An information return penalty may apply if you don't timely or accurately file information returns or provide payee statements. We mail you a notice if if we charged a penalty and charge monthly interest until you pay the amount in full. On this page What to do if you got an IRS notice How we calculate the penalty Interest on a penalty Pay a penalty Remove or reduce a penalty Dispute a penalty Avoid a penalty Law and regulations What to do if you got an IRS notice Check that the information on the notice is correct. The notice has information about the penalty, the reason for the charge and what to do next. Follow the instructions. If you can correct an issue in the notice, there may be reduced or no penalty. If the information is correct and you don't agree, you may be able to dispute the penalty. For details, see Understanding Your IRS Notice or Letter. How we calculate the penalty We charge separate penalties for failing to: File a correct information return on time Provide correct payee statements on time Information return penalties We charge penalties for each information return you fail to correctly file on time and each payee statement you fail to correctly provide on time. Charges for each Information return or payee statement Year due Up to 30 days late 31 Days late through August 1 After August 1 or not filed Intentional disregard 2025 $60 $130 $330 $660 2024 $60 $120 $310 $630 2023 $50 $110 $290 $580 2022 $50 $110 $280 $570 2021 $50 $110 $280 $560 2020 $50 $110 $270 $550 2019 $50 $100 $270 $540 2018 $50 $100 $260 $530 2017 $50 $100 $260 $530 2016 $50 $100 $260 $520 2011 – 2015 $30 $60 $100 $250 The maximum penalty is different for small businesses and large businesses including government entities. There is no maximum penalty for intentional disregard. For details, see General Instructions for Certain Information Returns. Interest on a penalty We charge interest on penalties. The date we begin to charge interest varies by the penalty type and amount. Interest increases the amount you owe until you pay your balance in full. For more information about the interest we charge on penalties, see Interest. Pay a penalty You can pay online or by mail with a check. Pay your penalty in full to stop future penalties and interest from adding up. Apply for a payment plan If you can't pay the full amount of your penalty on time, pay what you can now and apply for a payment plan. You may reduce future penalties and interest when you set up a payment plan. Remove or reduce a penalty We may be able to remove or reduce the penalty if you acted in good faith and can show reasonable cause. If you have reasonable cause, and received Notice 972CG, respond within 45 days (60 days if you're a foreign filer) before we assess the penalty. You may have reasonable cause if you: Acted responsibly before and after the failure occurred and Have significant reasons or the failure resulted from circumstances beyond your control For details on reasonable cause for missing and incorrect names or taxpayer identification numbers, see Publication 1586, Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs on Information Returns PDF. By law, we cannot remove or reduce interest unless the penalty is removed or reduced. For more information, see interest. Dispute a penalty If you disagree with the amount you owe, you may dispute the penalty. Call us at the toll-free number at the top right corner of your notice or letter or write us a letter stating why we should reconsider the penalty. Sign and send your letter along with any supporting documents to the address on your notice. Have this information when you call or send your letter: The notice or letter we sent you The penalty you want us to reconsider (for example, a Form 1099-NEC late filing penalty) For each penalty, an explanation of why you think we should remove it If a notice or letter we sent you has instructions or deadlines for disputing the penalty, pay careful attention. You must follow the instructions to dispute the penalty. If you didn't receive a notice or letter, get telephone assistance. Avoid a penalty You can avoid penalties when you: File information returns and provide payee statements before the due date Prepare the returns and payee statements with correct information File a waiver from electronic filing of information returns Apply for an extension of time and file information returns and provide payee statements before the extended due date Electronic filing requirements Final regulations for the Taxpayer First Act, provision 2301, were issued February 21, 2023, by the Department of the Treasury and the Internal Revenue Service. Treasury Decision (TD) 9972 amends the rules for filing returns and other documents electronically (e-file). These regulations reduce the 250-return threshold to generally require electronic filing by filers of 10 or more returns in a calendar year beginning in tax year 2023. To determine if you meet the 10 or more threshold to electronically file: Identify how many information returns of any type covered by TD 9972 you need to file during a calendar year If 10 or more, you must file electronically For examples, see Reduction in the electronic filing threshold beginning Tax Year 2023 in What’s New on FIRE. If you experience a hardship that prevents you from complying with the threshold reduction, you can submit a Form 8508, Application for a Waiver from Electronic Filing of Information Returns PDF. Due dates and extensions Information returns must be postmarked or filed by the due date. For due dates, see A Guide to Information Returns. To file most information returns electronically, see FIRE. To file Form 1099-series electronically, at no cost, see IRIS. To file Affordable Care Act information returns electronically, see AIR. Apply for an extension of time You can request extra time to file an information return and provide payee statements: Information returns: Form 8809, Application for Extension of Time to File Information Returns Payee statements: Faxing request for extension of time to furnish statements to recipients Law and regulations Failure to File Correct Information Returns — Internal Revenue Code § 6721 Failure to Furnish Correct Payee Statements — Internal Revenue Code § 6722 Waiver; Definitions and Special Rules – Internal Revenue Code § 6724 Reasonable Cause – Treasury Regulation §301.6724-1 Get help You can authorize someone to contact the IRS on your behalf If you can’t resolve the penalty on your own, contact Taxpayer Advocate Service, an independent organization within the IRS If you can’t find what you need online, call the IRS number on your notice or letter (prepare for long wait times). If you didn't receive a notice, use telephone assistance. Related Special Filing Season Alerts IRS operations status Forms, Instructions & Publications Penalty Appeal Eligibility Publications Publication 594, The IRS Collection Process PDF Publication 1586, Reasonable Cause Regulations and Requirements for Missing and Incorrect Name/TINs PDF