What IRS Form 1096 (2015) Is For
IRS Form 1096 (2015) is the annual summary and transmittal form used to accompany paper information returns sent to the Internal Revenue Service. It serves as a cover sheet that summarizes all paper forms, such as Form 1099, Form 1098, and Form W-2G, which report payments or non-employee income. The form details the total number of forms, total federal income tax withheld, and overall dollar amounts reported. It is primarily used by small business owners, sole proprietors, and other filers who report payments to independent contractors, investors, or recipients of miscellaneous income on paper rather than electronically.
When You’d Use IRS Form 1096 (2015)
You are required to file IRS Form 1096 (2015) when submitting paper forms that report payments made to non-employees or other taxable recipients.
- Paper Filing: You must use Form 1096 to transmit paper forms such as Form 1099-MISC, Form 1099-INT, or Form 1098 that report payments to independent contractors, interest recipients, or other persons related to your business.
- Late or Amended Filing: If you missed the due date, file Form 1096 as soon as possible. Filing promptly helps reduce IRS penalties for late submission.
- Corrected Returns: You must submit a new Form 1096 when you discover errors in a previously filed tax form or total amount; corrected forms should include updated information for accurate reporting.
- When Filing Electronically: You do not need to file this form if you are submitting information returns through the IRS FIRE System; e-filing automatically includes transmission details without requiring Form 1096.
If you need help with other IRS forms related to your business, visit our IRS Form Help Center.
Key Rules or Details for the 2015 Tax Year
When filing IRS Form 1096 (2015), several key rules applied for the 2015 tax year that ensured proper reporting and compliance with the Internal Revenue Service.
- Electronic Filing Threshold: You were required to file electronically if you submitted 250 or more forms of the same type, such as 250 or more Form 1099-MISC; paper filing was not permitted in such cases.
- Separate Form Required: You were required to prepare a separate Form 1096 for each category of information return. Combining multiple form types, such as 1099-MISC and 1099-INT, under one transmittal was not allowed.
- Matching Information: You must ensure that your Employer Identification Number or Social Security Number matches precisely with the information listed on all corresponding information returns to prevent IRS mismatches.
- Official Red-Ink Forms: You were required to use only the original red-ink printed versions of Form 1096 provided by the IRS or approved suppliers; photocopies were not scannable and would be rejected.
- Correct Mailing Address: You must send your paper forms and Form 1096 to the proper IRS Service Center, as specified by your business location or the address listed for your principal business contact.
Step-by-Step (High Level)
The filing process for IRS Form 1096 (2015) followed a specific, step-by-step method to ensure that all information returns were accurately reported.
- Gather All the Forms: You should collect all relevant 1099 forms, Form 1098, or other tax forms used to report payments or non-employee income before preparing your summary.
- Group by Type: You must organize the forms by type since each category, such as 1099-INT or 1099-MISC, requires its own accompanying Form 1096 for submission.
- Enter Business Information: You should fill in your business name, mailing address, and Employer Identification Number or Social Security Number if you are a sole proprietor.
- Record Totals: Please enter the total number of forms being submitted and the total amount reported for that group, including any federal income tax withheld.
- Check the Correct Box: You must indicate the correct type of form by marking the appropriate box on Form 1096, so the IRS can process the submission correctly.
- Sign and Submit: You are required to sign and date the form under penalty of perjury, then mail it to the Internal Revenue Service along with the corresponding paper forms using the correct mailing address.
If you are facing IRS penalties for late or incorrect filings, review your options for IRS penalty abatement.
Common Mistakes and How to Avoid Them
Avoiding common mistakes when filing IRS Form 1096 (2015) helps ensure accuracy and prevents unnecessary IRS notices or penalties.
- Mismatched Totals: Always verify that the totals on Form 1096 match the totals across all the forms you are transmitting; use accounting software or a calculator to confirm the correct total number and total amount.
- Combining Different Form Types: Never combine multiple form types, such as 1099-MISC and 1099-INT, under one transmittal. Prepare a separate form for each category to ensure proper processing.
- Incorrect TIN or EIN: Double-check that your Employer Identification Number or Social Security Number exactly matches the information on your other tax forms to avoid mismatches in IRS records.
- Filing When Not Required: Do not file paper forms if you already submitted your information returns electronically through the FIRE System; e-filing automatically covers the transmittal process.
- Using Photocopies: Only use the official red-ink printed version of Form 1096 from the IRS website or authorized suppliers; photocopies and digital reproductions are not scannable.
- Missing Signature: Always sign and date Form 1096 before mailing it; unsigned forms are considered incomplete and may cause delays in processing.
You may qualify for IRS penalty abatement if you face penalties due to late or incorrect filings.
What Happens After You File IRS Form 1096 (2015)
After you file IRS Form 1096 (2015) and the corresponding information returns, the Internal Revenue Service processes your paper forms through an optical character recognition system. The IRS verifies that the totals reported match those from recipients’ tax returns, ensuring that all payments, non-employee compensation, and miscellaneous income are correctly reported. If discrepancies or errors occur, the IRS may send a notice to your business address or contact person for clarification or correction.
It is recommended to keep copies of all submitted forms for at least three years in case questions arise regarding tax returns, incentive stock options, or employee stock purchase plan transactions. If you are unable to pay your tax due after filing Form 1096, explore your IRS payment plan options.
FAQs
Do I need Form 1096 if I e-file?
No, if you file electronically using the IRS FIRE System, the system automatically includes your transmission, and you do not need to send a paper Form 1096.
Can I send one Form 1096 for all forms?
No, each information return type, such as Form 1099 or Form 1098, must have its own separate transmittal form to ensure accurate IRS processing.
What is the due date for filing Form 1096?
For the 2015 tax year, the due date was February 29, 2016, for paper filing, or March 31, 2016, if you filed electronically through the IRS FIRE System.
What if I find an error after filing?
You must file corrected information returns with a new Form 1096 as soon as possible to ensure your totals and tax data are correctly updated.
Who can sign Form 1096?
An authorized person, such as a business owner, accountant, or tax professional, may sign the form on behalf of the filer, provided they have proper authorization.
