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#3
04-07-2004, 10:05 AM
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 Re: How should this be handled? - quote - > > > > Taxpayer had a salary of $50000. For about half the weeks
He was clearly paid more than the W-2 indicates.> > > > of 2003, he got a normal paycheck with about 1/3 of the > > > > gross going to FIT, SS, and state income tax. The other > > > > weeks he received a company check for the same net amount. > > > > > > > Now he gets his W2 and it shows only the income and tax > > > > withholding thatwent through the payroll system. His > > > > supposition being that the 1/3 that was supposed to be going > > > > for taxes on the balance instead went in his employer's > > > > pocket. > > Does that mean you'd show $50K of total wages, with $16K > > withheld? How would you explain the discrepancy with the W2? > There is no "discrepancy." The W-2 is clearly wrong. He > was paid and an amount withheld far beyond that which the > W-2 indicates. - quote - > > Or would you show $42K of total wages, with only $8K withheld?
I don't see how you prove that. He received $34K in checks,> I don't see how that's possible. He was compensated $50k. and was shown withholding of $8K. There _should_ have been an additional $8K of withholding, but I'd hate to have to prove it _happened_. (In fact, given the posted facts, I'd bet that the government received only $8K as withheld income from the OP's client.) Seth << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
04-05-2004, 09:48 PM
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| Re: How should this be handled? Seth Breidbart wrote: - quote - > D. Stussy <kd6lvw[at]kd6lvw.ampr.org> wrote:
Or any other case where an employer fails to provide a W-2> > Bob B wrote: > > > Taxpayer had a salary of $50000. For about half the weeks > > > of 2003, he got a normal paycheck with about 1/3 of the > > > gross going to FIT, SS, and state income tax. The other > > > weeks he received a company check for the same net amount. > > > > > Now he gets his W2 and it shows only the income and tax > > > withholding thatwent through the payroll system. His > > > supposition being that the 1/3 that was supposed to be going > > > for taxes on the balance instead went in his employer's > > > pocket. > > > > > How would you file this tax payer and what would you suggest > > > he do next? > > Normally. > What's that, in this case? that covers the entire year's worth of [taxable] compesnation. - quote - > In rough numbers: the W2 showed $25K total wages, with about
There is no "discrepancy." The W-2 is clearly wrong. He> $8K withheld. He also received an additional $17K in > non-payroll checks. > > I would consider the amounts that the employer withheld but > > not turned over to the government as withheld as far as the > > employee was concerned. It's the government's problem to > > pursue the employer for failure to deposit. > Does that mean you'd show $50K of total wages, with $16K > withheld? How would you explain the discrepancy with the W2? was paid and an amount withheld far beyond that which the W-2 indicates. - quote - > Or would you show $42K of total wages, with only $8K withheld?
I don't see how that's possible. He was compensated $50k.<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
04-05-2004, 08:10 PM
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| Re: How should this be handled? "D. Stussy" <kd6lvw[at]bde-arc.ampr.org> wrote: - quote - > Bob B wrote:
If the employer failed to deposit the amount of tax that was> > Taxpayer had a salary of $50000. For about half the weeks > > of 2003, he got a normal paycheck with about 1/3 of the > > gross going to FIT, SS, and state income tax. The other > > weeks he received a company check for the same net amount. > > > Now he gets his W2 and it shows only the income and tax > > withholding thatwent through the payroll system. His > > supposition being that the 1/3 that was supposed to be going > > for taxes on the balance instead went in his employer's > > pocket. > > > How would you file this tax payer and what would you suggest > > he do next? > Normally. > I would consider the amounts that the employer withheld but > not turned over to the government as withheld as far as the > employee was concerned. It's the government's problem to > pursue the employer for failure to deposit. witheld, the IRS would be very interested in going after the employer to get the money. If the tax was witheld and not deposited, the IRS would get the money from the employer. If the money was not paid if a very short time period, the IRS would seize the employer's assets. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-02-2004, 10:59 PM
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| Re: How should this be handled? D. Stussy <kd6lvw[at]kd6lvw.ampr.org> wrote: - quote - > Bob B wrote:
What's that, in this case?> > Taxpayer had a salary of $50000. For about half the weeks > > of 2003, he got a normal paycheck with about 1/3 of the > > gross going to FIT, SS, and state income tax. The other > > weeks he received a company check for the same net amount. > > > Now he gets his W2 and it shows only the income and tax > > withholding thatwent through the payroll system. His > > supposition being that the 1/3 that was supposed to be going > > for taxes on the balance instead went in his employer's > > pocket. > > > How would you file this tax payer and what would you suggest > > he do next? > Normally. In rough numbers: the W2 showed $25K total wages, with about $8K withheld. He also received an additional $17K in non-payroll checks. - quote - > I would consider the amounts that the employer withheld but
Does that mean you'd show $50K of total wages, with $16K> not turned over to the government as withheld as far as the > employee was concerned. It's the government's problem to > pursue the employer for failure to deposit. withheld? How would you explain the discrepancy with the W2? Or would you show $42K of total wages, with only $8K withheld? Seth << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
04-01-2004, 02:07 PM
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| Re: How should this be handled? Bob B wrote: - quote - > Taxpayer had a salary of $50000. For about half the weeks
Normally.> of 2003, he got a normal paycheck with about 1/3 of the > gross going to FIT, SS, and state income tax. The other > weeks he received a company check for the same net amount. > Now he gets his W2 and it shows only the income and tax > withholding thatwent through the payroll system. His > supposition being that the 1/3 that was supposed to be going > for taxes on the balance instead went in his employer's > pocket. > How would you file this tax payer and what would you suggest > he do next? I would consider the amounts that the employer withheld but not turned over to the government as withheld as far as the employee was concerned. It's the government's problem to pursue the employer for failure to deposit. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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