What is the purpose of Form 1096?

Form 1096 serves as a summary and transmittal document for various types of informational returns that are being sent to the IRS, particularly the 1099 forms. When an entity such as a business or organization pays certain types of income to non-employees, like independent contractors, they must report these payments using 1099 forms. Form 1096 consolidates this information and is required when submitting paper versions of these forms.

This form essentially allows the IRS to confirm that the 1099 forms being submitted are associated with the correct taxpayer, as well as providing an overview of the total income reported through those forms. It includes important details such as the total number of forms being submitted and the total amount reported, facilitating the IRS's ability to track and verify reported income.

In contrast, individual income tax reporting, payroll deductions, and quarterly tax reports are distinctly different processes with their own specific forms and requirements, making them unrelated to the purpose of Form 1096.