IRS: Don’t Advertise Services with W-2 Forms

[HV Ken]

Looking through one of my emails from Accounting Today, there is this story "IRS: Don’t Advertise Services with W-2 Forms".

See: http://www.accountingtoday.com/news/IRS-Advertise-Services-W2-Form-65965-1.html?ET=webcpa:e6788:210568a:&st=email

Just in case, here is another link: http://bit.ly/13KRHfg

Wouldn't you know it, the next W-2 I open up, on the back of the mailing address is "H&R Block is offering special discounts"

How come the big stores keep getting away with things us little folks can't ?

[BulldogTom]

I worked for a temp service last year. At the bottom of my W2 was a Jackson Hewitt discount coupon.

Tom

Hollister, CA

[Jack from Ohio]

The IRS statement is for tax preparation businesses that send out W-2s created by them. Not likely that JH or HRB do any payroll for the companies.

JH & HRB pony up big bucks to the companies to include their advertising on the W-2s. I tried to get in in my little town and found this out.

[HV Ken]

The IRS statement is for tax preparation businesses that send out W-2s created by them. Not likely that JH or HRB do any payroll for the companies.

That is really splitting hairs. If you prepare them, you can't advertise tax preparation services. If you don't prepare them, you can advertise tax preparation services.

[Elrod]

My head hurts when a long time client of mine brings their current year files in to me, all neatly placed in a HRB folder.

I just ask, where they got it?.............."In the mail."

[Guest Taxed]

Here is the key sentence: “Logos, slogans and advertising may be used on any permissible enclosure such as a check or account statement, other than information returns and payee copies."

So you can use a payroll stuffer in the envelope wth your services or coupon as long as you don't mess with the actual W2. My envelope has my company name and what services I provide.

[BulldogTom]

My w2 had a JH coupon attached to the bottom. It was perforated, but definately attached to the W2.

[BulldogTom]

That is really splitting hairs. If you prepare them, you can't advertise tax preparation services. If you don't prepare them, you can advertise tax preparation services.

Lets really split hairs. Could I put my advertisement in corp X w2's that you prepared, and you put your advertisement in corp Y w2's that I prepared?

Tom

Hollister, CA

[HV Ken]

Lets really split hairs. Could I put my advertisement in corp X w2's that you prepared, and you put your advertisement in corp Y w2's that I prepared?

Tom

Hollister, CA

Tom - If we were in the same location, sounds like a nice barter! Hmmm.... Would that be income? LOL

[gianni1212]

i've seen intuit w2's with the turbotax logo right on the w2!! this is actually printed on the w2....and how about the service where people who do payroll through quickbooks and quickbooks automatically sends all w2's to turbotax? i have heard from friends that they don't even need to punch in information from w2, they just log into turbotax.com and their w2 information is already there. this is very anticompetitive to us small tax preparers...not to mention the fact that people who do there taxes with us this year must bring extra documentation to claim eic...with turbotax they don't need to fill in 8867. yesterday i had a cilent who said that he could not prepare with me because he would then have to waste his time getting a letter from his kids school. this is getting really rediculous...but i guess it is hard for us to compete with these big companies lobbying power. I think maybe the answer would be for us to talk to the organizations that represent us, like natp, etc. and make sure that they are lobbying against these big corporations.

[BulldogTom]

I think maybe the answer would be for us to talk to the organizations that represent us, like natp, etc. and make sure that they are lobbying against these big corporations.

I wish that was the answer, but I don't think they do a good job of it. That is why I never joined NAEA or CSEA. Except for a little discount on the CPE, I see no value in their organization for my profession. I still can pay full price for my CPE and attend their functions, but when it comes to having a meaningful seat at any discussion about our industry with the government, I see a big void when it comes to the EA societies. Hell, we have been recognized for a very long time by the IRS, yet most of America doesn't even know what an EA is. If I may take liberty with a quote from one of my favorite movies "What we have here is a failure (by the EA society) to communicate (what an EA is to the American public).

Tom

Hollister, CA

[gianni1212]

i agree tom....they don't do a very good job at representing us. I remember sending NATP an email about how quickbooks practice is to set default option on all quickbooks payroll to automatically send w2 data to intuit. This is first very anticompetitive, and second a very blatant violation of privacy. They said they were unaware of this practice, but instead of asking for more info or at least trying to assure me by telling me that they would contact the irs etc, they just tried to sell me things like ce. I would love to start an organization that is just about representing us and doesn't sell any ce or other services that may distract from the focus. I think that this sort of organization, if it had enough members, could raise the significant amount of funds necessary to lobby congress against these big corporations.