1099 Corrections

• Corrections for payees in a locked batch if:
  
  • Originals done via ftw fulfillment

    To prepare a correction in the ftw system, users would select the company/plan in the system, click on "1099" to select the Form Type and Year before clicking on "OK". Users will be directed to the 1099 Module where the user would select the payee from the drop-down list within the "Edit Payees" box to be corrected. On the left-hand side of the pane, users would click on "Create correction for payee". For the "Please select correction type:", select Error Type 1 or 2 and click on "Create corrective record".

    

    A new 1099 record will be created in which the user can enter the correct data for the payee. After the payee has been corrected, then the user can create the corrective batch by going to the "ftwPro 1099Wiz". Make sure to check the box in the upper right-hand corner when naming your batch that it is a "Corrective batch?*". Users will only be able to select those payees that are corrections.

    

    Please Note: Only one correction type may be added to a batch. If both Type 1 and Type 2 corrections need to be submitted, each correction type will need to be added to separate Corrective Batches.

    Users will have to run the edit checks for the corrective batch before users can lock the batch and submit for fulfillment. If correction types 1 and 2 are added to the same batch, the system will provide an error in place of the lock option. The correction types will need to be seperated to proceed.

    

    ftwilliam.com does not offer a corrective service for state fulfillment.

  • Batch was locked for batch printing

    Users would unlock the batch and follow the IRS instructions. Note: The process to correct will depend upon whether the Payee has a Type 1 or a Type 2 error being corrected.

  • Batch was locked to download a .txt FIRE file

  Users would unlock the batch, remove the payee(s) that need correction, and follow the IRS instructions. Note: The process to correct will depend upon whether Payees have a Type 1 or a Type 2 error being corrected. Users would have to create a new corrective batch just for the payee(s) that need corrections if users are downloading a .txt file for FIRE. Type 2 error would have two batches: one for the corrective record and one for the new original record.

  HINT. Selecting a "First Correction" from the drop-down list indicates a Type 1 error and selecting a "Second Correction" from the drop-down list indicates a Type 2 error.

• Correction for Payer TIN 
  Note that if users have reported information for an incorrect Payer TIN, that the Payer TIN should be corrected via a letter to the IRS; see the IRS instructions for details. New for 2014 and current, users will be able to go back into "Edit Payer" to update any incorrect data, even if the Payer was in a locked batch.

  Reporting incorrect payer name and/or TIN. Top
  If a payer discovers an error in reporting the payer (not recipient) name and/or TIN, write a letter containing the following information:

  1. Name and address of the payer
  2. Type of error (including the incorrect payer name/TIN that was reported)
  3. Tax year
  4. Payer TIN
  5. Transmitter Control Code (TCC)
  • If the ftw fulfillment service had been utilized, use
    • "52202" for corrections during 01/05/2012 - 05/06/2013;
    • "92966" for corrections during 05/07/2013 - 03/18/2014;
    • "92C28" for corrections during 03/19/2014 - 03/24/2015;
    • "92H42" for corrections during 03/25/2015 - 04/04/2016;
    • "92H96" for corrections during 04/05/2016 - 03/22/2017;
    • "92C28" for corrections during 03/23/2017 - 03/12/2018;
    • "92H42" for corrections during 03/13/2018 - 03/05/2019;
    • "92C28" for corrections during 03/06/2019 - 03/15/2020;
    • "92H42" for corrections during 03/16/2020 - 02/10/2021;
    • "92H96" for corrections during 02/11/2021 - 02/09/2022;
    • "92C28" for corrections during 02/10/2022 - 02/01/2023;
    • "92H42" for corrections during 02/02/2023 - 10/03/2023;
    • "92H96" for corrections during 10/04/2023 - 01/29/2024;
    • "92C28" for corrections during 01/30/2024 - 04/12/2024;
    • "92H42" for corrections during 04/13/2024 - 1/29/2025; and
    • "92H96" for corrections during 01/30/2025 - Present
• Type of return
• Number of payees
• Filing method (paper or electronic)
• Was federal income tax withheld?

Send the letter to Internal Revenue Service, Information Returns Branch, 230 Murall Drive, Mail Stop 4360, Kearneysville, WV 25430.

If a payer realizes duplicate reporting or a large percentage of incorrect information has been filed, contact the information reporting customer service site at 1-866-455-7438 for further instructions.

Note: You will also need to furnish a letter/statement to the recipient(s) with the updated payer information.