What Form 1096 Is For

Think of Form 1096 as the "cover letter" that goes with your 1099 forms when you mail them to the IRS. Officially called the "Annual Summary and Transmittal of U.S. Information Returns," this one-page form summarizes all the paper information returns you're sending to the Internal Revenue Service for the 2015 tax year.

If you're a business owner, freelancer platform, financial institution, or anyone who paid independent contractors, interest, dividends, or other reportable amounts during 2015, you likely had to prepare various 1099 forms (like 1099-MISC for contractor payments or 1099-INT for interest income). Form 1096 groups these together and provides the IRS with totals—much like a packing slip tells a shipping company what's inside a box. The form reports how many information returns you're submitting, the total federal income tax withheld (if any), and the total dollar amounts reported across all forms of the same type IRS.gov.

Important note: Form 1096 is only required when you file paper forms with the IRS. If you filed your 1099s electronically through the IRS FIRE System, you don't need Form 1096 at all—the electronic system handles the transmission automatically IRS.gov.

When You’d Use It (Late/Amended Filing)

The standard deadline for filing Form 1096 with most information returns (Forms 1097, 1098, 1099, 3921, 3922, and W-2G) was February 29, 2016 for paper filing or March 31, 2016 if filing electronically. However, if you were reporting retirement account contributions (Forms 5498), the deadline extended to May 31, 2016 IRS.gov.

Late Filing

If you missed the deadline, you should still file as soon as possible to minimize penalties. The IRS imposes penalties that increase based on how late you file—$50 per information return if filed correctly within 30 days after the due date, $100 per information return if filed by August 1, and $260 per information return if filed after August 1 but before the following year. The maximum annual penalty is $500,000 for small businesses. Intentional disregard carries even steeper penalties of $530 per information return with no maximum cap IRS.gov.

Amended/Corrected Returns

Discovered an error on your 2015 information returns after filing? You must correct it as soon as possible. Check the "CORRECTED" box at the top of each corrected 1099 form, then prepare a new Form 1096 to transmit these corrections. Good news: you can combine original and corrected returns of the same type using one Form 1096 IRS.gov. Simply mail the corrected forms with the completed Form 1096 to the appropriate IRS Service Center—Austin, TX for southeastern states or Kansas City, MO for other regions.

Key Rules or Details for 2015

Electronic Filing Threshold

If you filed 250 or more information returns of any single type (for example, 250 or more 1099-MISC forms), you were required to file electronically, which meant no Form 1096 was needed. Failing to file electronically when required could result in penalties unless you obtained an approved waiver IRS.gov.

Separate Form 1096 for Each Form Type

You couldn't lump different types of information returns together under one Form 1096. Each type required its own transmittal form. For instance, if you filed both 1099-INT (interest income) and 1099-MISC (miscellaneous income), you needed to prepare two separate Forms 1096—one accompanying all your 1099-INT forms and another with all your 1099-MISC forms IRS.gov.

Matching Information Required

The name, address, and Taxpayer Identification Number (TIN) you entered on Form 1096 had to exactly match what appeared in the upper left corner of all the accompanying 1099 or other information returns. Any mismatch could trigger IRS notices or processing delays IRS.gov.

Original IRS Forms Only

The IRS required scannable, original red-ink forms—photocopies were explicitly not acceptable. The form itself states: "Photocopies are not acceptable" IRS.gov. You could order official forms from the IRS by calling 1-800-TAX-FORM (1-800-829-3676) or use approved substitute forms that met specifications in IRS Publication 1179.

Step-by-Step (High Level)

Step 1 – Gather Your Information Returns

Collect all paper copies (Copy A) of the 1099s and other information returns you prepared for 2015. Don't include blank forms, voided forms, or forms you're sending to recipients—only the red "Copy A" forms designated for the IRS.

Step 2 – Sort by Form Type

Group all forms by their specific type. Place all 1099-MISC forms in one pile, all 1099-INT forms in another, and so on. Each group will need its own Form 1096.

Step 3 – Complete Form 1096 Fields

For each group, fill out a separate Form 1096. Enter your business name, address, and Employer Identification Number (EIN) or Social Security Number (SSN if you're a sole proprietor without an EIN). Count the number of forms in that group and enter it in Box 3. Calculate the total federal income tax withheld (if any) for Box 4, and the total dollar amounts from specific boxes on the information returns for Box 5—the exact boxes vary by form type IRS.gov.

Step 4 – Check the Correct Box

Mark an "X" in Box 6 to indicate which type of form you're transmitting. Only check one box per Form 1096.

Step 5 – Sign and Date

The form must be signed under penalty of perjury by an authorized person, typically the business owner, officer, or authorized agent. Include your title and the date signed.

Step 6 – Mail to the Correct IRS Center

Package the completed Form 1096 with its corresponding information returns (do not staple). Mail everything flat, not folded, via First-Class Mail to the designated IRS Service Center based on your location IRS.gov.

