Have you received a form W2 that shows incorrect figures for your wage? If this happens with you just a few days before the tax-filing deadline, then you might get in trouble with the IRS given the type of discrepancy. Even though the majority of form W-2 slip-ups are not that consequential and usually arise because of the minor difference on the pay stub your employer has filed with the IRS.
Nonetheless, people need to be extra diligent all the time with their taxes to avoid any penalties. This is the reason why one needs to work with expert bookkeeping professionals even if it’s about individual tax filing.
Let’s look at the course of action that you should take if you have encountered your form W2 with some serious mistakes.
Form W2 – Get Your Employer in the Loop
When you find a discrepancy in your form W-2, the first thing you need to do is to get your employer on the loop. As per experts from reputable tax preparation firms, there are two major reasons to contact your employer organization regarding incorrect details on form W2.
They will fix the problem considering it is actually arising from the mistake of the accounting or HR personnel of the company.
You can get them on their mischievous plan of declaring incorrect wages on form W2 to evade their own taxes.
Form W2 – What If Your Employer’s Organization No Longer Exists?
You have to deal with your form W-2 after a whole year. If in that period, your employer goes bankrupt, then how you should approach the issue of incorrect form W-2?
As per bookkeeping and tax preparation expert, you should go to the bankruptcy court to correct your form W2 details. The courts facilitate the employees of bankrupted entities with their outstanding tax issues. They might issue you a corrected form W-2.
Errors With Other Information
W-2 errors aren’t confined to income. The spelling of your name, a name change due to marriage or due to divorce, your Social Security number might be wrong or your address, but this is usually a much simpler fix.
It should be a simple matter to ask your manager to correct your name or your Social Security number, although you’ll perhaps have to provide proof of your number.
IRS-The Last Resort
When bankruptcy is not the problem and there is a significant discrepancy in your form W2, then it is better to directly approach the IRS. The tax regulatory body takes care of incorrect form W-2 through another form called 4852.
In order to fill out that form, you will need information from your pay stub that you can easily take from your employer.
If you don’t want to deal with and tax form discrepancies on your own, then avail the services of MyCount Solutions. It is an online bookkeeping and tax preparation firm that renders its experts services in a really reasonable amount.