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NJ Objectors Pan 25 Million FedEx Ground Settlement
- Thread starter njdriver
- Start date
Is he rolling over in it?
Cactus
Just telling it like it is
Nah, I was being sincere. He gave me a straight answer.
FedExPseudoWife
Member
At first blush, it looks like it's a three year time period to amend federal returns. BUT, you'd want to check the specifics under IRS Code, as it might not be a boilerplate "3 yrs" depending upon the reasons for the amended filing. Hopefully you would't get hung up with bs penalties and the like (in addition to paying income tax, as you mentioned, now - for those years it wasn't yet received) , since the taxable amounts added to past years' incomes would not have been actually received in any manner, until you actually received it via settlement funds.
how far back can taxpayer file amended return - Google Search
Thank you Pseudo Wife for you input . It made me curious and I've tried to find some more information. I've come across some IRS language which will require more study but it says something to the effect that in an out of court settlement with no admission of guilt or the basis upon which payment is made then when it comes to whether the settlement is taxable, the question is often determined according to the plaintiffs reasons for suing. If that is the case then given that the years in question are 2001-2007 there may an argument and this is a long shot that the plaintiffs should be able to amend their returns for those years allocating at least some of the lump sum to those years in an attempt to get as much of their settlement possible into the lowest bracket possible. In the end it will probably require an iRS blanket ruling. About the only other thing that can be done is to report it as miscellaneous income and has be mentioned in the past try to offset as much as possible by means of the miscellaneous deductions allowance on Schedule A. I commend the Jersey boys for rolling the dice. The average settlement at least as far a my state goes is just $12,000 and if it has to be dumped into one year taxes will take such a big and unjust bite out of it that there is really nothing left.
In Oregon and California, a judge actually ruled that we were employees, which led to the settlement. So the question of being an employee has been settled.
I have read (for years) about filing an amended return, and it seems unclear. You can only claim a refund going back 3 years, and the IRS can only force payment if intentional fraud was committed after some period of time. I think that having filed the lawsuit in 2006(?) may have preserved some of that time if even needed. Whether I would owe any taxes is a close call. I paid more % in Social Security taxes as self employed but on an income that was calculated after expenses instead of before taxes. I think that because my net income after expenses was about 1/2 of gross, that by paying 15.3 % on my net in FICA tax(SE tax) it will end up being about the same as if FEDEX deducted the standard 7.65% from my gross.
From fedex perspective, they should have been paying their employer share of FICA taxes based on they gross I was paid. I think that if I filed amended returns, and the time frame was shorter, the IRS could demand that fedex pay those taxes.
For anyone still doing this Fedex ISP scam, and getting closer to retirement age, it would be smart to look at the effects of paying SS taxes on a lower income. It could mean 100s of dollars difference every month after retirement. My years at fedex were relatively short and well before retirement age, so it may not even make a difference. but if you are near retirement and short on previous earnings used to determine SS benefits, you might be well served by amending your returns for the prior years.
I have read (for years) about filing an amended return, and it seems unclear. You can only claim a refund going back 3 years, and the IRS can only force payment if intentional fraud was committed after some period of time. I think that having filed the lawsuit in 2006(?) may have preserved some of that time if even needed. Whether I would owe any taxes is a close call. I paid more % in Social Security taxes as self employed but on an income that was calculated after expenses instead of before taxes. I think that because my net income after expenses was about 1/2 of gross, that by paying 15.3 % on my net in FICA tax(SE tax) it will end up being about the same as if FEDEX deducted the standard 7.65% from my gross.
From fedex perspective, they should have been paying their employer share of FICA taxes based on they gross I was paid. I think that if I filed amended returns, and the time frame was shorter, the IRS could demand that fedex pay those taxes.
For anyone still doing this Fedex ISP scam, and getting closer to retirement age, it would be smart to look at the effects of paying SS taxes on a lower income. It could mean 100s of dollars difference every month after retirement. My years at fedex were relatively short and well before retirement age, so it may not even make a difference. but if you are near retirement and short on previous earnings used to determine SS benefits, you might be well served by amending your returns for the prior years.
Thank you for your insight. I think when the case reconvenes next month I wouldn't be surprised if Judge Miller the same Judge Miller who back in 2010 said the the guys in the East Coast case were contractors will simply wash his hands of it and approves the proposed settlement without comment. And X will get off paying what to them is the corporate equivalent of parking meter change.
Tofaute et al
New Member
The same Judge Miller who back in 2007 certified the claim, is now going to let lead counsel devalue his opinion, and just wash his hands. Don't think so! The revelations that will be presented at the fairness hearing will give the Judge a new perspective of this so called "settlement".
Excellent point. At the same time if Leonard Carder wants to " cash out" then the last thing they'll want is for the matter to end up on appeal for a couple of more years. The most difficult task confronting Fedex will be to show up at the hearing and somehow manage to keep a straight face while the hardest work for Smith is not to set off an earthquake when that big tub of goo falls off his chair laughing.
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