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SS Card not valid for work, but working and has several W2s using that SSN, not qualified for the RRC?

Just-Lisa-Now-
Level 15
Level 15

I guess RRC isnt allowed for someone with  SS card that isnt valid for work?   

Hes got multiple W2s from working under the SSN and is paying taxes, you'd think hed still qualify.

Do we just fudge the RRC worksheet to disallow it, the program doesnt know the difference (or Ive never noticed a place to indicate that) so it wont do it automatically, or do we let the IRS make the adjustment...does IRS even know if an SSN is marked that way?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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qbteachmt
Level 15

"does IRS even know if an SSN is marked that way?"

We've seen people (lost) on this forum who realized all they had to do is Ask for their card to be updated.

And yes, that is specifically stated in the eligibility:

"are not a dependent of another taxpayer and have a Social Security number valid for employment"

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qbteachmt
Level 15

Here:

https://faq.ssa.gov/en-us/Topic/article/KA-01436

 

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TaxGuyBill
Level 15

Yes, you need to disallow the credit because you know it is not allowed.  You can probably do whatever you want on the worksheet to disallow it.

Social Security Cards marked Not Valid For Employment were commonly issued years ago to facilitate payment of social Services,Welfare, benefits for undocumented aliens primarily medical benefits. My experiance is that Social Security leaves it up to the tax preparer to make that determination and does not keep track of this issue. The reason you receive w2s with these numbers is the Employer is not verifying the social secrity number at the time of employment as required by law. A similar problem exist when ficticious numbers appear on the w2s  for ITIN number holders. You will get an error message for the ITIN error or social security number not in valid range and you have to go to the W2 worksheet and indicate the social security number on the W 2 even if it is ficticious. You may also find it amazing that I have udocumented tax filers with ITIN numbers that have been doing this for 10 years and the issue still remains unresolved. What is the point of an ITIN number if employers are istructed not to accept them and yet do not use e verify to confirm socials. Just saying! There is hope  as I hope this helps

 

Just-Lisa-Now-
Level 15
Level 15

I do have one client with a spouse that has an ITIN yet she works under false SSN on a W2, same job, same employer for a decade at least, we file it that way every year never had an issue.

I dont know whether she will ever get any SS credits for herself though.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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itonewbie
Level 15

@Just-Lisa-Now- wrote:

I dont know whether she will ever get any SS credits for herself though.


No, she won't.

There are also 941's filed with incorrect or missing SSN's.  FICA that can't be assigned are set aside for allocation.  Those that are not eventually corrected will remain in a pool.

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itonewbie
Level 15

@Taxed preparer 66 wrote:

Social Security Cards marked Not Valid For Employment were commonly issued years ago to facilitate payment of social Services,Welfare, benefits for undocumented aliens primarily medical benefits.


Since the 1970's, SSN's are issued, by law, only to US citizens and aliens who are legally admitted.  Undocumented aliens were not eligible for SSN's.

Before the introduction of ITIN, legally admitted aliens, including those with temporary visas such as students and dependents of employment visa holders, were eligible for SSN.  From January 1996, the SSA started restricting the issuance of SSN to these aliens only if they are green card holders, employment visa holders, or have a valid nonwork reason to be issued one.

There are two different notations for aliens who are not otherwise authorized for employment:

  • NOT VALID FOR EMPLOYMENT
  • NOT VALID FOR EMPLOYMENT WITHOUT AUTHORIZATION

The reason you receive w2s with these numbers is the Employer is not verifying the social secrity number at the time of employment as required by law.

This is not about illegal use of real SSN's of others by undocumented aliens. As Lisa pointed out, it is a widespread and recognized issue.  Nevertheless, it is a different problem unrelated to EIP.

This is mostly about taxpayers, who were issued SSN's when they were not authorized to work (e.g. as a student years ago or as dependents of employment visa holders), not having updated their records with the SSA after gaining authorization for employment (e.g. as employment visa or green card holders).

Employers of these legally admitted aliens would have gone through an elaborate process to validate their eligibility for employment (and, in some cases, for the sponsorship of their visas) but none of these involve updating the SSA's records, which the individuals must undertake separately.

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Just-Lisa-Now-
Level 15
Level 15
This one said Without Authorization and their immigration attorney told them he is allowed to work and has been working for several different employers....still no RRC?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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itonewbie
Level 15

@Just-Lisa-Now- wrote:
This one said Without Authorization and their immigration attorney told them he is allowed to work and has been working for several different employers....still no RRC?

Your client needs to apply for a replacement social security card at the SSA with proof of employment authorization.  His records with the SSA would then be updated.  It's a routine process.

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BobKamman
Level 15

@itonewbie  "It's a routine process."

It used to be, when Social Security offices were open.  

"There are also 941's filed with incorrect or missing SSN's"

941's haven't been filed with SSN's since the late 1970s. SSN's are only reported on W-2s.  

 

Just-Lisa-Now-
Level 15
Level 15
Still no offices open around here, not as routine of a process.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
itonewbie
Level 15

@BobKamman wrote:

"There are also 941's filed with incorrect or missing SSN's"

941's haven't been filed with SSN's since the late 1970s. SSN's are only reported on W-2s.  


In the end, these need to be reconciled against W-3/W-2.  Have spent plenty of time helping MNC's rectify their year-end reconciliation of inbound and outbound international payroll reporting.

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