What Form 1096 Is For

Form 1096 is essentially a cover sheet or transmittal form that summarizes all the paper information returns you're sending to the Internal Revenue Service. Think of it as the envelope summary that tells the IRS what's inside the package.

If your business paid contractors, made interest or dividend payments, received mortgage interest, or conducted other transactions that require you to issue 1099 forms (or similar information returns like 1098, 1097, 3921, 3922, 5498, or W-2G), you must group those paper copies and send them to the IRS with Form 1096 as the transmittal document. It's like a table of contents that shows the IRS how many forms you're submitting, what types they are, and the total amounts reported.

Important to know: Form 1096 is only required if you're filing paper returns. If you file electronically (which is required if you have 250 or more of any one type of form), you don't need Form 1096 at all—the electronic system handles the transmittal automatically. IRS.gov

The form includes basic information: your business name, address, Employer Identification Number (EIN), the total number of forms you're sending, total federal income tax withheld, and total amounts reported. You must prepare a separate Form 1096 for each type of information return—for example, one for all your 1099-MISC forms, another for 1099-INT forms, and so on.

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

You would use Form 1096 in several situations:

Original Filing

Every time you file paper information returns for the 2017 tax year, you must include Form 1096 as the transmittal. This applies whether you're filing on time or late.

Late Filing

If you missed the original deadline, you still need to file Form 1096 with your late paper returns. Be aware that penalties may apply based on how late your filing is (see the Penalties section below). Filing late is better than not filing at all, as penalties increase the longer you wait. IRS.gov

Corrected/Amended Returns

If you discover errors in information returns you've already filed—such as wrong amounts, incorrect taxpayer identification numbers, or missing information—you must file corrected returns with a new Form 1096. The process involves:

• Checking the "CORRECTED" box on each corrected information return (1099, etc.)
• Preparing a new Form 1096 to transmit the corrected forms
• Including both corrected forms and any original forms you're filing for that tax year with the same Form 1096

According to IRS guidance, you can submit originals and corrections of the same type of return using one Form 1096, but you must use a separate Form 1096 for each different form type. There's no hard deadline for filing corrections, though the IRS prefers corrections within three years of the original filing date. IRS.gov

Key Rules for 2017

Several important rules governed Form 1096 and information return filing for tax year 2017:

Electronic Filing Threshold

If you filed 250 or more information returns of any single type, you were required to file electronically. For electronic filing, Form 1096 is not used. This threshold applies separately to each form type—for example, 250 Form 1099-MISC or 250 Form 1099-INT. IRS.gov

Paper Form Requirements

You could not use forms downloaded and printed from the IRS website for filing with the IRS (except for certain low-volume forms converted to online fillable PDFs). Forms had to be ordered from the IRS or printed by an approved vendor meeting IRS specifications because Copy A must be scannable by IRS machines. However, you could print Copy B from the IRS website to give to recipients.

One Form Type Per 1096

Each Form 1096 transmits only one type of information return. If you filed Forms 1099-MISC and 1099-INT, you needed two separate Forms 1096—one for each form type.

Matching Information Required

The filer's name, address, and Taxpayer Identification Number (TIN) on Form 1096 must exactly match the information in the upper left corner of all accompanying Forms 1097, 1098, 1099, 3921, 3922, 5498, or W-2G.

Mailing Requirements

All paper forms had to be sent flat (not folded), by First-Class Mail, to one of two IRS Service Centers—Austin, TX (for filers in the eastern and southern states) or Kansas City, MO (for filers in western and midwestern states). IRS.gov

No Photocopies

The IRS only accepted original IRS-issued forms or properly formatted substitute forms, not photocopies.

Step-by-Step (High Level)

Here's a simplified walkthrough of the Form 1096 filing process for 2017:

Step 1: Gather Your Information Returns

Collect all the paper Forms 1097, 1098, 1099, 3921, 3922, 5498, or W-2G that you've completed for the tax year. Make sure each form is accurate and complete, with all required boxes filled in correctly.

Step 2: Group Forms by Type

Sort your information returns by form number. All Forms 1099-MISC go in one group, all Forms 1099-INT in another, and so on. Each group needs its own Form 1096.

Step 3: Complete Form 1096 for Each Group

For each group, fill out a Form 1096:

• Enter your business name, address, and EIN (or SSN for sole proprietors without an EIN)
• Count the number of forms in the group (not pages) and enter in Box 3
• Calculate the total federal income tax withheld from all forms in the group (Box 4)
• Calculate the total amount reported in specific boxes as indicated in the form instructions (Box 5)
• Check the appropriate box to indicate which type of form you're transmitting
• Sign and date the form

Step 4: Verify Accuracy

Double-check that your filer information matches exactly on Form 1096 and all attached forms. Use proper decimal formatting (e.g., 1230.00), avoid special characters, and ensure no fields contain errors.

Step 5: Mail to the Correct IRS Service Center

Send each Form 1096 with its group of forms to the appropriate IRS address based on your location. Mail flat, not folded, using First-Class Mail. Keep copies for your records.

Step 6: Meet the Deadline

For most 2017 forms, the deadline was February 28, 2018 for paper filing. Forms 1099-MISC reporting nonemployee compensation in Box 7 had an earlier deadline of January 31, 2018. Forms 5498 series were due May 31, 2018. IRS.gov

Common Mistakes and How to Avoid Them

Mistake #1: Mixing Different Form Types with One Form 1096

Don't submit Forms 1099-MISC and 1099-INT together with one Form 1096. Each form type requires its own transmittal. Solution: Create separate Form 1096 for each form type.

