If you did not yet issue the required 1099s you still have time, but time is running out. The deadline is January 31 – which is less than two weeks away. It is clearly time to make this a top priority in your busy schedule.

Not convinced you need to do this now? Here are the penalties you can face from the IRS if you do not issue those required 1099s.

The IRS says that businesses that fail to issue the required 1099 by the filing deadline could face penalties ranging from $50 to $280 per form for the 2022 tax year, depending on how late the form was submitted.

Also, businesses that intentionally disregard a payee’s request to correct a 1099 with errors can be subject to a minimum penalty of $570 per form or 10% of the income reported on the form, with no maximum.

Those penalties should get your attention.

The IRS further says that taxpayers earning a qualified income should receive a 1099 form from the payer no later than early February. And if they do not, they say the first step to take if the1099 isn’t received is to contact the payer.

If it’s still not received by February 15, the taxpayer should call the IRS for help at 1-800-829-1040. (Translation: You can expect to hear from the IRS for not issuing that 1099. )

Now you know why you should be making sure your bookkeeper has prepared those required 1099s. And you should check on that today.