IRS Form 1096 Information
IRS Form 1096 is a crucial document for businesses and individuals who are required to report certain types of income to the Internal Revenue Service (IRS). This form serves as a summary of information returns, such as Forms 1099, and is used when submitting these returns to the IRS. Below, we provide essential details and instructions regarding Form 1096 to help you navigate the filing process effectively.
What is Form 1096?
Form 1096 is known as the "Annual Summary and Transmittal of U.S. Information Returns." It is used to transmit paper Forms 1099, 1098, 5498, and W-2G to the IRS. Essentially, it acts as a cover sheet that summarizes the information contained in the accompanying forms.
Who Needs to File Form 1096?
If you are a business owner or an individual who has issued any of the aforementioned forms, you are required to file Form 1096. This includes reporting payments made to independent contractors, interest payments, and other types of income that need to be reported to the IRS.
Form 1099-K Information
Form 1099-K is a report of payments you received for goods or services during the year from:
- Credit, debit or stored value cards such as gift cards (payment cards)
- Payment apps or online marketplaces, also called third party settlement organizations or TPSOs
These organizations are required to fill out Form 1099-K and send copies to the IRS and to you.
Use Form 1099-K with other records to help you figure out and report your taxable income when you file your tax return.
Even if you don't get a Form 1099-K, if you received payments for goods, services or property, you must report your income. This includes payments you receive in cash, property, goods, digital assets or foreign sources or assets.