Magnetic Filing Specifications Electronic Filing

Transcription

1 Commonwealth of the Northern Mariana Islands Department of Finance Division of Revenue and Taxation Magnetic Filing Specifications Electronic Filing Revised October 2017

2 Contents PART 1 INTRODUCTION Overview Page 3 Supported Magnetic Filings Page 3 Supported Magnetic Media Page 4 Magnetic Filing Requirements Page 4 Magnetic Filing Deadlines Page 4 Magnetic Filing Submissions Page 5 Magnetic Filing Tests Page 5 Amended Magnetic Filings Page 5 Changes for Tax Year 2017 Page 5 Additional Information Page 5 Optical Disk Specifications Page 5 USB Flash Drive Specifications Page 6 PART 2 FORMS OS-3710 AND W-2CM Page 6 Overview of OS-3710 / W-2CM Page 7 Data Format for the OS-3710 Page 7 Data Format for the W-2CM Page 9 Using Spreadsheets Page 13 Creating the Comma-delimited File Page 14 Saving from Excel/XP/2003/Open Office Page 14 Saving from Excel 2007 Page 15 Saving from Excel 2010 Page 18 Verifying the Comma-delimited File Page 22 PART 3 FORMS 1099, W-2G, 1042-S Overview of 1099 / W-2G / 1042-S Page 22 The Transmitter T Record Page 23 The Payer A Record Page 24 The Payee B Record Page 29 The Payee B Record for Form 1099-DIV Page 35 The Payee B Record for Form 1099-INT Page 35 The Payee B Record for Form 1099-MISC Page 36 The Payee B Record for Form 1099-R Page 37 The Payee B Record for Form W-2G Page 40 The Payee B Record for Form 1042-S Page 41 The Payer End C Record Page 42 The Transmitter End F Record Page 44 PART 4 FORMS OS-3705 AND OS-3705A Overview of OS-3705 and OS-3705A Filing Page 44 Data Format for the OS-3705 Page 44 Data Format for the OS-3705A Page 47

3 PART 5 APPENDICES Appendix A State Abbreviation Codes Page 49 Appendix B Country Codes Page 50 TABLES Table 1 The OS-3710 Record Page 7 Table 2 The W-2CM Record Page 9 Table 3 W-2CM Other Benefit Codes Page 13 Table 4 The Transmitter T Record Page 23 Table 5 The Payer A Record Page 25 Table 6 The Payee B Record Page 30 Table 7 The Payee B Record for 1099-DIV Page 35 Table 8 The Payee B Record for 1099-INT Page 36 Table 9 The Payee B Record for 1099-MISC Page 37 Table 10 The Payee B Record for 1099-R Page 38 Table 11 The Payee B Record for W-2G Page 40 Table 12 The Payee B Record for 1042-S Page 42 Table 13 Form 1042-S Valid Tax Rate Table Page 42 Table 14 Reserved for future use Table 15 The Payee C Record Page 43 Table 16 The Transmitter End F Record Page 44 Table 17 The OS-3705 Record Page 45 Table 18 The OS-3705A Record Page 47 Figure 1 Amount Codes by Filing Page 28 Figure 2 Marital Status Codes Page 48 PART 1 - INTRODUCTION OVERVIEW The term, magnetic filing, is used to describe the process of creating tax filings on computer media as described below under Supported Magnetic Media, and submitting that computer media to the local tax authority in place of a paper filing. A magnetic filing must adhere to a specific data format just as a paper filing must adhere to a specific paper form. Magnetic filings that do not comply with the published data format will be rejected, and may result in Failure to file penalties. Data formats for supported magnetic filings are contained within this publication. SUPPORTED MAGNETIC FILINGS The CNMI Division of Revenue & Taxation accepts magnetic filings as described in the following locations in this publication. PART 2 - FORMS OS-3710 AND W-2CM OS-3710 Annual Reconciliation of Taxes Withheld W-2CM Wage and Tax Statement

4 PART 3 - FORMS 1099, W2-G AND 1042-S 1099-DIV Dividends and Distributions 1099-INT Interest Income 1099-MISC Miscellaneous Income 1099-R Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. W-2G Certain Gambling Winnings 1042-S Foreign Person s US Source income subject to Withholding PART 4 - FORMS OS-3705 AND OS-3705A OS-3705 Employer s Quarterly Withholding Tax Return OS-3705A Attachment for Employer s Quarterly Withholding Tax Return SUPPORTED MAGNETIC MEDIA Magnetic media supported by the CNMI Department of Finance include: Optical media, including DVD-R, DVD+R, DVD-RW, DVD+RW, CD-R and CD-RW USB flash drive Data may be recorded in either EBCDIC or ASCII (preferred) code sets. Media may contain Labels (preferred) or No Labels. Additional detailed specifications may be found on page 5 - Magnetic Media Specifications for the Forms 1099, W-2G, and 1042s. MAGNETIC FILING REQUIREMENTS All taxpayers who must file these forms are encouraged to file magnetically. If you have over 250 Form W-2CM filings, you must file your Form OS-3710 and W-2CM filings on magnetic media, or file a waiver, Form If you have over 250 Form W-2CM filings and you filed a waiver, Form 8508, in the previous year, you must file on magnetic media this year. If you have over 250 Form 1099 and Form W-2G filings, you must file your Form 1099 and Form W-2G filings on magnetic media, or file a waiver, Form If you have over 250 Form 1099 and Form W-2G filings and you filed a waiver, Form 8508, in the previous year, you must file on magnetic media this Year OS-3705/OS3705A magnetic filing is voluntary as of the date of this publication. MAGNETIC FILING DEADLINES The 3710, W2, 1099 and W-2G magnetic filings must be received by the CNMI Division of Revenue & Taxation no later than February 28 (February 29, during leap years). If the Due Date falls on a weekend or holiday then the Due Date becomes the next regular business day. If mailed, the 3710, W2, 1099 and W-2G magnetic filings must be postmarked no later than February 28 (February 29, during leap years). Failure to meet these filing deadlines will result in failure to file penalties.

