These penalties include late filing or missed deadlines, incorrect submission of information or missing information.
Why Information Return Penalties Occur
There are two separate penalties your business can face.
1. Penalties for not filing correct information returns may apply to you if:
2. Penalties for not providing correct payee statements may apply to you if:
Preventing Information Return Penalties from Occurring
There are different filing requirements based on what type of form you’re filing.
W-2 and W-3
Employers must send Copy A of Forms W-2 and W-3 to the Social Security Administration by January 31. This is for both paper and electronic forms.
Employers must give Copy B and any other applicable copies to the employee by January 31.
Businesses must send Copy A of Form 1099-MISC to the IRS by:
Filling out the correct information takes time. Make sure to walk through each box and ensure you have the correct information listed for that specific section.
What an Information Return Penalty Could Cost You
Information return penalties depend on when the return was due, how late it is and the size of your business based on gross receipts.
Learn more about how much these penalties will cost you.
Why Information Return Penalties Matter
These forms can’t be rushed. They take time to fill out, and there can be substantial penalties for not filling them out correctly and not submitting them to the proper parties by the necessary due dates.
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