Reasons you may receive W2/1099 penalties
5.5k views | Last modified 5/27/2020 11:03:40 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

You may receive penalties from the IRS for failing to file with correct information on time and you cannot show any reasonable cause for failure to file. The penalties are higher if your failure is willful or if it can be proved that you intentionally disregarded the law. 

Here is the list of reasons why you may receive penalties:

  • Failing to pay on time
  • Failing to provide necessary information
    • Failing to report TIN
    • Failing to include all the necessary information needed
  • Filing with incorrect information
    • Reporting an incorrect TIN
    • Filing with incorrect information
  • Incorrect filing method
    • Filing on paper when needed to e-file
    • Filing with paper that is not machine-readable
  • Failing to furnish correct payee copies
  • For Fraudulent filing of Form W2/1099

You can also incur a separate penalty if you fail to provide the copies of the form to payees on time. The amount is based on when you furnish the correct statement. The penalties apply for both paper and e-filing and the charges are the same.

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