5 MAGNETIC FILING SUBMISSIONS Magnetic filings may be delivered or mailed. If delivered, magnetic filings must be delivered by the applicable filing deadline to: CNMI Division of Revenue & Taxation Joeten Dandan Commercial Building If mailed, magnetic filings must be mailed to: CNMI Division of Revenue & Taxation Attn: Compliance Branch Manager P.O. Box 5234 CHRB Saipan, MP MAGNETIC FILING TESTS The CNMI Division of Revenue & Taxation does not require the submission of test magnetic filings. However, you may elect to submit test magnetic filings to the CNMI Division of Revenue & Taxation as long as any test submissions are clearly marked as such. Test filings will be accepted up to February 15 only. The submission of test magnetic filings does not in any way alter or remove the associated filing deadlines. Test magnetic filings will not be considered final filings, and the successful processing of test filings does not fulfill your responsibility to file the final magnetic filing with the CNMI Division of Revenue & Taxation. AMENDED MAGNETIC FILINGS In the event that corrections to a magnetic filing must be made, the amended magnetic filing should be submitted in its entirety to the CNMI Division of Revenue & Taxation, clearly marked as an amended magnetic filing, and with an attached letter of explanation. All laws, regulations, deadlines, penalties, interest, fees, etc., that apply to both amended filings and to magnetic filings also apply to amended magnetic filings. CHANGES FOR TAX YEAR 2017 None ADDITIONAL INFORMATION Additional information from the CNMI Division of Revenue & Taxation regarding magnetic filings may be made available via the CNMI Department of Finance s internet web site: MAGNETIC MEDIA SPECIFICATIONS FOR THE FORMS 1099s, W-2G AND 1042s OPTICAL DISK SPECIFICATIONS To be compatible, Optical Media must meet the following specifications: Data must be recorded in standard ASCII code using the CDFS file system. Records must be a fixed length of 750 bytes per record. Positions 749 and 750 of each record have been reserved for use as carriage return / line feed (CR/LF) characters, if applicable.

6 A descriptive filename may be used. For example, if you are filing a 1099-R for the tax year 2017 you may name it R, or 1099R2017. A disk will not contain multiple files. A file may have only ONE Transmitter T Record. Delimiter-character commas (,) must not be used. For security purpose you may encrypt the file. Inform the CNMI Division of Revenue and Taxation office about the encrypted file and the contact person responsible for retrieving the password. Failure to comply with instructions and specifications may result in media being returned for replacement. The CNMI Division of Revenue & Taxation encourages transmitters to use blank CD-R or DVD-R disks when preparing files. If extraneous data follows the End of Transmission F Record, the file may be returned for replacement. Disks found to contain computer viruses will be returned for replacement, and may result in failure to file penalties. USB FLASH DRIVE SPECIFICATIONS To be compatible, Flash Drive Media must meet the following specifications: Data must be recorded in standard ASCII code using the NTFS file system. Records must be a fixed length of 750 bytes per record. Positions 749 and 750 of each record have been reserved for use as carriage return / line feed (CR/LF) characters, if applicable. A descriptive filename may be used. For example, if you are filing a 1099-R for the tax year 2017 you may name it R, or 1099R2017. A drive will not contain multiple files. A file may have only ONE Transmitter T Record. Delimiter-character commas (,) must not be used. For security purpose you may encrypt the file. Inform the CNMI Division of Revenue and Taxation office about the encrypted file and the contact person responsible for retrieving the password. Failure to comply with instructions and specifications may result in media being returned for replacement. The CNMI Division of Revenue & Taxation encourages transmitters to use newly formatted drives or discs when preparing files. If extraneous data follows the End of Transmission F Record, the file may be returned for replacement. Drives found to contain computer viruses will be returned for replacement, and may result in failure to file penalties. Drives or discs found to contain computer viruses will be returned for replacement, and may result in failure to file penalties. PART 2 - FORMS OS-3710 AND W-2CM Overview of OS-3710 / W-2CM Filing Data Format for the OS-3710 Data Format for the W-2CM Using Spreadsheets Creating the Comma-delimited File Saving from Excel 2000/XP/2003/Open Office Saving from Excel 2007

