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.

I appreciate everyone sharing their experiences here - it's really eye-opening as someone new to the US tax system. Based on what I'm reading, it sounds like the consensus is crystal clear: report everything, no matter how small. The automated matching system seems pretty sophisticated, and the penalties/interest/stress just aren't worth the risk. @NeonNebula, since you mentioned you're also new to the US, I'd suggest we both just bite the bullet and include all W2s. Better to spend a few extra minutes now than deal with CP2000 notices and penalty calculations later. The IRS already has our employer's records anyway, so we're not really "hiding" anything - just delaying the inevitable paperwork headache. Thanks everyone for the reality check! Sometimes the "easy" path ends up being the most complicated one.

This thread has been incredibly helpful! I'm also relatively new to the US tax system and was honestly considering taking shortcuts with some smaller income sources. But reading through everyone's real experiences with CP2000 notices, penalties, and the stress of dealing with IRS correspondence has completely changed my perspective. What really struck me is how sophisticated the matching system apparently is - it sounds like the IRS basically knows about your income before you even file. The fact that employers report W2 information quarterly means there's really no "flying under the radar" with unreported wages. I think the key takeaway here is that what seems like a minor inconvenience now (adding one more W2 to your return) can turn into months of headaches later. The interest compounds daily, penalties can be substantial, and you lose any "good faith" benefits by waiting until they catch the discrepancy. Thanks to everyone who shared their stories - sometimes learning from others' mistakes is the most valuable education you can get!

Coming from someone who learned this the hard way - absolutely report that W2, no matter how small! I made the mistake of not reporting a W2 from a brief temp job back in 2018, thinking "it's only $400, who cares?" Well, the IRS cared. Got hit with a CP2000 notice almost 2 years later, and what started as maybe $40 in taxes turned into $40 + interest + a 20% penalty. The worst part? I spent more time dealing with the notice, making phone calls, and stressing about it than it would have taken to just add one more line to my original return. The IRS matching system is incredibly thorough - your employer already sent them a copy of your W2, so they're going to notice when that income doesn't show up on your return. It might take them a year or two to catch it, but they will. Save yourself the headache and just include it now. Trust me, the few extra minutes of paperwork beats months of correspondence with the IRS!

Wow, this thread has been such an education! As someone who's still figuring out the US tax system, I was initially thinking along the same lines as @NeonNebula - wondering if a small W2 from a short stint was really worth the hassle. But reading everyone's actual experiences with CP2000 notices and penalties has been a real wake-up call. What really stands out to me is how the IRS matching system seems almost inevitable - they already have your employer's quarterly reports, so it's not really a question of IF they'll catch unreported income, but WHEN. And from what everyone's shared, that "when" comes with interest, penalties, and a whole lot of stress that could have been avoided with just a few extra minutes of paperwork upfront. The stories about penalties turning small tax amounts into much larger bills, plus all the time spent dealing with IRS correspondence, really drive home that the "easy" path isn't actually easier in the long run. Thanks to everyone who shared their experiences - sometimes learning from others' mistakes is the most valuable lesson you can get!

This has been such an enlightening discussion! As someone still navigating the complexities of US tax compliance, I initially thought there might be some gray area with small W2s from brief employment. But the consistent message from everyone's real-world experiences is crystal clear: the IRS matching system is incredibly thorough and patient. What really resonates with me is how many people described the same pattern - thinking a small amount wouldn't matter, then getting hit with CP2000 notices months later, followed by interest, penalties, and significant time spent resolving what could have been avoided entirely. The fact that employers report W2 information quarterly through Form 941 means the IRS already has a complete picture of your income before you even file. @Connor O'Neill's example of $40 in taxes becoming a much larger problem really illustrates the false economy of trying to skip "minor" income reporting. When you factor in the 20% accuracy-related penalty under Section 6662, daily compounding interest, and the stress of dealing with IRS correspondence, it's clear that a few extra minutes of paperwork upfront is infinitely preferable to months of complications later. Thanks to everyone who shared their experiences - this thread should be required reading for anyone new to the US tax system!