Contact UsWe are a one truck trucking company and I am having sleepless nights over a stupid act of ignorance! Since 2004 I have been doing my own taxes with Turbo Tax but I didn't realize until this year that we were supposed to be sending our truck mechanic a 1099, I did send one this year! He is not incorporated (although he did an LLC this year). I am in panic that the IRS will be knocking at our door and demanding money. Am I in deep doo doo?
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Tax Professional Answers
John Stancil
Probably not too bad. The penalty against the company varies from $30 to $100 per form ($500,000 maximum per year), depending on how long past the deadline the company issues the form. If a company intentionally disregards the requirement to provide a correct payee statement, it is subject to a minimum penalty of $250 per statement, with no maximum.
Since you did not intentionally disregard the requirement, you shouldn't be subject to the $250 penalty.
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510 weeks ago
Since you did not intentionally disregard the requirement, you shouldn't be subject to the $250 penalty.