INCREASED IRS PENALTIES…AGAIN!

IRS Increases Penalties for Tax Year 2016 Information Returns (1099 / W-2)

Filers can receive up to a $520 per record penalty, or a $3+ million maximum penalty, if delivering 1099/W-2 statements & filing past the IRS published deadlines. How can that be? Add up a $260 per record penalty for the late delivery of a statement and then another $260 per record penalty for filing late. Then, just for fun, the IRS can index the penalty for inflation! For Example:

• Failure to Furnish Correct Payee Statements: $50 / $100 / $260 per payee statement depending on when you furnish the correct information returns (section 6721)
• Intentional Disregard: Any failure to provide a correct payee statement, due to intentional disregard of the requirements to furnish a correct payee statement, the penalty is at least $530 per payee statement with no maximum penalty.
• Failure to File by the Due Date: $50 per return if filed within 30 days of the deadline, $100 per return if filed by August 1st, and $260 per return if filed after August 1. Note - Jan. 31st 2017 is the new IRS filing deadline for 1099 MISC with box 7 & W-2’s (no automatic extensions will be granted)!
• Similar penalties apply for TIN/Name mismatches!

Be Smart! Avoid Penalties By:

• Creating a Bulk TIN Matching Service Bureau appointment today. Stay ahead of IRS penalties by verifying & updating your TIN/Name combinations before filing with the IRS!
• Schedule a Service Bureau print/mail/eFile appointment ahead of time! Don’t wait until the last minute, call (888) 776-1099 to schedule your January Service Bureau appointment for printing, mailing, and/or eFiling 1099 & W-2 returns.
• Use TINCheck to validate all new vendor accounts, in real-time, while they are being entered! Want more compliance? Use TINCheck’s EIN lookup feature and/or the OFAC, DMF, and other lists via the online portal or via the API. Call TINCheck at (866) 452-3467 with any questions!