Is Form 1099 NEC Correct on Free Tax USA

Tracy0905
Tracy0905 Member Posts: 2 Newcomer
in IRS News

Hello, I have received a letter from the IRS stating that the form 1099 NEC downloaded from the IRS website was incorrect and that they reversed the amounts in the employee compensation box (box 1)and the taxes paid box (box 2). Can you let me know if your forms were correct? It would seem so, else I would have received a much larger refund if I had no income and paid over $5000 in taxes.

Thank you for all your help.

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Answers

  • Tracy0905
    Tracy0905 Member Posts: 2 Newcomer

    Hello, I have received a letter from the IRS stating that the form 1099 NEC downloaded from the IRS website was incorrect and that they reversed the amounts in the employee compensation box (box 1)and the taxes paid box (box 2). Can you let me know if your forms were correct? It would seem so, else I would have received a much larger refund if I had no income and paid over $5000 in taxes.

    Thank you for all your help.

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 270 image
    edited November 25

    Hi Tracy0905,

    Thanks for joining our Community and writing in with your question.

    In October 2025, the IRS issued Letter CP321E notifying taxpayers who accessed their online accounts from February - August 2025, they may have accessed the incorrect online version of Form 1099-NEC.

    If you used the original 1099-NEC you received from the payer or issuer, the information you used on your tax return was correct.

    If however, you didn't have your original 1099-NEC form and relied on the IRS' version, and downloaded the form in your online account between February - August 2025, it may be incorrect. This means you might need to amend your tax return for the year involved, which could be 2023 and/or 2024.

    FreeTaxUSA software accepts what you input.

    So if you input incorrect information (unbeknownst to you) from the Form 1099-NEC during the affected timeframe, the software accepted it.

    You may need to amend your tax return for tax year 2023 and/or 2024.

    We have no way to know what the correct amounts should be on your Form 1099-NEC, so you'll need to review your records and statements.

    To amend your tax return originally filed with FreeTaxUSA, follow these steps:

    For 2024, login to your 2024 account here.

    For 2023, login here.

    Follow the prompts.

    You might also like to read this article in our Community for additional information on amending your return.

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