Before we consider the implications of the failure to file a W-2 statement, we need to first know what a W-2 is used for? A W-2 form is a statement that an employer provides to all the employees who they have paid salary, wages or any other form of compensation for their services to the company or the business. To avoid leaving any important detail, the employees seek help from tax experts so that they can have the best statements. Because of the improved technology, it is possible to fill the details and file the report by the use of the website that will be correct and accurate. There are consequences that one will face when they fail to file their W-2 by the specified time. Below are some of the punishments that the IRS will have those who do fill the W-2 forms face.
For every employee, it will be important to have the W-2 forms filled and submitted to the IRS before the expiry of the given time. Those who are late on the filing of the tax statements will face penalties that are imposed by the tax authority in the country. The penalties will come in form of a fee that will be deducted from your income tax refund. This will see you receive a penalty of 5% if you fail to file your W-2 statement. For those who still manage to file them before the deadline but have a debt, they will be charged a penalty of 0.5-1%. Check What Is A W-2 Used For to learn more.
The other way that the IRS uses to punish those who do not file their W-2 statements on time is through the delaying of the reimbursement of their income tax refund. You may be expecting to use the money for some important things such as investment but this will have your plans scrambled because of the delaying of your income tax reimbursement by the tax authorities. It would be nice if you had filed your W-2 report on time because much money is delayed for the failure to file a low amount. For more info, check What Happens If You Don’t File A W2 Statement?
There are many ways that the IRS uses to constantly remind people of the need to file their tax reports and the text messages and adverts are some of the ways. When the people who do not file the W-2 reports ignore this completely, then they can be arrested. They will first confiscate all your property and assets such as your car and other important things. When you fail to pay or file your W-2 statement, it will be upon the IRS to have you arrested and charged in the court of law for tax evasion and other tax crimes. It is hence necessary to have the W-2 forms filled and submitted on time. Check https://www.youtube.com/watch?v=o5W2GM0cubE for more references.