1099 Corrections

If you identify errors on a 1099 form after it has been accepted by the IRS, you must file a correction to ensure accurate reporting. TaxBandits supports end-to-end correction filing for both federal and state 1099 returns.

No-cost amendments

If the original 1099 return was filed through TaxBandits, corrections can be filed at no additional cost. For 1099 returns originally filed with another provider or directly with the IRS, standard charges will apply.

When corrections are required

Corrections are generally required when:

• An accepted 1099 return contains incorrect or incomplete information that needs to be reported to the IRS. This may include errors in recipient details, such as name or TIN, reported payment amounts, or other form-specific fields.
• The IRS has marked the 1099 forms as “Accepted with Errors”

Voiding a form

Use the void option when the return should never have been filed in the first place — for example, when a 1099 was issued to the wrong recipient, for a non-existent transaction, or for a payee that is exempt from reporting. When you void a return, all amount fields are set to zero and submitted to the IRS, which nullifies the previously accepted form.

Key points to remember

• Corrections can be filed even if the original return was filed outside of TaxBandits or submitted on paper.
• A correction can be filed only after the IRS has accepted the original return.
• A correction can also be filed for a previously corrected return, as long as the previous correction was accepted by the IRS.
• Once a correction is filed and accepted, any further changes must be submitted as another correction.

What you can correct

• Federal corrections

Specify the CorrectionType in your request to tell the API what is being corrected.

CorrectionType	When to use
RECIPIENT	Correct recipient details only — name, TIN, or TIN type
AMOUNT	Correct reported amounts or other form-specific fields only
RECIPIENT_AMOUNT	Correct both recipient details and amounts in a single filing
VOID	The return was filed in error and should be removed from IRS records entirely

If the payer name or EIN needs to change, you must send a letter to the IRS. See How to correct payer information on Form 1099.

• State corrections

To file a state correction, set IsStateFiling to TRUE in the request. For a state-only correction (without refiling federally), also set IsFederalFiling to FALSE and CorrectionType to CORRECTION.

You can correct the state income, the withheld amount, or the account number. Specify the StateCorrectionType in your request:

StateCorrectionType	When to use
VOID	The state filing was submitted in error and should not have been processed
CORRECTION	Corrects previously reported amounts or codes
NEW	Adds state information that was not included in the original filing

Direct state e-filing

TaxBandits will handle the e-filing of corrected state forms with the following states: AL, AR, AZ, CA, CO, CT, DE, DC, GA, HI, ID, IL, IN, IA, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NJ, NM, OH, OK, OR, PA, RI, SC, UT, VA, VT, WI, WV.

For all other states, you can generate the corrected state copy and file it directly with the respective state authority.

Tracking correction status

Once a correction is transmitted, you can monitor its status in two ways:

• Status endpoint — Poll the Status endpoint for the correction form type to retrieve the current IRS or state status at any time

• Webhooks — Configure the following events for automated notifications:

  • E-file Status Change (Federal) — Triggers when the IRS accepts or rejects the correction
  • E-file Status Change (State) — Triggers when the state agency accepts or rejects the correction
  • Postal Mailing Sent — Triggers when the corrected recipient copy has been mailed
  • Online Access Status Change — Triggers when the corrected form is shared online, when the recipient consents, or when they access the form