A Word About Forms

By: Charles L. Telk Jr., CPA, Partner |  email

Forms 1096 and W-3: These are the transmittal forms that you send to the IRS or SSA accompanying your 1099 and W-2 forms each year. Typically, they are not due until the end of February, at the earliest, depending on the number of W-2s and 1099s you file, and the media with which you file them.

Please note: while many taxpayers issue W-2s and 1099s to recipients by the end of January, and then immediately send their 1096s and W-3s to the IRS or SSA, you should consider filing these documents closer to their respective due dates.

The reason the government has allowed time between when these sets of forms are due to the recipient and when they are due to the government is so the recipient has a chance to examine their reporting forms and point out any errors to you, presumably before you have filed these documents with the government.

If you haven’t yet filed forms 1096 or W-3 with the IRS or SSA, it will be easier to fix a mistake on them without the need to file amended returns. However, if you have already filed forms 1096 or W-3 with the government, and there are errors on those forms, then you will also have to file amended reports which can be complicated and time consuming. So, file those 1096s and W-3s closer to their due date to avoid potential amended return filings.

Forms W-9 and W-4: As the 2011 filing season concludes, now would be a good time to examine your member and vendor files for updated and legible W-9 forms. Remember that a W-9 form is the document you need in order to first determine if a 1099 should be issued, and then to obtain the necessary information to properly fill out form 1099. It would be beneficial at this time to update your employee’s W-4 forms as well.