W-4 alteration by IRS letter
- I need assistance locating the case, IRS/IRM rule or citation,
Treasury Decision, or all of the above limiting the IRS, preventing
them from issuing a letter to a company to modify the withholding
allowance for a compensated employee - not a Title-26 "employee." If
someone also has a case I can cite (help him with) where the employer
is under no obligation to such a letter, that would be helpful as well.
A friend I've been trying to help, and his 'employer' received a
letter roughly two years ago from the IRS indicated they (the
employer) had to change my friend's W-4 (single/zero). We have been
unable to convince this company that they need not honor this letter
since, among other things, no judgement has ever been rendered against
him. (He's never even had a hearing to discuss/argue his 1040s, or
any other document.)
Any help would be greatly appreciated.
- Here is a letter from which your friend extract information:
It is not his issue, but it show how one can deal with the
IRS and employers. Keep in mind, employers do not want to
get on the wrong side of the IRS, so they will not be overly
receptive to challenging them.
What your friend could do is ask his employer to write a
letter to the IRS and have them cite the law or statute
under which they are laboring. These guys are low-level
thugs with lots of pull. But, they can crumble under a
direct challenge to their legal position.
Otherwise, they will continue to huff and puff, and....
The letter: for informantion purposes:
Director of Personnel (or whatever apporpriate)
NOTICE OF WITHDRAWEL FROM WITHHOLDING TAXES
It has come to my attention that I have been falsely under
the impression that I was required, by law, to fill out a
W-4 form and also supply my social security number as a
condition for employment.
I have recently discovered that there is no law requiring
me to sign and submit a W-4 in order to get, or retain,
employment. Nor am I required to submit a social security
This Notice is my demand to cease and desist all
withholding from my earnings, any type of tax, income,
social security, or otherwise.
According to internal revenue statutes, an employer is
only required to request that an individual fill out
and sign a W-4, and to request an individual's
social security number, per 26 USC 3402(f)(2)-1(a):
(a) on commencement of employment. The employer
is required to request a withholding exemption
certificate from each employee, but if the employee fails
to furnish such certificate, such employee shall be
considered as a single person claiming no withholding
I deny being a taxpayer, as defined by the tax code, and
I have determined that I am not subject to any tax.
I have also found out that by signing a W-4 form and
supplying my social security number, I am providing prima
facie evidence of being a taxpayer, as defined by the
revenue code. I am not such a taxpayer.
I have since found out that my previous belief of having
to provide a signed W-4 form and my social security number
resulted from a mistake of both fact and law, from
misrepresentation, constructive fraud, and coercion.
I hereby revoke my signature on any internal revenue tax
forms, and I demand that my social security number be
removed from any and all records in your possession.
Further, I demand that the company not provide any 1099,
W-4, or any kind of form to the internal revenue service.
Should the IRS make any demands of this company to
provide any such revenue forms, then this company should
agree to provide said forms requested upon written proof
from the IRS that I am a person who is subject to a
Please confirm, in writing, within the next 14 days from
the date of this letter, your course of action. You should
also know that no individual can suffer the lose of
employment for not providing IRS forms/social security
Here is what 26 CFR 301.6109-1(c) provides:
If he does not know the taxpayer identifying number of
the other person, he shall request such number of
the other person. A request should state that the
identifying number is required to be furnished under
authority of law. When the person filing the return, statement,
or other document doesn not know the number of the
other person, and has complied with the request
provision of this paragraph, he shall sign an affidavit on
the transmittal document forwarding such return, statement,
or other document to the IRS so stating. (Emphasis added)
- I'm in a similar situation, but with a little twist. Someone in the
"Questionable W-4" division in Andover, MA sent the company I work for a
letter (Letter 2800C) with very vague verbiage relating to the number of
allowances/exemptions* on my W-4. (I'd changed it to 10 years ago based
on someone in the payroll department saying that they were only required
to forward it to the IRS if you claimed more than ten. Apparently
untrue - keep reading.)
