17 May 2017 What's the risk when employees take correction of Form W-2 into their own hands? With the 2016 tax filing season over for most taxpayers, we have had the opportunity to reflect on the many issues brought to our attention as they pertain to employer reporting on the Form W-2, Wage and Tax Statement. One matter in particular caught our attention due to its risk in the current environment of IRS enforcement. At times, employees or their tax preparers may be aware of a wage reporting error on the Forms W-2 provided by their employers; however, for whatever the reason, the employer does not issue a Form W-2c Corrected Wage and Tax Statement. According to the instructions on the Form 1040, the employee is required to report the correct wage, even if it does not appear on the Form W-2. In this edition of Payroll Newsflash, attached below, EY’s Workforce Advisory Services-Employment Tax Advisory group discusses the current environment for detection and enforcement of employer wage and tax reporting.
Document ID: 2017-0812 | |||||||||||
