Form 1099 Late Filing Penalties
for 2024
Form 1099 - Penalty Rates
Updated on January 29, 2025 - 10:30 AM by Admin, TaxBandits
A penalty will be charged if you fail to issue Form 1099 to the payee. The penalty amount depends on when you file the correct information return or furnish the correct payee statement. If you fail to file a correct Form 1099 with the IRS or fail to provide a correct Form 1099 statement to the payee, you may be subject to penalties.
Table of Contents:
What Happens If You Don’t File 1099 Forms?
If you fail to file 1099 forms by the deadline and cannot show reasonable cause, you may be subject to penalties. Penalties may apply if you:
- Fail to file by the deadline
- Fail to include all the required information to complete your 1099 Forms
- File with incorrect information
- File paper forms when you are required to e-file
- Report an incorrect or missing TIN
- File paper 1099 forms that are not machine-readable
Penalties for Filing 1099 Forms Late
If you fail to file Form 1099-NEC by the deadline (January 31), you may face IRS penalties. The penalties range from $60 to $660 per form, depending on the business size and when you file the return. If you fail to file a correct Form 1099 with the IRS and do not provide a correct Form 1099 statement to the payee, you may be subject to two separate penalties.
Penalties for Small Businesses
| Timeframe | Penalty per Form | Maximum Penalty per Year |
|---|---|---|
| Filed within 30 days after the due date | $60 | $239,000 |
| Filed after 30 days but by August 1 | $130 | $683,000 |
| Filed after August 1 or not filed at all | $330 | $1,366,000 |
Avoid Late Filing Penalties
IRS penalties for late or incorrect 1099 filings can add up quickly. Avoid these costly mistakes by e-filing with TaxBandits! Our built-in error checks, TIN matching, and bulk filing features ensure your forms are accurate and submitted on time. E-file with TaxBandits Today
Penalties for Large Businesses
| Timeframe | Penalty per Form | Maximum Penalty per Year |
|---|---|---|
| Filed within 30 days after the due date | $60 | $683,000 |
| Filed after 30 days but by August 1 | $130 | $2,049,000 |
| Filed after August 1 or not filed at all | $330 | $4,098,500 |
If a form is intentionally disregarded or a correct payee statement is not furnished, the penalty is $660 per form with no maximum limit.
When is the deadline to file Form 1099?
The deadline to file Form 1099 varies depending on the specific type of form and the information being reported. Generally, most Form 1099s should be provided to recipients by January 31, and a copy should be filed with the IRS by February 28 if filed on paper, or March 31 if filed electronically.
Exceptions to the General Deadlines:
- Form 1099-NEC: This form must be distributed to both recipients and the IRS by January 31, regardless of the filing method.
- Form 1099-MISC: (if amounts are reported in boxes 8 or 10): The due date for furnishing statements to recipients is February 15.
Learn more in detail about the 1099 filing deadline for 2025.
Avoid IRS Penalties – E-file Form 1099 with TaxBandits!
Filing Form 1099 accurately and on time is crucial to avoid costly IRS penalties. TaxBandits makes the process seamless with secure, efficient, and error-free e-filing.
Why Choose TaxBandits?
- Simple & Secure E-filing – File your 1099 forms in just a few clicks.
- Built-in Error Checks – Reduce rejections with our TIN matching & audit tools.
- Bulk Filing Options – Save time by uploading multiple forms at once.
- IRS-Authorized E-file Provider – Trusted by businesses and tax professionals.
- Recipient Copy Delivery – Send copies via postal mail or secure online access.
- Expert Support – Get AI-powered assistance and expert live support from our dedicated tax filing experts.
Avoid penalties and e-file your Form 1099 today with TaxBandits!
