Simple Ira employee salary dererral was deducted after taxes
Simple Ira employee salary deferral was erroneously deducted after taxes for a small company employee. This was done since inception (2009). Is there any way to remedy this other than going back 3 years and amend the tax returns? With the amended returns the tax deductions will be lost for the years of 2009 through 2012.
Would appreciate some feedback if there is any other way these deductions can be recovered?
Thank you!
Permalink Submitted by Alan - IRA critic on Thu, 2016-12-22 19:29
Has the employer issued W 2c forms? Was the SIMPLE IRA deferral reported in Box 12 Code S? The IRS will need evidence that the original forms were incorrect, so they would probably need a W-2c for each year to enable them to accept a 1040X for the open years. I don’t know if there is any way to recover lost taxes for the closed years other than a settlement directly with the employer.