There are several gray areas when you amend a 1099 before you’ve filed. The steps you should take will depend on where you are in the filing process when you notice a mistake. We’ve laid out a few examples below to help guide you to an answer.
You’ve already filed and aren’t aware of a mistake. If you have a mistake, the IRS will often catch it. They will also correct simple math errors before accepting the tax documents. The agency may also contact you to make these corrections. Most of this happens before the IRS accepts the tax documents. If this describes your situation, you will not need to amend the 1099 form.
You may notice an error on the part of a 1099 form that is part of a Do Not Detach instruction. If this happens, all you need to do is check the box that says “Void.” This will let the IRS know they can simply disregard the form. You will likely need to re-file with the correct information.
This is where a lot of businesses find themselves. You’ve sent the recipient copy, but you haven’t yet filed with the IRS. Somewhere in the middle, you noticed a mistake. The fix is simple: Notify the recipient of the mistake and ask them to destroy the copy with errors. Then, create a new copy and send all required versions of the form. If this means you miss a deadline, be sure to record the reason for the late filing. If the IRS imposes a penalty, you may be able to appeal it with this good faith excuse.
Software Solutions for Amending 1099 Forms
Amending 1099 forms can be annoying, but software support can make the process simpler. The W-2/1099 Forms Filer is a great tool to have in your back pocket when preparing and filing tax and wage forms. Users can create an unlimited number of the form, an essential part of fixing mistakes on a 1099.
If you’re curious about how this tool can improve your filing process, check out our free downloadable demo.