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chamchari
New Member

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

The thousand dollars from 1 employer-I barely worked there a month and I never received a W2 and the 2nd employer, my W2s for that one stated 7 thousand dollars and the employer claimed almost 8 thousand and I never received an updated W2 and now cannot find my old W2 due to some moving. What can I do? I don't have 4 thousand and change to give to the IRS.
1 Best answer

Accepted Solutions
Opus 17
Level 15

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

Firstly, make sure to be aware of any deadline in the IRS notice.  You must respond in time or you may lose your rights to appeal or challenge the finding. 

Second, you obviously need to report and pay taxes on income from "job 1" even if you only worked there a month and they never sent you a W-2.  To find out exactly what job 1 reported for your income, you can get a Wage & Income transcript for 2015 from the IRS.  https://www.irs.gov/Individuals/Get-Transcript   

Third, you need to understand the issue with employer #2.  You say the income changed, or the employer reported something different than your W-2?  Start with the wage and income transcript.  If the income on file matches your pay stubs, then you need to report it as filed.  If the income on file is more than you received and you still have pay stubs to prove it, you can try telling the IRS that the W-2 on file is incorrect, and send them copies of your pay stubs and your original W-2 that you believe is correct.  Explain there is no basis for the company to add income to your W-2 that they never paid you.

Then finally, you will need to prepare an amended tax return using the new W-2 you forgot, and the corrected W-2 for the second job (if appropriate).  Even if the IRS is correct about the missing income, they may not be correct in calculating the tax owed.  You can also print and examine the amended tax return before you file it, and compare it with the original return, to see why your tax changed so much.  (You might have lost other credits or the PTC, we can't see your file or your letter.)

If the amended tax return agrees with the IRS letter, you owe the money.  Pay what you can and ask for a payment plan for the rest.  You don't need to mail the amended return, the IRS has already adjusted your account.

If the amended return disagrees with the IRS, send the amended return, your payment, and a letter of explanation, to the office that sent the notice (not the usual amending address).

Amend https://ttlc.intuit.com/replies/3288565


*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

7 Replies
DoninGA
Level 15

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

Your post does not make sense according to what you wrote.
If you have an additional $2,000 of income that in no way would generate $4,000 of taxes.
Also, if your only income was just a total of $9,000 and you were not being claimed as a dependent then the first $10,300 of income would not be taxed assuming that you are filing as Single and all the income was from wages reported on W-2's.

You need to call the IRS using the phone number on the notice you received and find out what exactly they have for your income and the reason for the taxes owed.
chamchari
New Member

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

I should clarify, married filed jointly... I held 3 different jobs that year....I left one and temporarily worked 3 weeks, generated less than one thousand in income. Promptly resigned and ended up at a different job where I did not receive updated W2 and so there is a difference almost a thousand dollars. So I guess somehow the difference in a thousand plus the unclaimed amount ( totaling 2 thousand roughly- the IRS is asking for 4000).
DoninGA
Level 15

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

As I said, $2,000 of extra income on your tax return would never generate $4,000 of taxes even with penalties and interest added.  Maybe $200 or $300 in more taxes but never $4,000.  Call the IRS to get this straightened out.
TaxGuyBill
Level 9

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

@DoninGA   You are probably correct.  However, I've read of a similar situation where the taxpayer had Marketplace health insurance and the extra income disqualified the Premium Tax Credit.  The taxpayer needed to repay over $12,000 of Advance credit.
SweetieJean
Level 15

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

"ended up at a different job where I did not receive updated W2"  How much did you make there?
Opus 17
Level 15

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

Firstly, make sure to be aware of any deadline in the IRS notice.  You must respond in time or you may lose your rights to appeal or challenge the finding. 

Second, you obviously need to report and pay taxes on income from "job 1" even if you only worked there a month and they never sent you a W-2.  To find out exactly what job 1 reported for your income, you can get a Wage & Income transcript for 2015 from the IRS.  https://www.irs.gov/Individuals/Get-Transcript   

Third, you need to understand the issue with employer #2.  You say the income changed, or the employer reported something different than your W-2?  Start with the wage and income transcript.  If the income on file matches your pay stubs, then you need to report it as filed.  If the income on file is more than you received and you still have pay stubs to prove it, you can try telling the IRS that the W-2 on file is incorrect, and send them copies of your pay stubs and your original W-2 that you believe is correct.  Explain there is no basis for the company to add income to your W-2 that they never paid you.

Then finally, you will need to prepare an amended tax return using the new W-2 you forgot, and the corrected W-2 for the second job (if appropriate).  Even if the IRS is correct about the missing income, they may not be correct in calculating the tax owed.  You can also print and examine the amended tax return before you file it, and compare it with the original return, to see why your tax changed so much.  (You might have lost other credits or the PTC, we can't see your file or your letter.)

If the amended tax return agrees with the IRS letter, you owe the money.  Pay what you can and ask for a payment plan for the rest.  You don't need to mail the amended return, the IRS has already adjusted your account.

If the amended return disagrees with the IRS, send the amended return, your payment, and a letter of explanation, to the office that sent the notice (not the usual amending address).

Amend https://ttlc.intuit.com/replies/3288565


*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Afonja1950
New Member

Received letter from IRS regarding difference in reported income from one employer and unclaimed thousand dollars from another employer for 2015. Now I owe 4000 backtax

Notice:   CP2501

TAX YEAR:  2018

AUR: [social security number removed]

 

I received a letter from the IRS saying the income I reported doesn't match up to the ones other financial institutions reported.

I used your TurboTax intuit for filling.

Both incomes were reported.

Could you please find out why Turbo tax didn't send our joint income information?

Thanks.

Chidoro

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