Employer incorrectly calculated taxes

[nikedjl]

Tennessee

I am a minor, and went to my job at a restaraunt I work at and got a letter indicating that I owed $450 in taxes that they say was "entered correctly, but calculated incorrectly by the new system" that they implemented a few months ago. I have my pay stubs that indicate they taxed much of the time they said they didnt. I have also not been provided with the amount of money they allege I was paid. I have called many places asking about it, and have been given the runaround. I do not know where to go from here, I do not believe them at all, and I have not been helped whatsoever by them. I immediately quit when they said they would deduct $140 from each check (more than almost all checks I get) until the balance is paid. I figure it is their problem, they should have to pay, I think that may be what they are attempting with this move to take out of my checks to cover themselves. I do not even know if the IRS has been told that this is the case. I have been told by managers to just forget it, I have been screwed by the almighty government... I am not giving up that easily. Any legal advice would be appreciated.

-Dan

[abezon]

Take the letter & your paystubs to a tax pro (H&R Block, probably) & ask them for a second opinion. As a minor, you do have to pay into the social security system, but are probably exempt from withholding, since I doubt you'll make over $5,000 this year.

[LdiJ]

Originally Posted by nikedjl

Tennessee

I am a minor, and went to my job at a restaraunt I work at and got a letter indicating that I owed $450 in taxes that they say was "entered correctly, but calculated incorrectly by the new system" that they implemented a few months ago. I have my pay stubs that indicate they taxed much of the time they said they didnt. I have also not been provided with the amount of money they allege I was paid. I have called many places asking about it, and have been given the runaround. I do not know where to go from here, I do not believe them at all, and I have not been helped whatsoever by them. I immediately quit when they said they would deduct $140 from each check (more than almost all checks I get) until the balance is paid. I figure it is their problem, they should have to pay, I think that may be what they are attempting with this move to take out of my checks to cover themselves. I do not even know if the IRS has been told that this is the case. I have been told by managers to just forget it, I have been screwed by the almighty government... I am not giving up that easily. Any legal advice would be appreciated.

-Dan

Are you an employee that makes most of your money from tips?

[nikedjl]

You could say that, however I make 6.00 an hour.

A good friend of mine who is a CPA said that they think the company was doing the check deductions to save themselves. She thinks they havent told the IRS and are afraid to. The last thing a small franchise owner wants is an audit, so she said me quitting was the right thing to do so they couldnt take the money. She recommended I send a letter to the IRS, and maybe they will audit; if not, she said not to worry because it is doubtful they will report the money. If they do, I just send another letter when the IRS asks for the 450 dollars.

[nikedjl]

Originally Posted by abezon

Take the letter & your paystubs to a tax pro (H&R Block, probably) & ask them for a second opinion. As a minor, you do have to pay into the social security system, but are probably exempt from withholding, since I doubt you'll make over $5,000 this year.

Already did, I have two jobs, made 4,000 some from one and 2,000ish from the other.

[LdiJ]

Originally Posted by nikedjl

You could say that, however I make 6.00 an hour.

A good friend of mine who is a CPA said that they think the company was doing the check deductions to save themselves. She thinks they havent told the IRS and are afraid to. The last thing a small franchise owner wants is an audit, so she said me quitting was the right thing to do so they couldnt take the money. She recommended I send a letter to the IRS, and maybe they will audit; if not, she said not to worry because it is doubtful they will report the money. If they do, I just send another letter when the IRS asks for the 450 dollars.

I would guess that they somehow didn't get your tip income reported and didn't withhold taxes to cover the tip income...possibly for several pay periods.