Information returns must be filed by the deadline to both the recipient and the IRS. If you’re running a business, there is a high chance that you are going to file a few. Some of the examples of information returns include Forms 1099, 1098, and 1097. Each information return has its own deadlines but generally, you must file them by the following deadlines before its due.
January 31st is the recipient deadline.
February 28th is the deadline to file to IRS as well as other federal, state, and local government agencies for paper filing.
March 31st is the deadline to file information returns to government agencies through e-filing.
Information Return Late Filing Penalties
If you don’t file the necessary tax forms by the above deadlines, you are going to pay a penalty between $50 to $560 per violation.
For information returns filed within 30 days of the deadline, the penalty is $50. If information returns filed between March 2 and August 1, 2024, the penalty is $110. For information returns filed after August 1, 2021, the penalty is $270.
If an individual willfully ignores to file information returns, the penalty increases to $560. These penalties are the same as Form W2—Wage and Tax Statement.
How to file information returns?
Same as any other tax form, information returns can be filed electronically or on paper. We suggest e-filing as it’s going to take less of your time and you will be able to handle much of your tax obligations faster.
E-filing comes with a few other benefits too. The deadline to file information returns to the IRS is always 30 days late for e-filing. Given you will file information returns faster through e-filing, you won’t even need the extra days.
Information Return Not Received by the Recipient
You have a few options to consider if you haven’t received your information return. Generally, you need to report the income earned if you haven’t gotten yours. For example, you can file Form 4852 to report the income that will be reported on your 1099-R.
That said, file the substitute form for the information return you’re expecting. If there isn’t one, you can report the income that will be reported on the information return.