What Form 1096 Is For

Form 1096 serves as a cover sheet or transmittal document that accompanies paper information returns you send to the Internal Revenue Service. Think of it as the "packing slip" for your tax paperwork—it summarizes and organizes the Forms 1098, 1099, 3921, 3922, 5498, and W-2G that you're submitting.

When businesses and organizations pay certain amounts to individuals or other entities—such as interest, dividends, mortgage interest received, retirement distributions, or gambling winnings—they must report these payments to both the IRS and the recipients. The individual forms (like Form 1099-INT for interest or Form 1099-MISC for miscellaneous income) provide the detailed transaction information, while Form 1096 acts as the summary document that tells the IRS how many forms you're sending, what types they are, and the total amounts reported.

Importantly, Form 1096 is only required for paper filing. If you file your information returns electronically through the IRS FIRE System, you do not need to submit Form 1096. The form contains crucial summary information including the total number of forms being transmitted, the total federal income tax withheld, and the aggregate dollar amounts being reported.

When You’d Use Form 1096 (Late/Amended Returns)

For tax year 2010, you would have used Form 1096 by specific deadlines depending on the type of information return you were transmitting. Most information returns (Forms 1098, 1099, 3921, 3922, and W-2G) were due to the IRS by February 28, 2011 if filing on paper, or March 31, 2011 if filing electronically. However, IRA contribution information returns (Forms 5498, 5498-ESA, and 5498-SA) had an extended deadline of May 31, 2011.

Late Filing

If you missed the deadline, you should file as soon as possible. The IRS imposes penalties based on how late you file, with increasing penalty amounts the longer you wait. You can request a 30-day automatic extension by filing Form 8809 before the original due date, and under certain hardship conditions, you may apply for an additional 30-day extension.

Amended/Corrected Returns

If you discover errors after filing—whether incorrect dollar amounts, wrong recipient names, missing taxpayer identification numbers (TINs), or other mistakes—you must file corrected returns promptly. To correct previously filed information returns, you prepare new forms, check the "CORRECTED" box at the top of each form, and submit them with a new Form 1096 to your IRS Service Center. Originals and corrections of the same type of return can be submitted together using one Form 1096, which simplifies the process when you have both new returns and corrections to file simultaneously. You must also furnish corrected statements to the affected recipients.

Key Rules or Details for 2010

Electronic Filing Threshold

If you had to file 250 or more information returns of any single type, electronic filing was mandatory unless you received an approved hardship waiver. This threshold applied separately to each form type—so 500 Forms 1098 required electronic filing, but 100 Forms 1099-A did not. To file electronically, you needed to submit Form 4419 at least 30 days before the due date to receive approval.

Separate Form 1096 for Each Type

You must group information returns by form number and submit each group with its own separate Form 1096. For example, if you filed Forms 1098, 1099-INT, and 1099-MISC, you needed three separate Forms 1096—one for each type. You cannot combine different types of information returns under a single Form 1096.

Matching Information Required

The filer's name, address, and taxpayer identification number on Form 1096 must match exactly what appears on the attached information returns. This consistency is crucial for IRS processing and prevents penalties for incorrect filing.

Official Forms Only

The IRS required you to use official pre-printed scannable forms or approved substitute forms that met the specifications in IRS Publication 1179. Downloaded or photocopied forms were not acceptable because they couldn't be properly scanned by IRS machines, and using them could result in penalties.

Mailing Addresses

Where you mailed your forms depended on your location. Filers with principal businesses in the eastern and southern states sent forms to the Austin, TX Service Center (73301), while those in western, northern, and midwestern states sent forms to Kansas City, MO (64999). International filers used the Austin address.

Step-by-Step (High Level)

Step 1: Gather Your Information Returns

Collect all paper information returns (Forms 1098, 1099, 3921, 3922, 5498, or W-2G) that report payments for the 2010 calendar year. Separate them by form type since you'll need a different Form 1096 for each type.

Step 2: Complete the Filer Information

On Form 1096, enter your business or organization name, street address, city, state, ZIP code, and contact information. Most importantly, enter either your Employer Identification Number (EIN) in Box 1 or, if you're an individual not in business, your Social Security Number in Box 2—but never both. This identification information must match exactly what appears on your information returns.

Step 3: Calculate Summary Totals

Count the number of correctly completed forms you're transmitting (don't count blank or voided forms) and enter this in Box 3. In Box 4, enter the total federal income tax withheld shown on all the forms you're sending. In Box 5, calculate the total dollar amount from specific boxes on your forms—for example, for Form 1099-INT, you'd add up Boxes 1, 3, and 8 from all your 1099-INT forms.

Step 4: Identify the Form Type

Check exactly one box in line 6 to indicate which type of form you're transmitting. This is critical—if you're sending multiple types of returns, remember you need a separate Form 1096 for each type.

Step 5: Sign and Date

The form must be signed under penalties of perjury by an authorized person, with their title and the date. An authorized agent may sign on behalf of the filer if they have proper authority.

Step 6: Attach and Mail

Attach your information returns to Form 1096 (but don't staple them), and mail the complete package flat (not folded) via First-Class Mail to the appropriate IRS Service Center based on your location. Keep copies of everything for your records—generally for at least three years from the due date.

Common Mistakes and How to Avoid Them

Duplicate Filing

Sending the same information to the IRS multiple times is a frequent error. Before filing, verify you haven't already submitted the returns. Keep careful records of what you've sent to avoid this problem.

