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Version: 1.7.1

Duplicate Handling

The IRS allows you to file multiple 1099 forms (of the same type) for the same recipient and tax year with the same amounts. However, in certain cases, duplicate 1099 forms may be generated unintentionally (for example, due to a system malfunction). Click here to view examples.

To identify and avoid duplications when multiple 1099 forms (of the same type) are filed for the same recipient and tax year, our API incorporates a streamlined duplicate handling mechanism.

How TaxBandits Handles 1099 Duplicates?

TaxBandits will check for duplicates when more than one 1099 form is filed for the same recipient and tax year.

  • If the first amount field in the return you file matches any of the previously filed returns for the same recipient and the same tax year, you will get an error.

Error Sample:

{
"Id": "F68-100329",
"Name": "NECFormData.B1NEC",
"Message": "Possible Duplicate. Another return has been created for the same recipient with the same amount."
}
  • If the first amount field is empty, the system will check the next amount field.

Note: If the account number on the return you file is the same as any previously filed return, TaxBandits will append 3 random numbers at the end of the account number.

The following are examples to help you understand when your 1099 return will be considered a duplicate by our API.

Examples

Example 1:

Let’s say you submit a 1099-MISC form with B1Rents as $1000 for a recipient. Also, you file another 1099-MISC with B2 Royalties as $1000 for the same recipient and tax year. In this case, our system will not consider this as a duplicate since the amount fields are different.

Example 2:

Let’s say you submit a 1099-MISC form with B1Rents as $1000 for a recipient. Due to a system malfunctioning at your end, an additional 1099-MISC form gets submitted for the same recipient and tax year with the same amounts. In this case, the system will consider this as a duplicate return and throw an error.

IsForced Node

  • If the 1099 return you file is meant to be a new one for the same recipient/tax year (even with the same amounts or account number) and must be filed with the IRS, you can set the “IsForced” node as TRUE in the ReturnData object. If this value is set as TRUE, TaxBandits will not check for duplicates.

  • Here are the amount fields that TaxBandits will check for duplicates in each form.

Form TypeAmount Box
1099 NECB1NEC
1099 MISCB1Rents, B2Royalties, B3OtherIncome, B5FishingBoatProceeds, B6MedHealthcarePymts, B8SubstitutePymts,
B9CropInsurance, B10GrossProceeds, B11FishPurForResale, B12Sec409ADeferrals, B14EPP, B15NonQualDefComp
1099 INTB1IntIncome
1099 DIVB1aTotOrdiDiv, B2aTotCapGain, B3NonDivDist
1099 RB1GrossDistribution
1099 GB1UnempComp, B2TaxRefunds
1099 SB2GrossProceeds
1099 KB1aGrossAmt
1099 BB1dProceeds
1099 CB2DebtDischargedAmt
1099 PATRB1PatronageDiv, B2NonPatronageDist
1099 QB1GrossDist, B2Earnings, B3Basis
1099 SAB1GrossDistribution, B2EarningsOnExcessCont, B4FMVOnDateOfDeath
1099 OIDB1OID