Form 1099 is basically an IRS or Internal revenue Service form that can be used by the taxpayers for reporting certain payments. There are different varieties of this form available for business owners and common individuals ranging from letters A to SA. Nevertheless, it is important for business owners to make use of Form 1099 MISC for reporting the money that they pay to the independent contractors. This form carries information regarding the business and independent contractor that is being paid the money. In the case of any error in the form, it is necessary for an individual to go for 1099 correction in an instant. There is a definite 1099 corrections deadline within which the revised form should be submitted to the Internet Revenue Service, independent contractor, and the state agencies.
How to Correct 1099 MISC Form?
1099 misc correction involves identifying the type of mistake or error as the first step. The 1099 correction form errors are of two types and they are Type 1 and Type 2. Type 1 error is incorrect payee name, code or dollar amount and Type 2 error is incorrect or missing taxpayer identification number. It can also be the reporting of an invalid address. Once the type of error is detected, the following steps need to be adhered to for correcting the erroneous information on the form.
- Confirming the error type.
- Referring the original 1099 MISC during the corrections. Right information needs to be included as available on the original form.
- Obtaining another 1099 form MISC from IRS.
- Obtaining form 1096 from IRS which summarizes 1099 information.
- Entering the correct information and checking the”corrected” box right at the top of the form.
- Completing the correct information on 1096 form.
- Mailing the revised copy of the form to the IRS and independent contractor.