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O
oigwealth
January 26, 2024
Question

IRS rejected our contractor 1099s NEC - I VOIDED them and reissued HOWEVER the new ones DON'T have the Corrected Box Checked

  • January 26, 2024
  • 1 reply
  • 0 views

Just as the title reads, we received notice that our 1099 NECs filed on January 4th were REJECTED by the IRS yesterday.

 

It is important to note that I had to actually call the IRS to figure out why my 4 1099-NECs had been rejected.

Comparing with the 2022 year which had no issues and were IDENTICAL to the 2023 which were rejected, it seems IRS accepted 2022 when I filed them last year without issue, YET previous to 2022 I noticed that BOTH our legal S-corp business name AND our DBA would appear on the 1099s.  I had not even noticed that for the 2022 year, Intuit ONLY printed our DBA and although they were accepted by the IRS last year, this is the actual reason why our 2023 1099s were REJECTED now - only shows our DBA and not the business's legal name.

I went into the General QBO settings and discovered that "somehow" our legal business name mysteriously disappeared!  Whether it was a system update glitch that occurred well over a year ago I can only speculate.

I entered our legal S-Corp name and still shows the DBA name for other items like invoices, etc.

 

When I created the new 1099s with Quickbooks Online this morning, it now ONLY showed our legal business name and the DBA does NOT show on the line underneath as in all years previous we've been doing this since 2010!

This prompted me to have to call QBO support and they were really no help in understanding why QBO removed our legal name in the first place, and why now QBO will only populate the 1099s with the legal name and not include on the line underneath the DBA name as has been done in all years previous - EXCEPT for 2022 which somehow the IRS accepted (our 1099s with no legal name and just DBA).

 

On the new ones I prepared this morning, which were e-filed again and I immediately received an email confirming that the IRS accepted them, the "Corrected" box was NOT checked on any of our 1099s - I was hoping that this means the recipient never received the original ones, HOWEVER I got off the phone with one our our contractors who told me that they DID receive the original 1099 in the mail (the one that got rejected by the IRS).  Now they will be receiving the newly filed 1099s and what are the implications that Intuit did NOT check the "Corrected" box on any of them?

1 reply

JaeAnnC
JaeAnnC
January 26, 2024

I wish you didn't have to encounter the challenges of rejected 1099 filing, @oigwealth. Please know that this isn't the experience we want you to have. 

 

I appreciate your initiative of updating your legal business information in QuickBooks Online (QBO) to address the issue of your rejected 1099 e-filings. It's possible that the Same as company name box was checked instead of entering the Legal Name different from the Company Name, that's why the DBA name is showing.

 

Regarding the unchecked Corrected box after making the necessary corrections, the steps are currently unavailable for submitting amendments. However, you can check this article for the instructions when updates are made available: Correct or change 1099s in QuickBooks.

 

Moreover, you can print your 1099 forms directly in QBO, so you can send your contractors physical copies for record-keeping.

 

Please don't hesitate to visit the Community if you have other concerns about 1099s. Our team is available 24/7 to provide help. Stay safe.

O
oigwealthAuthor
January 26, 2024

This does NOT help.  Why does Quickbooks Online provide us with instructions to VOID the 1099s which were rejected by the IRS, and then steps to reissue the 1099s to our contractors and we as Intuit/QBO clients put our faith that QBO knows what it is doing, and the reissued 1099s following the provided steps do NOT have the checkmark for CORRECTED and that is how the IRS accepted them and how they are going out electronically and by mail via your electronic system to both the IRS and contractors.

 

What a mess?  Unless, an expert there at QBO can assure us that the Corrected box did NOT need to be checked?

K
KayePe
January 26, 2024

We appreciate you for coming back here in the thread, @oigwealth. Let me route you to the support to help you reissue the contractor 1099 NEC. 

 

We hear your sentiments and understand your situation. Note that this is not the feelings we want you to experience. Upon reading your post, we know how essential fixing this concern is. With this, I suggest contacting our support team. They have the expertise and necessary tools to assist you with this concern. Here's how to contact them:

 

  1. In your QuickBooks, go to Help.
  2. Click Contact Us and input your concern, then select Let's Talk.
  3. Once done, choose a way to connect with us.

 

Moreover, I recommend scanning this link to guide you in understanding more about the 1099 in QBO: Get answers to your 1099 questions. 

 

Reply to this post for clarifications about filing 1099 inside QBO. The community is here 24/7. Take care! 

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