Question

Can a tax return be fully processed without the IRS having my W-2?

Forum|Forum|4 years ago
September 30, 2021
1 reply
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Dear community users,

I was wondering if it is theoretically possible for a tax return to be fully processed without the IRS having access to my W-2.

I e-filed my 2020 tax return using TurboTax Deluxe in April, entering my W-2 information as requested. Since 1) my calculated AGI and the IRS-calculated AGI match and 2) the tax return was fully processed and a refund was issued, I'm thinking IRS had access to my W-2 (as they should).

However, I also got a CP12 Notice denying my claim of the Earned Income Credit (EIC), which says "You must report earned income on your tax return to qualify for the credit (288D)." This, in addition to the fact that I don't see my W-2 on my "IRS Wage and Income Transcript" makes me think that maybe IRS doesn't have access to my W-2. Was I not reporting my "earned income" by submitting my W-2 information as part of the tax return?

Now I'm confused which scenario is more likely (IRS having my W-2 vs. IRS not having my W-2) and am wondering whether I should take any action to correct things as necessary.

Any relevant advice would be greatly appreciated!

TurboTax Deluxe Online

M

Mike9241

with an e-filed return, the actual w-2 is not needed. The way it works is that employers send the original W-2's to the Social Security Admin and then the SSA sends the federal info to the IRS. this is how the IRS is able to verify what you entered for your W-2.

did you look at your tax return transcript (not your w-2 transcript) because that would show as filed (what you entered) and as per IRS records (what they got from the SSA)? if the wages match they got the info.

since you disagree with the notice which could be in error contact the IRS at the toll-free number shown on the top right corner of your notice or respond by mail to the address on your notice. If you write them, include a copy of the notice along with your correspondence or documentation. so try calling first. if you can't get through send in the notice with a copy of the W-2 (keep copies for your records of what you send) and a letter stating you disagree with the notice since you did have earned income - copy of w-2 enclosed. please revise your records accordingly. sign and date. this could take months to resolve.

Critter-3

Look at the W-2 that was issued ... is the SS# on the form correct ? If not then that could be a reason the IRS doesn't have it. Or contact your employer ... did they send the W-2 & W-3 in timely or at all ? If they mailed it in then it is possible there was either a data entry error on the SS admin side or it still has not been processed yet.