When it comes to tax season, filing W-2s and 1099s might feel like walking a tightrope. One wrong step and you’re looking at penalties, unhappy employees, and compliance headaches including hours of music while on hold with the IRS. The good news? Most of these mistakes are entirely avoidable – especially when you have a trusted solution like TaxAidFiling.com in your corner. Let’s dive into the top six mistakes people make and why you don’t have to be one of them.
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Missing Deadlines
Deadlines are the bane of every tax filer’s existence. For W-2s, you need to send them to employees and file them with the Social Security Administration by February 2nd. For 1099s, the deadline depends on the type of form but often falls around the same time. Missing these deadlines can result in steep penalties – up to $280 per form!
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Incorrect Information
Typos in names, Social Security numbers, or Taxpayer Identification Numbers can cause your forms to be rejected or flagged. Worse, they can lead to compliance issues and fines.
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Using the Wrong Form
Confusion between W-2s and 1099s is more common than you’d think. Employees get W-2s; independent contractors get 1099-NECs; rent and royalties get 1099-MISC. Sending the wrong form can lead to IRS scrutiny and disgruntled recipients.
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Not Filing Electronically
Paper filing is not only outdated but also more prone to errors and delays. The also IRS requires electronic filing if you’re submitting 10 or more forms. But even for smaller volumes, e-filing is the smarter choice.
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Forgetting State Requirements
Did you know some states have their own filing requirements for W-2s and 1099s? Overlooking these can result in penalties at the state level, even if your federal forms are flawless.
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Failing to Keep Records
The IRS recommends keeping copies of W-2s and 1099s for at least four years. Misplacing these documents can make audits or employee disputes a nightmare. In addition, employees and contractors always test your retention records polices with lost forms.
Why Choose TaxAidFiling.com?
TaxAidFiling.com isn’t just a filing solution, it’s peace of mind. Here’s why:
- User-Friendly Interface: No accounting degree required.
- Real-Time Support: Got questions? Our team is ready to help.
- Affordable Pricing: Compliance shouldn’t break the bank.
- Guaranteed Accuracy: Our tools ensure your filings are error-free, every time.
- Every State you Need: We ensure compliance in all 50 states and local jurisdictions
This tax season, don’t let filing W-2s and 1099s keep you up at night. Avoid these common mistakes and let TaxAidFiling.com handle the hard part. Because when it comes to taxes, we’re not just a solution – we’re your secret weapon.
Ready to make filing a breeze? Visit TaxAidFiling.com today!
