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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15176
Experience:  15years with H & R Block. Divisional leader, Instructor
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I owed to IRS 2 years ago. It's been paid off years and I

Customer Question

I owed to IRS 2 years ago. It's been paid off for 2 years and I CAN'T GET IN CONTACT WITH ANYONE SO I CHANGE IT. WITHHOLDING RATE IS SET AT SINGLE AND WITHHODLING ALLOWANCES SET AT 0.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello,

Your statement about the withholding being set at single leads me to understand that you were under an IRS LOCK IN LETTER. You could not change your withholding because the IRS sent a letter saying your employer had to withhold at the single and zero rate.

When this happens you can be released from the set rate by the IRS. You must continue to file returns and pay your taxes due. If you timely meet all your filing and payment obligations for three consecutive years, you can request that the IRS release you from the Withholding Compliance Program.

The mission of the Withholding Compliance program (WHC) is to ensure taxpayers who have serious under-withholding problems are brought into compliance with federal income tax withholding requirements. The program uses Form W-2, Wage and Tax Statement, information to identify taxpayers with insufficient withholding.

You would need to make sure that you meet the full 3 years of compliance before the IRS would release and allow the change on the W4 and withholding.

Please advise if you need more information or rating in a positive way is acceptable.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.

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