Corrected 1099s--Participant issues

[Guest kjcurly]

Can I get some feedback on what people do when they have to issue corrected 1099s to participants due to clerical errors, ie internal coding incorrect, etc.? When the 1099s were sent to participants with standard advice to consult tax professional, there have been questions about "Who is supposed to pay for this?" There are a limited number of amended 1099s, plan administrator is interested to see what others' "best practices" are in this situation. Should plan or employer offer to cover some portion of expenses to avoid unhappy employee calling IRS/DOL?

[Guest Xannatharr]

Can I get some feedback on what people do when they have to issue corrected 1099s to participants due to clerical errors, ie internal coding incorrect, etc.? When the 1099s were sent to participants with standard advice to consult tax professional, there have been questions about "Who is supposed to pay for this?" There are a limited number of amended 1099s, plan administrator is interested to see what others' "best practices" are in this situation. Should plan or employer offer to cover some portion of expenses to avoid unhappy employee calling IRS/DOL?

In this sort of case, I would consider offering to reiumburse the participant for the cost of filing their amended return.

[JanetM]

kjcurly, are you TPA or employer? Am wondering who made the mistake? Did TPA make the mistake? Did employer give TPA bad data? Who ever made the mistake should be the one to make the participant whole, that means filing amended returns.