I just filed with Turbotax. I don't have to send in anything. Is there any check that the IRS does of my return to match it against a central database of W2s? I am kind of kicking myself for not underreporting of income/overreporting the amount withheld. Is electronic filing really based on the honor system?
2007-02-03 11:09:26 · 14 answers · asked by Mike K 2 in Business & Finance ➔ Taxes ➔ United States
The initial filing is based on the honor system, but at some point they do a computer match of everything reported to them. Your W-2 info is reported to them by your employer, so if you underreport income or overreport withholding, they'll be sending you a letter demanding payment for the "error", plus interest and possible penalties. This can take a few months, or can take over a year, but they'll find it and contact you. This would definitely be caught.
2007-02-03 11:17:12 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
All returns are compared to information received by business and the easiest way to signal an audit is to file a return that doesn't match forms W-2 or 1099 that were filed. Any amount that you could have gotten away with for over/under reporting wouldn't have netted enough in tax savings. You would have probably been sent a correspondnce (from now up until 3 years from April 15th) asking to substantiate the information when you couldn't you would also have to pay interest.
2007-02-03 11:17:51 · answer #2 · answered by The Answer Man 2 · 0⤊ 1⤋
All returns are in comparison to assistance won by employing employer and the least perplexing thank you to sign an audit is to document a return that doesn't tournament varieties W-2 or 1099 that have been filed. Any volume which you will are transforming into away with for over/under reporting does no longer have netted adequate in tax reductions. you've gotten in all probability been despatched a correspondnce (from now up until eventually 3 years from April fifteenth) asking to verify the assistance once you could desire to no longer you could additionally might desire to pay pastime.
2016-12-17 08:49:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The IRS does review the returns for accuracy. If you underreport your income or over state your withholding, you will be caught and be subject to interest and penalties on any overpayment made to you on the misinformation. In addition this gives cause for them to review and audit your returns in the future. Underreporting can be caused by error,Overstating withholding is fraud
Call the IRS at 1-800-829-1040
2007-02-03 11:17:23 · answer #4 · answered by Anonymous · 1⤊ 0⤋
OMG! I hope you're kidding!
It's a check and balance system. When your employer files their taxes they report exactly how much they paid you and your payments (taxes witheld) go to the IRS. They know how much you paid before you file your taxes... hello, social security number.
The repercussions of lying on your taxes are far worse than losing out on a few bucks. First you have fines, then if you owe them money you have to pay interest on the money you owe on top of the fine.
The IRS is one agency you don't want to screw with!
2007-02-03 11:19:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
BIG MISTAKE MESSING WITH THE IRS. They will send you a letter requesting more information if what you submitted does not match what they have on their database. Sometimes it takes three years for them to catch a mistake.
I would suggest that you submit a 1040X with the right data. This will prevent you from having to pay penalties on top of penalties plus the money that you still owe to the IRS.
2007-02-03 11:36:37 · answer #6 · answered by D S 4 · 0⤊ 1⤋
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2007-02-03 19:56:02 · answer #7 · answered by gautaminside 1 · 0⤊ 0⤋
You may be able to get away with it for awhile but eventually you will get caught and then on top of the quality time in jail you will have interest and penalties to pay. The government always finds a way to get their money.
2007-02-03 12:08:48 · answer #8 · answered by Anonymous · 0⤊ 0⤋
The company that sent you a W-2 also sent a copy to the IRS. Their computer matches that to what you report.
2007-02-03 11:15:46 · answer #9 · answered by STEVEN F 7 · 0⤊ 0⤋
Not worth it.The IRS receives copies of all your documentation from employers,banks,etc. You might slide by - or you might not.
If audited they go back years looking at your turns. The more they find the heavier the fines you receive.
2007-02-03 11:29:30 · answer #10 · answered by Your Teeth or Mine? 5 · 0⤊ 1⤋