What Is a 1096 Form Used For?


Quick Answer

Form 1096 must be filed with tax returns to transmit certain information returns to the Internal Revenue Service. The information returns required with this form include Copy A of forms 1097, 1098, 1099, 3921, 3922, 5498 and W2-G.

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Full Answer

Form 1096 must be filed by those who receive nominee or middleman returns on a Form 1099, which means the amounts belong to another person who then gets a Form 1099 to note the difference in allocated funds. This form is also used for successor/predecessor reporting where a successor business, whether a sole proprietorship, partnership or corporation, agrees to assume a predecessor business's reporting responsibilities. Qualified settlement funds must file this form for any funds sent to claimants, and tax-exempt organizations use this form to report some types of donations.

Copy A of the forms filed with Form 1096 span a wide range of information reporting. Form 1097-BTC reports bond tax credits, while Form 1098 reports mortgage interest received over the amount of $600. Form 1098-C reports motor vehicles, airplanes and boats donated to tax-exempt organizations, while 1098-E reports student loan interest received over $600. Form 1098-T is used by educational institutions to report each enrolled student who pays tuition payments. Form 1099-B reports proceeds from broker or barter transactions, and 1099-C reports when an organization cancels a debt of over $600.

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