Would i have to pay back taxes on a uncashed bonus check?

[gumbo805]

In short, my company was bought out. I signed a letter of intent to stay with the new company for minimum of 14 months and I received a retention bonus check for $5000 minus taxes withheld, but if i leave before the the time allotted then I would need to pay the bonus back. I quit 3 months later and now they want the bonus back. I never cashed the check, they want the tax money back. Can they take the money back from the taxes paid to the government?

[TaxGuyBill]

Are you saying that you received the check in 2017, and they want repayment in 2017?  Or did you receive the check in a prior year?

[Carl]

I see where you're going TGBill. I'd only repay the whole amount, if the bonus payment was included on my W-2. Then when filing the tax return one can show the payback of the full amount (which would include the withheld taxes) and the withheld taxes would then be included in the refund if any is due the tax filer, or it would reduce the tax liability of the taxpayer if they owed the IRS.
But if both transactions occurred in the same year, I'd want something to convince me it's going to be included in my W-2, before I pay it back in full (meaning including the withheld taxes).

[Carl]

YOu may need legal advice. But if you never cashed the check, then you never received the money. One thing that pops into my mind that I would do were I in your shoes, is to write the word VOID across the face of the check *AND* across the back of the check, then make a copy of both sides of the check and return the original check back to them by sending it certified mail, return receipt "REQUIRED". (not requested).

Now as for the legality of what I suggest, I can't say one way or the other, as I'm not a lawyer.

[gumbo805]

Thanks for the suggestions. It is all taken care of. I returned the check via certified mail. They accepted and will take out any taxes from my W-2. This was a check from 2017 and I returned it in 2017.

Thanks again.