7 Saving from Excel 2010 Verifying the Comma-delimited File OVERVIEW OF OS-3710 / W-2CM FILING When submitting OS-3710 and W-2CM magnetic filings, two files are created: The first file consists of a single record of 331 positions containing the contents of a single Form OS The second file consist of multiple records of 448 positions each, one record for each W-2CM filing being submitted. This file may span magnetic media, when necessary. Although two separate files are submitted, they must be submitted together, and may be submitted back-to- back on the same magnetic media. If two files are not submitted, the magnetic filing is considered to be incomplete, and will be returned. An incomplete filing is treated as a non-filing, and may result in failure to file penalties. The CNMI Division of Revenue & Taxation does not accept spreadsheets for magnetic filings. However, it is possible to prepare magnetic filings using any spreadsheet program, saving the spreadsheets as comma- delimited text files, and submitting these text files as magnetic filings. See page 14 - Using Spreadsheets for additional information. DATA FORMAT FOR THE OS-3710 The OS-3710 Record identifies the employer, and contains totals that must agree with corresponding values reported in the W-2CM Records with which it is associated. The employer will be held responsible for the completeness, accuracy, and timely submission of magnetic files. The OS-3710 Record must be a fixed length of 331 positions. Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as in a numeric field. All alpha characters entered in the OS-3710 Record may be uppercase or mixed case. For all fields marked Required, the transmitter must provide the information described under Description and Remarks. For those fields not marked Required, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated media position(s) and for the indicated length. Table 1: The OS-3710 Record Field Data Type Position Length Dec EIN Number S A Spreadsheet Column Description and Remarks Required. Enter the Federal Employer ID Number. This number is assigned by the Internal Revenue Service, is nine digits, is usually displayed and printed with a hyphen between the second and third digits, and generally begins with the digits 66 or 98. Do not enter blanks, hyphens, or alpha characters. All zeros, all ones, all twos, etc., will have the effect of an incorrect EIN.

8 CNMI Tax ID Number S B Employer Name A C Address 1 A D Address 2 A E City A F State A G Zip Code S H Q1 Chapter 2 S I Q1 Chapter 7 S J Required. Enter the CNMI Tax ID Number. This number is assigned by the CNMI Division of Revenue & Taxation, is nine digits, is usually displayed and printed with a hyphen between the second and third digit, and begins with the digits 99. Do not enter blanks, hyphens, or alpha characters. All zeros, all ones, all twos, etc., will have the effect of an incorrect CNMI TIN. Required. Enter the name of the employer. Any extraneous information must be deleted. Leftjustify information, and fill unused positions with blanks. Required. Enter the address of the employer. The street address should include number, street, apartment, or suite number (or P. O. Box if mail is not delivered to street address). Left-justify information, and fill unused positions with blanks. Optional. Enter additional address information which cannot be contained in positions 54 through 78, or which is required on a second line for clarity. Left-justify information, and fill unused positions with blanks. Required. Enter the city, town, or post office of the employer. Left-justify information, and fill unused positions with blanks. Do not enter state and ZIP Code information in this field. Required. Enter the valid U. S. Postal Service state abbreviation code. Refer to the chart of valid state abbreviation codes in Appendix A - State Abbreviation Codes. Required. Enter the valid five-digit ZIP Code assigned by the U. S. Postal Service. Enter the amount of Chapter 2 wages withheld as reported on the employer s Form 3705 for the first quarter. Enter the amount of Chapter 7 wages withheld as reported on the employer s Form 3705 for the first quarter. Q1 Tax Paid S K Enter zeros. Q1 Wages S L Q2 Chapter 2 S M Q2 Chapter 7 S N Enter the amount of total wages paid as reported on the employer s Form 3705 for the first quarter. Enter the amount of Chapter 2 wages withheld as reported on the employer s Form 3705 for the second quarter. Enter the amount of Chapter 7 wages withheld as reported on the employer s Form 3705 for the second quarter. Q2 Tax Paid S O Enter zeros. Q2 Wages S P Q3 Chapter 2 S Q Q3 Chapter 7 S R Enter the amount of total wages paid as reported on the employer s Form 3705 for the second quarter. Enter the amount of Chapter 2 wages withheld as reported on the employer s Form 3705 for the third quarter. Enter the amount of Chapter 7 wages withheld as reported on the employer s Form 3705 for the third quarter.

9 Q3 Tax Paid S S Enter zeros. Q3 Wages S T Q4 Chapter 2 S U Q4 Chapter 7 S V Q4 Tax Paid S W Enter zeros. Q4 Wages S X Unused Zeros 1 S Y Not used. Set to zeros. Unused Zeros 2 S Z Not used. Set to zeros. Unused Zeros 3 S AA Not used. Set to zeros. Unused Zeros 4 S AB Not used. Set to zeros. Enter the amount of total wages paid as reported on the employer s Form 3705 for the third quarter. Enter the amount of Chapter 2 wages withheld as reported on the employer s Form 3705 for the fourth quarter. Enter the amount of Chapter 7 wages withheld as reported on the employer s Form 3705 for the fourth quarter. Enter the amount of total wages paid as reported on the employer s Form 3705 for the fourth quarter. End of Record Code A AC Enter ## (Number sign character). DATA FORMAT FOR THE W-2CM The W-2CM Record contains the payment information summarized for an employee for the term of a tax year. The sum of amounts reported on all W-2CM Records must equal certain totals reported in the OS-3710 record with which they are associated; otherwise, the magnetic filing is considered to be in error. All W-2CM Records must be a fixed length of 448 positions. Do not use decimal points (.) to indicate dollars and cents. Ten dollars must appear as in a numeric field. All alpha characters entered in the W-2CM record may be uppercase or mixed case. For all fields marked Required, the transmitter must provide the information described under Description and Remarks. For those fields not marked Required, the transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field position(s) and for the indicated length. The CNMI Division of Revenue & Taxation strongly encourages transmitters to review the data for accuracy before submission to prevent issuance of erroneous notices. Transmitters should be especially careful that the names, TINs, account numbers, types of income and income amounts are correct. Table 2: The W2-CM Record Field Data Type Position Length Dec Spread Sheet Column Description and Remarks Serial Number S A Required. Enter a five-digit number, formatted with leading zeros. Generally, the first W-2CM is numbered 00001, and each subsequent W-2CM is assigned the next sequential number; however, you may use any method of numbering the W-2CM records you wish as long as each W-2CM has a unique five-digit number.

