Tax Forms that have been filed and sent to a recipient can be corrected if errors are detected by the payer or the recipient. Payable provides a means to create correct forms that will be sent to both the recipient and the IRS (if required).
Let’s walk through the steps for correcting forms!
To correct a filed form, find the form you wish to correct in the "Forms in Process" tab or "Forms Completed" tab on the "Taxes" page:
If you have a large number of forms you can filter the form by the name of the recipient.
Click on the Form row and ensure it is the form you want to correct. Scroll to the bottom of the form and you will see the option to "Correct Form."
Click "Correct Form." A dialog appears to confirm your intent and inform you of what will happen next:
Click "Create Corrected Form."
Skip this step if you only need to update box amounts.
From there, the form is automatically moved to the “Forms to Do” page where you will see the new form that is a correction draft. In the correction draft, any updates that you have made (or recipients have made) will be applied automatically.
If the recipient has created a Payable account to input their own information, reach out to them directly to have them correct their information under the “My Account” page if they haven’t already done so. If you have what you believe to be the correct information and the recipient does not update their information, you can override that information for the form by clicking on the recipient information section of the Form and confirming that you want to override it.
If the recipient is a Non-User (not invited to Payable) or has a pending invitation, then you, as an administrator, can update their personal information for them. Click on the the “Recipient Box” on the form and it will take you to the Recipient Profile where you can update the form information. Once the information is saved, the form will be updated accordingly.
Once you've found the form and marked it corrected, you'll be able to find it in "Forms to Do" as if it was a new draft. From there you'll be able to make manual changes to each box.
For 1099-K Forms, make sure that the amounts in the boxes add up to Box 1a.
Ensure that if you have the correct amounts (if changed) in the State Amounts if applicable.
When you're ready, you'll be able to progress the form to "Ready to File" or if you need to bypass alerts for missing information you can mark "File Anyway."
To create corrections with updated Filer/Payer information, go to your company settings page, and add the correct information there. Your most up-to-date settings will be applied automatically to all Correction Draft tax forms.
When a correction is ready to send, the same process applies for filing any other form. Click on the "Mail & E-File" or "E-Deliver & E-File" button at the bottom of the form.
The Form will move into the Forms In Process Tab with the status of "Correction Form." The Corrected Form will be in the Forms Completed Tab with a status of "Corrected."
The recipient will receive an email and depending on their form delivery method (Mail or E-Delivery) they will also see the update in that form as well.
Payable will then determine if there is a need to submit a correction E-Filing with the IRS and take appropriate action on your behalf.
In some instances you may need to make corrections to all or a large subset of the forms you have filed. In this case it will be more efficient to leverage CSV imports to apply corrected data.
NOTE: Once you have made the adjustments required, you can remove extraneous columns from the spreadsheet, however you must leave the Payable Tax Form Id and Payable Worker Id in place.
Here's a walkthrough of the steps required to handle a bulk correction.
At the bottom of the Taxes page, click Export to CSV, select the status of either In Progress or Completed depending on what status your forms are in.
Open the CSV in a spreadsheet application. You will at this point want to remove forms that do not need correcting so that you are left with only the rows you want to work with.
Once you have narrowed down to the forms you need to edit, make the adjustments required
As described in the Individual Corrections section, recipient information for Users cannot be updated through this process - they can be instructed to update their own information which will then get updated in the correction form.
Example: Invalid Recipient Address
In this example we'll update addresses for a few recipients.
If the recipients are Non-Users, their address information will be updated, otherwise a correction will be created nonetheless. You can then solicit the updates from the recipient or override the individual form yourself.
To make updates to box amounts, simply edit the existing box amounts, or, if you need to change the box allocation from one to another, "zero out" the incorrect box and move the amounts to the correct box.
Ensure that the state allocation boxes change accordingly if applicable.
Only box amounts that you wish to add/remove need to be included - by default existing data will remain on the form unless overridden.
Example: Incorrect Box allocation
In this example we are correcting the box values, where they were stated in Box 7, but needed to be stated in Box 3. We "zero out" the incorrect box, and transpose the values to the correct box. This is all the data required to make this change.
Example: Incorrect Box Amount
In this example we are correcting the amounts in the boxes. Because the amounts are changing, we need to also ensure we update the state income allocation along with the box amount if applicable.
3. Export Spreadsheet as CSV
4. Import Tax Forms as Corrections
$0.99 per payment