Monthly Archives: October 2010

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1 10, 2010

New Penalties for Failure to File or Furnish Information Returns

By | 2010-10-01T13:58:25+00:00 October 1st, 2010|Blog, Our Services, Tax|Comments Off on New Penalties for Failure to File or Furnish Information Returns

Tax law requires businesses to provide information returns, such a 1099s, to each payee that the business has paid $600 or more for the year. The law also includes penalties for failure to file the same information returns with the IRS. To ensure compliance with these requirements, there are substantial penalties, and, as part of the recently passed Small Business Jobs Act of 2010, those penalties have been doubled. The penalties are generally based upon how late the returns are filed with the IRS or provided to the recipient of the income and are broken down into three tiers: