This post applies to 2013 Form 1096, 2013 Form 1099-B and W2 Mate 2013
We have been getting emails and phone calls from our customers asking about the calculation of Form 1096 Box 5 (Total amount reported with this Form 1096) when used to report 1099-B (Barter) forms.
Unfortunately there is an error in the form 1096 instructions from the IRS and we can still see the error with the latest copy downloaded today (Friday November 8 2013).
The 2013 1096 form instructions (page 2 of the form) incorrectly instruct filers to enter the total amount from 1099-B boxes 1d and 14 in Box 5 of the Form 1096. The correct boxes are 1099-B 2a and 7. Please note that boxes 1d and 14 are not used to report money amounts, so they can’t be summed in the first place.
Please also note that the IRS was in the process of introducing major changes to form 1099-B for 2013, but they ended-up using the same form for 2012 with minor changes. Form 1096 instruction most probably refer to boxes that were expected to be part of the new 1099-B form, which was never released.
You can contact the IRS at the information returns hotline 1-866-455-7438 if you have any questions about form 1096 instructions.