1099 Accepted with Errors

With the IRIS e-file system, certain 1099 filing errors can be identified earlier in the filing process. When the IRS returns an “Accepted with Errors” status, it means the 1099 return has been accepted, but one or more records contain errors or warnings that require review.

This is different from a rejection. The return is considered filed, but the filer should review the IRS error details and take action if a correction is required.

Where to find the error details

• Use the Status endpoint to retrieve the latest filing status. If a return is marked as Accepted with Errors, review the IRS error or warning details associated with the filing.

• You can also configure the E-file Status Change (Federal) webhook event in the Developer Console to receive automatic notifications when a federal filing status changes.

Common warning types and what to do

Accepted-with-errors records commonly involve issues such as:

• Incorrect recipient name or TIN — The recipient name, TIN, or TIN type does not match IRS records.
• Business validation errors — The IRS identified an issue with the filed data, such as an invalid amount, withholding inconsistency, or form-specific data issue.

What you need to do

File a correction using the correction endpoint for the applicable 1099 form type.

For example, if a Form 1099-NEC is accepted with errors and the IRS error details indicate that a correction is needed, use the Form1099NECCorrection/Create endpoint and provide the corrected information based on the IRS error message.

Addressing these errors promptly helps reduce the risk of IRS notices, such as CP2100 or CP2100A notices, and potential penalties.

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.