Form 1096
Annual Summary and Transmittal of U.S. Information Returns
Annual Summary and Transmittal of U.S. Information Returns
Form 1096, “Annual Summary and Transmittal of U.S. Information Returns,” is a tax form used in the United States. It serves as a summary and transmittal form for various other information returns that businesses and other entities might provide to the Internal Revenue Service (IRS). If you’re sending paper copies of 1099 forms to the SSA, the 1096 must accompany them. It acts as the official transmittal form, summarizing the aggregate data from all submitted 1099s. The form 1096 is not required for electronically filed 1099s.
View More About Form 1096 on IRS.gov
Quick Links
- Why do you need to file a 1096?
- Who Needs to File a 1096?
- Are there any exemptions to filing a 1096?
- What is the deadline for filing a 1096?
- What is required to file a 1096?
- What are the penalties for 1096?
- Do you need to e-file a 1096?
- Is state filing required for the 1096?
- What elements make up a 1096 form?
- Can you correct a 1096?
Why do you need to file a 1096?
Form 1096, “Annual Summary and Transmittal of U.S. Information Returns,” serves a specific purpose in the tax reporting process. Here’s why you need to file a Form 1096:
Transmittal Form
- Form 1096 acts as a cover sheet for paper submissions of various information returns to the Internal Revenue Service (IRS). It summarizes the attached individual forms, providing the IRS with an overview of the enclosed data.
Aggregate Data
- It provides consolidated information, including the total number of attached forms, the total federal income tax withheld, and the total amounts being reported. This aggregate data is essential for the IRS’s record-keeping and verification processes.
Identification
- Form 1096 identifies the filer, supplying the IRS with the filer’s name, address, taxpayer identification number, and other contact information. This ensures the information returns are associated with the correct entity.
Verification
- The form helps the IRS verify that they have received all the expected information returns from a filer, as the 1096 indicates how many individual forms are being submitted.
Clarification
- If there are any issues or discrepancies with the submitted information returns, having the Form 1096 can assist the IRS in reaching out to the filer for clarification or correction.
Paper Filing Requirement
- If you’re submitting paper copies of information returns to the IRS, Form 1096 is required to accompany those returns. Note that if you’re filing electronically, Form 1096 is not required, as electronic systems have their own summary mechanisms.
Multiple Forms
- If you’re submitting different types of information returns (e.g., both 1099-MISC and 1099-INT), you’ll need a separate 1096 for each type, ensuring that each set of forms has its corresponding summary.
In essence, Form 1096 is an organizational tool that aids in the efficient processing and management of paper-filed information returns by the IRS. It’s crucial to ensure accurate completion and timely submission of Form 1096 when sending information returns to avoid potential penalties or processing delays.
Who needs to file a 1096?
Form 1096, “Annual Summary and Transmittal of U.S. Information Returns,” is used by entities that are submitting paper copies of certain information returns to the IRS. Here’s a breakdown of who needs to file a Form 1096:
Entities Submitting Paper Forms
- Any entity (which could be a business, organization, or individual) that is required to submit paper copies of certain information returns to the IRS should accompany those submissions with Form 1096. Form 1096 acts as a cover sheet that summarizes the attached individual forms.
Types of Forms Accompanied by 1096
- Form 1096 is used to transmit various information returns, including but not limited to:
- Forms in the 1099 series (like 1099-MISC, 1099-INT, 1099-DIV, and so on)
- Form 1098 (Mortgage Interest Statement)
- Form 3921 (Exercise of an Incentive Stock Option under Section 422(b))
Paper Filing Thresholds
- Entities that file 10 or more of a specific type of information return are required by the IRS to file electronically. If you’re filing electronically, you do NOT need to use Form 1096 since it’s specifically for paper submissions. If you’re filing fewer than 10 forms, you can choose to file on paper and would then use Form 1096 as the transmittal form. However, these thresholds and requirements can change, so it’s essential to refer to current IRS guidelines.
Separate Forms for Each Type
- If you’re submitting multiple types of forms (for instance, both 1099-MISC and 1099-INT), you must use a separate Form 1096 for each type of form you’re transmitting.
Not for Personal Use
- Individuals who receive forms like 1099s for personal income do not need to file Form 1096. Form 1096 is for the entities issuing these forms to recipients and the IRS.
In essence, if you are an entity required to submit information returns to the IRS and you’re doing so via paper, you’ll typically need to include a Form 1096 as a summary and transmittal document.
Are there any exemptions to filing a 1096?
Form 1096 serves as a summary and transmittal document for paper-filed information returns sent to the IRS. However, there are certain scenarios where you don’t need to submit a Form 1096:
Electronic Filing
- The primary exemption is for entities that file their information returns electronically. If you are submitting forms such as 1099s, 1098s, etc., electronically to the IRS, you do not need to use Form 1096. Electronic filing systems have their own mechanisms for summarizing and transmitting the data.
