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Fix rejected 1099 forms

by Intuit•78• Updated 1 month ago

Learn how to fix and resubmit 1099-NEC or 1099-MISC forms rejected by the IRS in QuickBooks Online, QuickBooks Contractor Payments, or QuickBooks Online Payroll.

If you created and e-filed 1099s in QuickBooks Online, QuickBooks Contractor Payments, or QuickBooks Online Payroll you may get an email that the IRS hasn't accepted your e-filings. The most common explanations for this issue are: either your company's legal name, Employer Identification Number (EIN) or Social Security number (SSN) doesn't match IRS records, or one or more of your contractors has an incorrect address.

To resolve this rejection and resubmit your 1099s, you must void your 1099s, update the incorrect info, and then e-file again.

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  1. Go to the 1099 filings tab
    • QuickBooks Online and QuickBooks Online Payroll: Go to Taxes, then 1099 filings.
    • QuickBooks Contractor Payments only: Go to 1099 filings.
  2. Look for the alert ‌on the page. It'll indicate why the IRS rejected your 1099-NEC or 1099-MISC filings.

Rejections happen for these reasons:

  • Your company's legal name, EIN, or SSN doesn’t match IRS records exactly.
  • The contractor's address(es) don't match IRS records. The most common reason for this is an incomplete ZIP code, wrong state, or a non-US address.
  • Other less common data issues that can result in IRS rejection.

From the 1099 filings tab, select Void forms. This will void all forms that have been rejected. Make sure you go through all rejection alerts and void all rejected forms before continuing to Step 3.

If the rejection is caused by a data issue unrelated to your company or contractor info, skip to Step 4.

Review your company info:

From the Contractors tab, select Prepare 1099. Review your company's legal name and tax identification number. Select Edit ✎ to see more info or to make a correction.

  • Note: don't abbreviate your legal info. It must match IRS records exactly.

Review your receipient's info: 

You can review each contractor’s info from the Contractors tab. Select their name to review their address and tax identification number.

If you have QuickBooks Online, run a report to see your vendor details.

  1. Go to Reports.
  2. Search for Vendor Contact List.
  3. Select the Contractor name, then Edit to make updates.
NOTE: You won't be charged again when you refile due to rejections.

 If your initial filing got rejected:

  1. Go to the Contractors tab.
    • QuickBooks Online and QuickBooks Online Payroll: Go to Payroll, and select Contractors 
    • QuickBooks Contractor Payments only: Go to Contractors, then Contractors.
  2. Select Prepare 1099s.
  3. Follow the steps to create and e-file your 1099-NEC or 1099-MISC. Be sure to review and update if needed your company's legal and contractor info, including their legal name, tax identification numbers, and addresses.

Once complete, each contractor will receive an electronic copy of their 1099 form.

If your corrections filing got rejected:

  1. Go to the 1099 filings tab.
    1. QuickBooks Online and QuickBooks Online Payroll: Go to Taxes, then 1099 filings.
    2. QuickBooks Contractor Payments only: Go to 1099 filings.
  2. Find the original 1099 filing from the list, then select Correct.
  3. Follow the steps to complete and resubmit the corrections. 

Once complete, each contractor will receive an electronic copy of their 1099 corrections. We don’t do paper mail for corrections, so you’ll be responsible for delivering an updated copy to your contractors or obtaining a written consent for electronic delivery of the form.

For more info see:

QuickBooks Online AdvancedQuickBooks Online EssentialsQuickBooks Online Payroll CoreQuickBooks Online Payroll EliteQuickBooks Online Payroll PremiumQuickBooks Online PlusQuickBooks Online Simple Start