Accelerated Filing Deadline for Forms W-2 and 1099

The IRS reminds employers and small businesses of the new filing deadline for Form W-2 reporting wages and 1099-MISC reporting non-employee compensation. This new deadline was enacted by the PATH Act to help the IRS verify the legitimacy of tax refunds before issuing them. Beginning with the 2016 forms (e.g., those filed in 2017), Form W-2 and Form 1099-MISC must be filed with the Social Security Administration or IRS, respectively, by January 31, rather than the prior deadline of February 28 (March 31 if filing electronically). Copies must still be provided to employees and payees by January 31. Also, beginning with the 2016 forms, only one 30-day extension to file Form W-2, which isn’t automatic, will be available.

Certain Tax Refunds to Be Delayed

The IRS reminds taxpayers that, due to a change in the PATH Act, the IRS must hold tax refunds for any tax return claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) (the refundable portion of the child tax credit) until February 15. Under IRC Sec. 6402(m), the IRS must hold the entire refund, not just the portion related to the EITC or ACTC. This change is aimed at detecting and preventing refund fraud and applies to credits or refunds made after 12/31/16.