Don't forget about your state tax return too! You'll need to file a similar substitute form for your state taxes in most cases. Each state has their own version of the federal substitute W-2 form. Just google "[your state] substitute W-2" to find it.

Make sure you also report this guy to your state's labor department! Even though the business is closed, he might still face penalties for wage theft and improper payroll practices. Those agencies can sometimes go after personal assets if the violations were bad enough. Might get some justice for all of you who worked there.

Have they looked into the IRS Fresh Start Program? My brother had a significant tax debt (about $85k) after his construction business failed, and he was able to get substantial relief through this program. The Fresh Start Program has several components that might help your parents: - Increased dollar threshold for filing tax liens - Easier access to Installment Agreements - More flexible Offer in Compromise terms - Tax lien withdrawals after payment arrangements The key is providing thorough documentation of their financial situation, medical expenses, and limited ability to pay. My brother was ultimately able to settle his $85k debt for about $32k through an Offer in Compromise.

Don't forget about potential state-level tax relief programs! When I was dealing with federal and state tax issues after a business failure, I found that my state had hardship provisions that were actually more generous than the IRS options. Depending on what state your parents live in, they might qualify for: - State tax forgiveness programs - Hardship status at the state level - Special provisions for farmers/agricultural businesses - Senior tax relief programs (if they're close to retirement age) Also, check if your state has a Taxpayer Advocate Service similar to the federal one. These advocates can sometimes help navigate both systems simultaneously and coordinate relief efforts.

I had this exact situation last year. Here's what happened: my 401k administrator returned excess contributions with code E, and then the IRS computer system automatically flagged it as taxable because many code E distributions ARE partially taxable (if there were earnings on the excess contributions). The key is, like others mentioned, that your Box 1 and Box 5 are identical, proving these were 100% after-tax contributions with no earnings. Don't just pay the extra tax - this is worth fighting!

Has anyone had success resolving this by calling the phone number on the IRS notice rather than writing? My dad has the same issue with his 401k distribution but he's not good with written explanations.

Your boss is committing tax fraud, plain and simple. I worked as a bookkeeper for years and this is a classic case of an employer trying to manipulate payroll taxes. Here's what's likely happening: 1. He's probably not paying the full employer portion of your FICA taxes 2. By inflating your hours, he's making it look like he's paying you more, which could help him with business expense deductions 3. The lack of pay stubs is a huge red flag - it's his way of hiding the actual numbers Document everything now. Write down all the days you worked, hours, and cash payments received. Save any text messages or emails about your schedule or pay. Request your wage and income transcripts from the IRS for the past three years. This isn't just about the 47 hours - this could have been happening your entire employment. You might have been getting shortchanged for years.

Another red flag - the $18/hr you mentioned means 450 hours should be $8,100 gross, not $6,753. Even with taxes taken out, something doesn't add up. Either your hourly rate isn't what you think it is, or there's even more funny business happening with your pay. If I were you, I'd start looking for another job ASAP while gathering evidence. This employer has been taking advantage of you for YEARS. Small business or not, family-owned or not, this is unacceptable and illegal.

I just wanna point out that if your employer is failing to provide your W-2, you should report them to the IRS using Form 4852. There's literally a box on the form where you indicate whether you've attempted to obtain your W-2 from your employer. Employers are required BY LAW to provide W-2s by January 31st, and they can face penalties for not doing so. Some crappy employers try to avoid sending W-2s to avoid payroll taxes. Dunno if that's happening in your case but thought you should know.

Pro tip from someone who's been doing taxes for years - when you file with Form 4852, KEEP A COPY of everything. If your employer eventually sends a W-2 that doesn't match your estimates (even if it arrives after you've filed), you'll need to file an amended return with Form 1040X. If the differences are small, you might not need to amend, but if there's a significant difference in income or withholding, the IRS will eventually notice the discrepancy when they match documents.