Why a missing W-2 or 1099 matters
The W-2 or 1099 form you receive from an employer, bank, or other payer is a copy of what the payer sent to the IRS. The IRS then matches these details to your tax return to verify that you’re reporting your income accurately.
If your return doesn’t match the information the IRS received, you may owe more money or have your tax refund reduced.
What to do first
- Reach out to the payer to request the missing form. Alternatively, you can create an IRS online account and request a wage and income transcript. If an employer won’t provide a W-2 or it sent you one with inaccurate details, file Form 4852 as a substitute.
- Compare the form with your return, including income and withholding amounts.
- If the numbers differ, fill out Form 1040-X to amend your tax return.
- If the amendment results in you owing money, file immediately and pay the bill to minimize interest and penalties. If the change results in a refund, wait until you receive your initial refund before filing your amended return.
How to amend your return
Form 1040-X allows you to correct your income, credits, and deductions that are affected by the missing information. Be sure to include the changes you’re making and the accurate amounts. Then, you’ll calculate your taxable income, along with your tax bill or refund.
You can e-file the amended return for the current tax year and up to two prior tax years. Each year requires a separate Form 1040-X. If you’re claiming a refund, you must file the amended return within three years after you filed your original return or two years after you paid the tax, whichever is later.
Once you submit the amended return, the IRS could take eight to 12 weeks to process it, though it can take up to 16 weeks in some cases. Keep in mind that any changes to your federal tax return may also affect your state tax liability or refund, so check with your state tax agency to learn more about amending your state return as well.
What to do if you’ve received a CP2000 or CP05B notice
If you don’t notice the discrepancy, the IRS may send a CP2000 notice, proposing to adjust your income, payments, deductions, or credits based on a mismatch of information. If you underreported income and owe taxes, you may be subject to interest and penalties until you pay it.
| Situation | What to do |
|---|---|
| You agree and have nothing else to report | Respond to the notice by paying the amount shown on the notice; you won’t need to file an amended return |
| You agree and have other income, credits, or expenses to report | Complete Form 1040-X, write “CP2000” at the top of the return, and submit it with your response |
| You disagree | Respond to the notice and provide supporting documentation for your dispute |
Meanwhile, if income is missing from your return and you’re expecting a refund but haven’t yet received it, the IRS may send a CP05B notice. This letter lets you know that the IRS is holding your refund until you provide documentation supporting your return.
Respond with the information requested. If it supports your return, you’ll receive the original refund. If it doesn’t support your return or you don’t respond, the IRS may reduce or disallow your refund or let you know that you owe money.
Avoid missing a form next year
It’s generally best to wait until you’ve received all of your income documents before you file. Review a checklist of documents you need to file your tax return before you get started to make sure you aren’t missing anything.
