Forgot to file a W-2 form? Relax, don’t stress nothing is going to happen. This is for those people who does 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 job. If you forgot to file a W-2 form, you must remember to make modifications.
IRS will know that the form is missing, and making the modification 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 finished by an employer and contains information that you will be required to complete your tax return. It showcases the sum of your total wages for the particular year and the sum of amount of state, federal and the other taxes that are restrained from your paycheck stubs.
A W-2 form contains the following information:
- Tips are included
- Contribution towards 401(k)
- Contribution towards health savings account
- Premium that your employer pay towards health coverage insurance
- Several other numbers
Why is a W-2 Form Important?
A W-2 form is important because it has all the details of an employee’s salary information. A W-2 is 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 earlier year.
The employer then uses that sum of money to pay it to the federal government. The rest of the amount is being used by the employer for filing the tax returns. If the employer has withheld a large amount of tax then the IRS issues a tax refund, but if they didn’t then the employee pays the difference amount.
A W-2 form is very important for you as it gives you a window of opportunity to cross-check errors in your reported salary slip. Once a copy of W-2 form is in your hands, 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 to the state government. You do not have any kind of role in filling the information in the W-2 form.
The W-2 form will arrive to you with all the information filled already, you just have to make sure that you attach it to your tax return.
How does a W-2 Form Works 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 tax return. Not only you will 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 completely filing your tax form.
The wages column is where you state your gross employment income. You will be needing to blend all of the incomes stated in the Box 1 of your W-2 form and on that particular line you will need to state how much income you have earned for the previous tax year in order to complete an accurate report.
What will happen If you Forgot to File a W-2 Form for your Second Job?
For every W-2 form that is being sent 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 you have already reported the income then there is no penalty. One of the 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 kind of modification. The IRS wil not send you any kind of letter stating if they’re hiding any of your refund amount until you file an transformed return. You will have three years max for filing the amendment, any longer period than that they will forfeit the refund.
- If you owe money to the IRS: You wil 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 they find that the W-2 form which you have submitted is a fraud. Your time frame will be of three years to file an amendment return. Without an amendment return the IRS can hold any refunds that you might receive in the coming years.
A W-2 form is a crucial piece of information which is sent with your tax return. This showcases how much earnings you made, how much you had 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 the interest charges.
What are the consequences of forgetting to file a W-2 form?
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?
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?
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?
The IRS may send a notice informing you of any discrepancies in your tax return, prompting you to correct the omission.