Employer didn't withhold federal taxes - now I owe $1700!

So I'm in a total mess right now. I started this new job last summer and filled out my W-4 as single with zero dependents. Everything seemed fine with my direct deposits - I could see deductions for Social Security and state income tax on my pay stubs, so I assumed federal taxes were being taken out too. Fast forward to tax season, and I get my W-2 showing ZERO federal tax was withheld for the entire year! When I confronted our payroll person about it, she gave me some ridiculous excuse that "college students can't owe on their taxes" (what??). Now I'm stuck owing $1700 to the IRS and I'm freaking out. The kicker is that my most recent paycheck after I brought this up suddenly had federal taxes withheld, proving it was their mistake all along. She didn't even acknowledge the error or apologize. This is clearly my employer's mistake, not mine. I filled out my paperwork correctly. What options do I have? Can they be held responsible for their error? I don't have $1700 just sitting around to pay the IRS!

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18 comments

Ethan Clark

•8M

This is unfortunately more common than you'd think. While your employer definitely made a mistake, the IRS considers tax payment to be ultimately your responsibility, regardless of withholding errors. Here's what you can do: First, double-check your W-4 on file to confirm it was filled out correctly. Then request a meeting with both the payroll person and their supervisor to discuss the issue. Bring documentation showing your original W-4 and recent pay stubs showing the corrected withholding. Your employer won't be liable for your tax bill, but they might be willing to help by offering an advance or bonus to offset some of the amount, especially since it was their mistake. This is completely at their discretion though. For dealing with the IRS, you can set up a payment plan if you can't pay the full amount immediately. The IRS offers both short-term (120 days or less) and long-term payment options with relatively reasonable interest rates.

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Ethan Clark

•8M

The tax system places the ultimate responsibility on the taxpayer, not the employer. The W-4 withholding is considered an estimate, and it's technically your responsibility to verify proper withholding throughout the year or make estimated tax payments if withholding is insufficient. While it feels unfair, the relationship between employers and withholding is designed as an assistance system, not a liability transfer. Some employers might offer compensation for their mistake, but this would be a goodwill gesture rather than a legal obligation. Your best approach is still to have that honest conversation with management and see what they're willing to do to help make this right.

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Yuki Sato

•8M

After dealing with a similar nightmare last year (different issue but also owed unexpected taxes), I used https://taxr.ai to help figure out my best approach. Their system analyzed my tax docs and gave me specific language to use when talking to both my employer and the IRS about setting up a payment plan. The tool helped me understand exactly what went wrong with my withholding and showed me how to fix my W-4 to prevent it from happening again. It also gave me a clean breakdown of what I could potentially negotiate with my employer versus what was legally my responsibility. If your employer is making up nonsense about "college students can't owe taxes" (which is completely false), having documentation from a third party might help when you have that conversation with management.

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Yuki Sato

•8M

It doesn't force your employer to pay what they should have withheld, but it gives you documentation and specific language to use when discussing the issue with management. Having a clear record of the error and its impact sometimes helps persuade them to offer some assistance as a goodwill gesture. For legal guidance, it provides references to relevant tax regulations and explains your rights and responsibilities clearly. It won't give you a legal strategy to sue your employer, but it helps you understand exactly what happened and shows which parts of the tax code apply to your situation, which can be helpful when discussing the issue with higher management.

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Andre Lefebvre

•8M

I was skeptical at first, but I actually tried taxr.ai after posting that question. It was really helpful! I was able to get a complete analysis of my sister's situation within minutes, and it showed exactly where her employer had made the withholding error. The tool generated a letter she could take to her HR department that outlined the specific payroll mistake with references to the proper tax regulations. Her manager was a lot more responsive when she came with actual documentation instead of just complaining. They didn't cover her full tax bill, but they did give her a $1000 bonus to help offset the mistake since the documentation made it clear it was their error. It also helped her set up her 2025 W-4 correctly so this won't happen again. Definitely worth checking out if you're in this situation!

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Zoe Alexopoulos

•8M

If you need to call the IRS about setting up a payment plan (which you probably will), good luck getting through to them. I spent WEEKS trying to reach someone last year. After multiple failed attempts and hours on hold, I found https://claimyr.com which basically holds your place in the IRS phone queue and calls you when an agent is about to pick up. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super frustrated dealing with my own withholding issue last year, and this saved me from spending another day listening to that awful hold music. When you finally talk to the IRS, they're actually pretty reasonable about setting up payment plans if you can't pay everything at once.

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Zoe Alexopoulos

•8M

It doesn't give priority access - it just automates the waiting process. Basically, it uses a system that waits on hold for you, then calls your phone and connects you when an agent is about to answer. You're still in the same queue as everyone else, but you don't have to personally sit there listening to hold music for hours. I was definitely skeptical too, but after wasting an entire day on hold and getting disconnected, I was desperate enough to try it. I was surprised when they actually called me back with an IRS agent on the line. It saved me from taking another day off work just to deal with the phone system. The whole point is that you don't have to stay on the line yourself during those ridiculous wait times.

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Mei Wong

•8M

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it as a last resort since I still hadn't been able to get through to the IRS about my missed withholding issue. I expected it to be a waste of time, but I got a call back in about 45 minutes with an actual IRS agent on the line! The agent helped me set up a payment plan for the taxes I owed due to my employer's withholding mistake. The whole thing took maybe 15 minutes once I was actually talking to someone. I was able to arrange a monthly payment that works for my budget instead of stressing about the lump sum. Saved me from taking another vacation day just to sit on hold with the IRS. Definitely using this again next time I need to call any government agency with terrible hold times.

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QuantumQuasar

•8M

You're right - Form 8919 wouldn't apply in your situation since your employer did properly withhold Social Security and Medicare taxes. I misunderstood your original post. For federal income tax withholding issues, there unfortunately isn't an equivalent form. Since you correctly filled out your W-4, this is definitely the employer's mistake, but as others have mentioned, the IRS still considers the tax liability yours. Your best options are still to speak with management about potential compensation and set up a payment plan with the IRS for any amount you can't pay immediately.

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