- Publication 15 (Circular E), Employer's Tax Guide PDF
- Publication 51 (Circular A), Agricultural Employer's Tax Guide PDF
Frequently asked questions
If the IRS determines that an employee does not have enough federal income tax withheld, what will you ask an employer to do?
If we determine an employee does not have enough withholding, we’ll send you a lock-in letter stating the maximum number of withholding allowances permitted for the employee. You must withhold tax as indicated in the lock-in letter by the date specified unless we notify you otherwise. This date is 60 days after the date of the lock-in letter. Once a lock-in rate takes effect, an employer cannot decrease withholding unless we approve it.
You’ll also receive a copy of the letter to give to the employee. If the employee no longer works for you, you don’t need to do anything. However, if the employee returns to work within 12 months, you should begin withholding income tax from the employee’s wages based on the withholding rate in the letter.
The letter will explain how the employee can provide more information to help us determine the appropriate number of withholding exemptions. We’ll give the employee some time before the lock-in rate is effective to submit a new Form W-4 and a statement supporting the claims made on it. The employee must send the Form W-4 and the statement to the IRS address at the bottom of this webpage.
If an employer no longer has to submit Forms W-4 claiming complete exemption from withholding or claiming more than 10 allowances, how does the IRS determine adequate withholding?
We’re more effectively using information in our records and reported on Form W-2 wage statements to ensure employees have enough federal income tax withheld.
After I lock in withholding on an employee, what do I do if I receive a revised Form W-4 from the employee?
You must disregard any Form W-4 that decreases the amount of withholding. The employee must submit any new Form W-4 and a statement supporting his or her request to decrease federal income tax withholding. to the IRS for approval. The employee should send the Form W-4 and statement to the address on the lock-in letter. We’ll notify you if we approve the employee’s request. However, if the employee submits a Form W-4 that claims fewer withholding allowances than the maximum number specified in the lock-in letter, you must increase withholding based on that Form W-4.
As an employer who has received a modification letter (Letter 2808C) from the Withholding Compliance Program, do I wait another 60 days to change the marital status or number of allowances as indicated in the modification letter?
The changes to the marital status or number of allowances become effective immediately when you receive Letter 2808C.
Our employees can submit or change their Forms W-4 online. How can I prevent them from changing their Forms W-4 after the IRS has locked them in?
You must block employees we have locked-in from using an on-line Form W-4 system to decrease their withholding.
How to get help
- Call toll-free 855-839-2235 weekdays between 8 a.m. and 5 p.m.
- Fax your documents to 855-202-8300 using either a fax machine or online fax service. Protect yourself when sending digital data by understanding the fax service’s privacy and security policies.
- Write to:
Internal Revenue Service
Compliance Services
Withholding Compliance Unit
310 Lowell Street, Stop 837
Andover, MA 01810-0947
