With the passing of the Protecting Americans from Tax Hikes (PATH) Act of 2015, there are new filing deadlines for submitting Forms W-2 and Forms 1099-MISC for 2017 of which you need to be aware. Although the overwhelming majority of the United States Barbershop Harmony Society chapters and districts do not have W-2 employees, many file Forms 1099-MISC reflecting compensation to chapter directors, performing quartets and others.
Like last year, the new deadline for submitting Forms W-2 to employees and to the Social Security Administration (SSA) is January 31, 2018. Previously, the deadline was the end of February to file paper Forms W-2 with the SSA. If you are filing any Forms 1099-MISC, the deadline for submitting these forms with the Internal Revenue Service has also been moved up to January 31, 2018.
In addition to the accelerated filing deadlines for 2017 Forms W-2, Forms W-3, and Forms 1099-MISC, higher penalties apply for
- the failure to file correct forms by the due date;
- the intentional disregard of filing requirements;
- the failure to furnish forms to employees and subcontractors; and
- the intentional disregard of payee statement requirements.
The penalties are assessed for each W-2 or 1099 subject to failure and apply to errors as well as omissions in the recipient’s SS#, name, and amounts. Under the new rules, the maximum, per form penalty has increased from $100 to $260 per W-2 or 1099. The per failure penalty for intentionally disregarding the filing requirements has increased to $530 per form W-2 or 1099.
NOTE: Prior to 2016, extensions of time to file these forms were automatic; and even late filings were frequently overlooked. These new rules have been implemented primarily due to the increase in fraudulent tax refund claims and related ID theft. Expect SSA and IRS to impose these late filing penalties going forward.
For additional information, we would encourage you to review the applicable Instructions for Form 1099-MISC and seek professional tax assistance. A link to state tax filing deadlines and requirements can be found in an article linked here. There are websites (such as tax1099.com, 1099online.com, efilemyforms.com, and Intuit) that will e-file small quantities of 1099s reasonably easily for $3-$10 each.
As always paper forms are available on the IRS website by clicking here: irs.gov