(A) In the case of a calendar year or annual period beginning before January 1, 1987

(1) On the first day of such calendar year or annual period the person reasonably expects to file fewer than 500 returns on such form for the calendar year or annual period; and

(2) The person was not required to file 500 or more returns on such form for the preceding calendar year or annual period; or

(B) In the case of a calendar year or annual period beginning on or after January 1, 1987

(1) On the first day of such calendar year or annual period the person reasonably expects to file fewer than 250 returns on such form for the calendar year or annual period; and

(2) The person was not required to file 250 or more returns on such form for the preceding calendar year or annual period.

Alternatively, such persons may make returns on magnetic media in accordance with paragraph (b) of this section.

(11) Machine-readable forms. Returns made on a paper form under this paragraph (c)(1) shall be machine-readable if applicable revenue procedures provide for a paper form.

machine-readable

(iii) Form 1099 series. Each form within the Form 1099 series is considered a separate type of form for purposes of this paragraph (c)(1). Thus, for example, in the case of a calendar year beginning on or after January 1, 1987, if on the first day of such calendar year a person reasonably expects to file 200 returns on Form 1099-A and 150 returns on Form 1099-MISC and for the preceding calendar year the person was required to file 200 returns on Form 1099A and 150 returns on Form 1099-MISC, the person may make such returns on the prescribed paper form for such calendar year.

(2) Special rule for Form 1099-DIV, 1099-PATR, 1099-INT, 1099–OID—(i) 50 or fewer returns. A person required to make returns on Form 1099-DIV, 1099PATR, 1099-INT, or 1099-OID may make such returns on a machine-readable paper form for a calendar year if—

(A) On the first day of such calendar year the person reasonably expects to

file 50 or fewer returns on such forms for the calendar year; and

(B) The person was not required to file more than 50 returns on such forms for the preceding calendar year. Alternatively, such persons may make returns on magnetic media in accordance with paragraph (b) of this section

(11) Aggregation of returns. For purposes of determining the number of returns that a person was required to file or reasonably expects to file on Form 1099-DIV, 1099-PATR, 1099-INT, or 1099OID, all such returns shall be aggregated. Thus, for example, if a person filed 30 returns on Form 1099-INT and 30 returns on Form 1099-DIV for a calendar year, or reasonably expects to do so for the succeeding calendar year, all returns made by such person on Form 1099-DIV, 1099-PATR, 1099-INT and 1099-OID for the succeeding calendar year must be on magnetic media.

(3) Provided by regulations—(1) In general. This section does not apply to a return if the regulations relating to such return require reporting on magnetic media.

(11) Example. The following example illustrates the application of the rule in paragraph (c)(3)(1) of this section:

Example. Section 1.6045-1(7), relating to returns of information of brokers and barter exchanges, requires the use of magnetic media as the method of reporting. Thus, this section does not apply to returns required to be filed under section 6045.

(4) Waiver. (1) The Commissioner may waive the requirements of this section if hardship is shown in a request for waiver filed in accordance with this paragraph (c)(4)(i). The principal factor in determining hardship will be the amount, if any, by which the cost of filing the information returns in accordance with this section exceeds the cost of filing the returns on other media. Notwithstanding the forgoing, if an employer is required to make a final return on Form 941, or a variation thereof, and expedited filing of Forms W-2 is required, the unavailability of specifications for magnetic media filing will be treated as creating a hardship. See §31.6071(a)–1(a)(3)(ii). A request for waiver should be filed at least 45 days before the due date of the information return in order for the Service to have adequate time to respond to

the request for waiver. The waiver will specify the type of information return and the period to which it applies and will be subject to such terms and conditions regarding the method of reporting as may be prescribed by the Commissioner.

(ii) The Commissioner may by revenue procedure prescribe rules that supplement the provisions of paragraph (c)(4)(1) of this section.

(d) Paper form returns. Returns submitted on paper forms (whether or not machine-readable) permitted under paragraph (c) of this section shall be made in accordance with applicable revenue or Social Security Administration procedures.

