Filing Deadline Approaching for W-2 and Certain 1099-MISC Forms

Synopsis

The IRS recently issued a reminder to employers and other businesses that 2017 W-2 forms (Wage and Tax Statement) and 2017 1099-MISC forms (Miscellaneous Income) must be filed by January 31, 2018, pursuant to the Protecting Americans from Tax Hikes (PATH) Act of 2015. 

Issue 

Form 1099-MISC is used to report nonemployee compensation, which typically includes fees for professional services, commissions, and other forms of payment to someone other than an employee.  These payments are reported in Box 7 of the Form 1099-MISC.  Therefore, only Forms 1099-MISC with entries in Box 7 must be filed by January 31.  For Forms 1099-MISC that do not have entries in Box 7, the deadline remains February 28 for paper filings, or March 31 for electronic filings.

Several states require businesses to file copies of Form W-2 with the state’s taxing authority.  While some of these states had January 31 due dates prior to the federal law change, states that had later due dates have since adopted the January 31 deadline. 

To assist employers with filing, the IRS suggests the following tips: 

• Verify employees’ information
• Ensure that the company’s account information is current and active with the Social Security Administration before January
• Early ordering of paper Forms W-2, if such forms are needed

The IRS cautions that an extension of time to file Forms W-2 is no longer automatic. Extensions will only be granted for specific reasons. 

What Does CohnReznick Think? 

Filers of Form 1099-MISC should be sure to have all W-9 forms in place before year end.  Taxpayers should accumulate their 1099 and W-2 data immediately after December 31 in order to ensure that their required filings are prepared, reviewed and filed with the tax authorities before the required due date. If you utilize a service provider to assist with this process, be sure to provide them with the requisite information in plenty of time for them to prepare the forms and efile them before the accelerated deadline.

Contact

For more information, please contact Don Stevens, Managing Partner, Private Client Services, at Don.Stevens@CohnReznick.com or at 959-200-7227

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