@JTW54  I've had this same situation with a client.  He doesn't like what I charge to prepare 1099s so he goes to whomever he finds cheaper.  Anyhow,  I returned the unmailed 1099s/1096 to him, explained when the forms should have been mailed, the penalties he will be charged by IRS and left it up to him.   I mark the Schedule C  I and J  yes and yes.