Mistakes happen and, yes, at times, we even forget important items on our yearly checklists, such as filing a W2. Jokes aside, if you forgot to file a W2, expect delayed tax returns and more. So, yes. Not simply a paperwork hiccup.

Let this guide highlight for you what happens if you indeed forget to file a W2 and how best to remedy the situation. 

What if I Accidentally Forgot a W2 on my Taxes?

Forgetting to file a W2, be it accidental or not, will trigger a series of not-so-nice events, including delayed tax refunds and very unpleasant IRS notices. That’s not all! You may even have to pay interest on unpaid or underpaid tax payments or invite an audit by the IRS upon yourself.

Let’s discuss what forgetting to file a W2 means for employees and employers in detail.

For Employees

1. Tax Refund Delays

Your tax returns solely depend on W2 form. Hence, failure to file for taxes using W2 on time will ultimately delay your tax refunds. 

1. Form 4842

Immediately contact the IRS in case you haven’t received your W2 form by mid-February or you’ve forgotten about it. The IRS will then contact your employer regarding it. 

We’d suggest filing your tax returns using Form 4832, a substitute for W2. You’ll need to guesstimate your annual wages and taxes withheld, which can be challenging without correct numbers.

1. Form 1040-X

If you’ve filed for taxes under Form 4832, use Form 1040-X to file for amended returns as soon as you receive W2 from your employee. It’ll help you correct any errors you made while guesstimating your annual wages and taxes withheld in Form 4832. 

For Employers

1. Penalty for Failing to File W2

The IRS will most likely impose penalties if the employer forgets, fails to file W2 on time, and defaults on their employer responsibilities. Depending on how late your employer files W2, it can be anywhere between $60-$630 per form. 

Large businesses (with over $5 million in Gross Receipts) may be penalized as much as $3,783,000 annually for failing to file a correct and timely W2. Also, there’s no cap on maximum penalty if they intentionally ‘forget.’

1. Furnishing W2 to Employees

The IRS also mandates your employers to provide you with a copy of their own W2 by 31st January. As you may have guessed, the IRS will impose additional penalties on them if they fail to do so. And the amount is similar to the ones mentioned above.

1. Interest Payments on Unpaid Taxes

Your employers are liable if any delay in filing W2 leads to tax underpayments. The IRS will charge them interest on those unpaid taxes for the time period between the due date and date of payment.

What to do if You forget to File a W2?

The following steps apply to both employees and their employers. 

1. File your W2 ASAP and submit the form to the Social Security Administration at the earliest.
2. Furnish your W2 form (or multiple W2 forms in case you’re working for multiple agencies) to your employer or employees, as the case may be.
3. Make sure you submit only an accurate W-2 form. But if you end up submitting an incorrect W2, amend them and resubmit using the W-2c form.
4. The IRS allows exceptions in delays in certain situations, such as serious illness or natural disasters. So, you can seek relief from penalties if you fall under any of these categories.

Conclusion

Starting your year with multiple IRS notices and audits isn’t exactly pleasant. It’s vital you to stay informed, educated, file an accurate W2 form, and most importantly, ON TIME. Forgetting to file your W2 will incur tax processing delays, interest on unpaid and underpaid taxes, and penalties. Use our W-2 form generator, generate your W-2 accurately and quickly, and avoid penalties today.  

FAQs

1. What happens if you forget to file a W-2 on your taxes?

The IRS will send you correction notices, delay your refund, or even charge extra fees in case of underpayment. Not only that, you will need to use Form 1040-X to file for returns after amending it. 

1. Can I skip a W-2 and file it next year?

No, you cannot. The IRS mandates all taxpayers to file for taxes on all income earned every year. The IRS may impose interests, penalties, or, in the worst-case scenario, a full-fledged audit. 

1. Will the IRS reject my return if I forgot a W-2?

The IRS might not reject your return if the W-2 in question doesn’t reflect the taxes you owe. But, it will flag it as a discrepancy in the case of underpaid taxes. 

1. Will I get in trouble if I don’t file a W-2?

Yes, you’ll most likely attract trouble in the form of interest on underpaid taxes, IRS notices, and other penalties. Make sure you file an accurate W-2 and on time.

1. Will the IRS catch a missing W-2?

Yes, the IRS will most likely notice your missing W-2. The IRS mandates you to send accurate W-2 not just to your employers, but also to the IRS directly. So, any discrepancy will trigger an IRS notice at the least. 

References:

1. https://www.irs.gov/forms-pubs/about-form-w-2 
2. https://www.irs.gov/payments/information-return-penalties 
3. https://www.irs.gov/forms-pubs/about-form-4852 
4. https://www.irs.gov/forms-pubs/about-form-1040x 
5. https://www.irs.gov/taxtopics/tc752
6. https://www.ssa.gov/employer/ 
7. https://www.irs.gov/pub/irs-pdf/fw2c.pdf 
8. https://www.irs.gov/payments/failure-to-file-penalty