I used to work for an IT agency and a year ago this company had filed chap 11 and was under investigation by IRS for some tax problems. I left this company because I moved here in Houston. Now I received a letter from IRS demanding me to pay a little over 500K. They told me that my previous company had listed me as one of the owners/directors. This is driving me insane. Any help is appreciated. Thanks.
I know very little to nothing about accounting but if you're considered an owner and the company wasn't incorporated (and instead was a limited liability corporation) then you pay the back-taxes as opposed to the company and only the company being held liable. Better figure out your status in the company (as an owner) and prove you weren't. FYI there's an incentive for the "real owners" to list as many people as possible as an owner in order to divide up the tax burden. But if you had any stock in the company, you're an owner. Take what I say with a grain of salt, I'm not an accountant.
You are going to have to prove you were only an employee. But why would they list you as an owner? Sounds like some shady stuff going on.
gather all your previous paystubs.. they might serve as evidence that you were only an employee then consult with a tax atty
Easiest solution- They say "Pay us 500,000.00!" You say "No way." Then they go "Ugh!! OMG!!!" Then you're all TRADE ALSTON!!@juan
Even with COLA, half a million dollars exceeds my "seek advice from basketball BBS" threshold. I'd seriously consider getting professional legal advice.
Exactly, sounds like your going to need to get all your paperwork together and prove that you were an owner. Sucks but I'd contact the IRS ASAP and see what information they are going to need from you to get in the free and clear or else they'll continue to pursue
Holy crap. Time to lawyer up. Gather any and all documentation from that job. Any chance you still have a copy of your contract (if there was one)? Sounds really shady, and this company is making everyone else take the fall. Looks like you're going to have to convince the IRS and put the onus on your former employer to prove you were part-owner.
Thanks for all your help. I contacted an acct and tol dme that I need to fill up some document for this. I don't know exactly what he meant, he asked me to see him in person. I hope fee is not too expensive. I got all the payslips since 2000 with me ready. Good thing I didn't throw them away. So it's not really an option to sue a company that's bankcrupt. Makes sense. I just want to meet whoever implicated me and give him a wild kiss of my fist.
[Disclaimer]This is coming from a lawyer.[/Disclaimer] You need a tax lawyer, not an accountant. Get one ASAP.
Only guilty people hire lawyers. . I think the paychecks, bank statements and W2 are good enough evidence to clear myself up from this mess. The truth will prevail.
