In short: Yes, you can still file a 1099 correction form 2018. Mistakes happen, especially at small businesses. Without the ability to hire a full-time accountant or accounting team, keeping tax and wage forms straight can be a challenge. If you discovered a mistake on a 1099 form from 2018 while going through your files, you’re not alone. That said, you should do what you can to fix it.
Luckily, filing a 1099 correction form 2018 is simple. Unlike form W-2, there is no separate correction form for a 1099. You’ll need to simply fill out the original form and mark the box labeled “CORRECTED” at the top.
More importantly, you and your business will need to work to eliminate future mistakes and incorrect filings. Investing in a comprehensive accounting software is a great first step. We’ll show you how.
Do You Need to Issue a Corrected 1099?
Before rushing out the door to file a 1099 correction form 2018, you’ll need to determine if a correction is necessary. Businesses must only issue corrected 1099 forms to the IRS if they have already submitted an incorrect form to the agency. An error can entail any of the following:
- You filed a return you shouldn’t have filed
- You marked an incorrect checkbox
- You filed the wrong type of return, like a different type of 1099 form
- The payee’s taxpayer ID number or name is incorrect
- You entered the incorrect codes or money amounts
If you have not yet sent the incorrect 1099 form to the IRS, it will need to be voided, but you will not need to file a correction. Additionally, if you made a mistake reporting your taxpayer ID number or name, you will not need to file a correction. Instead, you’ll need to write a letter to the IRS.
Software Solutions from AMS Can Help
Discovering a 1099 mistake several years after the deadline is something that many small businesses experience. These entities often don’t have the budget or employment power to spend a lot of time on end-of-year tax and wage filing. If you’d like to both cut down the time you spend on taxes while working more accurately and efficiently, Advanced Micro Solutions is an excellent option.
Our W-2 and 1099 Forms Filer is a good place to start. This software allows users to enter data directly onto a digital facsimile of the form. Plus, you’ll have the option to electronically file directly from the software. But, if you’re struggling to keep 1099 forms organized, we recommend adding AMS Payroll to the mix. This is a semi-automated payroll software that automatically calculates taxes and paychecks. This data is stored within the software, enabling its use for end-of-year 1099 and W-2 reporting. We can’t promise you’ll never accidentally misreport a number, but we can certainly improve your accuracy.
If you’re interested in any AMS software options, consider our free, downloadable demo. This is the best way to get a feel for the tools. Those with lingering questions can consult our customer testimonials or reach out to our Sales and Information team at 800-536-1099. A 1099 correction form 2018 shouldn’t cause concern on its own, but it often points to a greater need.