Discussion:CP251 Notices 941 does not agree to W3
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| Revision as of 16:02, 30 August 2007 Tonymontana (Talk | contribs) (I had the simila) ← Previous diff |
Revision as of 10:28, 31 October 2009 Donniecastleman (Talk | contribs) (CP251 Hell) Next diff → |
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| The 90 day mark is 9/8/07. No word from IRS yet. So far so good.}} | The 90 day mark is 9/8/07. No word from IRS yet. So far so good.}} | ||
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| + | {{ForumReplyPost|UserID=Donniecastleman|Date=31 October 2009|Text=I'm dealing with the same thing with the CP-251. Can the IRS just pull an arbitrary number out of the air that the want to see withheld on a W2 and make you change all of your forms from the 941 all the way to the personal tax returns to make it so? Reason being, I do W2's for 3 clients that file the 941's and don't claim any federal withholding at all because they're usually broke and the payroll tax is enough of a bear to take care of. Anyway, I'm sending in copies of the 941's and W2/W3's showing no income tax withheld, especially since the year in question was only 6 months from the start-up date of July 2007. Hopefully this flies while the clients are struggling to get their business off the ground, comments?}} | ||
Revision as of 10:28, 31 October 2009
Discussion Forum Index --> Tax Questions --> CP251 Notices 941 does not agree to W3
| 29 August 2007 | |
| Alright, I have gotten two of these notices on separate clients within the last 3 months. It is a CP 251 notice stating that the total of the 2005 W2 forms sent to SSA does not match the total of the 941's filed with IRS. The notice lists the wages reported on all 4 941's and they are correct. So I call SSA on behalf of the client to find out the problem. In both cases, SSA processed several W2's under my client's EIN that do not belong to them. Has anyone else seen anything similar to this recently? | |
| 29 August 2007 | |
| Wow, I am just amazed how the SSA even spoke to you, congrats ! It was my experience that the SSA does not recognize a POA. The problem may arise with identity theft? Getting the IRS and the SSA on the right page can be a problem, beside a letter to SSA stating that the " SSA processed several W2's under my client's EIN that do not belong to them"? Then once that's cleared, send that notice from the SSA to IRS.
Good Luck | |
| 29 August 2007 | |
| Actually, SSA spoke to me without a POA (I must have caught them at a weak moment). SSA suggested that we send a W3-C & W2-C's with a letter of explanation. IRS suggested that we send copies of the corrected forms to them with a letter of explanation. We did this and within about 8-10 weeks we received a letter from IRS stating that the problem had been resolved on their end. We have not gotten word from SSA, but we also never received a notice from them in the first place. I had just never seen or heard of an issue like this and it seemed strange for it to happen to two clients within 3 months. | |
| 29 August 2007 | |
| Interesting, so why would you file a W2c and W3c if the originals were correct? Did the SSA provide you with the incorrect W-2s? BTW did you prepare the payroll reports? (W2, w3, 941) ?
Glad it all worked out, TexCPA 18:09, 29 August 2007 (CDT) | |
| 29 August 2007 | |
| I am very familiar with these notices. They are call CAWR (pronounced CAR) Assessments. They typically come out about 2 1/2 years after the end of the tax year in question. They are often erroneous. The IRS matches W-2's to W-3's and 941's and 940's. If there is any significant discrepancy, the IRS assumes that you owe additional tax. I had one a few months ago that appeared to show about $20,000 additional tax due. However, I produced copies of the four 941 returns and W-2's and W-3's to the Revenue Officer who promptly abated the tax in full. IRS employee hate these cases because they know they're often wrong. | |
| 30 August 2007 | |
| Tex - The SSA rep I spoke with was unable to view images of the W3/W2's but had summary info. The total wages were incorrect and the number of W2's processed was more than it should have been. I prepared corrected forms at the suggestion of the SSA rep. Since I could not see what the SSA had on file I wanted to be sure that the client's employee's wage reports from SSA were correct. Yes, we had prepared the payroll returns in this case as well as the W2's.
Steve - Thanks for your insight. It's good to know that these are relatively common. | |
Tonymontana (talk|edits) said: | 30 August 2007 |
| I had the similar case as Skasselea.
I sent the forms the client had to the IRS and they all matched. I sent a letter explaining that according to our records there was no discrepency. I was told by the IRS rep that the letter and my clients copies would be sufficient to resolve the matter. If we did not here from the IRS in 90 days from the date of my letter than the problem has been resolved. The 90 day mark is 9/8/07. No word from IRS yet. So far so good. | |
Donniecastleman (talk|edits) said: | 31 October 2009 |
| I'm dealing with the same thing with the CP-251. Can the IRS just pull an arbitrary number out of the air that the want to see withheld on a W2 and make you change all of your forms from the 941 all the way to the personal tax returns to make it so? Reason being, I do W2's for 3 clients that file the 941's and don't claim any federal withholding at all because they're usually broke and the payroll tax is enough of a bear to take care of. Anyway, I'm sending in copies of the 941's and W2/W3's showing no income tax withheld, especially since the year in question was only 6 months from the start-up date of July 2007. Hopefully this flies while the clients are struggling to get their business off the ground, comments? | |
