IRS Pub 1167: Rules for Substitute Tax Forms

IRS Publication 1167, “General Rules and Specifications for Substitute Forms and Schedules,” is the official guide for creating privately designed and printed versions of IRS tax forms. Its primary audience is not the average taxpayer but rather tax software developers, commercial printers, and large businesses that generate their own forms for internal use or for their clients. The publication’s purpose is to ensure that these substitute forms are legible, consistent, and can be processed efficiently by IRS systems.

General Specifications for Substitute Forms

The paper used for substitute forms must be a white, 20-pound bond, and the standard size is 8.5 by 11 inches. All printing must be done with high-quality black ink to produce sharp, legible text that does not smudge, as this can interfere with scanning technology.

Layout and formatting are strictly controlled to mirror the official IRS documents. The substitute form must be a near-perfect replica of the government’s version, meaning all lines, boxes, and text must appear in the same locations. Each substitute form must display the Office of Management and Budget (OMB) approval number and the correct tax year, just as they appear on the official form.

Every data field from the official form must be present on the substitute version, and no fields can be omitted. The rules strictly prohibit the addition of unapproved text, data fields, or branding, such as company logos. These additions could confuse taxpayers or interfere with the placement of official IRS processing stamps and labels.

The IRS Approval Process for Forms

While exact replicas of official forms generally do not require prior approval, any form that deviates in layout or is a specialized form must be approved by the IRS before it can be used. To seek approval, a developer or printer must assemble a formal submission package. This package typically includes a cover letter that details the forms being submitted and lists any deviations from the official versions. The package must also contain two physical copies, or proofs, of each substitute form being proposed.

After submission, the IRS reviews the forms, a process that can take several weeks. If the forms meet all specifications, the IRS issues a formal approval letter, which includes a unique approval number that must often be printed on the bottom margin of the approved substitute form.

Special Instructions for Certain Forms

Beyond the general rules, Publication 1167 clarifies that many forms have unique requirements. These special instructions often relate to the unique processing needs of certain documents.

A prominent example involves information returns, such as the Form 1099 series and Form W-2. Copy A of these forms, which is sent to the government for processing, must be printed using a specific shade of scannable red ink. This “dropout ink” is designed to be invisible to the IRS’s scanning equipment, which only captures the data entered onto the form. Using black ink or another shade of red for Copy A will result in a form that cannot be scanned, leading to a penalty.

Certain employment tax forms, like Form 941, Employer’s QUARTERLY Federal Tax Return, also have distinct requirements. These forms may require the inclusion of a scannable 2-D barcode that encapsulates the data entered on the return. This barcode allows the IRS to process the form’s data automatically, significantly speeding up intake and reducing the chance of manual entry errors. Failure to include a required barcode can slow processing and may lead to correspondence from the IRS.