10 EIN Number S B Required. Enter the employer s Federal Employer ID Number. This number is assigned by the Internal Revenue Service, is nine digits, is usually displayed and printed with a hyphen between the second and third digits, and generally begins with the digits 66 or 98. Do not enter blanks, hyphens, or alpha characters. All zeros, all ones, all twos, etc., will have the effect of an incorrect TIN. CNMI Tax ID Number S C Required. Enter the employer s CNMI Tax ID Number. This number is assigned by the CNMI Division of Revenue & Taxation, is nine digits, is usually displayed and printed with a hyphen between the second and third digit, and begins with the digits 99. Do not enter blanks, hyphens, or alpha characters. All zeros, all ones, all twos, etc., will have the effect of an incorrect CNMI TIN. Social Security Number Employee First Name Employee Middle Initial(s) S D A E A 45 3 F Required. Enter the employee s Social Security Number. Do not enter blanks, hyphens, or alpha characters. All zeros, all ones, all twos, etc., will have the effect of an incorrect Social Security Number. Required. Enter the first name (given name) of the employee. Left-justify and fill unused positions with blanks. Required. Enter the initial(s) of the middle name of the employee. Left-justify and fill unused positions with blanks. Employee Last Name A G Suffix A 68 4 H Address 1 A I Address 2 A J City A K State A L Zip Code S M Country A N Location Code A O Days Out of CNMI S P Required. Enter the last name (surname or family name) of the employee. Left-justify and fill unused positions with blanks. Optional. Enter the employee s Title, such as Mr., Ms., Dr., Etc Required. Enter the address of the employee. The street address should include number, street, apartment, or suite number (or P. O. Box if mail is not delivered to street address). Left-justify information, and fill unused positions with blanks. Optional. Enter additional address information which cannot be contained in position 68 through 92, or which is required on a second line for clarity. Left-justify information, and fill unused positions with blanks. Required. Enter the city, town, or post office of the payer. Left-justify information, and fill unused positions with blanks. Do not enter state and ZIP Code information in this field. Required. Enter the valid U. S. Postal Service state abbreviation code. Refer to the chart of valid state abbreviation codes in Appendix A - State Abbreviation Codes. Required. Enter the valid five-digit ZIP Code assigned by the U. S. Postal Service. Required. Enter the name of the country in which the employee resides. Required. Enter the two-digit location code in which the employee resides, as follows: 20 for Saipan, 21 for Rota, 22 for Tinian, or 23 for Other. Enter the number of days out of the CNMI, as reported in Box B of Form W-2. The number must be right-justified, and left-filled with leading zeros, if necessary.

11 Citizen Code A Q Reserved (formerly SIC Code) A R Not used. Set to blanks. SOC Code S S NAICS Code S T Reserved (Formerly FNID/Entry Permit Number) S U Not used. Set to zeros Required. Enter the two-digit country code of which the employee is a citizen. Refer to the chart of valid country codes in Appendix B - Country Codes. Required. Enter the 8-digit Standard Occupational Code describing the employee s occupation. Required. Enter the 6-digit North American Industry Classification System (NAICS) code describing the industry in which the employee works. Wages, Tips and other Compensation CNMI Wages & Salary Income Tax Withheld (NMTIT chapter 7) Wage & Salary tax withheld (chapter 2) Social Security Wages Social Security Tax Withheld Medicare Wages and Tips Medicare Tax Withheld Social Security Tips S V A W S X S Y S Z S AA S AB S AC S AD Required. Enter the total of all wages paid to this employee during the tax year that were subject to Social Security Tax, as reported in Box 3 of Form W-2. Required. Enter all wages earned within the CNMI paid to this employee during the tax year, as reported in Box 16 of Form W-2. Required. Enter the total of all Chapter 7 taxes withheld for this employee during the tax year, as reported in Box 2 of Form W-2. Required. Enter the total of all Chapter 2 taxes withheld for this employee during the tax year, as reported in Box 17 of Form W-2. Required. Enter the total of all wages paid to this employee during the tax year that were subject to Social Security Tax, as reported in Box 3 of Form W-2. Required. Enter the total of all Social Security Tax withheld for the employee, as reported in Box 4 of Form W-2. Required. Enter the total of all wages paid to this employee during the tax year that were subject to Medicare Tax, as reported in Box 5 of Form W-2. Required. Enter the total of all Medicare Tax withheld for the employee, as reported in Box 6 of Form W-2. Required. Enter the total of all Tip income that was subject to Social Security Tax, as reported in Box 7 of Form W-2. Allocated Tips S AE Required. Enter the amount of Allocated Tips, if any, as reported in Box 8 of Form W-2. Reserved (Formerly Advanced EIC Payment) Dependent Care Benefits S AF Not used. Set to zeros S AG Required. Enter the amount associated with Dependent Care Benefits, if any, as reported in Box 10 of Form W-2. Non-Qualified Plans S AH Required. Enter the amount associated with Non- Qualified Plans, if any, as reported in Box 11 of Form W-2.

