Legal Question in Employment Law in Massachusetts

Re: delayed invoice for recovery of cash advance

I think the first question you have to ask is whether the company's position is correct or wrong, that is do you owe them the money. If you do, and it is not a lot of money, you may want to consider your reputation with the company if you refuse to pay them back (perhaps you care, or perhaps you do not). From a legal point of view, I would want to look at any documents you signed with the company, and get the exact dates of the advance, your termination, the exit interview, and the recent communication -- an attorney would need to see all of these before they could render a legal opinion. I would be looking to see if the company has waited too long to bring an action to recover the money.

If you owe the money, and you do not pay it back, the company could report it to the IRS as income, and you would have to pay taxes on it. The IRS might view that it was income three years ago, and if you did not declare it, they might come after you for tax evasion. This is not likely, but possible. Good luck in resolving the issue.

Thomas Workman

Law Offices of Thomas Workman

41 Harrison Street, Taunton, MA