Lawmakers Take Action in Aeden Waterford Case

By WBNG News

November 12, 2010 Updated Nov 12, 2010 at 7:38 PM EDT

Binghamton, NY (WBNG Binghamton) - An Action News update on the fall out from a payroll companies failure to forward tax money to the IRS.

Dozens of local businesses that contracted with Aeden Waterford are scrambling to pay what they thought they already paid.

Action News Reporter Brennan Smith asks if anything can be done to help settle the big bill so business does not suffer more.

Making payroll is a responsibility small business owners take very seriously.

To make sure it was done right, many businesses in Binghamton and Greene trusted Aeden Waterford to withhold taxes and prepare their employees' paychecks.

But after the payroll company closed its doors, these businesses found out that the IRS never received some of the money that was withheld to pay taxes.

"This is very unusual. It just blind-sided all of us," said owner of the Silo Restaurant Gary Kurz.

He says the I-R-S is being fair, but it is difficult to pay them back.

"Coming up with 24,000 dollars quickly when each week you struggle to meet payroll and heating bills and electric bills and taxes and insurances, it's very difficult. So that's what we're facing right now," said Kurz.

The situation leaves many business owners wondering who they can depend on.

And when small business owners are looking for other small businesses to trust, they can always turn to organizations like the Chamber of Commerce or the Better Business Bureau.

"I would just recommend you need to do your due diligence. You need to talk to these companies' references, see if they've been happy with them, see if they're a member of their local chamber, the better business bureau or another trade organization because companies that do get involved with these types of organizations are more reputable than ones that just do it on their own, said Amy Shaw from the Greater Binghamton Chamber of Commerce.

Meanwhile, lawmakers are getting involved.

"We are looking into this right now and we'll get back to you shortly," said Senator Charles Schumer (D) New York.

Right now, roughly 135 of Aeden Waterford's clients will continue to try and repay the IRS.

In Binghamton, Brennan Smith, WBNG-TV Action News.

Senator Kirsten Gillibrand's Office released a statement today.

The office plans to work with the I-R-S and the Attorney General's office to see what options Aeden Waterford's clients have.