If you filed an with the IRS and later discover you made an error on it, you must
• | Correct it as soon as possible. |
• | Furnish statements to recipients showing the correction. |
• | File the correction with the IRS. |
The instructions that follow do not apply to ACA Forms 1094 and/or 1095.
Instructions for correcting ACA forms are available on Account Ability's FAQ page.

If you discover an error in reporting the payer (not recipient) name and/or TIN
Write a letter to IRS/IRB containing the following information:
• | The name and address of the payer |
• | Type of error (including the incorrect payer name/TIN that was reported) |
• | Transmitter Control Code (TCC), if applicable |
• | Filing method (paper, electronic) |
• | Was Federal income tax withheld? |
Send the letter to
Internal Revenue Service
Information Returns Branch
230 Murall Drive, Mail Stop 4360
Kearneysville, WV 25430
IRS will contact you with further instructions.
If you discover duplicate reporting or that a large percentage of incorrect information has been filed.
• | Contact the Information Reporting Customer Service Site at 1-866-455-7438 for further instructions. |
Error Type 1
Also referred to as a 1-Transaction error, Error Type 1 includes
• | Incorrect distribution code(s) |
• | A return was filed when one should not have been filed. |
Type 1 errors require only one transaction to make the correction.
Error Type 2
Also referred to as a 2-Transaction error, Error Type 2 includes
• | No payee TIN (SSN, EIN, QI-EIN, ITIN) |
• | Wrong type of return was filed. |
Type 2 errors require two transactions to make the correction, an IDENTIFYING transaction and a CORRECTING transaction. The IDENTIFYING transaction is the original return with the CORR(G) indicator checked and all dollar amounts set to ZERO. The CORRECTING transaction is a new return with the CORR(C) indicator checked. When IRS receives the IDENTIFYING and CORRECTING transactions, the IDENTIFYING return is VOIDED and replaced with the CORRECTING return.

Account Ability facilitates the correction process by maintaining each filer's corrected returns under a distinct Client ID. When the Corrected Returns Only indicator, located on the General page of the client's master, is checked, the client is regarded as a and all of the client's information returns are regarded as correction returns. The CORR(G) and CORR(C) check boxes, displayed at the top of each form's user interface, are enabled for correction clients only.
1) Create a Correction Client
• | Select Client (Filer, Entity) Management from the Module menu. |
• | Right-click the client whose returns are to be corrected. |
• | Select Copy from the menu. |
• | Reply Yes when asked if you are creating a correction client, |

• | Enter a to be used for the correction client. |
• | The Client ID should be displayed in green. |
2) Open the Returns to be Corrected
• | Double-click the correction client. |
• | Open the returns to be corrected. |
3) Enter your Corrections
• | Select New from the File menu. |
• | Check the CORR(G) check box. |
• | Determine the type of error to be corrected (see above): Error Type 1 or Error Type 2 |
• | Click the Locator icon displayed directly after the TIN Type field in order to locate the return to be corrected. This step can be skipped if you are keying in correction returns from scratch. |
• | After locating the return, click the Type 1 or Type 2 button to indicate the type of error to be corrected. |
• | If Type 1 is clicked, the original return is displayed with the CORR(G) indicator checked. Enter and save your corrections. |
• | If Type 2 is clicked, an IDENTIFYING transaction is automatically created. You will then have the option to create a CORRECTING transaction. The CORR(C) indicator is automatically checked on the CORRECTING transaction. |
VOIDS - To VOID a return, create the IDENTIFYING transaction without a CORRECTING transaction.
After all corrections have been entered, print and mail all recipient copies, even the IDENTIFYING returns. If you plan to file with IRS on paper, print Copy A for IRS and Form 1096. If you plan to file electronically, you must append the CORR(G) and CORR(C) transactions to the IRSTAX file in two steps - first the CORR(G) transactions, next the CORR(C) transactions. The resultant IRSTAX file should be transmitted to The IRS FIRE System as a Correction file.
Notes
• | When printed, the CORRECTION box at the top of each correction return is checked for CORR(G) returns only. |
• | Correction returns can be keyed in directly (that is, the originals need not be recorded). |
• | The Tools menu contains selections for manipulating the CORR(G) and CORR(C) indicators on a global scale. |
• | The Tips Knowledge Base contains detailed instructions on how to import correction returns from a text file. |
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