When you're running your own business, you'll have to submit Form 1096, the Annual Summary and Transmittal of U.S. Information Returns, every year. This shows the totals from other information returns you may be filing to the IRS and must be submitted no later than the end of February each year. While compiling a summary of the forms you're going to submit anyway might seem tedious to some, it is necessary to ease the IRS' facilitation of tax forms. Here are a few tips on how to make the process easier for everyone involved:
1. Check to see if you've issued any of the following forms, or variations of these forms, during the course of your business:
- Form 1098
- Form 1099
- Form 5498
- Form W2-G
These are the most common forms summarized by Form 1096. You can also double-check which ones you'll need to summarize on the IRS website, www.irs.gov, or by obtaining a copy of Form 1096 itself. Businesses usually issue such forms if they:
- receive payments for mortgage interest
- pay interests
- cancel debts
- receive real-estate proceeds and/or pay long-term care benefits
A certain version of Form 1099, Form 1099-MISC, is issued to report payments of $600 or more rent and/or payments to other individuals.
2. Get a separate Form 1096 for each of the types of forms you're summarizing. If, for example, you're filing three 1099-MISCs, a Form 1099-R, and a Form 5498, you'll have to obtain three 1096s.
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