Get Answers Support Tax Filings & Payments W2 General Why might you receive IRS 1099/W-2 penalties? Last modified 5/25/2020 10:43:43 AM EST You may incur penalties from the IRS for failing to file on time with correct information and for being unable to demonstrate reasonable cause for the failure. Penalties are more severe if your failure is willful or if it is proven that you intentionally disregarded the law. Reasons You May Receive W-2/1099 Penalties: Failing to pay on time Failing to provide necessary information Failing to report a Taxpayer Identification Number (TIN) Omitting required information Filing with incorrect information Reporting an incorrect TIN Using an incorrect filing method Filing on paper when required to e-file Submitting paper forms that are not machine-readable Failing to furnish correct payee copies Fraudulent filing of Form W-2/1099 Additionally, a separate penalty applies if you fail to provide payee copies of the forms on time. The penalty amount is determined by how late you furnish the correct statement. These penalties apply to both paper and e-filing, with the charges being the same for either method. Was this helpful? Yes No Need more help? Get in touch with our dedicated support team Contact Us (704) 684-4751 support@taxbandits.com Sign Up for a FREE TaxBandits Account! The Smart CPA Choice Register Now Already have an account? Sign in