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Posted by Bob Sandler on September 11, 2007, 4:41 pm
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> The IRS e-file standards (Pub 1345a) will not allow you to e-file
> when 50% or more of your gross Form 1099 distribution is withheld
> as taxes.
There is a similar restriction for W-2s. Would anyone care
to speculate as to why the IRS imposes these restrictions
for e-filing?
Bob Sandler
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<< that may be imposed upon the taxpayer. >>
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Posted by Don Priebe on September 12, 2007, 10:05 pm
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>> The IRS e-file standards (Pub 1345a) will not allow you to e-file
>> when 50% or more of your gross Form 1099 distribution is withheld
>> as taxes.
> There is a similar restriction for W-2s. Would anyone care
> to speculate as to why the IRS imposes these restrictions
> for e-filing?
They even question legitimate W2s where the withholding is
twice as much as the gross income!
See http://www.w2in.com/funnyw2.jpg
--
Don EA in Upstate NY
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Arthur Kamlet on September 12, 2007, 10:05 pm
Please log in for more thread options >> The IRS e-file standards (Pub 1345a) will not allow you to e-file
>> when 50% or more of your gross Form 1099 distribution is withheld
>> as taxes.
> There is a similar restriction for W-2s. Would anyone care
> to speculate as to why the IRS imposes these restrictions
> for e-filing?
Pure speculation:
The cases where witholding % is 50% or more, are probably
rare, and the IRS figures this is more likley to be an ERO
typo or fraud, than a correct entry.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on September 12, 2007, 10:05 pm
Please log in for more thread options >> The IRS e-file standards (Pub 1345a) will not allow you to e-file
>> when 50% or more of your gross Form 1099 distribution is withheld
>> as taxes.
> There is a similar restriction for W-2s. Would anyone care
> to speculate as to why the IRS imposes these restrictions
> for e-filing?
The 50% was an arbitrary percentage designed to indicate the
possibility that any such W2 just might be fraudulent. IOW
they saw in the early days of efiling that most all the
cases of EIC fraud included this one indicator.
I am amused at it betimes, esp since my own withholding from
my pay check from my own corporation can't exceed that in
order that I might be be able to efile my own return. Of
course I could withhold, say... 70%, and then end of year
just go ahead and file on paper, unlike 99% of my clients
whose returns are filed electronically. (grin)
ChEAr$,
Harlan Lunsford, EA, ERO and ET in LA
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Barry Margolin on September 14, 2007, 12:35 am
Please log in for more thread options >>> The IRS e-file standards (Pub 1345a) will not allow you to e-file
>>> when 50% or more of your gross Form 1099 distribution is withheld
>>> as taxes.
>> There is a similar restriction for W-2s. Would anyone care
>> to speculate as to why the IRS imposes these restrictions
>> for e-filing?
> The 50% was an arbitrary percentage designed to indicate the
> possibility that any such W2 just might be fraudulent. IOW
> they saw in the early days of efiling that most all the
> cases of EIC fraud included this one indicator.
Do they think that these people are less likely to try to
submit a fraudulent return if they have to mail paper?
If this is a common fraud indicator, why don't they just put
it in their super-secret audit criteria?
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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