If you've ever paid independent contractors, made mortgage interest payments, or issued other payment forms to individuals or businesses, you've likely encountered Form 1096. This guide breaks down everything you need to know about this important IRS transmittal form in plain English.

What the Form Is For

Form 1096, officially titled "Annual Summary and Transmittal of U.S. Information Returns," serves as a cover sheet for paper tax forms you're sending to the IRS. Think of it as the packaging slip that accompanies a shipment—it summarizes what's inside and ensures the IRS knows what you're sending them.

Specifically, Form 1096 transmits paper copies of information returns including Forms 1097 (bond credit forms), 1098 (mortgage interest, tuition, and student loan interest), 1099 (various types of income like interest, dividends, and nonemployee compensation), 3921 and 3922 (stock option transactions), 5498 (IRA and health savings account contributions), and W-2G (gambling winnings). You need one Form 1096 for each type of form you're sending. For example, if you're filing both 1099-MISC and 1099-INT forms, you must prepare two separate Forms 1096—one for each type.

It's important to note that Form 1096 is only required if you're filing paper forms. If you file electronically through the IRS FIRE (Filing Information Returns Electronically) system, you don't need Form 1096 at all. Additionally, if you're required to file 250 or more information returns of any single type, you must file them electronically, which means Form 1096 won't apply to you. IRS.gov

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

Standard Filing

For the 2018 tax year, the filing deadlines varied depending on which forms you were transmitting. Most information returns accompanied by Form 1096—including Forms 1097, 1098, 1099, 3921, 3922, and W-2G—had to be filed by February 28, 2019 for paper submissions or April 1, 2019 for electronic filing. However, if you were reporting nonemployee compensation (NEC) in box 7 of Form 1099-MISC, the IRS recommended filing by January 31, 2019. Forms 5498 (reporting IRA and HSA contributions) had a later deadline of May 31, 2019.

Late Filing

Late filing happens when you miss these deadlines. The consequences depend on how late your submission is. If you file within 30 days of the due date, the penalty is $50 per form. File between 30 days and August 1, and the penalty increases to $100 per form. After August 1 or if you don't file at all, you'll face a $270 penalty per form. These penalties have annual caps that vary based on business size. IRS.gov

Amended or Corrected Returns

Amended or corrected returns use the same Form 1096. If you discover errors after filing, you don't need to file original and corrected returns separately—they can be transmitted together using a single Form 1096. The key is to clearly mark the corrected information returns as "CORRECTED" in the appropriate box on each form.

Extensions

If you need more time, you can request an automatic 30-day extension by filing Form 8809 by the original due date. Under certain hardship conditions, you may qualify for an additional 30-day extension. However, for Forms 1099-MISC reporting nonemployee compensation, only one extension is allowed and it's not automatic—you must demonstrate reasonable cause.

Key Rules for 2018

Official, Scannable Forms Only

Several important rules governed Form 1096 filing in 2018. First and foremost, you cannot use photocopies or downloaded forms from the IRS website for filing with the IRS. The IRS processes forms using optical character recognition (OCR) equipment, and only official red-ink scannable forms work properly. However, you can use printed copies to provide statements to recipients (Copy B). The IRS specifically warns that filing non-scannable forms may result in penalties. IRS.gov

Separate Forms for Each Type

Separate forms for each type: You must file a separate Form 1096 for each type of information return. If you file both Forms 1099-INT and 1099-MISC, you need two Forms 1096—one transmitting all your 1099-INT forms and another transmitting all your 1099-MISC forms. You cannot bundle different form types together under one Form 1096.

Electronic Filing Threshold

Electronic filing threshold: If you file 250 or more information returns of any one type, electronic filing becomes mandatory. Filing on paper when you're required to file electronically can result in penalties unless you have an approved waiver from the IRS.

Correct Identification Numbers

Correct identification numbers: Your name, address, and taxpayer identification number (TIN) on Form 1096 must exactly match the information on all the forms you're transmitting. This consistency is critical for proper processing. Use your Employer Identification Number (EIN) in box 1 if you have one; individuals not in a trade or business use their Social Security Number (SSN) in box 2.

