Dear mandes,
Thank you for your question.
What is your relationship to the employer. I know you said you were a statutory employee; However, I would like to know if you are a partner or is this company a S-corp and you are a share holder, etc?
it would have been better to have remained as a 1099 employee, but I understand the issue with W-2 income and mortgages. MOST lenders do not lend or have a very unfair down payment requirement for self employed persons.
The statutory employee is a good ploy to use to meet the mortgage company requirement.
The statutory employee rules are listed here: http://www.irs.gov/businesses/small/article/0,,id=179118,00.html
he can check the box statuory employee if that is what you were.
The problem I see that is not addressed, is that if the employer checks statutory employee, then the employer most likely woudl have to withhold and pay SS and MC taxes; and that the employer has a contributory portion.
If you are 1099'd, then you pay all your own SS and MC using self employment tax.
If the employer did not withhold, on that 2006 return (and the others), then he may be subject to penalties and interest. Payroll taxes delinquency can produce extremely high penalties for the employer. (query statutory employee at the link below)
http://www.irs.gov/publications/p80/ar02.html
Your employer showed intent. I understand he is sick.
Your accountant can use the employer's intent. BUT you need to at least speak to the employer and get his verbal agreement.
If your accountant is not retained by the employer, then your accountant can not amend your employer's W-2's or send out this years unless you at least have a verbal agreement to use your accountant.
Attorney
Licensed Practicing Attorney
You are entitled to follwoup questions. I will have the other one closed that you opened.
The IRS will not allow you to divest personal responsibility for your timely tax filing, even if you have accountants on retainer.
So if this can not be done on time, and you can not get the accountants to do it on time, then yyou would have to file something on your own. (else suffer the interest and penalties for late filed return).
If your CPA/Accountant are end up being responsible to you for late filings, then you can report them to a provider line with the IRS.
for example: If a W-2 is not produced for you, then you can use the following form and report to the IRS that the employer refused to provide a W-2.
http://www.irs.gov/pub/irs-pdf/f4852.pdf