Unfortunately, the IRS is pretty strict when it comes to penalizing companies for errors or missing 1099 forms. Forgetting to file is not a sufficient enough 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 may have to pay in penalties. If it’s already 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 abate the penalties. It is recommended to talk with a tax advisor when determining the applicable penalties and if a reasonable cause argument can be made.
$0.99 per payment