How to handle incorrect W2C after receiving CP2000 notice about double-reported income?

I just got a CP2000 notice that showed my previous employer filed two W2s for me. I only worked there for 8 months last year, but they switched payroll systems during that time. When I left, they specifically told everyone to only use the W2 from the new system because it included ALL our income from both systems combined. Well, now the IRS is saying I underreported because they have both W2s on file. I went through all my direct deposits and the amount matches exactly what I reported (just the one W2), not the combined total of both W2s which would be way more than I actually made. I contacted my old employer and explained the situation, asking for a W2C form to fix this. Instead of correcting the mistake, they sent me a W2C that COMBINES both W2s - basically confirming to the IRS that I made almost double what I actually earned! It's like they just took what they incorrectly reported to the IRS and put it on the W2C rather than checking what they actually paid me. I'm so frustrated. What am I supposed to do when my previous employer is giving me a W2C that I know is wrong? Has anyone dealt with something like this before? Any advice on how to prove my actual income when my employer is being unhelpful?

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18 comments

QuantumQuasar

•8M

This is actually a fairly common issue with payroll system transitions. When companies switch systems mid-year, there can be confusion about reporting. Here's what you should do: First, gather all your evidence. Print out all your pay stubs and bank statements showing direct deposits for that year. Calculate the total yourself to confirm it matches the single W2 you originally filed with. Next, write a formal letter to your former employer's payroll department (not just whoever you've been emailing with). Clearly explain the discrepancy, include your calculations, and request a properly corrected W2C that reflects your actual earnings. Send this certified mail so you have proof they received it. If they still won't provide an accurate W2C, you have a couple options. You can file Form 4852 (Substitute for Form W-2) with your response to the CP2000. This lets you tell the IRS what your actual income was. You'll need to attach all your evidence showing the correct amounts. You could also contact the IRS directly at the number on your CP2000 and explain the situation. The agent might be able to help resolve this without a corrected W2C.

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QuantumQuasar

•8M

Filing Form 4852 doesn't automatically trigger an audit, but it does flag your return for additional review. However, that's actually good in your situation since you want the IRS to look more closely at the evidence rather than just accepting the incorrect W2s. Just make sure your documentation is thorough and clearly supports your position. You typically have 30 days from the date on the CP2000 to respond, though you can request an extension if needed by calling the number on the notice. Don't ignore the deadline - the IRS will assume their calculation is correct if you don't respond, and you'll lose your opportunity to dispute it without going through a more complicated appeal process.

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Connor Gallagher

•8M

I had almost the exact same thing happen to me last year! My company switched from ADP to Paylocity midyear and somehow both systems reported W2s. I found that https://taxr.ai was super helpful for resolving my situation. They have this document analyzer tool that could make sense of all the different W2s and the CP2000 notice. I uploaded my CP2000, both W2s, and my bank statements showing deposits, and their system immediately identified that it was a double-reporting issue. They gave me a detailed report explaining exactly what happened and what forms I needed to file with the IRS. The report was super helpful for explaining things clearly to my employer too. The best part was that I didn't have to try to explain all the technical tax details to the IRS myself - the report did it all. Honestly saved me so much stress and probably avoided me owing thousands in taxes I didn't actually owe.

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Connor Gallagher

•8M

The system is automated for the initial analysis, but they have experts who review everything before sending you the final report. In my case, I had a couple specific questions and was able to message with someone who really understood tax issues like this. My employer never did issue a correct W2C. The report from taxr.ai gave me everything I needed to file Form 4852 (the substitute W2). I included their analysis with my response to the IRS, along with my bank statements, and the IRS accepted it without any further questions. Honestly, it was easier to just skip trying to get my former employer to fix their mistake - they clearly didn't understand what they had done wrong.

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Keisha Johnson

•8M

I just wanted to update on my situation since my original question. I took the advice about using taxr.ai and it was seriously a game-changer! Their document analysis picked up on exactly what happened - my company had accidentally reported the transition period twice. The report they generated explained everything in detail and showed exactly where the double-counting happened. It even calculated the correct totals that matched my actual pay stubs and bank deposits. When I sent their report to my former employer's payroll department, they finally understood the issue and issued a correct W2C. And when I responded to the CP2000 notice with both the report and the corrected W2C, the IRS accepted it without any questions. Would have spent weeks trying to figure this out on my own. Just wanted to share since I know how stressful these IRS notices can be!

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Paolo Longo

•8M

I've seen a lot of people struggle with getting through to the IRS to resolve these kinds of issues. If you're having trouble getting a response from them, I'd recommend trying https://claimyr.com - they have a service that gets you through to an actual IRS agent instead of waiting on hold forever. I used to spend literally hours trying to get through, but their system holds your place in line and calls you when an agent is ready. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c When I had a similar issue with incorrect reporting from a previous job, being able to actually talk to someone at the IRS made all the difference. The agent was able to look at my account in real-time and tell me exactly what documentation they needed to resolve the discrepancy. Saved me from going back and forth with letters for months.

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Paolo Longo

•8M

It doesn't give you any special access - it just automates the calling and waiting process. Basically, their system calls the IRS and navigates through all the prompts for you, then stays on hold so you don't have to. When they finally get through to an agent, you get a call back so you can take over the conversation. No service can guarantee getting through - they're using the same phone lines everyone else does. But the difference is their system can keep trying and waiting while you go about your day instead of being stuck with a phone to your ear for hours.

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Amina Diallo

•8M

I want to follow up on my skeptical comment earlier. I was totally wrong about Claimyr. After struggling for another week trying to reach the IRS myself about my CP2000 notice, I gave in and tried the service. Got connected to an actual IRS agent within a few hours (after trying for WEEKS on my own). The agent was able to see both W2s in their system and put a note on my account about the potential double reporting. They told me exactly what documentation to include with my response to the CP2000. I ended up faxing in copies of all my pay stubs along with a letter explaining the situation, and just got notification that my case was resolved with no additional tax due. Honestly can't believe I wasted so much time trying to handle this myself.

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Oliver Schulz

•8M

Have you considered that your employer might be right? Sometimes when companies switch payroll systems, the new system doesn't accurately import YTD earnings from the first system. That could explain why they're insisting both W2s are correct. You should double check if the first W2 covers January-April and the second covers May-December with different totals, or if they're both showing the full year amounts. If the latter, then yes, it's definitely double reporting.

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Miguel Ramos

•8M

I definitely considered that possibility! But I've gone through all my bank statements and added up every single deposit from that employer. The total matches exactly what was on the single W2 I filed with my taxes (the one from the new system). If I add both W2s together like they're claiming is correct, it's almost $32,000 more than I actually received from them. I also still have the email from HR telling everyone to only use the W2 from the new system because it included all earnings for the year. So I'm 100% certain this is a case of double reporting for those months that were in both systems.

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Oliver Schulz

•8M

That's definitely conclusive then. With your bank statements and that email from HR, you have solid proof. Make sure to include copies of both with your CP2000 response. One more suggestion - try to get in touch with someone higher up in the payroll department, like a manager or director. Sometimes the front-line staff just don't have the authority or knowledge to handle unusual situations like this, but their managers might be able to push through a proper correction.

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Javier Cruz

•8M

There's no specific time limit for W2C forms - employers can (and should) correct errors whenever they're discovered, even years later. The main deadline that matters is for YOU to respond to the CP2000 notice within the timeframe they give you (usually 30 days). If your employer is refusing to provide a corrected W2C, don't wait for them. Go ahead and respond to the CP2000 with Form 4852 and all your supporting documentation showing your actual income. The IRS will review your evidence and make a determination based on what you provide.

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