Type 1 corrections are identified by the IRS as changes in amounts, codes, or indicators. Corrections are required when the IRS has received the form data. To perform the Type 1 correction on the tables, follow these steps:
Go to the Reported Income page (1099R, 1099ER, 1042R) where the change needs to be made.
Find the most current record on the page you want to correct (Current Record = Yes).
If the IRS Reported field is Yes, the Apply Corrections link should be enabled.
Select Apply Corrections link. You will be transitioned to the Update page.
Change the data as needed (change Box amount from $100 to $200).
Select OK.
Your changes have been made and you will be returned to the Reported Income page. The updated record will 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 file(s).
For Tax Reporting sites, when the corrected record is updated to the Form Reporting page, a new version will be inserted.
Some changes to Advantage fields will not be recognized as corrections because the IRS do not capture those fields or think they are pertinent fields (Comments, Name 2, Payer’s State no, etc.). For these types of fields, if changes are made, they will be accepted on 1099R, 1099ER, and 1042R tables. The changes will remain on the table and not passed to the next process or tables until a type 1 or type correction has been made to those records. When the type 1 or type 2 corrections are made, those corrections will be processed and passed along including prior changes that were not recognized as corrections.