IRS INCREASES PENALTIES…AGAIN!
Filers risk significant IRS penalties for failure to comply with 1099/W-2 reporting requirements. Per Internal Revenue Code (IRC) Sections 6721 & 6722, filer responsibilities include:
- Furnishing (mailing) Recipient forms by the deadline,
- Filing forms by the deadline, and
- Reporting correct information.
In addition, filers are responsible for:
- Filing electronically (eFiling), as required, and
- Reporting correct Recipient Name/TIN data.
IRC's 6721 & 6722 penalties apply to most 1099, 1098, 392X, W-2G & W-2 forms.
Annual IRS Penalty Increases
Filers can receive a penalty of up to $560 per record, up to a $3,426,000+ maximum — if 1099 or W-2 returns are furnished &/or filed after the IRS's deadline. There is no maximum penalty for intentional disregard of reporting requirements. The IRS annually indexes penalties for inflation.
|< 30 days late||$50 / return||$197,500||$565,000||$199,500||$571.000|
|31 days late thru 8/1||$110 / return||$565,000||$1,696,000||$571,000||$1,713,000|
|After 8/1||$280 / return||$1,130,500||$3,392,000||$1,142,000||$3,426,000|
|Intentional Disregard||$560 / return||No Limit||No Limit||No Limit||No Limit|
* Forms 1099-NEC and W-2 must be furnished (mailed) and filed by January 31st. Most other informational returns must be furnished (mailed) by January 31st and eFiled by March 31st, see Tax Year 2020 Deadlines.
Be Smart - Avoid Penalties!
1099 Pro, Inc. encourages filers to educate themselves about their reporting obligations and take steps to limit their penalty exposure.
Bulk TIN Match Service Bureau appointment today. Stay ahead of IRS penalties by verifying and updating Recipient Name/TIN combinations before filing with the IRS! Create a
SB@1099pro.com to contact the Service Bureau today. Schedule a Service Bureau Print/Mail/eFile appointment. Call (888) 776-1099 or email
TINCheck to validate all new vendor accounts, in real-time, while they are being entered! For greater compliance, use TINCheck’s EIN lookup feature and/or the OFAC, DMF, and other lists via the online portal or via the API. Contact TINCheck at (866) 452-3467 today! Use
- IRS General Instructions for Certain Information Returns
- IRS General Instructions for Forms W-2 & W-3
- IRS Pub. 1586 - Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs
- IRC 6721: Failure to File Correct Statements on a Timely Basis & IRC 6722: Failure to Furnish Correct Payee Statements
All information provided is believed to be accurate but not guaranteed.
All information is subject to change.