Question

How long must an employer keep undeliverable copies of employee's Form W-2?

A. Three years
B. Four years
C. Five years
D. Seven years

Answer 1

Employers must keep undeliverable copies of employee's Form W-2 for B) four years after the tax due date or when the taxes were paid, whichever is later.

Step-by-step explanation:

The question pertains to the record-keeping requirements under United States tax law, specifically regarding a W-2 form which an employer issues to employees documenting the employee's annual wages and taxes withheld.

According to the Internal Revenue Service (IRS) guidelines, employers are generally required to keep copies of undeliverable employee Form W-2s for a minimum of four years after the tax due date or the date the taxes were paid, whichever is later. Therefore, the correct answer to the question is B. Four years.