Penalties to Rise for Incorrectly Filed Information Returns

Penalties for failing to file correct information returns, such as Forms W-2, are to increase, effective Jan. 1, 2016, as part of the Trade Preferences Extension Act of 2015 (Pub. L. 114-27), which was signed June 29 by President Barack Obama. The penalty for each form is to increase to $250 from $100, with the maximum total annual amount imposed increasing to $3 million from $1.5 million, according to the law. If the return that is to be filed with the Internal Revenue Service is corrected within 30 days, the penalty is to increase to $50 from $30 and the maximum total amount is to increase to $500,000 from $250,000. The penalty for forms corrected by Aug. 1 is to rise to $100 from $60, with the maximum total amount rising to $1.5 million from $500,000.