Tuesday, December 2, 2008


In the past, as an employer, I was required to submit all Forms W-4 that claimed complete exemption from withholding (when $200 or more in weekly wages were regularly expected) or claimed more than 10 allowances. What Forms W-4 do I now have to submit to the IRS?A1: Employers are no longer required to routinely submit Forms W-4 to the IRS. However, in certain circumstances, the IRS may direct you to submit copies of Forms W-4 for certain employees in order to ensure that the employees have adequate withholding. You are now required to submit the Forms W-4 to IRS only if directed to do so in a written notice or pursuant to specified criteria set forth in future published guidance.

If a taxpayer has tax liability and trying to get into a resolution, the IRS may require the taxpayer to change their withholdings. If the client refuses to do so, the IRS will enforce this action with a "lock in letter" to their employer. Consequently, the taxpayer's withholdings are rediced to zero, maximizing the highest amount if income tax deducted per pay period.

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