WASHINGTON, D.C. — The Internal Revenue Service (IRS) is setting the stage for the upcoming tax season with crucial reminders for employers. The IRS is underscoring the importance of the January 31 deadline for submitting wage statements and forms for independent contractors.
This deadline applies to several critical forms. Employers must file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration. Likewise, Forms 1099-MISC, Miscellaneous Income, and Forms 1099-NEC, Nonemployee Compensation, which report non-employee compensation to independent contractors, are due to the IRS on the same date.
Why does this matter? Meeting these deadlines is crucial for employers to avoid penalties and ensure accurate income verification, aiding the IRS’s efforts to combat fraud. But that’s not all. This year brings some significant changes that employers need to be aware of.
One of these changes is a new electronic filing requirement affecting Forms W-2 due in 2024. Businesses that file ten forms or more are now required to file W-2s and certain information returns electronically. This move towards e-filing is part of the IRS’s broader push to streamline and modernize tax administration, making the process more efficient and accurate.
The IRS also offers a free electronic filing service for the Form 1099 series using the Information Returns Intake System (IRIS). This online portal allows filers to prepare payee copies for distribution, file corrections, and request automatic extensions – all in one place.
However, it’s important to note that extensions to file are not automatically granted. Employers may request a 30-day extension to file Forms W-2 by submitting Form 8809, Application for Extension of Time to File Information Returns, by January 31. But remember, filing Form 8809 does not extend the due date for providing wage statements to employees. A separate extension must be filed for that purpose.
Another change to be aware of is the delay in the Form 1099-K $600 reporting threshold. For tax year 2024, the IRS plans to phase in a $5,000 threshold for reporting requirements, meaning that for 2023 and prior years, payment apps and online marketplaces are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.
As we gear up for the 2024 tax season, these reminders and changes underline the importance of timely and accurate filing. Employers play a crucial role in ensuring a smooth tax season, aiding the IRS’s efforts to verify income and fight fraud. By staying informed about deadlines and new requirements, employers can help make this tax season a successful one.
The IRS is encouraging employers and taxpayers to visit About Form W-2, Wage and Tax Statement and Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, for more information.
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