Prepared tax return from IRS wage & income transcript

[newbie]

If you use the IRS wage & income transcript info to prepare the tax return can you efile? It contains the same information but you wouldn't actually have W-2's or 1099-R's in your file as is required?

If you paper file would you attach the the wage & income statement in lieu of the a W-2 or 1099-R to verify the w/holding?

[Mo Sheets]

Suggestion...

Several years ago, I had to prepare multiple years worth of returns for a client using the information provided by the IRS (client didn't bother to keep anything). I had to hard-copy file back then. Attached the information provided by the IRS and had the client sign the returns. If memory serves me correctly, my client had received 1099's for some tax years and W-2's for others but had never filed previously for the time periods involved. Sad to say, he lost out on some refunds that could have been used to offset the tax years where he owed, but since he hadn't filed timely, he lost those refunds.

Good luck!

Mo

[Bill Tubbs]

e-file

If you use the IRS wage & income transcript info to prepare the tax return can you efile? It contains the same information but you wouldn't actually have W-2's or 1099-R's in your file as is required?

If you paper file would you attach the the wage & income statement in lieu of the a W-2 or 1099-R to verify the w/holding?

I would treat the wage transcript as a W-2. So, yes, I would e-file the return. And also yes, if I would paper file, then I do include a copy of the wage transcript in lieu of the W-2.

Bill

[kpangelinan]

If you use the IRS wage & income transcript info to prepare the tax return can you efile? It contains the same information but you wouldn't actually have W-2's or 1099-R's in your file as is required?

If you paper file would you attach the the wage & income statement in lieu of the a W-2 or 1099-R to verify the w/holding?

Yes and yes....I've done it a thousand times in the last several years and continue to do it today.

Just to add....if you have a state with an income tax, the IRS transcripts only show federal withholdings.....most states I've dealt with have been able to provide withholding amounts....those that don't make it tough. I've had to go back to the federal tax tables to figure out what his exemption amounts were and then to the state tax tables, then submitted the returns with substitute W2's. Pretty painful, but they get through and the client pays me for the time involved.

[appelman]

I would not e-file!

You can make it go through, but by doing so you are saying you have a W2 in hand, which you don't! You are supposed to file a 4852, which I don't think any software will let you e-file, though I might be wrong. States have their own substitute W2's. but most will accept the 4852 if it has the state information.

[WhiteOleander]

You can efile with a 4852 as long as it is after Feb, 15th of the filing year.

[David1980]

You can make it go through, but by doing so you are saying you have a W2 in hand, which you don't! You are supposed to file a 4852, which I don't think any software will let you e-file, though I might be wrong. States have their own substitute W2's. but most will accept the 4852 if it has the state information.

Yes, you can efile with Form 4852. No, Form 4852 is not sent with the return. It's not an accepted form for efile.

IRS Publication 1345 includes the details on efiling with a substitute W-2.

EROs must not electronically file individual income tax returns prior to
receiving Forms W-2, W-2G or 1099-R. If the taxpayer is unable to secure and provide a correct Form W-2, W-2G, Certain Gambling Winnings, or 1099-R, Distributions
from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts,
etc., the ERO may electronically file the return after the taxpayer completes Form
4852, Substitute for Form W-2, Wage and Tax Statement or 1099-R, Distributions from
Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.,
in accordance with the use of that form. If Form 4852 is used, the non-standard W-2
indicator must be included in the record, and the ERO must maintain Form 4852 in
the same manner required for Forms W-2, W-2G and 1099-R.

So you just need to mark the non-standard box. Some software will do the whole process automatically, you just fill in the 4852 it adds the W-2 and marks it nonstandard. In other software, you'll need to enter the information from the 4852 onto a W-2 and mark it nonstandard.

[Gary2]

Given that we can file with W-2s printed off the internet, or downloaded via various systems, it's not entirely obvious to me that an official IRS transcript doesn't qualify as having a "w-2" in your possession for filing. If anything, it's more reliable than the forms a person hands you (which are easy to forge these days), particularly if you get the POA and have the IRS fax it directly to you.

Having said that, setting it as non-standard and even doing the 4852 seems a safe way to CYA.

[appelman]

I stand corrected, but note...

that the required document is the 4852, NOT the IRS transcript, and that the W-2 entered into the e-filed return must be indicated as "non-standard." Sorry, Gary, but a W-2 is not the same thing as a transcript, or a year-end wage report, or notes scribbled by the taxpayer on the back of an envelope. The only acceptable substitute for a W-2 is a 4852, which obviously should be completed with the best information available.

Actually, what I had said was that the software may not let you e-file, and I admit I was generalizing from my own experience. TaxAct doesn't even have the form; TaxWise transfers information from the 4852 to the W-2, but then won't let you e-file. In view of the language of Pub. 1345, I suppose you could complete the 4852 independently and not tell the software that you've done it. Just be sure to check the "non-standard" box on the W-2.

[David1980]

TaxWise transfers information from the 4852 to the W-2, but then won't let you e-file.

This would surprise me. Might it not be the 4852 that's the problem, perhaps a missing EIN instead? If you don't have an EIN for the company the return can't efile.

[S T]

Wage - Income Transcripts

At least the ones I have retrieved from e-services do provide the Employer name and EIN# , (seems to be mixed on the address listed ) so that will complete the 4852 and allow e-file.
I have successfully e-filed without issues.

Sandy

[appelman]

You're probably right!

The 4852 was probably prepared from a pay stub and lacked the EIN.

[kpangelinan]

Given that we can file with W-2s printed off the internet, or downloaded via various systems, it's not entirely obvious to me that an official IRS transcript doesn't qualify as having a "w-2" in your possession for filing. If anything, it's more reliable than the forms a person hands you (which are easy to forge these days), particularly if you get the POA and have the IRS fax it directly to you.

Having said that, setting it as non-standard and even doing the 4852 seems a safe way to CYA.

Agreed.....this is kind of how I feel as well. I've had no problem over the years.

[WhiteOleander]

I have prepared mail in returns using the IRS transcripts. I have attached a copy of the transcript to the front of the return, just like a W-2. I have not completed a 4852. The returns are mailed and always have gone through w/o a peep.

[kpangelinan]

I have prepared mail in returns using the IRS transcripts. I have attached a copy of the transcript to the front of the return, just like a W-2. I have not completed a 4852. The returns are mailed and always have gone through w/o a peep.

Same here.