IRS Form 1096: When and How to Use It
Business owners are responsible for document flow and submission of correct information to the IRS. If you have not yet switched to a paperless format and filed your tax documents on paper, you definitely need to know how to use Form 1096.
What Is a 1096 Tax Form?
The 1096 Form IRS is a one-page document that
“accompanies” files you submit to the IRS (or any other organization with the
right to process them) in paper form. This blank is designed to be used with
seven other tax forms. A completed 1096 Form should be attached to each printed
information return. If you need to transfer 250 or more files, you must do it
electronically.
Who Has to File a 1096
Form?
The 1096 Tax Form was designed for
business owners who do not submit their annual information returns
electronically but send them by post in a printed form. It is most often used
as a cover sheet for Form 1099-MISC or W-2G. However, other versions of these
forms can also be included in this summary, as can the following forms:
● Form 1097;
● Form 1098;
● Form 3921;
● Form 3922;
● Form 5498.
In general, this document can be
used in conjunction with 34 form variations. True, you can’t list them all
together in one file. Each paper requires its own copy of the 1096 Form.
How to Fill Out Form 1096
The Form 1096 instructions are
relatively easy. It will probably take longer to fill it out for each document
you submit to the tax office in paper form. Be careful to avoid making a
mistake or typo and not specify the same file twice. Follow our instructions to
get it right:
1. First, you need to enter
personal data: your name, exact address of residence, contact telephone and/or
fax number, and e-mail.
2. Next, you need to provide
information about yourself as a business owner and employer. Enter your EIN and
SSN. Note that the field in the upper right corner should be left blank; an IRS
official fills it in.
3. On line 3, you need to
enter the total number of returns you submit with Form 1096.
4. Line 4 is required to
indicate the total amount of income tax. If it hasn’t been held yet, put “0”.
5. On line 5, enter the
amount you report with this particular summary.
6. The next block, line 6, is
a list of forms you can submit. Choose only one option out of the 34 offered.
Use multiple Form 1096s if you need to submit several documents at once.
7. Indicate the date of
filling out the file and your title and sign.
When is Form 1096 due? Documents
for the current tax year must be submitted by February 28th, 2023. Please note
that Form 1096 is a cover sheet and is only submitted as an attachment to the
main documents. Depending on your business’ size, you might need to file dozens
or even hundreds of information returns. Using specialized form-filling
software like PDFLiner greatly simplifies and speeds up the whole process and
minimizes the chance of errors.
Tips and Warnings for 1096
Tax Form
Despite the apparent simplicity of
filling out, there are several Form 1096 features that you should be aware of:
● The IRS has a threshold of
249 forms that the service can process in a paper (printed) form. If you need
to submit 250 or more documents, you will have to do so electronically. In this
case, Form 1096 is not required. If you still send more papers than allowed,
your request will not be processed. Moreover, you will be fined for
non-compliance with the limit.
● Form 1096 can only be sent
as an attachment to the main package of documents. By itself, this form is of
no value because it does not contain the required information regarding income
and payments for the past tax year.
● Keep completed forms for
at least four years; it is an official IRS requirement. Since you fill
documents for the past reporting period and it might take time to process them
and identify inaccuracies, if errors are found, the IRS will ask you to review
the papers you have.
● Those entrepreneurs who do
business abroad or are not US citizens should submit a special application to
the Department of the Treasury.
Conclusion
Each business filing the listed
Forms on papers should accompany it with Form 1096. The IRS provides three
addresses where you can send all of them, depending on the state in which your
business is located. Check the official website to find the correct address.
Based on article by pdfliner.com
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