The Ultimate Guide to Papers

The Ultimate Guide to Papers

The Implications to an Employee that will Arise because of the Failure to File a W-2 Statement

The question that we need to answer first is what is a W-2 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. For most people, they will require an expert in the filing of the taxes to ensure that they do not forgo any deductions that need to be shown on the form. Today, there are also the websites that will ensure that people can file the taxes by themselves without the help of an expert. People who fail to file their W-2 files have many implications that will follow them. These are some of the implications that people who fail to file their W-2 statements will 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. This is because failure to do so may see you get penalized for the late payment of the taxes. The penalties that the tax authority in the country will impose will be in form of a deduction from the amount that you will get an 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%.

When you fail to file your W-2 tax reports on time, you will be penalized by having the reimbursement of the income tax refund delayed. It is important to ensure that you file your taxes on time because this will have the money that you should have an income tax refund delayed. 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.

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. If you completely ignore this, you will be liable for arrest. The IRS can seize your assets such as the cars, land, and anything that is valuable to you. 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. The best thing is to hence file your W-2 statements before the expiry of the time.

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