Explanation of Penalty for 1099 Late Filing
- $50 for each return filed within 30 days of the due date,
Maximum penalty: $545,500 per year
$191,000 maximum for small businesses
- $100 for each return filed within 30 days after the due date but before August 1.
Maximum penalty: $1,637,500 per year
$545,500 maximum for small businesses
- $270 for each return after August 1,
Maximum penalty: $3,275,500 per year
$1,091,500 maximum for small businesses
- $ 550 for each return or statement
No maximum limitation for International disregard
Lower Penalty for Small Businesses
The lower maximum penalties stated above for small businesses apply to a business had average gross receipt of $5 million or less for the three recent tax years (or in business, if shorter) ending before the calendar year the information returns were due. For example, if you were charged a penalty for 2017 information returns due in 2018, the three most recent tax years are 2015, 2016 and 2017.