Late W-2 filings trigger two separate IRS penalties on the same form: one for the SSA copy and one for employee copies. For the 2026 tax year, the per-form penalty ranges from $60 to $340 depending on how late you are, plus up to $680 per form for intentional disregard with no annual cap.
The IRS assesses both penalties. The SSA does not charge monetary fines for late W-2 filings. When W-2s are filed late or incorrectly, the IRS applies penalties under two sections of the Internal Revenue Code:
Both penalties apply to the same W-2. A W-2 that misses both the SSA and employee copy deadlines can generate two separate penalty assessments for that one form.
Penalties are inflation-adjusted annually under Revenue Procedure 2025-32. For W-2s for the 2026 tax year, filed in early 2027, the amounts are:
| When you file or correct | Penalty per form | Annual cap (large business) | Annual cap (small business) |
|---|---|---|---|
| Within 30 days of February 1, 2027 | $60 | $683,000 | $232,500 |
| 31 days late through August 1, 2027 | $130 | $2,049,000 | $683,000 |
| After August 1, 2027 or never filed | $340 | $4,191,500 | $1,397,000 |
| Intentional disregard | $680 or 10% of unreported amount (whichever is greater) | No cap | No cap |
Large business means average annual gross receipts over $5 million for the most recent three tax years. Small business means $5 million or less. The per-form rates are the same for both, but the annual caps differ.
The statutory deadline for W-2s is January 31. Because January 31, 2027 falls on a Sunday, the deadline for the 2026 tax year is February 1, 2027. That date covers both:
Penalties begin accruing the day after the deadline. There is no grace period.
The 30-day Tier 1 window for the 2026 tax year closes on March 3, 2027. Tier 2 runs from March 4 through August 1, 2027. Anything filed or corrected after August 1 falls into Tier 3.
Because IRC 6721 and IRC 6722 are independent, both can apply to the same W-2. Here is what that looks like in real numbers for the 2026 tax year:
| Scenario | Employees | 6721 penalty (SSA copy) | 6722 penalty (employee copy) | Combined total |
|---|---|---|---|---|
| Filed within 30 days | 10 | $600 | $600 | $1,200 |
| Filed 45 days late (Tier 2) | 10 | $1,300 | $1,300 | $2,600 |
| Never filed (Tier 3) | 10 | $3,400 | $3,400 | $6,800 |
| Never filed (Tier 3) | 50 | $17,000 | $17,000 | $34,000 |
A W-2 that is filed with the SSA on time but never delivered to the employee still generates a 6722 penalty for the missing employee copy. On-time SSA filing does not satisfy the furnishing requirement. Use Email Delivery, Print and Mail Delivery, all in Adams Tax Forms Helper to ensure timely delivery of your employee tax forms.
Intentional disregard is not just being late. It applies when the IRS determines you knowingly and deliberately failed to file or furnish correct W-2s. The $680 floor is a minimum. If 10 percent of the unreported amount exceeds $680, the higher figure applies.
The IRS looks at factors such as whether you received prior notices, whether errors recurred across multiple years, and whether you took any steps to correct known problems. Employers who receive repeated penalty notices and take no corrective action are more likely to face an intentional disregard finding.
Most employers dealing with honest mistakes, late filings, or isolated data errors will not reach intentional disregard. The first-time occurrence of a missed deadline, handled promptly, typically stays in the standard tiers.
If you file by paper when eFiling is required, it’s considered a failure to file. The IRS can assess Tier 3 penalties on every paper-filed W-2 that should have been submitted electronically, even if the paper copies were accurate and filed on time.
If you file 10 or more information returns of any type in a calendar year, you must eFile all of them. The 10-return count combines all form types: W-2s and 1099s together. Paper filing without an approved waiver (Form 8508) removes the timing benefit of filing on schedule.
Yes, under two paths.
Reasonable cause. If you can show the failure was due to circumstances beyond your control and that you acted responsibly, the IRS may waive the penalty. Qualifying reasons include natural disasters, serious illness or death of the responsible party, and destruction of records. Staffing problems, software errors, or simply forgetting do not qualify.
De minimis exception. The IRS waives penalties for a small number of returns with minor errors each year (currently, the greater of 10 returns or 0.5 percent of the total filed) if you correct those errors by August 1. This applies automatically and does not require a request.
