When you receive an informational tax form with errors, you should attempt to contact the issuer and get a corrected form. If you are unable to get a corrected W-2 or 1099, you should report the correct information on your tax return.
Incorrect W-2 Forms
Employers sometimes send out W-2 forms with incorrect information. For example, the W-2 form may overstate your wages, which could cause you to owe more in taxes than you should.
If you just input the correct number into your tax return without doing anything else, the IRS may flag your return. That’s because the IRS also received a copy of the W-2 and the numbers won’t match what you reported on your taxes. This could lead to an IRS audit.
Instead, you should contact your employer and ask them to issue you a corrected W-2. There is a box on the form to check when it is a “corrected” form. 1099 forms also have this box, and you should make sure you note that it is a corrected form when you prepare your taxes.
You can then input the corrected information on your tax return, and the IRS should information that matches what’s on your return.
Substitute for W-2
If your employer won’t respond or issue you a corrected W-2, you can use Form 4852, Substitute for Form W-2 to add the correct information to your tax return. You can also use this form if you never receive a W-2.
You may need to use pay stubs or other records to estimate your wages. Follow the instructions to make sure you fill out this form correctly.
If you don’t receive other informational forms, such as 1099s, you can just report the income using your pay records. Some businesses that use independent contractors are not required to issue 1099 forms, depending on the amount of wages you earned from that business during the tax year.
It may take some time to get your tax forms corrected and then complete your tax return. Review your tax forms as soon as you receive them so you’ll have enough time to deal with any problems and still finish your taxes on time.
The Gartzman Law Firm offers tax return preparation and tax settlement help. Use our contact form to request a consultation with an Atlanta tax resolution attorney.