H&R Block informed me that i owe IRS $3,000 because my job wasn't taking enough federal income taxes.?

I have since gone to my job and informed them. However when i was hired on by this company wasn't it their obligation to to make sure the correct amount of Federal Income Taxes were withheld each pay check. Could you please tell me how to resolve this matter.

Did you get your W-2 already? Or is H&R Block basing this on your last paystub? Do not get too worried until you get all of your W-2's to figure out exactly how much you owe.

The next thing for you to do is to try to find any deductions you may be able to take. If you put into a 401k or IRA last year, or if you WILL put into an IRA before April 15, you may be able to reduce your tax burden. If you did any improvments to a residential property to reduce energy usage, you may be able to claim those expenses.

If you still owe the IRS, then you need to pay your bill and then go to your employer and make sure the information on your W-4 is correct. You probably have too many dependants listed on there. If a child recently moved out of your house, or if you got divorced, this can change your taxes owed, but your employer will not change any withholding unless you tell them.

If you can not afford to pay the entire $3,000 by April 15, then you should still file as normal, pay as much as you can afford, and go on a payment plan (there is a form to fill out). You will have up to five years to pay it off at a set interest rate (it is variable, but it is usually 6-8%).

It was YOUR obligation. Pay up on April 15 and go to your employer to adjust your withholding for this year.

The only way to resolve it is for you to pay the taxes; either in one lump sum or in installments (plus interest).

You employer has no obligation to make sure that enough taxes are withheld. In fact, when you fill out a W4, you are telling them how much to withhold. So, in effect, if you owe, you have no one to blame but yourself.

i would talk to your employer and get them to take off more taxes this coming year so it doean't happen again. that is what i do because i work to jobs. also i would arrange with your accountant to set up a payment plan so that you don't have to pay it all at once.

it is not your employer's responsibility. they have to take out the right percentages for medicare and social security, but your other deductions you are in charge of. go to a cpa and have them do your taxes. they will find more deductions for you so you won't have to come up with so much extra cash. good luck!

wrong. it's your responsibility to inform your employer of the correct no. of deductions -- remember filling out the form when you were hired? many people lie about this so that their withheld taxes are minimal and are caught when they submit their returns. I suggest you meet with H&R and get a full accounting and explanation, learn about your obligations as a taxpayer and wait until the IRS contacts YOU with this news. If H&R is getting your IRS notifications, you may be giving them too much authority in your own financial life.

Here is your only solution - pay the IRS $3,000. You received the $3,000 that your employer didn't withhold so you now owe that amount to the IRS. You can't get your employer to pay it, because you received the money.

You could only get that from your employer had they withheld the amount, but not paid it to the IRS. The IRS would still hold you liable for the amount, but you could sue the company for the money.

Employers follow withholding instructions by the employee via a form W4. If you claimed more allowances than you actually had, your withholdings will be short for the year.

Ultimately, it is the responsibility of the individual to pay the taxes. If you instructed your employer to withhold a certain number of allowances and you came up short for the year, you need to pay in the difference.

Even if your employer miscalculated withholdings, you will still be liable for the taxes. In short, you received that extra cash each paycheck.

Since you mentioned H&R Block I would advise you to get a second opinion on what you owe. In any case the employer bases their withholding on what you turn in on your W-4; if it was wrong then you and only you are responsible.

People misunderstand sometimes why they get back and why they pay money.
Based on the income bracket, the amount of exemptions and the amount of deductions you actually have, your tax bill will be the same...

That is, if you went to the store and bought a $20 pair of pants and gave me $50, you will get $30 change....but if you went to the store and bought a $20 pair of jeans and gave me $10, you would owe me another $10---but the jeans still cost $20. Thye nevcer stopped costing that much, it is just whether or not you paid me as much.

Now, we get to claim the amount of exemptions and our married status twice---once when we fill out a W4 and once when we actually file our taxes. On the W4, within limits you can claim as many exemptions as you desire, and the more exemptions, the more money you receive and the less tax that is withheld from your paycheck.
But, if there is a big difference between the exemptions and the actual number you have to file on your 1040, you will end up owing money....
Actually, in the days of high interest, that was a good idea, if you planned and banked some of that money. Many people don't.
The IRS wants you to FILE YOUR FORM by April 15th, but if you owe money and cannot pay it all off by then, there are several options which your H&R Block tax preparer can explain to you. You can try to work out a deal with the IRS on how to pay them the money, or you can have someone at another H&R Block office actually look at the figures--I have worked for H&R Block and there are several people who may not have done the forms right depending on how complicated it is...If it is a simple form, if you are taking standardized deductions, and nothing complicated, chances are that you simply did not have enough taxes withheld.
Your H&R Block preparer can also show you the difference between what you are now claiming on your W4 and what you should be claiming, and how much money may be withheld from your paycheck and how much may not.
If, in fact, your company did not with hold enough money, and the number of exemptions you claimed at work and on your 1040 are the same, and if there were no errors made on your form, your company may have a problem with the IRS because they pay corporate taxes based on payroll taxes...When a company pays off the books, the IRS gets cheated twice, once by the person making the money, and again by the company giving the money.

Your H&R Block office has a letter you can send to the IRS, one they can help you prepare. The IRS will hold you to this letter, if they agree to it, and you can file the letter when you file your taxes--and the later you file your 1040 the better then because at the very least, it gives you time until they respond and set up apayment plan...but if your form was prepared without errors, you will have to work things out with the IRS.

If you live not too far from your IRS office, you may wish to sit down with someone and go over things...and this is one time where the earlier the better, because the closer you get to April 15, no matter how long the wait is now, the more you are contending with huge crowds.

Go Back to your tax preparer. Ask them to do a "W4" Planner with you. If the preparer you used doesn't know how, ask for an appointment with a more experienced tax professional. This should not cost you anything, and they should have done it at the time you were in the office. Ask for the 'office leader' and let them know that this wasn't done so that they can take the appropriate action so that nobody else leaves the office like you did without all the information they need.
I apologize that this happened to you. Not the worst thing to go through, but the tax pro should have helped you out a little more. You've got people - now go use them!

YOU are the one that filled out the W-4 that told them how much in taxes to deduct - go to the payroll dept and fill out a new W-4 and change it to single and 1 and you should be okay next year - your weekly take home pay will be less because more taxes will be withheld, but them you won't owe $1000's at tax return time

How would they know how much you'd owe? They don't know enough about your personal situation to have a clue on it - you are the one who is responsible for filling out your W-4 properly. Sorry, all you can do is to correct your W-4 to match your tax liability.

For 2007 you might be able to avoid penalties if you either make an estimated payment, or file and pay all that you owe, by 1/15.