What IRS Form 1096 (2010) Is For
IRS Form 1096 (2010) is an annual summary and transmittal form used by businesses and organizations to send paper-filed information returns to the Internal Revenue Service (IRS). Serving as a cover sheet, it summarizes key details, including the total number of forms submitted, the total amount reported, and any federal income tax withheld. This IRS form accompanies documents like Form 1099, Form 1098, and Form W-2G, ensuring that payments, income, and other transactions are properly reported for the calendar year.
For more information on fixing errors in your information returns, see our guide to correcting 1099s after filing.
When You’d Use IRS Form 1096 (2010)
You will need to file Form 1096 when submitting specific information returns to the IRS for the calendar year:
- Paper Filing: You must use Form 1096 when transmitting paper forms such as Form 1099-MISC, Form 1099-INT, or Form W-2G that report income, interest, or gambling winnings.
- Late Filing: You should file this form as soon as possible if you miss the original due date, since penalties may increase the longer you delay submission.
- Amended Returns: You must submit a new Form 1096 with corrected information if you identify errors such as an incorrect amount, business name, or identification number.
- Independent Contractors: You are required to file Form 1096 if your business hires independent contractors and reports nonemployee compensation using Form 1099-NEC.
Key Rules or Details for Tax Year 2010
To ensure compliance when filing IRS Form 1096 (2010), it is essential to follow these rules for accuracy and proper submission:
- Electronic Filing Threshold: You must file electronically if you are submitting 250 or more of any single type of information return unless you have an approved hardship waiver from the Internal Revenue Service.
- Separate Form 1096 for Each Type: You must prepare a separate Form 1096 for each type of return, such as Form 1099-MISC, Form 1099-INT, or Form 1098, since each requires its own transmittal.
- Official Paper Forms Only: You must use only official, pre-printed paper forms or approved substitute versions that meet the IRS machine-readable standards. Photocopies or downloads from the IRS website are not accepted.
- Matching Identification Details: The filer’s business name, address, and identification number must exactly match those listed on the accompanying information returns to prevent processing delays.
- Mailing Address Based on Location: You must mail Form 1096 and the accompanying forms to either the Austin, TX, or Kansas City, MO, Service Center, depending on the principal business address listed.
If you are concerned about penalties or cannot pay your tax due immediately, an IRS payment plan may be a suitable option.
Step-by-Step (High Level)
Follow these steps to complete and file IRS Form 1096 (2010) correctly and avoid common filing errors:
- Gather Your Forms: Collect all paper information returns for the tax year, such as Form 1099, Form 1098, or Form W-2G, ensuring each is complete and properly categorized.
- Enter Filer Information: Provide your business name, mailing address, and either your Employer Identification Number (EIN) or Social Security Number (SSN), ensuring this information matches the data on the accompanying forms.
- Calculate Summary Totals: Enter the total number of forms submitted, the total federal income tax withheld, and the total amount reported, as shown on the related returns.
- Check the Correct Box: Mark the box that identifies the form type you are transmitting, such as 1099-MISC or 1099-INT, to ensure accuracy, as each form type requires its own specific summary.
- Sign and Submit: Have an authorized individual sign and date the form, then mail it flat (not folded) with all required information returns to the correct IRS Service Center for your business location.
If you need detailed guidance on other IRS forms or filing procedures, visit our IRS Form Help Center.
Common Mistakes and How to Avoid Them
When completing IRS Form 1096 (2010), it is essential to avoid common errors that can delay processing or lead to penalties:
- Duplicate Filing: Always confirm that you have not already submitted the same information, as this will prevent reporting the same transactions twice.
- Mismatched Identification: Ensure that your Employer Identification Number (EIN), Social Security Number (SSN), and business name match exactly with those on the attached information returns.
- Combining Different Types: Use a separate Form 1096 for each different type of information return, such as Form 1099-MISC, Form 1099-INT, or Form W-2G, to avoid rejection.
- Using Non-Scannable Copies: Do not print forms directly from the IRS website, as these are not machine-readable; use only official pre-printed paper forms or approved substitutes.
- Stapling Paper Forms: Avoid stapling or clipping your paper forms together since this can interfere with IRS scanning equipment and cause processing delays.
- Incomplete Information: Fill in all required boxes, including the total number of forms, total amounts reported, and filer identification information, to prevent the IRS from returning your filing for correction.
If you have an unfiled federal income tax return, addressing it promptly can help you avoid further penalties.
What Happens After You File
After you file IRS Form 1096 (2010), the Internal Revenue Service processes your paper forms by scanning and recording the information into its system. The IRS uses this summary information to verify payments and income reported by companies, independent contractors, and other taxpayers. It is important to retain copies of all filed forms for at least three years in case of an audit or correction request.
Understanding the IRS collection process can help you prepare for any potential follow-up after you file your forms.
FAQs
What is included in the annual summary when filing IRS Form 1096 (2010)?
The annual summary includes totals from all information returns, such as the total number of forms, total payments, and tax withheld. It covers categories like miscellaneous income, contractor payments, and other forms submitted for the same calendar year.
Do independent contractors need to file Form 1096?
Yes, businesses that hire independent contractors must file Form 1096 when submitting paper information returns that report non-employee compensation or contractor payments through Form 1099-NEC to the Internal Revenue Service.
Is an employee stock purchase plan reported using Form 1096?
Yes, companies transmitting forms related to an employee stock purchase plan must include them in the filing package with a completed Form 1096, summarizing total transactions and any miscellaneous income linked to those stock transfers.
What tax forms need to be summarized with Form 1096?
You must summarize all applicable paper tax forms, including Form 1099, Form 1098, and Form W-2G. This report returns information on various payments, including non-employee compensation, contractor payments, and other forms of income.
