Welcome and thank you
for your question!
I am sorry to learn of the facts you've described. To answer the questions:
1. Contact the IRS for assistance at(NNN) NNN-NNNN She must provide her name, address, city and state, including zip code, Social Security number, phone number and have the following information:
Employer’s name, address, city and state, including zip code and phone number
Dates of employment
An estimate of the wages
earned in 2012, the federal income tax withheld, and the dates of employment.
She'll have to file her taxes on April 15 -- even if it's filing for the extension (she'll still have to pay estimated taxes). This is the form to do that http://www.irs.gov/pub/irs-pdf/f4868.pdf
2. There's nothing else to do with the employer right now except to wait for the IRS audit to be done.
3. Fafsa verification occurs after the April 15 federal income tax deadline. However, special rules apply to people who obtain a six-month extension from the I.R.S. Fafsa should be completed NOW and then later updated when the final IRS form is filed. That update can later impact any eligibility determination.
My goal is to provide you with excellent service – if you feel you have gotten anything less, please reply back. I am happy to address follow-up questions. Thank you for your business!