I did some work for a company in 2012. They paid me about $4,000 in wages, but owe me about $56,000 in unpaid wages. I recently (March 2014) got my W-2 from the company.
In the same 2012 tax year, I had about $90,000 in earnings distinct from the company with the unpaid wages. That is, it was a different company. The earnings had standard with holdings.
I was not able to file my taxes in 2012 because of the missing tax forms.
The fellow who owes me the $56,000 went out of business last month, so there's little hope of getting paid now.
Can I write off the $56,000 based on demand letters? Or do I need to finish suing him to write-off the loss?
Should I file the 2012 taxes now? Or wait until the lawsuit finishes?
If the lawsuit finishes in 2014, does it apply to the 2012 taxes?
I live in the US, so the context is federal and state taxes.