How to prove someone used my w-2

[Mike]

I recently lost a lawsuit in NJ. My company hired someone in 2002 and 2003 as employee. I paid him on w-2 basis and contributed social security and medicare taxes on his behalf and bought him unemployment insurance. He filled out w-4 and w-9 and I did tax withholding. That person was later fired and came back to sue my company and claimed that he was never my employee and instead he was my investor -- all the revenue he brought in were his investment in my company and I needed to return it to him. My attorney screwed up and we did not get his tax return during discovery. Although I produced my company's tax return showing employer tax contribution on his behalf, jury still ruled in his favor. So I need to return all the revenue he brought in and ended up contributed to his retirement for free. If I can prove that he used my w-2 (I am pretty sure he did) then I can overturn the judgment on the basis of his perjury. At the very least, he should give me credit for the employer tax contribution and unemployment insurance I paid. Is there any way I can do that? I asked around and was told IRS won't be able to help since they do not release information about anyone other than my own company.

[zelner]

This Court Rule deals with relief from Judgments:

RULE 4:50. RELIEF FROM JUDGMENT OR ORDER

4:50-1. Grounds of Motion

On motion, with briefs, and upon such terms as are just, the court may relieve a party or the party's legal representative from a final judgment or order for the following reasons: (a) mistake, inadvertence, surprise, or excusable neglect; (b) newly discovered evidence which would probably alter the judgment or order and which by due diligence could not have been discovered in time to move for a new trial under R. 4:49; (c) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party; (d) the judgment or order is void; (e) the judgment or order has been satisfied, released or discharged, or a prior judgment or order upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment or order should have prospective application; or (f) any other reason justifying relief from the operation of the judgment or order.

Note: Source-R.R. 4:62-2 (first sentence); amended July 15, 1982 to be effective September 13, 1982; amended July 13, 1994 to be effective September 1, 1994.

4:50-2. Time of Motion

The motion shall be made within a reasonable time, and for reasons (a), (b) and (c) of R. 4:50-1 not more than one year after the judgment, order or proceeding was entered or taken.

Note: Source-R.R. 4:62-2 (second sentence).

4:50-3. Effect of Motion

A motion under R. 4:50 does not suspend the operation of any judgment, order or proceeding or affect the finality of a final judgment, nor does this rule limit the power of a court to set aside a judgment, order or proceeding for fraud upon the court or to entertain an independent action to relieve a party from a judgment, order or proceeding.

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As you can see it is possible to be relieved from a judgment for fraud (perjury). I would bring this to the attention of your attorney and ask him to comment on it. It is not an easy thing to do but it is possible and highly dependent on the fast of your case.

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As for discovering if he used the W-2 you may want to contact the New Jersey Department of Treasury because if he filed a Fedreal return he also filed a State return. It may be easier to get information from the State rather than the federal Governemt - this is just an idea that you should pursue.

[Mike]

Very helpful advice. Thank you so much. I will follow up in the direction you suggested immediately.