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Tips to Tracking Down Old W-2’s
September 20, 2013
When a client matter involves filing Missouri tax returns, obtaining actual copies of a W-2 needs to be a top priority. In many instances, the taxpayer no longer has an original copy of his or her W-2. In some instances, they cannot even remember where they were employed for the years in question. Fortunately, our firm has developed a strategy for handling this exact scenario. First, we file a power of attorney form with the Internal Revenue Service. This allows us to obtain taxpayer transcripts which will show a taxpayer’s employment history. In fact, all the information we require is there for the exception of one very important detail – state tax withholdings. In Missouri, this is especially important because the Missouri Department of Revenue claims that they do not have the capacity to keep state tax withholding data on each taxpayer despite the fact they require each employer to submit the same data they claim not to keep. I would assume that if the Missouri Department of Revenue requests specific data (in this case, copies of W-2’s), then they would have a system for archiving that data. Again, they claim they do not, but it is hard to take them at their word. In fact, we are currently investigating this claim at the moment. So, if the client does not have the information, the IRS does not have the information, and the Missouri Department of Revenue does not have the information, who will have the information? The Social Security Administration? No. They keep the same records as the IRS. The Employers? Bingo. Now, employers are not technically required to retain old W-2’s for employees for more than four years. In our experience, however, employers tend to keep them much longer. Computers have allowed many companies to organize and store mountains of data at a cheap cost, so many of the W-2’s live on in electronic form. If the W-2’s are gone, ask for payroll records. The state of Missouri will accept payroll records as an adequate substitute for a W-2 so long as the payroll record shows how much was withheld in state taxes. In our experience, payroll records are kept for long periods of time, especially if a company utilizes a third-party payroll company like ADP or Paychex. If you need to file back tax returns and do not know where to begin, give us a call today. We are happy to help. Until next time, Alex