Additional Information on Corrections
Other Methods of Creating a Correction File
1. Deleting: Open the original source file into 1099Express. Delete all the good records, and save under another name.
2. Sorting: Open the original source file into 1099Express. Put a X in the corrections box of all those you want out of the file. Save the file under another name. Sort the file on the COR column, see sorting. Sorting Descending puts all the corrections at the top of the file. Then just bulk delete all the good records below, leaving just the correction. Or, copy the people at the top another copy of the program, then save the file.
3. Using Excel: Open the original source file into 1099Express. Copy all data to Excel. See Excel Tips Use Excel to mark the corrections in any column. Sort all those you want to the top. Copy those at the top and paste back to a blank 1099Express Grid. Enter company data and save the file with 1099Express and continue as above.
Recipient Corrections: For corrections to recipients before filing to the IRS, correct anything on the 1099. If the form was previously mailed, put an X in the corrections box, then print and mail that person another Copy B of the form.
Backup: Before beginning corrections, it is a good idea to make a backup copy of the unchanged original source file, just as it was when filed to the IRS. For example, make another copy on the hard drive, or copy it to a diskette on the A: drive.
Lost Data: If you can't make corrections because all or part of the original source file was lost, you may be able to recover the original data. It might be possible to import your original data from the IRS1 file still on your hard drive. To open IRS1, click the File Menu, then use the "Open IRS File" sub-menu. This works on 1099-Misc, Interest, and several others, but not all forms. If you don't have the IRS1 file, the IRS can send your original file back to you. See Contacting the IRS.
Grace Period: Was the original file in need of correction e-filed less than 10 days ago? If so, the file status may be "GOOD, Not Released". If this is the case, it's possible to call 866-455-7438 and cancel the file. This will allow you to start over, fix any problem, and e-file the original file again, thus avoiding the correction process.
Replacement vs. Correction Files: Send a replacement file when you receive notice from the IRS that your file was BAD and no forms were processed. The notice could be a letter, or a BAD File Status in FIRE. Send a correction only when originals were filed successfully, and later it's determined there were errors.
Replacement of Bad Correction: Determine the cause of the Bad status and fix it. Create another IRSCOR1 style file. Send it using FIRE and select Replacement, instead of Correction. The IRS will know know you are replacing a bad correction file, not an original.
Limits per file: Each 1099 Express source file may include only one company, with one type of form, for only one tax year. Thus, depending on circumstances, it may be necessary to build several source correction files. Each source file will have a parallel IRSCOR1 type file.
Paper Forms
To file 1099s to the IRS on paper, you must use special pre-printed, red lined, Copy A
forms and similar pre-printed 1096 forms. These can be
ordered free
online, or by calling 1-800-TAX-FORM. Never send black or red lined forms
created on your printer to the IRS. Doing so will result in a penalty. Or
contact us for suggestions about ordering
over them quickly over the internet. You can also order forms for previous years.
For more information about PAPER corrections, review the topic Corrected
Returns on Paper Forms starting on or about page Gen 12 in the
IRS 1099 General
Instructions.
As strange as it may sound, you don't need to computer or typewriter, to use the multi-part pre-printed forms
(those from the IRS at 1-800-TAX-FORM or free online). Hand written forms are acceptable! You can use a ball point pen with
black ink, and carefully HAND PRINT all information directly on Copy A (if you don't believe this,
see topic "suggested format" in the General Instructions). Obviously, this method
is good when you have only one or two corrections. Send Copy A to the IRS, B to the recipient,
Copy 1 to the State and keep Copy C for your records. Of course, you can also use a typewriter
or 1099Express to print on the pre-printed forms.
Miscellaneous Correction Information: