Rejection handling
A rejection occurs when the IRS has identified an error on your 1099 forms. Rejections should be handled as time-sensitive because the original filing deadline still applies.
Free retransmission
If a 1099 form is rejected by the IRS, you can fix and retransmit the form at no additional cost. Do NOT create a new form.
How to identify a rejection
- Use the Status endpoint to check the latest federal filing status.
- You can also configure the E-file Status Change (Federal) webhook event in the Developer Console. This allows your system to receive automatic notifications when a federal filing status changes, including when a return is rejected.
For state rejections, review the State array in the Status response. Each state entry has its own status and related information.
Common rejection reasons
Rejections usually occur when the required filing data is missing, invalid, or does not pass IRS validation rules.
| Rejection reason | What it means | What to do |
|---|---|---|
| Invalid payer information | The payer TIN, name, or other business details failed validation. | Review the payer details and update the business record if needed before resubmitting. |
| Invalid recipient information | The recipient name, TIN, TIN type, or address contains invalid or incomplete data. | Correct the recipient information and resubmit the return. |
| Invalid amount or form data | One or more amount fields or form-specific fields failed IRS business rules. | Review the IRS error details and correct the affected field values. |
| Duplicate or conflicting filing data | The return appears to duplicate or conflict with another filing. | Review existing records before creating or transmitting another return. |
| Invalid state information | State ID, state income, or withholding details failed state-level validation. | Correct the affected state details and resubmit the state filing as applicable. |
How to resolve a rejected return
1. Review the rejection details
Use the Status endpoint to retrieve the rejection details for the return. Review the error information returned to identify what needs to be corrected.
2. Fix the errors on the form
Correct the rejected return using the Update endpoint for the respective 1099 form type. For example, if a Form 1099-NEC was rejected, use the applicable Form1099NEC/Update endpoint to update the incorrect or missing information.
3. Retransmit the return
After the errors are fixed, call the Transmit endpoint to resubmit the return to the IRS or state agency.