2 different employers using same EIN, one as agent for the other, turbo tax needs to fix _ IRS Rev. Proc. 2013-39

[Miamiaminmin]

IRS Rev. Proc. 2013-39

says you can have 2 different employers using same EIN if one is an “Agent” for the others. One of the W2 says “agent for XXX” but both have same EIN.  These W2s are correct.  TurboTax needs to allow this as 2 different employers so that the IRS refunds Money directly to the filer.  The employer is not responsible for this.  How do I get TurboTax to fix this?  In previous versions would ask if these were different employers and do this automatically.  Now that option doesn’t exist. 

UPDATE:  2/19/2022 - I like Turbotax in general, but seems Turbotax doesn't really understand what is going on in this situation.  Anyway, I've been doing a work around so that I can still use Turbotax:

First, for the W2, the "agent for: " is always under the same instituation name as my other W2.  When I've received letters from the IRS in the past to correct this, they only list the first line.  So now, I flip it and put the "agent for: "  in the first line when entering my W2 into Turbotax. 

Then at the very end, when i am done entering everything else,  I choose to view and work on "forms"  (ususally upper right tab option) instead of the "step by step" walkthrough.  

 I identify  form Schedule 3, (in the 2021 version) line 11 will say "excess social security and tier 1 RRTA tax withheld".  I double click on the entry line and  a calculation box pops up and you enter the excess social security that was withheld ( 2021, any amount over $8853.60=6.2% x 142800).

I check to see that the excess is listed on form 1040 line 31.  I only have this as excess pay so the amount is the same as schedule 3, line 15, but if anyone has other credits, it should add up in line 15 and get tranferred to the 1040 form.

No saying the IRS still won't identify this as an error but at least I don't have to worry about overpaying then hoping for a refund. I did this the last couple years and haven't heard from the IRS as an error.  Either way, in the past  when the IRS did send me letters, i just reply with a form letter from my employer stating IRS Rev. Proc. 2013-39 and they drop it so I know the W2s are correct. 

Turbotax- easy fix- just go back to the old option of letting us decide if the W2s are from 2 employers and allow the excess social security amount to go through.

UPDATE: 2/18/2023: At this point, it's like TurboTax is doing this to annoy us.  Now you cannot use the "override" option on the online version to change the forms.   I read if you change the CD version you can make the change, but can't e-file.  You also do not get their guarantee, which I never wanted anyway.  I have to print out the forms and make the changes manually.  UGH

[BillM223]

"If the agent (a) is acting as an agent for two or more employers or is an employer and is acting as an agent for another employer, (b) pays social security wages to an individual on behalf of more than one employer, and (c) the total of the individual's social security wages from these employers is greater than the social security wage base, the agent furnishes and files separate Forms W-2 for the affected employee reflecting the wages paid by each employer." See IRS Rev Proc 2013-39.

Did your "agent" actually give you two W-2s? Did they put the agent's EIN on both W-2s or those of the original employers?

As I recall, at one point, the IRS started sending out audit letters to taxpayers who tried to claim the excess tax on the 1040; it was after this that TurboTax removed the agent screens that you spoke of.

Unfortunately, I don't see in the Rev Proc what one should do if the same EIN is used in multiple W-2s, it just says that it may happen.

[Miamiaminmin]

Yes, I received 2 W2s, same EIN, one says “agent for: xxx” other doesn’t.  The first line is the same name and on one of the w2 forms, second line “data agent for”.  I did receive a letter from the IRS from a couple previous tax years (?? 2017, 2018) stating they I need to ask for the refund from my “employer”, but on the letter they listed the employer line from the first line of TurboTax but not the sending line that’s says “agent for”. So in the IRS letter looks like identical employers.  I sent them a response letter with a copy of the w2 saying “agent  for “ and they resolved it.  Did not have to do anything after.  I did this 2 years in a row then foe past couple years I just switched it and put the “agent for” line in the first line for TurboTax and manually put in the amount in TurboTax and haven’t heard anything from IRS.  My company had to send me a letter explaining the situation which included the tax code I included here  that I sent with the response.  It’s a big organization that says they spoke to irs and this is correct way and that I should get the refund from irs. 

[gaubert]

I agree with you I have the same issue. TurboTax is wrong and I was hoping they would fix it this year. 

[hayhuraj]

I also had 2 W-2s this year with the same EIN, one was an agent of the other. I spoke with a TurboTax representative on the phone to figure out how to fix this issue. They said "I read and article online which says TurboTax cannot handle this scenario." Sounds like the bug has still not been fixed.

I have really enjoyed using TurboTax over the past several years. But, if their suggestion is "go away" rather than any kind of help, I don't think I will be a customer any longer.

[gaubert]

Agree I try every year and it is the same issue

[MarilynG1]

It's not so much that you can't enter two W-2's with same EIN in TurboTax, but in Efiling, it gets kicked out as 'duplicate W-2'  by the IRS computers.

If the EIN's are the same, you could combine the info into one W-2 entry.

[Ali04]

Hi, that seems like a very simple solution, but will the IRS flag it because it should be two separate instead of 1? The EIN numbers are identical….

[DanP0428]

I would combine the amounts on the two W-2 forms and enter in TurboTax as one W-2. Then keep the two W-2's with your 2021 tax records and be prepared to explain if the IRS contacts you about it.  You are not doing anything wrong, but the IRS computer might not be happy.  

[DMarkM1]

@Ali04  As @DanP0428 states the IRS computers might kick this out, but a human at some point will see what is going on.  Therefore you may get a computer generated letter and have to explain, which will be read by a human.  Then again a human may intervene before the letter gets sent and you'll be good to go as they will see the two W2s and the totals on your return match.    

[Anonymous]

Anything new with this for tax year 2022, or any more elegant solutions that anyone has found? It seems mind boggling to me that I can't just simply enter the W-2s as received from my employer and then edit form Schedule 3 line 11 to add the credit myself. 

The instructions for line 11 even explain this exact situation when I view the form that is generated for me:

The calculated amount for Excess social security and tier 1 RRTA tax withheld could include

a portion that needs to be removed. When a taxpayer has multiple W-2's, each with the same

EIN, excess withholding can only be claimed if the Employer's Name's in box c of the W-2's

reflect separate business entities. This could occur when a parent company has multiple

subsidiaries, or when a temp agency issues W-2's for distinctly different jobs. If you have

multiple W-2's with the same EIN, for the same taxpayer, and for the same job, reduce the

amount calculated on Line A below by the excess withholdings from only those W-2's.

[SteamTrain]

@Anonymous 

Several years ago (5?, 7????) , the TTX software allowed you to put in both, and then there was a follow-up question about the two W-2s being from a payroll agent with the same EIN on both.

BUT

I think there may have been too many issues with people double-entering their W-2 forms, Or a person entering both spouse's W-2s (for same company) as only from one of them...so the option was eliminated.

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The Desktop software can still kind-of handle the issue with any excess....and any SS overpay as a result can be corrected in the Desktop Forms Mode, but I have no idea if it blocks you from e-filing.  Certainly no immediate error was generated in my test file.

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