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.
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.