ITIN and 2012 Forms W-2

[duanecpa]

new client - 38 w-2s for 2012. one of the employees uses an ITIN.

According to the 2012 instructions for the W-2/W-3, (section is for employers), it states ' Do no accept an IRS individual taxpayere identification number (ITIN) in place of an SSN for employee identification or for Form W-2 reporting.'

The employee worked for the employer a short period of time in 2012 and lives in another state.

Since it is now after the fact and the employer withheld and remited employee taxes and employer taxes for this individual, how should this W-2 be handled? Perpared with ITIN? Not prepared and pretend that the employee did not exist for W-2 reporting purposes? Other way of handling?

Thank you.

[Koss]

ITIN or SSN

When the employee began working, did he provide the employer with an SSN?

I realize that the employee does not have an SSN. But most undocumented immigrants know that the ITIN does not authorize them to work. So when they start work, they give the employer an SSN (which usually belongs to someone else).

Of course, the law does not require the employer to see the employee's social security card. The social security card is only one of several documents that the employee can use to verify that he is eligible to work in the US. Sometimes the employee simply presents a bogus social security card.

If the employee actually provided his ITIN on Form W-4, then the employer may have no choice but to use the ITIN to report the withholding.

I don't have it handy, but there is a publication which describes how to distinguish an ITIN from an SSN. Among other things, ITINs usually begin with a 9.

Going forward, your client--the employer--needs to understand how to recognize these numbers. The employer cannot require new employees to present a social security card. They can use other forms of ID to complete Form I-9, such as a driver's license and birth certificate, or a US passport. And then they can provide their SSN verbally, or by filling it in on a form, without showing the social security card. But the employer is expected to recognize an ITIN. If the employee openly admits that they do not have a social security number, they should not be allowed to start working until they get one.

BMK

[duanecpa]

Additional Questions

The ITIN has been provided on Form W-4. If this is the case, is it permitted then to use the ITIN on Form W-2?

Thank you.

[appelman]

No!

It is never permissible to use an ITIN on a W-2. As to how to recognize it:

"What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a range of 70-88 in the fourth and fifth digit. Effective April 12, 2011, the range was extended to include 900-70-0000 through 999-88-9999, 900-90-0000 through 999-92-9999 and 900-94-0000 through 999-99-9999. IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA)."

[Koss]

No SSN

It is never permissible to use an ITIN on a W-2.

Then how should Duane file Form W-2 for the employer?

What do you do if the employee failed to provide an SSN and now you can't get ahold of him?

Or what if you actually reach him and he tells you he doesn't have an SSN?

As I noted in my earlier post, the employer should have obtained an SSN from the employee before he began working. But the fact is that didn't happen. What is the employer supposed to do now with Form W-2?

BMK