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Requesting W9 for Payees:

Initial Request:

Just create a payee with just a name and an email address and request W9. We will send an email, and when you payee/vendors, fills and signs the W9 form, we import the data into our system and make the W9 available to you. We do send email notifications along the way.

Ongoing Requests:

You can also request W9 information for existing payees with full information. Generally it is a good idea to request W9 info regularly as Payees/Vendors situation changes as time goes by.

TIN Verification:

Just TIN Verification:

You can do the tin verification independently. Go to the payees tab. Select payees, Click Verify TIN. Only payees with a name and TIN can be used for TIN verification. TIN verification can take anywhere between 2 to 3 minutes to 2 days, depending on the product usage and traffic. Plan accordingly.

Ongoing Requests:
You can also request TIN verifications on an ongoing basis. We mark the TIN verification as stale for each filing year.

TIN verification with Filings:

You can also request TIN verifications as part of submitting your 1099s. FIrst we do the TIN verification before processing the flings. We send back the filings (during filing deadlines, Jan 30th…, to avoid delays, we submit the filings regardless of TIN verification status.) to you if TIN verification fails.

Manage Filings:

Create Filings:

Submit Filings:

Check Status of Filings:

Downloading PDFs:

Filing Corrections:

If a tax filing has been successfully transmitted to and accepted by the IRS, and you subsequently discover an error, it is necessary to submit new correction filings to rectify the inaccurate information.

Key Principles for Filing Corrections:

  • Selective Correction: You are not required to resubmit all your original filings. Only create and submit corrections for the specific filings that contain errors.
  • Payer Information Exception: The only exception to the rule above is if you discover an error related to the payer information itself, which may necessitate a more comprehensive re-evaluation or resubmission process not covered in the standard Type 1 or Type 2 corrections described below.
  • Electronic Filing Requirement: If your original filing was submitted electronically, you are mandated to file all corresponding corrections electronically as well.
  • Software Limitation: Currently, we only support correcting filings that were originally filed using our software. We do not support correcting filings that were submitted using other software providers.

TYPE 1 Corrections: Correcting Amount and Box Errors

A Type 1 error involves mistakes that do not affect the payee's identifying information (Name or TIN) or the type of return filed.

Examples of Type 1 Errors:

  • Reporting incorrect box amounts.
  • Reporting amounts in the wrong box.
  • Making a mistake with checkboxes (e.g., checking "FATCA filing requirement" when it shouldn't have been checked).
  • Filing a form that was not required (e.g., filing a 1099-NEC for a non-business payment).

Type 1 errors are generally simpler and require only one correction filing to be submitted to the IRS.

Step-by-Step Instructions for Type 1 Corrections:

  1. Create a First Correction:
  2. Navigate to the 'Filings' tab located in the left-hand navigation panel.
  3. Click on the 'Create a correction' button.
  4. In the correction wizard, select 'First' as the correction type.
  5. Select the filing to be corrected from the dropdown menu.
    1. Important Note: Only filings that have been successfully accepted by the IRS will appear in this selection menu. If the filing you need to correct is still pending acceptance, you must wait until its status updates to 'Accepted' before proceeding.
  6. In the 'Form Details' section, ensure you select the exact same form type and the exact same Payee as used in the original, incorrect filing.
  7. Enter the corrected box amounts and make sure to check or uncheck the appropriate checkboxes to reflect the correct information.
  8. Review the filing to ensure accuracy. Crucially, the Payer information and the Payee information must remain exactly the same as they were on the original filing. Do not edit the payer or payee details in this correction.

  9. Save the filing when you are finished.

  10. Submit Corrections:

  11. Before submission, review and prepare any other forms requiring correction (whether they are Type 1 or Type 2 errors) following the respective instructions.
  12. Combine all prepared corrections (Type 1 and Type 2) into a single submission bundle to the IRS.
  13. You are also required to send these corrected forms to your recipients (payees). You can choose to utilize the available services such as email delivery and/or print & mail service, or you may download PDF copies of the corrected forms and send them to the recipients yourself

TYPE 2 Corrections: Correcting Payee Identity and Form Type Errors

A Type 2 error involves mistakes related to the identity of the payee or the form type used. These errors are considered more serious as they fundamentally affect the recipient's tax record.

Examples of Type 2 Errors:

  • Reporting an incorrect Payee Taxpayer Identification Number (TIN).
  • Reporting an incorrect Payee Name.
  • Filing the wrong type of return (e.g., incorrectly filing a Form 1099-MISC instead of a Form 1099-NEC).
  • Reporting incorrect state information that impacts the state filing requirement. (Note: A simple incorrect street address may not always require a correction, but if the state listed is wrong, a Type 2 correction may be necessary).

Type 2 errors are more complex and require the submission of two separate correction filings to properly notify the IRS: the first to void the original, and the second to issue the corrected information.

