topic Corrected 1099-MISC info not matching in State tax filing

Corrected 1099-MISC info not matching

ParagonRob — Tue, 28 Apr 2020 14:43:40 GMT

I received a 1099-MISC from a client and didn't realize until I went to file that they forgot to add a state to box 17. Box 17 had their TIN and box 18 had an amount, but no state in 17.

I asked them for a corrected form, and they sent one, but when they corrected it, the account number was changed. From what I can find online, the account numbers have to match between corrected forms or else the IRS/State won't know they're the same transaction.

If they submitted this corrected form without making sure the account numbers match, how do I know there aren't two forms on file now, and that I won't get an audit flag for seemingly skipping one on my return?

Re: Corrected 1099-MISC info not matching

JotikaT2 — Fri, 01 May 2020 21:41:47 GMT

It depends.

Are the federal amounts the same?

If so, does the new 1099-MISC form show that is was corrected?

You would find this box on the top of the form.

As long as the form has the Payer's TIN and is marked as being Corrected, you would be fine.

If however, the payer's TIN has changed, you will need to contact the client and let them know they have reported your income twice to the IRS.

They should take the appropriate steps to correct their filing to ensure you are only issued a 1099-MISC for the income you actually receive and that any other forms issued erroneously are corrected.

Re: Corrected 1099-MISC info not matching

ParagonRob — Fri, 01 May 2020 21:47:00 GMT

@JotikaT2

Everything is the same except for the Account # and the state being added to Box 17, which was missing on the original form. They did mark this one "Corrected" - They also claim they never filed the first one with the missing state in Box 17, and we have to take their word for that.

I just got concerned because I read that the IRS and the Payer use the account number as a way to identify the recipient, so I was worried that the IRS may have both forms and think the same client issues two different 1099s for the same amount of money. But then again, since one is marked corrected, perhaps it would just override the original despite the account number difference. The book keeper that provided it claims their software automatically assigned a random account number and she had no control over it.

Re: Corrected 1099-MISC info not matching

JotikaT2 — Fri, 01 May 2020 21:57:14 GMT

You will be fine then!

The corrected box being checked and the fact that it still shows the same payer's TIN will be proof enough to show that the source was the same should the state request additional information.

I would also retain the correspondence with the bookkeeper with your source documents as additional support if you ever need it.