With everything you encounter in life, there are rewards if you complete a task and penalties if you don’t. The IRS is no exception. Failure to file or filing your 1099 forms and W-2s will cost you and the punishment is pretty serious.
Filing a W-2 a day late probably won’t cost you all that much, but file it thirty days late and you may be looking at a fine of up to $30 per W-2. This fine is only counting on the W-2 being correct when it is filed too. If you file your W-2s between 30 days after the due date and August 1, the rate of penalty increases to $60 per W-2. Anything filed after August 1st, and you’re looking at $100 per W-2. The maximum penalties for these items range from $250, 000 to $1,500, 000 per year. Can your business afford that?
Filing 1099 forms is no exception. There are stiff punishments doled out for those failing to file these forms as well. With these, you’re looking at a $50 fine per unfiled form. Should the IRS believe you haven’t filed intentionally? Well then the rate increases to $100 per form or 10 per cent of the tax amount that should have been filed.
Essentially, penalties will happen both for late filing and failure to file at all. The IRS allows extensions to be granted for those having issues meeting deadlines, so they are hesitant to accept excuses from businesses that are failing to file.
Fortunately, we’re here to help! We take the hassle out of filing your tax forms so you don’t have to worry about extensions or penalties. We have the ability to e-file large numbers of W-2s and 1099s thus avoiding any punishments from the IRS. Stop by our website and check out the numerous services we offer to help you prevent penalties.