TaxBandits Knowledge Base

What are the 1099-MISC filing penalties?

The IRS will issue penalties under section 6721 for filing 1099-MISC Forms for the following reasons:

• Not filing by the due date
• Not filing a proper 1099 paper form that's machine-readable
• Using the form for the wrong year
• Not using the right copy of Form 1099-MISC
• Filing with Incorrect or missing TIN
• Filing with incorrect information

 The current penalties for filing a late or incorrect 1099-MISC form are as follows:

1. $60 per form if you file within 30 days of the due date, with a maximum penalty of $232,500 per year.
2. $130 per form if you file more than 31 days after the due date but before August 1, with a maximum penalty of $664,500 per year.
3. $330 per form if you file on or after August 1 or do not file at all, with a maximum penalty of $1,329,000 per year.

In addition to these penalties, there may be penalties for intentionally disregarding the requirement to file Form 1099-MISC, which would be $660 per form.

So, it is important that you e-file the 1099-MISC form on time and that the information is accurate and complete using an IRS-authorized e-file provider like TaxBandits. We file your forms with the Federal and State and distribute form copies to your recipients on time.