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Financial Planning / Tax Strategies
|Subject: Social security and payroll tax witholding||Date: 4/4/2013 9:37 AM|
|Author: hotpepperaddict||Number: 118264 of 121095|
I initially posted this on the 'ask a foolish question' board. Someone there mentioned this might be a better place. Any insight would be helpful. Mark
Following is an excerpt from a newspaper article
"According to investigators, (the employer) stopped paying over payroll taxes (income taxes withheld and FICA) withheld from employees' wages as well as the matching portion of FICA totalling about $4.7 million from the IRS."
This is a real scenario and my employer. This went on for about 6 years from 2003 to 2009.
One of the comments in the article mentioned 2 things. 1) that the fed gov't. could come after us as employees to collect taxes that should have been paid, and 2) that our social security benefits will be reduced by the amount that wasn't paid in.
Are these correct statements? I called social security yesterday and the person I talked to was no help. The case doesn't go to court until
Sept. 10. Should I be getting a lawyer? What are the repercussions if I do nothing?
The article states that she faces up to 5 years in jail and a $250,000 fine. WHAT? A $250K fine in exchange for $4.7M!!!!!! Her reason for not sending it in as quoted in the paper was "The IRS wasn't knocking down my door for it."
If this is going to affect my social security benefits, (and the rest of us who worked there during that time) wouldn't there be a way to include in her fines a way to repay the money that should be in our accounts? Class action suit?
I know you probably can't give legal advice in here, but some suggestions as to where I might find some of these answers would be helpful.
Thanks in advance for any thoughts or suggestions.
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