Yesterday, I posted the news that Michael Costa of The Office Grill filed for bankruptcy. In the comments section, one of Costa’s former employees asked a great question.
Anybody have some suggestions for the former employees when it comes tax time? We never received check stubs or info on the taxes taken out of them, that is when we did get them and they didn’t bounce.
I contacted Gregory P. Williams, a CPA with Restaurant CFO Partners in Plano. He has a lot of answers. They are below. I’ve also included his contact information if you have more questions.
Good question! Below are the official IRS procedures to follow in this situation. Even in bankruptcy, employers generally send out W-2’s. If this is not the case in this situation, then I anticipate that the employee will have to follow procedures 2 & 3 and estimate their earnings.
If you haven’t received your W-2, follow these four steps:
1. Contact your employer -If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.
2. Contact the IRS – If you do not receive your W-2 by February 14th, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, city and state, including zip code, Social Security number, phone number and have the following information:
• Employer’s name, address, city and state, including zip code and phone number
• Dates of employment
• An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2010. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.
3. File your return – You still must file your tax return or request an extension to file April 16, 2012, even if you do not receive your Form W-2. If you have not received your Form W-2 by the due date, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.
4. File a Form 1040X – On occasion, you may receive your missing W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.
Gregory P. Williams
Restaurant CFO Partners
701 E. 15th Street
Plano, TX 75074