If an employer issued a 1099 to contractors and used a SS# instead of the Business TIN in the Payer TIN box, does this need to be corrected? Does the recipient of the 1099 need a corrected copy with the corrected TIN of the business? Do you use the TIN when you file your taxes?
No, this does not need to be corrected and, yes, you do use this number when reporting the income. The 1099-misc issuer has the option to file the form using an employer identification number or his/her social security number. When inputting the form into TurboTax select the option to enter the payer's federal ID number format as a social security number. See my (screenshot) below for reference.
It was an employee's SS# that was entered into the TIN (on 3000+ 1099's) instead of the business TIN. I think that might change your answer. And if any of these contractors have filed already will they need to refile using the correct TIN number?
If your social security number was listed as the payer's TIN rather than as the recipient's TIN then you need to get it corrected.
Will those recipients need to re-file if they have already done so?
Why won't turbotax accept the ss# on a 1099-NEC for EIN
@Suzieq1491 TurboTax does allow you to enter a Social Security number as the payer's federal ID number. Not all 1099-NEC issuer's are businesses. An individual can issue a 1099-NEC.
See the answer by Super Champ @Opus17 to Can I give out Form 1099Misc as an individual and not as a registered business to someone who did freelance work for me this year. And if yes, when do I send it out?
The IRS revived the 1099-NEC for 2020 so his answer refers to 1099-MISC but the information is the same.