Failure to file Form 1099 before the deadline or providing incorrect information can lead to IRS penalties. Penalties vary from $50 to $ 290 depending on when Form 1099 is filed with the IRS.
TaxBandits for Every Business
Due to inflation, the IRS has increased the penalty rate for Form 1099. This penalty increase will be applied to returns due after December 31, 2022. Here are the possible IRS penalties:
$50 per form- if Form 1099 is not filed within 30 days of the due date.
$110 per form - if Form 1099 is filed 30 days after the deadline but filed before August 1.
$290 per form- if Form 1099 is filed after August 1.
The IRS may also impose a penalty for the following reasons:
Reporting incorrect information
Not sending a copy to the recipient
Filing by paper when required to file electronically