Free tool · United States · 2026 and 2027

W-2 and 1099 late-filing penalty calculator

Estimate what the IRS charges for late, missing or wrong W-2s and 1099s: the per-return amount for how late you are, the yearly maximum for your size of business, and the separate penalty for late recipient copies.

Your returns

Filing season

Average annual gross receipts, last 3 tax years

Copies filed with the IRS or SSA

Number of late or incorrect returns

W-2s, 1099-NECs, 1099-MISCs and other information returns

When they were filed or corrected

Copies given to employees and payees

Number of late or incorrect recipient copies

Enter 0 if the recipient copies went out on time

When they were furnished or corrected

Estimated penalty

Returns filed with the IRS or SSA

5 × $130

$650

Recipient copies

5 × $130

$650

Estimated total

$1,300

Dates for 2026 forms

W-2 and 1099-NEC: due Mon, Feb 1, 2027; the 30-day mark is Wed, Mar 3, 2027.
Other 1099s to the IRS: Mon, Mar 1, 2027 on paper, Wed, Mar 31, 2027 electronically.
Recipient copies of most forms: Mon, Feb 1, 2027. The middle tier ends August 1, 2027.

Per-return amounts and yearly maximums from IRS Rev. Proc. 2025-32, sections 3.57 and 3.58 (returns and statements due in 2027), as of October 25, 2026. The maximums apply to all your failures in the calendar year at that tier, not just these. Reasonable cause, the de minimis error safe harbor and IRS penalty relief can reduce or remove a penalty. An estimate, not tax advice.

The cheapest penalty is the one you never get. AcboBooks keeps the year's paychecks and contractor payments in one file, so the W-2 worksheet, the SSA EFW2 file and the 1099-NEC Wizard are ready when January comes. See year-end forms in AcboBooks or try it free for 15 days.

As of October 25, 2026. General information, not tax advice.

How the penalty works

Two sections of the tax code apply to the same form. Section 6721 penalizes a return not filed correctly with the IRS (or, for W-2s, the SSA) on time. Section 6722 penalizes a copy not furnished correctly to the employee or payee on time. Each late W-2 or 1099 can draw both, so the calculator asks about the two sets of copies separately.

The amount per return depends on how late you are. The clock starts at the due date: within 30 days, the lowest rate; after that but by August 1, the middle rate; after August 1 or never, the full rate. Filing a return with wrong or missing information counts the same as filing late, and the tier depends on when you correct it.

Each tier has a calendar-year maximum, lower for small businesses with average annual gross receipts of $5 million or less over the last 3 years. The maximums cover all your failures in the year, so if you already owe penalties on other returns this year, your cap is closer than the calculator shows. Intentional disregard has a higher minimum and no maximum.

Penalty amounts for returns due in 2027 and 2026

When filed or corrected	Per return, due in 2027	Yearly maximum, small business (2027)	Yearly maximum, larger business (2027)	Per return, due in 2026
Filed or corrected within 30 days of the due date	$60	$244,500	$698,500	$60
After 30 days, by August 1	$130	$698,500	$2,095,500	$130
After August 1, or not filed	$340	$1,397,000	$4,191,500	$340
Intentional disregard	At least $690, or 10% of the amounts	No maximum	No maximum	At least $680

The same amounts apply to late or wrong recipient copies (section 6722). For returns due in 2026, the small-business maximums were $239,000, $683,000 and $1,366,000.

Due dates for 2026 forms

W-2 to employees and the SSA, and 1099-NEC to contractors and the IRS: Monday, February 1, 2027. See Form W-2 and Form 1099-NEC.
1099-MISC, 1099-INT and most other 1099s to recipients: February 1, 2027. To the IRS: Monday, March 1, 2027 on paper with Form 1096, or Wednesday, March 31, 2027 electronically.
The e-file rule: 10 or more information returns in total for the year, W-2s included, must all be e-filed.

Every date is on the year-end hub and the W-2 and 1099 deadlines article.

Worked example

A small landscaping company files 4 W-2s and 3 1099-NECs for 2026 on March 15, 2027, and hands out the copies the same day. That is 42 days after the February 1 due date, so the middle tier applies: 7 returns × $130 = $910 for the SSA and IRS copies, and another 7 × $130 = $910 for the copies to the workers. Estimated total: $1,820. Had it filed by March 3, the 30-day mark, it would have been 14 × $60 = $840.

How to keep the penalty down

File as soon as you can. Every tier boundary you beat lowers the per-return amount.
Correct wrong returns quickly with Form W-2c or a corrected 1099; a correction within 30 days is charged at the lowest rate.
Collect a Form W-9 from every contractor before you pay them, so names and TINs match.
If there was a reason beyond your control, ask for relief for reasonable cause.

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Sources

Questions

What is the penalty for filing a W-2 or 1099 late in 2027?

For 2026 forms due in 2027, the IRS penalty is $60 per return if you file within 30 days of the due date, $130 if you file after that but by August 1, and $340 if you file after August 1 or not at all. Intentional disregard is at least $690 per return with no maximum.

Is the penalty per form or per company?

Per form, and separately for each copy. A late W-2 can be penalized once for the SSA copy (failure to file) and again for the employee's copy (failure to furnish). The calendar-year maximums cap the total at each tier.

What counts as a small business for the lower maximums?

A business whose average annual gross receipts for the 3 most recent tax years were $5 million or less. For returns due in 2027 its yearly maximum at the $340 tier is $1,397,000, against $4,191,500 for larger businesses.

Does filing a wrong return cost the same as filing late?

Yes. Missing or incorrect information is penalized at the same per-return rates, and the tier depends on when you correct it. A small dollar error can fall under the de minimis safe harbor: generally no more than $100 off, or $25 for tax withheld, unless the recipient asks for a corrected form.

Can the IRS waive the penalty?

If the failure was due to reasonable cause and not willful neglect, you can ask for the penalty to be removed. The IRS explains the process in the penalty notice and on its information return penalties page.

Is there a penalty for filing on paper when I had to e-file?

Yes. If you had to e-file (10 or more information returns in total for the year) and filed on paper, the failure-to-file penalty can apply to each return beyond the first 10.

General information, not tax or legal advice. Penalty amounts are adjusted for inflation each year; confirm with the IRS or a tax professional.

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