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Forgot to file a W-2 form? Relax, and don’t stress; nothing is going to happen. This is for those people who do a second job for them. Filing a tax return is a must. They also need to file a W-2 form for each of their careers. If you forgot to file a W-2 form, you must remember to make modifications.
The IRS will know that the form is missing, and modifications can save you from an audit. Let’s dive into this blog, where you will understand what will happen if you forget to file a W-2 form!
What is a W-2 form?
A W-2 form is a tax document that is completed by an employer and contains information that you will be required to include in your tax return. It showcases the sum of your total wages for the particular year and the sum of the amount of state, federal, and other taxes withheld from your paycheck stubs.
A W-2 form contains the following information:
- Tips are included
- Contribution towards 401(k)
- Contribution towards a health savings account
- The premium that your employer pays towards health coverage insurance
- Several other numbers
Which of the Following are not Deducted on a Typical Paystub?
Why is a W-2 form important?
A W-2 form is essential because it contains all the details of an employee’s salary information. It is also a record holder of who has paid additional taxes or received a tax refund. Generally, a W-2 form shows an employee’s total earnings throughout the previous year.
The employer then pays the federal government that sum of money. The rest of the amount is used to file the tax returns. If the employer has withheld a large amount of tax, the IRS issues a tax refund, but if they haven’t, the employee pays the difference amount.
A W-2 form is significant for you as it gives you a window of opportunity to cross-check errors in your reported salary slip. Once a copy of the W-2 form is in your hands, please go through it to check that all the information mentioned is correct.
How Does a W-2 Form Work?
At the start of every year, you will receive a W-2 form from your employer. It is the responsibility of the employer to submit this form to the IRS and the state government. You do not have any role in filling out the information on the W-2 form.
The W-2 form will arrive with all the information filled out already; you just have to make sure that you attach it to your tax return.
How does a W-2 form work if you are working a second job?
If you are having a second job, you need to be ready with all of your W-2 forms in order to file a tax return. Not only will you need to collect and attach all of the W-2 forms from each employer, but you will also need to procure proper information from them in order to file your tax form completely.
The wages column is where you state your gross employment income. You must blend all of the incomes stated in Box 1 of your W-2 form, and on that particular line, you must state how much income you earned for the previous tax year in order to complete an accurate report.
What will happen if you forget to file a W-2 form for your second job?
For every W-2 form that is being sent to you, the IRS also receives one from the employers. This means that the IRS will know that you haven’t reported the income when they start to match the W-2 on file with your tax return.
If you forgot to attach a W-2 form but have already reported the income, then there is no penalty. One of two things can happen, whether the IRS owes you the money or not:
- If the IRS owes you money: If the original return reveals that the IRS owes you money, they might give you that refund amount without any modification. The IRS will not send you any letter stating if they’re hiding any of your refund amounts until you file a transformed return. You will have a maximum of three years to file the amendment; any longer than that, and you will forfeit the refund.
- If you owe money to the IRS: You will have to pay the penalty if you are going to owe money to the IRS. You might also have to pay interest on the amount of tax. The penalty is 0.5% per month on the amount that you owe. The maximum penalty is 25%. The IRS can also impose an additional 20% if it finds that the W-2 form that you have submitted is fraudulent. Your time frame will be three years to file an amended return. Without an amendment return, the IRS can hold any refunds that you might receive in the coming years.
Conclusion
A W-2 form is a crucial piece of information that is sent with your tax return. This showcases how much earnings you made, how much you paid in taxes, and whether you’re owed a refund. The IRS needs a W-2 form for every job that an employee holds. If you forgot to file a W-2 form for your second job, you may have to face penalties and pay interest charges.
FAQ's
What are the consequences of forgetting to file a W-2 form?
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If you fail to file a W-2 form, you may incur IRS penalties and interest on the taxes owed.
Can I still file a W-2 form after the deadline has passed?
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Yes, you can still file a W-2 form after the deadline, but you may face increased penalties for late filing.
How do I correct a forgotten W-2 form from a previous tax year?
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To correct a missed W-2 form from a prior year, file an amended tax return (Form 1040X) with the correct information.
Will the IRS notify me if I forget to include a W-2 form?
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The IRS may send a notice informing you of any discrepancies in your tax return, prompting you to correct the omission.
