Happy new year, again. We’re sure you’ve been hearing that a lot lately, as we’re officially a few days into 2017. Remember the tax season in 2016? We hope it wasn’t stressful for you, and thank you for filing with us if you did.
As we bring in the new year we also bring in a new tax year, which unfortunately isn’t too exciting unless you’re an accountant. However, it’s important to keep in mind that with the new year comes tax changes, so whether you’re excited about taxes or not, please keep note of what’s new or different.
One form that has made some notable changes is the form 8809.
What is the form 8809?
We’re glad you asked, that’s an easy question for us to answer. Form 8809 is the information return tax extension form for employers who need more time to e-file W2 Forms, 1099s, or ACA forms with the IRS.
For whatever reason, if you’re really busy, or just planning in advance to file a little later then the form 8809 is your go to for an extension.
In order to get your 30-day extension, you must have your form 8809 correctly filled out and submitted to the IRS by the due date of the file you’re trying to get an extension on. Keep in mind that you’ll now have to provide a valid reason for your extension.
Please remember that the extension only grants you 30 extra days. You’ll still be responsible for filing your taxes. If your extension has not been approved and you file your taxes late, or don’t file them at all you could be subject to fines and penalties.
So, What’s Changed Regarding the Form 8809?
Ah, another good question! In 2017 the IRS will only allow employers to file a single 30-day extension for the w2 series, and the extension will not be automatic. Meaning that instead of your form 8809 being automatically approved for being turned in on time, you’ll have to provide a valid reason for needing an extension, and it will need to be approved by the IRS. However, these changes may not go into effect until the 2018 season.
Currently, if you need more time to e-file 1099 forms or W-2 forms, you can file an 8809 for an automatic extension. You can also file for a second 30-day extension but you will need a valid reason for this extension and it must be approved by the IRS.
Now the removal of the automatic 30-day extension comes with good reason, it’s not a willy-nilly decision. It’s to make W-2 forms available earlier in the system in order to more easily detect identity theft and refund fraud.
Also, the W-2 filing penalties have changed:
You’ll now receive a $50 penalty per W-2 if the forms are filed late within 30 days of the due date. The maximum penalty is now $532,000 per year and $186,000 for small businesses.
You’ll receive a $100 penalty per W-2 if the forms are filed over 30 days past the due date, but are filed before August 1st. The maximum penalty is $3,193,000 per year and $532,000 for small businesses.
You’ll receive a $260 penalty per form if you file after August 1st, and don’t file corrections, or don’t file the required forms. The maximum penalty is $3,193,000 per year, and $1,064,000 for small businesses.
You’ll receive a $530 penalty per form if the failure to file is due to intentional disregard with no maximum penalty, even for small businesses.
PLEASE NOTE: Your 1099s, W-2s, and ACA forms are now due by January 31st, so your form 8809 to get an extension on these forms needs to be filed by January 31st.
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We’re here to help! We will be more than happy to answer your questions via phone Monday-Friday 9 AM to 6 PM EST at 803.514.5155, with 24/7 email support at email@example.com. Also, be sure to keep checking back for our updates and changes made to tax filing extensions made by the IRS.