Penalties for Business that Don’t File 1099-MISC Forms Correctly

If a business doesn’t file 1099-MISC Forms with the correct information, by the due date, and cannot show reasonable cause, it is subject to penalties from the IRS. This applies to electronic and paper filers.

Penalties can be assessed if a business fails to do any of the following:

  • Fail to file by the deadline
  • Fail to include required information
  • Include incorrect information
  • Reporting an incorrect TIN
  • File paper forms that are not machine readable

The penalty amount is based on WHEN YOU FILE A CORRECTED 1099 and ranges from $30 – $100 per return. Small businesses have lower maximum penalties.

 

For full details, read the Official IRS Guidelines for 1099 Penalties > 


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