Bonus Repayment

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MeganH18

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About two years ago I left employment where I was given a signing bonus for agreeing to work for two years. The contract that I signed said that repayment might be requested if the contract was not honored. I have not heard anything from this company since I have left their employment in October of 2007. Yesterday I recieved a letter (September 2009) saying that I was required to repay the bonus in full.

I am wondering what I should do. I paid taxes on the bonus in 2007, and have heard nothing from the company about the bonus until yesterday. If they were requiring me to repay the bonus why did they wait two years to contact me?
 
You need to repay the bonus. If not, they can sue you and get it back. As for the taxes, contact the IRS abou tre-filing your taxes for that year. You can go back 3 years and refile, but that needs to be done after the bonus is repaid, as you will need to show proof of repayment.
 
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