The end of January information return deadline has now passed, and the clock is already ticking on IRS penalties that can reach 680 dollars per form. Employers that missed the cutoff for key wage and contractor forms are now in penalty territory, while workers and freelancers may be left waiting for the documents they need to file their own returns.
For most employers, late January is when they must send wage statements to employees and file copies with the Social Security Administration or the Internal Revenue Service. Form W 2 reports an employee’s pay and taxes withheld. Form W 3 rolls those W 2 totals into a single summary for the government. Form 1099 NEC reports nonemployee compensation for freelancers, independent contractors, and other service providers who are not on payroll.
Federal guidance places the Form 1099 NEC filing date at the end of January in the year after the payments were made, and the same timing generally applies to filing Forms W 2 and W 3. Missing that winter filing window means those required reports are already late, even while many people are just starting to sort envelopes at the kitchen table.
How the penalties stack up
The IRS penalty schedule for information returns due in 2026 is stricter than many small employers realize. For each late or incorrect information return or payee statement, the agency can charge 60 dollars per form if it is fixed within 30 days. The amount rises to 130 dollars when corrections are made from 31 days after the due date through August 1, and 340 dollars after that point.
There is also a higher tier for what the IRS labels “intentional disregard” when an employer simply ignores the rules or refuses to issue forms. In that situation, the penalty can reach 680 dollars for every information return, with no maximum. Because filing with the government and furnishing copies to workers or contractors are treated as separate duties, one missing W 2 or 1099 NEC can generate two fines. Interest then increases any unpaid balance until it is fully paid.
So what happens if your own business missed the deadline? The bill grows the longer you wait to fix it.
Is there still time to limit the damage
The January filing deadline is firm, and automatic extensions are rare. Employers that wanted extra time generally needed to submit Form 8809, which asks for a 30 day extension to file information returns, before the original due date. That window has now closed for this season, so late filers are already exposed to penalties.
Even so, the way the penalties are structured gives businesses a strong reason to move quickly. Getting accurate forms out within 30 days of the deadline keeps each return in the lowest tier. Fixing problems before August 1 still avoids the most expensive bracket. For a company watching cash flow and energy costs, acting now can keep a small compliance mistake from turning into a major bill later in the year.
What workers and contractors can do
If you arestill waiting for a W 2 or 1099 NEC, it may be tempting to file your tax return based on your last pay stub and hope for the best. Tax authorities warn that this can backfire, leading to unreported income, extra tax owed, and the hassle of amending a return once the real forms arrive. Both the IRS and the Taxpayer Advocate Service urge taxpayers to wait until they have all of their wage statements and other tax documents before filing.
A better approach is to keep an eye on your mail and online accounts through February, then contact your employer or client if the form never appears. If that still does not resolve the issue, the IRS has published guidance on how to report missing or incorrect forms and how to use a substitute wage statement so you can file on time without guessing your income.
That quiet January milestone is one of the tools the IRS uses to match income and spot fraud. For employers, the message is simple. Fix late or incorrect information returns as soon as you can. For workers and contractors, tracking down missing forms helps protect your refund and your peace of mind.
The official statement was published on Information return penalties.
