Information Reporting Penalty Amounts

The Internal Revenue Service (IRS) has announced the penalties for failure to file correct Information Returns, such as Forms W-2, 1099 and 1095-C, by the due date, and failure to furnish correct Information Returns to employees and other recipients by the required due date for tax year 2019.

Failure to file penalty: If an employer fails to file a correct Information Return by the due date, the employer may be subject to a penalty. The amount of the penalty is based on when a correct form has been filed as summarized in the table below.

Failure to furnish penalty: If an employer fails to provide correct Information Returns (Forms W-2, 1099 or 1095-C) to its employees the employer may be subject to a penalty. The amount of the penalty is based on when the employer furnishes the correct form as summarized in the table below.

Penalty Per Return	2018 Tax Year (forms filed in 2019)	2019 Tax Year (forms filed in 2020)
Failure to file/furnish	$270/return $3,275,500 annual cap	$270/return $3,339,000 annual cap
Failure to file/furnish lesser cap for persons with gross receipts < $5,000,000	$270/return $1,091,500 annual cap	$270/return $1,113,000 annual cap
Failure to file/furnish when corrected within 30 days of the required filing date	$50/return $545,500 annual cap	$50/return $556,500 annual cap
Failure to file/furnish when corrected within 30 days of the required filing date; lesser cap for persons with gross receipts < $5,000,000	$50/return $191,000 annual cap	$50/return $194,500 annual cap
Failure to file/furnish when corrected by August 1 of the year in which the required filing date occurs	$100/return $1,637,500 annual cap	$110/return $556,500 annual cap
Failure to file/furnish when corrected by August 1 of the year in which the required filing date occurs; lesser cap for persons with gross receipts < $5,000,000	$100/return $545,500 annual cap	$110/return $556,500 annual cap