Go Back   Customers Suck! > The Heart of the Site > Sucky Customers

Reply
 
Thread Tools Display Modes

  #11  
Old 11-18-2014, 09:00 AM
Argabarga's Avatar
Argabarga Argabarga is offline
Car Snatcher
 
Join Date: Jul 2006
Location: State College, PA
Posts: 2,910
Default

The most distressing thing to me is her attempts to hide the real situation from her husband, shows how far in denial she is about the mess that's growing exponentially larger and larger beneath her, one hopes HE isn't lying to HER about HIS status, each hoping to lean on the other when the big bill they can't pay/borrow their way out of hits the ledger.
__________________
- They say nothing good happens at 2AM, they're right, I happen at 2AM.
Reply With Quote

  #12  
Old 11-18-2014, 02:57 PM
taxguykarl's Avatar
taxguykarl taxguykarl is offline
Seasonal Tax Preparer
 
Join Date: Aug 2008
Location: Chicagoland (South suburbs)
Posts: 3,824
Default

Quote:
Quoth Gilhelmi View Post
Dear Lord; please let Erickei be wrong.
Sorry, but he's correct. The one earning the income, employees in the OP, are responsible for the taxes ultimately. Yes, they can set up an offer in compromise or even take the matter to a tax court.
FWIW, the "employer half" of which Eric speaks is, in fact, the social security and medicare taxes that match the amounts withheld.
If I were in such a situation, I would contact the taxpayer advocate to work on a solution...or at least get the crosshairs moved towards Betty. As she has not filed for several years, she is on the IRS radar, already. Come to think of it, the employees will need to look into the state counterpart. What state are you in, Ghel?
__________________
I'm trying to see things from your point of view, but I can't get my head that far up my keister!

Who is John Galt?
-Ayn Rand, Atlas Shrugged

Last edited by taxguykarl; 11-18-2014 at 03:14 PM.
Reply With Quote

  #13  
Old 11-18-2014, 03:29 PM
KuariKaydrith's Avatar
KuariKaydrith KuariKaydrith is offline
Resident dyheli wrangler...
 
Join Date: Oct 2014
Location: Big Island in Atlantic Canada
Posts: 726
Default

What really sucks in this situation is that Betty may be deducting taxes from her employees' pay and not submitting the funds to the IRS. This means that the employees are going to get royally screwed at tax time because, in essence, they are going to get dinged twice for taxes - once by Betty deducting taxes and second by the IRS.

I once worked for an employer that was having a hell of a time paying bills and their staff - I got to the point where when I got paid I would head directly to their bank just after they did their daily deposit in order to ensure I would receive my pay. This after two paycheques bounced and my bank refusing to honour any further cheques from my employer. My boss threatened to fire me if I kept getting my cheque cashed as soon as they did their deposit because it was causing them to miss more payments! I told them that I needed to pay shit too, and that unlike them I didn't own my own house or have money coming in from other sources. They gave me my notice of termination during the Christmas holiday and tried to tell me, after being there for 18 months, that I didn't know how to do my job, and on my employment papers they put down that I had quit...um yeah. They closed six months later with several employees owed mega-bucks in pay. The writing was on the wall long before that, and I kept telling people to jump ship. Of course there were a few people that held out until the bitter end and never got paid what they were owed, to the tune at least a month's worth of pay each.

Last edited by KuariKaydrith; 11-18-2014 at 03:35 PM.
Reply With Quote

  #14  
Old 11-18-2014, 03:37 PM
mjr's Avatar
mjr mjr is offline
Area Manager
 
Join Date: Jan 2013
Location: 127.0.0.1
Posts: 1,048
Default

Where's Robert Irvine when you need him??
Reply With Quote

  #15  
Old 11-18-2014, 03:46 PM
bookworm's Avatar
bookworm bookworm is offline
Accountant
 
Join Date: Sep 2008
Posts: 36
Default

Quote:
Quoth taxguykarl View Post
Sorry, but he's correct. The one earning the income, employees in the OP, are responsible for the taxes ultimately. Yes, they can set up an offer in compromise or even take the matter to a tax court.
I double checked with my boss (CPA) because that sounds crazy to me and he said that while yes, the IRS could do that, odds are they won't and if they did you could probably get it dropped in appeal. I've never heard of it actually happening and I've had several clients get behind on their payroll taxes. When payments are made, they are always applied to the trust taxes (the employee paid portion that the employer is holding "in trust" for the IRS) first, and then to the employer portion.

What a nightmare that would be!
__________________
TANSTAAFL
Reply With Quote

  #16  
Old 11-18-2014, 04:13 PM
Ghel's Avatar
Ghel Ghel is offline
Asura Mesmer
 
Join Date: May 2008
Location: Minnesota, US
Posts: 1,302
Default

Betty has multiple state (MN, to answer taxguykarl's question) and federal tax liens on her credit report. We have received many liens and garnishments, and we send as much money as Betty has in her checking account, which is usually only a couple hundred dollars. I don't know how much this has affected the employee turnover rate at Betty's, but I can't imagine it helped.

