corrected 1099-misc

[mootzie]

I entered the incorrect $$ on the 1099-misc I sent in electronically. It has been accepted by the IRS. What do I need to do to correct it?

[TomK2023]

You will need to amend your return.  Wait until your return has fully processed first (you receive a refund or a balance due is paid, which ever is applicable to your situation).

If you prepared your original tax return using TurboTax:

1. Log in to your account.
2. Open the tax return you already filed.
3. Click on the link to amend your return.
4. The software will walk you through the process of filing the amendment.

[mootzie]

When the IRS accepted my original 1099 misc form, I got notification from the Quick Forms Team with this additional caveat: 
You do not need to take any action with this information. It is simply an acknowledgment of acceptance. You may also view your forms and e-file status at Quick Employer Forms

Please, note that form corrections are not supported by Quick Employer Forms.

So, when I go into IRIS on the IRS website, I can't find the original1099 misc in order to correct it. Does this mean that corrected 1099's will have to be submitted by paper?

[mootzie]

My question is asking how to amend an information return, not my tax return. I sent a recipient a 1099 with information that needs to be corrected

[VolvoGirl]

Right that answer was to amend your personal return for a 1099 you received, not sent.

From the QEF faq https://quickemployerforms.intuit.com/faq.htm#CorrectForms

How can I correct a Form 1099 or W-2 that has already been sent and accepted by the IRS or SSA?

QEF does not support corrected forms at this time. Once the original e-filing is accepted:

To file a corrected W-2, go to the SSA website and file the corrected form, W-2C electronically. You can also use the IRS website for forms and instructions.

To file a corrected 1099, use the IRS website forms and instructions for corrections.

[VolvoGirl]

To correct a 1099Misc see page 4.  For 1099NEC see page 9

https://www.irs.gov/pub/irs-pdf/i1099mec.pdf

[mootzie]

Yes, I've looked at Publication 1220. That is directed to the FIRE system which the IRS informed me that you need special software to use. It's pretty much used by big businesses. I would need to go through the IRIS system. But the submitted 1099 misc does not show up there because I did not submit the original through there. Surely, I am not the only one that is stuck because Turbo Tax doesn't support corrections. Or maybe I'm just not getting it. Can anyone tell me exactly how to do the correction on line beyond sending me a link? This is so frustrating and time consuming.

[VolvoGirl]

I haven't looked at pub 1220.  But here's what I found.

See 1099 instructions Part H page 10

https://www.irs.gov/pub/irs-pdf/i1099gi.pdf

Here is a blank 1099Misc to use.  Mark the corrected box at top

https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

And the 1096 Transmittal

https://www.irs.gov/pub/irs-pdf/f1096.pdf

[mootzie]

So, this is what I have found out. If a 1099 is filed electronically, which TT did, then a corrected 1099 must also be filed electronically. TT does not support corrected 1099's (not cool). They direct you to the IRS website making you think that you can file them electronically from there. Unless you have special software (and why would you since you're using TT), you can not do this electronically. The forms VolvoGirl directed me to, are not able to be filed electronically as is. 

Since now you are caught between a rock and a hard place, you have to find yourself a 3rd party filer ie an accountant or a place like H&R Block to do it for you. I called H&R Block and they quoted me $145!!! 

My suggestion to anyone that has to file a 1099 and wants to do it electronically, get a TCC for IRIS and do it through there. It's free and you can make corrections through there since you filed the 1099 through there to begin with. Hindsight is 20/20. DON'T do it through TT, unless you have extra money to spend to correct a mistake. I find it unconscionable to offer a service that isn't fully capable of doing the job. Yes, they do warn you up front that they don't support corrections, but they don't let you know it isn't the easy fix they make you believe it is.

[donut-guy]

I agree with mootzie.  My situation is slightly different, but have a similar frustration.  I efiled a 1099-INT through Quick Employer Forms.  Then I realized that I had made an error and needed to correct it.  I went into QEF (without reading all the instructions), made the correction and marked the CORRECTED box. (The software didn't prevent me from marking the "CORRECTED" box.)  I submitted it on Jan. 15.  Now Jan. 31 is fast approaching, and my efiling status is still "submitted for efile."  I don't see a method for killing the submission.