The IRS has published on its website a notice reminding businesses of the changes in due dates for information returns this year along with more significant penalties (Increase in Information Return Penalties, IRS Website).
Last year, as part of the Protecting Americans Against Tax Hikes Act (PATH), Congress moved forward the due date for certain information returns and increased the penalties applicable to such returns. To assist the IRS in combating refund fraud, the due date for selected information returns to be filed with the government is moved forward to January 31.
The notice provides:
Beginning with the 2016 tax year, the due dates for filing Forms W-2 and W-3 with SSA will be January 31 of the following year, whether you file using paper forms or electronically. Form 1099-MISC will be due to the IRS by January 31 of the following year when you’re reporting non-employee compensation payments in box 7. Otherwise, file by February 28 if filing by paper, March 31 if filing electronically.
Penalties for late filing or providing forms late to recipients have also been increased. The tables below summarize the penalties.
The notice reminds taxpayers that a separate penalty applies to the failure to provide those forms to recipients and to file them with the taxing agency. The IRS notes “For example, if you fail to file a correct Form 1099-MISC with the IRS and don’t provide a correct Form 1099-MISC statement to the payee, you may be subject to two separate penalties.”