On October 26, 2016, the Rhode Island Division of Taxation sent an email to subscribers of their tax pro news service inviting comments on the possibility of adopting the new federal deadline of January 31 beginning with the submission of calendar year 2016 Forms W-2, due in 2017.

Currently, the Division requires that Forms W-2 and the annual reconciliation (Form RI-W-3) be submitted by February 28. Under Rhode Island law (Section 44-30-78), the annual reconciliation is due by January 31; however, withholding regulations (PIT 97-15)extend the deadline to February 28 to coincide with the current Form W-2 due date.

If the Division moves forward with the due date acceleration, the change would take effect for 2016 and later tax years. As a result, employers would be required to file the annual reconciliation and Forms W-2/1099 by January 31, 2017, rather than by February 28, 2017.

Other withholding requirements applying to employers would not change. For instance, employers required to submit annual W-2 information electronically to the SSA and that have a minimum of 25 employees in the state must file W-2 information with the Division on magnetic media.

Interested parties may electronically submit comments on the proposed change by 4:00 p.m. Eastern time on Monday, October 31, 2016 via the following link.

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