Client has additional 1099s after I filed their 1099s

[David]

I have several small business clients who we already filed their 1099s by the January 31st deadline. They have told us that they received additional W-9s from service providers and need 1099s processed for those vendors.

I use the ATX W-2 Payroll program. Do I simply add these additional 1099s to the file I already e-filed for them? Or do I need to create a new file with only the additional 1099s?

I also have a client that needs to report a correction to the amount reported on 1099-DIVs previously e-filed. I know I should report a correct 1099-DIV in the same file that was already e-filed for this situation.

The penalties for incorrect 1099s and late filing seem to be stricter this year. I couldn't tell from my research if not receiving the W-9s qualifies for reasonable cause and exempts the clients from late filing penalties. I want to make sure I give the clients correct information regarding any potential penalties.

The dollar amount change on the 1099-DIV is a couple of hundred dollars each for 2 1099s. The reason the change was discovered after the 1099s were e-filed, is because the tax return was prepared and adjusting entries impacted the amount of the shareholder dividends paid. It appears that there is a penalty for an incorrect amount previously reported. Is there any exemption available for this client for this situation? I couldn't see any exemptions that would apply unless no willful intent qualifies for an exemption.

Thanks for your help.

 

 

[BHoffman]

I know you just file another 1096 / 1099 for only the MISC forms that were missed in the original file, but not sure about the DIV correction and the penalties.

 

 

[JohnH]

---->  The penalties for incorrect 1099s and late filing seem to be stricter this year. I couldn't tell from my research if not receiving the W-9s qualifies for reasonable cause and exempts the clients from late filing penalties. I want to make sure I give the clients correct information regarding any potential penalties.<-----

You might want to study what these people have to say about 1099's and TIN verification. There's some pretty scary stuff in there regarding the Tier 3 penalty, and good advice on how to insulate your client from it.

http://1099express.com/TinMatch.asp

[David]

Thanks to both of you for your help.