I have worked as a contractor for the cable company in Michigan for about 2 years now. We have always paid taxes at the end of the year when we file using a 1099 form. Back in June our job signed on with another contractor so we were a Contractor of a Contractor for the cable company. So we paid taxes and filled out a w-4. So my taxes were withheld and it seemed like more then what needed to come out was but I figure I pay more in taxes I will get more back at the end of the year. Then in October we were no longer contracted with that company and we were back to paying no taxes out of our check. The accountant payroll lady told me that they actually used that money to pay for other expenses but we will get it back slowly before dec. 31 2008. So they actually owe me the most and right now its dec 12th and I am struggling to make a rent payment and have groceries for my kids and a christmas. Well I asked them if I could get the 3000.00 they owe me and they told me No and when they have the money they will pay it to me but yet the owner has 4 mercedes and bought a winter car for 4000.00 while I am struggling and have to pay taxes also coming very soon. What can I do about this when I ask them for my money they tell me no. is there any legal action I can take is this against the law?? I NEED SOME HELP PLEASE!

THANKS

Money that is withheld by an employer to pay employment taxes (Social Security, Medicare, federal and state income taxes) MUST be forwarded to the IRS promptly, usually within one month of collection. Failure to do so results in some rather significant fines by the IRS. If that has not been done, the IRS wants to know about it!

I suggest that you contact the "payroll lady" and tell them to refund the withheld taxes owed to you within the next three business days, or you will make a call to the IRS Tax Fraud line and report them. You can get the phone number from Internal Revenue Service.

You will be surprised how fast they will come up with the money to keep you from making that call.