1099 Corrections

Easy & Stress-Free 1099 Correction

When Is A Corrected 1099 Required?

1099 corrections apply once a return has already been submitted to the IRS and the information on it turns out to be incorrect.

An incorrect 1099 may be caused by an incorrect payment amount, a recipient name or TIN that does not match IRS records, an incorrect reporting code or checkbox, or the wrong Form 1099 type filed in error.

The appropriate next step depends on the status of the return. If the Form 1099 has not been submitted yet, correct the information before filing. There is no correction process for this.

A correction is required only when a submitted return has been rejected. If the IRS has already accepted the return, but it had incorrect information, the correction must be filed through the applicable 1099 correction form.

For example, a business that files Form 1099-NEC reporting $4,000 in nonemployee compensation, then later identifies that the correct payment amount was $4,500. Because the IRS already accepted the original return, the business must file a correction rather than a new return.

A Form 1099 that should have been filed but was never submitted follows a different filing path. In that case, the payer files a new original return, since no return exists to correct yet.

Situation	Next step to take
Form 1099 not yet filed	Correct the information, then file it
Filed return was rejected	Correct the error and resubmit
Filed return was accepted with incorrect information	File the applicable 1099 correction
Form 1099 was never filed	Submit it as an original return

How to File a Corrected 1099 with Tax1099?

STEP 1

Log in to Tax1099 and select "New Form" from the Dashboard.
Choose the TY, Form Type, and check the box labeled 'corrected' at the top of the form.

STEP 2
STEP 3

Enter the corrected information and review it.
Submit your corrected Form 1099 to the IRS.

STEP 4
STEP 5

Request Employee Copies (eDelivery/Postal).

Corrected 1099 vs VOID: What Is the Difference?

A corrected 1099 and a VOID form may seem similar, but they serve different purposes, and choosing between them depends on whether the incorrect return has already been filed with the IRS.

A corrected 1099 is used to amend 1099 information that has already been filed and accepted. The new information updates or reverses data the IRS already has on record.

A VOID form applies to a paper return that was prepared incorrectly but never submitted. Marking this form as VOID tells the IRS scanning equipment to disregard that copy entirely.

Marking a form VOID does not fix a return that has already been filed. Once the IRS has received an incorrect return, the fix has to go through the applicable correction process.

	Corrected 1099	VOID 1099
When it applies	Return already filed and accepted	Paper return prepared but not yet submitted
What it does	Updates or reverses filed information	Signals IRS equipment to disregard or skip that paper copy
Process required	Applicable 1099 correction process	No IRS correction process involved

Common 1099 Errors that Require a 1099 Correction

Type 1 Errors

Wrong payment amount.
Incorrect code or checkbox.
Wrong name or address for the payee (but the correct Taxpayer Identification Number)
Submitting a form when it wasn't necessary (in this case, the corrected form would show all reported amounts to $0.00, which will signal the IRS to void your submission)

eFile 1099 Correction Forms Now

Payer Name or EIN Errors May Follow a Different Correction Process

An error in the payer's information is not the same as an error involving the recipient’s information. When a payer's legal name, EIN, or other issuer details are reported incorrectly, that mistake may follow a different correction process than the process used to correct 1099 TIN or recipient name errors on the payee side.

For electronic filings through IRIS, payer or issuer information errors follow the applicable IRIS correction procedures. Recipient name or TIN errors generally use the standard correction process, while a wrong form type may require a two-step correction.

Before filing any further returns, you should check the original filing status and make sure that you are following the correct IRS procedure for that particular kind of error.

Due Date

Deadline to file 1099 Correction Form

According to the IRS, there isn't a set deadline for correcting 1099 forms. However, you should file your 1099 Correction Forms as soon as possible to avoid any penalties for incorrect reporting.

If you're still uncertain, please don't hesitate to contact us, and our customer service team will be happy to assist you.

Do 1099 Corrections Need to Be Filed Electronically?

Corrections follow the same electronic filing mandate as the original filing. The electronic filing mandate applies once a business is required to file 10 or more information returns in total during the calendar year.

If the original returns were filed electronically, the corrected versions generally have to be as well. Payers must file corrected 1099 online through the same electronic channel used for the original submission.

What About State 1099 Corrections?

Fixing an error with the IRS only handles the federal forms. States that require a copy of the original Form 1099 generally expect their own corrected copy too, since some state agencies process their own filings.

Say a business filed Form 1099-NEC with both the IRS and a state, then found an error in the payment amount. Correcting the federal return through IRS channels won't update what the state has on record. That state's correction process needs to be handled on its own.

If the error affects only state or local information, do not submit a federal corrected return to change that information. Instead, follow the applicable state or local tax agency's own correction procedure.

FAQs

Yes, a 1099 can be corrected after it has already been filed with the IRS. Figuring out how to correct a 1099 depends on whether the original return was filed electronically or on paper, as well as the specific type of error involved.

Provided that the original Form 1099 was correct except for the payment amount, treat this as a one-step correction, meaning the amendment can be completed in a single filing. When the amended return is filed, it should have the correct payment amount.

When a return was filed electronically, and the recipient's name or TIN turns out to be wrong, use the 1-step correction process. A return that was originally paper-filed doesn't follow this path. It needs the IRS's paper-filing correction procedure instead.

Mixing up Form 1099-MISC and Form 1099-NEC generally triggers a 2-step correction. The original form is first zeroed out, then the correct form type is filed as a new original return with the accurate figures.

Yes, send a corrected 1099 to the recipient when the corrected 1099 contains different information from what the recipient has already been given.