How to Prepare a 1096

Prepare a 1096

How to Prepare a 1096. When your trade or business has issued a 1099-MISC or any 1098, 1099, 5498 or W2-G to anyone, you have to send the IRS the Form 1096 summary.

Step 1

Determine if you have issued any 1099-MISCs to anyone in the course of your trade or business. These are commonly issued to report payments of $600 or more for rent, contract workers, professional fees and other payments to individuals.

Step 2

Determine if you have issued any 1098s, 1099s, 5498s or W2-Gs to anyone in the course of your trade or business. The most common reasons for your trade or business to issue such a form would be if you received mortgage interest payments, cancelled a debt, paid interest, paid long-term care benefits or had proceeds from real estate transactions.

Step 3

Obtain as many Forms 1096 as types of information returns you have issued. For example, use only one Form 1096 for all of your 1099-MISCs.

Step 4

Type your name, address, phone number, and either your Employer Identification Number (EIN) or Social Security Number. If you do not have an EIN, your Social Security Number is adequate.

Step 5

Check the box at the bottom to indicate the type of form being filed. Check only one box. For example, if you are filing 1099-MISCs, check the box for 1099-MISCs.

Step 6

Type the total number of forms on line 3 which you are issuing with this 1096. For example, write "5" on line 3 if you are issuing five 1099-MISCs.

Step 7

Type the total of any federal income taxes you withheld from payments on the forms for which this 1096 is being issued. Put this on line 4.

Step 8

Type the total amount of payments on the forms for which this 1096 is being issued. Put this on line 5.

Step 9

Sign your name, title, and date before mailing the completed form to the IRS center nearest you. Addresses are on the second page of Form 1096.

Tip

The 1096 is a summary of information forms being sent to the IRS. You need one 1096 for each type of information form you have issued. The most common form needing a 1096 for a small trade or business is the 1099-MISC. Obtain forms 1096, 1099-MISC or other information forms from an IRS office. There are three 1099-MISCs on a sheet. Each of these three forms has five copies: copy A, copy 1, copy B, copy 2 and copy C. It is preferable to type the information on copy A, but it is acceptable to write in bold ink. The other copies are made of self-duplicating carbon paper.

Things You'll Need

  • Calculators

  • Typewriters

  • File Cabinets

  • EIN

  • Accounting Services

  • Business Services

  • File Folders

  • Pens

  • Spiral Notebooks

  • Office Software

  • Spreadsheet Softwares