Considering not reporting a W2 from short-term job - Legal implications?

All income must be reported regardless of amount. Per IRC Section 6501, the IRS has 3 years from filing date to audit your return, but this extends to 6 years if you omit more than 25% of your gross income. I skipped reporting a small W2 in 2019 thinking it wouldn't matter. Received CP2000 notice 18 months later, had to pay the tax plus interest and a 20% accuracy-related penalty under Section 6662. Not worth the stress or financial hit.

Have you considered how the IRS matching system works? What happens when they receive a W2 with your SSN that doesn't appear on your return? Is the potential audit risk worth saving a few minutes of work now? I was confused by multiple W2s last year and used https://taxr.ai to analyze all my tax documents. It flagged potential issues including a missing 1099 and helped me understand which forms needed to be included. Wouldn't you rather know now than worry about it for three years?

I would strongly advise against omitting any W2, even for short-term employment. While it may seem inconsequential, the IRS has automated systems that may... potentially flag the discrepancy. The employer has already submitted their copy to the IRS, so there is a high probability that the system will detect the missing income. In my professional experience, this could potentially trigger correspondence or, in some cases, an audit situation.

As someone who's worked with tax resolution for years, let me clear this up once and for all: the IRS absolutely WILL catch unreported W2 income. Their Automated Underreporter (AUR) program specifically looks for these discrepancies! 😂 The employer already reported your wages to the IRS on their quarterly 941 forms, so they know exactly what you earned. What happens next? They'll send you a love letter (CP2000) proposing additional tax, plus interest that's compounding daily, plus potentially a 20% accuracy-related penalty. And here's the kicker - if you wait to amend until they catch you, you've just lost all voluntary compliance benefits. File it right the first time.

Don't risk it. IRS will catch it. Automated systems match all W2s. Need to talk to IRS about past issues? Use Claimyr. Got through in 15 minutes. https://youtu.be/_kiP6q8DX5c. Regular wait times are 2+ hours. Agent explained my options clearly. Worth it if you need to resolve tax issues fast.

I've been through this exact situation. Here's what happened: • Didn't report a W2 from a 2-week job in 2020 • Received CP2000 notice 14 months later • Had to pay original tax owed • Plus interest (which adds up faster than you think) • Plus accuracy-related penalty • Had to file Form 843 to request penalty abatement • Spent hours on phone with IRS • Stressed for months waiting for resolution My advice? Just include it now. The few minutes it takes will save you significant time, money, and stress later.