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 1099 earnings statement sent by an employer or business.
Copies of those forms are sent to the IRS where they are loaded into computers and held. 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.
But let’s talk about the copies 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 the match game that decides if your tax return and refund will sail through, or if you will get a letter and a bill from the IRS or even an audit notice.
January 31, 2022, is the deadline for businesses to send out those tax forms but in some cases, businesses can get an extension for sending them out.
Once they arrive the tax season officially starts.
It’s also the start of the IRS fraud and fraud detection season. Those computer files verify refund claims also. Fraud has become a big problem but these computer records can stop it.
January 31st is coming. Get ready.
Disclaimer: Alan Mendelson is a well-known TV consumer news reporter who reports on tax issues. You should seek professional advice if you have tax questions or issues.