Legal Question in Tax Law in Maryland

Re: Lost W2s cannot file tax returns

We've seen this problem many times. However, I need to challenge one of your assertions as to the facts. Specifically, you state that the IRS did not give you credit for your federal withholding back during the years in question. That is inconsistent with how the IRS does this. They base these "substitute for return" assessments on third party information, such as your W-2s -- which are sent both to you and to the IRS. You have lost them, and the IRS no longer has them on the computer because they are so old. But at the time the SFR assessments were made the IRS did have the information, and their practice is in fact to give you credit for your withholding. So check with the IRS on this. I think you will find that you did indeed get credit for your withholding. And if that's the only difference between what you would have submitted and what you think the IRS computed, there may be no reason to file returns for those years at this late date. In other words, the IRS's assessments are correct unless you had itemized deductions or losses that the IRS wouldn't have known about.

Re: Lost W2s cannot file tax returns

The information on a W-2 is reported to you and the IRS. This is the basis of an IRS desk review that each return undergoes. The problem you present is that the IRS does not have information that is so old. If your return or other adverse matters were arrived at during any audit, you have certain rights to appeal the determination. An auditor does not have authority to compromise or settle tax monies due the government. Generally the IRS should impute the wages at the withholding rate in effect for the other years. Frequent changes with employers may present another issue.

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