Wow! I vaguely remember this but it definitely happened to me.
Looking back at my notes, I work for a very large corporation with centralized benefits and I had contacted my employer to advise them of the mistake and to ask how to get the money backed out. They gave me the correct information to get the money backed out but then they jumped the gun and issued a corrected W2. That's what through the whole event out of kilter. They should not have issued the corrected W2 and all would have been handled correctly by TT. So for your first question, I didn't ask for a corrected W2, BUT my conversation with my employer benefits team prompted them to issue one anyway.
The penalty question is more tricky. I recall having to skirt around it and TT helped in that regard. I looked back at my tax returns from those 2 years and there's no penalty. I just can't recall how it was handled.
One other note - I signed up for Audit Defense both years just in case. It helped me sleep better 🙂
All the best...
