The Tax Attic with Jerry Coon

January 28, 2010 // 0 Comments

  What to do if errors on your W-2 or 1099 Since deer season is over, the Lions are mercifully finished for the year, I’m too busy to go ice fishing, NASCAR doesn’t start until Daytona next month, and why watch golf without Tiger, I will get my cup of Herman’s Boy Pantlind Blend coffee and write an article for this week’s Squire. A few weeks ago, I wrote about not receiving a W-2 or 1099. This week, I will expand on what happens if the W-2 or 1099 is received, but it is incorrect or is the wrong form altogether. Do you have any recourse if the W-2 or 1099 has the wrong information on it when you receive it? Yes, you do. Remember that the original set of forms doesn’t have to be sent in to the appropriate agency, either the Social Security Administration or the Internal Revenue Service, until February 28. Since you normally receive the form in January, the employer has plenty of time to correct administrative errors such as an incorrect street address or wrong zip code. Those types of errors are easy to correct and most employers are quite accommodating. However, what can you do if the error is of the dollar amount variety, i.e. gross wages is wrong or the federal or state withholding is wrong? Can these errors be fixed? These errors are a horse of a different color. In the federal payroll reporting system within which all employers operate, the dollar amounts that are summarized on your W-2 have been reported quarterly to the Internal Revenue Service. The amounts withheld from your paycheck for federal withholding, Social Security, and Medicare taxes have been paid over to the IRS throughout the year. When you receive your W-2, it is a summary of the activity that occurred under your Social Security number throughout the entire year. If you believe there is an error in the gross wages reported or in the amount of federal tax withheld from your wages and you are correct, this can be a total nightmare for the employer. The company has already paid in the amounts withheld from your checks as well as the amounts it had to match for Social Security and Medicare […]