Revenue Procedure 2023-13
Internal Revenue Service
2023-13 I.R.B. 581
     
     
     
 NOTE.   This revenue procedure will be reproduced as the next revision of IRS Publication 4436, General Rules and Specifications for Substitute Form 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and Form 8974.   
     
 Rev. Proc. 2023-13      
     
 TABLE OF CONTENTS      
     
                              
     
 Part 1    
     
     
 Section 1.1 - Purpose.01 The purpose of this revenue procedure is to provide general rules and specifications from   
     
the IRS for paper and computer-generated substitutes for Form 941, Employer  '  s QUARTERLY   
     
Federal Tax Return; Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule   
     
Depositors (referred to in this revenue procedure as  "  Schedule B  "  ); Schedule D (Form 941),   
     
Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations (referred   
     
to in this revenue procedure as  "  Schedule D  "  ); Schedule R (Form 941), Allocation Schedule for   
     
Aggregate Form 941 Filers (referred to in this revenue procedure as  "  Schedule R  "  ); and Form   
     
8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.   
     
     
     
 Caution.     Before creating a substitute Form 941, see Pub. 1167, General Rules and Specifications   
     
for Substitute Forms and Schedules, for additional rules and specifications for payment vouchers   
     
(Vouchers), printing in margins (Marginal Printing), and additional instructions (Additional   
     
Instructions for All Forms).   
     
     
     
 Note.     Substitute territorial forms (941-PR, Planilla para la Declaración Federal TRIMESTRAL   
     
del Patrono; 941-SS, Employer  '  s QUARTERLY Federal Tax Return (American Samoa, Guam,   
     
the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands); and Anexo B   
     
(Formulario 941-PR), Registro de la Obligación Contributiva para los Despositantes de Itinerario   
     
Bisemanal), should also generally conform to the specifications outlined in this revenue procedure.   
     
However, some of the measurements provided in the exhibits, later, may need to be adjusted for   
     
substitute territorial forms..02     This revenue procedure provides information for substitute Form 941, Schedule B, Schedule   
     
D, Schedule R, and Form 8974. If you need more in-depth information on who must complete   
     
these forms and how to complete them, see the Instructions for Form 941, the Instructions for   
     
Schedule B, the Instructions for Schedule D, the Instructions for Schedule R, the Instructions for   
     
Form 8974, and Pub. 15, Employer  '  s Tax Guide, or go to IRS.gov.   
     
     
     
 Note.   Failure to produce acceptable substitutes of the forms and schedules listed in this revenue   
     
procedure may result in delays in processing. This may result in penalties..03     Forms that completely follow the guidelines in this revenue procedure and are exact replicas   
     
of the official IRS forms do not need to be submitted to the IRS for specific approval. Substitute   
     
forms and schedules need to be scanned using IRS scanning equipment.   
     
     
     
If you are uncertain of any specification and want clarification, do the following.   
     
     
1.  Submit a letter citing the specification.   
     
     
2.  State your understanding of the specification.   
     
     
3.  Enclose an example (if appropriate) of how the form would appear if produced using your   
     
  understanding.   
     
4.  Be sure to include your name, complete address, phone number, and, if applicable, your   
  email address with your correspondence. Send your request to SCRIPS@IRS.gov or   
  SubstituteForms@IRS.gov, or use the following address.   
     
  Internal Revenue Service   
    Attn: Substitute Forms Program   
  SE:W:CAR:MP:P:TP:TP   
  5000 Ellin Road, Mail Stop C6-110   
  Lanham, MD 20706   
     
 Note.     Allow at least 30 days for the IRS to respond..04     However, software developers and form producers should send a blank copy of their substitute   
Form 941, Schedule B, and Schedule R in Portable Document Format (PDF) to SCRIPS@IRS.   
gov. The purpose is not specifically for approval but to assist the IRS in preparing to scan   
these forms. Submitters will only receive comments if a significant problem is discovered   
through this process. Submitters are not expected to delay marketing their forms in order to   
receive feedback. Submitters must not include any  "  live  "   taxpayer data on any substitute form   
submitted for review..05     Form 941, Schedule B, Schedule R, and Form 8974 have a six-digit form ID code in the upper   
right-hand corner. The first two digits of the form ID code represent whether the form is an official   
paper form or a substitute 6x10 grid. The third and fourth digits of the form ID code are a unique   
identifier that is subject to change each quarter when changes are made to a page of the form. The   
fifth and six digits of the form ID code generally represent the year in which the IRS made major   
formatting changes to the layout of a page of the form. The following six-digit form ID codes,   
some of which have been updated for the first quarter of 2023, are currently used on Form 941,   
Schedule B, Schedule R, and Form 8974.   
     
