Overview
When submitting your 1099-NEC form to report payments made to your contractors, you may encounter a "mismatch error" in Heard. This error occurs if there's a discrepancy between the information you provide and the information the IRS has on file for your contractor. When a mismatch error occurs in Heard, we can no longer safely file your 1099-NEC as we can't be certain it will be accepted by the IRS due to the mismatch.
When a mismatch error occurs
To prevent filing 1099-NECs in error and to reduce the risk of penalties, Heard verifies the information you provide for your contractors before filing to the IRS. If you receive a mismatch error in Heard, it is due to one of the following reasons:
- Incorrect Tax Identifier Number (TIN): This can occur when an incorrect Employee Identification Number (EIN) or Social Security Number (SSN) is entered.
- Incorrect Name: This can occur when an incorrect name is listed. For example, when the payee has changed their last name.
What to do when you receive a mismatch error
If you have received a mismatch error when attempting to file your 1099-NEC in Heard, it's important to act quickly to rectify it. The IRS requires 1099-NEC to be filed and sent to your contractor by January 31st. If you do not file in time an information return penalty may apply, see Information Return Penalties.
Begin by verifying your contractor's information by reviewing the W-9 provided to you by your contractor. If you have not done so, we recommend you request a W-9 form from your contractor with their most up-to-date information. Verify that what you entered in Heard matches the W-9 exactly. If you've misentered any information, you should correct it in Heard.
If you've entered the information correctly based on the W-9 and it's still rejected due to a mismatch, then there's a discrepancy between what the contractor provided on the W-9 and what the IRS is expecting.
In that case, you should work with the contractor to explore whether they changed their name or TIN at all on the W-9 compared to when they registered for their EIN/TIN with the IRS. If the issue can't be resolved with the contractor and mismatch errors persist, you will need to file the 1099-NEC outside of Heard. To ensure accurate reporting and avoid risk and potential penalties, we are unable to file the form for you.
You may file a 1099-NEC on your own through the IRS or by using a third-party service. Please see How to file 1099-NEC.