Direct Answer
For information returns due in 2027 (tax year 2026), the IRS penalty is $60 per return if you file correctly within 30 days of the due date, $130 per return if you file by August 1, and $340 per return after that or if you never file. Intentional disregard starts at $690 per return with no maximum. A separate penalty of the same size can apply for each recipient statement you furnish late or incorrectly.
Key Takeaways
- Penalties for 2026 returns due in 2027 are $60, $130, or $340 per return, depending on how late the correct return is filed.
- Late or incorrect recipient copies carry their own penalty on top of the filing penalty.
- 1099-NEC and W-2 filings are due February 1, 2027, and neither gets an automatic extension.
- Wrong TINs and wrong money amounts count as incorrect returns, not just late ones.
- Correcting quickly can reduce the penalty, and timely filed returns corrected by August 1 may qualify for the de minimis exception.
How the IRS Calculates Information Return Penalties
The penalty is charged per return, not per filing. If you file 200 Forms 1099-NEC late, you can face 200 penalties. The amount depends on when the correct return reaches the IRS.
For returns required to be filed in 2027, IRS Revenue Procedure 2025-32 sets these amounts:
| When the correct return is filed | Penalty per return | Annual maximum (gross receipts of $5 million or less) | Annual maximum (gross receipts over $5 million) |
|---|---|---|---|
| Within 30 days of the due date | $60 | $244,500 | $698,500 |
| 31 days late through August 1 | $130 | $698,500 | $2,095,500 |
| After August 1, or not filed | $340 | $1,397,000 | $4,191,500 |
| Intentional disregard | $690 minimum per return | No limit | No limit |
The IRS treats you as a small business for these lower maximums if your average annual gross receipts for the three most recent tax years were $5 million or less.
Two Penalties, Not One
Filing with the IRS and furnishing the recipient copy are separate obligations under the tax code. Section 6721 covers returns filed with the IRS. Section 6722 covers statements you give your contractors, vendors, and employees. Miss both, and the penalties stack.
That is why the recipient copy deadline matters as much as the IRS deadline.
The Tax Year 2026 Deadlines That Trigger Penalties
When a due date falls on a weekend or legal holiday, it moves to the next business day. That rule shifts several dates in 2027:
- 1099-NEC: file with the IRS and furnish to recipients by February 1, 2027 (January 31 is a Sunday).
- W-2 and W-3: file with the SSA and furnish to employees by February 1, 2027.
- 1099-MISC, 1099-INT, 1099-DIV, 1099-K: recipient copies generally by February 1, 2027. File with the IRS by March 1, 2027 on paper or March 31, 2027 electronically.
- 1099-MISC with amounts in box 8 or 10: recipient copies by February 16, 2027, because February 15 is Presidents’ Day.
What Counts as an “Incorrect” Return
Late filing is only one trigger. The IRS also applies the filing penalty when you:
- Leave out required information or report incorrect information.
- Report an incorrect TIN or fail to report a TIN.
- File on paper when you were required to e-file.
The e-file rule catches more businesses than people expect. If you file 10 or more information returns in a calendar year, counting all form types together, including W-2s, you must file electronically. Ten paper forms filed when e-filing was required can each be treated as a failure.
Five Ways to Avoid a Penalty This Season
1. Verify names and TINs before you file. Errors in a TIN, a payee’s surname, or a dollar amount are never treated as inconsequential. Running TIN matching in November or December gives you time to fix mismatches before January.
2. Know which forms have no automatic extension. Form 8809 gives an automatic 30-day extension for most information returns. For Forms W-2 and 1099-NEC, there is no automatic extension, so plan on February 1.
3. Correct fast. The difference between $60 and $340 per return is timing. If you discover a problem, file the correction right away.
4. Use the de minimis rule wisely. If you filed on time and correct the errors by August 1, the IRS will not apply the incorrect-return penalty to the greater of 10 returns or one-half of 1 percent of the returns you were required to file.
5. Do not rely on FIRE. After January 1, 2027, IRIS is the only IRS system for electronic information returns, including corrections and prior years. If your process still depends on FIRE, it needs to change before filing season.
Let 1099 Express Take the Deadline Pressure Off
1099 Express e-files directly to the IRS IRIS system and the SSA using our own Transmitter Control Code, so you do not need one. Submit by 4:30 PM CST for same-day processing. Our Service Bureau can also print and mail your recipient copies, and e-filing is included at no extra charge when you order Print & Mail at the same time.
Start filing at 1099express.com, check your cost on our pricing calculator, or contact our team at support@1099express.com or (361) 884-1500.
People Also Asked
Q: What is the penalty for filing a 1099 late in 2027?
For tax year 2026 returns, the penalty is $60 per return if filed within 30 days, $130 if filed by August 1, and $340 after that or if never filed.
Q: Is there a penalty for sending a 1099 to the recipient late?
Yes. Late or incorrect recipient statements carry a separate penalty under section 6722, figured the same way as the filing penalty.
Q: Can the IRS waive a 1099 penalty?
The IRS may remove or reduce a penalty if you show reasonable cause and that you acted responsibly before and after the failure.