USA Amending a 1099/1096

[integrity11]

I have seen many people ask this question, but not once in the way I am asking.

I sent someone a 1099 with an amount that was too high. I found the mistake and need to send him a new 1099 which I will. However, all the advice related to the 1096 say that I only need to correct the amount for the difference.

Example 1
Amount supposed to be on 1099: $10,000
Amount actually sent on 1099: $8,000

Since the 1096 was already sent with $8,000 in Box 5, a new 1096 would need to be sent with ONLY the difference. So I would send Copy A of the 1099 with the CORRECTED box checked along with the 1096 to the IRS. Simple.

However, my example is different:

Example 2
Amount supposed to be on 1099: $10,000
Amount actually sent on 1099: $12,000

If I base my answer on the above example, I would send a new CORRECTED 1099 to the recipient and I would send Copy A of that to the government with the 1096 showing -$2,000.

Is that correct?

 

[kirby]

No
Think of the 1096 form as a "batch total". As such it should equal the sum of all the 1099's you file.
So you are going to send a 1099 for $10,000 and the box at the top of the 1099 that says "Corrected" you will mark with an 'X"
and
The form 1096 will be sent for $10,000 and the box at the top of the 1096 that says 'Corrected" you will mark with an "X"
and of course you send a copy of the corrected 1099 to your payee.

 

[integrity11]

There is no box on the top of the 1096 that says Corrected. Should I just handwrite it on there? This doesn't feel right. Everything else I read said that you only put the difference on there, not the whole amount. I sent out more than one 1099 as well. This might help:

1099 One - $5,000
1099 Two - $2,000
1099 Three - $12,000
1096 = $19,000

But wait, 1099 Three should be $10,000. The 1096 should be $17,000. Do I send a new 1096 that says $17,000 with the words "CORRECTED" hand written at the top or do I just send the difference which would be -$2,000.

 

[kirby]

I flubbed it on 1096. Again it it is just a batch summary form. So the 1096 does not get "corrected" . So just fill out a new 1096 and make sure you are using forms that have the correct year that you are fixing. So use a 2014 form if correcting an original 2014 filing

 

[integrity11]

So in my example above, I will just send a new 1096 that says $17,000. The total number of 1099's I sent but with the corrected amount.

 

[BReswik]

I am having a similar problem....I have a 1099 that went out that was NOT supposed to. So can't I just update the 1096 with the new amount and send to IRS without any other documentation?

 

[kirby]

To Integrity 11

1099 One - $5,000
1099 Two - $2,000
1099 Three - $12,000
1096 = $19,000

Given: you have sent the above out. Then you realize later that the one for $12,000 should be for $10,000

So you file a new 1099 for $10,000 with the corrected box checked
and send that with a 1096 which is in the amount of $10,000 (again the 1096 is a batch summary and this NEW batch sums to $10,000)


To BReswik

Example above applies to you too. The sum of the corrected 1099s that you send to IRS in a batch must have a 1096 in the amount of the sum of the NEW batch.

 

[Tess Arriola]

I filed 260 vendors before the deadline, but after reviewing my vendors, I actually missed 20 more. How do I proceed in correcting this?