Amending a return with partner benefits

[Margaret CPA in OH]

An unmarried couple have provided support references showing that, if a domestic partner qualifies for benefits, those benefits are not taxable if the partner qualifies as a dependent. The employer is not willing to reissue 2008 and 2009 Forms W-2 although the HR department now acknowledges that those benefits are not, in fact, taxable. They are changing this for 2010.

But how do I amend a return with an incorrect Form W-2? I was thinking to attach a copy of the last paystub with those benefits highlighted as they are clearly marked as taxable and also include copies of the documentation supporting the non-taxed status of such benefits for dependent partners.

Other ideas? Thanks for any suggestions!

[joanmcq]

I had one of these last year and did a subtraction for the excess taxable wages on line 21 w/a note in the return. Haven't heard anything yet.

[Margaret CPA in OH]

Thanks, Joan. I will also attach, I think, the year end statements which indicate the partner benefits as taxable income along with the reference as to why they are not taxable. It will be several hundred dollars for the taxpayer.

[Margaret CPA in OH]

I had one of these last year and did a subtraction for the excess taxable wages on line 21 w/a note in the return. Haven't heard anything yet.

Did you do anything about the FICA and Medicare withheld? This client was taxed on $6153.81 of partner benefits in 2009 so the payroll taxes were withheld, too. Any recourse possible with that? It was $458.38.