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Corrections | Tax Information Reporting Skip to main content

How do I file a corrected Form 1099-R?

Question

I need to type a new 1099 R, I will mail one to the receipent with the corrected box completed?

What do I need to send to the IRS?

Answer

Based upon the wording of your question we are assuming that you are making a correction involving a paper form (rather than electronically filed). But please let us know if that assumption is wrong. As such, and going forward please note that you will need to do the following:

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Do I Correct The Form 1099 When the Payee Retroactively Provides Me With New Information?

Question

In several tax questions you have answered that we should not correct a 1099 when new information is provided after the time of payment because the taxpayer cannot retroactively change their status/information.  We have a couple vendors requesting such a retroactive change, even though they didn't provide us with the new information until now. 

 

Answer

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Payments Made to Physician Repaid in Same Year of Payment - What Do We Report on the Form 1099?

Question

We made payments to a stipend physician totaling $7,000.00 prior to October, 2012; the physician opted out of his contract and repaid the $7,000.00 in October, 2012. Should we issue a 2012 1099 for the amount he was paid even though he repaid the money during 2012.....or should we net the payment and repayment amounts (which nets to -0-) and not issue a 2012 1099?

Answer

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Do I Need To File A Correction After Voiding Check For Payment Otherwise Reportable?

Question

I just voided a check to a vendor that is 1099able. I have not sent my electronic file to the IRS. Should I just adjust his amount on the file and send him a corrected w-9 or do I have to file the original amount and then send the correction to the IRS?

Answer

If you have not yet filed the return with the IRS and only provided the payee statement, it is not yet a "correction" situation, it is a revision.

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Our Vendor Changed it's Name and TIN 3 Years Ago: Do We Need to Go Back and Correct Our Previously Filed Forms 1099?

Question

We discovered our vendor changed their name and TIN from INC to an LLC about 3 years ago.  Do we need to go back to the previous years 1099 reporting and send a corrected file?  

Answer

This is what you need to know.

Please note that we will start with the most important issue raised by your question and as applicable to your facts and circumstances.

First off note that this will involve a business decision on your part.

From there the key element here revolves around...

when you became aware of the change in the company name.

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Vendor I Paid and 1099 Reported in 2011 But Reissued Check in 2012. What do I do in 2012?

Question

I have a vendor that I paid in 2011 but ended up voiding and reissuing the check in 2012. I already sent them a 1099 for that amount. What do I do for the 2012 1099, do I report that amount again?

Answer

Here is what you need to know.

Unfortunately these situations are all too common.

Worse yet, they require that you...

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Filed Form 1042 under old name and vendor changed name, can we be penalized?

Question

One of our Payors changed its name towards the end of 2011. Their Tax ID number stayed the same. We filed the 1042-S and the extension under the old name. We are now in the process of filing the 1042 under the old name as well but wonder if this will cause a problem on the IRS end?

Key here is that the payments to our payees ocurred after the payor changed it's name but we filed the 1042-S under the old payor's name. Do we need to file an ammended return under the new name? Could we be facing penalties?

Answer

First off, and just to be clear; if we are discussing the payor and not the payee then please note the following.

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Do we face proposed penalties (972-CG) if we file under old name for vendor that changed name?

Question

One of our companies changed its name towards the end of 2011. Their Tax ID number stayed the same. We filed the 1042-S and the extension under the old name. We are now in the process of filing the 1042 under the old name as well but wonder if this will cause a problem on the IRS end? Do we need to file an ammended return under the new name? Could we be looking at penalties?

Answer

We will answer your questions in order.

But first please note that one of the key issues to address is...

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Deferred Compensation Paid Out but no FICA Remitted to IRS: What should we do?

Question

Non-qualified deferred comp was paid out starting in a prior year (2008) with no FICA remitted to the IRS by the employer for the former employees or the company.  What is the best way to correct this error?  The IRS has not made an assessment. 

Does the employer just start taking out the FICA going forward or should the prior years be corrected also.  Would the correction be to amend the W2s and 941s for the prior years and wait for the IRS to assess interest?  Can interest be "prepaid" with the FICA payment?  

I believe the employee would be able to avoid any penalties, as the employer would take responsibility for the error.  What is the likelihood that the employer could get penalty abatement, since a confession and correction was made once the error was discovered and before assessment? 

The employer will be paying both the employer and employee shares of FICA and reimbursing the employee for the interest costs.  This is obviously income to the employee.  Is this reported on the W2 with the non-qual deferred comp payments (made and administered by a third party on behalf of the employer) or should it be reported on a 1099-misc by the employer?  Thanks.

Answer

A couple of things here. First, of all, even though we don't normally deal with W-2 issues there is enough of an overlap here with 1099 related issues that providing some guidance is not a problem in terms of your actual terms of subscription.

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Withholding Previously Done on Reissued Payment

Question

We paid a foreign vendor US-source income in 2007 and withheld 30% from the payment, which was forwarded to the IRS and reported on Form(s) 1042 in 2007 for calendar year 2007. However, the foreign vendor had an issue with their bank that caused a delay in negotiation of the check. We have (finally) received instructions from the payee to reissue the original 2007 check under a variant name of the previous payee. We are obtaining a signed From W-8BEN (which we did not have for the prior payment) to document the new payee name prior to making this payment. Once we receive the proper documentation from the payee, we intend to issue another check under the variant name.

We are requesting your assistance to ensure proper reporting to the IRS of these transactions. Because we previously withheld 30% from the vendor’s payment, how should we advise the IRS of that amount paid to them in 2007 for the check now reissued in 2011? Do we show the 30% amount in Box 8 (for amounts withheld by another withholding agent) even though the money was withheld by us rather than another withholding agent? In the alternative, should we advise the IRS by letter correspondence accompanying the 2011 Form 1042 filing, and leave off the withholding from Form 1042-S?

Also, do the 2007 1042-S for the vendor and the From 1042 for the IRS need corrections, or does the reporting only matter for 2011? What we are looking for is the correct reporting process to apply to this transaction.

Answer

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