Proper Calculations and Handling

Proper calculations: Box 3 requires the total number of forms you're transmitting (don't count blank, voided forms, or the Form 1096 itself). Box 4 shows total federal income tax withheld from all the forms. Box 5 reports the total of specific amounts from the forms being transmitted—the exact boxes vary by form type and are detailed on page 2 of Form 1096.

No stapling or taping: Physical handling matters. Don't staple, tape, or tear any forms. The IRS scanning equipment can't process damaged or altered forms properly.

Step-by-Step Filing Guide (High Level)

Step 1: Gather Your Information Returns

Collect all completed Forms 1097, 1098, 1099, 3921, 3922, 5498, or W-2G that you need to file with the IRS. Group them by form type since each type needs its own Form 1096.

Step 2: Order Official Forms

Obtain official IRS Form 1096 and Copy A forms by ordering them online at IRS.gov/OrderForms or by mail. Remember, you cannot print Form 1096 from the IRS website for filing purposes (though a few low-volume forms like 1099-SA and 5498-ESA are exceptions).

Step 3: Complete the Filer Information

Enter your name, address, and TIN at the top of Form 1096. Make sure this information exactly matches what appears on all the forms you're transmitting. Include a contact person's name, telephone number, email, and fax number.

Step 4: Fill In the Summary Boxes

In box 3, count the number of forms you're sending (not pages—individual forms). In box 4, total all federal income tax withheld shown on the forms. In box 5, enter the sum of amounts from specific boxes (refer to the detailed instructions on page 2 of Form 1096 for which boxes apply to your form type).

Step 5: Check the Form Type Box

In box 6, mark an "X" in the box that corresponds to the type of form you're transmitting. Only check one box per Form 1096. If you're filing 1099-MISC forms with nonemployee compensation, also check box 7.

Step 6: Sign and Date

An authorized person must sign the form under penalties of perjury, include their title, and date it. This certifies the accuracy of the return and accompanying documents.

Step 7: Mail to the Correct Address

The mailing address depends on your location. For states including Alabama, Arizona, Arkansas, and most of the East Coast, mail to Austin, TX 73301. For Western and Midwestern states like Alaska, California, and Illinois, mail to Kansas City, MO 64121-9256. For certain states like California and Connecticut, mail to Ogden, UT 84201. Check the form instructions for your specific state. IRS.gov

Step 8: Meet Your Deadline

Ensure your forms are postmarked by the appropriate deadline. If mailed on or before the due date, you've met the filing requirement.

Common Mistakes and How to Avoid Them

Mistake #1: Duplicate Filing

Duplicate filing: Sending the same information twice wastes IRS resources and can confuse your records. Double-check before mailing to ensure you haven't already filed.

Mistake #2: Mismatched Information

Mismatched information: The most common error is having different names, addresses, or TINs on Form 1096 versus the attached forms. Before filing, verify that your identification information is consistent across all documents.

Mistake #3: Missing Decimal Points

Missing decimal points: When entering dollar amounts, always include the decimal point showing cents. Write "1230.00" not "1230." The scanning equipment expects proper formatting.

Mistake #4: Mixing Form Types

Mixing form types: Don't submit Forms 1099-INT and 1099-MISC together with one Form 1096. Each form type requires its own separate Form 1096. Keep them completely separate.

Mistake #5: Using Unofficial Forms

Using unofficial forms: Never submit photocopies or forms printed from the IRS website (except for the specific low-volume forms noted earlier). Order official scannable forms or file electronically if you have many returns.

Mistake #6: Physical Damage

Physical damage: Avoid stapling, taping, or folding forms. Don't include forms with pinfeed holes. Handle forms carefully to ensure they remain flat and undamaged.

Mistake #7: Incorrect Box Entries

Incorrect box entries: Don't enter "0" or "None" in money amount boxes unless specifically instructed. Leave boxes blank if there's no amount to report. Only make entries in the appropriate boxes.

Mistake #8: Wrong Year Forms

Wrong year forms: Always use the form for the correct tax year. Using 2017 or 2019 forms for 2018 tax year will cause rejection.

