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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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The wrong w2 information was submitted 2009..and i recieved

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The wrong w2 information was submitted 2009..and i recieved cp2000 notice today and state i owe 12k on the notice it seems my actual income and the incorrect w2 income are placed together for example i reported 26k and my correct w2 corrected by irs for 26, showing that i worked for 52k when i only worked for 26k i am charged a tax increase . what is the tax increase for and Can an amendment return eliminate the amount owed?
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.
Hi and welcome to Just Answer!
What is the tax increase for and Can an amendment return eliminate the amount owed?
If the amount of your income reported on the tax return was less than your actual income - the IRS recalculates your tax liability based on corrected amount on your income. The difference between the amount of income tax reported and the amount of your actual income tax liability is the tax increase.
Filing an amended tax return MAY reduce or eliminate the amount owned - first of all you need to verify if the amount the IRS claims as your income is correct. Second - the IRS usually do not worry about your deductions - so if any deductions were missing - you need to file an amended tax return and determine a correct tax liability.
If you agree with IRS filing - there is no need to amend your tax return - and your only option is to pay your tax liability.
Please be aware that in additional to your tax liability the IRS assesses penalties and interest. If that was a honest mistake - you may file form 843 to request the penalties be abated - www.irs.gov/pub/irs-pdf/f843.pdf Here are instructions - http://www.irs.gov/pub/irs-pdf/i843.pdf

To abate penalties - you need to provide a reasonable cause to have all or part of penalties abated. The IRS would not forgive interest charges - at least that is very unlikely. You might need a local CPA or Enrolled Agent to represent you with the IRS.

That is a relatively new form - previously the IRS accepted an abate request as a free form letter that may be attached to a tax return or sent separately.

First of all - try the IRS to abate penalties - there is nothing to lose - but in case of success - at least part of your problem will be solved.

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