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. The best way to get ahead of any tax filing penalties is by using software. But if it does happen, 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 any 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
- Mistakenly filing a return
Type 2 errors on 1099 forms include if a business:
- Omits a Taxpayer Identification Number
- Enters the wrong payer name or payee TIN
Fill out an amended 1099 form and make sure to mark the “corrected” box so 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.
Consider our W-2/1099 Forms Filer to input your data onto entry screens that look like 1099 forms. Download our free 1099-etc Demo software for insight into our core program and six optional modules.