The question that we need to answer first is what is a W-2 used for? The W-2 is a form that is filled by an employee in a given company, institution or business and it is offered by the employer to every employee who gets compensation from them. When most people are filling the W-2 form, they tend to ask for assistance from the experts and this will be of importance to ensure that they do not omit any deductions. Today, there are also the websites that will ensure that people can file the taxes by themselves without the help of an expert. The IRS will have the people who fail to file their W-2 statements receive punishment for this in different ways depending on how stubborn they are. These are some of the implications that people who fail to file their W-2 statements will face.
For every employee, it will be important to have the W-2 forms filled and submitted to the IRS before the expiry of the given time. When you fail to file your W-2 report on time, you will get penalized by the tax authorities 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. This will see you receive a penalty of 5% if you fail to file your W-2 statement. For those who still manage to file them before the deadline but have a debt, they will be charged a penalty of 0.5-1%.
When you fail to file your W-2 tax reports on time, you will be penalized by having the reimbursement of the income tax refund delayed. 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 tax authorities in the country will remind everybody to have their W-2 forms filled and submitted before the end of the specified time. When the people who do not file the W-2 reports ignore this completely, then they can be arrested. They will first confiscate all your property and assets such as your car and other important things. If you are persistent, then you will have the IRS order for your arrest and get charged with tax evasion in the court of law. It is, therefore, better to ensure that you have the best time to file your W-2 statements.