Use of Leave and Earnings Statement

Although income tax returns may be prepared using a Leave and Earnings Statement or other income and Federal tax withholding documentation, the return must not be electronically filed before the Electronic Return Originator (ERO) receives the related Form W-2, W-2G, or 1099-R.

A Form 4852 may be used only if the taxpayer can not obtain and provide a correct Form W-2, W-2G, or 1099-R. Form 4852 must be completed following existing instructions.

The non-standard W-2 indicator must be included in the electronic record if Form 4852 is used. EROs must retain Forms 4852 in the same manner as Forms W-2, W-2G, and 1099-R.

EROs must never advertise that returns may be electronically filed before the receipt of Forms W-2, W-2G, and 1099-R. EROs are prohibited from electronically filing returns without Forms W-2, W-2G, and 1099-R except as stated above.

Any violation of these rules will result in sanctioning of the ERO as described in Revenue Procedure 2000-31, published July 31, 2000, in the Internal Revenue Bulletin, 2000-31.

This information applies to all years of the Taxwise software.