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July 22, 2022
Question

Kronos hack and employer withholding W2-C

  • July 22, 2022
  • 2 replies
  • 0 views

My employer is withholding my corrected 2021 W2 until my overpayment balance is paid in full and informed me that it will take 4+ weeks to receive my W2 after I've paid. I will most likely miss the filing extension deadline. Is this legal for them to do? This issue stems from the Kronos hack and apparently terrible record-keeping by the company I work for. The hack occurred in December 2021 and I my company did not provide me with the correct amount owed until June, six months later. I am still waiting to hear back from HR and haven't begun the repayment process yet. I am unable to repay the amount in full and will need at least three months (ideally) to pay this back. I'm at a loss as to what to do and am tired of waiting idly for HR to respond to me.

2 replies

Critter-3
July 22, 2022

I would file with the W-2 you have and amend later when you get the corrected form.  

July 23, 2022

you may be able to use form 4852 to report the correct amounts for your w-2.

note that the IRS may contact you to get the name and other info for your employer so they may contact them

here's from the form

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.

 

not the word "may" in the highlighted line 

trying to get through to an agent on the number is difficult.

 

 

Employee
July 23, 2022

chemsmile wrote “ and haven't begun the repayment process yet ”, thus the repayment is a 2022 return item!  2021 is filed using the W-2 including the over payment. IRS info on Claim of Right is here

https://www.irs.gov/publications/p525#en_US_2021_publink1000229610

Critter-3
July 23, 2022

@ee-ea   Is correct ... the W-2 will never be corrected ... the IRS "right of claim" is your only correct option.