The New tax Law!

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  • #4216016 Reply

    Jg

    New in 2017: The IRS scrutinized income reporting before sending refunds
    Starting in the 2017 filing season, the IRS started upfront matching of filed tax returns against Forms W-2 and Form 1099. These information statements show the income that taxpayers receive during the year.

    Here’s how the matching works:

    The IRS receives the tax return like usual.
    The IRS matches the return against Forms W-2 and/or Forms 1099 that the IRS has received.
    If everything matches between the return and the information statements, the IRS releases the refund.
    If the IRS finds a mismatch, the IRS freezes the refund and sends a notice to the taxpayer asking for more information to prove his or her income and withholding.

Viewing 11 replies - 1 through 11 (of 11 total)
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  • #4217533 Reply

    Lori

    All I was saying from my understanding it’s a system they have that can do a verification of w2s and 1099 forms and it flags those who dont add up. For example schedule C some people claim self employment and the income is more than $10,000 so they can receive a refund, now in the past it was overlooked but it has become a problem with erroneous claims being filed so now if you don’t submit the proper forms that will trigger a flag for possible audit.

    #4217389 Reply

    Is it possible that it isn’t a law (I’m not confirming or denying…just stating) and that they are transitioning into the practice of W2 verification in anticipation of the law?

    Working for large corporations (and I know some will probably judge me and this comment b/c it is the IRS after all), haven’t we seen practices/procedures evolve without the actual manuals being changed to allow acclimation/less chaos on the execution of “said procedure”?

    That was the only bridge I could offer to gap the two sides…

    #4216308 Reply

    Lori

    @sarah it’s good to know you’re a tax preparer but you do not work for the IRS and some of the new tax laws mentioned in the topic of this forum are being used this year. The IRS systems may miss some people but when you file the amended returns for the w2s not reported that can cause a flag and audit. Most of us are aware that the transcripts aren’t done processing until December which is why people can be audited at any given time. This information is on the IRS website, also it states that you should wait until you receive all w2s to file.

    #4216294 Reply

    Sarah

    ALSO transcripts are NOT complete until the end of the year. So 2017 wage and incom transcripts are not 100% accurate until December 2018. Smh

    #4216291 Reply

    Sarah

    Again false information. You guys hear s rumor and run with it. I did my moms taxes and after I exiled it (I’m a tax preparer) another W2 came February 5th. She got her refund today. I didn’t report all the w2s and still got her refund. (I’m filing an amended) but this post is 100% false.

    #4216282 Reply

    Lori

    From my understanding it’s for those who file Schedule C and claim more than 10,000 but they didn’t file a 1099 so they’re being asked to provide proof. @Bellbor242 you’re right that’s what tiggered the ” a date will be provided when one becomes available” there’s a lot more people saying that this year that I’ve noticed.

    #4216184 Reply

    Skittlez

    @Jg I hope it does cuz they take long enough lol.
    @Bellbor242 I need your mother n law to push my ddd to the 17th please!!!! Lol I hate the path act

    #4216175 Reply

    Jg

    @Bellbor242 so they matching everybody who filed raxes income to their W2 or just path. I had saw it online and just thought people should know.

    #4216137 Reply

    Bellbor242

    This is what i posted ! My mother-in-law works for ***, and not seasonal, but full time. She told me that they were matching income to w-2 and also, the self employment will be subject to scrutinize and is the case of some seeing the ” a date will be provided when one become available ” instead of the PATH message.

    #4216128 Reply

    Jg

    @ skittlez I have seen on the irs website that employers have to send in the w2’s now by the 31st to the irs because of the path. However its not like everyone is talking about it, so you could be right.

    #4216052 Reply

    Skittlez

    I read a boy that it’s proposed not a passed law and if it passes it will cost millions. If it passes it would start in 2019, not now. Nothing to worry and bout and bouts ngress doesn’t wanna spend that type of money on it. That’s why it didn’t pass during Obamas time.

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