There are two types of 1099 corrections: Type-1 and Type-2. It is necessary to determine which type of correction is needed prior to creating a correction file

A Type-1 will require only one form to complete the correction. It is used if the wrong dollar amount, code or box was filled out. It is also used if a 1099 should not have been filed at all. Making a correction file within our program will require you to create a new file with only the recipients that need adjustments and the 'Correction Code' box be marked with an 'X'.

A Type-2 will require two forms to complete this correction. It is used when there is a missing/incorrect TIN (SSN, EIN, ATIN, ITIN, etc.) name and address was wrong, or an inccorect form type was filed.

The first line of the Type-2 will include all the same incorrect information as originally sent except all dollar amounts will be zeroed and the correction code box will be marked with an 'X'. This "unfiles" the form.

The second form of the Type-2 will require a new line including all of the recipients correct informaiton. This form should reflect what should have been filed the first time and will not be marked as a correction. This is actually an original file.