I used Quick Employer Forms to prepare and file a 1099-NEC for a contractor. He now tells me his SSN is incorrect. QEF says they don't support amending 1099's. In researching it appears I have to make the correction on paper using transmittal Form 1096 and submit a zero dollar 1099-NEC with the original incorrect SSN but zero paid in Box 1 and then prepare a second 1099-NEC with the correct SSN and the amount paid in Box 1.
Do I have this right? Are there other actions to take?
Yes, you not only have this right, but you have this responsibility. You'll need to prepare corrected paper forms, just as your research has instructed you to do.
Just checking: Have you already FILED the 1099-NEC? If not, you could just issue a correct Form 1099-NEC and issue it to the contractor. Then just destroy the incorrect forms.
If you have already filed (sounds like you have), you'll need to issue the corrected form and the accompanying 1096. So sorry. I am unaware of any other ways to correct this error.
@toddrub46 Shoot. So sorry, but you do need to issue corrected tax documents.
Can you tell me how exactly you did that. I filed a 1099-NEC form for an employee and had the incorrect $ amount. How do I go about correcting this? As much detail as possible would be greatly appreciated.
First you need to order Form 1096 directly from the IRS. This can take up to 10 days to receive. You cannot simply print off the form from the on-line irs.gov site because it’s a machine readable form. You then need to prepare a 1099-NEC form exactly as you did the first time but mark it “corrected” at the top and then put the correct $ amount in box 1. File the form 1096 and the corrected 1099-NEC with the IRS at the address listed on the form.
Instead of ordering the Form 1096 from the IRS, can the Form 1096 that is printed out by Turbo Tax Business 2020 be use along with Copy A of the 1099-NEC (with Corrected checked) to send to the IRS?
Thank you for the response. I bought the Form 1096 and software from Office Depot.
It's a shame that TurboTax Business 2020 costs so much, but doesn't allow a "Corrected" 1099-NEC to be filed.