Discover how to reduce or remove IRS late 1099 filing penalties. Get QuickBooks guidance today at +1-866-513-4656.
As tax deadlines approach, many small business owners feel the pressure of meeting 1099 reporting requirements. Missing the IRS 1099 deadline or filing inaccurate information can lead to steep penalties—often hundreds or thousands of dollars, depending on how late the submission is. Whether you’re facing an IRS late 1099 filing penalty for 2024, 2025, or 2026, understanding your options to reduce or remove it can save your business significant stress and expense.
Avoid IRS late 1099 filing penalty. Learn how to reduce or remove 1099 filing penalties. Call +1-866-513-4656 for 1099 help now.
If you’ve received a notice or are unsure whether you filed correctly, expert help is available at +1-866-513-4656 to guide you through penalty resolution and compliance in QuickBooks Desktop or QuickBooks Online.
What Causes 1099 Filing Penalties from the IRS?
Several common filing mistakes lead to penalties under IRS rules. Understanding these issues can help you identify what went wrong before you take corrective action.
1. Late Filing of Form 1099-NEC
If you file Form 1099-NEC after the January 31 deadline, the IRS imposes a late filing penalty per form. The amount depends on how late you are:
- Up to 30 days late: $60 per form
- 31 days–August 1: $120 per form
- After August 1 or not filed at all: $310 per form
These amounts can change annually, so always verify for 2025 and 2026 filing seasons.
2. Incorrect or Incomplete Information
Missing taxpayer identification numbers (TINs), wrong payment totals, or mismatched names trigger the same late 1099 filing penalty IRS uses for inaccurate submissions. Even if you filed on time, errors can still cause fines.
3. Paper Filing Instead of Electronic (for 10+ Forms)
Starting in 2024, if you have 10 or more information returns, you must file electronically. Submitting paper forms when electronic filing is required may result in a penalty for not filing 1099 electronically.
4. No Recipient Copy Sent
Failing to provide 1099 forms to vendors or contractors by the January 31 deadline can incur separate penalties, even if you filed with the IRS.
How to Reduce or Remove 1099 Filing Penalties
If you’ve received a notice, it’s not too late to act. The IRS allows certain relief and abatement options depending on the reason for delay or error.
Step 1: Review the IRS Notice
Open your IRS penalty notice and identify the reason for the penalty—late submission, incorrect info, or missing forms. Confirm the deadlines and amounts listed.
Step 2: Correct the Filing in QuickBooks
For QuickBooks Online:
- Go to Expenses > Vendors.
- Select the vendor with the incorrect or missing 1099.
- Click Prepare 1099s.
- Review amounts and TIN details carefully.
- Select E-File for Me to submit corrections directly.
For QuickBooks Desktop:
- Open Vendors > Print/E-file 1099s.
- Select 1099 Wizard and review payees.
- Update any inaccurate information.
- Use the E-File option to resubmit corrected forms.
Step 3: Request Penalty Abatement
If late filing was due to reasonable cause (system error, illness, natural disaster, or lack of IRS clarification), you can request a penalty abatement letter. Include:
- A formal explanation of circumstances.
- Supporting documents (emails, error logs, or correspondence).
- A copy of your corrected 1099 filings.
Call +1-866-513-4656 if you need help drafting your reasonable cause letter or resubmitting corrected forms in QuickBooks.
Step 4: Use the First-Time Abatement (FTA) Program
Businesses with a clean compliance record for the past three years may qualify for the First-Time Abatement. The IRS may waive all penalties once you remedy the issue.
Prevention Tips
To avoid 1099 NEC late filing penalties in future years:
- Set IRS reminders: Mark January 31 as your firm filing deadline each year.
- Use QuickBooks e-filing: Reduces errors and ensures timeliness.
- Verify vendor data early: Confirm name, address, and TIN by December each year.
- Keep W-9 forms updated: Always collect before issuing payments.
- Automate reporting: Use QuickBooks’ built-in 1099 tracking and error-checking tools.
1099 Filing Deadlines for 2026
The 1099 filing deadline for 2026 remains January 31, 2026, for both electronic and paper submissions. If you use QuickBooks to track payments, ensure all non-employee compensation is categorized correctly under “Contractor” or “Nonemployee” types to populate Form 1099-NEC automatically.
Frequently Asked Questions
1. Is there a penalty for filing 1099 late?
Yes. Depending on how many days late you file, penalties range from $60 to $310 per form.
2. What is the 1099 NEC late filing penalty for 2025?
IRS penalty amounts are indexed annually, but the typical range is $60–$310 per form, with maximum limits based on business size.
3. Can I get penalties waived?
Yes, if you have reasonable cause or qualify for the IRS First-Time Abatement.
4. What happens if I submit paper 1099s instead of e-filing?
If you file 10 or more 1099s on paper, you could face additional penalties for not filing electronically.
5. How do I fix incorrect 1099s in QuickBooks?
Use the Prepare 1099s tool in QuickBooks Online or the 1099 Wizard in QuickBooks Desktop to correct and e-file updates.
6. How do I calculate my 1099 late filing penalty?
The IRS provides a late 1099 filing penalty calculator on its site, or you can estimate based on number of forms and filing delay.
Final Thoughts
Handling an IRS late 1099 filing penalty can feel overwhelming, especially during tax season. The good news? QuickBooks simplifies both filing and correction processes so you can stay compliant without stress. If you need help filing corrected 1099s, drafting an abatement request, or understanding penalties for the 2024–2026 tax years, call +1-866-513-4656 for immediate expert guidance.
