IRS Form 1099 is used to report nonsalaried income you make throughout the year. This could be for work you performed or proceeds you received from various sources. Employers are required to file 1099s for any nonsalaried person they pay $600 or more during the year. Form 1096 is used to transmit the information on Form 1099 to the IRS. But some employers may find they need to submit an additional 1099 after filing Form 1096, usually as a result of accidentally leaving someone out of the process. When that happens, the process to add a 1099 is fairly simple, just requiring a little extra paperwork.
Complete Your 1099
Once you discover your error, simply fill out the 1099 form you missed the first time around. Input the information just as you would if you’d done this originally. You’ll notice at the top of the box there are two boxes, with one saying “Void” and the other saying, “Corrected.” You’ll check neither of these. You aren’t correcting an originally submitted 1099 form. You’re submitting an additional one.
Once completed, you’ll not only need to submit this to the IRS, but to the other party. Copy B goes to the recipient, but if you’re late in the tax season, you may be getting it to the receiving party after he or she has filed for the year. You can mail the IRS’s copy and your 1096 to the IRS submission address provided for your area or you can e-file, assuming you have software that will format it according to IRS guidelines.
Don’t File an Amended 1096
You’ll likely feel tempted to try to track down a way to file a corrected 1096 for the one you’ve already submitted. Don’t do this. Instead, you need to file a brand-new 1096 to act as a cover sheet for the additional 1099 you’re submitting. The IRS doesn’t want copies of the forms you filed before, either. The new form will simply be added to what you’ve already filed.
Pull up a blank version of Form 1096 and input all the contact information you entered the first time around. In Box 3, where it reads, “Total number of forms,” write “1,” since you’re only attaching one form. You’ll also need to report the total amount you’re reporting on the 1099 you’re attaching to this form. Do not include any information on the 1099s you’ve submitted before. This is solely for the additional form.