The TIN entered in the Form W-2, Wage and Tax
Statement, in the electronic return record must be identical to the TIN on
the version provided by the taxpayer. The TIN on the Form W‑2 should be
identical to the TIN on the electronic return unless otherwise allowed by
the IRS. The IRS requires taxpayers filing tax returns using an Individual
Taxpayer Identification Number (ITIN) to include the TIN, usually a Social
Security Number (SSN), shown on Form W-2 from the employer in the electronic
record of the Form W-2. This may create an identification number (ITIN/SSN)
mismatch as taxpayers must use their correct ITIN as their identifying
number in the individual income tax return. The IRS' e-file system can
accept returns with this identification number mismatch. EROs should enter
the TIN/SSN in the electronic record of the Form W-2 provided to them by
taxpayers. Software must require the manual key entry of the TIN as it
appears on Form W-2 reporting wages for taxpayers with ITINs. EROs should
ascertain that the software they use does not auto-populate the ITIN in the
Form-W-2 and if necessary, replace the ITIN with the SSN on the Form W-2 the
taxpayer provided.
Incorrect TINs, using the same TIN on more than one
return or associating the wrong name with a TIN are some of the most common
causes of rejected returns (see "Acknowledgements of Transmitted Return
Data" in "ERO Duties After Submitting the Return to the IRS").Additionally, Name Control and TINs
identify taxpayers, spouses and dependents. A Name Control is the first four
significant letters of an individual taxpayer’s last name as recorded by the
Social Security Administration (SSA) or the first four letters/numbers of a
business name. Having the wrong Name Control associated with a taxpayer’s
TIN contributes to a large portion of TIN related rejects. The most common
example for a return rejecting due to a mismatch between a taxpayer’s TIN
and Name Control involves newly married taxpayers. Typically, the taxpayer
may file using a correct SSN along with the name used in the marriage, but
the taxpayer has failed to update the records with the SSA to reflect a name
change. To minimize TIN related rejects, it is important to verify taxpayer
TINs and Name Control information prior to submitting electronic return data
to the IRS.
The IRS has identified questionable Forms W-2 as a
key indicator of potentially abusive and fraudulent returns (see
Safeguarding IRS e-file from Fraud and Abuse above). Be on the lookout for
suspicious or altered Forms W-2, W-2G, 1099-R and forged or fabricated
documents. EROs must always enter the non-standard form code in the
electronic record of individual income tax returns for Forms W-2, W-2G or
1099-R that are altered, handwritten or typed. An alteration includes any
pen-and-ink change. Providers must never alter the information after the
taxpayer has given the forms to them.Providers should report questionable
Forms W-2 if they observe or become aware of them. See "Reporting Fraud and
Abuse Within the IRS e-file Program".
Addresses on Forms W-2, W-2G or 1099-R; Schedule C
or C-EZ; or on other tax forms supplied by the taxpayer that differ from the
taxpayer’s current address must be input into the electronic record of the
return. Providers must input addresses that differ from the taxpayer’s
current address even if the addresses are old or if the taxpayer has moved.
EROs should inform taxpayers that when the return is processed, the IRS uses
the address on the first page of the return to update the taxpayer’s address
of record. The IRS uses a taxpayer’s address of record for various notices
that it is required to send to a taxpayer’s "last known address" under the
Internal Revenue Code and for refunds of overpayments of tax (unless
otherwise specifically directed by taxpayers, such as by Direct Deposit).Providers must never
