News / Article

Compressed Deadlines And Higher Penalties For Forms 1099 And W-2

Source: forbes.com - Nov 15, 2016

Have you been lax in the past about issuing 1099s, realizing the IRS rarely, if ever, penalized you for sending them in late? That permissive view of 1099 and W-2 filing is over. Making matters worse, next year’s filing deadlines will be compressed. Fortunately, there is time to prepare before the close of 2016 to ensure smoother, speedier filing in 2017.

Penalties doubled last year

The Trade Preferences Extension Act of 2015 included a substantial increase in failure-to-file and late filing penalties for information returns such as Form 1099 and W-2 filed after December 31, 2015, effectively doubling the amounts.

A “failure” may include failing to file the forms by the due date, failing to furnish a copy of the form to the recipient, failing to provide all required information, and failing to provide correct information...

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Category: General Business