javatechie
Junior Member
Employer takes Tax refund check/ Asks refund deposit to issue W2
What is the name of your state?
I work for a large Indian software company which has around 8000 employees in US. The company has a clauses like this.
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In terms of your deputation, the taxes are borne and paid by the company and accordingly tax due on filing the return is paid by the company on your behalf. Similarly the refund orders, in case of refunds due, need to be endorsed by employees in favour of company for deposit the company’s bank A/C.
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For employees whose spouses are working the rules go like this
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Spouse working outside Company :
A) If spouse arrived in US on dependent visa (L2), the following options
would be available to Associate for filing tax returns:
i) Option 1: Forward Spouse’s W-2 for filing Joint Tax Return. The
refund attributable to Spouse’s withholding would be refunded to
Associate. Since Spouse has arrived in US on dependent Visa, any
exemptions admissible for Spouse and dependents would be applied
against Associate’s Income.
ii) Option 2: The Associate may at his discretion file joint return with
spouse after depositing the refund due to Company computed,
considering the deductions admissible for Spouse and dependents
from Associate’s Income.
B) Spouse arrived in US on non-dependent Visas
i) Option 1 : Forward Spouse’s W-2 for filing Joint Tax
Return. The refund attributable to Spouse’s withholding
computed on the basis of ‘Married Filing Separately’ would
be refunded to Associate.
ii) Option 2 :The Associate may at his/her discretion file joint
return with spouse after depositing the refund due to
company computed on the basis of ‘Married filing
Separately’
----------------------------------
Is this a legal clause? Can I complain about this to IRS if not who is the competent authority to report such kind of violations? I have enough proof to support this, Will they keep my identity confidential.
What is the name of your state?
I work for a large Indian software company which has around 8000 employees in US. The company has a clauses like this.
-----------------------------------
In terms of your deputation, the taxes are borne and paid by the company and accordingly tax due on filing the return is paid by the company on your behalf. Similarly the refund orders, in case of refunds due, need to be endorsed by employees in favour of company for deposit the company’s bank A/C.
-----------------------------------
For employees whose spouses are working the rules go like this
-----------------------------------
Spouse working outside Company :
A) If spouse arrived in US on dependent visa (L2), the following options
would be available to Associate for filing tax returns:
i) Option 1: Forward Spouse’s W-2 for filing Joint Tax Return. The
refund attributable to Spouse’s withholding would be refunded to
Associate. Since Spouse has arrived in US on dependent Visa, any
exemptions admissible for Spouse and dependents would be applied
against Associate’s Income.
ii) Option 2: The Associate may at his discretion file joint return with
spouse after depositing the refund due to Company computed,
considering the deductions admissible for Spouse and dependents
from Associate’s Income.
B) Spouse arrived in US on non-dependent Visas
i) Option 1 : Forward Spouse’s W-2 for filing Joint Tax
Return. The refund attributable to Spouse’s withholding
computed on the basis of ‘Married Filing Separately’ would
be refunded to Associate.
ii) Option 2 :The Associate may at his/her discretion file joint
return with spouse after depositing the refund due to
company computed on the basis of ‘Married filing
Separately’
----------------------------------
Is this a legal clause? Can I complain about this to IRS if not who is the competent authority to report such kind of violations? I have enough proof to support this, Will they keep my identity confidential.
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