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Since this was for 2013 and even though you just received the information; possibly the IRS has already received all and you just need to ask them what they have. You might consider requesting a: Wage and Income Transcript A wage and income transcript reflects a taxpayer’s income as reported to the IRS. This type of transcript is available for the prior 10 years, but the most recent year’s information may not be complete until July. A wage and income transcript is where all of a taxpayer’s information concerning W-2s, 1099s, 1098s, K-1s, and 5498s is shown, and can be helpful for verifying employment or filing an extended tax return. These transcripts can be longer than 100 pages, but tax professionals may request a one-page summary version. HOPE THIS HELPS and yes, the things we learn from this forum are FANTASTIC ! As are those answering questions and giving ideas. THANKS !!

This isn't really big news, but it came up in another thread so I thought I should explain this feature a little bit. I've added a couple "reactions" to the list. So now, in addition to Like, Thanks, Haha, Confused, and Sad, we also have Thumbs Down and Angry. There is a point system going on behind the scenes associated with this feature, and those points are what determine who shows up on the Leaderboard. Like, Thanks, and Haha all contribute +1 points to a user's total. The rest are all neutral. There is an option to add negative (-1 point) reactions, but they're not currently enabled. I have chosen to keep Thumbs Down and Angry "neutral" because the could be used in different ways, for example: You might be annoyed that there is a new botnet or bit of ransomware floating around the internet, which you might want to give a thumbs down to show your annoyance with that news. You might want to show that you disagree someone's assessment of a particular tax-related situation. There is a possibility that I'll bring back the Downvote (-1 points) option for that second bullet point, but I haven't decided yet. I'm adding more emojis next.

From today's Quick Alert email:

One of the things I have noticed over the years is that we as tax preparers are now required to enter data into a tax return that we were never officially trained to be experts on - health insurance, EICs, investigative fact checkers, dependent Social Security numbers, divorce issues, lifestyle changes, engagement letters, etc etc that all create a larger liability for reporting than we ever bargained for - and we become the first victims IRS and tax authorities look to should a return have an issue. And we have to rely on the reliability of third party information. Until we can control our clients' honesty and reliability of data we're given, these problems are never going to stop.

We stopped taking new EIC clients when the due diligence rules were tightened and the fines went way up--too much risk. We only do a handful now, all from long-time clients we know, but we did raise their fees $25. Like John H, we send others to HRB and tell them their preparers have more training in this area, which is true. But how can you turn away clients with rentals or security transactions? Between those items and small businesses, that's the majority of our client base. While the forms for clients who purchased insurance through the exchanges are a pain, we don't discourage those clients. You have to tackle the forms anyway for those who had a lapse in coverage or are insuring a nondependent under the age of 26. We are seeing a number of audits for those who "forgot" to bring us their 1095As. If we could turn down anyone, I'd vote for those with education credits. We get a lot of audits, especially if there were 529 distributions. Hopefully this year the 1098Ts really will have the "amount paid" instead of "amount billed." I am so sick of putting returns on hold while parents try to get the financial transcripts from the schools. We'll still have fun determining the nontaxable portion of the 529 distributions, but that's why we charge the big bucks. So John H, if you don't have clients with EIC, rentals, and brokerage statements, who's left? After this busy summer, I don't want anymore clients who will get audit notices.

I agree with cbslee that there isn't harm in filing and is the safe route if you are unsure. Your client did receive both a 1099 and a W-2, and this would put the IRS on notice in case both are still in the system, and that would lead to the trail of IRS requiring this company to reclassify your client as an employee.

I think I would file the 8919 anyway. 1. If it works, your client's situation is significantly better. 2. If it doesn't work, your client's situation is no worse. No risk to filing it, really ?

Mine issue was with a bookkeeper not correcting a 1099-misc in the proper manner, and client and I weren't sure what had been filed with IRS. It wasn't meant to convert to a W-2, so my issue was different than yours. I thought my client might actually have three 1099s in the IRS system, but so far I'm not aware of any CP2000. We kept all the correspondence to and from the bkkpr as proof of what she did wrong, and she has since left the company. You could try calling but the company personnel might not talk with you, and with all of the scams and privacy concerns they probably shouldn't anyway. Plus, if the bookkeeper or person processing these forms doesn't know what they are doing, the person could also either turn the conversation confrontational or could end up asking for your direct free advice on the correct handling, and you don't want to be responsible for that instruction to a company that isn't your client.

FDNY - If you and the client have already determined his reasonable salary at a hefty $260k per year, and his hours haven't changed, then why would he need to increase his salary just because his investment in his company is doing well? Unless he is the only one providing goods/services for sale to his customers I'd say that no one is going question his salary. He's already paid taxes on the cash used for his distributions. The whole premise of the S Corp is to pay FICA only on income that is earned, and avoid the double taxation on dividends. I think we get tangled up with the reasonable salary for S Corp shareholders because there is no set calculation. The tax court cases were all about heinously low salaries and huge distributions. The court recharacterized that portion of the distributions to closely meet the SS wage limit in every case. I think it's a relatively safe bet that the SS wage limit would, in most cases, satisfy the reasonable salary requirement.

I believe someone here posted a case about a CPA or accountant that argued his client was a had a substantial increase in salary every year after his client was fined for not having a reasonable salary. If I remember, the person was making 20K as supposed to $200K, so the accountant would significantly increase the salary by $5K a year, that is a huge increase for someone making $20k lol.

Edsel: You and me and a little bit of software can set up a "bitcoin" like site. Then one day, we decide to "cash out". We convert others Bitcoin to other legal tender, and leave everyone else to fight amongst themselves for whatever is left. It has already happened a number of times.... I would call that a Ponzi like scheme. The US Dollar may be "funny" money, but it isn't nearly a humorous as these blockchain "currencies". Rich

My feeling is if the employer initially filed their W-2s with Social Security, then they would have to issue an amended W-2c with the first column showing zeroes. That is simply to match the 941-X, and new W-3c. If you have no impact on the employer, then the normal Abby is correct. Let them clean up their own mess. File 8919 and be done with it. I believe the statute of limitations is expired for 2013, unless IRS is bugging him. If this is his original return, it won't matter - the three year clock doesn't start until the return is filed. But if he has a refund, I doubt they will send it.

Just file form 8919 and be done with it. What the employer did or did not do, is of no concern.

Alright, added a bunch of emoticons/emojis/whatever. Nevermind! I had to remove all of the new emojis. I checked the roadmap for the forum software, and a new emoji system is in the works for the next version, and it looks like full unicode emoji support will be added. I want to avoid conflicts, so for now I'll have to get rid of the new ones. Sorry

I just heard, at an update seminar, that the date has been extended till Jan. 1, 2019, on the mandate for colleges to fill in box 1 of the 1098-T for all college students. So, for tax year 2017, we still have to play the billing statement game. Just like the usual IRS. Make a deadline (or so called), then extend it because of pressure from the people involved.