Penalties for Not Filing 1099 Forms Before Due Date

The Penalty amount depends on when you filed the information return or when you furnished the correct payee statement. The penalty for not filing 1099 forms, and correct information is separate from the penalty for not providing the proper payee statement. The penalty rates differ based on the condition.

Penalty Rates

The following table reflects the penalty rates and the maximums for not providing the correct information and/or not furnishing appropriate statements of the payee. This also includes the inflationary adjustments which are applicable.

Large Businesses – Gross Receipts of $5 Million& more and Government Entities

Returns Furnished / Filed	Due date from 01-01-2011 to 12-31-2015	Due Date from 01-01-16 to 12-31-2016 (adjustedinflation)	Due Date from 01-01-17 to 12-31-2017 (adjustedinflation)	Due Date from 01-01-18 to 12-31-2018 (adjustedinflation)
Less than 30 days late	$ 30 / return	$ 50 / return	$ 50 / return	$ 50 / return
More than 31 days Late August 1	$ 60 / return $ 500,000 max	$ 100 / return $ 1,589,000 max	$ 100 / return $ 1,589,500 max	$ 100 / return $ 1,609,000 max
After August 1st or not	$ 100 / return $1,500,000 max	$ 260 / return $ 3,178,500* max	$ 260 /return $3,193,000 max	$ 260 / return $ 3,218,500 max
Disregarding Intentionally	$ 250 / return No limitation	$ 520 / return No limitation	$ 530 / return No limitation	$ 530 / return No limitation

Note: that there will be increased penalty amounts. This is applicable to certain failures when there is an intentional disregard. Check IRC 6721 (e) (2) and IRC 6722 (e) (2)

Small Businesses – Gross Receipts with $5 Million or Less

Returns furnished / filed	Due date from 01-01-2011 to 12-31-2015	Due Date from 01-01-16 to 12-31-2016 (adjustedinflation)	Due Date from 01-01-17 to 12-31-2017 (adjustedinflation)	Due Date from 01-01-18 to 12-31-2018 (adjustedinflation)
Less than 30 days late	$30 / return $75,000 max	$50 / return $ 185,000 max	$50 / return $ 186,000 max	$50 / return $187,500 max
Late by 31 days	$60 / return $ 200,000 max	$100 / return $529,500 max	$100 / return $532,000 max	$100 / return $ 536,000 max
After August 1st or not	$100 / return $ 500,000 max	$260* / return $ 1,059,500 max	$260 / return $ 1,064,000 max	$260 / return $ 1,072,500 max
Disregarding Intentionally	$250 / return No limitation	$520 / return No limitation	$530 / return No limitation	$530 / return No limitation

Penalties for filing incorrect information returns will be applicable:

• When you do not file the correct information return it by the given due date and the reason is not shown properly.
• When you file the paper you need to file electronically.
• Taxpayer Identification Number is not reported.
• Incorrect TIN is reported
• The file paper forms submitted are machine-readable.

Penalties for providing incorrect payee statements will be applied:

• When you do not give the correct payee statement and when the reasonable cause is not shown.
• When all the necessary information is not specified in the statement or
• When any inappropriate information is specified in the statement.

The penalties vary depending upon certain conditions. The wise part is to avoid the penalties and other charges. To do so, file your returns at the earliest before the actual due date.

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