I filed my state and federal 2013 in 2017 within the 3-year deadline. My federal refund was large, 5 figures, due to an electric vehicle credit.
I had a situation with my former employer who gave me a signing bonus of $10,000. Taxes were withheld and the check I received was for $5,612.00. Neither the signing bonus nor the taxes were reported on my W-2. Is wage theft as sexy as tree law?
I spent about a year emailing back and forth with people in the company and they seem unable or unwilling to correct the situation. I contacted the Department of Labor Wage and Hour Division, they said they don’t deal with things like this. I contacted the IRS, they said that they don’t take reports about tax fraud (seriously). I contacted several other federal and state resources as recommended by the various departments I spoke with. Eventually, I ended up in a loop of referrals with every department directing me to a department that already said they wouldn’t assist.
I gave up on the company fixing this and lost all faith in government enforcement of the law. I filed my taxes anyway so I wouldn’t miss the statute of limitations on claiming a refund. Under the advice of the IRS, I
- filed my taxes using a 1040,
- a 4852 Substitute for Form W-2 that reported only the bonus at the full $10,000 and listed the various withholding amounts that I was provided with using an online calculator,
- an 8936 Electric Drive Motor Vehicle Credit,
- a 2106-EZ Unreimbursed employee business expenses (professional expenses, unrelated to the bonus),
- a 4562 Depreciation and Amortization (also unrelated to the bonus),
- a letter describing the situation, a image of the cancelled bonus check, calculations showing how I estimated the withholdings on the 4852, a copy of my employment offer that stated the signing bonus amount, proof of employment dates, and a printout from the online calculator that showed the estimated withholdings that matched the exact amount that was withheld,
- and, mailed to a different address, an 843 Claim for Refund and Request for Abatement.
Everything was mailed certified mail with return receipt. The return took many months to show up in the IRS system. Then I was not processed for a long time and IRS agents said they needed more time. Then after about a year, without notice, the IRS closed the file due to them claiming the taxes were filed many months past the SoL.
I remailed everything from above with an additional second letter now explaining why I was mailing them in again, the certified mail proof of mailing and the proof of delivery return receipt from the first submission of the taxes, the certified mail proof of mailing and the proof of delivery return receipt from the first submission of the 843, and a copy of the 843. The IRS agreed that I had submitted the taxes timely and started to process them.
Months went by and every several months I would receive a letter stating that the IRS needs more time to process the return. It’s now been about a year since the resubmission and about 2.5 years since the mailing of the original submission and I still don’t have my refund.
The IRS says to keep waiting. Nothing appears to be happening with my return. The IRS won’t provide any details if the delay is because they are finally pursuing the company that.
- I’m unsure if I will run into another timelimit that will allow the IRS to never issue my refund.
- I’m unsure if I should file a form or letter to help expedite my refund.
- I’m unsure if I should be contacting a CPA or attorney to handle this matter.
- I have been issued a state refund but the refund amount was lowered due to the FTB removing the bonus paid and taxes withheld from the amount, should I contest this?