1098, 1099, W-2G Penalties for Filing Late

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. 

W-2 Penalties for Filing Late 

https://www.irs.gov/pub/irs-pdf/i1099gi.pdf  Page 18

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