Will the IRS Catch a Missing W2? What You Need To Know

Tax seasons can be a lot of stress. It becomes even worse when you file your taxes and realize you forgot to file a W2. Many taxpayers ask questions like, “Will the IRS catch a missing W2?” or “What happens if I don't file a W2?”

The IRS will likely notice a missing W-2. However, don't panic. The IRS provides ways to fix any W-2 omission. And if you don't have your W-2 to file your taxes, a W-2 maker can generate accurate W-2 forms for you.

This guide will walk you through what happens if you forget to file a W-2. You will also learn what to do if you forgot to file a W2.

What Is a Form W-2?

Form W-2 is an employee’s wage and tax statement. It is an official IRS tax form that summarizes an employee's total income for the year. It also shows the amount of taxes withheld from a paycheck.

Companies must issue a W-2 to employees who earn $600 or more. A W-2 form is also issued if any tax was withheld, even if the employee's pay was below $600. 

Businesses must send your wage and income information to the SSA and the IRS to process your tax return. They must also send a copy B of the W-2 form to their employees. The form must be sent to you before January 31. 

However, if January 31 falls on a holiday or weekend, the deadline is shifted to the next working day. Employers can easily create a W-2 form to avoid missing the deadline. 

Why Is It Important When You File Your Tax Return?

Below is why your W-2 is important when you file taxes:

• It verifies your income: The Form W-2 provides your actual income or pay. This includes taxable cash wages that your company reported to the IRS. When you report your income, it must include the correct amount you earned for the year.

• It is used to calculate your tax liability: The information on your W-2 determines how much tax you owe.

• To confirm how much tax was withheld: Your Form W-2 shows how much tax your employer already withheld and sent to the IRS website on your behalf. This amount is subtracted from your total tax bill to determine whether or not you get a refund.

Will the IRS Catch a Missing W2? What Happens if You Don’t File a W2

If you filed your taxes and forgot to file a W2, the IRS is likely to notice it is missing. Your employer is required to send a copy of your W-2 to the Social Security Administration (SSA). The SSA, in turn, sends your W-2 to the Internal Revenue Service(IRS). The IRS uses an automated system to compare the income you reported with the W-2 form your employer submitted.

The IRS expects you to report all income shown on every W-2 form issued to you. If the forms don’t match, your tax return will be flagged by the IRS automated system. The IRS Automated Underreporter is a computerized system that compares the form you reported with the one your employer submitted. 

The IRS may send you a notice (CP2000) if it sees that your return doesn't correlate with the one your employer submitted. This notice may arrive as a letter explaining what information is missing.

If the IRS adjusts your return because of missing income, you may owe money, interest, and possibly penalties. Also, filing your tax return with a fake W-2 form can lead to IRS penalties. In serious cases, criminal charges for tax fraud may apply. 

Do You Have To File All W2s if You Have Multiple W2s?

If you work more than one job or switch employers during the year, you may have multiple W-2 forms. Employees who received multiple W-2s in the year often ask, “Do you have to file all W2s?”

The answer is yes, you must file every W-2 you received during the tax year when filing your tax return. 

Each company you worked for during the year is required to send you a Form W-2 and send the form to the SSA as well. Failing to file even one of your W-2s may cause trouble, since the IRS already has the records from your employer.

Leaving out a W-2 may also be considered an error. It causes the income and withholding on your tax return not to match what the IRS has on file. It can also trigger an IRS notice and delay your tax refund. If you discover later that you forgot to file a W2, you should correct it as soon as possible.

Will I Still Get My Tax Refund if I Forgot a W2?

Filing a W-2 along with your taxes does not guarantee that you will get a tax refund. However, if the taxes withheld exceed your actual tax liability, it means you have an overpayment and are entitled to a refund. Your refund can be deposited into your bank account. 

Many employees panic when they forget to send their W-2 forms when filing taxes. They often ask, "What happens if I forgot to file a W-2? Do I still get my tax refund?" 

The answer is, yes, you may get a refund, but it may be delayed or adjusted by the IRS. You can also estimate a tax refund with paystub to have an idea of how much money you may receive as refund. 

If the IRS flags your tax return after noticing your W-2 doesn't match your employer, your refund may be delayed. You might receive a larger additional refund only if the missing W-2 had extra withholding. However, in most cases, a missing W-2 leads to owing more tax, not a bigger refund.

If you reported the income from the W-2 on your return but simply didn’t attach the physical form (usually for paper filings), you will not face penalties. In this case, the IRS can still process your return using your income report. 

However, to claim a refund on your taxes, you must:

• File Form 1040-X within 3 years after the date you filed your original return. 

• File the form within 2 years after the date you paid your tax.

What You Should Do if You Notice You Forgot To File a W2

If you've already filed your tax return and notice you forgot to file a W-2, don't panic; this is a common mistake. The good thing is that the IRS lets you fix it. All you need to do is take action as soon as possible. If you're asking, "What if I forgot to file a W2?” here's a guide on what to do:

• Wait for your original return to be fully processed: Usually, you have to wait for the IRS to process your original return. If the IRS rejects your tax return, request an amendment, add your W-2, and resubmit it. However, if it is accepted, you will need to amend your return to include the missing W-2. You should not file an amended tax return until your original tax return has been processed.

• File an amended return: To file an amended tax return, you will need a Form 1040-X. This is an Amended U.S. Individual Income Tax Return used to report corrected total income adjustments. If you originally filed electronically, you can submit your amended return online as well. If you paper filed, mail the form to the correct IRS address.

• Attach a copy of your W-2: When filing Form 1040-X, you must attach a copy of the W-2 you forgot. However, do this only if it shows income or withholding that was not previously reported. Always remember that adding a missing W-2 may increase your taxable income or affect your refund amount, depending on withholding.

Need a fast and reliable way to organize your income records? You can create accurate pay stubs in minutes with our 123 Paystub process. It is easy, fast and makes your income record available for tax filing. 

What To Do if You Receive a Corrected W-2 After Filing the Original Tax Return

Your employer may send you a corrected W-2 (W-2c) after you have already filed your tax return. In cases like this, you must file an amendment if the corrected form changes your income or withheld tax amount.

Check the W-2c against what you reported on your original return: If there is a difference, file an amended return using Form 1040‑X. Report the corrected income, withholding, or any other changed item. Also, submit the corrected W-2.

Filing an amendment ensures that your tax records are accurate. It also helps you avoid future problems with the IRS. Also, it ensures that your withheld tax is credited correctly and reduces the risk of owing additional tax, penalty or interest later.

However, you might have filed your tax return using an estimated wage report on Form 4852 because your W-2 was missing or incorrect. If you later receive the actual W-2 or a W-2c, in this case, you will need to amend your return. Attach the corrected form to your 1040-X and update your income and withholding based on the employer’s final numbers.

Final Thoughts 

If you forgot to file a W2 and are asking, “Will the IRS catch a missing W2?” The answer is yes, the IRS is likely to spot a missing W-2 since your employer reports it too. Always include all your W-2s when you file a tax return. If the IRS rejects your tax return because you forgot to file a W2, file an amendment. This can help you prevent troubles in the long run. 

Don't risk errors when filing your taxes. Use our paystub generator to create professional, accurate pay stubs. Keep your income records organized and avoid missing a W-2 when filing taxes.