What do you need to file your taxes?

I was asked to rush out 1099-MISCs to a client's independent contractors "so they could file their taxes," which got me thinking about what you actually need to file a tax return.

The most important thing is to know the types and amount of income and expenses you received last year. Information forms like W-2s, 1099s, etc. can be a tool for you, but I believe their primary purpose is to help the IRS identify unreported income.

Do you need a W-2?

I found several articles on the internet explaining how to file a tax return prior to receiving your W2. I don’t advise this, for a variety of reasons - one of which is that the W-2, when it arrives, doesn’t always match your last paystub, which can require you to file an amended return. If you file on paper, W-2’s and any other information forms that show withholding should be attached to your tax return.

Authorized IRS e-filers (like me), are prohibited from e-filing returns before all the W-2s, W-2Gs and 1099-Rs are received. (As you know, W-2s report wages and withholding, but unless you’ve been lucky, you may not have seen a W-2G which reports gambling winnings and any withholding, 1099-Rs report pension distributions, including early distributions from IRAs or 401(k)s). As I have received not only email alerts, but a paper mailing from the IRS just to remind me of this, I expect it to be an enforcement focus this tax season.

What if you don’t receive a W-2 (or other information forms)?

The first step is to contact the issuer (your employer for W-2s). The issue could be something as simple as you’ve moved and they don’t have your correct address. If you cannot contact the issuer, or you have and they will not supply the form, after February 14th, you can contact the IRS at 1-800-829-1040.

If there is no other resolution, you (or your tax preparer) can prepare a substitute form (form 4852) that contains not only the missing data from the original form, but a description of how you arrived at your figures, and what steps you’ve taken to obtain the missing document. You can use the same form if you believe the W2 you were issued was erroneous. Like your tax return, you are required to sign this form under penalties of perjury. The IRS states that returns with from 4852 are generally not filed before April 15th.