We have been informed by the IRS that if a 1099 is submitted with an incorrect payee address, you do not have to complete a corrected 1099 and submit to the IRS. You may certainly create an updated 1099 to provide to your client for his/her records, but the IRS does not need a corrected 1099.
However, if the payee name and address are incorrect, a "Second Correction" will need to be completed and the corrected 1099 and a new original 1099, will need to be submitted to the IRS.
Please click here to review the 1099 User Guide for additional information on completing corrections.