-     Official paper forms:   950122 (Form 941, page 1); 951222 (Form 941, page 2); 950922   
  (Form 941, page 3); 951020 (Form 941, page 4); 960311 (Schedule B); 951422 (Schedule R,   
  page 1); 951522(Schedule R, page 2); and 950823 (Form 8974).   
     
-     Substitute 6x10 grids:     970122 (Form 941, page 1); 971222 (Form 941, page 2); 970922   
  (Form 941, page 3); 971020 (Form 941, page 4); 970311 (Schedule B); 971422 (Schedule R,   
  page 1); 971522(Schedule R, page 2); and 970823 (Form 8974).   
     
You must always use the form ID code provided on the current form for the applicable quarter   
for which you are creating a substitute form, even if this revenue procedure is not superseded to   
reflect a change to a form ID code.   
     
 Note.     Page 4 of Form 941 (page intentionally left blank) is not required to be filed with the IRS   
as part of a substitute Form 941. However, if page 4ofthesubstituteForm941isfiled,it must   
include the form ID code..06     This revenue procedure will be updated only if there are major formatting changes to the   
layout of the forms (that is, changes to the measurements provided in the exhibits at the end of this   
revenue procedure) or there are other changes that impact the processing of substitute forms. This   
revenue procedure won  '  t be updated solely because a line is changed to  "  Reserved for future use  "     
or solely because a form ID code changes without major formatting changes.   
     
 Section 1.2 - What's New.01     Some measurements shown in the exhibits for Form 941 have changed due to minor design   
     
changes..02     Some column headings on Schedule R were revised to make use of columns that were   
     
previously  "  Reserved for future use.  ".03     Form 8974 was revised due to the Inflation Reduction Act of 2022. See the instructions for this   
     
form at IRS.gov/Form8974..04     Form 941-SS and Form 941-PR will no longer be available after the fourth quarter of   
     
2023. Instead, employers in the U.S. territories will file Form 941, or, if you prefer your form   
     
and instructions in Spanish, you can file new Form 941 (sp), Declaracion del Impuesto Federal   
     
TRIMESTRAL del Empleador.   
     
     
 Section 1.3 - Reminders.01 Draft forms.     Draft forms can be found at IRS.gov/DraftForms.   
     
     
 Section 1.4 - General Requirements for Reproducing IRS Official Form 941, Schedule B, Schedule D, Schedule R,    
 and Form 8974.01     Submit substitute Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 to the IRS   
     
for specifications review. Substitute Form 941, Schedule B, Schedule D, Schedule R, and Form   
     
8974 that   completely conform     to the specifications contained in this revenue procedure do not   
     
require prior approval from the IRS, but should be submitted to SCRIPS@IRS.gov to ensure that   
     
they conform to IRS format and scanning specifications..02     Print the form on standard 8.5-inch wide by 11-inch paper..03     Use white paper that meets generally accepted weight, color, and quality standards (minimum   
     
20 lb. white bond paper).   
     
 Note.   Reclaimed fiber in any percentage is permitted provided that the requirements of this   
standard are met..04     The IRS prefers printing Form 941 on both sides of a single sheet of paper, but it is acceptable   
to print on one side of each of two separate sheets of paper..05     Make the substitute paper form as identical to the official form as possible..06     Print the substitute form using nonreflective black (not blue or other-colored) ink. Printing in   
an ink color other than black may reduce readability in the scanning process. This may result in   
figures being too faint to be recognizable..07     official Use type faces that are substantially identical in size and shape to the form and use rules   
and shading (if used) that are substantially identical to those on the official form. Use font size as   
large as possible within the fields..08     In the same location as shown on the official IRS forms, print the six-digit for ID code (if one   
exists on the official form) on each form using nonreflective black carbon-based, 12-point font.   
The use of non-OCR-A font may reduce readability for scanning. Use the official form to develop   
your substitute form.   
     
 Note.   Maintain as much white space as possible around the form ID code. Do not allow character   
strings to print adjacent to the code.   
     
