What are the penalty rates for W2?
3.8k views | Last modified 3/30/2023 4:33:55 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

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).


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