Yes, but all businesses must file an amended 1099 form if they make a mistake on their original form. The Internal Revenue Service’s penalty depends on the error and if it was intentional. Your business will most likely pay $100 per incident. The business may need to pay an additional fee of $100 since the IRS will send a statement to the individual who received an erroneous form. A business will also incur a $60 penalty for information returns or payment statements due in 2024 that are up to 30 days late. There is no maximum penalty for intentional disregard.
Type 1 errors include any wrong codes or checkboxes, reporting incorrect money amounts, or if you mistakenly file a return. Type 2 errors on 1099 forms include if a business omits a Taxpayer Identification Number or enters the wrong payer name or payee TIN. Fill out an amended 1099 form and make sure to mark the “corrected” box so that the IRS knows it is not a new form. Enter the correct information and other accurate information that was on your original form. Mail or e-file the corrected form to the IRS upon completion and give a copy to your 1099 contractor.
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