Revenue Procedure 2023-28
Internal Revenue Service
2023-43 I.R.B. 1092
   
   
   
 NOTE.   This revenue procedure will be reproduced as the next revision of IRS Publication 1167, General Rules and Specifications for Substitute Forms and Schedules.   
   
Rev. Proc. 2023-28 
   
                          
     
 Part 1    
 Introduction to Substitute Forms    
     
     
 Section 1.1 - Overview of Revenue Procedure 2023-28    
     
     
 1.1.1    
The purpose of this revenue procedure is to provide guidelines and general requirements for the   
 Purpose    
development, printing, and approval of the 2023 substitute tax forms. Approval will be based on   
     
these guidelines. After review and approval, submitted forms will be accepted as substitutes for   
     
official IRS forms.   
     
     
 1.1.2    
Certain unique specialized forms require the use of other publications that supplement this   
 Unique Forms    
publication. See   Part 4.   
     
     
 1.1.3    
The IRS accepts quality substitute tax forms that are consistent with the official forms and have no   
 Scope    
adverse impact on processing. The IRS Substitute Forms Program (the Program) administers the   
     
formal acceptance and processing of these forms nationwide. While this Program deals with paper   
     
documents, it also reviews for approval other processing and filing forms used in electronic filing.   
     
     
Only those substitute forms that fully comply with these requirements are acceptable. This revenue   
     
procedure is updated as required to reflect pertinent tax year form changes and to meet processing   
     
and/or legislative requirements.   
     
     
 1.1.4    
The following types of forms are covered by this revenue procedure.   
 Forms Covered by This    
     
 Revenue Procedure    
-    IRS tax forms and their related schedules.   
     
     
-    Worksheets as they appear in the instructions.   
     
     
-    Applications for permission to file returns electronically and forms used as required   
     
  documentation for electronically filed returns.   
     
     
-    Powers of Attorney.   
     
     
-    Over-the-counter estimated tax payment vouchers.   
     
     
-    Forms and schedules relating to partnerships, exempt organizations, and employee plans.   
     
     
 1.1.5    
The following types of forms are not covered by this revenue procedure. Refer to the publication   
 Forms Not Covered by This    
for questions.   
 Revenue Procedure    
     
     
-    W-2 and W-3. See Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.   
     
     
-    W-2c and W-3c. See Pub. 1223, General Rules and Specifications for Substitute Forms W-2c   
     
  and W-3c.   
     
     
-    941 and attached schedules. See Pub. 4436, General Rules and Specifications for Substitute   
     
  Form 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and   
     
  Form 8974.   
     
     
     
-    1096, 1097-BTC, 1098 series, 1099 series, 3921, 3922, 5498 series, W-2G, and 1042-S. See   
     
  Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498,   
     
  and Certain Other Information Returns.   
     
     
     
-    1095-A, 1094-B, 1095-B, 1094-C, and 1095-C. See Pub. 5223, General Rules and   
     
  Specifications for Affordable Care Act Substitute Forms 1096, 1098, 1099, 5498,   
     
  and 1095-C.   
     
     
     
-    8027. See Pub. 1239, Specifications for Electronic Filing of Form 8027, Employer  '  s Annual   
     
  Information Return of Tip Income and Allocated Tips.   
     
     
-    Forms 1040-ES (OCR) and 1041-ES (OCR), which may not be reproduced.   
     
     
-    Form 5500 series (for more information on these forms, go to the Department of Labor website   
     
  at www.efast.dol.gov ).   
     
     
-    Form 8717 bar-coded form requiring separate approval.   
     
     
-    Forms used internally by the IRS.   
     
     
-    State tax forms.   
     
     
     
-    Forms developed outside the IRS.   
     
     
     
     
 1.1.6    
The following information is not covered by this revenue procedure.   
 Other Information Not    
     
     
 Covered by This Revenue    
-    Requests for information or documentation initiated by the IRS.   
 Procedure    
     
     
     
-    General Instructions and Specific Instructions (these are not reviewed by the Program).   
     
     
     
 Section 1.2 - IRS Contacts    
     
     
     
     
     
 1.2.1    
Send your substitute forms for   approval     to the following offices. Do not send forms with taxpayer   
 Where To Send Substitute    
data.   
     
 Forms    
     
     
     
             
     
     
     
     
     
     
     
     
     
     
     
             
     
     
     
     
     
     
     
     
     
     
     
     
     
     
 Section 1.3 - What's New    
     
     
     
 1.3.1    
The following changes have been made to this year's revenue procedure.   
 What's New    
     
     
-.01 Editorial changes.   We made editorial changes as needed and eliminated repetitive   
     
  information.   
     
     
-.02 Forms 5300 and 5307 can no longer be submitted as substitute forms.     Forms 5300   
     
  and 5307 must be submitted electronically through Pay.gov. For more information about   
     
  electronically submitting Forms 5300 and 5307, go to IRS.gov/Form 5300 and IRS.gov/   
     
  Form 5307.   
     
     
-.03 Form 8905 is discontinued.     Form 8905 is discontinued and can no longer be filed with   
     
  Forms 5300 and 5307.   
     
     
-.04 Section 7.3 - Guidelines for Substitute Image Character Recognition Forms added.    
     
  We added suggestions that may be used as a guideline for creating easily scanned substitute   
     
  tax forms. If you choose to participate, please use the Form 1040 format provided in the new   
     
   Exhibit   and   Exhibit D.      
     
     
 Section 1.4 - Definitions    
     
     
 1.4.1    
A tax form (or related schedule) that differs in any way form the official version and is intended to   
 Substitute Form    
replace the form that is printed and distributed by the IRS. This term also covers those approved   
     
substitute forms exhibited in this revenue procedure   
     
     
 1.4.2    
A form produced using conventional printing processes or a printed form which has been   
 Printed/ Preprinted Form    
reproduced by photocopying or a similar process.   
     
 1.4.3    
A printed form that has marginal perforations for use with automated and high-speed printing   
 Preprinted Pin- Fed Form    
equipment.   
     
     
 1.4.4    
A preprinted form in which the taxpayer  '  s tax entry information has been inserted by a computer   
 Computer- Prepared    
computer printer, or other computer-type equipment.   
 Substitute Form    
     
     
     
 1.4.5    
A tax return or form that is entirely designed and printed using a computer printer on plain white   
 Computer- Generated    
paper. This return or form must conform to the physical layout of the corresponding IRS form,   
 Substitute Tax Return or    
although the typeface may differ. The text should match the text on the officially printed form as   
 Form    
closely as possible. Condensed text and abbreviations will be considered on a case-by-case basis.   
     
     
 Exception.     All jurats (perjury statements) must be reproduced verbatim.   
     
     
 1.4.6    
A preprinted reproduced form in which the taxpayer's tax entry information is entered by an   
 Manually Prepared Form    
individual using a pen, a pencil, or other nonautomated equipment.   
     
     
 1.4.7    
Parts of a printed tax form that are not tax amount entries or required text. Examples of graphics   
 Graphics    
are line numbers, captions, shadings, special indicators, borders, rules, and strokes created by   
     
typesetting, photographics, photocomposition, etc.   
     
     
 1.4.8    
A legible photocopy or an exact replica of an original form.   
 Acceptable Reproduced    
     
 Form    
     
     
     
 1.4.9    
A document providing detailed information to support a line entry on an official or approved   
 Supporting Statement    
substitute form and filed with (attached to) a tax return.   
 (Supplemental Schedule)    
     
     
 Note.     A supporting statement is not a tax form and does not take the place of an official form.   
     
     
 1.4.10    
The following specific terms are used throughout this revenue procedure in reference to all   
 Specific Form Terms    
substitute forms: format, sequence, line reference, item caption, and data entry field.   
     
     
 1.4.11    
The overall physical arrangement and general layout of a substitute form.   
 Format    
     
     
     
 1.4.12    
Sequence is an integral part of the total format requirement. The substitute form should show the   
 Sequence    
same numeric and logical placement order of data as shown on the official form.   
     
 1.4.13    
The line numbers, letters, or alphanumerics used to identify each captioned line on an official   
 Line Reference    
form. These line references are printed to the immediate left of each caption and/or data entry   
     
field.   
     
     
 1.4.14    
The text on each line of a form, which identifies the data required.   
 Item Caption    
     
     
     
 1.4.15    
Designated areas for the entry of data such as dollar amounts, quantities, responses, and checkboxes.   
 Data Entry Field    
     
     
     
 1.4.16    
A draft version of a new or revised form may be posted to the IRS website (IRS.gov/DraftForms)   
 Advance Draft    
for information purposes. Substitute forms may be submitted based on these advance drafts, but   
     
any submitter that receives forms approval based on these early drafts is responsible for monitoring   
     
and revising forms to reflect any revisions in the final forms provided by the IRS.   
     
     
 1.4.17    
Generally, approval could be in writing or assumed after 20 business days from our receipt for   
 Approval    
forms that have not been substantially changed by the IRS. This does not apply to newly created   
     
or substantially revised IRS forms. However, the Program reserves the right to notify vendors of   
     
any inaccuracies even after 20 business days have lapsed.   
     
     
 1.4.18    
The National Association of Computerized Tax Processors (NACTP) is a nonprofit association   
 National Association    
that represents tax processing software and hardware developers, electronic filing processors, tax   
 of Computerized Tax    
form publishers, tax processing service bureaus, and payroll processors. The association promotes   
 Processors (NACTP)    
standards in tax processing to advance efficient and effective tax filing. For more information, see   
     
NACTP.org.   
     
     
 Section 1.5 - Agreement    
     
     
     
 1.5.1    
Any person or company who uses substitute forms and makes all or part of the changes specified   
 Important Stipulation of    
in this revenue procedure agrees to the following stipulations.   
 This Revenue Procedure    
     
     
-    The IRS presumes that any required changes are made in accordance with these procedures   
     
  and will not be disruptive to the processing of the tax return.   
     
     
-    Should any of the changes be disruptive to the IRS  '  s processing of the tax return, the person or   
     
  company agrees to accept the determination of the IRS as to whether the form may continue   
     
  to be filed.   
     
     
-    The person or company agrees to work with the IRS in correcting noted deficiencies.   
     
  Notification of deficiencies may be made by any combination of letter, email, or phone contact   
     
  and may include the request for the resubmission of unacceptable forms.   
     
 1.5.2    
The Program will email confirmation of receipt of your forms sub mission, if possible. Even if   
 Response Policy and    
you do not receive emailed confirmation of receipt, you will receive an emailed  "  submission   
 Stipulations    
receipt,  "   which will provide feedback on your submission. If the Program anticipates problems   
     
in completing the review of your submission within the 20-business-day period, the Program will   
     
send an interim email notifying you of the extended period for review.   
     
