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 1099 software > Learning Center > FIRE > Corrections
Corrected Returns

You uploaded a file to be processed by IRS/ECC-MTB and the file status comes back as GOOD.  Time to take that vacation....  Oh wait! Later, you discover that the file that you uploaded contained erroneous information.  In this case, you need to file a correction.

Basics

First and foremost, corrections need to be filed as soon as possible.  Publication 1220 makes 2-important statements about corrections on page 10:

  1. "Corrections filed after August 1 may be subject to the maximum penalty of $50 per return."

August 1 is the deadline.  Call or e-mail us at support@1099fire.com and we can help you put together a correction.

  1. "...if payers discover errors after August 1, they should file corrections, as a prompt correction is a factor considered in determining whether the intentional disregard penalty should be assessed or whether a waiver of the penalty for reasonable cause may be granted."

Even if you passed the deadline, it's still important to submit a corrected return.

Only correct what was erroneous and resubmit just that corrected information. If you uploaded a file with 250 1099-INT's and 35 records had erroneous information, you need to correct those 35 records and resubmit. Do not send your entire file again.

While the IRS encourages you to file corrections electronically, you may file up to 249 paper corrections even if your originals were filed electronically.  You must file the corrections electronically if you have over 250 corrections, however, you can request a waiver (contact us for more information on how to waive the electronic filing requirement).

Error types

There are two types of corrections:

  1. Error Type 1 (1-step correction)

If you submitted a file with one or more of the following errors:

  1. Incorrect payment (or money) amounts

  2. Incorrect code in the distribution code field (1099-R)

  3. Return should not have been filed

To correct these types of errors takes one step.  You need to prepare a new file and at the top of each record, check the box "Corrected".  By putting a check in the "Corrected" box, the software will identify that payee "B" record as a correction.  Log into the IRS FIRE system and upload the corrected file.

  1. Error Type 2 (2-step correction)

If you submitted a file with one or more of the following errors:

  1. No payee TIN

  2. Incorrect payee TIN

  3. Incorrect payee name

  4. Incorrect payee address

  5. Wrong type of return indicator

To correct these types of errors take two steps.  You first prepare a new file identified as a "G" correction and zero out all of the payment amounts.  Upload that file.  Then you prepare a file identified as a "C" correction with all of the correct information (including money) and upload that.

Call or e-mail (support@1099fire.com) with any questions.  Technical support can guide you through the process of e-filing a correction.

We seek feedback on any aspect of our software.  Please send an e-mail to info@1099fire.com with any comments you might have.

 
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