1. What the Form Is For

Form 1096 serves as a transmittal cover sheet that accompanies paper information returns you send to the IRS. Think of it as the envelope summary that tells the IRS what's inside your package of tax forms.

Specifically, Form 1096 is used to transmit paper copies of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G to the Internal Revenue Service. These information returns report various types of income paid to individuals and businesses—from interest and dividends to mortgage interest, retirement distributions, and gambling winnings.

Key Point: Form 1096 is only for paper filing. If you file electronically through the IRS Filing Information Returns Electronically (FIRE) system or the Information Reporting Intake System (IRIS), you don't need Form 1096 at all. The electronic systems handle the transmittal automatically.

On Form 1096, you'll report summary information including your business identification details, the total number of forms you're submitting, the total federal income tax withheld, and the total dollar amounts reported across all the forms in that batch. You must use a separate Form 1096 for each type of information return you're filing—for example, one Form 1096 for all your Forms 1099-INT and a different Form 1096 for all your Forms 1099-MISC.

IRS.gov - About Form 1096

2. When You'd Use It (Including Late and Amended Filings)

Standard Filing Deadlines for 2023 Returns:

• Most information returns (Forms 1097, 1098, 1099, 3921, 3922, W-2G): February 28, 2024 for paper filing, or April 1, 2024 if filing electronically
• Form 1099-NEC (reporting nonemployee compensation): January 31, 2024 (both paper and electronic)
• Forms 5498 (IRA contributions): May 31, 2024

Late Filing

If you miss the deadline, you should file as soon as possible. The penalty structure is tiered based on how late you file:

• File within 30 days: $60 per return (up to $630,500 total, or $220,500 for small businesses)
• File 31 days to August 1: $120 per return (up to $1,891,500 total, or $630,500 for small businesses)
• File after August 1 or not at all: $310 per return (up to $3,783,000 total, or $1,261,000 for small businesses)

Amended/Corrected Returns

If you discover errors after filing, you must file corrected returns as soon as possible. Good news: you can submit both original and corrected returns of the same type using a single Form 1096. Simply check the "CORRECTED" box on the individual information returns and transmit them with Form 1096. The sooner you correct mistakes, the lower your potential penalties—corrections filed by August 1 may qualify for reduced penalties or exemption under the de minimis rule.

IRS.gov - 2023 General Instructions for Certain Information Returns

3. Key Rules for 2023

Electronic Filing Threshold

For 2023 returns, you must file electronically if you have 250 or more information returns of any single type. Starting with 2024 returns (filed in 2025), this threshold drops to just 10 or more returns. Electronic filing eliminates the need for Form 1096 entirely.

Use Official Scannable Forms

A critical rule: You cannot download Form 1096 from IRS.gov, print it on your office printer, and mail it to the IRS. The form must be the official red scannable version ordered from the IRS. Printing the form yourself and filing it can result in penalties because the IRS cannot scan it properly. Order official forms at IRS.gov/OrderForms.

Matching Requirements

Your name and taxpayer identification number (TIN) on Form 1096 must exactly match what appears on your quarterly employment tax returns (Forms 941, 943, 944) and on the information returns you're transmitting. Mismatches trigger penalties. Don't use your payroll service's or agent's information—use your own business details.

Separate Form 1096 for Each Form Type

You must group information returns by type and use a separate Form 1096 for each group. For example, if you're filing both Forms 1098 (mortgage interest) and 1099-INT (interest income), you need two Forms 1096—one transmitting the 1098s and another transmitting the 1099-INTs.

Reasonable Cause Exception

If you can demonstrate that your failure to file was due to reasonable cause (an event beyond your control) and not willful neglect, penalties may be waived. Document your reasons thoroughly.

IRS.gov - 2023 General Instructions for Certain Information Returns

4. Step-by-Step Filing (High Level)

Step 1: Determine if You Need to File

Count your information returns by type. If you have 250 or more of any single form type for 2023, you must file electronically and skip Form 1096 entirely.

Step 2: Order Official Forms

If filing on paper (fewer than 250 returns), order official scannable Form 1096 and the appropriate information returns from IRS.gov/OrderForms. Allow time for delivery.

Step 3: Complete Your Information Returns

Fill out each Form 1099, 1098, or other information return completely and accurately. These are the forms that report specific payments to individual recipients. Keep Copy A for the IRS, provide Copy B to recipients, and retain copies for your records.

Step 4: Group Returns by Type

Organize all IRS copies (Copy A) by form number. All 1099-INTs together, all 1099-MISCs together, and so on.

Step 5: Complete Form 1096 for Each Group

For each group of forms:

• Enter your business name, address, and EIN or SSN
• Box 3: Count the number of forms (not pages) in that group
• Box 4: Total the federal income tax withheld shown on those forms
• Box 5: Total the payment amounts from specified boxes (varies by form type)
• Box 6: Check the box indicating which form type you're transmitting
• Sign and date the form

Step 6: Mail to the Correct IRS Address

Check the IRS instructions for your state's mailing address. Different regions send forms to different IRS processing centers (Austin, TX; Kansas City, MO; or Ogden, UT). Don't fold the forms—send in a flat mailer.

Step 7: Keep Records

Retain copies of all filed forms for at least 3 years (4 years for Form 1099-C). You may need them if the IRS has questions or if you discover errors.

