USTaxPenaltySaver972CG
High PriorityNotice of Proposed Civil Penalty (Information Returns)
The IRS proposes a penalty for information returns (such as 1099s or W-2s) that were filed late, filed incorrectly or not filed.
Last reviewed: November 10, 2026. Check irs.gov for changes.
Read the full guide to this noticeResponse Deadline
45 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
Notice 972CG proposes penalties under IRC 6721 (filing with the IRS) and IRC 6722 (furnishing copies to payees). It is a proposal: you can reply within 45 days (60 days for foreign filers) to show reasonable cause or point out errors (irs.gov "Information return penalties", updated 30 October 2026). For returns due in 2026 the penalty is $60 per return up to 30 days late, $130 from 31 days late through August 1, and $340 after August 1 or not filed; intentional disregard is $680. For returns due in 2027 the amounts are $60, $130 and $340, and $690 for intentional disregard.
Why You May Have Received This
- 1Forms 1099 or W-2 filed with the IRS after the due date
- 2Payee copies furnished late
- 3Missing or incorrect taxpayer identification numbers (TINs)
- 4Returns that had to be e-filed were filed on paper
Required Actions
Check each return listed on the notice against your filing records and IRS acceptance acknowledgements
If you agree, sign the response page and pay, or the IRS assesses the penalty after the reply period
If you disagree, reply within 45 days (60 days for foreign filers) with a signed reasonable cause statement or proof of timely, correct filing
Keep a copy of everything you send
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- The proposed penalty is assessed and a bill follows
- Interest builds on the unpaid penalty
Tips & Best Practices
- First-Time Abatement and automatic penalty relief (AEP) do not cover information-return penalties (IRC 6721/6722); reasonable cause is the main relief
- Answer by the reply date even if you only disagree with part of the penalty
- Correct any bad returns so the problem does not repeat next year
Related Resources
Legal References
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