An incorrect W2 can create serious problems for you. You may think that it is your employer’s problem but think again. If you have received an incorrect W2, there are actions that you must take to resolve the situation.
What Is a W2?
Any employer that pays an employee more than $600 must provide a W2 for each employee. A W2 includes the following information.
- Income – including wages, bonuses, and noncash payments
- Taxes – including social security, Medicare, and income tax
The amount of each of tax withheld from your check will depend on how much money you make and your designated withholdings.
What to Do If you Receive an Incorrect W2
The first thing to do is take action. Even if you think the error is small. Errors can lead to an IRS audit, penalties and fines, and even jail time. If you have verified that your records and your employer’s are different, the first step is to contact your employer and request a new W2.
When contacting your employer, it is best to start with the human resources department to address this issue. A small difference may be due to a simple end of year tax adjustment. In this case, you do not need to worry about it. However, if there is a big difference your employer can quickly issue a new W2. This form will be labeled as a W-2c to indicate that it is a corrected form. If you get a W-2C, make sure you double-check that information as well.
What If Your Employer Won’t Respond
If you run into the case where an employer refuses to answer your questions, continuously issues the wrong W2, of straight refuses to issue a new W2, you need to contact the IRS. Contacting the IRS will generate a claim and protect you from prosecution, holding the employer responsible. When contacting the IRS, you will need the following information:
- Name
- Social Security number
- Income that you believe to be correct
- Contact information of your employer
Once they receive this information, they will contact your employer directly and request a W-2c.
Form 4852
IRS Form 4852 serves as a replacement W2 that allows you to file your taxes. Once you file a claim, the IRS will send you this form with instructions. All you have to do is fill it out along with your tax return.
Most W2 mistakes are not intentional, mistakes do happen. Sometimes it is simply due to small businesses not having the resources or knowledge to correctly withhold taxes. Make your life easier and use our W2 form generator to avoid inaccurate information and problems down the road.
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