Follow these steps to generate a corrected 1099 or 1096:
Corrected 1099 and 1096 forms can be generated in the Information Return System (IRS).
Corrected Form 1099:
- Open the IRS and choose Return Preparation.
- Select the company to process.
- Select Prepare Forms/Returns.
- At the Forms Selection screen, select the type of 1099 you wish to correct (for example, 1099-MISC) and select Accept.
- Using the Recipient's ID Number dropdown menu, select the 1099 form to correct.
- Choose Corrected from the right side of the screen.
- Select the type of correction:
- Error Type 1 - Use to report incorrect money amounts, codes, checkboxes or addresses, or if the return was filed in error.
- EasyACCT creates a new 1099 (the 1099 is marked Corrected and has the date corrected next to it. Only the corrected copy will print).
- The corrected type indicated is C1.
- Enter the corrected amounts.
- Error Type 2 - Use when there's no payee taxpayer ID number (TIN), an incorrect payee TIN, an incorrect name or address, or if the wrong type of return was originally filed.
- EasyACCT creates two new forms, a Corrected Type C2-1 and C2-2.
- C2-1 is used for forms filed in error. The originally reported payee, payer and recipient information are included and the dollar amounts are $0.00. The C2-1 form will be marked Corrected and dated on the printed copy.
- C2-2 is used to correct the payee information; all original dollar amounts are included. Enter corrections to the payee's information on this form. The corrected box isn't checked on the printed copy, but is dated on the form.
- Enter the Date Corrected in the box next to the type of error.
- Make the necessary corrections. Select Save and then Close.
- According to the instructions, the void box is only to be selected when a Form 1099 has been partially or incorrectly completed and then corrected on the same page before filed.
- An X in the void box won't correct a previously filed return. The program doesn't select the box because you can correct any mistakes on the original form preparation screen before printing.
- For more information, visit www.irs.gov/pub/irs-pdf/i1099gi.pdf and refer to pages 7-8.
Corrected Form 1096:
- After processing the corrected 1099s, return to the Forms Selection screen.
- Select Form 1096.
- From the Type of Form field, select the 1099 that was corrected.
- To include only corrected forms, mark the checkbox to Only include corrected forms.
- Comments regarding corrections can be added in the Corrected Comments field in (the comments print in the margin of the printed Form 1096).
To print a corrected Form 1099 or 1096:
- At the System Navigator for Return Preparation, select Print Options, Print Forms.
- Select either the 1099 or Form 1096 and select Next.
- Select the copy to print.
- If printing the Form 1096, select the type of 1099 being reported.
- In the Other Options section, select the checkbox to Only include corrected forms and uncheck Suppress form printing if < minimum.
- Select Print.