electronically submitted files. This would create duplicate reporting resulting in penalty notices. .05 If a federal executive agency elects to have the FPDC make returns on its behalf, the FPDC must mail or fax a copy of that agency's signed statement, making the election, to IRS (see Part A, Sec. 5). .06 See Part C, Record Format Specifications and Record Layouts. Sec. 2. Electronic Filing Approval Procedure .01 Filers must obtain a Transmitter Control Code (TCC) prior to submitting files electronically. Filers who currently have a TCC may use their assigned TCC for electronic filing. Refer to Part A, Sec. 4, for information on how to obtain a TCC. .02 Once a TCC is obtained, electronic filers must create their own User ID, password and Personal Identification Number (PIN). See Part B, Sec. 4, for more information on the PIN. .03 If a filer is submitting files for more than one TCC, it is not necessary to create a separate logon and password for each TCC. .04 For all passwords, it is the user's responsibility to remember the password and not allow the password to be compromised. Passwords are created by the user at the first logon and must be eight alphanumeric characters containing at least one uppercase, one lowercase, and one numeric. Filers who forget their password or PIN can call 1-866-455-7438 for assistance. The FIRE system requires users to change passwords every 90 days or at the first logon attempt after that time period. Users can change passwords at any time from the Main Menu. The previous 24 passwords cannot be used. Sec. 3. Electronic Submissions .01 Electronically filed information may be submitted to IRS 24 hours a day, seven days a week. Technical assistance will be available Monday through Friday between 8:30 a.m. and 4:30 p.m. Eastern Time (ET) by calling 1-866-455-7438. .02 The FIRE and FIRE test systems will be down from 6p.m. (ET) December 14, 2012, through January 2, 2013. This allows the IRS to make yearly updates to reflect current year changes. In addition, the FIRE system may be down every Wednesday from 2:00 am. to 5:00 a.m. (ET) for programming updates. The FIRE system will not be available for submissions during these times. .03 A file may not exceed 2.5 million records. When sending files larger than 10,000 records electronically, data compression is encouraged. WinZip and PKZIP are the only acceptable compression packages. The IRS 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 up to 95% by using compression. When having trouble transmitting files with a scripting process, please contact the IRS at 1-866-455-7438 for assistance. .04 Transmitters may create files using self assigned filename(s). Files submitted electronically will be assigned a new unique filename by the FIRE system. The filename assigned by the FIRE system will consist of the submission type, the filer's TCC and a four-digit sequence number. The sequence number will be incremental for every file sent. For example, if this is the first original file for the calendar year and the TCC is 44444, the IRS assigned filename would be ORIG.44444.0001. Record the filename. This information will be needed by the IRS to identify the file, if assistance is required. .05 If a file submitted timely is bad, the filer will have up to 60 days from the day the file was transmitted to submit an acceptable replacement file. If an acceptable replacement file is not received within 60 days, the payer could be subject to late filing penalties. This only applies to files originally submitted electronically. .06 The following definitions have been provided to help distinguish between a correction and a replacement: * A correction is an information return submitted by the transmitter to correct an information return that was previously submitted to and successfully processed by the IRS, but contained erroneous information. Note: Corrections should only be made to records that have been submitted incorrectly, not the entire file. * A replacement is an information return file sent by the filer because the CHECK FILE STATUS option on the FIRE system indicated the original/correction file was bad. After the necessary changes have been made, the file must be transmitted through the FIRE system. Note: Filers should never transmit anything to the IRS as a "Replacement" file unless the CHECK FILE STATUS option on the FIRE system indicates a previous file is bad. Sec. 4. PIN Requirements .01 The user will be prompted to create a PIN consisting of ten (10) numeric characters when establishing an initial User ID name and password. .02 The PIN is required each time an ORIGINAL, CORRECTION, or REPLACEMENT file is sent electronically and is permission to release the file. Authorized agents 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 there is a problem with a PIN, filers should call 1-866^155-7438 for assistance. .03 If the file is good, it is released for mainline processing after ten (10) calendar days from receipt. Contact the IRS at 1-866-455-7438 within the ten (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. 