WASHINGTON, Feb. 2, 2026, 05:00 EST
- Employers must provide workers with W-2 wage statements and specific annual information statements for 2025 payments by February 2.
- For returns “due” in 2026, the IRS penalty kicks off at $60 for each late or incorrect form, increasing the longer filings go unpaid.
- Mandatory e-filing rules now cover more small businesses, increasing demand for IRS portals and third-party filing services.
U.S. employers must provide workers with Form W-2 wage statements by February 2 and also file Form 1099-NEC reports for contractor payments made in 2025, according to an IRS tax calendar. (IRS)
The timing is crucial since those slips serve as the foundation for tax season. They inform workers and contractors what to report and provide the government with a tool to verify income against tax returns.
Money bites hardest. The IRS sets penalties for information returns due in 2026 at $60 per form if late by 30 days or less, rising to $130 until August 1 and jumping to $340 afterward. For “intentional disregard,” fines hit $680. (IRS)
Employers face a February 2 deadline for submitting Copy A of Form W-2 and the accompanying Form W-3 to the Social Security Administration. They also need to provide employees with their copies by that date, according to the IRS. (IRS)
For contractors, the IRS notes that Form 1099-NEC typically kicks in when a business pays $600 or more for services from a non-employee. It also warns that securing a Transmitter Control Code (TCC) for some electronic filing systems “may take up to 45 days for processing.” (IRS)
The IRS is pushing filers to switch to IRIS — the Information Returns Intake System — which it bills as an upgraded platform for e-filing information returns from tax-year 2022 onward. Users can file corrections and request automatic extensions through it. The agency also highlights the IRIS Taxpayer Portal, a free web-based tool allowing up to 100 returns per session, though you’ll need an IRIS TCC to use it. (IRS)
This weekend, Newsweek highlighted the looming deadline and penalty framework, directing readers to the details: the IRS may impose distinct penalties for missing filing deadlines and for errors on payee statements. Interest keeps accruing until the full amount is settled. (Newsweek)
Halfpricesoft.com announced via PR Newswire that its ezW2 software now features an add-on to electronically file W-2 and W-3 forms directly. “The February 2 deadline is upon us, and penalties for late or incorrect W-2 and W-3 filings can add up fast,” warned Dr. Ge. (PR Newswire)
The company highlighted an e-file feature for its ez1099 software, noting the add-on allows users to submit forms directly to the IRS and send recipient copies either electronically or by mail. “Penalties for late or incorrect 1099 filings can be steep,” Ge said in the statement. (PR Newswire)
Major payroll and tax-filing firms like ADP, Paychex, and Intuit battle it out for the busy season, offering tools that assist employers with preparing and electronically filing year-end forms. (ADP)
But it’s not just the deadline that late filers have to worry about. Errors like missing or wrong taxpayer IDs can trigger expensive corrections. The IRS also offers a “reasonable cause” process that filers might have to use to avoid penalties after getting a proposed-penalty notice. (IRS)
The IRS has introduced Form 1099-DA, a fresh info return aimed at reporting digital asset proceeds from broker transactions. This adds another layer to the growing list of year-end forms firms and taxpayers must monitor. (IRS)
