Has the tax refund obtained from the IRS for an employee on Intercompany Transfer to be paid back to the employer ?

I work for a global company which has offices in the US and in India. I'm the Indian company employee who is on L1, Work -Inter company Transfer status and working in the US. The Indian company is demanding repayment of tax refund received by me from the IRS but originally paid by them (amount exceeding the contract between employee and company). Is this legal and what are the options.?

Los Angeles, CA -

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Attorney Answers (3)

Eduardo Guillermo Sanchez

Eduardo Guillermo Sanchez

Tax Lawyer - City Of Industry, CA
Answered

As the previous post indicated, you might be liable to pay the refund to your employer under the employment contract terms. As a practical matter, you will need to work this out with your employer.

Evan A Nielsen

Evan A Nielsen

Tax Lawyer - Redlands, CA
Answered

Sounds like it might be within their rights. The Refund is issued to you but if your contract with them provides that they pay a specified amount and the refund is in excess of that they may be able to recover it. Lots of dimensions to consider on your situation, all of which should be considered before proceeding. You're probably going to have to see an attorney about your specific situation.

Hope that helps.

Evan A. Nielsen is licensed to practice law in California and handles federal tax matters throughout the U.S. The... more
Constantine D. Buzunis

Constantine D. Buzunis

Business Attorney - San Diego, CA
Answered

you might have to pay the refund to your employer, you should talk to the employer about this and find out what is required or you can always call and talk with the goverment tax office and they may direct you to what is required? Good Luck.

Legal disclaimer:This message does not constitute legal advice and does not create an attorney-client relationship.... more

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