What penalties apply if an employer fails to timely file required information under Sections 6055 and 6056?
Author: Gloria Ju
The following actions may trigger employer penalties:
- Failing to timely file information returns or furnish employee statements;
- Failing to include all the required information; and
- Including incorrect information.
An employer may be penalized $260 for each failed information return, up to a total penalty of $3.193 million in a calendar year. An employer may also be penalized $260 for each failed employee statement, up to a total penalty of $3.193 million in a calendar year. Per-statement and per-year amounts may be increased if an employer intentionally disregards the reporting requirements.