FILING CORRECTED RETURNS ELECTRONICALLY
Warning: Never change your source file after it has been successfully filed to the IRS. Keep and preserve all information, including all errors discovered after filing. Instead of changing the original file, you must create a new file containing just corrections. See the example file called XYZCorpCorrections1.src.
To e-File corrections, you must understand PAPER CORRECTIONS shown above, and IRS Error Type 1 and Error Type 2. e-File corrections are handled exactly like PAPER corrections, but without the paper 1099 or 1096 forms.
Before Starting Corrections Note:
- Are corrections for recipients only? Before filing to the IRS? If so, see
Recipient Corrections.
- Were people left out of the original IRS filing? If so, send just those persons as a new original file, not a corrections file.
- Never send your entire file again. Only send the 1099 forms in need of addition or correction.
- You may file up to 249 paper corrections to the IRS even though your originals were filed by diskette or e-filed.
- Did you e-file less than 10 days ago? If so, see
Grace Period.
- Include the original account number on corrections, for more information see
Account Numbers.
- You can do a few corrections by hand with a ball point pen, see
Paper Forms.
- 1099 Express corrections improved in 2006 and no longer use code1, code A, Batch1 or Group2.
To file corrections, create a new corrections source file containing only those persons in need of corrections. See the example file called XYZCorpCorrections1.src located in the C:\E2006 folder.
To file corrections on PAPER to the IRS, simply print that file on the pre-printed, red-lined, scanner-ready 1099 forms that must be ordered from the IRS (free online or at 1-800-TAX-FORM), see Paper Forms).
To file corrections electronically to the IRS, use the Options/Build IRS Corrections File menu to compile an IRS compatible file called IRSCOR1. Then send it to the IRS using the FIRE system.
Step-by-step instructions for 1099 Express Corrections
Create a separate corrections source file. This example uses Copy and Paste, but there are other ways to create a separate corrections file, for example typing it from scratch, see Other Methods.
1. Start 1099 Express and open your original source file.
2. Start a second 1099 Express program with a blank grid.
3. Left click on a person with an error, then right click and copy.
4. Left click on the empty grid, then right click to paste. If this person is an Error Type 2 you could paste him twice,
since 2 forms may be needed.
5. Continue steps 3 and 4 until all people with errors are in the second grid.
6. Add company info to the correction people with the Options/Company menu then use the "Repopulate" tab.
7. Use File/Save As to save the file. Make the new filename something like XYZCorpCorrections1.src.
After creating the new corrections source file follow these steps:
1. Like the IRS table above, for each ERROR TYPE 1, put an X in the Corrections Code box. Correct anything but
don't change the TIN (or SSN) which is already correct.
2. Like the IRS table above, for the first form of each Error Type 2, put an X the Corrections Code box.
Leave all incorrect information, including the wrong SSN, but change the money amount to zero. This will "undo" that form as if
it were never filed. Leave all money boxes empty, put a zero in just one money box.
3. Like the IRS table above, for the second form of each Error Type 2, make sure the correction code box is
EMPTY or BLANK. Then correct all information, including the SSN, exactly as if you were
sending a new form.
4. When everything is right, use the SAVE button to save your corrections file. You
can now E-FILE or FILE ON PAPER to the IRS.
5. Always print and mail Copy B for all recipients. To do so, use the File/Print Create 1099s on Plain Paper menu.
To file Copy A to the IRS over the Internet using FIRE:
1. Add your TCC holder information with the Option/TCC Holder menu then the "Repopulate" tab, then save the file.
2. Click the Options/Build IRS Corrections File menu. This will create a new file called
IRSCor1 (in the IRS format for e-Filing).
3. Upload that file to the IRS as a "Correction" file. See
E-Filing using FIRE.
To file Copy A to the IRS on PAPER,
1. Click the File/Print on Pre-Printed Forms menu to print on all Copy As
(the red-lined forms, discard other copies).
2. If the printing does not line up correctly, set to Top and/or Left margins.
3. Click File/Print on Form 1096 to print on the transmittal from (another red-lined form).
4. Do not fold or staple scanner ready red-lined forms.
5. Mail the 1096 and 1099s to the IRS at the address shown on Form 1096, using a flat envelope.