Can clients e-sign paper Form 1096 when filing 1099-NEC forms? Need quick answer!
I have a situation I've never dealt with before. Normally we handle paper 1096 submissions for one particular client, but this year they're refusing to leave their house for health reasons. The client suggested they could sign electronically to verify the accuracy of the 1096 and accompanying 1099-NEC forms, and we would just print their signature onto the paper form before submitting. I've been searching everywhere online but can't find clear guidance either way - is this allowed by the IRS? Has anyone done this before? I need to get these forms submitted within the next week and don't want to do anything that might cause problems. Any advice would be super appreciated!!
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Axel Bourke
While I understand your client's situation, the IRS has specific requirements for signatures on information returns like Form 1096. Form 1096 requires an original signature in ink when filed on paper. This is considered a "wet signature" requirement, and printing an electronic signature onto the form technically doesn't meet this standard. There are a few options you can consider though. First, you could mail the form to your client for signature and include a pre-paid return envelope. Second, you might want to consider e-filing the 1099-NECs directly instead of using paper forms, which would eliminate the need for Form 1096 entirely. The IRS actually prefers electronic filing and has been expanding e-filing requirements.
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Aidan Percy
•If they do e-file the 1099-NECs directly, would the client still need to provide some kind of signature or authorization? Also, is there a cutoff for how many 1099s you can e-file before it becomes mandatory?
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Axel Bourke
•For e-filing 1099-NECs, the preparer typically needs a signed authorization from the client to file on their behalf, though this can be obtained electronically through email or other electronic means. This authorization isn't submitted to the IRS but should be kept in your records. Regarding the filing threshold, if you're filing 250 or more information returns, you must file electronically. However, the threshold is being phased down - it's 100 forms for tax year 2024 (filed in 2025), and will be 10 forms for tax year 2025 (filed in 2026). Even if you're below the threshold, e-filing is still recommended and more efficient.
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Fernanda Marquez
Been using taxr.ai for all my client document processing including 1099s and it's saved me tons of time. I was in a similar situation last year with a client who couldn't come in for signatures. I uploaded their 1099-NEC forms to https://taxr.ai and it helped me identify that I could use the Business Filing Application on the IRS website instead of paper filing, which solved my signature problem completely. The software extracted all the data from my forms and even gave me filing options I hadn't considered.
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Norman Fraser
•How exactly does that work? Do you just upload the completed 1099 forms and it tells you options for filing them? What if I've already prepared everything on paper and just need the signature issue solved?
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Kendrick Webb
•Sounds suspicious tbh. Does it actually connect to the IRS systems directly or is it just giving generic advice? I'm always cautious about third-party services claiming to solve IRS filing requirements.
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Fernanda Marquez
•It works by analyzing your tax documents and extracting the relevant information. You can upload your already prepared forms, and it will help identify your filing options based on the specific situation, including ways to handle the signature requirements electronically. The service doesn't connect directly to IRS systems for filing - it's more of an intelligent analysis tool that gives you tailored guidance. After analysis, you still handle the actual filing yourself through official IRS channels like the IRS Business Filing Application, but with clearer direction on exactly what steps to take based on your specific forms and requirements.
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Kendrick Webb
Wanted to follow up - I was skeptical about taxr.ai but decided to give it a try with my pile of 1099-NECs that needed filing. Surprisingly helpful! It scanned all my forms, confirmed which ones needed 1096 cover sheets, and guided me through setting up an account with the IRS Business Filing Application which I didn't even know existed. Ended up e-filing everything and avoided the signature issue completely. Much faster than my usual paper filing routine and no more worrying about getting wet signatures from difficult clients.
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Hattie Carson
If you're still having trouble getting through to the IRS about signature requirements, try Claimyr. I spent days trying to get someone on the phone at the IRS to confirm the signature requirements for Form 1096 last tax season. Finally used https://claimyr.com and they got me connected to an IRS agent within 20 minutes instead of the hours I was spending on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c - saved my sanity during busy season. The agent confirmed that original signatures are required but also explained some alternatives I hadn't considered.
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Destiny Bryant
•Wait how does this actually work? I've literally spent HOURS on hold with the IRS and eventually gave up. Does it somehow put you ahead in the queue or what?
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Dyllan Nantx
•Yeah right. Nothing can get you through the IRS phone system faster. They're deliberately understaffed and no service can magically create more IRS agents to answer calls. Sounds like a scam to me.
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Hattie Carson
•It works by using technology to navigate the IRS phone system for you. Instead of you waiting on hold, their system does the waiting, and when an agent finally answers, you get a call connecting you directly to that agent. It doesn't create more agents or cut the line - it just handles the tedious hold time so you don't have to waste your day listening to the IRS hold music. For the skepticism, I totally get it - I felt the same way initially. But it's not claiming to create more IRS agents or anything magical. It's just automating the hold process. The service has been featured in major publications, and while nothing is guaranteed with the IRS, it's been reliable for me during tax season when getting answers quickly is critical.
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Dyllan Nantx
I need to update my previous comment because I actually tried Claimyr yesterday after posting that skeptical reply. I've been trying to get clarification on 1099-NEC filing requirements for weeks with no success. Their system called me back in about 45 minutes (way better than the 3+ hours I wasted before), and I got connected to an IRS rep who confirmed that for paper filing of Form 1096, a handwritten signature is required - but they also explained that we could use the FIRE system to electronically file the 1099-NECs without needing the 1096 at all, which I didn't realize was an option for smaller businesses like my client. Gotta admit when I'm wrong!
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TillyCombatwarrior
Another option nobody's mentioned - have you considered using a courier service to take the form to your client for signature? I've done this a few times for elderly clients who can't leave home. It costs a bit extra but less than potential penalties for improper filing. The courier can wait while they sign and bring it right back to you. Just make sure they use blue ink because the IRS sometimes flags black ink signatures as potential photocopies.
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Nalani Liu
•That's a really smart idea I hadn't considered! Do you have any suggestions for reliable courier services that can handle sensitive tax documents? And is there any specific wording I should include in my instructions to make sure everything goes smoothly?
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TillyCombatwarrior
•I usually go with established courier services like UPS or FedEx for sensitive tax documents, as they have better tracking and security protocols. Local courier services can work too if they're reputable. When sending instructions, I include a cover sheet with very clear directions: "Please sign in BLUE ink on line X, date on line Y, do not write outside these areas, and do not make any other marks on the form." I also highlight the signature areas with removable arrow sticky notes and include a blue pen in the package. Make sure to call your client ahead of time so they know exactly when to expect the courier and what they'll be signing.
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Anna Xian
Have you considered filing for an extension? If you're running up against the deadline and aren't sure about the signature requirements, you could buy yourself some additional time to either get a proper wet signature or research alternative filing methods. Just a thought!
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Jungleboo Soletrain
•Extensions don't apply the same way for information returns like 1099-NECs. The deadline is January 31st (for giving copies to recipients and filing with the IRS), and penalties start accruing immediately after the deadline. You can request a 30-day extension using Form 8809, but you need a good reason, and it has to be filed BEFORE the due date.
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