As tax season approaches, the IRS is reminding businesses to file wage statements and specific information returns by January 31. Meeting the deadline and avoiding errors not only helps businesses and recipients steer clear of penalties but also aids the IRS in combating fraud by verifying income details more efficiently.
Key Deadlines for January 31
The January 31 deadline applies to:
- Employers filing Form W-2 (Wage and Tax Statement) and Form W-3 (Transmittal of Wage and Tax Statements) with the Social Security Administration.
- Payers submitting Form 1099-NEC (Nonemployee Compensation) to the IRS.
Additionally, this is also the last day to:
- Provide copies of W-2s, Form 1099-NEC, and other required forms to recipients. Refer to the instructions for each form to confirm due dates for recipient copies.
Benefits of E-Filing
Electronic filing is the quickest and most convenient way to submit forms accurately.
Since last year, businesses filing 10 or more information returns within a calendar year must e-file. For a full list of returns affected by this rule, see the IRS page on e-filing information returns.
The IRS also offers free e-filing for the 1099 series through the Information Returns Intake System (IRIS). This online tool allows users to prepare forms, make corrections, and request automatic extensions.
Requesting an Extension
Businesses can request a 30-day extension to file W-2s or certain information returns by submitting Form 8809 (Application for Extension of Time to File Information Returns) by January 31. However, approvals aren’t automatic.
It’s important to note that filing Form 8809 does not extend the deadline to provide wage statements or information returns to employees and payees. Requests to extend this deadline must be faxed to the IRS in letter form by January 31. For details, visit the Form 8809 information page on IRS.gov.
Avoiding Penalties
Employers and payers should begin preparing their filings now to ensure forms are accurate and submitted on time. Missing the deadline, submitting incorrect information, or filing improperly may result in penalties.
For more details, including penalty breakdowns and potential interest charges, check the Information Return Penalties page at IRS.gov.
By staying ahead of deadlines and using tools like e-filing, businesses can simplify their tax responsibilities and avoid unnecessary issues.
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