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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Is there a penalty if a business does not file their 1099s

Resolved Question:

Is there a penalty if a business does not file their 1099's by the January deadline? If so what is it.
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello phenry,


The penalty per form is $15 if you file within 30 days after the due date. If you are later than that, but before August 1, the penalty is $30 per form. If you file after August 1 or don't file at all, the penalty is $50 per form.



Thank you phenry



Customer: replied 6 years ago.
Let me clarify, if the business does not mail them out to the employees, can the employees do anything against the business?
Expert:  Merlo replied 6 years ago.

Hello phenry,


I assume you mean independent contractors and not employees, as 1099 forms are only issued to independent contractors who worked for you and earned more than $600 for the year.


The contractors cannot do anything to you for not issuing them the forms. It is only the IRS that can enforce penalties, and those penalties would be a maximum of $50 for each form not filed which should have been filed.



Thank you phenry



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