In the course of processing a client's tax return, I pointed out a $300 difference between Box 1 wages and Box 3 & 5 SSA/MC wages. No codes in Box 12 or any explanation on W-2. So I asked, did you contribute to a 401K? No, not since 2008. So I asked him to call his company payroll person or whoever did the W-2's and inquire. She calls me today. It is a $300 bonus paid to ALL employees in Nov. She says "but we didn't take any fed or state taxes out." I say, okay, but it is still compensation and needs to be corrected. She says, "okay, I will correct my records." And I say, okay, but we need a new W-2 both for the TP and the IRS. She says, "can't you just corrrect it when you put it in?" I wonder how long this is going to take. Or if she even has a clue how to do it.
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I'm sure she'll call you for help when she gets a letter from the IRS saying that the 941 she filed does not match thier records. Give it a year. -
Sure, go ahead an input box one correctly, i.e. wages plus the $300. That will not reject.
Because.... there are no W2 records already existing with which IRS can match it.ChEAr$,
Harlan Lunsford, EA n LAComment
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True, but I bet a dollar to a doughnut all she does is print a new W-2. Taxdude is right, we'll be dealing with this a year from now.Comment
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Payroll People
Payroll People, God bless 'em. Right? LOL.If you loan someone $20 and never see them again, it was probably worth it.Comment
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