Electronic filing Dilema

[Brian EA]

My client came in with the final pay stub from one company and copies of checks from another company and asked that I start the return. I prepared the return based on the information she provided. I also checked the W2 as non standard. The income from the copies of the checks was used to prepare Schedule C. She told me that both companies looked "flaky" and that her chances of receiving the required documents are very slim. I made the mistake of hitting the wrong button on the wrong client and the return was filed electronically. When I realized what happened I printed the tax return, have her signed the required documents and told her that she should make every attempt to obtain these documents.
My question is: what do I do now, and what happens if she does not receive these documents?
Any advice or suggestion would be very much appreciated.

Thanks

Brian

PS. This is scary. it's my 666 posts

[Rapid Robert]

I also checked the W2 as non standard.
[...]
My question is: what do I do now, and what happens if she does not receive these documents?
Any advice or suggestion would be very much appreciated.

What W-2? A non-standard W-2 is still a W-2, but the way you describe it, there was no W-2. So why would you enter one into the return?

Anyway, to answer your question, it turns out, surprisingly, that the IRS has actually provided a form for addressing this situation, where an incomplete or inaccurate return is filed. It's called "1040X", you can find it with instructions at the IRS web site, or perhaps your software supports this form as well.

[FEDUKE404]

Creating substitute W2

I agree with Rapid Robert. You did **NOT** have a W2, period!

From the facts given, you should have prepared a Form 4852 instead. Not sure such can even be efiled?

I'm intrigued by "hitting the wrong button" and efiling a return. With my software, there is a bit more involved (alerts/error checks/etc) to prepare a "completed" tax return for efiling.

Yup. . .you got a mess!!

FE

[MDEA]

Electronic filing

You have a mess if IRS decides to audit you or the client. I would do nothing till IRS acts. The client may receive a CP 2000 over the W-2 missing. I would do nothing till then.

[TAXNJ]

Don't panic. If it was an honest mistake, you own up to it, you can do what Rapid Robert suggested. Also, you might consider calling the Tax Practitioner hotline.

[Burke]

Anyway, to answer your question, it turns out, surprisingly, that the IRS has actually provided a form for addressing this situation, where an incomplete or inaccurate return is filed. It's called "1040X", you can find it with instructions at the IRS web site, or perhaps your software supports this form as well.

I doubt if that would work. If you used all the same figures with the only difference being Form 4852, nothing on the tax return would change. So the IRS wouldn't do anything with it.

The record of income on the Sche C doesn't matter, unless 1099's are eventually received that are more than what was reported. THEN an amended return could be done. If those checks you used were less than $600, there might not be any 1099's. I agree with MDEA. Do nothing for the time being; but follow up with your client from time to time to determine if they ever come in. Form 4852 does not require a signature and I assume you still are holding the signed 1040?

I do have a question, however; if you electronically filed it, how did it process if you did not have an EIN for the W-2 income input? It should have rejected.

[taxea]

I would not have started the return without the required documents. Lesson learned, I hope. The best you could have done was file an extension and request the W&I records from the IRS when they became available. If TP is unable to get employers to provide them before the extension deadline would be the time to do a substitute W2 with copies of the pay stubs and a detailed explanation of steps taken to obtain the documents prior to filing.