On December 15, 2015, Congress passed the Protecting Americans from Tax Hikes Act (PATH Act) which extended several tax provisions. Enhancing Code Section 179 expensing rules and the five-year extension of first-year bonus depreciation have far reaching benefits impacting for-profit businesses. But there were other provisions of the PATH Act that will directly impact nonprofit organizations as well.
To improve compliance, Section 201 of the PATH Act modifies the filing dates of returns and statements relating to employee wage information and nonemployee compensation.
- The PATH Act accelerates the filing deadlines for Forms W-2, W-3 and 1099-Misc to January 31 of the year following the calendar year to which such returns relate.
- The provision is effective for forms filed in 2017 for 2016 transactions.
- Electronically filed returns will no longer be eligible for an extended filing date.
Previously, organizations needed to have issued the Forms W-2 or 1099-Misc to the individual recipients by January 31 of the year following the calendar year, but had until the end of February to file the forms with the government. Filers had an additional month, until the end March, if they were filing the forms electronically.
Be aware that your organization will need to file 2016 Forms W-2, W-3 and 1099-Misc on or before January 31, 2017. This change to accelerate the filing deadline will result in some organizations filing late and paying additional penalties for late filing. If you need further guidance in navigating the PATH Act legislative changes, please contact PBMares to learn more.