Common Mistakes and How to Avoid Them

Mismatched Totals

One of the most frequent errors is having the totals on Form 1096 not match the sum of amounts on all accompanying forms. Before mailing, double-check that Box 3 (number of forms), Box 4 (total federal tax withheld), and Box 5 (total amounts) accurately reflect all the forms in that batch. Use a calculator or spreadsheet to verify your math.

Using One Form 1096 for Multiple Form Types

Remember, each type of information return requires its own separate Form 1096. Don't try to combine 1099-MISC and 1099-INT forms under a single transmittal—the IRS processing system can't handle it, and your returns may be rejected or delayed.

Wrong or Missing TIN

Entering an incorrect Employer Identification Number or Social Security Number is a red flag for IRS systems. Cross-reference your TIN with prior tax returns or your IRS correspondence to ensure accuracy. Also, make sure the TIN on Form 1096 matches exactly what appears on all your information returns.

Filing When Not Required

If you filed electronically through the FIRE System, you don't need to also send paper Form 1096. Submitting unnecessary paper forms creates confusion and extra work for both you and the IRS.

Using Photocopies or Wrong Forms

Always use the official scannable version of Form 1096, which has red ink that IRS machines can read. Photocopies, even color copies, will be rejected. A penalty of $50 per information return may be imposed for filing forms that cannot be scanned IRS.gov. Similarly, make sure you're using the correct year's form—a 2014 Form 1096 won't work for 2015 filings.

Forgetting to Sign

An unsigned Form 1096 is considered incomplete. The IRS requires your signature under penalty of perjury, confirming the accuracy of the information. Set a reminder to sign and date before mailing.

What Happens After You File

Once the IRS receives your Form 1096 and accompanying information returns, they enter the data into their information reporting system. This data is matched against tax returns filed by the recipients (your contractors, vendors, investors, etc.) to verify that everyone is reporting their income correctly.

Processing Timeline

Paper returns typically take several weeks to process. The IRS scans the forms and uses optical character recognition to extract the data. Any forms with errors may be manually reviewed, which adds time.

IRS Notices

If everything matches up and is correct, you likely won't hear anything from the IRS—no news is good news. However, you may receive notices if: the IRS detects mismatches between what you reported and what recipients reported on their tax returns; your forms had errors or missing information; or there are TIN/name combination problems. Respond promptly to any IRS notices and provide requested corrections.

Recipient Verification

The individuals or businesses who received your 1099 forms will use them to complete their own tax returns. They may contact you if they spot discrepancies or need clarification. Keep copies of all forms you filed for at least three years in case questions arise IRS.gov.

Penalty Assessment

If you filed late or incorrectly, the IRS may assess penalties. These typically arrive as formal notices several months after filing. You can request penalty abatement if you had reasonable cause for the error or delay.

FAQs

Q1: Do I need Form 1096 if I'm filing electronically?

No. Form 1096 is only required for paper submissions. The IRS FIRE System handles electronic transmittals without needing a separate summary form. If you e-filed your information returns, skip Form 1096 entirely IRS.gov.

Q2: Can I submit one Form 1096 for all my different 1099 forms?

No. You must prepare a separate Form 1096 for each type of information return. If you're filing both 1099-DIV and 1099-MISC forms, you need two Forms 1096—one for each group IRS.gov.

Q3: What if I only filed one or two 1099 forms—do I still need Form 1096?

Yes, if you filed paper forms. Even a single paper 1099 form sent to the IRS requires an accompanying Form 1096. There's no minimum threshold—one form or one hundred forms, you need the transmittal.

Q4: I made a mistake on my 2015 Form 1096. How do I fix it?

Prepare corrected copies of the affected information returns with the "CORRECTED" box checked, then submit them with a new Form 1096. Mail these to the appropriate IRS Service Center as soon as possible. Don't wait until the next tax year IRS.gov.

Q5: Where can I get official Form 1096 forms?

For 2015 filings, you could order official forms directly from the IRS by calling 1-800-TAX-FORM (1-800-829-3676) or download them from IRS.gov. You can also use approved software that prints substitute forms meeting IRS specifications outlined in Publication 1179 IRS.gov.

Q6: What's the difference between Form 1096 and Form W-3?

Form 1096 summarizes information returns (1099 series, 1098, etc.), while Form W-3 is the transmittal form for W-2 wage statements. They serve similar summarizing functions but for different types of payments—W-3 for employee wages and 1096 for non-employee payments and other reportable amounts.

Q7: Can my accountant or payroll service sign Form 1096 on my behalf?

Yes, if they have proper authorization. An agent (accountant, service bureau, etc.) may sign Form 1096 if they have valid authority under state law and add the caption "For: [Your Business Name]." However, you as the filer remain liable for any penalties related to late or incorrect filing IRS.gov.