The short answer is that you will pay a fine. Missing your deadlines for 1099 forms can become costly if you do not rectify the issue with the Internal Revenue Service. Your business needs to contact the IRS in order to determine exactly how much you owe them. The severity of your fine relates to how promptly you address your missing forms. The IRS may issue greater fines if they perceive you as flagrantly disregarding your filing deadlines.
Up to 30 Days – Filing information returns or payee statements late incurs a fine of $50.
31 Days Late Through Aug. 1 – The fine in 2023 for forgetting to send 1099 forms is $110.
After Aug. 1 or Not Filed – A business pays $290 for each missing information return or payee statement.
Intentional Disregard – Any evidence that you intentionally did not send a Form 1099 results in a $580 fine per form for the year 2023.
Remembering which deadlines are when can feel overwhelming. Next time you wonder, “What should I do?” when you forget to send 1099 forms, consider W-2 and 1099 software. We handle many 1099 forms and keep small businesses organized ahead of tax season. Call our customer support at (405) 340-0697 or try our free demo today.