This is the Home Page of the
National Organization of Downsized Employees, Inc. ...
Welcome to the National Organization of Downsized Employees, Inc. "NODE"
Address:
N O D E, inc.
Box 47, RFD 1
Salt Point, NY 12578-9705
Phone:
914-266-3556
Fax:
914-266-4936
Email:
WRNK39A@prodigy.com,
NODE NODE@aol.com,
NODE@msn.com
Lowell E. Hofmann, President
If you are a downsized employee, then you may have a strong interest in joining our growing organization. It is possible that you have read about us in a newspaper, heard us on radio, or even seen us on television news programs. Just in case you have not, here is a little background.
N O D E formed in March 1994. Our efforts began with a letter to the editor and a quick follow-up story, both published in the Poughkeepsie Journal, in February 1994. The letter caught the attention of several of us here in Dutchess County, New York. It strongly suggested that payments made to departing IBM employees should not be subject to income taxes of any sort. This prompted considerable reaction and we decided to look more deeply into the questions posed. We began to realize that there were a number of issues that affected the millions of people downsized by many different companies. We also discovered that there was no organization focused on our concerns. It quickly became apparent that if we were going to get the attention we deserved, from the business and political leaders of this county, we would need to mobilize many people with common objectives. To achieve the mobilization, we formed N O D E, the National Organization of Downsized Employees. NODE has attracted members from 50 States, and more than 200 different former employers.
NODE is a New York not-for-profit corporation. It is concerned about a wide range of topics that affect all people who have become part of the ever growing group that has either "volunteered" for their former employer's work-force reduction programs, or who have been forced out in some manner.
Our goals are to:
* provide members with information and education about issues that affect "downsized" employees .
* create a large support network that each member can become part of and participate with.
* be an advocate for the legitimate concerns and problems that confront our members.
As a result of stories in the Associated Press, CNN Moneyline, the Wall Street Journal, radio and newspaper coverage across the country, and a recent story in the American Association of Retired Persons' Modern Maturity magazine & BULLETIN, and Business Week, we have been flooded with calls and faxes. Our membership is growing daily. It is absolutely clear that there is a need to focus attention on the needs of people like us, who find themselves out of work after many years of faithful service to their former employer. We are representative of a group that is growing every day as companies decide that our services are no longer required. The organization is open to all people, from all companies, whether they have been downsized or just think that in the future they could be.
Our first activity concerns the possibility that downsized employees who waived the right to sue their former employers might be eligible for refunds on the taxes paid on the buyout payments they received in consideration for signing the waiver. We spoke to a number of lawyers, including a former chief counsel for the IRS. They all told us we had a good case to make in attempting to recover the taxes. We found a nationally known law firm willing to represent former IBM employees in tax refund litigation against the IRS. As of July 1996 over 3000 of our ex-IBM members have become its clients. As a result of the success we have had in forming the ex-IBM group, we are starting to focus on helping people from other companies form their own litigation groups.
There have been about 3 million people downsized from 1991 through 1995. Most of them had to sign an agreement with their former companies not to sue, in exchange for the buyout payment. On April 16, 1996, we estimate that 580,000 lost their opportunity and 615,000 more in 1997 will lose their opportunity to recover their taxes since the law allows only three years to file amended tax returns. Each year more and more of them will run out of time. NODE expects that it will take 3 to 5 years to resolve the ex-IBM lawsuit. By that time 1,775,000 downsized employees may have missed their chance to file amended returns to seek refunds of their overpaid taxes.
The IRS and the former companies seem bent on prying as much as they can out of the downsized employees. The companies paid the separation payment in exchange for an out-of-court agreement not to sue. They withheld income and employment (social security & medicare) taxes, as though the payments were wages, but, in many cases, refused to count the payment toward retirement earnings, tax deferred savings plans and employee stock option plans. REAL wages and salary MUST count toward such items! The IRS, for its part, claims that the payment is wages or salary and insists on imposing the taxes. It does this even though it knows we did not receive the payment for our work, but ONLY because we agreed NOT TO SUE. There is definitely something wrong with this picture!
In many cases the combined income and payroll taxes exceeded 40% of the downsized employees buyout payment. We think you should give serious thought to the situation. There are no "Class Action" lawsuits in tax refund cases. To claim a refund, you must take action yourself. Do not become part of the group that will lose by default because you do not try. If you are still eligible to file an amended tax return (3 year statute of limitations from year in which taxes paid) and signed a covenant not to sue your former company, then you still have a chance to become involved.
Downsized IBM employees can become part of our ex-IBM tax refund group. If you have been downsized by another company, then NODE is ready to work with you and your former colleagues to form your group. To do so, we need your help. We need to reach out to a large number of your former co-workers. If you are interested in working together with us, join NODE ! -- together we can form your tax refund litigation group. Let us know if you are willing and able to spend some time in an effort to put together a core group that can reach out to others. We are ready to put our time and efforts to work with you.
In addition, NODE is starting to concentrate on other issues that affect the exploding group of former employees. We need your support if we are going to get the attention we deserve. We are the people who have worked hard and long to make this country great. If you feel the same way, then -- join us and send us your thoughts and concerns. Our continuing agenda will focus on the things you feel are important. We produce and mail a quarterly newsletter, "Working Together", with timely information to our members. We look forward to publishing your letters and other items of interest you provide.
Sincerely,
Lowell E. Hofmann (President)
To join N O D E , fill out the form below and mail your check for $35 to:
N O D E, Inc., Box 47, RFD 1, Salt Point, NY 12578
Name: ______________________________________________________________
Phone ( ) ____-______ FAX: ( ) ____-______ E-mail: _______@_____________
Address: __________________________________________________________
City _________________________ State ______ Zip Code _______ - ______
Former Company Name ______________________________________________
Buyout Plan Name ___________ Buyout Year ____ Age at Signing Waiver _____
For SKILLS-DB {Trade or Specialty} _________________________________
( Include your resume and your area preferences )
