TaxBandits Knowledge Base

Why might you receive IRS Form 1099-R penalties?

There are several reasons why you might receive IRS Form 1099-R penalties. Here are some common reasons:

• Late filing: If you don't file your 1099-R forms with the IRS by the deadline, you may be subject to penalties. The penalty for late filing varies depending on how late the forms are filed and the number of forms you file.
• Inaccurate information: If the information on your 1099-R forms is inaccurate or incomplete, you may be subject to penalties. This includes incorrect names or Social Security numbers, incorrect distribution codes, incorrect TIN, and incorrect amounts.
• Failure to furnish to the recipient: If you don't provide a copy of the 1099-R form to the recipient by the deadline, you may be subject to penalties. The deadline to furnish the form to the recipient is January 31st of the year following the tax year being reported.
• Failure to file electronically: If you're required to file 250 or more 1099-R forms, you must file them electronically with the IRS. If you fail to do so, you may be subject to penalties.

It’s important to note that penalties for 1099-R forms can add up quickly, so you must make sure that you file your forms accurately and on time to avoid penalties.

For more information about 1099-R Penalties, click here.