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How do I handle my state taxes?

Can I sue the New York State Tax and Revenue Department?

  • I was hired in July 2010 by a Canadian company X. They also have offices in New York State and Michigan. I am a resident of and domiciled in the state of West Virginia. They hired me to look up mineral rights on certain tracts of land in West Virginia. Upon looking at my paycheck, I discovered that instead of West Virginia taxes being taken out, they were taking out New York taxes! Remember, I live and work in West Virginia. I talked to my husband who found the IRS forms I need to fill out, one stating I am not a resident of New York City, New York State, or Yonkers, and one stating I am a resident of West Virginia. I filled them out and faxed them and then called said Company X. They flat-out refused to take out West Virginia taxes. They told me they were "not equipped" to take out West Virginia taxes and that when I file, it would "all work out in the end." I wanted to make sure everything was kosher, so I called the WV Tax Department. They said that if anyone is doing business in WV, then they need to pay WV taxes and take WV taxes from their paychecks. They told me it was illegal for them to do otherwise. Once again, I called Company X and once again, they refused to comply. So I quit my job in September 2010, after less than 3 months of working for them. Meanwhile, I've been having trouble getting my money back from New York State. Apparently, no company has ever committed fraud within the state of NY and they have no clue how to handle it. I've been working with them since April. It is now late September and I have to pay my WV taxes by October 15th and it's not looking like I'll get any money back from NY. I'm annoyed! My question is, if NY refuses to refund my taxes, can I sue the state of NY for that tax money, as well as the penalties and interest I incur from WV, and possibly even punitive damages? And how do I go about doing this? (I cannot get ahold of Company X to sue them or go through mediation).

  • Answer:

    File a non resident tax form at tax time and get it back.

Adelaide V. at Yahoo! Answers Visit the source

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May be a NON resident would work and you may be able to find the line and the form that you need to fill out showing that the income that the New York taxes were withheld improperly by this company and get the amount that was withheld back as a refund from the that taxing authority. Write a letter and attach it to the correct tax return for this purpose. I have had this matter take place in another state in the same way and the taxpayer did get the taxes REFUNDED to them by doing it this way. Hope that you find the above enclosed information useful. 09/24/2011

If NY has a tax court, you could try...but expect to lose.

the company is a NY company and when they say they are not 'equipped' to withhold WV taxes it means the are not registered with WV as an employer and have no means to deposit withheld taxes from your pay you will file a non resident NY when you get your W-2 and hopefully not being a resident most or all of your NY income tax should be refunded to you it would serve no purpose to sue the state, they didn't withhold the income tax, the company did and you already have their answer they are merely abiding by the requirements they have to conform to withholding on their company's employees

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