Major issue...

Smally · #1 09-29-2005, 10:47 AM

My current job (3 years in) started paying me under the table without telling me. I realized that when I didn't receive my tax forms in the beginning of 2005. I have been looking for another job, but in the meantime, I am stuck here. (I'm dying to leave. They've bounced my checks and not payed me on time on several different occasions, and unfortunately, this being my main source of income prevents me from up and leaving unless I have something better to go to...) In any case, every check that has been made out to me was done so in my name, instead of made out to "cash". They are currently getting looked at by the Department of Revenue Services due to an unpaid tax on the company, and now I'm worried that if an investigation is opened against the company, they will see my name on all these checks and come after me. Anyone know how I can avoid getting slapped with a couple thousand dollars in owed taxes in the event that the Department decides to investigate the case?

bpd111 · #2 09-29-2005, 11:11 AM

What do your pay stubs say? Are they withholding anything?

If not, come tax time you'll have to report everything. The taxes that should've been withheld throughout the year (FICA, Medicare, FIT, SIT) will all have to be paid then.

I'm confused. If they just stopped withholding and paying your taxes (like most employers) then theoretically your take-home should have gone up. But if they paid you the same all along and just stopped payments to Uncle Sam, well that's shady as hell. You may want to make your own complaint to the IRS or state dept. of revenue.

It may be worth a trip to an accountant, or better yet, a tax attorney to keep yourself out of hot water. The penalties for not giving the gov't their "due", as you seem to know, could mess you up financially for a long, long time to come.

Smally · #3 09-29-2005, 12:24 PM

They always took care of the tax business before, and I'd just get the forms when it came time to do my taxes. So basically, even though I took home the same amount after they decided to put me under the table, nothing in the way of taxes was being paid out. They've always written checks out of the company books. So I actually never have received pay stubs. When I started the job, everything was ligit. Tax stuff was always taken care of. But for 2004 and 2005, apparently, I might end up getting seriously shafted, which I'm just trying to find a way to prevent.
I'm not sure if I can go to the labor boards or anything like that based solely on the fact that I didn't do anything about it when I didn't receive my tax forms for 2004. I know sure as hell that I won't be receiving them for 2005 either...

ryanb · #4 09-29-2005, 12:54 PM

It sounds like the company is not paying its bills ... they are supposed to be paying the tax money they are witholding from you, but instead are spending it elsewhere. If they aren't witholding tax money from your check any more, they have effectively given you a pay cut.

But whether they withold funds or not (they do not HAVE to do that for you), you are ultimately responsible to pay the government their cut. If the company didn't pay it, you have to pay it. Nothing will change that. If the IRS finds that you have not paid all of your taxes for previous years, you will have to pay the taxes and a few thousand dollars of fines to go with it.

You don't have much of a leg to stand on, unfortunately. You could argue that you just realized what is going on and hope to only have to pay the taxes themselves without a lot of penalties, but the taxes will have to be paid retroactively by somebody. And I wouldn't expect much help from the company ... it sounds like they will be out of business soon. Sorry. I'd find another job fast and start scraping together some cash.

Smally · #5 09-29-2005, 02:42 PM

I know that they have been taking care of tax stuff as of late. My boss called in the other day asking for my social security number, so I can assume that given the current situation, and based on the fact that she's been sifting through accounting stuff and tax bull**** since June, I might be in the clear. But no one can be sure.

I've already been interviewed for a position that pays twice as much as this place, complete with benefits (which I do not get, nor have I ever gotten here), and they aren't a shell company like this place.

The bosses here are rolling in the dough. This is their tax shelter (however ineffective it has proven to be) for some other means of income that they refuse to disclose. Something tells me that the owner has his dirty little fingers in a few dirty little pies somewhere. It's unfortunate that he's my boss's husband. I couldn't talk smack even if I really did think it would make a difference.

darren wilson · #6 09-29-2005, 04:39 PM

I'd get this sorted out with the IRS before the next tax bill is due. If you wait until it's time to file, you could find yourself in deeper trouble.

**jim777** · #7 09-29-2005, 05:22 PM

Yeah, I'd get a tax attorney quick. For 100 bucks you should be able to find out all of your possible exposure.

darren wilson · #8 09-29-2005, 05:24 PM

Without pay stubs, how can you be sure they've stopped withholding taxes? Did you ask for your 2004 tax forms? Before you go and talk to a tax attorney, you'd better make sure that your assumptions are correct.

ryanb · #9 09-29-2005, 05:34 PM

Did you get your W-2? That will tell you what they told the IRS.

Smally · #10 09-29-2005, 05:48 PM

I eventually asked her, "What's up with my taxes?" and she told me, flat-out, that I'm under the table. That's when I started looking for new jobs, but I only recently found one that is open and I am qualified for, so hopefully that will go through and I'll be able to get out of here... But I'm hoping it doesn't leave a mess in my wake. I know they've been weeding through tax **** (since they just fired their accountant) and my boss has been home, picking through everything, including pay **** for former employees. Hopefully that ends up clearing my name.

ScottB · #11 09-29-2005, 07:36 PM

If you had contacted the IRS prior to April 15, '05, stating that you hadn't rec'd your W-2, you would most probably be covered. Since you didn't file a return before the deadline, they may be able to hold you responsible for late penalties on your share of the taxes due. You may have snoozed a little too long on this one to keep your butt completely out of the frying pan.

Get an attorney now!

Ibanut · #12 09-29-2005, 10:40 PM

I say if they are after the Company then you should make a deal to testify against them for immunity from prosecution. Call an attorney and get him to make a deal with the IRS.

bpd111 · #13 09-30-2005, 09:02 AM

Tax attorney ASAP.

fettouhi · #14 09-30-2005, 09:43 AM

Quote:

Originally Posted by bpd111

Tax attorney ASAP.

Yup

.

Regards

André

darren wilson · #15 09-30-2005, 10:33 AM

In addition to seeking a tax attorney, i'd also consider suing your employer for back wages. If they stopped withholding your taxes but kept your take-home pay the same, in effect, they gave you a pay cut, AND they put you in a precarious position with the IRS, without informing you. If you have taxes and penalties owing, it should come out of THEIR ass if it was a unilateral decision on their part to start paying you under the table.

The difficult part will be proving it.