What Happens After You File

Processing

Once the IRS receives your Form 1096 and accompanying information returns, several things occur:

Processing: The IRS scans your paper forms using optical character recognition technology. The information is entered into IRS databases and matched against tax returns filed by the recipients. This process typically takes several weeks to months.

Recipient Matching

Recipient matching: The IRS compares the TINs and names on your forms against Social Security Administration and IRS records. If discrepancies are found, you may receive a CP2100 or CP2100A notice indicating TIN/name mismatches. You'll need to correct your records and notify affected recipients about backup withholding if necessary.

Error Notices and Penalties

Error notices: If the IRS discovers errors, omissions, or missing forms, you'll receive a notice explaining the issue. You'll have an opportunity to file corrected returns or provide explanations. Respond promptly to any IRS correspondence to minimize penalties.

Penalty assessments: If you filed late, omitted required information, or made errors, the IRS will calculate penalties and send you a notice (often a CP215 series notice). You'll have appeal rights if you believe you had reasonable cause for any failures.

Compliance Checking and Record Retention

Compliance checking: The IRS uses information returns to verify that taxpayers report all their income. Recipients who don't report income shown on Forms 1099 or other information returns may receive automated notices asking them to explain the discrepancy or pay additional tax.

Record retention: Keep copies of all filed Forms 1096 and information returns for at least four years. The IRS may request copies during audits or if questions arise about your filing.

You generally won't receive acknowledgment that your filing was accepted unless there's a problem. No news is good news in most cases. If you file electronically through FIRE, you'll receive immediate acknowledgment of receipt and any transmission errors. IRS.gov

FAQs

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

No. Form 1096 is only required when filing paper information returns. If you file through the IRS FIRE (Filing Information Returns Electronically) system, you don't need Form 1096. The electronic system captures the summary information automatically.

Q2: Can I file multiple types of 1099 forms with one Form 1096?

No. Each type of information return requires its own separate Form 1096. If you're filing Forms 1099-MISC and 1099-INT, you need two Forms 1096—one for all your 1099-MISC forms and another for all your 1099-INT forms. This is one of the most common filing errors.

Q3: What if I discover an error after I've already filed?

File a corrected return as soon as possible. Prepare new information returns marked as "CORRECTED" in the appropriate box, complete a new Form 1096, and submit them to the IRS. You can transmit both original and corrected returns together using one Form 1096 if needed. The sooner you file corrections, the lower your penalties will be.

Q4: Where can I get official Form 1096?

Order official scannable forms online at IRS.gov/OrderForms or by calling the IRS at 800-TAX-FORM (800-829-3676). You can also request them by mail. Do not print Form 1096 from the IRS website for filing with the IRS—it won't be scannable and may result in penalties.

Q5: What's the penalty if I file Form 1096 late?

The penalty depends on how late you file. Within 30 days of the due date: $50 per return (maximum $547,000 or $191,000 for small businesses). Between 30 days and August 1: $100 per return (maximum $1,641,000 or $547,000 for small businesses). After August 1 or not filed at all: $270 per return (maximum $3,282,500 or $1,094,000 for small businesses). Small businesses are those with average annual gross receipts of $5 million or less over the past three years.

Q6: My business name and EIN don't match what's on my information returns. What should I do?

Stop. Don't file yet. The name and TIN on Form 1096 must exactly match the name and TIN on all the forms you're transmitting. If there's a mismatch, correct the information returns first, then complete Form 1096 with matching information. Mismatched information is a leading cause of penalties and processing delays.

Q7: What if I have fewer than 250 forms to file—should I file elektronically anyway?

While you're not required to file electronically if you have fewer than 250 returns of any single type, you may want to consider it. Electronic filing through FIRE provides immediate confirmation of receipt, eliminates formatting and scanning errors, and is generally faster and more convenient than paper filing. Many tax software programs and payroll services offer electronic filing options. However, paper filing is perfectly acceptable if you prefer it and have fewer than 250 returns. IRS.gov

This guide provides a comprehensive overview of Form 1096 for tax year 2018. For specific questions about your situation, consult the official IRS instructions or a tax professional. Always refer to IRS.gov for the most current forms and guidance.