Does the IRS actually enforce the January 31st deadline for 1099 Misc (non-employee compensation) filing?

Many employers still go by the old system, where they send the recipient copies out by Jan 31st, and then send the IRS copies out a month later. Yet, I have heard anybody to suffer from any penalties for going by the old system, and not adhering to the current law, which requires 1099's with non-employee compensation to be sent out to both, the recipients and the IRS, by Jan 31st.