What the Form Is For

Form 1096 is essentially a "cover sheet" that accompanies paper copies of information returns you send to the IRS. Think of it as a transmittal slip—like a packing list that summarizes what's inside the package.

When your business pays people who aren't employees (contractors, freelancers, vendors), or when you make certain other payments like interest, dividends, or royalties, you need to report these payments to the IRS using various forms in the 1099 series (like 1099-MISC, 1099-INT, 1099-DIV), along with other related forms such as 1098, 1097, 5498, 3921, 3922, and W-2G.

Form 1096 serves as the summary document that tells the IRS: "Here's what I'm sending you." It includes totals of all the forms you're submitting, total federal income tax withheld (if any), and identifies you as the filer. The form essentially acts as quality control, helping the IRS verify they received everything you intended to send. IRS.gov

Important note: You only need Form 1096 if you're filing paper returns. If you file electronically, you don't submit Form 1096 at all.

When You'd Use It (Including Late and Amended Returns)

Regular Filing: You'll use Form 1096 for the 2016 tax year when transmitting paper information returns to the IRS. The standard filing deadlines are:

• February 28, 2017 for most forms (1097, 1098, 1099, 3921, 3922, W-2G)
• January 31, 2017 specifically for Form 1099-MISC if you're reporting nonemployee compensation in box 7
• May 31, 2017 for retirement account forms (5498 series)

Late Filing: If you realize you can't meet the deadline, file Form 8809 to request an automatic 30-day extension. You must submit Form 8809 before the original due date. Under certain hardship conditions, you may request an additional 30-day extension. IRS.gov

Amended (Corrected) Returns: When you discover errors after filing, you'll use Form 1096 again to transmit corrected returns. There are two types of corrections:

• Type 1 errors (incorrect amounts or codes): Check the "CORRECTED" box on the new information return, make corrections, and submit with a new Form 1096.
• Type 2 errors (wrong taxpayer identification number, wrong name, or wrong form type): This requires a two-step process—first, submit a corrected return with all amounts as zero to void the original; second, submit a completely new return with correct information. Each step requires its own Form 1096.

Key Rules for 2016

The 250-Rule: If you must file 250 or more information returns of any single type, you're required to file electronically—and you won't need Form 1096. This threshold applies separately to each form type. For example, if you file 500 Forms 1099-INT and 100 Forms 1099-MISC, you must file the 1099-INT forms electronically, but you can file the 1099-MISC on paper (with Form 1096). IRS.gov

One Form 1096 Per Form Type: You must use a separate Form 1096 for each type of information return. If you're filing both Forms 1098 and 1099-A, you need two Forms 1096—one for the 1098s and another for the 1099-As. Don't combine different form types under a single Form 1096.

Matching Information: The filer's name, address, and taxpayer identification number (TIN) on Form 1096 must exactly match what appears on all the accompanying information returns. Consistency is critical for IRS processing.

No Photocopies: The IRS uses optical scanning equipment, so photocopied forms aren't acceptable. You must use original IRS forms or approved substitute forms that meet specifications in IRS Publication 1179. Exception: For very low-volume forms (1099-CAP, 1099-LTC, 1099-SA, 5498-ESA, 5498-SA), you may print and file black-and-white Copy A from the IRS website.

Where to Mail: The mailing address depends on your location. If your business is in the eastern half of the U.S. (including states like New York, Florida, Texas, Maine, Virginia), mail to Austin, TX 73301. If you're in the western half (California, Illinois, Washington, Colorado, etc.), mail to Kansas City, MO 64999. IRS.gov

Step-by-Step Filing Guide (High Level)

Step 1: Gather Your Information Returns
Collect all the Copy A forms you're sending to the IRS (1099s, 1098s, etc.). Group them by form type.

Step 2: Complete the Filer Information
Enter your business name, street address (including suite/room number if applicable), city, state, ZIP code, and contact information. Enter either your Employer Identification Number (EIN) in Box 1 or Social Security Number (SSN) in Box 2—never both. Most businesses use their EIN.

Step 3: Calculate Totals

• Box 3: Count the number of forms you're transmitting (don't count blank, voided, or the Form 1096 itself)
• Box 4: Total federal income tax withheld from all the forms
• Box 5: Enter the sum of specific boxes from the forms (requirements vary by form type—see the form instructions for details)

Step 4: Check the Correct Form Type Box
In Box 6, mark an "X" in only one box to indicate which type of form you're transmitting. If you're sending Form 1099-MISC with nonemployee compensation in box 7, also check Box 7.

Step 5: Sign and Date
An authorized person must sign, provide their title, and date the form. This certifies under penalty of perjury that the information is correct.

Step 6: Mail Everything Together
Send the completed Form 1096 with all the Copy A forms to the appropriate IRS service center. Don't staple, fold, or tape the forms. Mail them flat, using First-Class Mail. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Mixing Form Types
Sending multiple types of information returns (like 1099-INT and 1099-MISC together) with a single Form 1096.
Solution: Use a separate Form 1096 for each form type.

Mistake #2: Inconsistent Filer Information
The name, address, or TIN on Form 1096 doesn't match the accompanying information returns.
Solution: Double-check that all identifying information is identical across all forms before mailing.

Mistake #3: Missing Decimal Points
Entering dollar amounts without cents (like "1230" instead of "1230.00").
Solution: Always include decimal points and cents, even if the amount is a whole number.

Mistake #4: Duplicate Filing
Sending the same information to the IRS multiple times.
Solution: Keep careful records of what you've filed to avoid accidental duplication.

Mistake #5: Using Special Characters
Adding dollar signs, commas, asterisks, or other symbols in money amount boxes or names.
Solution: Use only numbers, letters, and periods where required. The IRS scanners can't read special characters properly.

Mistake #6: Stapling or Folding
Stapling forms together or folding them to fit in an envelope.
Solution: Mail forms flat in a properly sized envelope without staples or folds. IRS.gov

Mistake #7: Using Wrong Year Forms
Filing with a prior year's or subsequent year's Form 1096 for current year data.
Solution: Always use the 2016 Form 1096 for 2016 tax year information.

What Happens After You File

IRS Processing: Once the IRS receives your Form 1096 and accompanying information returns, they scan and process them using optical character recognition technology. The information is matched against taxpayers' income tax returns to verify proper reporting.

Matching Program: The IRS uses Form 1096 totals to verify they've received all the individual information returns you indicated you were sending. If there's a discrepancy, they may contact you.

Notices to Recipients: If the IRS discovers issues with the information you reported (like mismatched taxpayer identification numbers), they may send you a CP2100 or CP2100A notice. This notice lists payees for whom you need to verify or correct TIN information.

Penalties for Errors: If you filed incorrectly, you may receive a penalty notice. For 2016, penalties are:

• $50 per return if corrected within 30 days (maximum $532,000 per year; $186,000 for small businesses)
• $100 per return if corrected after 30 days but by August 1 (maximum $1,596,500; $532,000 for small businesses)
• $260 per return for corrections after August 1 or unfiled returns (maximum $3,193,000; $1,064,000 for small businesses)
• $530 per return minimum (no maximum) for intentional disregard of filing requirements IRS.gov

Record Retention: Keep copies of your filed Form 1096 and all information returns for at least 3 years (4 years for Form 1099-C or if backup withholding was involved). You'll need these if the IRS has questions or if you need to file corrections.

FAQs

Q1: Do I need Form 1096 if I file electronically?

No. Form 1096 is only required for paper filings. If you file your information returns through the IRS Filing Information Returns Electronically (FIRE) system, you don't need to submit Form 1096 at all. The electronic system captures the summary information automatically.

Q2: Can I handwrite Form 1096?

Yes, but it's not recommended. The IRS prefers typed forms because they're easier to scan and process accurately. If you must handwrite, use dark ink and print clearly in block letters. However, many tax professionals recommend using tax software or online fillable PDFs to avoid scanning errors.

Q3: What if I realize I made a mistake after I've already filed?

File a corrected return as soon as possible. Prepare a new Form 1096 and the corrected information return(s), following the correction procedures for either Type 1 or Type 2 errors (see Section 2). The sooner you correct the error, the lower the potential penalty. IRS.gov

Q4: I have 249 Forms 1099-MISC to file. Should I file electronically?

While you're not required to file electronically if you have fewer than 250 forms, the IRS encourages electronic filing for accuracy and faster processing. Consider filing electronically to avoid potential paper filing issues and to streamline your process—it's often easier once you've set it up.

Q5: Can a third party (like my accountant or payroll service) file Form 1096 on my behalf?

Yes. A transmitter, service bureau, paying agent, or authorized representative can sign and file Form 1096 for you if they have proper authority under a valid agency agreement. They should sign the form and add "For: [Your Business Name]." However, you remain liable for any penalties if the filing is incorrect, incomplete, or late. IRS.gov

Q6: What's the difference between "filer" and "payer" on Form 1096?

For most situations, the filer and payer are the same entity—your business. The "filer" is whoever is submitting the forms to the IRS, while the "payer" is the entity that made the payments being reported. In nominee situations (where you received payments on behalf of someone else), you would be the payer on the information returns but list yourself as the filer on Form 1096.

Q7: I missed the filing deadline. What should I do?

File immediately, even if you're late. The penalty increases the longer you wait. If you had reasonable cause for filing late (serious illness, natural disaster, unavoidable absence), you can request penalty relief by writing a letter explaining the circumstances. Attach it to your Form 1096 when you file. The IRS evaluates reasonable cause requests on a case-by-case basis. IRS.gov

Additional Resources

• IRS.gov/Form1096
• 2016 General Instructions for Certain Information Returns (IRS)
• 2016 Form 1096 (PDF) (IRS)

This guide is based on official IRS instructions and publications for the 2016 tax year. Always consult the official IRS Form 1096 instructions or a tax professional for your specific situation.