Late 1099-R

[kevind2010]

I found what the penalties are for a late 1099-R, but I can't seem to find to who or where you pay them. Does anyone have any idea? We have a client with self-directed brokerage accounts. An employee withdrew some money without notifying anyone, so no 1099-R was done. Maybe it's just an issue of filing the 1099-R and waiting to receive the penalty notification? That would seem a little odd to me, because most other IRS corrective processes require you to be proactive on paying.

[Bird]

Some years ago we filed a late 1099-R and waited for a penalty letter and it never came.

[mbozek]

Some years ago we filed a late 1099-R and waited for a penalty letter and it never came.

It may take too much paperwork/programming time for the IRS to set up an account for the plan and go through the process of sending out a penalty notice for a 1 time violation involving a single notice. Or it may take the IRS years to get through the backlog of penalty notices that have not been processed and single violations have the lowest priority. The IRS IT systems aren't up to date and frequently break down. The IRS recently announced that their new faster efiling system for income tax returns is causing delays in processing tax refunds of two or more weeks beyond the two weeks that is the publicly announced time to deposit refunds in taxpayers bank accounts.

As a president said more than once "Be glad you dont get all the government you pay for".

[thepensionmaven]

Where did you find the penalty for a 1099R, the only One I could find is a flat $100 for 1099-MISC.

[BG5150]

Where did you find the penalty for a 1099R, the only One I could find is a flat $100 for 1099-MISC.

In General Instructions for Certain Information Returns

Failure To File Correct Information Returns by the Due Date (Section 6721)

If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return. The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.

The amount of the penalty is based on when you file the correct information return. The penalty is:

• $30 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $250,000 per year ($75,000 for small businesses, defined below).

• $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses).

• $100 per information return if you file after August 1 or you do not file required information returns; maximum penalty $1,500,000 per year ($500,000 for small businesses).

http://www.irs.gov/instructions/i1099gi/ar02.html#d0e1864

[Bird]

Section O of the general instructions: http://www.irs.gov/pub/irs-pdf/i1099gi.pdf

I think the reference to "information return" is any of the various forms.

Oh, BG beat me to it!

[BG5150]

Oh, BG beat me to it!

C'mon, Bird! You're slackin'!

[Bird]

At least we said the same thing...