Information Return Penalties

An information return penalty may apply if you don't file information returns or provide payee statements on time.

We mail you Notice 972CG if you owe 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

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 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

Information Return Penalties

We charge penalties for each information return you fail to correctly file on time and each payee statement you fail to provide.

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
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 and large businesses. 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, respond to Notice 972CG 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/TINsPDF.

By law, we cannot remove or reduce interest unless the penalty is removed or reduced.

For more information, see penalty relief.

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

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 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

Get Help

For help with a penalty, call the phone number on your notice. If you didn't receive a notice, use telephone assistance.

Law and Regulations

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 IRS
  • If you can’t find what you need online, call the IRS number on your notice or letter (prepare for long wait times)