Starting in 2017 employers and small businesses face an
earlier filing deadline of January 31 for Forms W-2. The new January 31 filing
deadline also applies to certain Forms 1099-MISC reporting non-employee
compensation such as payments to independent contractors. Also of note is that
the IRS must also hold some refunds until February 15.
A new federal law, aimed at making it easier for the IRS to
detect and prevent refund fraud, will accelerate the W-2 filing deadline for employers
to January 31. For similar reasons, the new law also requires the IRS to hold
refunds involving two key refundable tax credits until at least February 15
(also new). Here are details on each of these key dates.
New January 31 Deadline for Employers
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, as well as Forms 1099-MISC.
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. In addition, 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 necessary, 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 January 31. Please carefully review
the instructions for Form 8809, and call the office if you need more
information.
The new accelerated deadline will help the IRS improve its
efforts to spot errors on returns filed by taxpayers. Having these 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. In
many instances, this will enable the IRS to release tax refunds more quickly
than in the past.
The January 31 deadline has long applied to employers
furnishing copies of these forms to their employees and that date remains
unchanged.
Some Refunds Delayed Until at Least
February 15
Due to the PATH Act change, some people will be getting
their refunds later than they have in the past. The new law requires the IRS to
hold the refund for any tax return claiming either the Earned Income Tax Credit
(EITC) or Additional Child Tax Credit (ACTC) until February 15.
Furthermore, by law, the IRS must hold the entire refund,
not just the portion related to the EITC or ACTC.
Even with this change, taxpayers should file their returns
as they normally do. Whether they are claiming the EITC or ACTC or not,
taxpayers should not count on getting a refund by a certain date, especially
when making major purchases or paying other financial obligations. Typically,
the IRS issues more than nine out ten refunds in less than 21 days; however,
some returns may be held for further review.
Please call if you have any questions about the earlier
filing deadlines for Forms W-2 or 1099.
Www.SchaumburgCPA.Info is
an official blog of Manen Kothari CPA. To ensure compliance with the
requirements imposed by the IRS, we inform you that any U.S. federal tax advice
contained in this communication (including any attachments) is not intended or
written to be used, and cannot be used, for the purpose of (i) avoiding
penalties under the Internal Revenue Code or (ii) promoting, marketing, or
recommending to another party any transaction or matter addressed herein. One
should consult their tax advisor before any of the information contained
herewith applied to their individual tax situations. SK Tax Associates, Schaumburgcpa.info,
or Manen Kothari cannot be held responsible for any general information stated
above.
Manen
Kothari, CPA serves in Schaumburg, Mount Prospects, Glendale Heights, Bartlett,
Barrington and Chicago as well as other areas of Rolling Meadows, Naperville,
Des Plaines, Elk Grove Village, Skokie and Addison,
Downers
Grove CPA. We are also efficient in showing you the detailed deductions
that can help you to limit your tax liabilities for the next few years to come
as long as we are at union with your business.
Contact us now: 847.524.0001
For More Information Visit: http://schaumburgcpa.info/
No comments:
Post a Comment