Penalties
The following penalties generally apply to the person required to file information returns. The penalties apply to paper filers as well as to electronic filers. For information on the penalty for failure to file electronically, see Penalty, earlier, in part F.
Failure To File Correct Information Returns by the Due Date (Section 6721)
If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies:
• If you fail to file timely,
• If you fail to include all information required to be shown
on a return, or
• If you include incorrect information on a return.
The penalty also applies:
• If you file on paper when you were required to file electronically,
• If you report an incorrect TIN,
• If you fail to report a TIN, or
• If you fail to file paper forms that are machine readable and applicable revenue procedures provide for a
machine-readable paper form.
The amount of the penalty is based on when you file the correct information return. The penalty is as follows.
• $60 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $630,500 per year ($220,500 for small businesses, defined below).
• $120 per information return if you correctly file more than 30 days after the due date but by August 1;
maximum penalty $1,891,500 per year ($630,500 for small businesses).
• $310 per information return if you file after August 1 or you do not file required information returns; maximum penalty $3,783,000 per year ($1,261,000 for small businesses).
CAUTION: If you do not file corrections and you do not meet any of the exceptions to the penalty described later, the penalty is $310 per information return.
https://www.irs.gov/pub/irs-pdf/i1099gi.pdf Page 19 -20
Information Return Penalties