A W-2 is essential for filing taxes, but in the frenzy to collect all the necessary documentation needed to file each year, the form can easily become lost. It’s not uncommon for the forms to get lost in the mail. It’s a very good reason why individuals should have a filing system and not wait until the last minute to file their federal tax return.

Contact the Employer

If the employer has already mailed a W-2 to an employee, the individual can contact their employer, human resources, or the person in charge of payroll to get a duplicate. It’s typically the easiest and fastest way to obtain a duplicate copy. The form may be mailed, but a copy may be able to be immediately supplied.

Online Access

In some instances, employers utilize systems that will allow an individual to access their own information, see their W-2 online, and download a duplicate copy. Employees may be required to contact their employer or the payroll service to get access. If all attempts to obtain a duplicate W-2 from an employer has failed to produce results, it’s time to contact the IRS.

IRS Website

Businesses must also file tax returns. That includes information about employees and their earnings. If the employer has already provided that information to the IRS, individuals may be able to obtain a transcript of the data. Individuals will need to visit the official IRS website, click on “Get Your Tax Record,” and complete the required IRS form online.

Be prepared to answer questions. In addition to the individual’s contact information and employment dates, they’ll have to provide an estimate of their wages and taxes withheld. Employer contact information will also be required.

Alternative Form

Individuals will still be required to file their federal income taxes on time and pay any amount they owe. The IRS has a “Substitute for Form W-2 Wage and Tax Statement” that can be filed. If a W-2 is received after the person has already filed their taxes and the information is different, an emended tax return must be filed.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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When you’re entitled to a refund at tax time, it’s understandable that you want to receive it as quickly as possible. E-filing your tax return is efficient, reduces errors, and it’s the quickest way to get your refund.

Speedy Refunds

By e-filing your tax returns, you can typically expect your refund within 3 weeks or less and choosing direct deposit further facilitates the process.

Quick Confirmation

When you e-file your returns, you’ll receive a text within 24-48 hours that your state and/or federal return has been accepted. Conversely, if for some reason an error has occurred, you’ll have the opportunity to go back and fix the problem before resubmitting via e-file.

Fewer Mistakes

According to the IRS, there’s only a 1 percent error rate on returns that are filed electronically, compared to a 20 percent error rate with paper returns. There are numerous online options for completing tax returns that will walk individuals through every step of the filing process and check for mistakes that can be rectified before sending the return.

Direct Deposit

Choosing the direct deposit option ensures your refund is deposited directly into your bank account. You won’t have to worry about having a refund check lost or stolen from your mailbox. It’s a common problem around tax time and once a paper check is gone, there’s no way to retrieve it. If you use one of the many cash apps available, you can also have your refund deposited into your cash app account.

Money and Deadlines

Depending on the taxpayer, some individuals can complete and e-file their taxes for free. Shop around to find the best option. Many companies advertise low-cost tax preparation and e-filing, but individuals only find out upon completion that they owe nearly as much as if they’d taken their taxes to a tax professional.

If you’re among the millions of people that procrastinate on their taxes, e-filing is an excellent way to ensure you beat filing deadlines and avoid penalties. You’ll still be able to receive your tax refund in 3 weeks or less.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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Nobody is perfect and mistakes happen, even on tax returns. Individuals may discover they didn’t claim all the credits or deductions for which they were eligible, forgot to claim income, or just made an error in addition or subtraction. Sometimes employers issue a corrected W2, which means the amounts used to file taxes are incorrect. All of those situations are good reasons to file an amended tax return.

Paper Copies

Don’t start over and try filing an entirely new tax return. The bad news is that individuals can’t e-file an amended return – it has to be a paper copy that’s mailed to the IRS. Individuals will also need to amend their state return. It’s best to seek the assistance of a tax professional for an amended tax return or if a superseding return is an option.

Time Limit

People that file an amended tax form must do so within 3 years from the date they filed the original return, or within 2 years from the date any tax was due – whichever is later. It can take up to 16 weeks for the IRS to process an amended return.

Additional Forms

It will also require filing additional IRS forms. A tax professional will know which IRS forms are applicable, based on the client’s particular situation. There are some special due dates that apply in the event of a natural disaster, service or injury in a combat one foreign tax credits, bad debts, and net operating losses.

The IRS will often catch simple errors and correct them. If a balance is owed due to the error or mistake, the IRS will send the taxpayer a letter indicating the nature of the problem and how much is owed.

Amended Returns & Audits

When filing an amended tax return, individuals can’t pick and choose the items to change or those that will obtain a bigger refund. Changes affect the entire return. Taxpayers should be aware that there’s a greater chance of being audited if they file an amended return.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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Amidst the hustle and bustle of the holiday season, many forward-looking individuals are already thinking about their tax return. Even though federal tax returns are due on April 15, there are a variety of legitimate reasons why individuals may want to file for an extension on their taxes. For those that file an extension, be aware that the deadline for paying their taxes is Oct. 15.

Incomplete Documentation

The IRS requires documentation of all earnings and individuals may not have it. They may have lost their W2 from an employer and be waiting for a copy or the documentation. Though it doesn’t happen often, forms may be lost in the mail. It’s far better to file for an extension and wait for the W2 or other forms. It’s not uncommon for documents such as Form 1099 or Schedule K-1 to be late.

Life Events

Natural disasters, a death in the family, or severe illness are also reasons for filing an extension. Filing taxes is something that requires an individual’s full attention and any of those situations are distractions that aren’t conducive to filing tax returns.

Tax Savings

In some instances, an extension can be a strategic money-saving decision for converting an IRA. Taxpayers can perform a Roth IRA conversion, and while they’ll still have to pay taxes on it, the advantage is that individuals can take tax-free deductions from the IRA in the future. Filing an extension makes good business sense.

Procrastinators

A number of individuals simply run out of time to file due to procrastination. The IRS won’t ask individuals to supply a reason for late filing, but for those that insist on waiting until the last moment, an extension does give them some breathing room.

Fees and Penalties

Even if a taxpayer files an extension on their taxes and doesn’t file by the extension deadline, they’ll still be subject to fees and penalties. The IRS will charge 1½ percent for each month the taxes aren’t paid after the filing deadline has passed. For those that don’t file a return at all by the extension date, the penalty increases to 5 percent per month and can reach a maximum of 25 percent.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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