Made a Mistake? How to Easily Handle Type 1 and 2 Corrections with 1099-MISC and W-2 Forms

If you file 1099 or W-2 forms, you may discover mistakes at some point. With a little awareness and action, however, you can correct the most common types of errors quickly. Let’s take a closer look at what this entails.

Identifying and Fixing the Two Types of Errors

There are two different types of errors, which involve a different correction process.

Type 1

• Incorrect money amount(s), code or checked box (1099s and W-2s, boxes 1-7 only)
• A return was filed that shouldn’t have been (1099s and W-2s)

When e-filing a Type 1 correction with efile4Biz.com, you can simply:

• Log in and select Correction Forms in the Filing Center tab.
  
• On the Filed Forms page, filter by Form Type which form you need to make a correction. Find the form and click on the File a Correction link under the far-right Correct Errors column. (Please note: If the link says, “Temporarily Unavailable,” you will need to wait until the form is accepted by the IRS/SSA.) If you e-filed the original form on a different website, confirm that the originals were filed with the IRS FIRE system then select the correction form from the selection of correction forms presented.
  
• Make the correction.
  
• Resubmit the form with payment.

Type 2

• Missing or incorrect payee number (TIN, SSN, EIN, QI-EIN or ITIN) – 1099s only
• Incorrect payee name – 1099s only
• Original return filed with the wrong form (e.g. 1099-MISC to complete a 1099-DIV)
• Duplicate W-2 forms filed under same EIN and SSN with different Social Security wage amounts. (There are different scenarios for this type of correction, contact our customer service department before submitting a correction form.)

The process for filing a Type 2 correction with efile4Biz.com is as follows:

1. Log in and select Correction Forms in the Filing Center tab.
   
2. On the Filed Forms page, filter by Form Type which form you need to make a correction. Find the form and click on the File a Correction link under the far-right Correct Errors column. (Please note: If the link says, “Temporarily Unavailable,” you will need to wait until the form is accepted by the IRS/SSA.) If you e-filed the original form on a different website, confirm that the originals were filed with the IRS FIRE system then select the correction form from the selection of correction forms presented.
   
3. Make the correction, entering zero dollar amounts for Type 2.
   
4. After the IRS accepts the correction form to cancel out the original form, you can file a new original form with the proper information. Click on the Payer and Recipients tab, select the payer from the drop-down list and click the Edit icon to the far-right of the recipient.
   
5. After editing the recipient data, click Save at the bottom.
6. Click on the Filing Center tab and select a new original form to create with the updated recipient. Enter the new information and click Submit & Checkout to save the form to your Forms in Progress page.
7. Choose the form under the Select column, pick a filing option in the far-right column and then click Add to Cart. The form will be submitted to your Filed Forms page, and you are finished.

Please note: These steps may not apply to all forms, such as W-2s.

For More Guidance …

We recognize that filing Type 2 corrections is more involved than Type 1 corrections. For detailed instructions with screen shots, go here. And to learn more about all the forms we offer corrections for, visit “A Quicker, Easier Way to Handle Corrections.”