April 14, 1994
TO: OPERATIONS MEMBERS NO. 12-94
TAX MEMBERS NO. 14-94
TRANSFER AGENT ADVISORY COMMITTEE NO. 14-94
RE: IRS PROPOSED CHANGES TO SUBSTITUTE FORM 1099 REQUIREMENTS
__________________________________________________________
In the attached announcement, the Internal Revenue Service
proposes changes to the requirements for substitute statements
for Forms 1099, 1098, 5498 and W-2G. The changes would be
effective for statements reporting income received during 1995
that will be mailed to payees by January 31, 1996.
The proposed changes would require all substitutes to
prominently display the tax year, form number and form name in a
single area of statement. The practice of providing instructions
for more than one form would be prohibited unless the payor uses
a composite report for more than one type of information
statement (such as combined Forms 1099-B and 1099-DIV) and the
payor is actually reporting information for each type of
statement. In addition, the proposal sets new standards for the
quality of carbon copies used to produce information statements.
Comments on the proposal must be received by May 31, 1994.
Please contact the undersigned at (202) 326-5837 with any
suggestions for Institute comments on the proposed changes by
May 16, 1994.
We will keep you informed of developments.
Peter J. Cinquegrani
Assistant Counsel - Tax
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