Everything You Need to Know About Form 1096

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November 11, 2020
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What is Form 1096 Form

Annual Summary and Transmittal of U.S. Information Returns, also known as Form 1096, is IRS' Form used to summarize certain types of information returns. You should use it to report types of transactions to the IRS and other parties like someone who gained income from the transaction. If you hired an independent contractor and paid them over $600, you will need to collect and file Form 1099-MISC to report income and return information to the IRS.

The purpose of Form 1096 is to reflect the total information on all the 1099-MISC you have previously sent to contractors.

You are required to send the Form 1096 to the IRS if you are filing information returns in a paper form, but you don't need to send it to recipients, in this case, the contractors. If you are filing electronically, you don't need to submit Form 1096. However, if you have 250+ of any type of

information return, you must submit electronically for these types of returns.

If you are using Deel, you don't need to submit Form 1096, as we are enabling you to file 1099-MISC electronically.

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Form 1096 Filing Deadlines

The deadline to file most information returns, including Form 1096, is February 28th of the year after the tax year you are reporting. If you file electronically, the deadline is March 31st. By that time, you should have collected all 1099-MISC and sent copies to your contractors.

When to File a 1096 Form

You need to submit the Form 1096 to the IRS in order to summarize the information if you collected at least one 1099-MISC form. You should send only Copy A to the IRS.

You need to submit separate Forms 1096 for each type of information returned, even if you have one of each kind. That means you will send one Form 1096 for your 1099-MISC (one or more) and a separate one for let's say Form 1099-R (retirement papers).

How to File Information Returns Electronically

If you collected and filed 250 or more Forms 1099, you must file those forms electronically. You will be penalized if you don't do it. Use the IRS Filing Information Returns Electronically (FIRE) system to do it.

Where to Get 1096 Forms

If you are preparing 1099 forms by yourself, you can do one of the following:

  • Go to an office supply store and buy them there
  • Use Tax preparation software
  • Ask your bookkeeper/accountant or a payroll company for them
  • Order these forms online directly from the IRS

    Remember: If you are using Deel, you do not need to file Form 1096 since we enable you to file 1099s electronically!

How to Complete Form 1096

  • Fill in your company's name and address (FILER)
  • Fill in a contact person's name, email, phone number and fax number (if applicable)
  • Box 2: Fill in your Employer ID Number (EIN) or Social Security Number (SSN) if you don't have EIN
  • Box 3: Fill in the total number of forms you're submitting (for this type)
  • Box 4: Enter the total federal income tax withheld on all these forms. If you didn't withdraw any tax, put "0".
  • Box 5: Fill in the total of reported payments for these forms 9total amount on all Forms 1009-MISC).
  • Box 6: Put "X" in the box that matches the type of forms you are summarizing. (For example, 1099-MISC).

Be Aware of the Common Form 1096 Mistakes

  • Don't download and print a 1096 form and submit it. Those forms are not scannable, and you can be fined $50 for submitting them.
  • All data needs to match all the other information returns you are filing.
  • Make sure to sign and date the form.

Disclaimer: This article is informational and should not be considered legal or tax advice. Please make sure to check the official IRS website for more information.

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