2025 Federal Form 1040

did the withholding change?  I dont think IRS will care if you report more income than they can see, it would just be any additional withholding that may delay any refunds.

Once you have the corrected W-2, I would just file the return.  I wouldn’t worry about waiting to make sure the W-2C is processed.

Isn’t there a checkbox in the tax software to indicate that the W-2 is corrected?  That should give the IRS a clue that you’re not using the original numbers.

I’m not sure I follow the employment relationship here but it’s the employer who files the W-2c with social security, not the taxpayer/employee.

Tax client owns an which provided the 2025 W-2 Post April 15th the LLC owner has determined hat the W-2 salary is incorrect 

I’m sorry to go off on a tangent if this doesn’t apply, but …

Are you saying your client is the LLC owner and gave himself an incorrect W-2?

If so, you kept saying “LLC”, rather than C-corporation or S-corporation (or LLC taxed as a C-corporation or S-corporation).  Does the LLC have a valid election to be taxed as either a C-corporation or an S-corporation?  I’m asking because it if doesn’t have the election, there shouldn’t be a W-2 at all (unless I’m misunderstanding something that you are saying).

Again, I apologize if I’m going off on a tangent or misunderstanding something, but that way you phrased things threw up ‘red flags’ in my mind, so I am trying to help make sure that you and the client are doing it correctly.

A payroll change affects the business entity, so is there a 1065, 1120S, 1120?

Since when are extensions “approved”?  More importantly, will the return show a refund or balance due?  I don’t think you answered the question about whether there is an increase in withholding, but it’s more likely that there is tax owed with that much more income, and there’s no reason for the client to be paying IRS interest.  What is your source for IRS document matching in real time?  The reason the CP2000 notices are sent a year later, is that IRS has little or no idea on April 15 (or the extended due date) of whether the W-2 data on the return matches what was filed with Social Security. (They claim to have a pilot program for EIC and CTC returns, but there is no evidence it is operational. Also, it only applies to refund returns, which is why it helps to know if there is a balance due.)

“This request was approved by the taxing authority. “  To Bob’s point, I think you mean it was accepted in the efile system. The extension is automatic. No approval.