Form 1096 - Red

[Hoosier]

I use ATX software for preparing 1099s/1096. Print out the completed forms on blank paper. Have filed for years without using the red inked paper. To this point have had no problems. Am I dodging bullets or is blank paper acceptable? My understanding is that if the IRS scanners can scan the documents then the red ink is a non-issue. I print out W2s/W3 using the same blank paper process and no problems with IRS yet. Anyone have a negative experience with blank paper W3 or 1096?

[Lion]

Form W-2/W-3 go to the Social Security Administration; blank paper is fine. Recipient copies are required to be perforated or separated. Forms 1099/1096 go to the IRS and need to be on the red forms, which you can get free from the IRS. Or, e-file: no paper, no 1096. I haven't heard of any trouble; I think the IRS is just happy to get them. But, I don't want any of my clients getting an IRS letter telling them I did it wrong!

[ATSMAN]

I just finished my 1099-Misc processing. IMHO you are taking a chance by mailing non red ink 1096 hard copy. As Lion suggested e-file or use the red 1096 free from IRS.

I know with the old technology the red ink was magnetically coded or to some effect like that but these days with laser scanning and handwriting recognition IRS should accept laser printed 1096 or allow free e-file like W2/W3.