Put this on the list of the things you don't want to remember the morning you wake up from New Year's Eve.
The IRS has changed the deadline for employers to file W-2 forms to the Social Security Administration. The deadline is now January 31.
[Tweet “Mark your calendars: the new deadline for employers to file W-2 forms is now Jan 31.”]This new deadline is the result of the Protecting Americans from Tax Hikes (PATH) Act, a new law that was put in place last December to…well, to do just what it says. (Read more about the PATH Act here.)
The new January 31 filing deadline also applies to certain 1099-MISC forms that report non-employee compensation (such as payments to independent contractors, like VAs).
Why, IRS, Why?
Believe it or not, it's a good thing. Back when we had until the end of February (if filing on paper) or the end of March (if filing electronically) to submit these forms, the IRS ended up in a real crunch time, with just a few weeks to collect the country's W-2s before they started processing tax returns.
(“Aw, poor IRS…” I know, but keep reading.)
The result of this crunch period was a lot of leeway for tax fraud. The IRS has been trying to get the PATH Act passed for a long time, so that they can verify the legitimacy of tax returns and properly issue refunds to taxpayers who genuinely deserve them.
The really good news for you and me is that this will enable them to release tax refunds more quickly than in the past.
(…Though that may actually not happen for another few years. John Koskinen, the IRS Commissioner, says they'll need a little more time to get their own employees up to speed with the new deadline. Oh, government.)
So get out those calendars and slide that W-2 filing deadline up a month.
[Tweet “Get out those calendars and slide that W-2 filing deadline up to Jan. 31.”]Extensions, Extensions
I know how easy it is to hear a deadline and immediately start forming your plan to get an extension. But here's the thing:
The new PATH Act law also changes the rules for getting extensions.
Now you can only request one 30-day extension to file form W-2, and it is not automatic.
If you're an employer and you want to get an extension, you have to apply for it in advance (with this form) and…get this…file the extension by January 31.
Which means you might as well just file the forms that day, right?
Right.
It's All In How You Plan
Nothing kills the afterglow of a warm, wonderful holiday season quite like rushing to get your tax paperwork done.
So take some time today to pencil in some time this month to get your W-2s out to your peeps by January 15 and back in time to file them by January 31, and you'll be able to savor the flavor of your holiday season well into the new year.
God bless us, everyone. (Yes, even the IRS.)
