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IRS Penalties for Correcting 1099s After Receiving an Updated W-9
February 26, 2025
Q. We have a few vendors that sent an updated W-9 after 1099s were electronically filed, we need to -0- these 1099s because they are now a C Corporation. Does the IRS penalize for these corrected forms?
A.
(Answered by IOFM's third-party tax expert)
On corrections in general, if you file the corrections by August 1st and the number of forms you're correcting is 10 or less (or, .005 x the number of forms you filed, if you filed more than 2,000 forms in a year), there is no penalty. So, for…
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