Failure to File Information Return Form W-2 & 1099 – Paul Gaulkin CPA

w2_returnIf you are a business owner and you do not timely file an information return with the IRS for W-2 or 1099 income, they can assess you a failure to file penalty. They can also asses a business owner a separate penalty for failure to furnish a copy of the information return to the payee.

Failure to File Information Return

Unless due to reasonable cause and not willful neglect, the following will result in a penalty:

1. The failure to file an information return by the required filing date is referred to as a failure to timely file. This includes filing electronically as well.

2. The failure to include all information required to be shown on an information return, or the inclusion of incorrect information which is referred to as a failure to include correct information. This can include the failure to include the information required by the Code, regulations, rulings, or IRS forms and instructions.


Amount of the Penalty

If the failure is corrected on or before the 30th day after the required filing date, the penalty is $30 per return, up to a maximum of $250,000 for all such failures during the calendar year that are corrected within this time period.

If the failure is corrected after the 30 day period, but on or before August 1st of the calendar year in which the required filing date occurs, the penalty is $60 per return, up to a maximum of $500,000 for all such failures during the calendar year that are corrected within this period.

If the failure is not corrected or is corrected after August 1st of the calendar year in which the required filing date occurs, the penalty is $100 per return, up to a maximum of $1.5 million for all such failures during the calendar year.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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