Skip to main content
Version: 1.7.3

1099 Corrections

If you identify errors on a 1099 form after submission, you must file a correction to ensure accurate reporting to the IRS and applicable state agencies. The TaxBandits API supports end-to-end correction filing for both federal and state 1099 returns, helping you stay aligned with compliance requirements.

When corrections are required​

Corrections are generally required when:

  • You identify mistakes or discrepancies in the originally filed 1099, such as incorrect recipient details, payer information, or reported amounts
  • The 1099 forms are "Accepted with Errors" by the IRS.
Note:

If you only need to correct the recipient’s address, the IRS does not require a corrected form to be filed. You can update the address, generate the corrected PDF, and download it for your records.

Key points to remember​

  • Corrections can be filed even if the original return was filed elsewhere or submitted on paper
  • A correction can be filed only after the IRS has accepted the original return
  • You may file a correction for an already corrected return, provided the previous correction was accepted by the IRS.

Information you can correct​

  • Recipient Details Only

    If you want to correct the recipient details on your 1099 form, you can use the respective correction endpoint (e.g., Form1099NecCorrection), specify the CorrectionType as RECIPIENT, and provide the corrected recipient information in the request.

  • Amounts Only

    If you want to correct the amounts or other form fields, you can use the respective correction endpoint (e.g., Form1099NecCorrection), specify the CorrectionType as AMOUNT, and provide the correct information in the request.

  • Both Recipient Details and Amounts

    If you want to correct both the recipient and amount details on your 1099 form, you can use the respective correction endpoint (e.g., Form1099NecCorrection), specify the CorrectionType as RECIPIENT_AMOUNT, and provide the corrected information in the request.

  • State Only Correction

    To correct only the state information and void the fed, use CORRECTION as the correction type and set IsFederalFiling to False and IsStateFiling to TRUE.

  • State Details

    • You can correct the state income, withheld amount, or account number.

    • When filing a correction with the state, you must specify the correction type in your API request in the 'StateCorrectionType' node:

      • VOID: The state filing was submitted incorrectly and should not have been processed.
      • CORRECTION: Used to correct previously reported amounts or codes.
      • NEW: Used to add new state information that was not included in the original filing.

    • Currently, you can directly file state corrections through TaxBandits for the following states:

      • Arkansas (AR)
      • California (CA)
      • Idaho (ID)
      • Hawaii (HI)
      • Louisiana (LA)
      • Michigan (MI)
      • Missouri (MO)
      • Nebraska (NE)
      • New Jersey (NJ)
      • Delaware (DE)
      • District of Columbia (DC)
      • Illinois (IL)
      • Iowa (IA)
      • Kentucky (KY)
      • Massachusetts (MA)
      • Ohio (OH)
      • Oklahoma (OK)
      • Oregon (OR)
      • Rhode Island (RI)
      • Utah (UT)
      • Vermont (VT)
      • Alabama (AL)
      • Arizona (AZ)
      • Colorado (CO)
      • Connecticut (CT)
      • Georgia (GA)
      • Indiana (IN)
      • Kansas (KS)
      • Maryland (MD)
      • Maine (ME)
      • Minnesota (MN)
      • Mississippi (MS)
      • Montana (MT)
      • New Mexico (NM)
      • North Carolina (NC)
      • North Dakota (ND)
      • Pennsylvania (PA)
      • South Carolina (SC)
      • Virginia (VA)
      • West Virginia (WV)
      • Wisconsin (WI)

      For all other states, you can make corrections, download the state copies, and file them with the respective state authorities.

Payer Details Corrections

If you want to correct the payer details on your 1099 form, you must send a letter to the IRS informing the change. Learn more

Status retrieval​

You can retrieve the filing and distribution status of corrected 1099 forms in two ways:

  • Status – Use the Status endpoint corresponding to the type of correction form to retrieve the status.
  • Webhooks – configure webhooks for the following event types to receive automated notifications.
    • E-file Status Change (Federal) – Triggered when the IRS accepts or rejects your 1099 Correction. Learn More
    • E-file Status Change (State) – Triggered when the state agency accepts or rejects your 1099 Correction. Learn More
    • Postal Mailing Sent – Triggered when the recipient copy of the 1099 correction form has been mailed. Learn More
    • Online Access Status Change - Triggered when the recipient copy of the 1099 correction form is shared online, when the recipient provides consent, or when they access the form. Learn More