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 $3,218,500 in a calendar year. An employer may also be penalized $260 for each failed employee statement, up to a total penalty of $3,218,500 in a calendar year. Per-statement and per-year amounts may be increased if an employer intentionally disregards the reporting requirements.