Failure to file the 1099 form by the deadline may result in IRS penalties. The
penalty can be from $60 per 1099 Form, the maximum penalty can be up to
$630,500. If you submit Form more than 31 days to before August 1, the penalty
increases to $120 per 1099 Form and maximum penalty up to $1,891,500. If you
file after August 1, the penalty can be from $310 per 1099 Form and maximum
penalty up to $3,783,000. Additionally, there are penalties for failure to
furnish the payee statement.