The IRS is migrating to a new, more sophisticated filing system that performs stricter data validation compared to its old system. The new statuses will clearly indicate what action is required, whether the forms need to be corrected or if the entire submission needs to be resubmitted.
Even though you have filed the same way for years, you may now see one of the following statuses:
Correction Needed
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.
Note: When you receive a "Correction Needed" or "TIN Validation Failed" status the filing is considered "Accepted with Errors". Corrections do not need to be completed before the deadline, however you should complete them as soon as you can.
Correction Needed - How to Fix 1099 TIN Validation Failures
Rejection
A "Rejection" status is generally due to the Payer Name/TIN combination not matching exactly what the IRS has on file for the payer. Before filing a resubmission you will want to check with the payer directly to find out what is listed on its SS-4 or IRS correspondence. You can also reach out to the IRS at 800-829-4933 for Payer Name and TIN verification.
What to Do if Forms are Rejected