Earlier Due Dates For Certain 2016 Forms

Employers face a new January 31, 2017, due date for filing 2016 Forms W-2 and W-3 with the Social Security Administration. This date applies whether you file using paper forms or electronically. Forms 1099-MISC are due to the IRS by January 31 when reporting non-employee compensation payments in box 7. Employers must furnish copies of these forms to their employees by the January 31 deadline. These earlier due dates will help the IRS find and stop refund fraud. Penalties for failure to file correct information returns or furnish correct payee statements have increased and are now subject to inflationary adjustments. Information returns and payee statements include, for example, Forms 1098, 1099, W-2G and W-2. The increased penalties are effective for information returns required to be filed after December 31, 2015.

Health Reimbursement Arrangements – State and Local Government Health Plans

The Path Act expands existing use of HRAs in the accident or health plans of a state or local retirement system. This article discusses the limited exception for certain HRA reimbursements of medical expenses of a deceased employee’s beneficiary.

Form 1098-T Reporting Changes and Limited Penalty Relief for 2016

Returns Beginning with the 2016 calendar year, eligible educational institutions are required to report on Form 1098-T, Tuition Statement, the aggregate amount of payments received for qualified tuition and related expenses during the calendar year from, or on behalf of, a student. Previously, eligible educational institutions could choose to report either the aggregate amount of payments received or billed for tuition and related expenses. Announcement 2016-17 provides limited penalty relief for 2016 Forms 1098-T. The IRS will not impose penalties on eligible education institutions that mistakenly report the aggregate amount billed (instead of amount received) for qualified tuition and related expenses on Form 1098-T.