Attaching copy of W-2 to form 8879.

[dyne]

The EMPLOYER EI number and name and address reflected on the W-2 must be
reported on the W-2 information entered into the tax software or an IRS reject is
likely. I got several such rejects last year. So far this year I noticed at least ten
W-2 forms which have differant EMPLOYER EI numbers and/or names or addresses
than the prior year.

[dtlee]

As Gary and others have pointed out keeping copies of W-2s stapled to the 8879 is a good way to keep things organized, but is not an IRS requirement.

What I do (not meant to mean that this is good...on the contrary...) is keep all original signature forms together (8879, state equivalents, 8867 forms, §7216 consent forms, engagement letter, etc) and staple all copies of W-2s and state withholding forms to this set of forms.

[BP.]

IRS sends out rejects if the address in their master file
database does not match the address we input into the computer.

The address on the W-2 for the employee, or the employer? Anyway, I don't think I've ever had a reject because of W-2 addresses not matching, only for EINs. And I'm sure changed addresses have missed my attention sometimes.

[dyne]

I was referring to WHICH copies of the W-2 should be stapled to the form 8879 for
electronic filing. I stopped spending time and energy to find the Copy B of the W-2
which are sometimes at the top, sometimes at the middle and sometimes at the
bottom. NOW I simply attach ANY copy of each W-2 to the form 8879. We NEED
to keep a copy of the W-2 as IRS sends out rejects if the address in their master file
database does not match the address we input into the computer. I have had MANY
W-2 forms which changed the EI number or address or both so far.

[dtlee]

Just a point to remember

Many companies issue W-2s differently and not every copy is the identical.

I have seen companies which put asterisks in the amount fields for the federal on the state copies and vice versa. When there are multiple states, very often each state is on a separate "Copy 2" and one vendor (I forget which one) also has a copy that has the income/withholding for "ALL STATES". Not only do the individual Copy 2s document the withholding from each state, but also the wages earned.

While I have never been asked by any state for a copy of the withholding statement I have in my files, I try to make sure that my copies include any that have information I may need.

My "simplified" approach is to give the client anything marked "Client Copy" or "Copy C" and keep the rest. This also has a side benefit that it eliminates calls from them asking "Where's my copy?" or "You gave me the copy that you should have sent to the <fill in the blank>. Don't you need this?"

I think if you have the income and withholding for each entity listed, and you are happy with what you are keeping, it should not matter which copy you keep.

[Gary2]

By the way, for those of you who only keep electronic copies, I ran across a reference to "Revenue Procedure 97-22, 1997-1 C.C. 652, Retention of Books and Records," while checking Pub. 1345. This includes the technical requirements for electronic copies. I doubt people will have trouble with the legibility standards, but you may need to put some effort into the indexing requirement.

[taxea]

Two copies? Why wouldn't a photocopy, or a scanned copy, of each W-2 be sufficient?

one for irs one for state if needed in the future. Most provide 4 copies so why bother making another copy. I do scan all docs the client provides but I also keep a copy of everything I got in my client file.

[Gary2]

Rather than spending time searching for Copy B, it be more useful to spend time searching for the regulation that says it has to Copy B. And then ask the IRS to update Pub 1345 to refer to that regulation, since it currently only says "keep copies" without specifying which one.

In other words, I've never seen any such requirement, and I can't imagine them omitting it from Pub 1345 if they cared.

As for attaching the W-2 to the 8879, do you have a better way of filing the W-2s? They come in different shapes and sizes; attaching them to the corresponding 8.5x11 8879 seems like a very practical way to keep things organized and easily available.

[Gretel]

I also didn't know that we are required to keep 2 copies. I firmly attach all withholding documents (Copy B if at all possible) to my form 8879, which I scan in and keep as paper file. This is the only part I still keep as paper. I think this is what the original poster means. If copy B is required? I don't know. I don't think anyone of us would be hung by the toe nails if it is a different copy as long as all information is on it.

[ChEAr$]

Do you mean just keep a copy of the W-2 as well as the signed form 8879, whether you attach the W-2 to the Form or not is irrelevant -must the W-2 that is retained be "copy B" or can it be any one of the copies?

I think it can be any one of the copies - I don't worry that it always be copy B, and I only keep one copy of the W-2, I did not know we are required to keep 2 copies.

Officially we are required to retain copy b along with the 8879. Now if a state return is filed, we are also reaquired to keep copy 2 just as we would attach it to a paper filed copy. But I usually dispense with that copy with copy b has state info on it always. We are merely repositories for paper copies. I've never had either federal or any state revenoors come looking for them.

[Jesse]

It appears to me that we can attach ANY copy of the W-2 from each employer to the
form 8879, NOT necessarily a copy B. If so, this can save us much time looking and
detaching the copy B. Does anyone know any differant?

Do you mean just keep a copy of the W-2 as well as the signed form 8879, whether you attach the W-2 to the Form or not is irrelevant -must the W-2 that is retained be "copy B" or can it be any one of the copies?

I think it can be any one of the copies - I don't worry that it always be copy B, and I only keep one copy of the W-2, I did not know we are required to keep 2 copies.

[ttbtaxes]

The signed 8879 stays in your file and you also are required to maintain 2 copies of the W-2. 8879?

Two copies? Why wouldn't a photocopy, or a scanned copy, of each W-2 be sufficient?

[Burke]

It appears to me that we can attach ANY copy of the W-2 from each employer to the
form 8879, NOT necessarily a copy B. If so, this can save us much time looking and
detaching the copy B. Does anyone know any differant?

If you mean attach to a paper-filed copy of the Form 1040, then yes you can attach any copy as long as it has all the information which would normally be on Copy B.

[taxea]

JS you are correct. The signed 8879 stays in your file and you also are required to maintain 2 copies of the W-2. I also know of no requirement to attach a copy of the W-2 to the 8879 or what the purpose would be.
OP the IRS requires a copy of the W-2 to be attached to the front page of the 1040 for manually filed returns. Could you tell us your source on the W-2 attachment to the 8879?

[JSLATER]

8879?

Have I missed something? I retain the 8879 for my own records and give a copy to the client with their return. I have never filed the 8879 electronically or by paper, let alone attached a copy of the W-2.