What Happens If You File Your 1099s Late?
The short answer to this question is you will pay an IRS penalty. But don’t worry there is hope! If your company needs more time to file 1099s with the IRS, file tax extension Form 8809. If you need further inspiration to file your 1099s here is what happens if you fail to file. What Happens If You File Your 1099s Late?
Penalties will be fully enforced if your business fails to file 1099 series forms by the deadline, fails to include all required information, provide incorrect information, or if you paper file when required to e-file.
The penalty amounts you could face are based on the date your forms are submitted or the corrected information return is provided.
If You Fail to File IRS 1099 Series Forms
If your business fails to file 1099s on or before the deadline, the result will be a $50 penalty per form if submitted within 30 days following the deadline. The maximum penalty is $532,000 per year or $186,000 for small businesses.
For more information on what the IRS considers a small business click here.
If you file more than 30 days after the deadline, but before August 1st, the penalty will be raised to $100 per form with a maximum fine of $1,596,500 or $532,00 for small businesses. FIling 1099s with the IRS after August 1st will increase the penalty to $260 per form, with a maximum fine of $3,193,00 or $1,064,00 for small business.
How Can You Avoid IRS Penalties and Interest?
Now that you understand what is at cost (literally), I am sure you want to avoid having to pay the feds additional fees. Use Information Return Extension Form 8809 to extend the deadline for filing 1099s, ACA, or information forms with the IRS.
Where Can I File IRS 2017 Extension Form 8809?
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E-file in a matter of minutes, and once completed you will be notified about the status of the IRS approval. Avoid hefty IRS penalties by filing your IRS 2017 extension Form 8809 today!
