Mistake Leads To Giant Tax Refund For Local Restaurant Owner | 101 KXL

Mistake Leads To Giant Tax Refund For Local Restaurant Owner

Written by Jim Ferretti on March 11, 2014

Kooroush Shearan owns Piattino in NW Portland and Shiraz in Tigard and tells KXL News a payroll mistake in November 2013 cause him a big headache.

He says the trouble started one Friday morning when he checked his bank account and discovered a $30.00 fee from his payroll company, Paychex. After playing phone tag with a company representative, Shearan learned the $30.00 fee was for payroll taxes charged to his account.

“She asked me if she could process the taxes out of my account” Shearan said, “I told her go ahead, it’s never been a problem before.”  But this time was a little different he would learn.  The Paychex representative told him the taxes were over $301,000.00.  “I said could you tell me that again in English?”

After talking with his local rep, they discovered his paycheck instead of being credited with $800.00 per week for 4 weeks (total $3200.00), it was credited at $3200.00 per hour for 173 hours resulting in a check of more than $550,000.00.

Shearan says Paychex took it upon themselves to pay the I.R.S and the State of Oregon the payroll taxes out of their own account then demanded repayment from Shearan.  He says at one point a representative even told him not to jeopardize his payroll service or risk being sent to collections.

The I.R.S. sent Shearan a check for over $247,000.00 while the State of Oregon also made arraignments to send their part of the payroll taxes.  After speaking with his lawyer, Shearan did endorse the I.R.S. check and hand over to Paychex and the money being held by the State of Oregon is also being returned to Paychex.

Director of Corporate Communications for Paychex, Laura Saxby Lynch contacted KXL after our story aired Tuesday to insure it was reported Kooroush Shearan was never out any money.  KXL insured Ms. Lynch that at no time did KXL or Shearan ever report he lost any of his own money.

Shearan tells KXL he is worried all of this may cause him issues on his taxes in the future.  Paychex says he has not suffered any negative tax implication as a result of this matter, nor have any additional issues arisen as a result.  That reassurance did not keep Shearan as a customer as he says he left Paychex a short time after this all started and is very happy with his new payroll company.



Posted Under: Local Headlines

2 replies to “Mistake Leads To Giant Tax Refund For Local Restaurant Owner

  1. Bob

    Wow, it is amazing that a company would front that kind of money for a mistake. Nice job Paychex for owning up to it.


  2. Felicia

    And the “customer” was never out of any funds of his own…..it’d be a different story if he had……I applaud Paychex for taking on the issue, head on. Kudos.


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