As you may know, the financial ramifications for non-filing are potentially steep. The penalty for filing incomplete or inaccurate information on submissions is $270 per required return, with a maximum penalty of $3,339,000 million per year. Even worse, if the IRS determines that an employer’s failure to file was due to “intentional disregard,” the penalty amount is $550 per form without limitations. These penalty amounts are based on the 2020 filing year.
So if you have received a Letter 5699, it is important to act right away! Be sure to respond to Letter 5699 within the 30-day window. Also be sure to include any supporting documentation that may be requested with your response. If you have additional questions about the letter, employers can call the contact number listed on the top right corner of the letter. Lastly, if you are an employer who was non-compliant, it’s decision time. You will need to decide what level of risk you are willing to take and are you able to financially afford that level of risk. Keep in mind that Integrity Data is here to help you every step of the way. Please contact us if you have any questions about remaining compliant or if you need guidance on becoming compliant.