TAX-RELATED OVERPAYMENTS MAY BE WAIVED
Here is a new one that surprises even us. A federal agency, ironically the IRS, failed to withhold from the biweekly salary checks of its employees in Florence, KY the full income tax amount they were obligated to pay to the City of Florence. When IRS found out, it announced that the employees had received too much take home pay, which the feds call and overpayment, and that management was going to increase their city tax deductions over the amount typically due each pay period to make up for the amount it failed to withhold. Employees were upset and their union stepped in. Continue reading