The Proper Way to Amend Form 1099

Tax Professionals Resource
September 26, 2012 — 6,064 views  
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Discovering a mistake on a 1099 form that has already been filed can be
stressful. Without amending the form quickly, it could lead to serious problems
down the road. Luckily, amending a 1099 is easy. The most important thing is to
amend it as soon as you realize that a mistake has been made. There are many
reasons to amend a 1099 form. In some cases, the W-9 form upon which you based
the information was filled out incorrectly. In others, the total dollar amount
that is written on the form is incorrect. Whatever the reason may be, the most
critical thing is to amend the form promptly. Information about doing so is
highlighted below.

Use Form 1096

To let the IRS know that a correction has been made to a 1099, you need to send
them an updated copy. Don't just send them another 1099 though. You should send
it along with Form 1096. Form 1096 is titled Annual Summary and Transmittal of
U.S. Information Returns. Filling out the form is easy. You need to provide
information about the filer. You also need to check the appropriate box. In
most cases, you should check box 95, which is for Form 1099-MISC.

Include a Corrected Copy

You also need to include a corrected copy of the 1099 form. Do not include a
copy of the original, or the IRS might not make the requested changes. The only
copy that you include should be the amended copy. At the top of Form 1099, you
will see two boxes. One is labeled "void," and the other is labeled
"corrected." Put a check mark in the "corrected" box. This will
let the IRS know that the form has been corrected. As long as you include Form
1096, the requested changes will be made.

Ensure Accurate Information

Although it's easy to amend form 1099, it's better to file it correctly in the
first place. One way to increase the odds of filing a correct copy is by
requesting an updated W-9 form immediately before processing a 1099. The
numbers should also be double-checked carefully before the 1099 is sent to the
IRS. With these small steps, you can largely eliminate errors that may require
you to file an amended copy later. All of the necessary forms and instructions
are available through the IRS website, and the appropriate address can be found
on the 1096 form as well.

Tax Professionals Resource