The due date for filing Tax Year 2022 Form W-2 and other wage statements (including Forms W-2AS, W-2CM, W-2GU, W-2VI, W-3SS, W-2c, and W-3c) with the SSA were January 31, 2023. This deadline was applicable for filing under paper forms or electronically. Anyone with one or more employees to whom payments ($600 or more in wages even if there was no withheld income, social security, or Medicare tax) are made must file forms W-2 and W-3. This includes non-cash payments also for the employee’s services in the trade or business during 2022. Anyone required to file Form W-2 must file Form W-3 to transmit Copy A of Form W-2. Even employers with only one household employee must file Form W-3 to transmit Copy A of Form W-2. If an error is discovered on an employee’s Form W-2 after sending it to the SSA, submit a Form W-2c, Corrected Wage, and Tax Statement. File Form W-3c, Transmittal of Corrected Wage, and Tax Statement whenever the employer files a Form W-2c with the SSA.
Extension Available for 30 Days
One can request a 30-day extension to file Form W-2 by submitting a complete application on Form 8809. However, the extension is not automatic, and it will be granted only in “extraordinary circumstances or catastrophe”.
Penalties for Failure to File
It’s important for employers to send W-2s to their employees and file them to SSA by the W-2 deadline (Jan 31, 2023) otherwise heavy penalties for late submissions or wrong information will be imposed. Penalties apply to the person or employer required to file Form W-2. The penalties apply to both paper filers and e-filers. The IRS can impose penalties for one or a combination of the below reasons.
- Failure to file correct information returns by the due date.
- Failure to furnish correct payee statements and /or Civil damages for fraudulent filing of Forms W-2.
- Failure to file and failure to furnish penalties.
Penalties for intentional disregard of filing and payee statement requirements are $580 and, have increased due to adjustments for inflation. The higher penalty amounts apply to returns required to be filed after December 31, 2022. The penalties for each information return or payee statement for the tax season 2023 are clearly stated by IRS in this link. Taxpayers will receive an IRS notice through mail about the penalties if imposed. If one likes to dispute the penalty, one can still contact the IRS explaining the reason through a formal letter. But it is advisable to engage a tax professional who can understand your situation and guide you accordingly.
Generally, an employer needs to furnish Copies B, C, and 2 of Form W-2 to their employees by January 31, 2023. The employer will meet the “furnish” requirement if the form is properly addressed and mailed on or before the due date. If employment ends before December 31, 2022, an employer may furnish copies to the employee at any time after employment ends, but no later than January 31, 2023. Employers may furnish Forms W-2 to employees on IRS official forms or on acceptable substitute forms.
IRS Audit Group is a tax audit representation firm from Los Angeles, California. The Company has a team of certified tax lawyers experienced in state tax and federal tax. Regardless of client location, the tax experts can review your audit situation and we represent the IRS on behalf of the taxpayers for a better outcome in favor of the client. Please contact us for more information. https://irsauditgroup.com/contact/
Toll-Free: (888) 300-6670
Emergency Number: (310) 498-7508