You might remember a post I made back in August where I talked about my wife’s employer and their incompetent payroll department. Fast forward six months after their finance director resigned and several audits were completed…
We are getting W2-C’s for 2020, 2021, and 2022. I don’t yet have numbers for 2022, but for the other two years, there is a slight increase in income. About $260 for 2020 and $145 in income for 2021. I had originally thought it might be higher, but additional errors were made that reduced our taxable income.
With our marginal tax rates, I expect the ballpark of tax due for those two to be about $90 in 2020 and $50 in 2021.
Now my questions:
- Does the IRS care about such small amounts of tax due? Is there any safe harbor for small errors like this?
- Do I bother filling out 1040X’es for these years, or do I wait for a possible CP-2000/bill from the IRS? Filing the amended return costs money (unless I file on paper… and that tends to get lost in the ether for months) so I’d rather wait for the bill.
- My understanding is that the drop dead date for amended returns is 3 years after the filing date, which is pushed to the deadline if you file early. That would be April of 2024 for tax year 2020. Seems like I should just wait and see if the IRS cares to go after us for $90 regardless of what I do in the other two years?