Form 1096 (2010) Checklist: Paper Transmittal for Information Returns
Purpose
Form 1096 transmits paper copies of information returns (Forms 1098, 1099 series, 3921, 3922, 5498, and W-2G) to the IRS. For 2010, filers with 250 or more returns of any single type must file electronically through the FIRE system. Paper filing with Form 1096 is permitted only for those filing fewer than 250 returns of each form type.
Filing Steps
Step 1: Verify Paper Filing Eligibility
Confirm you are filing fewer than 250 information returns of any single form type. If you must file 250 or more of one form type, electronic filing through FIRE is mandatory—Form 1096 cannot be used. The 250-return threshold applies separately to each form type.
Step 2: Group Returns by Form Type
Organize information returns by form number (e.g., all 1098s together, all 1099-DIVs together). Each form type requires a separate Form 1096 transmittal. Do not mix different form types on a single Form 1096.
Step 3: Enter Your Taxpayer Identification Number
Complete Box 1 (EIN) or Box 2 (SSN)—not both. Enter your EIN in Box 1 if you are a business entity or sole proprietor with an EIN. Enter your SSN in Box 2 only if you are an individual not in a trade or business, or a sole proprietor without an EIN. Use the same TIN that appears on the accompanying information returns.
Step 4: Verify Preaddressed Form Information
If you received a preaddressed Form 1096 from the IRS, confirm that all preprinted filer name, address, and TIN information is correct. Make corrections directly on the form if needed before submitting.
Step 5: Count and Enter Total Forms
In Box 3, enter the total number of correctly completed forms being transmitted. Count individual forms, not pages. Exclude blank forms, voided forms, and the Form 1096 itself. For example, if one page contains three-to-a-page forms with only two correctly completed, enter “2.”
Step 6: Calculate Federal Income Tax Withheld
In Box 4, enter the total federal income tax withheld from all forms in this batch. Sum the amounts from the appropriate boxes on each form type. Consult the 2010 General Instructions for Certain Information Returns to identify the boxes that report withholding for your specific form type.
Step 7: Calculate Total Amount Reported
In Box 5, enter the sum of amounts from designated boxes on the forms being transmitted. Each form type has specific boxes that need to be included. For example: Form 1099-DIV uses Boxes 1a, 2a, 3, 8, and 9; Form 1099-INT uses Boxes 1, 3, and 8; and Form 1099-H uses Box 1 only. Leave Box 5 blank for Forms 1099-A and 1099-G (no aggregation required).
Step 8: Mark Final Return if Applicable
Check the “final return” box only if you will never file any of these information return types (1098, 1099, 3921, 3922, 5498, W-2G) in the future—either on paper or electronically. This indicates you are permanently ceasing the activity requiring information return filing.
Step 9: File by the Deadline
Submit by February 28, 2011, for Forms 1098, 1099 series (except 5498 variants), 3921, 3922, and W-2G. Submit by May 31, 2011, for Forms 5498, 5498-ESA, and 5498-SA. Timely mailing meets the filing requirement if properly addressed and mailed by the due date.
Step 10: Send to the Correct IRS Service Center
Use the correct address based on your location. Filers 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, or West Virginia mail to: Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301.
All other states and U.S. territories mail to: Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999. Non-U.S. filers use the Austin address.
Step 11: Sign and Date the Form
Under penalties of perjury, certify that you have examined the form and accompanying documents and that they are true, correct, and complete. Print your title, provide your signature, and date the form. An authorized agent may sign on your behalf with proper authority.
Step 12: Submit Original Form Only
Mail the original signed Form 1096 with your information returns. The IRS does not accept photocopies of Form 1096. Use First-Class Mail for postal submissions. If mailing multiple packages, number them consecutively and include Form 1096 in the first package.
Key 2010 Requirements
Electronic Filing Threshold
The mandatory electronic filing threshold is 250 or more returns of any single form type. This applies separately to each form type and individually to original returns and corrections. Filers who meet this threshold must use the FIRE system in accordance with the specifications outlined in Publication 1220. Paper filers below this threshold should still use Form 1096 for transmittal.
Form Type Specifications
Form 1096 is strictly for paper submission only and must not be used for electronic transmittals. The FIRE system does not require Form 1096. One Form 1096 must accompany each distinct form type being filed. Do not combine multiple form types on a single Form 1096 transmittal.
Box 5 Aggregation Rules
Each information return type has specific box combinations, with Box 5 totaling the amount. Common examples include: Form 1098 (Boxes 1, 2, and 4), Form 1099-C (Boxes 1a, 2a, 3, 8, and 9), Form 1099-MISC (Boxes 1, 2, 3, 5, 6, 7, 8, 10, 13, and 14), and Form 1099-H (Box 1 only). Always refer to the 2010 General Instructions for Certain Information. Determine the correct boxes for your form type.
Form 1099-H Reporting
Form 1099-H reports Health Coverage Tax Credit (HCTC) Advance Payments to eligible trade adjustment assistance (TAA), Reemployment TAA, or Pension Benefit Guaranty Corporation (PBGC) recipients. Box 1 shows total advance payments received (cannot exceed 80% of health insurance premiums). Box 2 shows the number of months payments were received (maximum 12 months). Boxes 3 through 14 show monthly payment breakdowns. This form is unrelated to mortgage interest credits.
Service Center Addresses
All paper information returns filed in 2010 are processed at only two IRS Service Centers: Austin, TX, and Kansas City, MO. The filing location is determined by your principal business location, office, agency, or legal residence. Use the appropriate address as specified in the instructions to ensure proper processing.
Waiver Process
Filers required to file electronically may request a hardship waiver using Form 8508, which must be submitted at least 45 days before the due date. Approved waivers allow paper filing without penalty. Waivers must be requested annually and apply separately to original returns and corrections. Keep approved waivers in your records; do not send copies to the service center.
Extension of Time
Request an automatic 30-day extension by filing Form 8809 by the original due date. No signature or explanation is required for the first 30-day extension. Under certain hardship conditions, you may apply for an additional 30-day extension. Requests for more than 10 filers must be submitted online or electronically through the FIRE system.
Penalties
Failure to file electronically when required (without an approved waiver) subjects filers to a $50 penalty per return. This penalty applies separately to original returns and corrections. You may file up to 250 returns on paper without electronic filing penalties, but returns exceeding this threshold must be filed electronically to avoid penalties.
Statement to Recipients
For most forms, furnish statements to recipients by January 31, 2011. Exceptions include Form 1099-B, 1099-S, and 1099-MISC (if reporting amounts in Boxes 8 or 14), which must be furnished by February 15, 2011. Forms 5498, 5498-ESA, and 5498-SA statements must be furnished by May 31, 2011, to accommodate carryback contributions made through the tax filing deadline.
Quality Control
Review all data carefully before filing to prevent erroneous notices. Type entries using black ink in 12-point Courier font if possible. Handwritten forms must be completely legible with block printing (not script). Ensure all dollar amounts are entered without dollar signs but with commas and decimal points. Keep copies of filed information returns for at least three years from the due date.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
