Government agencies announced a new schedule for filing W-2’s. As part of the new budget deal just signed into law, the IRS and Social Security Administration will now require all businesses to submit the employer copies of the W-2 and the W-3 to the SSA by Jan. 31. While the employee copy still needs to be issued by Jan. 31, previous required procedures allowed businesses to file employer paper forms by Feb. 28 and electronic forms by March 31.
IRS fraudulent tax refunds totaled close to $3 billion in 2014. The administration hopes that this new deadline will allow the IRS more time to verify reported income before it issues taxpayer refunds as indicated on their tax return thus reducing fraudulent tax refunds. Under the old system, according to the IRS and the SSA, administrators did not get around to finish reviewing W-2 reported income and comparing it to individual tax returns until sometime in July.
The Advi$or wonders why the IRS did not just simply take more time to review returns and W-2’s before it issued refunds. We also advise that this new system will not allow time for employees and employers to review W-2’s for errors and omissions before final copies are sent into the SSA. This review period was beneficial in that it increased the likely hood that employees received accurate W-2’s and, just as importantly, the SSA received accurate W-2/3 reports.
The new filing rule will go into effect for 2016 W-2’s.
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