TaxBandits Knowledge Base

My 1099 forms were accepted with errors. Why am I getting these errors, and how can I fix them?

Don’t worry–These errors are not new!

While you would have still received these errors in the previous FIRE e-filing system, they would have occurred later, i.e., a few days/months after the forms were accepted. With the new IRIS e-file system, these errors are now flagged instantly, allowing you to promptly address them and avoid any potential penalties or compliance issues.

If your 1099 forms were accepted with errors, you must file a corrected form as soon as possible. Failing to do so may result in a CP2100 or CP2100A Notice. Here are the possible errors that might require correction: 

• Incorrect Recipient Name/TIN: Mismatch between the recipient’s TIN/TIN type and the name in IRS records.

• Business validation errors - This occurs when the reported data do not align with the IRS guidelines. This may include incorrect amounts, higher rates of federal tax withholding, etc.
   

Follow these steps to file a corrected return:

Step 1: Sign in to your TaxBandits account. Navigate to the 1099/W-2 Dashboard.

Step 2: Under 'All Payers,' select the payer for whom the forms were accepted with errors and switch to the 'Submitted' tab.

Step 3: Under 'Accepted with Errors,' you'll find the list of 1099 forms the IRS has accepted with errors. For each form, you must file a correction to fix the error. Please note that if corrections are not made for returns accepted with errors, you may be penalized and receive a CP2100 or CP2100A Notice.