Why did the IRS charge me a penalty of $9,000? They say that I didn’t file my W-2. What do they mean?

If based upon the definition, you do have employees, then there are a few filing requirements. One of the requirements is to provide your employees with a Form W-2 letting the employee know how much they earned for the year. This is the requirement most people know. However, what some people do not know is that you also need to provide the same W-2 information to the IRS by filing it with the Social Security Administration (SSA). The SSA will then give that information to the IRS. It is free and very easy to file the information online by going to the Social Security Administration’s website, www.ssa.gov. You do, however, need to register on www.ssa.gov before using it so keep that in mind.

Starting for the 2016 tax year, the due date to provide your employees and the SSA the W-2 is the same. The due date for both is January 31st. A W-2 is considered delivered to an employee by January 31 if it is mailed and postmarked by January 31st. The same is true if you opt to provide the SSA with the information via the mail rather than on their website. However, we highly recommend submitting the information to the SSA electronically. In fact, there is an extra form that is required if the W-2 information is mailed. It is a form W-3. It simply summarizes the figures of all the W-2’s onto one page. When the W-2’s are filed online, the system generates the W-3 automatically so you don’t have to do it yourself.

Call IRS Tax Fighters today at 281-962-0070 or toll free 888-959-2671 if you did not file your W-2’s with the SSA in prior years and received a letter notifying you of a $9,000 penalty so that we can negotiate with the IRS for you, and allow you to continue providing great service and products through your business.