Still haven't received your W-2? Here's what to do

Employers have until January 31, 2011 to deliver your 2010 Form W-2. If you haven't received it, take these steps

1. Contact your employer. Inquire if the W-2 has been mailed and confirm the address it was mailed to. Allow a reasonable amount of time to re-issue or re-send.
2. Contact the IRS. Contact the IRS for assistance at 800-829-1040. Provide your name, address, city and state, including zip code, Social Security number, phone number and have the following information:
   
   • Employer's name, address, city and state, including zip code and phone number
   • Dates of employment
   • An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2010. The estimate should be based on year-to-date information from your final pay stub.
3. File your return You still must file your tax return or request an extension to file by April 18, even if you do not receive your Form W-2. If you have not received your Form W-2 by April 18th, and have completed steps 1 and 2, you may attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. You may be unable to e-file the tax return so be prepared to file your taxes using the old fashioned paper method. There may be a delay in any refund due while the information is verified.

Why e-file?

In 2010, 99 million taxpayers e-filed their return last year. That's an increase of 10% from a year ago and represents 70% of all individual taxpayers. Here's why people e-file:

• Faster Refunds – with direct deposit, you can receive your refund in as little as 8 days.
• Greater Accuracy – error rate for paper returns is 20%; 1% for e-filed returns.
• Secure and confidential submission – there has never been an IRS e-file security breach
• File now, pay later – e-file does not mean you have to pay a balance due. You can postpone that until April 15
• Quick confirmation – receipt of your e-filed tax return is within 24 hours
• Convenience - accessible 24 hours a day, 7 days a week
• Most importantly, no paper return to mail

Starting January 1, 2011 most tax return preparers must be authorized IRS e-file providers so they can transmit tax returns electronically.

For more information, refer to the IRS e-file resource.

Taxpayers have to wait to receive their income tax refund

Taxpayers who claim certain deductions for will have to wait until middle to late February to file their 2010 returns. The Internal Revenue Service will need extra time to put processing systems in place as a result of the changes in the tax law from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 which was made official on December 17, 2010.

The biggest on the list is the Schedule A which is used for taxpayers who wish to itemize their deductions which covers an estimated one-third of all filers. Typically, these taxpayers do not file their returns early in the season.

Taxpayers who wish use the following tax benefits are affected:

• home-mortgage interest, property taxes, excess medical expenses, gifts to charity and including state and local taxes – Schedule A
• college tuition and fees – Form 8917
• Educator Expense Deduction claimed on Form 1040, Line 23, and Form 1040A, Line 16

In addition to the above deductions, the tax bill also extended into 2010 an Alternative minimum tax (AMT) patch and the IRA direct charitable donation rollover (extended through December 31, 2011).

The delay will affect both paper filers and electronic filers so the IRS urges taxpayers to use e-file to minimize confusion over the recent tax changes and ensure accurate tax returns. All tax returns claiming these credits or deductions should not be filed until the IRS is ready to start processing these returns in mid - to late February.