What are the penalties for a business failing to meet a 1099-MISC or 1099-NEC deadline?
If a business fails to issue a form by the 1099-NEC or 1099-MISC deadline, the penalty varies from $50 to $270 per form, depending on how long past the deadline the business issues the form. There is a $556,500 maximum in fines per year. If a business intentionally disregards the requirement to provide a correct payee statement, it's subject to a minimum penalty of $550 per form or 10% of the income reported on the form, with no maximum.
even if you were only to deduct $599 you would still be liable for the failure to file penalty.
