1099 filing penalties have recently doubled. On July 27, Law360 contributor Eric Kroh published an article featuring Sovos Compliance CMO Troy Thibodeau. The article focuses on the increased need for the government to raise revenue through stricter compliance enforcement of compliance rules, including the Trade Preferences Extension Act of 2015. This update affects not only all 1099 filers, but also incorrectly reporting tax information on the new Affordable Care Act required 1094/1095 forms will also be subject to these newly enhanced penalties.
H.R. 1295, (now PL 114-27), more than doubles the penalty per record from $100/record to $250/record for failure to file properly. This update also doubles the annual maximum penalty cap from $1.5M to $3M. The new penalties are effective for information returns required to be filed after Dec. 31, 2015.
The post Sovos highlighted on Law360: 1099 Filing Penalties appeared first on Sovos.