Failing to file your business’s 1099-MISC forms can lead to incurring penalties from the Internal Revenue Service. The severity of the penalty depends on the lateness of a Form 1099-MISC. A penalty will also be higher if you intentionally disregard the March 1 paper deadline or March 31 electronic deadline.
Charges for late information returns range from $50 to $280 per form for the 2022 tax year.
Up to 30 days late – You must pay a $50 penalty.
Thirty-one days late through Aug. 1 – You must pay a $110 penalty.
After Aug. 1 or not filed – You must pay a $280 penalty.
Businesses that intentionally overlook 1099-MISC filing requirements face a minimum penalty of $570 per form for the 2022 tax year. Your business may alternatively face a penalty of 10% of the income that you reported on your form. There is no maximum penalty fee.
Our W-2/1099 Forms Filer software cannot prevent missed deadlines, but it can make your tax season reporting more timely and organized. Download our free demo software to get started.