What are the penalty rates for W2?
3.9k views |Last modified 3/30/2023 4:33:55 AM EST | Added by TaxBandits Team
Penalties may apply if you fail to file with correct information on time and you cannot show any reasonable cause for failure to do so. You can also incur a separate penalty if you fail to provide copies of the form to payees on time. The amount is based on when you furnish the correct statement.
Below are the penalty rates for W2/1099:
| Time Limit | Minimum | Maximum |
| Filed within 30 days | $60 | $630,500 per year |
| After 30 days and before August 1 | $120 | $1,891,500 per year |
| After August 1 | $310 | $3,783,000 per year |
Intentional disregard of payee statement requirements - $630 per Form W-2
Civil damages for fraudulent filing of Forms W-2 - $5,000 or more in damages.
If you do not file corrections and you do not meet any of the exceptions to the penalty, the penalty is $310 per information return. The maximum penalty is $3,783,000 per year ($1,261,000 for small businesses).
Need more help?
Get in touch with our dedicated support team Contact Us