Discussion:Wage Garnishment Notice from IRS--"Employee" Paid off Books!
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| Revision as of 22:13, 31 August 2009 Sandy L (Talk | contribs) (CrowJD: Thanks) ← Previous diff |
Revision as of 22:28, 31 August 2009 Irsfixer (Talk | contribs) (You do not have) Next diff → |
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| Am also researching the state law re: the potential exemption you cite.}} | Am also researching the state law re: the potential exemption you cite.}} | ||
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| + | {{ForumReplyPost|UserID=Irsfixer|Date=31 August 2009|Text=You do not have enough information to make a decision or have us guess at it. We know what we want the answer to be. As for peril - I see no danger in the immediate future (two or three weeks). The IRS does not follow these things closely in the short run. | ||
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| + | If he really is an employee - get him on the books and garnish. If he is a contractor, the levy affects one payment at the most. Go do homework.}} | ||
Revision as of 22:28, 31 August 2009
Discussion Forum Index --> Basic Tax Questions --> Wage Garnishment Notice from IRS--"Employee" Paid off Books!
Discussion Forum Index --> Tax Questions --> Wage Garnishment Notice from IRS--"Employee" Paid off Books!
| 31 August 2009 | |
| My client received a notice from the IRS today stating that it should withhold x-amount from an employee's wages. The issue? The man the IRS cited isn't on the books as either an employee or a vendor. Why?
My client just confessed that the person has been paid cash off the books for several months. I don't even know the man, as he comes in a couple times a week to do repairs and maintenance for the client. So, how in the heck did the IRS know he "works" for my client? Regardless, I am not a CPA, but I suppose the only thing I can suggest to the client is--if the man continues doing repairs and maint. for my client, then the man should be properly setup as an employee and paid wages accordingly. Naturally, the wages will then be garnished. We're not talking material amounts of money, I would imagine, although I cannot say in being out of the loop. From what I just learned, the man is supervised by my client in completing tasks, etc., specified by the client. As such, I would definitely say he's an employee--not a vendor. Anyone ever in this boat? Never a dull day... | |
| 31 August 2009 | |
| Does the guy do work for anyone else or is this his sole support of his family? | |
Death&Taxes (talk|edits) said: | 31 August 2009 |
| "My client just confessed that the person has been paid cash off the books for several months." This begs the question, 'was he paid on the books before that?' Perhaps he doesn't bring a lot to the table. Maybe he called IRS when he received a Final Notice and they asked where he worked | |
| 31 August 2009 | |
| Irsfixer: I am not certain.
Death&Taxes: I'm looking at the books right now--doesn't appear that he was ever paid on the books; neither as an employee nor as a vendor. I even looked up online the quarterly wage reports my client submitted to NC back to 2007--his name wasn't included on any of them. Did this in case he was reported and the client changed the books for some reason. Yes, you're prob correct. Bottom line being that my client must comply with the IRS notice. As such, my client must pay applicable wages going forward--there's no other option. I will not allow the client to pay the guy under the table and tell the IRS that the man isn't employed. | |
| 31 August 2009 | |
| "Any property you hold...... It's not only wages that can be garnished.
Let's say a hospital owes me money. I get a judgment against them. I can have the sheriff serve garnishments on the patients in the hospital to pay me MY share of what they owe the hospital. | |
| 31 August 2009 | |
| You can't see the forest for the trees. Your client should treat the levy on this delinquent taxpayer the same as one on any other person on the books or off. He ignores it at his peril. | |
| 31 August 2009 | |
| As to what I think Irsfixer is driving at, there is some exemption amount, i.e. some amount of
"wages" or property exempt from garnishment, usually defined by state law. However, I defer to Irsfixer, David, Mscash and others who have had more experience with IRS and garnishments. One thing for sure: carefully read over the paperwork. It can be a revelation! | |
| 31 August 2009 | |
| CrowJD: Thanks for the advice--will do. I will have a chance to review the paperwork myself in the morn.
Am also researching the state law re: the potential exemption you cite. | |
| 31 August 2009 | |
| You do not have enough information to make a decision or have us guess at it. We know what we want the answer to be. As for peril - I see no danger in the immediate future (two or three weeks). The IRS does not follow these things closely in the short run.
If he really is an employee - get him on the books and garnish. If he is a contractor, the levy affects one payment at the most. Go do homework. | |
