Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
I think you've received all good advice so far. I wouldn't rely on the statute of limitations to bail you out, as I can't think of any that would apply to your circumstances.
You're dealing with what is called "trust fund money", in other words (as the previous expert pointed out), it wasn't your money to start with, as you were merely collecting it on behalf of the state, were "safeguarding" it & in theory just passing it on.
I don't know what relevance you are attaching to the social security number comments; rest assured they have your social security numbers. There is information sharing with the IRS for one thing, not to mention the 1099 and or W2 reporting. Hopefully, you did file your personal income tax returns.
No one can give you any definitive answers as to what the eventual outcome may be of the various approaches that you might take in these circumstances. However, you're dealing in a highly specialized area; most of us have only handled a few of these cases and everyone's circumstances are different, as are the various state's settlement guidelines. There's no substitute for experience in these cases. It isn't the place for the inexperienced or the faint of heart. In my opinion, you should not be trying to handle this yourself. There's just too much at stake here & you're dealing from a position of substantial weakness, given the facts as you have presented them. I won't go into the specifics, but I think you know you're in a bad spot here.
Given the circumstances as you relate them, including the amounts involved, here's what I'd do & what I'd recommend that you strongly consider. Contact the Virginia Society of CPAs to obtain a referral to a CPA who specializes in dealing with the state on these matters. I'd try emailing (Arthur Auerbach, CPA, Goodman & Company, McLean, (he's Chairman of the Taxation Committee) @[email protected] [email protected] directly to ask for a referral as I discussed. That way, you can be confident that you'll get someone who knows what the state will & won't do.
Remember, this is serious business, has the potential of criminal sanctions, (this is trust fund money that was diverted for your own personal or business purposes). Whomever you engage has to know what the state's current settlement & enforcement posture is; and therefore he'll be able to advise you whether, when or if, you need legal representation.
An additional link which will bring you to the VSCPAs website for further information:
If my response has been helpful, please remember to click on the green "ACCEPT" "ICON" & thanks again for using our service. If you have time, we appreciate feedback, and if you feel it is warranted, bonuses are always greatly appreciated.