Understanding the ‘Accepted with Errors’ Status of Your 1099 Forms and How TaxBandits Can Assist You

Learn how to handle the 1099 forms with ‘Accepted with Errors’ status and discover how TaxBandits simplifies the correction process.

reading time: 15 minute(s)

Understanding the 'Accepted with Errors' Status of Your 1099 Forms and How TaxBandits Can Assist You

E-filing your 1099 form is an essential step in maintaining compliance, but sometimes, even after submission, the IRS may return an “Accepted with Errors” status. While this means your Form 1099 has been processed, it also indicates that certain details—like TIN errors, name mismatches, or missing information—need your attention. Addressing these issues promptly is key to avoiding potential complications, and we’re here to guide you through the process. 

In this blog, we’ll break down what the “Accepted with Errors” status means, its implications, and how TaxBandits provides the tools you need to resolve these errors with confidence.

Let’s get started.

How the “Accepted with Errors” Status Works

Under the IRS’s previous FIRE (Filing Information Returns Electronically) system, these errors would have typically been reported days or weeks after your forms were accepted. However, with the introduction of the new IRIS (Information Returns Intake System) e-file system, errors are now flagged immediately upon submission. This immediate feedback allows businesses and tax professionals to address errors promptly, ensuring compliance and reducing the risk of penalties.

TaxBandits, as one of the first authorized e-file providers to secure the IRS IRIS A2A Transmitter Control Code (TCC), equips you with the tools and support needed to address these errors effectively. If you encounter the “Accepted with Errors” status during your 1099 filing process, you can count on TaxBandits to guide you every step of the way.

What does it mean if my 1099 form indicates “Accepted with Errors”?

The “Accepted with Errors” status from the IRS signifies that your e-filed tax return has been processed and acknowledged, but specific issues require your attention. These errors can arise from various factors, such as incorrect recipient TIN, missing information, or discrepancies in reported income. As a result of these errors, you may receive a notice from the IRS, typically labeled as a CP2100 or CP2100A, which outlines the issues that need to be corrected. It is crucial to address these notices promptly, as failing to rectify the mistakes may lead to penalties.

Common Errors That Trigger the “Accepted with Errors” Status

As mentioned earlier, the “Accepted with Errors” status occurs when the IRS accepts your e-filed form but identifies issues within the data that could affect the accuracy or completeness of the filing. While the form is accepted, these errors need to be corrected to avoid penalties or delays. Among the most common errors is an incorrect recipient Taxpayer Identification Number (TIN), which can occur due to:

  • A mismatch between the recipient’s TIN and the name on file with the IRS.
  • TIN type mismatches (e.g., using an SSN instead of an EIN).
How to Prevent Recipient TIN Errors?

Preventing TIN errors starts with accurate data collection and verification. Here’s how you can minimize the risk of such errors:

Request W-9 Forms: Collect Form W-9 from each recipient to ensure their name and TIN are correct.
Use TIN Matching Services: TaxBandits offers an integrated TIN Matching service that allows you to verify recipient TINs before e-filing. This step ensures that your recipient’s name and TIN align with IRS records, significantly reducing the chance of errors.

While TIN errors are among the most common causes of the “Accepted with Errors” status, they are not the only issues you may encounter. Other potential errors could include incorrect amounts, excessive federal tax withholding, etc. Each of these errors requires prompt attention to maintain compliance and avoid penalties.

Steps to Take When Your 1099 Forms are Accepted with Errors

Taking timely corrective action is crucial if your 1099 forms are accepted with errors. If you receive these errors, the IRS requires that you file a corrected 1099 as soon as possible with the updated information. Here are the steps you need to follow:

  1. Identify the Issues: Based on the error message received, determine whether the errors relate to recipient details, withholding amounts, or other business validation factors.
  2. File a Correction Form: Submit a corrected 1099 form with the necessary updates to resolve the errors. Ensure all details match IRS records to avoid repetitive errors.
  3. Notify Recipients: Inform recipients of any changes to their 1099 forms to prevent confusion when they file their tax returns.

How TaxBandits Can Help You Correct 1099 Form “Accepted with Errors” Issues

TaxBandits simplifies the process of correcting 1099 returns with the “Accepted with Errors” status by providing complete guidance and allowing you to file corrected 1099 forms to the IRS quickly. 

Here are the simple steps to be followed:

Step 1: Log into your TaxBandits account and go to the 1099/W-2 Dashboard.

TaxBandits Accepted with errors

Step 2: In the ‘All Payers‘ section, choose the payer whose forms were accepted with errors and click the ‘Submitted‘ tab.

Step 3: Under the ‘Accepted with Errors‘ section, you will find a list of 1099 forms the IRS has accepted with errors. You must file a correction for each of these 1099 forms to resolve the error. 

Step 4: Correct your 1099 form as needed. TaxBandits simplifies this process by allowing you to edit the form directly on the platform. Once the corrections are made, e-file the corrected 1099 form through TaxBandits.

Stay Compliant and Avoid Penalties

Dealing with the “Accepted with Errors” status can feel overwhelming, but with TaxBandits, the 1099 correction process becomes seamless. Our user-friendly platform guides you every step of the way—from identifying errors to resubmitting corrected 1099 forms. You can avoid penalties and ensure compliance with IRS requirements by acting promptly and correctly. Get started with TaxBandits today!


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