If I have already paid taxes on it and I can't go back and change my taxes to get the credit, then I would negotiate with the company I owed the money to and get them to reduce the amount owed to them by the additional taxes I had to pay on that amount. But since it is likely that I only paid a very small amount of taxes (keeping in mind that he was only an intern for the summer and likely didn't make enough to put him into a very high tax rate), then I would still owe the money and if they insisted, I would pay all of it back.
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