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  • 1.  a non related taxpayer where the refund went to the employer

    Platinum Most Valuable Member
    Posted 06-06-2023 03:47 PM

    A client just called and said a former employee's apparent tax refunds (both state and federal) were credited to the client's business account.  Anybody ever see this before? 

    It looks like it's from the governments and not the payroll service

    The client wants to wait for the employee to call, but that could take months.



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    Michael Rubinstein
    Michael D. Rubinstein CPA, PC
    North Bellmore NY
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  • 2.  RE: a non related taxpayer where the refund went to the employer

    Bronze Most Valuable Member
    Posted 06-06-2023 04:51 PM

    Sounds too weird to happen accidentally.  My guess is the employer, for whatever reason, let the employee pay his balance of 2021 taxes from his business account.  The tax preparer used the same bank account for receiving the employee's 2022 refunds and thus it was deposited in your client's business account rather than the former employee's bank account.  The former employee will figure it out, with the tax preparer's help, sooner than later, unless the former employee doesn't inquire why his/her refund is taking so long.



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    James Kalaitzis
    JAMES KALAITZIS, CPA, PC
    Commack NY
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  • 3.  RE: a non related taxpayer where the refund went to the employer

    Platinum Most Valuable Member
    Posted 06-07-2023 09:05 AM

    No James, the employer did not let the former employee pay the tax from the employer's account.

     

    Sent from Mail for Windows

     






  • 4.  RE: a non related taxpayer where the refund went to the employer

    Posted 06-07-2023 08:11 AM

    I am not sure about NY state laws, but waiting would (IMHO) amount to "theft" (maybe theft by deception). A legitimate, engaged employer would be righteous and send the funds to the Ee, or at least return funds to the source (State; Federal) & let them sort out. But, keeping the money, waiting for some 3rd party inquiry, "Not Cool."



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    Robert Gaines, CPA
    ROBERT N. GAINES, CPA
    Temple TX
    Robert
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