What IRS Form 1096 (2018) Is For
Form 1096, officially titled "Annual Summary and Transmittal of U.S. Information Returns," serves as a summary document that accompanies paper information returns submitted to the Internal Revenue Service. It serves as a transmittal form that summarizes the totals from multiple information returns, such as Form 1099-MISC, Form 1098, and Form 5498, ensuring that federal income tax withheld and other payments are accurately reported. This form is typically used by small business owners, corporations, and independent contractors who file paper forms instead of submitting them electronically through the IRS FIRE system.
When You’d Use IRS Form 1096 (2018)
You’ll use this form whenever you are transmitting paper-based information returns for the calendar year. Each instance requires one properly completed Form 1096 per return type:
- Independent Contractor Payments: You must file this form when reporting nonemployee compensation payments made to independent contractors using Form 1099-MISC.
- Mortgage Interest Reporting: You are required to include this form when submitting Form 1098 to report mortgage interest, student loan interest, or tuition payments made during the tax year.
- Stock Acquired or Sold: You must use this form when reporting employee stock purchase plan or incentive stock option transactions through Forms 3921 and 3922.
- IRA and HSA Contributions: You are required to file this form when reporting contributions made to an individual retirement account (IRA) or health savings account (HSA) using Form 5498.
- Late or Corrected Returns: You must include this form when submitting amended or corrected information returns that are filed after the original due date.
If you are unable to pay your full tax liability when filing, consider exploring payment plan options for tax filings.
Key Rules or Details for Tax Year 2018
Several key filing rules applied to IRS Form 1096 (2018), and each must be followed carefully to ensure compliance with the Internal Revenue Service:
- Separate Form for Each Type: You must file one Form 1096 for each type of information return, such as Form 1099 or Form 1098, because combining multiple types on one form is not permitted.
- Electronic Filing Threshold: You are required to file electronically if you have 250 or more information returns of the same type during the calendar year.
- Correct Identification Numbers: Ensure that your Employer Identification Number or Social Security Number matches the corresponding information on the returns precisely to avoid processing delays.
- Official Red-Ink Forms Only: You must use official red-ink scannable forms provided by the IRS, as photocopies or printed versions are not accepted and may result in penalties.
- Deadline Compliance: You must meet the appropriate due dates, which are February 28 for paper submissions and April 1 for electronic filings, while Form 1099-MISC with nonemployee compensation is due January 31.
If you face penalties due to errors or late submission, our penalty abatement services may help reduce or eliminate these fees.
Step-by-Step (High Level)
Follow these high-level steps to accurately complete and file IRS Form 1096 (2018) for your business or individual reporting:
- Collect All Information Returns: Gather every applicable form, including Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, before beginning the filing process.
- Order Official Paper Forms: Obtain official scannable paper forms directly from the IRS website or by mail to ensure they meet the agency’s processing requirements.
- Complete Filer Information: Enter your legal business name, mailing address, Employer Identification Number, contact person, and fax number as required in the top section of the form.
- Fill the Summary Boxes: Record the total number of information returns, total federal income tax withheld, and total amount reported across all attached forms in their corresponding boxes.
- Check the Box for Form Type: Mark the box that identifies which specific information return (such as 1099-MISC or 1098) you are transmitting with this Form 1096.
- Sign and Date the Form: Have an authorized person sign, date, and include their title to certify that the information provided is complete and accurate.
- Mail to the Correct Address: Send the completed form and all attached returns to the appropriate IRS address listed in the filing instructions before the due date.
You may also authorize a tax professional to handle your filings through our IRS Power of Attorney guidance.
Common Mistakes and How to Avoid Them
Avoiding common filing errors is essential to ensure that IRS Form 1096 (2018) is processed accurately and without penalties. The following are frequent mistakes and the proper ways to prevent them:
- Using the Wrong Year Form: Always verify that you are using the correct tax year version of Form 1096 before submission to prevent automatic rejection by the IRS.
- Mixing Different Types of Forms: File a separate Form 1096 for each type of information return to maintain transparent reporting and compliance with filing requirements.
- Incorrect Box Entries: Enter dollar amounts with proper decimal points and leave boxes blank only when instructed to avoid errors in total calculations.
- Mismatched Identification Numbers: Ensure that your Employer Identification Number or Social Security Number exactly matches all attached information returns to prevent processing delays.
- Filing Non-Scannable Forms: Use only the official red-ink scannable forms provided by the IRS; printing copies from unofficial sources may result in penalties.
- Physical Damage to Forms: Do not staple, tape, or fold your paper forms to avoid damage that interferes with IRS optical scanning systems.
- Late Submission: File all required information returns and the corresponding Form 1096 before the due date to prevent late penalties that can accumulate quickly.
For post-filing verification or to check your submission status, use our IRS Account Transcript Service.
What Happens After You File
After you file IRS Form 1096 (2018), the Internal Revenue Service processes your submission by scanning and recording the data from your attached information returns. The IRS then matches the taxpayer identification numbers and reported income with recipient records to verify accuracy and compliance. If discrepancies are detected, the IRS may issue notices requesting clarification or correction. Small business owners and other taxpayers should retain copies of all forms, receipts, and correspondence for at least four years to provide documentation in case questions or audits arise in the future.
To better understand next steps if you receive an IRS notice, see our IRS collection process overview.
FAQs
What should I know before filing Form 1096 (2018)?
Before filing Form 1096, you must ensure that every attached information return is accurate and complete. Review totals, identification numbers, and addresses carefully to prevent errors that could delay your tax returns or trigger notices from the IRS.
What is the purpose of the annual summary on Form 1096?
The annual summary on Form 1096 serves as a transmittal document that summarizes the totals from all paper information returns submitted to the IRS. It consolidates key figures such as the total amount reported and federal income tax withheld, ensuring that the IRS accurately records each filer’s submitted data for that tax year.
Can I file electronically instead of mailing the paper form?
Yes, you may choose to file electronically through the IRS FIRE system, which is faster and more secure than mailing paper forms. Filing electronically also minimizes data entry errors and provides immediate confirmation of receipt, which benefits taxpayers and small business owners using modern tax preparation software.
What are the due dates for filing Form 1096 (2018)?
The due date for filing Form 1096 depends on the type of information return you are transmitting. Most paper forms must be submitted by February 28, while electronic filings are due by April 1.
