Incorrect W-2

[Janitor Bob]

My client worked for a local restaurant that, in my experience, is famous for making w-2/1099 errors....It is a small family-owned business that is trying to do too much on its own without help from outside accounting/payroll companies.

back to my point....client worked in the kitchen and had non-tip wages for 2008 of $1,344.00 and Federal taxes withheld of $5.00 every week for 28 weeks ($140.00 total withheld). Her last check stub clearly shows this income and tax withheld for the year.

However, her 2008 W-2 has nothing in boxes 1-10....In the earnings summary portion of W-2, it lists $1,344.00 non-taxable compensation.....but my client clearly had $140.00 withheld in Federal taxes!

Because client gets EIC.....including this income as earned in box 1 of W-2 would increase her EIC by approx. $400.00...So client desperately wants a corrected W-2 that accurately shows income as taxable and indicates the $140.00 withheld in Federal tax.

Both she (and myself via a letter to employer) has explained the error requested the corrected W-2. The employer verbally acknowledged the mistake, but has not sent a corrected W-2.

I need to file an amended return for the client showing this income as taxable and stating the fed tax withheld, but what form should I use 4852?

[jainen]

>>should I use 4852?<<

Yes, looking strictly at the worker's tax position a substitute W-2 will get the job done. It carries some risk of examination, however, so you should prepare a good backup file including such things as time sheets and work schedules if available. The company might find it awkward, and if that is a concern of your client you should probably continue discussions. You may need nothing more than a sample W-2C for their guidance.

[JohnH]

Yeah, and tell they should quit using QuickBooks until they invest in some instruction to learn how it works...

[kcjenkins]

JB, sometimes people don't do something that they agreed to do just because they are not sure how to do it. Perhaps you could offer to prepare the forms for them [you already have their EIN, etc, ] for a modest fee? That would help your client to get their refund faster, and it might even lead to a new client for you, at least for some piece-work. And it's really easy to do using the ATX software.