The Proper Way to Amend Form 1099

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January 19, 2022
Author: Lorman Education

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 act as soon as you realize that a mistake has been made.

When to Amend a 1099

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.

Below is a 3-step method to amending a 1099:

1. 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, which 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 and check the appropriate box. In most cases, you should check box 95, which is for Form 1099-MISC.

2. 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. As long as you include Form 1096, the requested changes will be made.

3. 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.

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