Late Forms 1099R

[CLKent23]

I just received an email from a client regarding distributions that were made from their plan in December, 2017 and need Forms 1099R issued.  This is a plan that has the investments via brokerage accounts, which we (TPA) provide the recordkeeping for.  We also produce the Forms 1099R each year, however the client never alerted us of these 2 distributions in January when we inquired.  Now they want us to prepare the Forms, and I can see that there will be a penalty to the IRS for filing paper copies late ($100?).  I've never experienced this, so does anyone know what the process is to file these late?  Is there an addiitional form to file with the penalty, anything else?  

 

[Lou S.]

I think we had this happen about 15 years ago. Sent the 1099-Rs, filed the forms with IRS (though FIRE I believe) and the IRS send a late penalty notice to the client to pay the late filing fee.

[CLKent23]

Ok - I think I will prepare/send the forms and wait for the penalty notice.  I can't find anything specific that tells me otherwise, so thank you for your input.  

[JamesK]

I would take some time up front to think about whether the employer has reasonable cause for the late filing.  It could be a real money-saving investment.  

Here is a link to the IRS Penalties Handbook which provides a discussion of "reasonable cause" and other important information on penalties and interest:

https://www.irs.gov/irm/part20

[Mike Preston]

James, just how much time would you take?  Isn't this just 1 1099? How much do you think you can save?

[JamesK]

On 4/4/2018 at 6:03 PM, Mike Preston said:

James, just how much time would you take?  Isn't this just 1 1099? How much do you think you can save?

Serves me right for skimming too quickly over the facts.  Well, save that link for when the notice comes and then you can decide whether or not it is worth the extra effort.