Instructions For Forms 1099-Sa And 5498-Sa - 2006 (Page 9 of 25) in pdf

See Pub. 1179 for specifications for private printing of

Due dates. File Forms 1098, 1099, or W-2G on magnetic

substitute information returns. You may not request special

media by February 28, 2007. If you file electronically, you may

consideration. Only forms that conform with the official form and

file by April 2, 2007. File Form 5498, 5498-ESA, or 5498-SA by

the specifications in Pub. 1179 are acceptable for filing with the

May 31, 2007. See part M on page GEN-9 about providing

IRS.

Forms 1098, 1099, 5498, and W-2G or statements to recipients.

Transmitters, paying agents, etc. A transmitter, service

Extension of time to file. For information about requesting an

bureau, paying agent, or disbursing agent (hereafter referred to

extension of time to file, see Extension under part C on page

as “agent”) may sign Form 1096 or Form 4804 on behalf of any

GEN-4.

person required to file (hereafter referred to as “payer”) if the

If you file electronically or on magnetic media, do not file

conditions in 1 and 2 below are met.

the same returns on paper.

1. The agent has the authority to sign the form under an

CAUTION

agency agreement (oral, written, or implied) that is valid under

Who must file on magnetic media. If you are required to file

state law and

250 or more information returns, you must file on magnetic

2. The agent signs the form and adds the caption “For:

media. The 250-or-more requirement applies separately to each

(Name of payer).”

type of form. For example, if you must file 500 Forms 1098 and

Signing of the form by an authorized agent on behalf of the

100 Forms 1099-A, you must file Forms 1098 on magnetic

media, but you are not required to file Forms 1099-A on

payer does not relieve the payer of the liability for penalties for

magnetic media.

not filing a correct, complete, and timely Form 1096 or Form

4804 and accompanying returns.

The magnetic media filing requirement does not apply if you

Forms 1098, 1099, 5498, W-2G, or acceptable substitute

apply for and receive a hardship waiver. See How to request a

statements to recipients issued by a service bureau or agent

waiver from filing on magnetic media below.

should show the same payer’s name as shown on the

The IRS encourages you to file on magnetic media or

information returns filed with the IRS.

TIP

electronically even though you are filing fewer than 250

For information about the election to report and deposit

returns.

backup withholding under the agent’s TIN and how to prepare

Filing requirement applies separately to originals and

forms if the election is made, see Rev. Proc. 84-33, 1984-1 C.B.

corrections. The magnetic media filing requirements apply

502.

separately to original returns and corrected returns. Originals

Keeping copies. Generally, keep copies of information returns

and corrections are not aggregated to determine whether you

you filed with the IRS or have the ability to reconstruct the data

are required to file on magnetic media. For example, if you file

for at least 3 years, 4 years for Form 1099-C, from the due date

400 Forms 1098 on magnetic media and you are making 75

of the returns. Keep copies of information returns for 4 years if

corrections, your corrections can be filed on paper because the

backup withholding was imposed.

number of corrections for Form 1098 is less than the 250 filing

Shipping and mailing. Send the forms to the IRS in a flat

requirement. However, if you were filing 250 or more Form

mailing (not folded). If you are sending many forms, you may

1098 corrections, they would have to be filed on magnetic

send them in conveniently sized packages. On each package,

media.

write your name, number the packages consecutively, and

Reporting incorrect payer name and/or TIN. If a payer

place Form 1096 in package number one. Postal regulations

discovers an error in reporting the payer name and/or TIN, write

require forms and packages to be sent by First-Class Mail.

a letter to IRS/ECC-MTB (see below) containing the:

1. Name and address of the payer,

2. Type of error (including the incorrect payer name/TIN that

F. Electronic/Magnetic Media Reporting

was reported),

Magnetic media reporting may be required for filing all

3. Tax year,

information returns discussed in these instructions (see Who

4. Payer TIN,

must file on magnetic media below). Acceptable forms of

5. Transmitter Control Code (TCC), if applicable,

magnetic media are IBM 3480, 3490, 3490E, 3590, or 3590E

6. Type of return,

tape cartridges.

7. Number of payees, and

For returns filed after December 31, 2006, Enterprise

8. Filing method (paper, electronic, or magnetic media).

Computing Center — Martinsburg (ECC-MTB) will no longer

Send the letter to Enterprise Computing Center — Martinsburg,

accept 3

-inch diskettes for filing information returns.

Information Reporting Program, 240 Murall Drive,

For returns filed after December 31, 2008, Enterprise

Kearneysville, WV 25430. Also see Pub. 1220, Part A,

TIP

Computing Center — Martinsburg (ECC-MTB) will no

Section 11.

longer accept tape cartridges. Electronic filing will be the

If a payer realizes duplicate reporting or a large percentage

only acceptable method for filing information returns with

of incorrect information has been filed, contact the information

ECC-MTB.

reporting customer service site at 1-866-455-7438 for further

Pub. 1220, Specifications for Filing Forms 1098, 1099, 5498,

instructions.

and W-2G Electronically or Magnetically, provides the

How to get approval to file on magnetic media. File Form

procedures for reporting electronically or magnetically. Pub.

4419, Application for Filing Information Returns Electronically/

1220 is available on the IRS website at or as

Magnetically, at least 30 days before the due date of the

Revenue Procedure 2006-33 which is available on page 140 of

returns. File only one Form 4419 for all types of returns that will

Internal Revenue Bulletin 2006-32 at /pub/irs-irbs/

be filed on magnetic media. Once you have received approval,

irb06-32.pdf. Different types of payments, such as interest,

you need not reapply each year. The IRS will provide a written

dividends, and rents, may be reported on the same tape or

reply to the applicant and further instructions at the time of

other submission.

approval, usually within 30 days. A magnetic media reporting

package, which includes all the necessary transmittals and

You can file electronically through the Filing Information

instructions, will be mailed to all approved filers.

Returns Electronically System (FIRE System); however,

you must have software that can produce a file in the

How to request a waiver from filing on magnetic media. To

proper format according to Pub. 1220. The FIRE System does

receive a waiver from the required filing of information returns

not provide a fill-in form option. The FIRE System operates 24

on magnetic media, submit Form 8508, Request for Waiver

hours a day, 7 days a week. You may access the FIRE System

From Filing Information Returns Electronically/Magnetically, at

via the Internet at See Pub. 1220 for more

least 45 days before the due date of the returns. You cannot

information.

apply for a waiver for more than 1 tax year at a time. If you

GEN-5

Instructions For Forms 1099-Sa And 5498-Sa - 2006 Page 9

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