That's a great point! I don't think I saved my last paystub, but now I'm going to check my email to see if they sent electronic copies. I vaguely remember getting emails when a new paystub was available, but I usually just checked the deposit amount. If I can find that last one from December it would solve everything! Thanks for the suggestion!

Happy to help! Even if you can't find the December one, any paystub from late in your employment might be useful since it would have the year-to-date totals up to that point. You could then estimate the additional earnings for your remaining time there. And don't forget to check your spam folder - payroll emails often end up there.

I had to use Form 4852 two years ago and had zero issues. The IRS actually processes these pretty routinely. As long as your estimates are reasonable and you document your attempts to get the W2, you should be fine. My refund wasn't delayed at all. The employers are the ones who typically get in trouble, not you.

Good point! I got hit with a penalty last year because I didn't realize this. Is there any kind of safe harbor rule that helps avoid the penalty even if you owe a lot?

Thanks for sharing your experience! How long did the whole process take from filing to discharge? And if you don't mind sharing, were you able to get all of your tax debt discharged or just a portion?

The entire process took about 9 months from filing to discharge, which is longer than typical bankruptcies. The tax components definitely slow things down because the IRS reviews everything carefully. I was able to get about 80% of my tax debt discharged. The remaining 20% wasn't dischargeable because those taxes were from a year where I filed late and hadn't yet hit the 2-year mark from filing date. I ended up on a payment plan for that portion, but having 80% wiped out made that manageable.

This is so true. I went through tax bankruptcy last year and the emotional side was the hardest part. Did you find that lenders were especially harsh because it was tax debt rather than credit cards or medical bills? I've been struggling to rebuild my credit because it seems like lenders see tax bankruptcy as a bigger red flag.

What happens if you can't find documentation of the exact value on date of death? My dad left me some stocks but passed away during COVID and everything's a mess with paperwork.

If you can't find the documentation, you can try to reconstruct it. You'll need to determine the date of death and then research what the stock was trading for on that day - most financial websites have historical price data. Get the closing price on that date and multiply by the number of shares. If it was a significant inheritance, the estate may have filed an estate tax return (Form 706) which would have the valuation. You can request a copy from the IRS with Form 4506. Another option is to contact the broker who handled the account - they often have historical valuations on record.

That's actually a good point. I was holding onto some Lehman Brothers shares after they went bankrupt thinking they might bounce back, but in the end I would have been better off just taking the tax loss. The shares did briefly spike to about 20 cents though.

I tried using the IRS site but got super confused. Is there a specific tutorial you followed to figure it out?

The IRS site is definitely not the most user-friendly, I'll admit. I found their tutorial in Publication 1220, but it's pretty technical. Here's what worked for me: create an account first, then go to the "Filing Information Returns Electronically" (FIRE) section. For simpler guidance, I actually ended up watching a YouTube tutorial someone made that walked through the process step by step. Just search "how to file 1099-NEC on IRS FIRE system" and you'll find several helpful videos that are much clearer than the official instructions.

Did you also e-file with the IRS or just mail the paper form? I'm trying to figure out the easiest way.