IRS.gov - Form 1096

5. Common Mistakes and How to Avoid Them

Mistake #1: Using Downloaded/Printed Forms

The IRS explicitly warns that printing Form 1096 from their website and filing it can result in penalties. The forms won't scan properly.
Solution: Order official red scannable forms from the IRS well before the deadline.

Mistake #2: Submitting Multiple Form Types with One Form 1096

Many filers try to use a single Form 1096 to transmit different types of information returns (like mixing 1099-INTs with 1099-MISCs).
Solution: Separate your returns by type and use a different Form 1096 for each type.

Mistake #3: Name/TIN Mismatch

Using inconsistent business names or an incorrect EIN between your Form 1096, your information returns, and your payroll tax forms triggers IRS notices and penalties.
Solution: Double-check that your business name and EIN are identical across all forms.

Mistake #4: Incorrect Totals in Boxes 3-5

Simple math errors in counting forms or summing dollar amounts are common.
Solution: Use a spreadsheet to calculate totals before transferring them to Form 1096. Count completed forms, not blank ones.

Mistake #5: Missing the Electronic Filing Threshold

Filing 250+ returns on paper when electronic filing is mandatory results in penalties.
Solution: Count your returns early in the tax year. If you're approaching 250, set up for e-filing through FIRE or IRIS.

Mistake #6: Forgetting to Sign Form 1096

An unsigned Form 1096 is incomplete.
Solution: Before mailing, verify you've signed, dated, and provided contact information on each Form 1096.

Mistake #7: Wrong Mailing Address

Sending forms to the wrong IRS center delays processing.
Solution: Verify your state's correct mailing address in the current instructions—addresses occasionally change.

IRS.gov - 2023 General Instructions for Certain Information Returns

6. What Happens After You File

Immediate Responsibilities

Once you mail Form 1096 with your information returns, the IRS receives and processes them. Your immediate responsibilities include:

• Keeping copies or reconstructible data for at least 3 years (4 years for Form 1099-C reporting canceled debt)
• Ensuring you've provided recipient copies (Copy B) to all payees by the required deadline

IRS Processing

The IRS scans and processes your forms, matching the information against recipient tax returns. This matching process helps the IRS verify that taxpayers report all their income. Processing typically takes several weeks to months.

Potential Notices

You may receive IRS notices if:

• CP2100/CP2100A notices: TIN/name mismatches detected. You'll need to solicit correct information from recipients and may need to begin backup withholding.
• Penalty notices: If the IRS identifies late filing, incorrect information, or missing forms.
• Correction requests: If forms are unreadable or incomplete.

Correcting Errors

If you discover mistakes after filing:

• Prepare corrected information returns with the "CORRECTED" box checked
• File them with a new Form 1096 as soon as possible
  The earlier you correct (ideally by August 1), the lower your potential penalties

Record Retention

Continue to maintain your records. The IRS can review information returns for up to 3 years after filing, and in some cases longer if fraud or substantial underreporting is suspected.

No News Is Good News

If you don't receive any IRS notices within 3-6 months, your filing was likely processed successfully. However, the IRS can still contact you later if matching issues arise when taxpayers file their returns.

IRS.gov - 2023 General Instructions for Certain Information Returns

7. Frequently Asked Questions (FAQs)

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

No. Form 1096 is only required for paper filing. If you e-file through FIRE or IRIS, the electronic system automatically provides the transmittal information.

Q2: What if I only have 5 information returns to file—can I skip Form 1096?

No. If you're filing any information returns on paper, regardless of quantity, you must include a Form 1096 as the transmittal. However, if you have fewer than 250 returns, paper filing is permitted (though electronic filing is encouraged).

Q3: Can I submit a corrected Form 1096 after the original deadline?

Yes. If you discover errors in your original Form 1096 (such as incorrect totals), file corrected information returns with a new Form 1096 as soon as possible. Mark the individual information returns as "CORRECTED" but don't check a corrected box on Form 1096 itself—just submit accurate totals reflecting both original and corrected forms.

Q4: What's the difference between a "small business" and regular business for penalty purposes?

A small business has average annual gross receipts of $5 million or less for the three most recent tax years. Small businesses face lower maximum penalties—for example, $220,500 versus $630,500 if you file correctly within 30 days of the deadline.

Q5: How do I request an extension for filing Form 1096?

File Form 8809 (Application for Extension of Time to File Information Returns) by the original due date. You can get an automatic 30-day extension, and under certain hardship conditions, an additional 30 days may be granted. Note that no automatic extension is available for Form 1099-NEC.

Q6: What if my business address changed after I filed—do I need to refile Form 1096?

If your address changed before filing, use your new address. If it changed after filing correctly, you don't need to refile solely for an address change. However, update your address with the IRS using Form 8822-B to ensure future correspondence reaches you.

Q7: Can I staple Form 1096 to my information returns?

No. Do not staple, paper clip, or bind Form 1096 to the information returns. Keep them together in a flat mailer, but loose. Staples damage scanning equipment and can delay processing or result in penalties.

IRS.gov - About Form 1096

Additional Resources

For more information about Form 1096 and information return filing:

• Form 1096 and instructions: IRS.gov/Form1096
• General Instructions for Certain Information Returns: IRS.gov/1099GeneralInstructions
• Order official IRS forms: IRS.gov/OrderForms
• Electronic filing information: IRS.gov/FIRE or IRS.gov/IRIS