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Corrected Form 1096 - Which 1099 Copies to Attach?

See original discussion at http://www.taxalmanac.org/index.php/Discussion:Corrected_Form_1096_-_Which_1099_Copies_to_Attach%3F

This may be a dumb question, but I'm finding the instructions to Form 1099 very unclear.

I have a client that filed 14 Forms 1099-MISC and Form 1096. It turns out one of the vendors did not received any 2010 payments and shouldn't have received a 1099, so the client should have filed only 13 Forms 1099-MISC.

I sent the vendor a corrected 1099 with zero in box 7 and the Corrected box checked. I believe I also need to file Copy A of the corrected 1099 with the IRS along with an amended 1096. My questions are:

Do I also need to attached Copies A of the other 13 1099s, which are correct, or do I just include the one 1099 that changed?

In box 3 of the corrected Form 1096, should I put 1 for the corrected form attached, or 13 for the total that should have been filed, or 14 for the total filed, including the one with a zero amount?

In box 5 of the corrected Form 1096, should I put just the amount for the corrected 1099 (zero, if I just attach that one) or the new amount (the total of what all the Form 1099 should have been)?

Thanks for any help.

( Asked 04/25/11 04:39 PM in TaxAlmanacViews by community 272 )

Answers (1)  Comments (1)  

Mr cheese


1. Prepare a corrected Form 1099-Misc for the payee, check the "corrected" box, and enter Zero for the amount in box 7.

2. Prepare a new 1096....In box 3, "total number of forms", enter 13. In box 5, "Total amount reported with this 1096", enter what the amount should be based on the 13 correct 1099's that were previously filed.

3. Attach the corrected zero amount 1099 with the new 1096 and mail to the feds....do not mail 14 1099's, you only need to mail the corrected 1099 with the new 1096.

Example: I filed three 2010 Form 1099-Misc's ....

Mr. Toes: 2010 Compensation = $1,000

Mr. Finger: 2010 Compensation = $5,000

Mrs. Balls: 2010 Compensation = $2,500

1096 (Original) - Box 3: Total number of Forms = 3

1096 (Original) - Box 5: total amount Reported = $8,500

After I file the 1099's and the 1096 I find out later that Mrs. Balls was only paid $1,500...so

1099-Misc: Corrected = $1,500

1096 (New) - Box 3: Total number of Forms = 3

1096 (New) - Box 5: total amount Reported = $7,500

After I file the corrected 2010 Form 1099 and replacement 1096....I soon realize that I goofed again....Mrs. Balls actuallly made the $1,500 in 2011, and not 2010....so...

1099-Misc: Corrected = $0

1096 (Third one) - Box 3: Total number of Forms = 2

1096 (Third one) - Box 5: total amount Reported = $6,000

The End!

( Answered 04/25/11 08:22 PM in TaxAlmanac ,Views by community 272 )

Rating (+ 1):
This helped! Not too helpful.

Thanks, Mr. cheese.

( Commented 04/25/11 08:25 PM in TaxAlmanac ,Views by community 272)

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