@babyviolin2005
Do you have any proof at this point that you quit in 2014? Think broadly. Besides any emails you might’ve saved, or other termination paperwork, maybe you had direct deposit. Can you get bank records from 2014 and 2015 showing that the direct deposit stopped? Can you show that you started work with a new company at the end of 2014 or in 2015? Can you get copies of your medical records, hospital bills, insurance explanation of benefits, and other paperwork that would show you had significant medical concerns and could not have been working?
Additionally, there is something very strange about this notice, because normally the IRS only has three years to contest a tax return. If you filed a tax return for 2015 on time (before April 15, 2016), the IRS deadline to issue the CP 2000 notice would have been April 15, 2019. If you never filed a 2015 tax return – possibly you were not working – then that clock never started, but it is still strange. Do you know if the W-2 was filed on time in January 2016, or was it just filed recently when the company closed? Do you have any witnesses who can attest to the fact that you stop working for that company in 2014?
Unfortunately, a consultation with an enrolled agent (a tax accountant who specializes in practicing before the IRS) could cost a significant portion of the tax you are trying to avoid. If you want to go alone, you need to send a response to the IRS within the timeframe indicated in the letter to preserve all of your rights. I would start by sending a letter with a comprehensive explanation that asserts that you don’t know the tax for two reasons, one.the expiration of the statute of limitations, and to.that you never received this income. Explain the circumstances of your separation from the company, including copies of emails and any other proof. Include copies of bank records showing that your pay from that company stopped. Include a summary of your medical issues including the dates and length of your hospital stay. Point out that the W-2 is for exactly the same dollar amount which is highly unlikely for what sounds like a part-time job with variable shifts.
You should also send a registered letter to the new owners of the company and the old owners of the company if you know where they are, explaining that you that the IRS received a duplicate W-2 and that you will hold them financially responsible for any taxes and penalties caused by this false information. Demand that they prove you worked and were paid in 2015.
Be creative, think outside the box, and do everything you can to establish that you were not working for them in 2015.
