Form 1099 Correction

The 1099 Correction Form is used to make a correction on the Form 1099 you originally filed. There are two types of errors that can be corrected on Form 1099: Type 1 and 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).
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 be sure to enter all 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.

You will prepare a new 1096 and include a note in the bottom margin of the return with a brief description of why the correction was filed. You will not need to include a copy of the originally incorrect return.

The 1099 Correction will need to be sent to:

  • The Internal Revenue Service,
  • Information Returns Branch,
  • 230 Murall Drive, Mail Stop,
  • Kearneysville, WV 25430.
ELECTRONIC FILING

You can easily file both type 1 errors and type 2 errors electronically through ExpressTaxFilings.

You can e-file a 1099 Correction Form with ExpressTaxFilings even if you filed through a different service provider.

With a 1099 Correction Form you can correct three different types of errors:

  • Correct payer details - The IRS does not mandate a correction form to make corrections to certain payer details, such as TIN and name. You will need to send a letter to the IRS with the necessary information along with your signature.
  • Correct recipient & amount details - To correct recipient information, you will need to provide the information originally reported along with the corrections.
  • Void a return - You can void a return that you filed by providing the previously entered payer and recipient information.

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, fail to include all information required to be shown on a return, or include incorrect information on a return.

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