Asked by J
Vito is self-employed and files a Schedule C (Form 1040), Profit or Loss From Business. He paid three independent contractors more than $600 during 2024 for their services. He failed to provide Form 1099-NEC before February 1, 2025 to the three independent contractors. He provided the forms on May 26, 2025. What is Vito's total penalty for failure to furnish the information returns?
$60
$130
$330
$390
All Answers 1
Answered by
GPT-5 mini
AI
$390
Reason: The 1099-NEC were furnished more than 30 days after the January 31, 2025 due date but before August 1, 2025, so the penalty is $130 per missing/late payee statement. For three contractors: 3 × $130 = $390.
Reason: The 1099-NEC were furnished more than 30 days after the January 31, 2025 due date but before August 1, 2025, so the penalty is $130 per missing/late payee statement. For three contractors: 3 × $130 = $390.
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