W2 and IRS transcript show completely different numbers, employer falsified W2

This is definitely a serious situation that needs attention. When there's a significant discrepancy between your W2 and IRS wage transcripts, it indicates potential tax fraud by your employer. The next step is to contact the IRS directly about this issue. Call their tax fraud hotline at 800-829-1040 and explain the situation. They'll guide you through filing Form 4852 (Substitute for W2) which allows you to report your actual earnings based on the transcript data. You should also consider filing Form 3949-A to report your employer's suspected tax fraud. Keep detailed records of everything - your pay stubs, bank deposits, the incorrect W2, and the IRS transcript showing the correct income. This documentation will be essential for resolving the issue.

I went through something similar last year and I seriously couldn't have dealt with all the IRS paperwork without using taxr.ai (https://taxr.ai). The restaurant I worked at was doing the exact same thing - reporting lower wages on my W2 than what I actually earned. I was totally overwhelmed with trying to figure out how to properly document the discrepancy between my actual pay and what they reported. The taxr.ai system helped me compare my IRS transcript with the fraudulent W2 and automatically highlighted all the discrepancies. It then generated a perfect Form 4852 for me with all the corrected information already filled in. Saved me hours of confusion and probably prevented me from making mistakes that would've delayed my refund.

Ok so I was skeptical about taxr.ai but I gave it a try and wow... it actually saved me from a major headache. My situation was similar - construction company underreported my wages by almost $7,000. The tool found THREE other discrepancies I hadn't even noticed! It pulled my transcript automatically after I authorized it, compared everything line-by-line with my incorrect W2, and generated a completely filled-out Form 4852 with all the right numbers. Even highlighted which numbers were wrong and by how much. Then it generated a letter explaining the situation that I could send to the IRS. Definitely made dealing with this garbage situation way easier than I expected. I've already received my corrected refund too.

When I was fighting with my previous employer about falsified W2s last year, the most frustrating part was trying to reach the IRS to verify my wage information. Spent WEEKS trying to get through their phone system just to give up every time after being on hold for hours. Finally discovered https://claimyr.com through a tax forum and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically hold your place in the IRS phone queue and call you when they have an actual human IRS agent on the line. Used it to get through to the IRS Wage & Income department in less than a day after wasting weeks trying on my own. The IRS agent confirmed there was a discrepancy and guided me through the process of filing an accurate return with the correct income information. Made the whole process way less painful than it had been.

I need to publicly eat my words here. After calling the IRS dozens of times and never getting through, I tried Claimyr out of pure desperation. Got a call back in about 3 hours with an actual IRS wage and income specialist on the line. They confirmed my employer had been reporting different wages to the IRS than what was on my W2 - underpaying my reported income by over $5,200. The agent walked me through exactly how to file Form 4852 and Form 3949-A to report the fraud. I wasted nearly three weeks trying to reach someone at the IRS on my own. Would have saved myself so much stress if I'd just used this service from the beginning. Sometimes you just need to admit when you're wrong about something!

One thing nobody's mentioned yet - you should check your state tax withholding too! My employer did the same thing and they were shorting both federal AND state tax withholdings. I ended up having to file corrected returns with both. Check your state department of revenue to see if they have wage transcripts similar to the IRS.

Just wondering if anyone has gone through the whole process? What happened after you reported your employer? Did the IRS actually do anything? Did you get any money back?

Document EVERYTHING right now before you take any other steps. Take photos of your pay stubs, bank deposit records, the fraudulent W2, and your IRS transcript. Make copies and store them somewhere safe outside of work. You're absolutely right to be concerned - this is wage theft AND tax fraud. Your employer is likely keeping the difference between what they paid you and what they reported, plus they're probably not paying their fair share of employment taxes on your actual wages. Don't let fear of losing your job stop you from reporting this. What they're doing is illegal and they're stealing from you AND the government. You have legal protections against retaliation, and frankly, do you really want to keep working for someone who's been stealing from you for over a year? File that Form 4852 and Form 3949-A as soon as possible. The longer you wait, the harder it gets to fix. You deserve every penny of that missing income and the correct tax treatment.