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1099 Penalty Calculator
Estimate potential IRS penalties for late or incorrect 1099 forms. This calculator estimates penalties for both:
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IRS filing penalties (IRC 6721) and
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Recipient statement penalties (IRC 6722)
Free tool. CPA-led team. Estimates only (see disclaimers below).
“How it works”
How this calculator estimates 1099 penalties
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Choose the year the 1099 was due
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Select how late the filing/correction was
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Enter the number of 1099 forms
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Select whether you’re a small business (≤ $5M average gross receipts)
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Choose whether you want to estimate penalties for IRS filing, recipient statements, or both
This tool then applies the IRS penalty table for the selected year and the applicable annual maximum cap.
Disclaimer (read before using):
This calculator provides estimates only and does not constitute tax, legal, or accounting advice. IRS penalties can vary based on facts and circumstances, including (but not limited to) whether you can show reasonable cause, whether corrections were filed properly and timely, and other IRS rules and exceptions. This tool estimates penalties using publicly available IRS penalty tables for information returns and applies annual maximum caps where applicable. Actual IRS assessments may differ.
Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.
Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.
Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.
Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.
Helvetica Light is an easy-to-read font, with tall and narrow letters, that works well on almost every site.
What your results mean
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If you selected both boxes (IRS filing + recipient statements), your estimate may be higher because penalties can apply separately.
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If you selected small business, the calculator applies the smaller annual maximum cap (when applicable).
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If you selected intentional disregard, annual maximum caps generally do not apply.
Want us to fix your 1099s?
If you’re late or need corrections, we can handle the entire process—review, clean-up, and filing—so you minimize risk and move on.
Typical turnaround depends on volume and complexity. We’ll confirm requirements before starting.
Late 1099 penalties: what triggers them
If you file 1099 forms late, file them with incorrect information, or fail to provide recipient copies on time, the IRS may assess penalties. In general, two separate penalty categories can apply:
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Failure to file correct information returns with the IRS (IRC 6721)
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Failure to furnish correct payee statements to recipients (IRC 6722)
That’s why your estimate may show two separate subtotals. Some businesses only have one issue (for example, they filed with the IRS but didn’t furnish recipients), while others may have both.
Penalty timing buckets
(why “how late” matters)
The IRS penalty amount usually depends on how quickly you correct the issue. Your result is based on the “lateness bucket” you select:
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Up to 30 days late: lowest per-form penalty
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31 days late through Aug 1: mid-tier per-form penalty
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After Aug 1 (or not filed): highest standard per-form penalty
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Intentional disregard: highest per-form penalty and generally no annual maximum
If you’re unsure which bucket applies, use the bucket that best matches when the 1099 was corrected/accepted.
Small business caps
(why your total may stop increasing)
For many years, the IRS sets an annual maximum penalty cap. Small businesses—generally defined as average annual gross receipts of $5 million or less—may qualify for a lower cap. If your penalty estimate hits the cap, your total may stop increasing even if you raise the number of forms.
How to reduce risk if you’re late
If you’re behind on 1099s, the highest ROI move is usually to:
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Correct and file as soon as possible
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Ensure payee information is accurate (W-9 collection matters)
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Create a repeatable process for next year (vendor onboarding + bookkeeping hygiene)
If you want help, we can take over the workflow and file correctly.
1099 Penalty Calculator FAQs
Need 1099s filed or corrected?
Send us your vendor list and payment details. We’ll confirm requirements, handle corrections, and file properly.
Updated for tax year: [2026]