If you file 10 or more information returns in a year, you must e-file. Treasury Decision 9972, effective January 1, 2024, collapsed the old 250-return threshold down to 10, calculated across all return types combined.
That shift made Form 1096 irrelevant for most of your clients overnight. But if any of your clients remain below 10, you are still permitted to file on paper, and Form 1096 still goes to the IRS with every batch. One form per return type, filed to the correct address, by the correct deadline, on an officially ordered, scannable copy.
Here is everything you need to know.
What the 10-Return Threshold Actually Means
If you file 10 or more information returns in a year, you are no longer permitted to use paper. You are required to file electronically, and Form 1096 plays no role in that process.
The 10-return count is aggregate, not per form type. Four Forms 1098 and six Forms 1099 equal 10, and that triggers mandatory e-file, even if you only issued six of any single type. A client filing nine Forms 1099-NEC and nothing else stays under the threshold. A client filing three form types with four of each does not.
If your client e-filed their original returns, any corrections for those same return types must also be e-filed. The threshold does not apply separately to originals and corrections.
Which Clients Are Still Paper Filers?
If any of your clients file fewer than 10 information returns in a year, they are still permitted to use paper. These are typically micro-businesses issuing one or two forms a year, sole proprietors who paid a single contractor, small landlords with one mortgage interest recipient, or estates and trusts with a single income reporting obligation. One-off situations also qualify, such as a business that sold a piece of real estate and issued a single Form 1099-S with no other information return obligations for the year.
Before you prepare paper returns for any client, confirm the full count across all form types in scope, not just the ones currently in front of you. And if a client is close to 10, e-filing is simpler.
What Form 1096 Requires When Paper Filing Applies
Form 1096 is the transmittal cover sheet for every batch of paper information returns mailed to the IRS. Here is what the form requires:
- One Form 1096 per form type
- Completed key boxes
- Scannable forms only
If your client is filing both Forms 1099-NEC and Forms 1099-MISC, that is two separate Form 1096s, even if they go in the same envelope.
Also, all boxes within Form 1099 must be completed and consistent. The TIN on Form 1096 must match the TIN on the attached information returns and on the filer’s 94X series returns.
And most importantly, you do not download and print Form 1096 from the IRS website. That version is not scannable, and filing it can result in a penalty for each return submitted in an improper format. You can order official scannable IRS forms at no cost through IRS.gov/orderforms.
When & Where to File Form 1096
Deadlines depend on the type of information return you are transmitting. If you are transmitting Form 1099-NEC, the paper filing deadline is January 31, which means the underlying 1099-NEC must also be filed by that date. For Forms 1097, 1098, most 1099s, 3921, 3922, and W-2G, the paper deadline is February 28. Forms 5498, 5498-ESA, 5498-QA, and 5498-SA follow later, with a May 31 deadline.
If the due date falls on a Saturday, Sunday, or legal holiday in the District of Columbia or in the state where the return is to be filed, the deadline shifts to the next business day.
The mailing address depends on where your principal business is located. You can check your correct mailing address at irs.gov/instructions.
Keep your package flat when mailing, not folded. If you are sending multiple packages, number them consecutively and place Form 1096 in package number one.
Third-Party Signing Authority
A transmitter, service bureau, paying agent, or disbursing agent can sign Form 1096 on behalf of the filer. For this, two conditions must be satisfied:
- First, the agent must have the authority to sign under an agency agreement with the filer, whether that agreement is oral, written, or implied, and it must be valid under state law
- Second, the agent must add the caption “For: (Name of payer)” alongside their signature
The signing authority does not shift liability. The filer remains fully responsible for any penalties arising from a failure to file a correct, complete, and timely Form 1096 and the accompanying returns. Your signature on behalf of a client does not protect the client from penalty exposure.
Correcting Paper Returns: Two Error Types
When your client filed a paper return and later discovers an error, the correction process depends on the nature of the error. The IRS separates corrections into two categories, and the steps differ materially between them. A fresh Form 1096 is required for all corrections.
Error Type 1: Money Amounts, Codes, or Checkbox Errors
Error Type 1 covers incorrect money amounts, wrong codes or checkboxes, and returns filed when none should have been filed. These errors require only one corrected return to resolve.
Prepare a new information return, mark the CORRECTED box at the top, enter the correct amounts and information, and attach it to a new Form 1096. Do not include a copy of the original return in the correction package. The IRS does not need it, and including it risks duplicate processing.
Error Type 2: Wrong TIN, Wrong Payee Name, or Wrong Form Type
Error Type 2 covers missing or incorrect payee TINs, incorrect payee names, and situations where the original return was filed on the wrong form type. These errors require two separate returns.
- Step 1: Prepare a new information return, mark the CORRECTED box, enter the payer and recipient information exactly as it appeared on the original incorrect return, and enter zero for all money amounts. This zeros out the original
- Step 2: Prepare a second information return without marking the CORRECTED box, treating it as an original, with all the correct information, including the correct TIN and payee name
Both returns travel together under a single new Form 1096. On that Form 1096, write one of the following phrases in the bottom margin depending on what was corrected: “Filed To Correct TIN,” “Filed To Correct Name,” or “Filed To Correct Return.” Do not include a copy of the original incorrect return.
Penalty Exposure for Getting This Wrong
Filing on paper when e-filing is required is itself a penalizable failure. If you meet the 10-return threshold but file on paper, you may incur a penalty for each return you failed to file electronically, with a maximum of $340 per return for most information return types.
Separate penalties apply for failure to file correct information returns by the due date. These are tiered based on how late the correct return is filed:
Small businesses are those with average annual gross receipts of $5 million or less for the three most recent tax years ending before the calendar year in which the returns were due.
Intentional disregard carries a minimum penalty of $690 per return with no annual cap. That exposure applies per return, and the IRS has no statutory limit on what it can assess when disregard is established.
Conclusion
At the start of each filing cycle, run a complete count of information return obligations for every client you manage on paper. Identify who is sitting at nine returns and confirm whether any additional obligation is likely to arise before the deadline.
For clients who remain legitimately below the 10-return e-filing threshold, establish your paper filing protocol early. Order official scannable forms, confirm the agency agreement is in place if you are signing on their behalf, and document which clients are in scope.
Frequently Asked Questions (FAQs)
Form 1096 is a transmittal cover sheet that accompanies paper information returns, such as Forms 1099, 1098, 3921, 3922, 5498, and W-2G, when you mail them to the IRS. It summarises the total number of forms being submitted and the total amounts reported. You do not need it if you file electronically through the IRS FIRE system.
You must use an official scannable form printed by the IRS. Downloading and printing Form 1096 from IRS.gov is not acceptable and can result in a penalty. Order official forms at IRS.gov/orderforms, select Employer and Information Returns, and the IRS will mail them to you at no charge.
The deadline depends on which information returns you are transmitting. If you are sending Form 1099-NEC, the deadline is January 31. For most other 1099s, 1097s, 1098s, 3921s, 3922s, and W-2Gs, the paper deadline is February 28. Form 5498 series returns are due May 31. If any deadline falls on a weekend or public holiday, it moves to the next business day.