12 Benefits not in Box 1 Code (entry 1) Benefits not in Box 1 (entry 1) Benefits not in Box 1 Code (entry 2) Benefits not in Box 1 (entry 2) Benefits not in Box 1 Code (entry 3) Benefits not in Box 1 (entry 3) Benefits not in Box 1 Code (entry 4) Benefits not in Box 1 (entry 4) A AI S AJ A AK S AL A AM S AN A AO S AP Required. Box 12 of Form W-2CM provides for the entry of up to four codes and associated amounts for benefits not included in Box 1. This is the first of four entries for Box 12. If a benefit amount is to be reported, enter a code from Table 3 - W-2CM Other Benefit Codes on page 13, and enter the corresponding amount in the field below. Otherwise, enter a blank in this field and zeros in the following field. Required. Enter the amount of Benefits not included in Box 1, if any, if the preceding field is non-blank. Otherwise, enter zeros. Required. This is the second of four entries for Box 12. If a benefit amount is to be reported, enter a code from Table 3 - W-2CM Other Benefit Codes on page 13, and enter the corresponding amount in the field below. Otherwise, enter a blank in this field and zeros in the following field. Required. Enter the amount of Benefits not included in Box 1, if any, for the code in the preceding field if it is non-blank. Otherwise, enter zeros. Required. This is the third of four entries for Box 12. If a benefit amount is to be reported, enter a code from Table 3 - W-2CM Other Benefit Codes on page 13, and enter the corresponding amount in the field below. Otherwise, enter a blank in this field and zeros in the following field. Required. Enter the amount of Benefits not included in Box 1, if any, for the code in the preceding field if it is non-blank. Otherwise, enter zeros. Required. This is the fourth of four entries for Box 12. If a benefit amount is to be reported, enter a code from Table 3 - W-2CM Other Benefit Codes on page 13, and enter the corresponding amount in the field below. Otherwise, enter a blank in this field and zeros in the following field. Required. Enter the amount of Benefits not included in Box 1, if any, for the code in the preceding field if it is non-blank. Otherwise, enter zeros. Other S AQ Required. Enter the amount of Other Benefits. This amount may or may not be included in Box 1. Only use this field if there are no appropriate codes for Box 12. Otherwise, enter zeros. Other Code A AR Not used; enter a blank. Statutory Employee A AS Retirement Plan A AT Third-Party Sick Pay A AU Void A AV Required. If the Statutory Employee checkbox of Box 13 was marked, enter an X in this field. Otherwise, enter a blank. Required. If the Retirement Plan checkbox of Box 13 was marked, enter an X in this field. Otherwise, enter a blank. Required. If the Third-Party Sick Pay checkbox of Box 13 was marked, enter an X in this field. Otherwise, enter a blank. Required. If the Void box was marked, enter an X in this field. Otherwise, enter a blank. Unused Zeros1 A AW Not used. Set to zeros. Unused Zeros2 S AX Not used. Set to zeros.

13 Unused Zeros3 S AY Not used. Set to zeros. Unused Zeros4 S AZ Not used. Set to zeros. Unused Zeros5 A BA Not used. Set to zeros. Unused Zeros6 A BB Not used. Set to zeros. Unused Zeros7 S BC Not used. Set to zeros. End of Record Code A BD Enter ## (Number sign character). Table 3: W-2CM Other Benefit Codes Code Description A Uncollected social security or RRTA tax on tips B Uncollected Medicare tax on tips C Cost of group-term life insurance over $50,000 D Elective deferrals to a section 401(k) cash or deferred arrangement E Elective deferrals under a section 403(b) salary reduction agreement F Elective deferrals under a section 408(k) (6) salary reduction SEP G Elective and non-elective deferrals to a section 457(b) deferred compensation plan H J K L M N P Q R S T V W Y Z AA BB DD EE FF Elective deferrals to a section 501(c)(18)(D) tax-exempt organization plan Non-taxable sick pay 20% excise tax on excess golden parachute payments Substantiated employee business expense reimbursements Uncollected social security or RRTA tax on cost of group-term life insurance coverage over $50,000 (for former employees) Uncollected Medicare tax on cost of group-term life insurance coverage over $50,000 (for former employees) Excludable moving expense reimbursements paid directly to an employee Military employee basic housing, subsistence, and combat zone compensation Employer contributions to a medical savings account (MSA) Employee salary reduction contributions to a section 408(p) SIMPLE Adoption benefits Income from exercise of non-statutory stock option(s) Employer contributions to a Health Savings Account (HSA). Deferrals under a section 409A nonqualified deferred compensation plan. Income under section 409A on a nonqualified deferred compensation plan. Designated Roth contributions under a section 401(k) plan. Designated Roth contributions under a section 403(b) plan. Cost of Employer-sponsored health coverage Designated Roth contributions under a governmental section 457(b) plan Permitted benefits under a qualified small employer health reimbursement arrangement USING SPREADSHEETS The CNMI Division of Revenue & Taxation does not accept spreadsheets for magnetic filings. However, it is possible to prepare magnetic filings using a spreadsheet program, saving the spreadsheets as comma- delimited text files, and submitting these text files as magnetic filings. All data format rules for the OS-3710 as defined on page 7 - Data Format for the OS-3710, and all data format rules for the W-

