Corrections are required when the IRS has received the form data. A name change is considered a Type 2 or Two-transaction Correction. An address change is considered a Type 1 or One-transaction Correction. For sites that do not use Advantage Tax Reporting functionality or the consolidation option on TAXOPT is not chosen, the following steps should be taken to process a name or address change using the M1099 transaction.
From 1099R table, find the current record and select the ‘Modify Existing Record’ link to create an M1099 transaction.
You will be transitioned to Create Transaction page to enter the transaction number.
Once the transaction number is entered, select the ‘Create Transaction’ link.
The M1099 transaction will be created and the Header section will be displayed. If no entry is required on the Header, go to the Reported Income section.
On the General Information tab, change the name and/or address information and select OK to save the record.
Verify all fields are as expected then validate/submit the transaction and close the transaction.
A new record will be inserted to the 1099R page with the updated changes from the transaction and the record should have a Processing Indicator of ‘Updated’.
When the Offline 1099 Process is executed, the updated record will be processed and a corrected record will be created and appear in the text files.
For Tax Reporting sites, when the corrected record is updated to the Form Reporting page, a new version will be inserted.
Note: If you want the new name and address to be used in future reporting years, the taxpayer record on 1099I should be updated directly on 1099I table with the correct security or via the VCM transaction.