Mismatched Identification Information

One of the most common mistakes is having different filer names, addresses, or TINs on Form 1096 versus the attached information returns. Always double-check that these match exactly across all documents before mailing.

Missing Decimal Points

Dollar amounts must include decimal points to show cents. Writing "1230" instead of "1230.00" will cause processing errors. Every monetary amount should be entered with two decimal places.

Combining Multiple Form Types

Submitting two or more types of returns (for example, Forms 1099-INT and 1099-MISC) with a single Form 1096 is incorrect. Each type requires its own separate Form 1096 transmittal form. When in doubt, separate your forms by type and use multiple Form 1096 transmittals.

Using Incorrect Forms or Symbols

Don't use symbols like "#" in addresses (write "RT 2" not "Rt. #2"). Don't use prior year or subsequent year forms for current year reporting. Don't submit photocopies—only official IRS forms or approved substitutes that are machine-readable.

Stapling Forms Together

Paper clips and staples damage the scanning process. Send the entire page of forms together, but don't attach them with staples or clips.

Incomplete Forms

Leaving required boxes blank or failing to include all the information returns you're summarizing on Form 1096 leads to processing delays and potential penalties. Complete all applicable boxes and ensure your count matches the actual forms you're sending.

What Happens After You File

IRS Processing

Once the IRS receives your Form 1096 and accompanying information returns, they scan and process the documents into their systems. This information is used for tax administration, matching against taxpayers' individual returns, and compliance monitoring. The IRS compares the income reported on information returns against what recipients report on their personal tax returns.

Record Retention

You should keep copies of all filed information returns and Form 1096 for at least three years from the due date (four years for Form 1099-C or if backup withholding was imposed). You must be able to reconstruct this data if the IRS has questions.

Error Notices

If the IRS identifies problems with your filing—such as mismatched TINs, missing information, or discrepancies—they may send you notices requesting corrections or imposing penalties. They may also send notices to recipients if the reported information doesn't match their tax returns. Filing accurate, complete information the first time prevents these notices.

Information Sharing

The reported data may be shared with other government agencies including the Department of Justice, state and local tax authorities, and potentially other countries under tax treaties. This information helps enforce tax laws, combat fraud, and support various legal proceedings.

Correction Requirements

If you discover errors after filing, you're required to correct them promptly by submitting corrected forms with a new Form 1096. You must also provide corrected statements to recipients. The IRS encourages corrections even when you meet "reasonable cause" exceptions to penalties because it helps keep taxpayer records accurate.

Potential Audits or Inquiries

The IRS may follow up with questions about the information you reported, especially if there are discrepancies, unusual patterns, or missing information. Maintaining good records helps you respond to any inquiries efficiently.

FAQs

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

No. Form 1096 is only required for paper submissions. If you file your information returns electronically through the IRS FIRE System, you do not need to submit Form 1096. The electronic system captures the summary information automatically.

Q2: Can I use one Form 1096 for all my different types of information returns?

No. You must use a separate Form 1096 for each type of form. If you're filing Forms 1099-INT, 1099-DIV, and 1098, you need three separate Forms 1096—one transmitting your 1099-INTs, one for your 1099-DIVs, and one for your 1098s. However, you can submit original returns and corrected returns of the same type together using one Form 1096.

Q3: What penalties can I face for filing Form 1096 incorrectly or late?

Penalties for 2010 ranged from $15 to $50 per information return, depending on how late you filed. If you filed within 30 days after the due date, the penalty was $15 per return (maximum $75,000, or $25,000 for small businesses). Filing more than 30 days late but by August 1 resulted in $30 per return (maximum $150,000 or $50,000 for small businesses). Filing after August 1 or not filing at all carried a $50 per return penalty (maximum $250,000 or $100,000 for small businesses). Intentional disregard brought penalties of at least $100 per return with no maximum. Electronic filing violations carried $50 per return penalties.

Q4: I made a mistake on an information return I already filed. How do I correct it?

Prepare a new information return with the correct information and check the "CORRECTED" box at the top. Submit the corrected form with a new Form 1096 to your IRS Service Center as soon as possible. You must also furnish a corrected statement to the recipient showing the correction. Include only the corrected forms, not the original incorrect ones.

Q5: What if I don't have an Employer Identification Number (EIN)?

Individuals who are not operating a business or sole proprietors without an EIN should enter their Social Security Number (SSN) in Box 2 of Form 1096. However, sole proprietors and all other businesses must use an EIN in Box 1. You should never complete both Box 1 and Box 2—use only one, whichever is appropriate for your situation.

Q6: Can I download Form 1096 from the IRS website and print it?

While the form is available online, forms printed from the IRS website are not scannable and the IRS will not accept them. Using downloaded, non-scannable forms can result in penalties. You must use official pre-printed IRS forms or approved substitute forms that meet the machine-readable specifications in Publication 1179. Order official forms from the IRS or use professional tax software that produces approved substitute forms.

Q7: How long does it take the IRS to process Form 1096 and my information returns?

Processing times vary, but generally the IRS takes several weeks to months to scan and process paper information returns. Electronic filing is much faster. The IRS will contact you if they identify problems during processing. To check on your filing status or address questions, you can contact the IRS information reporting customer service site at 1-866-455-7438.

Sources

IRS Form 1096 (2010)
2010 General Instructions for Certain Information Returns
IRS About Form 1096