1099 Corrections

Common errors that require corrections

• Wrong payment amount — The most common error. Payments were over- or under-reported.
• Incorrect TIN — The vendor's Tax Identification Number was entered wrong.
• Wrong name — The legal name on the 1099 does not match the vendor's W-9.
• Wrong form type — Filed a 1099-NEC when it should have been 1099-MISC, or vice versa.
• Wrong address — The vendor's address was incorrect on the filed form.

How to file a correction

In SKOOR, navigate to the 1099 filing section and find the original filing. Click "File Correction" to open the correction wizard. SKOOR determines whether this is a Type 1 correction (wrong amount, checkbox, or code) or a Type 2 correction (wrong TIN or name). The system generates the appropriate corrected form and submits it to the IRS.

IRS requirements

The IRS requires different correction procedures depending on what changed. Type 1 corrections (amount changes) require a single corrected form. Type 2 corrections (TIN or name changes) require two forms: one to zero out the original and one with the correct information. SKOOR handles both types automatically. You just enter the correct information.

Penalties and timing

File corrections as soon as you discover the error. The IRS penalty structure is time-based: $60 per form if corrected within 30 days of the deadline, $130 if corrected by August 1, and $310 after that. SKOOR tracks correction deadlines and the SKOOR AI agent alerts you when corrections are pending. Proactive corrections are a positive compliance signal for your Business Health Score.