ACA Reporting, aca, efiling, efile, e-filing, e-file, affordable care act, boomtax, 1095C, 1094C, 1099, 1099 reporting, 1099-MISC, 1099-INT, 1099-DIV, Tax Year 2018, IRS, penalties, W-2, W-2 reporting, information returns, penalties for tax year 2018

Penalties for Tax Year 2018 ACA, 1099 and W-2 Reporting

Take active measures to avoid paying penalties for Tax Year 2018 by planning ahead, keeping track of your deadlines, and double-checking your information. If you fail to timely file your information returns or file them incorrectly, you could be liable for additional fines or fees.

Penalties for Tax Year 2018 ACA Reporting

According to the IRS instructions, the following penalties will apply for Forms 1094-C and 1095-C due for Tax Year 2018.

The penalty for failure to file a correct information return is $270 for each return for which the failure occurs, with the total penalty for a calendar year not to exceed $3,275,500.

The penalty for failure to provide a correct payee statement is $270 for each statement for which the failure occurs, with the total penalty for a calendar year not to exceed $3,275,500.

Special rules apply that increase the per-statement and total penalties if there is intentional disregard of the requirement to file the returns and furnish the required statements.

In 2016, the IRS announced that penalties for improper filing of or failing to file Forms 1099 and W-2 would increase each tax year. Penalty amounts are based on when the correct information return or payee statement is submitted.

Penalties for Tax Year 2018 1099 Reporting

According to the IRS instructions, the following penalties will apply for Forms 1099 due for Tax Year 2018.

$50 per information return if you correctly file within 30 days (by March 30 if the due date is February 28); maximum penalty $547,000 per year ($191,000 for small businesses, defined below).

$100 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $1,641,000 per year ($547,000 for small businesses).

$270 per information return if you file after August 1 or you do not file required information returns; maximum penalty $3,282,500 per year ($1,094,000 for small businesses).

Penalties for Tax Year 2018 W-2 Reporting

According to the IRS Instructions, the following penalties will apply for Form W-2 due for Tax Year 2018.

$50 per Form W-2 if you correctly file within 30 days of the due date; the maximum penalty is $545,500 per year ($191,000 for small businesses, defined in Small businesses).

$100 per Form W-2 if you correctly file more than 30 days after the due date but by August 1; the maximum penalty is $1,637,500 per year ($545,500 for small businesses).

$270 per Form W-2 if you file after August 1, do not file corrections, or do not file required Forms W-2; the maximum penalty is $3,275,500 per year ($1,091,500 for small businesses).

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