1099-Misc late filing penalties

[SFA]

We have had several clients bring in their paperwork to file their 2015 tax returns who should have sent out 1099's. Argh! Has anyone been successful in getting penalty relief for late filed 1099's?

 

 

[RitaB]

25 minutes ago, SFA said:

We have had several clients bring in their paperwork to file their 2015 tax returns who should have sent out 1099's. Argh! Has anyone been successful in getting penalty relief for late filed 1099's?

I've never tried, but I did find the following that might help you decide if it's possible or put it back in the lap of the client:

"The penalty will not apply to any failure that you can show was due to reasonable cause and not to willful neglect. In general, you must be able to show that your failure was due to an event beyond your control or due to significant mitigating factors. You must also be able to show that you acted in a responsible manner and took steps to avoid the failure."      https://www.irs.gov/instructions/i1099gi/ar02.html#d0e2122

My lady in my thread about "they won't withhold more than that" once tried (all by herself) to get out of failure to file penalty because a family member had an accident on Oct 20.  That went over like a fart in a space suit.  But I digress.

[JohnH]

I've never seen a penalty assessed for a late-filed 1099-MISC.

(But maybe that will change now that the amount has been upped to $250)

[grandmabee]

I have filed late ones every year for the very same reason you stated.  I have never seen a penalty assessed.  But I do hear that January 2017 is the year they will start assessing the penalties.  Who knows.....we can only do what they bring us.  every year I tell them I need before end of January and still they wait.

[Catherine]

Oh, *I* have seen penalties assessed.  Big fat hairy ones with fangs.  Non-filing, late-filing, plus interest.  One client is a contractor (who really NEEDS to bring his records here so we can do accounting for him but he doesn't) is late- very, very late - EVERY year.  I charge him triple my usual price as my own penalty (so in all, FOUR times normal fee).  I am STILL waiting for info for the 2015 1099's.  

But the IRS sends him penalty bills, every year.  He hasn't wised up yet.