My husbands employer did not provide him with a W2 or 1099 and he has not paid taxes quarterly as we found out he should have. There was a question on his actual emplyment status weather he was an "employee" or 'contractor". Now the company has gone out of business and we don't know how to proceed.

Contact the IRS they should be able to tell you how to proceed, or even contact the company on your husband's behalf. Internal Revenue Service (http://www.irs.gov)

Shelly has good advice. Follow it!