     
Once the substitute forms have been approved by the Program, you can release them after the final   
     
versions of the forms have been issued by the IRS. Before releasing the forms, you are responsible   
     
for updating forms approved as draft and for making form changes requested.   
     
     
The policy has the following stipulations.   
     
     
-    This 20-business-day policy applies to electronic submissions only. It does not apply to   
     
  substitute submissions mailed to the Program.   
     
     
-    The policy applies to submissions of 15 (optimal) or fewer items and submissions containing   
     
  75 pages or less. Submissions of more than 15 items may require additional review time.   
     
     
-    If you send a large number of submissions within a short period of time, processing may be   
     
  delayed.   
     
     
-    Delays in processing could occur if the Program finds significant errors in your submission or   
     
  has experienced an increase in submissions. The Program will send you an interim email in   
     
  this case.   
     
     
-    Any anticipated problems in processing your submission within the 20-business-day period   
     
  will generate an interim email on or about the 15th business day.   
     
     
-    If any significant inaccuracies are discovered after the 20-business-day period, the Program   
     
  reserves the right to inform you and will require that changes be made to correct the   
     
  inaccuracies.   
     
     
-    The policy does not apply to substantially revised forms or to new forms created by the IRS   
     
  for which you have already made an initial submission.   
     
     
 Part 2    
 General Guidelines for Submissions and Approvals    
     
     
 Section 2.1 - General Specifications for Approval    
     
     
 2.1.1    
If you produce any substitute tax forms that fully comply or follow the changes specifically   
 Overview    
outlined by the Program, then you can generate your own substitute forms without further   
     
approval. Also, if your substitutes have received approval in the past, and there are no substantial   
     
formatting or text changes for the tax year, then changes can be made without additional approval.   
     
If your changes are more extensive, you must get IRS approval before using substitute forms. More   
     
extensive changes include different font style, decreasing or increasing the font size of caption   
     
titles, adjusting or omitting format/layout elements, changing page orientation, and repositioning   
     
line items, tables, and legends.   
     
 2.1.2    
The Program accepts submissions of substitute forms for review and approval via email. The   
 Email Submissions    
email address is substituteforms@irs.gov. Include the term "PDF Submissions  "   on the subject   
     
line.   
     
     
Follow these guidelines.   
     
     
-    The emailed submission should include all the forms you wish to submit in one Portable   
     
  Document Format (PDF) file. Do not email or attach each form individually.   
     
     
-    The emailed submission should include a maximum of 3 PDF files to include a checksheet,   
     
  a cover letter or accompanying statement, and a single PDF file that includes all of the forms   
     
  listed on your checksheet, cover letter, or accompanying statement.   
     
     
-    A submission should contain a maximum of 15 forms.   
     
     
-    An approval checksheet listing the forms you are submitting should always be included in   
     
  the PDF file along with the forms. Excluding the checksheet can slow the reviewing process   
     
  down, which can result in a delayed response to your submission. See a sample checksheet in   
     
   Exhibit B.   
     
     
-    Optimize PDF files before submitting.   
     
     
-    The maximum allowable email attachment is 2.5 megabytes.   
     
     
-    The Program accepts zip files.   
     
     
-    To alleviate delays during the peak time of September through December, submit advance   
     
  draft forms as early as possible.   
     
     
If the guidelines are not followed, you may need to resubmit.   
     
     
Emailing PDF submissions will not expedite review and approval. Submitting your substitute   
     
forms package via email is the preferred and suggested method for submitting forms form review.   
     
If, for some reason, you are not able to email your submission(s), you can mail your submission(s)   
     
to:   
     
     
  Internal Revenue Service   
     
  Attn: Substitute Forms Program   
     
  SE:W:CAR:MP:P:TP:TP   
     
  5000 Ellin Road, Mail Stop C6-110   
     
  Lanham, MD 20706   
     
     
 2.1.3    
Follow these basic guidelines for expediting the process.   
 Expediting the Process    
     
     
-    Always include a checksheet for the Program  '  s response.   
     
     
-    Include an accompanying statement identifying most, if not all, of the deviations your   
     
  substitute forms may have from the official IRS versions.   
     
     
-    Follow the guidance in this publication for general substitute form guidelines. Follow the   
     
  guidance in specialized publications produced by the Program for other specific forms.   
     
     
-    To spread out the workload, send in draft versions of substitute forms when they are posted.   
     
   Note.   Be sure to make any changes to approved drafts before releasing final versions.   
     
 2.1.4    
Some schedules are considered to be an integral part of a complete tax return and must be submitted   
 Schedules    
as part of the form. Other schedules may be submitted separately and do not need to be included   
     
with the tax form.   
     
     
 2.1.5    
Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, is an example   
 Examples of Schedules That    
of this situation. Its Schedules A through U have pages numbered as part of the basic return. For   
 Must Be Submitted With    
Form 706 to be considered for approval, the entire form, including Schedules A through U, as well   
 the Return    
as Schedule PC, must be submitted.   
     
     
 2.1.6    
Schedules C, D, and E for Form 1040 or 1040-SR are examples of schedules that can be submitted   
 Examples of Schedules    
separately. Although printed by the IRS as a supplement to Form 1040 or 1040-SR, these schedules   
 That Can Be Submitted    
are not required to be submitted for approval with Form 1040 or 1040-SR. These schedules may   
 Separately    
be separated from Form 1040 or 1040-SR and submitted as substitute forms.   
     
     
 2.1.7    
The IRS is continuing a program to identify and contact tax return preparers, forms developers,   
 Use and Distribution of    
and software publishers who use or distribute unapproved forms that do not conform to this   
 Unapproved Forms    
revenue procedure. The use of unapproved forms hinders the processing of the returns.   
     
     
 Section 2.2 - Highlights of Permitted Changes and Requirements    
     
     
 2.2.1    
There are methods of reproducing IRS printed tax forms suitable for use as substitutes without   
 Methods of Reproducing    
prior approval.   
 IRS Forms    
     
     
-    You can photocopy most tax forms and use them instead of the official ones. The entire   
     
  substitute form, including entries, must be legible.   
     
     
-    You can reproduce any current tax form as cut sheets, snap sets, and marginally punched, pin-   
     
  fed forms as long as you use an official IRS version as the master copy.   
     
     
-    You can reproduce a form that requires a signature as a valid substitute form. Many tax forms   
     
  (including returns) have a taxpayer signature requirement as part of the form layout. The jurat/   
     
  perjury statement/ signature line areas must be retained and worded exactly as on the official   
     
  form. The requirement for a signature, by itself, does not prohibit a tax form from being   
     
  properly computer generated.   
     
     
 Section 2.3 - Vouchers    
     
     
     
 2.3.1    
All payment vouchers (Forms 940-V, 941-V, 943-V, 944-V, 945-V, 1040-ES, 1040-V, 1041-V,   
 Overview    
and 2290-V) must be reproduced in conjunction with their forms. Substitute vouchers must be   
     
the same size as the officially printed vouchers. Vouchers that are prepared for printing on a laser   
     
printer may include a scan line.   
     
 2.3.2    
           
 Scan Line Specifications    
     
     
     
A.  Social Security Number/Employer Identification Number/Individual Taxpayer   
     
  Identification Number/Adoption Taxpayer Identification Number (SSN/EIN/ITIN/ATIN)   
     
  has 9 numeric (N) spaces.   
     
     
B.  Check Digits have 2 alpha (A) spaces.   
     
     
C.  Name Control has 4 alphanumeric (X) spaces.   
     
     
D.  Master File Tax (MFT) Code has 2 numeric (N) spaces (see   Section 2.3.3   )     
     
     
E.  Taxpayer Identification Number (TIN) Type has 1 numeric (N) space (see   Section 2.3.4   ).   
     
     
F.  Tax Period has 6 numeric (N) spaces in year/month format (YYYYMM).   
     
     
G.  Transaction Code has 3 numeric (N) spaces.   

     
 2.3.5    
The voucher size must be exactly 8.0" x 3.25" (Forms 1040-ES and 1041-ES must be 7.625" x   
 Voucher Size    
3.0"). The document scan line must be vertically positioned 0.25 inch from the bottom of the scan   
     
line to the bottom of the voucher. The last character on the right of the scan line must be placed   
     
3.5 inches from the right leading edge of the document. The minimum required horizontal clear   
     
space between characters is 0.014 inch. The line to be scanned must have a clear band 0.25 inch   
     
in height from top to bottom of the scan line, and from border to border of the document. "Clear   
     
band" means no printing except for dropout ink.   
     
     
     
     
     
 2.3.6    
Vouchers must be imaged in black ink using OCR A, OCR B, or Courier 10. These fonts may not   
 Print and Paper Weight    
be mixed in the scan line. The horizontal character pitch is 10 CPI The preferred paper weight is   
     
20 to 24 pound OCR bond.   
     
     
     
     
     
     
     
     
     
     
 2.3.7    
Certain vouchers maybe reproduced for use in the IRS lockbox system. These include the 1040-   
 Specifications for Software    
V, 1040-ES, 1041-V, the 94X family, and 2290 vouchers. Software developers must follow these   
 Developers    
specific guidelines to produce scannable vouchers strictly for lockbox purposes. Also see Exhibit A.    
     
     
     
     
     
     
     
-    The total depth must be 3.25   
     
     
     
     
     
     
     
     
     
     
     
-  The scan line must be 0.5 inch from the bottom edge and 1.75 inches from the left edge of the   
     
  voucher and left justified.   
     
     
     
     
     
     
     
     
     
     
     
-  Software developers' vouchers must be 8.5 inches wide (instead of 8 inches with a cut line).   
     
  Therefore, no vertical cut line is required.   
     
     
     
     
     
     
     
     
     
     
     
-  Scan line positioning must be exact.   
     
     
     
     
     
     
     
     
     
     
     
-  Do not use the over-the-counter format voucher and add the scan line to it.   
     
     
     
     
     
     
     
     
-  All scanned data must be in 12-point OCR A font.   
     
     
     
     
     
     
     
     
     
     
-  The 4-digit NACTP ID code or IRS source code should be placed under the payment indicator arrow.   
     
     
     
     
     
     
     
-  Windowed envelopes must not display the scan line in order to avoid disclosure and privacy issues.   
     
     
     
     
     
     
     
 Note.    All software developers must ensure that their software uses OCR A font so taxpayers will   
     
be able to print the vouchers in the correct font.   
     
     
     
     
     
     
     
     
     
 2.3.8    
Follow these line specifications for entering taxpayer data in the lockbox vouchers.   
     
 Specific Line Positions    
     
     
     
     
     
     
     
     
     
     
     
     
           
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
 2.3.9    
Send an approval sheet with each form type for IRS signature to Jason Lane at Jason.L.Lane@irs.   
 How To Get Approval    
gov. You should include in the email an example of each type of voucher the site will be testing.   
     