The following six-digit form ID codes are used on Form 941, Schedule B, Schedule R, and Form   
8974 for the first quarter of 2023. Print  "  950122  "   on Form 941, page 1;  "  951222  "   on Form 941,   
page 2;  "  950922  "   on Form 941, page 3;  "  951020  "   on Form 941, page 4;  "  960311  "   on Schedule B;   
"  951422  "   on Schedule R, page 1;  "  951522  "   on Schedule R, page 2; and  "  950823  "   on Form 8974.   
You must always use the form ID code provided on the current form for the applicable quarter   
for which you are creating a substitute form, even if this revenue procedure is not superseded to   
reflect a change to a form ID code. See Section 1.5 for information on form ID codes for software-   
generated forms.   
     
 Note.     Page 4 of Form 941 (page intentionally left blank) is not required to be filed with the IRS   
as part of a substitute Form 941. However, if page 4 of the substitute Form 941 is filed, it must   
include the form ID code..09     Print the OMB number in the same location as on the official form. Be sure to include the   
OMB number on Form 941, Schedule B, Schedule D, Schedule R, and Form 8974..10     Print all entry boxes and checkboxes exactly as shown   (location and size)     on the official   
forms.   
     
 Note.     Instead of a four-sided checkbox for the entry, just the bottom line of the box can be used as   
long as the location and size remain the same..11     Print  "  For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment   
Voucher.  "   at the bottom of page 1 of Form 941..12     Print  "  For Paperwork Reduction Act Notice, see separate instructions.  "   at the bottom of   
Schedule B and Schedule D..13     Print  "  For Paperwork Reduction Act Notice, see the separate instructions.  "   at the bottom of   
Schedule R..14     Print  "  For Paperwork Reduction Act Notice, see the separate instructions.  "   at the bottom of   
Form 8974..15    Do not   print the form catalog number (  "  Cat. No.  "  ) at the bottom of the forms or instructions.   
Instead, print your IRS-issued three-letter substitute form source code in place of the catalog   
number on the left at the bottom of page 1 of Form 941, Schedule B, Schedule D, Schedule R, and   
Form 8974.   
     
 Note.     You can obtain a three-letter substitute form source code by requesting it by email at   
SubstituteForms@IRS.gov. Enter  "  Substitute Forms  "   on the subject line..16    Do not   print the Government Publishing Office (GPO) symbol at the bottom of the forms or   
instructions.   
     
 Section 1.5 - Reproducing Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 for Software-Generated    
 Paper Forms.01     You may use the PDF files to develop the layout for your forms. Draft for ms found at IRS.   
gov/DraftForms can be used to develop interim formats until the forms are finalized. When forms   
become finalized, they are posted and can be found at IRS.gov/Forms. You may use 6x10 grid   
formats to develop software versions of Form 941, Schedule B, Schedule D, Schedule R, and   
Form 8974.   
     
     
Please follow the specifications exactly to develop the fields..02     If you are developing software using the 6x10 grid, the following six-digit form ID codes are   
used on Form 941, Schedule B, Schedule R, and Form 8974 for the first quarter of 2023.   
     
-   
"  970122  "   for Form 941, page 1;  "  971222  "   for Form 941, page 2;  "  970922  "   for Form 941,   
     
page 3;  "  971020  "   for Form 941, page 4;  "  970311  "   for Schedule B;  "  971422  "   for Schedule R,   
     
page 1;  "  971522  "   for Schedule R, page 2; and  "  970823  "   for Form 8974.   
     
     
You must always use the form ID code provided on the current form, with the first two digits   
     
changed to  "  97  "   when using a 6x10 grid, for the applicable quarter for which you are creating   
     
a substitute form, even if this revenue procedure is not superseded to reflect a change to a form   
     
ID code.   
     
     
 Note.   Maintain as much white space as possible around the form ID code. Do not allow   
     
character strings to print adjacent to the code.   
     
-   
Place all 6x10 grid boxes and entry spaces in the same field as indicated on the   
     
     
official forms.   
     
-   
Use single lines for  "  Employer Identification Number (EIN)  "   and other entry areas in the   
     
entity section of Form 941, pages 1, 2, and 3; Schedule B; Schedule R, pages 1 and 2; and   
     
Form 8974.   
     
-   
Reverse type is not needed as shown on the official form.   
     
-   
 Do not     pre-print decimal points in the data boxes. However, where the amounts are required,   
     
the amounts should be printed with decimal points and place holders for cents.   
     
-   
     
Delete the pre-printed formatting in any  "  date  "   boxes.   
     
-   
     
Use a single box for  "  Personal Identification Number (PIN)  "   on Form 941.   
     
