Minimize Penalties When You Failed to File Your W-2 or 1099-MISC by January 31st
Today, January 31st, is the last day you have to file your W-2 (Wage and Tax Statement) and 1099-MISC (Miscellaneous Income) tax forms without having to pay any penalties. If you’re a business owner with lots of work and responsibilities, it can be easy at times to forget to search, complete, or file all tax forms before their official due dates.
Each year the IRS announces the due dates for filing all required tax forms. By using PDFfiller, the tax season becomes easier and less stressful. When the due dates are approaching, we notify our users in advance to file Form W-2 and 1099-MISC. In this blog post, we’ll tell you about the penalties you will have to pay when missing the deadlines and the various ways to minimize them.
What Penalties Will You Have to Pay When Missing The W-2 and 1099-MISC Deadlines?
The IRS requires large and small businesses to pay a penalty of $50 (per each W-2 and 1099-MISC) when failing to furnish these forms within 30 days after the deadline. The penalty is $100 when you file by August 1st and $260 if you do not file at all (or file after August 1st). If you show that not filing a W-2 or 1099-MISC is your own choice and that you intentionally disregarded U.S. law, the penalty becomes $530.
By e-filing, you do not have to attach Form W-3 (Transmittal of Wage and Tax Statements) to a W-2 copy. But, if you send W-2 copies by mail and fail to attach W-3 statements, you may also be penalized. If you complete your forms inaccurately or make mistakes when filling them out, you may also be subject to certain penalties. If you missed the deadline for furnishing your 1099-MISC to your employees, you still have time to file it with IRS by February 28, 2018.
How to Avoid Penalties When You Miss the Deadlines for Filing Your W-2 and 1099-MISC?
There are a few ways to avoid penalties when you fail to submit your forms by their due dates. They are the following:
- You may avoid penalties, if you provide the IRS with reasonable cause, explaining why you failed to submit the form on time. However, there are few chances that the IRS or SSA will accept your explanation and cancel a penalty.
- The second option (for businesses that are in their first year of establishment) is to request an extension of time for filing their W-2 or 1099-MISC. Complete and file Form 8809 by the due date of the returns. The IRS offers a 30 days extension.
- If you see that you have no time to prepare all documents, fill them out manually and file by mail, there is a useful alternative. To avoid penalties, you can complete the documents and file them to the IRS electronically. You can do this even on January 31st, until 11:59 pm.