Information return penalties are going up. Way up. Included as part of the Trade Preferences Extension Act of 2015 (P.L. 114-27) is a provision that increases penalties for failing to file Forms W-2, 1099 or 1095-C, or to provide forms to payees. Beginning with forms required to be filed next year, penalties increase as follows:
- The penalty for filing correct forms within 30 days increases to $50, from $30. The calendar year maximums increase to $500,000, from $250,000, and to $175,000, from $75,000, for small employers
- The penalty for filing correct forms after the 30-day deadline, but by Aug. 1, increases to $100, from $60. The calendar year maximums increase to $1.5 million, from $500,000, and to $500,000, from $200,000, for small employers
- The penalty for failing to file correct forms after Aug. 1 increases to $250, from $100. The calendar year maximums increase to $3 million, from $1.5 million, and to $1 million, from $500,000, for small employers
- The minimum penalty for a failure to file due to the intentional disregard of the filing requirements increases to $500, from $250.