* See Institute Memorandum to Operations Members No. 12-94, Tax Members No. 14-94 and Transfer
Agent Advisory Committee No. 14-94, dated April 14, 1994.
January 24, 1995
TO: OPERATIONS MEMBERS No. 5-95
TAX MEMBERS No. 8-95
TRANSFER AGENT ADVISORY COMMITTEE No. 8-95
RE: IRS DROPS CHANGE TO SUBSTITUTE FROM 1099 REQUIREMENTS
______________________________________________________________________________
The Institute is pleased to report that in the attached announcement the IRS has
withdrawn a proposal that would have prohibited the practice of providing instructions for
more than one type of Form 1099 on a single sheet of paper unless the payor used a composite
statement and actually reported information for each type of statement. The Institute strongly
opposed the proposed rule in meetings with the IRS.
The proposal was one of three changes to the requirements for substitute statements for
Forms 1099, 1098, 5498 and W-2G that were proposed in an IRS announcement published in
April, 1994.* The two remaining changes, requiring all substitute forms to prominently display
the tax year, form number and form name in a single area of the statement and setting
standards for the quality of any carbon copies used to produce statements will take effect for
statements reporting income received during 1995, that will be mailed to payees in January
1996.
We will keep you informed of further developments.
Peter J. Cinquegrani
Assistant Counsel - Tax
Attachment