The IRS is constantly making small tweaks and changes to the filing process. These are due to either new government mandates, or in an effort to make filing easier.
Earlier this year, the PATH Act of 2015 went into effect, and it includes an accelerated timeline for businesses to report W-2s, W-3s and 1099s.
January 31, 2017 is the new deadline for companies to get all forms to employees, independent contractors and to the SSA.
This new deadline means there is no longer extra time to handle errors, and there is no longer any incentive to file early.
The IRS wants to get these documents in earlier, before they start giving refunds, to ensure greater accuracy and to prevent refund fraud. Now, the IRS will have enough time to receive and process tax information as reported by the employer before reviewing individual taxes.
Human resources, payroll and accounts payable departments should plan to start Tax Year 2016 a littler earlier.
Make sure you have updated versions of all forms prepared well in advance. Update your year-end checklist with the new deadline, and then make additional adjustments as needed.
It’s also important to take conscious steps to prevent errors and avoid steep penalties. Starting Tax Year 2016, the IRS will only allow one 30-day extension for additional time to file your W-2s. Be sure to complete thorough, quarterly reviews of your payrolls records against Form 941. This will help you catch discrepancies before they become potential errors.
Small and mid-sized businesses often overlook critical changes such as the new filing deadline. At Fricke & Associates, we make sure our clients don’t miss these vital, money-saving updates. Contact us at (770) 216-2226 to learn more about how we can help with your business accounting needs.