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.
Using a comprehensive 1099 system is a trusted way to ensure that each deadline is met and you avoid major penalties. If you do miss a 1099 deadline, some consequences can be:
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.
Keep track of your important filing deadlines with our easy-to-use, menu-driven W-2/1099 Forms Filer software. Download our free 1099-etc Demo software today.