It’s still a little early to think about filing 2016 taxes. But the IRS has announced some big changes that could affect your 1099-MISC and W-2 filings.
Please note there has not been a change to the due dates for recipient copies. Your independent contractors must receive their copies of the 1099-MISC by the usual deadlines.
The IRS also made a change to the W-2 filing deadline.
The process for W-2 extensions also has been altered. Extensions to file with the SSA are no longer automatic. For filings due on or after January 1, 2017, one 30-day extension may be requested. However an application Form 8809 must be used and a detailed explanation of why additional time is needed must be provided. The IRS has stated it will only grant extensions in cases of “extraordinary circumstances or catastrophe.” This does not affect extensions to furnish W-2 forms to employees.
Finally, penalties have increased for:
The amount of the penalty is based on when the correct Form W-2 is filed:
These higher penalty amounts apply to returns required to be filed after 12/31/15.
We are constantly monitoring government agencies for changes that could affect your 1099 or W-2 tax filings. Count on us for the latest news and updates. And thank you for being an eFile4Biz customer!