Employers Must File Forms W-2 by Jan. 31 This Year

Sayed_Block_Profile

All material below original published by IRS. For help with tax law for personal or business matters, call Kevin M Sayed, J.D., LL.M. taxation at 252-321-2020.

Issue Number:  IR-2017-13

The Internal Revenue Service today reminds employers that the due date for filing Forms W-2, the Wage and Tax Statement for their employees for calendar year 2016, is now Jan, 31, 2017. Also, those who hire contract workers and have to file Form 1099-MISC now must file by Jan. 31.

The new deadline applies whether an employer e-files or files a paper Form W-2. Employers who pay an employee $600 or more for the year must file a Form W-2 for each employee with the Social Security Administration.

The new deadline is part of legislation signed into law at the end of 2015 to combat identity-theft related refund fraud.

The Social Security Administration encourages all employers to e-file their Forms W-2 by using its Business Services Online.  Employers who file paper Forms W-2 should file them with the Social Security Administration, Data Operations Center, Wilkes-Barre, PA 18769-0001.

E-filing can save time and effort and helps ensure accuracy. Employers must e-file if they file 250 or more Forms W-2 or W-2c. Employers who are required to e-file but fail to do so may incur a penalty. E-filing can save time and effort and helps ensure accuracy.

The IRS projects that employers will file more than 250 million Forms W-2 this year; the vast majority will be e-filed.

The new rule does not affect the filing deadline for other types of Form 1099 or Forms 1097, 1098, 3921, 3922, or W-2G, which are filed on paper by Feb. 28, 2018, or by April 2, 2018 if filed electronically.

Get Ready to Pay $500 More in Taxes?

Sayed_Block_Profile

Check out this link below to an article published by Bloomberg and Yahoo Finance. If you are a small business owner and want to learn about ways to save on increases in the social security tax and payroll taxes, and how to save on taxes in general as a small business owner, contact Kevin Sayed, J.D., LL.M. Taxation, at 252-321-2020 with Colombo Kitchin Attorneys. Over 12 million Americans will pay more tax this year on the exact same amount of earning as last year.

https://www.yahoo.com/finance/news/ready-pay-500-more-taxes-090016482.html

IRS to Strengthen Anti-Fraud Effort with Form W-2 Verification Code

Sayed_Block_Profile

If you have questions about filing your 2017 taxes, or questions about how to report income, deductions or gifts, contact Kevin M. Sayed at Colombo Kitchin Attorneys, 252-321-2020. All material below originally published by the Internal Revenue Service.

IRS, Partners Move to Strengthen Anti-Fraud Effort with Form W-2 Verification Code

When you get your Form W-2 in early 2017, you may notice a new entry – a 16-digit verification code. This is part of an effort conducted by the Internal Revenue Service to protect taxpayers and strengthen anti-fraud efforts.

The expanded use of the W-2 Verification Code is a way to validate the wage and tax withholding information on the tax form. For taxpayers, taking a moment to add this code when filling out their taxes helps the IRS authenticate the information. This in turn helps protect against identity theft and unnecessary refund delays.

For 2017, the IRS and its partners in the payroll service provider industry will place the code on 50 million Forms W-2. This is up from two million forms in 2016.

The IRS, state tax agencies and the nation’s tax industry – partners in combating identity theft – ask for your help in their efforts. Working in partnership with you, we can make a difference.

That’s why we launched a public awareness campaign that we call Taxes. Security. Together. We’ve also launched a series of security awareness tips that can help protect you from cybercriminals.

One area where we need your help is with the W-2 Verification Code. If your W-2 contains the code, please enter it when prompted if using software to prepare your return. Or, please make sure your tax preparer enters it.

If the code is not included, your tax return will still be accepted. However, initial results indicate the verification code shows promise in reducing tax fraud. It helps IRS processing systems authenticate the real taxpayer. Identity thieves sometimes file false Forms W-2 to support their fraudulent tax returns.

This initiative will affect only those Forms W-2 prepared by payroll service providers. The verification code’s location on the form will vary. Enter the code on electronically filed returns only. Most software providers will prompt you to enter the code.

To learn additional steps you can take to protect your personal and financial data, visit Taxes. Security. Together. Also read Publication 4524, Security Awareness for Taxpayers.

Share this tip on social media — IRS, Partners Move to Strengthen Anti-Fraud Effort with Form W-2 Verification Code. http://go.usa.gov/x9r7F #IRS