2021 Taxes in 2023

[AugieTN]

My wife just got a letter from a major retailer she was working for in 2021. They sent her revised 2021 W2 Tax forms, noted they made a mistake and told her to take this to a Tax consultant?

Oh really? Who pays for this?

Wife has a 2pm appointment with H&R Block where we normally get our taxes done.

 

[Unforgiven]

Ugh, that hurts. Plus, H&R Block is going to charge to revise the filing I'm sure.

 

[Dannydet]

According to IRS.gov your employer has 3 years to issue a corrected W2...

 

[mikedt]

I can't really comment.
But as I'm living overseas the HM Revenue & Customs never bothers me for taxes, i.e. I'm a tax exile.

 

[mikedt]

Ugh, that hurts. Plus, H&R Block is going to charge to revise the filing I'm sure.

"H&R Block" I recognise that name from when I used Compuserve in the 1990s.

 

[rootabaga]

First rule: you are always liable to pay the tax owed, plus interest (and potentially penalties) if there is a delay in timely payment. (That rule applies even if you never file a return!) It doesn’t matter whether you are innocent in filing the incorrect return: you always owe the tax.

Should you receive revised income information (whether from an employer, brokerage, bank, etc.) that increases your tax liability you are obliged to timely file a 1040x (amended return) for the affected tax year. (Untimely delay in filing the amended return can result in penalties.)

Any additional amount due from should be submitted with the amended return. Your tax professional can (and should) calculate the interest that is due on the additional amount and that should also be submitted with the amended return.

Under these circumstances the IRS typically does not seek penalties unless you unreasonably delay filing the 1040x and paying the additional tax and interest due.

H&R Block is fully capable of helping you to resolve this. I hope the bite is not too significant. Since the error is not their fault, they probably will charge you more money. (That charge may be deductible on next year’s return.)

Also: if you live in a place with a state income tax, then you will likely have to also file an amended state return and pay the additional tax and interest, so don’t forget to look into that.

You can always ask the major retailer to pay the interest and additional fee from H&R Block associated with the new tax liability. (Again, you are responsible for paying the tax and interest.) Odds are they will ignore the request, so don’t get your hopes up too high.

I wish you the best of luck.

 

[Dannydet]

A few years ago the actual IRS called me and said my gross income salary did not match what they were reported from my previous employer, by an increase of 63,000 dollars!!!!
I told them hey, I have every pay stub for that year and you can contact my previous employer.
They did. My employer was at fault.
But jeez, the IRS treated me like I was the criminal.

 

[olbriar]

My wife just got a letter from a major retailer she was working for in 2021. They sent her revised 2021 W2 Tax forms, noted they made a mistake and told her to take this to a Tax consultant?

Oh really? Who pays for this?

Wife has a 2pm appointment with H&R Block where we normally get our taxes done.

That's pretty much a blow below the belt! I'm sorry. Being self employed all of my life it was always a major financial burden to keep current with the IRS. There were even a couple of years that I so grossly under estimated my income that I owed more than I could pay. I found the IRS easy to work with. All they want is all of your money. I paid penalty and interest one year until I was even steven with them. They don't care... as long as they can gouge you until you bleed. An incorrect W2 from an employer seems a crime. Unless it is glaringly wrong when you receive it, why would you question its validity? By no fault of your own, you now have a tax obligation that is two years in your past. That is BS! I guess there is always a chance they owe you vs you owing them.... FAT CHANCE! Sorry... truly sorry.