- Issue of IRS Withholding Lock-In Letters. Often a client’s employer will receive these letters from IRS, and the client almost immediately has their withholding “locked-in” at Single 0, even though the client may have a legitimate reason to be Married 4.
- There seems to be some confusion regarding whether “Lock-in Letter” W-4 adjustments can be changed after the 30 day deadline in the letter. The IRS department that handles lock-in letters states,
- when an employer receives a "Lock-in Letter" from the IRS, the employee has 30 days to disagree with the letter based on legitimate exemptions.
- If the employee does nothing, the lock-in letter goes through and the W-4 is changed to single zero. Even after the 30 days, and the W-4 has changed to single zero, the W-4 can still be adjusted back to proper withholding's.
- The IRS will allow the taxpayer to claim the number of exemptions based on the most recently filed return.
- Many times, the IRS allowable exemption amount is above and beyond what the client SHOULD be withholding.
- You will need to call to have a "Lock-in Letter" adjusted.
- How to get help
- Call toll free 1-855-839-2235 weekdays between 8:00 am and 8:00 pm
- Send a fax to 1-855-202-8300
- Write to:
Internal Revenue Service
Compliance Services
Withholding Compliance Unit
PO Box 9047, Stop 837
Andover, MA 01810-9047
Andover, MA 01810-9047
Source: Eric Roffer, Esq. Tax Defense Network/Karle Simmons
