It is important to ensure that we know the use of the W-2 form. 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. In the section that follows, you will be able to see some of the implications that those who fail to fill their W-2 forms face.
You need to have the W-2 that you fill submitted to the IRS on 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 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. The IRS charges a penalty of 5 %. If you have filed a W-2 statement and still you haven’t paid the tax debt, you will incur a tax penalty that will be between 0.5- 1%.
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. The compensation for the income tax refund will be delayed till you pay for the services. It is better to ensure this because the money can be better invested than having to forgo few deductions which will see you fail to get what is much.
The IRS will continually remind everybody of the need to file the taxes before the end of the deadline day through the media and the messages to people’s phones. If you completely ignore this, you will be liable for arrest. When you are ignorant, you will then have valuable assets taken by the IRS. 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.