 Note.    Do not mail any test vouchers to Jason Lane.   
     
     
     
You are required to send 25 voucher samples of each form in PDF format by December 8, 2023.   
     
You should email the test vouchers to raul.t.mariduena@jpmorgan.com. You can also print the   
     
vouchers and send them to his mailing address at:   
     
     
     
  JP Morgan Chase   
     
  Attn: Raul Mariduena   
     
  830 Tyvola Road, Suite 114   
     
  Charlotte, NC 28217   
     
     
     
For further information, contact Jason Lane at Jason.L.Lane@irs.gov, or at 559-550-8740 (not   
     
toll free).   
     
     
 Section 2.4 - Restrictions on Changes    
     
     
 2.4.1    
You cannot, without prior IRS approval, change any IRS tax form or use your own (non approved)   
 What You Cannot Do    
versions including graphics, unless specifically permitted by this revenue procedure. See Sections    
 to Forms Suitable for    
 2.5.7    through 2.5.11.   
 Substitute Tax Forms    
     
     
You cannot adjust any of the graphics on Form 1040 or 1040-SR (except in those areas specified   
     
in Part 5 of this revenue procedure) without prior approval from the Program.   
     
     
     
You cannot rearrange or redistribute data entry fields, and/or allow data entry fields to flow from   
     
one page onto the next (that is, each page of a substitute form must contain the exact number of   
     
data entry fields as there are on the official IRS form). The order of information on the substitute   
     
form must be identical to the IRS version of the form. Publications for specific substitute forms   
     
will state allowances for those respective forms.   
     
     
     
 Note.    The 20-business-day turnaround policy may not apply to extensive changes.   
     
     
 Section 2.5 - Guidelines for Obtaining IRS Approval    
     
     
 2.5.1    
Preparers who submit substitute privately designed, privately printed, computer-generated, or   
 Basic Requirements    
computer-prepared tax forms must develop these substitutes using the guidelines established in   
     
this part. These forms, unless there is an exception outlined by this revenue procedure, must be   
     
approved by the IRS before being filed.   
     
     
 2.5.2    
The IRS cannot grant final approval of your substitute form until the official form has been   
 Conditional Approval    
published. However, the IRS posts advance draft forms on its website at IRS.gov/DraftForms.   
 Based on Advance Drafts    
     
     
Submission of proposed substitutes of these advance draft forms is encouraged, and conditional   
     
approval will be granted based solely on these early drafts. These advance drafts are subject to   
     
significant change before forms are finalized. If these advance drafts are used as the basis for your   
     
substitute forms, you will be responsible for subsequently updating your final forms to agree with   
     
the final official version. These revisions need not be resubmitted for further approval.   
     
     
     
 Note.    Approval of forms based on advance drafts will not be granted after the final version of an   
     
official form is published.   
     
     
 2.5.3    
Follow these general guidelines when submitting substitute forms for approval.   
 Submission Procedures    
     
     
-  Any alteration of forms must be within the limits acceptable to the IRS. It is possible that,   
     
  from one filing period to another, a change in law or a change in internal need (processing,   
     
  audit, compliance, etc.) may change the allowable limits for the alteration of the official form.   
     
     
     
-  When approval of any substitute form (other than those exceptions specified in Part 1, Section    
     
   1.2 ) is requested, a sample of the proposed substitute form should be emailed for consideration   
     
  to the Program at the address shown in Section 1.2.1.   
     
     
     
-  Schedules and forms (for example, Forms 3468, 4136, etc.) that can be used with more than   
     
  one type of return (for example, Forms 1040, 1040-SR, 1041, 1120, etc.) should be submitted   
     
  only once for approval, without regard to the number of different tax returns with which they   
     
  may be associated. Also, all pages of multi-page forms or returns should be submitted in the   
     
  same package.   
     
     
 2.5.4    
Because only the Program is authorized to approve substitute forms, unnecessary delays may   
 Approving Offices    
occur if forms are sent to the wrong office. You may receive an interim letter about the delay.   
     
The Program may then coordinate the response with the originator responsible for revising that   
     
particular form. Such coordination may include allowing the originator to officially approve the   
     
form. No IRS office is authorized to allow deviations from this revenue procedure.   
     
     
 2.5.5    
The IRS does not review or approve the logic of specific software programs, nor does the IRS   
 IRS Review of Software    
confirm the calculations on the forms produced by these programs. The accuracy of the program   
 Programs, etc.    
remains the responsibility of the software package developer, distributor, or user.   
     
     
     
The Program is primarily concerned with the pre-filing quality review of the final forms that are   
     
expected to be processed by IRS field offices. For this purpose, you should submit forms without   
     
including any taxpayer information such as names, addresses, monetary amounts, etc.   
     
     
     
If the software used is programmed to produce copies with populated fields, then you must use   
     
dummy information. This will allow the Program to review and provide feedback or approval.   
     
Vendors should use "0" for all number values and "X" for any information that requires alpha   
     
characters.   
     
     
 2.5.6    
Proposed substitutes, which are required to be submitted per this revenue procedure, should be   
 When To Send Proposed    
sent as much in advance of the filing period as possible. This is to allow adequate time for analysis   
 Substitutes    
and response.   
     
     
 2.5.7    
When submitting sample substitutes, you should include an accompanying statement that lists   
 Accompanying Statement    
each form number and its changes from the official form (position, arrangement, appearance, line   
     
numbers, additions, deletions, etc.). With each of the items, you should include a detailed reason   
     
for the change.   
     
     
     
When requesting approval, include a checksheet. Checksheets expedite the approval process. The   
     
checksheet may look like the example in Exhibit B  displayed in the back of this procedure or may   
     
be one of your own design. Include your email address on the checksheet.   
     
     
 2.5.8    
The Program will email the checksheet or an approval letter to the originator, unless:   
 Approval/ Nonapproval    
     
 Notice    
-  The requester has asked for a formal letter, or   
     
     
     
-  Significant corrections to the submitted forms are required.   
     
     
     
Notice of approval may impose qualifications before using the substitutes. Notices of unapproved   
     
forms may specify the changes required for approval and require resubmission of the form(s) in   
     
question. When appropriate, you will be contacted by telephone.   
     
     
 2.5.9    
Most signature tax returns and many of their schedules and related forms have the tax year printed   
 Duration of Approval    
in the upper right corner. Approvals for these annual forms are usually good for 1 calendar year   
     
(January through December of the year of filing). Quarterly tax forms in the 94X series and Form   
     
720 require approval for any quarter in which the form has been revised.   
     
     
     
Because changes are usually made to an annual form every year, each new filing season generally   
     
requires a new submission of a substitute form. Very rarely is updating the preprinted year the   
     
only change made to an annual form. However, if no significant content, formatting, or layout   
     
changes were made to a tax form, then review and approval received for the prior tax year can be   
     
carried over into the current tax year.   
     
     
 2.5.10    
Limited changes approved for one tax year may be allowed for the same form in the following   
 Limited Continued Use of    
tax year. Examples are the use of abbreviated words, revised form spacing, compressed text lines,   
 an Approved Change    
shortened captions, etc., which do not change the integrity of lines or text on the official forms.   
     
     
     
If the vendor or filer makes substantial changes to the form, new substitutes must be submitted   
     
for approval. If the vendor or filer makes only minor editorial changes to the form, or makes any   
     
changes that mirror changes the IRS makes to the form's official version, the new substitute does   
     
not need to be submitted for approval. It is the responsibility of each vendor who has been granted   
     
permission to produce substitute forms to monitor and revise forms to mirror any revisions to the   
     
official forms made by the IRS. If there are any questions, contact the Program.   
     
     
 2.5.11    
If you received approval for a specific change on a form last year, you may make the same change   
 When Approval Is Not    
this year if the item is still present on the official form.   
 Required    
     
     
-  The new substitute form does not have to be submitted to the IRS and approval based on that   
     
  change is not required.   
     
     
     
-  However, the new substitute form must conform to the official current year IRS form in   
     
  other respects, such as date, Office of Management and Budget (OMB) approval number,   
     
  attachment sequence number, Paperwork Reduction Act Notice statement, arrangement, item   
     
  caption, line number, line reference, data sequence, etc.   
     
     
-  The new substitute form must also comply with changes to the guidelines in this revenue   
     
  procedure. This procedure may have eliminated, added to, or otherwise changed the   
     
  guideline(s) that affected the change approved in the prior year.   
     
     
     
-  An approved change is authorized only for the period from a prior tax year substitute form to   
     
  a current tax year substitute form.   
     
     
     
 Exception. Forms with temporary, limited, or interim approvals (or with approvals that state a   
     
change is not allowed in any other tax year) are subject to review in subsequent years.   
     
     
 2.5.12    
Generally, you must send us one copy of each form being submitted for approval. However, if   
 Required Copies    
you are producing forms for different computer platforms (for example, Microsoft vs. Apple),   
     
different tax preparation software (for example, TurboTax(R) vs. TaxSlayer(R)), or different types   
     
of printers (for example, inkjet vs. impact), and these forms differ significantly  in appearance,   
     
submit one copy for each type of platform, tax preparation software, or printer.   
     
     
 2.5.13    
Following receipt of an initial approval for a substitute forms package or a software output   
 Requestor's Responsibility    
program to print substitute forms, it is the responsibility of the originator (designer or distributor)   
     
to provide client firms or individuals with forms that meet the IRS's requirements for continuing   
     
acceptability. Examples of this responsibility include:   
     
     
     
-  Using the prescribed print paper, font size, legibility, state tax data deletion, etc.; and   
     
     
     
-  Informing all users of substitute forms of the legal requirements of the Paperwork Reduction   
     
  Act Notice, which is generally found in the instructions for the official IRS forms.   
     
     
 2.5.14    
The Program will assign a unique source code to each firm that submits substitute forms for   
 Source Code    
approval. This source code will be a permanent identifier that must be used on every submission   
     
by a particular firm.   
     
     
     
The source code consists of three alpha characters and should generally be printed under or to the   
     
left of the "Paperwork Reduction Act" statement. Vendors must ensure that the source code is not   
     
printed too close to or within the left or bottom 0.5 inch margin to avoid the source code from   
     
being cutoff during printing.   
     
     
 Section 2.6 - Office of Management and Budget (OMB) Requirements for All Substitute Forms    
     
     
 2.6.1    
There are legal requirements of the Paperwork Reduction Act of 1995 (the Act). Public Law 104­   
 OMB Requirements for All    
13 requires the following.   
 Substitute Forms    
     
     
OMB approves all IRS tax forms that are subject to the Act.   
     
     
     
Each IRS form contains (in the upper right comer) the OMB number, if assigned.   
     
     
     
Each IRS form (or its instructions) states why the IRS needs the information, how it will be   
     
used, and whether or not the information is required to be furnished to the IRS.   
     
