1099 Accepted with Errors
Under the previous FIRE e-filing system, errors in submitted 1099 forms were reported several days after acceptance. However, with the new IRIS e-file system, errors are identified immediately upon submission. This allows filers to address issues promptly, maintain compliance, and reduce the risk of penalties.
When the IRS assigns an "Accepted with Errors" status to an e-filed 1099 return, it indicates that the return has been accepted, but certain issues require correction. These errors can lead to CP2100 or CP2100A notices or even penalties if not resolved.
Common Errors Requiring Correction:
- Incorrect Recipient Name/TIN: A mismatch between the recipient's TIN/TIN type and the name in IRS records.
- Business Validation Errors: Discrepancies such as incorrect amounts, higher-than-allowed federal tax withholding, or other data inconsistencies with IRS guidelines.
Actions Required:
If a 1099 form is accepted with errors, a correction must be filed to resolve these issues. Failure to do so can result in IRS notices or penalties.
How TaxBandits API Simplifies Corrections
With the TaxBandits API, filing corrections for forms flagged with errors is straightforward and efficient. When your 1099 form is "Accepted with Errors", you can use the correction endpoint of the respective 1099 forms.
For example, if a 1099-NEC is accepted with errors, call the Form1099NecCorrection/Create endpoint with the corrected information based on the error message you've received.
Please note that you'll be charged a credit when filing corrections for 1099 forms accepted with errors.