I have a client who provided a W-2 with an ITIN number. My software flagged the entry as invalid. I know that ITINs are not supposed to be valid for employment, but the client has a W-2. The client's spouse has a valid SSN and also W-2 income.
Has anyone else run in to this situation? I've searched the IRS site for information but have been unable to come up with anything that matches this situation.
A W-2 with an ITIN that is within the valid range should not prevent the return from being e-filed and accepted even though an employer is not allowed to accept an ITIN for employment purposes. We see a lot of clients with ITINs who are working under false or someone else's social security number. The proper method for filing is to use the ITIN as the taxpayer ID and enter the false W-2 number on the electronic W-2. Every once in awhile, one of our volunteers forgets to do that and the return is e-filed with the ITIN on the electronic W-2. Taxwise software does not flag it as being invalid. UTS accepts it and the IRS accepts it.
Is the ITIN within the valid range?
Valid Range for Individual Taxpayer Identification number (ITIN):
900-70-0000 through 999-80-9999 The valid range for the ITIN "Area" is 900 through 999. The valid range for the ITIN "Group" is 70 through 80. The valid range for the ITIN "Serial" is 0000 through 9999.
The ITIN number is valid. The W-2 had the ITIN number on the form - not a bogus SSN number. The error message I'm getting is software specific, and the client's 2007 return was efiled, so I know that problem is my software. I'm just surprised to see an ITIN number on a W2.
Thanks for the feedback.
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