Filing Taxes: Addressing Incorrect or Missing Documents

Understand the Importance of Accurate Documents

Accurate documentation is crucial when filing taxes. Incorrect or missing documents can delay your filing and may lead to audits or penalties. According to the IRS, nearly 1 in 5 taxpayers find discrepancies in their tax documents each year. This statistic highlights the need for thorough checks.

Proper documentation also helps you take advantage of all eligible deductions and credits. For instance, self-employed individuals can deduct up to 20% of their qualified business income. However, this is only possible with the right documentation to support these claims. The more organized you are, the smoother your filing process will be. File with TurboTax! Every deduction found. Every dollar you deserve. Start today.

Identify the Incorrect or Missing Documents

The first step in resolving document issues is to pinpoint what is wrong. Here are some actions to follow:

• Review Tax Documents: Check all received documentation, such as W-2s, 1099s, receipts, and bank statements. Create a checklist to confirm you have everything needed.

  
  

• Look for Common Missing Documents: Commonly overlooked items can include:

- W-2 forms from employers, which 85% of wage earners receive.

- 1099 forms for freelance work or investment income, which 10% of workers might require annually.

- Proof of deductible expenses, such as receipts for medical or business expenses.

Taxpayers should ensure they have all their documents ready before filing a federal tax return. Those who haven't received a W-2 or Form 1099 should contact the employer, payer, or issuing agency to request the missing or corrected documents.

If a taxpayer doesn't receive the missing or corrected form in time to file their tax return, they can estimate the wages or payments made and any taxes withheld. To avoid filing an incomplete return, they may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.

If they receive the missing or corrected Form W-2 or Form 1099-R after filing their tax return and the information differs from their previous estimate, they must file Form 1040-X, Amended U.S. Individual Income Tax Return.

If you find any missing items, contact the relevant parties as soon as possible.

A close-up view of a tax form with a note indicating missing documents.

Communicate with Relevant Parties

Most taxpayers should have received their documents by Jan. 31. These may include:

• Form W-2, Wage and Tax Statement

• Form 1099-MISC, Miscellaneous Income

• Form 1099-INT, Interest Income

• Form 1099-NEC, Nonemployee Compensation

• Form 1099-G, Certain Government Payments, like unemployment compensation or state tax refund

• Letter 6419, 2021 Total Advance Child Tax Credit Payments

• Letter 6475, Your 2021 Economic Impact Payment

  
  

Once you identify missing documents, reach out to the necessary parties for resolution.

• Employers and Clients: If you are missing W-2 or 1099 forms, contact your employer or clients. They are required to provide you with these documents. For instance, companies must send W-2 forms by January 31 each year.

  
  

• Financial Institutions: For bank statements or investment records, reach out to your bank or investment firm. Often, you can access these documents online or request a reissue.

  
  

• Tax Professionals: If you work with a tax preparer, keep them updated on any missing items. They can assist you with additional strategies to obtain the needed documentation.

  
  

Gather Substitute Documentation

If you received an incorrect Form 1099-G for unemployment benefits, taxpayers must report unemployment compensation on their tax return as it is taxable income.

Taxpayers who receive an inaccurate Form 1099-G should contact the issuing state agency to request a revised Form 1099-G showing their correct benefits. If taxpayers cannot get a timely, corrected form from states, they should still file an accurate tax return, reporting only the income they did receive.

If the taxpayer didn’t receive unemployment benefits but received a Form 1099-G for unemployment compensation, this may be a sign that the taxpayer’s identity was stolen.

If some documents remain unreachable, filing with alternative information may be necessary.

• Bank Statements: Use bank statements as proof of income and expenses. Though not as strong as W-2s, they can serve as a backup in your tax filing.

  
  

• Previous Year’s Tax Return: Your tax return from the previous year can help verify income levels and tax responsibilities.

  
  

• Estimations: In scenarios where income documents are missing, estimates might be necessary. Just keep detailed records to support these estimates in case of an audit.

  
  

Complete the Tax Return With Available Information

Now that you have either corrected or substitute documents, it's time to complete your tax return. Real experts can help or even do your taxes for you. Backed by their 100% Accurate, Expert Approved Guarantee. Get started with TurboTax today.

• Form Selection: Choose the appropriate tax forms based on your situation, whether you file as an individual or as a business.

  
  

• Accuracy is Key: Always double-check your information to avoid complications. Ensure that income figures, deductions, and credits all match up with the documentation you possess.

  
  

• Attach an Explanatory Statement: If you had to estimate any figures or provide documents that do not meet standard requirements, include a brief statement clarifying the discrepancies with your tax return.

  
  

An eye-level view of organized tax forms on a wooden desk, ready for filing.

Submit Your Tax Return

File for free with TurboTax Free Edition. ~37% of taxpayers qualify. Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit, and Student Loan Interest).

After completing your tax return, consider the following before submission:

• File on Time: Avoid last-minute filing. Late submissions can result in penalties. In past years, nearly 15 million taxpayers faced late fees totaling billions of dollars.

  
  

• Choose Your Filing Method: You can opt to file electronically or by mail. E-filing is generally faster and may speed up your refund process—up to 21 days after acceptance by the IRS.

  
  

• Get Confirmation: If you e-file, ensure you receive a confirmation email stating your return was successfully submitted. If you mail your return, consider using certified mail to keep track of the submission.

  
  

Maintain Records for Future Reference

After filing, it’s vital to keep your organized records secure for future audits or reviews.

• Store Documents Safely: Keep both originals and copies of your tax return in a secure location. A locked file cabinet or a document management system can work well.

  
  

• Create Digital Backups: Scanning and making digital copies of all vital documents makes access easier in the future.

  
  

• Conduct a Yearly Review: At the end of each tax year, review your records and promptly address any gaps. This proactive strategy can significantly reduce stress for the next tax filing season.

  
  

Wrapping It Up

Filing your taxes with incorrect or missing documents can feel overwhelming, but a methodical approach makes it manageable. By identifying missing paperwork, fostering communication with the right individuals, and being diligent in completing your tax return, you can lessen the stress involved.

Timely action and proper record-keeping not only facilitate compliance but also maximize your deductions. Stay organized, maintain thorough records, and don’t hesitate to reach out for professional help if needed. Tax deadline is April 15. TurboTax's experts can help with your taxes or do them for you as soon as today. Get started. Happy filing!

A high angle view of a neat workspace with tax preparation materials neatly organized.