Below the Threshold
- Entities that file fewer than 250 information returns for a calendar year can choose to file on paper or electronically. However, if you opt for paper filing, then a Form 1096 is required. If you file electronically, even if below the 250-form threshold, Form 1096 is not needed.
Individual Recipients
- Individuals who receive information returns like a Form 1099-MISC for services they’ve rendered don’t file Form 1096. Form 1096 is used by entities that issue and send these forms, not by the recipients of the forms.
Non-Applicable Forms
- Form 1096 is used for specific information returns like the 1099 series, 1098, 3921, 3922, 5498, and others. If your submission to the IRS doesn’t include these types of forms, then Form 1096 is not applicable.
What is the deadline for filing a 1096?
The deadline for filing Form 1096, “Transmittal of Wage and Tax Statements,” coincides with the deadline for filing the individual 1099 Forms with the IRS. The typical deadline is: January 31 of the year following the tax year being reported. However, if any of these dates fall on a weekend or a holiday, the deadline may be extended to the next business day. Additionally, if you discover an error after the initial filing, there are separate deadlines for corrected forms.
Remember, missing these deadlines can result in penalties, so it’s crucial to stay informed and act timely.
What is required to file a 1096?
Form 1096, “Annual Summary and Transmittal of U.S. Information Returns,” acts as a cover sheet when you’re submitting paper copies of certain information returns to the IRS. When completing Form 1096, several boxes need to be filled out. Here’s a breakdown of the main boxes and their purposes:
Information about the Payer
- Payer’s Name and Address
- Provide your legal business name and mailing address.
- Payer’s Taxpayer Identification Number (TIN)
- This could be your Employer Identification Number (EIN) or your Social Security Number (SSN), depending on your business structure. If you’re a sole proprietor, you might use your SSN; if you’re a business entity, you’d use your EIN.
- Payer’s Phone Number
- Include a phone number where the payer can be reached.
Form specific information
- Box 3 – Total Number of forms
- Box 4 – Federal income tax withheld
- Box 5 – Total amount reported with the Form 1096
- Box 6 – Form Type
What are the penalties for 1096?
Please see the penalties section for details.
Do you need to e-file a 1096?
Please see the e-file section for details.
Is state filing required for the 1096?
Currently, the 1096 form does not have a place to enter state information.
What elements make up a 1096 form?
The 1096 contains several boxes, each designed to report specific types of income or information. The boxes are the sum of all the values from the W-2 forms. Here is a breakdown of the boxes on the 1096:
- Box 1 – Employer identification number
- Enter your TIN in either box 1 or 2, not both. Sole proprietors and all others must enter their EIN in box 1. Individuals not in a trade or business must enter their SSN in box 2.
- Box 2 – Social security number
- Enter your TIN in either box 1 or 2, not both. Sole proprietors and all others must enter their EIN in box 1. Individuals not in a trade or business must enter their SSN in box 2.
- Box 3 – Total number of forms
- Enter the total count of the forms submitted
- Box 4 – Federal income tax withheld
- Enter the total Federal income tax withheld for the forms submitted
- Box 5 – Total amount reported with this Form 1096
- Enter the total of the amounts from the specific boxes identified for each form.
- Form W-2G Box 1
- Form 1098 Boxes 1 and 6
- Form 1098-C Box 4c
- Form 1099-B Boxes 1d and 13
- Form 1099-C Box 2 Form
- 1099-DIV Boxes 1a, 2a, 3, 9, 10, and 12
- Form 1099-INT Boxes 1, 3, 8, 10, 11, and 13 Form
- 1099-K Box 1a
- Form 1099-MISC Boxes 1, 2, 3, 5, 6, 8, 9, 10, 11, and 14
- Form 1099-NEC Box 1
- Form 1099-OID Boxes 1, 2, 5, 6, and 8
- Form 1099-R Box 1
- Form 1099-S Box 2
- Form 3921 Boxes 3 and 4
- Box 6a – Form Type
- Check the box that applies to you. Check only one box. If you have more than one type of 1099, send each type with a separate Form 1096.
Remember, not all boxes will be filled out on every 1096 form. Only the relevant boxes for the specific payments made will have amounts or indicators.
Can you correct a 1096?
If you discover an error on your submitted Form 1096 after sending it to the IRS with associated information returns (e.g., 1099 series), you cannot technically “correct” the Form 1096 in the same way that you might correct other forms with a designated “corrected” box or version. Instead, you’d focus on correcting the specific information returns that were incorrect.
Here’s what you should do if you find an error:
Correct the Specific Information Returns
- If you find errors in the individual information returns you submitted, you should file corrected returns. Many information returns have a “corrected” box that can be checked when re-submitting the form.
Resubmit with a New 1096
- If you’re sending corrected information returns on paper, accompany them with a new Form 1096. On this Form 1096, you’d provide the updated aggregate amounts and counts related to the corrected returns.