Published and final
Penalties for returns filed in 2027
Rev. Proc. 2025-32 (October 2025) sets the IRC 6721 and 6722 amounts for returns required to be filed, and statements required to be furnished, in calendar year 2027. The per-return tiers are unchanged from 2026; intentional disregard and every annual maximum rose.
| Correct return filed | Per return | Annual maximum | Annual maximum, small business |
|---|---|---|---|
| Within 30 days of the due date | $60 | $698,500 | $244,500 |
| After 30 days, by August 1, 2027 | $130 | $2,095,500 | $698,500 |
| After August 1, 2027, or never | $340 | $4,191,500 | $1,397,000 |
| Intentional disregard | $690, or 10% of the amount required to be reported (5% for 1099-B, 1099-K and 1099-LTC filers) | None | None |
The same amounts apply separately under IRC 6722 for the payee statement. The 972CG estimator has a 2027 option with these figures. Small business means average annual gross receipts of $5 million or less for the three prior years.
The $2,000 threshold applies to 2026 payments
P.L. 119-21 raised the IRC 6041 and 6041A amounts from $600 to $2,000 for payments made after December 31, 2025, and tied backup withholding to the same figure (IRC 3406(b)(6)). The 1099-NEC and 1099-MISC you file in January 2027 use $2,000. Royalties ($10), attorney gross proceeds ($600), 1099-S ($600), 1099-C ($600) and the $10 interest and dividend amounts are under other sections and did not change. The statute indexes the $2,000 for inflation for payments made after 2026; the indexed figure will be in the fall 2026 revenue procedure (see below).
FIRE is retired; IRIS is the only intake system
Publication 1099 (2026) states that beginning with tax year 2026 (filing season 2027) IRIS is the only IRS intake system for information returns, that FIRE will not accept current-year, prior-year or corrected submissions once it shuts down at the end of 2026, and that references to FIRE and Pub. 1220 have been removed from the general instructions. A Transmitter Control Code for IRIS is separate from a FIRE TCC, and the IRS says the application typically takes 45 business days. The FIRE to IRIS page covers the migration; the IRIS portal takes CSV uploads of up to 100 forms per submission and the A2A channel takes XML for volume filers.
Three new forms
- Form 1098-VLI, Vehicle Loan Interest Statement. Created by IRC 6050AA for the 2025 to 2028 car-loan interest deduction. Lenders receiving $600 or more of interest on a specified passenger vehicle loan file it; 2025 was covered by transition relief (Notice 2025-57), so the 2026 forms filed in 2027 are the first mandatory filing. The December 2026 form and instructions are final.
- Form 1099-LPS, Long-Term Care Premiums Paid Statement. Reports premiums paid for certified long-term care insurance; all amounts, due to the IRS February 1 and to the recipient January 31 per the Pub 1099 chart. Pub 1099 lists it as under development for release in mid-2026; as of this page's date the IRS has posted drafts but not a final form.
- Form 5498-TA, Trump Account Contribution Information. Reports contributions (including the pilot-program deposit, qualified general contributions, rollovers and IRC 128 employer contributions), basis and fair market value for the new accounts created by P.L. 119-21, which accept contributions from July 4, 2026. Pub 1099 lists it as under development; the IRS has said it will be filed electronically only. Distributions from these accounts are flagged on Form 1099-R with new checkbox 7c, and rollovers into ABLE accounts appear in box 8 of Form 5498-QA.
New boxes on existing forms
For the tips and overtime deductions (tax years 2025 to 2028): Form 1099-NEC boxes 1b (cash tips), 1c (Treasury Tipped Occupation Code) and 1d (overtime compensation); Form 1099-MISC boxes 13a, 13b and 14, with nonqualified deferred compensation moving to box 15; Form 1099-K boxes 1c and 1d. Excess golden parachute payments move from the MISC to 1099-NEC box 3. Form 1099-G adds box 10 for state paid family leave benefits; Form 1099-S adds box 2c for digital assets used in a real estate exchange; Form 1099-R adds checkboxes 7b, 7c and 7d; Form 1099-Q adds box 4b for 529-to-Roth rollovers. Address fields on the 2026 revisions are split into separate entry boxes. Forms 1098-MA and 1099-H are retired.
Form 1099-DA: basis arrives
Brokers reported gross proceeds only for 2025 digital asset sales. For sales in 2026, filed in 2027, cost basis is required for covered digital assets acquired on or after January 1, 2026. Notice 2025-33 extended penalty relief and the backup-withholding transition for brokers making a good-faith effort through 2026; see the 1099-DA page.
The 2027 calendar
January 31, 2027 is a Sunday, so the 1099-NEC (IRS and recipient) and every January 31 statement are due Monday, February 1, 2027. February 28, 2027 is also a Sunday, so paper returns are due Monday, March 1, 2027; electronic returns stay at Wednesday, March 31. February 15 and March 15 are Mondays. May 31, 2027 is Memorial Day, so the 5498 series is due Tuesday, June 1, 2027. The compliance calendar has every date with the shifts applied.
Announced but not yet final
- Inflation adjustments for 2027. The IRS publishes the next year's indexed amounts each October or November. The fall 2026 revenue procedure will carry the first indexed value of the $2,000 threshold (for payments made in 2027, reported in 2028), the indexed W-2G threshold, and the penalty amounts for returns filed in 2028. Until it appears, plan on $2,000 for 2027 payments and revisit; it will not change anything you file in early 2027.
- Forms 1099-LPS and 5498-TA are drafts. The Pub 1099 chart already gives 1099-LPS dates; 5498-TA dates are "see form instructions".
- State conformity to $2,000. States that copy the federal 1099 thresholds have mostly not said whether they follow the increase; several set their own lower 1099-K thresholds already. The state pages are updated as departments publish 2027 guidance.
- IRIS capacity and correction workflows. The IRS has said IRIS will accept corrections for prior years that were filed on FIRE, but the mechanics (Pubs 5717 and 5718 for the 2027 season) are revised each fall.
What to watch for
Three IRS releases will settle the rest: the annual inflation revenue procedure (October or November 2026), the final Forms 1099-LPS and 5498-TA with instructions, and the 2027 revisions of Publications 5717 and 5718 for IRIS. The IRS posts drafts at IRS.gov/DraftForms before finalizing. This page and the figures page will be updated when each arrives; the form pages already reflect the December 2026 form revisions.
What to do before January
- Get an IRIS TCC now if you filed through FIRE or a FIRE-based vendor; the 45-business-day estimate puts a September application at mid-November.
- Re-run the vendor file against the $2,000 test for 2026 payments, but keep the W-9s for everyone; the threshold changes who gets a form, not who needs a TIN, and backup withholding still applies to any payee without one.
- Add the tips, TTOC and overtime fields to the NEC/MISC/K data feed if you pay tipped or hourly contractors and gig workers.
- If you are a lender, stand up 1098-VLI: VIN, assembly point, original use, per-loan $600 test, borrower name as the SSA holds it.
- Budget penalties at $340 / $690 with the higher 2027 maximums, and run the payee list through TIN matching before January so the CP2100 in the autumn of 2027 is short.