Failure to properly file with the IRS can result in penalties. Here are the potential penalties associated with form filing for 2023:
Late Filing or Not Filing
- If you file within 30 days of the due date, the penalty is $50 per form.
- If you file more than 30 days late but before August 1, the penalty is $110 per form.
- If you file after August 1 or not at all, the penalty is $290 per form.
- If the IRS determines that you intentionally disregarded the requirement to provide accurate information, the penalty per form is at least $580 with no maximum limit.
Not Providing Copies to Recipients
- If you don’t provide a copy of the form to the recipient by the due date, the same penalties apply as the ones for late filing or not filing with the IRS.
- If there are errors on the form, you may be penalized unless you can prove that the error was due to reasonable cause and not willful neglect.
Failure to File Electronically
- If you are required to file electronically but fail to do so, and you do not have an approved waiver, you may be subject to a penalty.
Failure to Report TIN (Taxpayer Identification Number) or Reporting an Incorrect TIN
- There’s a penalty for failure to include the correct TIN on the form. This can occur if you did not make an effort to secure the TIN from the person you paid, or if you did not include it on the form, or if you included an incorrect TIN.
It’s worth noting that the IRS considers each failure a separate penalty. For example, if you file a form late and it has incorrect information, you could face two penalties for the same form.
To avoid these penalties:
- Be sure to file on time.
- Double-check your forms for accuracy.
- Provide copies to recipients by the due date.
- Secure TINs from payees as needed.