Old employer shut down and I never received a W-2 - was never in the system

Thanks for this info! Quick question - how far back can the IRS go looking for unreported income? And how would they even know about cash payments if the business is completely gone now?

The IRS generally has 3 years to audit your return, but this extends to 6 years if you omit more than 25% of your income. For fraudulent returns or if you don't file, there's no statute of limitations. As for how they'd know - there are several ways. Your employer might have deducted your wages as a business expense on their tax returns, creating a mismatch. The IRS might receive tips from coworkers or customers. Bank deposits not matching reported income can trigger reviews. Even if the business is gone, records still exist in various systems.

How does this taxr thing actually work? Does it need any documentation from you or can you just estimate your income? My brother has a similar issue with a landscaping company that went under.

Sounds interesting but I'm skeptical. Couldn't you just do this yourself by googling how to file Form 4852? Is there something special this service actually provides that makes it worth it?

It works by asking you a series of questions about your employment situation and then analyzes what forms and documentation you need based on your specific circumstances. You don't need perfect documentation - it helps you work with whatever information you have, even if it's just bank deposits or your own records of hours worked. What made it worth it for me was the confidence of knowing I was doing everything correctly. It explained exactly what information to include, how to estimate my income and withholdings accurately, and provided a paper trail showing I made a good faith effort to comply with tax laws. Plus it has specific guidance for situations with employers who've gone out of business.

Wait so this service just helps you get through to the IRS faster? How does that even work? The IRS phone lines are always jammed...I've tried calling them multiple times and gave up after being on hold for hours.

This sounds like a scam. The IRS doesn't let third parties jump their phone queue. How would this possibly work? And even if you get through, the IRS isn't going to just tell you what your employer reported without verification.

It's not about "jumping the queue" - they use a system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call connecting you directly to that agent. It saves you from sitting on hold for hours. They absolutely will tell you what's been reported under your SSN - that's your information and you have a right to it. The IRS agent will verify your identity first (with questions about your filing history, address, etc.), and then they can tell you whether W-2s or 1099s have been filed under your SSN. I was able to confirm nothing had been filed by my former employer, which is exactly what I needed to know.

Would filing the SS-8 potentially cause problems for me though? I'm worried about triggering an audit or something if I start filing additional forms. Also, how long does that determination process usually take? I need to file my taxes pretty soon.

Filing SS-8 won't trigger an audit of you - if anything, it might lead to your former employer being examined. The determination process can take 6+ months, but you don't need to wait for the determination before filing your taxes. You can file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" along with your return if you believe you were misclassified. This lets you pay only the employee portion of Social Security and Medicare taxes rather than the full self-employment tax amount. Just indicate on the form that you've filed SS-8 and are awaiting determination.

This is great advice but doesn't help OP now lol. I've started taking pictures of my paychecks too since my last employer "lost" my employment records when I needed proof of income for an apartment application.