# Presentation: 527890

## Withholding Compliance Program

**Withholding Compliance**** ****Program**

- William Warner
- Senior Tax Analyst
- Wage and Investment Compliance

## 
Tax year 2004 program began in October 2005.

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

**Tax year 2004 program began in October 2005.**
**Approximately 120,000 cases out of 230 million Forms W-2 filed.**

**Withholding Compliance Program**

## 
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.

**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.**

**Contact Information**

## 
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.

**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.**

**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.

**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.**

**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.

**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.**

**Employer Responsibilities**

## 
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

**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**

**Employer Concerns**

## 

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:

**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:**
** **

**How can you help your employees?**

## 
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.

**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.**

**Joint filers must have the same information available for both spouses**

## 
Look at www.irs.gov for:

Temporary regulations – TD 9196
    Internal Revenue Bulletin 2005-19.

Withholding Compliance Questions and Answers.

**Look at **_**www.irs.gov**_** for:**
**Temporary regulations – TD 9196**
**    ****Internal Revenue Bulletin 2005-19.**
**Withholding Compliance Questions and Answers.**

**Withholding Compliance Program**