Adams Tax Forms Helper Online makes it easy to create a corrected 1099 form for federal agencies. But will you always need a new form? The answer is no.
Determine the type of error
The IRS asks for different corrective actions based on the type of error made.
You can find detailed instructions at the IRS website, but here are the basics.
Error: Incorrect Payor Name, Payor TIN, or both
Action: Write a letter to the IRS
A corrected form is NOT required to correct an incorrect payer name (yours or your client’s name/company name) or the payer’s taxpayer identification number (TIN). Instead, you may write a letter containing the following information.
Name and address of the payer.
Type of error (including the incorrect payer name/TIN that was reported).
Tax year.
Payer TIN.
Transmitter Control Code (email support@adamstaxforms.com for our TCC)
Type of return.
Number of payees.
Filing method (paper or electronic).
Was federal income tax withheld?
Send your letter to:
Internal Revenue Service
Information Returns Branch
230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
Type 1 Error: Incorrect money amount, code, or checkbox, or you filed an unnecessary return
Action: Tax Forms Helper will help you create a corrected copy A and a new 1096
Tax Forms Helper will guide you through printing the necessary forms in 2 steps.
Step 1: Make the Correction
Select the Form Type tab (1099-NEC in our example), then select the “file correction” link to the right of the form you need to correct.
Note: If you eFiled, the status must be listed as filed before you can make a Type 1 correction.
Choose “Type 1” as the reason you’re making the correction.
Click “Proceed”.
Tax Forms Helper will now re-open your 1099-NEC so you can make corrections in any of the dollar-amount related fields.
Correct your money amounts. You’ll notice that all of the other fields on the page are uneditable. Only money fields and checkboxes may change.
Tax Forms Helper will highlight the checkboxes and fields previously left blank. Make sure these selections are still correct.
Scroll to the bottom of the page and click “Save.”
Step 2 for paper filers—printing
Next, we’ll help you print the 2 red ink forms you’ll need to mail to the IRS.
Print "Step 1" your new NEC copy A onto your pre-printed tax form
Print "Step 2" a new 1096 form onto your pre-printed tax form.
Print "Step 3" (optional) use the links at the bottom of the page to print copies of each form for your records. (Remember, these black-ink, plain paper copies are not suitable for filing.)
Mailing your new printouts
Mail your Form 1096 and Copy A forms to the appropriate IRS Submission Processing Center.
Step 2 for eFilers (New!)
If you eFiled your record then an option to eFile your correction will appear at the top of the print dialog page.
Click “eFile” at the top of the print page.
Select the 1099 tab you need (in our example, 1099-NEC) and check the federal eFile box from the list of eServices.
Select Print & Mail Assistant if you would like to mail the new correct copies to your recipients.
Note: eFiling is only available for federal corrections with the IRS. Please review the rules and recommendations for any states you filed with.
TIP: The Print and Mail Assistant checkbox is only available for a limited time. If the checkbox is no longer available, you’ll need to submit corrected copies to your recipients independently.
Type 2 Error: Incorrect Payee Name, Payee TIN, or both
Action: Create 2 duplicate 1099 Copy A forms and a new 1096
Step 1: Make the Correction
Select the Form Type tab (1099-NEC in our example), then select the “file correction” link to the right of the form you need to correct.
Note: If you eFiled, the status must be listed as filed before you can make a Type 2 correction.
Choose “Type 2” as the reason you’re making the correction.
Click “Proceed”.
Tax Forms Helper will now re-open your 1099-NEC so you can make corrections in the appropriate payee or TIN fields.
Correct your Payee Name, Payee TIN, or both. You’ll notice that all the other fields on the page are uneditable.
Tax Forms Helper will highlight the checkboxes and fields previously left blank. Make sure these selections are still correct.
Scroll to the bottom of the page and click “Save.”
Step 2 for paper filers—printing
Next, let’s produce the 3 red ink forms you’ll need to mail to the IRS.
Print Step 1 a new CORRECTED 1099-NEC copy A onto a pre-printed form. This form will have the same information as your original tax form but has X in the CORRECTED box and zeros in the amounts. This removes the old form from the IRS records.
Print Step 2 a new 1099-NEC with the correct data onto a pre-printed form.
Print Step 3 a new 1096 form onto a pre-printed form.
Print Step 4 (optional) use the links at the bottom of the page to print copies of each form for your records.
Mailing your new printouts
Mail your Form 1096 and both Copy A forms to the appropriate IRS Submission Processing Center.
Step 2 for eFilers (New!)
If you eFiled your record then an option to eFile your correction will appear at the top of the print dialog page.
Print your recipient copies if needed
Click “eFile”
Select the 1099 tab you need (in our example, 1099-NEC) and check the federal eFile box from the list of eServices.
Note: eFiling is only available for federal corrections with the IRS. Please review the rules and recommendations for any states you filed with.