E-File Reject for EIN

[KC-CPA]

Received a rejection for a tax return with a note that the EIN number was not established prior to the end of 2016. Its for a household employee whose's employer hand wrote a W-2 and must have secured her EIN after December 31, 2016.

Has anyone ever had this happen and is there anyway to file it without having to mail the return?

Thanks.

[Rapid Robert]

Received a rejection for a tax return with a note that the EIN number was not established prior to the end of 2016. Its for a household employee whose's employer hand wrote a W-2 and must have secured her EIN after December 31, 2016.

Has anyone ever had this happen and is there anyway to file it without having to mail the return? .

Yes, I've had that happen, and no, you're going to have to paper file. A W-2 can be created with "Applied for" as the EIN, same thing will happen.

[oceanlovin'ea]

Oh, yes, Roger!

Oh yes, Roger. It just happened to me this year also. My mother requires 24/7 care starting in June of 2016. I was very compliant about paying the people as employees and taking out their payroll taxes. BUT I guess I was under the assumption that I could use her social security number to report everything since it goes on the Schedule H on her personal return.
BUT I was mistaken about a couple of things and this was a biggie. I applied for the EIN the middle of January. When the employees filed their tax return it got rejected. After about 5 hours total on the phone with IRS and my software company I talked to someone in Information reporting. He knew exactly what I was talking about. The IRS computer doesn't recognize any EIN issued after 12/31/16 for tax returns for that year.
The employees will have to mail in their tax return. With a couple of the employees that I do their individual tax returns myself, I chose to file the tax return without that W-2 on it and could electronically file. I will amend the return next January and include. But these 2 people earned a small amount of money from this job.

We have all learned a valuable lesson......but it will probably never come up again....in my lifetime as a tax professional. I need to retire!!!!!

Linda EA