Income tax question?

Question

I have two questions I was hoping someone could/would help with?

1. After having filed my 2006 taxes (I've received and spent my refund), I just realized that I didn't file one of my W2s. Last year was really hectic for me, and I worked a number of jobs. Somehow or the other, I missed out on one. What do I do now..? Does anyone know? Do I 're-file'? Doesn't/wouldn't/shouldn't that affect the refund collected?

2. Also, as I didn't file my taxes at all in 2005 (this one wasn't negligence. I was out of the country), I requested a copy of my W2s from that year, and will be filing it tomorrow... Does anyone know how (or if) Question 1 affects this?

I hope I haven't been too confusing. If anyone can help, please do... I'm going insane with thoughts of being audited by the IRS.

Answer 1

Get the 2005 return in the mail

Then file an amended return to correct the 2006
If you discover an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return!

However, do file an amended return if any of the following were reported incorrectly:

your filing status
your total income
your deductions or credits

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF). If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). To avoid penalty and interest, if you owe additional tax for a current year amended return, file Form 1040X and pay the tax by April 15 of the current year.

http://www.irs.gov/pub/irs-pdf/f1040x.pdf
http://www.irs.gov/instructions/i1040x/index.html

Answer 2

Quit worrying about being audited. You're probably going to owe some money, but this type of issue doesn't trigger audits.

For the W2 that you missed, you're going to have to file an amended return on a form 1040X showing your TOTAL income (what you already filed, plus this additional amount). Unless enough was withheld from the W2 you didn't file to cover the additional taxes, you'll owe some money. File it by 4/17 to avoid penalties. If you can't pay it all at once, the IRS will set up a payment plan.

Your 2005 taxes are separate from the 2006 ones, so not filing for 2005 doesn't affect your 2006 return. If you have a refund coming for 2005, you'll still get it and won't owe any penalties for filing late. If you owe, then there will also be penalties and interest.

Answer 3

You would file a Form 1040X (which is an amending form) for 2006. Depending on how much tax was withheld on the W-2 you missed, you may owe some taxes or you may be getting even more back. The 2nd page of the 1040X requires that you give a reason for amendment, so the IRS will know exactly what is going on. You will not be able to file this form electronically, so you will have to attach a copy of the W-2 you missed.

When you file your 2005 return you will report that year's tax due or refund claimed separately from the amended return you will be filing for 2006. Only if you wanted to apply any overpayment for your 2005 return would it have any impact on 2006.

I would get both your 2005 return and 2006 amended return filed relatively quickly to avoid getting notices from the IRS. Neither situation you are in would necessarily put you in a risk category for an audit.