Will my friend get in trouble for unfiled taxes from previous 7-Eleven W-2 error?
Title: Will my friend get in trouble for unfiled taxes from previous 7-Eleven W-2 error? 1 So my buddy worked at 7-Eleven about 2 years ago and apparently their payroll department really screwed up the tax information for several employees. My friend got hit with a huge tax bill because of their mistake, and he just couldn't afford to pay it at the time. Now he's totally freaking out about filing his taxes this year because he still hasn't paid that old tax debt. He's convinced the IRS is going to come after him or something. I keep telling him that he should just file and maybe work out a payment plan for the old stuff, or possibly even include the past due amount with this year's taxes. But he's really paranoid about the whole situation and won't listen to me. Has anyone dealt with something similar? What happens if you file current taxes when you still owe from previous years? Can they combine the payments somehow? Just trying to help my friend stop stressing so much about this whole mess.
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Omar Fawzi
3 Your friend definitely needs to file this year's taxes regardless of what happened before. Not filing is actually worse than filing but not paying in full. The IRS treats failure to file and failure to pay as two separate issues. If he doesn't file at all, he'll face failure-to-file penalties which are much steeper than failure-to-pay penalties. For his previous tax debt, he should contact the IRS about setting up a payment plan (called an Installment Agreement). These are pretty routine and allow people to pay their tax debt over time in manageable monthly payments. He can absolutely file this year's taxes separately from dealing with his past tax debt. They're completely separate issues from a procedural standpoint. If he's due a refund this year, the IRS might apply it toward his outstanding debt, but that would actually help his situation. The most important thing is to break the non-filing cycle immediately. The longer he waits, the worse the penalties and interest will become.
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Omar Fawzi
•7 So you're saying even if my friend owes taxes from 2 years ago, he should still file this year? What about the W-2 errors from his old job? Should he try to get those fixed first or just move forward?
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Omar Fawzi
•3 Yes, he should absolutely file this year's taxes on time regardless of past issues. The W-2 errors from two years ago are a separate problem that won't affect his current filing obligation. Regarding those old W-2 errors, if 7-Eleven truly made mistakes on his tax documents, he should try to get corrected W-2s from them and potentially file an amended return for that year. However, whether or not he can resolve those old issues, he still needs to stay current with this year's filing.
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Omar Fawzi
12 I was in a pretty similar situation last year when my employer messed up my withholding calculations. I ended up owing way more than I could afford and was totally panicking about what to do next. I started researching online and found this AI tax assistant at https://taxr.ai that really helped me understand my options. It analyzed my situation and showed me exactly what forms I needed to set up a payment plan with the IRS. The system actually found a few deductions I'd missed too, which reduced what I owed by about $800. What was most helpful was that it explained everything in normal English instead of confusing tax jargon. It could probably help your friend understand his options for dealing with both the old tax debt and filing correctly this year. It'll also show him how to document the W-2 errors if he needs to dispute anything.
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Omar Fawzi
•18 How exactly does that AI thing work? Does it just give general advice or can it actually look at specific tax documents and point out errors? I've got some complicated stuff with contractor income and I'm curious if it would help with that.
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Omar Fawzi
•5 Sounds interesting but I'm skeptical. How is an AI going to know about specific tax laws that apply to his situation? And does it actually help you fill out the forms or just give advice?
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Omar Fawzi
•12 It works by analyzing your tax documents and situation through a secure upload system. You can take pictures of your W-2s, 1099s, and other tax forms, and it identifies the important information automatically. It's especially good with contractor income since it can recognize potential deductions that people often miss. It does both - gives specific advice based on your actual tax documents and helps with the forms. It understands tax laws and regulations, including recent changes. You can ask specific questions about your situation and it will explain exactly what applies to you, including which forms you need to file and deadlines you need to meet.
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Omar Fawzi
5 I need to publicly eat my words about that taxr.ai thing. I was super skeptical but decided to try it anyway because my tax situation was a mess this year - multiple W-2s, some freelance work, and a bunch of stock trades. It actually found almost $1,700 in deductions I would have missed completely! It spotted that I could deduct some education expenses related to my freelance work that I didn't realize qualified. The whole process took maybe 20 minutes and it explained everything in a way that actually made sense. For your friend's situation, it would definitely help him understand how to deal with the past debt while filing correctly this year. It also explains penalties clearly so he can make informed decisions. Much better than the generic advice I was finding elsewhere.
