Form 1096: what is a 1096 IRS form used for and how to complete it

What is Form 1096?

First things first, Form 1096 is a transmittal form that is used to send other information returns to the IRS each year. Think of it like a cover letter for your other information returns (like Form 1099), explaining how many forms you filed (in box 3), the total federal income tax withheld (in box 4), and the total payment amount reported (in box 5).

Keep in mind that Form 1096 is only required if you’re paper filing, but is not required for electronic filing. If paper filing, you must attach all information returns, such as Form 1099, 1098, 1097, 3921, 5498, and W-2G to it.

Form 1096 looks like this:

Note: official 1096 forms are red and are pre-printed by the IRS. Employers (or anyone) can order 1096 forms from the IRS here.

Now that we better understand the purpose of Form 1096, let’s find out who needs to complete it.

Who needs to file Form 1096 and why?

If you file your 1099 forms electronically, you do not need to complete or file Form 1096. That’s because the electronic filing system automatically compiles and transmits the summary information to the IRS for you.

However, if you’re filing 1099 Forms by paper (AKA mailing them to the IRS), then you’ll need to order 1096 forms, fill them out, and send them along to Uncle Sam with your information returns.

Anyone who hires contractors and pays each one $600 or more during the year must file a Form 1099 on their behalf. If paper filing, these employers must also file Form 1096.

Next, let’s find out more about what needs to be included when filling this out.

What must be included in Form 1096?

Form 1096 must include information about your business, like your business name, address, contact person, contact information, and an ID number (EIN or SSN). It also requires information like the number of forms, total federal income tax withheld, and total amount reported with Form 1096.

In the next section, we’ll explain each of these items individually and how to fill each of them out.

How to fill out Form 1096

Now that we understand what Form 1096 is and what information you need to include with it, let’s explain how to fill it out. Note that each Form 1096 can only be filed with one type of information return, so if you file multiple different types of information returns, you’ll need to file a separate Form 1096 alongside each type.

• FILER’s name: this is your business name, or your name if you don’t have a business name.
• Your address: input your address, including your street name, city or town, state or province, country, and ZIP code or foreign postal code.
• Name of person to contact: this is your name or the person at your company who handles payroll, taxes, etc.
• Your business’s contact info: fill in your telephone number, email address, and fax number (if you have one).

• Boxes 1 or 2 – Employer Identification Number (EIN) or Social Security Number (SSN): if your business is incorporated and has an EIN, fill in your EIN. If you are not incorporated and don’t have an EIN, fill in your SSN.

• Box 3 – Total number of forms: enter the total number of forms, such as Form 1099, 1098, 1099-DIV, etc that you are attaching to this Form 1096.

• Box 4 – Federal income tax withheld: if you withheld federal income taxes on the information return(s) you’re filing, add up the total amount and include it here.

• Box 5 – Total amount reported with this Form 1096: add up the total payments made on the information returns you’re filing with Form 1096 and list the total here.

• Box 6 – Select the information form type: each Form 1096 can only be filed with one type of information return (and not multiple), so check the box next to the type of information return you’re filing here. The most common type of information return is Form 1099.

When is Form 1096 form due?

Form 1096 is due annually, and the filing deadline is January 31st of each year following the year being reported on. The information returns, like Form 1099, that you file alongside Form 1096, is also due by January 31st of each year.

What if I miss the deadline and file late?

If you accidentally file late, you should file right away to minimize any potential penalties which you may incur. The IRS charges penalties in three different stages based on how late the return is filed. These penalties are…

• $50 per return for returns filed within 30 days of the deadline.
• $110 per return for returns filed later than 30 days after the deadline but before August 1st.
• $280 per return for returns filed after August 1st

Take a look at our 2024 payroll tax filing deadlines and penalties article to learn more.

Can I file an extension?

You can file for a 30-day extension by using Form 8809 – Application for Extension of Time to File Information Returns. Please don’t get mad at the messenger, but keep in mind that requests are not automatically approved. If it is approved by the IRS, the extension will allow only a maximum of 30 days from the original due date. The request must be postmarked no later than January 31, but preferably as soon as you are aware you will need an extension.