Jump to content

1099-1096


thepensionmaven
 Share

Recommended Posts

Participants were given 1099-Rs by January 31; 945 filed with IRS by 1/31/22; client has not yet filed the pink 1099-R/1096.

Excuse my ignorance, but what is the penalty for late filing with IRS; can the fine be paid with the submission and on what form, if possible.

Link to comment
Share on other sites

The client will need to wait for an IRS notice assessing late filing penalties.  If the plan does not have a history of filing Form 1099-R late, the IRS has a First Time Penalty Abatement policy https://www.irs.gov/irm/part20/irm_20-001-001r#idm140198826274112.  Client calls the IRS number on the notice and requests first time penalty abatement.  If the agent says no, hang up and call again until you get an agent that says yes.

Link to comment
Share on other sites

When the client signs the Form 1096, he is attesting to "Under penalties of perjury, I declare that I have examined this return and accompanying documents and, to the best of my knowledge and belief, they are true, correct, and complete". 

Why elevate a civil penalty into a fraud penalty as the client will have a hard time proving the original 1099-Rs were mailed timely.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...