Accounting, Payroll & Pension Issues/no federal taxes were taken out!!!!

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Expert: - 3/31/2008


Question
My employer never too out federal taxes from my wages. I graduated high school in 2007 and then tried to change my status from exempt...several times. It never went into effect so i didn't bother about it. Now this year when i went to file my taxes the preparer says that i owe 1700 to the IRS. How do i handle this situation now? I do not have money to pay the irs! I a only 19 and working fast food.

Answer
First of all 1700.00 seems a lot to pay if you were working fast food. How much did you make in 2007?

You should have demanded that the status be changed and kept after your company until it did.

Unfortunately you will owe the IRS taxes since now were taken out of your check.

Your best bet now is to call the IRS and talk to them and set up some type of repayment plan to pay off your taxes in installments.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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