Refiling Taxes from 2 years ago. Please help?

Question

Ok. 2 years ago when I filed my taxes I forgot to include a job that I had for the first 3 months of the year. The IRS found the discreption and basically asked for the entire return of $1400 that i got that year back. My question is if I refile for 2005 and include that other job's income, should that "mostly" clear things up? I know there may be some penalties but I would have received a larger return if i had included that other job. Please help!!! Thanks!

Answer 1

It depends what type of notice the IRS sent. Read the notice and determine if you CAN file a 1040X (amended return). The notice you probably received allows you to agree/disagree and state why but not file an amended return. If that's the case, prepare a 1040 that would've included the extra W-2, calculate what you should've owed. Follow the instructions on the notice.

If you decide to call, the best times are 8am or 1 pm.

Also, I'm assuming your STATE return doesn't include the W-2 either (If you live in a state w/ income tax). I would make sure to address your state return right away, too.

Answer 2

The only way you'd have gotten a larger refund by including that job in the first place is if you had so much withheld, it was more than the total tax you owed on that job. That's possible.

You can't just refile from 2005. But it would be good to fill out a 2005 form including ALL of your income, and see what the difference is in your total tax and in your refund. The IRS had theoretically already done this and come up with your owing quite a bit extra, but they aren't always right - seem to have a problem especially where capital gains are included in the return - if all your income is from jobs, their figures are more than likely right.

Answer 3

Take your 2005 tax return, the letter from the IRS, and the W-2 or 1099 from the job you didn't report to a professional preparer who will advise you exactly what to do.

You do not refile your 2005 taxes. Whether you submit an amendment or not depends on the letter. So, get a tax professional to go over this with you and respond ASAP.

It may be as you suspect that you do not owe as much as the IRS says you owe. In particular, if you are due credits such as the Earned Income Credit or Child Tax Credit, that may not have been figured into the IRS computation.

Answer 4

If the job was reported on a W-2 form, the notice you received was an IRS Notice CP2000. The letter should have explained both the additional income and withholding. They would have calculated the impact on your return including any changes to adjustments, credits, or taxablity of other income. The letter instructs you not to file an amendment and gives you three options, agree, don't agree and agree with some of the changes. You mark the box and send them an explaination for anything other than total agreement. If you agree you pretty much have to send the money or request a payment plan. You never can add the W-2 earnings from one year to another year.

Answer 5

Oh, geez, what a mess. Next year do NOT have your mom file your taxes. One of you has to file a return amending to drop the claim to you. The IRS WILL catch this, it isn't a matter of random audit, they compare EVERY return for duplicate claims to the same person. The person to amend should be the person who doesn't really have the right to claim you. Apparently you filed by mail - if you had both tried to efile they would have caught it already. And for the W-2 that got omitted - yes you have to file an amended return for that too - and they just didn't catch it YET, it'll happen, that's 100% sure. They don't run those matches until after tax season and after most amendments are in - it's often a year or so later. But don't wait until they notify you - by that time you'll owe interest and possible penalties as well as the original tax.

Answer 6

Filing an amended return probably won't make any difference in the total tax liability but it's worth preparing one anyway to be sure.

You probably would NOT have received a larger refund (not return!) if you had included the missing W-2. The IRS has all of the information from that W-2 and has already recalculated your tax liability and arrived at the $1,400 tax due, plus penalties and interest of course.

Answer 7

File an amended return a 1040X. I had to do the same...they sent me the HUGE difference of 6 dollars!!! I forgot to add an income of only 2 weeks. BTW it was a 2004 tax return that I forgot so I sent an amended one out in 2005.
Also...it wouldn't hurt if you haven't already contact the IRS by phone...tell them your situation.