Over-compensation

[sweatshopsnake]

I live and work in California. I recently quit my job, and evidently my final paycheck was $100 more than it was supposed to be. They sent me some documentation saying that I need to repay the money because "IRS regulations require a recalculation of any remaining balance due, if any portion of the repayment is received after Dec. 31, 2009."

I have no idea what that means. If I choose to ignore them, can they withhold my W-2 form, or in any other way interfere with my ability to file taxes next year?

 

[LdiJ]

I live and work in California. I recently quit my job, and evidently my final paycheck was $100 more than it was supposed to be. They sent me some documentation saying that I need to repay the money because "IRS regulations require a recalculation of any remaining balance due, if any portion of the repayment is received after Dec. 31, 2009."

I have no idea what that means. If I choose to ignore them, can they withhold my W-2 form, or in any other way interfere with my ability to file taxes next year?

I am not sure what they mean either...but I expect they are trying to intimidate you into returning the extra money. Which also means that even though it would be completely illegal, they may also try to hold your W2 hostage as well. If that happens, contact the IRS for assistance.

 

[xylene]

I live and work in California. I recently quit my job, and evidently my final paycheck was $100 more than it was supposed to be. They sent me some documentation saying that I need to repay the money because "IRS regulations require a recalculation of any remaining balance due, if any portion of the repayment is received after Dec. 31, 2009."

I have no idea what that means. If I choose to ignore them, can they withhold my W-2 form, or in any other way interfere with my ability to file taxes next year?

FYI - Your employer 'holding' your W2 does not mean you cannot file taxes.

 

[Zigner]

Why not just pay it back? You DO owe it to them.

 

[ShyCat]

They might have been trying to say that if you pay it back before year end, you only have to repay the $100 net overage. If you repay it after year end, you'll end up having to pay back the gross amount of the overage rather than the net ($100) amount. Say the overpayment was $125 gross with $25 taxes withheld, you'll either have to pay $100 now or $125 next year.