Is a 1096 Required When E-Filing?

When filing information returns electronically with the Internal Revenue Service, Form 1096 is not required. This form is exclusively used for paper submissions of tax documents. The process of electronic filing replaces the function that Form 1096 serves in a paper-based system.

The Role of Form 1096 in Paper Filing

Form 1096, officially titled the “Annual Summary and Transmittal of U.S. Information Returns,” acts as a cover sheet for paper filings. When a business mails a batch of information returns to the IRS, it must include a Form 1096. This document summarizes the key information from the accompanying forms, telling the IRS the total number of forms being sent and the total dollar amounts reported. It provides a consolidated overview for the agency’s processing centers.

The form is used to transmit a variety of common information returns, including the Form 1099 series, Form 1098, Form 1097, and Form W-2G. A filer must use a separate Form 1096 for each distinct type of information return being submitted. For instance, a batch of Form 1099-NECs would be sent with one Form 1096, while a batch of Form 1098s would require its own. This form is only available in a scannable format from the IRS and cannot be a downloaded copy.

Why Form 1096 Is Not Used in Electronic Filing

The function of Form 1096 is made obsolete by electronic filing systems. When a business submits information returns electronically, the software or online portal automatically compiles and transmits the necessary summary data to the IRS. Whether using the IRS’s Information Returns Intake System (IRIS) or a third-party provider, the system aggregates the data from all individual forms. It calculates the total number of returns and the corresponding financial amounts, embedding this summary into the electronic data package. This automated process eliminates the need for a separate, physical cover sheet.

E-Filing Rules and Confirmation

E-Filing Threshold

Electronic filing is mandatory for most businesses. For returns filed on or after January 1, 2024, any business filing a total of 10 or more information returns must file them electronically. This rule requires filers to aggregate most types of information returns, such as Forms W-2 and the 1099 series, to determine if they meet the 10-return threshold. For example, a business filing five Forms W-2 and five Forms 1099-NEC must e-file both.

Electronic Confirmation

Instead of a mailed form, confirmation of a successful submission comes directly from the electronic system. After transmitting the returns, the filer receives a submission status update, which may indicate a status of “Accepted” or “Accepted With Errors.” This digital receipt is the official acknowledgment from the IRS that the returns have been received and serves as proof of submission for the filer’s records.