Congress recently passed a law that significantly increased the penalties for errors found on FormsW-2 and 1099. Tucked into Section 806 of theTrade Preferences Extension Act of 2015, the provision means employers will have to pay greater fines for mistakes on forms they submit. This new law is for forms required to be filed after Dec. 31, 2015.
The below chart lists the penalty categories and the fine increases:
| Penalty Type | Old Amount (For errors Dec. 31, 2015 and before) |
新金额 （出于错误 Dec. 31, 2015) |
|---|---|---|
| Correction made within 30 days of required filing date | $30/return; $250,000 annual cap |
$50/return; $500,000 annual cap |
| Correction made within 30 days of required filing date for companies with gross receipts of $5 million or less | $30/return; $75,000 annual cap |
$50/return; $175,000 annual cap |
| Correction made by August 1 of the year when filing was required | $60/return; $500,000 annual cap |
$100/return; 150万美元的年度上限 |
| Correction made by August 1 of the year when filing was required for companies with gross receipts of $5 million or less | $60/return; $200,000 annual cap |
$100/return; $500,000 annual cap |
| Error made on form and failure to submit a timely correction | $100/return; 150万美元的年度上限 |
$250/return; $3 million annual cap |
| 表格和未能对具有500万美元或更低金额的公司及时提交及时更正 | $100/return; $500,000 annual cap |
$250/return; $1 million annual cap |
| Completely ignoring the error (intentional disregard) | $250/return; 没有一年一组 |
$ 500 /返回; 没有一年一组 |
The penalties will receive an inflation adjustment every five years beginning in 2017.
罚款不仅适用于向IRS提交的表格的错误，而且还适用于向雇员和承包商发送的表格。这意味着你可以仔细罚款。例如，企业完全忽略了所有10名员工的W-2上所做的错误。该业务将被罚款5,000美元，以便对IRS的形式进行错误，并且他们也可能被罚款5,000美元用于员工的表格错误，总额为10,000美元。
With such steep penalties for errors on W-2s and 1099s, it is important to fill out all forms correctly the first time. But if you do make an error, it is important to know how to correct it—and correct it quickly—to avoid higher fines.
Correcting Form W-2
Common errors on Form W-2 include incorrect amounts, withholdings, codes, names, social security numbers, addresses, or in general, ahandwritten w2.
如果您发现提交的表格W-2has an error on it, you need to file表格W-2c, Corrected Wage and Tax Statements. Along with it, you will submitForm W-3c, Transmittal of Corrected Wage and Tax Statements. Instructions on how to fill out and submit both of these forms is found in theGeneral Instructions for Forms W2 and W-3.
在您在W-2上发现错误后，您应该尽快提交这些表单。
Correcting Form 1099
How you correct a 1099 is determined by whattype of erroryou made.
错误类型1表示您使用了错误的金额，代码或复选框。纠正此类错误：
- Prepare a newIRS Form 1099. At the top of the form, check the “corrected” box.
- Completely fill out the form, but use the correct information.
- 填写新表格1096。
- Submit the new 1099 and 1096.
一个错误2型意味着你listed an incorrect payee TIN (or none at all) or an incorrect payee name. An Error Type 2 requires two new 1099s.
- At the top of the first new 1099, check the “corrected” box.
- Enter the payer, recipient, and account number information as it appears on the incorrect form.
- 对于所有金额，输入0。
- 准备第二个新的1099，但不要检查“更正”的框。包括关于此表格的所有正确信息。
- You will also need to prepare a new 1096. Completely fill out the 1096, and in the bottom margin enter either “Filed To Correct TIN,” “Filed To Correct Name,” or “Filed to Correct Return.”
- Submit the new 1099s and 1096.
As with the W-2, you should submit a纠正1099.as soon as possible.
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