1099-1096

[thepensionmaven]

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.

[thepensionmaven]

There used to be a deminimus exemption for a plan that had less than ten 1099s.

[Dare Johnson]

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.

[thepensionmaven]

Client's accountant suggested filing "corrected" 1099Rs and sending them in.

 

[Bird]

19 hours ago, thepensionmaven said:

Client's accountant suggested filing "corrected" 1099Rs and sending them in.

 

Good luck with that

[Dare Johnson]

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.