For the Form 1099s that are due on February 28, 2012, the failure to timely file Form 1099s penalty is doubling from $50 per Form 1099 to $100 per Form 1099. If you do not have all the information needed to complete a Form 1099 (such as the Social Security number), you can still file it incomplete by February 28. As long as you secure the missing information and file the amended Form 1099 before August 1, 2012, then no penalties will apply.
By the way, if you file the Form 1099 within 30 days after February 28, the $100 penalty is reduced to $30. If you file Form 1099 more than 30 days after February 28 but before August 1, 2012, the penalty is reduced to $60 per Form 1099.
The IRS is projecting to collect big bucks from these penalties over the next few years. You should be checking and double checking that you are issuing a Form 1099 to all businesses providing services to you that is not incorporated and you paid them at least $600 during 2011. This would include sole proprietorships, partnerships and LLCs. You can verify the business information via Form W-9.