(e) Applicability of current procedures. Until procedures are prescribed which further implement the mandatory filing on magnetic media provided by this section, a return to which this section applies shall be made in the manner and shall be subject to the requirements and conditions (including the requirement of applying for consent to the magnetic medium) prescribed in the regulations, revenue procedures and Social Security Administration publications relating to the filing of such return on magnetic media. In addition, consent to the use of a magnetic medium obtained in accordance with such regulations, revenue procedures and Social Security Administration publications (regardless of when obtained) will be considered consent to the use of such medium for purposes of paragraph (b) of this section.

(f) Failure to file. If a person fails to file a return on magnetic media when required to do so by section 6011(e) and this section, such person is deemed to have failed to file the return. In addition, if a person making returns on a paper form under paragraph (c) of this section for a calendar year (or annual filling period) beginning after December 31, 1986, fails to file a return on a machine-readable paper form when required to do so by this section, such person is deemed to have failed to file the return. See sections 6652, 6693, and 6721 for penalties for failure to file certain returns.

(g) Effective date. (1) Except as otherwise provided in paragraph (g)(2) of this

section, this section applies to returns filed after December 31, 1986.

(2) Returns required on Form 1099DIV, 1099-PATR, 1099-INT, or 1099-OID for payments made after December 31, 1983, must be filed on magnetic media except as otherwise provided in paragraph (c) of this section.

[T.D. 8081, 51 FR 10348, Mar. 25, 1986, as amended by T.D. 8097, 51 FR 30352, Aug. 26, 1966; T.D. 8140, 52 FR 19137, May 21, 1987; T.D. 8636, 60 FR 66142, Dec. 21, 1995]

$301.6011-2T Required use of magnetic media (temporary).

This section applies to information returns required to be filed after December 31, 1996. For information returns required to be filed after December 31, 1989, and before January 1, 1997, see section 6011(e) of the Internal Revenue Code and §301.6011-2.

(a) Meaning of terms. The following definitions apply for purposes of this section:

(1) Magnetic media. The term magnetic media means any magnetic media permitted under applicable regulations, revenue procedures, or, in the case of returns filed with the Social Security Administration, Social Security Administration publications. These generally include magnetic tape, tape cartridge, and diskette, as well as other media (such as electronic filing) specifically permitted under the applicable regulations, procedures, or publications.

(2) (3) [Reserved] For further guidance, see §301.6011-2(a) (2) and (3).

(b) Returns required on magnetic media. (1) If the use of Form 1042-S, 1098, 1099 series, 5498, 8027, W-2G, or other form treated as a form specified in this paragraph (b)(1) is required by the applicable regulations or revenue procedures for the purpose of making an information return, the information required by the form must be submitted on magnetic media, except as otherwise provided in paragraph (c) of this section. Returns on magnetic media must be made in accordance with applicable revenue procedures or publications. See §601.601(d)(2)(ii)(b) of this chapter. Pursuant to these procedures, the consent of the Commissioner of Internal Revenue (or other authorized officer or employee of the Internal Revenue

Service) to a magnetic medium must be obtained by submitting Form 4419 (Application for Filing Information Returns Magnetically/Electronically) prior to submitting a return described in this paragraph (b)(1) on the magnetic medium.

(2) If the use of Form W-2 (Wage and Tax Statement), Form 499R-2/W-2PR (Withholding Statement), Form W-2VI (U.S. Virgin Islands Wage and Tax Statement), Form W-2GU (Guam Wage and Tax Statement), Form W-2AS (American Samoa Wage and Tax Statement), or other form treated as a form specified in this paragraph (b)(2) is required for the purpose of making an information return, the information required by the form must be submitted on magnetic media, except as otherwise provided in paragraph (c) of this section. Returns described in this paragraph (b)(2) must be made in accordance with applicable Social Security Administration procedures or publications (which may be obtained from the local office of the Social Security Administration).

(3) [Reserved] For further guidance, see §301.6011-2(b)(3).

(c) Exceptions-(1) Low-volume filers/ 250-threshold (1) In general. No person is required to file information returns on magnetic media unless the person is required to file 250 or more returns during the calendar year. Persons filing fewer than 250 returns during the calendar year may make the returns on the prescribed paper form, or, alternatively, such persons may make returns on magnetic media in accordance with paragraph (b) of this section.

(11) [Reserved] For further guidance, see §301.6011-2(c)(1)(ii).

