There exists a 1-step and a 2-step corrections which depends on the nature of the error.
It is important to first differentiate between a correction and omission. If you submitted a file and it is processed by IRS/ECC-MTB, and you later discover that certain information returns were omitted or left out from the original file, then you need to create a separate file with the omitted returns and resubmit. If you submitted a file and it was processed by IRS/ECC-MTB, and you later realize that the file has erroneous, then you need to file a correction of just those records.
If the dollar amounts or address are incorrect and/or a return was filed when one should not have been filed, the correction is a one-step process. Simply prepare a new information return and enter an “X” in the Corrected box at the top of the form. Enter the payer, recipient and account number information exactly as it appeared on the original incorrect return. Enter all correct money amounts in the correct boxes as they should have appeared on the original return and enter the recipient’s correct address. If a return should not have been filed, enter “0” (zero) for all dollar amounts. Submit the corrected returns with an Annual Summary and Transmittal of U.S. Information Returns (Form 1096).
If the recipient’s identification number was incorrect or missing when originally filed or the recipient’s name was wrong, correcting these errors is a two-step process. First, prepare a new information return with the payer, recipient and account number information exactly as it appeared on the original incorrect return and enter “0” (zero) for all the dollar amounts. Enter an “X” in the Corrected box at the top of the form. The second step is to prepare another new information return with all the correct information. DO NOT enter an “X” in the Corrected box on this return. Submit both returns to the appropriate service center accompanied by a completed Form 1096. Enter the words “Filed to Correct TIN, Name and/or Address” in the bottom margin of the form.
If the original information return was filed using the wrong type of return, follow the two-step procedure above with one exception. Enter the words “Filed to Correct Document Type” in the bottom margin of the Form 1096.