How To Deal with Errors on Form 1099-NEC

1099 Corrections are easier than you think!


It has been a busy year-end filing season! Now that you have completed and distributed the Form 1099-NEC to all of your independent contractors, you can take a deep breath and mark that task off your ever-growing to-do list…right?

Exactly! Until you see it…an error on one or more of your Form 1099-NECs. Your mind begins to reel, do you need to correct this error? How do you correct this error? Will you be penalized? Just like that, your IRS stress has returned! Don’t panic, let that stress go! Correcting the errors on your Form 1099-NEC is not as complicated or as time consuming as you may think! With TaxBandits it’s especially simple! 

What Form should I use for corrections?

There is no specific form for each 1099, not like we see with the W-2 and W-2c. If paper filing you will file the Form 1099-NEC and be sure to indicate that the form is CORRECTED. You will see the box at the top of the form, and who could miss those all in caps letters? Remember, if you don’t check this box, the IRS will think this is a duplicate 1099-NEC. 

When it comes to e-filing with TaxBandits, it’s a bit easier than this. Simply select 1099 corrections and you can submit an amended form to the IRS whether you filed your original 1099-NEC with TaxBandits or another provided. You can even file your correction with TaxBandits if you mailed your original 1099-NEC to the IRS in paper form. 

When is it necessary to file corrections? 

Not all errors on the Form 1099-NEC require that you file a corrections form. However, if you notice any of the following mistakes, you should complete a corrections form and transmit it to the IRS. You also must make sure that your independent contractor gets an amended copy. 

  • Incorrect name
  • Incorrect SSN/TIN
  • Incorrect amounts or codes entered on the form
  • If the return shouldn’t have been filed for this payee
  • If the wrong return was filed for the payee

If these errors go unchecked, you could be subject to penalties from the IRS

How do I file Form 1099-NEC with TaxBandits? 

The 1099 corrections filing process with TaxBandits is pretty simple. Just a few steps and you have erased your mistakes. Remember, if you get caught up anywhere in the process, just call, email, or chat our US-based support team! They are here to help you!

  1. Log in or sign up for a Free TaxBandits account.
  2. Choose the Form that you want to file.
  3. Enter the corrected information.
  4. Choose the services that you want, we will mail your recipient an amended form if you select postal mailing or Online Access. 
  5. Review and transmit to the IRS.
  6. Download your recipient copies or get your recipient copies mailed directly to them, or allow them to access their amended form online. 

Ready to get started with the corrections process? Sign in to your TaxBandits account or create one for free!

Form 1099

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