5. Electronic Filing Specifications .01 The FIRE system is designed exclusively for the filing of Forms 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027, 8596, 8935, 8955-SSA, and W-2G. .02 A transmitter must have a TCC (see Part A, Sec. 4) before a file can be transmitted. .03 After one or two business days, the results of the electronic transmission(s) will be sent to the email address that was provided on the "Verify Your Filing Information" screen. If using email filtering software, configure software to accept email from [email protected] and [email protected]. If the file is bad, the filer must return to http://fire.irs.gov or http://fire.testirs.gov to determine what errors are in the file by clicking on "CHECK FILE STATUS". Sec. 6. Connecting to the FIRE System .01 Have the TCC and TIN available before connecting. .02 Turn off pop-up blocking software before transmitting files. .03 Make sure the browser supports the security standards listed below. .04 Set the browser to receive "cookies." Cookies are used to preserve the User ID status. .05 Point the browser to http://fire.irs.gov to connect to the FIRE system. .06 FIRE Internet Security Technical Standards are: HTTP 1.1 Specification (http ://www. w3.org/Protocols/rfc26 16/rfc26 16.txt). SSL 3.0 or TLS 1.0. SSL and TLS are implemented using SHA and RSA 1024 bits during the asymmetric handshake. The filer can use one of the following encryption algorithms, listed in order of priority, using SSL or TLS: AES 256-bit (FIPS-197) AES 128-bit (FIPS-197) TDES 168-bit (FIPS-46-3) .07 First time connection to The FIRE System (If there has been a previous logon, skip to "Subsequent Connections to the FTRE system.") * Click "Create New Account" * Fill out the registration form and click "Submit" * Create User ID * Create and verify password (The password is user created and must be eight alphanumeric characters, containing at least one uppercase, one lowercase, one numeric and cannot contain the User ID. The FIRE system requires passwords to be changed every 90 days or at the first logon attempt after 90 days. The previous 24 passwords cannot be used.) * Click "Create" * If the message "Account Created," is received, click "OK" * Create and verify the ten-digit self-assigned PIN (Personal Identification Number) * Click "Submit" * If the message "Your PIN has been successfully created!" is received, click "OK" * Read the bulletin(s) and/or "Click here to continue" .08 Subsequent connections to the FIRE System * Click "Log On" * Enter the User ID * Enter the Password (the password is case sensitive) * Read the bulletin(s) and/or "Click here to continue" .09 Uploading a file to the FIRE System At the Menu Options: * Click "Send Information Returns" * Enter the TCC * Enter the TIN * Click "Submit" - The system will then display the company name, address, city, state, ZIP code, telephone number, contact and email address. This information will be used to email the transmitter regarding the transmission. * Update as appropriate and/or Click "Accept" Note: Be sure to provide an accurate email address for the correct person to receive the email and to avoid having the email returned to the IRS as undeliverable. If SPAM filtering software is being used, configure it to allow an email from [email protected] and [email protected]. Click one of the following: * Original File * Replacement File * Correction File Enter the ten-digit PIN Click "Submit ' Click "Browse" to locate the file and open it. Click "Upload" When the upload is complete, the screen will display the total bytes received and the KS assigned filename for the file. If this information is not displayed on the screen, the IRS may not have received the file. To verify, go to the "CHECK FRUi STATUS" option on the Main Menu. If the filename is displayed, the count is equal to "0," and the results indicate "not yet processed," KS received the file. If the filename is not displayed, send the file again. If there are more files to upload for that TCC: * Click "File Another " otherwise, * Click "Main Menu" It is the filer's responsibility to check the acceptability of submitted files. If an email is not received within two business days or an email is received and it indicates the file is bad, log back into the FIRE system and click on "Check File Status" to view the results of the file(s). .10 Checking the FILE STATUS If the correct email address was provided on the "Verify Your Filing Information" screen when the file was sent, an email will be sent regarding the FILE STATUS. If the results in the email indicate "Good, not Released" and the "Count of Payees" is correct, the filer is finished with this file. If the email indicates any other results, follow the instructions below. At the Main Menu: * Click "Check File Status" * Enter the TCC * Enter the TIN * Click "Search" If the results on