Form W-2, Line B ('Employer EIN') must match the data in the IRS e-File database.
Solution:
This error occurs when the Employer Identification Number (EIN) entered on the taxpayer's W-2 form does not match the IRS's records. This could be due to a typo, incorrect EIN, or an invalid W-2 form. Follow the steps below to resolve it:
Step 1: Verify the Employer EIN
Check the W-2 Form:
Look at Line B of the W-2 form provided by the employer.
Ensure the EIN entered in the tax software matches exactly what is printed on the W-2 form (no missing or extra digits).
Contact the Taxpayer:
If the EIN on the W-2 is unclear or incomplete, confirm it with the taxpayer.
Ask the taxpayer to double-check with their employer if they suspect the W-2 is incorrect.
Step 2: Identify Potential Errors
Check for Typos:
Verify that there are no accidental errors such as transposed numbers or missing digits in the EIN entered into the software.
Ensure the W-2 is Valid:
Verify that the W-2 form is legitimate and issued by the employer.
Be cautious if the taxpayer provides a handwritten W-2 or one from an unverified source.
Step 3: Correct the EIN
Update the EIN in the Software:
If a typo or error is identified, correct the EIN in the tax software to match the W-2 form.
Verify Employer Name:
Confirm that the employer name associated with the EIN is accurate. Mismatched employer names and EINs can also cause rejections.
Step 4: Contact the Employer if Needed
If the EIN Still Doesn’t Match:
Advise the taxpayer to contact their employer to confirm the EIN.
The employer can provide the correct EIN if there was an error on the W-2 form.
Request a Corrected W-2:
If the EIN on the W-2 is incorrect, the employer must issue a corrected W-2 (Form W-2c).
Step 5: Refile the Return
After Correcting the EIN:
Once the EIN matches the IRS database, retransmit the return.
Include Notes if Necessary:
If there are ongoing issues with the EIN and the employer cannot resolve it promptly, include an explanatory note with the tax return when filing by mail.
Additional Notes:
A mismatched EIN often indicates either a typographical error or an issue with the W-2 issued by the employer.
Always ensure W-2 forms are accurately entered into the software to prevent rejection.
By following these steps, the error can typically be resolved quickly.