The IRS has reminded authorized IRS e-file providers that they must not submit electronic returns to the IRS before receiving all Forms W-2, W-2G, and 1099-R from taxpayers. If taxpayers are unable to secure and provide a correct Form W-2, W-2G, or 1099-R, practitioners may submit an electronic return only after securing Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Insurance Contracts, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs etc. Form 4852 serves as a substitute for Forms W-2, W-2c and 1099-R and is completed by the taxpayer when (a) an employer or payer does not issue a Form W-2 or Form 1099-R or (b) an employer or payer has issued an incorrect Form W-2 or Form 1099-R. Providers may use information from paystubs or Leave and Earnings Statements (LES) to complete Form 4852 but not to file a return.
The IRS may conduct monitoring visits to ensure compliance with Rev. Proc. 2007-40, I.R.B. 2007-26, 1488, and with IRS e-file rules. The IRS may warn or sanction providers that violate the IRS e-file rules. Sanctions may be a written reprimand, suspension or expulsion from participation. Additional information regarding efile requirements can be found in Publication 3112, IRS e-file Application and Participation.
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