(iii) No aggregation. Each type of information return described in paragraphs (b) (1) and (2) of this section is considered a separate return for purposes of this paragraph (c)(1). Therefore, the 250-threshold applies separately to each type of form required to be filed.

(iv) Examples. The provisions of paragraph (c)(1)(iii) of this section are illustrated by the following examples:

Example 1. For the calendar year ending December 31, 1996, Company X is required to file 200 returns on Form 1099-INT and 350 returns on Form 1099-MISC. Company X is not

required to file Forms 1099-INT on magnetic media but is required to file Forms 1099MISC on magnetic media.

Example 2. During the calendar year ending December 31, 1996, Company Y has 275 employees in Puerto Rico and 50 employees in American Samoa. Company Y is required to file Forms 499R-2/W-2PR on magnetic media but is not required to file Forms W-2AS on magnetic media.

Example 3. For the calendar year ending December 31, 1996, Company Z files 300 original returns on Form 1099-DIV and later files 70 corrected returns on Form 1099-DIV. Company Z is required to file the original returns on magnetic media. However, Company Z is not required to file the corrected returns on magnetic media because the corrected returns fall under the 250-threshold. See §301.6721-1(a)(2)(11).

(2) Waiver. (1) The Commissioner may waive the requirements of this section if hardship is shown in a request for waiver filed in accordance with this paragraph (c)(2)(i). The principal factor in determining hardship will be the amount, if any, by which the cost of filing the information returns in accordance with this section exceeds the cost of filing the returns on other media. Notwithstanding the foregoing, if an employer is required to make a final return on Form 941, or a variation thereof, and expedited filing of Forms W-2, Forms 499R-2/W-2PR, Forms W2VI, Forms W-2GU, or Form W-2AS is required, the unavailability of the specifications for magnetic media filing will be treated as creating a hardship. See §31.6071(a)–1(a)(3)(ii). A request for waiver must be made in accordance with applicable revenue procedures or publications. See §601.601(d)(2)(ii)(b) of this chapter. Pursuant to these procedures, a request for waiver should be filed at least 45 days before the due date of the information return in order for the Service to have adequate time to respond to the request for waiver. The waiver will specify the type of information return and the period to which it applies and will be subject to such terms and conditions regarding the method of reporting as may be prescribed by the Commissioner.

(ii) The Commissioner may prescribe rules that supplement the provisions of paragraph (c)(2)(1) of this section.

(3) (4) [Reserved] For further guidance, see §301.6011-2(c) (3) and (4).

(d) (e) [Reserved] For further guidance, see §301.6011-2 (d) and (e).

(f) Failure to file. If a person fails to file an information return on magnetic media when required to do so by this section, the person is deemed to have failed to file the return. In addition, if a person making returns on a paper form under paragraph (c) of this section fails to file a return on machinereadable paper form when required to do so by this section, the person is deemed to have failed to file the return. See sections 6652, 6693, and 6721 for penalties for failure to file certain returns. See also section 6724 and the regulations under section 6721 for the specific rules and limitations regarding the penalty imposed under section 6721 for failure to file on magnetic media.

(g) Effective date. (1) [Reserved] For further guidance, see §301.6011-2(g)(1).

(2) Paragraphs (a)(1), (b) (1) and (2), (c)(1) (i), (iii), and (iv), (c)(2), and (f) of this section are effective for information returns required to be filed after December 31, 1996. For information returns required to be filed after December 31, 1989, and before January 1, 1997, see section 6011(e) of the Internal Revenue Code and §301.6011-2.

[T.D. 8683, 61 FR 53060, Oct. 10, 1996]

Income Tax Returns

§301.6012-1 Persons required to make returns of income.

For provisions with respect to persons required to make returns of income, see §§1.6012-1 to 1.6012-4, inclusive, of this chapter (Income Tax Regulations).

§301.6013-1 Joint returns of income tax by husband and wife.

For provisions with respect to joint returns of income tax by husband and wife, see §§1.6013-1 to 1.6013-7, inclusive, of this chapter (Income Tax Regulations).

[32 FR 15241, Nov. 3, 1967, as amended by T.D. 7670, 45 FR 6932, Jan. 31, 1980]

§301.6014-1 Income tax return-tax

not computed by taxpayer.

