My 6yr. employer was shut down yesterday by IRS. They failed to pay my withheld taxes. Am I now liable?

Question

For 6 years every paycheck has reflected where the employer deducted all of my taxes. Turns out that only the state (NC) is the only one who got their money. The IRS seized everything--now I am due 2 weeks pay and am out of a job. Will the IRS make me pay these taxes? They were deducted from my gross wages and it will stink if I have to pay them (paying them twice) Any advice will be appreciated.

Answer 1

You won't be responsible.  Since you might not get a W-2 at the end of the year, keep your paystubs, in particular your very last one.  You can use it to complete a substitute W-2, including why you don't have your W-2.  Here's a link to the form.  When you file this year don't file electronically so you can mail the form in with your return.

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

If you don't get your 2 weeks pay after a reasonable period of time, contact wage & hour:

http://www.dol.gov/esa/whd/

Answer 2

Hang onto any pay stubs that you have.  If you can show taxes were deducted (and you don't have to prove every one) then you'll be OK, will get credit for them.  Your employer, however, is in deep sh&t!

As far as getting the two weeks pay you are owed, chances aren't real good.  But good luck.

Answer 3

No, the employer has to pay, they took them out so basically they stole from you and the feds.

Answer 4

No.

The IRS will try and collect the taxes from the officers of the company.