We recently learned of a glitch that occurred with some of the 2008 Form 1099-MISC's we produced and mailed to recipients by January 31, 2009. NOTE: We have not yet filed electronically with the IRS.

In some cases, we reported amounts in Box 7 that were over $600 (thus triggering the 1099), but due to a programming error, the amount reported is incorrect. As it turns out, many recipients received nothing (zero $), so no 1099-MISC should have been issued.

We would like to send a letter to affected recipients advising them of the error and assuring them that because the $600 threshold has not been met, nothing will be reported to the IRS. We understand that since we haven't yet filed our 1099's electronically, there is no need to issue a corrected 1099 to affected recipients. But in some cases, the recipients are requesting a revised 1099 form reflecting the "zero" amount in Box 7. I don't necessarily see a problem doing that if it will allay a recipient's concerns.

My questions are as follows:
First, does this approach seem appropriate?
Second, must we include the 'zeroed out' 1099 forms when we file electronically? I would think not since we aren't reporting anything and are not correcting a previously filed 1099, but due to the mere fact we provided a 1099 to a recipient, does that mean we must include it in our electronic filing (even if it shows "zero")?

Any other thoughts or concerns? Anything we're missing?

We received a claim for provider on 1/10/08. We processed claim on 1/21/08. Claim was pended for additional information and benefit payment was actually issued on 2/7/08. We received a corrected W-9 from provider with new Tax ID# and new business name 04/23/08. Provider is demanding a corrected 1099 for payment issued 2/7/08, which was reported to IRS under ID# we had on file when claim was processed. Are we legally obligated to give him a corrected 1099

We filed a Form 1099 for one of our vendors, but now realize we did not need to file it. What actions do we take now?

We file our Forms 1099 on magnetic media and now need to make a correction. Are we required to file the correction via mag media?

How do we file a corrected Form 1099 with the IRS?

We paid a freelancer for transcription work for one of our companies. We entered amount we paid her in box 7 of her 1099-misc for 2006 and 2007. She would like a corrected 1099 for each year with the payment amount in Box 3 because the IRS has audited her 2006 return and she owes self-employment tax. From the IRS instructions, it appears that we used the correct box. Is there a reason we should correct these returns?