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

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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 Type	Amount Box
1099 NEC	B1NEC
1099 MISC	B1Rents, B2Royalties, B3OtherIncome, B5FishingBoatProceeds, B6MedHealthcarePymts, B8SubstitutePymts, B9CropInsurance, B10GrossProceeds, B11FishPurForResale, B12Sec409ADeferrals, B14EPP, B15NonQualDefComp
1099 INT	B1IntIncome
1099 DIV	B1aTotOrdiDiv, B2aTotCapGain, B3NonDivDist
1099 R	B1GrossDistribution
1099 G	B1UnempComp, B2TaxRefunds
1099 S	B2GrossProceeds
1099 K	B1aGrossAmt
1099 B	B1dProceeds
1099 C	B2DebtDischargedAmt
1099 PATR	B1PatronageDiv, B2NonPatronageDist
1099 Q	B1GrossDist, B2Earnings, B3Basis
1099 SA	B1GrossDistribution, B2EarningsOnExcessCont, B4FMVOnDateOfDeath
1099 OID	B1OID
1099 A	B2BalOutStanding
1099 LTC	B1LTCPaid, B2AccDeathBenf
1098	B1IntRec
1098-E	B1IntRec
1098-T	B1PymtRec