Are you looking [how to fill out 1096 form?](https://www.sageonlinesolution.com/sage-50-upgrade-usa/) Filing the IRS Form 1096 Annual Summary and Transmittal of U.S. Information Returns is an essential task for any business that issues paper information returns like Forms 1099 or W-2G. This one-page summary acts as a cover sheet, strengthening the totals from all the individual forms being submitted to the IRS. Accurately completing the 1096 form is crucial, as errors can lead to delays or heavy penalties.

With careful attention to detail and a clear understanding of the instructions, you can ensure your Form 1096 is filled out correctly, making your annual tax reporting process smoother. This guide will walk you through the proper procedure of filing the 1096 form without any problem.

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How to Fill Out 1096 Form with IRS Strict Instructions?

To avoid the costly penalties, you must follow the IRS regulations in filing the 1096 form. It includes the Form 1096, which requires using an official, scannable red-ink version from the IRS and submitting a separate form for each type of information return being filed by paper. Electronic filing eliminates the need for Form 1096 entirely.

Here is the breakdown of mandatory requirements for filing Form 1096:

1. You must obtain the official scannable red-ink Form 1096 from the IRS, either by calling their helpline number. The IRS uses automated scanning equipment, and printed PDFs from the website are not compatible and may result in penalties.
2. Form 1096 is a transmittal document used exclusively for paper submissions of information returns to the IRS. Remember, don't use it if you are filing the form electronically.
3. Each Form 1096 can only accompany one type of information return, like all Forms 1099-NEC go with one Form 1096, and all the Forms 1099-MISC require a separate Form 1096.
4. All information on Form 1096, filer name, address, Taxpayer Identification Number, and totals must exactly match the data on the accompanying information returns to avoid processing delays and penalties.
5. An authorized person must sign and date the form, including their title, to certify the accuracy of the information.
6. For more information about the penalties, you can see Part O in the current General Instructions for Certain Information Returns, available on the IRS website.
7. You should not print and file the 1096 form downloaded from the website, as you may face costly penalties for filing with the IRS information return forms that can't be scanned.
8. For getting more details about printing these tax forms, see the IRS publications like 1141, 1167, and 1179.

Why & How to Fill Out 1096 Form?

The Form 1096 acts as a summary cover sheet for paper-filed U.S. information returns, such as Forms 1099, 1098, and W-2G. You only need it if you are submitting these forms to the IRS by mail; this is not available for electronic filing.

Why do you need Form 1096?

Look at the points below to understand the primary purpose of the 1096 form:

• Summarize Data: The 1096 form consolidates the key information of total payments, total tax withheld, and the number of forms from all accompanying forms of a single type, and provides the IRS with a total view.
• Ensure compliance: It helps the IRS verify that the information submitted on individual forms matches the totals reported on the summary, ensuring accuracy and completeness of data.
• Act as a transmittal: It acts as a cover page, identifying the type of information returns enclosed and the filer's information for proper processing.
• Organize submissions: The IRS requires a separate Form 1096 for each distinct type of information return, like one for all Forms 1099-NEC and a separate one for all Forms 1099-MISC.

Understand How to Fill Out 1096 Form?

Now that you have understood what Form 1096 is and what information you need to include with it, let's quickly learn how to smoothly fill out Form 1096. Remember, 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.

1. Filer's Name: Let's begin the process, enter your business name, and if you don't have a business name, you can enter your name.
2. Your Address: In the next section, you need to input your address, like your street name, city or town name, state or province, country, and ZIP code or foreign postal code.
3. Person Details: Here, enter your full name or the person at your company who manages your payroll and tax operations.
4. Business's Contact Info: Now, you need to enter your valid phone number, active email address, and the fax number if you have one.
5. Boxes 1 or 2: The employer identification number EIN and social security number SSN. If you have incorporated a business with an EIN, enter your EIN. If you don't have an incorporated business and don't have an EIN, then enter your SSN.
6. Box 3: Afterward, you need to enter the total number of forms like 1099, 1098, 1099-DIV, and others that you are going to attach to the form 1096.
7. Box 4: In box 4, if you withheld federal income taxes on the information return(s) you're filing, add up the total amount and include it here.
8. Box 5: Done with the above, add up the total payments made on the information returns you're filing with Form 1096 and list the total here.
9. Box 6: In the last, choose the information form type. Each 1096 form can only be filed with one type of information return, so you need to check the box next to the type of information return you're filing here. The most common type of information return is 1099 form.

Wrapping Up!

Hopefully, you have understood how to fill out 1096 form efficiently. Filing the IRS Form 1096 and managing various 1099 forms can be challenging, especially with the ever-changing IRS rules and regulations. To correctly fill out the IRS Form 1096 Annual Summary and Transmittal of U.S. Information Returns, you must ensure accuracy to avoid processing delays or costly penalties. The form summarizes all the information returns like Forms 1099, 1098, etc.

The IRS uses the official red-ink form for scanning, and any non-standard substitute will likely result in a rejected submission or lead to penalties. By following the above blog, you can easily file the Form 1096 without any penalties or mistakes in the submission.