Your last step is to mail the 1099-MISCs you've prepared with the transmittal form 1096 to the Internal Revenue Service (IRS). Do this by the last day in February. I always wait until the last minute to mail mine just in case I've made a mistake on somebody's 1099-MISC. It's easier to make corrections before you send them into the IRS than after.
Here's how to fill out the Form 1096:
- You are the Filer so fill in your name, address, telephone number and federal tax number (either EIN or social security number) in the appropriate box.
- In Box 3 enter how many 1099-MISCs you've prepared and are mailing in. Don't count any voids.
- Box 4 will normally be zero, unless you withheld tax from your payments. This is quite unlikely unless your subcontractor was subject to back up withholding.
- Add up all the dollar amounts on the 1099-MISCs. Once again don't count any voids. Enter this number in Box 5.
- In Box 6 check the 1099-MISC box.
Sign and mail to the correct address under Where to File. Yippee! You're done with your 1099-MISC reporting for another year!
