It sounds like her boss needs some better accounting software. Have you tried talking to the IRS about this situation, or a cpa? If it is going to cost her a lot of money - it's definatly worth getting their advice.
So where is this amended w2? Did he send it to the IRS and not to her? Did she actually receive wages and did she get pay stubs?
I definalty see that it was the employers fault for filing a w2, but why would he send the amended one to the IRS and not to your daughter? If she received pay stubs, she should have seen the discrepency between the w2 and the pay stubs?
Sorry I am just trying to figure out the whole situation so I can give you the best advice I can.

