Made a mistake on W2... now what?

[Chowdahead]

I prepared a return for a family member back in March.  The return as EIC and CTC but nothing unusual.  She hasn't received her refund yet but she has received 3 letters from the IRS stating they are working on their return but they need more time etc. However, a letter has not arrive in over 2 months, even though the last one indicated the would respond within 60 days.

I assumed the return was caught up with the sometimes aggressive screening process the IRS uses for HH and EIC returns, but I know these are her kids that reside with her and there are no shenanigans happing in this situation so I figured the refund would arrive in a few months, but nothing yet. 

I took another look at the return and realized I made a mistake on the W2 entry form.  Apparently she used to work for a temp agency and had since become a permanent employee for the same company.  However, obviously the W2 was now being issued by the the company and not the temp agency.  The W2 amounts are all correct but the payer info such as EIN and Company Name and Address are different.

So what is the most efficient way to address this issue since it's sort of caught in IRS system limbo.  Should I electronically file an amended return with the correct W2 Payer Info and indicate the mistake on the 1040-X?  Should I call the Practitioner Priority Line?   I have hesitated to file an amendment because I don't know if that will make it worse and delay it more.

She is understanding but I feel bad because not only has her refund taken this long, she also hasn't received any of the Advanced Child Tax Credit Payments.  I'd like to get it resolved prior to next tax season but that's looking like a long shot.

[ILLMAS]

Not an issue at all, just as long as the SSA-W2 Copy A numbers matches the tax return, your okay.

[Sara EA]

These things happen when the software automatically populates fields and we're too busy to attend to minute details.  (Anyone pay attention to some brokerages that changed addresses last year?)  I looked over the revised Pub 1345 for efiling and was hit with the requirement that if a client has moved and the tax forms have the old address, we are supposed to enter it into the space provided.  I guess I always knew that but stopped doing it long ago.  Also, any handwritten or typed tax form has to be marked nonstandard.  Such items may seem insignificant and don't affect the numbers at all, but I guess they're important to the efile and identity theft guards.

[Abby Normal]

On 11/17/2021 at 8:39 PM, Sara EA said:

Anyone pay attention to some brokerages that changed addresses last year

I've never entered an address from a brokerage 1099. Just abbreviated name and amounts.

[Pacun]

Just wait for the refund. You can also call the hotline and ask about the refund status. Don't mention your mistake because you might succeed on the difficult task of confusing the IRS. 

[Chowdahead]

So the consensus is that I should not file an amendment with the same amounts but different W2 Payer info, while explaining the amendment under Explanation of Changes on Page 2?

Would the Payer info on the W2 Entry form being different not typically trigger such a delay?  The IRS Where's My Refund page is useless as it has said "Your tax return is being processed" since March with no specific info.

I know there may be two forms the IRS uses to authorize the preparer to discuss a client's return with them.  One is the  2848 Power-of Attorney which I believe is more effective.  I can't remember the other.  Is the 2848 generally sufficient?

[ILLMAS]

30 minutes ago, Chowdahead said:

So the consensus is that I should not file an amendment with the same amounts but different W2 Payer info, while explaining the amendment under Explanation of Changes on Page 2?

Would the Payer info on the W2 Entry form being different not typically trigger such a delay?  The IRS Where's My Refund page is useless as it has said "Your tax return is being processed" since March with no specific info.

I know there may be two forms the IRS uses to authorize the preparer to discuss a client's return with them.  One is the  2848 Power-of Attorney which I believe is more effective.  I can't remember the other.  Is the 2848 generally sufficient?

No

No

Yes

Have your client call and find out what is the delay, I have been warning all my clients, if you refund doesn't arrive in a timely manner, call the IRS and keep me posted.

[Max W]

This is going to result in a CP2000 letter.  The current EIN will show up in the IRS transcripts and the wrong one that was used will not, so there won't be a match.

It should be easy to explain this to the IRS.  What might be more difficult is explaining it to the client.