IRS Form SS-8

[Tax Sleuth]

How long does it typically take for the IRS to process a Form SS-8 these days? Furthermore, should a tax professional with a POA try to wait, if possible, until he or she receives a determination letter from the IRS before sending in an amended return for a client?

[Black Bart]

ss-8

How long does it typically take for the IRS to process a Form SS-8 these days? Furthermore, should a tax professional with a POA try to wait, if possible, until he or she receives a determination letter from the IRS before sending in an amended return for a client?

We here at TMI believe every query deserves a response; even if the respondent doesn't know what the hell he's talking about , so...here goes:

I've never filed an SS-8 but I wouldn't be optimistic about speedy processing of such things which will probably be equivalent to that of dealing with substitute W-2s (IRS is sort of like an old tax preparer: if it's quirky & there's not much money in it, they'd druther not). I'd bet money on at least three to six months wait (if that). Also, as I understand it, IRS has to send the employer one to fill out, then wait 'til they get that back to hear the other side of the story and render a decision -- I can't imagine the employer will be in any big hurry to do this and possibly make himself liable for not only your guy, but maybe several others working/having worked there. Note: I assume you've told your client (if still employed there) that he's going to be quite unpopular, if not fired.

As to the determination letter, I would like to have it in hand before signing a 1040X which maybe results in a promptly spent refund -- if IRS later goes the "wrong way" on the SS-8, our noble taxpayer might want you to pay IRS back for him ("bad tax advice", you see).

On the other hand, according to the SS-8 instructions, no determination letters will be issued after the SOL expires, so if you're dealing with old stuff that could put you in a time-bind.

If nothing was withheld from his pay (likely if they're calling it "contract labor"), then maybe take a look at this form which might help get on with filing:

http://www.irs.gov/pub/irs-pdf/f8919.pdf

And, here's a discussion on it (old, but relevant):

http://forum.thetaxbook.com/showthread.php?7803-No-W-2-and-No-withholding

[JohnH]

I agree with everything Bart said, (which may only prove that both of us don't know what we're talking about).

But it might affect the answer if you give a little more info about the reason for the SS-8. If you're doing this for an employer there's one answer, but if you're doing this for an I/C who has suddenly decided he's an employee there might be a different answer. And if it's the latter, I hope you've asked him if he cares anything about working for the employer in the future. Knowing the amounts involved might also be a useful piece of info, because in most cases the only thing involved is about 7% in tax savings at best.