Employees who file individual taxes based upon their W-2 can get refunds in spite of the unpaid deposits.
Employees catch a break when employers don’t deposit withheld taxes: They still can claim a credit for the withheld income taxes when they file,according to IRS lawyers.
They rebuffed an IRS agent’s attempt to deny the credit for withheld taxes shown on a worker’s W-2 because the employer didn’t deposit them. The IRS’ recourse is to go after the person or persons responsible for the shortfall.