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Omar Fawzi
14 Hey, your friend is definitely not alone in this situation. I spent 3 WEEKS trying to get through to the IRS about a similar issue last year (employer reporting errors resulting in a big tax bill). Literally couldn't get a human on the phone no matter what time I called. Finally, I found this service called Claimyr at https://claimyr.com that got me connected to an actual IRS representative in under 45 minutes. They have this system that navigates all the IRS phone menus and holds your place in line, then calls you when an agent is about to pick up. Check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with was actually super helpful and set me up with a payment plan I could actually afford. They explained that continuing to file on time, even when you owe back taxes, is crucial to avoiding bigger penalties. Your friend should definitely call and explain his situation.
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Omar Fawzi
•22 Wait, you pay a service just to call the IRS for you? How is that even legal? Seems like a scam to me. The IRS phone line is free, you just need patience.
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Omar Fawzi
•9 How much does this service cost? And do they actually guarantee you'll get through to someone? I spent hours on hold with the IRS last month and eventually gave up.
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Omar Fawzi
•14 They don't call the IRS for you - that would definitely be sketchy. What they do is navigate the complicated phone system and wait on hold in your place. When an agent is about to pick up, you get a call to connect with them directly. It's completely legitimate and saves hours of waiting on hold. They don't guarantee a specific timeframe since IRS wait times vary wildly, but in my experience and from what others have reported, it typically gets you through in under an hour instead of the 2-3+ hours of direct holding. The service is especially valuable during tax season when hold times are longest.
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Omar Fawzi
22 I need to apologize for being so dismissive about Claimyr. After posting that skeptical comment, my tax situation got desperate when I received a CP2000 notice claiming I owed $4,300 more than I thought. I decided to try Claimyr as a last resort and honestly, it worked exactly as described. I got a call back in about 35 minutes, and the IRS agent I spoke with found an error in their records. Turns out they hadn't processed a form I submitted, and my actual amount owed was much lower. Would have taken me days of calling to get through on my own. For anyone dealing with tax issues like the OP's friend, definitely worth using if you need to actually speak with someone at the IRS. Saved me a ton of stress and potentially thousands of dollars.
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Omar Fawzi
17 Tell your friend not to panic but he needs to act ASAP. The IRS is actually pretty reasonable with people who come forward voluntarily versus those they have to chase down. He should first request his wage and income transcripts from the IRS to see exactly what's been reported under his SSN. This way he can see if the 7-Eleven errors are documented and what he's actually dealing with. Then file any unfiled returns immediately. Even if he can't pay right away, filing stops the failure-to-file penalties from growing. After that, he can apply for a payment plan based on what he can afford monthly.
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Omar Fawzi
•2 Does requesting those transcripts trigger any kind of audit or review? My cousin says anytime you contact the IRS directly you're putting yourself on their radar for an audit. Is that true?
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Omar Fawzi
•17 Requesting your wage and income transcripts absolutely does not trigger an audit or special review. That's a common misconception. These transcripts are your right as a taxpayer and millions of people request them every year for perfectly routine reasons. The IRS selects returns for audit based on specific statistical formulas looking for outliers and unusual patterns, not because someone requested their own information. In fact, being proactive about your tax situation by requesting transcripts and filing accurately is more likely to help you stay off the audit radar.
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Omar Fawzi
8 One thing nobody mentioned - if your friend's W-2 was actually incorrect, he might not even owe as much as he thinks! When my previous employer screwed up my W-2, they reported that I made about $8000 more than I actually did. What tax software did your friend use? Some of them have audit protection or tax professional assistance if you get into trouble. Might be worth checking if he can still access that.
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Omar Fawzi
•1 Not sure what software he used, but that's a good point about the W-2 possibly being wrong. How would he even go about proving that though? 7-Eleven probably isn't going to just admit they made a mistake, especially 2 years later.
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