Mistake #2: Information Doesn't Match

The filer name, address, and TIN on Form 1096 often don't match the information on the attached forms. Solution: Carefully verify that all identifying information is identical across all documents before mailing.

Mistake #3: Missing or Incorrect Decimal Points

Entering "1230" instead of "1230.00" in dollar amount boxes causes processing errors. Solution: Always include the decimal point and cents, even for whole dollar amounts.

Mistake #4: Using Special Characters

Including dollar signs ($), commas (,), asterisks (*), or ampersands (&) in money fields, or apostrophes in name fields. Solution: Enter only plain numbers and letters as specified in instructions.

Mistake #5: Printing Forms from IRS.gov

Downloading and printing Copy A from the IRS website results in forms that IRS machines cannot scan properly. Solution: Order official forms from the IRS or use an approved vendor that produces scannable forms. (You can print Copy B for recipients.)

Mistake #6: Stapling, Folding, or Using Photocopies

These physical alterations prevent proper scanning. Solution: Send forms flat in appropriate packaging, unstapled, and use only original IRS forms or approved substitutes.

Mistake #7: Duplicate Filing

Sending the same information returns multiple times. Solution: Keep careful records of what you've already filed to avoid duplicate submissions. IRS.gov

Mistake #8: Entering Zero or "None" Unnecessarily

Putting "0" or "None" in boxes when no entry is required. Solution: Leave boxes blank unless instructions specifically require a zero entry.

What Happens After You File

After you mail Form 1096 and your information returns to the IRS:

IRS Processing

The IRS scans and processes your paper forms using optical character recognition equipment. This is why clean, properly formatted forms are essential. The information enters the IRS's Information Returns Processing system.

Matching Process

The IRS matches the information on your forms (amounts, TINs, names) with the tax returns filed by the individuals or entities who received the payments. This helps identify unreported income and verify that taxpayers are correctly reporting all income on their personal or business tax returns.

No Immediate Confirmation

Unlike electronic filing, which provides immediate acknowledgment, paper filing doesn't generate an instant confirmation. Keep your copies and mailing receipts as proof of filing.

Potential IRS Correspondence

If the IRS identifies problems, you may receive notices such as:

• CP2100 or CP2100A notices for missing or incorrect taxpayer identification numbers
• Penalty notices if your forms were filed late, incorrectly, or incompletely
• Correction requests if information cannot be properly processed

Backup Withholding

If you've reported backup withholding on the information returns, the IRS will credit these amounts to the recipients' accounts, similar to wage withholding from Form W-2.

Three-Year Retention

You should keep copies of all information returns and Forms 1096 for at least three years from the due date (four years for Forms 1099-C or if backup withholding was imposed). You may need these records if questions arise or if you need to file corrections. IRS.gov

FAQs

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

No. Form 1096 is only required for paper filing. If you file your information returns electronically through the IRS FIRE system, the electronic submission process handles the transmittal automatically, and Form 1096 is not used.

Q2: What penalties can I face for late or incorrect filing?

For 2017 returns, penalties are tiered based on how late you file:

• $50 per form if filed within 30 days late (maximum $536,000, or $187,500 for small businesses)
• $100 per form if filed more than 30 days late but by August 1 (maximum $1,609,000, or $536,000 for small businesses)
• $260 per form if filed after August 1 or not at all (maximum $3,218,500, or $1,072,500 for small businesses)
• At least $530 per form with no maximum for intentional disregard of filing requirements

Small businesses (with average annual gross receipts of $5 million or less over the prior three years) have lower maximum penalties. IRS.gov

Q3: Can I handwrite corrections on Form 1096?

No. Do not make handwritten corrections, cross-outs, or use correction fluid on forms being filed with the IRS. If you discover an error before mailing, prepare a new, clean Form 1096 with the correct information. Copy A must be machine-readable and free of corrections.

Q4: Where do I mail Form 1096 for 2017 returns?

The mailing address depends on your location:

• Austin, TX 73301 for filers located in Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia, West Virginia, or outside the U.S.
• Kansas City, MO 64999 for filers in Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, and Wyoming. IRS.gov

Q5: Can I request an extension to file Form 1096 and information returns?

Yes. You can request an automatic 30-day extension by filing Form 8809 by the original due date. Under certain hardship conditions, you may apply for an additional 30-day extension. The extension request can be submitted on paper, by fax, or electronically through the FIRE system.

Q6: What if I filed a form with the wrong taxpayer identification number?

File a corrected information return with the correct TIN as soon as possible. Check the "CORRECTED" box on the information return, complete it with the correct information, and submit it with a new Form 1096. On Form 1096, you can note "Filed to Correct TIN" to explain the correction. The sooner you correct it, the lower any potential penalty.

Q7: Do I need to file Form 1096 for every recipient separately?

No. Form 1096 summarizes all information returns of one type that you're sending to the IRS. For example, if you're filing 50 Forms 1099-MISC for 50 different contractors, you prepare one Form 1096 that summarizes all 50 forms and transmit them together in one package.

Summary

Form 1096 is a critical but straightforward document that serves as the cover sheet for paper information returns filed with the IRS. For the 2017 tax year, understanding the proper filing procedures, deadlines, and common pitfalls can help you avoid penalties and ensure your business stays compliant. Remember that electronic filing eliminates the need for Form 1096 entirely, and if you meet the 250-form threshold for any form type, electronic filing becomes mandatory. Always keep accurate records, verify information carefully before submitting, and order proper IRS forms rather than printing them from the website. When in doubt, consult the official IRS instructions or a tax professional to ensure compliance.

All information sourced from official IRS publications including Form 1096 (2017) and the 2017 General Instructions for Certain Information Returns available at IRS.gov.