Penalties For Late Filing Of 1099 & W-2

It is important to file your 1099 & W-2 on time to avoid incurring penalties.  According to the General Instructions for Certain Information Returns the penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.

The amount of the penalty is based on when you file the correct information return. The penalty is:

• $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 $500,00 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).

You can avoid these penalties by E-Filing your 1099 & W-2 using ExpressTaxFilings to file by the April 1, 2013 deadline.  If you choose to paper file, the deadline is February 28, 2013 and you are required to file Form 1096, Annual Summary and Transmittal of U.S. Information Returns.

ExpressTaxFilings is here to make taxes less taxing. If you have any questions about 1099 E-Filing, contact the Express Tax Support Center in Rock Hill, SC at 803-514-5155 between the hours of 8am – 6pm EST, Monday through Friday or email support@ExpressTaxFilings.com.