What Happens If You Forgot to File a W2?

The W-2, or Wage and Tax Statement, is a fundamental document in the United States tax system. Employers issue this form annually to report wages paid to an employee and taxes withheld from their paychecks. It contains information such as gross wages, Social Security wages, Medicare wages, and federal, state, and local income taxes withheld. The W-2 form is essential for accurately preparing and filing an individual’s annual income tax return.

Consequences of Not Filing

Failing to file a required tax return can lead to penalties and interest charges from the Internal Revenue Service (IRS). The failure to file penalty is 5% of the unpaid taxes for each month or part of a month a return is late, up to a maximum of 25% of your unpaid tax. If the return is over 60 days late, the minimum penalty is either $485 (for returns due in 2024) or 100% of the tax due, whichever is smaller.

Separate from the failure to file penalty is the failure to pay penalty, which is 0.5% of the unpaid taxes for each month or part of a month the taxes remain unpaid, also capped at 25% of the unpaid tax. Both penalties can apply concurrently, though the failure to file penalty is reduced by the failure to pay penalty for any month in which both apply. Interest accrues on any underpayment of tax from the original due date until the tax is paid in full. The interest rate is the federal short-term rate plus 3 percentage points, compounded daily, and adjusts quarterly.

Taxpayers who do not file a return may receive various IRS notices, such as CP notices, indicating unfiled returns or discrepancies in reported income. Not filing a tax return means any refund due cannot be processed or issued. Even if a taxpayer is owed a refund, the IRS requires a filed return to initiate the refund process.

Obtaining a Missing W-2

If a W-2 form is missing, first contact your employer directly. Reach out to the payroll department or human resources to request a copy of your Wage and Tax Statement. Providing updated contact information ensures the employer can deliver the document. Many employers can provide an electronic copy, which expedites the process.

If your employer is unresponsive or no longer in business, contact the IRS for assistance in obtaining your wage and income information. Call the IRS at 800-829-1040 to request a transcript of your tax information, which is available by late May for the previous tax year. When calling, be prepared to provide your name, current address, Social Security number, phone number, and the period of employment for which you need the W-2. The Social Security Administration (SSA) also maintains records of W-2 forms submitted by employers and may provide wage information if direct contact with the employer or IRS transcript services prove insufficient.

If all efforts to obtain a W-2 from your employer or tax agencies are unsuccessful, use Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form allows you to estimate your wages and taxes withheld based on pay stubs or other financial records. To complete Form 4852, provide your employer’s name, address, and Employer Identification Number (EIN), along with your best estimates of income and withholding. You must demonstrate a good faith effort to obtain the actual W-2 before using this substitute form.

Filing Your Tax Return

Once you have obtained your W-2 information, or prepared Form 4852, file your tax return as soon as possible. The IRS prefers taxpayers to file a late return rather than not filing at all, as this allows for proper assessment of taxes owed or refunds due. For past tax years, e-filing options may be limited, making mailing your completed Form 1040, U.S. Individual Income Tax Return, the most common submission method.

If using Form 4852 because you could not obtain your W-2, attach this substitute form to your tax return, Form 1040, when you file. Keep detailed records of your attempts to secure the actual W-2 from your employer or tax agencies. This documentation supports your use of Form 4852. The IRS may review the information provided on the substitute form, and a clear record of your efforts can be beneficial if there are questions.

If you previously filed a tax return without your W-2, perhaps using pay stub information, and later receive the official W-2, you may need to amend your return. This correction is performed using Form 1040-X, Amended U.S. Individual Income Tax Return. On Form 1040-X, report the original amounts filed, the corrected amounts based on the W-2, and provide a brief explanation for the changes. Form 1040-X is mailed to the IRS, and processing times can vary.

Any taxes identified as due should be paid immediately to prevent further accumulation of penalties and interest. The IRS offers various payment options, including IRS Direct Pay, electronic funds withdrawal, or mailing a check or money order. If you cannot pay the full amount due, pay as much as you can and then explore IRS payment arrangements, such as an installment agreement, to manage the remaining balance.