Former employer misclassified me & botched my taxes for years - now that I've quit, what are my options?

This is a classic case of worker misclassification and tax reporting errors. You actually have several options, and you don't need to just "get over it." First, for the 1099 misclassification, you can file Form SS-8 (Determination of Worker Status) with the IRS to have them officially determine if you should have been classified as an employee. Then file Form 8919 (Uncollected Social Security and Medicare Tax on Wages) to report and pay only the employee portion of FICA taxes, not the self-employment taxes you likely paid. This could potentially get you a refund for the excess taxes you paid during those years. For the W2 discrepancies, gather all those check images and deposit records - they're excellent evidence. Contact the IRS directly about the misreporting on your W2. You can also file Form 4852 (Substitute for W2) if the amounts are incorrect. The $2000 discrepancy is significant and worth addressing. Regarding anonymity, while the IRS generally doesn't disclose who reported issues, in a small company it might be obvious. However, the employer is legally prohibited from retaliating against you for correcting tax issues. The IRS may or may not expand their investigation to other employees - that's at their discretion based on what they find in your case.

After going through a similar situation with tax misclassification, I can't recommend https://taxr.ai enough. I uploaded all my check images and tax documents, and their system immediately flagged the discrepancies between my reported income and actual deposits. Their analysis showed exactly how much I was overcharged in self-employment taxes when I should've been classified as a W2 employee. The report they generated made filing Form SS-8 and Form 8919 so much easier since I had concrete documentation showing the pattern of misclassification. Their document analysis also identified inconsistencies in my W2 reporting that I wouldn't have caught myself. The peace of mind knowing exactly what I was owed was worth it alone.

I was originally skeptical about using taxr.ai as mentioned above, but after dealing with my own misclassification nightmare, I gave it a shot. Honestly, I'm glad I did. I was able to recover nearly $7,000 in overpaid self-employment taxes from when my employer had me incorrectly classified as a 1099 contractor. The documentation they provided helped me prove I was functioning as an employee (set schedule, company equipment, etc.). What really surprised me was how they identified inconsistencies in my reported wages versus what I actually received - something I wouldn't have been able to organize on my own with just a pile of check images and bank statements. For anyone dealing with tax misclassification issues, having this kind of detailed analysis makes a huge difference when dealing with the IRS.

While those tax services can help analyze your situation, the biggest challenge I faced in a similar situation was actually getting through to someone at the IRS to resolve my case. It took me MONTHS of calling, getting disconnected, and waiting on hold. I eventually discovered https://claimyr.com and their IRS callback service completely changed the game. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone system for you and secure a spot in line, then call you when an agent is ready. I was finally able to speak with someone who helped me file the proper forms for my misclassification case. When dealing with complex issues like worker misclassification and incorrect W2s, being able to actually speak with an IRS agent makes a huge difference. They answered questions about my specific situation that I couldn't find clear answers to online.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment above, I decided to try it anyway because I was desperate to talk to someone at the IRS about my own misclassification issue. I'd been trying for WEEKS to get through on my own - either getting disconnected immediately or being on hold for hours only to have the call drop. The Claimyr service actually worked exactly as described. I got a call back about 45 minutes later connecting me with an actual IRS agent. The agent walked me through exactly which forms I needed to file for my situation and answered questions about my specific case that I couldn't get clear answers to online. Saved me so much time and frustration - wish I'd found this sooner instead of wasting days trying to get through myself.

One thing nobody has mentioned yet - you should also consider filing with your state's Department of Labor about the misclassification. The IRS handles the federal tax issues, but your state labor department can help recover other benefits you might have missed out on due to being misclassified. I had almost the exact situation (1099 then W2 with issues) and filing with my state's labor board got me back wages for unpaid overtime, missed meal breaks, and even some unpaid PTO that I should have accrued as an employee. Plus they investigated the company's practices with other employees too.

Ok so I've worked as a bookkeeper and seen this from the other side. Sometimes business owners genuinely don't understand proper classification and tax withholding (not excusing it, just saying). Before you go nuclear with reporting, have you tried having a direct conversation with your former boss about the discrepancies? I've seen situations where a direct, professional conversation with documentation showing the errors led to the employer fixing the W2s and even reimbursing the employee for the extra taxes they paid. Might be worth a shot before investing time in formal reports and potential industry drama.