Tax season can come with a lot of headaches for employers—creating W2s and 1099s for a roster of employees and independent contractors, keeping filing deadlines straight, and keeping track of your personal taxes. Thanks to changes in tax law, the deadlines for filing Form 1099 and Form W-2 have changed. This year, you really need to be on top of it!
W-2 Filing Deadline
In the past, you were able to delay filing W-2 forms until March, but because of the Protecting Americans from Tax Hikes (PATH) Act, you now must have all of your Form W-2s filed with the Social Security Administration by January 31st. If you do not get your W-2s filed in time, there will not be an automatic extension. Instead, you will need to complete a Form 8809 Application for Extension of Time to File Information Returns and file that by January 31st. You can receive one 30-day extension.
1099 Filing Deadline
Just like with Form W-2, the former filing deadline for 1099s wasn’t until the end of March. Now, all Form 1099s must be filed by January 31st. This new filing deadline means you’ll need to be more organized and get started right away, if you haven’t already.
Why Have the Deadlines Changed?
The deadlines might seem like a hassle, but they come with good intentions from the IRS. The PATH Act is designed to help the IRS get better at spotting errors on tax returns and ensuring that all returns are legitimate. The refund process, in most cases, will be faster than it has been in the past. In two special cases, the IRS must (by law) hold the entire tax refund until February 15th. Your refund will be held if you are claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC).
The Harding Group Can Take the Stress Out of Your Tax Season
If you are ready for a tax season without pulling your hair out, trust the professionals at the Harding Group. Unlike other accounting firms, we never charge you for emails or phone calls and strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, QuickBooks training, or retirement planning, we have the expertise and years of experience to help. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, Google+, YouTube, and LinkedIn.