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.
The process is straightforward as long as the error is for dollar amounts. All you need to do is:
- Fill in the correct information on a 1099 form
- Check the corrected box at the top of the form
- Fill out a 1096 and mail the forms to the IRS or e-file the forms without a 1096
The same rules regarding e-filing original 1099 forms apply to corrected forms. If you have 10 or more forms to electronically file for the upcoming tax year, you must e-file them.
Correcting demographic information can be a much more complicated multi-step process. We recommend contacting the IRS for the instructions on your specific case. Using affordable tax software can help you print and/or e-file corrected 1099 forms.
In 2026, information return penalties can range from $60 when up to 30 days late to $680 for intentional disregard. There is no maximum penalty for intentional disregard.
Advanced Micro Solutions’ 1099-etc software includes both W-2 software and 1099 software in one package, along with six optional modules. The modules include:
- Two e-file options (E-File Direct or E-File Services)
- AMS Payroll
- Software Generated Forms
- Forms Filer Plus
- 1042-S Filer
- Affordable Care Act Filer
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, such as 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 the dollar amounts were corrected. Register with the IRS and obtain a Transmitter Control Code (TCC) by filling out the IR Application for TCC and uploading the file to the IRS through the FIRE system.
Frequently Asked Questions
- When are corrected 1099s due? – There is not a hard deadline for filing a business’s corrected 1099s. Aim to resolve all errors as soon as you notice them and ideally file amended forms to the IRS within three years of the original filing date.
- Is there a penalty for filing a corrected 1099? – Yes, but you must still file a corrected form. Filing it sooner will minimize the penalty. The IRS’ penalty depends on the error and whether or not it was intentional.
Advanced Micro Solutions offers a free 1099-etc Demo software so users can be sure that our software will work for them. Free technical support is offered:
- Monday through Friday
- 8 am to 6 pm, Central Time
- Extended hours are available in January and April