FAQs - Form 15397
Here are some common questions you may have about Form 15397
What is IRS Form 15397 used for?
IRS Form 15397 is used to request a one-time extension of up to 30 days to furnish recipient copies of certain information returns. These include Forms W-2, 1099 series, 1042-S, 1095, 1098, 5498, and others. This extension applies only to delivering statements to recipients, not to filing the returns with the IRS.
Who is required to file Form 15397?
Any issuer or transmitter who cannot provide recipient statements by the original due date should file Form 15397. This includes employers, businesses, payroll providers, financial institutions, and tax professionals responsible for issuing forms like W-2s or 1099s. Filing the form helps avoid late furnishing penalties when additional time is needed.
Does Form 15397 extend the IRS filing deadline?
No. Form 15397 does not extend the deadline to file information returns with the IRS. It only extends the deadline to furnish copies to recipients. To request an extension for filing returns with the IRS, you must use Form 8809. This distinction is critical to remain IRS compliant and avoid penalties.
What forms are eligible for an extension under Form 15397?
U.S. businesses can use Form 15397 to request an extension to file the following information returns:
- Form W-2 – Wage and Tax Statement
- Form W-2G – Certain Gambling Winnings
- Form 1042-S – Foreign Person’s U.S. Source Income Subject to Withholding
- Form 1095 – Health Coverage Information Returns
- Form 1097 – Bond Tax Credit
- Form 1098 – Mortgage Interest and Related Statements
- Form 1099 – Information Returns (NEC, MISC, INT, DIV, and others)
- Form 3921 – Exercise of an Incentive Stock Option
- Form 3922 – Transfer of Stock Acquired Through an ESPP
- Form 5498 – IRA and Retirement Contribution Information
With TaxZerone, businesses can file Form 15397 online by selecting the applicable boxes on Line 4. This ensures the approved extension applies only to the specific form types and recipient statements that require additional time to file.
What details are required on Form 15397?
What happens if Form 15397 is not filed?
If Form 15397 is not filed and recipient statements are sent out late, the IRS may charge penalties. These penalties vary based on how late the statements are delivered and can increase over time.
When delays are unavoidable, requesting an extension is the safest way to stay compliant. TaxZerone helps businesses keep track of deadlines and filing requirements, but submitting Form 15397 on time is essential to avoid penalties and reduce stress during tax season.
What should businesses do if they cannot furnish recipient statements by the due date?
If businesses are unable to furnish recipient statements by the required deadline, they should promptly request an extension to avoid penalties. The Form 15397 instructions explain that the IRS allows a one-time extension of up to 30 days, provided the request is submitted on or before the original due date. This extension applies only to furnishing recipient copies, not to filing returns with the IRS.
