It is important to file your W-2’s with IRS on time to avoid incurring penalties. According to the General Instructions for Forms W-2 and W-3, failure to file correct information returns by the due date, without reasonable cause, you may be subject to a penalty. The penalty applies if you:
- Fail to file timely,
- Fail to include all information required to be shown on Form W-2,
- Include incorrect information on Form W-2,
- File on paper forms when you are required to e-file,
- Report an incorrect TIN,
- Fail to report a TIN, or
- Fail to file paper Forms W-2 that are machine readable.
The amount of the penalty is based on when you file the correct Form W-2. The penalty is:
$30 per Form W-2 if you correctly file within 30 days (by March 30 if the due date is February 28); the maximum penalty is $250,000 per year ($75,000 for small businesses).
$60 per Form W-2 if you correctly file more than 30 days after the due date but by August 1, 2013; the maximum penalty is $500,000 per year ($200,000 for small businesses).
$100 per Form W-2 if you file after August 1, 2013, or you do not file required Forms W-2; the maximum penalty is $1,500,000 per year ($500,000 for small businesses).
You can avoid these penalties by E-Filing your W-2’s using ExpressTaxFilings to file by the April 1, 2013 deadline. If you choose to paper file, the deadline is February 28, 2013.
ExpressTaxFilings is here to make taxes less taxing. If you have any questions about W-2 E-Filing , contact the Express Tax Support Center in Rock Hill, SC at 803-514-5155 between the hours of 8am – 6pm EST, Monday through Friday or email support@ExpressTaxFilings.com.