14 2CM as defined page 9 Data Format for the W-2CM must be followed when preparing these forms for magnetic filing. The following rules apply when using spreadsheets to prepare comma-delimited magnetic filings: One row of the spreadsheet is used for each record. Each column of the spreadsheet corresponds with a field in the record. For your convenience, the spreadsheet columns have been documented in Table 1 - The OS-3710 Record on page 8, and in Table 2 - The W2-CM Record on page 10. The maximum number of characters to appear in a column should never exceed the field length for the field corresponding to that column. The width of the columns does not need to equal the field length. The width of each column should be sufficient to fully display the data in that column. Be aware that some spreadsheet programs will alter numeric displays when column widths are insufficient to display a number. For example, the number may be displayed as 98E+008 or as ******* when the column width is insufficient to display the number. The displayed value is usually what is saved to the comma-delimited file for that field. It is not necessary to use leading zeros when formatting numeric values but decimal points are never used to indicate dollars and cents. Ten dollars may appear as or as 1000 in a numeric field. CREATING THE COMMA-DELIMITED FILE Use the following procedure when you have completed entry of data into your spreadsheet: Delete all rows containing any column headings. Column headings are not accepted as valid data and will result in the rejection of a magnetic filing. Delete all active rows after the data. Spreadsheet programs will sometimes create output records for empty rows following the end of the data when those rows previously held data or were the target of various formatting commands. These rows will result in output records at the end of your commadelimited file containing blank fields; such records are not accepted as valid data and will result in the rejection of a magnetic filing. SAVING FROM EXCEL 2000/XP/2003/OPEN OFFICE From the File pull-down menu, select Save as. On the bottom of the Save As window in Save as type pull- down list, select the option CSV (Comma delimited) (*.csv) and click on the Save button.

15 When following warning window appears, click the Yes button. SAVING FROM EXCEL 2007 Click on the Office Orb and mouse over Save As. From the resulting menu, select Other Formats.

16

17 In the resulting dialogue box, select CSV from the Save as type box.

18 If you have multiple sheets open, the following dialogue box will be displayed. As long as the active sheet contains the data, click OK. If the data is contained in another sheet, switch to that sheet before saving. Click Yes on the following dialogue box:

19 SAVING FROM EXCEL 2010 Click on the file tab and select Save As

20 In the resulting dialogue box, select CSV from the Save as type box.

21 If you have multiple sheets open, the following dialogue box will be displayed. As long as the active sheet contains the data, click OK. If the data is contained in another sheet, switch to that sheet before saving. Click Yes on the following dialogue box:

22 VERIFYING THE COMMA-DELIMITED FILE You may double-check the output file using Windows Notepad or a similar program for viewing text records. The resulting file may be corrected if errors are found; however, do not save the file with Word Wrap enabled since this feature will insert unwanted line breaks into long records when the file is saved, rendering the file unusable. PART 3 - FORMS 1099, W2-G AND 1042-S Overview of 1099 / W-2G /1042-S Filing The Transmitter T Record The Payer A Record The Payee B Record The Payee B Record for Form 1099-DIV The Payee B Record for Form 1099-INT The Payee B Record for Form 1099-MISC The Payee B Record for Form 1099-R The Payee B Record for Form W-2G The Payee B Record for Form 1042-S The Payer End C Record The Transmitter End F Record OVERVIEW OF 1099 / W-2G / 1042-S FILING A single file is constructed of records of various data formats for magnetic filing of Forms 1099 W2- G and Forms 1042-S. The specifications for this file are taken from the IRS Publication 1220, although the CNMI Division of Revenue & Taxation has implemented a subset of the specifications. All records, regardless of format, are a fixed length of 750 positions. This file may span magnetic media, when necessary. The various records that comprise the magnetic filing occur in a specific order, as follows: Record Type Transmitter T Record Payer A Record Payee B Record Payer End C Record Transmitter End F Record Description This record is identified by a T in the first position of the record, and must be the first record in the file. This record cannot occur anywhere else in the file. If it is not the first record, or if more than one Transmitter T Record exists, the file is considered to be in error. This record is identified by an A in the first position of the record, and must precede Payee B Records in the file. This record may only occur after the Transmitter T Record, or after a Payer End C Record. This record is identified by a B in the first position of the record. One of these records must exist for each payee for which you are filing a 1099 or W-2G. The format of this record varies slightly (in positions 544 through 747) depending upon whether you a reporting a payee 1099-DIV, INT, 1099-MISC, 1099-R, W-2G or 1042-S filing. The specific type of Payee B Record is defined in the preceding Payer A Record, so different types of Payee B Records must not be intermixed. This record is identified by a C in the first position of the record. This record follows a set of Payee B Record(s), and indicates the end of a specific type of filings for a specific payer. This record may be followed by either another Payer A Record or a Transmitter End F Record. This record is identified by an F in the first position of the record, and must be the last record in the file.

