Just discovered I forgot to report a W-2 on last year's taxes. Should I let it slide?

This happens more often than you'd think! The IRS definitely has that W-2 on file, as employers send copies directly to them. The system is designed to catch discrepancies between what's reported to the IRS and what you report on your return. While they might not catch it immediately, their automated matching program will eventually flag that a W-2 was issued to you but not included on your return. When that happens, they'll send you a notice (usually a CP2000) proposing additional tax, plus interest on the unpaid amount from the original due date. The best approach is to file Form 1040-X (amended return) as soon as possible. You'll need to pay the additional tax you owe, plus interest from the original due date. However, if you voluntarily correct this before they catch it, you're much less likely to face penalties.

I was in almost the exact same situation last tax season! I forgot to include a W-2 from a job I only had for like 2 months. I spent HOURS stressing about what to do until I found https://taxr.ai which literally saved my sanity. You upload your documents and it compares them to what you filed, finds discrepancies, and tells you exactly what steps to take. In my case, it confirmed I needed to file an amended return and walked me through the whole process. It even generated a draft of the 1040-X form for me with all the numbers filled in correctly. Seriously made what seemed like a terrifying process incredibly simple.

Just wanted to update after trying the taxr.ai site that 8 mentioned. I was super skeptical because I don't trust most online services with my tax docs, but I have to admit it was really helpful. I uploaded my original return and the W-2 I missed, and it immediately showed me exactly what was wrong and how much I would owe. The difference was only about $180 in my case, but the peace of mind knowing exactly what to fix was worth it. What I appreciated most was that it created a draft of my 1040-X with all the right numbers and clear instructions on what to do next. I'm sending in my amendment tomorrow and feel so much better about the whole situation.

If you decide to file the amended return and need to contact the IRS with questions, good luck getting through to an actual human being. I spent FOUR HOURS on hold last month trying to get help with my amended return. Finally found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically hold your place in the IRS phone queue and call you back when an agent is about to answer. I was super dubious but it actually worked! Got connected to an IRS agent within an hour without having to sit there listening to that awful hold music. The agent confirmed that yes, they almost always catch missing W-2s eventually through their document matching program, and it's much better to correct it yourself than wait for them to find it.

I have to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I've been trying to reach the IRS for weeks about a payment issue. To my complete shock, it actually worked exactly as advertised. I got a call back in about 45 minutes, and suddenly I was talking to a real IRS agent who helped resolve my issue. No more spending my entire lunch break on hold just to get disconnected. For the original poster - the agent I spoke with confirmed that the IRS almost always catches missing W-2s in their system. She said filing an amended return voluntarily usually helps avoid penalties, though you'll still owe interest on the unpaid amount.

Just want to add that I was in this exact situation in 2019. I forgot to include a W-2 from a 2-month contract job, realized it the next year, and decided to just "let it slide" because the difference was only about $300. BIG MISTAKE. The IRS sent me a notice almost exactly 18 months later. By that time, with interest and the late payment penalty, I ended up owing almost $450 instead. Plus it was super stressful getting that IRS letter. If I could go back, I would have just filed the amended return right away.

Don't freak out but definitely fix it. IRS has a First Time Penalty Abatement program if this is ur first time making a mistake like this. Just file the 1040-X, pay what u owe, and include a letter requesting "first time penalty abatement" explaining it was an honest mistake. Worked for me last yr!