Information Returns - Form 1099 Correction

The 1099 Corrections Form is used to report a correction found on your originally filed Form 1099. There are two types of errors that can be corrected on Form 1099: Type 1 Errors & Type 2 Errors.

  • Type 1 Errors: Incorrect tax amount(s), code, checkbox, 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 fill a 1099-DIV).

FEB

2

Due Date

Provide 2014 Form 1099 to all RecipientsLast day to Send

Mar

2

Due Date

Paper Filing Deadline to send the 2014 Form 1099

Mar

31

Due Date

E-File Deadline for 2014 IRS
Form 1099

Paper Filing

To paper file a correction for Type 1 errors you will create a new return and enter an “X” in the “CORRECTED” box at the top of the form along with the date. File the form just as you did before, but enter the originally incorrect information correctly. Include a new form 1096 with an “X” in the “CORRECTED” box. You will not need to include the original incorrect form.

To paper file Type 2 Errors you will need to first prepare a new return. Enter an “X” in the CORRECTED box at the top of the form, including the date.

Next, enter the payer, recipient, and account number information exactly as it appeared on the original incorrect return; however, do enter a 0 (zero) for all money amounts. You will file the return as if it was the original return except replace the incorrect information with the correct information.

Electronic Filing

You can easily file both Type 1 errors and Type 2 errors electronically throughExpressTaxFilings.com by and follow the prompted steps to do so. You can file a correction electronically even if you paper filed Form 1099.

Penalties for Form 1099 Correction

If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return.

The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.