-   
You may delete all shading when using the 6x10 grid format..03     If producing both the form and the data or the form only, print your three-letter source code   
at the bottom of Form 941, page 1; Schedule B; Schedule D; Schedule R, page 1; or Form 8974.   
See   Section 1.4.15..04     If producing only the data on the form, print your four-digit software industry vendor code   
on Form 941. The four-digit vendor code preceded by four zeros and a slash (0000/9876) must   
be pre-printed. If you have a valid vendor code issued to you through the National Association   
of Computerized Tax Processors (NACTP), you should use that code. If you do not have a valid   
vendor code, contact the NACTP via email at president@nactp.org for information on these codes..05     Print  "  For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment   
Voucher.  "   at the bottom of Form 941, page 1..06     Print  "  For Paperwork Reduction Act Notice, see separate instructions.  "   at the bottom of   
Schedule B and Schedule D..07     Print  "  For Paperwork Reduction Act Notice, see the separate instructions.  "   at the bottom of   
Schedule R, page 1..08     Print  "  For Paperwork Reduction Act Notice, see the separate instructions.  "   at the bottom of   
Form 8974..09     Be sure to print the OMB number in the same location as on the official forms on substitute   
Form 941, Schedule B, Schedule D, Schedule R, and Form 8974..10    Do not   print the form catalog number (  "  Cat. No.  "  ) at the bottom of the forms or instructions..11    Do not   print the Government Publishing Office (GPO) symbol at the bottom of the forms or   
instructions..12     To ensure accurate scanning and processing, enter data on Form 941, Schedule B, Schedule D,   
Schedule R, and Form 8974 as follows.   
     
-   
Display/print the name and EIN on all pages and attachments in the proper associated fields.   
     
-   
Use 12-point (minimum 10-point) Courier font (where possible).   
     
-   
Omit dollar signs. Commas are optional.   
     
-   
Except for Form 941, lines 1, 2, and 12, leave blank any data field with a value of zero.   
     
-   
Enter negative amounts with a minus sign. For example, report  "  -10.59  "   instead of  "  (10.59).  "     
     
     
 Note.   The IRS prefers that you use a minus sign for negative amounts instead of parentheses or   
some other means. However, if your software only allows for parentheses in reporting negative   
amounts, you may use them.   
     
 Section 1.6 - Specific Instructions for Schedule D.01     To properly file and to reduce delays and contact from the IRS, Schedule D must be produced   
as close as possible to the official form..02   Use Schedule D to explain why you have certain discrepancies. See the Instructions for   
Schedule D for more information. In many cases, the information on Schedule D helps the IRS   
resolve discrepancies without contacting you..03     If a substitute Schedule D is not submitted in similar format to the official IRS schedule, the   
substitutes may be returned, you may be contacted by the IRS, delays in processing may occur,   
and you may be subject to penalties.   
     
 Section 1.7 - Specific Instructions for Schedule R.01     To properly file and to reduce delays and contact from the IRS, Schedule R and Continuation   
Sheets for Schedule R must be produced as close as possible to the official form.   
     
 Note. Do not     present the information in spreadsheet or similar format. We may not be able to   
properly process nonconforming documents with an excessive number of entries. Complete as   
many Continuation Sheets for Schedule R (Schedule R, page 2) as necessary. If Continuation   
Sheets are not used or they vary in form from the official form, processing may be delayed, and   
you may be subject to penalties..02     Use Schedule R to allocate the aggregate information reported on Form 941 to each client. If   
you have more than 5 clients, complete as many Continuation Sheets for Schedule R as necessary.   
Attach Schedule R, including any Continuation Sheets, to your aggregate Form 941 and file it   
with your return.   
     
Enter your business information carefully.   
     
     
     
Make sure all information exactly matches the information shown on the aggregate Form 941.   
Compare the total of each column on Schedule R, line 9 (including your information on line 8),   
to the amounts reported on the aggregate Form 941. For each column total of Schedule R, the   
relevant line from Form 941 is noted in the column heading. If the totals on Schedule R, line 9, do   
not match the totals on Form 941, there is an error that must be corrected before submitting Form   
941 and Schedule R..03 Do:      
     
     
-  Develop and submit only conforming Schedules R;   
     
-  Follow the format and fields exactly as on the official Schedule R, even if this revenue   
  procedure is not superseded to reflect a change in a column heading on Schedule R; and   
     
-  Maintain the same number of entry lines on the substitute Schedule R as on the official form.04 Do not:      
     
     
-  Add or delete entry lines;   
     
     
-  Submit spreadsheets, database printouts, or similar formatted documents instead of using the   
  Schedule R format to report data; and   
     
     
-  Reduce or expand font size to add or delete extra data or lines..05     If substitute Schedules R and Continuation Sheets for Schedule R are not submitted in similar   
format to the official schedule, the substitutes may be returned, you may be contacted by the IRS,   
delays in processing may occur, and you may be subject to penalties.     
     
