Duplicate Handling

The IRS allows you to file multiple 1099 forms (of the same type) for the same recipient and tax year, even if some values (including amounts) are the same. These are not considered duplicates by the IRS.

However, in certain cases, unintended duplicates can occur, especially in automated systems or high-volume integrations. To prevent such issues, TaxBandits flags a return as a duplicate when the system detects that an unintentional duplicate submission (such as a repeated API call, system glitch, or accidental resubmission) has occurred.

How TaxBandits Handles 1099 Duplicates?

When you file more than one 1099-NEC for the same recipient and tax year, TaxBandits automatically checks for duplicates.

• If the first amount field in the form matches any of the previously filed returns for the same recipient and the same tax year, you will get an error.
• If the first amount field is empty, the system will check the next amount field. Click here to view the list of amount fields that TaxBandits will check for each form.

Error Sample:

{
               "Id": "F68-100329",
               "Name": "NECFormData.B1NEC",
               "Message": "Possible Duplicate. Another return has been created for the same recipient with the same amount."
}

Note:

If the account number on the form is the same as any previously filed return, TaxBandits will append 3 random numbers at the end of the account number.

Examples of duplicates

The following are examples to help you understand when your 1099 return will be considered a duplicate by our API.

Example 1 — Not a Duplicate

You file two 1099-MISC forms for the same recipient and tax year:

• Return 1: ‘B1Rents’ = $1000
• Return 2: ‘B2Royalties’ = $1000

These are not duplicates because the amount fields differ.

Example 2 — Duplicate

You file a 1099-MISC with ‘B1Rents’ = $1000

Due to a system malfunction at your end, another identical 1099-MISC is submitted for the same recipient and tax year with the same amount in the first amount field.

This is considered a duplicate, and the system will return the duplicate-error message.

Overriding duplicate checks (IsForced Node)

If you intentionally need to submit another 1099-NEC for the same recipient and tax year (even with the same amounts or account number), 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.

Amount fields checked 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