First-Time Abate (FTA) is available for failure-to-file, failure-to-pay, and failure-to-deposit penalties on income tax and employment tax returns. It does not extend to information return penalties under IRC 6721 or 6722. A missed W-2 deadline will not be waived under FTA, no matter how clean your prior compliance history.
To request reasonable cause abatement, respond to the penalty notice in writing with a signed statement explaining the basis and supporting documentation. Sign under penalties of perjury.
Form W-3, the transmittal that accompanies paper W-2 filings, is part of the same filing as Copy A. A missing or late W-3 does not generate a separate per-form penalty. However, submitting W-2 paper copies without a W-3 can cause the SSA to reject or delay processing the entire batch, which in turn extends the period before your filing is treated as complete.
If you eFile through Tax Forms Helper, Form W-3 is generated and transmitted automatically. You do not prepare it separately and there is no risk of sending W-2s without it.
Be sure to file by February 1, 2027, to ensure that you avoid penalties.
Practical steps that help:
When your W-2s are ready to go, see How to eFile with the IRS or SSA to submit through Tax Forms Helper.
File on time, file accurately, and you won’t have to worry about the penalty tiers listed above.
The IRS assesses both penalties; the SSA does not charge monetary fines for late W-2 filings. IRC section 6721 covers Copy A filed late or incorrectly with the SSA, and IRC section 6722 covers employee Copies B, C, and 2 furnished late or incorrectly. Both can apply to the same W-2, so one form can generate two separate assessments.
Penalties are inflation-adjusted under Revenue Procedure 2025-32. For the 2026 tax year the per-form amounts are $60 within 30 days of February 1, 2027, $130 from 31 days late through August 1, 2027, and $340 after August 1 or if never filed. Intentional disregard is $680 per form, or 10 percent of the unreported amount if greater, with no cap. Per-form rates are the same for large and small businesses; the annual caps differ.
No. First-Time Abate covers failure-to-file, failure-to-pay, and failure-to-deposit penalties on income tax and employment tax returns. It does not extend to information return penalties under IRC 6721 or 6722, so a missed W-2 deadline will not be waived under FTA no matter how clean your prior compliance history. Reasonable cause is the route to request relief.
No separate per-form penalty applies to the W-3, because it is part of the same filing as Copy A. However, submitting paper W-2 copies without a W-3 can cause the SSA to reject or delay processing the entire batch, which extends the period before your filing is treated as complete. eFiling generates and transmits the W-3 automatically, removing the risk.
Subject to change. Penalty amounts are inflation-adjusted annually. Verify current figures in the IRS Instructions for Forms W-2 and W-3 or at IRS.gov.
The IRS assesses both penalties; the SSA does not charge monetary fines for late W-2 filings. IRC section 6721 covers Copy A filed late or incorrectly with the SSA, and IRC section 6722 covers employee Copies B, C, and 2 furnished late or incorrectly. Both can apply to the same W-2, so one form can generate two separate assessments.
Penalties are inflation-adjusted under Revenue Procedure 2025-32. For the 2026 tax year the per-form amounts are $60 within 30 days of February 1, 2027, $130 from 31 days late through August 1, 2027, and $340 after August 1 or if never filed. Intentional disregard is $680 per form, or 10 percent of the unreported amount if greater, with no cap. Per-form rates are the same for large and small businesses; the annual caps differ.
No. First-Time Abate covers failure-to-file, failure-to-pay, and failure-to-deposit penalties on income tax and employment tax returns. It does not extend to information return penalties under IRC 6721 or 6722, so a missed W-2 deadline will not be waived under FTA no matter how clean your prior compliance history. Reasonable cause is the route to request relief.
No separate per-form penalty applies to the W-3, because it is part of the same filing as Copy A. However, submitting paper W-2 copies without a W-3 can cause the SSA to reject or delay processing the entire batch, which extends the period before your filing is treated as complete. eFiling generates and transmits the W-3 automatically, removing the risk.
Save up to 45 days by skipping the wait for IRS processing.
Save up to 45 days by skipping the wait for IRS processing.
Save up to 45 days by skipping the wait for IRS processing.
