My employer overstated my income by $5000 by counting my bonus twice. I had to file my taxes with the incorrect w2 and just received the correct w2 on 4/20. I'm working on the 1040X form, but I had a refund of X amount on my original form. Now with the amended form I have x - 300 as my refund. Do I need to send in a check or what do I need to do to avoid penalities? Any advice be greatly appreciated. Couldn't find the answer on IRS website after 45 minutes of searching.
2007-04-21 04:49:50 · 6 answers · asked by Danny 1 in Business & Finance ➔ Taxes ➔ United States
You need to send in a check for the amount owed ($300) The IRS will asses penalties and interest.
It is possible to have penalty abated. Contact IRS.
Wait until after they send a bill for any penalty and interest.
2007-04-21 05:36:36 · answer #1 · answered by Mark S 5 · 0⤊ 0⤋
I totally agree with Judy. You should not be getting less money and owe even more, if your income is actually less than what you filed the first time. I had to do an amended form as well and it can get pretty confusing with the 3 columns and knowing what to put in each. I actually had to redo mine 3 times because of putting the wrong info on column C and it resulted in me owing more tax. I knew that couldn't be right and went back over it and finally figured out what I did wrong!
So try it again and see. By the way, even if you did not file an amended return, the IRS would get the corrected W2 from your employer and within a few months you would get a notice from them stating that your return was incorrect, and they will have it all figured out accurately and if you owe more at that time, you can just pay then (true-there may be some interest and penalties but on that amount it won't be much), but more than likely the error will be in your favor since you said they deducted your $5000 bonus twice. If that was the case they would send you a refund for the corrected amount.
Hope everything works out for you! :)
2007-04-21 13:10:25 · answer #2 · answered by MarineMom 6 · 1⤊ 0⤋
Send the payment owed with the 1040X, do not wait for a bill, the longer it takes for you to pay what you owe the more penalties and interest add up. Once you get the bill for the penalties and interest, then you can ask for an abatement of the penalties, the IRS can not abate the interest charged.
You can ask for the abatement over the phone by calling 1-800-829-0922 after you have filed the 1040x and sent the payment in and gotten the bill for the P&I.
2007-04-21 08:27:52 · answer #3 · answered by Rob 7 · 1⤊ 0⤋
My daughter is an accountant. Unfortunately she is out of town for the weekend but I will see her Sunday night. I will ask her about this and get back to you. I know you would have to do an amendment on the taxes, but you may have to wait until the refund comes back then send in payment on the amount you owe. Also, the IRS may catch this as they are doing your claim as your employer would have had to re-submit the new W-2 form. If they do they may send you a letter showing the difference.
2007-04-21 05:02:59 · answer #4 · answered by Cathy S 3 · 0⤊ 1⤋
If reporting LESS income on your amended return than on the original is resulting in owing MORE tax, you're doing something wrong. Check it over until you figure out what.
2007-04-21 12:35:17 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
There is no law on paing taxes
if u find it show me ASAP
2007-04-21 08:52:14 · answer #6 · answered by Anonymous · 0⤊ 2⤋