What Is IRS Form 1056 for Substitute Forms?

Using substitute, privately printed versions of Form W-2, Wage and Tax Statement, or Form W-3, Transmittal of Wage and Tax Statements, requires authorization from the Social Security Administration (SSA). Businesses often use these customized forms because they are compatible with specific payroll software. Before they can be sent to employees or filed, they must be approved to ensure they are scannable and contain all required information in the correct layout.

When Is Approval Required for Substitute Forms?

The requirement for approval hinges on whether a form is an exact replica of the official IRS version or a “substitute” form. The IRS provides official, scannable red-ink versions of Form W-2 (Copy A) and Form W-3 that must be filed with the SSA. Any version that deviates from the official print is a substitute form and requires approval. This includes forms generated by accounting software that may not perfectly align with the government’s layout, or consolidated statements that combine federal wage data with state and local tax information.

The definitive guide for these requirements is IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3. This publication provides the technical specifications that a substitute form must meet to be considered acceptable for filing.

If a business uses black-and-white, laser-generated versions of Copy A of Form W-2 or Form W-3, these always require prior approval from the SSA before use. However, substitute red-ink forms that are exact replicas of the official IRS versions may be privately printed and used without prior approval. Any employer not using the official red-ink government forms must evaluate their documents against the standards in Publication 1141.

Preparing Your Submission Package

The process for gaining approval does not involve a specific application form. Instead, applicants must prepare a submission package with physical samples of their proposed forms. The package should include the business name, Employer Identification Number (EIN), mailing address, and the name and contact information for a person who can answer questions.

The submission requires a physical, printed sample of each form for which approval is sought. Applicants must submit one set of blank forms and one set printed with dummy data. These must be exact proofs or high-quality prints from the system that will be used to generate the final forms. The samples must demonstrate compliance with the technical guidelines in IRS Publication 1141, which include details on paper weight, size, and ink.

The Submission and Approval Process

Once the sample documents are prepared, the entire package is mailed to the Social Security Administration for testing and approval. The package should be sent to the SSA’s Wilkes-Barre Direct Operations Center. For U.S. Postal Service, use the address Social Security Administration, Direct Operations Center, Wilkes-Barre, PA 18769-0001. For private delivery services like FedEx or UPS, use Social Security Administration, Direct Operations Center, Attn: W-2 Process, 1150 E. Mountain Drive, Wilkes-Barre, PA 18702-7997.

Upon receipt, the SSA reviews the sample forms to ensure they conform to all technical specifications outlined in Publication 1141, checking for scannability and proper data alignment. This review can take several weeks, so applicants are advised to submit their requests well in advance of when they need to issue the forms.

If the substitute forms meet all requirements, the SSA will send an official approval letter to the applicant. This letter contains a unique approval number assigned by the agency, which must be printed on the bottom of the approved substitute Form W-3 and, in some cases, on the Form W-2 copies, as specified in the approval letter and Publication 1141.