To avoid penalties, it is important to file your Forms 1099 and W-2 on time. The e-file deadline is March 31, 2014. According to General Instructions for Certain Information Returns 2014
, you will be penalized is you fail to:
- File on time
- Include all information required to be shown on a return
- Provide correct information
- File on paper if you were required to file electronically
- Report an incorrect TIN or fail to report a TIN
- File paper forms that are machine readable.
The IRS calculates the penalty based on when you file the correct information return. The penalties are as follows:
$30 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $250,000 per year ($75,000 for small businesses)
$60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses).
$100 per information return if you file after August 1 or you do not file required information returns: maximum penalty $1,500,000 per year ($500,000 for small businesses).
These penalties can easily be avoided by E-Filing your 1099 & W-2 with ExpressTaxFilings by the March 31st deadline. If you have any questions about filing your 1099 and W-2 forms, contact our Express Tax Support Center at 704.839.2270 or by email at support@ExpressTaxFilings.com