What Happens if You Only File One of Your Multiple W-2 Forms?

If you only file one of your W-2 forms, that could lead to an IRS penalty. But don’t get worried too much, because anyone who has changed jobs or juggled more than one profession in a year has very likely asked the question, “What happens if I only file one W-2 form?”

However, you need to keep in mind that filing only one W-2 form, even when you knowingly have more than one to report on your tax return, is a form of manipulating or withholding your income information.

So, if you don’t want to get in any trouble with the IRS and pay fines and penalties, it is best to avoid tax filing errors that involve submitting incomplete tax records.

Key Takeaways

• To answer the question, “What happens if I only file one W-2 form?” The IRS will detect any missing W-2 forms on your return and notify you regarding your missing forms.
• Filing only one W-2 when you received multiple Wage and Tax Statements is akin to withholding income and tax information from the IRS and is considered illegal.
• You can receive multiple W-2 forms within a year if you change employment or work several part-time jobs. If your employer changed their payroll provider or ownership, they must issue new W-2 forms to their staff.

What Happens if You File Only One Out of Multiple W-2 Forms?

If you only file one out of multiple W-2 forms, you will likely receive a notification via mail from the Internal Revenue Service asking for your missing Wage and Tax Statements.

You may also face the following IRS penalties for the W-2 forms that you failed to file before the tax filing deadline:

• $60 for returns filed 30 days after the deadline.

• $120 if filed 31 days after the deadline, but not later than August 1.

• $310 if your missing W-2 forms remain unreported after August 1.

• $630 if the IRS finds that you deliberately manipulated or disregarded your tax returns and obligations.

The penalties listed above apply for every form that you submit late.

Even if you are a minor or dependent filing taxes or a teenager working fixed hours for a full-time or part-time job, it is your responsibility to check that all your W-2 forms and other essential tax details are complete.

After all, the IRS does not discriminate against age when implementing its tax regulations. Moreover, inaccurate tax returns diminish your chances of qualifying for tax credits, such as the American Opportunity Tax Credit.

Can This Trigger an Audit?

Yes, among the possible consequences of filing only one W-2 when you have multiple forms to report is facing an audit from the IRS.

While IRS audits in general are randomly selected, your incomplete W-2 forms can still trigger an investigation if your employer has been audited in the past or is involved in questionable tax filing practices.

Additionally, you may end up fulfilling additional paperwork if the IRS requires you to submit supporting documents to prove your return information.

Now, this is all best avoided, of course, and to do that, let’s start with the basics and explore what this form is, how it works, and why you might get more than one in the first place.

Understanding W-2 Form: How Does it Work?

The W-2 form, or Wage and Tax Statement, is used to report an employee’s annual income and withheld taxes for the completed tax year. Particularly, employees who were paid at least $600 for their services receive the said IRS form.

Aside from summarizing income and withholding taxes, a Form W-2 also shows how much an employee has contributed to their health insurance and retirement plan. At the same time, it outlines the amount received by qualified employees in child and dependent care benefits.

Business owners or employers prepare the W-2 forms on behalf of their employees and are required to send the latter’s respective copies on or before January 31st of each year.

Doing so gives employees enough time to review their Wage and Tax Statements and file their returns before the April deadline. More importantly, receiving W-2 forms in a timely manner keeps employees from facing the possible penalties of late filing or not filing their Form W-2.

Employers must also send copies of the W-2 form to the Social Security Administration and to their area’s local and state tax departments.

4 Situations in Which You Might Have Multiple W-2 Forms

Most of the situations that lead to having multiple W-2 forms have to do with how often you switch jobs within a year. It may also be the result of specific changes in your workplace that involve payroll administration and the company’s operations.

The following examples will help explain better the possibility of receiving more than one Form W-2:

#1. You Changed Your Job Within a Year

Changing jobs in a span of one year means you should expect more than one W-2 form in your mail. Since all employers must furnish their workers’ W-2 forms, every new employer you work for is obligated to report all income paid to you to the IRS.

In that regard, you must know how to get your Form W-2 from your previous employer and even your current one.

If you file only one W-2, even after updating your workplace setting, you end up filing a return with inaccurate information.

#2. You Have Multiple Jobs

Similarly, if you did not switch jobs or transferred from one company to another but took on a number of part-time jobs, you may receive multiple W-2 forms as well.

Take note that you may or may not receive a W-2 form, depending on your work setup.

For example, if your employer requires that you follow a fixed schedule or complete a specific number of hours while having ongoing tasks with the company, then you are considered a W-2 employee.

In contrast, if you have more freedom when you choose to work and are only hired for short-term projects, then you are most likely an independent contractor.

Your client or employer should know how to distinguish between a 1099 vs. a W-2 form to avoid making mistakes in reporting your annual taxes and income.

#3. Your Employer Changed Their Payroll Service Provider

A company or employer may change their payroll provider if they find one that can meet their payroll processing requirements more adeptly.

However, this also means that all sensitive information about their employees’ compensation, taxes, and benefits may be compromised. By issuing new and up-to-date W-2 forms, employers maintain the accuracy and protection of their payroll data.

#4. The Company Where You Work Changed Ownership

When your employer changes ownership of the company, they must transfer all employee and payroll-related information to the new CEO, chairman, or president. This includes preparing new W-2 forms for existing staff.

Preparing new W-2 forms for each employee serves as the succeeding company owner’s guide on existing workplace policies, employee compensation packages, and eligibility for certain government assistance.

If you only file one W-2 after your employer transfers ownership of the company, the IRS will easily detect this mistake since they can compare your tax return with your new employer's.

