Accelerated Deadlines for Filing 2016 1099s and W-2s

With the 2016 filing season drawing near, we wanted you to know that the Protecting Americans from Tax Hikes Act of 2015 has accelerated certain deadlines for filing information returns for hired workers. Specifically, beginning with the 2016 calendar year, the deadline for submitting Form 1099-MISC and Form 1096 to the IRS for non-employee compensation is now January 31 of the year after the calendar year to which the forms relate (i.e., January 31, 2017) for this filing season. This date change also applies to Form W-2 and Form W-3, which must be submitted to the Social Security Administration by January 31. These accelerated deadlines apply irrespective of whether the information returns are filed electronically. These changes are being made to help IRS detect and prevent fraud.

The law allows for one non-automatic extension to file Form W-2 with the SSA while one automatic 30-day extension and potentially one additional 30-day non-automatic extension is available to file Form 1099-MISC with the IRS. Both the extension to file Form W-2 and the non-automatic extension to file Form 1099-MISC can be requested by filing Form 8809 with the IRS. You should also know that many, but not all, states that require returns for employee wage information and nonemployee compensation have adopted the accelerated federal due date.

If you would like to discuss these changes or obtain further information on this subject, such as the deadlines for submitting the information returns to appropriate authorities in your state, please contact your tax advisor.