Corrected W2 - 2012

[Dan32]

Today I received a corrected W2 from Megacorp for 2012. I haven't plugged the corrected numbers into my tax program yet (which is on an old computer I no longer use), but I think I might be entitled to ~$50 to $100. I think this because they reduced my taxable earnings by ~$200.

In 2012 I retired from megacorp and went to work for another company. This raises several questions in my mind:

- Why so long to send the correction?
- What other mistakes did they make?
- What happens if I don't do anything (especially if I determine I owe the IRS)?
- Is this a common problem?

An apology or explanation along with the corrected W2 would have been nice, since this will cost me time and money vs if they had done it correctly the first time.

Has anyone else had this happen to them?

 

[Alan]

It happened to my daughter a few years ago. The former company explained it was their fault and would pay any fees to file an amended return. (They had failed to report the "free" life insurance on the W2 which should be reported as a taxable perk).

DD had since divorced and her ex used to do the taxes. When I investigated it for her (she had a copy of the return for the year in question) I reckoned she owed ~$25 in extra tax, and found an article on the web that said that if one has filed in good faith and the return was accurate with all available documentation then the filer did not have a legal responsibility to file an amended return.

She and her ex decided to do nothing and have heard nothing. I think even if they were owed $25 then they would also have decided to do nothing.

 

[gauss]

Today I received a corrected W2 from Megacorp for 2012. I haven't plugged the corrected numbers into my tax program yet (which is on an old computer I no longer use), but I think I might be entitled to ~$50 to $100. I think this because they reduced my taxable earnings by ~$200.

In 2012 I retired from megacorp and went to work for another company. This raises several questions in my mind:

- Why so long to send the correction?
- What other mistakes did they make?
- What happens if I don't do anything (especially if I determine I owe the IRS)?
- Is this a common problem?

An apology or explanation along with the corrected W2 would have been nice, since this will cost me time and money vs if they had done it correctly the first time.

Has anyone else had this happen to them?

Would you even be able to get the refund if you filed an amended return? I think the 3 year statute of limitations may be about to run out on you.

If you owe additional amounts then a couple of things could happen:
- IRS notices, within the statute of limitations, and send you a letter to pay up.
- IRS does not notice and thus no consequences.

Since the interest/penalties would likely be small, both on a % basis as well as an absolute $ amount basis, you may wish to play audit roulette on this and wait for them to notice.

You may also wish to investigate how this would effect your state income tax return (if you have one). My state has very punitive penalties, much more than IRS, so I always try to make sure that my state receives it's share first.

-gauss