Getting a 1099 tax form wrong can create major headaches. As a business owner, if you issue a 1099 in error, correct it before filing with the IRS. Send a new 1099 checking the ‘void’ or ‘corrected’ box.
If you already submitted the form, file a correction with the IRS and provide the recipient an updated 1099. This prevents problems for them later.
As a recipient, if you get an incorrect 1099, demand a corrected version from the issuer. This verifies the error and protects you from issues if audited.
Moral: Handle 1099 errors properly on both sides. A little diligence prevents big tax headaches down the road.
