IRS Form 1099 is used to report nonsalaried income that contracted individuals make throughout the year, such as for work that they peformed. Employers are required to file 1099s for any nonsalaried person to whom they pay $600 or more during the calendar year. Form 1096 is used to transmit the information on Form 1099 to the IRS. However, some employers may find that they need to submit an additional 1099 after filing Form 1096, usually as a result of accidentally leaving someone out of the process. When you have an additional 1099 to file after filing the 1096 form, the process to add a 1099 is fairly simple and just requires a little extra paperwork.
Complete Your 1099
Once you discover your error and realize you have an additional 1099 to file after filing the 1096 form, 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 that at the top of the form there are two boxes, one saying “Void” and the other saying “Corrected.” You’ll check neither of these because you aren’t correcting an originally submitted 1099 form. You’re submitting an additional one.
Once completed, you’ll not only need to submit the 1099 form to the IRS but also to the contracted employee so she has one for her records and filing purposes. Copy B goes to the contracted employee, but if you’re late in the tax season, you may be getting it to her after she has filed for the tax year. For this reason, it's best to do your taxes and required forms early in the year. That way, you have plenty of time before tax deadlines to correct any errors. The IRS suggests submitting 1099 documentation along with Form 1096 by February 28.
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 the 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. You do not need to submit a corrected 1096. 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 include the total amount you’re reporting but just for 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.
Where to Find the Needed Tax Forms
The good news is that if you do need to file an additional 1099 after filing the 1096 form, it's easy to access the needed forms. You can go to the IRS website at any time and download any necessary forms, fill them out and send them in for processing. Remember that it's unnecessary to complete a corrected 1096. You must send in new documentation along with an additional 1099.
Where you send the forms depends on the state in which your business resides. You can find the appropriate IRS address on the documentation that comes with Form 1096. Depending on where your business is located, you will send your documentation to an IRS location in either Texas, Missouri or Utah.