I'm getting the run around with the SSA and IRS. According the IRS 2021 General Instructions for Forms W-2 and W-3, page 13 states:
Terminating a business. If you terminate your business,
you must provide Forms W-2 to your employees for the
calendar year of termination by the due date of your final
Form 941, 944, or 941-SS. You must also file Forms W-2
with the SSA by the due date of your final Form 941, 944,
or 941-SS. If filing on paper, make sure you obtain Forms
W-2 and W-3 preprinted with the correct year. If e-filing,
make sure your software has been updated for the current
tax year.
I have filed our FINAL Form 941, Employer's Quarterly Federal Tax Return
On page 14:
Failure to file correct information returns by the due
date. If you fail to file a correct Form W-2 by the due date
and cannot show reasonable cause, you may be subject
to a penalty as provided under section 6721. The penalty
applies if you:
• Fail to file timely,
• Fail to include all information required to be shown on
Form W-2,
• Include incorrect information on Form W-2,
• File on paper forms when you are required to e-file,
• Report an incorrect TIN,
• Fail to report a TIN, or
• Fail to file paper Forms W-2 that are machine readable.
The amount of the penalty is based on when you file
the correct Form W-2. Penalties are indexed for inflation.
The penalty amounts shown below apply to filings due
after December 31, 2021. The penalty is:
• $50 per Form W-2 if you correctly file within 30 days of
the due date; the maximum penalty is $571,000 per year
($199,500 for small businesses, defined in Small
businesses).
• $110 per Form W-2 if you correctly file more than 30
days after the due date but by August 1; the maximum
penalty is $1,713,000 per year ($571,000 for small
businesses).
• $280 per Form W-2 if you file after August 1, do not file
corrections, or do not file required Forms W-2; the
maximum penalty is $3,426,000 per year ($1,142,000 for
small businesses).
However, the SSA states I cannot file 2021 W-2s until December 15, 2021.
