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
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.