Legal Question in Employment Law in New York

If a W2 was issued then use it the fact the taxes were not paid is not your problem. If the taxes were not paid and you are the first to report it you may get 15-30% of the amount the IRS collects under the new whistle blower statute..

If the W2 has the wrong figures you can submit a corrected W2 with the correct figures based on your pay stubs, assuming you have them, to back up your figures.