Congress has passed two amendments to H.R. 2029—the Protecting Americans from Tax Hikes Act of 2015, or PATH Act, which is the tax extenders bill, and an omnibus spending bill. The PATH Act accelerates the filing date for both paper and electronic Forms W-2s and 1099-MISC to Jan. 31, beginning with forms filed in 2017. It also extended several keyprovisions.
In addition to pushing up the W-2/1099-MISC filing deadline, the PATH Act authorizes the IRS to issue regulations that will allow you to truncate employees’ Social Security numbers (SSNs) on their W-2s. Payees’ SSNs may already be truncated on Forms 1099-MISC.
Since you must file forms on the same day they’re due to payees, the PATH Act establishes a safe harbor from penalties for failing to file correct forms and for failing to provide payees with correct statements. Under the safe harbor, you won’t be liable for penalties if the error ...(register to read more)