First, if everything else is correct on the form except the spelling of the contractor's name I would issue a corrected copy to the contractor but not bother to send one to the IRS. They will find the correct contractor with their identification number.
If you are determined to submit the correction to the IRS, however, it is easier to mail the correction in. Since you are only changing a name and it's spelling the TurboTax system will have trouble submitting it electronically.
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