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September 25, 1989
TO: TAX MEMBERS NO. 31-89
UNIT INVESTMENT TRUST MEMBERS NO. 46-89
CLOSED-END FUND MEMBERS NO. 41-89
OPERATIONS MEMBERS NO. 27-89
TRANSFER AGENT SHAREHOLDER ADVISORY COMMITTEE NO. 22-89
RE: IRS REVENUE PROCEDURE FOR FILING VARIOUS FORMS ON 8 INCH
MAGNETIC DISKETTE
__________________________________________________________
Attached is IRS Revenue Procedure 89-44, which sets forth
requirements and conditions for filing Forms 1098, 1099, 5498 and
W-2G for tax year 1989 information returns on 8 inch magnetic
diskette. The Revenue Procedure setting forth requirements and
conditions for filing these Forms on magnetic tape, 5-1/4 inch
magnetic diskette and 3-1/2 inch magnetic diskette was released
earlier this year. (See Institute Memorandum to Tax Members No.
28-89, Unit Investment Trust Members No. 42-89, Closed-End Fund
Members No. 33-89, Operations Members No. 24-89 and Transfer
Agent Shareholder Advisory Committee No. 20-89, dated August 2,
1989).
Section 2 of Part A (at pages 13 and 14) lists changes that
must be made to 1988 computer programs before the programs may be
used to generate 1989 returns. Among the many changes are those
to the Form 1099-DIV. The IRS advises that the Revenue Procedure
be carefully reviewed in its entirety, however, to ensure proper
reporting.
The IRS' procedures for matching names and taxpayer
identification numbers (TINs) are discussed in Section 11 of Part
A (at pages 20 and 21). Chart 1 provides guidelines for social
security numbers; Chart 2 provides guidelines for employer
identification numbers. Paragraph .02 of Section 11 provides
that the IRS validates a social security number by using the
"Name Control" of the surname of the individual who has been
assigned this number.
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The requirements for the "Name Control" field are set forth
in Section 6 of Part B (at page 37). Payors are encouraged to
use "every effort" to develop the correct Name Control,
especially where the name that corresponds to the TIN is not
included in the first or second payee name lines. To further
assist in developing the proper Name Control, the Revenue
Procedure gives several examples illustrating how its
requirements should be applied.
We will keep you informed of developments.
Keith D. Lawson
Assistant General Counsel
Attachment