Failure to File Correct Information

Increase in Penalties for Failure to File Correct Information Returns and to Provide Correct Payee Statements -- 31-JUL-2015

P. L. 114-27, section 806, increased penalties for failure to file correct information returns and provide correct payee statements for information returns required to be filed after December 31, 2015.

Penalties are discussed in Section O in the General Instructions for Certain Information Returns. The penalties in the bulleted list under "Failure To File Correct Information Returns by the Due Date (Section 6721)" are revised as follows.

• $50 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $500,000 per year ($175,000 for small businesses).
• $100 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $1,500,000 per year ($500,000 for small businesses).
• $250 per information return if you file after August 1 or you do not file required information returns; maximum penalty $3,000,000 per year ($1,000,000 for small businesses).

Also, in the "Caution" that comes after the bulleted list, the penalty is increased to $250 per information return.

Under "Failure To Furnish Correct Payee Statements (Section 6722)" the penalty due to intentional disregard of the requirements to furnish a correct payee statement is increased. The revised penalty is at least $500 per payee statement with no maximum penalty.