In a news release, IRS has reminded employers and small businesses of the new January 31 filing deadline for Forms W-2 and Form 1099-MISC reporting non-employee compensation (Box 7).
This change was included in The Protection Americans from Tax Hikes (PATH) Act enacted late last year. This provision will allow the IRS to match W-2 and 1099-MISC information that has been reported by employers to the tax returns as they are being processed.
Effective for Forms W-2 relating to calendar years after Dec. 18, 2015 (e.g., filed in 2017), Forms W-2 (and a number of other forms, including certain Forms 1099-MISC) must be filed on or before January 31 of the year following the calendar year to which such returns relate. Before the Path Act change, Form W-2 had to be filed by the last day of February (March 31 for electronically filed forms. (Forms 1099 also had to be filed by the last day of February (March 31 for electronically filed forms).) These returns are no longer eligible for the extended filing date for electronically filed returns. (Code Sec. 6071(c), as amended by PATH Act Sec. 201(a)).
Form 1099-MISC returns for other types of payments, such as rent payments, are still due on February 28th, however, it may be more practical to file all of the 1099-MISC returns at the same time.
While most payroll companies are aware of these new deadlines, you will need to make sure you get your information to the payroll company timely. If you prepare Form W-2s or Form 1099-MISCs internally please be aware of this change and plan accordingly. Filing the forms late could result in significant penalties. For clients that Howe, Riley and Howe prepares your W-2s and / or Form 1099-MISCs, please be sure to get your information into us as soon as possible after yearend, as this is a very tight deadline.
If you need assistance with complying with these new deadlines, or have further questions, please contact our office.