If you are reporting payments in either boxes 8 (Substitute payments in lieu of dividends or interest) or 14 (Gross proceeds paid to an attorney) of form 1099-MISC the due date for furnishing the form to recipients is extended to February 15. This due date also applies to statements furnished as part of a consolidated reporting statement.
The payer is required to file Form 1099 with the SSA (Social Security Administration) by the last day of February of the year following the year in which the 1099 is in reference to if the forms are paper filed. If the forms are E-Filed the due date is automatically extended to the last day in March of the year following the year in which the 1099 is in reference to (for the 2015 tax year the due date is March 31, 2016).
How do I obtain a TIN (Taxpayer Identification Number) for the party I made payments to for Form 1099?
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
- At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- Any fishing boat proceeds; or
- Gross proceeds of $600 or more paid to an attorney.
- Real estate rentals paid for office space. However, you do not have to report these payments on Form 1099-MISC if you paid them to a real estate agent. But the real estate agent must use Form 1099-MISC to report the rent paid over to the property owner.
- Machine rentals (for example, renting a bulldozer to level your parking lot). If the machine rental is part of a contract that includes both the use of the machine and the operator, prorate the rental between the rent of the machine (report that in box 1) and the operator's charge (report that as nonemployee compensation in box 7).
- Pasture rentals (for example, farmers paying for the use of grazing land).
- Public housing agencies must report in box 1 rental assistance payments made to owners of housing projects. See Rev. Rul. 88-53, 1988-1 C.B. 384.
On Form W-2, show the payment as social security wages and Medicare wages and tips, and put the social security and Medicare taxes withheld in boxes 4 and 6; do not show the payment in box 1 of W-2 Form. If you made the payment after the year of death, do not report it on Form W-2, and do not withhold social security and Medicare taxes.
Whether the payment is made in the year of death or after the year of death, you also must report the payment to the estate or beneficiary on Form 1099-MISC. Report the payment in box 3. Enter the name and TIN of the payment recipient on Form 1099-MISC. For example, if the recipient is an individual beneficiary, enter the name and social security number of the individual; if the recipient is the estate, enter the name and employer identification number of the estate. The general backup withholding rules apply to this payment. Death benefits from nonqualified deferred compensation plans or section 457 plans paid to the estate or beneficiary of a deceased employee are reportable on Form 1099-MISC. Do not report these death benefits on Form 1099-R. However, if the benefits are from a qualified plan, report them on Form 1099-R.
- To whom you paid amounts reportable in boxes 1, 3 and 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1. Interest Income).
- For whom you withheld and paid any foreign tax on interest, or
- From whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment.
- Taxable dividend distributions from life insurance contracts and employee stock ownership plans are reported on Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
- Substitute payments in lieu of dividends. For payments received by a broker on behalf of a customer in lieu of dividends as a result of a loan of a customer’s securities, see the instructions for box 8 in the 2015 Instructions for Form 1099-MISC.
What are the due date exceptions and other requirements for furnishing the tax information statement to TIHs?
Why is my tax amount reported on the Form 1099-R higher than the nonqualified annuity from which I took a distribution?
- Income, social security, or Medicare tax was withheld.
- Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee's Withholding Allowance Certificate.
The employer is required to file Copy A of all W-2 forms along with a W-3 form with the SSA (Social Security Administration) by the last day of February of the year following the year in which the W-2/W-3 is in reference to if the forms are paper filed. If the forms are e-filed the due date is automatically extended to the last day in March of the year following the year in which the W-2/W-3 is in reference to (for the 2015 tax year the due date is March 31st, 2016).
Internal Revenue Service
Information Returns Branch, Mail Stop 4360
Attn: Extension of Time Coordinator
240 Murall Drive
Kearneysville, WV 2543
Mail your letter on or before the due date for furnishing Forms W-2 to employees. It must include:
- Your name and address,
- Your EIN,
- A statement that you are requesting an extension to furnish “Forms W-2” to employees,
- The reason for delay, and
- Your signature or that of your authorized agent.
- Copy A For Social Security Administration - This page must be submitted along with W-3 Form to the Social Security Administration.
- Copy B - To Be Filed With Employee’s FEDERAL Tax Return. This copy goes to the employee to furnish to the IRS along with their federal tax return.
- Copy C - For EMPLOYEE’S RECORDS. This copy goes to the employee to keep for their personal records.
- Copy D - For Employer. This copy is retained by the employer for record keeping purposes.
- Copy 1 - For State, City or Local Tax Department. This copy stays with this employer to be submitted or for record keeping purposes regarding state, city or local taxes where applicable.
- Copy 2 - To Be Filed With Employee’s State, City or Local Income Tax Return. This copy goes to the employee to be furnished along with their state income tax returns where applicable.
When Am I Required to Furnish W-2 Form to my Employee if Employment ends before the end of the Year?
- Fail to file timely,
- Fail to include all information required to be included on Form W-2,
- Include incorrect information,
- File on paper forms when you are required to e-file,
- Report an incorrect TIN,
- Fail to report a TIN, or
- Fail to file paper forms that are machine readable.
- $30 per W-2 form if you correctly file within 30 days (by March 30 if the due date is February 29); the maximum penalty is $250,000 per year ($75,000 for small businesses, defined on page 11).
- $60 per W-2 form if you correctly file after 30 days beyond the due date but by August 1; the maximum penalty is $500,000 per year ($200,000 for small businesses).
- $100 per W-2 form if you file after August 1, or you do not file the required W-2 forms; the maximum penalty is $1,500,000 per year ($500,000 for small businesses).
If you have made the payment after the employee's death but in the same year the employee died, you must withhold social security and Medicare taxes on the payment and report the payment on the employee's W-2 Form only as social security and Medicare wages to ensure proper social security and Medicare credit is received. On the employee's W-2 Form, show the payment as social security wages (box 3) and Medicare wages and tips (box 5) and the social security and Medicare taxes withheld in boxes 4 and 6. Do not show the payment in box 1.
If you have made the payment after the year of death, do not report it on Form W-2, and do not withhold social security and Medicare taxes.
Whether the payment is made in the year of death or after the year of death, you also must report it in box 3 of Form 1099-MISC, Miscellaneous Income, for the payment to the estate or beneficiary. Use the name and taxpayer identification number (TIN) of the payment recipient on Form 1099-MISC. However, if the payment is a reissuance of wages that were constructively received by the deceased individual while he or she was still alive, do not report it on Form 1099-MISC.
- You can issue a new, corrected W-2 form to the employee and indicate “REISSUED STATEMENT” on the new copy.
- You can issue a W-2c form to the employee that shows the correct address in box i and all other correct information.
- You can reissue the W-2 form with the incorrect address to the employee in an envelope showing the correct address or deliver it through other means to the employee.
A W-3 form is completed only when a paper Copy A of Form W-2 is being filed. Even if there is only one paper W-2 form being filed a W-3 is still required. There is no reason to file Form W-3 alone. There is also no need to file Form W-3 for W-2 forms that were submitted electronically.
Social Security Administration
Data Operations Center
Wilkes-Barre, PA 18769-0001.
Which states participate in the Combined Federal/State Filing (CF/SF) program and what are their codes?
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