Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g - General Instructions For Certain Information Returns - 2018 Page 19
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30related to (a) a TIN, (b) a payee's surname, and (c) any
furnish a correct payee statement, the penalty is at least
money amount except as provided, later, with respect to
$540 per payee statement with no maximum penalty.
the safe harbor for de minimis dollar amount errors.
Safe Harbor for De Minimis Dollar Amount
3. De minimis rule for corrections. Even though you
Errors on Information Returns and Payee
cannot show reasonable cause, the penalty for failure to
Statements under sections 6721 and 6722
file correct information returns will not apply to a certain
number of returns if you:
If one or more dollar amounts are incorrect on an
information return filed with the IRS or on a payee
a. Filed those information returns timely,
statement furnished to a recipient, no correction of the
b. Either failed to include all the information required
dollar amount shall be required, and the return shall be
on a return or included incorrect information, and
treated as having been filed or the payee statement
c. Filed corrections by August 1.
furnished, as correct, if:
The difference between the dollar amount reported on
If you meet all the conditions in (a), (b), and (c) above,
the filed return or furnished payee statement, and the
the penalty for filing incorrect returns will not apply to the
correct amount is no more than $100; and
greater of 10 information returns or
of 1% (0.005) of the
1 2
The difference between the dollar amount reported for
total number of information returns you are required to file
tax withheld, on the filed return or furnished payee
for the calendar year.
statement, and the correct amount is no more than $25.
4. Safe harbor for de minimis dollar amount errors.
See
Safe Harbor for De Minimis Dollar Amount Errors on
This safe harbor provision shall not apply if a recipient
Information Returns and
Payee, later.
to whom a statement is required to be furnished elects to
receive a corrected statement. In that case, a corrected
Intentional disregard of filing requirements. If any
return must be filed with the IRS and a corrected payee
failure to file a correct information return is due to
statement furnished to the recipient.
intentional disregard of the filing or correct information
requirements, the penalty is at least $540 per information
Forms 1099-Q, 1099-QA, 1099-SA, 5498,
return with no maximum penalty.
5498-ESA, 5498-QA, and 5498-SA (Section
6693)
Failure To Furnish Correct Payee Statements
(Section 6722)
The penalties under sections 6721 and 6722 do not apply
to:
If you fail to provide correct payee statements and you
cannot show reasonable cause, you may be subject to a
Forms
Filed Under Code Section
penalty. The penalty applies if you fail to provide the
statement by the due date (January 31 for most returns;
1099-SA and 5498-SA
220(h) and 223(h)
see the
Guide to Information
Returns, later), you fail to
5498
408(i) and 408(l)
include all information required to be shown on the
1099-Q
529(d) and 530(h)
statement, or you include incorrect information on the
1099-QA and 5498-QA
529A
statement. “Payee statement” has the same meaning as
“statement to recipient” as used in
part
M.
5498-ESA
530(h)
The amount of the penalty is based on when you
furnish the correct payee statement. It is a separate
The penalty for failure to timely file Forms 1099-SA,
penalty, and is applied in the same manner as the penalty
5498-SA, 5498,1099-Q, 1099-QA, 5498-QA, or 5498-ESA
for failure to file correct information returns by the due
is $50 per return with no maximum, unless the failure is
date (section 6721), described earlier.
due to reasonable cause. See section 6693.
Exception. An inconsequential error or omission is not
No penalty will be imposed on an educational
considered a failure to include correct information. An
institution that fails to provide the TIN of a student
!
inconsequential error or omission cannot reasonably be
on Form 1098-T, if the institution certifies under
expected to prevent or hinder the payee from timely
CAUTION
penalty of perjury that it complied with the rules for
receiving correct information and reporting it on his or her
obtaining the student’s TIN. See the 2018 Instructions for
income tax return or from otherwise putting the statement
Forms 1098-E and 1098-T for additional information.
to its intended use. Errors and omissions that are never
inconsequential are those relating to (a) a dollar amount,
Fraudulent Acknowledgments With Respect to
except as provided, later, with respect to the safe harbor
Donations of Motor Vehicles, Boats, and
for de minimis dollar amount errors, (b) a significant item
in a payee's address, (c) the appropriate form for the
Airplanes (Section 6720)
information provided (that is, whether the form is an
If you are required under section 170(f)(12)(A) to furnish a
acceptable substitute for the official IRS form), and (d)
contemporaneous written acknowledgment to a donor
whether the statement was furnished in person or by
and you knowingly furnish a false or fraudulent Form
“statement mailing,” when required.
1098-C, or knowingly fail to furnish a Form 1098-C within
Intentional disregard of payee statement require-
the applicable 30-day period, you may be subject to a
ments. If any failure to provide a correct payee statement
penalty. See the 2018 Instructions for Form 1098-C for
is due to intentional disregard of the requirements to
more detailed information.
-19-
Gen. Instr. for Certain Info. Returns (2018)
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