Is Your Business Prepared for the New 2017 Filing Deadlines For W-2 and 1099 Forms?
A reminder to employers and small businesses of the new January 31 filing deadline for Form W-2. A new federal law, aimed at making it easier for the IRS to detect and prevent refund fraud, will accelerate by a month the W-2 filing deadline for employers from February 28 to January 31.
The Protecting Americans from Tax Hikes (PATH) Act, enacted last December, includes a new requirement for employers. They are now required to file their copies of Form W-2, submitted to the Social Security Administration, by January 31. The new January 31 filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors. As it relates to Form 1099-MISC, the new filing deadline will only impact filers that report nonemployee compensation payments in box 7.
In the past, employers typically had until the end of February, if filing on paper, or the end of March, if filing electronically, to submit their copies of these forms. Also, there are changes in requesting an extension to file the Form W-2. Only one 30-day extension to file Form W-2 is available, and this extension is not automatic. If an extension is needed, a Form 8809 Application for Extension of Time to File Information Returns must be completed as soon as you know an extension is necessary, but by no later than January 31.
The new accelerated deadline is intended to help the IRS improve its efforts to spot errors on taxpayer filed returns. Receiving W-2s and 1099s earlier will make it easier for the IRS to verify the legitimacy of tax returns and properly issue refunds to taxpayers eligible to receive them. According to, the IRS it will make it easier to release tax refunds more quickly.
The January 31 deadline remains unchanged and has long applied to employers furnishing copies of these forms to their employees. We anticipate the new deadline will increase your businesses workload. To minimize stress, we recommend the following steps:
The professionals in our office can answer any questions you may have about the new filing deadlines and how they will impact your business, call us today at 858.481.7702
Taxpayers rejoice – after years of advocating for change, congress has finally passed legislation that modifies the deadlines of several common tax returns. The new due dates will go into effect for the 2017 Tax Filing Season (Tax year 2016). Many of our Law Firm clients will be positively affected by these changes.
The new dates have been a long time coming for taxpayers who have struggled to file accurate returns in a timely manner. Their tax advisors would often miss deadlines when forms (such as Schedules K-1,) would arrive behind schedule. The illogical flow of information not only impacted the punctuality but also the accuracy of returns. Tax advisors would often resort to using estimates because information from a flow through business was not available before the taxpayer’s income tax return was due.
With the modified dates, it is expected that owners of partnerships will be able to file their tax returns without requesting an extension. Below is a summary of the changes.
For tax years that begin after December 31, 2015, returns of calendar year
The new law also modifies the time allowed for extension of time to file for the following returns:
There may be initial pushback, but looking at the bigger picture the new filing and extension dates will improve the flow of information for both advisors and clients.
If you have questions about the new tax return due date changes, please contact one of our professionals today.