 Section 1.8 - Specific Instructions for Form 8974.01     To properly file and to reduce delays and contact from the IRS, Form 8974 must be produced   
as close as possible to the official form..02     Use Form 8974 only if you are claiming the qualified small business payroll tax credit for   
increasing research activities..03     If a substitute Form 8974 is not submitted in similar format to the official IRS form, the   
substitutes may be returned, you may be contacted by the IRS, delays in processing may occur,   
and you may be subject to penalties.   
     
 Section 1.9 - Office of Management and Budget (OMB) Requirements for Substitute Forms.01     The Paperwork Reduction Act (the Act) of 1995 (P.L. 104-13) requires the following.   
     
-   
OMB approves all IRS tax forms that are subject to the Act.   
     
-   
Each IRS form contains the OMB approval number, if assigned. The official OMB numbers   
     
may be found on the official IRS-printed forms.   
     
-   
Each IRS form (or its instructions) states:   
     
     
1.  Why the IRS needs the information,   
     
     
2.  How it will be used, and   
     
     
3.  Whether or not the information is required to be furnished to the IRS..02     This information must be provided to any users of official or substitute IRS forms or instructions..03     The OMB requirements for substitute IRS forms are the following.   
     
-   
Any substitute form or substitute statement to a recipient must show the OMB number as it   
     
appears on the official form.   
     
-   
For Form 941, Schedule B, Schedule D, Schedule R, and Form 8974,the OMB number (1545-   
     
0029) must appear exactly as shown on the official form.   
     
-   
For Form 941, Schedule B, Schedule D, Schedule R, and Form 8974,the OMB number must   
     
use one of the following formats.   
     
     
1.  OMB No. 1545-0029 (preferred).   
     
     
2.  OMB # 1545-0029 (acceptable)..04     If no instructions are provided to users of your forms, you must furnish to them the exact text   
of the Privacy Act and Paperwork Reduction Act Notice.   
     
 Section 1.10 - Order Forms and Instructions.01     You can order forms and instructions at IRS.gov/OrderForms.   
     
 Section 1.11 - Effect on Other Documents.01     Revenue Procedure 2022-15, 2022-13 I.R.B. 908, dated March 28, 2022, is superseded.   
     
 Section 1.12 - Helpful Information.01     Please follow the specifications and guidelines to produce substitute Form 941, Schedule B,   
Schedule D, Schedule R, and Form 8974..02     These forms are subject to review and possible changes, as required. Therefore, employers are   
cautioned against overstocking supplies of privately printed substitutes..03     Here is a review of references that were listed throughout this document.   
     
-   
Form 941, Employer  '  s QUARTERLY Federal Tax Return.   
     
-   
Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors (referred   
     
to in this revenue procedure as  "  Schedule B  "  ).   
     
-   
Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers,   
     
or Consolidations (referred to in this revenue procedure as  "  Schedule D  "  ).   
     
-   
Schedule R (Form 941), Allocation Schedule for Aggregate Form 941Filers (referred to in   
     
this revenue procedure as  "  Schedule R  "  ).   
     
-   
Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.   
     
-   
Substitute territorial forms (941-PR, 941-SS, and Anexo B (Formulario 941-PR)).   
     
-   
Instructions for Form 941.   
     
-   
Instructions for Schedule B (Form 941).   
     
-   
Instructions for Schedule D (Form 941).   
     
-   
Instructions for Schedule R (Form 941).   
     
-   
Instructions for Form 8974.   
     
-   
Pub. 15, Employer  '  s Tax Guide.   
     
-   
SCRIPS@IRS.gov for submissions.   
     
-   
SubstituteForms@IRS.gov for questions.   
     
-   
For questions:   
     
     
     
  Internal Revenue Service   
     
  Attn: Substitute Forms Program   
     
  SE:W:CAR:MP:P:TP:TP   
     
  5000 Ellin Road, Mail Stop C6-110   
     
  Lanham, MD 20706   
     
-   
IRS.gov/DraftForms for draft forms.   
     
-   
IRS.gov/Forms for final forms.   
     
 Section 1.13 - Exhibits