The tax chains know all of this and have no intention of actually filing a tax return for you until they have a copy of your W-2. Instead, for a hefty price, they will estimate how much your refund will be and make a loan to you based on your potential refund.
These loans carry steep interest rates.
Every year, there’s a new scam to bring in tax (and particularly loan) customers. January and February witness a great battle among the tax giants (and the do-it-yourself software makers) to bring in as many customers as possible. Their goal is to do whatever it takes to lock you in before you go to their competitors.
So my question to you is, when a tax service works against you, and has such shady practices, why should you trust them to prepare a return for you? Or even give them your financial information?
Tax planners often use a November or December paystub to help a client forecast tax liability, or to figure out if an end-of-the-year charitable contribution or transaction should be made. But that’s very different than selling you a 30-day loan that carries loan-shark interest rates.
There are a few, rare circumstances when you can omit a W-2 from your return:
If, after trying, you can’t get a W-2 from your employer by February 14, and you’ve contacted the IRS for help, the IRS will allow you to file Form 4852, which is a substitute for Form W-2. It asks you to estimate what your wages and withholdings were.
Also, if your W-2 is incorrect and you’ve been unable to get a corrected W-2, you can use Form 4852 with your tax return. Be warned that the Form 4852 instructions make it very clear that the IRS will severely penalize those who misuse this form.
Besides, what’s the rush? Your employer must furnish you a W-2 by January 31. Because of the late tax legislation, you can’t file a return this year until January 30 anyway. Your refund isn’t coming any sooner than mid-February.
And what if you get another 1099 or other tax statement you weren’t expecting? Then you’ll have to pay to file an amended return.
