Lehman, Hershberger & Company P.C.

Certified Public Accountants

  We see beyond the numbers to what matters most.

 

Goshen Office

301 W. Lincoln Ave.

Goshen, IN  46526

Phone: 574-533-8857

Fax: 574-534-5443

RLehman@lhpc.us

 

Shipshewana Office

P.O. Box 216

305 E. Main St.

Shipshewana, IN  46565

Phone: 260-768-4552

Fax: 260-768-4001

BrianH@lhpc.us


 

Deadlines for filing W-2s and 1099-Misc have changed.

IR-2017-189, Nov. 16, 2017


WASHINGTON — The Internal Revenue Service today reminded employers and other businesses of the Jan. 31 filing deadline that now applies to filing wage statements and independent contractor forms with the government.


The Protecting Americans from Tax Hikes (PATH) Act includes a requirement for employers to file their copies of Form W-2 and Form W-3 with the Social Security Administration by Jan. 31. The Jan. 31 deadline also applies to certain Forms 1099-MISC filed with IRS to report non-employee compensation to independent contractors. Such payments are reported in box 7 of this form.


This deadline makes it easier for the IRS to verify income that individuals report on their tax returns and helps prevent fraud. Failure to file these forms correctly and timely may result in penalties. As always, the IRS urges employers and other businesses to take advantage of the accuracy, speed and convenience of filing these forms electronically.


Hints to help filers get ready


Employers should verify employees’ information. This includes names, addresses, Social Security or individual taxpayer identification numbers. They should also ensure their company’s account information is current and active with the Social Security Administration before January. If paper Forms W-2 are needed, they should be ordered early.


An extension of time to file Forms W-2 is no longer automatic. The IRS will only grant extensions for very specific reasons. Details can be found on the instructions for Form 8809.


For more information, read the instructions for Forms W-2 & W-3 and the Information Return Penalties page at IRS.gov.


If you fail to file a correct Form W-2 or 1099-MISC by the due date and cannot show reasonable cause, you may be subject to a penalty as provided under section 6721. The penalty applies if you:


  • Fail to file timely, 
  • Fail to include all information required to be shown on Form W-2 & 1099-MISC, 
  • Include incorrect information on Form W-2 or 1099-MISC, 
  • File on paper forms when you are required to e-file, 
  • Report an incorrect TIN, Fail to report a TIN, or
  • Fail to file paper Forms W-2 & 1099-MISC that are machine readable.  

The amount of the penalty is based on when you file the correct Form W-2 & 1099-MISC. Penalties are indexed for inflation.  The penalty amounts shown below apply for tax years beginning in 2016. The penalty is:

  • $50 per Form if you correctly file within 30 days of the due date (for example, by February 28 if the due date is January 31); the maximum penalty is $536,000 per year ($187,500 for small businesses, defined in Small businesses).

  • $100 per Form if you correctly file more than 30 days after the due date but by August 1; the maximum penalty is $1,609,000 per year ($536,000 for small businesses).

  • $260 per Form if you file after August 1, do not file corrections, or do not file required Forms; the maximum penalty is $3,218,500 per year ($1,072,500 for small businesses).

Failure to file correct information returns by the due
date. If you fail to file a correct Form W-2 by the due date
and cannot show reasonable cause, you may be subject
to a penalty as provided under section 6721. The penalty
applies if you:
Fail to file timely,
Fail to include all information required to be shown on
Form W-2,
Include incorrect information on Form W-2,
File on paper forms when you are required to e-file,
Report an incorrect TIN,
Fail to report a TIN, or
Fail to file paper Forms W-2 that are machine readable.
The amount of the penalty is based on when you file
the correct Form W-2. Penalties are indexed for inflation.
The penalty amounts shown below apply for tax years
beginning in 2016. The penalty is:
$50 per Form W-2 if you correctly file within 30 days of
the due date (for example, by February 28 if the due date
is January 31); the maximum penalty is $532,000 per year
($186,000 for small businesses, defined in Small
businesses).
$100 per Form W-2 if you correctly file more than 30
days after the due date but by August 1; the maximum
penalty is $1,596,500 per year ($532,000 for small
businesses).
$260 per Form W-2 if you file after August 1, do not file
corrections, or do not file required Forms W-2; the
maximum penalty is $3,193,000 per year ($1,064,000 for
small businesses).
If you do not file corrections and you do not meet
any of the exceptions to the penalty, the penalty
is $260 per information return. The maximum
penalty is $3,193,000