Notice 1371 (9-2007) UPDATE OF CD/DVD INFORMATION CONTAINED IN PUBLICATION 1281

CD/DVD Information

If you have 251 to 100,000 incorrect payee "B" records your data will be on a CD. If you have over 100,000 payee "B" records then your data will be delivered on a DVD. Please make sure you have the correct type of reader. Many older readers only read CDs.

The enclosed CD/DVD is encrypted. You should be able to read it by putting it into a CD/DVD reader on your computer. If you have the "Auto-Run" feature turned on, the system should bring up a pop-up window asking you to: Please contact the IRS at 1-866-455-7438 extension 5 to receive your encryption key. Have the following information available when calling: TIN, company name, primary or secondary contact and self assigned PIN number. This encryption key will be needed to unlock your CD/DVD.

If you do not have "Auto-Run" turned on, you won't see the pop-up window. Contact the IRS at 1-866-455-7438 extension 5 to receive your encryption key. Please have the following information available when calling: TIN, company name, primary or secondary contact and self assigned PIN number. You should have filled out Form 10301 and returned it to the IRS. This form tells the IRS the self selected PIN that you would like to use.

When you view the CD/DVD there should be one file named "UDnnnn"**. This file will be an .exe file. When you double-click on the file a box will open asking for your encryption key. Put in your encryption key, click "OK" the next screen will ask you to browse the folder tree and select to where you want to extract the files. Click on "OK" and the files are extracted. Please make sure to keep tax data secure.

On the CD/DVD please find the files described below:

 I40642.UAnnnn ** is the Payer A-Record file. 114 Characters.

 I40642.UBnnnn ** is all the Incorrect Payee B-Records. Each

 222 Characters.

 I40642.UCnnnn ** is the Payer C-Record file. 37 Characters.

 A Copy of

.

** nnnn is the CD/DVD transmittal number.

Each file record layout is described below.

These files are .txt files; So if you read them with NotePad, word processing software, etc. you will see the Pipe Codes "|" as separate characters between each field. If you open the file with Excel, you can read it as a delimited file set the delimiters as pipes "|". You then will see the file laid out without the Pipe Codes "|", just like Cartridges of past years. Be careful to set or convert fields to text so that leading zeros are not truncated or blanked out.

The IRS hopes this new delivery method meets most of your requests to move away from the tape cartridges.

The following codes were not included in Publication 1281 and should be used in additon to the codes provided for PAYEE "B" RECORD FILE listed on page 33 of the Publication.

PAYEE "B" RECORD FILE

 POSITION   RECORD FILE FIELD TITLE  LENGTH   DESCRIPTION AND REMARKS

  208        TIN INDICATOR             1      "1" = Payer indicated EIN

                                              "2" = Payer indicated SSN

                                              "0" = no TIN indicated

  209        Pipe Code                 1      "|"

  210-213    FILLER                    4      BLANK FILLED

  214        Pipe Code                 1      "|"

  215-222    SEQUENCE                  8      NUMBER OF THE RECORD AS

                                              IT APPEARED IN YOUR FILE

The following codes were not included in

and should be used as the codes for PAYER "C" RECORD FILE.

PAYER "C" RECORD FILE

 POSITION   RECORD FILE FIELD TITLE   LENGTH   DESCRIPTION AND REMARKS

  1          RECORD TYPE                1      A "C" WILL BE ENTERED

  2          Pipe Code                  1      "|"

  3-10       NUMBER OF DOCUMENTS        8      THE NUMBER OF

                                               INFORMATION RETURNS WITH

                                               MISSING AND INCORRECT

                                               TINS ASSOCIATED WITH

                                               THIS PAYER. IT WILL BE

                                               RIGHT JUSTIFIED AND ZERO

                                               FILLED

  11         Pipe Code                  1      "|"

  12-19      BWH TIN STATUS             8      THE NUMBER OF DOCUMENTS

                                               SENT TO THE PAYER WITH A

                                               BWH-TIN-STATUS-IND EQUAL

                                               TO "1" (SEE PAYER "B"

                                               RECORD). IT WILL BE

                                               RIGHT JUSTIFIED AND ZERO

                                               FILLED

  20         1 CNT                      1      "|"

  21-28      Pipe Code                  8      THE NUMBER OF DOCUMENTS

             BWH TIN STATUS                    SENT TO THE PAYER WITH A

             2 CNT                             BWH-TIN-STATUS-IND EQUAL

                                               TO "2" (SEE PAYER "B"

                                               RECORD) IT WILL BE RIGHT

                                               JUSTIFIED AND ZERO

                                               FILLED.

  29         Pipe Code                  1      "|"

  30-37      BWH TIN STATUS             8      THE NUMBER OF DOCUMENTS

             3 CNT                             SENT TO THE PAYER WITH A

                                               BWH-TIN-STATUS-IND EQUAL

                                               TO "3" (SEE PAYER "B"

                                               RECORD) IT WILL BE RIGHT

                                               JUSTIFIED AND ZERO

                                               FILLED.