What happens when you report the wrong information on a 1099? You need to issue a corrected 1099 as soon as possible after you notice the error.
As long as the error is for dollar amounts the process is straightforward. All you need to do is fill in the correct information on a 1099 form and check the corrected box at the top of the form. From there you either fill out a 1096 and mail the forms into the IRS or you can E-File the forms. The same rules regarding E-Filing original 1099 forms apply to corrected forms. If you have more than 250 of a specific type of corrected form you must E-File.
Correcting demographic information can be a much more complicated multi-step process so you should contact the IRS for instructions on your specific case.
A software package can help you print and/or E-File corrected 1099 forms.
Advanced Micro Solutions’ 1099-etc software includes both W-2 software and 1099 software in one package along with optional modules including a payroll software option, AMS Payroll, and a forms filler option, Forms Filer Plus along with two e-file options: E-File Direct and E-File Services.
You can use 1099-etc to enter your corrected 1099 forms directly into a window that looks like the form itself. The data can also be imported from several outside sources including delimited text files or straight from Excel using copy and paste. You can print out the recipient’s copy on pre-printed forms or plain paper using our optional software generated forms option.
E-File Direct can be used to file an unlimited number of corrected 1099 forms where dollar amounts have been corrected. You will need to register with the IRS and obtain a Transmitter Control Code (TCC) by filing out form 4419 and upload the file to the IRS through the FIRE system.
Advanced Micro Solutions offers a free DEMO so that you can be sure that our software will work for you. Free Technical Support is offered Monday thru Friday from 8 AM to 6 PM central time, with extended hours in January and April.