“Once they report this to the IRS, the agency will initiate a formalized complaint process and attempt outreach to the employer,” said Stephen Dombroski, senior manager, payroll tax compliance at Paychex.
In this case, the IRS will send you Form 4852 so that you can estimate the data that would otherwise be on your W-2 and file your taxes.
Be ready to explain to the tax agency how you arrived at your numbers.
Once your W-2 has been squared away, take a few minutes to check your online account with Social Security to ensure that you have accurate earnings reported, said Dombroski.
“Say you had a significant bonus paid during the year, and it wasn’t on your W-2,” he said.
If those earnings weren’t properly reported and taxed, it could affect your retirement benefits down the line, Dombroski said.
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