Forget to get those 1099s in the mail on time? If you cannot show reasonable cause, you may be hit with a penalty for late filing, or do not include all required information on the 1099 form. If you are required to electronically file, and you file on paper, you can also be hit with a penalty. Messy forms that are not machine readable will also cause you to be subject to a penalty. Additionally, you can be assessed a penalty if you report an incorrect taxpayer identification number.
The penalty is based on when you file the returns, so if you miss the deadline, don’t delay filing them.
Penalty Amount Details:
$15 per form (not page) if you correctly file within 30 days of the due date.
$30 per form (not page) if you correctly file more than 30 days past the deadline but before August 1st.
$50 per form (not page) if you correctly file after August 1st, or if you do not file the required forms.
Get those forms in as soon as possible. Not only are you looking at penalties for late filing the forms, but you are also potentially losing the amounts paid as tax deductions, if the required forms are not filed. IRS Auditors will always check whether you filed the required forms, and if you didn’t, they will disallow the deduction, which will increase your tax liability. Added to that, will be penalties and interest on any amount of tax owed, as a result of an audit. That can start to add up quickly to a large amount!