W-2 Fraud Lawsuit Over Cash Wages Moves Forward
A federal judge in New York on Oct. 16 let a W-2 fraud claim proceed against the operators of a Hempstead, N.Y., car wash. Eight former employees allege some wages were paid in cash and left off their W-2s, which they say should be treated as fraudulent under federal tax law carrying a penalty of at least $5,000 per form. The operators argued the law covers only W-2s that overstate pay. Courts in Colorado and South Carolina have taken a narrower view of similar claims.