23 THE TRANSMITTER T RECORD The Transmitter "T" Record identifies the entity transmitting the magnetic media file and contains information that is supplied on the Form 4804, Transmittal of Information Returns Magnetically/Electronically. The Transmitter "T" Record has been created to facilitate current magnetic processing of information returns at the CNMI Division of Revenue & Taxation. The Transmitter "T" Record is the first record on each file and is followed by a Payer "A" Record. A file will be returned to the transmitter for replacement if the Transmitter T Record is not present. For transmitters with multiple diskettes, refer to 3½-Inch Diskette Specifications on page 6. No money or payment amounts are reported in the Transmitter "T" Record. For all fields marked "Required", the transmitter must provide the information described under Description and Remarks. For those fields not marked "Required", a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated field positions and for the indicated length. All records must be a fixed length of 750 positions. The Transmitter "T" Record must be followed by the Payer "A" Record, which must be followed with Payee "B" Records. However, the initial record on each file must be a Transmitter "T" Record. All alpha characters entered in the Transmitter "T" Record may be uppercase or mixed case. Table 4: The Transmitter "T" Record Field Data Type Position Length Dec Description and Remarks Record Type A 1 1 Required. Enter "T." Payment Year S Required. Enter the applicable Tax Year 20xx Prior Year Data A 6 1 Required. Enter P only if reporting prior year data; otherwise enter blank. Transmitter TIN S Transmitter Control Code A 16 5 Not used. Leave blank. Replacement Alpha A 21 2 Not used. Leave blank. Blank 1 A 23 5 Not used. Leave blank. Required. Enter the transmitter s nine digit Tax Identification Number. May be an EIN, SSN or CNMI TIN. Test File A 28 1 Enter "T" if this is a test file; otherwise, enter a blank. Foreign Entity A 29 1 Transmitter Name A Transmitter Name Continued A Company Name A Company Name Continued A Company Address A Enter a "1" (one) if the transmitter is a foreign entity. If the transmitter is not a foreign entity, enter a blank. Required. Enter the name of the transmitter in the manner in which it is used in normal business. Left justify and fill unused positions with blanks. Enter any additional information that may be part of the name. Left justify information and fill unused positions with blanks. Required. Enter the name of the company to appear with the address where correspondence should be sent or media should be returned due to processing problems. Optional. Enter any additional information that may be part of the name of the company where correspondence should be sent or media should be returned due to processing problems. Required. Enter the mailing address where correspondence should be sent or media should be returned in the event Rev & Tax is unable to process.

24 Company City A Company State A Company Zip Code A Blank 2 A Not used. Leave blank. Payee Record Count S Contact Name A Contact Phone Number A Magnetic Tape File Indicator A Not used. Leave blank. Replacement File Name A Not used. Leave blank. Vendor Indicator A Vendor Name A Required. Enter the city, town, or post office where correspondence should be sent or media should be returned in the event Rev & Tax is unable to process. Required. Enter the valid U. S. Postal Service state abbreviation code. Refer to the chart of valid state abbreviation codes in Appendix A - State Abbreviation Codes. Required. Enter the valid nine-digit ZIP Code assigned by the U. S. Postal Service. If only the first five digits are known, left justify information and fill unused positions with blanks Required. Enter the total number of Payee "B" Records reported in the file. Right justify information and fill unused positions with zeros. Required. Enter the name of the person to be contacted if Rev & Tax encounters problems with the file or transmission. Required. Enter the telephone number of the person to contact regarding magnetic/electronic files. Omit hyphens. If no extension is available, left justify information and fill unused positions with blanks. Required. Enter the appropriate code to indicate if your software was provided by a vendor or produced in-house: V if your software was purchased from a vendor or other outside source, or I if your software was produced inhouse. Optional. Enter the name of the company from whom you purchased your software. Vendor Address A Optional. Enter the mailing address. Vendor City A Optional. Enter the city, town, or post office. Vendor State A Vendor Zip A Software Contact Name A Software Contact Phone A Software Contact A Blank 3 A Not used. Leave blank. Record CR/LF A Optional. Enter the valid U.S. Postal Service state abbreviation. Refer to the chart of valid state abbreviation codes in Appendix A - State Abbreviation Codes. Optional. Enter the valid nine-digit ZIP Code assigned by the U. S. Postal Service. If only the first five digits are known, left justify information and fill unused positions with blanks Required. Enter the name of the person who can be contacted concerning any software questions. Required. Enter the telephone number of the person to contact concerning software questions. Omit hyphens. Left-justify information and fill unused positions with blanks. Required. Enter the address of the person to contact concerning software questions. Enter blanks or carriage return/line feed (CR/LF) characters. The Payer A Record The Payer "A" Record identifies the institution or person making payments. The payer will be held responsible for the completeness, accuracy, and timely submission of magnetic files. The Payer "A" Record also provides parameters for the succeeding Payee "B" Records. Revenue & Taxation computer programs rely on the absolute relationship between the parameters and data fields in the "A" Record and the data fields in the Payee "B" Records to which they apply. The number of Payer "A" Records depends on the number of payers and the different types of returns being reported. The payment amounts for one payer and for one type of return should be consolidated under one Payer "A" Record if submitted on the same file.

25 Do not submit separate Payer "A" Records for each payment amount being reported. For example, if a payer is filing Form 1099-DIV to report Amount Codes 1, 2, and 3, all three amount codes should be reported under one Payer "A" Record, not three separate Payer "A" Records. For Payee "B" Records that do not contain payment amounts for all three amount codes, enter zeros for those which have no payment to be reported. The second record on the file must be a Payer "A" Record. A transmitter may include Payee "B" Records for more than one payer on a tape or diskette. However, each group of Payee "B" Records must be preceded by a Payer "A" Record and followed by a Payer End "C" Record. A single tape or diskette may contain different types of returns but the types of returns must not be intermingled. A separate Payer "A" Record is required for each payer and each type of return being reported. All records must be a fixed length of 750 positions. All alpha characters entered in the Payer "A" Record may be uppercase or mixed case. For all fields marked Required, the transmitter must provide the information described under Description and Remarks. For those fields not marked Required, a transmitter must allow for the field, but may be instructed to enter blanks or zeros in the indicated media position(s) and for the indicated length. Table 5: The Payer "A" Record Field Data Type Position Length Dec Description and remarks Record Type A 1 1 Required. Enter "A." Payment Year S Required. Enter the applicable Tax Year 20xx Blank 1 A 6 6 Not used. Leave blank. Payer TIN S Name Control A 21 4 Last Filing A 25 1 Required. Must be the valid nine-digit Taxpayer Identification Number assigned to the payer. Do not enter blanks, hyphens, or alpha characters. All zeros, all ones, all twos, etc., will have the effect of an incorrect TIN. Use the first four significant characters of the business name. Disregard the word the when it is the first word of the name, unless there are only two words in the name. A dash (-) and an ampersand (&) are the only acceptable special characters. Enter a "1" (one) if this is the last year the payer will file; otherwise, enter blank. Use this indicator if the payer will not be filing information returns under this payer name and TIN in the future, either magnetically, electronically, or on paper.

