Upon request, Standard Solutions will help with the setup and processing of your Standard Conveyancer data to satisfy IRS magnetic filing requirements. This procedure allows you to send your 1099S data to the IRS on a floppy disk, without having to hand-type IRS copies.

If your firm distributed 250 or more seller 1099S forms, you are required to file them magnetically or electronically. If your firm distributed fewer than 250 seller 1099S forms, you have the option of filing magnetically or with paper forms. If you have only a few seller 1099S forms, a Standard Conveyancer report can be produced that prints all of the information you need to hand-type IRS forms, eliminating the need to sort through all your closing files.

How does magnetic filing work? A technician will download your Standard Conveyancer data remotely from your office to ours. Using an IRS-approved software package, we create and deliver Error and Master Reports to you for review. It is important that your data be complete and accurate before it is downloaded to our office. Entering seller tax ID numbers and forwarding addresses (or making sure sellers are marked as exempt from filing at closing) will help ensure your data is complete.

Upon receipt of the completed authorization and payment, Standard Solutions will prepare your IRS-ready materials. The completed disk, label and forms package is returned to your office, ready for delivery!

In order to file magnetically, you must have an IRS-assigned transmittal number. If you don't have a number and you would like to file magnetically, you need to complete and file with the IRS Form 4419 (Application for Filing Information Returns Magnetically). We can provide you with a copy of this form. If you filed magnetically in previous years, you may continue to use the same transmittal number.

Due to the critical nature of the task and IRS-imposed deadlines, it is necessary for your firm to act as quickly as possible to ensure a timely and compliant magnetic filing. Year-End Processing services are available to all Standard Conveyancer clients with a current Support Plan and clear account balance (fees must be paid in full through December 31, 2003, leaving a zero account balance).

YEP Services Available:

• Magnetic Filing ~ Filing 1099S forms with the IRS via diskette. Diskette & forms must be postmarked to the IRS by March 1, 2004.
  FIRE (Filing Information Returns Electronically) ~ Filing 1099S forms with the IRS via a web-like interface or a text interface using HyperTerminal.
  
  
• Electronic test files from November 1 to February 15. Final Data must be transmitted to the IRS by March 31, 2004.
  
  
• Recipient Forms ~ In addition to filing the 1099S forms Magnetically or Electronically Standard Solutions can help with producing the 1099S forms for the seller. Recipient Forms must be postmarked to all sellers by February 2, 2004. (This service is only available if Magnetic or FIRE service is also being provided).
  

Standard's Year-end Processing ("YEP") service is limited. Deadlines for signup and pricing are as follows:

• The YEP Discounted Fee is $350.00 for clients who sign up by December 1, 2003.
• The YEP Fee is $500.00 for clients who sign up after December 1, 2003.
• The YEP Service will not be available for clients who do not sign up by December 19, 2003.

What is included in the initial YEP fee:

• Includes two hours of services performed by a Standard Solutions technician. Our technicians will make every effort to contact you; however it is your responsibility to meet the IRS-imposed deadlines. Please understand that time spent on such follow up does count against your two hour allotment. Follow up calls are the reason in most cases where the service time allotment is exceeded and additional expenses are incurred. Timely response to our technicians' calls and complete and correct data will help to keep your costs to a minimum. Includes telephone calls and modem time (excluding line charges), review of data with client, assistance with edits, printing of reports, data corrections, zip code entries, etc...
  
• Includes one Error Report and one Master Report for your review and approval before the diskette is created.
  
• For magnetic filing:
  Includes a 3.5" floppy disk containing your 1099S magnetic filing information.
  Includes IRS Forms: 5064-disk label, 4801 mailing label, and 4802/4804 transmittal forms.
  
• For electronic filing:
  Includes a .txt file to test electronic files with the IRS. Testing is encouraged.
  Includes a .txt file for electronic filing.
  Instructions and Support for the connection and transmissions (testing and final) with the IRS are not provided through Standard Solutions, Inc. You must contact the IRS directly, 304-263-8700 extn 3.
  

YEP additional services available, and applicable fees:

• Services will be provided at $65.00 per hour at thirty-minute increments for any time required in addition to the initial two hours.
• If additional disks, labels, forms (these come as a set) or reports are necessary for corrections, or requested for your records, they will be provided for $50.00, plus any applicable hourly fees.
• The hourly service fee of $65.00 increases to $95.00 per hour for services rendered after the March 1, 2004 IRS-imposed deadline.
• An additional fee will be charged for each Extension of Time filed with the IRS by your office.
  $100.00 for the first Extension
  $150.00 for the second Extension
  $200.00 for the third Extension and increasing $50.00 each thereafter.
• Courier, or outside delivery expenses, including UPS, FedEx, Airborne and others are not included.
• Seller 1099S forms are $1.50 per form, if process is started before January 10, 2004.
  If started later, they are $2.00 each.
  Corrected Seller 1099S forms are $3.00 per form.
  Mailing labels for the Seller 1099S forms are available for $10.00 per page, and include 20 labels per page.
• In the case of a firm with separate SC installations at multiple locations, the Setup and Processing Fee applies to each office regardless of the number of diskettes filed. Separate setup, processing and reports are required for each separate client office. There are no additional fees for offices that connect to a remote SC server.
• In the case of a firm merging with another mid-year, the Setup and Processing Fee applies to each office prior to and after the merger. If the merged firm is filing under a new Federal Identification Number, it may be necessary to file for a new TCC #.