Get your taxes done using TurboTax

There is no penalty for failing to file a W-2.   There IS a penalty for failing to report income but you cannot fail to report zero income.   There is nothing to penalize.     However, you sign a tax return that the return is complete and accurate to the best of your knowledge under penalty of perjury.   I would not include income that I did not earn.  Doing that "could" under some circumstances inflate the Earned Income Credit illegally - even if "only" by a dollar.  Many tax "tables" have brackets that "jump" from one bracket to another.  A $1.00 change in income that does not exist "can" under some circumstances to have a several dollar change in the final tax owed or refunded.  I would never add income that was not on the W-2 itself.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**