IRS Matching Program

The Combined Annual Wage Reporting is a document matching program that compares the Federal Income Tax withheld, advance Earned Income Credit, Medicare wages, Social Security wages, and Social Security Tips reported to the IRS on Form 941, 943, and 940 and Schedule H against the amounts reported to Social Security Administration (SSA) via Forms W-3 and the processed totals of the Forms W-2. When the Social Security and/or Medicare Wages reported to SSA on Forms W-2 are lower than the Social Security and/or Medicare Wages reported to IRS on aforementioned forms, the Social Security Administration will contact you with a questionnaire. Guidance on responding to the questionnaires is available at IRS.gov.