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Form 1099 Late Filing Penalty 2025

The IRS has the power to impose a penalty of Form 1099 Late Filing Penalty 2025 when you file the incorrect information return or furnish the correct payee statement. 1099 penalty applies for both paper and e-filing tax returns. The penalties for not filing a correct 1099 Form and for not providing the correct payee statement are different. Therefore, two separate penalties will impose for 1099 late filing and wrong payee statements.

Increase in Information Return Penalties – 1099 Penalty Reasons

Failure to File 1099 On-Time for the below cause will let you face IRS 1099 Penalties 2025. The main reasons to subject penalties by the IRS are

  1. Failure to File 1099 on time or before 1099 Deadline without any reasonable cause.
  2. 1099 Filing through the paper when there is a need for Electronic Filing.
  3. Failure to Furnish Correct Payee Statements
  4. Intentionally gave incomplete, incorrect, or misleading information. (or) Fraudulent Filing of Information Returns
  5. Destroyed the required information
  6. Fail to report the correct TIN or Forget to include a TIN
  7. Transferring 1099 paper forms that are machine-unreadable.

Large Businesses Penalty Rates

Gross Receipts of More Than $5 Million for Large Businesses

Time returns filed/furnished

Not more than 30 days late

31 days late – August 1

After August 1 or Not at All

Intentional Disregard

Due 01-01-2020
thru 12-31-2020
 

$50 per statement or return-     

maximum – $556,500*

$110* per statement or return –

Maximum – $1,669,500*

$270* per statement or return –

Maximum – $3,339,000*

$550 per statement or return-

No limitation

Due 01-01-2019
thru 12-31-2024
 

$50 per statement or return-

 

maximum -$545,500*

$100 per statement or return –

 

maximum  – $1,637,500*

$270* per statement or return-

maximum – $3,275,500*

$540* per statement or return-

No limitation

Small Businesses Penalty Rates

Gross Receipts of $5 Million or Less for Small Businesses

Time returns filed/furnished

Not more than 30 days late

31 days late – August 1

After August 1 or Not at All

Intentional Disregard

Due 01-01-2020
thru 12-31-2020

$50 per statement or return –

maximum – $194,500*

$110 *per statement or return-

maximum -$556,500*

$270* per statement or return –

maximum -$1,113,000*

$550* per statement or return-

No limitation

Due 01-01-2019
thru 12-31-2024

$50 per statement or return-

maximum – $191,000*

$100 per statement or return-

maximum  -$545,500*

$270* per statement or return-

maximum – $1,091,500*

$540* per statement or return-

No limitation

Exceptions to the IRS 1099 Late Filing Penalty

The penalty will not apply; if

  1. You show a reasonable cause before the 1099 Deadline.
  2. You provide the correct information as shown on the payee’s tax return.
  3. Filed corrections before the deadline.

File 1099 Form Online