Terry I. and Louise Major - Page 12

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               D.   Forms 1099 and 1096                                               
               Petitioners offer an additional argument against admitting             
          the Forms 1099.  They maintain that copies of Forms 1099 were not           
          complete and could not have been prepared in the normal course of           
          business because they did not also include a Form 1096, Annual              
          Summary of Transmittal of U.S. Information Returns.  Although the           
          Court holds that the Forms 1099 are admissible, we address                  
          petitioners’ argument.                                                      
               A Form 1099 shows the amount paid by the payor to the                  
          recipient listed in the form for a certain taxable year.  In this           
          case, petitioners received two Forms 1099-MISC, Form 1099-B, and            
          Form 1099-INT.  Each Form 1099 was attached to a declaration,               
          which, as discussed previously, satisfied Fed. R. Evid. 803(6)              
          and Fed. R. Evid. 902(11).  The purpose of Form 1096 is to                  
          transmit paper forms such as Form 1099 to the Internal Revenue              
          Service.  As the title implies, Form 1096 summarizes the                    
          information contained in all the forms transmitted with it.                 
          Forms 1099 supply the details underlying Form 1096.  United                 
          States v. Carroll, 345 U.S. 457, 459 (1953).  Form 1096                     
          effectively acts as a verifying cover sheet to the Internal                 
          Revenue Service for transmitted Forms 1099, providing information           
          on who is submitting the attached forms, the total number of                
          forms submitted, the total amount listed on the forms, and the              
          total amount of Federal income tax withheld on the forms.  United           
          States v. Yagow, 953 F.2d 423, 425 (8th Cir. 1992).  It is not              

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