W2 question

[taxtime]

I have a business client that has just realized the SSN and control numbers on their w2 are in the wrong boxes (ssn in the control number and control number in the ssn same format as 2006 w2). They have already been sent out to all employees (they were sent out on time). They asked if they should reprint them, it seems like an inconsequential error to me and I do not see any reason to reprint them. Just wondering what you folks thought?

A. "Inconsequential" Errors and Omissions. Section (20)(10)12.3(1) provides that the penalty will not be assessed for any failure to include correct information on an information return, tax return, or payee statement if the failure is considered "inconsequential." The term "inconsequential" is defined as "one that does not prevent or hinder the Service in the processing of the information, putting the return to its intended use, or the payee from timely and correctly reporting the information on their tax return." TEI recommends that the IRS include examples (similar to those provided elsewhere in the draft) of "inconsequential" errors that should not be subject to a penalty.

Thanks

Larry

[JohnH]

Identical Problem Locally

The local school system had that identical problem - SocSec# and Control# switched on thousands of emplolyees.

They first sent out an email saying not to worry about it, but then a couple of days later they advised everyone that after they checked with IRS and SSA they are reprinting the W-2 forms with the info in the right place

[Burke]

The local school system had that identical problem - SocSec# and Control# switched on thousands of emplolyees.

They first sent out an email saying not to worry about it, but then a couple of days later they advised everyone that after they checked with IRS and SSA they are reprinting the W-2 forms with the info in the right place

I did the same thing inputting information on a W-2 for a new employee this year before I caught it. Its because the IRS reformatted the form! W-2's from the IRS have the SSN box in a different place tha in previous year's, but my software carried over all the old ones and printed them in the right box in my program. I am amazed that a school system made that error. Surely they used a software program. I can see it happening on a typewritten form.

[S T]

One would think

that the forms do need to be corrected. Aren't the W-2's entered into the system by social security number and the social security has a matching system. Control numbers won't match anyone's records to record the income to the employee's account. That would directly affect the employee's Social Security Earnings account and ultimately their retirement benefit.

Sandy

[JohnH]

Amazed isn't the half of it

I've seen 2 of the W-2, forms and the emails, so I know it's a true story.
Agreeing with you - I was amazed.

I'm sure the 16,000 employees affected by the error were amazed, too.

[ChEAr$]

W2s

I too was chagrined just today to receive the information from IRS about the "possible" error.
Nothing yet from SSA about the W2s that I and my clients sent them already with SSN's in the
wrong place.

as for the employee copies, there' s no problem. All an employee has to do is to line through
incorrect SSN (or whatever number is or is not there) and pen in correct number. 1040 can
be filed with that correction.

But I'm waiting now for the other shoe to drop. IF SSA can't take corrective action on their own,
and I suspect that they can, they will send me a letter (first since my own W2 was sent in on
Jan 2nd!) and I'll have a heads up about how to deal with it for other clients whose W3's were
sent in later.

The NEVER of those people, not highlighting changes so I could re program my software!
HMmmmpfff!

[travis bickle]

and the other shoe falls

what will happen is . . .
1) everyone will re-program their databases to take into consideration the new format the irs did on the w2;
2) everyone will complain to the irs about this;
3) the irs will feel bad about this; and
4) the irs will redesign next year's w2s back the way they were . . . AFTER we have finished updating our databases to their new, "improved" format.

p.s. . . . not to mention all the (wo)man-hours lost at all the state/federal offices that have to redesign their database software to accommodate this ridiculous, unnecessary, unneeded "improvement".

[taxtime]

What do you think.

Thanks for all the input. Most of the employees have already filed their taxes. What about running new ones to send to the IRS and SSA and leaving the ones handed out to the employees alone.

Thanks again

Larry

[veritas]

see link

http://www.irs.gov/govt/fslg/article/0,,id=178191,00.html

[ChEAr$]

New ones?

Thanks for all the input. Most of the employees have already filed their taxes. What about running new ones to send to the IRS and SSA and leaving the ones handed out to the employees alone.

Thanks again

Larry

I think I will just wait till and if SSA send me a letter (NOT IRS,btw). Certainly by now they
realize the transposition of boxes, and might even have a software patch to deal with the
problem and therefore won't bother us about it.

We'll see.

[taxtime]

Thanks

for the input. Thanks for the link. I will make sure to tell them to send correct ones to SSA (not IRS sorry).