IRS Penalties & Interest on 1040X?
I filed my taxes for 2008 before the filing deadline and received a refund. Then received another W-2 after filing deadline had passed (wife’s company changed names mid-year and sent the W-2 from old business name to an address we had 2 years ago – we did not realize we were missing a W-2). Can’t find any guidance on interest/penalties under these circumstances. Help would be appreciated.
THX
Thanks for the quick replies. My original withholdings were still enough to get a refund even with the new W-2 income added – just less than the amount of refund the IRS sent on Original filing. I double check all other information and it was correct.
Comments (2)
There’s no way out of the interest if more tax is due but you can ask for an abatement of the penalty. Your situation is reasonable to ask for for an abatement of the penalties and if you have not requested on in the past few years the IRS will probably accommodate your request.
Tip: You should always double-check the numbers on your W-2s and compare them to the totals on your pay stubs. In fact, you should do that NOW before you file the amended return as it’s possible that the income was properly reported on the W-2 that you already received and some accounting troll somewhere screwed up and cut them again under the old company name. If that did happen — and things like that do happen all too often — the company should cancel the W-2.
If after re-figuring your tax with the new W-2 you owe more than the withholding, IRS will add interest at the current rate of 4% per year. There will be no penalty if you pay with the amended return or as soon as you get a bill for the additional tax.