New 1099, W-2 and W-3 deadlines for 2016 - Less time to file on time!


January 31, 2017 – That’s the new deadline for 1099, W-2 and W-3 forms to be sent out to recipients and to the IRS.

The old IRS deadlines in February are no more. Get your books in order now to make everything easier on you after the New Year. As part of a congressional appropriations bill at the end of 2015, this deadline has been known since last year, but as of the time of this writing, we are about three months away from it being a solid reality.

This law was enacted to enable the IRS to match up 1099 and W-2 forms to tax returns filed in February. In the past, there was a window between the end of January (when the forms were due to vendors/employees) and the end of February (when the forms were due to the IRS). This window was where a majority of fraudulent tax returns were filed when it was difficult for the IRS to authenticate tax return information.  By closing the window, the IRS is able to verify tax return information with greater accuracy.

Because of the earlier filing deadline, it is a good idea to be sure you have a W-9 filled out by all of your 1099 recipients.  Best practices would be to have a W-9 on file before working with each 1099 recipient.

A few quick notes about some penalties related to the filing of 1099s:

  • If you fail to file by January 31, 2017, but by February 28, 2017 you will owe $50 per each late filed 1099
  • If you file after February 28, 2017, but by August 1, 2017, you will owe $100 per each late filed 1099. 
  • Each 1099 filed after August 1, 2017 is subject to a $260 penalty.
  • If you are sending out over 250 1099s, you must file them with the IRS electronically.  Failure to do so will be a penalty of $100 for each 1099 over 250.

Joe DeVitis | 10/05/2016

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