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Discussion:W-2: Wrong SSN - Employer wants to charge to change it!

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Discussion Forum Index --> Basic Tax Questions --> W-2: Wrong SSN - Employer wants to charge to change it!


Discussion Forum Index --> Tax Questions --> W-2: Wrong SSN - Employer wants to charge to change it!

Lalva (talk|edits) said:

23 March 2009
This is the most outrageous thing I have heard in a while.

The employer is a restaurant, the employee gets her W-2 with incorrect SSN. She asks for a corrected W-2 so she can e-file her return and get her refund. Guess what? the employer wants $1,000 to do the change. I think this is illegal. Isn't it?

I told the employee that she would have to paper file this year, since she is not going to pay the $1,000 FEE, and attach a note explaining why the SSN in her W-2 and 1040 don't match.

Have you encounter anything like this?

Mscash (talk|edits) said:

23 March 2009
Have her go to Social Security with the W-2 she has and ask them what they want to do about it. When the original gets there it is going to bounce because of a wrong number. I'll be SSA is not going to offer $1,000 to have it fixed!

GrinnenTL (talk|edits) said:

23 March 2009
I can't comment on the legality, however, my question would be, was the W4 filled out correctly? If it was and the person processing the payroll was in error, I feel there shouldn't be a charge. However, if the W4 was incorrect, then I can see charging a fee. $1,000 is a bit much.

Lalva (talk|edits) said:

23 March 2009
But shouldn't the employer verify SSN before hiring? In that case, it's not the employee's fault.

Futenma (talk|edits) said:

23 March 2009
SCA 1997-013 concludes that payors can not charge a fee for supplying original or corrected W-2's and 1099's; but, that they may charge a fee for supplying duplicate copies.

GrinnenTL (talk|edits) said:

23 March 2009
Employers or payroll companies should have a copy of the SS card when the I-9 is filled out. However most business owners do not compare the W4 and the social security card. Should they yes, should the employee provide correct and legible information? Yes. ADP charged one of my clients 100 each for corrected W2's that was infact ADP's fault. They transposed a number that could cleary be read off of a W4.

Lalva (talk|edits) said:

23 March 2009
Well, I would understand a $100, but not a $1,000 charge.

Deback (talk|edits) said:

March 23, 2009
I wouldn't understand $100 or any amount to correct the error, when it was ADP's fault.

Lalva (talk|edits) said:

23 March 2009
Yes, Deb, you are right, but maybe I wouldn't put a fight for that amount. Just swallow it and move on with your life.

But $1,000 is outrageous.

Actionbsns (talk|edits) said:

23 March 2009
My policy has always been if I make a mistake, I fix it no charge. Every year there is something like this that has to be fixed for someone. I wonder if the employee has just made such a PIA of herself it's the last straw for the employer. In the end, it'll have to be corrected as MsCash points out. SSA always catches these things and sends a letter.

Blrgcpa (talk|edits) said:

23 March 2009
Call the IRS and explain what happened. They'll get a corrected W-2 for you.

IDrinkYour Milkshake (talk|edits) said:

23 March 2009
$1K fee to correct a W2? I need to up my payroll fees...

D'Nero (talk|edits) said:

23 March 2009
Why up your fees? Simply make more mistakes and charge the client to correct.

CrowJD (talk|edits) said:

23 March 2009
Restaurant? Have her find a pay phone (not easy, but it can be done), and report them to the health department. Make the next call to the newspaper (if you still have a newspaper). There's no such thing as a restaurant without some glaring secret that could kill a dozen or so on a bad day. If it actually is a clean restaurant, send her over to PetWorld for some mice. Better yet, see if they keep any live crickets for the lizards; they're cheaper, and very difficult to get rid of.

CTECRiley (talk|edits) said:

23 March 2009
It's disturbing that an attorney would advocate criminal acts on a public forum. Then again, maybe you're making a joke.

CrowJD (talk|edits) said:

23 March 2009
Oh right, I forgot, Lalva, don't do that.

Taocpa (talk|edits) said:

23 March 2009
CTECRiley,

CrowJD has a wicked sense of humor. I think he was joking.

When I read it, I got a good laugh.

