Dear tax guru,

I already submitted form 1099misc and 1096 to the IRS. I had 3 subcontractors totaled 24000. One contractor was issued 12000.00 in compensation. But it turns out that this compensation was supposed to divided half to the 4th contractor. Can you please show me how to fix this mess?

Do i need to report the whole 24000 on the revised 1096 and submit all 4 1099misc forms? or do i only need to submit the 2 corrected 1099's with the new 1096?

thank you

johnny nguyen

“Do i need to report the whole 24000 on the revised 1096 and submit all 4 1099misc forms? or do i only need to submit the 2 corrected 1099's with the new 1096”-----> The only time you need to file a corrected 1099 is if the original went in with the wrong amounts. Do another 1099 with the correct amount and mark the top "corrected" box. A 1096 does not need to be corrected. It is a transmittal that acts as a summary page for any and all 1099s that are submitted with that particular filing. If you just forgot to make up and send in a 1099, then make it up and send it in with another 1096 reflecting only that one 1099. If you just left off a 1099, a new 1096 (not corrected) goes with it. 1096 reflects that one 1099. The 1096 is just a transmittal document.

Thank you, Wnhough. I just joined and already had my first question answered. What a brilliant forum; thank you for taking the time to provide this.

Meg Olhasque
Granville Co., North Carolina

I'm confused - when a 1099 needs to be corrected for a wrong $$$ amount, why does a new 1096 not need to be filed? All IRS instructions indicate otherwise. I need to correct just one out of 15 1099s already submitted, and am having trouble finding guidance on how to correct one out of a group. Not sure if I need to file all 15 over again with a new 1096. Thank you.

I already submitted form 1099misc and 1096 to the IRS. I had 3 subcontractors totaled 24000. One contractor was issued 12000.00 in compensation. But it turns out that this compensation was supposed to divided half to the 4th contractor. Can you please show me how to fix this mess?==>>This is error type #1 with incorrect money amount(s); then,you need to reort $6K on corrected 1099 box 7 for both of the contractors. Do not forget to enter an X in the CORRECTED box at the top of the 1099.

Do i need to report the whole 24000 on the revised 1096 and submit all 4 1099misc forms? or do i only need to submit the 2 corrected 1099's with the new 1096?=>as said only the two corrected 1099s and the total reported on the 2 corrected 1099s needs to be reported in box 5 and enter X in box #7