What does it mean if my 1099 form says "Accepted with Errors"?

Last modified 12/30/2024 5:39:52 AM EST

Under the previous FIRE e-filing system, these errors would have been reported several days after the forms were accepted. With the new IRIS e-file system, errors are now flagged immediately upon submission, enabling you to address them promptly and maintain compliance while minimizing the risk of penalties.

The "Accepted with Errors" status from the IRS means that your e-filed 1099 return has been accepted, but there are some issues that must be addressed. These errors often result in a CP2100 or CP2100A notice or penalties from the IRS.

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.

Actions Required:

If your 1099 forms are accepted with errors by the IRS, you are required to file a correction to fix them. Failure to do so will result in notices or penalties from the IRS.