GRAND RAPIDS, Mich., Jan. 22, 2013 /PRNewswire/ -- Are you in the middle of issuing your business' W-2 and 1099 forms for 2012? Most people understand that there are penalties for missing a deadline, or worse still, not issuing the forms at all, but many aren't aware of how pricey a little procrastination can be.
According to Greatland Corporation, a provider of W-2 and 1099 products and services for business, the IRS has continued to monitor W-2 and 1099 returns to ensure accuracy and compliance, and is strictly enforcing the penalties it applies to those who don't comply with tax requirements.
"Many 1099 and W-2 reporting penalties have doubled or tripled in the past couple years, so it is more important than ever for businesses to ensure that all wage and income filings are completed accurately and submitted on time," said Bob Nault, Greatland's CEO. "This can be challenging, given that the volume of 1099 reporting for companies has increased, and we've seen our customers under more pressure to complete their reporting correctly and on time."
Congress made the following increases to information return (W-2 and 1099) filing penalties in 2011 and they continue to apply today:
- The penalty for failing to file accurate information returns is $100 per return
- The maximum failure-to-file penalty is $1.5 million
- If corrected returns are filed within 30 days, the penalty is $30 per return
- The maximum penalty for organizations that issue corrections within 30 days is $250,000
- The penalty for filing corrections more than 30 days after the due date, but before Aug. 1, is $60 per return
- The maximum penalty for organizations that issue corrections more than 30 days past the due date, but before Aug. 1, is $500,000
For small businesses, defined as organizations with annual gross receipts of $5 million or less for the three most recent tax years:
- The maximum failure-to-file penalty is $500,000
- The maximum penalty for organizations that issue corrections within 30 days is $75,000
- The maximum penalty for organizations that issue corrections more than 30 days past the due date, but before Aug. 1, is $200,000
Grand Rapids, Mich.-based Greatland Corporation is one of the nation's leading providers of W-2 and 1099 forms and related e-filing products for business. Greatland has an extensive W-2 & 1099 fact center located on its website with answers to many of the top filing questions.
The company operates two web-based wage-reporting and filing sites for independent contractors and small business, speedEfiler.com and FileTaxes.com, which enable small and mid-size businesses to file their W-2 and 1099 forms online to Federal and State agencies, and have copies printed and mailed directly to employees or other recipients.
Greatland (www.greatland.com) is the W-2 & 1099 specialist, focused on providing guidance, products, and solutions for small to mid-size businesses and accountants. Through Greatland's subsidiaries – Greatland, Nelco, FileTaxes.com and Broker Forms – the company offers an extensive array of specialized products for business: W-2 forms, 1099 forms, W-2 & 1099 software, online filing, business checks and check writing software, presentation materials, income tax preparation supplies and software, and mortgage forms. Greatland is an employee-owned company with locations in Grand Rapids, Mich. and Green Bay, Wis. Follow us on Facebook or Twitter: @GreatlandCorp