Any lawyers here? If so, I have a question.
 

So I filed my taxes today and got a huge surprise. I owe the Federal Government money. Turns out, my wife's employer (Oakwood Preschool) some how changed her dependents in 2012 to 10 from 0 without her consent. Since she didn't make much to begin with we didn't really even notice the difference in her checks. And last year we got a pretty good tax return. So there were no real red flags till this year. Now that we owe the government, what can we do to her employer since they obviously had to break some federal law?

Re: Any lawyers here? If so, I have a question.
 

She should have a W-4 on file with her filing status, dependents, exemptions etc.. that is where you should start. If her withholding's do not match with her W-4 then you could have a case. So did you, or her, not notice that she was no longer having any federal w/h being taken out?

Re: Any lawyers here? If so, I have a question.
 

FYI...people in general should never trust completely in their employer, or their employer's payroll service to prepare their payroll correctly very single time. Employers and payroll services make mistakes all the time and the best way to keep it from biting you in the ass is to review every pay stub you receive and make sure everything looks kosher...if you do not receive a pay stub you should request one.

Re: Any lawyers here? If so, I have a question.
 

Two things:

Gong from 10 to 0 would make you have more withheld, so you should be getting more back - maybe it was the other way around?

Secondly, the fact you owe money now means you paid in less to the system during the year. You didn't "lose" anything. So I'm not sure what you would sue for.




EDIT: Misread the first part so I retract my first thing. But not my second :-)

Re: Any lawyers here? If so, I have a question.
 

Doesn't matter. You owe the taxes. In odd extenuating circumstances the IRS may let yo set up a payment plan but you are the one on the hook for it.

Re: Any lawyers here? If so, I have a question.
 

Actually anyone can request a payment plan but the fees and interest involved make it not worthwhile unless you're talking serious :mrgreen:

Re: Any lawyers here? If so, I have a question.
 

What is this thing of which you speak? Taxes?

Re: Any lawyers here? If so, I have a question.
 

Taxes are a pain in the bum. That's why I have a couple accountants, lol.

Re: Any lawyers here? If so, I have a question.
 

I'm not a lawyer, but I did stay at a Holiday Inn Express last night !
(It had to be done)

Re: Any lawyers here? If so, I have a question.
 

So, is there any poster that answered the question that is an attorney?

Re: Any lawyers here? If so, I have a question.
 

Im not a lawyer, but I did stay at a Holiday Inn Express last night

Re: Any lawyers here? If so, I have a question.
 

I feel like you need an accountants help more than a lawyers

Re: Any lawyers here? If so, I have a question.
 

I'll chime in as both a CPA and an attorney. Won't comment on their changing the W-4 on their own, though... BUT, if her exemptions went from 0-10, then, yes, less would be withheld. No clue why they'd do that, though. But, hey, if you don't owe any penalty with it, then you got to have use of that money all year instead of the government having it.

Another reason you might owe more... check your income as compared to prior year. Check your deductions as compared to prior. Did you leave anything out? Are you being limited whereas you weren't before? Have a kid turn 17? If so, bye bye child tax $1000 credit for that kid.

LOTS of reasons why you'd owe this year over last, most, if not all of which, have nothing to do with that change to her W-4.

Re: Any lawyers here? If so, I have a question.
 

Good points - one that will affect quite a few for 2013 is that unless you're over 65 you now have to subtract 10% of your AGI from your medical expenses (had been 7.5% for a loooong time beforehand).

Oh and if you're over 65 enjoy your extra 2.5% while you can - starting in 2016 you'll also have to take off 10% :-x

Re: Any lawyers here? If so, I have a question.
 

one year i thought that i owed for the first time, then i figured out that i boogered up the return

Re: Any lawyers here? If so, I have a question.
 

No offense but whose fault is it really? You owe the money...pay it! Did you not notice an increase in take home percentage when the entire country is having more money taken out if their checks every day? I can see where you might be annoyed at her employer...but go ahead and sue them/get them in trouble and you won't have to worry about withholding I the future. Personal responsibility is a thing of the past...always someone else's fault.

I am not a lawyer but I pay my fair share of taxes and so should everyone else

Re: Any lawyers here? If so, I have a question.
 

Here's what you do; just give the IRS a buzz. Let whoever answers the phone know that, with the Feds unlimited ability to "print" new money, you don't see why the government needs to collect taxes in the first place. And whatever money you may owe, you're positive the Fed can "create" it and have it "injected" in no time. They'll totally understand.

Re: Any lawyers here? If so, I have a question.
 

If you feel very strongly, you can refuse to pay taxes and argue that the income taxes are unconstitutional. LINK. However, if you choose this option, you might end up in jail because the federal government does not like anyone not paying taxes no matter how meritorious is your constitutional argument you don't owe them.

The other advice I can offer you is now that you know you owe the taxes, you should wait until April 15 to file.

PS: You probably also owe the State of SC money assuming you live here.

We had a similar experience. This was caused by 1) our family's annual taxes increased; and/or 2) the government reduced the amount of withholdings from people's paychecks as a Keynesian attempt to "stimulate" the economy.

Yes, I am a lawyer. No, I don't know what in the hell I'm talking about any more than any lay person because I am not a tax lawyer. Tax law is a highly specialized field, and it is boring as h@ll.

Re: Any lawyers here? If so, I have a question.
 

Any contractors on here? I'd like a free house built. Any manufacturers? I'd like free products.

Re: Any lawyers here? If so, I have a question.
 

This is what I was thinking of when I first saw the thread. Hilarious.

"Hey, are you a professional <insert job title>? Could you provide your services free of charge to me in this thread? Thanks!"

Umm, how about no.