A former employer of mine refuses to pay taxes and told me that he did not want me to fill out a W-2 to show state and federal levels what and how much to take out of my weekly $300 check. I continued to persist about it and he finally withdrew $55 from each check... even though he did not know any of my tax information or have me fill out anything saying as such. When I quit six months later, he confessed to me that he had not been paying any tax at all and offered to pay me $1000. I turned it down and then just this January I informed him that I was expecting a W-2 from him based on a prevoius question that I had earlier asked on this service. My question is, on line 1 & 16 (wages, tips, other compensation) he has $6000, on line 17, state income tasx (missouri) he has $100... I've been told that is $47 short and I have to pay for it.
Since he mishandled this situation, can I have him pay this amount? If he doesn't, can I take him to small claims court or is there an IRS form?
2007-02-24 11:29:54 · 9 answers · asked by nicklemeout 2 in Business & Finance ➔ Taxes ➔ United States
Also, are these correct?
Federal income tax withheld: $515
Social security tax withheld: $372
Medicare tax withheld: $87
I know it's only $47, but the guy is a seedy crook. I know of another illegal operation that he is into... but I can't really prove that he is or has done anything illegal just yet. He takes photos from the 1800's and early 1900's, remakes them in the old fashion method, and then tries to sell them on eBay as originals. I've seen his whole set up... but, it's not illegal until he's actually sold some of it as far as I know.
Anyway, can I take him to small claims court? Is there some IRS form I can fill out?
thanks!
2007-02-24 11:33:21 · update #1
it sounds like you have gotten into quite a complicated situation. my advice would first be to not even turn in taxes if he didnt send any forms to the government they will have no idea you were employed and not even contact you expecting anything. and i would have taken the $1,000 when he offered. but the worst that could happen is you have to pay in a measly $47. that is nothing. and i wouldnt turn him in about any illegal activities. take these words to thought. ( snitches get stitches ) . it is best to just accept a loss and move on with youre life. i have been scammed out of many thousands of dollars in my life. mostly by relatives or supposed friends. i have learned the hard way to just forget about it and move on. i also live in missouri and im sure i still have my 1040 instructions here from when i did my taxes a few weeks ago. so i can look it up if you like. but if you made $300 a week that would be $15,900 a year instead of the $6,000 he put down.
2007-02-24 11:48:32 · answer #1 · answered by Anonymous · 0⤊ 1⤋
Hopefully you have your paycheck stubs. Add up the amounts withheld from each check and see if they equal the amounts shown on your W2. Lots of people underestimate their withholding and owe at the end of the year.If they are correct you are stuck. I know this is not exactly what happened in your case, but that is how the IRS will look at it. If the amounts don't match, you will have to show all this to the IRS to prove that more money was withheld from your pay. He will then have to correct your W2 and you can proceed from that point. If $6000 is all you made, you should be able to use the EZ form. Get a couple of copies and figure your taxes using both sets of figures.
2007-02-24 19:50:26 · answer #2 · answered by Michael C 5 · 0⤊ 0⤋
If he withheld $55 a paycheck and your withholding totals $1,074, that sounds pretty close for 20 weeks of work at $300. So the withholding is accounted for.
If you owe $47 to the state, that is not his fault and you cannot take him to court to pay taxes you owe.
File your taxes and get any withholding back that you can. Also, check with Social Security that the correct amount has been credited to your SS account. The SSA will be able to provide you a statement in a couple of months.
Don't bother trying to get him in trouble, there is nothing in it for you.
2007-02-24 20:21:53 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
Contact the IRS and your state tax department and tell them of the withholding fiasco. The employer is required to send in the withholding monies all during the year. If he doesn't that in itself is a crime. The numbers on your w-2 are probably bogus anyway, those amounts should correspond to year-end information he is supposed to send to the IRS and state tax dept. The employer is supposed to send a W-3 to the IRS summarizing all the w-2's he sends out for the year. I'd bet he didn't do that.
2007-02-24 19:44:32 · answer #4 · answered by crazydave 7 · 1⤊ 0⤋
I'm thinking one of two things here, 1) Go ahead and pay the 47 but make sure you get the CASH from him, 2) If he won't give you the $47 then turn his behind in to the IRS fraud division.
I personally try to keep from intentionally getting people in trouble because what comes around in life goes around. So please try to work with him. It's only if he won't be fair about it would I tip off the IRS.
2007-02-24 19:38:06 · answer #5 · answered by Lance 3 · 0⤊ 1⤋
Who the heck did you work for? The Mafia? Some things in life are chalked up as learning experiences. Yes, you can take him to small claims court. I side with you. But, then again I don't look good in cement shoes. Watch your back. Aside from him, you never know whose toes you are stepping on.
2007-02-24 19:47:03 · answer #6 · answered by DARMADAKO 4 · 0⤊ 1⤋
It's not clear from your question - did he underwithhold, or did he not forward all the withholdings?
Underwithholding is very common, and then you owe the money.
Not forwarding withholding money is a criminal offense. The govt would take it very seriously if you turned him in.
2007-02-24 20:29:50 · answer #7 · answered by Quixotic 3 · 0⤊ 0⤋
call the I R S they will tell you what to do trust me it happend to me to
2007-02-24 19:34:02 · answer #8 · answered by j u 2 · 1⤊ 1⤋