TaxBandits Knowledge Base

My 1099 forms are rejected due to incorrect payer’s TIN. What should I do?

If your 1099 forms have been rejected because of an incorrect Payer Tax Identification Number (TIN), you’ll need to correct the payer’s details. Once corrected, the rejected forms will be retransmitted automatically.
 

Key Points to Remember:

• The IRS allows two validation attempts for each payer's TIN. If both attempts fail, you won’t be able to validate again—but you can still update the payer details and retransmit the forms.
   
• The IRS grants 60 days from the initial transmission date to correct the error and retransmit the forms. If not corrected by then, you will be subject to penalties.
   

Tips to Fix Error:

TIN Matching typically fails when the name and TIN combination don’t match the IRS records. Here are a few tips to help resolve this issue:

• Verify the Name and TIN Type: Ensure the name and TIN type (SSN, ITIN, EIN) match IRS records exactly. If the TIN type is SSN, enter the payer’s last name as it appears in government records.
   
• Ensure TIN Accuracy: Confirm that the TIN has been entered correctly.

Follow the steps below to fix the payer's TIN error and retransmit the rejected 1099 forms:

• Navigate to the '1099/W-2' Dashboard, select the payer, and switch to the 'Submitted'  tab. At the top of the page, you'll find an option to correct the payer's TIN.

• Follow the instructions provided to update and revalidate the TIN. If you prefer to retransmit the forms with the previously reported TIN/name, select the ‘Yes, I Want to Use Previously Reported TIN and Name’ option.

• Once the update is successful, the rejected 1099 forms under the payer will be automatically retransmitted to the IRS.

Note: Changes to payer information will be updated in the Address Book and apply to all rejected and in-progress forms associated with the payer.