There are penalties for failing to file correct information returns, such as Form 1099, or for filing them late. According to the Internal Revenue Code §6721, the penalty for failure to file an information return is generally $50 per return, with a maximum penalty of $194,500 for any calendar year (increased to $219,700 for returns required to be filed after December 31, 2025, per https://www.irs.gov/pub/irs-drop/rp-24-40.pdf). The penalty for intentional disregard of the filing requirement is greater – the greater of $560 or 10% of the aggregate amount of the items required to be reported, with no maximum penalty. Late filing penalties may also apply.
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