It’s the middle of February, and what question is on our minds as clients call asking for an appointment or if they can start dropping off their tax papers - Do they have all of their W2s?
What happens if the company you worked for, say, in the beginning of the year, has closed and gone out of business? What are your options? What do we need from you?
Well, there is an easy answer, and that is the last paystub.
With a “final” or year-end paystub, professionals can prepare a substitute for W2/1099 (IRS FORM 4852) and we can get the tax returns prepared for you. We attach the electronic version to the return we e-file and the IRS and state will receive a copy this way.
You may contact the IRS and Social Security Administration and request a wage and income transcript. Unfortunately, if the former employer failed to send the required forms to either, then you still would need to use your last paystub. If the employer used a payroll service company (ADP or Paychex, for example), you may be able to request a copy of the W2 from them.
It never gets old when we repeat that it is your requirement to report all your income, whether you receive a W2 or 1099 or not. There is no exception to remove penalties and interest when you fail to do so based on not receiving a copy.
Pack your patience along with your paperwork as you prepare to file your 2017 returns! S and C corporations are due to be filed March 15 and individuals, April 17.
Karen S. Durda, EA, President of Century Accounting and Tax Services, Inc., has been in the profession since 1984. As an Enrolled Agent credentialed by the Treasury Department, she has the rights as afforded by Congress to represent individuals and businesses before tax authorities. Since May 2012, she has also had the distinction of being a Dave Ramsey Endorsed Local Provider, assisting in budgeting and financial peace for a four-county area and parts of Myrtle Beach.As a Qualified Business expert with the New Hanover County courts, she has experience and knowledge of various scopes of professions and industries, such as medical, health services, legal, construction, retail, real estate, auto sales and service, insurance and restaurant. Continuous tax law courses throughout the year keep her up-to-date on all tax rules, regulations and law changes, as well as business trends, to better serve her clients.
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