Withholding compliance program
This presentation is the property of its rightful owner.
Sponsored Links
1 / 10

Withholding Compliance Program PowerPoint PPT Presentation


  • 72 Views
  • Uploaded on
  • Presentation posted in: General

Withholding Compliance Program. William Warner Senior Tax Analyst Wage and Investment Compliance. Withholding Compliance Program. Tax year 2004 program began in October 2005. Approximately 120,000 cases out of 230 million Forms W-2 filed. Contact Information.

Download Presentation

Withholding Compliance Program

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Withholding compliance program

Withholding ComplianceProgram

William Warner

Senior Tax Analyst

Wage and Investment Compliance


Withholding compliance program

Withholding Compliance Program

  • Tax year 2004 program began in October 2005.

  • Approximately 120,000 cases out of 230 million Forms W-2 filed.


Withholding compliance program

Contact Information

  • Program is centralized in Lowell, Mass.

    • Toll-free number for employees and employers is: 1-866-791-0289.

    • FAX number is: 1-978-474-1326.


Withholding compliance program

Employer Responsibilities

  • Accept all VALID Forms W-4

  • Furnish copy of proposed lock-in letter to employee immediately upon receipt.

  • If no further guidance is received from the IRS, impose withholding at the status and allowances (single/zero) specified in the letter 60 days after the date on the original letter.


Withholding compliance program

Employer Responsibilities

  • Maintain withholding at the IRS specified status and allowances until further notice.

  • “Penalty”: If employer fails to honor lock-in as required, the employer is liable for the amount of tax that should have been withheld.


Withholding compliance program

Employer Responsibilities

  • When an employer receives a lock-in letter for a former employee, a signed note on the company letterhead stating that the employee is no longer employed by the business should be mailed or FAXED to the Lowell office.


Withholding compliance program

Employer Concerns

  • Waiting 60 days after notification before locking in employee.

  • System changes to prevent locked in employee from increasing allowances on-line.

  • “Suspicious” Forms W-4


Withholding compliance program

How can you help your employees?

  • Remind your employees –

    The notice they received tells them to contact IRS, if they want to change the withholding status & allowances from single/zero.

    The employee needs to have the following information available when they call or write:


Withholding compliance program

Joint filers must have the same information available for both spouses

  • Form W-4 and worksheets.

  • Most current pay stub for each job.

  • Number of allowances claimed on current Forms W-4.

  • The social security numbers and dates of birth for any children and proof of any deductions they want to use to claim additional withholding allowances.


Withholding compliance program

Withholding Compliance Program

Look at www.irs.gov for:

  • Temporary regulations – TD 9196

    Internal Revenue Bulletin 2005-19.

  • Withholding Compliance Questions and Answers.


  • Login