For all those business owners, don’t forget about the date January 31, 2017, the new due date for filing forms W-2.
Under a new law, the Protecting Americans from Tax Hikes (PATH) Act, the new filing deadline for employers to submit forms W-2 to the Social Security Administration, will be January 31. This new filing deadline also applies to certain forms 1099-MISC reporting non-employee compensation such as payments to independent contractors.
The January 31 deadline for employers to furnish copies of tax forms to employees is still the same.
W-2 Deadline Change
The new law likewise changes the rules for extending time to file forms W-2. Under the new rules, you can only request one 30-day extension to file form W-2, and it is not automatic. If you, as an employer, need an extension, you have to file form 8809, Application for Extension of Time to File Information Returns (downloads as a pdf). Complete this form as soon as you know an extension is necessary, but no later than January 31.
Before, employers had until the end of February (paper filing), or the end of March (electronic filing), to turn them in. However, the gap between that due date and the beginning of the filing season made it hard for the IRS to match up forms W-2 with tax returns requesting refunds, which in turn increased fraud. The new deadline, a change the IRS wanted to make for a long time, makes it easier to verify the legitimacy of tax returns and give refunds.
Other taxpayers could hear a different story. The PATH Act requires the IRS to delay refunds involving two key refundable tax credits, the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC), until at least February 15. This new law requires the IRS to hold the entire refund for any taxpayer claiming either of these credits until February 15.
The IRS reminds taxpayers they should still file their returns as they always do. However, have some patience. With these changes, delays are sure to come. Normally, the IRS issues more than nine out ten refunds in less than 21 days. Expect delays as returns are held for further review.
Stay informed about tax changes by calling Scott A. Kunkel, CPA PC today in North Richland Hills at 817-498-1040.
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