Step-by-Step Instructions for Type 2 Corrections:

  1. Create a New Payee:
  2. The first critical step is to create a brand-new payee record within the system containing the correct TIN, payee name, and address information.

  3. Warning: It is absolutely essential that you DO NOT edit or modify the original, incorrect payee record. The system needs the original payee data intact to properly file the first correction (the voiding filing).

  4. Create a First Correction to Zero Out the Original Filing:

  5. Go to the 'Filings' tab from the left navigation and click 'Create a correction'.
  6. Select 'First' as the correction type.
  7. Select the original filing to be corrected from the accepted filings list.
  8. In the 'Form Details' section, select the exact same form type and the exact same payee as used on the original filing.
  9. Enter zeros (0) into all box amounts that had a value in the original filing.
  10. Keep all other remaining information (e.g., checkboxes, payee account number) exactly the same as they were on the original filing. This action formally makes the original filing void.
  11. Ensure all the payor information (payor name, payor DBA, payer TIN type, Payer TIN, payer address) and payee information (payee name, payee DBA, payee TIN type, payee TIN and payee address) is exactly same as the original filing.

  12. Save the filing.

  13. Create a Second Correction (The New, Correct Filing):

  14. Create the second correction by clicking on the 'Create a correction' button again.
  15. Select 'Second' as the correction type.
  16. Select the same original filing that you used for your first correction (the void filing).
  17. Select the correct form type (if the form type was the error).
  18. Select the new payee that you created in Step 1, which contains the correct name and TIN.

  19. Enter all the remaining correct details of the form (including the correct box amounts) and save it.

  20. Submit Corrections:

  21. Consolidate any additional corrections needed (both Type 1 and Type 2) according to the instructions.
  22. Combine all corrected forms (including the two filings for each Type 2 error) into one submission bundle for the IRS.
  23. You are legally required to send these corrected forms to your recipients. You have the option to use the email and/or print & mail services offered, or you may download the PDF copies yourself for direct distribution to the recipients.

Correcting Errors in Payer Name, TIN, and Address with the IRS

The accuracy of payer information, including the name, Taxpayer Identification Number (TIN), and address, is crucial for compliant tax reporting. Should an error be discovered in the payer information that has already been reported to the Internal Revenue Service (IRS), immediate corrective action is necessary. The IRS provides specific procedures to address these types of mistakes.

Method 1: Correction via Written Correspondence

One established method for correcting errors in the Payer's name, TIN, or address is to submit a formal letter to the IRS. This letter must be comprehensive and include all the essential details of the original filing and the correction being made.

The following information must be included in your correspondence:

  • Name and Address of Issuer: The complete legal name and mailing address of the entity that filed the original information return.
  • Type of Error: A clear explanation of the mistake, specifically mentioning that the issuer name/TIN or address was reported incorrectly. You must include the incorrect issuer name/TIN that was originally reported to the IRS.
  • Tax Year: The specific tax year for which the incorrect information was filed.
  • Correct Issuer Name/TIN: The accurate and complete name and corresponding Taxpayer Identification Number for the issuer.
  • Transmitter Control Code (TCC): The unique five-digit code assigned by the IRS to the entity responsible for filing information returns, which was used for the original filing.
  • Type of Return: The specific form number that was filed incorrectly (e.g., Form 1099-MISC, Form W-2, etc.).
  • Number of Payees: The total count of payees associated with the original filing that contained the error.
  • Filing Method: An indication of how the original return was submitted—either paper or electronic.
  • Federal Income Tax Withholding: A statement confirming whether or not federal income tax was withheld from the payments reported on the affected returns.

This correspondence should be securely mailed to the designated IRS processing center:
Internal Revenue Service
230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430

Method 2: Filing a Type 1 Correction

As an alternative to written correspondence, filers can utilize the IRS's formal correction procedures by submitting a Type 1 correction. This method is generally used to void an entire original filing that contained fundamental errors in the payer's information and resubmit a corrected file.

The process involves the following two key steps:

  1. Voiding Incorrect Filings: A Type 1 correction is filed to essentially void or cancel all the incorrect filings that were made under the erroneous Payer information.
  2. Creating New Original Filings:
  3. A new 1099SmartFile account must be properly set up using the correct payer name and TIN.
  4. New, accurate original filings are then created and submitted under this corrected Payer information.

Important Note on Timeliness and Penalties:
It is imperative to address and correct errors promptly. If you choose the Type 1 correction method and the resulting new original filings are submitted after the official IRS due date for the tax year in question, these submissions may be considered late.

The IRS strictly enforces filing deadlines, and late submissions can result in the imposition of penalties. Filers should prioritize correcting and resubmitting accurate information as quickly as possible to mitigate the risk of incurring IRS penalties.