In this letter, the lady used phrases like "more than /a certain number
of/ allowances" (emphasis mine). Anyway, it instructs the employer
(normal usage of the word) to change my withholding to "filing single,
The twist is that, since March of 2005, about 87% of my pay has been
garnished as a result of them honoring one of those bogus Notices of
Levy. I've tried various things to get them to stop, so far to no
avail. Thinking that they were going to start stealing even MORE of my
pay than they already were, I sent a very direct letter to the
author/signer of the Letter 2800C - and have received no response.
Come to find out, I'm still getting the pay I've been getting (which is
based on the amount exempt from levy on the outdated 2005 version of
Publication 1494), but the check they're writing to the agent (yes, I've
asked for, and they have provided me copies of the checks they've been
sending, and they're payable to the actual agent - any ideas here?) have
now been reduced by the amount of the difference due to the withholding
So, I'll be interested in whatever meaningful responses anyone can offer
with regard to Chuck D's situation, since mine is similar.
P.S. There is a Publication 15, I believe, that says, somewhere around
page 13 or 14, that private (i.e. non-government) employers are not
required to withhold. Also, I believe it's IRC 3402(p) or thereabouts
that says that a W-4 Withholding agreement is voluntary, and can be
terminated by either party at any time, in writing. Hope that helps.
* I know that allowances & exemptions, while often used interchangeably,
are not synonymous, but I can't recall or articulate the distinction.
- 30 July 2006
For what little I know about the irs, I have only
dealt with them directly on challenging their legal
status re the income tax.
In extensive reading, I have come across other issues,
but no direct involvement in their regard. I can
only pass along some acquired info.
What you need to attack is the IRS Notice of Levy.
Inform your employer that a Notice is NOT a Lien,
only a Notice. Any time you get one, or your
employer, get CERTIFIED COPIES, front and back, from
the County Recorder.
The IRS is playing you and your employer. This is one
of the elements necesary to perfect a lien, via
1. must be served a copy of the complaint (lien) upon
an oath of solomn affirmation. Look at the signature
line. The irs typically uses a "stamp" for another
party. Check FedRulesCivP 56(e)(g). A solomn oath
has to be signed by a specific party, not a stamp.
The irs never gets anything properly sworn. They
simply cannot. Inform your employer that you are
being taken advantage of, once you get your thoughts
Again, they do not want to go up against the IRS, even
if you are getting reamed. Ask them to send a letter
to the irs for the statute or law upon which they are
relying. If your copies show nothing more than a
Notice, advise both employer and irs that a Notice is
insufficient to lean your wages and for them to cease
and disist immediately.
Hope this helps.
Moderator/Bear: In the 16 years that I have been involved in this I am aware of a single employer, a patriot who understood, that took a stand and refused to honor a "notice of levy". I am unaware of any that were willing to ignore a "treat him as single with no dependants" letter or call. In many, many, many other instances, the employers all gave up the money and the "employee" ended up either quitting or living on a ridiculous sum like $150 a week until the so called levy was paid, or, having a full 37.5% taken out of their pay check. I searched and searched for a solution for this problem and believe that I found a much more viable solution that has actually succeeded in several instances in changing what the IRS is telling the employer. If you will follow the plan laid out at
http://irs-armory.com/call_off_dogs.htm and the conference call at the top of that page you will put yourself in an excellent position to change what the IRS is telling the employer.
Do You Yahoo!?
Tired of spam? Yahoo! Mail has the best spam protection around
- Does this work? I have not had occasion to use it.
My purpose in providing it was to provide something
that holds water in the form of a response.
Employers do not want to take on the IRS, and it
will never occur to them that you could be right in
The information comes from the IRC, and the IRS
attorneys wrote it. How can they refute it?!
I always recommend that anyone who uses this have the
employer send a letter to the IRS for proof of their
As to the denial of being a taxpayer and not being
subject to the code, I have used that, personally,
and for someone else, and it has been v effective.