I received a notice from the FTB that I owed state taxes for 2005, when, in fact, I actually am due a refund. After contacting the FTB, it turns out that my former employer did not submit any payroll tax to the FTB, even though he deducted this from my pay. Unfortunately, my former employer also refused to provide me with pay stubs detailing all of the deductions from my pay. Without them, the FTB still expects me to pay my tax.

My questions are:

- What recourse do I have to prove to the FTB that my taxes were actually deducted from my pay?

- I have filed a complaint against this company with DLSC to get my last month's pay. Should I file another complaint with them about this?

-Is there any way to check if any of the other deductions (Fed tax, FICA, etc) were paid properly?

- What about for deductions for this year, 2006 - can I get that information as well? I don't want to go through this again next year.

I have filed a complaint with EED against this employer as an "underground operation" as they (EED) suggested, but I don't know if this will help in any way with proving to the FTB that I am actually owed a refund.

Any and all help will be greatly appreciated.

ken

- What recourse do I have to prove to the FTB that my taxes were actually deducted from my pay?

What paper did you file with your taxes? w2?

Is there any way to check if any of the other deductions (Fed tax, FICA, etc) were paid properly?
I would start with the IRS. Would also contact the Social Security Administration.

Although I'm not at all sure the IRS will tell you.

Although I'm not at all sure the IRS will tell you.

Actually, I spoke with the IRS today. Although they could not tell me anything about this year (2006), they did state that my former employer has not filed a 2005 W2 with them, meaning that he (my ex-employer) never forwarded my deductions to the feds as well.

What is interesting, at least to me, is that the IRS used the information in the W2 that I filed with my 2005 return and gave me my refund, even though they had no information from the employer (they did say that since there was a mismatch - a W2 from the employee but not from the employer - their computers would kick out the return to be investigated, only if the amounts involved were large enough). This is in stark contrast to the CA FTB that used the AGI from my tax return and expected to find the tax for that already deposited with them, and since it wasn't, came back to me looking for the money.

I have filed a fraud complaint with the EED about this company, hoping that eventually the money I had deducted from my pay would get to the appropriate place, and I will eventually get my state refund.

Is it possible for me to bring a civil action against the company about this?


ken

I don't think YOU can, but the IRS and the FTB certainly can. It might be worth consulting with a tax attorney, however. You can get a relatively inexpensive initial consultation with an attorney by contacting the Lawyer's Referral Service of the nearest American Bar Assoc. chapter.

Is it possible for me to bring a civil action against the company about this?


ken

If you have enough money to pay your lawyer's hourly rate and can shop for the right judge, you can probably sue your former employer for causing the fall of Roman Empire. However, if your employer is sufficently broke or crazy to not pay withheld deposits to IRS and state governments (who can put him/her in jail for a very long time, sieze their house, etc. ) it is very unlikely that your former employer will find any actions of yours particularly scary.

Patty has the right idea. Get the government going after your former employer and not you. Then walk away. You really do not want to be near IRS (or any other large predator) when there is blood in the water. Your only real issue is to move the blame for taxes not deposited away from you and on to your former employer. If you accomplish that, you are in good shape.

Patty has the right idea. Get the government going after your former employer and not you. Then walk away. You really do not want to be near IRS (or any other large predator) when there is blood in the water. Your only real issue is to move the blame for taxes not deposited away from you and on to your former employer. If you accomplish that, you are in good shape.

This is what I have done so far. Unfortunately, neither the IRS nor the CA FTB would take the initiative and begin an investigation. I had to file a fraud complaint with EDD for that to happen.

My problem is that this employer already deducted my payroll taxes, etc. from my gross pay. So not only am I liable - at least to the state - for those taxes, but the amount withheld was considerably more than those taxes, ie I am due a sizeable refund. So I have a vested interest in getting this issue resolved quickly.

On a side note: this company is a startup with only one officer, the president. And he is the one that is responsible for payroll/bookkeeping etc. Even though this is a corporation, is there any way to go after him personally, as opposed to the corporation? Maybe the board of directors? The company itself does not have a lot of real assets. And considering I have at least one other legal judgement pending against the company, I wouldn't be surprised if this guy tried to transfer any remaining cash out of the company.

If I sound vindictive, well, I'm sorry, but I am. This job turned into employment from hell for me. I wouldn't mind seeing this guy thrown in jail, ala Ken Lay, but, really, I just want my money that is due me so I can get on with my life.

Thanks though for all the help.

ken