W2 with wrong SSN in prior year

[Rapid Robert]

"Never once has a client been contacted about it. Changing the taxpayer address on the W2 input is a complete waste of time."

That's anecdata - perhaps never once has one of your clients been contacted about it., but that doesn't tell us much about all taxpayers. I imagine the address might be used to help detect fraudulently filed returns (where the address on the return, for receiving the refund check, is not the taxpayer's actual address as shown on the W-2). But I will also acknowledge (or concede, if you prefer) that not entering the different address data probably does not adversely affect the processing of the return in almost all cases.

In general though, I have to disagree with your implication that if a client (or even many clients) has/have never been contacted about not doing something that is instructed by the IRS, it is therefore a complete waste of time to do it. For example, I've never had a client (or me) contacted about their signature on a Form 8879, but that doesn't mean that obtaining it is a complete waste of time.

I'm also curious - you said your software does not allow any indication that the SSN on the W-2 is incorrect, but it does allow you to indicate that the address is incorrect, however you simply never use that feature. That is odd -- I wonder why they allow address alteration, but not SSN? Seems it should be the other way around if anything.

[FEDUKE404]

I always shake my head at the frequent statements here that usually follow the course "I've been doing (something) that way for years and never had a problem."

There are indeed VALID reasons why the IRS / state agencies might have an interest on the address shown on the W2 that was electronically filed. On the "simple" side there is residency, etc while on the "less simple" side there could be fraud or even tax evasion issues.

When efiling a tax return, my professional job is to reproduce the full information as shown on the tax document. As a matter of practice, I automatically do so. And others in this forum (another former Block employee?) have indicated they were instructed during their training sessions to do the same.

We can save the "I KNOW the W2 is wrong so I'll just go ahead and change some numbers" discussion for another day.

[Rapid Robert]

I think there is room for identifying data input steps that are a "waste of time", but it is more like the product of how likely the IRS is to follow up (contact) on the item, and also the severity or amount of work that would be needed if they do. For example, I think I've stated here before that if wash sales are $10 or less, I just ignore them so I can list the transactions directly on Schedule D without using Form 8949 adjustment codes. The reason why I think properly reporting these minor amounts is a waste of time is because not only don't I think IRS is likely to follow up, but even if they do, the impact would be pretty small. On the other hand, not filing a FATCA form might also escape IRS notice in many cases, but if they do find out about it, now we're looking at a $10K penalty, so that is not a waste of time to do it right.