Remove a Form 1099-misc that has been filed incorrectly

[Questionguy101]

Taxpayer is the single member of a disregarded LLC and his LLC has issued a Form 1099-MISC to himself. It is obviously a mistake. So taxpayer has to cancel the Form 1099-MISC that has been filed by mistake.

http://www.irs.gov/pub/irs-pdf/i1099gi.pdf#page7

On page 8 of the Form 1099 instruction, I think they have instruction on how to make such a correction. But I have read and re-read the instruction many times and I still cannot understand the procedure. Maybe I am too tired so my brain is not functioning right. Any bright mind around here who can understand how they want us to do?

[ChEAr$]

Taxpayer is the single member of a disregarded LLC and his LLC has issued a Form 1099-MISC to himself. It is obviously a mistake. So taxpayer has to cancel the Form 1099-MISC that has been filed by mistake.

http://www.irs.gov/pub/irs-pdf/i1099gi.pdf#page7

On page 8 of the Form 1099 instruction, I think they have instruction on how to make such a correction. But I have read and re-read the instruction many times and I still cannot understand the procedure. Maybe I am too tired so my brain is not functioning right. Any bright mind around here who can understand how they want us to do?

Prepare new 1099-misc to recipient, except put in a zero in box 7 and mark it corrected; send in to Austin with a 1096.

[Questionguy101]

Prepare new 1099-misc to recipient, except put in a zero in box 7 and mark it corrected; send in to Austin with a 1096.

Thank you.

In the original returns filed, the taxpayer has 8 1099s and the total amount is $120,000. The 1099 that is to be canceled now is $30,000.

I have talked to two persons about the 1096 that goes together with this corrected 1099-misc and they gave me different opinions:

(1) The first person said I should put "7" (8 - 1) as the number of 1099s and put $90,000 ($120,000 - $30,000) as the total amount on the new 1096 that goes together with the corrected 1099-misc.

(2) The second person said I should put "1" as the number of 1099 and put $0 as the total amount on the new 1096.

Which one is correct?

[Burke]

Number #2 is the correct answer.

The 1096 is a summary of the 1099MISC's you are sending in now. You are only sending one, with "zero" as the amount, marking it as "corrected." The 1096 should reflect this.