Employer bankruptcy, no W2...?

Question

A friend of mine's former employer filed for bankruptcy last year, chapter 15 I believe. She hasn't recieved a W2 from them, and I was curious about her tax liabilities in a case like this. The employer was witholding taxes, but apparently not as much as they should have because she was not claiming her daughters as dependents. If she owes, how much is it, and how can she figure it out?

Answer 1

If by Jan 31st you have not received your W2, call the employer and ask them if they have been sent. If by Feb 15th you have not received it, call the Internal Revenue Service at 1-800-829-1040 and file a W2 complaint. They wil take a report and send you a form that you can use as a subsitute, you will need your last paycheck stub when you call, along with the name, address and phone# of the employer and what dates you worked for them
If you call the IRS right now they will tell you to call back on the 15th
The IRS will advise you of the steps to take in compiling a substitue W2

Answer 2

First off, W2s aren't quite due yet. It may still be forthcoming. If the firm is in bankruptcy, someone is responsible for the books and winding things up.

If the firm withheld but did not property deposit their payroll taxes, the employee is still credited with them as if they had been deposited. Her tax liability will be as if nothing had happened. If she was not claiming withholding exemptions for her children it's far more likely that TOO MUCH tax was withheld, not too little.

If the firm has gone insolvent and nobody (corporate officer, bookkeeper, etc.) is handling things and a W2 is not forthcoming she'll need to contact the IRS. They will assist in re-constructing a W2 that she can use to file her return.

In the interim, she can probably make a good estimate of her tax situation by preparing her tax return using the last pay stub she received for the year.

Answer 3

She can probably calculate earnings and taxes withheld from her last paycheck stub. Gross earnings less any pretax deductions (such as IRA contributions) is taxable income.

Even if the employer filed bankruptcy or shut down for good, they are still required to file final tax returns and W-2's. If they are still in business, she should call them to find out where her form was mailed to.