Need help with state tax audit for 2016 - employer won't provide W-2 copy and ignoring my requests - what options do I have?

Thank you so much for these options! I had no idea I could get a free Wage and Income Transcript from the IRS. Would this transcript show all the same information as the original W-2? The auditor was pretty specific about needing the W-2 itself. Also, how long does it typically take to get this transcript if I request it online? My deadline with the state is in about 3 weeks.

The Wage and Income Transcript contains all the same tax information that appears on your W-2 - it shows all your reported income, withholdings, Social Security and Medicare wages. State auditors typically accept these transcripts in place of the actual W-2 form because they contain the identical information reported to the IRS. If you request the transcript online and can pass the identity verification, you can usually download it immediately as a PDF. If you request by phone or mail, it typically takes 5-10 business days to arrive. With your 3-week deadline, I'd recommend trying the online method first at IRS.gov/transcripts. If you have any issues with online verification, call the dedicated transcript line at 800-908-9946 right away and explain your deadline situation.

This sounds interesting but I'm not clear on what it actually does. Is it just guidance on how to get the documents, or does it somehow retrieve the documents for you? I'm in a similar situation but with 1099 forms from 2019.

I'm skeptical about using some random website for tax issues. Couldn't you just call the IRS directly instead? Why would you need a third-party service for something the government provides for free?

It doesn't retrieve the documents for you - it analyzes what you specifically need based on your audit letter and gives you step-by-step guidance tailored to your situation. For your 1099 situation, it would show you exactly which transcript type to request and how to interpret it for your specific tax issue. I found the guidance much clearer than the generic IRS instructions. You absolutely can contact the IRS directly, and that's what taxr.ai guides you through doing efficiently. The difference is that instead of waiting on hold for hours or getting generic advice, it helps you identify exactly what you need and how to get it. For my audit, it saved me from making multiple requests by pinpointing the exact transcript type required. The service actually saved me money by preventing me from ordering unnecessary documents.

How does this actually work? Seems kinda sketchy that they can somehow get you to the front of the IRS queue when everyone else is waiting for hours.

This sounds like a complete scam. There's no way some random service can magically get you to the front of the IRS line. The IRS doesn't give priority access to third parties. I bet they just take your money and you still wait just as long.

It doesn't get you to the front of the queue - they use an automated system that calls and navigates through all the IRS phone menus for you, then stays on hold so you don't have to. When a human IRS agent actually answers, that's when they connect you. You're still in the same queue as everyone else, but you don't have to personally sit there listening to hold music for hours. I was skeptical too at first, but it's legit. They don't claim to have special access to the IRS - they're essentially a professional "hold waiter" service. What convinced me is that you don't pay unless they actually connect you to an agent. I spent days trying to get through myself before trying them, and the time saved was absolutely worth it. The IRS agent I spoke with helped me get all my transcript requests expedited once I explained the audit deadline situation.

This is the real pro tip! I work in accounting (not giving tax advice) but people forget that states often already have access to your federal information through data sharing agreements. Definitely worth asking if they already have what they're requesting from you.

This is such a good point that I didn't consider! I'll definitely call the state tax department directly tomorrow and ask about this. Do you think I should mention this to my auditor first, or just go directly to the taxpayer assistance division? Also, when you said they just needed you to "verify some details" - what kind of information did they ask for? I want to make sure I'm prepared before I call.

I would contact the taxpayer assistance division first, then let your auditor know what they said. Sometimes auditors are limited in what assistance they can provide, while the taxpayer help division is specifically there to solve these kinds of issues. For verification, they asked me to confirm my social security number, the employer's name (which they had on file), and the approximate total income I had reported from that employer. They also asked for my current address to update their records. Some states may ask for additional identity verification like your date of birth or information from your most recent tax return. Having a copy of your 2016 tax return handy would be helpful even if you don't have the W-2.

Most states follow a 3-year statute of limitations similar to the IRS, BUT there are important exceptions. If they suspect substantial underreporting of income (usually 25%+), many states can go back 6+ years. And if they suspect fraud, there's typically no time limit at all. Some states also have different rules - California and a few others have 4-year standard limits, and certain tax situations can extend deadlines.