[michellepcontreras]

I worked with my last employer until early Dec of 2005. I then had a baby and did not return to work. Recently, I got a summary from social security that included some income for 2006. I was susprised because I haven't worked since I had the baby, so I called to ask where it was reported to have come from. They told me that it was from my last employer, so I called and asked for a w-2. The form reports an income of $3,562. The problem is, I don't recall ever receiving that, and now that it's 2007, my income tax return has been filed for almost a year and that income was not included. I would like to receive some detail as to what that sum is composed of. Is my former employer obligated to provide me with proof of that income if I request it? Any help is greatly appreciated.

[ebaines]

You should definitely have received a W-2 in January 2007 for wages paid in January 2006. You should call your former employer and request a copy. You can then file an amended return for 2006 to clear this up. The longer you wait to do that, the bigger the interest penalty will be from Uncle Sam.

Some thoughts as to what the payment may have been:

1. Some companies pay their month-end payroll for December on Jan 2, in which case your December pay is reported as January income on your W-2.
2. Is it possible that they reimbursed you for unused vacation time? When I left my last company in mid-August 2005 they sent me my check for unused vacation a month later.
3. Did you have any stock options left behind at your former company? If so, they may have been automatically exercised 30 days after you left. In this case the proceeds would either show up on a 1099 or your W-2, depending on how its handled at your company.
4. Does your compony pay a year-end bonus? Again, it may have actually been paid in January after you left.

[AtlantaTaxExpert]

Michelle:

Your employer is required by law to provide you with a W-2. More than likely, they just forgot to mail it to you. Just call and ask for it; they probably have it on file.

Ebaines points are all valid possibilities to explain the extra $3,562.

[michellepcontreras]

Michelle:

Your employer is required by law to provide you with a W-2. More than likely, they just forgot to mail it to you. Just call and ask for it; they probably have it on file.

Ebaines points are all valid possibilities to explain the extra $3,562.

Thanks for your reply. They have sent me the w-2, but I would like to see a detail of what makes up that amount. Can I request that, and if so, are they required to comply? Thanks again!

[AtlantaTaxExpert]

They probably are NOT required by law to provide that kind of detail, but I see no reason why they would not comply with your request, especially if you ask nicely and are not strident and demanding.

[michellepcontreras]

They probably are NOT required by law to provide that kind of detail, but I see no reason why they would not comply with your request, especially if you ask nicely and are not strident and demanding.

Just wondering... If employers are not required to provide such proof, how can the IRS be sure that they are not overstating their salary expenses? And what happens if an employee receives a w-2 that overstates the actual salary, how do you fight that?

[AtlantaTaxExpert]

You can contest the accuracy of a W-2 by formally challenging it with the IRS.

You would have to prove that you did not get the amount stated on the W-2. This would not be too difficult if you have the check-to-bank option, because then all you would need is to print out a year's worth of bank statements, highlight the bi-weekly paycheck deposits, add them up, and compare the total with the W-2.

The IRS would then require the employer to either justify the higher amount on the W-2, or issue a corrected W-2.