1099 Corrections Filing
Made an error on 1099 forms?
Learn how to issue a corrected 1099 Form.
Updated December 15, 2022
If you identify an error on a 1099 form after you have already filed the form with the IRS, you will need to file a correction. It is common to have an incorrect amount or wrong name or tax id when filing 1099. Correcting those errors used to be a big hassle. But not anymore. You can easily file corrections using our 1099 Corrections filing process, even if you did not file your original forms with us.
We offer a robust solution for 1099 correction processing. We not only electronically file corrected forms with the IRS, but we also provide recipients with their amended forms. Submitting corrections can be complicated and may result in IRS penalties if done incorrectly. We make the correction filing process simple.
What are the common errors?
Many things can go wrong when filing your 1099s. The amount may be wrong – if your accounting system has not adequately recorded all payments, you may end up reporting the wrong amount. The name of the recipient or their tax ID may be wrong. You likely have recipients' business names, but their personal SSN or personal name with the business tax id. You may have entered the amount in the wrong box. You may have sent a form to a recipient who should not have received the forms because either its a corporation or the amount is less than the reporting threshold. Or you may have issued a duplicate 1099 in error. If you have made any of these errors, you must file a correction form as soon as you recognize it.
Different Errors and how to correct those errors
The correction process depends on the error in the original form. Based on the error in the original form, the correction processing could be different. Take a look at the common mistakes and identify the type of correction you would need to file. The following two types of error can be corrected.
Type 1 Error
If you entered an incorrect amount or used a wrong box when filing the original form, then it is a Type 1 error. If you sent a 1099 but should not have done so, it is also a Type 1 error.
For this type of error, a correction form with the correct amount and box information needs to be filed. If you issued form 1099 by mistake, then you should submit a correction form with zero amount.
Type 2 Error
If you used the wrong Tax ID for the recipient or if the recipient’s company name and Tax ID do not match those on IRS file, or if 1099 was sent to the company but should have been sent to the individual, or vice-versa, then it is a Type 2 error.
To correct this type of error, you must file two corrected forms. One form using the same Tax ID and name as on the original form with zero amount must be submitted to void the original form. Additionally, a second form with the correct Tax ID, name, and amount must be submitted.
Our system helps you create these correction forms online easily. If you are still not sure, please reach out to us, and our customer service team would gladly help.
Errors that cannot be fixed electronically
If an error is discovered in reporting the payer (not recipient) name and Tax ID, you cannot file a correct form to fix this error. Rather the payer has to write a letter to the IRS to request the changes to the Tax ID or name. For more information click here.
When to file corrected forms
The correction form should be submitted as soon as the error is discovered. In general, corrections to 1099 forms can be filed for 1099 filed within the last three calendar years. There are two exceptions to this rule:
What to do to catch errors before you e-file?
After creating your forms and before checkout, you can print your forms to make sure there no errors left on the forms by mistake. You can also print Totals and Summary reports to see if the totals match with what you have. You can make any changes before paying for the forms.
It is a best practice to collect W-9 forms from your recipient, before making any payments. Receiving W-9 in advance ensures that you have all the required information when it comes to filing 1099s, and you are not struggling to gather all this information when the due date is looming.
Use our Bulk TIN Checking service to ensure that you have the correct Tax ID for your recipients. With our TIN checking service, you can catch the error before it is filed with the IRS.
Are you ready to save time and money to e‑file your information returns?
You can create corrected 1099 at eFile360 by logging into your account and clicking on the Create Correction Forms button. You can select the form from the list of forms you have already processed, and choose the appropriate option based on what information you need to correct. Our system creates the Type 1 or Type 2 correction form. You can then alter the data before checking out.
If you filed a 1099 and later realized a mistake, you must submit a correction form. You are required to file the correction form with the IRS and send a corrected copy to the recipient. You must file the correction form as soon as you become aware of the error. You can use eFile360’s 1099 correction filing service to file your forms easily. We help you file the corrected form and guide you through the process.
Yes, corrected 1099 forms can be filed electronically. You will need to register with the IRS and obtain a Transmitter Control Code (TCC) before using the IRS FIRE system.
There is no penalty if the correction form is filed in time. However, if the correction is filed after the due date, the IRS may impose a penalty, depending upon the severity of the issue and how late you submit. Check out 1099 filing penalties for more information.
The IRS wants you to file the corrected form as soon as you become aware of the error on a 1099 form. If you delay filing correction, there may be a late filing penalty imposed. The IRS allows one to submit correction form for the current year and the past three years.
If the name is misspelled or wrong, you must file a correction form. The IRS matches the name on the 1099 form with the tax ID (SSN or EIN), and if they don't match the IRS records, the form is flagged. Type 2 correction is needed to fix errors in name or SSN. Check out the details to see more information on Type 2 corrections.
If the SSN is wrong, you must file a correction form to fix the error. The IRS matches the name on the 1099 form with the tax ID (SSN or EIN), and if they don't match the IRS records, the form is flagged. Type 2 correction is needed to fix errors in SSNs. Check out the details to see more information on Type 2 corrections. You must file the correction with the IRS as well as provide a corrected copy to your recipient.
No, you will not need to amend 1099 to make a recipient address change. The income will still be reported based on the recipient's tax ID. However, you should mail a copy of 1099 to the recipient's new address if one has been provided to you.
For the IRS, the address does not matter. But if the address is not correct, your recipient will not get their statement. You must make sure that your recipient gets the 1099 statement. You can mail a copy to their new/corrected address. You do not have to file a corrected form with the IRS.
If you are filing on paper, it is probably okay to white-out any error made. It is better to fill out a new form. However, if you are still using paper forms, please try and use an online service provider like eFile360 to file your forms. It is both convenient and cost-effective. It does not matter if you have just a few forms or hundreds of forms, filing 1099 electronically is so much easier.
At eFile360 our per form price for corrections is the same as for filing the original form. The price starts at $3.50 per form. Please check out our pricing here.
If you discover you sent a 1099 form by mistake, void it using a corrected form. A correct form with 0 amount in the appropriate box voids the original form. You need to file the voided form with the IRS, provide a copy to the recipient.
The IRS's allows to file corrected forms for the current year as well as past three years. However, there may be a late filing penalty. You can use eFile360 to file your corrected forms for the past three years, even if you did not use our service to file your original forms.
If you filed a 1099-Misc form with the IRS and discovered an error, correct the error as soon as possible. Send the corrected form (Copy A) and Form 1096 to the IRS and furnish a correct statement to the recipient. You can use an online service provider like eFile360, to file your correction forms.