A business owner gave a W-2 to an employee for tax year 2014, but he never filed it with the Social Security Administration. He has received notices about this issue from the IRS, and he has been charged a civil penalty. He had been ignoring the notices, but now he has decided to seek my help. What steps do I need to take in this case? How do I go about filing a W-2 for 2014? Would there be any way to reduce or remove this associated civil penalty?
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The process is to draft a letter listing the reasons the W2 wasn’t filed (I thought QB filed it for me, mailed it to the wrong address, etc), remember you need some version of reasonable cause why the W2 wasn’t timely filed. Then, download and fill out the W3 and W2s if you don’t have a copy from the client. Have the client sign/date the form W3 and mail it, the W2s, your letter, and the IRS letter to the IRS to the address on the last letter received.
I just had to do this for a new client. He thought the previous CPA was handling this for him; $3,655 in penalties later....oh and good luck!! I’ve yet to hear my response but I mailed it last month.Circular 230 Disclosure:
Don't even think about using the information in this message! -
Can the first-time penalty abatement (FTA) be used for a civil penalty involving an unfiled W-2?Comment
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