     
This information must be provided to every user of official or substitute IRS forms or instructions.   
     
     
     
     
     
 2.6.2    
On forms that have been assigned OMB numbers:   
     
     
     
 Application of the    
     
     
     
     
 Paperwork Reduction Act    
-  All substitute forms must contain in the upper right comer the OMB number that is on the   
     
  official form, and   
     
     
     
     
     
     
     
     
     
-  The required format is: OMB No. 1545-XXXX (preferred) or OMB # 1545-XXXX   
     
  (acceptable).   
     
     
     
     
     
     
     
     
 2.6.3    
You must inform the users of your substitute forms of the IRS use and collection requirements   
 Required Explanation to    
stated in the instructions for official IRS forms.   
     
     
     
 Users    
     
     
     
     
     
-  If you provide your users or customers with the official IRS instructions, each form must   
     
  retain either the Paperwork Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork   
     
  Reduction Act Notice), or a reference to it as the IRS does on the official forms (usually in the   
     
  lower left corner of the forms).   
     
     
     
     
     
     
     
     
     
-  This notice reads, in part, "We ask for tax return information to carry out the tax laws of the   
     
  United States"   
     
     
     
     
     
     
     
     
     
 Note.    If no IRS instructions are provided to users of your forms, the exact text of the Paperwork   
     
Reduction Act Notice (or Disclosure, Privacy Act, and Paperwork Reduction Act Notice) must be   
     
furnished separately or on the form.   
     
     
     
     
     
     
     
     
 2.6.4    
The OMB number and the Paperwork Reduction Act Notice, or references to it, maybe found   
 Finding the OMB Number    
printed on an official form (or its instructions). The number and the notice are included on the   
 and Paperwork Reduction    
official paper format and in other formats produced by the IRS.   
     
     
 Act Notice    
     
     
     
     
     
     
     
     
     
 Part 3    
 Physical Aspects and Requirements    
     
     
     
     
     
 Section3.1 - General Guidelines for Substitute Forms    
     
     
     
     
     
     
     
     
 3.1.1    
The official form is the standard. Because a substitute form is a variation from the official form,   
 General Information    
you should know the requirements of the official form for the year of use before you modify it to   
     
meet your needs. To obtain the most frequently used tax forms, go to IRS.gov/Forms.   
     
     
     
     
     
 3.1.2    
Each form must follow the design of the official form as to format arrangement, item caption, line   
 Design    
numbers, line references, and sequence.   
     
     
     
     
 3.1.3    
Generally, state tax information must not appear on the federal tax return, associated form, or   
 State Tax Information    
schedule that is filed with the IRS. Exceptions occur when amounts are claimed on, or required   
 Prohibited    
by, the federal return (for example, state and local income taxes on Schedule A (Form 1040)).   
     
 3.1.4    
     
     
     
     
 Vertical Alignment of    
           
 Amount Fields    
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
 3.1.5    
Many individual income tax forms have a required "attachment sequence number" located just   
 Attachment Sequence    
below the year designation in the upper right comer of the form. The IRS uses this number to   
 Number    
indicate the order in which forms are to be attached to the tax return for processing. Some of the   
     
attachment sequence numbers may change from year to year.   
     
     
     
     
     
     
The following apply to computer-prepared forms.   
     
     
     
     
     
     
-  The sequence number may be printed in no less than 12-point boldface type and centered   
     
  below the form's year designation.   
     
     
     
     
     
     
     
-    The sequence number may also be placed following the year designation for the tax form and   
     
  separated with an asterisk.   
     
     
     
     
     
     
     
     
-  The actual number may be printed without labeling it the "Attachment Sequence Number."   
     
     
     
     
     
 3.1.6    
When developing software or forms for use by others, inform your customers/clients that the   
 Assembly of Forms    
order in which the forms are arranged may affect the processing of the package. A return must be   
     
arranged in the order indicated below.   
     
     
     
     
     
     
     
           
     
     
     
     
     
     
     
     
     
Supporting statements should then follow in the same sequence as the forms they support.   
     
     
Additional information required should be attached last.   
     
     
     
     
     
In this way, the forms are received in the order in which they must be processed. If you do not send   
     
     
returns to the IRS in order, processing may be delayed.   
     
     
     
 3.1.7    
     
On Forms 1040, 1040-SR, and 1120, and any other applicable tax forms, the "Paid Preparer Use   
 Paid Preparer's    
Only" area may not be rearranged or relocated. You may, however, add three extra lines to the   
 Information and Signature    
paid preparer's address area, and remove the horizontal rules in that area without prior approval.   
 Area    
     
     
     
     
     
 3.1.8    
     
Some reasons that substitute form submissions may require changes include the following.   
 Some Common Reasons    
     
 for Requiring Changes to    
-  Shading areas incorrectly.   
 Substitute Forms    
     
     
     
-  Failing to include a reference to the location of the Paperwork Reduction Act Notice.   
     
     
     
     
     
-  Not including parentheses for losses.   
     
     
     
     
     
-  Not including "Attach Statement" when appropriate.   
     
     
     
     
     
-  Including line references or entry spaces that do not match the official form.   
     
     
     
     
     
-  Printing text that is different from the official form.   
     
     
     
     
     
-  Altering the jurat (perjury statement).   
     
     
     
     
     
-  Having an incorrect OMB number.   
     
     
     
     
     
-  Including the IRS catalog number (Cat. No.) on the form.   
     
     
     
     
     
-  Failing to include preprinted amounts in entry fields.   
     
     
     
     
     
-  Missing IRS source code or NACTP software I  D.   
     
     
     
     
     
-  Missing 3-letter FFF code on paper Form 1040 from tax software companies that participate   
     
     
  in the IRS Free File Program.   
     
     
     
     
     
-  Incorrect dimensions.   
     
     
     
 Section 3.2 - Paper      
     
     
     
 3.2.1    
     
The paper must be:   
 Paper Content    
     
     
     
-  Chemical wood writing paper that is equal to or better than the quality used for the official   
     
     
  form,   
     
     
     
     
     
-  At least18 pound (17" x 22", 500 sheets), or   
     
     
     
     
     
-  At least 50 pound offset book (25" x 38", 500 sheets).   
     
 3.2.2    
There are several kinds of paper prohibited for substitute forms. These are:   
     
 Paper With Chemical    
     
     
 Transfer Properties    
1.  Carbon-bonded paper, and   
     
     
     
     
     
     
     
2.  Chemical transfer paper except when the following specifications are met.   
     
     
     
     
     
     
     
    a.  Each ply within the chemical transfer set of forms must be labeled.   
     
     
     
     
     
     
     
  b.  Only the top ply (ply one and white in color), the one that contains chemical on the back   
     
     
  only (coated back), may be filed with the IRS.   
     
     
     
     
     
     
     
  Example.   A set containing three plies would be constructed as follows: ply one (coated back),   
     
     
"Federal Return, File with IRS"; ply two (coated front and back), "Taxpayer's copy"; and ply   
     
     
three (coated front), "Preparer's copy."   
     
     
     
     
     
     
     
The file designation, "Federal Return, File with IRS" for ply one, must be printed in the bottom   
     
     
right margin (just below the last line of the form) in 12-point boldface type.   
     
     
     
     
     
     
     
It is not mandatory, but recommended, that the file designation "Federal Return, File with IRS" be   
     
     
printed in a contrasting ink for visual emphasis.   
     
     
     
     
     
 3.2.3    
       
It is preferred that the color and opacity of paper substantially duplicate that of the original form.   
 Paper and Ink Color    
This means that your substitute must be printed in black ink and maybe on white paper or on the   
     
     
colored paper the IRS form is printed on. Form 1040 or 1040-SR substitute reproductions may be   
     
     
in black ink without the colored shading. The only exception to this rule is Form 1041-EZ which   
     
     
should be printed with a PMS 100 yellow shading in the color-screened area. This is necessary to   
     
     
assist us in expeditiously separating this form from the very similar Form 1040-ES.   
     
     
     
     
     
 3.2.4    
     
Substitute or reproduced forms and computer-prepared/-generated substitutes may be the same   
 Page Size    
     
size as the official form or they may be the standard commercial size (8.5" x 11"). The thickness   
     
     
of the stock cannot be less than 0.003 inch.   
     
     
     
     
     
 Section 3.3 - Printing    
       
     
     
     
     
     
 3.3.1    
       
The private printing of all substitute tax forms must be by conventional printing processes,   
 Printing Medium    
photocopying, computer graphics, or similar reproduction processes.   
     
     
     
     
     
 3.3.2    
       
All forms must have a high standard of legibility as to printing, reproduction, and fill-in matter.   
 Legibility    
       
Entries of tax payer data may be no smaller than 8 points. The IRS reserves the right to reject those   
     
     
with poor legibility. The ink and printing method used must ensure that no part of a form (including   
     
     
text, graphics, data entries, etc.) develops "smears" or similar quality deterioration. This standard   
     
     
must be followed for any subsequent copies or reproductions made from an approved master   
     
     
substitute form, either during preparation or during IRS processing.   
     
     
 3.3.3    
Many federal tax forms are printed using Helvetica as the basic type font. It is preferred that you   
 Type Font    
use this type font when composing substitute forms.   
       
     
 3.3.4    
Substitute forms should be printed using a 6 lines/inch vertical print option. They should also be   
 Print Spacing    
printed horizontally in 10-pitch pica (that is, 10 print characters per inch) or 12-pitch elite (that is,   
       
12 print positions per inch).   
       
     
 3.3.5    
The image size of a printed substitute form should be as close as possible to that of the official   
 Image Size    
form. You may omit any text on both computer-prepared and computer-generated forms that is   
       
solely instructional.   
       
     
 3.3.6    
To allow a large top margin for marginal printing and more lines per page, the title line(s) for all   
 Title Area Changes    
substitute forms (not including the form's year designation and sequence number, when present)   
       
may be photographically reduced by 40% or reset as one line of type. When reset as one line, the   
       
type size may be no smaller than 14 points. You may omit "Department of the Treasury-Internal   
       
Revenue Service" and all references to instructions in the form's title area.   
       
     
 3.3.7    
When privately printing substitute tax forms, the Government Publishing Office (GPO) symbol   
 Remove Government    
and/or jacket number must be removed. In the same place using the same type size, print the EIN   
 Publishing Office Symbol    
of the printer or designer, or the IRS-assigned source code. (Preferably, this last number should be   
 and IRS Catalog Number    
printed in the lower left area of the first page of each form.) Also, remove the IRS catalog number   
       
(Cat. No.) and the recycle symbol if the substitute is not produced on recycled paper.   
       
     
 3.3.8    
Substitute single-page forms should be reproduced the same as IRS single-page forms. Other   
 Printing Single- Page    
forms or schedules should not be printed on the back or on blank portions of a single-page forn1.   
 Forms    
However, printing instructions on the back or on blank portions of a single-page form is acceptable.   
       
