Small business owners may wonder whether you can e-file a corrected 1099 form. The short answer is, yes. Take the following steps in order to promptly e-file a corrected 1099 form:
Choose the type of correction. Enter the correct details for incorrect recipient names or TIN corrections. Input the correct amounts in the appropriate boxes for mistaken amounts. Indicate a correction was made by marking “corrected” on top of your new 1099 form.
Enter the payer information. Send a letter to the IRS with the payer name and TIN.
Enter the correct 1099 information. Appropriately fill out all of the boxes. Write “zero” for the money amounts if you only need to fix the payer’s name or account number.
Review and transmit your 1099s to the IRS. Use an e-file service to directly submit your 1099 form corrections to the IRS. Send a recipient copy to your contractor and a copy to the relevant state tax department.