Small machine shop owner passed away in December 2020. Wife closed the business as she wasn't involved in the operation. Instead of W-2's she just gave the employees a print out with all the pertinent info that would be on a W-2. Researching what to do leads me to form 4852. Do they NEED to contact the IRS first about this or can I fill in the 4852 and go ahead and file? I have the employer ID number from past years. This is a first for me.
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Last edited by Justataxguy; 02-13-2021, 07:53 PM. -
The answer is not that simple.
Did the owner file 941 forms and make payroll tax payments for the 1st 3 quarters of the year and file SWT and SUI reports for the same quarters?
The fourth quarter needs to be filed as well and W-2s prepared and issued to the employees and W-s transmittal sent to Social Security Administration.
Was the wife authorized to sign any documents in her husband's place? IF not - then I suggest the wife contact an attorney to get court authorization
for a responsible party status. Form 4852 is for the EMPLOYEE to file in absence of W-2 information - not your responsibility.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
I'm guessing the employee is your client. Based on the following at the top of form 4852, it looks like the employee should try to get a W2 from the employer then contact the irs.
"You must take the following steps before filing Form 4852• Attempt to get your Form W-2, Form W-2c, or Form 1099-R (original or corrected) from your employer or payer before contacting the IRS or filing Form 4852.• If you don’t receive the missing or corrected form from your employer or payer by the end of February, you may call the IRS at 800-829-1040 for assistance. You must provide your name, address (including ZIP code), phone number, social security number, and dates of employment. You must also provide your employer’s or payer’s name, address (including ZIP code), and phone number. The IRS will contact your employer or payer and request the missing form. The IRS will also send you a Form 4852. If you don’t receive the missing form in sufficient time to file your income tax return timely, you may use the Form 4852 that the IRS sent you to file with your return"
If the widow is your client, you should try to convince her to file the W2s and other required forms to 1) do the right thing for the employees, and 2) prevent a bunch of letters from the irs & SSA which will be a bigger & more costly situation to correct than doing it now."Taxation is the price we pay for failing to build a civilized society." ~ Mark SkousenComment
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Who was filing the payroll reports (941, 940, state tax forms, etc) in 2020 and prior years? If deceased was doing them himself, then it is her responsibility to take care of it. Have her contact a preparer who does payroll, if she does not want to do it herself, and furnish him/her with the necessary documents/information to prepare the forms and remit, as well as close all the accounts with IRS/State authorities.Comment
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So, the employee (client) has contacted the IRS and has a 4852 coming. I have also sent a letter to the widow offering to do W-2's for her, there were only 4 employees. Can the 4852 be attached and e-filed with the federal and NY returns or do they have to be mailed?Comment
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To my knowledge, Form 4852 is not e-fileable.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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"If the taxpayer is unable to secure and provide a correct Form W-2, W-2G, or 1099-R, the return may be electronically filed after Form 4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. is completed in accordance with the use of that form. This is the only time information from Pay stubs or Leave and Earning Statements (LES) is allowed."
Not sure exactly what the above quote entails, but it looks like it could be e-fileable."Taxation is the price we pay for failing to build a civilized society." ~ Mark SkousenComment
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