Changed Deadlines for Tax Forms 1099-MISC, W-3, & W-2

Deadline change for 2016 Tax Form 1099-MISC

tax-formThe new filing deadline for 2016 Form 1099-MISC with amounts in Box 7 (non-employee compensation) is now January 31, 2017 with the 2016 Form 1096.  There is a new box to check on the 2016 Form 1096 when 1099-MISC with amounts in Box 7 are attached to the 1096. This deadline is nearly a month earlier than the previous February 28 date.

Recipient copies of 1099′s are to be provided to recipients by January 31. (No change for 2017.)

Deadline change for 2016 Form W-3 and Form W-2′s
The new filing deadline for 2016 Form W-3 and Form W-2′s (Copy A) with the Social Security Administration is now January 31, 2017, also nearly a month earlier than the previous February 28 deadline.

Employee copies of W-2′s are to be provided to recipients by January 31.  (No change for 2017.)

The due date changes for filing 2016 W-3′s and certain 2016 1096′s is intended to give the IRS more time to process employer - business provided data in order to coordinate with the issuance of tax refunds and reduce fraudulent tax filing and identity theft issues.

Potential for Penalties
Not providing a correct statement (intentional disregard) carries a penalty of $530 per 1099.  Late filing of mandatory 1099′s could lead to penalties ranging from $50 to $260 per 1099 based on when the correct information return is filed.  This may become an issue for clients with the changes to due dates and as the IRS steps up its 1099 compliance.

What clients can do now to alleviate compliance issues in January 2017
Review your records now to see who will need a 1099 for 2016 and verify they have all the information needed (FEI#, name, current address, and federal tax classification) to file accurate returns. This would include sub-contractors, attorneys, etc.  A Form W-9 can be found on the IRS website and provided to potential 1099 recipients to get the necessary information so returns can be processed in a timely manner.  This would be particularly helpful for recipients who will receive a 2016 1099-MISC with non-employee compensation since they will be affected by the change in filing deadlines.

The best advice we can offer is: “Don’t go it alone.” Ciuni & Panichi is here to help you make the right financial decisions for yourself and your employees.   For more information and if you have questions, contact Sue Latine at 216.831.7171 or slatine@cp-advisors.com.

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