1099-NEC Penalties: Late Filing Fines
Penalty Range
$60 to $660 per form
Late 1099-NEC penalties depend on how late you file. File within 30 days: $60. After August 1: $330. Intentional disregard: $660+. These add up quickly with multiple contractors.
Don't let late filing penalties eat into your profits. Learn the penalty schedule, how to avoid fines, and what to do if you've already missed the deadline.
Jan 31
Filing deadline
$60
Within 30 days late
$330
After August 1
$660
Intentional disregard
2026 1099-NEC Penalty Schedule
The penalty amount depends on when you file after the January 31 deadline:
| When You File | Penalty | Per | Annual Maximum |
|---|---|---|---|
| Filed within 30 days of due date | $60 | Per form | $664,500/year |
| Filed more than 30 days late, but by August 1 | $130 | Per form | $1,993,500/year |
| Filed after August 1 or not filed | $330 | Per form | $3,987,000/year |
| Intentional disregard | $660 | Per form (minimum) | No maximum |
Example: If you have 5 contractors and file all 1099s after August 1, you'll owe 5 × $330 = $1,650 in penalties.
Source: IRS penalties per General Instructions for Certain Information Returns and IRC Section 6721/6722. Penalty amounts are adjusted annually for inflation.
Small Business Exception
Businesses with gross receipts of $5 million or less have reduced maximum penalties:
Within 30 days
$232,500
max per year
31 days - Aug 1
$664,500
max per year
After Aug 1
$1,329,000
max per year
These caps only apply if your average annual gross receipts for the 3 most recent tax years are $5 million or less.
How to Avoid 1099-NEC Penalties
File on time (January 31)
The deadline is the same for both recipient copies and IRS submission
Collect W-9s early
Get W-9s before making first payment to avoid TIN issues
Track all contractor payments
Use accounting software to automatically track the $600 threshold
Use e-filing
E-filing provides confirmation and reduces errors
Double-check TINs
Incorrect TINs can trigger additional penalties
Missed the Deadline? Here's What to Do
Step 1: File Immediately
The sooner you file, the lower the penalty. File within 30 days of January 31 and your penalty drops from $330 to just $60 per form. Every day counts.
Step 2: Consider Reasonable Cause
If you have a valid reason for late filing, you may request penalty abatement. Valid reasons include:
- • Death or serious illness of the taxpayer or immediate family
- • Natural disasters (fire, flood, earthquake)
- • Inability to obtain records
- • Incorrect advice from the IRS
- • First-time penalty (for first-time offenders with clean history)
Step 3: Request First-Time Penalty Abatement
If you have a clean compliance history (no penalties in the past 3 years, all required returns filed), you may qualify for first-time penalty abatement. Call the IRS or write a letter requesting relief.
Don't Wait — File Now
Generate IRS-compliant 1099-NEC forms in minutes. Avoid penalties by filing today. Instant PDF download and optional e-filing available.
Deadline: January 31, 2026
Frequently Asked Questions
What is the penalty for late 1099-NEC filing?
The penalty depends on how late you file. Within 30 days of the deadline: $60 per form. More than 30 days late but by August 1: $130 per form. After August 1 or not filed: $330 per form. Intentional disregard: $660 minimum per form with no maximum.
What is the deadline for filing 1099-NEC?
The deadline is January 31st for both providing copies to recipients AND filing with the IRS. For 2026 (tax year 2025), the deadline is January 31, 2026. If January 31 falls on a weekend, the deadline moves to the next business day.
Can I avoid penalties if I have a good reason for filing late?
Yes, the IRS may waive penalties if you can show 'reasonable cause' - circumstances beyond your control that prevented timely filing. This includes natural disasters, death or serious illness, or reliance on incorrect advice from the IRS. You must file Form 8809 requesting an extension or include a reasonable cause explanation with your late filing.
Do penalties apply per form or per business?
Penalties are assessed per form, not per business. If you have 10 late 1099s at $130 each, that's $1,300 in penalties. However, there are annual maximum caps for small businesses with gross receipts of $5 million or less.
What if I never filed a required 1099-NEC?
If you don't file at all, you'll face the maximum penalty of $330 per form (or $660 if intentional). The IRS can assess penalties for up to 3 years. Additionally, you may lose the ability to deduct those contractor payments. It's better to file late than not at all.
Are there additional penalties for incorrect information?
Yes. If you file a 1099-NEC with incorrect information (wrong TIN, wrong amount, wrong name), the same penalty schedule applies. However, you can avoid penalties by filing a corrected form. Penalties for incorrect information may be waived if you can show reasonable cause.
What happens if I don't provide 1099s to contractors?
The same penalties apply for not providing copies to recipients. You must provide Copy B to contractors by January 31st. Failure to do so triggers the same penalty schedule: $60, $130, or $330 per form depending on how late.
Can I request a filing extension for 1099-NEC?
Extensions for 1099-NEC are limited. You can request a 30-day extension using Form 8809, but it must be filed before the original due date. Extensions are only granted for specific circumstances. Note: You cannot extend the January 31 deadline for providing copies to recipients.
Avoid Penalties — File Your 1099s Today
Our 1099-NEC generator creates IRS-compliant forms in minutes. Don't let procrastination cost you hundreds in penalties.
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