Correction to penalties under section 6721 for returns required to be filed in 2019, and section 6722 for payee statements furnished in 2019 -- 12-OCT-2018

Rev. Proc. 2018-18, IRB 2018-10, sections 3.51(1), 3.51(2), 3.52(1), and 3.52(2) decreased penalties for failure to file correct information returns for returns required to be filed in 2019, and provide correct payee statements in 2019.

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 corrected as follows. The penalty amounts are applied in the same manner for failure to provide correct payee statements.

  • $50 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $545,500 per year ($191,000 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 $1,637,500 per year ($545,500 for small businesses).
  • $270 per information return if you file after August 1 or you do not file required information returns; maximum penalty $3,275,500 per year ($1,091,500 for small businesses).