The scenario: you've already filed Populi-generated 1098-Ts to the IRS, but you discover that a student's Social Security Number was incorrect. Now you need to furnish 1098-Ts with correct SSNs both to the IRS and the student.
The following guide was produced after corresponding with an IRS agent and reflects the advice we were given in early 2014.
- Make note of the incorrect SSN—you'll need it later when filing the correction with the IRS. Check the person's changelog (Profile > Activity Feed: select Changes) or, if that doesn't work, we can probably unearth the old, incorrect SSN for you.
- Use the Hide/Unrelease action on the 1098-T report to open up the incorrect form for adjustment.
You should probably paper file this return
Since you are only correcting one information return, you might as well paper file, rather than eFile. Besides that, corrected returns require both the incorrect SSN as well as the correct SSN, and there is no way to include both in the Populi-generated eFile.
Generate two 1098-T's
You will need to generate two 1098-T's:
- The first will be marked Corrected. It must include the incorrect SSN.* It must also include zeroes in place of any amounts that were in there previously. For example, if Boxes 2 and 5 had amounts, those must be changed to zeroes. Doing so "zeroes out" the filing for that SSN.
- The second is a fresh, new, accurate 1098-T with the correct SSN. DO NOT mark this one Corrected! You can generate this from Populi after correcting the student's SSN.
Fill out form 1096
Take both of the IRS copies of the 1098-Ts and fill out a Form 1096. You'll indicate on this 1096 that there are two accompanying 1098-T forms. Send the 1096, plus the two 1098-Ts, to the IRS. The IRS agent mentioned that it's important to hand-write a note on the 1096 (probably near the signature line) that says something like "filed to correct TIN". Among other things, this lets the IRS know that you are not just trying to sneak in a new 1098-T after the deadline.