Beginning with the 2016 tax year, the due dates for filing Forms W-2, Wage and Tax Statement, and W-3, Transmittal of Wage and Tax Statements, have been moved up from the last day of February to January 31, 2017.
In addition, Form 1099-MISC is now due to the IRS by January 31, 2017 when a business is reporting nonemployee compensation payments. Otherwise, a business has until February 28 if filing by paper, and March 31, if filing electronically.
The penalties for late filing these returns have also significantly increased. For small businesses, with gross receipts of $5 million or less, would experience a per return penalty of $50 in comparison to $30 per return in prior years for returns filed less than 30 days late. For returns from 30 days late to August 1, the penalty increased from $60 to $100 per return. Returns that are filed after August 1, the penalty increased from $250 to $530 per return.
We, at D.K. Arndt, recommend that these payments be determined earlier to help ensure forms are timely filed.