"Paul" <pxhop[at]hotmail.com> wrote:

- quote -

Yes they will, and that's how they can tell.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

In order to electronically file both my MA state and federal
2006 tax returns with TaxAct, I had to add my refund of
excess 2006 401(k) contribution (from failed ADP test) to
box 1 and box 16 of my electronic W-2 in TaxAct. This was
necessary to report the excess as wages without over riding
fields that would prevent electronic filing. When the IRS
receives my 2007 1099-R with code P (indicating taxable in
2006), I expect they may check my 2006 tax return to see if
I paid tax on the excess contribution in 2006. How will they
be able to tell? Will they have a copy of my W-2 from my
employer (or from the SSA) to compare to the electronic W-2
that was sent with my 2006 tax return?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >