What is the IRS penalty for failure to file a 1099?

Answer by  technogeek (6640)

By recognizing it, you can file an amended return to include the 1099 and either pay the difference in the old refund and the new one or the extra owed in taxes. If you do not report it, the IRS will create a new return and will not look for deductions, which means that there will be a tax debt.

Answer by  cgroverla (516)

The IRS will send you a letter within three years of your filing. You will be required to pay income tax on the additional income, plus interest and penalties, which can double the amount of tax owed by the time you receive the notice, so it is better to amend your return immediately and pay the additional tax.

Answer by  MarkWatrous (729)

File your taxes again using Form 1040X. Send a copy of the original return and the amended return with the inclusion of the omitted 1099 income.