Thank you for choosing Just Answer. I am sorry to hear of your situation.
Unfortunately, the employer is not liable to you for the actual income tax owed to the IRS. This was money you owed to the IRS and you did receive the money. Since you had the money, the only difference is that you should have paid the IRS rather than the employer.
You should talk to your boss and explain the situation. You can ask them to assist with the penalty + interest that will be inevitably assessed. Your employer may indicate that it was your responsibility to check your pay stub. Had you identified the problem earlier the problem may never has existed.
No matter how you fair with your employer , you should contact the IRS immediately you can work out an installment agreement paying the amount due in up to 5 years. If you enter into an installment agreement with the IRS quickly the late penalty will be ¼% of the unpaid tax per month.
There will also be interest in addition to the late payment penalty. The interest on the tax is around 3% per year, compounded daily. Your are looking at about $15.00 per month in late fees and interest, plus the tax due.
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