This has never been easy to explain.... here is the latest....
The penalties were increased two years ago to the following amounts:
- $30 per form, or per statement, if it was corrected within 30 days (maximum $250,000 per year),
- $60 per form, or per statement, if corrected more than 30 days after the filing due date by August 1 of the same year (maximum $500,000 per year),
- $100 per form, or per statement, if corrected later than August 1 of the same year or if not corrected (maximum $1,500,000 per year),
- Where intentional disregard of the requirements is found: $250 per return, or per statement, or 10% of the total amount that should have been reported (5% if amounts should have been reported of Form 1099-B), whichever is greater with no maximum cap,
- Payers with annual gross receipts of $5 million or less may qualify as “small business” payers for which the penalties may be reduced by 30% to 44% for various types of failures.
Just file on time and you won't have to worry about these.....
or we can help.