revamped79
Junior Member
UTAH
Okay, here's the situation in a nutshell.
I was erroneously classified as an independent contractor by my former employee. I realized this when I was forced to pay self-employment tax for the year 2003, when, in fact, I was a very real employee of this company. I subsequently quit the company and filed an SS-8 to the IRS for 2003 and 2004. The IRS retroactively reclassified me as an employee and my employer was forced to pay the taxes that he originally didn't withold from my earnings for both 2003 and 2004.
The letter from the IRS notifying me of my reclassification also said that I was liable for my income tax and my share of FICA under IRC section 3509 1 (d) (A) and section 3101. And that it was the intent that my employer would collect it from me and remit it to the govt. And that ultimately, I was liable.
Recently I got an email from my employer claiming that I owe him, what amounts to be about, 28% of my total earnings at said company. I subsequently called the IRS helpline and wasn't able to get a whole lot of help. But the kind lady assisting me said that it seemed like the letter suggested I owe about half of what my employer is claiming I owe him.
Does this situation seem fishy?
How can I decipher the Internal Revenue Code about what precisely I should reimburse my former employer?
If this employer doesn't agree with what my accountant deems I actually owe, does he have grounds for a law suit?
Anybody else had a similar experience?
Many Thanks!
Okay, here's the situation in a nutshell.
I was erroneously classified as an independent contractor by my former employee. I realized this when I was forced to pay self-employment tax for the year 2003, when, in fact, I was a very real employee of this company. I subsequently quit the company and filed an SS-8 to the IRS for 2003 and 2004. The IRS retroactively reclassified me as an employee and my employer was forced to pay the taxes that he originally didn't withold from my earnings for both 2003 and 2004.
The letter from the IRS notifying me of my reclassification also said that I was liable for my income tax and my share of FICA under IRC section 3509 1 (d) (A) and section 3101. And that it was the intent that my employer would collect it from me and remit it to the govt. And that ultimately, I was liable.
Recently I got an email from my employer claiming that I owe him, what amounts to be about, 28% of my total earnings at said company. I subsequently called the IRS helpline and wasn't able to get a whole lot of help. But the kind lady assisting me said that it seemed like the letter suggested I owe about half of what my employer is claiming I owe him.
Does this situation seem fishy?
How can I decipher the Internal Revenue Code about what precisely I should reimburse my former employer?
If this employer doesn't agree with what my accountant deems I actually owe, does he have grounds for a law suit?
Anybody else had a similar experience?
Many Thanks!