Act promptly once you realize that you need to correct a 1099 after it has been filed. Failing to fix a 1099 error may lead to costly consequences for your business. There are several reasons why businesses may need to make amendments. Perhaps a contractor provided false or inaccurate information on a W-9 form. Maybe you entered the wrong total dollar amount. You must address any of these common issues by taking three simple steps:
Step 1: Use Form 1096. Do not simply send the IRS another Form 1099 once you identify your mistake. Send a Form 1096 with each corrected 1099 form. Provide information about the filer and check the relevant box.
Step 2: Send an amended 1099. Check the box labeled “corrected” at the top of your form. Do not include your original, inaccurate 1099 form. Send a Form 1096 with the corrected form when you physically mail the new copy.
Step 3: Make sure your information is accurate. Amending a 1099 form is simple, but making no mistakes is even more ideal. Consider requesting updated W-9 forms before you process an independent contractor’s 1099 form. Double-check the numbers that you enter onto forms.
At AMS, we streamline 1099 filing with our W-2/1099 Forms Filer software. No software can prevent users from making tax-related errors. Automated tools may catch mistakes earlier. You can also quickly correct a 1099 after it has been filed by electronically submitting amended forms to the IRS. Call us today at (405) 340-0697 to learn more.