Wednesday, September 28, 2016

Penalties Increase When You File W-2 Forms Late

You know how sometimes you’re late and that’s the worst that could happen? Like in a college course with a lenient professor or when you’re the boss and are a few minutes late to a meeting. Unfortunately - and not surprisingly - “being late” isn’t considered a punishment in and of itself with the Social Security Administration (SSA).

Instead, if you file your W-2 forms late, they’ll have you count up even more money this year to send them to give you a chance to think about what you’ve done. In previous years, the absolute most the IRS could fine you for late filing was a measly $3 million ($1 million if you’re a small business). Now, that number can get upwards of $3,193,000, or $1,064,000.

Keep in mind that you could be subject to this penalty if you:
  • Fail to file your W-2s on time,
  • Fail to include all the required W-2 information in your return,
  • Include incorrect information in your W-2 return,
  • File on paper when you’re required to e-file,
  • Report an incorrect TIN (so like an SSN or EIN),
  • Fail to report a TIN at all, or
  • Fail to file paper W-2 Forms that are machine readable.
There is a small silver lining: if you have reasonable cause for why you were late or incorrect in your filing, the IRS will work with you to get your W-2s filed correctly rather than penalize you. So best start preparing a better excuse than “the dog ate my information returns” because these are the fees you’re looking at for late or incorrect W-2 filing:
  • $50 per W-2 Form if you file correctly within 30 days of your due date
    • Maximum penalty: $532,000
    • Maximum penalty for small businesses: $186,000
  • $100 per W-2 Form if you file correctly more than 30 days after your due date but before August 1
    • Maximum penalty: $1,596,500
    • Maximum penalty for small businesses: $532,000
  • $260 per W-2 Form if you file after August 1 or don’t file your returns or corrections at all
    • Maximum penalty: $3,193,000
    • Maximum penalty for small businesses: $1,064,000

Now you see why it’s such a big deal to have your W-2 Forms filed on time, especially since that the deadline to complete and submit your W-2 return with the SSA has changed. So it’s a good thing you’ve found your way to ExpressIRSForms! Our program makes e-filing your W-2 Forms as fast and simple as possible. Sign up today to get started and set up your account in preparation for the upcoming tax season!

And if you have any questions about the upcoming tax season or e-filing your W-2 Forms, just give us a call! We’re available by phone (704-684-4751) and live chat Monday through Friday, 9:00 a.m. to 6:00 p.m. EST. And we also offer 24/7 assistance by email at!

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