Arthur L. Rubin wrote:
- quote -

Actually, any W2 with no withholding does not have to be
attached to the return, neither a paper nor efiled return.

ChEAr$,
Harlan Lunsford
Monday, 24 Jan 2005

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"TaxSrv" <n3_eu[at]comcast.net> wrote:

- quote -

Fred

Your on target with both points, The 75% of employees who
perform the matching program work are the same that are used
to key punch the data, the other 25% are year long workers
dedicated to either the key punching or CP-2000 processes

The group of workers known as DUAL SEASON employees,
essentially are full time workers.

The processing schedules of these initiative are
complementary, The peak of Key punching is from 1/15 to
6/30, then the CP-2000 program reaches peak run 7/1 to 1/14

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Re: several replies which propose that the problem is the
timing of W-2 data initially sent to SSA.... Suppose a
system where IRS were to have a data file of all W-2
information available in January as simple refund returns
start rolling in. I see two problems for IRS to do anything
with this stuff. Code section 6213 says that any such
correction is not a math error, so IRS would still have to
process the return first, then propose an audit change.
However, if W-2 is attached, then it is a correctible math
error under 6213.

The other problem is likely the staffing impact of computer
matching early. IRS hires temp people for returns
processing during the "season." Creating piles of early
computer mismatches, paper or efile, means more temp people,
which is more expensive staffing than spreading the work
throughout the year among permanent employees, so the
computer-matching program later is more efficient.

Fred F.

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D.D. Palmer wrote:

- quote -

The problem is that W-2 forms are filed with SSA. IRS
doesn't get the information from SSA until about September
or October - long after all the timely tax returns have been
processed.

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D.D. Palmer wrote:

- quote -

1099s which include withholding are still attached.

I suppose, the rare case of a W-2 which has no withholding
(such as that for a household employee) hasn't been
considered by the form writers.

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"D.D. Palmer" <ddpalmer[at]hotmail.com> wrote:

- quote -

W-2s get sent to the Social Security Administration first.
Then to the IRS - this can sometimes take a year or so.

--
Regards,

Mark Rigotti

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D.D. Palmer wrote:

- quote -

Because it's not a matter of reconciling income, but of
reconciling federal income taxes withheld.

ChEAr$,
Harlan Lunsford, EA n LA
Sat 22 Jan 2005

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D.D. Palmer <ddpalmer[at]hotmail.com> wrote:

- quote -

This might come as a great surprise, but some people might
lie on their tax returns, reporting less income and/or more
income tax withholding, if they could get a quick refund.
The W-2 information would be sent to the social security
administration in March who would forward that to the IRS a
few months later.

But many people would be unwilling to wait for months for
their refund just to avoid sending the W-2 form.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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D.D. Palmer wrote:

- quote -

Look at http://tinyurl.com/3qu3r . Inside are some posts by
others that replied when I asked the same question on Mar 22
2004 at 11:22 pm.

--
Regards -

- Andrew

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"D.D. Palmer" wrote:

- quote -

An educated guess is that the W-2 is the usual vehicle used
for "refund fraud schemes." Without the false documents,
the gov't may have to rely upon inferences of any consistent
pattern and coincidence that in all X returns filed by the
preparer, IRS W-2 computer files don't match as to total
wage and/or W/H. IOW, documents bring guilty pleas; a case
built essentially upon laws of chance may be forced to a
jury trial by the defendant, or so it seems to me. It's
also often true that the t/p's involved generally make poor
witnesses, exacerbated by the fact they do not know how, and
even if, a fraud was perpetrated. They just know the guy
wants maybe 25% of the refund, and word on the street is
he's worth it, 'cause he gets you a big one!

Reg,
Fred F.

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"D.D. Palmer" <ddpalmer[at]hotmail.com> wrote:

- quote -

I think the reason is that the W-2's go to the Social
Security Administration and they are not sent to the IRS
until late summer. So, they don't "know" at the time they
are reviewing your return unless you attach the copies.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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- quote -

The data reported to SSA via the W-2, and IRS W-2p, 1099-R,
require up to a year to be processed, many stages of
matching & validation processing commence afterward.

Sometimes the data that should be reported by the
employer/payer is not sent, received or processable,
creating a hole in the data stream required to complete the
automated match process.

When this occurs, the returns are often selected for manual
review of the attachments, in many of these reviews the
paper data attached to your return my point out a compliance
problem with the Employer/Payer.

A common situation is employment tax fraud

You believe all is well, you have given the required
information, ssn, name address, exemption to compute
appropriate tax with holdings, each week you get your net
pay check, at the end of the year the employer gives you a
W-2 and every thing looks fine, you prepare and file a
complete & accurate return to claim a refund of over paid
taxes or remit the remaining balance owed.

The Employer neglects to pay over the with held taxes, and
other types of employment taxes, these funds should have
been remitted as frequently as weekly or up to a quarter at
a time, (depends on the size of payroll).

When the end of year arrives the employer neglects to file
the information with SSA & IRS, they may also neglect to
file corporate/partnership/Self-Employment income tax
returns which have an entries for wages paid, as far as they
are concerned they are nearly invisible, until an IRS or
STATE tax audit occurs, or they fire or lay you off and you
apply for Unemployment Benefits,Workmen's Comp Insurance
claim or Social Security retirement/Disability.

This is one of the reason you receive annual statements of
your SSA records, allowing you to detect potential fraud and
stimulate the detection cycle, by filing a claim of in
accurate data on your earnings history.

W2 slips attached to your return are --NOT-- entered into
the IRS system on paper filed returns, the data in the
E-FILED return is available and in this instance cursory
validations are made during initial processing to validate &
detect potential fraudulent W-2's.

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Why are we still attaching W-2 forms to our tax returns?
They IRS matches everything else (Forms 1099) without
attachment...surely they know how much employers report as
wages?

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