Employer Didn't Report My Wages to IRS - Now Under 60 Day Review

This is a wage verification issue that falls under the Income Document Matching Program (IDMP). When there's a discrepancy between taxpayer-reported income and IRS income records, they initiate a review process under Internal Revenue Manual section 4.19.3. You're dealing with what's technically called a "missing income document" case rather than an income mismatch. The employer failed to file Form W-2 with the Social Security Administration, which then doesn't get transmitted to the IRS database. The standard procedure is: 1. IRS places a 60-day hold (TC 570) on your account 2. They attempt to verify the income through employer contacts 3. If unresolved, they may request documentation from you (Form 4506-T) 4. Once verified, they'll release the hold with TC 571

Been there last year with a small company that went out of business after giving me my W-2 but before filing with the SSA. It was a nightmare until I found https://taxr.ai to analyze my transcript. The tool identified the exact hold codes and explained what was happening with my review. In my case, I could see the 570 code (which means they're holding your refund) and a 971 notice code. The taxr.ai analysis explained that this pattern typically means they're investigating a wage discrepancy. Saved me hours of trying to decipher what was happening, and I knew exactly what documentation to have ready when they finally contacted me.

The IRS wage verification process is like being stuck in traffic with no GPS - you know you'll eventually get there, but nobody can tell you exactly when. My experience: it took 97 days to resolve a similar issue last year. The key is to be proactive. Don't just wait for them to figure it out. Call the employer and ask them to submit a corrected W-2 to the SSA immediately. Get confirmation when they do it. Then call the IRS and tell them the employer has corrected the issue. This sometimes speeds up the process. Also, keep a copy of everything - your W-2, pay stubs, any communication with the employer about the correction. The IRS might eventually ask for this documentation.

When I had this exact problem, waiting for the IRS to resolve it on their own timeline was excruciating. After 45 days of nothing, I used Claimyr (https://www.claimyr.com) to actually reach a live IRS agent instead of dealing with the endless busy signals. The agent was able to verify they had received my documentation and expedite the review process. Without being able to speak directly with someone knowledgeable about my case, I'm convinced my review would have taken months longer. The technical term for what you're experiencing is a "Form W-2/W-3 reconciliation discrepancy" if you need to reference it when you call.

Have you contacted your employer about this issue? Sometimes the fastest resolution is getting them to file the missing information. A few practical steps you might consider: 1. Contact your employer's payroll department directly 2. Ask them to file a corrected W-2 (W-2c) with the SSA 3. Get written confirmation when they've done this 4. Provide this confirmation to the IRS Do you have all your pay stubs from this employer? Those can be helpful evidence if needed.

I went through this EXACT situation last month! Here's exactly what I did step-by-step: 1. First, I called my employer's HR department immediately and explained the situation 2. They confirmed they hadn't submitted my W-2 properly to the SSA 3. I asked them to file a corrected W-2 ASAP and got the name of the person handling it 4. Then I gathered all my pay stubs and made copies of my W-2 5. I called the IRS (took forever to get through) and explained the situation 6. They told me to mail in copies of my pay stubs and W-2 to the address on my notice 7. I sent everything certified mail on March 2nd 8. My transcript updated on April 11th showing they accepted my documentation 9. Got my refund on April 14th Don't wait for them to figure it out - you have to be proactive! My 60-day review was going to take "much longer" too until I took these steps!

You might want to consider filing Form 4852 (Substitute for Form W-2) if your employer is unresponsive or unable to correct the issue. This form essentially allows you to provide the IRS with the correct wage information when your employer hasn't properly reported it. In most cases, though not all, the IRS will eventually resolve this through their automated systems once the employer files the correct information. However, it's generally beneficial, if somewhat time-consuming, to be proactive rather than waiting for the automated processes to complete. Also, you may qualify for taxpayer advocate assistance if this delay is causing significant financial hardship. They can sometimes expedite resolution in cases where standard processes are taking too long.