Information returns, including W-2s and 1099s, are an important piece of year-end planning. If these forms are not filed correctly, there can be substantial penalties for your organization.
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 February 1, 2021 This is for both paper and electronic forms.
Employers must give Copy B and any other applicable copies to the employee by February 1, 2021.
1099-NEC
Businesses must send Copy A of Form 1099-NEC to the IRS by:
1099-MISC
Businesses must send Copy A of Form 1099-MISC to the IRS by:
Payers must provide Copy B and any other applicable copies to the recipient by February 1, 2021.
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.
Get tips for how to fill out W-2 & 1099 forms correctly the first time.
W-2 Information
1099 Information
What an Information Return Penalty Could Cost You
Information return penalties depend on when the return was due, how late it is filed 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.
Stay current on your favorite topics
Learn More
See what more we can bring to organizations just like yours.
Manufacturing Telecommunications & Electric Dealerships Energy Services Financial Institutions Healthcare Medical Practices Dental PracticesTake a deeper dive into this Insight’s subject matter.
Accounting & Finance Accounting Coach Bookkeeping CFO Services Controller Services Management Advisory Payroll Tax