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Employers take note: withholding lock-in letters.

Under the new Withholding Compliance Program, the IRS no longer needs Form W-4, Employee's Withholding Allowance letter."

The IRS is using information reported on Forms W-2, Wage and Tax Statement, to more effectively identify employees with withholding compliance problems. When serious under-reporting is identified, the IRS may issue a lock-in letter to the employer specifying the maximum number of withholding allowances permitted for the employee.

Find more at www.irs.gov/businesses/small/article/0,,id=159856,00.html.
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Title Annotation:IRS Update
Publication:California CPA
Date:Sep 1, 2006
Words:84
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