FICA taxes were underwithheld. My employer said he would fix the issue within a month. File for an extension or file as is and amend, if W-2c arrives?

[batyrlan94]

I transitioned from the non-resident alien to the resident alien status in 2017 (6th year on my F-1 visa). However, FICA (Social Security and Medicare) taxes were not withheld by my previous employer that I worked for during the first 6-7 month of 2017. I notified the employer about the problem and they told me that they would fix it within a month starting from now. HR had no clue whether W-2c will be issued or not (she just asked an external payroll company to fix the problem). Do you know what I should do in this case? Wait for the new W-2c and file an extension if it doesn't come in before April 15th, or file the taxes as is (with the old W-2) and amend the return, if W-2c comes in?

[WillK]

I would file your return with the W-2 that you have now to avoid being late on your return. Depending on what information the new payroll company will change on your W-2, a W-2c will be issued to you if necessary. If they do send you a W-2c, you can then file an amended return. Amended returns do not “catch up” to your original return and replace them; they are processed as two separate returns.  

Amended returns have to be printed and filed by mail.  It can take the IRS up to 12 weeks or longer to process them.   If you are due a larger refund than on your original return, your amended return should only show the difference and you will receive a separate check for it.  If you owe money on your amended return, it will show only the new amount owed, you will have to mail a check with the return. You can check the status of your amended return by clicking here: https://www.irs.gov/filing/individuals/amended-returns-form-1040-x-/wheres-my-amended-return-1

 Click here for amending instructions: https://ttlc.intuit.com/replies/3288565

[batyrlan94]

I filled out the forms (as is) and realized that I am supposed to get a refund. Would you still recommend to file the taxes given that I don't owe anything? Also, do you know if I will be subject to any penalties or interest on the difference if the refund calculated on the amended return will be smaller than the original refund? Thank you!

[WillK]

I would file the taxes as is, just because you don't owe anything isn't a valid reason with the IRS not to file.

[batyrlan94]

Can you please explain why filing for an extension would not be a good option in this case, please? Given that I am due a refund, wouldn't it be a good option since I will need to wait for the W-2c anyway?