Internal Revenue Bulletin: 2003-38 |
September 22, 2003 |
Pub. 1179 (Rev. Proc. 2003-28), General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S; Updated
Table of Contents
After Revenue Procedure 2003-28 was released for print, the Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) of 2003 (Public Law 108-27), was signed into law. Effective for transactions after May 5, 2003, the new law reduced capital gain rates and applied the new rates to qualified dividends. This required the IRS to revise forms and procedures affected by the changes. This document describes the changes and provides updated requirements for Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, and Form 1099-DIV, Dividends and Distributions. The rules and specifications for preparing the other forms discussed in Rev. Proc. 2003-28, 2003-16 I.R.B. 759 remain the same.
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Form 1099-B. Brokers and others reporting the gain or (loss) on regulated futures or foreign currency contracts report the profit or (loss) realized in 2003 in box 6 and the portion of that amount that is post-May 5, 2003, is reported in box 6a. Likewise, the aggregate profit or (loss) is reported in box 9, and the portion of that amount that is post-May 5, 2003, is reported in box 9a.
Form 1099-B has been reformatted to two forms per page to allow for the additional reporting. Exhibit 1 provides an example of the new form with the proper dimensions. Copy A of privately printed continuous substitute forms must be perforated at each 11′′ page depth. No perforations are allowed between the 5′′ forms on a single copy page of Copy A.
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Form 1099-DIV. Form 1099-DIV was reformatted to two forms per page to allow reporting of qualified dividends and post-May 5, 2003, capital gain distributions at the new rates. Form 1099-DIV boxes and their titles are as follows (boxes 2c-2f have been rearranged):
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Box 1a — Total ordinary dividends
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Box 1b — Qualified dividends
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Box 2a — Total capital gain distr.
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Box 2b — Post-May 5 capital gain distr.
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Box 2c — Qualified 5-year gain
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Box 2d — Unrecap. Sec. 1250 gain
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Box 2e — Section 1202 gain
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Box 2f — Collectibles (28%) rate gain
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Box 3 — Nontaxable distributions
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Box 4 — Federal income tax withheld
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Box 5 — Investment expenses
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Box 6 — Foreign tax paid
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Box 7 — Foreign country or U. S. possession
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Box 8 — Cash liquidation distributions
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Box 9 — Noncash liquidation distributions
Exhibit 2 provides an example of the new form with the proper dimensions. Copy A of privately printed continuous substitute forms must be perforated at each 11′′ page depth. No perforations are allowed between the 5′′ forms on a single copy page of Copy A.
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If you are uncertain of any specification and want it clarified, submit a letter citing the specification, state your understanding and interpretation of the specification, and enclose an example of the form (if appropriate) to:
Internal Revenue Service
Attn: Substitute Forms Program
W:CAR:MP:T:T:SP
1111 Constitution Ave., NW
Room 6411
Washington, DC 20224
Note: Allow at least 45 days for the IRS to respond.
You may also contact the Substitute Forms Program Unit via email at *taxforms@irs.gov. Enter “Substitute Forms” on the subject line.
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