What is the penalty for not filing a tax form 1099?
Businesses often forget to file a 1099 because it is not meant for employees but those who do contract work. While the penalty for not filing a single 1099 seems nominal, it can add up to thousands for businesses with many contract workers.TypesThere are two major penalties for not filing the 1099: One for a late filing and one for purposely not filing the form, according to the Internal Revenue Service.Late Filing PenaltyA $15 penalty per 1099 is assessed for businesses that do not furnish a 1099 by March 31 of the tax year, with a total maximum penalty of $75,000. This goes up to $30 with a $150,000 maximum after March 31 and $50 with a $250,000 maximum after August.Intentional DisregardIf the IRS can prove outright neglect of a business to send out 1099s, then the penalty raises to $100 per form with no ceiling.ConsiderationsFiling an incorrect 1099 or omitting key information also earns a $50 penalty. The IRS does not apply this penalty for filing late or improperly if one can show
