401(k) Forms 1099-R / 1096

Correcting Form Failures

If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty.

The penalty applies if you fail to:

• Fail to file timely;
• Fail to include all information required to be shown on a return; or
• You include incorrect information on a return.

The penalty also applies if you:

• file on paper when you were required to file electronically;
• you report an incorrect TIN or fail to report a TIN; or
• you fail to file paper forms that are machine readable.

Penalty Amounts

The amount of the penalty is based on when you file the correct information return.

The penalty is as follows:

• $50 per information return if you correctly file within 30 days (by March 30 if the due date is February 28);
  • Maximum penalty $547,000 per year ($191,000 for small businesses, defined below);
• $100 per information return if you correctly file more than 30 days after the due date but by August 1;
  • Maximum penalty $1,641,000 per year ($547,000 for small businesses).
• $270 per information return if you file after August 1 or you do not file required information returns;
  • Maximum penalty $3,282,500 per year ($1,094,000 for small businesses).
• $540 per information return if any failure to file a correct information return is due to intentional disregard of the filing or correct information requirements;
  • No maximum penalty.