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andyd2021
Level 1

Startup withheld taxes from my paychecks, but didn't pay the IRS...

I worked for a tech startup in 2020 who paid me as if they were withholding taxes -- ie. my paychecks were ~60% of my salary -- but in when I asked for a 2020 W2, they revealed they hadn't been paying the IRS at all. They said I needed to file a form with the IRS, and that they'd be forced to pay fines.  .

 

When I called TurboTax, they told me to file an SS-8, which I did. The IRS however rejected my taxes, saying an SS-8 wasn't appropriate, and I should call IRS Customer Service at [phone number removed] for further guidance.  I haven't been able to find a non-dead-end in the IRS Customer Service line.

 

The startup has since folded. Any recommendations on how I can resolve this issue?

1 Best answer

Accepted Solutions
Mike9241
Level 15

Startup withheld taxes from my paychecks, but didn't pay the IRS...

Turbotax gave you a dumb answer. an ss-8 is used by the IRS to determine if you are an employee or independent contractor.   if you were an employee you should have gotten a form w-2 from the company. since they didn't give you one the form to file with your return was Form 4852. 

this may still cause problems since the IRS wants you to first call them so they can contact the employer

from form 4852

You must take the following steps before filing Form 4852
• Attempt to get your Form W-2, Form W-2c, or Form 1099-R (original or corrected) from your employer or payer before contacting the IRS or filing Form 4852. You did this by contacting them and ask for your tax form.
• If you don’t receive the missing or corrected form from your employer or payer by the end of February, you may call the IRS at 800-829-1040 for assistance. You must provide your name, address (including ZIP code), phone number, social security number, and dates of employment. You must also provide your employer’s or payer’s name, address (including ZIP code), and phone number. The IRS will contact your employer or payer and request the missing form. The IRS will also send you a Form 4852. If you don’t receive the missing form in
sufficient time to file your income tax return timely, you may use the Form 4852 that the IRS sent you to file with your return.

https://www.irs.gov/pub/irs-pdf/f4852.pdf 

 

i suggest you mail in your return and attach a statement with as much info as you can provide about your employer and the fact they are now out of business. sign and date the statement.  include something like the name of the person you talked to and that they informed you that the company did not file its payroll tax returns including w-2's. include your dates of employment.

 

good luck

 

 

View solution in original post

1 Reply
Mike9241
Level 15

Startup withheld taxes from my paychecks, but didn't pay the IRS...

Turbotax gave you a dumb answer. an ss-8 is used by the IRS to determine if you are an employee or independent contractor.   if you were an employee you should have gotten a form w-2 from the company. since they didn't give you one the form to file with your return was Form 4852. 

this may still cause problems since the IRS wants you to first call them so they can contact the employer

from form 4852

You must take the following steps before filing Form 4852
• Attempt to get your Form W-2, Form W-2c, or Form 1099-R (original or corrected) from your employer or payer before contacting the IRS or filing Form 4852. You did this by contacting them and ask for your tax form.
• If you don’t receive the missing or corrected form from your employer or payer by the end of February, you may call the IRS at 800-829-1040 for assistance. You must provide your name, address (including ZIP code), phone number, social security number, and dates of employment. You must also provide your employer’s or payer’s name, address (including ZIP code), and phone number. The IRS will contact your employer or payer and request the missing form. The IRS will also send you a Form 4852. If you don’t receive the missing form in
sufficient time to file your income tax return timely, you may use the Form 4852 that the IRS sent you to file with your return.

https://www.irs.gov/pub/irs-pdf/f4852.pdf 

 

i suggest you mail in your return and attach a statement with as much info as you can provide about your employer and the fact they are now out of business. sign and date the statement.  include something like the name of the person you talked to and that they informed you that the company did not file its payroll tax returns including w-2's. include your dates of employment.

 

good luck

 

 

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