Missing a 1099 deadline is not the end of the world, but you will likely face some consequences from the Internal Revenue Service. Do not fret if you miss a deadline — you can and absolutely should send any missing 1099s immediately once you discover your mistake.
Some of the major consequences if you missed a 1099 deadline are:
IRS Penalties – The penalty fee for missing a 1099 deadline depends on how long you wait to amend it. The fee can range from $50 to $280 per form for tax year 2022. Intentional disregard of the deadline may result in a $570 minimum penalty.
Missed Claims – Send vendors or independent contractors a 1099 form so that your business can claim an expense on your tax return. Failing to send out all of your 1099 forms may result in a higher company tax bill.