Showing posts from May, 2014

1099 Penalties?!

Deadlines There are two deadlines to consider here. The first is the vendor form delivery deadline, 2/2/2015. Forms should be postmarked or e-mailed to vendors by this date. Second, forms must be filed with federal and state agencies. While paper files are due by 2/28/2015, e-files are due by 3/31/2015.

So, what are the penalties for late vendor form delivery, and/or late filing with the IRS? The IRS covers penalties in General Instructions for Certain Information Returns. The IRS penalizes late vendor form delivery and late filings separately. For example, if a vendor form was not postmarked/e-mailed until 2 days after the deadline, the IRS could issue a $30 penalty. If the IRS filing was submitted 15 days after the deadline, the IRS could issue another $30 penalty. The maximum values for these penalties stack on top of each other. 

On the topic of maximum penalties: the cap depends on the size of your business. If the business has over $5 million in annual gross receipts, the IRS clas…