If you own a business and prepare payroll taxes and/or have independent contractors, when you get ready to file the 2016 W2s and 1099MISCs, be aware that the rules have changed.

The IRS is trying to prevent identity theft and so is trying to get information sooner so items can be looked over quicker. So they have changed the filing date for W2s (and some of their equivalents) and forms 1099MISC when line 7 is filled out. In the past the employees and independent contractors were supposed to receive their forms by January 31, and you would file the W2s with the Social Security Administration and the 1099s with the Internal Revenue Service by the end of February. Now everything has to be filed by the end of January starting January 1, 2017.

There is still a 30 day extension to file these forms that you can file on form 8809; however in the past you could get a 30 day automatic extension (till the end of March). This “automatic” extension has disappeared! In 2017 you can file a 30 day extension until the end of February on form 8809, but it is no longer automatic. The extensions are granted on a case by case basis and from what I have read, there has to be a nuclear war or natural disaster (like ’2012′) before this extension will be granted, so figure this extension won’t be approved unless this is loosened up somewhat.

So, for the future, make sure you get your W2s and 1099MISC forms in by the end of January or you will get penalized.

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