Employer forcibly asked for the IT refund check

Hi,

My previously employer used to file my income tax return (both federal and state) on my behalf. Each year citing some company policy, they used to ask us to sign & return the income tax refund check s to them.

Because of fear of loss of employment, I used to follow the order. However, I have kept copies of their return request letter and the checks.

Wish to know, if this is violates any law and can I take any legal action against them. This incident happened in the time period of 2003 – 2006 when I was on L1A visa, which is for intra-company transfers.

Please guide.

Thanks with regards,
Prem

See an attorney specializing in tax law or at least an IRS enrolled agent. Now.

You are kidding. Your employer filed your tax returns for you and convinced you and others to sign over your refund checks? I'm with Patricia get a tax lawyer to grill him.

Just for curiosity's sake, the employer wasn't paying the income tax on your behalf without deducting it, was he?

We used to get monthly payslip from employer and IT tax deductions used to appear on them.

So to answer your question, they used to say that, they are paying our income tax but do you think this is really possible in US. Aren't income tax and income tax refunds both are part of salary and is for the individual.

It depends on the agreement. I've managed tax equalization plans for US residents working in other countries. If we paid the country's income tax on behalf of the employee, any additional tax was also our responsibility to pay but, likewise, any refund (since we paid it in the first place) was ours.

If I may, can I suggest you use the phrase "income tax" in any future posts? In the US, "IT" usually refers to Information Technology, and I get momentarily confused every time I see this subject line. Thank you.