The 2010 Jobs Act "significantly increased penalties for non-compliance with information return reporting. These penalty amounts vary across three tiers, depending upon how far after the due date that the taxpayer files."
The increased penalties effective for information returns filed with the IRS on or after January 1, 2011 are as follows:
- Returns filed up to 30 days after the due date: $30 per return, with a maximum of $250,000 per calendar year ($75,000 for small businesses).
- Returns filed after 30 days following the due date, but on or before August 1: $60 per return, with a maximum of $500,000 per calendar year ($200,000 for small businesses).
- Returns filed after August 1: $100 per return, with a maximum of $1,500,000 per calendar year ($500,000 for small businesses).
For purposes of these rules, a small business has gross receipts of less than $5 million.
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