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Not Holding Taxes Out..???

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MJonathanL

Guest
okay, back in October of 2001 I was hired into my current job. I filled out all the papers, including the W-2 form. I didn't noticed until just a few months ago that they did not hold out taxes on me...and they said they could not find the W-2 form that I filled out. They had me fill another one out and it took over 1 month to take affect. Is this illegal? I think they should have to pay the Taxes that they did not hold out on me even if when I filled out the W-2 Form...it is not my fault they lost it.

Any thoughts??
 


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loku

Guest
You are right. The employer should have to pay the taxes that they should have withheld. If you can not come to an agreement with them to do so, I suggest you file your income tax return and include a note to the IRS explaining the facts.

I do not know for sure, but the employer probably would have a right to repayment from you of the amount of taxes the employer would have to pay on your behalf. However, the employer would have no right to reimbursement of any interest or penalties involved.

Following are the rules pertinent to your situation:

Employers are required to have a Form W-4, Employee's Withholding Allowance Certificate, on file for each employee. They must all new employees to give you a signed Form W-4 when they start work. If a new employee does not give the employer a completed Form W-4, the employer must withhold tax as if the employee is single, with no withholding allowances.

Under IRC Sec. 3402, unless an exception applies, every employer making payment of wages must withhold taxes. Under Treasury Regulation Sec. 31.3403-1 , every employer required to deduct and withhold the tax under section 3402 from the wages of an employee is liable for the payment of such tax whether or not it is collected from the employee by the employer. If, for example, the employer deducts less than the correct amount of tax, or if he fails to deduct any part of the tax, he is nevertheless liable for the correct amount of the tax.
 

crager34

Member
Glad to see an answer backed by the code section.

Keep in mind you said loku, "Under IRC Sec. 3402, unless an exception applies". Can you show the code section that shows the specific exemptions?
 

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