Tax Question?

Factual Questions
1

Okay, it’s coming up on the end of the year, and I was wondering if anyone knows the answers here…

  1. I worked for two different companies this year. One from January to mid-August, the other from September to December. I’m not worried about the second one. First company has filed for Chapter 11. Will I still get a W-2? If not, what do I do?

  2. Rumor has it that the company was not paying payroll tax. (To the tune of now owing a million to the IRS.) If my witholding was never actually paid to the IRS, am I in trouble?

Thanks.

2
  1. They should send you a W-2. I believe that they have until January 31 to send it out to you, so after that you should inquire.

One thing I might do is check your pay stubs and see if they paid you directly or used a payroll processing company like ADP. If they used a processor, you will most likely get a W-2 directly, and the processor may be able to help you if you do not receive it.

The IRS also has a FAQ on what to do if you don’t get your W-2 (http://www.irs.gov/tax_edu/teletax/tc154.html). Their website is pretty good with tax questions.

  1. If they collected withholding but did not submit it to the government, they will be in BIG trouble. However, you shouldn’t worry about being penalized, unless you were a company executive or payroll manager. I don’t know, however, whether you would be responsible for the withholding they should have paid to the government but didn’t. I didn’t see this infor on a quick scan of their website, but you can call the IRS at 1-800-529-1040 if you don’t find it.

Bill

3

  1. You should still get a W-2. The company is supposed to send them out, even if they are kaput. They have until January 31, though the IRS doesn’t enforce this deadline with any great rigor (I once complained to them when I hadn’t recieved my W-2 on Feburary 1, and they just said, wait another two weeks). If they don’t send a W-2, you probably should contact a tax accountant about what you need to do.

  2. You are not crimally liable for your company not withholding your tax. However, you may be required to pay the amount of tax you owe from the income you earned from that company. So your tax bill can get pretty high.

If you don’t get the W-2, you are going to need expert help. If you do get it, things should be pretty routine.