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No, you cannot add prior year income to your current year tax return. You will have to file amended returns to report the income. You do not need a W-2. Once you have started your amended return,
For information on how to amend your returns see: How do I amend my federal tax return for a prior year?
Do you think I will pay fees and/or penalties on these earning. They were roughly 16K per year?
Yes, you will likely have to pay a late penalty and fees for underreporting income for the past 2 years.
"The amount of an accuracy-related penalty equals 20 percent of the portion of the underpayment attributable to the taxpayer’s negligence or disregard of rules or regulations or to a substantial understatement.3 The IRS may assess penalties under both IRC § 6662(b)(1) and IRC § 6662(b)(2), but the total penalty rate cannot exceed 20 percent" IRS Underreporting Penalty
You can contact the IRS to see if you can get some or all of the penalty waived through an abatement or administrative waiver.
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