The 90-day extension is on the house loan, which is not in danger of being tax forfeit for real estate taxes. The restaurant loan is separate, and doesn't mature for nearly a year. The restaurant property will go tax forfeit before the loan matures. To prevent a loss for the bank, we sent a pre-foreclosure letter that will expire in January. Betty has until then to pay the real estate taxes, or we'll start foreclosure proceedings. The county will start the tax forfeiture process in May if all the back real estate taxes aren't paid.

I think I mentioned in the previous threads about Betty that we have, in the past, advanced funds on the restaurant loan to pay federal and state taxes and real estate taxes. We did that to prevent having her from losing her business, but it has instead given her the expectation that we will pull her out of the next jam she gets herself into. When the new bank took over (about 4 years ago, now), they put a stop to that practice.

I haven't been to Betty's in over a year, but from what I hear, she has good food and brisk business. I think her issues lie more in money management than restaurant management.

The husband still hasn't come in to sign the extension documents for the house loan. I still intend to tell him about the restaurant going tax forfeit next year. Both because it's public record and because real estate is automatically owned jointly by spouses in MN. He is equally as responsible for the restaurant property as she is. I suspect she doesn't want me to tell him because she wants to avoid the argument it will cause.
__________________
“We are the superhero. None of us, individually, but all of us together.”
― Hank Green

Last edited by Ghel; 11-18-2014 at 04:17 PM.
Reply With Quote

  #17  
Old 11-18-2014, 08:17 PM
DGoddessChardonnay's Avatar
DGoddessChardonnay DGoddessChardonnay is offline
Den Mother
 
Join Date: Jul 2006
Location: State of Insanity (aka NC)
Posts: 6,647
Default

Quote:
Quoth Ghel View Post
The husband still hasn't come in to sign the extension documents for the house loan. I still intend to tell him about the restaurant going tax forfeit next year. Both because it's public record and because real estate is automatically owned jointly by spouses in MN. He is equally as responsible for the restaurant property as she is. I suspect she doesn't want me to tell him because she wants to avoid the argument it will cause.
Of course she doesn't want him to know. I wouldn't be a bit surprised if she's living well above her means and is robbing Peter to pay Paul and they're both about to gang up on her now. Or that she somewhere has a huge life insurance policy on her hubby that will give her a big windfall in the event of his unfortunate demise . . .

Either way, this smells like the buildup of a true crime story or a Lifetime movie.
__________________
Human Resources - the adult version of "I'm telling Mom." - Agent Anthony "Tony" DiNozzo (NCIS)
Reply With Quote

  #18  
Old 11-19-2014, 03:16 AM
XCashier's Avatar
XCashier XCashier is offline
Insert clever title here
 
Join Date: Jul 2006
Location: At my computer
Posts: 6,977
Default

Quote:
Quoth DGoddessChardonnay View Post
Of course she doesn't want him to know. I wouldn't be a bit surprised if she's living well above her means... this smells like the buildup of a true crime story or a Lifetime movie.
Oh, undoubtedly, will happen soon. The IRS is probably gearing up to drop the bomb on her. I feel bad for her employees and anyone else who's involved.
__________________
I don't have an attitude problem. You have a perception problem.
My LiveJournal
A page we can all agree with!
Reply With Quote

  #19  
Old 11-19-2014, 03:29 AM
Tama's Avatar
Tama Tama is offline
Area Manager
 
Join Date: Dec 2009
Posts: 1,708
Default

That's if the employees are even paid by check anymore, and not under the table in cash...
__________________
My Guide to Oblivion

"I resent the implication that I've gone mad, Sprocket."
Reply With Quote

  #20  
Old 11-19-2014, 08:43 AM
Gilhelmi Gilhelmi is offline
Store Manager
 
Join Date: Oct 2013
Location: Kansas,
Posts: 742
Default

Quote:
Quoth taxguykarl View Post
Sorry, but he's correct. The one earning the income, employees in the OP, are responsible for the taxes ultimately. Yes, they can set up an offer in compromise or even take the matter to a tax court.
FWIW, the "employer half" of which Eric speaks is, in fact, the social security and medicare taxes that match the amounts withheld.
Crap. Let me guess, if they sue her for not paying their taxes, she will declare bankruptcy and they will not get a thing (because employees are on the bottom of the debt collection ladder, and of course she owes everyone money).

Well, then this has made me more grateful of my excellent employer.
__________________
I might be crazy, but I'm not Insane.

What? You don't play with flamethrowers on the weekends? You are strange.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is 01:06 PM.


Powered by vBulletin® Version 3.8.9
Copyright ©2000 - 2019, vBulletin Solutions, Inc.