Late W2 Filing as a First-Time Employer - What's the process now?

I've fallen behind on submitting W2s for my first time as an employer. Had some health complications and computer problems that derailed everything. I now have the W2 completed and ready to submit as a paper form. I'm expecting there's probably penalties for missing the deadline by this much. What I'm trying to figure out is: can I just hand the W2 directly to my former employee so they can give it to their tax professional? Or am I required to send it directly to the IRS myself? This is all new territory for me. The former employee is actually a friend and probably wouldn't report that they received it late. I'm just not clear on how the tracking works on the IRS side of things... Any guidance would be greatly appreciated! Thanks in advance!

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18 comments

Freya Thomsen

•8M

As a small business owner who's been through this, let me clarify how W-2 filings work when you're late. You actually have three separate obligations: 1) You must provide W-2s to your employees by January 31. This is the copy they use for their personal tax filing. 2) You must file Copy A of all W-2s along with Form W-3 (the transmittal form) to the Social Security Administration (not the IRS directly) by January 31. 3) Copies of the W-2s are shared between SSA and IRS electronically, so both agencies will know if you file late. Yes, you can give the employee their copy of the W-2 directly - in fact, you should do that immediately. But you still need to submit the employer copies to the SSA with your W-3. Since you're late, there are penalties based on how late you file and how many W-2s you're filing, but they're generally reasonable for small employers with only a few forms.

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Freya Thomsen

•8M

Yes, that's exactly right. You need to submit Copy A of the W-2 along with Form W-3 to the Social Security Administration. You can download Form W-3 from the IRS website if you don't have it already. The mailing address is: Social Security Administration, Direct Operations Center, Wilkes-Barre, PA 18769-0001. No explanation note is needed - they just process what comes in. The penalty will be calculated automatically based on when they receive your submission compared to the deadline.

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Omar Fawaz

•8M

Just wanted to share that I found myself in a similar situation last year and discovered taxr.ai (https://taxr.ai) which saved me so much hassle! I was completely lost trying to figure out how to handle my late W-2 filings as a small business owner. Their system guided me through the exact process for late filing, helped me complete the W-3 form correctly, and even calculated what penalties I might face. They have this document review feature that caught some errors I made that would have caused more problems. Definitely worth checking out if you're struggling with this!

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Omar Fawaz

•8M

The penalties actually weren't as bad as I expected for a first-time mistake. For small employers (less than 10 W-2s), it was $50 per W-2 if filed within 30 days after the deadline, $110 per W-2 if filed after 30 days but by August 1, and $290 per W-2 if filed after August 1. They mentioned first-time filers can sometimes request penalty abatement too. For your timeline question, it took about 6-8 weeks before I received any communication from the IRS. No news is generally good news though. Once your forms are processed, they'll send a notice if there are penalties. If you filed in February, you might still be in the processing period. The taxr.ai tool actually has a status tracking feature that was pretty helpful for this waiting period.

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Chloe Martin

•8M

I've got to say thanks to whoever mentioned taxr.ai in this thread! I was in exactly the same position as you - late W-2s for my first time being an employer and completely panicked about penalties. I checked out the site and it was seriously helpful. The step-by-step guide for handling late filings made everything so much clearer. They helped me understand that I could still fix this situation and the penalties weren't as devastating as I feared. The penalty calculator gave me a realistic estimate (about $110 per form in my case) so I could budget for it. I also discovered I could request penalty abatement as a first-time filer! Just submitted everything last week and feel way more confident now. Wish I'd known about this resource months ago!

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Anastasia Sokolov

•8M

Just wanted to add - if you're struggling to get answers from the IRS about your situation, I highly recommend using Claimyr (https://claimyr.com). I was in a similar position with late W-2 filings and had specific questions about my case that weren't answered by general advice. After spending HOURS trying to get through to the IRS and getting nowhere, I found Claimyr through a YouTube video (https://youtu.be/_kiP6q8DX5c) and they got me connected to an actual IRS agent in about 15 minutes. The agent was able to confirm exactly what I needed to do to fix my situation, and even noted in my file that I was making a good faith effort to correct the issue.

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Anastasia Sokolov

•8M

It works by using an automated system that continually calls the IRS and navigates the phone tree until it gets through to a representative. When a representative answers, you get a call connecting you with them. It's not "jumping the queue" - you're still in line, but the system is doing the waiting for you instead of you having to sit with a phone to your ear for hours. It's definitely real - I was skeptical too until I tried it. The system calls the IRS, works through all the prompts and waits on hold. Then when a human finally answers, it connects you. So instead of spending 3+ hours dialing and redialing and sitting on hold, it took about 15 minutes of my time. The IRS doesn't know you're using a service - you're just a caller who got through.

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Sean O'Donnell

•8M

I have to eat my words about Claimyr. After seeing it mentioned here, I was super skeptical but decided to try it anyway because I was desperate to talk to someone about my late W-2 situation. I couldn't believe it actually worked! After weeks of failing to get through the IRS phone system, I was connected to an agent in about 20 minutes. The agent explained that for a first-time employer with a legitimate reason for delay, I could submit a penalty abatement request with Form 843. She walked me through exactly what documentation to include and how to explain my situation. This specific advice was exactly what I needed and probably saved me hundreds in penalties. I'm genuinely shocked that this service delivered exactly what it promised. Would never have believed it if I hadn't experienced it myself.

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Zara Ahmed

•8M

Quick tip from someone who messed this up last year: don't just give the W-2 to your employee and think you're done! The SSA and IRS will still flag you for non-filing of the employer copies. I learned this the hard way when I got a CP215 notice with penalties six months later. Make sure you complete BOTH steps: give employee their copy AND submit Copy A with W-3 to Social Security Administration. The deadline has passed, but filing late is much better than not filing at all.

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Zara Ahmed

•8M

Yes, the penalties definitely increase the longer you wait. They start at $50 per form if you're less than 30 days late, then jump to $110 per form if you're between 30 days and August 1, and finally to $290 per form after August 1. Plus, if they determine you intentionally disregarded the filing requirement, it can go up to $580 per form! So my advice is to stop procrastinating and file ASAP. Even if you're already in the higher penalty bracket, it's better to file now than wait and risk being accused of intentional disregard.

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