Am I liable of my employer put incorrect income on the W2 then reported a larger amount to the IRS?

Question

I recieved a letter from the IRS stating that my wife's employer reported that she made $8000 in income. The W2 he provided shows she made $4000. We were seperated so I am unsure which is correct, but I think it might be the $8000. Can I be held liable for the additional tax if I reported what was on the provided W2?

Answer 1

If her employer didn't put the correct amount on her W-2, the IRS can't fine you.  However, if, due to the increase in income, you end up owing more, you will have to pay it.  Contact her employer and have them reissue a corrected W2 (it's called a W2-C).  You'll have to file an amended tax return with the new information.  The IRS website can give you more instructions and you can download the forms there.  www.irs.gov  You'll probably have to file an amended return with the state as well.  See your state government's website for those forms.

Answer 2

Since twice the amount on the W-2 was reported to the IRS, I would make sure that the income was not reported twice before agreeing to the additional tax.

I would get the correct W-2 and then if it is $8,000, pay any additional tax owed.

Answer 3

Are you sure she didn't get a corrected W-2, and only pass on the original to you?

It sounds like you filed a joint return.  So yes you are liable for the extra tax.  You might be able to talk the IRS out of charging penalties and interest on the extra amount.

Answer 4

Yes you will be liable, not unless you can proof how much was actually earn, such as paystubs.

Answer 5

The tax is based on your, and your wife's, ACTUAL income, not what was reported on Form W-2.  If she made $8,000 and reported $4,000 on the return, you and she owe the additional tax.  You also owe the interest on that tax.  You may not owe any penalty resulting from the employer's error, but that's a moot point because no penalty resulted from the employer's error.

If the $8,000 is correct, her employer does NOT have to file a W-2c, because there is nothing to correct.  You do NOT need to file an amended return.  You need only agree with the IRS's proposed assessment.

Answer 6

Have the employer correct the W2. "Amendeded W2"