     
 3.3.9    
The IRS does not undertake to approve or disapprove the specific equipment or process used in   
 Photocopy Equipment    
reproducing official forms. Photocopies of forms must be entirely legible and satisfy the conditions   
       
stated in this and other revenue procedures.   
       
     
 3.3.10    
Reproductions of official forms and substitute forms that do not meet the requirements of this   
 Reproductions    
revenue procedure may not be filed instead of the official forms. Illegible photocopies are subject   
       
to being returned to the filer for resubmission of legible copies.   
       
     
 3.3.11    
Generally, you may remove references to instructions. No prior approval is needed. However, in   
 Removal of Instructions    
some instances, you may be requested to include references to instructions.   
     
     
     
 Exception. The words "For Paperwork Reduction Act Notice, see instructions" must be retained,   
     
or a similar statement indicating the location of the Notice must be provided on each form.   
     
 Section 3.4 - Margins      
     
     
     
 3.4.1    
     
The format of a reproduced tax form when printed on the page must have margins on all sides at   
 Margin Size    
     
least as large as the margins on the official form. This allows room for IRS employees to make   
     
     
necessary entries on the form during processing.   
     
     
     
     
     
A 0.5 inch to 0.25 inch margin must be maintained across the top, bottom, and both sides of   
     
     
all substitute forms.   
     
     
     
     
     
The marginal, perforated strips containing pin-fed holes must be removed from all forms prior   
     
     
to filing with the IRS.   
     
     
     
 3.4.2    
       
Prior approval is not required for the marginal printing allowed when printed on an official form   
 Marginal Printing    
or on a photo copy of an official form.   
     
     
     
     
     
-  With the exception of the actual tax return forms (for example, Forms 1040, 1040-SR, 1120,   
     
     
    940, 941, etc.), you may print in the left vertical margin and in the left half of the bottom   
     
     
  margin.   
     
     
     
     
     
-  Printing is never allowed in the top right margin of the tax return form (for example, Forms   
     
     
  1040, 1040-SR, 1120,940,941, etc.). The IRS uses this area to imprint a Document Locator   
     
     
  Number for each return. There are no exceptions to this requirement.   
     
     
     
 Section 3.5 - Miscellaneous Information for Substitute Forms    
     
     
     
 3.5.1    
       
To be acceptable for filing, a substitute form must print out in a format that will allow the filer to   
 Filing Substitute Forms    
follow the same instructions that accompany official forms. The form must be legible, must be on   
     
     
the appropriately sized paper, and must include a jurat (perjury statement) where one appears on   
     
     
the published form.   
     
     
     
 3.5.2    
     
The IRS has received returns produced by software packages with approved output where either   
 Caution to Software    
the form heading was altered or the lines were spaced irregularly. This produces an illegible or   
 Publishers    
     
unrecognizable return or a return with the wrong number of pages. While many of these problems   
     
     
are caused by individual printer differences, they may delay input of return data and, in some   
     
     
cases, generate correspondence to the taxpayer. Therefore, in the instructions to the purchasers   
     
     
of your product, both individual and professional, stress that their returns will be processed more   
     
     
efficiently if they are properly formatted. This includes:   
     
     
     
     
     
-  Having the correct form numbers, six-digit form identifying numbers, and titles at the top of   
     
     
  the return; and   
     
     
     
     
     
-  Submitting the same number of pages as if the form were an official IRS form with the line   
     
     
  items on the proper pages.   
     
 3.5.3    
If you are producing a software package that generates name and address data onto the tax return,   
 Caution to Producers of    
do not, under any circumstances, program either the IRS preprinted check digits or a practitioner-   
 Software Packages    
derived name control to appear on any return prepared and filed with the IRS.   
     
     
 3.5.4    
Whenever applicable:   
 Programming to Print    
     
 Forms    
-  Use only the following label information format for single filers: JOHNQ. DOE 000 OAK   
     
  DRIVE HOMETOWN, STATE 00000;   
     
     
     
-  Use only the following label information format for joint filers: JOHN Q. DOE MARY Q.   
     
  DOE 000 OAK DRIVE HOMETOWN, STATE 00000; and   
     
     
     
-  Use"0" for number values and "X" for alpha characters entered in data entry fields as dummy   
     
  copy.   
     
     
 Part 4    
 Additional Resources    
     
     
 Section 4.1 - Guidance From Other Revenue Procedures    
     
     
 4.1.1    
The IRS publications listed below provide guidance for substitute tax forms not covered in this   
 General    
revenue procedure. These publications are available on the IRS website. Use the publication   
     
number listed below to search for the requested document.   
     
     
     
-  Pub. 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.   
     
     
     
-  Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498,   
     
  and Certain Other Information Returns.   
     
     
     
-  Pub. 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.   
     
     
     
-  Pub. 4436, General Rules and Specifications for Substitute Form 941, Schedule B (Form 941),   
     
  Schedule D (Form 941), Schedule R (Form 941), and Form 8974.   
     
     
     
-  Pub. 5223, General Rules and Specifications for Affordable Care Act Substitute Forms 1095-   
     
  A, 1094-B, 1095-B, 1094-C, and 1095-C.   
     
     
 Section 4.2 - Electronic Tax Products    
     
     
 4.2.1    
Copies of tax forms and their instructions, publications, fillable forms, and prior year forms and   
 The IRS Website    
publications maybe found on the IRS website at IRS.gov/Forms.   
     
     
     
Draft forms and instructions maybe found at IRS.gov/DraftForrns.   
     
     
     
Other tax-related information may be found at IRS.gov.   
     
 4.2.2    
For system requirements, contact the National Technical Information Service (NTIS) at NTIS.   
 System Requirements    
gov. Prices are subject to change.   
 and Ordering Forms and    
     
 Instructions    
You can order IRS forms and other tax material at IRS.gov/OrderForms.   
     
     
 Part 5    
 Requirements for Specific Tax Returns    
     
     
 Section 5.1 - Tax Returns (Forms 1040, 1040-SR, 1120, etc.)    
     
     
 5.1.1    
Tax return forms (such as Forms 1040, 1040-SR, and 1120) require a signature and establish tax   
 Acceptable Forms    
liability. Computer-generated versions are acceptable under the following conditions.   
     
     
     
These substitute forms must be printed on plain white paper.   
     
     
     
Substitute forms must conform to the physical layout of the corresponding IRS form although   
     
the typeface may differ. The text should match the text on the officially published form as   
     
closely as possible. Condensed text and abbreviations will be considered on a case-by-case   
     
basis. Caution. All jurats (perjury statements) must be reproduced verbatim. No text can be   
     
added, deleted, or changed in meaning.   
     
     
     
Various computer graphic print media such as laser printing, inkjet printing. etc., may be used   
     
to produce the substitute forms.   
     
     
     
The substitute form must be the same number of pages and contain the same text on the lines   
     
as the official form.   
     
     
     
All substitute forms must be submitted for approval prior to their original use. You do not   
     
need approval for a substitute form if its only change is the preprinted year and you had   
     
received a prior year approval letter. Exception. If the approval letter specifies a one-time   
     
exception for your form, the next year's form must be approved.   
     
     
 5.1.2    
The following are prohibited.   
 Prohibited Forms    
     
       
-  Computer-generated tax forms (for example, Form 1040, 1040-SR, etc.) on lined or color­   
       
  barred paper.   
       
     
       
-  Tax forms that differ from the official IRS forms in a manner that makes them nonstandard or   
       
  unable to process.   
       
     
 5.1.3    
Certain changes (listed in Section 5.2 ) are permitted to the graphics of the form without prior   
 Changes Permitted to Form    
approval, but these changes apply to only acceptable preprinted forms. Changes not requiring   
 1040    
prior approval are good only for the annual filing period, which is the current tax year. Such   
       
changes are valid in subsequent years only if the official form does not change.   
       
     
 5.1.4    
All changes not listed in Section 5.2  require approval from the IRS before the form can be filed.   
 Other Changes Not Listed    
     
     
 Section 5.2 - Changes Permitted to Graphics (Form 1040 or 1040-SR)    
     
     
 5.2.1    
You may make minor vertical and horizontal spacing adjustments to allow for computer or   
 Adjustments    
word processing printing. This includes widening the amount columns or tax entry areas if the   
       
adjustments comply with other provisions stated in revenue procedures. No prior approval is   
       
needed for these changes.   
       
     
       
Schedules 1-3 cannot be combined for filing purposes. For the client copy of the return, the   
       
numbered schedules may be printed two to a page (for example, Schedule 3 below Schedule 2, if   
       
both are completed as part of the return). If numbered schedules are combined on the client copy,   
       
it must include a statement that it is "Not for Filing."   
       
     
 5.2.2    
The horizontal rules and instructions within the name and address area may be removed and the   
 Name and Address Area    
entire area left blank. No line or instruction can remain in the area. The heavy-ruled border (when   
       
present) that outlines the name, address area, and SSN must not be removed, relocated, expanded,   
       
or contracted.   
       
     
 5.2.3    
When the name and address area is left blank, the following fom1at must be used when printing   
 Required Format    
the taxpayer's name and address.   
     
     
     
-  1st name line (35 characters maximum).   
     
     
     
-  2nd name line (35 characters maximum).   
     
     
     
-  In-care-of name line (35 characters maximum).   
     
     
     
-  City, state (25 characters maximum), one blank character, and ZIP code.   
     
     
 5.2.4    
When there is no in-care-of name line, the name and address will consist of only three lines (single   
 Conventional Name and    
filer) or four lines (joint filer).   
 Address Data    
     
     
  Example of joint filer.   Name and address (joint filer) with no in-care-of name line:   
     
     
     
  JOHN Q. DOE   
     
  MARY Q.DOE   
     
  000 ANYWHERE ST., APT. 000   
     
  ANYTOWN, STATE 00000   
     
     
     
  Example of in-care-of name line.    Name and address (single filer) with in-care-of name line:   
     
     
     
  JOHN Q.DOE   
     
  C/O JOHN R. DOE   
     
  0000 SOMEWHERE AVE.   
     
  SAMETOWN, STATE 00000   
     
 5.2.5    
The broken vertical lines separating the format arrangement of the SSN/EIN may be removed.   
 SSN and EIN Area    
When the vertical lines are removed, the SSN and EIN formats must be 000-00-0000 or   
       
00-0000000, respectively.   
       
     
 5.2.6    
You may remove the vertical rule that separates the dollars from the cents if it is still included   
 Entering Cents    
on the official IRS form.   
       
     
       
All entries in the amount column should have a decimal point following the whole dollar   
       
amounts whether or not the vertical line that separates the dollars from the cents is present   
       
     
       
You may omit printing the cents, but all amounts entered on the form must follow a consistent   
       
format. You are strongly urged to round off the figures to whole dollar amounts, following the   
       
official form instructions.   
       
