Unfortunately, the IRS is pretty strict when it comes to penalizing companies for errors or missing 1099 forms. If you simply forgot to file, that’s not a sufficient enough of a reason to avoid a penalty.
If you realized you have made a mistake or forgot to file 1099s, it’s best to act as soon as possible. The longer you wait to rectify, the more you have to pay in penalties. It it’s been a year, unfortunately the fines could already be steep.
There is still hope for getting out of costly penalties. If you had a reasonable cause or mitigating circumstance (that you can back up with evidence and documentation) then you may be able to petition the penalties.
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