Prepare e-file IRS 1099 NEC, MISC, INT, DIV, R , A & K for 2025eFile 1099 NEC for 2025
Form 1099 Late Filing Penalty 2025
The IRS has the power to impose a penalty of Form 1099 Late Filing Penalty 2025 when you file the incorrect information return or furnish the correct payee statement. 1099 penalty applies for both paper and e-filing tax returns. The penalties for not filing a correct 1099 Form and for not providing the correct payee statement are different. Therefore, two separate penalties will impose for 1099 late filing and wrong payee statements.
IRS Penalty Timeline 2025 Update
The IRS penalty structure follows a tiered deadline system (within 30 days, by August 1, and after August 1) for all information returns, including Form 1099. Even though the 1099 filing due date—especially for Form 1099-NEC—is January 31, these “August 1” references are not extra filing dates. Instead, they represent the penalty measurement brackets used to determine how late a filing is compared to its original due date.
Penalties apply separately for each information return and each payee statement filed late, not filed, or filed incorrectly.
| Year Due | Up to 30 Days Late | 31 Days Late through August 1 | After August 1 or Not Filed | Intentional Disregard |
|---|---|---|---|---|
| 2026 | $60 | $130 | $340 | $680 |
| 2025 | $60 | $130 | $330 | $660 |
| 2024 | $60 | $120 | $310 | $630 |
| 2023 | $50 | $110 | $290 | $580 |
| 2022 | $50 | $110 | $280 | $570 |
| 2021 | $50 | $110 | $280 | $560 |
| 2020 | $50 | $110 | $270 | $550 |
Increase in Information Return Penalties – 1099 Penalty Reasons
Failure to File 1099 On-Time for the below cause will let you face IRS 1099 Penalties 2025. The main reasons to subject penalties by the IRS are
- Failure to File 1099 on time or before 1099 Deadline without any reasonable cause.
- 1099 Filing through the paper when there is a need for Electronic Filing.
- Failure to Furnish Correct Payee Statements
- Intentionally gave incomplete, incorrect, or misleading information. (or) Fraudulent Filing of Information Returns
- Destroyed the required information
- Fail to report the correct TIN or Forget to include a TIN
- Transferring 1099 paper forms that are machine-unreadable.
Large Businesses Penalty Rates
|
Gross Receipts of More Than $5 Million for Large Businesses |
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| Time returns filed/furnished | Not more than 30 days late | 31 days late – August 1 | After August 1 or Not at All | Intentional Disregard |
| Due 01-01-2020 thru 12-31-2020 | $50 per statement or return maximum – $556,500* |
$110 per statement or return Maximum – $1,669,500* |
$270 per statement or return Maximum – $3,339,000* |
$550 per statement or return No limitation |
| Due 01-01-2019 thru 12-31-2024 | $50 per statement or return maximum – $545,500* |
$100 per statement or return maximum – $1,637,500* |
$270 per statement or return maximum – $3,275,500* |
$540 per statement or return No limitation |
Small Businesses Penalty Rates
|
Gross Receipts of $5 Million or Less for Small Businesses |
||||
| Time returns filed/furnished | Not more than 30 days late | 31 days late – August 1 | After August 1 or Not at All | Intentional Disregard |
| Due 01-01-2020 thru 12-31-2020 | $50 per statement or return maximum – $194,500* |
$110 per statement or return maximum – $556,500* |
$270 per statement or return maximum – $1,113,000* |
$550 per statement or return No limitation |
| Due 01-01-2019 thru 12-31-2024 | $50 per statement or return maximum – $191,000* |
$100 per statement or return maximum – $545,500* |
$270 per statement or return maximum – $1,091,500* |
$540 per statement or return No limitation |
Exceptions to the IRS 1099 Late Filing Penalty
The penalty will not apply; if
- You show a reasonable cause before the 1099 Deadline.
- You provide the correct information as shown on the payee’s tax return.
- Filed corrections before the deadline.