NCAS

Filing and Correcting 1099 Returns - Paper Corrections (after the magnetic tape has been generated)

Choose the type of error that needs to be corrected.

ERROR 1: No payee TIN (SSN or EIN) or Incorrect TIN, or incorrect name and address. This will require two separate transactions to make the correction properly.
Transaction 1 - Identify the incorrect return being submitted.
  1. Form 1096
    • Prepare a new transmittal Form 1096. This Form 1096 will be used to transmit your corrected returns.
    • This Form 1096 will be used to transmit your corrected returns. Therefore, complete Form 1096 showing your correct name, address, and TIN, and in other boxes enter only information about corrected returns. For example, enter in box 3 of Form 1096 only the number of corrected returns being submitted.
  2. Form 1099
    • Prepare new Forms 1098, 1099, 5498, or W-2G.
    • Enter an X in the corrected box at the top of the forms.
    • Enter the payer, recipient, and account number information exactly as it appeared on the original returns; however, enter 0 (zero) for all money amounts.
    • File Form 1096 and Copies A of the returns with the appropriate service center. Do not include copies of the original returns that were filed incorrectly.

Transaction 2 - Report correct information

  1. Form 1096
    • Prepare a new Form 1096
    • Enter the words "Filed to Correct TIN, name and/or address" at the bottom margin of the form. Provide all requested information on the form as it applies to the returns being prepared.
  2. Form 1099
    • Prepare new Forms 1098, 1099, 5498, or W-2G
    • Do not enter an "X' in the "CORRECTED" box at the top of the forms. Submit the new returns as though they were the originals.
    • Include all correct information on the return including correct TIN.
    • File Form 1096 and Copies A of the returns with the appropriate service center. You must not use the same Form 1096 used in Transaction 1.
    • Do not include copies of the original returns that were filed incorrectly.

 
ERROR 2: Incorrect Money Amounts
  1. Form 1096
    • Prepare a new transmittal Form 1096. Using the instructions in Error 1, Transaction 1 above.
  2. Form 1099
    • Prepare a new information return.
    • Enter an "X" in the "CORRECTED" box at the top of the forms.
    • Enter the payer, recipient, and account number information exactly as it appeared on the original returns; however, enter all correct money amounts in the correct boxes as they should have appeared on the original returns and enter the recipients correct address.
    • File Form 1096 and Copies A of the returns with the appropriate service center.
    • Do not include copies of the original returns that were filed incorrectly.

 

ERROR 3: Original Return was filed using the WRONG type of return. For example, a Form 1099-DIV was filed when a Form 1099-INT should have been filed. This type of error requires two separate transactions to correct.
Transaction 1 - Identify incorrect return being submitted.
  1. Form 1096
    • Follow the instructions under Error 1.
  2. Form 1099
    • Follow the instructions under Error 1, using the same type of form that was used initially.

Transaction 2 - Report correct information on the correct type of return.

  1. Form 1096
    • Follow the instructions under Error 1, Transaction 2-i except enter the words Filed to Correct Document Type in the bottom margin of Form 1096.
  2. Form 1099
    • Follow the instructions under Error 1, Transaction 2, using the proper type of form.