Tom

Lalva (talk|edits) said:

23 March 2009
Yeah, I would never suggest that my client do that. However, she also works for another company (some sort of security business) and she was so upset about this that she made a comment. They said that they will investigate.

I would feel bad if there is another restaurant go down under, but this is a sign that there are other things going on there.

EZTAX (talk|edits) said:

24 March 2009
I don't think the E-file will bounce. Incorrect employer ID yes, as long as you use the correct nubmer for the tax return I think it will be OK. Might get a cp-2000. This year our program will allow you to enter an ID number for the W-2 if that number is different from the Taxpayer's ID# (for illegals).

Deback (talk|edits) said:

March 24, 2009
I've efiled several returns over the years with incorrect SS numbers. None have ever been rejected, but I don't enter the incorrect SS number on the W-2 worksheet. I just advise the client to have his or her employer issue a corrected W-2 form with the correct SS number.

Lalva (talk|edits) said:

24 March 2009
EZ, I am trying my client NOT to get that CP-2000 letter, so that's why she is going to file a paper return with a note explaining it.

Lalva (talk|edits) said:

24 March 2009
Yes Deb, but she doesn't want to pay the $1,000 that her employer wants to give her the corrected W2

Deback (talk|edits) said:

March 24, 2009
I don't blame her. I've never heard of such a thing.

Does anyone know if it's possible for the taxpayer to submit a corrected W-2 form to the IRS without having the employer correct it? (Too tired at the moment to try to find an answer to this question...)

Wonder Woman USA (talk|edits) said:

24 March 2009
Why not do a substitute W-2 and explain the situation in "how has employee tried to get a W-2?" section.

TexCPA (talk|edits) said:

24 March 2009
I agree with wonder woman, file form 4852!

[Form 4852]

I like the part on the form: "Form 4852 serves as a substitute for Forms W-2, W-2c, and 1099-R and is completed by taxpayers or their representatives when (a) their employer or payer does not give them a Form W-2 or Form 1099-R, or (b) when an employer or payer has issued an incorrect Form W-2 or Form 1099-R.

TexCPA 22:23, 23 March 2009 (CDT)

TexCPA (talk|edits) said:

24 March 2009
btw, still laughing at Crow!

TexCPA 22:24, 23 March 2009 (CDT)

Deback (talk|edits) said:

March 24, 2009
I knew there was a way to get a corrected W-2 to the IRS without paying someone a grand! I just couldn't think of the form at the time. Thanks, WW and Tex, for completing my thought!

Lalva (talk|edits) said:

24 March 2009
Thank you all of you! I didn't think of that.

Taxea (talk|edits) said:

24 March 2009
How about a substitute W-2 with the explanation that the issued W-2 is the source of the information and that the employer refuses to correct it unless the employee pays a fee of 1K. And I agree that the employee should 1. ask for a copy of the W-4 that the info was taken from and 2. notify SSA.

Doesn't the paystub have the SSN on it? Why wasn't this caught sooner. taxea

AEM CPA (talk|edits) said:

24 March 2009
People don't look at their paystubs. If they did, they'd know how much of their money is being wasted by the Supreme Soviet. In fact, how many times do you open the client's W-2 envelope? Probably 20% don't even open their tax documents. It says tax, and in the folder it goes for the accountant.

Lalva (talk|edits) said:

24 March 2009
AEM is right. I have a lot of clients that give me closed envelopes with the tax forms. I guess they hate taxes so much that they don't want to see what they have been paying or what they will have to pay, hard to say.

Illini (talk|edits) said:

24 March 2009
The $1,000 fee is irrelevant -- it is all hearsay - nothing writen down -- do the 4582 and be done with it

AEM CPA (talk|edits) said:

24 March 2009
It's relevant because it came up as part of the effort to obtain a W-2c.

Mscash (talk|edits) said:

24 March 2009
If the wages are not reported to Social Security under the correct number, the worker's benefits will be reduced for life. Fixing mistakes like this should be made without hesitation or regard to who was at fault and $1,000 is $1,000 to much.

AEM CPA (talk|edits) said:

24 March 2009
I think the 4852 will solve that problem as well.

Eaglespaeth (talk|edits) said:

25 March 2009
The employer should get a $50 penalty for filing an incorrect W-2, although I've never seen it happen. Definitely file the 4852. Line 10 looks like the place to mention the $1k.

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