1099 Corrections: Type I and Type II

Not everyone has a knack for names and numbers. Unfortunately, the IRS is not very sympathetic when it comes to name-TIN mismatches.

The IRS can be unforgiving when it comes to returns filed with incorrect information. If you’ve been lying awake, waiting for the IRS to break down your door and give you 5-10 in a cold cell for reporting Box 4’s amount in Box 7…go through the corrected filing process. It’s a good alternative to fleeing the country.

“I just got my 1099 form, and you spelled my name wrong. I’m Abbey, with an ‘ey.’”

Some parents buy an extra vowel when naming their kids. Don’t hold it against your vendor –  you can smooth this over with the IRS pretty easily. Navigate to the Forms tab on the left hand side of your Tax1099.com screen. Click “New Form,” and select the same type of form that you filed for Abby (sans the “ey”). This new form will fix the name issue, so long as you check the “corrected” box at the top of the page. Fill in the info for the person you thought you knew (Abby, rather than Abbey). Then, zero the amount you originally filed. Submit the form. This will tell the IRS how sorry you are to have forgotten the “e,” and make it like it never happened.
To introduce the IRS to the Abbey you know and love, go again to Forms > New Form, and select the form you need to file for Abbey. You’re starting with a clean slate now, so don’t check the “corrected” box on this form. Edit her name in the recipient box, submit the form, and rest easy.

“I think I forgot to tell you that I write my 1’s like 7’s…is it too late?”

Well, if the vendor’s social is 111-11-1111, but it looked like 777-77-7777 on the W-9, there might be a problem. Quick! Before the IRS breaks down your door, go to Tax1099.com > Forms > New Form. Select the same type of form as you filed for 777-77-7777. You’ll check the “corrected” box at the top of the page. Input 777-77-7777’s information as you originally filed it. Enter zero amounts in the relevant boxes. You’ll submit that corrected form, and file and submit a new form with the accurate information. Vendor 111-11-1111 will think you’re #1.

“I don’t know who worked on a fishing boat for you, but it wasn’t me. I’m your personal finance consultant … and I made $2,000, not $20,000.”

That’s so embarrassing for you … you’ve been dreaming of becoming a fishing boat captain, and now you’ve slipped up and reported your hidden wish to the IRS. Blame it on that Facebook post you saw on Freud, blame it on the crazy tax season, or, you know, you could just file a corrected form. Go to the Forms tab in Tax1099.com, select the same type of form you originally filed from “New Forms,” fill out the vendor’s information, and fish the vendor’s box amounts out of your files (and put it in the right box this time!). Select the “corrected” box at the top of the page, and submit the form. Maybe your boss will give you a raise, and you’ll get that fishing boat up and running after all.

“What are you trying to pull? I don’t work for you anymore, why did you send me this form?”

The IRS isn’t the only entity that gets excited when 1099 forms aren’t as they should be. One of your vendors could easily rival their energetic inquiries, especially if … they aren’t … actually … your vendor … hmm. Maybe this vendor worked for you last year, and you’ve accidentally filed the old information a second time. It’ll be okay. Head over to Tax1099.com, click on Forms > New Form. Select the same type of form you’re kicking yourself for filing the first time. Key in the vendor’s information, and put zero amounts in the relevant boxes. Check the Corrected box at the top of the form before you submit, then go grab some tacos! It’s always good to catch up with old friends.

We hope this has been helpful to you! As always, feel free to chat with us, or email [email protected] if you have any questions.