Legal Question in Tax Law in Connecticut

Is it legal for employer to take the Income Tax refund of employee

Hi,

My husband is employee of Indian software Co which is public listed .He is on L1 & I am on L2 .My son is 2 years US citizen.I was working in last yr as it was allowed by US law. My husband co takes the power of attorney from the employee to file Income tax return of their employee & their spouse. We signed the same too. Everyyear the Income tax refund always recd by the Co. and they send us a cheque by putting the stamp of the co on the back of the cheque to sign (endorse).It is compulsory by them.This yr also they recd the Income Tax refund and now they are saying they recd less refund because I was working, so my husband has to pay the difference of amout of the refund less received by them otherwise they will deduct from their indian salaries. There was nothing mention about such Icome Tax refund will be taken by co in their policies.

My questions

1) Can the Co. legally takes the income tax refund of the employee because we signed the power of attorney of filing the return and not to receive the refund .

2) After receiving the refund can they demand the difference of refund less recd because I was woking .

3)What action we can taken ? How can we take our refund back

Please guide.

Thanks

1 Answer from Attorneys

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