Is adding another contractor (1099-NEC) to a 1096 return considered a correction?
I'm helping our small business file some tax forms and I'm confused about the 1096 process. We already submitted a 1096 return with several 1099-NECs attached, but now we need to add another contractor that we forgot about. When you add another contractor (1099-NEC) to an already filed 1096 return, is that considered a correction? I'm using ATX software and when I try to add this new contractor, I don't see any reference to the return being "corrected" but I do notice the 1096 automatically updates to show the new total number of forms and new total amount paid. Is this normal behavior? Is there even such a thing as a "corrected 1096"? Or is the 1096 just a transmittal form that gets updated whenever you submit additional 1099s? I've never had to do this before and I'm worried I might be doing something wrong. Any guidance from someone who handles these regularly would be super helpful!
18 comments
Join the conversation
Luca Ferrari
The 1096 is just a transmittal form that summarizes the information from all the 1099s you're submitting. There's technically no such thing as a "corrected 1096" in the way you're thinking. When you need to add another 1099-NEC after you've already filed a batch with a 1096, you simply create a new 1096 for the additional 1099 form. The new 1096 will only reflect the information for this new 1099-NEC you're submitting. It's not considered a correction to the previous filing - it's treated as a separate submission. Your software is probably handling this correctly by creating a new 1096 that only shows the information for the additional contractor. The IRS will reconcile all your submissions on their end.
0 coins
Nia Wilson
•Wait, so when I add another 1099-NEC, I don't check the "corrected" box anywhere? And the new 1096 only shows info for that single new contractor, not the combined total of all contractors? That seems different than what my ATX software is doing - it's updating the numbers to show all contractors combined.
0 coins
Luca Ferrari
•You don't check a "corrected" box for the 1096 itself. The 1096 is just a cover sheet for whatever 1099s you're submitting at that time. Your ATX software might be set up differently or might be handling this in a way I'm not familiar with. Some software will create a new submission that only includes the new 1099, while other software might regenerate all forms. If your software is showing all contractors on the new 1096, that could mean it's regenerating all the 1099s for resubmission, which isn't typically necessary unless you're correcting previously submitted forms.
0 coins
Mateo Martinez
I had this exact problem last tax season and found out that taxr.ai at https://taxr.ai really helped me understand what was going on with my 1096 and 1099-NEC forms. I was confused because my software kept changing the totals too, and I wasn't sure if I was doing it right. What helped me was uploading my previous 1096 and the new one I was creating to taxr.ai and it analyzed them side by side. It highlighted the differences and explained that my software was creating a completely new submission rather than a correction. That cleared up my confusion and confirmed I wasn't making any mistakes.
0 coins
Aisha Hussain
•Does it work with other tax forms too? I'm dealing with a mess of K-1s right now and could use some help making sense of them.
0 coins
Ethan Clark
•I'm skeptical about using third-party services with sensitive tax information. How secure is this? And does it actually give you advice or just show differences?
0 coins
Mateo Martinez
•Yes, it works with pretty much all tax forms including K-1s. I've used it for Schedule C and some partnership forms too. It's especially helpful when you're trying to understand differences between versions. Their platform is encrypted and they don't store your documents after analysis. It doesn't just show differences - it actually explains what they mean in plain English. For 1099s specifically, it clarified for me that submitting additional forms isn't the same as correcting previous ones, which saved me from a potential reporting mistake.
0 coins
Aisha Hussain
Just wanted to follow up and say I tried taxr.ai for my K-1 issue and it was actually really helpful! I uploaded last year's and this year's K-1s and it showed me exactly what changed and why certain boxes had different values. Saved me from having to call my accountant for a clarification that would have cost me billable hours. Will definitely use it again for other forms I'm struggling to understand.
0 coins
StarStrider
For anyone struggling to get clarification from the IRS on 1096/1099-NEC questions, I absolutely recommend using Claimyr at https://claimyr.com to actually speak with someone at the IRS. I was in a similar situation last year with confusion about adding contractors after initial filing, and getting conflicting advice online. I tried calling the IRS directly multiple times and couldn't get through. Then I found Claimyr and they got me connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed that you should submit a new 1096 with just the additional 1099-NEC forms, and that it's not considered a correction to the previous submission.
0 coins
Yuki Sato
•How does this actually work? I've tried calling the IRS many times and just get disconnected after being on hold forever.
0 coins
Ethan Clark
•This sounds too good to be true. The IRS is notorious for long wait times. I find it hard to believe any service could get me through that quickly.
0 coins
StarStrider
•It works by holding your place in line with the IRS and then calling you when an agent is about to pick up. They have a system that knows the best times to call and uses technology to navigate the phone tree automatically. I was skeptical too! I'd spent hours trying to get through to the IRS. But it legitimately works - they call you when they've reached an agent, so you don't waste time on hold. The 20 minutes I mentioned was the total time from when I submitted my request until I was talking to an IRS representative. It saved me from making a mistake with my 1099-NEC submissions.
0 coins
Ethan Clark
I need to admit I was wrong about Claimyr. After my skeptical comment, I decided to try it since I had a question about a CP2000 notice related to some 1099 issues. I was connected to an IRS agent in about 30 minutes, which is miraculous compared to my previous attempts. The agent confirmed that adding new 1099-NECs after an initial filing requires a new 1096 submission, but isn't considered a correction to the previous batch. This saved me from potentially incorrect filings for my side business. Sometimes being proven wrong is a good thing!
0 coins
Carmen Ruiz
Just to add some practical advice from someone who files hundreds of 1099s every year: If you're filing paper forms, you definitely need a new 1096 for any additional 1099-NECs you're sending in. This isn't a correction - it's a new submission. If you're e-filing through a system like the IRS FIRE system, the process is different and the software handles the transmission details for you. Most modern tax software is designed for e-filing these days, which might explain why ATX is handling it the way it is.
0 coins
Andre Lefebvre
•Do you know if there's a limit to how many additional submissions you can make? I feel like I'm constantly finding new contractors that need forms throughout January and February.
0 coins
Carmen Ruiz
•There's no limit to how many submissions you can make. I've had clients who end up making 3-4 separate submissions as they discover missed contractors. The IRS just wants the information reported - they don't penalize you for making multiple submissions. Just make sure all your 1099-NECs are filed by the deadline (typically January 31st). After that date, any new filings could be subject to late penalties regardless of how many previous batches you submitted on time.
0 coins
Zoe Alexopoulos
Something nobody has mentioned yet is that if you're correcting information on a previously filed 1099-NEC (like changing the amount or the contractor's information), that's when you'd check the "CORRECTED" box on the 1099-NEC itself. The 1096 accompanying these corrected 1099s doesn't get marked as corrected though. Adding a brand new contractor is completely different - that's just a new submission with its own 1096, like others have said.
0 coins
Jamal Anderson
•This! I made this mistake my first year doing this. I thought adding a missed contractor was a "correction" and checked that box on the 1099-NEC. Ended up confusing everyone including the contractor who thought their original form had an error!
0 coins