The IRS is reminding employers and business owners of a very important upcoming tax deadline. All wage statements and independent contractor forms must be filed by the January 31st deadline. The early deadline means that business owners and employers need to start preparing those statements in order to have them in by the deadline.
Before the Protecting Americans from Tax Hikes (PATH) Act, employers had a longer period to file the forms. The 2015 law made it a permanent requirement for employers to file their copies of Form W-2, Wage, and Tax Statement and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31st.
The early filing date is to help the IRS detect refund fraud more easily and faster than before. The IRS will be able to use the filed forms to verify income that individuals report on their tax returns. Employers can avoid penalties by filing the forms on time and without errors. You can e-file the forms so that it is done quickly and is accurate.
Employers can start the process by verifying employee’s personal information, such as addresses and Social Security numbers. Employers should also make sure that their company’s account information is current and up to date with the Social Security Administration before the filing deadline. If you are needing paper W-2 Forms, you need to order those ahead of time. Automatic extensions to file Form W-2 are not available. The IRS only grants extensions for very specific reasons.
If you need help with your end of year accounting and tax needs, Polston Tax can help. Our accountants and tax preparers know when the deadlines are and what it takes to complete all the different forms to stay in compliance with the IRS. You can give us a call at 844-841-9857 or you can click below to schedule your free consultation!