A "Correction Needed" or "TIN Validation Failed" message means that the IRS has identified a Name/TIN combination on a 1099 form that does not match IRS records. The IRS will indicate which specific recipients have a mismatch in either the name, TIN, or both. This article will guide you through the steps to correct these TIN-related issues.
Note: When you receive a "Correction Needed" or "TIN Validation Failed" status, your filing has already been accepted by the IRS and is currently being processed.
How to Know If there Is a TIN Validation Error
Yearli will inform you of a TIN validation error via e-mail and on the Correction Report which is available within E-File History.
To access the report:
- Select E-File History.
- Click View Detail to the right of the filing with the Correction Needed status.
- Click View Correction Needed to download the correction needed report.
The correction needed report lists forms that need corrections along with the related error message. The sample below indicates that recipient John Doe has a TIN validation error on the 1099 form.
| Form Title | Payer TIN | Payer Name | Recipient TIN | Recipient Name | Error Message |
| 1099-NEC | 12-3456789 | ABC Company | 123-45-6789 | Doe, John | John Doe: TIN Validation Failed |
My information hasn’t changed, why am I receiving a TIN Validation Failed Error now?
All 1099s were previously filed through the IRS Filing Information Returns Electronically (FIRE) system. The IRS is modernizing their electronic filing system for Information Returns. The modernized system is called the Information Returns Intake System (IRIS). The IRIS system is able to validate data at the time of submission and because of that, it can communicate TIN validation issues upfront.
Determining Which Name or TIN on the Form Is Incorrect
For 1099 forms the IRS will provide specific information on which forms caused the TIN validation error. The report will display the name of the individual next to the TIN Validation Failed error message.
The Correction Report above indicates that John Doe, with recipient TIN 123-45-6789, has a TIN validation errors on his Form 1099-NEC.
- John Doe’s name is listed in the Error Message column.
- This means that John Doe’s name/TIN combination is incorrect in the Recipient Name/Recipient TIN fields.
How to Obtain the Correct TIN Information
Follow these steps to ensure you have met all requirements to obtain the correct name/TIN information for your recipient:
- Check your records (Form W-9) to verify that all name/TIN combinations were entered correctly on the 1099 Form.
- Contact the recipient to validate the recipient’s name/TIN combination.
Once you have identified the incorrect name/TIN fields and have obtained the correct data, you may enter a 1099 correction in Yearli. Submit your corrected forms as soon as possible. If you do not change any data on your forms, do not resubmit your forms to the IRS.
What if a TIN Issue Can't be Resolved?
You may be unable to resolve a TIN issue if you can't reach a particular recipient to validate their TIN. It is also possible that you have taken all required steps and believe that your data is accurate. In these cases, make sure you have documented your process thoroughly to avoid potential fines and penalties. The IRS has outlined the following process for 1099 forms:
- Make an initial solicitation at the time the account is established (e.g. when hiring a contractor or opening an account). Typically, this can be done by requesting a completed Form W-9.
- If you do not receive the TINs, the filer must make a first annual solicitation by December 31 of the year the account is established.
- If TINs are still not provided, make a second annual solicitation by December 31 of the year following the initial solicitation.
- Keep records of all solicitations.
Note, if a TIN is not obtained or is obviously incorrect, the payer must backup withhold when a payment is made.
How to Enter a Correction
Click here to go to the How to Correct a 1099 article.
Deadline to Correct TIN Validation Errors
While there is no explicit deadline for corrections, the IRS says to correct the forms as soon as possible. Yearli will allow you to correct your current tax year forms until the site rolls over to the next tax year. This generally happens every year in mid-November. Click here for more information about prior year corrections through Yearli.