Simple Ways to Handle Form 1099 Corrections

The 1099 correction form is used to make corrections on the form 1099 field. If you have filed or received an IRS 1099 tax form only to find out later that there was a 2 mistakes i.e, Type 1 Errors and Type 2 Errors, here is what you need to do.

  • Type 1 Errors: It is an erroneous payee name, wrong tax amount or code and checkbox.
  • Type 2 Errors: It is an incorrect or missing taxpayer identification number (TIN, EIN and SSN and ITIN etc), incorrect address or name, incorrect type of tax return.

The 1099-MISC Form includes important information stating who the business is that is filing and who the independent contractor was who received the payment. If you find an error in your 1099 form is provided, the form must be corrected in soon. Revised and amended forms are required to be submitted to state agencies, the IRS, and the independent contractor. 

How to Correct a Form 1099 Online

Here provided simple steps to correct your 1099 form including Type 1 and Type 2 errors.

  • You have to identify the type of error
  • You need to refer to the original 1099-MISC when fixing the correction. On the original form information must be noted exactly as it was.
  • You need to get another 1099-MISC form from the IRS. Simply speaking, it’s a cover sheet that summarizes 1099 information.
  • You need get another 1096 form for each 1099-MISC that is corrected.
  • You need to enter the correct information on the 1099-MISC form then check the “corrected” box on the top of the form. This notifies the IRS that the form has been previously filed.
  • Complete the Form 1096 with the corrected and updated information
  • Mail the corrected 1099 form to the independent contractor, tax department and IRS.

What If You Receive an Incorrect 1099 Form?

If you think you got an incorrect 1099 Form, it’s important to take action. First contact the issuer of the incorrect 1099 Form and inform them of the correct amount that you were paid. Ask the issuer of the form to reissue it correctly. This should be done before the issuer has sent the 1099 to the IRS. Because 1099's are typically sent to taxpayers by January 31 and to the IRS before February 28, you may be able to contact the issuer before it is sent to the IRS. The issuer can then destroy the incorrect document and issue you a new one.

Also, you should ask for a written statement from the company stating they erroneously issued a Form 1099, destroyed the form and issued you a new one. This will help you explain things to the IRS in the case that the company did send the 1099 to the IRS.  In the case that the company has already sent the 1099 to the IRS, you’ll need to contact them and ask for a “corrected” form. What happens if the issuer doesn’t cooperate? You can address this on your return.

If you have filed or received an incorrect 1099 form, don’t get discouraged. There are steps you can take to fix the error and hopefully avoid headaches for quite a few people. If you would like assistance doing your taxes, Register and get step by step instructions on filing your 1099.

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