Hi, I’m Bette Hochberger, CPA, CGMA. As tax season begins next week, the IRS reminds businesses of the importance of submitting wage statements and information returns by the January 31 deadline. Meeting this deadline helps avoid penalties and supports the IRS in combating fraud by verifying income information more efficiently.
Key Deadlines for January 31
Here are the essential forms and deadlines to keep in mind:
Form W-2, Wage and Tax Statement: Employers must file this form along with Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration.
Form 1099-NEC, Nonemployee Compensation: Payers must submit this form to the IRS.
In addition to filing these forms, January 31 is also the deadline to provide copies of W-2, Form 1099-NEC, and other information returns to recipients. Be sure to review each form’s filing instructions for specific due dates for furnishing copies to recipients.
Benefits of E-filing
Filing electronically is the fastest and most convenient way to submit forms accurately. As of last year, electronic filing is required for W-2s and other forms if submitting 10 or more information returns during a calendar year. For a comprehensive list of information returns subject to the new e-filing rules, visit the IRS’s E-file information returns page.
The IRS also offers the Information Returns Intake System (IRIS), a free online portal for e-filing the 1099 series. Through IRIS, users can prepare and furnish copies of forms, file corrections, and request automatic extensions.
Requesting Extensions
If you need more time to file, employers and payers can request a 30-day extension by submitting Form 8809, Application for Extension of Time to File Information Returns by January 31 or by the original due date of the returns. However, keep in mind that approvals for these extensions are not automatic.
It’s important to note that filing Form 8809 does not extend the deadline for providing wage statements to employees or information returns to payees. To request an extension for furnishing these statements, you must fax a letter to the IRS by January 31. More details can be found on the IRS’s About Form 8809 page.
Avoiding Potential Penalties
Preparing and filing your forms accurately and on time is crucial to avoid penalties. Late, inaccurate, or improperly submitted filings can result in penalties. Start preparing now to ensure everything is in order by the January 31 deadline.
For more information on potential penalties, including a breakdown of fees and interest, visit the Information Return Penalties page on IRS.gov.
Final Tips
- Double-check the accuracy of your forms before submitting.
- Consider e-filing to streamline the process and reduce the risk of errors.
- If you anticipate needing more time, request an extension early but remember it doesn’t apply to furnishing statements to recipients.
When you stay ahead of these deadlines and use the resources provided by the IRS, you can guarantee a smoother filing process and avoid unnecessary penalties. If you have any questions or need assistance, don’t hesitate to reach out. Make sure to submit your forms as soon as possible to stay compliant and stress-free!
I’ll see you next time.
