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Are you referring to submitting your withholding to the US Treasury? Do you have withholding reported in box 2 of your W-2? The IRS collects payment of withheld taxes on anywhere from a quarterly to weekly basis depending on the size of the company. If the employer gave you a W-2 that is correctly reported, the IRS will reconcile the information with payments received from the employer. The employer is required to submit a W-3, which aggregates all of the W-2 information, and copies of the W-2 to the IRS.
Yes, sorry for the confusion, but that’s what I meant to ask. The reason for this is because earlier today I found out from the state that the company hasn’t paid the state taxes for the year. This resulted in my state refund of $300 to end up being only $70. My co-workers and my federal returns are being audited for “the numbers not matching up” (which is going to take 60 days) and I’m trying to find out if this is why before I start accusing them.
The only people who would have that information is the IRS and possibly your state taxing agency.
If you have amount listed on your W-2 Form that shows the withholdings, make sure you save that so you can provide proof of your payments.
You may also want to print out and keep your last few paychecks for support.
If the taxing authorities send you a notice of adjustment, you would want to follow the instructions on the notice and send them copies of your supporting documentation indicating the money was withheld.
I have my documentation in order.
Isn’t this illegal? The way I’m looking at it is at least half of that money should be returned to me or is that incorrect.
Unfortunately, not every business pays their taxes like they should. The IRS has to spend more time and money tracking down people that don't pay.
If the company is behind on paying their taxes, it is sadly normal that they kept taking it from you anyway. The business will be subject to both civil and criminal penalties.
If they did withhold from you and not pay the taxes, the IRS will sue them. You can sue them as well and will win.You are not responsible for them not paying taxes. So you are entitled to your refund, as long as you can prove that you are entitled. The IRS will pursue them for those taxes.
The IRS strongly encourages employees to report any concerns they have that their employer is failing to properly withhold and pay federal income and employment taxes. You can call the IRS at 800-829-1040 or report suspected tax fraud by calling 800-829-0433.
Related links:
Employer and Employee Responsibilities - Employment Tax ...
Businesses with Employees | Internal Revenue Service
Would I have to hire my own attorney and pursue them?
or can I hop on the coattails of the IRS and go about it through them?
Sorry, I don't know anymore. Honestly, the companies are often in rough financial shape. Even if you won, you may not get any money. I would let the IRS go first and see what happens. Good luck!
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