What to do If You Filed only One W-2 Form: 3 Countermeasures

The main thing you have to do if you filed only one W-2 form is aim to amend the said error as soon as possible.

You can address a missing or late Form W-2 using the following solutions:

#1. Contact Your Employer if Your W-2 Forms are Missing

You must inform your current or former employer immediately in case you notice that one or more of your W-2 forms are missing.

Should your employer refuse to cooperate and still not send your Form W-2 copy after February 15, you can report them to the IRS. In response, the Internal Revenue Service will send a letter urging your employer to issue your W-2 form in 10 days or less.

#2. File an Amended Return (Form 1040-X)

An amended tax return, or Form 1040-X is an IRS form used to rectify mistakes in previously filed tax returns, such as Form 1040, 1040-NR, and 1040-SR.

Form 1040-X lets you itemize and provide detailed information on all the needed adjustments to your tax return. However, you must not use your Amended U.S. Individual Income Tax Return to correct simple calculation errors in your tax filing papers.

You can file a 1040-X form electronically with the help of tax preparation software service providers authorized and recommended by the IRS.

#3. File for a Tax Extension

Filing for a tax extension grants you additional time to prepare all the necessary documents to file your returns, particularly if you only file one W-2 despite receiving multiple copies.

Unfortunately, it does not give you additional time to pay your taxes, and you will still continue to incur penalties until you finalize and file all your returns.

The deadline for a tax filing extension this year is October 15, 2024.

The Impact of Not Filing All Your W-2 Forms on Tax Refunds and Balances Due

Not filing all of your W-2 forms impacts your tax refunds and tax balances in such a way that you may end up paying a huge tax debt on top of the taxes that you already owe.

Remember, filing only one W-2 if you received multiple Wage and Tax Statements is considered a form of misinformation on your returns. That said, the IRS can charge you with civil or criminal penalties, depending on the number of missing W-2 form details.

The Internal Revenue Service also follows what they call a statute of limitations, which spans three years, to allow taxpayers to amend their erroneous and incomplete tax return information. The said time frame is also the limit for disbursing tax refund checks.

If you fail to file your Form 1040-X within three years, you miss the chance of possibly getting a bigger refund or claiming additional tax credits.

4 Best Practices For Filing Multiple W-2 Forms

The four best practices for filing multiple W-2 forms described below are among the most practical and adaptable ways to avoid filing only one W-2 among all your required tax returns.

#1. Regularly Update and Check Your Records

Indeed, it is your employer’s responsibility to prepare and send your W-2 forms in a timely fashion. However, that does not absolve you of any obligations when it comes to preparing for the tax season.

Keeping a close eye on your records, whether they be your pay stubs, tax forms, retirement and health insurance contributions, or eligibility for tax deductions and credits, is crucial.

Doing so will help you identify early on if there are any errors or inconsistencies in your annual income and tax report. The early detection of any mistakes in your tax information gives you more time to address all detected W-2 form corrections.

#2. Hire a Certified Public Accountant (CPA)

A certified public accountant is well-versed at calculating your tax dues and explaining the scope of your rights and obligations as a taxpayer.

They will guide you in assessing your options for filing multiple W-2 forms. Plus, a reliable accountant will give you more insight into the importance of understanding how filing only one W-2 out of your other Wage and Tax Statements can negatively affect your tax records.

#3. Use an Online W-2 Generator

Paystub.org’s online W-2 generator is perfect if you want a more cost-effective and convenient solution if you need to file multiple W-2 forms or made the mistake of only filing one of your Form W-2.

With our generator, you can use a template that outlines all the necessary fields in a regular Wage and Tax Statement. You can also create copies of as many W-2 forms as you need since all you have to do is fill in the blank fields with all the important information.

Even more impressive is how you can curb W-2 mistakes or errors when computing your withheld taxes, gross, and net wages with the help of our built-in calculator.

#4. Use the IRS Free File Program

Electronically filing your tax returns through the Internal Revenue Service’s Free File Program is ideal if you need to process multiple W-2 forms. The IRS allows e-filing for 10 W-2 forms or returns at a minimum.

The said program effectively lets you save time during tax filing season and minimizes instances of forgetting to file one or more of your Wage and Tax Statements.

Final Thoughts

Now that you know the answer to the inquisition, “What happens if I only file one W-2?” then you should bear in mind that you should always be responsible and vigilant when filing your tax returns.

Make it a habit to review and compare all the information on your W-2 formswith your tax return. Count your forms and compare them with the number of employers or jobs you have to avoid filing only one W-2 or misplacing all your other W-2 forms.

What Happens if I only File One of My W-2 Forms FAQ

#1. I forgot to file a W-2 can I file it next year?

No, you cannot file a current year W-2 form next year if you forgot to file. The W-2 form you receive this year reflects your taxable earnings for the year and the taxes you paid based on your annual income.

#2. How long can you not file a W-2 form?

You can choose not to file a W-2 for as long as you can, but you must be prepared to face hefty penalties from the IRS. If you only missed the April deadline for filing taxes, you can use Form 8809 and file for a tax extension.

#3. Will the IRS catch a missing W-2 form?

Yes, the IRS will catch a missing W-2 form. The IRS will compare the taxes withheld from your annual salary to the amount of income you've reported for the year.

#4. What happens if I already filed my taxes and received another W-2 form?

If you already filed your taxes and received another W-2 form, all you have to do is amend your return using Form 1040-X, Amended U.S. Individual Income Tax Return. You can file the said form on paper or electronically.

#5. How long do I have to file an amended tax return?

In general, you have up to three years following the date when you filed your original tax return to file an amended tax return. It is highly recommended that you do not go beyond three years to fix any issues in your returns to maintain your eligibility for your tax refunds.