If using Advantage Tax Reporting functionality and the consolidation option is chosen, there are situations where a Type 2 correction for a TIN/TIN Type or Form Type change is required. When a tax record on a Form Reporting table is a consolidation of Advantage tax data and a data source external to Advantage, a Type 2 correction cannot be made by the system because the system is unable to determine whether the correction only applied to the specific tax record or to the consolidation as a whole. For example, a F1099G Form Reporting table record was created as a consolidation between internal (1099R) and external (1099ER) 1099-G records based on Form Type, TIN, and TIN Type. If a Type 2 correction such as TIN change, was made on the internal 1099-G tax record on 1099R, the system would not know whether the TIN change only applied to the internal 1099-G record on 1099R, meaning that the record should not have been consolidated with the external record in the first place, or does the Type 2 TIN change apply to not just the internal tax record, but to the consolidated record as a whole. Type 2 corrections for TIN/TIN Type or Form Type changes must be made manually on the 1099R and 1099ER tables.
To make a Type 2 (TIN/TIN Type or Form Type) correction for a tax record that has been consolidated from internal and external tax records, the following procedures are to be used.
If a Type 2 Correction only applies to the external record:
Navigate to the 1099 External Reported Income (1099ER) page.
Select the tax record to be corrected.
Select the Apply Corrections action.
Zero out all numbered dollar amount fields.
Select Ok.
On the 1099ER page, select the Add New 1099 External Reported Income action.
On the Update 1099 External Reported Income page, enter the new tax record information.
Select Ok.
If a Type 2 Correction only applies to the internal record:
Navigate to the 1099 Reported Income (1099R) page.
Select the tax record to be corrected.
Select the Apply Corrections or Modify Existing Record action.
Zero out all numbered dollar amount fields.
Select Ok on the page or submit the M1099 transaction to Final.
On the 1099R page, select the Add New 1099 Reported Income or Create New Record action.
On the Update 1099 Reported Income page, enter the new tax record information. If using the M1099 transaction, enter the new tax information and submit to final.
Select Ok.
If the Type 2 Correction applies to the consolidation record (both internal and external):
Perform steps listed under the Type 2 Correction applies to external record only tab above.
Perform steps listed under the Type 2 Correction applies to internal record only tab above.
To make a Type 2 (Name Change) correction on a tax record that has been consolidated from internal and external tax records, the following procedures should be used.
Navigate to 1099 Reported Income (1099R) page.
Select the tax record to be corrected.
Select the Apply Correction action.
Make the name changes to the tax record.
Select Ok.