Correcting Information Returns
1098, 1099, 3921, 3922, 5498, W2G
If you filed an Information Return with the IRS and later discover you made an error on it, you must
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.
The steps required to correct an error depend upon the type of error.
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:
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.
Error Type 1
Also referred to as a 1-Transaction error, Error Type 1 includes
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
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.
Correcting Type 1 and Type 2 Errors
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 correction client 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
2) Open the Returns to be Corrected
3) Enter your Corrections
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.