Company claimes they overpaid my company

[Janice2402]

Hello,

I have an s-corp in IL. A company notified me claiming that they overpaid my company nine months ago. They notified me I am to pay them back. I do not believe they are correct in their assessment, but they are staying firm with their claim that they accidently overpaid by a couple thousand dollars. Unfortunately, this was 9 months ago, I already closed the books on '10, paid the taxes, and tossed out the pay stubs...so I do not have much documentation. I am not doing much with the scorp at the moment, I am thinking about simply closing the biz to protect myself from litigation. Am I correct in that assessment? If the business is closed, then what is their recourse? I am surprised that 9 months later, they are claiming this...what would you do?

Thanks,
JaniceWhat is the name of your state (only U.S. law)?

 

[LdiJ]

Hello,

I have an s-corp in IL. A company notified me claiming that they overpaid my company nine months ago. They notified me I am to pay them back. I do not believe they are correct in their assessment, but they are staying firm with their claim that they accidently overpaid by a couple thousand dollars. Unfortunately, this was 9 months ago, I already closed the books on '10, paid the taxes, and tossed out the pay stubs...so I do not have much documentation. I am not doing much with the scorp at the moment, I am thinking about simply closing the biz to protect myself from litigation. Am I correct in that assessment? If the business is closed, then what is their recourse? I am surprised that 9 months later, they are claiming this...what would you do?

Thanks,
JaniceWhat is the name of your state (only U.S. law)?

Just as an FYI for you and anyone else reading this thread, "tossing out the paystubs" was a really foolish thing to do. You are required to keep those records (under the tax code). What do you plan to do if the IRS decides to audit your records?