Corrected 1099-NEC

[sbruno]

I received two 1099-NEC forms from the same company. One of the 1099-NEC forms was an error, which was corrected by them sending me a corrected 1099-NEC form showing zero. Two questions, First, where do I show on the software (Desktop Home and Business) that the corrected one has been corrected (I cannot find a box to check that states the 1099-NEC is a corrected 1099-NEC). Second, will this corrected 1099-NEC showing zero, cause a problem with the IRS because of the other 1099-NEC that I received (that is correct as it was given to me). 

[ReneV4]

For your first question, there is no box for you to check to indicate that it was corrected. When preparing your return in TurboTax, you will disregard the original 1099-NEC that was an error and only enter the corrected 1099-NEC. 

For your second question regarding whether it will cause an issue with the IRS, it might because if your original 1099-NEC indicates money that you did receive, but the corrected is now showing zero, you may need to contact the issuer to send you another corrected 1099-NEC with the amount you did receive.

Typically, the IRS will receive both copies and will know that the corrected 1099-NEC supercedes the erroneous 1099-NEC. However, in your case, if the company is now reporting that they paid you zero and you report the income received from the original, there will be a mismatch.

Therefore, before filing, consider contacting the company for a corrected Form 1099-NEC showing the correct amount that they paid you.  

Keep a copy of all 1099-NECs in case there is a question later.