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Wrong amounts on W-2

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    Wrong amounts on W-2

    This is an interesting situation. I filed a substitute W-2 for a client who get EIC. We had a YTD payroll stub prepared by a payroll company. We also had another stub prepared by the employer who fired the payroll company. This stub had an incomplete breakdown but enough information to know what all the numbers were except Fed and State. These two figures were estimated according to the proper percentages.

    Well, lo and behold a W-2 came in after the client tried to get hold of the employer with no success. This W-2 had on it the same information that was on the payroll company's last payroll. It ignored the extra income.

    If I do an amended return the client would get more money back (because of EIC). I don't want to do that since our return represents more accurately the money made.

    I told the client to get in touch with their old employer and ask for a correct W-2. (Since they got a W-2 from him they now have a way to contact him.) I think it unlikely that that will happen.

    What would you do?
    JG

    #2
    Hi JG - I would not file an amended return. I'd wait and see if IRS has anything to say and forget about it until / unless that happens. Sounds like the "economic substance" of what you did was correct.

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      #3
      Thanks - that does seem best!
      JG

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