Government Relations

W-2 Penalty Victory

IRS Backs Off Plans for Widespread Penalties for W-2 Name/SSN Mismatches
Over Two Years of APA Lobbying Pays Off

Ever since the Internal Revenue Service announced at the APA's 2002 Annual Congress its intention to impose a $50 penalty for each Form W-2 with an incorrect name or social security number (SSN), APA has been fighting the plan - through phone calls, meetings, and letters; in private meetings and public forums; and via our representation on the IRS's Information Reporting Program Advisory Committee. At long last, in a July 13 letter to APA, the IRS has announced that, "in lieu of a systemic penalty program the IRS intends to continue focusing its efforts on those employers with the most egregious mismatch rates."

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