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Financial Planning / Tax Strategies


Subject:  Re: Deliberately under withholding Date:  12/28/2000  1:25 AM
Author:  Skwire Number:  43531 of 123001

The W-4 is signed under penalty of perjury, and a fraudulent W-4 is subject to a separate $500 penalty, which the IRS can and does impose.

If an employee claims more than a certain number of withholding allowances (I can never remember whether it's 10 or 15--it's in Publication 15), the employer must send a copy of the W-4 to the IRS. The IRS can require the employee to substantiate the number of allowances claimed and can require the employer to withhold at the single rate with zero allowances if it's not satisfied with the employee's response.

Hi Phil,

I think there was a discussion about this issue a while back (probably many such discussions). Two points come to mind about this issue:

1) If I recall correctly, the statement made under penalty of perjury is that you are "entitled" to the number of allowances claimed. One question (raised in the earlier discussions) is whether you are "entitled&q