The 1096 is an exceptional tax form that summarizes what is contained in Forms 1097, 1098, 1099, 3921, 3922, 5498 or W-2G that you have sent to different recipients during the fiscal year to be declared. However, it should only be completed whenever your company files its taxes physically, that is, in paper format. Learn below how to fill out Form 1096.
If your company usually makes shipments to the Internal Revenue Service (IRS or Internal Revenue Service) electronically, you are not required to complete it. In any case, we will leave you a small step-by-step guide so that you know how to fill out Form 1096 so that you do not make any kind of mistake.
But first, what is IRS Form 1096?
Let’s take an example to see it more clearly.. Let’s say your business pays two independent contractors for work done in the same fiscal year. To the first, you give $2,500 for advertising and to the second $1,500 for repairs in the commercial premises. In this scenario, you have two options: send a Form 1099-MISC to the IRS and each of the contractors or notify the amount of money you paid to those who are not your employees through Form 1099-NEC. With Form 1096 you can make a summary of the information contained in the 1099-MISC or 1099-NEC forms that you have issued in that fiscal year.
Note: You must submit a Form 1096 for each type of form you have prepared. For example, if you prepared and sent seven Forms 1099-MISC and two Forms 1099-R (for retirement payments), you need to fill out one Form 1096 that summarizes all the 1099-MISCs and a second 1096 to summarize the contents of the two Forms 1099-R.
Remember: Every time you send a Form 1096 to the IRS you will need to attach all “A” copies of each return you have included.
Who should fill out Form 1096?
Form 1096 is intended for owners of businesses and companies that have issued one or more of the seven types of information returns to the IRS in physical format. Therefore, if you file this information electronically, even if you have issued one of these information forms, you will not need to complete Form 1096.
Remember: If the number of information returns you issue reaches or exceeds 250, you must submit your paperwork through the online platform. If you do not reach this number of annual forms, you have two options: submit them by mail or through the electronic platform, as you prefer.
Where can I get the 1096 form?
Since the IRS digitizes the Forms 1096 it receives, the agency requires companies to submit their forms in original, using official scannable documents. Thus, Photocopies of original documents are not accepted. You can get your own form by visiting the IRS official website. If you prefer, also you can find blank forms in the office supply stores or through the software your company uses for tax preparation.
How to fill out IRS Form 1096?
Now that you have your blank copy of IRS Form 1096, it’s time to fill it out correctly. How to do it? Let’s see it step by step:
- First, enter your company name and address, the contact person’s first and last name, and any other relevant informationsuch as the company representative’s email address, phone number, and fax number.
- Now, enter the employer identification number (EIN or Employer Identification Number) in box number 1 or, if you do not have it, your Social Security number in box number 2.
- In box 3, enter the total number of forms you will include on this Form 1096. Remember that they all have to be of the same type, so it’s a good idea to classify them before you start filling out your 1096.
- In Box 4, enter the total federal income tax you have withheld. Rely on the forms you are summarizing to do the calculation. If you did not withhold any amount for federal income tax, fill in the box with a zero.
- In box 5, write the total amount of the payments reported in all the forms you are submittingfor example, the total sum of all Forms 1099-MISC.
- To finish, go to box 6 and mark with a cross (X) the type of form you are attaching to the 1096. For example, for Forms 1099-MISC, put a cross in the second box in the second row. (From left to right).
Where to send form 1096?
To find out where you should send Form 1096, go to the IRS website Y select the address closest to your state. Note that you will also find a list of addresses on the second part of page three of the Form 1096 in PDF.
Remember: You must mail Form 1096 accompanied by all Copies A of the summary returns.
When should it be submitted?
The due date for filing most IRS returns, including Form 1096, is February 28 of the year after the tax year reported. However, this date could change.
Some information returns and Form 1096s must be submitted from January 31 to May 31 of the year after the reported tax period. To find out when to file your IRS Form 1096, visit the general instructions section from the tax department.
Note: Remember that you must also send independent contractors and your employees their 1099 copies, among others, before January 31 of the year of the declaration so that they can prepare their taxes.
Remember: If the due date falls on a Saturday, Sunday, or holiday, it will run to the next business day.
How to use Form 1096 in the state tax return?
Some states require taxpayers to submit a summary of their 1099 forms through a Form 1096, such as Montana. However, this is usually not a rule. To find out if you’ll need a Form 1096 to file your state taxes, contact the tax authorities in your state of residence.
How to correct the IRS 1096 form?
If you notice that you’ve made a mistake while filling out Form 1096 or any other federal information return, you must correct it immediately both with the IRS and with the other recipients. For detailed instructions on how to fix errors, be sure to visit the information section that the IRS has prepared for taxpayers.
As stated above, IRS Form 1906 is a type of information return used to summarize the contents of Forms 1097, 1098, 1099, 3921, 3922, 5498, or W-2G that you have issued in the tax year. to declare
This form is used only when the taxpayer files these returns in a physical format, that is, by mail. If the taxpayer chooses to file their returns online, they should not fill out Form 1096.
Before completing the form, it is best to separate each declaration by its type. This will allow you to fill out a Form 1096 for each type of return you have prepared. Remember that the 1096 will include the total amounts of what you paid and what you withheld from those people.
Note: If you issue 250 annual returns or more, you must submit your documentation online. If you don’t reach this number, you have the option to file your taxes on paper or electronically.