     
       
When several amounts are added together, the total should be rounded off after addition (that   
       
is, individual amounts should not be rounded off for computation purposes).   
       
     
       
When printing money amounts, you must use one of the following formats: (a) 0,000,000; or   
       
(b) 0,000,000.00.   
       
     
       
When there is no entry for a line, leave the line blank.   
       
     
 5.2.7    
No prior approval is needed for the following changes (for use with computer-prepared forms   
 Changes to Lines    
only). Specific line numbers in the following headings may have changed due to tax law changes.   
     
     
5.2.8   
The vertical lines separating columns (1) through (4) may be removed. The captions may be   
 Dependents on Form 1040    
shortened to allow a one-line caption for each column.   
       
     
 5.2.9    
Any other line with text that takes up two or more vertical lines may be compressed to one line by   
 Other Lines    
using contractions, etc., and by removing instructional references.   
       
     
 5.2.10    
You may change the line caption to read "Tax" and computer print the words "Total includes tax   
 Form1040 - Tax    
from" and either "Form(s) 8814" or "Form 4972" or "962 election." If both forms are used, print   
       
both form numbers. This specific line number may have changed.   
       
     
 5.2.11    
It is not necessary to duplicate the color screening used on the official form. A substitute Form   
 Color Screening    
1040 or 1040-SR may be printed in black and white only with no color screening.   
       
     
 5.2.12    
No other changes to the Form 1040 or 1040-SR graphics are permitted without prior approval   
 Other Changes Prohibited    
except for the removal of instructions and references to instructions.   
     
 Part 6    
 Format and Content of Substitute Returns    
     
     
 Section 6.1 - Acceptable Formats for Substitute Forms and Schedules    
     
     
 6.1.1    
 Exhibit A    is an acceptable format for Form 1040-ES.   
 Exhibits and Use of    
     
 Acceptable Formats    
-  If your computer-generated Form1040-ES appears exactly like Exhibit A, no prior authorization   
       
  is needed.   
       
     
       
-  You may computer-generate forms not shown here, but you must design them by following   
       
  the manner and style discussed in Part 3.    
       
     
       
-  Take care to observe the other requirements and conditions in this revenue procedure. The   
       
  IRS encourages the submission of all proposed forms covered by this revenue procedure.   
       
     
 6.1.2    
The format of each substitute form or schedule must follow the format of the official form or   
 Instructions    
schedule as to item captions, line references, line numbers, sequence, form arrangement and format,   
       
etc. Basically, try to make the form look like the official one, with readability and consistency   
       
being primary factors. You may use periods and/or other similar special characters to separate the   
       
various parts and sections of the form. Do not use alpha or numeric characters for these purposes.   
       
All line numbers and items must be printed even though an amount is not entered on the line.   
       
     
 6.1.3    
When a line on an official form is designated by a number or a letter, that designation (reference   
 Line Numbers    
code) must be used on a substitute form. The reference code must be printed to the left of the text   
     
of each line and immediately preceding the data entry field, even if no reference code precedes   
     
the data entry field on the official form. If an entry field contains multiple lines and shows the line   
     
references once on the left and right side of the form, use the same number of line references on   
     
the substitute form.   
     
     
     
In addition, the reference code that is immediately before the data field must either be followed   
     
by a period or enclosed in parentheses. There must also be at least two blank spaces between the   
     
period or the right parenthesis and the first digit of the data field. (See Section 6.1.4. )     
     
     
6.1.4   
A decimal point (a period) should be used for each money amount regardless of whether the   
Decimal Points   
amount is reported in dollars and cents or in whole dollars, or whether or not the vertical line that   
     
separates the dollars from the cents is present. The decimal points must be vertically aligned when   
     
possible.   
     
     
     
           
     
     
     
     
     
     
     
           
     
     
     
     
 6.1.5    
When submitting a multi-page form, send all its pages in the same package. If you will not be   
 Multi-Page Forms    
producing certain pages, note that in your cover letter.   
     
     
 Section 6.2 - Additional Instructions for All Forms    
     
     
 6.2.1    
You may show the computer-prepared internal control numbers and identifying symbols on the   
 Use of Your Own Internal    
substitute if using such numbers or symbols is acceptable to the taxpayer and the taxpayer's   
 Control Numbers and    
representative. Such information must not be printed in the top 0.5 inch clear area of any form or   
 Identifying Symbols    
schedule requiring a signature. Except for the actual tax return form (Forms 1040, 1040-SR, 1120,   
       
940, 941, etc.), you may print in the left vertical and bottom left margins. The bottom left margin   
       
you may use extends 3.5 inches from the left edge of the form. You may print internal control   
       
numbers in place of the removed IRS catalog number.   
       
     
 6.2.2    
In the February 2009 Government Accountability Office (GAO) report, "Many Taxpayers   
 Required Software ID    
Rely on Tax Software and IRS Needs to Assess Associated Risks" (GAO-09-297), the GAO   
 Number (Source Code)    
recommended that the IRS require a software identification number on all individual returns to   
 on Computer- Prepared    
specifically identify the software package used to prepare each tax return. The IRS already has   
 Substitutes    
this capability for all e-filed  returns. In addition, many tax preparation software firms already   
     
print an IRS-issued 3-1etter source code on paper returns that are generated by their individual tax   
     
software. This source code was assigned when the firms were seeking substitute forms approval   
     
under this current publication.   
     
     
     
In order to follow this GAO recommendation, the IRS will require that all tax preparation software   
     
firms include the 3-1etter source code on all paper tax returns created by their individual tax   
     
preparation software. The many firms that currently have and display their source code on paper   
     
retun1S generated from their software should continue to do so, and no change is necessary.   
     
     
     
We have reviewed all software companies that passed Assurance Testing System (ATS) testing   
     
last filing season and have determined that some firms do not currently have a source code. To   
     
save you the burden of contacting us and for your convenience, we have assigned source codes   
     
to those firms.   
     
     
     
You should program your source code to be placed in the bottom left-hand comer of page one of   
     
each paper form that will be generated by your individual tax return package. You do not need to   
     
apply for a new source code annually.   
     
     
     
If you already use a 3-letter source code and we have issued you one in error, you are unsure if   
     
you were ever issued one, or you have other questions or concerns, you may contact Tax Forms   
     
and Publications Special Services Section at substituteforms@irs.gov.   
     
     
     
The IRS requires tax preparation software firms that participate in the IRS Free File Program   
     
include the 3-letter FFF code on all paper Form 1040 returns created by their individual tax   
     
preparation software.   
     
     
If you participate in the IRS Free File Program, you should program the 3-letter FFF code to   
     
be placed in the bottom left-hand corner of the first page of each paper Form 1040 that will be   
     
generated by your individual tax return package. The 3-letter FFF code and the 3-letter source   
     
code should be placed next to each other for consistency. If placing the 3-letter FFF code and the   
     
3-letter source code next to each other is not possible, then above or below will be acceptable.   
     
     
     
  Example.    The 3-letter FFF code and the 3-letter source code could be BCA-FFF or BCA FFF. A   
     
dash or a space is needed to separate the 3-1etter FFF code and the 3-letter source code.   
     
     
 6.2.3    
Descriptions for captions, lines, etc., appearing on the substitute forms may be limited to one print   
 Descriptions for Captions,    
line by using abbreviations and contractions, and by omitting articles, prepositions, etc. However,   
 Lines, etc.    
sufficient keywords must be retained to permit ready identification of the caption, line, or item.   
       
     
 6.2.4    
Explanatory detail and/or intermediate calculations for determining final line totals may be   
 Determining Final Totals    
included on the substitute. Preferably, such calculations should be submitted in the form of a   
       
supporting statement. If intermediate calculations are included on the substitute, the line on which   
       
they appear may not be numbered or lettered. Intermediate calculations may not be printed in the   
       
right column. This column is reserved only for official numbered and lettered lines that correspond   
       
to the ones on the official form. Generally, you may choose the format for intermediate calculations   
       
or subtotals on supporting statements to be submitted.   
       
     
 6.2.5    
Text on the official form, which is solely instructional (for example, "See instructions," etc.), may   
 Instructional Text on the    
generally be omitted from the substitute form.   
 Official Form    
     
     
     
 6.2.6    
Showing more than one form or schedule on the same printout page is prohibited. Both sides of   
 Intermingling Is Prohibited    
the paper may be used for multi-page forms, but it is unacceptable to intermingle forms.   
       
     
       
For instance, Schedule E can be printed on both sides of the paper because the official form is   
       
multi-page, with page 2 continued on the back. However, do not print Schedule E on the front   
       
page and Schedule SE on the back page, or Schedule A on the front and Form 8615 on the back,   
       
etc. Both pages of a substitute form must match the official form. The back page may be left blank   
       
if the back page of the official form contains only the instructions.   
       
     
 6.2.7    
Identify all computer-prepared substitutes clearly. Print the form designation 0.5 inch from the top   
 Identifying Substitutes    
margin and 1.5 inches from the left margin. Print the title centered on the first line of print. Print   
       
the tax year and, where applicable, the sequence number on the same line 0.5 inch to 1 inch from   
       
the right margin. Include the taxpayer's name and SSN on all forms and attachments. Also, print   
       
the OMB number as reflected on the official form.   
       
     
 6.2.8    
Negative (or loss) amount entries should be enclosed in brackets or parentheses or include a minus   
 Negative Amounts    
sign. This assists in accurate computation and input of form data. The IRS preprints parentheses   
     
in negative data fields on many official forms. These parentheses should be retained or inserted on   
     
printouts of affected substitute forms.   
     
 Part 7    
 Miscellaneous Forms and Programs    
     
     
 Section7.1 - Specifications for Substitute Schedules K-1    
     
     
 7.1.1    
Because of significant changes to improve processing, prior approval is now required for substitute   
 Requirements for Schedules    
Schedules K-1 that accompany Form 1041 (for estates and trusts), Form 1065 (for partnerships), or   
 K-1 That Accompany    
Form 1120-S (for S corporations). Substitute Schedules K-1 should be as close as possible to exact   
 Forms1041, 1065, and    
replicas of the official IRS schedules and follow the same process for submitting other substitute   
 1120-S    
forms and schedules. Before releasing their substitute forms, software vendors are responsible for   
     
making any subsequent changes that have been made to the final official IRS forms after the draft   
     
forms have been posted.   
     
     
     
Submit substitute Schedule K-1 forms, in PDF format, to scrips@irs.gov for scannability   
     
acceptance. Schedule K-1 forms that require testing do not need to be mailed to the Program. You   
     
must include information on the substitute that can be tested. This information should be dummy   
     
information. Use an "X" for alpha characters and "0" for numbers. The IRS will review and   
     
provide feedback of any changes needed so that your forms can be recognized correctly.   
     
