How do I correct a 1099MISC?

boatysboy1 · Feb 12, 2005

We recently sent out a 1099MISC to a driver that no longer drives for us. He drove for us in 2004 and we sent him a 1099MISC to record the income he received for his services to us. However, we put his income in box3 (other income)of the 1099MISC. Should we have put that income in the "nonemployee compensation" box? If so, can we still correct that by sending out another 1099MISC to them? Please advise. Thanks.

Bryan

Fkatz · Feb 12, 2005

Hi,
your question was.
We recently sent out a 1099MISC to a driver that no longer drives for us. He drove for us in 2004 and we sent him a 1099MISC to record the income he received for his services to us. However, we put his income in box3 (other income)of the 1099MISC. Should we have put that income in the "nonemployee compensation" box? If so, can we still correct that by sending out another 1099MISC to them? Please advise. Thanks.

You have to make out a new 1099-Misc, on top of the 1099 there is a small box, check that box and your corrected forms is ready to go.
just make sure you send it immediately to your driver, and tell him to temporaryly us the one you sent and to file it under "Nonemployee Compensation."

Frank

boatysboy1 · Feb 24, 2005

Frank,

It is now 2/24/05. Can I still send that out to the contractor? Also, will I have to send both the wrong copy and the corrected copy along with the 1096 to the IRS?

Bryan

larrybadger · Feb 25, 2005

>It is now 2/24/05. Can I still send that out to the
>contractor? Also, will I have to send both the wrong copy
>and the corrected copy along with the 1096 to the IRS?
>
> Bryan

I cannot answer that question in a qualified manner as I am in no way licensed to dispense tax advice, but I sure would get it out asap. If the original 1099 that the contractor in question used turns out to have caused an error in his/her return and caused additional tax burden with penalties and interest, you may be the one held responsible/liable for any additional monies owed to the IRS on his/her behalf? I cannot verify this, but it *may* be the case?

Larry Badger
Plainwell, Michigan
Future expediting company driver
Stay-at-home Dad, 2000-
25 years self-employed in landscaping business

larrybadger · Feb 25, 2005

>It is now 2/24/05. Can I still send that out to the
>contractor? Also, will I have to send both the wrong copy
>and the corrected copy along with the 1096 to the IRS?
>
>Bryan

Bryan, one more thing I forgot to suggest, it might be a good thing to send it USPS overnight or whatever it's called, and send it registered or receipt requested or whatever, it may help to prove that you attempted to get the corrected 1099 to him/her expeditiously, and it might also be of some benefit to you to have a receipt showing he/she/someone signed for it proving it was received? I don't know, just a thought. Good luck, hope it all works out well for you.

Larry Badger
Plainwell, Michigan
Future expediting company driver
Stay-at-home Dad, 2000-
25 years self-employed in landscaping business

Fkatz · Feb 25, 2005

Hi Bryan,

Send it out ASAP, make sure he knows that you filled it out incorrectly, and he is recieving a new one, Did you send in the 1096 as of yet, if not you do not have to send in both, you have until may,3 to do that, if you already did, then yes you have to send in both. make sure you mail them flat, not folded, otherwise they will not honor them.

Frank

Fkatz · Feb 25, 2005

I made a mistake, that was suppose to be May 31, of this year

Frank

boatysboy1 · Feb 28, 2005

Thank you for the advise and input. I have taken care of the corrected 1099-MISc and send the 1096 to the IRS. I have also notified the recipient of the 1099-MISC what is going on. I sent it registered mail and have receipt already. Thank you very much for the help. I really appreciated it.

Bryan