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How to correct a 1099 information return after it has been filed?

November 8th, 2013 No comments

There exists a 1-step and a 2-step corrections which depends on the nature of the error.

It is important to first differentiate between a correction and omission.  If you submitted a file and it is processed by IRS/ECC-MTB, and you later discover that certain information returns were omitted or left out from the original file, then you need to create a separate file with the omitted returns and resubmit.  If you submitted a file and it was processed by IRS/ECC-MTB, and you later realize that the file has erroneous, then you need to file a correction of just those records.

If the dollar amounts or address are incorrect and/or a return was filed when one should not have been filed, the correction is a one-step process. Simply prepare a new information return and enter an “X” in the Corrected box at the top of the form. Enter the payer, recipient and account number information exactly as it appeared on the original incorrect return. Enter all correct money amounts in the correct boxes as they should have appeared on the original return and enter the recipient’s correct address. If a return should not have been filed, enter “0” (zero) for all dollar amounts. Submit the corrected returns with an Annual Summary and Transmittal of U.S. Information Returns (Form 1096).

If the recipient’s identification number was incorrect or missing when originally filed or the recipient’s name was wrong, correcting these errors is a two-step process. First, prepare a new information return with the payer, recipient and account number information exactly as it appeared on the original incorrect return and enter “0” (zero) for all the dollar amounts. Enter an “X” in the Corrected box at the top of the form. The second step is to prepare another new information return with all the correct information. DO NOT enter an “X” in the Corrected box on this return. Submit both returns to the appropriate service center accompanied by a completed Form 1096. Enter the words “Filed to Correct TIN, Name and/or Address” in the bottom margin of the form.

If the original information return was filed using the wrong type of return, follow the two-step procedure above with one exception. Enter the words “Filed to Correct Document Type” in the bottom margin of the Form 1096.

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Rules for Paper filing 1099 IRS Forms

June 3rd, 2013 No comments

There is a tremendous level of comfort in filing 1099 forms by paper. Especially if you are submitting just a few 1099 tax forms per year.

My accountant is probably 80 plus years old (I never asked him his exact age). Every year when I file my taxes, I have one 1099-MISC tax form that needs to be filled out and submitted. My accountant fills out IRS Form 1099-MISC by hand with an ordinary pen and hands it to me to mail.

There were 2-questions I investigated and write about below.

Can I submit handwritten 1099 forms to the IRS?

Yes.  General Instructions for Certain Information Returns can be found on the internet. If you search for Paper Document Reporting you can read:

“Although handwritten forms are acceptable, they must be completely legible and accurate to avoid processing errors.”

Use black ink, block print and not script characters. The general instructions also state that if you have no data for a particular box to just leave it blank. Do not enter 0 or “none” if you have no money value.

Send the 1099 form along with the 1096 form as separate forms. Do not use staples on any of the forms.

Where to mail paper information returns?

If your principal business or legal residence is located in:

Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Vermont, Virginia or West Virginia, then you mail your paper information returns to Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301.

If your principal business or legal residence is located in:

Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin or Wyoming, then you mail your paper information returns to Department of the Treasury, Internal Revenue Service Center, Kansas City, MO 64999.

And if your legal residence or principal place of business is outside the United States, file with the Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301.

Due Dates

Copy A of 1099 forms typically must be postmarked and mailed by the end of February.  If you file electronically, you get an extra month of time to file.  Also when filing electronically, you can automatically apply for an receive a one month extension.

I hope this helps when paper filing this year.

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