I filed an 8919 and SS-8 against the company after I was fired for pointing out misclassification and the IRS sided with me. They forced the company to convert their contractors into employees and issue corrected W2s to all the affected people for the duration of the misclassification.
They've been in contact with me since and were required to pay the IRS the employee and employer FICA taxes. This resulted in a situation where they are allowed to have the employees file amended returns with the newly issued W2s and collect half of the money returned (their portion of the FICA taxes paid) from employees directly. The explanation being that the IRS will refund the entirety of the taxes paid (both the employee and employer's FICA taxes paid by the company to correct the error) and the company is entitled to half of the returned income.
The problem is that they are trying to collect half of the money they paid in for 2017, which they only issued W2s for and no 1099s. So essentially the employees paid their taxes as any employees would and will not be refunded the FICA tax the employer paid to the IRS. They tried to collect that money from me for 2017 and now they are taking that money out of the pay of their employees to recoup their payment, when they should be requesting a refund from the IRS directly. Essentially they are taking money out of the paychecks of employees unlawfully as far as I understand it.
I've contacted the IRS directly and confirmed that I do not have any reason to pay them the amount they requested from me for 2017 (because I filed with the W2 they gave me) but they are collecting that money from current employees by taking it out of their paychecks.
My question is, how do I report an attempt to recoup taxes paid from employees that don't actually owe them that money? As I understand it they should be recouping that money from the IRS directly if they paid that money to the IRS, and not from the employees paychecks because they won't be receiving the companies payment back from the IRS in their return since they filed regular W2s for 2017.
Submitted May 03, 2018 at 04:06AM by Vandill https://ift.tt/2rgiwb6
