IRS Form 1099: How To Make Corrections
Solution: Well first, you must wait until the return is accepted or rejected by the IRS. If it is rejected, you can simply correct the information and retransmit the return. If it is accepted, you will need to complete a 1099 Corrections Form. There are 2 types of errors that can be corrected using the 1099 Corrections Form:
- Type 1 Errors: Incorrect tax amount(s), code, check box, payee name, or if the return was filed when it shouldn’t have been.
- Type 2 Errors: A payee number is missing (ex. TIN, SSN, EIN, QI-EIN, or ITIN), the name and/or address is incorrect, or the original return was filed on the wrong type of return (ex. 1099-MISC form was used to file a 1099-DIV).
You can easily file both Type 1errors and Type2 errors electronically through ExpressTaxFilings, you can even make corrections electronically if you paper filed Form 1099.
Payer & Recipient Information for 1099 Corrections:
If a payer discovers an error in reporting – the payer (not recipient) name and/or TIN is wrong – the payer will need to write a letter containing the name and address of the payer, type of error (including the incorrect payer name/TIN that was reported), tax year, payer TIN, TCC, type of return, number of payees, filing method (paper/electronic), and if federal income tax was withheld tot he address listed for Correcting Form 1099.
For payee corrections, follow the prior directions on filing a 1099 Correction Form either by paper or electronically. If the payer realizes there was a duplicate reporting or a large percentage of incorrect information has been filed, he will need to contact the IRS customer service at 1-866-455-7438 for further instructions.
If you have any questions about filing a 1099 Correction Form, contact our Express Tax Support Center via phone: 704.839.2270 or email: support@expresstaxfilings.com
