SCorp Shrhldr Corrected 941&W2

[Randall]

Anyone begun correcting the 941 and W2 for S Corp shareholder in light of the recent IRS notice?  Do I understand that we can back out the amount of the insurance premiums for Boxes 3 & 5 and request a refund for the additional FICA tax paid?

 

[Lee B]

I will start in a few days.

[jshtax]

What changed?

[Lion EA]

Reporting of greater than 2% shareholder reporting of health insurance premiums reimbursed and related issues.

[jshtax]

So you do not have to put it on W2? What was the release that contained this information?

[Lion EA]

Rev Proc 2015-17.  Only in box 1, same as before.  Reversing some of their interpretations of market reforms and those $100/day/employee penalties.  For 2014 and through 30 June 2015.  Then we wait for more guidance.  Are we having fun yet?

[Randall]

To correct a corrected 941-X, do we just add a 2nd 941-X in ATX Payroll, then use the previous 941-X numbers as our original numbers in the 2nd 941-X.  That's my approach unless there's a formal way to do it.  I plan to enclose a copy of the first 941-X.

 

To correct a corrected W2, I'm not sure how to do it in ATX Payroll.  Do we just override the previous W2c info with the corrected amounts from the original W2?

[NECPA in NEBRASKA]

I am so ticked off about this. One of my client's chose to reimburse the health insurance to his "S " Corp. He is on his wife's health insurance now, so I doubt that he will want to try to fix this mess. 

[TAXMAN]

When explained to my tp what need to be fixed his first response was "who is gonna pay for you to fix it?"