http://fire.irs.gov indicate: "Good, Not Released" - If the "Count of Payees" is correct, the filer is finished with this file. The file will automatically be released after ten calendar days unless the filer contacts KS within this timeframe. "Good, Released" - The file has been released to our mainline processing. "Bad" - The file has errors. Click on the filename to view the error message(s), fix the errors, and resubmit the file timely as a "replacement". "Not yet processed" - The file has been received, but results are not available. Please check back in a few days. When finished * Click "Log Out" * Click "Close Web Browser" Sec. 7. Common Problems and Questions The IRS 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 the IRS 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 software packages. Filers who engage a service bureau to transmit files on their behalf should be careful not to report duplicate data, which may generate penalty notices. This section lists some of the problems most frequently encountered with electronic files submitted to the IRS. These problems may result in the IRS requesting replacement files. 1. Transmitter does not check the FIRE system to determine file acceptability. The results of a file transfer are posted to the FIRE system within two business days. If the correct email address was provided on the "Verify Your Filing Information" screen when the file was sent, an email will be sent regarding the FDJi STATUS. If the results in the email indicate "Good, Not Released" and the "Count of Payees" is correct, then the file is finished. If there are any other results, follow the instructions in the "Check File Status" option. If the file contains errors, an online error listing is available. Date received and the number of payee records is also displayed. If the file is good, but the file should not be processed, contact the IRS toll-free at 1-866-455-7438 within ten calendar days from the transmission of the file. 2. SPAM filters are not set to receive email from [email protected] and [email protected]. To receive emails concerning files, processing results, reminders and notices, set the SPAM filter to receive email from [email protected] and [email protected]. 3. Incorrect email address provided. When the "Verify Your Filing Information" screen is displayed, make sure the correct email address is listed. If not, update with the correct email address. 4. A bad file is not replaced timely. If a file is bad, correct the file and timely resubmit as a replacement. 5. Transmitter compresses several files into one. Only compress one file at a time. For example, if there are ten uncompressed files to send, compress each file separately and send ten separate compressed files. 6. 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, a replacement file cannot be sent unless CHECK FILE STATUS indicates the file is bad (1-2 business days after the file was transmitted). If the file should not be processed, contact the IRS toll-free at 1-866-455-7438 to see if this is a possibility. 7. 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. 8. File is formatted as EBCDIC. All files submitted electronically must be in standard ASCII code. 9. Transmitter has one TCC, but is filing for multiple companies, which EIN should be used submitting the file When sending the file electronically, enter the G of the company assigned to the TCC. 10. Transmitter sent the wrong file, what should be done Call the IRS as soon as possible at 1-866-455-7438. The file may be stopped before it has been processed. Do not send a replacement for a file that is marked as a good file. Part C. Record Format Specifications and Record Layouts Sec. 1. File Layout Diagram Sec. 2. General .01 The specifications contained in this part of the revenue procedure defines the required format and contents of the records to be included in the electronic files. .02 A 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 description explains the intended use of specific field positions. Sec. 3. Transmitter "T" Record - General Field Descriptions .01 The Transmitter 'T" Record identifies the entity transmitting the electronic file and contains information which is critical if it is necessary for the IRS to contact the transmitter. .02 The 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 beginning of Part C. A replacement file will be requested by the IRS if the 'T" Record is not present. .03 For 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. .04 All records must be a fixed length of 750 positions. .05 All alpha characters entered in the 'T" Record must be upper-case, except email addresses which may be case sensitive. Do not use punctuation in the name and address fields. Sec. 4 Transmitter "T" Record - Record Layout Sec. 5. Payer "A" Record - General Field Descriptions .01 The Payer "A" Record identifies the agency that made the payments and provides parameters for the succeeding Payee "B" Records. The IRS' computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the "B" Record to which they apply. .02 All records must be a fixed length of 750 positions. .03 An "A" Record may be blocked with "B" Records; however, the initial record on a file must be a Transmitter 'T" Record followed by a Payer "A" Record. The IRS will accept an "A" Record after a "C" Record. .04 The number of "A" Records appearing on the file will depend on the number of agencies being reported. A separate "A" Record is required for each agency followed by the Payee "B" Records for the agency. Each set of "B" Records is followed by a summary "C" Record. If more than one agency is being reported on a file, an "A" Record may follow a "C" Record (that is, The "A", "B", and "C" Records for one agency may be followed by "A", "B", and "C" Records for the next agency, etc.). .05 All alpha characters entered in the "A" Record must be uppercase. .06 Do not begin any record at the end of a block and continue the same record into the next block. .07 For 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 file position(s) and for the indicated length. Sec. 6. Payer "A" Record - Record Layout Sec. 7. Payee "B" Record - General Field Descriptions .01 The Payee "B" Record contains payment information from the individual contracts. When filing information documents electronically, the format for the Payee "B" Records will remain constant. .02 All records must be a fixed length of 750 positions. .03 Follow the specifications below to complete the field in the payee records called "Name Control" in which the first four characters of the payee's last name are to be entered by the filer. If filers are unable to determine the first four characters of the last name, the Name Control Field may be left blank. Compliance with the following will facilitate the computer programs in identifying the correct name control: (a) A name control for an individual is generally the first four characters of the last name on the information return. (1) The name control consists of four alpha and/or numeric characters. (2) The hyphen (-) or a blank space are the only special characters allowed in the name control. These characters cannot be in the first position of the name control. (3) The name control can have less, but no more than four characters. BlanL· may be present only as the last three positions of the name control. (4) If an individual has a hyphenated last name, the name control is the first four characters from the first of the two last names. (5) For joint returns, regardless of whether the payees use the same or different last names, the name control is the first four characters of the primary pay ee' s last name. (b) A sole proprietor must always use his/her individual name as the legal name of the business for IRS purposes. (1) The name control consists of four alpha and/or numeric characters. (2) The hyphen (-) or a blank space are the only special characters allowed in the name control. These characters cannot be in the first position of the name control. (3) The name control can have less, but no more than four characters. BlanL· may be present only as the last three positions of the name control. (4) The name control for a sole proprietor's name is the first four significant characters of the last name. (5) When the taxpayer has a true name and a trade name, the name control is the first four characters of the individual's last name. (6) When two last names are used but are not hyphenated, the name control is the first four characters of the second last name. (7) When an individual's two last names are hyphenated, the name control is the first four characters of the first last name. (8) For Spanish names, when an individual has two last names, the name control is the first four characters of the first last name. (9) The Spanish phrases "de", "De" "del" and "de la" are part of the name control. (10) For last names that have only two letters the last two spaces will be "blank". (11) Vietnamese names will often have a middle name of Van (male) or Thi (female). (c) The name control for a corporation is the first four significant characters of the corporate name. (1) Omit the word "The" when followed by more than one word. (2) Include the word "The" in the name control when followed by only one word. (3) Corporate name control rules apply if an individual name contains the abbreviations PC (Professional Corporation), SC (Small Corporation), PA (Professional Association), PS (Professional Service), or PSC (Personal Service Corporation). (4) When the organization name contains the words "Fund" or "Foundation", corporate name control rules apply. (5) When an individual name and a corporate name appear, the name control is the first four characters of the corporation name. (d) The name control for a partnership will usually result in the following order of selection: (1) For businesses "doing business as" (dba) or with a trade name, use the first four characters of