Avoid fines: February 1 is the deadline for employers to submit some forms

Avoid fines: February 1 is the deadline for employers to submit some forms

The Internal Revenue Service reminded employers that they must file some forms and other wage statements by February 1, 2021, to avoid penalties and help the IRS prevent fraud. What forms are we talking about?

A 2015 law made it a permanent requirement that employers file copies of their Form W-2, Wage, and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31, though this upcoming tax season the due dates have been set for Monday, February 1.

That is also the date the Forms W-2 are due to workers, and for Forms 1099-MISC, Miscellaneous Income and Forms 1099-NEC, Nonemployee Compensation. Various other due dates related to Form 1099-MISC, including dates due to the IRS, can be found in the instructions PDF on IRS.gov.

To submit all documentation in order, employers must begin to verify or update their employees' data, such as:

Names
Addresses
Social security numbers
Taxpayer personal identification numbers

Helping fraud detection

According to the IRS website, the normal January filing date for wage statements means that the IRS can more easily detect refund fraud by verifying income that individuals report on their tax returns, and employers can help support that process, and avoid penalties, by filing the forms on time and without errors.

As for many other procedures, the IRS recommends e-file as the quickest, most accurate, and convenient way to file these forms.

The IRS has recommended e-file as the best way to file these forms

Starting early can also help businesses avoid problems later. Besides updating their employee's data, they should also ensure their company's account information is current and active with the Social Security Administration before January.

Automatic extensions of time to file Forms W-2 are not available and the IRS will only grant extensions for very specific reasons. Details can be found on the instructions for Form 8809, Application for Time to File Information Returns page at IRS.gov.

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