FEIN Rejected with E-Filing Return

Technical topics regarding tax preparation.
#1
MWEA  
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Minnesota
Client hired a nanny in 2017. She applied for a FEIN in January of 2018 and filed a timely W-2. The nanny just attempted to file the return, but is was rejected due to the employer's FEIN. The nanny is not my client and I am not sure on the specific error code, but was told it was because the employer filed for the FEIN in 2018. Is the best course to have the nanny paper file? Or is there a different suggested work around?
 

#2
ATSMAN  
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Were you involved in cranking out the 2017 W2 for the nanny? If not who created and filed that W2?
 

#3
HowardS  
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I had a similar problem with a client and ended up paper filing. Details below:

Rule Number: FW2-505-01
Rule Number Description: The Employer Identification Number entered for a Form W-2 was issued in the current year according to IRS records. To review and correct your entries, go to Federal - Income - Wages, salaries and tips. If the Identification number is correct, you will be required to file a PAPER federal return for the current year.
Retired, no salvage value.
 

#4
makbo  
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MWEA wrote:Client hired a nanny in 2017.


How did the employer report and pay state unemployment insurance and other payroll taxes all year without a FEIN?
 

#5
Joan TB  
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payroll taxes for a household employee are part of the 1040ES tax payments or other withholding of the employer taxpayer. State Unemployment insurance may not need FEIN (maybe depends on the state?) Payroll reporting goes on Sch H, unless employer elects to file 941 or include household employee with 941 filed for "other" employees.
 

#6
MWEA  
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Minnesota
Yes, I was involved to a degree. I alterted the employer to the requirement to file and helped her use a third party online to file it. I also helped her file late state unemployment quarterly returns and make payments back for the prior year. The reporting will go on Sch H, the return is currently on extension.
 

#7
makbo  
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Joan TB wrote: State Unemployment insurance may not need FEIN (maybe depends on the state?)


In addition to state UI, there could also be state income tax withholding (if employer agrees). It seems highly unlikely that any state would not require a FEIN to get a state employer tax ID, Minnesota does according to their web site.
 


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