Social Security Administration Direct Operations CenterWilkes-Barre, PA 18769-0001 (for Certified Mail Use ZIP code 18769-0002)
Social Security Administration Direct Operations CenterP.O. Box 3333 Wilkes-Barre, PA 18767-3333.
Reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed.
Require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations.
Eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year, and require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return.
Corrections must be filed the same way the original was submitted. If you eFile the original then you must eFile the correction. If you mailed in the original then you must mail in the correction.
Do not cut or separate Copies A of the forms that are printed two or three to a sheet, except for Form W-2G. Generally, Forms 1097, 1098, 1099, 3921, 3922, and 5498 are printed two or three to an 8" x 11"sheet. Form 1096 is printed one to an 8" x 11" sheet.
These forms must be submitted to the IRS on the 8" x 11" sheet. If at least one form on the page is completed, you must submit the entire page. Forms W-2G are an exception and may be separated and submitted as single forms. Send your forms to the IRS in a flat mailing (not folded).
Do not staple, tear, or tape any of these forms. It will interfere with the IRS’s ability to scan the documents.
Pinfeed holes on the form are not acceptable. Pinfeed strips outside the 8" x 11" area must be removed before submission without tearing or ripping the form. Substitute forms prepared on continuous feed or strip form paper must be burst and stripped to conform to the size specified for a single sheet (8" x 11") before they are filed with the IRS.
Do not use a form to report information that is not properly reportable on that form. If you are unsure of where to report the data, call the information reporting customer service site at 1-866-455-7438 (toll free).
Do not submit anything other than red ink copies to the IRS.
Use the official forms or substitute forms that meet the specifications in Pub. 1179. If you submit substitute forms that do not meet the current specifications and that are not scannable, you may be subject to a penalty for each return for improper format. All of Adam’s tax forms meet the proper requirements, so use us as a resource.
Do not use dollar signs ($) (they are pre-printed on the forms), ampersands (&), asterisks (*), commas (,), or other special characters in money amount boxes.
Do not use apostrophes (’), asterisks (*), or other special characters on the payee name line.
No photocopies of any form are acceptable.
Do not print plain ink copies of your W-2 copy A or W-3 form. If a box doesn't apply to you, leave it empty.
Do not add "0".
Do not omit the decimal point and cents from entries.
Do not mistakenly check the “Retirement plan” checkbox in box 13. See page 22 of this IRS PDF for Retirement plan details.
Do not misformat the employee’s name in box e. Enter the employee’s first name and middle initial in the first box; his or her surname in the second box; and his or her suffix (such as “Jr.”) in the third box (optional).
Do not enter the incorrect employer identification number (EIN) or the employee’s SSN for the EIN.
Do not cut, fold or staple Copy A paper forms mailed to SSA.
Do not mail any copy other than Copy A of Form W2 to the SSA.
File the correct form with the correct amount, code, checkbox, name or address, and check the “CORRECTED” box. This overwrites what you originally filed with the IRS under that person or company’s name and TIN. Send the corrected form to the recipient and prepare the red Copy A to send to the IRS with the Form 1096 transmittal if you’re paper filing. If you also had the wrong recipient/payee name or TIN do a Type 2 correction instead.
For Type 2 errors, either the recipient/payee name and/or the TIN are wrong or you used the wrong form (like a 1099-MISC instead of a 1099-NEC). Action: This is a two-step process. First, you must zero out what you filed with the IRS under the wrong name/TIN and then file the new form.
Step 1
File a form with the CORRECTED box checked and the exact same payer and recipient information as on the incorrect form, but with all the amounts as zeros. This will remove the originally filed form from the IRS records.
Step 2
File a new Form 1099 with the right information as an originally filed form (not a corrected form).
Incorrect Payer Name, Payer TIN, or both Action: Write a letter to the IRS.
If you filed with the wrong payer name (yours or your client’s name/company name) or the wrong payer taxpayer identification number (TIN), you don’t need to send in a corrected form.
Instead, you should write a letter containing the following information:
Name and address of the payer
Type of error (including the incorrect payer name/TIN that was reported)
Tax year Payer TIN Transmitter Control Code (if you eFiled),
Type of return, Number of payees, Filing method (paper or eFiling)
You have exceeded the IRS paper filing threshold and are required to file electronically.
