Part of one of the new trade bills the President signed into law has, as an “offset” – or a way of paying the bill for the legislation. This is how they write laws – or, rather, changes to them – and you can see exactly how much these penalties have increased. The bottom line is this: The IRS is cracking down on 1099s so you’ll need to do them, right, on time, every time, or face the IRS fiddlers.
– – – – – – – copied and pasted – – – – – – –
SEC. 806. PENALTY FOR FAILURE TO FILE CORRECT INFORMATION RETURNS AND PROVIDE PAYEE STATEMENTS.
(a) In General.—Section 6721(a)(1) of the Internal Revenue Code of 1986 is amended—
(1) by striking “$100” and inserting “$250”; and
(2) by striking “$1,500,000” and inserting “$3,000,000”.
(b) Reduction Where Correction In Specified Period.—
(1) CORRECTION WITHIN 30 DAYS.—Section 6721(b)(1) of such Code is amended—
(A) by striking “$30” and inserting “$50”;
(B) by striking “$100” and inserting “$250”; and
(C) by striking “$250,000” and inserting “$500,000”.
(2) FAILURES CORRECTED ON OR BEFORE AUGUST 1.—Section 6721(b)(2) of such Code is amended—
(A) by striking “$60” and inserting “$100”;
(B) by striking “$100” (prior to amendment by subparagraph (A)) and inserting “$250”; and
(C) by striking “$500,000” and inserting “$1,500,000”.
(c) Lower Limitation For Persons With Gross Receipts Of Not More Than $5,000,000.—Section 6721(d)(1) of such Code is amended—
(A) by striking “$500,000” and inserting “$1,000,000”; and
(B) by striking “$1,500,000” and inserting “$3,000,000”;
(A) by striking “$75,000” and inserting “$175,000”; and
(B) by striking “$250,000” and inserting “$500,000”; and
(A) by striking “$200,000” and inserting “$500,000”; and
(B) by striking “$500,000” (prior to amendment by subparagraph (A)) and inserting “$1,500,000”.
(d) Penalty In Case Of Intentional Disregard.—Section 6721(e) of such Code is amended—
(1) by striking “$250” in paragraph (2) and inserting “$500”; and
(2) by striking “$1,500,000” in paragraph (3)(A) and inserting “$3,000,000”.
(e) Failure To Furnish Correct Payee Statements.—
(1) IN GENERAL.—Section 6722(a)(1) of such Code is amended—
(A) by striking “$100” and inserting “$250”; and
(B) by striking “$1,500,000” and inserting “$3,000,000”.
(2) REDUCTION WHERE CORRECTION IN SPECIFIED PERIOD.—
(A) CORRECTION WITHIN 30 DAYS.—Section 6722(b)(1) of such Code is amended—
(i) by striking “$30” and inserting “$50”;
(ii) by striking “$100” and inserting “$250”; and
(iii) by striking “$250,000” and inserting “$500,000”.
(B) FAILURES CORRECTED ON OR BEFORE AUGUST 1.—Section 6722(b)(2) of such Code is amended—
(i) by striking “$60” and inserting “$100”;
(ii) by striking “$100” (prior to amendment by clause (i)) and inserting “$250”; and
(iii) by striking “$500,000” and inserting “$1,500,000”.
(3) LOWER LIMITATION FOR PERSONS WITH GROSS RECEIPTS OF NOT MORE THAN $5,000,000.—Section 6722(d)(1) of such Code is amended—
(i) by striking “$500,000” and inserting “$1,000,000”; and
(ii) by striking “$1,500,000” and inserting “$3,000,000”;
(i) by striking “$75,000” and inserting “$175,000”; and
(ii) by striking “$250,000” and inserting “$500,000”; and
(i) by striking “$200,000” and inserting “$500,000”; and
(ii) by striking “$500,000” (prior to amendment by subparagraph (A)) and inserting “$1,500,000”.
(4) PENALTY IN CASE OF INTENTIONAL DISREGARD.—Section 6722(e) of such Code is amended—
(A) by striking “$250” in paragraph (2) and inserting “$500”; and
(B) by striking “$1,500,000” in paragraph (3)(A) and inserting “$3,000,000”.
(f) Effective Date.—The amendments made by this section shall apply with respect to returns and statements required to be filed after December 31, 2015.
– – – – – – – – – – – – – – –
You can find the entire Bill here: https://www.congress.gov/bill/114th-congress/house-bill/1295/text#toc-HEE69B51CC87340E2B2AB6A4FA73D2A82