     
     
Include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and   
     
1120-S. Allow at least 0.25 inch of white space around the 6-digit code.   
     
     
     
-  661117 for Form 1041.   
     
     
     
-  651123 for Form 1065.   
     
     
     
-  671121 for Form 1120-S.   
     
     
     
Schedules K-1 that accompany Forms 1041, 1065, or 1120-S must meet all specifications. The   
     
specifications include, but are not limited to, the following requirements.   
     
     
     
-  You will no longer be able to produce Schedules K1 that contain only those lines or boxes   
     
  that taxpayers are required to use. All lines must be included.   
     
     
     
-  The words "*See attached statement for additional information." must be preprinted in the   
     
  lower right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120-S.   
     
     
     
-  All Schedules K-1 that are filed with the IRS should be printed on commercial standard size   
     
  (8.5" x 11") paper (the international standard (A4) of 8.27" x 11.69" may be substituted).   
     
     
     
-  10-point Helvetica Light Standard is preferred for all entries that are typed or made using a   
     
  computer.   
     
     
     
-  Submissions should include the IRS source code or NACTP vendor ID code printed on the   
     
  lower left comer of the form or in place of the IRS catalog number.   
     
     
     
-  Each recipient's information must be on a separate sheet of paper. Therefore, you must   
     
  separate all continuously printed substitutes, by recipient, before filing with the IRS.   
     
     
     
-  No carbon copies or pressure-sensitive copies will be accepted.   
     
     
     
-  The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity (estate,   
     
  trust, partnership, or S corporation) and the recipient (beneficiary, partner, or shareholder).   
     
     
-  The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the   
     
  related form number (1041, 1065, or 1120-S), and the official schedule name in substantially   
     
  the same position and format as shown on the official IRS schedule.   
     
     
     
-  The Schedule K-1 must contain all the line items as shown on the official form, except for the   
     
  instructions, if any are printed on the back of the official Schedule K-1.   
     
     
     
-  The line items or boxes must be in the same order and arrangement as those on the official   
     
  form.   
     
     
     
-  The amount of each recipient's share of each item must be shown. A partial percent should be   
     
  reflected as a decimal (for example, 50 1/2% should be 50.5%). Furnishing a total amount of   
     
  each item and a percentage (or decimal equivalent) to be applied to such total amount by the   
     
  recipient does not satisfy the law and the specifications of this revenue procedure.   
     
     
     
-  State or local tax-related information may not be included on the Schedules K-1 filed with the   
     
  IRS.   
     
     
     
-  The entity may have to pay a penalty if substitute Schedules K-1 are filed that do not conform   
     
  to specifications.   
     
     
     
-  Additionally, the IRS may consider the Schedules K-1 that do not conform to specifications   
     
  as not being able to be processed and may return Form 1041, 1065, or 1120-S to the filer to be   
     
  filed correctly.   
     
     
     
Schedules K-1 that are 2-D bar-coded will continue to require prior approval from the IRS. (See   
     
 Sections 7.1.3    through 7.1.5. )   
     
     
 7.1.2    
Standardization for reporting information is required for recipient copies of substitute Schedules   
 Special Requirements    
K-1 of Forms 1041, 1065, and 1120-S. Uniform visual standards are provided to increase   
 for Recipient Copies of    
compliance by allowing recipients and practitioners to more easily recognize a substitute Schedule   
 Schedules K-1    
K-1. The entity must furnish to each recipient a copy of Schedule K-1 that meets the following   
     
requirements.   
     
     
     
-  Include the 6-digitfonn ID code in the upper right of Schedules K-1 of Forms 1041, 1065, and   
     
  1120-S. Allow white space around the 6-digit code.   
     
     
     
  - 661117 for Form 1041.   
     
     
     
  - 651123 for Form 1065.   
     
     
     
  - 671121 for Form 1120-S.   
     
     
     
-  You will no longer be able to produce Schedules K-1 that contain only those lines or boxes   
     
  that taxpayers are required to use. All lines must be included.   
     
     
     
-  The words "*See attached statement for additional information." must be preprinted in the   
     
  lower right-hand side on Schedules K-1 of Forms 1041, 1065, and 1120-S.   
     
     
     
-  The Schedule K-1 must contain the name, address, and SSN or EIN of both the entity and   
     
  recipient.   
     
     
     
-  The Schedule K-1 must contain the tax year, the OMB number, the schedule number (K-1), the   
     
  related form number (1041, 1065, or 1120-S), and the official schedule name in substantially   
     
  the same position and format as shown on the official IRS schedule.   
     
     
-  All applicable amounts and information required to be reported must be titled and numbered   
     
  in the same manner as shown on the official IRS schedule. The line items or boxes must be in   
     
  the same order and arrangement and must be numbered like those on the official IRS schedule.   
     
     
     
-  The Schedule K-1 must contain all items required for use by the recipient. The instructions for   
     
  the schedule must identify the line or box number and code, if any, for each item as shown in   
     
  the official IRS schedule.   
     
     
     
-  The amount of each recipient's share of each item must be shown. A partial percent should be   
     
  reflected as a decimal (for example, 501/2% should be 50.5%). Furnishing a total amount of   
     
  each line item and a percentage (or decimal equivalent) to be applied to such total amount by   
     
  the recipient does not satisfy the law and the specifications of this revenue procedure.   
     
     
     
-  Instructions to the recipient that are substantially similar to those on or accompanying the   
     
  official IRS schedule must be provided to aid in the proper reporting of the items on the   
     
  recipient's income tax return. Where items are not reported to a recipient because they do not   
     
  apply, the related instructions may be omitted.   
     
     
     
-  The quality of the ink or other material used to generate recipients' schedules must produce   
     
  clearly legible documents. In general, black chemical transfer inks are preferred.   
     
     
     
-  In order to assure uniformity of substitute Schedules K-1, the paper size should be standard   
     
  commercial (8.5" x 11") (the international standard (A4) of 8.27" x 11.69"may be substituted).   
     
     
     
-  The paper weight, paper color, font type, font size, font color, and page layout must be such   
     
  that the average recipient can easily decipher the information on each page. The preferred font   
     
  is Helvetica and a minimum of 10-point font.   
     
     
     
-  State or local tax-related information may be included on recipient copies of substitute   
     
  Schedules K-1. All non-tax-related information should be separated from the tax information   
     
  on the substitute schedule to avoid confusion for the recipient.   
     
     
     
-  The legend "Important Tax Return Document Enclosed" must appear in a bold and conspicuous   
     
  manner on the outside of the envelope that contains the substitute recipient copy of Schedule   
     
  K-1.   
     
     
     
-  The entity may have to pay a penalty if a substitute Schedule K-1 furnished to any recipient   
     
  does not conform to the specifications of this revenue procedure and results in impeding   
     
  processing.   
     
     
 7.1.3    
Electronic filing is the preferred method of filing; however, 2-D bar code is the best alternative   
 Requirements for Schedules    
method for paper processing.   
 K-1 With Two- Dimensional    
     
 (2- D) Bar Codes    
In an effort to improve efficiency and increase data accuracy, the IRS partnered with the tax   
     
software development community on a 2-D bar code project in 2003. Certain tax software   
     
packages have been modified to generate 2-D bar codes on Schedules K-1. As a result, when   
     
Schedules K-1 are printed using these programs, a bar code will print on the page.   
     
     
     
Rather than manually transcribe infofl11ation from the Schedule K-1, the IRS will scan the bar   
     
code and electronically upload the information from the Schedule K-1. This will result in more   
     
efficient operations within the IRS and fewer transcription errors for your clients.   
     
     
     
 Note. If software vendors do not want to produce bar-coded Schedules K-1, they may produce   
     
the official IRS Schedules K-1 but cannot use the expedited process for approving bar-coded   
     
Schedules K-1 and their parent returns as outlined in Section 7.1.6.    
     
     
In addition to the requirements in Sections 7.1.1  and 7.1.2, the bar-coded Schedules K-1 must   
     
meet the following specifications.   
     
     
     
-  The bar code should print in the space labeled "For IRS Use Only" on each Schedule K-1. The   
     
  entire bar code must print within the "For IRS Use Only" box surrounded by a white space of   
     
  at least 0.25 inch.   
     
     
     
-  Bar codes must print in PDF417 format.   
     
     
     
-  The bar codes must always be in the specified format with every field represented by at least a   
     
  field delimiter (carriage return). Leaving out a field in a bar code will cause every subsequent   
     
  field to be misread.   
     
     
     
-  Be sure to include the 6-digit form ID code in the upper right of Schedules K-1 of Forms 1041,   
     
  1065, and 1120-S. Allow white space around the 6-digit code.   
     
     
     
  -  661117 for Form 1041.   
     
     
     
  -  651123 for Form 1065.   
     
     
     
  -  671121 for Form 1120-S.   
     
     
 7.1.4    
Follow these general specifications for preparing all 2-D bar-coded Schedules K-1.   
 2-D Bar Code Specifications    
     
 for Schedules K-1    
-  Numeric fields.   
     
     
     
  -    Do not include leading zeros (except TINs, ZIP codes, and percentages).   
     
     
     
  -  If negative value, the minus sign "-" must be present immediately to the left of the   
     
  number and part of the 12-position field.   
     
     
     
  -  Do not use non-numeric characters except that the literal "STMT" can be put in money   
     
  fields.   
     
     
     
  -  All money fields should be rounded to the nearest whole dollar amount-if a money   
     
  amount ends in 00 to49 cents, drop the cents; if it ends in 50 to 99 cents, truncate the   
     
  cents and increment the dollar amount by one. Use the same rounding technique for the   
     
  bar-coded and the printed Schedules K-1.   
     
     
     
  -  All numeric-only fields are right justified (except TINs and ZIP codes).   
     
     
     
-  All field lengths are expressed as maximum lengths. If the value in the field has fewer positions   
     
  or the software program does not support that many positions, put in the bar code only those   
     
    positions actually used.   
     
     
     
-  Alpha fields.   
     
     
     
  -  Do not include leading blanks (left justified).   
     
     
     
  -  Do not include trailing blanks.   
     
     
     
  -  Use uppercase alpha characters only.   
     
     
-  Variable fields.   
     
     
     
  -  Do not include leading blanks (left justified).   
     
     
     
  -  Do not include trailing blanks.   
     
     
     
  -  Use uppercase alpha characters, numerics, and special characters as defined in each field.   
     
     
     
-  Delimit each field with a carriage return.   
     
     
     
-  Express percentages as 6-digit numbers without the percent sign. Left justify with a leading   
     
  zero(s) (for percentages less than 100%) and no decimal point (decimal point is assumed   
     
  between 3rd and 4th positions). Examples: 25.32% expressed as "025320"; 105% expressed   
     
  as "105000"; 8.275% expressed as "008275"; 10.24674% expressed as "010247."   
     
