The penalty for late filing of W-2 forms with the Internal Revenue Service (IRS) can vary depending on the size of the business and how late the forms are filed. The penalties are as follows: 1. Small businesses (with average annual gross receipts of $5 million or less for the three preceding tax years): - If you file within 30 days of the due date: $50 per form, with a maximum penalty of $556,500 per year. - If you file more than 30 days after the due date but before August 1: $110 per form, with a maximum penalty of $1,669,500 per year. - If you file on or after August 1 or do not file the required forms: $270 per form, with a maximum penalty of $3,339,000 per year. 2. Large businesses (with average annual gross receipts exceeding $5 million for the three preceding tax years): - If you file within 30 days of the due date: $50 per form, with a maximum penalty of $556,500 per year. - If you file more than 30 days after the due date but before August 1: $270 per form, with a maximum penalty of $3,339,000 per year. - If you file on or after August 1 or do not file the required forms: $540 per form, with a maximum penalty of $6,669,000 per year. It's important to note that if there is reasonable cause for the late filing, you may be able to request a waiver of the penalties by demonstrating that you made efforts to comply and the failure to file timely was due to factors beyond your control.