To join in on this discussion, you must first log in.

Discussion:W2 with SSN 999-99-9999 and tax withheld

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Advanced Tax Questions --> W2 with SSN 999-99-9999 and tax withheld


Discussion Forum Index --> Tax Questions --> W2 with SSN 999-99-9999 and tax withheld

Caliban100 (talk|edits) said:

13 February 2013
Hi Y'all,

A Resident Alien without SSN (has ITIN) received a W2 from employer with SSN 999-99-9999 on it. According to the W2, taxes were withheld from his pay and transmitted to the gov't.

I would expect taxpayer to get a 1099 and file taxes with that.

Has anyone seen this kind of W2 before? What did you advise your client to do?

Thanks.

Marcilio (talk|edits) said:

14 February 2013
Have your client give employer his ITIN & have them reissue the W-2.

Taxea (talk|edits) said:

14 February 2013
"I would expect taxpayer to get a 1099 and file taxes with that."

Why employer doesn't have the tax id# for an employee is beyond me. Employer needs the ITIN or SSN whether he issues a W2 or 1099. Employer would be in violation of the law if he issued a 1099 to an employee. This was his way of reporting the income and withholding on the payroll reports. I can only surmise that the TP couldn't find his way to the location of ITIN/SSN issuing office.

EZTAX (talk|edits) said:

14 February 2013
Hold on now. It has been a long day but employer cannot accept an ITIN correct? This would be illegal. Must use a fake SS number and then file the return with the ITIN. Ultra tax even has an input to put the SS number from the W-2 that does not match the taxpayer! At least that is how I have understood it. Crazy system!!!!

EatonCPA (talk|edits) said:

14 February 2013
I've seen these W-2s before - they occur when a company hires an employee that does not have the proper legal documentation to work in the US. They put the employee on payroll like everyone else and deduct all the appropriate taxes, include the wages on 941 filings, etc, then get to the end of the year and turn this all in to their payroll person or accountant who informs them that 9 digit number the employee gave them that starts with the number 9 is not actually valid. So then someone makes some type of decision how they want to get around the issue so the W-2s add up to the W-3 and the W-3 matches the quarterly 941s, and decide on using the generic 999-99-9999 instead of the equally inaccurate ITIN.

Prepare the return like EZTAX says, just going with the W-2 as is and file the return with the ITIN. Then you need to advise your client to get the proper documentation to work legally in the US - ie a work visa or green card. An ITIN doesn't cut it and if his employer ran him through e-Verify with that ITIN, your client would likely find himself out of a job.

http://www.irs.gov/Individuals/General-ITIN-Information

Mikex2e7n5 (talk|edits) said:

14 February 2013
Just an FYI, when an employer receives an obviously wrong SSN for an employee, they are supposed to withhold income tax at the rate of Single with zero dependents

Podolin (talk|edits) said:

14 February 2013
I hope the software that issues Social Security numbers has "reserved" 999-99-9999, so that no one actually gets that number:-)

Ckenefick (talk|edits) said:

14 February 2013
Don't think the SSA issues any SSN's starting with 900 (through 999).

Podolin (talk|edits) said:

14 February 2013
Excellent. Now I will rest easy.

Podolin (talk|edits) said:

14 February 2013
From Wikipedia, which is never wrong: "There are also special numbers which will never be allocated:

Numbers with all zeros in any digit group (000-##-####, ###-00-####, ###-##-0000).[29] Numbers with 666 or 900-999 in the first digit group.[29] Numbers from 987-65-4320 to 987-65-4329 are reserved for use in advertisements.[30]"

Also, SSA says they will not run out of numbers for several generations. Another one of my worries relieved, as I will not be here for "several generations".

EatonCPA (talk|edits) said:

14 February 2013
The 9-series are reserved for the ITINs issued by IRS.

Caliban100 (talk|edits) said:

16 February 2013
Thanks everyone for your consideration of this question. I think whether or not the res alien was legally allowed to work, he did and needs to pay and file taxes. Apparently he has been doing this with same "employer" for several years while working on getting valid-for-work SSN, but received a 1099MISC last year, letter from IRS and then filed and paid taxes.

I will try the method outlined by EZTAX and recc'd by EatonCPA and see if software accepts it.

Anyone know what happens to FICA in these circumstances? It isn't credited to the taxpayer, of course, without a valid SSN. I think client hopes to somehow get that back.

EZTAX (talk|edits) said:

16 February 2013
FICA is lost.

Caliban100 (talk|edits) said:

20 February 2013
As I thought. Thanks EZTAX.

Mscash (talk|edits) said:

21 February 2013
The employer is deliberately not following the rules because if this is a legal resident alien he does not have the right to work in the USA and should not have been hired. No SSNs start with 9, only ITINs and they are not valid for work.

Pegoo (talk|edits) said:

21 February 2013
I9 failure. mmmmmmmm.

Ckenefick (talk|edits) said:

21 February 2013
Don't worry, Congress will have this fixed by the end of the week.

To join in on this discussion, you must first log in.
Personal tools