the dba or trade name. (2) If there is no business or trade name, use the first four characters of the partnership name (even if it is an individual's name, such as in a law firm partnership). (3) Online receipt of EINs generates separate rules for the name control of partnerships. (4) Whether received online or via paper, if the first word is "The," disregard it unless it is followed by only one other word. (5) If the EIN was assigned online (the EIN will begin with one of the following two digits: 20, 26, 27, or 45), then the name control for a partnership is developed using the first four characters of the primary name line. (6) If the first two digits of the EIN are other than 20, 26, 27, or 45, the name control for a partnership results from the trade or business name of the partnership. If there is no trade or business name, a name control results from the first four letters of a partnership name, in the case of a list of partners followed by the word partnership or an abbreviation thereof, or the last name of the first partner on the original Form SS-4, Application for Employer Identification Number. (e) The name control for estates is the first four characters of the last name of the decedent. The last name of the decedent must have the word "Estate" after the first four characters in the primary name line. (f) The name control for trusts and fiduciaries results in the following: (1) Name controls for individual trusts are created from the first four characters of the individual's last name. (2) For corporations set up as trusts, use the first four characters of the corporate name. (3) There are separate rules for the name control of trusts, depending on whether the EIN is an online assignment. (4) If the EIN is assigned online (the EIN will begin with one of the following two digits: 20, 26, 27, or 45), then the name control is developed using the first four characters of the first name on the primary name line. (Note: The online EIN application will begin assigning the first two digits of 46 and 47 in the future. Ignore leading phrases such as "Trust for" or "Irrevocable Trust". (5) If the first two digits of the EIN are other than 20, 26, 27, or 45, (46 and 47, in the future) then the name control for a trust or fiduciary account results from the name of the person in whose name the trust or fiduciary account is established. (g) The only organization, which you will always abbreviate, is Parent Teachers Association (PTA). The name control will be "PTA" plus the first letter of the name of the state in which the PTA is located. (h) The name control for a local or post number is the first four characters of the national title. (i) Use the name control of the national organization name if there is a Group Exemption Number (GEN). (j) For churches and their subordinates (for example nursing homes, hospitals), the name control consists of the first four characters of the legal name of the church or subordinate. (k) If the organization's name indicates apolitical organization, use the individual's name as the name control. (l) The words Kabushiki Kaisha or Gaisha are the Japanese translation of the words "stock company" or "corporation." Therefore, if these words appear in a name line, these words would move to the end of the name where the word corporation " would normally appear. .04 For 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. .05 All alpha characters entered in the "B" Record must be uppercase. .06 Decimal points (.) cannot be used to indicate dollars and cents. .07 The IRS strongly encourages filers to review data for accuracy before submission to facilitate the collection of delinquent federal tax liabilities from contractors. Filers should be especially careful that names, TINs, and income amounts are correct. Sec. 8. Payee "B" Record - Record Layout Sec. 9. End of Payer "C" Record - General Field Descriptions .01 The End of Payer "C" Record is a fixed record length of 750 positions. .02 The control total field is 18 positions in length. .03 The End of Payer "C" Record is a summary record for a given payer. .04 The "C" Record will contain the total number of payees and total of the payment amounts of a given payer. The "C" Record must be written after the last Payee "B" Record for a given payer. For each "A" Record and group of "B" Records on the file, there must be a corresponding "C" Record. .05 Payers/Transmitters should verify the accuracy of the totals since data with missing or incorrect "C" Records will require a replacement. Sec. 10. End of Payer "C" Record - Record Layout Sec. 11. End of Transmission "F" Record - General Field Descriptions .01 The End of Transmission "F' Record is a fixed record length of 750 positions. .02 The "F" Record is a summary of the number of payers in the entire file. .03 This record should be written after the last "C" Record of the entire file. Sec. 12. End of Transmission "F" Record - Record Layout (c) 2012 Superintendent of Documents |