What is the name of your state? California
I recently sold some stock options when my company got acquired and the brokerage firm took care of the taxes based on the information that the acquiring company provided to them. A few days ago, I received the email below? Can they make me pay this back to them even though it was their mistake and not mine?
Theresa,
A reconciliation of stock option exercise transactions and T payroll records indicates that the tax on your May 2007 stock exercise transaction(s) was under-withheld by $200.05. After researching the error, we determined that the required California SDI tax was not withheld from this exercise. As a result, the additional amount that should have been withheld was refunded to you as part of your net proceeds. Due to system limitations, Smith Barney was unable to withhold SDI Tax at the time of your exercise.
T is required to collect the additional taxes due on this transaction. Note that the cap for CA SDI withholding for CY2007 is $500.33.
In order to rectify this error, we must ask that you please send a personal check to T in the amount $200.05. T payroll would then post this payment of taxes to your year-to-date taxes withheld for 2007 W-2 reporting. Please make this out to T Networks and send it to:
T Networks
Attn:
1234 Villa Street
Mountain View, CA 94041
We apologize for any inconvenience this causes you. Should you have any questions please contact M&A Stock.
Sincerely,
M Stock Services
I recently sold some stock options when my company got acquired and the brokerage firm took care of the taxes based on the information that the acquiring company provided to them. A few days ago, I received the email below? Can they make me pay this back to them even though it was their mistake and not mine?
Theresa,
A reconciliation of stock option exercise transactions and T payroll records indicates that the tax on your May 2007 stock exercise transaction(s) was under-withheld by $200.05. After researching the error, we determined that the required California SDI tax was not withheld from this exercise. As a result, the additional amount that should have been withheld was refunded to you as part of your net proceeds. Due to system limitations, Smith Barney was unable to withhold SDI Tax at the time of your exercise.
T is required to collect the additional taxes due on this transaction. Note that the cap for CA SDI withholding for CY2007 is $500.33.
In order to rectify this error, we must ask that you please send a personal check to T in the amount $200.05. T payroll would then post this payment of taxes to your year-to-date taxes withheld for 2007 W-2 reporting. Please make this out to T Networks and send it to:
T Networks
Attn:
1234 Villa Street
Mountain View, CA 94041
We apologize for any inconvenience this causes you. Should you have any questions please contact M&A Stock.
Sincerely,
M Stock Services