For provisions relating to the election not to show on an income tax return the amount of tax due in connection therewith, see §§ 1.6014-1 and

For provisions relating to the requirement of self-employment tax returns, see §1.6017-1 of this chapter (Income Tax Regulations).

Estate and Gift Tax Returns $301.6018-1 Estate tax returns.

For provisions relating to requirement of estate tax returns, see §§ 20.6018-1 to 20.6018-4, inclusive, of this chapter (Estate Tax Regulations).

$301.6019-1 Gift tax returns.

For provisions relating to requirement of gift tax returns, see §§ 25.60191 to 25.6019-4, inclusive, of this chapter (Gift Tax Regulations).

Miscellaneous Provisions

$301.6020-1 Returns prepared or executed by district directors or other internal revenue officers.

(a) Preparation of returns—(1) In general. If any person required by the Code or by the regulations prescribed thereunder to make a return fails to make such return, it may be prepared by the district director or other authorized internal revenue officer or employee provided such person consents to disclose all information necessary for the preparation of such return. The return upon being signed by the person required to

make it shall be received by the district director as the return of such per

son.

(2) Responsibility of person for whom return is prepared. A person for whom a return is prepared in accordance with subparagraph (1) of this paragraph shall for all legal purposes remain responsible for the correctness of the return to the same extent as if the return had been prepared by him.

(b) Execution of returns—(1) In general. If any person required by any internal revenue law or by the regulations prescribed thereunder to make a return (other than a declaration of estimated tax required under section 6015 or 6016) fails to make such return at the time prescribed therefor, or makes, willfully or otherwise, a false or fraudulent return, the district director or other authorized internal revenue officer or employee shall make such return from his own knowledge and from such information as he can obtain through testimony or otherwise.

(2) Status of returns. Any return made in accordance with subparagraph (1) of this paragraph and subscribed by the district director or other authorized internal revenue officer or employee shall be prima facie good and sufficient for all legal purposes.

(3) Deficiency procedures. For deficiency procedures in the case of income, estate, and gift taxes, see sections 6211 to 6216, inclusive, and §§ 301.6211-1 to 301.6215-1, inclusive.

(c) Cross references. (1) For provisions that a return executed by a district director or other authorized internal revenue officer or employee will not start the running of the period of limitations on assessment and collection, see section 6501(b)(3) and paragraph (c) of §301.6501(b)-1.

(2) For additions to the tax and additional amounts for failure to file returns, see section 6651 and §301.6651-1, and section 6652 and §301.6652-1, respectively.

(3) For additions to the tax for failure to pay tax, see section 6653 and §301.6653-1.

(4) For criminal penalties for willful failure to make returns, see sections 7201, 7202, and 7203.

(5) For criminal penalties for willfully making false or fraudulent returns, see sections 7206 and 7207.

(6) For authority to examine books and witnesses, see section 7602 and §301.7602-1.

§301.6021-1 Listing by district directors of taxable objects owned by nonresidents of internal revenue districts.

Whenever there are in any internal revenue district any articles subject to tax, which are not owned or possessed by or under the care or control of any person within such district, and of which no list has been transmitted to the district director, as required by law or by regulations prescribed pursuant to law, the district director, or other authorized internal revenue officer or employee, shall enter the premises where such articles are situated, shall make such inspection of the articles as may be necessary, and shall make lists of the same according to the forms prescribed. Such lists, being subscribed by the district director or other authorized internal revenue officer or employee, shall be sufficient lists of such articles for all purposes.

INFORMATION RETURNS

Information Concerning Persons Subject to Special Provisions §301.6031-1 Return of partnership in

come.

For provisions relating to the requirement of returns of partnership income, see §1.6031-1 of this chapter (Income Tax Regulations).

§301.6032-1 Returns of banks with respect to common trust funds.

For provisions relating to requirement of returns of banks with respect to common trust funds, see §1.6032-1 of this chapter (Income Tax Regulations). §301.6033-1 Returns by exempt organizations.

For provisions relating to the requirement of returns by exempt organizations, see §1.6033-1 of this chapter (Income Tax Regulations).