Fang Lin Ai, 1,000 Does, and the former garment factory are also asking for a jury trial.
Attorneys Steven P. Pixley and Colin M. Thompson represent the defunct Concorde and former employees.
The complaint said the United States “wrongfully assessed and compelled the payment of FICA taxes as a percentage of wages earned” in each of the taxable years. The assessment, deduction and payment of these FICA taxes were “mistaken, erroneous, and illegal,” the complaint added.
The plaintiffs “did not have any tax obligations or filing requirement with the [United States],” the complaint said.
In its response, U.S. Department of Justice tax division’s trial attorney Andy R. Camacho said the plaintiffs’ take nothing from the United States by their complaint, which should be dismissed with prejudice.
The federal government is also asking for costs incurred for this lawsuit, and such other relief.
Camacho said it was the U.S. Internal Revenue Services that “erroneously issued” to the plaintiffs a refund check, amounting to $1,181,265.71 which included interest.
“The refund check was erroneous because, among other things, the claim for the refund was without legal basis and should not have been allowed,” Camacho told U.S. District Court for the NMI, where the lawsuit was filed.
Camacho said Concorde is “indebted to the United States” in the amount of $1,181,265.71 plus interest as provided by law from the date of the erroneous refund on Dec. 28, 2009.
