Legal Question in Tax Law in Georgia

Re: Employer doesn't send deducted taxes to IRS

This is, unfortunately, a very common situation. You, however, are fully protected. The IRS will give you credit for the taxes withheld from your wages, even if the employer doesn't remit the money. The IRS's recourse is against the employer, not you.

The employer faces a range of possible sanctions, including the assertion of the "trust fund recovery penalty" against all persons who were responsible for withholding the tax and paying it over, and who willfully failed to do so. (See my article on this subject on my website at www.bjhaynes.com.) Your only exposure is if in your particular job at the company you are one of those responsible for withholding and paying over the tax (i.e. the controller, treasurer, etc.).

As for the W-2, even if you never get one, you still need to file your return. You can use your year end pay stub to show the amount of your wages and the amount of tax withheld, since most paystubs show "year to date" amounts.

If you need more help with this, you can contact me through my website.

B.J. Haynes