e-file with only pay stub

[oceanlovin'ea]

I have a client that called and wants me to do his taxes from his last pay stub. I told him that we really need to wait for the W-2. He says he's moving and needs his money now.

I told him I would look into it. I was thinking that we can't efile before we have the W-2 in our hands. We can prepare but not file before. Am I correct? I couldn't find the answer anywhere.

I also told him if I did do it and his W-2 is different it will cost him for me to do an amended return.

Thanks.

Linda F.

[Lion]

No

No. Don't do it.

[nwtaxlady]

need W-2 YES!

You are correct! Infact, IRS has sent out letters to preparers and I received one. It says "You Must Use Form W-2, W-2G, or 1099-R Information When Submitting Electronic Returns". It continues on saying that Authorized IRS e-file Providers must not submit electronic returns to the IRS prior to the receipt of all those forms I listed above from the taxpayers.

The letter continues on about the IRS monitors Authorized IRS e-file providers for compliance with Revenue Procedure 2007-40 and other IRS e-file rules and requirements. They will also conduct office visits to investigate compliance. Goes on about IRS may sanction Providers that violate IRS e-file rules and requirements.

If you have not heard, IRS is sappose to be collecting some outragous amount (I don't recall the specific dollar amount but in the millions or billions) from PREPARER PENALTIES.

So with that in mind...beaware that if you do decide to prepare your clients return without the W-2, you could be looking at a preparer penalty.

[Bees Knees]

That was the subject of a TTB update last year:

http://www.thetaxbook.com/updates/thetaxauthority_update_service/pdf/bulletin/9-5-2008-4_update.pdf

[dsi]

Could be a set-up? Get the client into your office, prepare the return, but do not file it until you get the W-2. Also, get paid.

[oceanlovin'ea]

no set-up

It's not a set-up, just a most annoying client.

Always wants something for nothing......or a favor.

But I won't do anything I shouldn't do....I just wanted to be able to tell him I checked and we will have to wait.

Thanks bunches.

Who was it that sent that freezing weather to Florida last week? I may not thaw out before tax season ends now.

Linda

[Jesse]

You are correct! Infact, IRS has sent out letters to preparers and I received one. It says "You Must Use Form W-2, W-2G, or 1099-R Information When Submitting Electronic Returns". It continues on saying that Authorized IRS e-file Providers must not submit electronic returns to the IRS prior to the receipt of all those forms I listed above from the taxpayers.

The letter continues on about the IRS monitors Authorized IRS e-file providers for compliance with Revenue Procedure 2007-40 and other IRS e-file rules and requirements. They will also conduct office visits to investigate compliance. Goes on about IRS may sanction Providers that violate IRS e-file rules and requirements.

If you have not heard, IRS is sappose to be collecting some outragous amount (I don't recall the specific dollar amount but in the millions or billions) from PREPARER PENALTIES.

So with that in mind...beaware that if you do decide to prepare your clients return without the W-2, you could be looking at a preparer penalty.

I have my letter framed...literally!

I have the same clients annually that want their money yesterday and you know HRB can do it. I try to explain they are giving a loan in anticipation of the refund, but the return is not being filed. This year I kindly point to my letter and tell them you can go down the street or you can just wait. It's up to you and it's just that simple!

[WhiteOleander]

HRB will not file a return with only a pay stub. We insist on the W-2 before the return is filed. If they want us to enter the info from the pay stub into the program and estimate the refund, we will do that. But, we will not file w/o the W-2.

[Nashville]

It Is Happening

Tax offices are filled with people just after Christmas getting their money from their last pay stub. I wish this had never started because people are asking me now if I can do this.

I can't. And neither can they (supposedly). I don't think Block, JH, Liberty, or any of the big chains actually file without a W-2 either.

What is happening -- tax offices with connections to banks are estimating the refund from the last pay stub, then are making a RAL without filing the return. The customer must be established and trusted enough to return to the office after receiving legitimate W-2.

This is been around for a year or two. Wonder what kind of loss experience exists with this practice.

[gkaiseril]

The employer has until January 31, 2010 to mail the employee's W-2 to the employee and the form should be received by the employee prior to February 14, 2010.

See Tax Topic 154 Topic 154 - Form W-2 and Form 1099–R (What to Do if Not Received), http://www.irs.gov/taxtopics/tc154.html , for more information. It also explains when and how to handle the missing W-2 after February 14, 2010.

HRB, JH, and Liberty only provide a very limited loan and the banks that approve the loan advance on the expected tax refund want to have a loan (RAL) history with the applicant prior to making any refund advance on the pay stubs and then require that the applicant file their tax return by February 15th using the bank to collect the refund as an RAL or pay the advance back in full.

[Larmil]

The employer has until January 31, 2010 to deliver the employee's W-2 to the employee.

And if the employer doesn't? What does the employee do?

[tilt53]

The IRS does not want you to be hasty in filing returns with substitute W-2s (F4852). From their instructions:

You should always attempt to get Form W-2 or Form 1099-R
from your employer or payer before contacting the IRS or filing
Form 4852. After February 14, you may call the IRS at
1-800-829-1040 if you still have not received Form W-2 or Form
1099-R. Generally, do not file Form 4852 before April 15.

[gkaiseril]

And if the employer doesn't? What does the employee do?

Please read the tax topic 154 link.

This has been the policy for years.

[Larmil]

Please read the tax topic 154 link.

This has been the policy for years.

I know but your original post did not state this.

[gkaiseril]

After I posted, I thought I should expand the answer to provide the information on what to do if the W-2 was lost or not obtainable, since this would help those who might not know what to do or where to look for more assistance.

This also can affect the state return as some states will not allow e-file with a substitute W-2 and require that the support documentation for the determination of the year-end amounts be filed with the return.