Form 1096 & Form 1099-Misc to IRS

[NSNM]

Is it a "REQUIREMENT" to report information returns (Form 1096 and Form 1099-Misc (copy A)) to the IRS on IRS provided (RED inked) forms, if it is less than 250.

or

Substitute (black and white) paper forms generated from tax software programme (ATX) can be used to report to the IRS.

I am aware substitute forms (copy B) can be used to report to the Recipients.

I have about 10 Form 1099-Misc to prepare for few entities, and IRS provided original Red forms are not compatible with printed information going outside the boxes provided. And I am not very comfortable with online reporting of 1099/1096.

Thanks for any comments.

[KBTS]

Yes, the 1096 and copy A of 1099-MISC must be printed on the red forms. You might be able to adjust the print settings in your software to get things to line up correctly on the forms. If you cannot adjust the print settings and still want to use your software, you will have to buy forms that are compatible so things will line up correctly.

[ToledoEd]

Yes the 1099s and 1096 must be on IRS approved red ink forms. But they do not have to come from the IRS. You can get them at most office supply stores, Office Max, Office Depot, Stapples, etc. You can be fined if you use a black and white copy.

[Lion]

e-File

There are inexpensive e-file services online or maybe your software e-files Forms 1099. You can haul out an old typewriter for the red forms (still doing all other copies on plain paper from your software). You can handwrite the red copies (your clients will never know as they get your computer-generated forms on plain paper for the payor). For a couple of QB clients, I have them order/pay for the compatible forms from Intuit that print the red forms as well as everything else from QB. It's their money if they choose not to e-file.

[ChEAr$]

Refresh my memory

Since this thread is about red copies, let's see if I have this straight.

IRS demands red tinted 1096 and 1099's, while Social security isn't picky on whether or not their copies of W2's and W3 are red.

Right?

[KBTS]

Since this thread is about red copies, let's see if I have this straight.

IRS demands red tinted 1096 and 1099's, while Social security isn't picky on whether or not their copies of W2's and W3 are red.

Right?

That is correct.

[NSNM]

Substitute Form W-2 and W-3

Instructions for Forms W-2 and W-3 indicate acceptable substitute form that complies with rules in Pub 1141 may be used to furnish W-2 to employees or to file with SSA.

Not having similar rule for reporting Forms 1099s and 1096 is kind of inconvenience for paper filers.

What is the purpose of reporting only on Red inked forms, if they can accept most other B&W forms?

Thank you all for your responses.

[ChEAr$]

Instructions for Forms W-2 and W-3 indicate acceptable substitute form that complies with rules in Pub 1141 may be used to furnish W-2 to employees or to file with SSA.

Not having similar rule for reporting Forms 1099s and 1096 is kind of inconvenience for paper filers.

What is the purpose of reporting only on Red inked forms, if they can accept most other B&W forms?

Thank you all for your responses.

What I remember is that IRS scanners are tuned to ignore anything in red, so red printing is "drop away", something like that. Therefore the scanner reads only black type and somehow adjusts for printing which may not be aligned correctly.

[Burke]

Substitute (black and white) paper forms generated from tax software programme (ATX) can be used to report to the IRS.

I have about 10 Form 1099-Misc to prepare for few entities, and IRS provided original Red forms are not compatible with printed information going outside the boxes provided. And I am not very comfortable with online reporting of 1099/1096.
Thanks for any comments.

I use ATX and have used the IRS (red copy only) to print the one to send in. You adjust margins in the software and it prints out fine. Print first on plain paper and hold red copy over plain copy up to the light to see which direction to adjust.

[S T]

SSA vs IRS

Unfortunately for "us" preparers, IRS has not updated their system and is still on the "optical scan" red copies (term??) For 1096/1099 forms unless being electronically filed - must be on the "RED" copies for IRS

SSA where the W-2 and W-3 forms are transmitted have updated their system, so can be printed on blank paper in black and white and "NO RED FORMS"

Sandy

[Jiggers]

But why does the IRS take the 940, 941 returns on plain paper?

And paper returns for 1040, 1040A, 1040EZ, 1041, 1065, 1120, 1120S, 990, etc.

Just 1099's must be on the special red ink paper.

Now, look at the IRS instructions for W-2's: "....Do not download Copy A of Forms W-2, W-2.....from the IRS website...The SSA accepts only e-filed reports and the official red ink versions....."

This has been pointed out for several years, and yet the IRS doesn't think that SSA accepts plain paper W-2's.

[NSNM]

Copy A of Form W-2, W-3, W-2c, or W-3c

With regard to filing W-2,

.....The SSA accepts only e-filed reports and the offical red-ink versions (or APPROVED SUBSTITUTE VERSIONS) on these forms.

[Gary2]

One also wonders why you couldn't use a color printer with the downloaded forms.

Or why the IRS requires going through third party e-filers, while many states (perhaps most) allow direct filing through their web site, at least for the sort of quantities we're talking about here.

And while we're on this, how many people do adjustments for nominee interest and then ensure that the 1099/1096 are filed?

[S T]

Pub 1141- Copy A W-2

See around page 9 - gives the specifications for the Substitute Black and White Copy A for W-2 and W-3

SSA has allowed us to NOT use the Red forms for Copy A for several years now.

Example through Quickbooks payroll module - will print W-2 Forms - in their help instructions Intuit states that

The SSA (Social Security Administration) approves Intuit's W-2 (Copy A) and W-3 each year in accordance with IRS Publication 1141, General Rules and Specifications for Substitute Forms W-2 and W-3.

As long as the software you are using has received the Approval in accordance with Pub 1141, then the W-2 W-3 forms can be submitted on plain paper and blank ink, if you are not signed up to submit electronically.

Sandy

[Jiggers]

And no one has responded as to why the IRS insists on the "Red" 1099/1096 while allowing everything else on plain paper.