• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Federal Employee/employer dispute. Need advice.

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

happykiddo

Junior Member
What is the name of your state (only U.S. law)? Virginia

My wife works for the Department of Defense. In 2003, she was transferred within the department. During the transfer, she was overpaid (A) one pay cycle. The following month, she was paid a lump sum (B) for unused comp time. But this time, they took out the initial overpayment (A) and the taxes and gave her the rest.

Then two months later, we received a letter saying that she was paid the lump sum (B) in error and that we need to pay back the lump sum payment. Surprisingly though, they wanted the lump sum (B) and initial overpayment (A) in full. But they debited out the initial overpayment and took out the taxes before they gave her the money.

I have protested the amount stating that we will give them the correct amount but they insist that we owe the whole total. i have written over 10 times explaining it, but I get the same answer every time. I even contacted my local congressman, and he gets the same answers as well. This issue has now gone to collections and it is ruining our credit profile. How can I make them stop? What can I do?
 


pattytx

Senior Member
Did all this occur in 2010, or in a previous year?

They didn't have to respond to YOU and maybe that's what's pissing them off. YOU were not the employee.
 

FlyingRon

Senior Member
Chances are you may be responsible for at least some of the taxes. The withheld taxes were refunded to you by the IRS if the W-2 reflected the revised amount.

Good luck, I had a similar run in with government travel that went on for months after I left government service (We went to dock your pay but we found out you didn't work here anymore...).
 

pattytx

Senior Member
Chances are you may be responsible for at least some of the taxes. The withheld taxes were refunded to you by the IRS if the W-2 reflected the revised amount.
I believe, at this point, ALL of them. If the overpayment was not repaid in the same year it occurred, it stays on the W-2 until it is repaid, then a W-2C is issued by the employer.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top