Does the IRS really need addresses on W-2s and 1099s

[LCP]

I'm referring to when you enter them into the 1040 software...... not the 1099 or W-2 itself. Seems like a big waste of time to me....name and FEIN should be plenty.

Our software (Ultratax) has a 1099R entry datasharing feature that takes way too much time to deal with and often results in bad info.

[Koss]

Addresses

Our software (Ultratax) has a 1099R entry datasharing feature that takes way too much time to deal with and often results in bad info.

I'm not familiar with UltraTax. But there's gotta be a way to disable that feature...

BMK

[JohnH]

It's been a long time since I last used Ultra Tax, but as Koss said there should be a way to disable it. If not, you could always devise a workaround. Maybe a generic entry for the address such as "see form for address" for all entries. As the accumulated info builds up, you'd never have to concern yourself with changing address info when you call up something already existing in the data base.

[FEDUKE404]

Addresses needed

The answer would appear to be "yes" and you also must match the information shown on the W2/1099R/etc. (Cannot default to the "correct" address.)

Addresses on Forms W-2, W-2G or 1099-R; Schedule C or C-EZ; or on other tax forms supplied by the taxpayer that differ from the taxpayer’s current address must be input into the electronic record of the return. Providers must input addresses that differ from the taxpayer’s current address even if the addresses are old or if the taxpayer has moved. EROs should inform taxpayers that when the return is processed, the IRS uses the address on the first page of the return to update the taxpayer’s address of record. The IRS uses a taxpayer’s address-of-record for various notices that it is required to send to a taxpayer’s "last known address" under the Internal Revenue Code and for refunds of overpayments of tax (unless otherwise specifically directed by taxpayers, such as by Direct Deposit).

Source: http://www.irs.gov/efile/article/0,,id=205385,00.html

I agree with Koss: Sounds as if the "automatic" thing needs to be disabled.

FE

[JohnH]

Maybe I misunderstood - I was thinking LCP was referring to the issuer's address.

[Burke]

He IS referring to the issuer's address. ATX requires it before it will create an efile. This is what took much longer this year since I previously heretofore never had to do that with paper filing. Also, if you omit or incorrectly input the zip code, you get an error as it matches the zip to the city and state. Or input the street address on the 2nd line instead of the 1st line. Once I got used to it, it went pretty fast. I did disable the payor information function on dividends and interest however. Because if you do not, it makes you input all that for those too. At least now they are all in, and next year's rollover should be a breeze.

[Koss]

Payer's Address

I also assumed the original post was referring to the issuer's address.

And I agree that for e-filing, an address is required for W-2 and 1099-R, but not for most other forms, such as 1099-INT and 1099-DIV.

The real question is:

Do you want the issuer's name and address to autopopulate based on the EIN?

And if this option is enabled, what database is it drawing on?

A database that has been accumulated within the office, including data from prior years, which might be inaccurate?

And if it populates an obsolete name or address, can you update the database file from within the return, with one or two keystrokes?

Or is it pulling data from the software vendor, by connecting to the internet?

What if it's an EIN that's not in the database? Does the program automatically add it? To where? The local PC? The office server? Or the cloud?

Under the wrong conditions, the whole affair can be a massive drain on computing resources.

With that being said, when the issuer is Fidelity, or the employer is Wal Mart, it's kinda nice to have it fill in automatically...

BMK

[Gary2]

With that being said, when the issuer is Fidelity, or the employer is Wal Mart, it's kinda nice to have it fill in automatically...

Conversely, when it's the Commonwealth of Massachusetts, it's not nice at all. That's because MA uses the same EIN but different addresses, depending on the agency or branch of the employer.

[Koss]

Multiple Addresses

A few years ago I helped out a little bit at an office that was using Lacerte.

Upon entry of the EIN, the program offered a drop-down with multiple addresses associated with that EIN.

It sounds sexy, but it still didn't work exactly as intended. In many cases, there were two or three different addresses that were really the same, except that in one of them, the street was misspelled, and in another, it had been entered in all caps.

The end user is the weakest link in any system...

BMK

[JohnH]

>>> The end user is the weakest link in any system... <<<

That's certainly the case around here...

[Burke]

Conversely, when it's the Commonwealth of Massachusetts, it's not nice at all. That's because MA uses the same EIN but different addresses, depending on the agency or branch of the employer.

And I found that to be the case with many big pension administrators as well, same EIN but different addresses depending on the corporation for whose pension they were administering. Now that I have all the addresses in the software, I will disable that function entirely for next year, just entering new ones manually. I have had to go back in several times and delete duplicates out of the auto-payor system. I think it is more trouble than its worth.

[ChEAr$]

FWIW

Drake entry of a 1099r demands name, FEI and zip code, but let's you slide on street address.
Maybe also on W2's, I don't remember.

[MichaelG]

LCP,

Data Sharing in Ultra Tax and other TR/CS products could be a great time saver. Unfortunately, it isn't capable of ignoring simple differences such as PO vs P.O. or 5-digit vs. 9-digit zip codes. The result is lots of unnecessary alerts.

This has been discussed quite a bit on the ARNE forum. How soon TR will get the message is anyone's guess. But the more users who complain, the more TR is likely to make datasharing usefull rather than the PITA it has become. So I urge you to join the discussions on ARNE.

[joanmcq]

In ATX, for 1099-Div & Int, you can input the name & EIN, and you won't get an error message if you don't input the address. I find that a great timesaver, since most of the common banks & credit unions & brokerage houses are in my system, and it only takes a few keystrokes to enter one.

I also have the State of CA as a VERY common employer among my clients, and can input that as well in a few keystrokes. But I have 4 different State of CA EINs-but I know to tab down 4 to get the Franchise Tax Board entry for all of those pesky 1099-Gs.

Some 1099-R issuers are a pain in the butt with differing addresses, but quite a few also are consistent. That said, you can enter a few and then just arrow down the pick list until you get to the right one.

The ATX payor manager is not a 'cloud' or internet feature; it resides on your computer and is dependent on what you, the user, put in.

Had no idea you were supposed to put in the filer's old addresses though; haven't done it in 10 years and never had a squawk from the IRS.

[taxea]

It is only required when efiling. If the return is manually filed a copy of the W-2 or 1099 with withholding is attached to the return. I think this is another way the IRS compares third party against TP income.