26 This field is used to identify the type of Taxpayer Identification Number (TIN). Enter the appropriate code from the following table: Type of TIN A 26 1 Type of Return A 27 1 Code TIN Type 1 EIN A business, organization, sole proprietor, or other entity. 4 QI-EIN Qualified Intermediary entity 2 SSN An individual, including a sole proprietor or 2 ITIN An individual required to have a taxpayer identification number, but who is not eligible to obtain an SSN, or 2 ATIN An adopted individual prior to the assignment of a social security number. Blank N/A If the type of TIN cannot be determined, enter a blank. Required. Enter the appropriate code as follows to indicate the type of Payee B Records that will follow this Payer A Record: Type of Return Code 1099-DIV-1, 1099-INT- 6, 1099-MISC-A, 1099-R-9, W-2G-W, 1042-S-C Required. Enter the appropriate amount codes for the type of return being reported. See Figure1 - Amount Codes by Filing on page 29 for a complete list of Amount Codes. For each amount code entered in this field, a corresponding payment amount must appear in the Payee "B" Record. For example, if position 27 of the Payer "A" Record is "A" (for 1099-MISC) and positions 28 through39 are "1247ACoooooo" ("o" denotes a blank), this indicates the payer is reporting any or all six payment amounts (1247AC) in all of the following "B" Records, as follows: Amount Codes A The first payment amount field is Rents The second payment amount field is Royalties The third payment amount field zero The fourth payment amount field is Federal income tax withheld The fifth and sixth payment amount fields are zero The seventh payment amount field is Non- employee Compensation The eighth and ninth payment amount fields are zero The tenth payment amount field is Foreign tax paid The eleventh payment amount field is zero The twelfth payment amount field is Gross proceeds paid to an attorney In connection with legal services. Blank 2 A 40 8 Not used. Leave blank. Original File A 48 1 Replacement File A 49 1 Required for original files only. Enter "1" (one) if Indicator the information is original data. Otherwise, enter a blank. Required for replacement files only. Enter 1 (one) if the purpose of this file is to replace a file that Rev & Tax returned to the transmitter due to errors encountered in processing. Otherwise, enter a blank.

27 Correction File A 50 1 Required for correction files only. Enter 1 (one) if the purpose of this file is to correct information which was previously submitted to Rev & Tax, was processed, but contained erroneous information. Do not submit original information as corrections. Any filing that was inadvertently omitted from a file must be submitted as original. Otherwise, enter a blank. Blank 3 A 51 1 Not used. Leave blank. Foreign Entity A st Payer Name A nd Payer Name A Transfer Agent A Payer Address A Payer City A Payer State A Payer Zip Code A Enter a 1 (one) if the payer is a foreign entity and income is paid by the foreign entity to a U. S. resident. If the payer is not a foreign entity, enter a blank. Required. Enter the name of the payer whose TIN appears on the Payer A Record. Any extraneous information must be deleted. Left-justify information, and fill unused positions with blanks. (Filers should not enter a transfer agent s name in this field. Any transfer agent s name should appear in the Second Payer Name Line Field.) If the Transfer (or Paying) Agent Indicator (position Payer Name 133) contains a 1 (one), this field must contain the Line name of the transfer (or paying) agent. If the indicator contains a 0 (zero), this field may contain either a continuation of the First Payer Name Line or blanks. Left-justify information and fill unused positions with blanks. Required. Identifies the entity in the Second Payer Agent Name Line Field. Enter 1 (one) if the entity in the Second Payer Name Line Field is the transfer (or paying) agent. Otherwise, enter 0 (zero). Required. If the Transfer Agent Indicator in position 133 is a 1 (one), enter the shipping address of the transfer (or paying) agent. Otherwise, enter the actual shipping address of the payer. The street address should include number, street, apartment, or suite number (or P. O. Box if mail is not delivered to street address). Left-justify information, and fill unused positions with blanks. Required. If the Transfer Agent Indicator in position 133 is a 1 (one), enter the city, town, or post office of the transfer agent. Otherwise, enter the city, town, or post office of the payer. Left-justify information, and fill unused positions with blanks. Do not enter state and ZIP Code information in this field. Required. Enter the valid U. S. Postal Service state abbreviation code. Refer to the chart of valid state abbreviation codes in Appendix A - State Abbreviation Codes. Required. Enter the valid nine-digit ZIP Code assigned by the U. S. Postal Service. If only the first five digits are known, left justify information and fill unused positions with blanks. For foreign countries, alpha characters are acceptable as long as the filer has entered a 1 (one) in the Foreign Entity Indicator, located in Field Position 52 of the Payer A Record. Payer Phone Number A Enter the payer s phone number and extension. Additional address line A Payer State Tax ID S Used for Payer additional address line. Leave blanks if none. Enter the State Tax ID where withholdings are made. Leave blanks if none. Payer Name of State A Enter the Name of the US state. Leave blanks if none. Blank 4 A Not used. Leave blank. Record CR/LF A Enter blanks or carriage return/line feed (CR/LF) characters.