The short answer is, you will pay a fine. It does not need to be a hefty fine if you take the proper steps moving forward. Employers can resolve any missing 1099 forms. It is not necessarily too late to send a missing information return, whether your business or the Internal Revenue Service realizes it first. Make sure that you promptly fix the issue once someone discovers it. Forgetting to file a 1099 is not uncommon. You will face consequences if you intentionally disregard a notice or put off sending the form to the IRS and your vendor and/or contractor.
Late penalties vary depending on how long you neglect to submit a 1099 form. The IRS penalty fee for tax year 2022 is anywhere from $50 to $280 per form. The IRS can issue further fines if they determine that you intentionally disregarded a tax form deadline.