     
     
-  It is vital that the print routine reinitialize the bar code prior to printing each succeeding   
     
  Schedule K-1. Failure to do this will result in each Schedule K-1 for a parent return having the   
     
  same bar code as the document before it.   
     
     
 7.1.5    
Prior to releasing commercially available tax software that creates bar-coded Schedules K-1, the   
 Approval Process for Bar­    
printed schedule and the bar code must both be tested. If your company is creating bar-coded   
 Coded Schedules K-1    
Schedules K-1, you must receive certification for both the printed Schedule K-1, as well as the bar   
     
code, before offering your product for sale. Bar-code testing must be done using the final official   
     
IRS Schedule K-1. Bar-code approval requests must be resubmitted for any subsequent changes   
     
to the official IRS form that would affect the bar code. Below are instructions and a sequence of   
     
events that will comprise the testing process.   
     
     
     
-  The IRS has released the final Schedule K-1 bar-code specifications by publishing them on the   
     
  IRS.gov website (see IRS.gov/E-file-Providers/K-1-Bar-Code-Certification-Process).   
     
     
     
-  The IRS will publish a set of test documents that will be used to test the ability of tax   
     
  preparation software to create bar codes in the correct format.   
     
     
     
-  Software developers will submit two identical copies of the test documents--one to the IRS   
     
  and one to a contracted testing vendor.   
     
     
     
-  The IRS will use one set to ensure the printed schedules comply with standard substitute   
     
  forms specifications.   
     
     
     
-  If the printed forms fail to meet the substitute forms criteria, the IRS will inform the software   
     
  developer of the reason for noncompliance.   
     
     
     
-  The software developer must resubmit the Schedule(s) K-1 until it passes the substitute forms   
     
  criteria.   
     
     
     
-  The testing vendor will review the bar codes to ensure they meet the published bar-code   
     
  specifications.   
     
     
     
-  If the bar code(s) does not meet published specifications, the testing vendor will contact the   
     
  software developer directly, informing them of the reason for noncompliance.   
     
     
     
-  Software developers must submit new bar-coded schedules until they pass the bar-code test.   
     
     
     
-  When the bar code passes, the testing vendor will inform the IRS that the developer has passed   
     
  the bar-code test and the IRS will issue an overall approval for both the substitute form and the   
     
  barcode.   
     
     
After receiving this consolidated response, the software vendor is free to release software for   
     
tax preparation as long as any subsequent revisions to the schedules do not change the fields.   
     
     
     
Find the mailing address for the testing vendor below. Separate and simultaneous mailings to   
     
the IRS and the vendor will reduce testing time.   
     
     
 7.1.6    
In order to help provide incentives to the software development community to participate in the   
 Procedures for Reducing    
Schedule K-1 2-D project, the IRS has committed to expediting the testing of bar-coded Schedules   
 Testing Time    
K-1 and their associated parent returns. To receive this expedited service, follow the instructions   
     
below.   
     
     
     
-  Mail the parent returns (Forms 1041, 1065, 1120-S) and associated bar-coded Schedule(s)   
     
  K-1 to the appropriate address below in a separate package from all other approval requests.   
     
     
     
  Internal Revenue Service   
     
  Attn: K-1 Substitute Forms Analyst   
     
  SE:W:CAR:MP:T:T:SP   
     
  Room 6411   
     
  1111 Constitution Ave. NW   
     
  Washington, DC 20224   
     
     
     
-  Mail one copy of the parent form(s) and Schedule(s) K-1 to the IRS and another copy to the   
     
  testing vendor at the address below.   
     
     
     
  Leidos-IRS Paper and Remittance   
     
  Processing Support (PRPS II)   
     
  Attn: Dane Hawkins   
     
  9737 Washingtonian Blvd.   
     
  Gaithersburg, MD 20878   
     
     
     
-  Include multiple email and phone contact points in the packages.   
     
     
     
-  While the IRS can expedite bar-coded Schedules K-1 and their associated parent returns, it   
     
  cannot expedite the approval of nonassociated tax returns.   
     
     
     
-  Vendors are encouraged to go to NACTP.org for compliance guidelines in regards to file size   
     
  and error-correction level.   
     
     
     
-  Submissions should include the IRS source code or NACTP vendor ID code printed on the   
     
  lower left comer of the form or in place of the IRS catalog number.   
     
     
     
-  If a change is made to the bar code after approval, be sure to increment the version number.   
     
     
 Section 7.2 - Guidelines for Substitute Forms 8655    
     
     
 7.2.1    
Increased standardization for reporting information on substitute Forms 8655 is now required to   
 Increased Standardization    
aid in processing and for compliance purposes. Follow the guidelines in Section 7.2.2.    
 for Forms 8655    
     
     
 7.2.2    
Follow these specific requirements when producing substitute Forms 8655.   
 Requirements for    
     
 Substitute Forms 8655    
-  The first line of the title must be "Reporting Agent Authorization."   
     
     
     
-  If you want to include a reference to "State Limited Power of Attorney," it can be in parentheses   
     
  under the title. "State" must be the first word within the parentheses.   
     
     
     
-  You must include "Form 8655" on the form.   
     
     
     
-  While the line numbers do not have to match the official form, the sequence of the information   
     
  must be in the same order.   
     
     
     
-  The size of any variable data must be printed in a font no smaller than 10 points.   
     
     
     
-  For adequate disclosure checks, the following must be included for each taxpayer.   
     
     
     
  -  Name.   
     
     
     
  -  EIN.   
     
     
     
  -  Address.   
     
     
     
-  At this time, Form 944 will not be required if Form 941 is checked. Only those forms that the   
     
  reporting agent company supports need to be listed.   
     
     
     
-  The jurat (perjury statement) must be identical with the exception of references to line   
     
  numbers.   
     
     
     
-  A contact name and number for the reporting agent is not required.   
     
     
     
-  Any state information included should be contained in a separate section of the substitute   
     
    form. Preferably, this information will be in the same area as line 19 of the official form.   
     
     
     
-  All substitute Forms 8655 must be approved by the Program as outlined in the Form 8655   
     
  specifications in this current publication.   
     
     
     
-  If you have not already been assigned a 3-letter source code, you will be given one when your   
     
  substitute form is submitted for approval. This source code should be included in the lower   
     
  left corner of the form.   
     
     
     
-  The 20-business-day assumed approval policy does not apply to Form 8655 approvals.   
     
     
 7.2.3    
Because of how Form 8655 is processed and distributed to recipients, vendors are allowed to affix   
 Exception for Form 8655    
their logo onto the substitute version of the form. This exception is for Form 8655 only.    
     
     
 Section 7.3 - Guidelines for Substitute Image Character Recognition (ICR) Forms    
     
     
 7.3.1    
The following suggestions may be used as a guideline for creating easily scanned substitute tax   
 Overview    
forms. If you choose to participate, please use the Form 1040 format provided in Exhibit C  and   
     
 Exhibit D.   The grid view is for user ease of understanding only and should be removed before   
     
printing forms for submission.   
     
     
 Note.    The exhibits are to show formatting only, and are not a current copy of the form. Please use   
     
the most current version of any form to create the substitute tax form.   
     
     
 7.3.2    
Certain forms have been redesigned for automated processing via ICR technology. As a result,   
 Automated Processing of    
these forms have different requirements for reproduction. These specific requirements apply to   
 Certain Form S    
both the form image as well as the format of the variable data.   
     
     
 7.3.3    
-  Forms should have a 0.5-inch margin on all sides.   
 Form Design Requirements    
     
     
-  Nothing should be printed within the 0.5-inch margins.   
     
     
     
-  Vertical and horizontal lines should be replicated as they are on the IRS form.   
     
     
     
-  Printing should be in black ink on white paper. No color or shading should be used.   
     
     
     
-  Reproduce the exact text on each line as it appears on the IRS form. Do not abbreviate or leave   
     
  out text.   
     
     
 7.3.4    
-  See Section 3.3.    
 Data Format Requirements    
     
     
-  Rows 1-3 and 64-66, and columns 1-5 and 81-85 should be left blank.   
     
     
     
-  SSN and EIN fields should have dashes (for example, 999-99-9999 or 99-9999999).   
     
     
     
-  Do not use real data unless specifically directed (for example, printing 12345678912 vs.   
     
  XXXXXXXXXXX for bank routing number as required by Pub. 1345).   
     
     
     
-  Dollar value fields should be printed with commas and no decimals (for example, 999,999,999).   
     
     
     
-  Data placement should match defined areas on form. Variable data should not be printed   
     
  outside defined areas (for example, first, middle, last, and suffix fields should be printed where   
     
  they appear on the IRS form, not combined).   
     
     
     
-  Do not populate blank value fields with a zero. If there is no value for a field, leave it blank.   
     
  Exceptions include calculated fields with valid inputs that result in a value of zero.   
     
     
     
-  Vendor codes and company-specific printing information should only appear in the spaces   
     
  designated on the form.   
     
     
 Part 8    
 Additional Information    
     
     
 Section 8.1 - Forms for Electronically Filed Returns    
     
 8.1.1    
       
Electronic filing is a method by which authorized providers transmit tax return information to   
 Electronic Filing Program    
an IRS Service Center in the format of the official IRS forms. The IRS accepts both refund and   
       
       
balance due forms that are filed electronically.   
       
       
     
 8.1.2    
       
Anyone wishing to participate in IRS e-file  of tax returns must submit an e-file  application. The   
 Applying To Participate in    
application can be completed and submitted electronically on the IRS website at IRS.gov after   
 IRS e-file    
       
first registering for e-services on the website.   
       
       
     
 8.1.3    
       
Taxpayers choosing to electronically prepare and file their returns will be required to use the Self­   
 Obtaining the Taxpayer    
Select PIN method as their signatures.   
 Signature/ Submission of    
     
 Required Paper Documents    
Electronic return originators (EROs) can e-file  individual income tax returns only if the returns are   
       
       
signed electronically using either the Self-Selector Practitioner PIN method.   
       
       
     
       
       
Taxpayers must use Form 8453, U.S. Individual Income Tax Transmittal for an IRS e-file  Return,   
       
       
to send supporting documents that are required to be submitted to the IRS.   
       
       
     
       
       
For specific information about electronic filing, refer to Pub. 1345, Handbook for Authorized IRS   
       
       
 e-file    Providers of Individual Income Tax Returns.   
       
       
     
 8.1.4    
       
A participant in the electronic filing program who wants to develop a substitute form should   
 Guidelines for Preparing    
follow the guidelines throughout this publication and send a sample form for approval to the   
 Substitute Forms in the    
Program at substituteforms@irs.gov. If you do not prepare substitute Form 8453 using a font in   
 Electronic Filing Program    
which all IRS wording fits on a single page, the form will not be accepted.