Long story short:
1) Got a sign-on bonus in 2020 to a company
2) Paid back the (pro-rated) sign on bonus in 2021 given I left the company early
3) Company told me they will be issuing me a W2C for 2020. They are super confident that this is the right route even if payback was in subsequent year.
I have been told by advisors on this forum and a local CPA that my company is not allowed to alter 2020 W2 given the payback was in 2021.
If so, if company does issue me the W2C which (inadvertently) breaks some payroll/tax rules, what is my obligation? Do I merely match what they told IRS via the W2C, by filing an amendment and not worry about the proceedings of my company? Or should I be concerned that the W2C potentially should not have been issued to begin with? How far does my responsibility extend? I cannot tell my company not to issue a W2C. I do not want to get in trouble with IRS - not filing an amendment vs filing with a potentially invalid W2C both seems troublesome.
