Adhering to IRS guidelines is the best and safest way to ensure that your business is compliant with tax regulations, greatly reducing the chances of audits and penalties. If you are unsure when your Form 1099 eFiling deadlines are, you can find the complete list of IRS and SSA due dates here.
This guide explains what happens, any penalties that apply, and what you should do next.
Most SMBs are not experts in taxes, and things happen. We understand. So, let’s assume you have already missed the deadline. What do you do?
I Missed the 1099 Filing Deadline: Four Steps to Avoiding Costly Penalties
If you missed the deadline for filing Form 1099, take action quickly. Here are four steps that will help minimize penalties.
- File your late 1099s as soon as possible: The sooner you file, the lower the penalty. Filing late is always better than not filing at all.
- Check information for accuracy: Correct TINs, names, and amounts before submitting. Incorrect payee information can create additional penalties later.
- Consider requesting penalty relief: If you had a legitimate reason such as a natural disaster or serious illness, you may request reasonable cause relief. In some cases, the IRS may reduce or waive penalties.
- Keep documentation: Maintain records explaining why the filing was late and when you corrected it. This is important if you need to dispute a penalty or request relief.
Penalties for Missing a Form 1099 Deadline
When you file |
Penalty per form (payer-side) |
|
Within 30 days after deadline |
$60 per form |
| Between 31 days late and August 1 |
$130 per form |
| After August 1 or never filed |
$340 per form |
| “Intentional disregard”
(i.e. purposefully ignored the requirement) |
$680 per form (or more with no maximum) |
These penalties apply both for failing to file information returns with the IRS and failing to furnish correct recipient statements.
Other Consequences of Filing 1099s Late
Missing a 1099 deadline can lead to more than penalties.
- The IRS may send a notice such as Notice 972CG when it assesses late filing penalties. Interest continues to accrue until the balance is paid.
- If income was reported incorrectly because a 1099 was not filed on time, the IRS may require corrected filings or additional tax payments with interest and possible penalties.
- Incorrect or missing 1099 reporting may also raise questions about TIN accuracy or withholding obligations.
If you missed a Form 1099 deadline, penalties grow the longer you wait. File your forms as soon as possible, make sure the information is accurate, and keep documentation in case you need penalty relief.
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