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 using the M1099 transaction, follow these steps:
Find your record on 1099R where Current Record = Yes.
Select the Modify Existing Record (to create an M1099 transaction). You will be transitioned to Create Transaction page to enter the transaction number.
Once 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 Reported Income Information tab, change the amount(s) or boxes as needed.
Valid and Submit the transaction.
A new record will be inserted to the 1099R page with the updated changes and the record should have a Processing Ind 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.