Redo 1099s?

Forum|Forum|2 years ago
January 31, 2024
3 replies
21 views

A new client did his own 1099s for 2023 but used MISC instead of NEC & already mailed them. Do I need to redo them? Or can I just complete the 1096 calling them MISCs? Please advise. Thank you!

ProSeries Basic

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abctax55

Level 15

Redo is the correct approach.

NEC notifies the IRS to look for SE tax on the income.

I have no clue if the IRS would impose penalties for using the wrong form, but why take the chance?

HumanKind... Be Both

S

sharmoren0112Author

Level 4

Thank you VERY much! My gut was telling me to do that, but felt I needed to get a second opinion. I love hearing what my tax community has to say. I'll do that. I'd rather not risk getting this new client into any trouble. Thank you!!

BobKamman

Level 15

Probably did the wrong thing for 2022 also. Make sure they shouldn't be W-2s and the real problem is employment taxes.

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dbelling

Level 4

File a corrected 1099misc with all boxes zero and check the box that says corrected.…..form 1096 showing zero and mail toIRS. refile form 1099 nec and 1096 with correct info….the corrected forms can not be efiled.. You must mail them in.

The first 1099 will be with the exact same payer and recipient information as the originally filed form, but the amounts on the form will be all zeros and the “CORRECTED” box will be checked. This will remove the originally filed form from the IRS records.

BobKamman

Level 15

But the wrong 1099-MISC forms are not in any IRS records, are they? I would prepare correct 1099-NEC forms and send them to the payees with a cover letter explaining that the 1099-MISC they received was incorrect, had not been filed with IRS, and should be disregarded.

sjrcpa

Level 15

OP said they already mailed them.

While IRS has not posted them yet, they will sometime after they receive them (assuming this is not another year where they just toss them). Unless OP just meant mailed to payees and not IRS.

The more I know the more I don’t know.

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