Tax Fraud? South Carolina

[kikilane]

My husband worked for a small company starting in 2006 and ending in October of 2008. They took out taxes in 2006 and 2007. He never recieved a W-2 for 2008 so he called his prior employer. His employer informed him he would not be receiving one for 2008, that they had not been taking out taxes and were being paid directly from his bosses check. My husband was never informed of this and never signed anything stating that his status has changed tax wise. Since the company was small they recieved personal checks and never had been given pay stubs. I am wondering what steps to take, if any.

[Marketeer]

If the employer failed to deduct the appropriate taxes and remit them, your recourse is to report the employer to the IRS and your state tax agency.