One of the biggest mistakes a taxpayer can make — and it’s a mistake that can trigger an audit by the IRS — is overlooking or ignoring a W2 or a W2G or a 1099 earnings statement sent by an employer or business or casino.
When these forms are given to you, or mailed to you, copies of those forms are sent to the IRS where they are loaded into the IRS’s computers and they are held in the IRS computers to be compared with your tax return when you file it. Sometimes they are used to file a tax return by the IRS on your behalf when you don’t file a tax return on your own. This is why we tell you that you can’t hide or ignore these 1099 and W2 and W2G reports when they are issued — because the IRS is getting their own copies.
This system of keeping copies of your income statements (W2, 1099, W2G and others) is a check and balance that both protects you and it also protects Uncle Sam. These documents such as a W2 and W2G and 1099 also allow the companies that issue them to justify their deductions for the money paid to you. They are a check and balance for everybody.
INCOME STATEMENTS CAN ALSO PROTECT YOUR SOCIAL SECURITY
When income reports are sent to you — and copies go to the IRS — your Social Security is also being protected because there is a record of your earnings for Social Security benefits. Yes, a lot of people forget that your Social Security retirement benefits will vary with your income — so thank the “system” for the copies of your income statements that are sent to the IRS.
It’s also been the law since 2015 that copies of your W2 income statements also go to the Social Security Administration, and that helps you get your benefits.
EVERYONE IS AN INFORMER
The way this check and balance system works everyone is an informer. Your employer and that casino are government informers. So remember, you can’t ignore and hide your jackpots from the IRS even if you ignore and fail to report your non-W2G wins as well. And by the way, non-W2G wins are also supposed to be reported to the IRS but they can be offset with losses, as can your W2G jackpot wins.
YOUR TAX INCOME REPORTS ARE VITAL FOR CERTAIN IRS BENEFITS
Let’s talk about the copies of the W2s and W2Gs and 1099s sent to the IRS. They are there waiting for your tax return to arrive. And when your tax return arrives the IRS will check to be sure that what’s on your tax return and what’s in their computers match.
It’s this “match game” that decides if your tax return and refund will sail through, or if you will get a letter indicating a discrepancy and possibly a bill from the IRS for extra taxes, or even an audit notice. But that successful match can also be vital for various IRS programs that can help you with your tax debt.
The IRS will also want to make sure the amounts on your tax return and those forms match up if you are seeking an Offer In Compromise or other IRS Fresh Start Initiative programs or tax relief.
SO DON’T IGNORE OR HIDE THESE REPORTS
Once those income reports arrive each year at the IRS the tax season for you officially starts and the reality is with income reports such as W2Gs from casinos the tax season is running every day of the year.
By the way, those same forms in the IRS computers can help the IRS stop fraud — and it can protect your money. Yes, the IRS can use these income reports to determine if your account is being tampered with.
IF YOU’RE MISSING TAX FORMS
If you’re missing any kind of income statement such as a W2 or 1099 our website services may be able to help you to quickly recover these documents. Click on our links to start getting help now including help with an IRS Offer In Compromise or the IRS Fresh Start Program.
WE CAN HELP YOU NOW
Remember that fast action saves time, money and aggravation and our tax experts have the experience to go to work for you immediately especially with the IRS Fresh Start Initiative.
And if you are facing an audit or a tax debt our IRS Fresh Start Initiative guidance can help you right away. But if you are not eligible for the IRS Fresh Start Program of for the Offer In Compromise Program there are solutions available to you and we can discuss those solutions with you in a free telephone consultation.
The video below will explain how easy it is to have this free telephone consultation with one of our tax resolution specialists.
Here again is the direct phone number to call our senior tax resolution specialist Tom at our office: 949-359-0810
Or, you can call our general number on this page to reach any of our tax resolution experts about the IRS Fresh Start Initiative or the IRS Offer In Compromise.